All Forum Posts by: Neil Hauger

I invest in farmland. I own 140 ac. I also am a Land Specialist agent. I sell land for a living. I won’t mention the company here as it’s not in the rules I think. Got dinged recently. I have been thinking of blogging on my land sales experiences. Stories of my deals, how I structured them and maybe how my clients have made money with land. Think that would be of interest?

Water and cracked foundations are never good. My first reaction was mold and re sale issues. I always have an exit plan on mind when I go into a purchase so you have to consider jowxthe next guy will react even if you don’t care. He might. With that said, look for the easy fixes. Does water pool near the foundation when it rains or during winter/ spring melt? If so need to slope soil away from foundation. Check the down spouts as u mentioned. Cracks can be sealed if it’s not bowing. But I’d get a guy who knows foundations before I get tied into a purchase as u stated. Contingency!! The foundation IS the foundation afterall. Foundations can be big issues and scare away future buyers. Don’t buy someone else’s issue! Good luck.

I provide them in my cabin I rent. I think it’s required in Wisconsin. I know the building inspector who checked me out when I built it mentioned it. Also, the county inspector who inspects my cabin yearly specifically mentioned it. I’m not sure if I have them in my 4 residential units but I’ll check now! Seems the right thing to do. What I find with my smoke detectors is they always take the damn batteries out of them. So now I do go into the units once or twice a year to inspect and do safety checks. It gives me a reason to go in and change filters, vacuumed the condenser blades for the refrigerator and just do a general safety and maintenance check. I think they are definitely a good idea I know I have them in my house.

I formed an Llc a number of years ago. I planned to buy property through the llc. Found out later that I couldn’t get a bank to loan to an LLC. Then heard that if I bought it and then transferred the property I own into the LLC could trigger a due on sale clause in my mortgage. Although I’ve heard Brandon Turner mention that it rarely happens, but could. So now what I do is have a checking account by the name of the LLC with checks. Anything I due in my 5 properties I run it through that account so it’s separate from my normal checking. My cpa told me as long as I have an insurance policy on my rentals I probably fine. My LLC helps me organize myself financially. So do I need it? I really don’t think so. But someone else may be able to advise better.

Hi Ken. Congrats on the purchase. I live 35 mi east of u in Wisconsin. Own 5 rentals. Looking at my 6th, a duplex. I think your biggest consideration here is return on your investment. Anytime you can have a electric Garage door opener in our cold-weather especially with the temperatures we have now. It’s going to be a plus. But how soon will you recoup that cost of 2400 bucks. I’m betting that is a couple years. Secondly I would consider who my competing against.? Do the other rentals have this feature so it would then be a limiting factor for me to rent? I would test the market and see if it really makes a difference in your rentals rent ability. If I tenant complains about not having it and you hear that often enough then perhaps yes, you would spend the money. But if they’re not complaining then why bother. Keep the money in your bank.

About a year and a half ago I decided to get my RE license, so I went on line, paid  and started to study.  But, life got in the way and I almost did not complete it.  There was a deadline to completion and I was lazy, had other plans developing etc.  Excuses.  Then I was offered a position with Whitetail Properties a land broker out of Central Illinois.  I had been a fan of Whitetail Properties for some time as they have a TV show on the Sportsman's Channel called "Whitetail Properties TV" and a great website at www.whitetailproperties.com.  But more than anything, I really was intrigued by the niche they occupied.  Selling Farms, Hunting and Timber land.  I am a avid hunter and outdoorsman and they catered to the same clientele as me.  I also like the fact that not every agent could do this type of sales well as it most definitely requires a different set of skills and knowledge.  Land management, hunting knowledge, eye for topography, timber value estimation, farming practices, trail cameras etc. are just a few of the skills that set a Land Specialist apart from the average RE agent.  I surmised the "riches are in the niches" and I was right. 

I was assigned a region of West Central Wisconsin which also happens to be some of the best hunting land in the nation.  I had 5 counties that I could work exclusively for the broker.  After 8 months of advertising with lead generation cards and posting "Land for Sale" signs I now have about $10,000,000 worth of land under listing contract and I have sold 4 properties.  In fact,  I am now to the point where I am turning away listings or referring them to other agents as I am at capacity and do not wish to take on more at this time.  Financially, I am probably at break even.  I have Grossed about 40K in sales to date and have invested into my business about 30K.  Between new computers, gas, (more gas!)  mailers, paper, travel to two meetings at WTP I  will not bank much this year.  I expect the situation to change dramatically in the next two years.  I truly think I can do six figures selling land in year two or three.  Here are a few lessons I learned and what has worked for me.

