Website Closers® presents an online Real Estate Investment Company (REIT) providing affordable land ownership to people across the US.
The company is managed by two industry professionals but can easily be trained for a smooth transition. The current owners want to make it clear that they will do whatever they need to do in order to ensure that this company continues to thrive after closing.
The business model is a high-profit, turn-key, land-flipping business. The team buys and sells high-value, rural vacant land without ever visiting the property or making any improvements. Properties are bought in cash for 25% of retail value, and profits are doubled by selling at 75% of retail value, still offering customers excellent value, but with massive upside by this firm. The difference between the contract with the seller and the buyer (spread) generates revenue.
The team focuses on high-profit land deals that can be simultaneously closed in cash for more than 100% return and a minimum of $20,000 net. Established nearly five years, the business has built a strong reputation with buyers and sellers and can be grown tremendously from where it is today.
An existing portfolio of contracts with property owners is on the market, ready to close, and will be included in the acquisition, setting a buyer up for immediate success. The instantaneous scalable system includes outsourced, trained professionals covering nearly every part of the business. Operations are entirely online and focus on finding deeply discounted land deals and selling for cash.
Management does not worry much about its rivals because the niche is largely non-competitive. They exclusively market “high value” rural vacant land whereas many competitors are focused on buying smaller, less valuable lots.
The acquisition process is driven by sending out offers via direct mail every week and giving property owners three weeks to reply. Both partners have dedicated sides of the business to handle daily operations. An executive assistant oversees outsourced talent, such as due diligence and marketing. Mailing lists are created approximately once a month and are automated to be sent every week. About 3,000 letters are dispatched weekly.
A trained, outsourced sales team handles incoming leads from property owners and potential buyers for properties listed on the market. The owners are notified of any hot leads that need to be called back. They have not used digital marketing to find sellers and advertise for buyers via MLS, Lands of America, Facebook, and Craigslist.
The management of properties is handled by a team dedicated to various tasks, such as running comparable sales analyses to review incoming leads, filing necessary documents with the county, creating marketing material, and updating property pricing.
Once a property is under contract, the company contacts the title company that handles the closing.
After due diligence is performed on a property, the team creates a listing and posts it on the MLS. Once a buyer makes an offer, a closing date is scheduled. They coordinate the closing through a reputable title company or real estate attorney, who disperses the funds.
The business has closed deals in eleven states. It focuses on areas where more properties have been sold than are for sale to determine high-demand areas.
The typical customers are divided into buyers and sellers. Sellers are typically motivated to sell because they no longer want the property for various reasons, including:
- Having owned it for many years and not using it anymore.
- An unwanted inheritance.
- They are tired of paying taxes.
On the other hand, buyers are motivated by receiving a great price. The land is typically listed for 75% of retail value for a quick sale.
Contractual terms are six months with property owners and possible extension as needed.
The two owners work only 20 hours weekly combined. Primary tasks include locating an area, pulling a list, sending mail, taking calls, negotiating contracts, and evaluating deals. From there, they manage the sale through due diligence, listing creation, marketing, funding, and closing.
One executive assistant works with management. This employee’s duties can easily be transferred to another assistant or the new business owner. The position could be made full-time to oversee and handle most day-to-day tasks.
Sales, customer service, due diligence, and marketing are all outsourced. A dedicated sales team has been trained to answer incoming property owners’ leads, and potential buyer leads for listed properties.
Once a property is under contract, another company performs due diligence and creates photos for the listing. The cost to list a property is meager, between $160 and $400 per listing. Another outsourced team creates the website listing and handles all marketing after that.
The owners are motivated to assist new ownership with continued growth and prosperity. They are open to various deal structures, including maintaining equity, coaching a buyer, or leaving entirely.
Although a background in real estate would be beneficial, these are skills which can be learned to run the business since it has been highly systemized, and each department has a solid team in place.
A buyer may want to learn the existing owners’ system for automating and outsourcing work to scale swiftly. They will invite the new owner into their land-flipping coaching program for six months to learn the system and get all active deals closed.
