Posted on: February 19, 2021
WI 628 | Wholesaling Land

 

This show is the fifth day of the nine-day Do or Die Series. To recap, Tracy Krol is a teacher who has a big goal of hitting $10,000 monthly in the next nine months by wholesaling land. Previously, Brent taught Tracy about the four critical metrics to track to build a successful land business. He also deep-dived the script in handling seller responses.

In today’s episode, Tracy updates Brent on her mailing and her experience handling her first phone call using the script. She also shares the challenge of locating a lot online as the basis for having a fair offer and her exit plan and her mailing plans.

So, how much closer is Tracy to hitting her goal of $10,000 per month? Listen to this episode and find out!

 

Do or Die Series – Episode 05 – How to Wholesale Your First Piece of Land

Episode Transcription

We’re going to find out how Tracy is doing with our mailing and if she’s being consistent with getting that mail out. We’re also going to learn, how is she handling her leads? Has she spoken with any motivated sellers? Is she struggling with those phone calls and having to work a full-time job? We’re going to learn the answer to those questions and many more in this episode. We’re going to see how much closer Tracy is to hitting her goal of $10,000 per month. The clock is ticking. Can she do it? Let’s see how much closer she is in this episode.

Tracy, where are we at in the mail?

I’ve already sent out probably about 400 pieces of mail. I was realizing from when I got started, I don’t feel like I was doing enough mailing and I didn’t factor in that it takes some time to do the evaluations, plug that in, and get it on the Excel sheet. By the time it gets sent to the place, there’s a lot of little steps I wasn’t considering. By the time I would send it, it took a few days for the mail to go out. I now realize I need to be sending more mail consistently and come up with a schedule.

What’s the plan ahead for that? I know you said you’re about to pull another list on PropStream. How big of a list are you going to pull? Where are you at with that?

My first three lists have been pretty small. They’d been under about 300. I’ve done three lists, all under 300 mailers. I would like to pull a list of like 1,000 to 1,500. I have a big mailer out there. I did finally get a phone call. That’s my big news.

I love the fact that you’re about to send 1,000 less than 1,500 because here’s the thing, I start to see things coming in, things happening. Offer letters being sent back, accepted calls coming in when you hit that three-and-a-half-week mark. That’s usually around anywhere from 900 to 1,500 letters. Once you hit that, you’re going to start that old momentum or like I always say, “You’re pumping that old time.” Keep pumping it and eventually, the water will start flowing. Once it does, you can slow down a little bit, but you’ve got to keep pumping that what I like to call deal flow or water flow. Keep it going. Tell me about that phone call you received. Out of 400 letters, you’ve already received a phone call. What did that sound like? What did it look like? Were you nervous? How did you get through it?

When I saw that it was from one of the areas that I mailed to, my heart started racing. I didn’t want to answer the phone call, but I knew I should. I fought that feeling. I picked up the call and I pulled up my script. I had something to go off. It went well. I was a little nervous. I was like, “I don’t know if this guy’s going to yell at me, if it’s going to be a negative encounter.” The minute I started to say this script, it flowed. I asked him the questions. I asked him about the land.

It turned out that both of his parents are passed and him and his sister own this piece of land that they never go to. They are never going to use it. The circumstance seems good and we started to talk about the offer that I sent. I asked him if that was the lowest price he can go. He said the only thing holding them back is that he owns it with his sister and he has to have that conversation. Some questions I had is, “What do you do when you have someone dealing with the fact that they’re not the only one on the deed?”

I say, “Get her on the phone. Could you call her? Do you want to give her a call? I’m looking at a few other properties, but since I already have you on the phone, let’s go ahead and talk now. What’s her name?” “Her name’s Sarah.” “What do you think Sarah is doing right now?” “Let’s see. Let’s give her a call.” I would probably get that guy a call back as soon as we hang up and get the sister on the phone and be like, “I had another property come about, but I’m also interested in yours as well. I got to figure out where I’m going to put my money.”

I don’t like to necessarily lie. I like for other properties to be coming in because a lot of times when we say that, it’s 100% truth. We’re looking at eight properties and we’re eventually going to buy all eight. They might be in a separate order, though. That’s become true and reality, but you could pull up a property on Zillow while you’re talking to this seller. That way you are being 100% honest, “I’m looking at another property in the area. I’m trying to figure out which one to buy.”

The one you’re looking at on Zillow is probably going to be more expensive. That’s okay. You’re being truthful. Get her on the phone. I heard this example, you have this nice classic car in your garage, you know it’s worth a ton of money but there’s dust collecting on this car in this garage and you haven’t taken it out in months and it’s taking up space and then someone sends you an offer letter for that exact car. It falls in your lap.

What are the chances of you selling it? Probably pretty good because you haven’t driven it in months. It’s collecting dust. It’s taken up all of the space and your husband is telling you get rid of it. Let’s put it in another scenario. This car is in your garage and your garage is in Florida, but you live in Pennsylvania. You’re going to be more likely to sell it. That’s all this is. It’s a piece of land they never go to. They’ve been paying the taxes on it. They inherited it from mom and dad. They have no emotional ties to it. Help them out, get them back on the phone.

I did well and then that stifled me but it makes sense in that moment to get her on the phone. He did say he was going to call her, and we had a time scheduled, but I like the idea of even getting them back on the phone.

Have you ever gotten mad at someone? What have you ever sold before? Have you ever sold a car, a bicycle, a phone, or anything? Give me an example of stuff that you sold.

Don’t be afraid to spend money on lists and mail. You just need to get it out the door. Once you do that, everything else starts happening.

