We have been avid listeners and readers of Seth’s videos and blogs now for about 7 or 8 months and finally decided to jump in.
Our names are Matthew & Kathleen and we are living in Canada. So international investors! It really clicked with us when we saw Alicia and Matt who are able to run their business from Australia and we thought maybe it could work for us as well.
We have done a couple of mailers this year of total 1,500, using free data from what we could pull online through county records and they kind of bombed. Only a few responses and all wanting market value.
So we fully decided to jump in, double down and now have propstream after watching Seth’s couple of videos on its usability.
We don’t have a massive budget due to our upcoming wedding and so aren’t going crazy with mailers but aim for 1-2 thousand a month.
We aren’t the kind who jump in first and ask questions later as you can tell it’s taken us 7 months to get to this stage.
Watching Seth’s podcast with Jesse, we really liked the option method, the question we have with that is, when we have a parcel under option, are we able to advertise the property for sale? Our option agreement does state we can advertise.
We assume on the above the answer is yes… as long as we advertise that you have equitable right not ownership?
Hopefully haven’t bored you all with this long post! If anyone wants to get in touch please do, would be great to bounce some ideas off the great people in this community and of course help where we can. Even though we are newbies!
@lunny welcome here!
Sure is that Options to purchase (and also purchases with a closing date far away from the date of the signature of the contract, as they they essentially do not differ from the first) expose you to way less ris: if you don’t find a buyer, you just lose the money you used to market the property…that easy . So they can be also a great way to start your journey in the land investing business!
On the other side there are few considerations that I feel to share:
we’re in a seller market, which menas that sellers have the possibility to pick the buyer offering the best package (how fast can the buyer close? what’s his offer? etc)
most of land investors seems to privilege the use of options to purchase or very “delayed” purchase agreements
there’s a lot of people out there looking forward to investing their capital in good land deals and most of them are land investors themselves
In this scenario, of course Options can still represent an effective tool, at least for those properties not fitting 100% your requirements but still potentially appealing to some final buyer (examples: a property with utilities in a good neighbourhood but locked for example, or a steep property, or a property in wetland for most of its size etc). That said, as I see it, if there’s a property that is clearly a great deal, you may want to consider to buy it, and close in 1 month instead of 4 or 5. This purchase may or may not involve the help of a capital funder, depending on the property’s price and your propension toward borrowing money.
This choice may represent quite a competitive advantage in today’s market and allow you to move money fast (velocity of money).
I don’t say it’s “THE” way, especially as you move your first steps in the business, but never exclude any possibility…just food for thoughts…
Thanks to both of you for getting in touch, Arturo, thank you for your advice, certainly food for thought as we start our journey and certainly see the benefits of being the quick cash closers. we think Propstream will give us a good basis for finding cash buyers.
Maybe the plan should be for the cookie cutter infill lots, close quick to beat competition and for the out of town middle of nowhere parcels see if an option would fly.
Sam, thanks for sending your details, we will add you to the list will be good to keep in contact.
. So they can be also a great way to start your journey in the land investing business!
will be good to keep in contact.