$532K in One Month Selling Land They Didn't Own - Ep. #308

Chris Koerner (0:00)

Every other day, these 23 and 26-year-old brothers go down and check the mail and find a signed contract to buy a piece of raw land. But that's the whole secret. They're not even buying this land themselves. They went to a builder beforehand and say, hey, how much do you pay for spots of land to build homes on? They tell them, then these guys go out and find people willing to sell. They take a 10% profit margin. That 10% is about $8,600. Their best month, they did over $500,000 in profit. Today, we're going to learn about flipping land. How can you flip land without any money? All you need is a phone, an internet connection, and a willingness to talk to people, and you can make a lot of money flipping land. Let's dive right in.

Okay. Jackson, Carson, welcome.

Jackson (0:46)

Thank you. Thank you.

Chris Koerner (0:47)

Welcome to Texas. Why don't you tell me who you guys are and what you do?

Jackson (0:51)

Awesome. We're brothers. My name is Jackson. This is Carson.

A little over four years ago, now like four years and a couple months, we started a business and we found out about it on accident, where we are getting paid finder's fees to bring home builders their land. We're essentially selling other people's properties without owning it ourselves. For an example, just 90 seconds, what the business model is, is we'll reach out to a home builder that's just building homes to resell them. We'll say, hey, I see you built nine homes in the past month. Are you looking for more land to build on? They'll say, yes, I'll pay $50,000 for anything in this specific neighborhood. Then we'll go through that neighborhood. If we find someone to agree at $40,000, we make $10,000 without putting up any money.

We have different systems and stuff we've developed to be able to do more of these deals and reach more sellers and stuff like that. But that's the full business model is we are selling other people's land without owning it ourselves, and then we keep the difference as our profit.

Chris Koerner (1:42)

Is this wholesaling? Is that another word for it?

Jackson (1:44)

Yes, essentially.

Chris Koerner (1:45)

Okay. Let's break down exactly what wholesaling is. I've done wholesaling.

Jackson (1:49)

Okay.

Chris Koerner (1:49)

Here's what I understand it to be. Tell me when I'm wrong.

So you will primarily find properties off market, right? Postcards, yellow letters, cold calling, whatever. Looking at the MLS and you will try to get them under contract. And that contract has a clause in it that says I can sell this contract. Yes. I have the right to do that.

Jackson (2:11)

Right.

Chris Koerner (2:11)

So you will find, let's say, a one acre lot for 100 grand. You know the market price is 170

Jackson (2:18)

Yep.

Chris Koerner (2:18)

So you will buy it and either just list it on the MLS for 170 or you will sell the contract to another investor for 150 or whatever. And it never hits the MLS. But the key point is you're never buying the property, right? You're putting in some earnest money and you've got like a 30, 60, 90, 120 day window to find a buyer for that property or you lose your earnest money.

Jackson (2:45)

Kind of. So yes, as far as what wholesaling is, right? Exactly. So you can do this with houses. You could probably do this with an MBA contract, right? You just need one clause.

Chris Koerner (2:53)

You're trading paper.

Jackson (2:54)

Yes. It says assignable. So if it says assignable, it means I can sell this person's property without ever buying it myself. Right. And then, yes.

Chris Koerner (3:02)

Sell this person the right to buy the right property.

Jackson (3:04)

The right. Yes. Yes.

So if I get someone to agree to sell their house for 200,000 and then I find a fix and flipper to pay 210, right? If I have that assignable contract, I send the two contracts to something called a title company. And then the buyer sends 210,000. The buyer gets the house. The seller gets 200,000. You would make 10 grand without putting up any money. Right. So that's customary wholesaling.

Chris Koerner (3:27)

Have you ever bought a land deal yourself or have you wholesale to everything?

Jackson (3:32)

We prefer to wholesale everything, right? But like we've bought them ourselves, I'd say probably 5% of the time, right? For different circumstances, right? So for an example, if we have a lot that's worth more than we're getting offered, right? Like now we have the ability to be able to purchase it ourselves, right? In the beginning, we didn't have any money, so we couldn't buy the lots ourselves.