Investing in Raw Land with 300% Returns with Mark Podolsky, Episode 74
Mark Podolsky was an investment banker back in 2000, analyzing income statements in search of the diamond in the rough. So, when a co-worker stated that he was getting a 300% ROI on land investing, he thought it was too good to be true. He took a road trip to the auction and used funds set aside for car repairs to buy his first land investment. 18 months later, he quit his investment banking job to focus on land investing full time. Since then, Mark has completed over 5000 deals and authored the book, Dirt Rich. Known as The Land Geek, Mark joined us on this episode to share key tips and insights about this less common niche in real estate – land investing. Mark talked about its advantages, risks, market, and how to get started (even without a capital).
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Key Market Insights
An investment banker back in 2000, where he met his mentor, a co-worker, who flipped land online
Bought first land investments in New Mexico in 2001
Auctioned land online, and wound up with 300% ROI
Became a full-time land investor after 18 months
End Buyers of Raw Land: doomsday preppers, military, people who don’t like people
Advantages of Land Investing: Higher Margin, Land Investing Contract, Legacy Investment, No Capital Required
Land Investing Contract – investor owns the property until all the promissory notes are paid
Current Land Investing Model: Look up comparable sales; send an actual offer based on lowest comp; double check the taxes; verify ownership
No. #1 Audience of Land Assets - Neighbors of the land, then land buyers list, craigslist, facebook and finally raw land websites
Hot Markets: Arizona, Nevada, New Mexico, Colorado, California, Oregon, Washington, and Florida – growing areas with an abundance of inexpensive, available raw lands
Land Investment Market vs. Housing Market
Risks Involved in Land Investing: Poor due diligence and overpaying
Characteristics of a Good County: A number of raw inexpensive land (at least 200 parcels), and about 2-3 hours from the nearest city
How to Get Started without a Capital: Lock up the property. Start mailing potential buyers. Do a dual close.
First Step to Land Investing: Find a good mentor
Bull’s Eye Round
Winning with Land Investing: Buy right. Find the lowest qualms, and divided it by 4.
Tracking Market Changes: Constantly looking at markets, research, and technology.
Daily Habit: Meditate.
Dirt Rich by Mark Podolsky
Essentialism by Greg McKeown
Blue Ocean’s Strategy & Blue Ocean’s Shift by W. Chan Kim & Renee Mauborgne
The One Thing by Gary W. Keller
“Land is the only thing that lasts.“
“Preppers, military and people who don’t like people, all love raw land.”
“40 acres is the size in most demand”
Places to Grab a Bite:
Connect with Mark