Posted on: February 05, 2021
WI 618 | Wholesaling Land

 

Welcome to Day Three of the nine-day Do or Die series. In the series, Brent Bowers walks Tracy Krol through how to buy her first piece of land and sell it at a premium retail price to make it affordable for someone to buy a piece of land on a monthly payment basis and help her accomplish her dreams.

In today’s episode, Brent shares his tips about the mail tool: who, what, when and how. We learn everything you need to know to follow along and get your first land deal step by step and the right mindset to be the CEO of your company and earn a minimum of $500 per hour. Brent also talks about the importance of delegation and what the Land Offer Letter is and why it is essential to success in the wholesaling business.

Listen to this series on the masterclass on building a Land Wholesaling Business from the ground up. Don’t miss this opportunity to learn!

Do or Die Series – Episode 03 – How to Wholesale Your First Piece of Land With Tracy Krol

Episode Transcription

Welcome to Episode Three of the Do or Die Series. In this jam-packed episode, you’re going to learn the who, what, when and how to mail. How many pieces per week, what to send, how to send it, as well as all the tools, the mail houses, everything you need to know to follow along and get your first land deal step-by-step.

Brent breaks it all down in this episode, and you’ll also learn how to become the CEO of your company and earn a minimum of $500 per hour and why delegation is important. Delegation in this business is everything. Brent is also going to talk more about the LOL letter, the Land Offer Letter, what it is and why it’s essential to success in this business. This one is literally a masterclass on how to build a land wholesaling business from the ground up. You’re not going to want to miss a second of it. Enjoy.

I have Tracy Krol. We’re on episode number three of our nine-day Do or Die. I’m walking Tracy Krol through how to buy and sell her first piece of land. We’re getting land at massive discounts. We’re turning around and selling it to the masses at a premium retail price because we’re making it affordable. We’re offering monthly payments and the ability for someone to come in and buy a piece of land on a monthly payment and allow them to accomplish their dreams.

To do a quick recap with where we’re at, Tracy had a goal of earning $10,000 a month in nine months from starting this program. That is a Herculean task. It’s going to be a huge accomplishment. It’s going to take a lot of work. She’s going to have to get uncomfortable, but it is doable. She’s no longer going to have to drive that car with transmission problems. She’s going to be able to go and see her family anytime she like by jumping on a plane and going for first-class and cheese on the sides and not even thinking about money or car payments. Tracy, are you there?

I’m here. I’m excited. I’m pumped up.

I know you had a lot of questions, and we were talking a little bit before we started, but I want to recap with where we’re at so far. We’ve covered a lot of ground, and it’s going to be probably a shorter episode. I think the absolute most important in this is getting your mail out the door because we want to get our letters in the hands of people that need us, that need to sell their property, need to get rid of this burden. They’re behind on taxes. They’re about to lose it. Some people are happy that they get this offer letter, and they actually get money in their hands because they’re far behind on taxes, they can never pay them up. This is going to help a lot of people.

Let’s talk about where we’re at so far. You’ve picked your playground. That’s your county that you’re going to be working your land business in. You’ve got your gold list, which was the tax delinquent list. You built your Excel spreadsheet of the sellers or landowners that need to hear from us, and then we’re going to be talking about the Land Offer Letter or the LOL as what I call it, because when people receive it, sometimes they laugh out loud. Every time I get a fax back, an email back or they mail it back to us with a signed accepted offer at a massive discount on their land, my team usually laughs out loud. Tell me, how is it going? What are the questions? I know you were talking with some friends. It’s been a long couple of days since we’ve talked. What do you have, Tracy?

I will say I’m a teacher. I’m a good student. If you tell me to do something, I do it and up unto this point, honestly, it’s been easy because you call up some counties, get a list, edit the list. I was able to do that pretty easily and feeling good about myself. Now that we’re moving to the next step, I went in a little nervous because I’m going to have to start investing some money with these things.

