You don’t always have to know all the answers right away. This episode is the eighth day of the nine-day Do or Die Series, where Brent helps Tracy Krol to land her first land deal. In the past few episodes, Tracy has been experiencing hurdles in closing her leads, and things are getting intense as this series approaches its end. It is indeed a do-or-die for Tracy. A lot is in-store for the listeners in this episode as they will gain more valuable knowledge, especially on what to do when you do not know what to do or when you do not have an answer to a question from a buyer or seller. Watch out for the incredible coaching moment and some gold advice in this episode with Brent and Tracy.
Do or Die Series – Episode 08 – How to Wholesale Your First Piece of Land
If you’ve been following along, this has been one heck of a ride. Tracy has gotten close quite a few times but she hasn’t been able to close that first deal. Does she close it in this episode? You’ll have to read to find out. You’re going to learn a lot in this episode. One of those things that you’re going to learn is what to do when you don’t know what to do or when you don’t have an answer to a question whether it be from a buyer or seller.
I know it sounds like I’m being a little bit elusive here but there is an incredible coaching moment here in this episode where Tracy is in exactly that position. She doesn’t know how to deal with something and Brent’s advice is gold here. You’re going to get a lot out of this episode. I encourage you to keep rooting for Tracy. It takes a lot to put yourself out there like that and get vulnerable in front of tens of thousands of people. What she is doing is not easy. It has been exciting to read and follow along on this journey in real-time, which makes it even cooler. Enjoy this episode.
I know it has been a long week, a long day. You texted me about something. Let’s start with the good news.
The good news is I sent out an offer and I had a very interested seller. I offered $28,000 because it was 11 acres in an area. That’s hot. I was thinking things are good and then I found out that the seller was like, “I love that price. I’ll take it.” I looked into the property and figured out that it doesn’t get water. That took the offer way down but I kept a good rapport with the seller and we stayed in contact.
He said to let him know if I can do anything for him. I did try to get it low to $4,500. He was like, “Absolutely not. That’s way too low for me. Keep me in mind if you talk to any developers and you can make something happen.” I was on the phone with him. I got him down to $20,000. It may not be the most ideal $0.20 on the dollar but I’m thinking maybe I could wholesale it or make a quick buck to keep my marketing going and fund some of the stuff that I’m doing to make that passive income.
What’s the road ahead as far as getting that under contract? Does he have a purchase agreement yet?
He has the one that says $28,000. I told him that he could change the price there, sign it and send it back to me. He said he would do that.
I would get the two-page purchase agreement sent over to him. It could be via email, DocuSign or however is the easiest. We need him to sign that because that’s an assignable contract. We’ll get that thing signed. In that way, you’ve got an assignable contract. We’ll start marketing that thing everywhere, Craigslist, Facebook or signs. You name it. Every single builder association, Meetup groups with builders and tell them everything you’ve got. Try and shoot for $10,000 all day. Get that two-page contract. It’s in the course. It’s listed under Make Quick Cash for Your Land. Are there any other updates on the other property? You had one more.
The big thing is I’m getting them so close to that first deal. I’m feeling it. I’m excited about it. I have everything I need to start marketing it. I went to market it. I joined a whole bunch of the buy-and-sell groups on Facebook. I joined over 30 of them. On Craigslist, I started to make a Craigslist ad. I even skip traced the phone numbers of the neighbors in the area but then I completely froze. When it came time to make the ad, I started getting this anxiety about, “What if a buyer calls me off of one of these ads and I have no idea what I’m talking about?”
In life, you’re never going to be ready. You go when you’re ready enough.
I started to think about the fact that I’m not 100% confident that I know everything I need to know about this land and about how much the HOA is. I called them but I got a voicemail. I haven’t heard back from them. I’m wondering, “How much information does a buyer want from you? What do you have to know for them to feel comfortable buying land from you? Also, do they try to negotiate the price often? Do you ever change the price for them? How do you go about the point where you’re getting buyers contacting you?”
It sounds like you froze because you felt like you didn’t have enough information. “In life, we’re never going to be ready. We go when we’re ready enough.” That quote came from your brother, Tom Krol. I don’t know if he has ever told you about that but you’ve got enough knowledge to get you through this now. Tomorrow’s knowledge will come tomorrow to get you through tomorrow’s day.
Post your ads. I cannot encourage you enough. It is so important to start marketing this property, almost as important as it is to send your mail out to get this property under contract. Now, you need a buyer with cash in hand, ready, willing and able. You will have so much confidence when you have a buyer that’s going to put $3,000 down, your purchase price for this piece of land and pay you. What are you going to sell it for? $50,000 or $40,000? What’s the total price you’re selling this land for?
I’m thinking of $30,000.
They’re going to put roughly 10% down. It’s too easy. You’re not asking for any credit check and background check. Job security doesn’t matter. You’re going to let them put 10% down and make monthly payments, easy payments. When they pay it off, they’re going to have the most beautiful piece of land. You were telling me about a $500,000 house right next door to this land. I’m going to give you some confidence.
