How To Buy Land And Make Offers

Patricia chimed in. She did give us some comps, Mike. It's in. It's in Yucca. She's been seeing comps at 3,500 to 5,000.

I was just doing some texting on Facebook. I was feeling a little like getting involved here. I was just kind of multitasking. I think that she might want to hold off on buying that based on her comps. You know, I did a quick search of a 1.17 acre in Yucca, Arizona, and that sounds like more like retail, what she's listing that for. Wait, let me look again. What she said the purchase price was. You have it again. Where'd it go, bossman?

I don't want to purchase price 2700, so. Yeah, that sounds high.

Yeah, that sounds more like retail. Patricia, if you haven't purchased that yet, I would probably hold off.

Now. That brings to light. It brings to light another topic, Right. Sometimes we send offers in the mail, and maybe we're a little off on our numbers. And this comes to light in a lot of different ways. We see different sales going on. We see a different activity going on. Maybe after we mailed, and then, you know, we get an accepted offer. We take a look at the property. Oh, it's got this small wash going through it. Oh, the road access isn't the best. Oh, there's some change in elevation. Mike Zanel, what do we do?

Yeah, we definitely renegotiate, and I would like to know if she's had any contact. Patricia, have you talked to this person yet? What sort of communication have you had? Because we could definitely talk about some negotiation tactics based upon what's been communicated between the two of you so far.

So, Mike, I am the seller. I sent you an off. I signed purchase agreement for 20. You sent me an offer for $2,700. I signed it and sent it to you. Yeah, it's this property. You get it in the mail. You do your due diligence. What do you do? You call me up and what happens?

Well, I call you up, and I'm like, scott, thanks so much. Send that back to us because, you know, communication. But, you know, I would be very honest with you, like, Scott, you know, when I started mailing this area, because we do mail, we look for lots of properties in the area when we target a specific location. I was under the impression that comps were whatever, right. And, you know, I've been doing a deeper dive, and I'm actually, actually. I was wrong, you know, and I actually overpriced my mailers. Now, I don't know how attached you are to your property, Scott, and I'd love to get you as close to that 27 as possible, but that's what I would do.

I keep going. Keep going.

No, that's the pause, because that's where the guy goes.

Okay, no problem.

Because what's going to happen at that very moment is that Scott's either going to say, you sent me an offer for 27, or he's going to say, mike, this property, I've never been to it. I don't want it. I'm tired of paying taxes on it. I just want to get rid of it. Great. Because we've been picking these things up for about twelve hundred dollars. I just wanted to be honest with you, or I might even come out with that. Listen, since I've got to know the area better, we've been buying these properties for about $1200. Now, I don't want to be offensive to you because I know what we mailed you, but I just want to be truthful that that's what we've been buying them for. And then you pause, and you can always come back if they get over, but you got to have that pregnant pause, right, where you just let them erupt or say, I just want to get rid of it.

Well, Mike, Mike, okay, but you just sent me an offer for 2700. I signed the purchase agreement. What's. What's. I don't understand. Like, help me get the deal done here.

Right, right.

I know.

The real. The reality is that we overpriced our mailers, and that happens from time to time, you know, when we go into new areas. So I apologize that, you know, that I sent you an offer that regard. But I can tell you that if you do decide to work with us, it's quick cash. And we'd love to. You know, we'd love to help you out with this. I mean, Scott, do you visit the property?

I was out there like 25, 30 years ago.

Yeah. Did you see that wash running through it? You ever been there during the rainy season?

The wash? What wash?

Yeah. So you devalue the property with the seller.

Right.

But listen, there's nothing you can do to force their hand, right? All you can do is point out obvious things and try to elicit a response on them. If someone wants to sell, they're going to work with you. They're going to be very easy to work with. Someone who doesn't want to sell, well, they're just not going to move Their numbers. Right. So it's a way of uncovering it. So I think a simple way to uncover that is just to sort of be honest with them. Let them know that you overpriced it. Let them know that if they were interested, you'd love to work with them. And it's a quick cash transaction. There's no, you're gonna get the full amount. But we honestly been buying these things based upon our current reassessment for about. Name your dollar amount and wait for them to react to it. If it's gonna work, it's gonna work.

Yeah.

You gotta wait. That silence is absolutely golden. And one thing I love to point out. Okay, so you went there 25 years. So you've been paying taxes on this for 25 years. Wow.

Yeah.

I'm faithful with my taxes. I take pride in paying my taxes. I'm not gonna be a loser who doesn't pay my taxes.

That's awesome. I love guys like you. Honestly, I pay my taxes, too. You'd be amazed how many people I talk to that don't. So I love the fact that you're. I love that it's up to date. That's outstanding.