I was talking to some friends and they’re like, “Is this a pyramid scheme? You are spending all this money and then not get anything in return. Someone else is getting rich off your dime.” I was trying to explain to them that it’s not, but then I also found that I was feeling down and cynical about the whole thing again.

It happens. I would tell my friends and family what I was doing when I was first starting this. One day I just stopped doing that because I found out they were different parts of their lives. They’re not entrepreneurs. They were W-2 employees working for somebody else, being told what to do every day and getting a check every two weeks. I can assure you it’s not a pyramid scheme because those are illegal, and there’s no hierarchy whatsoever over you.

It’s not about the money. It’s about solving the problem.

At the end of the day, we’re just sending letters to people, asking them if they’d accept our offer on their land or buying it massive discounts and turning around and finding buyers that want this land. They can’t just go and pay for it all at once, purchase it from a realtor, or a bank won’t loan them the money. We’re offering them the land and the financing. It’s a very simple strategy.

You have been an amazing student. Kudos to you. It is about to get uncomfortable. When you start spending money on mail and sending these letters out, it’s very uncomfortable. Let’s track the data. Let’s keep up with how many dollars we’re spending, how many letters were spent, we’re sending out and then how many accepted offers because it’s all about the data, not the drama. Don’t get emotional about this. Just know this as an investment. Every single dollar you spend is going to bring you back $3 or more.

I look at it that way. Whenever I hire a new team member, I don’t look at them as employees or an expense. If you’re looking at your team or your mail as an expense, you’re in the wrong mindset. If employees or your team members start to cost you money, they are an expense. They’re no longer an investment. We look at this all as an investment. This is spending $1 today to make $3 tomorrow. What else? What other reservations?

I guess it is coming down to the list and making sure that what I am mailing is in the right area or knowing that I found a place to mail that will make that $3 on my $1. How do you feel comfortable knowing like, “I found the right place,” or does that not matter at this point?

It does matter. You don’t want to pick a bad county, and I haven’t come across bad counties. The way to mitigate that risk is you want to know what’s going on in that county. You want to see volume. How do we tell if there’s volume? We go to the experts. To recap from the last episode, I never want you to be the expert. I don’t want you to be a property appraiser understanding the ins and outs. The experts or realtors, Zillow and the land sites. The land sites are LandWatch.com, LandFlip.com and LandCentury.com.

I want you to be able to see volumes happening in these counties. How do we see volume? I want to see it sold at Zillow. I want to see stuff that’s actually for sale and listed on Zillow. I want to see stuff for sale in this county on LandWatch.com or LandFlip.com and LandCentury.com. If you see volume, you’re fine. That’s it. Let’s not get glued into this. We are full volume. We’re seeing what’s happening and by us seeing what’s sold and what’s for sale, we can figure out what that land goes for at hard retail price, what it’s sold for and then we back out. We reverse-engineer it or backward plan it. We see what we’re going to offer.

If we’re trying to offer $0.30 on the dollar and we see the land is going for $100 an acre, we’re going to offer $30 an acre. If we get a fish to bite on that, we know we’ve got a deal, and 99 out of 100 people you mail are not going to accept your low-ball offer. We need to understand that. It’s about 199 out of 200 are not going to accept it but that one person that needs our help, they want to sell at a fast discount or be convenient about it and get it done quickly, they’re not going to care. It’s not about the money. It’s about solving the problem. Does that make sense, Tracy?

It does.

Any other questions before we get started on the action steps?

No. I’m ready.

WI 618 | Wholesaling Land

Wholesaling Land: At the end of the day, it’s all about the data, not the drama. Don’t get emotional about your investment. Every single dollar you spend is going to bring you back $3 or more.

 

Building the LOL or Land Offer Letter, we’re filling in the blanks. I sent you the Land Offer Letter, and I know you had a copy of it. The first thing is you want to put your name on there. Some people have reservations, “Do I put my name? Do I have to go out and get an LLC?” In the beginning, I didn’t worry about an LLC. We made almost about $100,000 in land before I had an LLC. I’m one of those people. I want to get revenue in the first position. I want money to come in before I start spending too much. Obviously, we’re going to have to invest some money, but I want to keep that as a minimal investment.

