Good afternoon, everyone!! My name is Drew (located in Texas) and I am somewhat new to this game of land investing from a business standpoint. Like many others, a friend of mind introduced me into this industry, and it really interested me. I started my business about two months ago, getting everything up and running, to now with mail going out. I have been focusing on sending out consistent mail to different counties weekly with a total around 700-1000 a week. I am slowly getting some responses with some of my first week’s list hitting mailboxes now.
My first question for you all, what is the best technique for coming up with blind offers for non-disclosure states like Texas? It is hard to find comps for these to come up with a solid offer per acre.
Second question is how do you handle properties that call on an offer and their lot is landlocked and the pricing per acre is far below the offer? Do we pass? Offer a ridiculously low offer and reach out to the neighbors? Reason I am asking is I have one in Florida that is landlocked and not worth much to even mess with. I believe to pass but wanted to know if there were other solutions to weeding these out in the future or how to handle them.
Thanks for any suggestions and hope to get any advice from anyone to make this venture a successful one.
Hey @lonestar, welcome to the forum! I haven’t done much work in non-disclosure states myself, but I know there is a solution to the problem. There are plenty of people who flip land in states like Texas, New Mexico, Missouri, etc.
I’ve heard that one method that can work in Texas is to figure out the property tax amount and then use that number to back into the value because that tax amount is based on the most recent sale price. You may not be able to find the most recent sold price, but you can find the property tax amount.
As for the landlocked situation, these properties can still be good deals IF you adjust your offer accordingly and make it very, very low. In cases where you made too high of a blind offer, you could just respond to them and say that you need to adjust your offer based on new information you didn’t have with your original letter.
You could also pass on it (say, if the profit margin just won’t be worth your time and effort, or if you’d rather not deal with those properties), but you don’t necessarily need to have a hard-and-fast rule of always throwing them out. Just make sure you’re mitigating your risk with a very low acquisition price.