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[Music] right [Music] hello hello I am Chris Thomas and this is land flipping 101 where you can learn how to earn your Financial Freedom through land investing even if you're a complete beginner with no experience today I'm sitting on my back patio in Sunny hot and humid Nashville Tennessee where I've lived for the last 30 years except for a few years when I lived in New York City in Los Angeles but that is the story for another day today I'm going to talk about neutral letters versus blind offers and also I will take your questions so please post any that you have into the chat now I wanted to mention land flipping 101 this group on Facebook is for beginners in land investing this is not a place to post deals for sale or to try to find buyers or sellers okay so first let's get started I'll say hi to Laurie and Andy thanks for posting a note to me okay I was going to go ahead and show you my pipeline as of today so I have seven properties currently listed for sale they are a 15 acre tract an 18 acre tract a seven acre an eight and a pair of sixes and then I have two more properties that are in due diligence and six in the listing creation phase or the marketing phase so these are contracts that have signed that are now getting ready to go to market and then I have another 25 conversations going on with prospective Sellers and some of these I think maybe four or five of them have already sent back a signed agreement and my partner and I or he's in the process of reviewing the property you know just to make sure we we definitely want to do it now some properties we have are are getting the preliminary property report back from title and we will not begin marketing a property until we have a good idea if title will insure it hey Edgar and Steven welcome okay so basically we have about 15 for sale right now or about to be for sale about 15 properties are active and then hopefully another four that just signed so we have an active land investing business and we've been able to automate and Outsource quite a bit and so I'm not saying we're not busy because we are but it's allowed us to have a little more time where I can come out and try to give you a hand as you're trying to figure out this thing because that that's what really helped me when I got started is somebody else helped me they helped me answer and clarify when I would get stuck and you know it just made all the difference you know because I was at a point in my life where I felt very desperate like I needed to figure something else out as a form of income and just getting a little extra help is sometimes all that it takes so but finishing up with my pipeline off my soapbox I have one left to close this month which will produce a 35 000 profit and that is a 171 percent return on my investment yay and hi Ellery and Brett so guess what it's taken me eight months to get this one closed okay so if you're a Praying person I need this one to close I bet you would enjoy hearing more about this property um so this one has been much more challenging to sell than others that we've had this was 15 acres in the back of an upscale neighborhood the developer could not do anything with this section so he had you know he accepted my letter when it came in the mail it has a gravel road easement across it that leads to the neighborhood's sewer plant it has gas lines buried underground and power lines overhead all the way across the property and it's 99 in a flood zone the neighboring Golf Course dumps its grass clippings there so the purchase agreement we originally signed was October 14th to close by December 27th for a purchase price of fifty thousand dollars and for those of you who know me I put it under contract and then I Market it for sale before I close and especially this property because there were so many issues I remember my partner and I kind of arguing like I don't know if we should do this one and he he's the one that really insisted yes we should and uh I'm hoping this next week he he will prove himself right based on the comps the market value there was 165 000 but we were in a flood zone and those properties weren't so we went in and listed at 99 000. well it didn't sell So eventually I went back to the cellar and extended the agreement through May the 4th so but then in April I had an offer so I grabbed it I put it under contract for 69 000 with no contingencies and my partner suggested that I go back to the seller and explain that we could no longer offer him fifty thousand based on all the issues with the land and I could really only offer him the new price which was basically half so I put it under contract for fifty thousand I came I called him one day after extending the agreement once and said I can only pay you 25. and he accepted it so I was like okay so that just shows you a motivated seller um the money is really not always the issue so I went ahead and planned a simultaneous closing with both the buyer and the seller and this was back in April and two weeks after the scheduled closing the buyer backed out so I had already closed on buying it and I was waiting for the seller or the end buyer to go ahead and close and they just never did and and I never found out why either and this was my first foray into a new state so I learned a few things about the contract the hard way so we had to go back now that now we own it so now we had to put it back on the market and we decided to price it at 79 000. now finally in June I got this under contract again this time the offer we accepted was sixty thousand dollars and it's set to close on July 22nd so again if you pray I need it to close since I own this one so it will still be a thirty five thousand dollar profit and a 171 percent return that's awesome it has it was no picnic though