Vacant Land Investing Made EZ for Joe the Plumber
November 21, 2008 by Steve Haight
Boo. Some pretty scary times right now in the economy.
If you have a heartbeat, then you know that the dominant emotion right now in this country is FEAR. Fear of financial collapse… fear of never being able to retire… fear of losing your job… fear of the unknown.
Just plain FEAR.
And people have a right to be scared by what’s going on. After all, if the auto industry tanks, 3 million people could be out of work overnight. 150 BILLION dollars of income could disappear from the economy. Not to mention the ripple effect that would create through all of the businesses that support those plants.
If you’re scared… you have every right to be.
But just because it’s normal to be scared right now doesn’t mean it’s smart.
Smart investors get scared. But smart investors don’t let FEAR affect their decision making.
Here’s what one of the richest men in the WORLD has to say about fear.
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
-Warren Buffett
Now if you’re going to take investment advice from anybody, Warren Buffett is probably the guy to give it to you. Just look at his results.
The Golden Rule of Begging: If You’re
Asking for Money, It Doesn’t Help You
to Pull Up to the Meeting in a Rolls Royce
So this week, the CEOs of the Big 3 (Ford, GM, Chrysler) are piling into their private jets and taking a day trip to Washington to sit on Capitol Hill and beg for handouts.
But they had a bit of trouble explaining why they needed money so badly and still were able to spend the $20,000 or so (EACH) to fuel up their private jets to get to the big show in Washington.
Listening to their testimony was really eye opening for me. It opened my eyes to just how clueless these folks are. And how reckless they’ve been with their investors’ money.
Since I’m in the land investing business, my mind usually focuses on things from the perspective of the investor. It’s just how I’ve trained my mind to think. I’m always looking out for the investor.
In the case of the Big 3, you have shareholders sitting around watching their investments disappear right before their eyes.
GM just hit a 66 year low of $2.52 per share. Ford a 26 year low of $1.21.
Things are NOT looking good.
And the big wigs are still using the private jets…
Is that who you’d want managing your money?
How Much Water (Money) Would YOU
Pump into a Leaking Balloon?
And that’s what’s so terrible for all of the Big 3 investors. You buy stock and you place your trust in the COMPANY to manage and protect the value of your investment.
The company (which in this case happens to be a set of 3 dinosaurs who wouldn’t know innovation if it smacked them in the face) have been dragging their feet for years. Just fat and happy… willing to pump out overpriced, gas guzzling cars left and right.
But now that’s a problem. Because here’s the deal:
If the average American can’t afford to go into DEBT, then the Big 3 can’t afford to be in business.
It’s a deck of cards really… and it’s starting to fall.
So they’re asking for 25 Billion dollars of YOUR money to tide them over…
Tide them over until WHAT is a question they’re not really willing to answer.
The “bridge loan” they’re asking for doesn’t really address what they’re going to do to fix their companies.
I’m not sure they’re really interested in that.
The bridge loan is simply money to tide them over until the U.S. consumer can afford to start borrowing money like a mad man again.
What If Shareholders in the Big 3
Could Have Locked in Their Profits
When They Bought The Stock?
Now let’s jump into the world of the land investor.
Like I said last week, smart land investors don’t buy and pray. They BUY because they KNOW they got a deal ON THE BUY.
That’s how you make your money in land.
It’s a much more profitable way to invest… and you sleep a whole lot better at night.
And that brings me to someone I’d like to introduce to you today. His name is Mike McClaskey. He’s a smart land investor and a colleague of WealthBridge Enterprises.
Mike has a philosophy when it comes to land. His philosophy is that you only buy from motivated sellers.
Now when he uses the word “motivated sellers,” he’s not talking about your average Carlton Sheets educated weekend real estate investor’s definition of a “motivated” seller…
Mike’s not looking to buy from land owners that want to sell. He’s looking to buy from land owners that HAVE to sell.
He’s looking for BIG developers in trouble.
