Would You Buy This?
Would you buy this?
Let's play a little game. Using the information in the aerial and the other information provided, your job is to tell me if you would buy this property or not and the reasons for your decision. Then I will give you some things to think about once you've had a chance to chime in.
Something to think about before you go on.....is there such a thing as junk property?
Here's today's property
Allowed Land Uses: Single Family Residential
Area Comps: For sales comps ranging from $35k to $45k for similar sized lots
Sales Velocity: Last sale in March of 2019. 15 of the 50 lots within a 1/4 mile are for sale
Asking Price: $25
Not All Subdivisions Are The Same
Not all subdivisions are the same. Although subdivision regulations differ by jurisdiction, here are three common types of subdivisions.
Land divisions that are exempt from local platting requirements. These are the cheapest and fastest types of subdivisions. But not all parcels of land qualify. These subdivisions typically do not include the construction of roads and other improvements.
These types of subdivisions must comply with local zoning regulations and are typically limited to a small number of lots, such as the creation of no more than four lots. The process for this type of subdivision is often administrative or is limited in comparison to the process for major subdivisions. These types of subdivisions may include roadways and the extension of utilities.
As the name implies, these types of subdivisions typically include a significant number of lots and include streets and other improvements typically associated with larger residential subdivisions. These subdivisions may include parks, schools, fire stations and other amenities. As you would imagine, the process for these types of projects may be long and complex.
Check out our "Subdivide and Conquer" online course. This course is currently on sale!
In this course, you will learn....
Often I get calls that go something like this (dramatized for cinematic effect):
I have a buyer that wants to buy my property, but only if he can build a roller coaster instead of a house.
The investor rationalizes that since the neighbor has a car in the driveway that the proposed roller coaster should be approved by the county because the roller coaster has a box-like object on it with wheels and makes a loud noise just like the shiny car in the driveway.
It doesn't quite work that way. Luckily, there are a handful of simple things that you can do to prevent this tragic event from happening in the future.
ICYMI: I wanted to re-share this podcast I did a while back with REtipster.com about rezoning. It was such a great time speaking with Seth and Jaren and sharing my approach to forcing appreciation with rezoning and more. Always such an honor to speak with professionals like Seth and Jaren.
Let me know what you think!
Check out the full podcast here!
Real estate Mindset podcast
I recently had the absolute pleasure to be a guest on the "Real Estate Mindset Podcast." Check out the full podcast with Eric Nelson from Wild Oak Capital.
Full podcast can be found here.
Show notes: This week we get together with Mike Marshall of Tolosa Property Group to discuss land flipping. Mike has considerable experience working with land investors and has learned the value of persistence, patience, and maintaining relationships. In our conversation with Mike, we discuss the most important considerations that come with buying and selling land. We hear about Mike’s work with navigating entitlements for land, learn how entitlements add certainty and why that greatly benefits property value. Tuning in you’ll hear Mike outline his advice for what to avoid in land investment, like why you should always avoid rezoning a property wherever possible, as well as how to avoid city council evaluations. In our mindset section, Mike shares his morning routine and unpacks what he gained from doing a multitude of courses early in his career. You'll also discover the typical timeline for land flipping and gain insight into the wild variations that occur between different states, not just in pricing, but also in potential profits. Tune in today for an exciting look at land flipping and much more!
Key Points From This Episode:
How can we work together?
With the very recent release of our new Entitle & Flip coaching program, I've had the pleasure of speaking to a lot of you about where you're wanting to take your business. I've heard from many investors that they're ready to up their game, take their business to a new level and our Entitle & Flip strategy can do just that. Maybe you feel like competition in the land investing space is getting tighter, the Entitle & Flip strategy will help distinguish you from others by giving you a skill set that most others just don't possess.
There are a number of ways we can work together to get you going in the direction of entitlements. Check out the graphic below, visit our website, and contact me with any questions about how we can move forward in your investing business together.
I am blown away by the response we've received so far with the interest in our coaching program. I am honored to be working with so many of you and can't wait to see where all of this leads for all of us. Happy Friday and happy investing!!!
ICYMI: Recently I had the pleasure to sit down and speak with Seth Williams with Retipster.com about all things land entitlements and how you can add a ton of value to a property without every touching it! Check out Seth's podcast here and let me know if you have any questions!
It's my birthday (thanks to all of you for the kind messages and well wishes) and to celebrate, we've opened up our Entitle and Flip Coaching Program for new members to enroll starting NOW! I have had the pleasure of speaking to a number of people about this program over the past couple of weeks and I really do want to reiterate that my intentions for this group are to get a small group of like-minded individuals together that want to do Entitle and Flip projects. We have a number of members that have joined already, so if you're interested please let me know if you have any questions before joining. Space is very limited.
Check out the details and sign up at tolosapropertygroup.com/coaching-program.
We've had great feedback on so many of our courses and services we provide and we're so grateful for that! One thing that has been brought up over and over is the desire of many to jump into the world of development and entitlements, but they just don't know where to begin. Well, we're here to help! We are now offering the Entitle and Flip Coaching Program.
The goal of this program is to help seasoned land investors learn how to increase the value of property without ever touching it. We do that through the use of entitlements. Entitlements are a vested right granted to property owners by local jurisdictions allowing them to use or develop their property in a specific way. Once granted, these rights cannot be taken away. The perception of risk associated with the land development industry has to do with the lack of certainty associated with a proposed project. Entitlements change all of that. Entitlements add certainty, and certainty adds value! If you can learn how to use entitlements to your advantage, you not only can profit, but you can also serve as a catalyst for positive change within your market.
We are excited to work with our coaching program members more closely and to see that the sky really is the limit in the world of investing.
Details for the program are listed below. To join our group or for more information, visit tolosapropertygroup.com/coaching-program.
Note, when we say limited space available, we really mean it. We're providing an individualized program to members and will be working closely with them to help ensure they're guided through, what can be, a very profitable world of development. If you're interested, don't wait! We anticipate filling up fast.
Casual Friday's REI Podcast
Last year I was able to sit down with Adam and Justin on their Casual Friday's REI Podcast to discuss due diligence, especially with infill lots. Always such a great time speaking with them!
Check out the full podcast here!
Who are we?
Our purpose is to inform and advise investors through next level education and services so they can distinguish themselves in their market.