You can make that decision yourself if you have an LLC or if you want to use an LLC. In most states, you can go online to the secretary of state and get one for like $50 or you can hire an attorney and they charge $250. It’s your choice or you can just put your name on there and start making some money and then eventually hire an attorney to do it. That’s up to you how you want to do that. Obviously, talk to your attorney about it. They’re probably going to recommend an LLC to keep you safe with that.

Next is the phone number. You want these people to get a hold of you if they want to. They want to talk to you. A lot of people think this is a scam, like, “You’re offering you money for this? I’ve never even stepped on this parcel of land. How do you know I’m the owner?” A lot of people wanted to talk to a live person. I get a phone number and I don’t put my cell phone number on it. I don’t put my home phone number on it. I don’t know. You might not have a home phone number. I don’t think anybody does anymore, but I buy a phone number from CallRail. They’re $3 a phone number. For each mailer I send out, I have a different phone number for each county. That allows me to get the actual local area code for that county as well. Does that make sense with the phone number?

Yes. I was going to ask about that because I didn’t want to put my cell phone. That makes sense.

Never put your cell phone. Never put a personal number on these. Then that leads me into your return address, your mailing address. Never put your home address as return mail. I would buy a UPS box, a post office box, or shared spaces that will allow you to use their address, coworking interior spaces. I think my UPS box cost me like $100-something a year. We also have our office, but I don’t even put my office return address on there because I don’t want people showing up.

There are some crazies out there, and sometimes people get very offended when you send them a low-ball offer. I haven’t had anybody ever show up to my office or house, but I don’t want that to ever start. I don’t put my return address of my office or my house. I use a PO box. I use a UPS box. Actually, I use a UPS box. I suggest the PO box or UPS box for that.

That’s pretty easy to set up because if I wanted to do my mailing, I would need to know what that address is.

It’s very easy to set up. If you’ve got a local UPS store, a FedEx store, a coworking and shared space or the local post office, the local post office is probably going to be the least expensive.

It’s probably the scariest, especially in Baltimore City.

There are some virtual mailboxes. You can literally just google virtual mailbox and there’s some out there. There’s one that’s called Phoenix Digital Mailbox. I’ve never used any of these. However, I have some other friends in the land business that use these virtual mailboxes and they swear by it. They scan everything they get back in the mail. You never actually have to physically touch it either. Just Google virtual mailboxes. I gave you a lot of options there. That’s your personal preference. I do not like to touch mail ever. I cannot stand mail. I actually have my office manager go and pick it up from our UPS box every single week. He sorts it and then tells me about the good stuff.

You’re the CEO. You’re the owner. Your time is $500 or $1,000 an hour. Start thinking in terms like that.

Very important, a fax number. You might be thinking, “Who in the world faxes nowadays?” Think about the people we’re mailing. A lot of times, they’re in their upper 50s and 60s, and they still have access to a fax machine. I want you to go to LandSharksFax.com. There you’ll get a fourteen-day free trial, and I believe it’s $10 a month, $10.99 a month or something like that. We put a fax number on our Land Offer Letters because we probably get more faxes back, and we do phone calls on these emails and return letters. Fax is number one. Think about it. The people we’re mailing have fax machines. I don’t understand it. I thought it was crazy. We just wanted to give people all the options possible to communicate with us, and lo and behold, we get faxes back.

It looks like I’m getting a fax number.

The last thing is an email address. Gmail is free. You can set one up with Gmail. You can have TracysLandBusiness.com, TracyBuysLand.com or TracyBuysLand@Gmail.com. Keep it something simple. Unless you want them to have your personal email, then that’s fine. We have a simple email on there. It’s like AdminExecBuysLand.com for us. Does all that make sense with the Land Offer Letter?

It does, and you answered my question. I was looking through the letter and I was thinking like, “If I got this in the mail, I would think it’s a scam.” This seems like, “How did this person know who I am?” The same questions you went through. When you get those phone calls, are people asking you, “Is this real? What’s going on here?”

