Land Flipping For Beginners

 I would love to get into the nuts and bolts and like the framework and the process and how someone that's listening to this can get started. But then how you, you know, buy something for $300 and flip it for 1200, that's fascinating. And it seems like how could there be a, it doesn't seem very efficient, which means you're making money in the inefficient market. So I'm all ears. I have a notebook here. Let's let's hear it. All right. So, Caleb, we're going to use you as a case study. You're going to be my seller. So where do you live? I live in Denver, Colorado. Okay. So you're in Denver, Colorado. I'm going to assume that you own five acres of raw land in Arizona. And you owe $200 in back taxes. So you're essentially advertising two important things to me. Number one, you have no emotional attachment to that raw land. You're in Colorado, property use in Arizona. And number two, you're distressed financially in some weird way because we don't pay for things like, oh, our property taxes. We don't value it in the same way. As a result, the county treasurer keeps sending you notices saying, Caleb, if you don't pay your property taxes, you're going to lose this property to a tax deed or tax lean investor. So all I'm going to do is look at the comparable sales on your five acre parcel. I'm going to take the lowest comparable sale for the last 12 to 18 months. I'm going to divide by four. And that's going to get me what Warren Buffett would call a 300% margin of safety. So I don't want to be like the housing guys and send you an actual, you know, just send you a letter saying, I'm interested in buying your land. I'm going to send you an actual offer. So let's say that the lowest comparable sale is $10,000. I'm going to send you an offer for $2,500 for your five acre parcel. Now for you, you accept it because for you, $2,500 is better than nothing. In reality, 3 to 5% of people accept my quote unquote top dollar offer. But now that you've accepted it, I have to go through due diligence or in-depth research. I have to confirm you still own the property. Confirm that back taxes are only $200. I have to make sure there's been a breaks in the chain of title. There's no leans or incumbrances. I want to make sure there's legal access, ingress or egress. Right? What's the roads like? What are the neighbors like? So I have this whole checklist. I want to get the plat maps, the aerial maps, the satellite maps, the GIS maps. All this is outsourced to my team of the Philippines, who's connected to an American title company, cost about $11. So now everything checks out. And now I'm going to sell this property 30 days or less and make a cash flow like a rental home. So I have a built-in best buyer. Do you know who it is? No. The neighbors. The neighbors. So I'll send out neighbor letters saying, hey, if you're an opportunity to protect your privacy, protect your views, know your neighbor. So oftentimes the neighbors will buy. Now, if they pass, they'll go to my buyer's list. My buyer's list passes. I'll go to a little web site you may have never heard of. It's called Craigslist. Okay. 10th most trafficked website in the United States. Right. No, and Zillow is not a bad place either. Yeah. So you can go to Craigslist and Zillow. The only thing with Zillow is you need to have a physical location. So you can't be the northeast quarter of the southeast quarter of Rawland. Right. But if you got like an infill lot, Zillow is great. And then I'm going to go to Metta or the Facebook groups, Marketplace, and again, other groups that people are going to be buying and selling anything. And then I'm going to go to the lands, landmodo.com, landandfarm.com, landsamarica.com, landflip.com, landhub.com. These are platforms where people buy and sell Rawland every day. But the way that I'm going to sell it is where the magic happens. So all I'm going to ask for is a $2,500 down payment. And then I'm going to make it a car payment. So $2,500 down, $3.39 a month at 9% in interest of the next 84 months. You can own Caleb's five acre parcel. So one time sale, I get my money out on the down, or maybe I'll go 60, 10 months out. Then I get $3.39 a month at 9% interest in the next 84 months, no renters, no rehabs, no renovations, no rodents. And because I'm not dealing with a tenant, I'm exempt from Dodd-Frank, Resta, and the Safe Act, all there's owner is real estate legislation. So it's a simple game. Can we create enough of these land notes where our passive income exceeds our fixed expenses? And now we're working because we want to, not because we have to.