And believe it or not, right now, there are a LOT of ‘em…
Land Investors Have a
HUGE Advantage Over Other Investors
So let me ask you a question…
If you could buy something for $9 KNOWING that you could turn around and sell it (if not immediately, within a relatively short period of time) for $100… would you consider that a good investment?
Well that’s what Mike does… over and over and over again.
He locks in his profit on the BUY.
And when he buys, he buys BIG. Which is another key to creating HUGE profits in land.
You buy the land, you split it into smaller parcels and you sell it.
Just like if you go to the grocery store. The store’s profit is bigger if they sell you ONE apple. Their profit per apple shrinks if they sell you a whole bushel.
In land, you BUY the bushel and sell it off, piece by piece.
If you can’t buy the bushel on your own (and most people can’t), then you join a group of investors and buy the bushel.
That’s what Mike McClaskey does. He locates the “bushels” for groups of investors to look at. WealthBridge Enterprises supplies the expertise to guide the investors through the process.
| If you’re curious just how good the deals are right now, let me invite you into the “back room” at WealthBridge Enterprises. Here’s a fact sheet from our due diligence on a deal we’re considering right now. Click the link to view the Fact Sheet: |
And that’s why our investors are happy. There’s no “buy and pray” strategy happening here. If there’s not a smoking deal on the BUY, then there’s no deal… period.
What Kind of An I.Q. Does It
Take to “Manage” Dirt?
So let’s go back to the example of stocks one more time. When you purchase stock in a company, you’re expecting someone to manage the value of your investment.
“Managing” your investment means a ton of different things. You could almost think of every decision that a business makes as an investment management decision. After all, every decision they make can influence the value of your investment… either directly or indirectly.
Let’s say you’re an investor in General Motors. Do you really think that having your CEO take a private jet to Washington is a good idea when money is tight?
Is that good management of YOUR investment?
I haven’t found anyone yet who would say so (except the CEO).
If you’re a land investor, there’s not much required by way of “management.” After all, most of the work has been done on the FRONT end, before you ever purchase the piece of property.
Of course, sometimes you get the land rezoned as a part of your exit strategy. Sometimes times you don’t. Many times the dirt just sits there waiting for you to make your move down the road.
As far as “management” goes, there’s not a whole lot. After all, it’s just DIRT. Not much to manage.
That means there are fewer things (read people) messing with the value of your investment.
I guarantee you the managers of an investment in dirt (like the experts that would manage a “bushel” of land on behalf of a group of investors) aren’t flying around the country in private jets at $20,000 a pop and sending the bill to their investors.
(We’ll talk about what it costs to manage a land investment in a
future issue of the Dirt Report.)
When you invest in land, you know your expenses UPFRONT.
This is pretty much “investing made EZ” for every Joe the Plumber out there.
Can You Become a Land Investor Just
Sitting on Your Couch?
With all of the turmoil in the markets and all of the uncertainty about how people (who actually want to retire someday) should protect their assets, I’ve decided to set aside a whole day or two for getting the right information out into the market.
I’m going to be hosting a multimedia Land Summit that’s going to help a whole lot of people.
But I’m not going to talk about what I THINK you’d like to know, I’m going to give you the answers to the EXACT questions you have about investing in vacant land… especially in this market.
The format will be a Question and Answer session. You supply the questions, I’ll supply the answers and any supporting content to make things crystal clear.
The fee is $47 and your questions are due by Wednesday December 3. That’s the Wednesday AFTER Thanksgiving.
Once you’ve signed up and sent your fee, you’ll get instructions on how to submit your questions (yes you can ask more than one).
Once all of the questions come in, I’ll create an audio that goes through each one and lays out the answer in simple english.
Everyone will get a copy of the audio including answers to every question that comes in.
Now I usually charge a lot more than $47 for consulting. After all, this info can make you a lot of money. But in this case, considering I can help thousands of investors at once, it’s a good deal for both sides. There’s leverage there.
And if you’ve been on the Dirt Report list for any length of time, you KNOW I love leverage…. smart leverage.
Here’s the page to reserve your spot:






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