Initial Investment Question

[Luke Mitchell]

Hey guys, newbie here so bear with me. I’ve been brainstorming and just wanted to run this by folks who may have been in the same boat. I’m fortunate enough to be working with a financial partner to set out on this journey with so we can get out of the rat race into retirement. He has set aside some funds, let’s just say for the sake of this thread, about $15K. My question, is given the excellent access to deals in landstay.com, should we go buy a few deals around $2K to $4K and then resell for quite a bit more for an instant return to create more cash to work with? Or should we hyper focus on mailing several counties after some due diligence that is laid out in the course or focus on one solitary county with a more ramped up mailer? I’m sure this scenario has been discussed before but I wanted to get a fresh perspective. My temptation is to go buy a couple of deals with the cash and get great returns right out of the gate.
Thanks for the advice in advance!

Send More Mail!

Topic

[Kevin Farrell]

#26782

I suggest that you start out with smaller value land as you suggest and get your process set up. After about 10 deals bought and sold, then go for bigger fish. You can do well with land from landstay, but I suggest that you also start mailing offers. You need to learn how to do this to make the best profits with your money.

Kevin Farrell - Moderator
Need more help?
Schedule a 60 minute call - https://calendly.com/kevin-629

[Kevin Farrell]

#26784

I would be more comfortable at $7000 for this property. At $11K you are cutting your margins close and if there are any unknowns you won’t have much wiggle room. Always look for the low hanging fruit when considering deals. If you have to think too hard about it, then the deal is not good enough.

Kevin Farrell - Moderator
Need more help?
Schedule a 60 minute call - https://calendly.com/kevin-629

[Michael Aillon]

#26787

Kevin has the right advice. Learn the art of consistently finding good deals. The rest is just marketing (which is also a skill). Good deals prevent problems. Only pick “Hell-Ya!” deals.

[Luke Mitchell]

#26790

I appreciate the advice guys! Yeah, I want to spend my time on home run deals instead of worrying if I’ll make enough to cover our expenses and time. Coming from the traditional RE housing world, one of the biggest attractive parts of the land biz was the higher ROIs…so I don’t want to deviate from that important fact.

Send More Mail!

[StevenJames]

#30255

A lot depends on the strategic goals of the company.

[Lyman]

#30256

I think it would be better if you focus on one district. Because if you try to occupy several districts at once, you will face a lot of competition, and this will lead to increased costs for the company.

[Lyman]

#30257

Lyman wrote:

I think it would be better if you focus on one district. Because if you try to occupy several districts at once, you will face a lot of competition, and this will lead to increased costs for the company.

It is better to start with one district and firmly establish a foothold there, as this guarantees future stability. I, too, faced with this problem when I opened a clinic. I had a choice between opening two clinics (but that would leave me in debt and spend more) or I could spend all the money to open one. These guys https://www.thefinitygroup.com/financial-planning-for-physicians made two financial plans for me and based on the data, I decided to open only one.

[Author]

Replies