Land Investing 101 - Land Investing For Beginners And What Makes It Passive Income

I'm Mark Podolski. I'm on a mission to help you solve what I call solo economic dependency, which means if you're not personally working, you're not making any money. If you have a W2 job that you hate, or even if you love, if you're a freelancer, if you're a doctor, you're a lawyer, which means that if you're personally not putting in the effort, you're not making any money. Well, there's a way that I solve that. And today I want to talk about land investing 101. Because I used to be a miserable, micromanaged, overstressed, overworked, 45 minute commute to working back investment banker. And it took me 18 months to be able to replace my investment banking income with land investing. So today I want to walk you through the exact model I used to break free and have what I call the three W's so I can work when I want, where I want and with whom I want. With that total freedom, I've helped thousands of people, clients of mine, retire their spouses, replace their income, quit their jobs. But let's just start with the very beginning of the model. I'm going to assume that my buddy Eric over here lives in Phoenix, Arizona, where I live, but he owns 10 acres of raw land in Texas. Now Eric hasn't gone out to look at the property in years. And in fact, when I go to the county treasurer, I see that Eric owes $200 in back taxes. So he's essentially advertising two really important things to me. Number one, he has no emotional attachment to that raw land. Emotions are alien to me. Eric lives in Arizona, the property's in Texas, and number two, he's distressed financially in some weird way. I declare bankruptcy because when we don't pay for things, we don't value them in the same way. And Eric hasn't paid his property taxes. So all I'm going to do is I'm going to look at the comparable sales on Eric's 10 acre parcel of land in Texas. I'm going to take the lowest comparable sale and I'm going to divide by four, and that's going to get me what Warren Buffett call a 300% margin of safety. And I'm going to send Eric an actual offer on his property contingent upon due diligence and other issues with that property. So I have a way out. So let's say that Eric's raw land, the lowest comparable sale out there is $10,000. Well, I'm going to send him an actual offer for $2,500. And now Eric accepts it. Because every single month the county treasurer has been sending him a notice saying, hey, Eric, if you don't pay your property taxes, you're going to lose that property to a tax deed or tax lien investor.

Where's my money? Do you have my money? Where is it? You know, if you had the money, I'm right here. Do you have the money? Money, money, money, money, money.

So Eric accepts it. Now, in reality, 3 to 5% of people accept my quote unquote top dollar offer. But now once Eric accepts it, I have to go through due diligence or in depth research. I have to confirm Eric still owns the property. I have to confirm the back taxes are only $200. I have to confirm that there's been no breaks in the chain of title. I have to confirm there's no liens or encumbrances. I want to know about the roads, is there legal access or what we call ingress and egress. What's compelling about the property, how far from near services, the nearest Walmart, what restrictions are on the property? This whole property due diligence checklist I outsourced to my team in the Philippines. They're connected to an American title company. It cost me about 11 bucks. Now, if I was paying more than, let's say $5,000, I would close traditionally through an American title company. Now we're going to assume everything checks out. And now I bought Eric's property for $2,500. Now here's where it gets fun. I'm going to sell this property 30 days or less and I'm going to make a cash flow just like a rental home. Now the question is, who's going to buy this property? Well, I have a built in best buyer. It's the neighbors. So I'm going to send out neighbor letters saying, hey, here's your opportunity. Protect your privacy, protect your views, know your neighbor. So oftentimes the neighbors will buy it. Now, if they pass, I'll go to.

My buyers list wondering what a buyer's list is. As people express their interest in purchasing a property from me, we add them to our email list so that we can notify them when we have other properties for sale. Over time and with more leads, this becomes a great place to market new properties.

You have my buyers list passes. I'll go to Craigslist, the 10th most trafficked website in the United States. I'll go to Facebook, which is absolutely huge. It'd be the largest country in the world. There's so many people on Facebook. I'd go to the marketplace, buy, sell groups, and then I would go to zillow.com and I'd go to lands landmodo.com, landsofamerica.com, land, flip.com landhub.com these are platforms for people buy and sell raw land every single day. But the way that I'm going to sell it is I'm going to make it irresistible. So all I'm going to ask for is a $2,500 down payment, which a lot of people can afford. And if I wanted, I could even go, let's say six to 10 months out to get what I call capital recovery. Because I invested $2,500, I could go six to 10 months out before I get that $2,500 back. But in this scenario, we'll make it simple. I'm going to ask for a $2,500 down payment and let's make it a car payment, let's say 249amonth, 9% interest for the next 84 months. So essentially, it's a one time sale. I get recurring income, I get my money out on the down payment, but then I get recurring income and every single month of $249 a month and 9% interest in the next 84 months.

So to break down our profit on this deal, $2,500 plus $249 a month over 84 months is $23,416. Now subtract the initial $2,500 we paid for the property, and our profit is $20,916. That is an 830.

Investment.

Where else can you put your money.

To work like that? I don't deal with any renters, no rehabs, no renovations, no rodents. And because I'm not dealing with the tenant, I'm exempt from Dodd Frank, RESPA and the SAFE act, all this onerous real estate legislation.

Let's take a look at some real.

Deals completed by folks in our land geek community. Take Rachel. She purchased the property for $1,500, then she sold it on terms for $299 down and $119 per month for 50 months. Her profit from this deal is $4,749 with her return on investment at 316%. Also, she will have recouped her initial investment in just 10 months. Or Bradley here, he bought land in Texas for $500. He sold it for $99 down and $99 a month for 36 months. His profit is $3,163, and his return on investment is 632%. Let's take a look at one last example. Rolando sent me this message the other day. Right now I'm on an island in Belize, swam with sharks. Yesterday, I got a $500 down payment on a property and signed a terms deal. $200 per month for 36 months. I never spoke to the buyer. Can't beat it. I asked Orlando how much he paid for this property, and he said $1,500. So that makes his profit here $6,200 and his return on investment 413%. Not to mention the fact that Rolando is getting paid while swimming with sharks in Belize. He's working when he wants and where he wants. That's in his own words. You can't beat it.

So how do we get to total freedom once we create enough of these land notes where our passive income exceeds our fixed expenses? And now we're working because we want to, not because we have to. Now, there's going to be a lot of details in between all that. And so I'd like to offer you a course to really walk you through the model. And I'm going to simplify it. So if you go to thelandgeek.com wholetailing, there's a free course, how to double your money 30 days or less. Because I believe the best way to learn anything is by actually taking action and doing it. And then you'll know for certain if this model resonates with you or not. Hopefully you found this information valuable. And if you did, please, like, subscribe. And Again, go to landgeek.com wholetailing to get your free course and start investing in raw land making on an average 300 to 1000% return on investment. Thanks a lot. Hopefully I'll see you on the other side.

Sam.