1.  Hand shake.  Get off the phone and go meet a client.  Nothing beats face to face contact and it really sets me apart.  I have developed a sales presentation pitch that shows the client the depth and breadth of marketing coverage I can provide and I have heard many times  "wow, your not like the average agent we have talked to".  You have to come ready to give your A-game. 

2.  Lots of Pictures on the website-the buyers are male for the most part and very visually motivated.  I frequently have 60-80 pictures on my page at WTP.

3.  Get off the road and walk the land.  Spend a few hours on it and get into every nook and cranny.  Swamp, highland, fields, woods.  Show the owner you are working for him. 

4.  Mailer post cards are the best lead generator-  I send about 2500 mailers to each county monthly by going on the county website and downloading lists of land owners.  I generally target 40ac parcels or larger.  But, I am adjusting that to target large properties in acreage and value just to further develop my brand and control the time input.  Its a niche within the niche.  I seem to spend a lot of time on a property whether it is 40 or 400 but the commissions are vastly different. 

5.  Put up a lot of For Sale signs.  I get a lot of calls from the signs I post on country roads, but I need to be really good at weeding out the tire kickers. 

6.  Pre qual potential buyers before you drive 4 hours round trip to show a property to someone who says "I'm not planning on buying for 2-3 years.  Time is money but this is easier said than done.  I do not hesitate to ask them to produce a letter of pre-qualification or a letter from their banker stating they have the cash assets. 

7. Retain leads and use the MLS system to set up auto notifications for buyers. I enter the criteria they wish and then I let the computer send them potential properties.

8.  Develop and maintain a CRM system.  My goal is to send customers personal email or Christmas cards. Basically, stay in touch with them.  Right now I am using Excel.  Not the best and I am looking for a good CRM system if anyone has a suggestion. 

9. Talk to everyone I know and tell them I am Selling Land, not houses.  I have received many leads and a few listings this way.  My most recent opportunity is in Africa!  I am in contanct with a Professional Hunter seeking to sell a share of a developing hunting  reserve.  Not sure If I can pull that one off but I am exploring the opportunity. 

10.  Social Media.  I have a Facebook page at Neil A. Hauger Land Specialist and I am exploring and using Periscope and Twitter.  Please come follow me.  I really like the "man on the spot" nature of Periscope.  It has not lead to a sale but I hope to use it as a tool to develop my Brand in Western Wisconsin. 

11.  Use Bigger Pockets.  My hope is to use Bigger Pockets as a network building tool.  So, any agents in the Minneapolist/St. Paul/Western Wisconsin market looking to refer business back and forth should contact me.  Many of my clients have houses to sell, estates to liquidate etc.  Lets get in touch. 

My first year is coming to and end and I plan to sit down and develop a business plan for 2016 and beyond and really lay out my marketing efforts and then implement the plan.  I hope you will hit me up and help me grow in this new endeavor.  Perhaps, I can help you diversify your portfolio with some farmland or recreational land.  I am here to help.  Thanks. 

Update. got a new cash offer at a decent price. As far as the EMD goes, I am getting the signed offer and the earnest check at the same time this time. Hand delivered to me.

Best policy.  Forget the electronic way of doing business.  Mug to Mug!  I am putting my face in front of the their face.  This may not seem efficient but I think personal business is the best business.  Thanks for the input. 

going to bed.  Thanks.  

I will be calling the Wisconsin Realtors Association Legal Hotline tomorrow.  I think my seller is due this EM.  Even though my broker wants me to just walk away, I think I need to hear the lawyers opinion on this.  Thanks all, good lesson learned.  I need to look into wiring of funds next time.  Needs to happen fast like 24 hours. and I will have the contract language reflect that.  Second, I will ask for more.  If a buyer wants to back out, its gotta hurt.  Is there a common practice?  This was a $330,000 purchase of land.  Maybe 10%?

BTW, there was no contingencies.  Cash offer, full asking price.  This is a Vacant land purchase for what it is worth.