I got done texting one of my other students. He bought a house and they gave him the land for $2,000. He wholesaled that land to a builder for $24,000. He made a quick $22,000 cash. This is so real. Who cares if you don’t know the answers? When a buyer asks you, they send you an email, a message over Facebook, text or they call you or leave a voicemail. They say, “I’m curious. How much is the HOA? How much are the taxes each year? How wide is the property?” You’ve got time to look it up before you reply back to their message, email or voicemail.
Let’s say they’re calling you on the phone. The three hardest words for most people to say is, “I don’t know.” I know this is hard for you. You’ve got a Master’s degree. You trained other people with Master’s degrees. I can’t even say it. I don’t have a Master’s degree. You’re in an educated environment so it’s not okay to not know the answers. That’s how it was in the military world. As an Army officer, it was not okay when I didn’t know the answer so I had to make stuff up. That’s not right.
It’s okay when you’re dealing with buyers especially for a piece of land that they want. They have no problem with you getting back to them because those three words, “I don’t know,” creates more trust than, “I think it’s $387 a year but let me get back with you. I don’t know. Let me check for you,” or, “Let’s get on the phone right now and we’ll call the tax collector.” Here’s what we do in our office. We want you to get the information direct. If it’s something weird like, “Can I put a mobile home on it? Can I park my RV on it for fourteen days?” We direct them to the source. Even though we know the answer sometimes, we want them to get it directly from the source because that is their legwork.
They get used to getting the answers directly from the source rather than us telling them the wrong thing and then now we’re liars or they can’t trust us. If you put them in touch with the right people, you’re going to be building trust that whole entire time. “I don’t know but let’s get on the phone with the tax collector. Let’s get on the phone with the HOA.” Does that make you feel better about not having all the answers?
It does. This is my first one. I felt like it has to be perfect. I’m like, “I don’t have a picture of the land. What do I post a picture of?” I guess I’ll Google Earth it or I don’t know.
Let’s say it’s Billie Jean, North Carolina. Go in that area, get stuff that’s around that area and get pictures of that area. Granted, I like to have pictures of the actual land because it’s nice to say, “This was taken on the land.” Google Earth that stuff. Do a satellite image and a map image. Put that little man right on the street and then a front image. Get someone to go out there for $25 and take pictures or videos. “I’ll give you a kicker. For every sign you put out, I’ll pay you an extra few dollars.”
Make your trip worthwhile. That guy charges you $75. You got fifteen signs out, videos and pictures. If you want to go crazy, get some drone footage. You can go to Droners.io and hire someone with a drone that loves that stuff. He bought a $300 drone from Walmart. He will go out there for $75 and get everything for you. He will get to fly his drone and have fun.
Would you find that you’ve had people buy land without seeing it in person and they’re going to pay for land that they’ve never been to?
If I do a good enough job of getting photos, videos and drones of the land, we have it happen 9 times out of 10 because it’s cool. “We’ll do a 30-day money-back. If you don’t love the land, we’ll refund your money or find you something that you do.” That gives them time to go and visit the land. We do such a good job. We provide a drone photo and an actual map of what it looks like to get there. I always try and provide a video. It doesn’t always happen but most of the time, it does. In that way, it answers their questions.
One time, we had someone asked, “How far is the power?” The third photo had the power poles in it. That sold the land. We sent them the photo. We didn’t even have to reply. The good thing about people asking you questions is you’ll get the top ten most-asked questions, your FAQs, Frequently Asked Questions. That’s the stuff you start putting on your ads. It’s a total learning-mode type thing. It’s going to teach you exactly what to start putting for people. They might ask different questions in North Carolina than they do in Colorado. I absolutely know they will. You’ll see where that’s at and then your virtual assistant will know the due diligence items to check. Any other questions on that?
The negotiation part of it. When you’re talking with buyers, do you tend to negotiate or you’re pretty firm on your price?
I noticed that a lot of buyers do not negotiate on price if they’re calling or messaging. The thing that holds them up and I will say that we have to negotiate for them sometimes, is maybe the down payment or the monthly payment might be a little too much but those things are both easily solved. “What’s an affordable down payment for you? I know I got $3,000 on the ad here but what would feel comfortable to do now?” Most of the time, they don’t negotiate. They’re just, “Thanks for your time,” and hang up.
Ninety-nine percent of the time, they will not negotiate with us. These are regular, hard-working Americans and they’re just calling on your ad. I wish they would because then I would know they can afford only $2,300 rather than $3,000. Once we figured out an affordable down payment, we see what’s an easy monthly payment for them like, “What could you do each month for this piece of land? I know you talked about building on this land and being able to go and see the reservoir on the weekends. It sounds like you really like it. What’s an affordable monthly payment? We’re asking $300. What would work for you?” It’s funny. Sometimes they’ll say, “We can pay more than $300.” It’s not always the way we think it is.
The three hardest words for most people to say is, “I don’t know.”
