Posted on: March 12, 2021

This episode is the eighth day of the nine-day do or die series, second to the last day to the end of this series. 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. To recap, Tracy is a teacher by profession who dreams big to have more time and money, hitting $10,000 monthly in the next nine months. Previously, Brent coached Tracy on how to move on with closing her most-awaited first deal. Tracy also talked about some of her conversations with her leads as well as her mailing schedules. Also, Brent gave out lots of advice for Tracy to keep her motivated and stay on the right track.

A lot is in-stored 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.

Keep rooting for Tracy! Follow along in her journey towards getting her first deal! Do not miss this episode!

Key Takeaways

  • A piece of good news from Tracy on getting closer to her first deal
  • An update from Tracy on starting marketing properties and issues on it
  • Brent’s advice on answering potential questions from buyers
  • How google earth can help Tracy
  • Brent’s advice on what to put on ads for marketing
  • Tracy’s question on whether to negotiate or stick to the price
  • What ideal information to put in the purchase agreement
  • Her update on the $3,000 property
  • Her update on the two for one property
  • What her plans are moving forward
  • Brent’s reminders for Tracy

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Episode Transcription

Darren Bentley:
Hey guys, Darren Bentley here, and welcome to episode eight of the Do or Die series, How to Wholesale Your First Piece of Land. And man, if you’ve been following along, this has been one heck of a ride. Tracy has gotten really, really close a few times, quite a few times actually, but she hasn’t been able to close that first deal. Now, does she close it in today’s episode? Well, you’ll have to listen to find out, but I will say you are going to learn a lot on this episode.
And one of those things that you’re going to learn today is what to do when you don’t know what to do, or when you just don’t have an answer to a question, whether it be from her buyer or seller. And 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, and she just doesn’t know how to deal with something. And Brent’s advice is just gold here. So you’re going to get a lot out of today’s episode, and I encourage you to keep rooting for Tracy. It takes a lot to put yourself out there like that and just get vulnerable in front of tens of thousands of people. So what she’s doing is not easy, and it really has been exciting to listen and just follow along on this journey in real time, which makes it even cooler. So enjoy today’s episode.

Brent:
I know it’s been a long week, long day. You texted me about something earlier. Let’s start with that. Let’s start with the good news.

Tracy:
Sure. The good news. I sent out an offer a couple of weeks ago, and I had a very interested seller. I offered 28,000 because it was 11 acres in an area that’s pretty hot right now. So I was thinking things are really good. And then I found out that the seller is like, “I love that price. I’ll take it.” And then I looked into the property and figured out that it doesn’t get water. And so that took the offer way down, but I kept a really good rapport with the seller, and we stayed in contact. He said to let him know if I can do anything for him. And I did try to get it really low to 4,500. He was like, “Absolutely not. That’s way too low for me.” But he’s like, “Keep me in mind if you talk to any developers and you can make something happen.” So I was on the phone with him earlier today. I got him down to 20,000.

Brent:
Nice job.

Tracy:
Yeah. It may not be the most ideal, 20 cents on the dollar, but I’m thinking maybe I could wholesale it or make a quick buck to keep my marketing going and to fund some of the stuff that I’m doing to make that passive income.

Brent:
Yeah, absolutely. What’s the road ahead as far as getting that under contract? Does he have a purchase agreement?

Tracy:
He has the one that says 28,000. I told him that he could just change the price on there and sign it and send it back to me. And so he said he would do that tomorrow.

Brent:
Awesome. And then I would just get the two-page purchase agreement sent over to him. It could be via email, via DocuSign, however is easiest. Basically, we need him to sign that because that’s an assignable contract. So we’ll get that thing signed. That way you’ve got an assignable contract, and we’ll start marketing that thing everywhere, craigslist, Facebook, signs, literally you name it, every single builder, builder associations, meet-up groups with builders, and tell them everything you’ve got and try and shoot for 10K all day. So yeah, get that two-page contract. It’s in the course, and it’s listed under make the cash for your land. Any other other updates on the other couple property, or actually you just had one more, right?

Tracy:
The big thing is 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, and I went to go market it the other night. Oh, I joined a whole bunch of the groups, the buy-sell groups on Facebook. I joined over 30 of them.

Brent:
Love it.

Tracy:
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 actually make the ad, I started getting this anxiety about, what if a buyer actually calls me off of one of these ads and I have no idea what I’m talking about? And I started to think about the fact that I’m not 100% confident that I know everything I need to know about this land, about how much the HOA is. I called them, but I got a voicemail. I haven’t heard back from them.
And I’m just wondering, how much information does a buyer want from you? What do you have to know for them to feel comfortable to actually buy land from you? And then also, do they try to negotiate the price often? And do you ever change the price for them? And how do you go about the point where you’re getting buyers contacting you?

