I just closed on a deal where there wasn’t a lot of meat on the bone, but I believed in the manager and trusted his insight. He estimated we could sell the property for at least $100k, so we bought it for around $65k. Within just 9 days, we sold it for $102k. While the profit wasn’t huge, both of us still walked away with over $16k in record time. Here's what I learned:
1. Don’t Discount the Singles
Not every deal is going to be a home run, but that doesn’t mean it’s not worth pursuing. In this case, someone else was funding it, meaning my only real investment was time. The return might not seem significant at first glance, but small deals like this can add up over time. Even when there’s not a huge margin, if you’re consistently closing deals, you’ll stay profitable.
2. Singles and Doubles Win the Game
Just like in baseball, it’s the steady, consistent wins that lead to long-term success. Sure, we all aim for those home-run deals, but a solid flow of singles and doubles can keep your business thriving. Big wins are great, but it’s the small, regular successes that keep the wheels turning and the momentum going.
3. Work with Exceptional Local Realtors
A key part of this deal’s success was our trusted realtor. I’ve learned the importance of building strong relationships with realtors who truly understand land deals, especially in specific areas. In this case, our realtor told us that even the worst-case scenario would be a sale at $100k within six months, but we ended up getting an offer of $102k in just over a week. Realtors like this are invaluable—pay them well, treat them right, and they’ll help you close more deals.
4. Consider Early Offers Seriously
Finally, one of the biggest takeaways from this deal is the importance of seriously considering early offers. Sometimes, it’s better to accept a solid offer sooner rather than hold out for a potentially higher bid. I’ve seen investors—myself included—miss out by waiting too long for the perfect price, only to see that window of opportunity close. In this case, accepting the early offer allowed us to close quickly and reinvest in new opportunities.
Conclusion
In real estate, especially with land deals, it’s essential to stay open to smaller wins and recognize the power of consistency. Whether it's a large profit margin or a quicker-than-expected sale, each deal contributes to your long-term success. Trust your team, work with people who know the market, and remember: even singles can win the game.
Stay tuned for more Lessons in Land!