That’s a good tip. I feel like I’ve had a long week and it was hard to get to that next step of having it posted. Knowing that I’m going to be focused on this one deal. I did another mailing so I should be getting more calls coming in. I’m excited because I do think it’s right there. I have to make that post, put it in all my Facebook groups and make it happen.
Let’s go back to the 11-acre parcel for $20,000. Get it under contract. I wouldn’t say that to your seller, though, “Let’s get the purchase agreement.” What’s that doing in his mind? That’s purchasing his land. I want you to have at least fifteen days inspection period and it’s already on the purchase agreement. Don’t call it contract. We don’t call things contract until it’s court. I know I made that mistake. When do we need to talk about contracts? When it’s time to sue somebody. It’s called a purchase agreement. I slapped myself on the hand for saying that.
Get that thing under a purchase agreement that’s assignable and you have at least fifteen days. I would put an even longer inspection period on there. I would put on there a 90-day contract with a 30-day inspection period. That will give you more time to get this thing assigned to an actual builder or a flipper. If you don’t have anybody in 29 days, cancel the purchase agreement. Say, “I was afraid of this. I got it under contract for too high. I can’t move it.” The guy is no dummy. He knows what’s going on. You told him. That’s the good part about being honest with him about what you’re doing. Let’s go back to the $3,000 property. When will you have that under contract?
He did mail back. He wanted to do a snail mail. He said he signed it. His sister signed it and it’s in the mail. I was trying to get him on the phone to get scheduled for the mobile notary to go there to have that ready to go but I wasn’t able to get in touch with him. There is something that you told me on a phone call that stuck with me and was helping because you said, “With some people, you have to slow dance with them.”
This guy is a nice, old-school kind of guy. He likes to do things his way at a very slow pace. There’s no rush for him. By taking my time with him and giving him that space, I leave him a couple of messages. He always calls me back. He is serious about selling the land but he is not in a rush and at the same pace that I’m at. That’s okay but I don’t want to push too hard and then lose him because I’m not slowing down to his pace.
Make that the most beautiful slow dance you’ve ever done. Care for this man, serve him and you’re not going to go wrong. Good for you. I have no advice to give you. You’re doing the right thing and I see it all the time. You’re right. He has got his way of doing things and you’re not going to change that. If anything, you could possibly tarnish that by pushing him too hard. It’s good stuff. My only suggestion is to have so many deals you’re working on where it’s okay if you slow dance for 3 or 4 weeks with each one of them. You’ll have one closing every day. Any questions, hesitations or anything that I can help you with before we go?
The only last thing that we didn’t touch on was I had those two properties. We called it the two-for-one. I called up a guy. He wanted to get rid of this land for nothing but it wasn’t in his name. His mom had passed 40 years before and they never put it under. That one is a dead deal because the probate is about $1,200, which was more than what the two pieces of land would cost. That one, I let go.
Unfortunately, that happens. That stinks. Even if you got it for free, which people do that all the time, they’d give the property away for free to get it off their shoulders.
I did a 300-piece mailing. I’m looking forward to getting those calls coming in.
I want to congratulate you. You’ve been killing yourself, your current job, your tutoring schedule, your meeting with principals and students and juggling all of this. With your grit and determination, you bootstrapped this. My hat is off to you. You’ve stuck with this. You’ve been going uphill and that’s starting a business. If it was easy, they would call it easiness. It’s going to be uncomfortable for a little while but if you get used to being uncomfortable, imagine how good you’re going to feel when you get a little comfortable and you get that first amazing check coming in. The first one, I don’t care how small it is. It’s going to revolutionize your life. You’re going to think about, “I would have to work for almost six months at my regular job for this one big check.”
I can’t wait to see it go from start to finish. That’s where those little stumbling blocks and thinking about, “Now, I’m at the point of finding a buyer. I need to get through that, see how it works and then make that deal complete and I can celebrate.”
I’ll leave you with two more things. You’re still priming that pump and you’re starting to hear the water come. You’re that old-fashioned pump. You’re going to see it trickle any day and then it’s going to be an explosion of water. I don’t know how true this is. I don’t know much about airplanes. I’ve always heard that the airplane taking off uses most of the fuel but once it’s up there and going, think about it. Think about any marketing campaign. It takes a solid 90 days.
Usually, with land, we can get a little faster. You’re close. I’ll leave you with that. Have a wonderful weekend. You’ve done all you can do. You’ve got the mail going out, except for those ads. Hang up. Do the ads. Don’t even think about it. Let your buyers think for you and ask the questions that you need to ask. Eventually, you’ll know all the answers. You get the same questions over and over.
Thank you, Brent.
That concludes episode eight of the Do or Die series. Be sure to tune in to the next episode, where we will learn if Tracy was able to get at least one of those pieces of land under contract. She is inches away here but you can sense her frustration. She is truly in a do-or-die moment right now. Will she do it? Will she be able to pull it off? I believe she will. See you on the next episode.
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.