What do you do with an elusive seller and how do you maintain that relationship to secure that deal? We’re back with the 7th installment of the Do or Die series with Tracy where we witness her growth and potential in wholesaling with the guidance of one of our mentors, Brent Bowers. The journey has not been smooth for Tracy, but Brent is here to motivate and help.
In this episode, he coaches her on ways to keep in touch with existing clients to avoid losing deals and how to stay consistent in finding more sellers and buyers. It’s all about finding ways to get those land letter offers out there and getting that contract signed by any means possible. He also shares tips on what to do with land that just doesn’t get you the best buy while still making some profit out of it.
Does Tracy have what it takes to cross the finish line? Let us find it out in this episode! Listen and enjoy!
Do or Die Series – Episode 07 – How to Wholesale Your First Piece of Land
In this episode, we will get into the meat and the guts of what it takes to be successful in this business. We’re going to learn if Tracy has what it takes to cross that finish line. She’s been close a couple of times and lost a couple of deals. That can be hard for anyone, especially the person who is starting out and needs that win, that proof of concept that it works. Brand coaches are up and you’ll know exactly where she’s at, and how much closer she is to doing that elusive first deal. They talk about some of the conversations that she’s been having with motivated sellers and her mailing schedule. How much has she mailed at this point? How much longer can she afford to mail before she gets that first deal? This is truly a do-or-die moment. You’re going to learn a lot from it, so enjoy.
Tracy, give me an update. I know you’ve got a lot of things going on in the hopper. You got a couple of parcels of land and you’re dealing with a couple of sellers. Do you have any new calls come in lately? Any more mailers going out? What’s life looking over there on Tracy lane?
I did send another 300-piece mailer. I haven’t made any money yet, so it is scary to continue to pump money into mailers. My monthly fees have come out for PropStream and for my fax line. I’m starting to feel it a little bit. Part of it is good. Some of it’s a little bit scary.
That’s the absolute, I wouldn’t say a good feeling, but it’s a normal feeling to have. It’s not good. There’s probably been a few sleepless nights. I’ve been there, especially pumping mail out, but when that first paycheck comes, you’re going to want to double down your mail. You were at 1,500 and now you’re 300 more. That’s 1,800 total mailers. Did you pick another county, or are you still staying with the tried and true with the current counties you’re in?
I tried a new county. I figured I hadn’t found the spot yet. I’ll pick a different playground and go with it. I went off one of the places on the list in your course, hoping that’ll give me something good. I won’t know until I get those phone calls. I plan on doing another 300 mailers and keep going. The one property that is feeling good but mistaking a little longer than I was hoping is the property that I have where the seller said that he’s good with the price, he’s good to go, but he had lost the original letter. The last time we spoke, you said, “As soon as you get that signed, you can start then to market that property to try to find buyers.” I still haven’t gotten it back signed.
I was losing hope, thinking he was trying to back out, but then he called me and he was like, “I’m getting back with you. I still haven’t gotten the piece of mail yet. I don’t know if it’s because of the weather. We’ve had a lot of snow.” He said he didn’t use a fax machine. I was even going to do a mobile notary but couldn’t get in touch with him for a week. I don’t even know when and how. What I did was I was I’m putting another mailer in the mail. While I was waiting to get in touch with him, I could do the mobile notary in case I got in touch with him. Long story short, it’s been just to get the contract signed so that I can then market his property. It has been taking weeks and it’s frustrating.
I’m glad you sent out him another LOL. Some other things you could possibly do are like, “Who’s your insurance company? Who do you bank with? Do they have a fax number? How close are they?” Fax it right to them, and he can go and pick it up. We’ve had to do similar things like that. My dad uses his insurance company quite a bit for their fax machine. There are people out there who can get this letter to him, but no, you’re on the right path to send it to him. If he understands that you’re going to buy and sell this land and you’re marketing for a buyer, and he’s fine with that, as long as he knows what’s going on, I would feel comfortable marketing that parcel of land.
Go ahead and check out those immediate profits videos that I’ve done in the course and start finding the buyer for this because this is going to motivate you, even more, when you have a buyer ready, willing, and able to put down a down payment for the piece of land that you haven’t even purchased yet. I like to find and buy things that people are interested in, rather than go out and buy things and then try and sell it. I like to have a buyer waiting to give me money before I go and spend money on something. It lets me know that there’s demand.
Just because they don’t answer today doesn’t mean they won’t answer tomorrow.
