You Won’t Hear About This from Your Realtor, Accountant, Lawyer, Banker or Hotshot Business Guru
Have you seen the new foreclosed real estate auctions on DirecTV? Its’ a neat show and you can pick up land for $100 an acre.
My technique or secret has nothing to do with auctions. In fact, very few people have discovered this simple and yet powerful approach to acquiring land at huge discounts. I’m talking 60-70% off standard market prices.
Granted, there are tens of thousands of books, courses and seminars buying on real estate, some of them offer tips for acquiring land at a discount. But you almost never find an original or new strategy.
I know there’s nothing new under the sun. However, you can reapply old formulas or strategies and get NEW results. You’re going to like this……
My approach for buying land at deep discounts is not new. I’m sure others have used this tactic. But you won’t find this tactic in any of the new real estate books, courses or seminars.
On top of that, most authors neglect to mention if they are currently making money with a tactic? I’ve purchased millions of dollars of real estate, homes and land. The best deals were the ones using this simple tactic.
So let’s take a peek at this tactic.
This tactic has nothing to do with tax lien certificates, bankruptcy auctions, estate sales, foreclosures, short sales, real estate futures, ETFs, or anything like that. It has everything to do with direct marketing. It goes like this…
Let’s say you want to buy land in a nice area to build a house. I’ll use the rural Maine for this example (I’ve used this technique several times here!). If you go through a typical broker’s office or use the Multiple Listing Service (MLS) you’ll find dozens of properties and vacant land available.
But the land is always offered at a premium, at the top of the market range. You’ll rarely find real estate or vacant land for sale on MLS at a deep discount. What’s more, real estate brokers do not make money on discounted deals!
Get this…a realtor actually said I would insult the seller with a low ball offer!
“Are you kidding me? I said. If your client is insulted by low ball cash offers then tell him or her to remove their property from the public auction and marketplace”. I never used an inexperienced realtor again. I usually bypass real estate brokers and MLS and deal directly with land owners.
Go to the town office or county seat in your area or the area you want to buy land, or wherever real estate records are kept. Most towns and cities have this information available online now. But most of the rural communities in Maine do not.
The objective is to locate the largest land owners in the area. I like to identify the top15-20 land owners. Now grab their name and mailing address. You’re going to write a personal letter to the land owners, introducing yourself, and what you’d like to do.
Let’s say you’re looking for two acres of a partially wooded land, not ocean front or ocean view. Here’s an example of a letter I wrote:
Owls Head ME
XXXXX Crescent Beach Road
Dear Mr. Doe:
I hope all is well.
I obtained your name and contact information at the town office from the real estate maps…I hope you don’t mind.
I’m looking for a couple acres of partially wooded land to build a small cottage.
According to the town records you have some land in the area.
Would you be willing to sell an acre or two at a fair price?
The economy has taken its toll on land and housing prices. But if you’re open to the idea I’m sure we could reach a satisfactory agreement.
Please let me know…or perhaps we could meet face to face.
I mailed this letter to twenty-two recipients and nine of them responded.
Four of the people who responded wanted way too much for their vacant land. Their pricing was not based on reality or current fair market conditions. In other words, they were dreaming (most people are living in a fantasy when they need to unload something – they always think it’s worth more than it is).
Interesting side note…
My brother in law wanted to sell some vacant land three years ago. He received about a dozen fair market offers, which he refused. Two years ago he received three offers. He declined. Last month he received one offer, and he turned it down.
The value of his land has gone down more than 65% in three years! It’s easy to say he should have sold. But he should have sold when he had cash offers in hand.
Anyway, five people were very interested my proposition. I inspected the land and found two perfect candidates. I made an offer on each of the properties separately.
The first offer was accepted without a counter offer!
I paid cash and it was about a quarter of the current market price for comparable land! If you think that’s great then you’ll love this…..
This tactic…writing to people on a personal basis…one-on-one…also works for buying homes, businesses, mineral rights and water rights too.
Let’s sum up the tactic:
1) Find a list of prospective sellers for whatever it is you are seeking. Most of this information can be found at town, county or city offices
2) Write a personal letter and introduction stating your desire
3) A percentage of recipients will respond to a good letter. But only a percentage of recipients will be “qualified” or interested in your offer
4) Follow up with positive responses and inspect the land, properties, buildings, business, mineral rights or well
5) Identify the best property, house, land, business, etc. for your purposes
6) Submit an offer to purchase
7) Close the deal…and count your DEEP DISCOUNT savings!
It’s simple and yet incredibly powerful tactic, that works in the real world.
“The King of Business Opportunities”
(Ed Note: Marc Charles is referred to as “The King of Business Opportunities” ….and for good reason. He should be known as “The King of Legitimate Business Opportunities”…because he’s launched, bought, sold reviewed and advised on hundreds of businesses and money making opportunities. He understands legitimate opportunities. Marc has agreed supply League of Power members with crucial updates regarding legitimate business and money making opportunities.)
Go to your town office or county seat – where tax maps are location.
Write down a list of the top 20-30 land owners.
Write each one a personal letter like my example.
Send it via snail mail. Wait.
You’ll probably receive 5-6 responses (maybe more).
Most of the respondents will want way too much for his or her land.
But two or three should be interested and want to work with you.
Inspect the land of the best responders. Make a nice cash offer.
Close the deal!
Google “tax maps” and your county
Trulia (excellent real estate site for land, bank owned, and foreclosure property)
LoopNet (another great site for locating vacant land)