it did take eight months and meanwhile we were continuing to send out mail and continuing to find new deals but you know I have found that when I'm offering 25 of market value for property it often comes with problems like this property this this might be the worst one we've had so far um but let me encourage you just to set your expectations because it won't be all rainbows and lollipops all right I see lots of hellos but I don't really see any questions in here uh I may I could go back in the group and maybe um look for questions in there but post your questions and I'll go ahead and talk a little bit about the terms blind offer and neutral letter you've probably heard those terms a lot in reference to the types of letters to send and the main difference is that a neutral letter is one where there's no offer price and you're just sending out an interest letter really it's kind of like going fishing with the hope of catching a seller that might be interested in selling they also might not be typically you would mail out your neutral letter you'd receive calls back from recipients of the letter and then go research the property determine to determine what your offer price will be and then next there's the follow-up with the seller to make your offer negotiate an agreement and then send out a purchase agreement to them either in the mail or or electronically it's really a lot of work on the back end researching the area and you can get backlogged especially if you send out a lot of neutral letters now blind offers are where you send Property Owners an offer as a purchase agreement in the initial mailing and and I use blind offers because it removes the bottleneck of having the seller contact you than having to price the property then send them an offer and a second letter and if you haven't already be sure to download the exact owner letter and purchase agreement that I use in my business every day you can go to landflipping101.com and give me your email address and I'll send out the actual letter it's a two-page letter it's a letter to the property owner and then the second page is the actual purchase agreement that when they sign it I'll send off to the title company to get to get it to closing but nowadays you know we have the technology and resources to come up with a general per acre price for a prospective seller's property so we go ahead and do the research up front and mail them an offer and the seller can then decide to either throw away the letter and never we never hear from them again or they might call us asking about the offer and at this point when they call they're probably interested in selling because they've seen our price now we do get unhappy calls too because sometimes people think the price is too low but if someone is not mad then this is a great time for us to run a more targeted comparison of the actual property to reconfirm that our price is correct as we sent it or it gives us a chance to hear the counteroffer maybe renegotiate the price the point is that we do less work when we only speak to people who know the offer price and choose to call all right let's see if there's some questions in here yay I see a few okay do I use Brett Campbell says do you use a company for Direct Mail marketing so Brett what I use is a third-party Mailing Service I use rocket print and if you tell them you know me they'll give you my pricing and Rocket Print and Mail takes my letter and my data set which I download you can get it from data tree or from priced and they will merge it together for me they'll send me a proof and I review the proof and then when I approve it then they print it stuff the the letters and the envelopes and mail it out for me hope that helps Ellery asked do I use any va's for my business yes I do I use va's for about six or eight tasks everything from marketing to due diligence to posting on social media Ahmed asked what's the regular deals that you close on in a monthly basis that doesn't take eight months how big are they how long do they take well Ahmed my average profit per deal is 35 000 so but it's different every month I mean I I think in March we made 84 000 in April we made about ninety two thousand and so I'm not really tracking like how many per month that would be a good a good thing to look at um let's see Ray says what do you use to count property values well Ray I don't know how much you might know about houses but it's very similar to the way houses are comped you basically just take a property that's very similar to the subject property that you're looking at and look for any sold comps in the area I do that by looking at all the websites Zillow Redfin realtor Zone land watch all of those hope that helps well I don't see any other questions I hope I don't I did not miss any but I just will finish by saying you know that the the real key to my success has been consistent daily action I send mail out each and every week without fail and if you take the steps and send the mail you will find success too this is a proven business model and if you send the mail you will find deals and you can start as small or as large as you would like just decide what you want to make and then kind of reverse engineer so you can invest your own money to buy the property or you can use one of dozens of investment options such as a double close without risking any of your own money so if you have any questions or just want to talk with me one on one look for the calendly link to schedule a free 15-minute meeting with me it's located in the announcement tab at the top of the page this is not a sales call and I'd love to just learn about your goals and help you get started or help you get unstuck and let's take your real estate investing business moving forward you can do this and I'll be glad to help have a good one oh