I recently funded and closed a deal that came with a few key lessons, each reinforcing strategies for long-term success in land investments. Here’s what I learned:
1. Sometimes You Give Up a Little to Gain a Lot
When working with partners, it’s worth taking a smaller percentage on a deal to cultivate a strong, long-term relationship. In this case, I intentionally accepted a reduced cut, knowing this collaboration could lead to many more lucrative opportunities down the road.
The takeaway? Think beyond the immediate profit. Building trust and rapport with your partners can pay off significantly over time.
2. You Don’t Always Need a Realtor
If you’re familiar with the area, consider skipping the traditional commission model by using a flat fee MLS listing service. On this deal, we bypassed realtor commissions entirely by listing the property ourselves.
The result? Increased profit margins and more control over the sales process. While this approach isn’t for every property or market, it’s worth exploring when you know the area and buyer pool well.
3. Target Higher-End Properties
This property was just a block from the beach—prime real estate. We purchased it for $69,600 and sold it for $195,000. Deals like this attract serious buyers who know what they want and are ready to act.
In contrast, lower-priced properties often draw less experienced buyers who might waste your time with excessive questions or unrealistic offers.
If you’re new to investing, don’t shy away from higher-end deals. Partnering with an experienced investor or joint venturing can make these opportunities accessible. As the saying goes, it’s better to have a small slice of a watermelon than a whole grape.
Conclusion
This deal was a reminder that land investing is as much about relationships and strategy as it is about numbers. Be willing to adapt your approach—whether it’s collaborating with partners, reducing commissions, or aiming for premium properties—to achieve success.
Start thinking bigger and smarter, and you’ll see how small adjustments can lead to big rewards. Keep learning, and happy investing!