LandInvestors.com Forums **Ask A Question** What would you do?

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  • #252

    Jason Polley
    Participant
    Post count: 38

    Hello Steve,

    Wanted to get your opinion. I posted in a different sub-forum, but perhaps this is a better place for it. Apologies for starting to similar threads.

    On what would be my first deal sold, I obtained verbal agreement from a buyer to sell two parcels to him on terms. We talked both cash and terms but he was more interested in terms. He asked me to send him the details we agreed to through email and that he would review. I proceeded to start the paperwork.

    A day or two later he wrote back saying he couldn’t swing the deal financially. He said if things changed he’d get back in touch with me. I told him that I understand and to keep me in mind.

    I can tell he wants the land. The parcels are adjacent to each other and would make a really nice property for him. Just to add a little more context, he called me off a “neighbor letter” I sent so he already has land there and is familiar with the area.

    I got to thinking that he might be doing this to get me to make the deal more attractive. Being naive about these types of transactions, I wonder what “levers” you would pull, if any, to close the deal. The deal we originally agreed to has enough spread to give me flexibility and still do well. I could reduce price, reduce down payment, or extend the length of owner financing.

    If you were in my shoes, would you spend some more time on this adjusting parts of the deal? If so, what do buyers respond better to in your experience?

    Thanks,

    Jason Polley

Viewing 6 replies - 1 through 6 (of 6 total)
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  • Anonymous
    Post count: 2

    Thanks, Jason. It would be great to get the actual numbers on this deal. Please share them if you can.

    If it’s like most other land deals we do, I almost always give the buyer what they want (within reason).

    Here’s a few typical examples of the the land deals we do:

    For a cash sale we try to double our money. Buy it for $1,000 and sell it for $2,000. But if we get a strong offer for $1,800 we almost always take it.

    On terms for the same property where we buy it for $1,000 and are asking $197 down and $197 a month, and we offered 150 down and 150 a month, we almost always accept the terms.

    I’m a big fan of doing a lot of land deals even if you make less money on each deal. I think the old saying is something like “we make it up in volumn”

    There is so much profit margin in this business model, it doesn’t make sense (for me anyway) to hold out for price.

    My advise is get the deal done and move on to the next one.

    Hope this helps. I’m so glad the system is working for you.

    @jpolley1976

    Russ Goodman
    Participant
    Post count: 4

    jason

    I don’t disagree with Steve’s philosophy, but numbers would help in trying to assist. It sounds like the down stroke may have been the issue as to the reason he can’t swing it.

    Jason Polley
    Participant
    Post count: 38
    Pro

    Thanks for the input. Here are the numbers as requested:

    Purchased for $750 each. Offered them for $3500 each cash or $3000 each if he bought both. He seemed mildly interested in this but then we talked terms. We verbally agreed to $5500 each, 10% down, $200 /month.

    Charlie Barks
    Participant
    Post count: 23

    @jasonpolley

    Jason, did you get anything done with this buyer? Just curious if it was the Price or the Terms that they were having trouble with?

    Jason Polley
    Participant
    Post count: 38
    Pro

    @charlieb

    Hello Charlie,

    No, never did. He answered off of a “neighbor letter” I sent him. I’ve since posted the properties on all of the sites Steve and Jill recommend.

    His hang up was the terms. I wanted a down payment and $100 a month each. He didn’t want to put anything down and $100/month for both. Wasn’t something I was prepared to do.

    My plan is to see how they do out on the market and if they sit a while, I’ll go back to him to see if he’s interested in talking again.

    Thanks,

    Jason

    Ryan
    Participant
    Post count: 38

    Hi all,

    I have a person asking me how I come up with my offer and how small of a property am I willing to consider.

    How would you respond to these 2 questions?
    Do you ever buy property smaller than 1 Acre?

    PS I just started going through the material so it may be answered there but I posted a craigslist ad via the ebook and I have got 2 responses so far off one ad posted on monday.

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

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