March 30, 2019 at 6:25 pm #21046
SandyParticipantMarch 30, 2019 at 6:25 pmPost count: 10
I have listened to many podcasts and interviews and read many posts. I keep hearing people say that they were able to quit their jobs within a year. Is that a realistic expectation? Or is that a stat for a lucky few who worked super hard and had everything work out? I ask because I have been beating myself up since I hit the 18 month mark and am still struggling. I was recently told it all starts to happen after 3 years. This is disturbing because I don’t think I can bleed money for that long.
Your replies are greatly appreciated.
MilanParticipantMarch 30, 2019 at 6:53 pmPost count: 520
Sandy it all depends on 4 things I believe:
You need capital. The more the better and fasted you can grow.
You need to work hard. That’s pretty obvious.
You need to be little smart. I’m sure you are plenty smart.
And final, you need some luck too. But longer you persist and harder you work the less luck you need or better said: the luckier you become.
What do you mean by bleeding money?MilanParticipantMarch 30, 2019 at 7:09 pmPost count: 520
Capital is important. Period!
If you rely too much on someone to fund your deal and I don’t care who that is, you’re not going to make it.
First they refuse Vast majority of the deals you Bring them, because there is not enough meat on the bone for both of you. You alone can make money on those.
Second, they will fund only homeruns. You need those 100% for yourself. So make sure you have capital because homeruns don’t come very often. And if you keep spending money on mail and deliver homeruns, than you’re slowly dying in this bussiness.
Fund your own homeruns and don’t let anyone fund it. Ask family to help you maybe. But you have to be smart enough to recognize a homerun.Joe SchmittParticipantMarch 30, 2019 at 7:24 pmPost count: 117
I get what he means. The overhead of running this business is more than one might think. It takes me about $1500 to keep the lights on and keep sending mail. If you’ve got most of your working capital in properties, and you have some long holds, or you lose money on a deal, you come close to breeding to death.
I’m just over a year in, and I’m nowhere near close to quitting my day job. That said, I’ve started to get past the hand to mouth stage. We’re busy enough that my fiancé may leave her job in September. Her is what has helped me:
1. Continually sending mail
2. Finding multi-parcel deals
3. Working the same areas to build relationships and a good buyers list
4. Using other people’s money to buy land and get another set of eyes on acquisitions
5. Tapping into the network of other land investors. This forum is nice. I have a huge network of folks from here or Facebook that I can call/message/text any time. We all help each other and are invested in each other’s success.
Just based on my current velocity, 3 years seems about right. Maybe a year to really get your rhythm, a year to build on that base, and then a year to start accumulating a solid financial cushion.
firstname.lastname@example.orgSandyParticipantMarch 31, 2019 at 6:39 amPost count: 10
Bleeding money means that I am not only paying for the expenses of the business, but also paid for a land investing program and am paying for coaching. I was under the impression that the education would cut the learning curve. I wish I would have found Land Academy first. And once I am done with coaching, I will either pay for LA or quit. I don’t want to quit. But my husband is pushing me to go back to work.MarcusParticipantMarch 31, 2019 at 9:56 amPost count: 157
Why not quit the coaching, go back to work, and do land? I just started after saving for 18 months and bought the program during a Christmas special. Sent out my first mailer about a month ago and have a full time job. There’s a ton of free info on the podcasts, forum, and RETipster.com.SandyParticipantMarch 31, 2019 at 6:25 pmPost count: 10
I am in a year long commitment with coaching. And I am learning and pushing forward with the coaching. I think I am just getting impatient. As far as going back to work, I am a stay-at-home mom. If I go back to work for someone else, I will not continue with land. Every minute that I wouldn’t be at “work”, I would be Mom. Currently, I get up between 3am and 4am. I go to sleep at 9pm-10pm. The whole time in between is housework, mom work or land work. I do land 7 days a week unless I have mom work or am sick. Last fall we went on vacation and I took my files, notes and laptop and still got up early to work on land. I’m not saying all of this because I want to show some great sacrifice. I’m trying to explain that I don’t have a lot of time flexibility. That’s probably why I am getting impatient.
I rehabbed a house a few years ago. That was my seed money for this. I have spent a lot for education in the hopes to cut the learning curve. I am frustrated because I spent a lot of time with the first “guru”.