One of the questions people ask me is, “What if I get stuck with the land? What if I can’t sell it?” If you have 1, 2 or 3 buyers lined up ready to give you a down payment the second you own it, it’s a no-brainer. I want to give you hope. We had mailed this county. We are purchasing a lot for $6,000. We’re using the title company to do it, but this buyer is in that county. My team followed up with him and I didn’t even know this was happening.
It’s a commercial lot in Colorado. We’re buying it for exactly $6,000, and we should sell it for somewhere around $16,000. That’s on terms. We’ll get a monthly payment for that. Let me motivate and inspire you. Let me tell you, there’s hope. Just because they don’t answer today, they might answer tomorrow. It’s cool there. There’s a lot of development going on around this area. Possible aquatic centers are going in, so we very well may be able to sell for even more.
I messed up on my number of $16,000. I’m confused about another property that’s $30,000. We’re purchasing it for $30,000. We bought another one for $4,400 that we’re selling for $16,000. Two parcels of land come in the door for us. One we bought for $4,400, we’re selling it for $16,000. One we’re buying for $6,000, we should be able to sell for around $30,000. That $30,000 one is right in your area for one of those parcels of land that you were communicating with the seller on that you were telling me about. You mailed out 300 more. You’re communicating with the seller. I would start marketing this thing on Facebook and Craigslist and possibly get some signs out. If he’s cool with you finding a buyer beforehand, there’s nothing like having confidence and knowing that someone’s waiting for you to own this land to pay you. Any other updates?
The only other one was a piece of property that would have been worth a lot of money, but there’s no water out there, so we’re letting that one go. I went back to the seller with a much lower price than what he originally got. He was like, “There’s no way I could give it away for that much.” There are things in there, but nothing’s closed yet. I’m being patient.
That happens. There’s often times when we’ll send out an offer letter and we find that there’s something with the property like no water or no access. It’s like a punch in the stomach to us as well as the seller when we have to go back and be like, “This is what we found. It looks to me there’s no water tap in this area available for your piece of land.” Often, I find that they act surprised, but they’ve owned this land for 37 years, and they know more about it than I have in the last three days when I’ve done my due diligence. Oftentimes, they already know this. They might think they have a sucker on their hands. It’s happened to me. I bought the land that wasn’t buildable and had no water. It was a huge crater in the ground, an actual lien on the land, or a cloud on the title. The sellers knew this. They just caught me.
This was in my beginning days and it sounds stupid to me to say it now that I got caught up in these tiny little mistakes, but I was trying to do this on my own and had to learn the hard way. It’s good that you found out before you wrote a good check to the seller for a bad piece of land. He more than likely already knew it. I often give them the information directly from planning and zoning, the assessors, or wherever I’m getting the information. If the planning & zoning department tells me that we can’t get water, usually I try and get it in writing, or I call the seller back and give them verbatim what planning and zoning or the water department told me.
We have a good report go. We were on the phone for a long time when I told them about the lack of water. They said, “To get water out there, it would cost about $75,000.” There is a neighborhood right over there far enough away where they like to tap in and it would be about $75,000. I still feel like there’d be builders interested and one of those scenarios where I guess I can’t get too attached or I have to keep moving on.
Here’s what I would do then. I would get it under contract for as little as possible. We’ll put it out there to the builders association, to the spec home builders, and to the flippers. “Call this guy tonight and see the lowest price you can get it for.” You told me you’re around $4,500. Maybe he’ll do $5,500, get it under contract and we’ll get it out to the builder’s associations and the Meetups, and the guys. This is how we find builders. You contact the builder’s associations. You go on the Facebook groups and get in touch with them. You look at the Meetups. You call that, “We buy houses,” people because I know the area you’re talking about. There’s a building boom going on. These builders are buying up land and sitting on it, and they will not sell the land. They’ll sell you a house, and the land will come with it.
I would keep in contact with this guy. Call him, establish rapport again, see what’s the lowest he could take, and get it under contract as soon as we get off of here. You got the two-page contract in the course. It’s under Make Quick Cash for Your Land. Let’s say you can wholesale it to a builder for $15,000. It’s eleven acres. Let’s say you buy it for $5,000 and you assign it for $15,000. There’s a quick $10,000 profit. I hope that pays for your fax machine for a few months.
I’ll give it a shot. We’ll see what happens there.
Go. You got this. You got a rapport with this guy. You’ve already made a friend. At the end of the day, that’s it. We’re helping people. We’re becoming friends with these guys. We’re solving a problem for him. I assume he’s owned it for a long time because you found them on the tax delinquent list, or did you pull that list?
