Plenty of real estate agents earn passive income by renting out investment properties, but did you know that there’s a way to generate passive earnings without the hassle of renters?
- County research is a crucial part of the process for purchasing land. Look for vacant properties with delinquent taxes as they’re easier to buy at a low price.
- Always offer less than the land is worth. If you don’t buy your properties at a discounted price, you’ll never be able to turn a profit.
- Emphasize seller financing while marketing. This is the key to generating passive income via land resale and will broaden your buyer pool.
That’s right — it’s possible to collect a check every month with a different type of real estate investment strategy.
Mark Podolsky, a professional land investor with more than a decade of experience, sat down with Pat Hiban to explain how it works.
Essentially, Podolsky’s strategy is a unique take on land resale. Instead of buying land and reselling it to someone who has the ability to purchase it outright, Podolsky resells his properties to people who need seller financing.
Not only does this increase his pool of potential buyers, but it also allows him to generate passive earnings every month.
Read about his three-step process, and consider giving it a shot. To learn about his system in more detail, listen to the complete podcast interview below.
What you need to earn passive income reselling land
Getting started with Podolsky’s strategy is easy, and barriers to entry are basically nonexistent.
Because 90 percent of Podolsky’s process is automated with software, you can implement Podolsky’s system effectively as long as you have access to the internet and a few free hours every week.
If you leverage your time and resources well, you can accomplish quite a lot.
Last year, Podolsky closed 192 deals working an average of two hours per week.
Earn passive income reselling land in 3 steps
Ready to give Podolsky’s land-resale strategy a shot? It’s really not so different from a strategy for earning income with rental property.
Here’s the step-by-step system Podolsky has perfected and proven over the course of more than a decade:
- Perform county research: The first step in Podolsky’s system is crucial for turning a profit. You want to ensure you purchase land at a discounted rate in an area where you’ll have a pool of potential buyers. The easiest way to do this is to go to the county treasurer and get a list of properties with delinquent taxes. Scrub this list to remove industrial properties, commercial properties and properties with homes.
- Come up with offers: Now that you have some potential properties in front of you, it’s time to come up with offers that are low enough to turn a profit but high enough to get accepted. You can do this most effectively by looking at comps. Once you’ve determined the value of a potential purchase, make your offer. Podolsky has found that offering 23 cents on the dollar tends to work best.
- Market your property: When one of your offers gets accepted, it’s time to start marketing it to potential buyers. Start by marketing the property to neighbors. If they aren’t interested, market it via Craigslist, Facebook sale groups or one of the other sites Podolsky discussed during the interview. Remember: Emphasize seller financing while marketing to broaden your buyer pool, and increase your chances of closing quickly.
Don’t miss the details Podolsky shared during his discussion with Hiban. If you want to learn more about ways to streamline the land-resale process to earn passive income, listen to the complete podcast interview with Mark Podolsky.
Pat Hiban is the author of NYT best selling book “6 steps to 7 figures – A Real Estate Professional’s Guide to Building Wealth and Creating Your Destiny”, the founder of online real estate sales training site Rebus University and the host of Pat Hiban Interviews Real Estate Rockstars an Agent to Agent Real Estate Radio Podcast with Hiban Digital in Baltimore, Maryland. Follow him on Instagram or Twitter.