Can you believe it’s FINALLY December?
(We sure can’t.)
If you’re like us, you’re spending some time thinking about 2020 and making your plans and setting goals for 2021. We’ve been working on big deals, have made some even bigger changes to Land Academy. Check out the member updates below for all of the great things we’re adding.
It’s never too late – whether it’s getting started in real estate, ramping up your business, or anything else! Join us in finishing this year strong and setting the tone for an amazing 2021.
We hope you have a special holiday time with friends and family, and can’t wait to pick back up in January.
Our very own Jill DeWit will be starting a new live show!
“Property Flip with Jill DeWit – Women Only”
Date: Tuesday, December 15th
Time: 3 pm PST/6 pm EST
Everyone is welcome to watch the show live on our Facebook Page or live on our YouTube Channel, and remember to bring your questions!
This will be a weekly show – so you can attend every Tuesday!
Please make sure to attend and show Jill a little love for her first show!
Before I show how to correctly price a land offer campaign here’s a few interesting points about this topic (why it’s so important):
- Pricing is easily one of the top three most frequently asked questions / topics about land investing.
- It’s not possible to consistently and successfully implement an offer campaign without accurate pricing.
- Great pricing can mean the difference between mailer yield (the percentage of properties you buy to the gross number of individual offers) of .01% to 1%. So for every 1,000 you buy one property vs ten. This is important financially because the profit on ten transactions vs. one is substantially different and you want to make sure you cover your mailer cost every time.
- For some this is an insurmountable task and it keeps many people out of this business.
- Direct mail offer campaigns rank among the highest as the most cost-efficient way market. Much more efficient than television, print or social media marketing.
- Finally, accurate pricing accomplishes two imperative ingredients to a mailer campaign; it keeps both you (the buyer) and the seller happy.
The average profit from a land transaction is about $10,000. Correctly priced, a mailer campaign can yield between .01% to 1% or 1 to 10 transactions per mailer. For every 1,000 mailer sent you can net between 10,000 and 100,000 in profit. The cost of sending 1,000 mailers is approximately $600.00.
How to price a rural vacant land mailer:
So you’ve have chosen county(s) or zip code(s) in which to send offers, downloaded the data, scrubbed out bad addresses and other unwanted data and you are ready for the last step before you send it to the printer; pricing. The spreadsheet is staring back at you, waiting for your action.
Like anything you do where you desire a positive outcome, you start with end and work your way back;
- Using Realtor.com, or Zillow.com or LandWatch.com or Land.com or a combination of all of them collect the following data: Sales price per acre (column D below).
- Break the Sales price per acre down into the following categories (prices are examples).
As you can see, price per acre always go down as sized go up the same way price per square foot in buildings usually go down the larger the structure (column D). Smaller is almost always more affordable and the more you buy the cheaper it gets is a complicated academic topic to be discussed in another arena. Let’s just say we all know it to be true.
Actual dollars per parcel go up making it less affordable the larger the property gets (column E).
Column F calculates the actual price of the offer. In this case, its 20% of the retail value of the property. This is where the real talent and experience shows. This percentage is the variable in all pricing senarios. In some cases 10% is appropriate and some cases 80% is. This number largely is determined by how much activity is happening in the area, how much data is available and how many parcels there are in the universe of property in that county. More on this another time.
Column I is the difference between the retail value of the property and your purchase price. This is the equity you have created for yourself in the transaction.
Column K is your projected sale price. I usually sell for twice what we paid unless the property is in extremely high or low demand.
There are many factors that can change how mailers get priced but I always start with this model and customize from here.
Good luck and please email me any questions or comments.
A Message From the Offers2Owners Team
Last Month Numbers:
Offers Mailed: 374,217
Properties Purchased: 1069
Data Pulled: 300,944
New Product: FIRST CLASS
This is Ideal for anyone who enjoys a faster delivering time.
Same process as Docs Ready and Neighbor Letters, just First Class Postage!
- $0.91/per letter
- $0.87 with Land/House Academy
- First Class Postage
- Docs Ready & Neighbor Letters
- Delivery within 3 business days
- 1000 order minimum*
- 1-3 page letter
Envelopes, paper, printing, postage, free templates, and mail-merges all included!
Updates from O2O:
12 DAYS OF CHRISTMAS:
Last Promotion of the year Coming Soon!
Allowing Prepayment On Mailers:
If your files aren’t ready – NO problem!