I pulled that list. It’s been in his family since the ‘80s. They never built on it, never did anything on it, and now he’s with it. He’s like, “I want to get rid of it, but I can’t give it away for nothing,” so we’ll see.
Call him and get it under contract for the least possible. Get at least a 30-day inspection due diligence timeframe, “I want to see if we can do anything to get water,” anything that’s less than $75,000. Say, “I’ll assign it to one of my builders.” Be truthful with him. Tell him exactly what’s going on. He’s got time. It’s just sitting there anyway. Do you understand that course of action?
I do. I got it.
At the end of the day, it’s about buying land at a massive discount, turn around, and selling it. That’s it. You could either buy it and sell it on term. The goal is to get you passive income. We got to get you to $10,000 a month, but if you can make a quick $5,000, $6,000 $7,000 to offset your business costs and put some money in your pocket to be profitable, there’s nothing wrong with that. Sometimes, when we have to flip land or wholesale land ourselves, and what I mean by flipping land. We’ll buy super cheap and turn around and sell it or we’ll wholesale it by assigning the contract. That’s what we’re talking about here. We get these eleven acres under contract and then we’ll assign it to a builder.
I’ll have that lead to work on and then we got more mail heading out.
I’m looking forward to this new county. It’s all about building momentum. Keep pumping that pump until the water starts trickling out, and then it starts to flow. A lot of things have been going on in the United States right now as far as freezing temperatures. The pipe freezes and when it falls out, it explodes. Your pipes might be a little frozen right now but keep mailing and then it’s going to explode. Any other deals, updates you got going on, negotiations we should talk about?
Nothing pressing yet, but I have a couple of calls I got to make. I got to see what they’re doing from my first mailing, but this is it. I got to make something close.
It’s all about building momentum. Keep pumping that pump until the water starts trickling out, and then it starts to flow.
Write it on your chalkboard or whiteboard, “Something is closing in the next five days no matter what it takes.” Call these guys back. What about that waterfall lot you were telling me about? Any luck getting the sister out there?
I mailed him back that letter. That’s what we were talking about earlier.
What’s the holdup with that? Do you just need the letter? Why don’t you get a mobile notary out there to meet him and then get another one to meet the sister?
I couldn’t get in touch with him, so I snail-mailed another contract to him. He said he didn’t get it yet. I asked him if I can send out the mobile notary and he said it would not be good with his schedule and he didn’t know what her sister’s schedule was. I asked him for a sister’s phone number and he said he’ll get in touch with her. It was a lot of run around and he said, “I’m going to wait for her to get it in the mail.” He said he’ll go to his local store and get it faxed back to me the day he gets it. He wants it through snail mail. He was very adamant about that.
When I deal with sellers that are usually elderly, like 65 plus or 70s, I found that they do have their certain way. Sometimes we got to say, “Here’s our process.” If they want to do it their way, I get it. We’ve had to go down that route before as well. They’re set in their ways. That’s all I’m getting that. I completely understand.
I tried every angle. I feel like he’s very serious about it. We went through the whole process again. He said, “As soon as I get that letter, I’m going to sign it. I’m going to get my sister to sign it, and I’ll fax it back to you from the local store down the street.” I was like, “All right.” I’m going to be calling him back again. I’m going to see if he got that letter or not. I’m hoping, but with all the snow, I’m not sure.
You’re doing a good thing. You have a time set to talk to him again, and that’s the main thing. Always have that next appointment or next phone scheduled because I’ve seen some deals get passed up because it went 3 or 4 or 5 weeks, and someone else reached out and they caught that fish. As long as you’re keeping in touch with them, I feel good about it. Tracy, a lot of good things are going on. I know so because you’re still sending mail. You’re talking to sellers and landowners. At the end of the day, it’s about getting enough land offer letters out there. Have great conversations with people and it’s going to happen. It’s impossible not to.
I can’t wait to tell you that day has come and my first deal is complete. It’s close.
It’s always closer than what we think it’s going to be. Any questions before we go?
No, I’m ready to go. I’m ready to hit the ground running as per usual.
That concludes episode seven of the Do or Die Series. Be sure to tune in next episode to see if Tracy got any potential leads or any potential deals from the new mailing that she did or if she was able to still salvage one of the potential deals she had in the hopper. She’s a little deflated in this episode. She needs to make this happen, and she needs to make it happen fast. Be sure not to miss the next episode. We’ll see you next time.
About Brent Bowers
Brent 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.