This is Episode 2,126. Jill and I are talking about, is re-mailing land offers effective? What this topic is about is this, and I have to say, I am not the author of re-mailing land offers. I learned this a million years ago from somebody in Land Academy over several years ago in a live event scenario where we were all talking about what makes us successful and what doesn’t.

Re-mailing land offers is this, I spend all this time and energy picking a market. I price it correctly and spend a substantial amount of time, and I’m all done. I wipe my hands and say, “Send it back to the printer, send offers to owners,” and it goes out in the mail and I buy a couple of properties. I’m lazy and it worked. I sent out some thousand letters.

A Question About General Net Percentage

I did two great deals. Why don’t I send it out again? Send it right back to the printer and say, “Mail it again.” This is something I would think, “That’s probably not going to work, but it’s magical if you get it into a system and re-mail offers, especially if slightly change the price.” We’ll get into the details of that. This week all week, Jill and I are talking about staying ahead of the land market in 2025. Each day on the show, we answer a question from our Land Academy member Discord forum and take a deep dive into a land-related topic by popular request.

Ben wrote, “Do you guys have a general net profit percentage? You work off of total revenue once you have everything up and running. For example, if you have a gross revenue of $100,000, presumably about $50,000 would be purchase costs plus your data costs, mailer costs, and closing costs. I think the actual net profit before taxes is around 30% to 35% of total gross revenue. Is that accurate to your experience? Trying to get our 1st, 2nd, and 3rd-year goals set, and this would help in establishing where we need to be to quit the day jobs and go full time.”

If you do this correctly, and I’m not saying you will in your 1st year, or even your 2nd year, but what we have seen with Land Academy members, and this has been my experience, is as follows. Around your third year of operation and you have less questions and more success, instead of more questions like you do in the beginning and a little bit of the last six learning experience learning curve.

At whatever point you hit the learning curve and you’ve hit the end of it, you will experience doubling your money buying and selling land. In general, if you buy property for $50,000 and sell for $100,000, you are going to land on that after you try other things. Trying to squeeze more out of a real estate deal is harder and with less success making less on a real estate deal is easy, but you have to do more deals.

Wherever you hit the end of your learning curve, you will experience doubling your money in buying and selling land. Share on X

Below that, you have your regular costs, so now you’ve got what I would call 50% gross margin if you are going to look at it 100%. You sold it for $100,000, and you paid $50,000 for the property, so you’ve got $50,000 from then to deduct regular business expenses. My long answer here is yes. Thirty percent to 35% is probably pretty accurate. If you look at any business, if you are doing 30% or 35%, you are doing incredibly well.

I choose not to comment because this is Jack’s area. There are ways he does all kinds of things I will tell you in our professional. In the personal world, when it comes to money and revenue and taxes and how we allocate things, 100% Jack.

Here’s the tip, wouldn’t it be great to take the cost of goods sold here or the actual thing that you are selling out of the equation? How do I do that? You use deal funding. You find a piece of property that you are going to buy for $50,000 and instead of buying it, you call us. Refund your deal. We help you sell it for $100,000, and we split the profit.

Now you’ve made $25,000 instead of $50,000, but you didn’t have to come up with the money. Now you have all this time and a lot less angst and worry and all of it about putting your own money into this thing, and you have the expertise of people like us in the back end of the deal. All you have to do is go out and buy great property.

You could do four of them at the same time.

Is Remailing Land Offers Effective?

Yes, or $40,000, because you didn’t have to write the check. I’m glad you asked this question. Our topic is re-mailing land offers effectively. It’s incredibly effective until it’s not, and it’s a very massive time and energy saver. As I said earlier in the episode, if you find an area that works now, this is what we do. We’ll re-mail it once or twice and we usually have success with that, but there’s a point where you are re-mailing it and changing the prices either up or down.

The whole point of re-mailing is this, the seller gets the offer from you, the first one, and the switch goes off and says, “These guys want to buy my property for $38,322. I talked to my wife, she doesn’t care. She doesn’t want to sell it. There’s nothing motivating me to call this person back.” Two months go by, they get an offer again from us for $31,300. What changed? I better call this guy because maybe he’s going to send me an offer 3 months from now, it’s going to be $28,000.

The other thing too is you are going to hit a different round of people. There’s also going to be people that shredded it right away. They didn’t even open. They are like, “Whatever. They threw it away.” It wasn’t the situation. It was January 20th, whatever it was, and that was not the day that they needed the mail, but guess what? On April 3rd, when we are staring at our tax return, now it’s the right time. I’m writing a check.

They didn’t give it any thought. They don’t even remember you or your name. They did not keep it. I noticed and we do it sometimes, when we hit good areas like, “This area is great. Let’s hit it again.” Maybe we are going to get more people or different people, and just like that because the situation now changed.

If you are in a fishing situation and you throw the line in, you pull a fish out immediately. Are you going to throw it back into the same place? Yes. You are going to probably try to hit targets pretty close to it. That’s my second and final point here. You found a place that works and you’ve hopefully got it for an amazing price, and the properties are now at the point where you are thinking about re-mailing.

Find a property that works for you and hopefully get it for an amazing price. Share on X

The properties are either for sale or sold the properties that you purchased. What I want you to do is change your offer. Consider changing, and adding to different acreages. Change the lure on the line. Send out the lure for some bigger fish. Get larger acreage property. There are sellers in this fishing hole that you found.

You did all the 1 to 20 acres, let’s say, and you killed it. You made a team. You did all the 1 to 20 acres, you bought 10, and you did great. Now you have an agent that you love. You have a real estate agent. You have a title agent that you love. You’ve got a little team started here. Why would you not go back now and go, “Now I’m doing all the 20 to 40 acres, and then I’m done with that? I’m going to go 40 and above, and then maybe when I’m done with that, I circle back around.” We have talked about this often. We move around because of the situation. Jack’s always watching the situation and pivoting to where we need to be, but in some parts of this country, you could be happily doing deals for multiple years in the same county hanging out.

Navigating Land Market Trends To Stay Ahead

We had a guy in Career Path who never left the subdivision. He knew everybody. It was a place where people were dropping mobile homes. It wasn’t a regular land market, but he came to us and said, “I need one more subdivision and I can retire,” and he found it. He found it during Career Path. Career Path is the Mastermind session that Jill and I teach once or twice a year. Join us in the next episode where we discuss navigating land market trends to stay ahead in 2025. You are not alone in your real estate ambition. We are Jack and Jill. Information and inspiration to buy undervalued property.