We now allow you to PREPAY for your mailers and upload your files at a later time.
Scheduling Your Mailers:
Want to batch out your large mailings over time? – We got you!
Setting a number of mailers you want to send every month is the first step.
If you have questions, or need help getting started?
Schedule a call with Aaron today!
Want to learn more about how this works?
With our eBook you will learn about all of our products.
|Check out some of our favorite recent ones!|
2020 is (finally) ending, and no one is more excited for 2021 than Land Academy.
Even though we are still fighting this pandemic together, we have continued to work diligently on updating our member’s benefits. We want to say thank you for a successful five years – and let you know that land investing is still going strong.
We are launching new member perks this January, and it’s nothing like you heard of before.
We are proud to announce a partnership with Land-listing.com to assist you with your marketing and give you more time working on your next big deal. We always talk about reach – and this is just another great place to post your properties (available starting January 5th).
Free Data Records EVERY Month
More importantly, we will be offering members free data pulls every month!
Yes, you read that correctly, we are granting every member free records every month! We more than ever before believe that vacant land is the way of the future, and there is no better way to show than to make sure we do all that we can to help you pull the trigger with your larger mailers or larger acreage. All members will be receiving 1000 free records every month (that’s like $100 free per month or $1200 a year!)
Accountability Groups are officially coming to Land Academy!
Featuring 10 weeks of meetings, guidance, and instruction, we will take you through getting your first mailer out, property sold, and everything along the way! We’ll also have group chats to stay up to date in between meetings.
We previewed these groups on our 10/3 member call, so feel free to take a look to see a little bit of what’s coming.
Starting in January, Land Academy pricing is going up. All current members will be grandfathered in at your current rate. We recommend making sure your membership is in good standing and grandfathered in the $250.
We do have a few other member perks coming up this January, but those are still under wraps. Please note we will provide you with more details as we get closer to these launches.
You can email us at firstname.lastname@example.org to confirm your account or to assist you in getting back on track.
Continue to Get Your Questions Answered!
Schedule 30 min consulting calls with our very own Moderator Kevin Farrell! Members can schedule a 30 min call with Kevin by going to LandAcademy under tools or looking on the right-hand side of LandInvestors.
For just a $100 you can pick Kevin’s brain, from deal reviews to where to start with your land business.
Just click the link below and schedule your call today!
Have Suggestions For Membership?
- Is there a site or tool you use that you think we should add?
- Want us to develop a certain type of tool?
- Is there something missing from our current sites that you want added?
- Have specific content ideas?
We’re all ears! We’re always adding to membership and improving on what we always have, and we know that you have great ideas!
You can always email us at email@example.com with any suggestions or ideas.
Either Become an Expert or Pay an Expert
Recently, the following inquiry was posted in the Land Investors online community page: “Where do I go for Facebook help with ads and marketing? I’ve been posting ads for months without great results. I’d like to hire someone to just look at my account and ads and make sure I’m maximizing my marketing. I have received emails about my Facebook Pixel not being active, and I just need some overall guidance on the variables.”
While marketing tools and tips have become widely available to everyone in the digital age, successful marketing requires a lot of time, skill, and effort. Marketing is a whole job on its own. You can take care of it yourself for a while, but there will eventually come a point when you have to take your business to the next level. When that point comes, you must make a choice: do you want to become an expert at marketing or an expert at buying/selling property?
It takes a long time to become an expert at any one thing – 10,000 hours, as they say. What will you spend your 10,000 hours on?
– Marketing Team
Join our Facebook Groups!
Land Academy: Real Estate Investing (Land Academy)
House Academy: Real Estate Investing (House Academy)
Offer2Owners: Offers2Owners Group
This month’s question came from Kevin over on LandInvestors.
Thanksgiving is just around the corner and Christmas is right behind it. Every year the question comes up. Should I send offers during the holidays?
Check out Steven and Jill’s answer HERE.
Check out Kevin’s question HERE. Make sure you read the answers from our community – we love to hear their valuable input!
If you have not had a chance to talk to her or watch her interview, I recommend you do so! She is the model member, hitting over 1 million dollars from one deal!
She joined Land Academy in 2016 but didn’t pull the trigger on her first mailer until the summer of 2018. Christine and her partner had the original goal of $20k a month. Now their goal is $120k a month.
Watch Christine’s story HERE
If you want an opportunity to attend one of the weekly closed member calls to get a taste of what we’re about, send an email to firstname.lastname@example.org