Posted on: March 19, 2021
WI 648 | Wholesaling Struggles

 

We have come to the 9th episode of the Do or Die Series, a journey closer to Tracy Krol’s 90 days doing wholesaling! She has gone through a busy time working towards hitting her goal of a $10,000 monthly income. And in today’s installment, Brent Bowers coaches Tracy on how to navigate through her struggles in marketing properties without giving the APN to potential buyers as well as in dealing with probate issues. The clock is ticking fast. Is Tracy getting closer to hitting her goal? Listen to this episode to find out and witness her growth in this wholesaling journey. Enjoy!

Do or Die Series – Episode 09 – How to Wholesale Your First Piece of Land

Episode Transcription

This episode is a short one. Tracy jumped into an actual The Land Sharks coaching call to ask all of her questions on the episode. She’s struggling a bit with how to market the property because people are asking her for the address and she’s afraid that someone might swoop in and grab the deal from under her. What does she do here? Brent tells her exactly how to handle this situation as well as how to deal with probate issues. One of the deals she has is a probate issue but how does she navigate through that? Probates can be tricky but Brent tells her exactly how to navigate that and gets her much closer to the finish line. The clock is ticking here. We are fast approaching those 90-days and she is close. Will she do it? We shall see. Enjoy.

Brent, can I ask you a question about that?

Go ahead, Tracy.

I’m marketing right now the first property that I have under contract. I did do the whole Facebook thing and the groups and it seemed to be okay. My first question is on that, I got some feedback where someone’s sending me a message and they’re asking me specifically for the APN for the property. I was afraid to give that because I feel like they could look up who the owner is. It’s not going to say my name and they would call them directly and get it for a cheaper price.

I wouldn’t worry about it too much especially if you’ve got a good rapport with the seller. You’ve already got it under contract. Is this the one that they’ve sent your land offer letter back signed?

They did but there’s another hiccup with that, which is the entire time the guy’s name on it was the guy I’m speaking to but it’s the son. He thought that his name was on the deed and I had to run it. It’s actually still his parents. Now, I have a signed contract but it’s his father’s name, not his name. I need to deal with that in the meantime.

Are his parents still alive?

Always go and talk to the experts. The experts are always going to know.

No.

Is there any will? This is a North Carolina, I assume?

Yes.

I would go ahead and reach out to a title company right away and see like, “Is there a special form we can get filled out? Is there a will in this guy’s name?” He obviously wants to sell it. Is he the only child?

He’s not. He has a sister.

As long as they’re communicating a lot of times, these are things that can be worked out fairly easily but I don’t think North Carolina is a probate state. I could be wrong. I would check with a title company. I like to always go and talk to the experts. The experts are always going to know. Sometimes it’s not the first title company you contact. Sometimes it’s the 2nd or the 3rd.

WI 648 | Wholesaling Struggles

Wholesaling Struggles: You’re going to get many pushbacks from people if they don’t know the address, or at least the street. The APN is going to answer a lot of questions for them.

 

When you’re responding to buyers, I guess that’s where I keep on freezing up because I’m getting these messages of people that are interested and I’ll say, “Are you looking to make an offer,” or, “It sounds like you’re interested.” When they’re saying, “What’s the APN and where is the exact address of the property?” Do you think I should give them that?

Yes, I would. I’m not saying it won’t happen or it doesn’t happen but it hasn’t happened to us. What are the chances of them going and contacting the seller? If it’s another land investor then I would be shocked if someone goes and talks to your seller and goes around you. They need the APN to see where it’s at, figure out what it’s selling for and see how big it is. That is an important thing to have and the address too. I know it’s a little questionable.

If you didn’t have the LOL signs, I might not give them out. That was used with caution. I feel like you’re going to get a lot of pushbacks from people if they don’t know the address. At least the street that it’s on. “I’m waiting to get it under contract. I don’t quite feel comfortable giving it out yet because I don’t want to get in trouble. Here’s the street it’s on or here’s the neighborhood if you feel uncomfortable,” but that APN is going to answer a lot of questions for them. If you’re not providing that, “Here’s what it’s sold for. Here’s how big it is. Here’s what it looks like. Here’s the GIS map.” If you’re not going to provide that then give them so much more other information that they can make a decision on. Ultimately, you want them to make a decision too.

That makes sense. Thank you.

What else is going on? I know you got a lot. You said you had some other questions.

I got my first land offer letter through fax, which made me so happy. I was like, “This is awesome.” I got one signed. The guy put his email address and his phone number and he signed it for the amount that I have. I called him. I didn’t get a call back yet but I’ve been leaving messages and texts and all that good stuff. He also sent, which I thought was very strange, mine back signed with all the information. He also sent one that he had signed from someone else. He signed it and the guy signed it too, like a purchase agreement but it was for less money. I don’t know why he sent it to me. I don’t know if he’s trying to show me someone else offered him less. I haven’t been able to get ahold of him but it’s very bizarre.

Is this the same parcel of land?

Yes.

In wholesaling, sometimes it’s not the first title company you contact. Sometimes, it’s the second or the third.

That’s a negotiation tool right there. This guy offered that. This is not the same seller that the parents died? This is a different one?

I haven’t got into contact with him to have a phone call so I don’t know anything about this land. I know it’s 4 acres in North Carolina but I haven’t got any information from him yet.

What do you think it will sell for?

I have no idea. I was doing my research a little bit but then when he didn’t get back to me, I’m like, “I don’t want to spend so much time doing research on something that might not turn into anything,” so I’m going to wait until I have that call with him to do my homework.

That’s a good point and I’m glad you brought that up because I don’t like to do a ton of research until I know someone that’s like, “We’re going to do a deal,” then we do research because you don’t want to spin your wheels constantly. You could do hours of research on this parcel of land and the guy never even answers the phone call. That’s a good point. What did you have it under? What did the land offer letter say as far as how much?

It was 4 acres. For how I priced out that area, I had it under contract for about $11,000. The other offer that he got from someone else was $7,000. I don’t know if my offer was too high? That area that I’m mailing to is very popular. They’re expensive pieces of land. I looked at the price and it looked like I did $0.20 on the dollar but someone else offered him a lot less.

WI 648 | Wholesaling Struggles

Wholesaling Struggles: Don’t spend too much time on research that has low opportunities for business growth. You could do hours of research on this parcel of land, and the guy never even answers the phone call.

 

That’s okay. Don’t look at what others are doing. The thief of happiness is comparing yourself to others. You’re at $11,000 an acre, divide that by 4. What’s that? It’s $2,700 an acre. What’s the retail price in that area?

That was 20% from what I calculated from Zillow so I guess it’s times 5.

It’s going for about $13,000 an acre. That’s about what I remember you were telling me too in that area. Times 4, about a $55,000 property. I think you could pay $11,000 for it. It meets the 3X rule. If you’re going to pay $11,000, you need to sell it for at least $33,000. Any other questions that you had?

That was it for me. Thank you, Brent.

That concludes our episode. I am excited for all the growth that Tracy has experienced in these last nine episodes. I feel like we are very close to hearing that victory bell ring. Be sure to tune in where you’ll learn if she was able to finally close one of these deals and if so, for how much. See you 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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