We’re almost HALFWAY through 2020…
(we can’t believe it either!)
Welcome to the fourteenth edition of the Investors Newsletter, a monthly online publication coming straight to you from professionals who eat, breathe, and sleep this business. We have industry updates, technology tips, and all other kinds of incredibly valuable information.
We’ve been working on big deals, have made some even bigger changes to our companies, and have some HUGE new arrivals coming soon.
It’s never too late – whether it’s getting started in real estate, ramping up your business, or anything else! Join us in evaluating the first half of the year and starting the second half strong!
This newsletter is for you. Read it, bookmark it, share it, and feel free to let us know if you have any feedback, content suggestions, or questions! Whether you’re a seasoned investor or just dipping your toes, we promise you’ll be waiting by your computer for next month’s email.
Jill went live recently to talk about how we’re changing our offer prices to reflect new virus pricing – aka – how to chat with sellers and break the news that you no longer will pay the amount listed on the purchase agreement you sent pre-corona virus.
This was one of our most-requested and most-watched live videos – so check it out and let us know what you think in the comments!
A Message From the Offers2Owners Team
As Offers2Owners continues to break RECORDS monthly.
More and more mail is going out, we are proud to see you all are taking advantage of the time you have to send more mail and make more deals
Having trouble with the new Document Dashboard? Take a look at our Resources to find the new O2O How To Videos!
These will bring you information on the most common mistakes and how to have your Documents ready for Merging and or Printing.
by S. Jack Butala
My organization has purchased and sold about 16,000 properties since the early 1990’s which makes us the unwilful survivors of two economic recessions and one depression. We are heading into the next one coming off the most prosperous economic environment our country has experienced in about 5 decades.
All recessions have a few things in common; they all start with a news media event which triggers consumer emotion, that emotion manifests itself in less spending (until another media campaign positively changes consumer perception), less emotional or confident consumers resume pent up spending, and finally, the economic indicators tell us all that we are no longer in a recession.
If I sound cynical, it’s because I am.
These recessionary media events don’t affect the VAST majority of us (about 95%). If they do, its usually in the form of job loss or as a small business owner, loss of revenue. For example, in good times the national unemployment rate is about 5% and is the worst of times is about 10%. This means about 16.5M people become unemployed (330,000,000 * 5%) but $314.5M remain employed or 95% of the county.
Nobody wants job loss and less consumer spending. The fact is, all free market based economies are cyclical. My point here is (and with compassion) the real-life tragedy of a recession affects a small percentage of people and a large percent of people change their spending decisions based on emotion.
We are land investors. We buy property from willing sellers at prices below current value and sell the land at market prices or slightly below to willing buyers. We do this in all economic climates.
Here are questions I get every time we discuss this topic;
⦁ Will the purchase price of land be affected by a recession? Yes, it will go down.
⦁ Will the sale price of land be affected by a recession? Yes, it will go down.
⦁ Will more land be available to buy (will more offer recipients sell their property)? Yes.
⦁ I have sold a lot of property on terms. Will my buyers who are making payments default more? Yes. 50% more will default on their payments.
⦁ Is it harder to sell land online like I usually do? No. Because you are buying it cheaper and now selling it cheaper. Your buyer base is bigger. People want cheap(er) property.
⦁ Should I lower my prices on my next acquisition mailer? Yes. By as much as 25% lower than normal.
⦁ Should I change how and who I sell property to? No. But change your titles to reflect the even lower sales price relative to all the other property out there.
⦁ Should I add my land product types to my portfolio. I usually buy rural land. Should I but infill lots? Yes. Always add product types as an investor.
⦁ What should I change during a recession? Buy more land and use funding partners. People with money come out of the woodwork during a recession for bargains in real estate and commodities. If you have deals, they will buy. You need to put in extra effort to find them.
Remember this; US recessions are based on media events which cause emotion. No one I’ve known has ever said “I’m so proud of the decision I made yesterday when I was really really emotional.” I was thinking clearly and the next time I’m experiencing a ton of emotion, I’m going to make even bigger decisions and better ones about life events.”
