Planning, Procedure and Perseverance, Record it in Memory.
- “Yes, I want to sell my lot of land; and the truth is that I do not care what it costs to develop this batch to the one who buys it. ”.
This type of answer has been given to me several times and some owners who want to sell a plot of land have also given it to some of my students, without giving a damn what it would cost the investor to develop that plot of land, to find out if they add up the numbers.
The sad thing about this is that many owners think similarly and do not tell you. They forget that a business takes place when it is beneficial to both parties. Yes, this they also say they know, but they prove the opposite.
Land or lots of land, despite what some may say, is still an abundant and cheap commodity. A plot of land is of little use and has little value until the regulations arrive and say what can be built on top and what cannot.
However, having good regulations and good urban parameters is not enough to sell a plot of land quickly. Or even to sell it.
My friend John Al Hartman is a real estate agent who works in LA as a broker selling lots of land, among other real estate products. John told me a couple of days ago that in Mexico some landowners have it difficult to sell, the main reason being his approach to selling. I totally agree with John.
John works for an American real estate consultancy in Mexico City and he tells me that he sells an average of 1 lot of land every 3 months to national or international companies. What is his sales technique? Focus on what matters.
Sell a Lot of Land. What really matters.
When it comes to selling a plot of land, what matters are 2 factors:
1.- what does the customer who bought this land earn and
2.- the price of the land based on what is going to be invested in its development.
Answer these 2 factors and you will sell any lot of land in 3 - 5 months. Of course, if you know how to prepare the ground and you know where to go to find the client.
Do you think I make it a little easy? In just 3 - 5 months? That's how it is. Selling a lot of land is easy. The tricky thing is to establish this mentality for landowners who want to sell; because to get an answer to these 2 questions, you need to prepare the ground beforehand.
You need data and documentation, work and time. Time and money that few land owners are willing to invest, because this work of data collection, creation of a dossier and contact with clients, must be paid in advance and not as part of the broker's fees when the lot is sold of land.
Real estate agents who are experts in the sale of lots of land, will charge you a fee for preparing the Information Dossier of that land, (which takes time, effort and sometimes money), and then they will charge you a percentage for the sale.
Those who are not experts will obviously charge you based on the sale, because they will not prepare a prior informative dossier; just a compilation of terrain data that some of them call a “dossier”.
Al Hartman before putting a lot of land for sale gathers all the documentation of the lot of land, makes an appraisal or appraisal of the land using a land appraisal software, (price $ 135), and knowing what can be built on that land, calculates the profitability for the buyer.
What can be built 20 apartments and several premises? Well, John calculates the cost of the construction of those departments and premises, more licenses, more cost of the land, plus other expenses and he subtracts it from the final price that these apartments and premises could have on the market within 2 years, when they go to be finished. Thus he obtains the return on investment for the buyer.
Next, search in the banking entities, (not only Mexican), the terms and conditions of the mortgage loans for the purchase of that lot of land or speak with the owner so that he accepts an initial amount, (generally 50% of the value of the ground), and the rest to 1 or 2 years with an increase for late payment.
If the lot of land is large or the property needs a lot of investment for its development, he tries to convince the owner to enter into a partnership with the investor (s) and earn more in the long run, contributing part of his lot to the new company.
| Selling a Lot of Land: How to Get Customers.
Does it seem difficult to get clients who have the capital to invest in lots of land? It is not. John prepares each piece of land that he acquires in less than 1 month and it takes an average of 3 months to find a buyer.
Selling a lot of land is easy. The tricky thing is to establish this mentality for landowners who want to sell; because to get an answer to these 2 questions, you need to prepare the ground beforehand.
You need data and documentation, work and time. Time and money that few land owners are willing to invest, because this work of data collection, creation of a dossier and contact with clients, must be paid in advance and not as part of the broker's fees when the lot is sold of land.
Real estate agents who are experts in the sale of lots of land, will charge you a fee for preparing the Information Dossier of that land, (which takes time, effort and sometimes money), and then they will charge you a percentage for the sale.
Those who are not experts will obviously charge you based on the sale, because they will not prepare a prior informative dossier; just a compilation of terrain data that some of them call a “dossier”.
Al Hartman before putting a lot of land for sale gathers all the documentation of the lot of land, makes an appraisal or appraisal of the land using a land appraisal software, (price $ 135), and knowing what can be built on that land, calculates the profitability for the buyer.
