All Forum Posts by: Jack Butala

Fantastic summary, Christopher.  I have the pleasure of working with many real estate investors in the beginning of their careers.  Its very clear that your methodical approach to moving cash through real property and back out the other end is effective and intentional. I wish you the best.  I still eat ramen noodles for lunch often to remind me of those wonderful times as a beginning investor. Great work.

Great string everyone.

We have purchased and sold more than 14,000 rural unimproved properties since 1999.

HERE IS THE WHOLE KEY TO SUCCESS:

It seems we all agree that buying property cheap is simple when correctly using direct mail.

1) Make cheaper offers. We used to buy property for $100 per acre ($4,000 for a 40 acre property). Now we offer $1,000 for the same property. We buy the same number of parcels because we have increased our direct mail reach statistics.

After crying about it, we adjusted to the market.

2) Sell the property for two times (2x) what you paid. No exceptions. (The 40 acre property in the example above sells for $2K). Go on the internet to sites like Landwatch and find the retail sellers for your property type and location. Build an email list of about 20 to 80 buyers. Any more will upset these professional retail sellers because they will feel like you are "shopping" the dirt. Make the purchase really easy for them by creating a set of maps they can use to re-sell it for retail dollars. Once you have sold them a property or two at these rates, you have a customer for life. THIS REPEAT CUSTOMER HAS TO WIN BIGGER THAN YOU DO ON THE SALE OF THIS PROPERTY FOR THIS MODEL TO WORK. He will sell that same 40 acre property for $8K to $10K - which is still really cheap.

Keep a bottle of Maalox on your desk like I do. When you sign the deed for a 40 acre property that you sold for $2,000.00 you will need it.

I keep it right next to the sign I made that says this "100% ROI in 30 days or less x 10"

Great string everyone.  @Alfred Green  @Mark Podolsky @Matt DeCamp @Tyson Cross

We have purchased and sold more than 14,000 rural unimproved properties since 1999.  

HERE IS THE WHOLE KEY TO SUCCESS:

It seems we all agree that buying property cheap is simple when correctly using direct mail. 

1) Make cheaper offers.  We used to buy property for $100 per acre  ($4,000 for a 40 acre property).  Now we offer $1,000 for the same property.  We buy the same number of parcels because we have increased our direct mail reach statistics. 

After crying about it, we adjusted to the market.

2) Sell the property for two times (2x) what you paid.  No exceptions.  (The 40 acre property in the example above sells for $2K).  Go on the internet to sites like Landwatch and find the retail sellers for your property type and location.  Build an email list of about 20 to 80 buyers. Any more will upset these professional retail sellers because they will feel like you are "shopping" the dirt.  Make the purchase really easy for them by creating a set of maps they can use to re-sell it for retail dollars.  Once you have sold them a property or two at these rates, you have a customer for life.  THIS REPEAT CUSTOMER HAS TO WIN BIGGER THAN YOU DO ON THE SALE OF THIS PROPERTY FOR THIS MODEL TO WORK.  He will sell that same 40 acre property for $8K to $10K - which is still really cheap.

Keep a bottle of Maalox on your desk like I do.  When you sign the deed for a 40 acre property that you sold for $2,000.00 you will need it.

I keep it right next to the sign I made that says this "100% ROI in 30 days or less x 10"

Hello. I’m a seasoned investor of rural, unimproved land (15,000) transactions. Very often I get calls from the direct mail that we have been sending out for years from the children of deceased land owners. I have been passing on these deals for years but would like to work with someone who knows how to complete these transactions.

Here is a summary:

Seller: My dad (John J. Smith) just passed away. He owns property in Southern California, Arizona, Oregon, Washington state, and New Mexico. In the file are several letters you sent over the years regarding your interest in buying the property. I would like to sell it now.

Buyer (me): So sorry about your father. Let me ask a few questions. Are the properties in your father’s name? Did he have a will or trust? Do you have any siblings? Is your mother still alive? Are there any other heirs that you know of?

Seller: They are in his name as the sole owner (John J. Smith). He had no trust or will. I am an only child. My mother passed away several years ago. There are no other heirs. I’m willing to basicly give these properties away so we don’t get the tax bills any more.

Any insight would be greatly appreciated.