Uncover the fascinating world of land investing with Mark Podolsky, also known as the “Land Geek,” in a captivating interview on the Raising Private Money podcast!
Mark’s incredible journey from leaving his job as an investment banker to becoming a successful land investor is truly inspiring. Here are some highlights from the episode:
- Mark’s unique strategy of flipping land without physically visiting the properties, leveraging locals for tasks like property inspection and documentation.
- His approach to targeting financially distressed landowners and offering attractive financing terms to buyers to generate passive income from monthly payments.
- The minimal competition in land investing compared to other real estate niches, makes it an attractive and lucrative business model.
- Mark’s emphasis on the importance of automation and efficient business practices to streamline operations and maximize returns.
If you are interested in learning more about land investing and Mark Podolsky’s incredible success story, make sure to tune in to the episode.
Get valuable insights into unlocking the potential of land investments and building long-term wealth!
Timestamps:
0:01 – Raising Private Money Without Asking For It
2:43 – Mark Podolsky, a.k.a. the LandGeek
6:14 – Jay Conner’s Free Money Guide: https://www.JayConner.com/MoneyGuide
6:52 – Can You Be Dirt Reach With Land Investing?
14:28 – Connect with Mark Podolsky: https://www.TheLandGeek.com
15:29 – Land Flipping: It’s A Simple Model But Not Easy
19:20 – The Thing with Franchise Business
21:24 – Potential Motivated Sellers In Land Investing Business
24:58 – Note Payment Of $100 For $1,000 Investment
26:36 – What Is Land Arbitrage?
29:21 – If You’ll Do The Next 3 to 5 Years What Othe People Won’t Do, You’ll Be Able To Do For The Rest Of Your Life What Other People Can’t Do – Zig Ziglar
Connect With Jay Conner:
Private Money Academy Conference:
https://www.JaysLiveEvent.com
Free Report:
https://www.jayconner.com/MoneyReport
Join the Private Money Academy:
https://www.JayConner.com/trial/
Have you read Jay’s new book: Where to Get The Money Now?
It is available FREE (all you pay is the shipping and handling) at https://www.JayConner.com/Book
What is Private Money? Real Estate Investing with Jay Conner
http://www.JayConner.com/MoneyPodcast
Jay Conner is a proven real estate investment leader. Without using his own money or credit, Jay maximizes creative methods to buy and sell properties with profits averaging $67,000 per deal.
#RealEstate #PrivateMoney #FlipYourHouse #RealEstateInvestor
YouTube Channel:
https://www.youtube.com/c/RealEstateInvestingWithJayConner
Apple Podcast:
https://podcasts.apple.com/us/podcast/private-money-academy-real-estate-investing-with-jay/id1377723034
Facebook:
https://www.facebook.com/jay.conner.marketing
Twitter:
https://twitter.com/JayConner01
Pinterest:
https://www.pinterest.com/JConner_PrivateMoneyAuthority
Building Wealth with Raw Land: Expert Insights from Mark Podolsky
Jay Conner [00:00:01]:
Welcome to another amazing episode of Raising Private Money. I’m Jay Conner, your host, also known as the Private Money Authority. And this is where we talk about raising Private Money for your real estate bills without asking for any money. Well, today I’ve got an amazing guest and friend to join me here on the show. And here’s how he got started. With only $3,000 in his pocket, and with gut-wrenching, horrible fear, And absolutely no real estate experience, he bought his very first few parcels of land, of raw land, all the way back in 2001. Well now, fast forward to today, he’s the author of the book, DIRT RICH, which is the ultimate guide to helping you build a passive income. He’s also the owner of Frontier Properties, which is a very reputable and successful land-investing company.
Jay Conner [00:01:01]:
And in addition to that, he’s been buying and selling land full-time back since 2001. Now he’s completed, listen to this, over 5,500 land deals with an average return on investment of over 300% on the cash flips. And then in addition to that, he has gotten a return on investment of over 1000% on the deals that he sells with financing terms. Now, before his land investing success, you might be able to relate to what he was going through. He was in this high stress, caught in a box in the corporate prison, and could not get out. He felt trapped because his income stopped as soon as he stopped working. Well, even though my guest invests a lot of his time in helping other people like you learn how to do what he does, He’s very actively involved today in running his land investing business, and he’s dedicated to teaching the most current and relevant real-world landing vesting methods to his students. In just a moment, you’re gonna meet my very, very special guest, mister Mark Podolsky, right after this.
Narrator [00:02:13]:
If you’re a real estate investor and are wondering how to raise and leverage Private Money to make more profit on every deal, Then you’re in the right place. On raising Private Money, we’ll speak with new and seasoned investors to dissect their deals and extract the best tips and strategies to help you get the money because the money comes first. Now here’s your host, Jay Conner.