What can be built 20 apartments and several premises? Well, John calculates the cost of the construction of those departments and premises, more licenses, more cost of the land, plus other expenses and he subtracts it from the final price that these apartments and premises could have on the market within 2 years, when they go to be finished. Thus he obtains the return on investment for the buyer.
Next, search in the banking entities, (not only Mexican), the terms and conditions of the mortgage loans for the purchase of that lot of land or speak with the owner so that he accepts an initial amount, (generally 50% of the value of the ground), and the rest to 1 or 2 years with an increase for late payment.
If the lot of land is large or the property needs a lot of investment for its development, he tries to convince the owner to enter into a partnership with the investor (s) and earn more in the long run, contributing part of his lot to the new company.
| Selling a Lot of Land: How to Get Customers.
Does it seem difficult to get clients who have the capital to invest in lots of land? It is not. John prepares each piece of land that he acquires in less than 1 month and it takes an average of 3 months to find a buyer. Selling a plot of land is not complicated; you just have to work and follow a protocol.
How does John get clients? Through specialized international real estate portals; through Linkedin, through Google, using a database of about 6,000 international brokers and with contacts within the country.
How much does John invest in publicad per month to sell a plot of land? Between $ 300 and $ 600 per month. John' fees are 3% -4% for the sale of the plot of land.
John invests at least 3 days a week in pure marketing and sales tasks, designing new online campaigns or checking and improving the campaigns he currently has in circulation.
With a couple of years of experience, John already knows that he must follow a protocol to sell any piece of land. This is:
1.- Capture lots of land that are not conflictive and that the owner is consistent.
2.- Prepare that lot of land for sale, checking all the physical and legal characteristics.
3.- Look for financing possibilities for the purchase of that lot of land.
4.- Prepare a profitability analysis of the plot of land.
5.- Prepare the advertising campaign in the media.
6.- Prepare contacts with national and international brokers.
7.- Prepare the negotiation.
All of the above is covered by John in about 3-4 months; 1 for preparation and 3 for sale. Of course, sometimes it takes more than 3 months, but never less than 6 months.
This is the protocol that works for John to sell a plot of land. The same protocol used by us and some of my students who have specialized in the sale of lots of land.
If you were looking for an already proven method to sell a plot of land, I hope that John' way of acting will serve as an example for you.Planning, Procedure and Perseverance, Record it in Memory.
- “Yes, I want to sell my lot of land; and the truth is that I do not care what it costs to develop this batch to the one who buys it. ”.
This type of answer has been given to me several times and some owners who want to sell a plot of land have also given it to some of my students, without giving a damn what it would cost the investor to develop that plot of land, to find out if they add up the numbers.
The sad thing about this is that many owners think similarly and do not tell you. They forget that a business takes place when it is beneficial to both parties. Yes, this they also say they know, but they prove the opposite.
Land or lots of land, despite what some may say, is still an abundant and cheap commodity. A plot of land is of little use and has little value until the regulations arrive and say what can be built on top and what cannot.
However, having good regulations and good urban parameters is not enough to sell a plot of land quickly. Or even to sell it.
My friend Andrés Ceballos is a real estate agent who works in Mexico as a broker selling lots of land, among other real estate products. Andrés told me a couple of days ago that in Mexico some landowners have it difficult to sell, the main reason being his approach to selling. I totally agree with Andrés.
Andrés works for an American real estate consultancy in Mexico City and he tells me that he sells an average of 1 lot of land every 3 months to national or international companies. What is his sales technique? Focus on what matters.
Sell a Lot of Land. What really matters.
When it comes to selling a plot of land, what matters are 2 factors:
1.- what does the customer who bought this land earn and
2.- the price of the land based on what is going to be invested in its development.
Answer these 2 factors and you will sell any lot of land in 3 - 5 months. Of course, if you know how to prepare the ground and you know where to go to find the client.
Do you think I make it a little easy? In just 3 - 5 months? That's how it is. Selling a lot of land is easy. The tricky thing is to establish this mentality for landowners who want to sell; because to get an answer to these 2 questions, you need to prepare the ground beforehand.
You need data and documentation, work and time. Time and money that few land owners are willing to invest, because this work of data collection, creation of a dossier and contact with clients, must be paid in advance and not as part of the broker's fees when the lot is sold of land.
Real estate agents who are experts in the sale of lots of land, will charge you a fee for preparing the Information Dossier of that land, (which takes time, effort and sometimes money), and then they will charge you a percentage for the sale.
Those who are not experts will obviously charge you based on the sale, because they will not prepare a prior informative dossier; just a compilation of terrain data that some of them call a “dossier”.
