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Monthly Archives: January 2012

How I Leverage Technology To Get More Deals Done

By: Mark Podolsky | January 26, 2012

Being a land geek has its advantages. I have been able to leverage technology to be able to get twice as much done to focus on deals and not be bogged down by paperwork, mailings and flying on planes to research land.

We are in the Golden age of real estate investing. It used to be a slow and arduous process to get a deal done just because of all the due diligence and paperwork involved.  Today, using technology I have found five great web sites and services to allow me to focus on what is going to make me money… Closing deals.

The first website I utilize on an almost daily basis is www.docusign.com. Whether you are a realtor or real estate investor, docusign is an invaluable resource when you have to get your customers to sign on the line that is dotted. What used to take several days in document preparation, regular mail or FedEx and their associated costs I can now do in a matter of minutes.  Plus, the future of computing is mobile phones and tablets. Docusign allows me to view, sign and edit my  documents on the iPad, iPhone or an Android phone. Plus, the monthly fee is small compared to the monthly FedEx fees I had to incur in sending my contract out to my various customers throughout the country.  The turnaround time is instant and the dream of a paperless office is now a reality with services like Docusign.com.

the 2nd website I find invaluable is a map making site www.expertgps.com. Oftentimes, I used to have to rely on a professional surveyor to create a map for me to show my online customers the GPS coordinates of the property,  the driving directions to that property and the topographic features of that parcel. Instead of paying a surveyor over $100 an hour to prepare these complex maps  I now utilize a $200 software program named www.expertGPS.com.   by simply typing in the Township Section and Range of a property, expert GPS will create a map for me.  It works in conjunction with Google Earth and I can then manipulate that map several ways to show my customer the driving directions, the GPS coordinates as well as the topographic features of the property. What used to cost money and time in map making now literally can be prepared in minutes. In fact,  I have created a 3 part video series for my land geek coaching clients to teach them how to create these maps online using expert GPS.com in conjunction with Google Earth.

Another great time-saving website I have found is www.simplecertifiedmail.com.  When need to get someone’s attention, a great way to do that is to send them certified mail. Unfortunately, when my note clients are late on their payments I find that certified mail is an effective way to get their attention in order for my note payment to become a priority. However, it’s a pain  to have to drive to the Post Office,  stand in line, and then hand write a certified mail label. For a small fee, simplecertified mail.com allows me to print by certified mail postage online and they provide the certified mail envelopes and I can even track when my recipient receives their certified letter. This wonderful online service saves me time and gas not to mention the frustration of waiting in long Post Office lines!   If time is money, then you really owe it to yourself to check out www.simplecertifiedmail.com.

The fourth time saving website I have found extremely useful for my due diligence is a new service called www.wegolook.com.     I always tell people never acquire property sight unseen. Yet, I often have to buy property sight unseen because even using Google Earth and all the tech tools at my disposal nothing replaces a human being going out and stomping on the property. However, to save me time and money and allow me to do deals throughout the country I utilize the people at www.wegolook.com to go and find the property, take pictures for me and basically do a phase 1 inspection of the property. If the people at www.wegolook.com can’t find the property, then most likely my potential buyers won’t either and that is a good indication that no matter how fantastic the deal looks I should pass on it.   Plus, the service is ridiculously inexpensive starting at only $49.

The last service I use is like a de facto escrow company for me. When dealing with inexpensive raw land, sometimes I will simply do a title search on my own and save the money using the title company and an escrow service. The way I do this is utilizing a company online named www.notarypro.com.   For example,  I send an offer letter to a potential seller whom then accepts the offer.   Using expertGPS.com and Google Earth as well as wegolook.com I thoroughly research the property and discover that it’s a fantastic buy. So to close the deal, I send all of the documents to the notary, they set up a time with my seller whom then signs over the property to my company.  The notary notarizes their signature, gives the seller a cashiers check and then sends back all the documents to me. As a result, I save money on escrow fees and my seller gets a quick close.  Moreover,  I have a faster turnaround time as well with all of the paperwork. I have found this way of closing deals safe, effective and my sellers love it.

Have I missed an excellent website?   Please leave me a comment on how you use technology to either research transactions, close transactions or just save time and money.