Jay Conner [00:02:41]:
Well, Mark, welcome to the show, my friend.
Mark Podolsky [00:02:46]:
Jay Conner, It is a true pleasure, brother. Thank
Jay Conner [00:02:51]:
you. Well, you are certainly welcome, Mark. And my lands 5,500, land flips. I mean, what a track record you have got going on. I want everybody to know upfront that you are known as the land geek. So if somebody’s interested in learning how to get this Amazing passive income. Listen, you are in the right place. But, Mark, this is the Raising Private Money podcast show.
Jay Conner [00:03:21]:
So I want us to start first of all and talking a little bit about Private Money, as I said when I started, this is the place where we talk about raising Private Money for our real estate deals without asking for money. And what in the world do I mean by that? You know, the old traditional way of getting money for your deals is you go to the local bank or the institutional commercial lender. You get on your hands and knees, and you put your hands underneath your chin, and you say, please fund my deal. Because, you know, the traditional way of borrowing money for real estate deals is the lender makes the rules. Well, not in this world. In this world of raising Private Money, we’re not relying on institutional lenders. We’re not relying on banks. We’re not relying on hard money lenders.
Jay Conner [00:04:07]:
What are we doing? We’re putting on our teacher hat, our Private Money teacher hat, and we’re teaching people who have never even heard of Private Money and lending and self-directed IRAs. And so as a result, the money starts chasing us for our real estate deals. I’ve got 47 Private lenders right now funding our deals, and not one of them had ever heard about Private Money before I put on my teacher hat. So anyway, I just want to be clear for our listeners, viewers, our audience here, that that’s what we’re talking about here on the show. Private Money Without Asking For Money. So in your area of expertise, Mark, I know you do a lot of terms. A lot of terms, a lot of creative financing. We’re going to dive into that.
Jay Conner [00:04:51]:
But when people do the land business the way you do it. And by the way, before I ask you the question, I’ve got another first question. When someone is starting to learn how to do the land business as you do it, Do they have to have a big bankroll of money and cash to get started in this kind of business?
Mark Podolsky [00:05:11]:
They don’t need it. But, Man, would it be nice to have. So if you have other people’s money, you have a huge advantage. Because when you’re first starting, you’re limited then. Let’s say, we we recommend, you know, You’re gonna get traction if you can buy 5 to 7 deals. Well, depending on your budget, you’re then limited to what markets You can even go after. So if you have access to someone else’s money, you have access to Private Money, You’re already way ahead. You’ve got you’re you’re yourself a blue ocean as far as there’s no competition for you, Because you can go, and there are great deals out there, and you’re not limited by it. And so you can go into the market with a lot more confidence than someone new that says, okay. I’ve gotta go into this rural area here because I only have, you know, like me, $3,000 to start or $5,000 to start.
Jay Conner [00:06:13]:
Right. Right. Well, let’s join forces then, Mark, and give the audience everything they need. You know, I say it all the time. The money comes first if you don’t want to be limited. So listen, if you’re watching or viewing or listening to this show right now, You can download it for free, my ebook, which is called 7 Reasons Why Private Money Will Skyrocket Your Real Estate Business. You can download that for free at jconnor.com, and that’s with an er, not an or. Jconnor.com, forward slash moneyguide.
Jay Conner [00:06:49]:
That’ll get you started on the Private Money. Now let’s come right on over to your expertise specifically, Mark, and that is the land. So I want to hear the beginning of your story. How did this journey start? How and why?
Mark Podolsky [00:07:05]:
So it’s 2,000. I’m a miserable micromanaged 45-minute commute to work and back investment banker, specializing in mergers and acquisitions with private equity groups. And, Jay, it got so bad for me. I wouldn’t get the Sunday blues anticipating Monday coming around. I get the Friday blues anticipating the weekend going by fast, And having that be back at work on Monday. So my firm hires this guy. He’s telling me that as a side hustle, he’s buying up raw land pennies on the dollar at tax deed auctions. He’s flipping them online, and he’s making a 300% return on his investment.
Mark Podolsky [00:07:43]:
Well, Jay, I’m looking at companies all day long, and a great company, great, Has 15% EBITDA margins or free cash flow. The average company is 10%. I’m looking at companies all day long less than 10%, So, of course, I don’t believe them. So I go to New Mexico with them. I got $3, saved up for car repairs. Jay, I wish I knew you then because I didn’t realize I could use other people’s money, so I’m using my own money, and I do exactly what he tells me to do. I buy ten Half-acre parcels, an average price of $300 each. I flipped them online, and they all sell for an average price of $1200 each.