My final advice is you should not have any emotion when buying and selling real property in any economic climate. When prices are lower, buy more and ramp up your selling efforts to account for any perceived changes in the market. Present your property like “this is a once-in-a-life-time opportunity to buy for this price.” And make sure you purchase it so inexpensively that you are truly offering a great opportunity for your buyer.
NeighborScoop.com was released in March, and many of you have signed up for our Member Pass.
A lot of people ask, what’s the difference between ParcelFact and NeighborScoop?
Land Academy has worked hard to secure the best data in the industry for our members. Both ParcelFact and NeighborScoop have proprietary data on over 150 million properties in the U.S. and provide key details you require for your due diligence and offer mailers. So, what’s the difference between these two sites?
Want a sneak peek into our member calls? Watch Steven and Jill review a member’s deal here.
Not a member but ready to sit in in a call? You can request an invite to our CLOSED member calls by emailing firstname.lastname@example.org to attend either a Land Academy or House Academy call. (or both!)
Don’t forget to post your land for sale on the new Landpin.com. If you are logging in for the first time please start by register yourself as a new user. The site now has a modern feel and very user friendly. Instructions on How To sign up for LandPin.com can be found on your Member Guide!
Get Your Questions Answered! Schedule 30 min consulting calls with our very own Moderator Kevin Farrell! Members can schedule a 30 min call with Kevin by going to LandAcademy under tools or looking on the right-hand side of LandInvestors. For just a $100 you can pick Kevin’s brain, from deal reviews to where to start with your land business. Just click the link below and schedule your call today!
Where to get property information to use on your first listing!
When we purchase our first property, we can all say that we were extremely excited and fantasize about selling it right away. And we immediately start thinking about listing it everywhere. You already have most of the property information from the research that you had conducted prior to the purchase. But for those that are new to selling land online, here are some tips on where you can find the following information for your listing.
From Neighborscoop you can find information on:
- FEMA Flood Area Overlay
By calling the county you can find information on:
- Back taxes
- Road access
By calling the county you can sometimes find information on:
- Water information
- Electricity information
By visiting the state hunting website you can find information on:
- Game unit management zones
- Animals that are in those states
- Fees for licenses and tags
From Google maps or Google earth you can find:
- You can see what is around the property and make a story about it in your description listing
- You can drop pins on google maps/earth from your property to measure distance and time
- You can also save the location of a property as a link to attach to your listing
By searching on Google you can:
- Type in the city and county that the property is located on and see what interesting facts that you can use to create a story for your property.
For getting pictures and videos of your property:
- Check other listings in those areas and see if people give credit to their photographer.
- You can then search that photographer through Google, Yelp, Facebook, Instagram, etc
- Check on Facebook, in the search type in photographer in (city) or near (city)
- Check on Craigslist
- Google search photographers in (city), (State)
– Marketing Team
Land Academy: Real Estate Investing (Land Academy)
House Academy: Real Estate Investing (House Academy)
Offer2Owners: Offers2Owners Group
This month’s question came from Jeremy
over on LandInvestors.
Wondering what type of strategy or language anyone can share about how to go back to the land owner and try to negotiate/offer a lower price for the land?
Check out Steven and Jill’s answer HERE.
Check out Jeremy’s question HERE. Make sure you read the answers from our community – we love to hear their valuable input!
Long time member and friend, Luke Smith is our Spot Light member this month!
He was one of our first members to join Land Academy back in 2016 and is still one of our most active members.
Watch Luke talk about how he’s been outsourcing and expanding his business.
Listen to him talk about balancing home and work life especially with the kids home. HERE.
Watch and listen to our podcast!
We currently have TWO podcasts so you can catch us every week day. Our land podcast airs Mondays, Wednesdays, and Fridays. Our housing podcast airs Tuesdays and Thursdays. While they’re separate podcasts, there is a TON of overlap on information so make sure you check them both out.
Check out our Favorite YouTube Videos in April!
If you aren’t a member yet – why not? We would love to have you “in our corner.” Visit LandAcademy.com for more information on joining or to schedule a call with our team.
If you want an opportunity to attend one of the weekly closed member calls to get a taste of what we’re about, send an email to email@example.com