Real Estate

This is Michael Kimble, and I have some great information about land deals to share with you. Last year, I got to watch from behind the scenes as Jack Bosch launched an entirely new REI product: his “Land Profit Formula.” When he came from Germany to the United States 12 years ago, Jack was planning to finish his degree and start a career in the business world. He found both school and office work to be extremely boring, so he decided to start his own business.

Jack Bosch is in a unique position, because he’s the first person to actually flip raw land. He wanted to create the simplest real estate investing system possible. The less work he had to do, the more time he would have to himself. He’s always focused on obtaining the “REI Lifestyle,” where a typical weekday involved a little bit of time at his desk and a majority of his time with family, on vacations, and enjoying his life.

Bosch got his start in real estate working with tax lien properties. The government places liens on homes where the owner has fallen behind on their tax payments by a few years. These home owners are often eager to get rid of those properties, and will offer discount of up to 50% or more off. While there are a lot of tax lien deals out there, they take a long time to close and yield pretty meager profits, especially in today’s economy. Eventually, Jack grew tired of the hassles of dealing with physical structures like houses. When they stand vacant they’re robbed or vandalized, and can be difficult to pitch to buyers when they need serious repairs. At that point, he decided to try flipping raw land. Public records has database of land owners who are only a few months behind on their tax payments. There isn’t a lien yet, but it looks like the owner might be having trouble holding the property. Jack started acquiring deals with direct mail, learning the best criteria to get the best deals through tests. He got so good at direct mail, a mailing of 100 pieces gave him 33 properties to flip! The best land deals are ones where the owner inherited the land, or purchased it as an investment to sell several years later. By the time Jack reaches them with his direct mail, they can’t hold the land any longer and are eager to let it go.

It’s surprising how eager land owners can be to sell you their properties for pennies on the dollar. Jack’s land deals are usually valued between $5000 and $8000, and he only pays between $100 and $2000! There are even land owners who don’t think it’s worth their time doing all the paperwork to sell the property, so they just give it to Jack for free! While the per-deal profit may not seem like much, land deals are so simple to do, you can have several of them in your pipeline. You don’t have to have much money to acquire a deal, and there’s even a way to avoid paying taxes and fees until after the deal close. The best part is how easy the deals are to do; during the busiest part of Jack’s career – the launch of his “Land Profit Formula” product – he was working on more than 20 deals.

Jack enjoys working on land deals so much, he’s sharing his knowledge with other real estate investors. In his “Land Profit Formula,” he includes templates of his direct mail pieces, and techniques for attracting buyers. He explains how the deals can be completed from start to finish.

Michael Kimble’s daily blog at Wholesale Real Estate blog has more daily tactics and news, as well as real estate investing videos. He also has 4 free marketing systems that you can download, at : Wholesale Real Estate tips.

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