Mark Podolsky [00:08:18]:
300% it worked. So I took all that money. I went to another auction where I live in Arizona. Again, it’s 2,000. There’s no one in the room. I’m buying lots and acreage for nothing. I sell all that land, and I make over $90,000 cash. So I go to my wife.
Mark Podolsky [00:08:32]:
She’s pregnant at the time. I said, Honey, I’m gonna quit my job and become a full-time land investor. And she said, absolutely not. So I said, okay. Okay. Okay. So it took 18 months, for the land investing income to exceed the investment banking income, and then I quit. I’ve been doing it full-time ever since.
Mark Podolsky [00:08:49]:
I’m now over 6,000 transactions and love it.
Jay Conner [00:08:55]:
That is amazing. So can you do this part of the real estate investing business in front of your computer, and you don’t have to, like, go out and travel and see the land that that you’re flipping?
Mark Podolsky [00:09:08]:
You know, unless I’m doing, like, a $1,000,000 deal, I don’t go out and look at the property. So we can outsource that To someone local, give them our property report, and tell them to shoot pictures and video. Let us know what the roads are like, and how far from services, and get a great idea of the property. What are the neighbors doing? Hopefully, the neighbors aren’t dumping anything on their properties. And so we have them fill out this big property checklist. It might take, you know, a couple of hours and might cost us $50.
Jay Conner [00:09:43]:
That’s amazing. So how are you finding these properties?
Mark Podolsky [00:09:49]:
So if I could, let me just walk you step by step through the model. So, Jay, where where do you live?
Jay Conner [00:09:57]:
I’m in eastern North Carolina in this little teeny tiny town called Moorhead City, North Carolina, population of 8,000. Our entire target market I flip houses. You’re flipping land. But our entire target market is only 40,000 people. So we’re in we’re actually in a resort area because we’re here at the beach, but it’s small.
Mark Podolsky [00:10:19]:
Okay. Great. Great. So I’m gonna assume that you own 5 acres of raw land where I live in Arizona, and you owe $200 in back taxes. So you’re advertising 2 important things. I mean, number 1, you have no emotional attachment to that raw land. You’re in North Carolina and the property’s in Arizona. And number 2, you’re financially distressed in some weird way because we don’t pay for things like our property taxes.
Mark Podolsky [00:10:42]:
We don’t value them in the same way. As a result, the county treasurer keeps sending a notice saying, Jay, if you don’t pay your property taxes, you’re gonna lose that property to a tax deed or tax lien investor. So all I’m gonna do is look at the comparable sales in your 5-acre parcel for the last 12 to 18 months. I’m gonna take the lowest comparable sale. Let’s say it’s $10,000, and we divide by 4. And that’s gonna get me what Warren Buffet would call a 300% margin of safety. So I’m gonna send you an actual offer of $25100 for your 5-acre parcel. Well, you accept it.
Mark Podolsky [00:11:17]:
Why? Because for you, $25100 is better than nothing. In reality, 3 to 5% of people are gonna accept my quote, unquote Top dollar offer. But now that you’ve accepted it, I have to go through due diligence or in-depth research. I have to confirm you still own the property. I have to confirm back taxes are only $200. I have to make sure there’s been no breaks in the chain of title, no liens or encumbrances. And because this property is so inexpensive, only $25100, I’ll outsource it to my team in Jamaica that’s connected to an American title company. It costs about $11.
Mark Podolsky [00:11:51]:
If it was more than $5,000, I wouldn’t take any title risk. You know, I was closed traditionally through a title company. But in this case, $25100. I’m gonna send you a check for $23100. I’m gonna pay the county treasurer $200. I own it free and clear. And now, Jay, I’m gonna sell your property. In 30 days or less, I will make a cash flow like a rental home.
Mark Podolsky [00:12:12]:
So I have a built-in Best Buyer. Do you know who it is?
Jay Conner [00:12:15]:
Do not know.
Mark Podolsky [00:12:17]:
It’s the neighbors. The neighbors. So I’m gonna send out those neighbor letters saying, hey, Here’s your opportunity. Protect your privacy, protect your views, and know your neighbor. So oftentimes, the neighbors will buy. Now if they pass, I’ll go to my buyers list. The buyer’s list passes. I’ll go to a website you may have heard of.
Mark Podolsky [00:12:35]:
It’s called Craigslist. It’s the 15th most trafficked website in the United States. I’ll go to what I know you’ve heard of called Meta, We’re Facebook buy-sell groups in the marketplace, and then I’ll go to lands. I’ll go to land.com, landmotor.com, lands of america.com, land and farm.com, landflip.com, landhub.com, and landcentury.com. These are platforms where people buy and sell raw land. But the secret of how I do it so quickly is I just make it irresistible. So all I’m gonna ask for is a $25100 down payment For someone else to control that 5-acre parcel that you used to own, and then I’m gonna need my car payment.