Brent:
Okay. So it sounds like you froze because you felt like you didn’t have enough information. Am I correct?

Tracy:
Yes.

Brent:
So in life we’re never going to be ready. We go when we’re ready enough. And that quote came from your brother, Tom [Crowell 00:06:39]. I don’t know if he’s ever told you about that, but you’ve got enough knowledge to get you through this Friday, today, and tomorrow’s knowledge will come tomorrow to get you through tomorrow’s day. So 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. I will tell you, 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, 40,000? What’s the total price you’re selling this land for?

Tracy:
I’m thinking 30,000.

Brent:
30,000. So they’re going to put roughly, what’s that, 10% down? Too easy. You’re not asking for any credit check, any background check, no job security. Doesn’t matter. You’re going to let them put 10% down and make monthly payments, easy payments. And when they pay it off, they’re going to have the most beautiful piece of land.
Literally, you were telling me about a $500,000 house right next door to this land. Tracy, I’m going to give you some confidence. I just got done texting one of my other students. He just 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. This is so real. So who cares if you don’t know the answers?
When a buyer asks you, they send you a email or a message over Facebook or a text or they call you or leave a voicemail. And they say, “Hey, I’m just curious. How much is the HOA? I’m curious, how much are the taxes each year? I’m curious, how wide is the property?” Well, you’ve got time to look it up before you reply back to their message or their email or their voicemail. And let’s just say they’re calling you on the phone. The three hardest words for most people to say is, “I don’t know.” And 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 had to make stuff up. That’s not right. And it’s okay when you’re dealing with buyers, especially for a piece of land that they want. And they have no problem with you getting back to them, because those three words, “I don’t know,” creates more trust than, “You know what? I think it’s $387 a year, but let me get back with you,” and “I don’t know, let me check for you,” or, “Hey, let’s get on the phone right now, and we’ll call the tax collector,” or “Hey, how about …”
And here’s what we do in our office. We want you to get the information direct. If it’s something weird, like, “Hey, can I put a mobile home on it?” or “Can I park my RV on it for 14 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. And they get used to getting out and 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.
So if you put them in touch with the right people, you’re going to be building trust that whole entire time. “Hey, I don’t know, but let’s get on the phone with the tax collector. Let’s get on the phone with the HOA.” So does that make you feel better about not having all the answers?

Tracy:
It does. And I feel like I know that if I just do it and I can … This is my first one, so I feel like you’re right. 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?” But I guess I’ll just Google Earth it or I don’t know.

Brent:
Yes. Yes. Google Earth it. Go in that area. Let’s just say it’s, I don’t know, Billy Jean, North Carolina. Go in that area and get stuff that’s around that area and get pictures of that area. Now, granted, I like to have pictures of the actual land because it’s really nice to say, “This was taken on the land.” But yeah, Google Earth that stuff. Google Earth it. Do a satellite image, a map image, and then literally put that little man right on the street and then a front image and get someone to go out there for 25 bucks and take pictures of video.
And “Hey, I’ll give you a kicker. For every sign you put out, I’ll pay you an extra few dollars. So make your trip worthwhile.” That guy charges you $75, you got 15 signs out, video, pictures. And if you really want to go crazy, get some drone footage. You can go to droners.io, droners.io and hire someone with a drone that just loves that stuff. He bought a $300 drone from Walmart, and he’ll go out there for $75 and get everything for you. And he’ll get to fly his drone and have fun.

Tracy:
Would you find that you’ve had people just buy land without seeing it in person, and they’re just going to pay for land that they’ve never actually been to?

Brent:
Oh, yeah. If I do a good enough job of getting photos and video and drones of the land, we have it happen nine times out of 10. Because it’s really cool. Because we’ll do a, “Hey, 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.” Because that gives them time to go and visit the land. And we do such a good job. We provide a drone photo. We provide actual map of what it looks like to get there. I always try and provide video. It doesn’t always happen, but most of the time it does. That way it answers their questions.
One time we had someone ask, “How far is the power?” Well, the third photo had the power poles in it. That sold the land. We just sent them the photo. We didn’t even have to reply. And the good thing about people asking you questions, you’ll get the top 10 most-asked questions, your FAQ, your frequently-asked questions, and that’s the stuff you start putting on your ads. It’s a total learning-mode type thing, and 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, or they will. I absolutely know they will. And 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?

Tracy:
And just the negotiation part of it. When you’re talking with buyers, do you tend to negotiate or you’re just pretty firm on your price?

Brent:
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 might be a little too much or the monthly payment might be a little too much, but those things are both solved. They’re easily solved.
“Hey, 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 today?” Because most of the time they don’t negotiate. They just, “Okay, thanks for your time,” and hang up and don’t negotiate. 99% 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.
And then once we figure out an affordable down payment, we see what’s an easy monthly payment for them. “Hey, 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?” And it’s funny. Sometimes they’ll say, “Well, we can actually pay more than 300.” It’s not always the way we think it is.

