How To Properly Use Land Value to Calculate Pricing in the Land Investing Business

I got a question from Kim Gibson. She's got another mailing question.

Oh, I like mailing questions.

Or list question. Are we using full land value as the assessment value? Do we mail to trustees and organizations? So two questions there. What value do we use to base our market value?

Why the assessed value? What's going on there?

Yeah, assess assessed value. Rarely could be correct, but most of the time is a disaster. I mean, what do they assess your house at, Mike?

What do you got to be rude? Why you got to be rude to Kim? Maybe she's new to the business. Maybe.

Who's rude? Me?

I mean.

No, he's just being matter of fact Matt. Or a fact Matt or a fact.

Wow.

And now for tonight's matter of fact segment. Matt, just say the way it is.

Holy crap balls. I'm gone two freaking days and you guys now. This is like the worst comedy act ever. Oh, wow.

Oh, come on.

It's the matter of fact segment. I love it.

Oh, my God.

We're gonna have that from now on. Matter of fact.

What was Kim.

Please, Matthew, in 30 seconds or less, please explain to Kim why we do not use assessed value with the county. Ready?

Are you gonna put a clock on him again?

Yeah. Here we go. Ready?

Here, hold on. Ready.

This will take four seconds.

Go.

It's almost always demonstrably wrong.

Oh, even use the word demonstrate. He should get like a three second credit.

Yeah.

No second credit.

County assess value, they go up and down depending on who's elected as the assessor. Like that's not where you want to be. Right? You want to go take a look at. Go take a look at land Moto. Go take a look at the lands. Go take a look at Facebook. Find out what people are selling it for. Right? That gives you all the keys as to what you should be buying it for. That's far more important than what some elected guy, you know, says that it's worth. Now that's more annoying because you can't just go pull a list from Datatree and look at the assessed value. You could do that, but it's. It's a recipe for a wasted mailer. You're either going to be either going to get a very high rate of return of people who want to sell because you way overpriced it or sometimes you can weigh under price it. Right? So that's not how you want to base your pricing.

I like it.

Dave Lefay, you are hearing correctly. He says, am I hearing correctly that I should be mailing in state in larger states I mean, I think if you, you can start with your out of staters. If you get through your out of staters, you could, you could sort your Colorado list by zip code and figure out who lives two or more hours away and mail those people. And then if you're having good luck in the subdivision, mail them all. Like Matt Forbes said, it depends on.

Where you're at, man. Right. Like, I'm not doing that work. I'm gonna mail everybody. I feel great about it. I make money when I mail. The more I mail, the more I make. So I'm good at. I'm fine with it if I'm just starting out. Like, when I just started out, I definitely did. Only out of state. I did tax delinquent. That's what everybody does, but that's what everybody does outside of that. That's what everybody.

That's. That's not what the 27 listeners on this show do.

I'm just, you know, I don't care about in state or out of state. I mean, yeah, like, you can argue with me all day. Like, if I'm mailing somebody who lives down the street, like, there's no way they'd sell it at that. Maybe, maybe not. Maybe they're behind in their mortgage and they need 4,500 bucks, and I'm magically offering 4,500 bucks. Like, you don't know the reasons these people sell. They're selling way cheaper than what you're going to be able to sell it for. But they can't go sell it for that. That's the thing. You got to understand, that's the model. The model is no real estate agent is going to want to go take a listing for $9,000 or $4,000. Right. So you don't know. Maybe they've tried to sell it for two and three years and they're like, you know what? No problem. You want to offer me 500 bucks for this property, I'll take it. I don't want to deal with this thing anymore. I don't want to pay taxes on this anymore. Like, we don't know unless we give them the opportunity to get in touch with us about buying their property and send them an offer.

I like it.

Great answer. Great answer.

That's the Matter of Fact segment.

We have a. We have a comment from Demetrius Jones.

She had two parts to her question.

Oh, no. Did she?

Oh, yeah, you're right. Sorry.

Didn't mean to blow up.

Didn't mean to blow up. Do. Do we mail to trustees and organizations Matt. Mike Zanel.

What do you do?

Do you mail the trustees and organizations?

She's talking about LLCs, like organizations like that? Yeah, I mail LLCs. Trustees. I mail them as well.

Forbes.

