EllisParticipantJanuary 29, 2019 at 8:54 amPost count: 25
Quick question for the community.
How do you guys handle areas that are completely saturated with investors already? If everyone else is there, obviously it’s a good county/market to invest in.
Do you jump right in alongside everyone else and mail to the same size properties again? If you so, do you get fewer signed offers?
Do you target different size properties?
I’ve been hitting and missing with these counties quite a bit lately, and I’m trying not to waste too much more money on mail.
All comments welcome.Kevin FarrellModeratorJanuary 29, 2019 at 9:04 amPost count: 900
Ellis – I would avoid a county that is saturated with other land investors. 2 or 3 properties is no problem. If there are 10 or more I will pass. What you can do is “hit ’em where they ain’t”. If everyone is selling 1 and 5 acre lots, then shoot a mailer out for 10 acre and 20 acre lots.
Will mailing to a county with a lot of investor activity affect the response? I think it will reduce the response but there is always someone who didn’t say yes last time and they are ready now. Especially when you are mailing to 1500 or more. I would be more concerned about the number of properties listed for sale and what price is on them.MilanParticipantJanuary 29, 2019 at 10:39 amPost count: 491
Saruration is real in some counties. Don’t listen to those who will tell you otherwise.
Saturated counties are those where the land is cheap. Cheap, cheap. So it’s easy to start. Everyone is mailing these. Should you? Maybe, if you can’t afford otherwise.
The problem is this: If you have limited funds, you’ll be mailing these counties. Maybe offer them little bit higher price and you’ll get the deal or two. But don’t expect much.
If you have more money to dedicate to this bussiness, you can mail into other areas. You’ll have bigger chance. But competition is everywhere. It really is. Everywhere. Even in this bussiness.
There are land dealers that succeed big in this group and you hear about them all the time. But there arealso those you never hear about, that failed and are not here anymore. Who wants to interview those?
I would love to hear some interviews of those too. But don’t expect it here Ellis. Instead use your own judgment and think hard how it all works. It’s a bussiness as any other. Not easier than any other. It’s hard as every other. But you won’t here it here. It’s all rosy here!
If you have a lot of money you can afford to dedicate to this, than it’s not a big deal to fail and keep failing and trying until you succeed, but if you don’t you’ll get desperate and it can be scary to lose your funds. Sometimes even the cheapest land in the county doesn’t sell that fast. Make sure you’re coming from the position of strength – that means more cash available and ready. Don’t quit you day job is probably the best advise for starting this bussiness. The road is not that rosy, believe me. It’s a slow expensive process that only few will manage to turn profit on.MilanParticipantJanuary 29, 2019 at 10:57 amPost count: 491
Look at fitness industry Ellis. It’s the same with land dealers. Everyone pays dues, but only 10% succeed and do it right. Make sure you’re the 10%. The owner of the fitness center loves most the customers that never show up and keep paying the dues.EllisParticipantJanuary 29, 2019 at 3:10 pmPost count: 25
I really appreciate the insight. This input from you guys probably saved me $600 lol
I have found the blind offer strategy works, but it has been requiring a bit of trial and error, which winds up costing money. It is a business at the end of the day, and I guess this is to be expected.Neil HParticipantJanuary 29, 2019 at 3:45 pmPost count: 95
It’s good to have this conversation since this business isn’t all sunshine and rainbows. What I’ve learned after a year is that I really do need to get offers out into the mail every month in order to cover my basics costs.
You can dabble in this and get lucky, but for the most part it’s a grind — an honest to goodness business — so you need to treat it as such. Try to get your costs down where possible and get mail out on a regular basis so that you can close a deal or two each month.
Finally, take the time to reflect on both of your successes and failures and see where you can improve for the next mailing. Make tweaks where need be and do your best to document your processes. Fail forward and often. But document it so you don’t make the same mistakes repeatedly.
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