Tracy:
No, that’s a good tip. And I feel like I’ve had a long week, and it was hard to get to that next step of having it posted. But knowing that up on the weekend now, and I’m just going to be focused on this one deal. And I just did another mailing, so I should be getting more calls coming in. So yeah, I’m excited because I do think it’s right there. I just have to make that post and put it to all my Facebook groups and just make it happen.

Brent:
And that’s exactly it. So let’s go back to the one, the 11-acre parcel for 20,000. Get it under contract. Get it under contract. And I wouldn’t say that to your seller though. “Hey, let’s get the purchase agreement.” Because what’s that doing in his mind? That’s purchasing his land, and I want you to have at least 15 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. And I know I just made that mistake. When do we need to talk about contracts? When it’s time to sue somebody? So it’s called a purchase agreement. So I slapped myself on the hand for saying that.
So get that thing under purchase agreement. That’s assignable, and you have at least 15 days. And I would put an even longer inspection period on there. I would put on there 30-day inspection period and a 90-day agreement, 90-day, and I’m going to say contract, 90-day contract with a 30-day inspection period. That’ll give you more time to get this thing assigned to an actual builder or a flipper or whatever. And if you don’t have anybody in 29 days, cancel the purchase agreement. Say, “Hey, I was afraid of this. I got it under contract for too high. Can’t move it.” The guy’s 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?

Tracy:
So he did mail back. He wanted to do snail mail, and so he said he signed it. His sister signed it, and it’s in the mail. And I was trying to get him on the phone this week 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 the other day that really stuck with me and it’s helping, because you said, “With some people, you just have to slow dance with them.” And this guy is a really nice old school kind of guy. He likes to do things his way, very slow pace. There’s no rush for him. And I think by taking my time with him and giving him that space, I leave him a couple messages. He always calls me back. He is serious about selling the land, but he’s not in a rush, and he’s not at the same pace that I’m at. And that’s okay, but I just don’t want to push too hard and then lose him because I’m not slowing down to his pace,

Brent:
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’s 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. So good stuff. My only suggestion is have so many deals you’re working where it’s okay if you slow dance for three or four weeks with each one of them. You’ll have one closing every day. So, good stuff. Anything, any questions, any hesitations, anything that I can help you with before we go?

Tracy:
No, I think 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 basically just wanted to get rid of his land for nothing, but it wasn’t in his name. His mom had passed 40 years before, and they never put it under. But that one is a dead deal because the probate’s about 1,200, which was more than what the two pieces of land would cost. So, that one I just let go.

Brent:
Yeah. Unfortunately, that happens. That really stinks. Even if you got it for free, which people do that all the time, they’ll give the property away for free just to get it off their shoulders. But yeah, that stinks.

Tracy:
Yeah. But no, I just did a mailing. So I did a 300-piece mailing, and it’ll be hitting maybe tonight, tomorrow, if not Monday. So I’m looking forward to getting those calls coming in.

Brent:
Beautiful. Beautiful. I would just want to congratulate you. You’ve been killing it. You’ve been killing yourself and your current job, your tutoring schedule, your meeting with principals and students and juggling all of this. Your grit and determination, you bootstrapped this. My hat’s off to you. You’ve stuck with this. You’ve been going uphill, and really that’s starting a business. If it was easy, they would call it easeness, I guess. I’m going to create that word. It might already be a real word. Probably not though.
So 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, “Okay. I would have had to work for almost six months at my regular job for this one big check.”

Tracy:
Absolutely. And I can’t wait to see it go from start to finish. And I think 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 and see how it works and then make that deal complete, and I can celebrate.

Brent:
I love it. And I’ll leave you with two more things. You’re still priming that pump, and you’re starting to hear the water come. You really are, that old fashioned pump. And you’re going to see a trickle any day, and then it’s going to be an explosion of water. And I don’t know how true this is. I don’t know much about airplanes, but I’ve always heard that the airplane just taking off uses most of the fuel, but once it’s up there, once it’s going, think about it. Think about any marketing campaign. It takes a solid 90 days. Usually land we can get a little faster. You’re really close.
So I leave you with that. Have a wonderful weekend. You’ve done all you can do. You’ve got the mail going out. Except, except for those ads. So 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, and eventually you’ll know all the answers. You get the same questions over and over. So have a wonderful night.

Tracy:
Thank you, Brent, you too.

Darren Bentley:
Okay. So that concludes episode eight of the Do or Die series. Be sure to tune in next week where we will learn if Tracy was able to get at least one of those pieces of land under contract. She’s literally inches away here, but you can sense her frustration. So she’s 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. So see you on the next episode.

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