A lot of times, they’re very pleasant phone calls. They’re like, “I just received a letter for $90,768 for my 37 acres. I just wanted to see if this was real or if its offers are still available. Don’t you ever dare insult me ever again for this.” What’s amazing is we don’t get a ton of phone calls about these, but most of the time, it’s because they think it’s a scam and the other type of phone call we receive is, “Is the offer still available?” The last one is, “Can you pay me more for it or would you be willing to pay this for it? I would love to sell it, but I can’t let it go for this much.” We have a conversation and then usually a conversation turns into something good, and then sometimes it gets put on our follow-up schedule.

Do you have in your mind a number? Say you offer $9,000 for it, are you thinking, “The highest I can go is $13,000?” Do you stick with your initial offer?

Usually, we stick with our initial offer, unless it’s like splitting hairs. If it’s close, we will come up. I had this conversation with my father. He had a seller and I think my father’s on number 36 land deal. He’s done manual labor his entire life. He’s needed to change for a while. He’s picked up land and he’s got a very good strategy with sending these letters out. He does just enough. He’s not trying to run a multimillion-dollar business, but he had a seller selling a piece of land in North Florida. He wasn’t interested in it because he didn’t want to have anything to do with North Florida.

I came up with an offer for her, and he was like, “You can start low and eventually go up.” I said, “No, I’m going to stay with my offer because we make many offers on land that if they don’t take our offer, it’s okay. Someone else will.” I had that mentality, that mindset. I’ve just got to send enough offers out there for eventually someone to accept one. Now, if we’re just a couple of hundred dollars off or whatever, if it’s something simple and we’re still going to make plenty of profit on it, I don’t mind increasing it. That’s not a big deal, but if they’re asking for several thousand dollars more, absolutely no way.

I want you to start thinking about looking into some type of CRM, a Customer Relationship Manager, because that’s one thing that’s going to be very important as you start sending many offer letters out, and we’re talking to a lot of sellers and then eventually buyers. You want to have something in place to start collecting all the data. I like for it to be automatic. These phone numbers will go into the CRMs automatically. When you get an email response back, it will go into your CRM and you get the fax back. It’ll go into your CRM. I don’t want you having to keep track of all this on spreadsheets. I used to do it on sticky notes. They would fall through the cracks in my car and I would find it later, and the deal will be long gone.

We use Pipedrive. It’s set up for salespeople. Pipedrive is simple. It’s very affordable. The reason why I like Pipedrive is because I use some developers, and they’re actually out in Australia. They’re amazing. We tell them what we want to do that day and we wake up the next morning, it’s done. They’re on the other side of the world. They’re working at night when we’re sleeping. They’re daytime. It costs a little bit of money each month. It’s okay to bootstrap in the beginning, but we always want to think about automation and delegation. We don’t want to ever do anything forever. That’s why I love Screencast-O-Matic. It is free for your first fifteen recordings, but after fifteen, it’s like $48 for the entire year.

WI 618 | Wholesaling Land

Wholesaling Land: These letters are getting opened. People see that it was a manually placed stamp and a handwritten letter. They’re not throwing your letter in the trash. It’s getting opened, it’s getting seen and that’s what’s most important

 

As you’re finding yourself doing a task, you need to record your screen because there’s someone else out there that will do this for less expensive than your time is per hour. You’re the CEO. You’re the owner. Your time is $500 or $1,000 an hour. Start thinking in terms like that. Don’t think about your W-2 job as a teacher. You’re probably on salary, but you probably have an only per hour. Let’s just call it $20 an hour as a teacher. Correct me if I’m wrong. What do you think you make per hour?

I think it’s about $30 an hour.

I didn’t mean to discount you there. You make $30 an hour coaching teachers on how to be better teachers. Think about your land business as you always want to make no less than $500 an hour. If you know that you could pay someone say, $10 an hour to do this task, you’re still making $490 an hour. Does that make sense?

