Investing in Raw Land, with Mark Podolsky, the Land Geek

Curious about how investing in raw land could help you accomplish your financial goals? In this episode, we’re talking with Mark Podolsky, The Land Geek, the raw land investor who’s completed over 5500 land deals, with an average ROI of over 300% on cash flips, and over 1,000% on the deals he sells with financing terms. https://www.youtube.com/watch?v=AMB7SWZLyn8 So if you want to learn from a raw land investor who’s replaced his income and helped many other people do the same … tune in below! Table of contents* How Do You Invest in Raw Land?* Doing Your Due Diligence with Raw Land* What Happens Next?* How to Make Your Offer Irresistible* Raw Land Creates Value* The Risks of Raw Land Investments* Privatized Banking and Raw Land* About Mark Podolsky* Links How Do You Invest in Raw Land? In our interview, Mark starts us out with a case study, using Bruce as a hypothetical. In this instance, Bruce lives in St. Louis, yet owns 10 acres of land in Texas. He also owes $200 of back taxes. He’s advertising two things here: no emotional attachment to that raw land, and there’s some sort of financial distress. You, as the raw land investor, would look at the comparable sales on his 10-acre parcel for the last 12-18 months. Then, you take the lowest comp divided by four, giving you what Warren Buffett would call a 300% margin of safety. Then you’ll send an actual offer. Pretend the lowest comp is $10,000. You would send an offer of $2,500. Chances are, Bruce will accept the offer, because it’s better than nothing. In Mark’s case, 3 out of 5 people typically accept his offers. Then it’s time to do his due diligence. Doing Your Due Diligence with Raw Land When Mark Podolsky talks about due diligence, here’s what he means: * Does “Bruce” still own the property?* Are the back taxes only $200?* What’s the ingress and egress?* Are there any breaks in the title's chain?* Are there liens or encumbrances?* Is there legal access?* What are the neighbors doing?* How far is the property from other services?* What are the roads like?* What is compelling about the property? It’s crucial that before you make an investment on a property, you know all the important factors. You can also enlist help: Mark himself outsources this step to his team in the Philippines, because they are connected to an American title company. It’s not costly either. For larger investments, working with an American title company directly is beneficial. Or you can even outsource through Craigslist. Taking the time or spending the resources to vet your land thoroughly will pay off in the long run. What Happens Next? The trick to raw land investments, after you vet the property, is to sell in 30 days or fewer. Then, you can make it cash flow similarly to a rental property, and be ready to invest in the next plot of land. So who do you sell to? Fortunately, with raw land, you have built-in buyers: the neighbors. Intrinsically, the neighbors are going to have an interest in this land more than anyone else to start.