Look, and the reality is when you have. When you. When, you know, we mail consistently. Right. So there's never going to be this instance where we think this is the deal we have to have. And you'll have confidence to sort of let deals go because they're asking more than you want to pay, because you have a number of other deals in the pipeline because you do consistently mail. And so you have deals coming in every day or every week.

And if you don't consistently mail, then.

You might buy that for too much money.

Well, that's exactly right. You probably don't have the swagger to go. It's 1200 bucks. That's what I. That's it. Like it is, you know, no hard feelings if you don't want to sell it. But somebody who buys a lot of deals, they're gonna come to a point where they're like, that's it.

We have to believe it too. Right? You have to believe. It's like, I buy properties in certain areas for $100 a piece continually, over and over again. But that's my. In my mind, that's the going rate. And I fully believe it when I. People run. Listen.

Yeah.

Just let you know, we usually pick these up for about $100 a piece of. If that's okay with you, then we'll get this taken care of real quick. And, like, all of them say yes.

Right?

Nice. Good. Good advice, fellas. Thank you. We got a lot of watches.

They don't sign the thing and send it back to you if they don't want to sell. Yeah, that's not what you get back in the mail. You get something else back in the.

Mail when they're looking. It's completely true. You're looking to uncover. Remember? All we're looking to do is have a conversation with a motivated seller. That's it. And this is our introduction. This is a. Hello, my name is Mike Zano, and I buy land. Would you like to sell yours? Yes, I would. Great. Let's talk. This is just an introduction that we're getting with this letter. Awesome.

It's conversation. Stata Starter, Dino Dano property under option agreement. Buyer called, asking for the APN number to verify the property from the county buyer. Okay, what is the best answer to that buyer? Do you guys.

Sure it's under an option? They're trying to sell it to somebody.

Yes.

Yeah.

And the. And the end buyer is saying, okay, what's the apn?

You got to be transparent. You got to be transparent with them. You got to let them know that, like, look at. I'm. I'm fixing to close on this. I was pre marketing it. If you'd love to work with me, you know, we can take care of it.

Did you say Fexin? I'm fixing to close on this.

That's awesome.

I might. I might should come over there and smack you upside the head for saying fixing to.

That's not a Scrabble word. That won't work in Scrabble fixing.

F I, X, I N, apostrophe. Fixin.

Fix it.

No, it's just. It's usually an Alabama lingo thing, Mike. I'm just surprised you're branching out Alabama recently. You're branching out, dude. I like it. Patricia says she might hold off based on the comps you were stating. I. Yes, you may hold off, but you may have another conversation with the potential seller. You may not be comfortable having. You may not be comfortable having that conversation with the seller the first time.

Sorry, I need to hold off on this. I just realized that there's properties out there selling retail for not much, some of them a little bit less than what you're asking. I could go to buy this retail from somebody else. So honestly, I can't do it right now. I'd love to help you out, but I'm sorry. Like, let them know you're letting the deal go and Say, and then say, if you're ever looking to sell it, you know, honestly, it's. For me, it's a thousand dollar purchase. I don't want to make you. I'm not trying to assume that you want to sell for that much. But anyway, right now I gotta let that go. If you change your mind, please, and act like you have no interest in it, that might turn them too.

You gotta remember that they've had this property probably for a long time and it's a drag and they want to sell it or they wouldn't have returned the mailer. There's a lot of things going on in your favor, but eventually, at some point, if you're going to be in this business for real, not a hobby, you're going to have to have that conversation with the seller. And it is generally scary the first time you do it right up until you do it. And then you go buy it at the price that you want. And they, at the end, here's what they do to you. They say, thank you. Thank you for buying this property. This has been a drag. My idiot father bought this 40 years ago and I inherited it and I couldn't do anything with it. And I do pay the taxes and they're not. The taxes aren't much, but I hate it. And thank you for taking care of this. And all of a sudden clicks inside you and you're like, okay, I'm actually helping them. And if they don't want to sell it, that's cool too. Either way, it's fine.

Just going to get your version of conveying the truth, whatever way that you would say that. That feels natural and honest and transparent. Do it.

It's got to be pretty truthful to say, here's the story. I'm a land investor. I messed up. I overpriced this. I really did. I'm buying them for 1250, all day, every day, all over the place. I just bought X. I bought three more. I just can't pay this. I'm sorry if I'm wasting your time, but I just can't pay that. That's actually the retail price. Here's what I do. I find vacant land that people don't want anymore. They don't want to pay the taxes. They. They don't want to have a land with a wash. That's not what they're looking to do. They inherited it, whatever. And I give them cash in 10 days. I don't pay retail. You could get more money if you sell it on your own. I'll tell you. Selling lands, the hard part. And I could offer you 12.50 for this. If you're interested, I'd love to buy it from you. If you're not, I get it. And, you know, have a great day.

Here we go.

And more often than not, they'll say okay.