Hi, my name is Jack Bosch and I love land! I have flipped over 4000 properties all over the US. And let me say this: I love houses. I own a portfolio of rental properties, apartment complexes, commercial property and so on. However, I love Land and lots more!! And here is the reason: With land and lots you can do almost the same as you can do with houses, yet you have almost none of the hassles that come with houses. Plus, contrary to what many people say you can make land cash flow – MASSIVELY.
Hi, my name is Jack Bosch and I love land! I have flipped over 4000 properties all over the US.
And let me say this: I love houses. I own a portfolio of rental properties, apartment complexes, commercial property and so on. However, I love Land and lots more!!
And here is the reason: With land and lots you can do almost the same as you can do with houses, yet you have almost none of the hassles that come with houses. Plus, contrary to what many people say you can make land cash flow – MASSIVELY.
So, what can you do with land:
First of all, there are lots of things you can do with land that you ALSO can do with houses.
You can flip land/lots just like you can flip houses, including wholesaling, retailing, assigning, and doing double closings, you can lease land, sell land, keep land for long term appreciation…
just to mention a few things you can do with land, and the best part is that you can do most with very LITTLE competition. In the current market climate with everyone chasing houses this little competition piece is certainly a BIG factor that even experienced house flippers are starting to look at lots and land more and more.
Let’s talk about Wholesaling a bit. The beautiful thing about land and lots is that with the technique I will show you at the Boston REIA on May 6th, anyone can find properties and lots and put them under contract for anywhere between 5% and 25% of market value (so a 75%-95% discount)
– I know that sounds hard to believe but I have done over 4000 deals using this technique alone – and when you lock up properties for so cheap you can easily sell them at wholesale prices (like 50% of market value for a property you bought for 10 cents on the dollar) and make a nice profit (like increasing your investment 5-fold) on these properties. All without rehabbing, getting permits, talking to contractors, or even inspecting the properties, because there are no roofs, bathrooms, plumbing, foundation issues, or anything like that on land. It’s AWESOME!!
Of course, you can also retail the properties at full market value, particularly if the properties are a few lots in a nice development right in town. The market is on fire and builders and developers can’t find properties fast enough to build on. That means even if you are a house investor right now and you are struggling finding deals but have been walking past land and lots for years, it might be time to take a second look. More of course about that at the May 6th meeting.
That was just one example of what you can do with lots and land.
But in addition to things that are similar, there are also a few techniques that ONLY work with Land and which you can’t do with most residential houses. These are things like “subdividing a lot”, rezoning all or parts of a property even in a developed area”, and of course “building on it”. These are all things that can increase a lot way more than a high involvement, high stress, high headache, high hassle rehab project can do to a property. Split a lot into 5 even in a rural area (in Arizona where I live you can do a 5-split in many cases with just a simple $400 fee to the county), and you might have doubled or tripled the value of the combined properties. All without putting a nail into it or even getting a surveyor to the property.
But that’s not the best about land yet.
My favorite thing to do with land is to make it Cash flow. Yes, you heard that right again. It also happens to be the fastest way you can sell a property in any market, whether the market is up or down.
What I am talking about of course is Seller financing.
Seller financing, is in simple words, the process of allowing a buyer who perhaps doesn’t have all the cash to buy the property outright, to pay a down payment and pay the rest of the purchase price over 3-15 years (depending on how much they need to pay off) in monthly installments.
Of course, you can also do this with houses and there is a big market for that, but it’s just again easier and simpler to do this for land and lots. The main reason this is simpler with Land and lots because land and lots, as several attorneys have confirmed for me, is outside of Dodd Frank (Dodd Frank mainly covers Residential Property aka houses), and therefore all those crazy Dodd Frank rules concerning Seller financing, where they force you to jump through hoops, check buyers on their ability to afford the property… just don’t apply.
I am very much looking forward to highlighting one of the highest profit, lowest competition, and simplest to implement real estate techniques in the current market place (and it works everywhere – even remotely).
To Your Success,