LandInvestors.com Forums **Ask A Question** Start up and ongoing monthly costs to get going in the land business.

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  • #9459

    Richard Grimsley
    Participant
    Post count: 20

    Hello everyone!

    I would like to introduce myself to the land investor community.

    My name is Rick. I fly as a pilot for a major US airline as my primary career. I have a limited background in RE investing. I have done a few flips and rentals over the past several years. I wanted to find something in the field that I can manage from the road because of my constant travel schedule. I love everything I see about this business so far and have really enjoyed listening to Jack and Jill on the podcast and weekly meetings! They are so much fun =0)

    I am looking at a start up cost and monthly budget to support this business model. I took a look at several of the costs and did an estimate for myself so I would know what kind of financial commitment would be necessary. I am posting what I came up with below. Feel free to jump in and correct my numbers in any way you would like so that I may have a better idea how to plan.

    Thank you all very much!

    Here are my estimates:

    1050- Land training course (with discount)
    800- Four special consult calls with Jack for data fine tuning
    350- monthly for data and tools access
    1100 per mailing @ 2000 letters
    600- website costs
    200- online postal box
    10,000 to 30,000 land acquisition fund (Cost to borrow from 401k @- 5% loan fee, 12 months 30k would cost 1300 interest.)
    150 month for Jill live or company like that to manage phones
    750 for LLC setup
    1000 setup fee for Solo 401k
    300 monthly fee for VA to help with transactions
    ____________________________________________
    6100 Initial start up costs

    1400 per month for ongoing data, phone, web, VA and Direct mail marketing expense (2000 letters every three months).

    Let me know if these numbers seem realistic or not.

Viewing 6 replies - 1 through 6 (of 6 total)
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  • Justin Sliva
    Participant
    Post count: 21
    ProAdvanced

    Looks realistic…but you can save on the website by doing a simple word press site for less. I believe the price has gone up on the calls with Jack, so may verify that cost. Letters will be a little higher if you are including pulling the data in that number.

    If done right your first 2000 mailers will cover that, plus more.

    Nathan Gregory
    Participant
    Post count: 23
    Pro

    Hi Richard, those numbers are about right on. A few additional costs you will encounter, notary fees (I’ve paid anywhere from $20-80 per signing), USPS priority mail for sending deeds and checks to notaries and recorders ($6.65 a pop), and recording fees (I’ve paid between $12-65 per recording depending on the county).

    Luke Smith
    Moderator
    Post count: 1262
    ProAdvanced

    Subtract some cost for what else you would be doing if not this. Like a shrink for flying back and fourth all the time. Mid life crisis bills etc.

    Jill DeWit
    Participant
    Post count: 439
    ProAdvancedStaffPrincipal

    (That is hilarious, Luke!)

    Hi Richard,

    Glad you found us and sounds like your budget is dead on. You can shave some of the costs in the beginning and answer your own phones, skip LLC for first few deals, hold off on VA, and maybe a few others. We recommend doing at least the first 10 deals yourself to really understand the process before handing over to anyone. And it is totally fine to buy/sell in your name for a couple of transactions while you make sure this is the right fit for you.

    Feel free to schedule a call with me HERE if you want to chat more.

    Have a good one!

    Jill

    Richard Grimsley
    Participant
    Post count: 20
    Pro

    Thank you Luke and Hahahaha, too funny. I do need a shrink just for being in the airline business!!!! It’s been a lifelong addiction that I REALLY need to break. ;0)

    Richard Grimsley
    Participant
    Post count: 20
    Pro

    Also, thank you Justin, Nathan and of course Jill! Yes thank you for the call offer Jill, let me get the course ordered and then get on your calendar!! Happy marketing everybody. =0)

Viewing 6 replies - 1 through 6 (of 6 total)

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