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  • #21654

    Nancy Crosby
    Participant
    Post count: 1

    Hello. At the moment I am paycheck to paycheck, but I can get probably $250 up in the next month for a deal. What I am asking is would someone be willing to go half on say a $500 wholesale deal? And split any profit. This way I can get my feet wet and hopefully earn some cash so I can do other deals on halves. Then eventually do deals on my own. I hope to benefit and learn the the sales side of the business and eventually earn enough for a monthly membership. Where I can then learn the acquisition side. The only experience that I have in real estate is a few years back I wholesaled a house. Got it under contract. Then assigned that contract to another. The 2nd one I did. I was not able to find anyone for the contract and had to let it go back.

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  • Kevin Farrell
    Moderator
    Post count: 1082
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    Nancy – welcome to the forum. Read all that you can here and listen to the podcasts at Cash Flow From Land Show on itunes and everywhere else. You will get all the information that you will ever need on land deals.

    I applaud your interest in getting started in land investments, but you will probably need more cash to start with. At least a few thousand dollars. In the scenario that you propose, you need to be able to offer something in addition to $250 of purchase money. First, that doesn’t buy very much land so the profits are going to be small even before splitting it. Second, you need to be able to offer something to go with that money – ie marketing and advertising channels, experience or knowledge. There is no incentive for someone who has a $500 deal in hand to split it with you.

    Usually splits work like this: You do the research, you purchase the data, you send the mail, you answer the phones, you make the deal but need a little more money. Then you look for a partner to help with the purchase. This process goes on like this every month so you need a budget for researching and sending mailers every month.

    There are some costs to consider to begin this business. Assuming that you already have the knowledge (from training or experience) you need some data sources for your mailing list and you will need to get letters printed and mailed. Just to send out a decent sized mailer you will need about $600 to $1000. Then you must have a phone. That is the bare minimum. After you get a deal you will need to have some advertising lined up like Land.com, CL, website, etc. You can go cheap and only list on the free sites but it will take longer to sell.

    If you are dead set on doing some land deals you should get a second job and save up a few thousand dollars to work with. Even then that is a bare minimum. I usually tell people you need $5K to $10K to start this business.

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