It makes sense, and it sounds incredible.

Always think like that. You don’t want to be doing the task. You want to make sure they’re getting done, but I understand limited budgets at first. We’ve got to get some revenue coming in and that’s coming. Let’s talk about the mail house. This is going to be your first team member since you scrubbed the list. When I first started, I had my first team member helping me scrub the list. You scrubbed your own list. Your first team member is going to be the mail house. My second team member was in the mail house. My first team member was my list scrubber.

I want you to go to LandOfferLetter.com. This is a company that will help you get your mail out the door every single day, once a week, once a month, however often you like to do it. I recommend mailing at least 300 a week. I know you got a small list on tax delinquents. You pretty much narrowed it down to about 160. You’re going to have to use a list provider, and I used PropStream to do that. By going to the LandSharksList.com, you can pull a list and get more data, more land mail, more landowners because you’re still going to find that some of that land on the list that you pull is on the tax delinquent list.

Your list is so small, you’re going to burn through that in three and a half days. That’s why we need you to go to LandSharksList.com, and get your seven-day free trial to PropStream. Pull a list of vacant land in your county. That way, you have more to mail when you burn through those first 160. Does that make sense?

It does.

Back to the mail house. I want you to send this mail house your Land Offer Letter, with all your data on it, your name, your phone number, your email, your fax. You’ll also turn over your Excel spreadsheet that you built with these landowners, their names, their addresses, the most important is the offer amount. They are going to do something called mail merge, and I don’t want to get too technical, but they take the stuff off of your Excel spreadsheet and put it on the LOL and send it out.

What’s cool about this is they do it in a handwritten font on your envelope, and then they manually placed the stamp on it. These letters are getting opened. People see that it was a manually placed stamp and a handwritten letter. They’re not throwing your letter in the trash. It’s getting opened, it’s getting seen and that’s what’s most important. Go to LandOfferLetter.com, sign up with Tara, and they will take completely amazing, good care of you. Any questions about that?

It’s okay to bootstrap in the beginning, but we always want to think about automation and delegation.

No. That makes sense.

The next time we talk, we’re going to be talking about what to do when you receive one of these accepted offers or these LOL back, whether it be via mail, email or they call you. I’m going to walk you through a script of what to say when they call. That way you get the biggest discount possible. When they call us it’s pure gold because we get a bigger discount.

When they send it back signed with their signature, their phone number and their name and their address and their email, we call them and just let them know, “We got your offer.” Usually, we get a bigger discount by talking to them on the phone. Next episode, I’ll tell you exactly what I mean by that. I’ll walk you through the scripts of what to say when you get one of these accepted. Does that all make sense?

I’m ready to do my first mailing.

Any questions before I let you go?

No more questions from me yet.

Thanks so much. Call me if you need me in the meantime, and we’ll talk soon.

That wraps up Episode Three. I hope that each of you is following along, not just reading, but actually taking action on what Brent is doing here with Tracy. At the end of the day, that’s the goal. Not to consume content that makes us feel better about ourselves or smarter. It’s all about taking action on what we are giving you here because we know it works if you do the work. In the next episode, we’re going to learn if Tracy was able to get our mail out. What kind of responses is she getting? If she has gotten responses, how is she dealing with them? Until next time.

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About Brent Bowers

WI 623 | Wholesaling LandBrent Bowers is an investor and coach with a focus on buying and selling vacant land. As an Army Officer with over 8 years of service, Brent was spending a great deal of time away from his family, and he knew he needed to make some changes in order to be more present with his wife and children. In a short period of time, Brent was able to expand his business,  hire a team, and (most importantly) spend quality time with his family while still working hard and helping others.

While Brent invests in many different types of real estate, his favorite investment strategy deals with buying and selling vacant land, and he enjoys sharing his expertise in this area with his coaching clients. Brent chooses to live his life based on Bob Burg’s quote, “Your influence is determined by how abundantly you place other people’s interests first.” He is passionate about helping other people find success in real estate investing, particularly in land investments.

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