 

 

3 Questions To Ask Yourself Before Investing In Any Property

By: Mark Podolsky | January 23, 2012

 Oftentimes I have noticed the average investor doesn’t ask themselves the 3 most important questions before investing any piece of property.   Usually, they get emotionally involved in the imaginative issues with the property. They can see it as a wonderful homestead or a refuge from their busy lives. Yet, before jumping in feet first you should ask yourself these 3 questions:

1. Are the taxes low enough on this piece of property so if my circumstances change and I can’t for whatever reason be able to accomplish my initial goals that I have for this piece of property is it going to affect me negatively in the long run?

You never want to get stuck with a piece of property that could become a liability for you and not an asset. Land can be a great long-term investment, but it can take many years for that piece of property to appreciate in value and each year you have to pay the taxes on that piece of property. If the taxes are so high that it’s going to become a financial burden and as a result you may one day have to liquidate that piece of property at a loss, then the whole purpose for buying the property has been wasted.   I love rural property simply because of its natural beauty, the open spaces, the privacy associated with it and the lack of restrictions. Nevertheless, I can hold on to that piece of property for many years without it becoming a financial burden simply because rural property typically has a lower tax basis than an already improved piece of property. 

2.  What is compelling about this piece of property?

Before I invest in any piece of property I ask myself what is so compelling about this property that if I had to sell it tomorrow to another buyer they would also find the same attributes about the land compelling. For example,  am I buying this property because of its natural beauty? Does it have mountain views, or is it near a lake or major body of water? Am I near a large city that is growing or has many amenities that most people would enjoy? Is there a creek running through the property or am I in the path of growth? Can I farm this land or is the terrain a perfect place for recreational use? That is, don’t invest in the property simply because it seems like it’s a great deal. If price is the first and only consideration, you may be making a huge financial mistake because ultimately that property will  go up in value and if there is not something compelling about that property to another buyer you could simply be stuck with it. 

3. How do I know I’m not overpaying for this piece of property?  

Determining what you should pay for a piece of property as is often trickier with raw land than it is for a home or apartment building. With housing it’s very easy to look up the comparable sales in the neighborhood and see what most people are paying and what range. However, with raw land there are so many factors that come into play that each piece of land needs to be evaluated on its own merit. Typically, you need to first determine what your highest and best use for that piece of property is going to be. If you are planning on building on that piece of property what are the costs that are going to be associated with that? How much to install a well? Do you need to blade roads? How much to  tap into power or go solar? What will that cost? Any improvements you make to the property need to be factored in to the total cost of the investment. Then, you need to contact the local realtors and see what similar pieces of property are selling for in the same area.  Maybe another seller has already made the improvements that you are interested in and you can get it for a better price and fewer headaches.  After you do all this analysis, you should get a good idea of what you should pay for this piece of property. If the seller is not realistic about the price, let them know during your negotiations why you think the property is overpriced before you make that low ball offer.   Another place to look  is Craigslist and see what people are selling their lots for on a for sale by owner basis. If you notice that the property you are interested in is higher than the for sale by owner listings on Craigslist that’s a good indication you may be overpaying for that piece of property although again each piece of property is different and you have to look at each unique attribute of that property.

Asking yourself these 3 important questions before making any land investment is going to save you  money and is going to make you a much more sophisticated land investor.

If you found these 3 questions helpful in your land search leave me a comment.  

What drives you to be a land baron?

By: Mark Podolsky | January 6, 2012

So, what drives you to be a land baron? When I first started acquiring land it was a means for me to get out of a dead-end job. My wife thought I was crazy and I didn’t care. I knew that the worst-case was I would own land. Even if I couldn’t sell it, or make a profit on it I had something that was more important to me than any other possessions that I owned. If everything went to hell in a handbasket in my life I knew in my gut that here was something I owned that I could escape to with my family.  The romantic notion of  living off the land like the early settlers appealed to my inner explorer.  I think most of my investors are looking for camping property or property where they can go around exploring the surrounding areas and it’s not just a cold calculated investment for them like a stock or mutual fund. I think for some investors the reason they want to become a land owner is it represents an escape for them should society ever really break down (hopefully, that never happens.)I think some  land investors really want to get back to a simpler way of life in the opens space of unadulterated clean air and views. When visiting my Nevada property I was taken aback by the quiet along the back drop of mountain views. The pride of ownership of going to bed every night knowing that I own 40 acres in a pristine part of the world just puts a smile on my face.So, shoot me a line and let me know what motivates you to be a land baron.   I’d really like to know.

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