I actually have always excluded corporations. Until recently, someone sort of slapped me and was like, what the hell are you doing? You know how many properties we buy from people like that? So I now, I included them today for the first time. But up until today, I just to what I had always done. Right. Because I don't. I, you know, I don't want to go bother mailing other land investors. But again, it like that thinking is really small. It doesn't make sense. Right.

I like it.

I do both. Except I have my VA scrub out all my friends.

You think you know my business name. Good luck.

Yeah, right. I'm not gonna mail Zano Investments. I got him on Voxer. I got him on my. I got him.

Yeah. I can't believe that I spent so much time doing that. Like, I. It's funny that. That is. Kim, it's funny you asked that question because literally today is the first time I'm like, I don't have to go scrub for LLCs and then do a search for Inc. And then to go do a search for this and a search for that. Like, I'll just go the whole list because who don't care.

Here's a question for you guys. I was thinking about this today. What if you work a subdivision, it's a very large subdivision, you've been there for a really long time. Do you take out your prior buyers? So let's say you. Let's say you obtain a new list. Let's say you obtain a list of the subdivision once a year. And I had 10 cash sales there last. Last year and I sold to these people. I'm mailing the new list this year a chunk at a time. Couple hundred there. Couple hundred. A couple hundred here, a couple hundred there. Do you take your prior sales off that list? No, I don't kind of think about though. Right.

Way too much work.

It's too much work. But I've had that question before as well.

It's a good question.

Right.

And it might save me $8, but I'm out.

Yeah.

$8 within all the time to figure out who they are.

Oh, Kim wrote in. Again, I'm asking what does full land value mean to us? Now there's a good question, Kim. The county treasury list I have provides full land value and net taxable value. I'm trying to understand what I do Once I've determined vacant land.

So you don't need those numbers to determine your offer. Basically. Still the same situation Matt was talking about in the matter of fact segment. You bas need to look up comps in that very area. You're going to mail listed comps, comps for sale, sold comps from land sellers on Land Moto and other sites, and then that. So you really don't have to over complicate it. And if you really want to, it's like, it's the analogy people give to, like, you could learn all the ins and outs of your car, or you could just drive the car. Right. It's, you know, if you want to go in and have that deep analysis of why the county values things certain ways and all of that, that's certainly valuable information to know more about land. But it's not necessary to buy and sell land.

Yeah. I will answer that differently, and I hope I don't come off rude. Kim. I'm asking what does full land value mean to us? It means nothing to me. I mean, that's the answer. I don't care what the assessed value is. I don't care what other people think it is. I care what I can get. For now, that number I care a lot about. So if I know, because I've looked on Land Moto and all the land sites, if I know, because I've been doing it for a while, that I can get $4,000 for this property, then I'm going to go offer 1,000 bucks. And that's just the math. Right. I don't care if the. If it's valued at 8,000 or 2,000, like it's irrelevant to me. All I care about is what I know. I can sell it. I don't know if that helps.

I think it does.

It may not help. I'm generally not very helpful, to be fair. So I don't know.

You're a very helpful man. Very helpful gentleman. Yeah. I mean, you know, here's the thing. Here's the other thing that's kind of a challenge about our business. Right. Is full land value six months ago in this business is a lot different than full land value today.

Yep.

So it takes constant analysis of the market on these land selling websites and on county websites. You can pull. You can pull sales data on a lot of these county websites to figure out, oh, what did Matt Forbes pay for this property last month?

Danger Will Robinson.

And you know, what did Mark Podolski pay for this property last month?

You can see what I paid to buy it. Right. But be very careful about what you think I sold it for. Right? That one you got to be careful about. Right. Because if I record a deed and you've been. And a person's been paying me for six years, you're gonna see what I sold it for based on six years ago pricing.

Right?

So there's a little bit of danger there, but I love looking you up, Bosman. I love looking up Zaino. Hey, where are you at? Where all your properties at? Hey, would you pay? Sure. Absolutely. I've never actually done that to YouTube, but I've done it to other people. Stay back.

That's funny. All right. Awesome. Darren Nichols says he bought three properties from an LLC off his mailings today.

Yeah, that's why I feel super dumb, Darren. Right? Because, like, these are all these, like, little preconceived notions we have in our head that we carry with us for years and years in this business, even though they're dumb. Like, why would I do an LLC raw? Like, why not? So good job. Yeah. That just proved that what I did today was correct.