Andrés Ceballos before putting a lot of land for sale gathers all the documentation of the lot of land, makes an appraisal or appraisal of the land using a land appraisal software, (price $ 135), and knowing what can be built on that land, calculates the profitability for the buyer.
What can be built 20 apartments and several premises? Well, Andrés calculates the cost of the construction of those departments and premises, more licenses, more cost of the land, plus other expenses and he subtracts it from the final price that these apartments and premises could have on the market within 2 years, when they go to be finished. Thus he obtains the return on investment for the buyer.
Next, search in the banking entities, (not only Mexican), the terms and conditions of the mortgage loans for the purchase of that lot of land or speak with the owner so that he accepts an initial amount, (generally 50% of the value of the ground), and the rest to 1 or 2 years with an increase for late payment.
If the lot of land is large or the property needs a lot of investment for its development, he tries to convince the owner to enter into a partnership with the investor (s) and earn more in the long run, contributing part of his lot to the new company.
| Selling a Lot of Land: How to Get Customers.
Does it seem difficult to get clients who have the capital to invest in lots of land? It is not. Andrés prepares each piece of land that he acquires in less than 1 month and it takes an average of 3 months to find a buyer.
Selling a lot of land is easy. The tricky thing is to establish this mentality for landowners who want to sell; because to get an answer to these 2 questions, you need to prepare the ground beforehand.
You need data and documentation, work and time. Time and money that few land owners are willing to invest, because this work of data collection, creation of a dossier and contact with clients, must be paid in advance and not as part of the broker's fees when the lot is sold of land.
Real estate agents who are experts in the sale of lots of land, will charge you a fee for preparing the Information Dossier of that land, (which takes time, effort and sometimes money), and then they will charge you a percentage for the sale.
Those who are not experts will obviously charge you based on the sale, because they will not prepare a prior informative dossier; just a compilation of terrain data that some of them call a “dossier”.
Andrés Ceballos before putting a lot of land for sale gathers all the documentation of the lot of land, makes an appraisal or appraisal of the land using a land appraisal software, (price $ 135), and knowing what can be built on that land, calculates the profitability for the buyer.
What can be built 20 apartments and several premises? Well, Andrés calculates the cost of the construction of those departments and premises, more licenses, more cost of the land, plus other expenses and he subtracts it from the final price that these apartments and premises could have on the market within 2 years, when they go to be finished. Thus he obtains the return on investment for the buyer.
Next, search in the banking entities, (not only Mexican), the terms and conditions of the mortgage loans for the purchase of that lot of land or speak with the owner so that he accepts an initial amount, (generally 50% of the value of the ground), and the rest to 1 or 2 years with an increase for late payment.
If the lot of land is large or the property needs a lot of investment for its development, he tries to convince the owner to enter into a partnership with the investor (s) and earn more in the long run, contributing part of his lot to the new company.
| Selling a Lot of Land: How to Get Customers.
Does it seem difficult to get clients who have the capital to invest in lots of land? It is not. Andrés prepares each piece of land that he acquires in less than 1 month and it takes an average of 3 months to find a buyer. Selling a plot of land is not complicated; you just have to work and follow a protocol.
How does Andrés get clients? Through specialized international real estate portals; through Linkedin, through Google, using a database of about 6,000 international brokers and with contacts within the country.
How much does Andrés invest in publicad per month to sell a plot of land? Between $ 300 and $ 600 per month. Andrés' fees are 3% -4% for the sale of the plot of land.
Andrés invests at least 3 days a week in pure marketing and sales tasks, designing new online campaigns or checking and improving the campaigns he currently has in circulation.
With a couple of years of experience, Andrés already knows that he must follow a protocol to sell any piece of land. This is:
1.- Capture lots of land that are not conflictive and that the owner is consistent.
2.- Prepare that lot of land for sale, checking all the physical and legal characteristics.
3.- Look for financing possibilities for the purchase of that lot of land.
4.- Prepare a profitability analysis of the plot of land.
5.- Prepare the advertising campaign in the media.
6.- Prepare contacts with national and international brokers.
7.- Prepare the negotiation.
All of the above is covered by Andrés in about 3-4 months; 1 for preparation and 3 for sale. Of course, sometimes it takes more than 3 months, but never less than 6 months.
This is the protocol that works for Andrés to sell a plot of land. The same protocol used by us and some of my students who have specialized in the sale of lots of land.
If you were looking for an already proven method to sell a plot of land, I hope that Andrés' way of acting will serve as an example for you.