Thanks for your input. I will go back and look at everyone’s suggestions and see if I can put something together that will work for me.Joe SchmittParticipantMarch 31, 2019 at 8:05 pmPost count: 117
Milan – you have more experience than me. I’ll offer an alternative perspective on deal funding.
Yes, you will find home runs. Yes, the funding partner will get a LOT of the deal. But if you can’t take it down yourself, that boost will help you get over the hump. I’m mailing for properties that I never would have been able to nab on my own. My partner tells me exactly where and what he will buy, so I target those areas. I have several deals in the pipeline that will bring my business to a level that I simply couldn’t do on my own, and I only need to do a few of these kinds of deals to get me to the next level. A couple of $10K nets can really put you in a spot to pay all your recurring bills for a year, and start making differs decisions. I’m at the point where I pretty much only look at $10K+ deals, and it would have taken me a lot longer to get there on my own.
email@example.comKevin FarrellModeratorApril 1, 2019 at 6:37 amPost count: 1082
Good discussion! I am going to jump in here and give you my two cents. Since I started with LA in 2016 I have networked with a few other members. These are people that I check in with every week. We exchange information and resources and stories about dealing land. From those people and from posts that I have read on this forum, the answer to the question “How long does this really take?” is this – It Depends.
First: Many of us have day jobs and it takes some time to get enough business volume to quit the day job. That means working night and weekends. For most of us that means working pretty hard on those off hours. My guess is one to two years.
Second: Some of us come here with a strong experience in building businesses. They also seem to be better prepared to fund the effort quickly. They are quick to outsource the repetitive tasks. They put together a larger, more efficient business than most. And they do it very quickly. Just a few months to freedom.
Third: Many begin with a shoestring budget and no business experience at all. This is the slowest case. They are Limited by capital available and have to make decisions without much of an experience base. They proceed slowly as they learn and they slowly build capital. Depending upon the individual’s capability this person may take years to go full time or may never get there at all. Someone in this category should partner with others for the first few months to get exposed to how things work and how to make correct decisions.
To Joe and Milan regarding partner funded deals – I am doing both now. I have two distinctly different types of offers that I send out. The first type are smaller, less costly parcels that don’t have enough profit for two players and the other are the more expensive parcels that would drain my account on my own but have plenty of profit available for an investor. I thought I was going to leave the lower cost properties behind when I started getting investors involved, but I now see that I would be leaving a lot of business behind.Matt RogersParticipantApril 1, 2019 at 8:53 amPost count: 59
Good thread. Kevin hit it on the head with the different types of people that get started here.
Partnering will help propel you forward quicker. Yes, your partner will be getting 50% of the profits, but if you can’t fund the deal yourself, do it. Don’t let a good deal go to waste because you don’t have the money. I agree with Milan, if you can fully fund the homeruns yourself, you have to. But if you can’t, take a partner. I’ve worked with fantastic members here on deals & everyone learns from each other & makes money.
To ramp up quicker, networking is huge both in this group and within the other land groups. I was slugging it out on my own for the first 8-9 months, isolated in my own little world, doing smaller deals. Honestly it’s pretty frustrating & lonely working that way. Once I started heavily networking with others in this group and went to the LA Live Event, I put faces with names, and now have a handful of great people I’m working with on deals. Also, just being sounding boards for each other is a huge help. Not every interaction has to be transactional. I run my own deals by a handful of people in this group, and they do the same, whether we do a deal together or not.
I’ve always worked as a freelancer, so this business is great for me. I bought & sold my first property in November of 2017, and haven’t gone back to my previous line of work since. It hasn’t always been easy, and I had a major sales slump for 3+ months that had me questioning everything, but things got back on track shortly after. The bigger deals get you right back in the game and pushing forward. The one thing that is most critical: KEEP SENDING OUT MAIL. That’s the lifeline of this business. The times my progress has slowed was always because I was living off old mailers, and not sending out enough new ones.
Comparison is the thief of joy…so focus on how to grow your business to work for you. Some people ramp up quicker than others. Someone might start killing it in year 3 or 4 and never look back. You just never know. Everyone runs their land biz differently here. You have to find what works for you. Good luck!
You must be logged in to reply to this topic.