I sold some stuff on the community page, like a dresser, whatever.

Have you ever gotten mad if someone sent you a couple of messages and one phone call because they were like, “I got to get this dresser?” Have you gotten mad at that person for being too aggressive to give you money?

That’s a good point.

There you go, then can get them on the phone. If they don’t answer, you got the time set. That’s great job setting the time because I never liked someone to say, “I’ll call you back.” I want to keep control of that. I want to call them back when we set the time to call back even if you don’t get them on the phone, great job. Set it up next time. How did the script go? I know you mentioned that. I know you said it flowed, but did it make sense? Did it help? Did it give you the confidence to talk to this seller?

It’s good to start. Because he was with the whole situation with the sister, it was hard to lock down a price or how he even felt about the price that I put in the offer letter. I didn’t want to push too hard on that because if they’re both going to be making the decision, I didn’t know if you would try to lock him into a price without her approval, so I let it be but then we moved on to setting the appointment.

Stick with your guns. If you can have them both on the phone, that’s fine. What did you offer for that land?

I believe it was $1,500.

What can you sell it for as far as retail?

I had a hard time finding this land when I was putting in the VIN number. That was another little hiccup. It took me a couple of hours to figure out how to get to the site, to find the land because it wasn’t popping up on any of the sites that I normally use, but I did finally find it. I don’t know much about it, but it looks like it’s a residential area with other houses and it’s an empty lot. That’s what he told me that it’s right by a waterfall and he’s like, “I don’t like the mountains. I never go over there.” It sounds wonderful but I have to do more research.

It sounds to me like it’s an absolute gold mine. If it’s a buildable lot next to waterfall, what are we talking, $15,000, $20,000 lot?

$20,000 to $30,000 is what I was seeing.

What’s your exit plan going to be on the slot if he accepts this $1,500 offer?

I would probably want to ask you a million questions after that.

I’m glad because here’s what my exit plan would be. What would be the hardest way to find a buyer? Would it be to say, “I need $30,000 for this lot? I need $1,500 down and I’ll hold the financing for $27,000 over the next six years at 9% interest at $599 a month?” How many buyers do you think would be in that pool that can afford a monthly payment of $500 a month? How many buyers do you think would be in the pool that can come up with $30,000?

WI 628 | Wholesaling Land

Wholesaling Land: Getting a deal flow is like an old school pump. You need to keep pumping. Eventually the water will start flowing and once it does, you can slow down a little bit.

 

There will be a ton of buyers if they’re able to finance it.

That’s how we sell most of our land and that’s how the passive income is created. That replaces the car payment, the cell phone payment, and the insurance payment, that $1,599 a month or whatever, and you get your $1,500 back so fast. Let’s do it. Get them on the phone, call me as soon as it’s done, and let’s do this. Back to your mailers. What are you doing?

I’m getting a huge list of 1,500. I’m going to prep it. It’s ready to go and I’ll drop it. I want to send it out to my mailing company.

Fifteen hundred letters going out. Think about this, Tracy, this should give you the vision, the confidence, and the proof of concept that this works. You sent 400 letters out. You’re about to buy one for $1,500. You’re going to buy it for $1,500 and turn around and sell it for $30,000 on financing and get your first passive income no coming in. You know this works already. This should be the confidence. Pull that trigger on the 1,500. This is a business. Think about this. How much money would you say you spent on this business so far?

Maybe $600.

$600 to make $30,000. Imagine most businesses starting out how many hundreds of thousands of dollars it takes to start a business and how many years it takes to become profitable if they make it past the first five years. You can start this business on such a small amount of money. Don’t be afraid to spend money on lists and mail. You get it out the door. Once you get that great deal, everything else starts happening.

The first phone call pumped me up because one thing that we said back from the beginning was it’s either that I don’t trust you or I don’t trust the system. I trust you. As I’m sending out mailers and spending money, I always get that knee-jerk reaction to get scared that it’s not going to work. Getting up on the phone with someone, who is interested in selling me their land and I’m thinking, “This works.” It’ll work for me.

It’s so true and most people think, “What’s the catch? This can’t be that easy.” My first deal, my first lot that I purchased, was $285. I looked at the land. It was at two lots side by side and I was so scared. I did not pay the seller until I had a buyer lined up to pay me the next day. Here’s what it looked like, that buyer was a realtor paying me $5,000 the next day. I could not write that $285 check until I had a contract with that realtor for $5,000, because I was like, “There’s no way, I can’t do this. It’s too good to be true.” There’s the catch. Even though my wife and I went and looked at this land, it was the most beautiful piece of land ever overlooking the Pike National Forest. I still didn’t believe it and then I did a second one and the third one and by about the fourth one, when I had all this cash in my hands, I started to believe it. You’ll be there. You’ll get there.

I’m excited. I am pumped up.

Call me or text me, let me know that you got the list. Let me know how it goes.

Thank you, Brian.

That concludes episode five of the Do or Die Series. Be sure to tune in next episode, where we’re going to learn if Tracy was able to land that whopper of a deal. If not, does she have another potential deal waiting in the wings? We’ll see on the next episode. See you next time.

Important Links:

About Brent Bowers

WI 623 | Wholesaling LandAs an Army Officer with over 8 years of service, Brent Bowers 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. His interest in real estate began in 2007 when he purchased his first home, so Brent began exploring real estate investing as a way to support his family while being able to enjoy more time with them as well.

In a short amount 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.

Leave a Reply

Your email address will not be published. Required fields are marked *

Wholesaling