Jay Conner [00:13:12]:
Cash back.
Mark Podolsky [00:13:13]:
I just got my cash back. And now I’m gonna get a car payment. Let’s say 1.97 a month and 9% interest for the next 84 months. So it’s a one-time sale. I’m gonna get my money out on the down payment. I could go 6 to 10 months out, and then I’m gonna get 1.97 a month of passive income. Jay, no renters, No rehabs, no renovations, no rodents, and because I’m not dealing with a tenant, I’m exempt from Dodd-Frank, RESPA, and the SAFE Act, all this onerous real estate legislation. So none is a simple game.
Mark Podolsky [00:13:45]:
Can we create enough land notes Where our passive income exceeds our fixed expenses, and then we’re working because we want to, not because we have to? And then you add fuel to the fire, I can keep all that passive income because I’m using Jay’s money. I’m using Private Money to fund my deals. I’m becoming financially free very quickly, which allows us to move up into Maslow’s hierarchy of needs And self-actualization and solve not just our money problems, but our time problems and have the time, and the resources To figure out what we want to do in life?
Jay Conner [00:14:26]:
I love it. I love it. You know, Mark, just to make sure that anyone Anyone that’s got to jump off of the show early before we finish, I want the go ahead and put up and out how people to get in contact with you to learn how you do about the how you do this business. So what’s the best way for them to reach out to you? I think you’ve got a free book to give them.
Mark Podolsky [00:14:45]:
I think a free book is the best way to start and see if the business resonates with you. You can go from there. So if they just go to, www.thelandgeek.com They can get dirt rich for free. Now, look, you gotta pay for shipping. But That’s it’s a great way to start.
Jay Conner [00:15:05]:
Yes. So that is so if you are remotely already intrigued and interested, and learning about how Mark has put this model together. That’s www.thelandgeek.com. And of course, we’ll have that in the show notes as well. So my next question or my question that came to mind while you were giving the overview of the business model. If this is so easy to do, How competitive is this asset class? How hard, you know, how hard is it to, like, you know, these other landowners are going to be getting, You know, direct mail offers in in in the mail as well.
Mark Podolsky [00:15:55]:
Yeah. That’s a great question. So I make it sound Easy. It’s not easy. And Jay, I’d argue anything worth doing isn’t easy. It’s a simple model, but it’s not easy. So if someone’s listening to this, think, oh, this is gonna be get rich quick. This is get wealthy slow model.
Mark Podolsky [00:16:16]:
That being said, let’s talk about the competition. So, Jay, if you and I went to a REIA meeting, Real estate investor associations meeting 100 people in that room. 99 of them are gonna be house flippers, landlords, and wholesalers. You and I will be the only land guy because you couldn’t think of a more boring real estate niche. You’re not gonna go on HGTV with a DIY network and see Flip This Land. The before pictures, raw land. The after pictures, raw land. So there are billions of acres of land available just in this country.
Mark Podolsky [00:16:48]:
You, me, a 1000000 people could be in this niche. We’ll all run out of money before we run out of deal flow unless they’re using your Private Money. But even still even still, it’s it’s a massive market. There’s hardly anyone doing it, and it’s boring.
Jay Conner [00:17:07]:
In other words, it’s not very sexy, but it sure makes the wealth take place over a little bit of time. I mean, I heard you say in your, the beginning of your journey story, that it only took why did I hear you say 18 months to replace Your In
Mark Podolsky [00:17:23]:
18 months.
Jay Conner [00:17:24]:
Investment banker income or whatever it was you were doing?
Mark Podolsky [00:17:27]:
Yeah. Absolutely. Absolutely.
Jay Conner [00:17:30]:
Well, you know, I don’t know many real estate investors doing any kind of asset class, whether it’s single-family, commercial, whatever, to where they’re they’ve been able to replace their income in 18 months. I mean, I’ve got some, mastermind members in my group that have done it in 6 months. They’ve done it in 9 months, but your average real estate investor that’s out there starting, is not gonna have their income replaced in in 18 months, I don’t believe.
Mark Podolsky [00:17:59]:
No. I agree. And the reason I was able to do it so quickly was number 1, I was one of the first people doing it. Right? And so your number 2, you’ve got an inefficient market. So it’s not like you can go on Zillow and see what the property or the land is worth, which is why we have these crazy margins, 300 to 1000%. So all we’re doing is taking what was once an asset to somebody, And there’s now a liability in making it an asset again for somebody else. So, you know, it’s kind of a just a really interesting mention that in that sense. But to replace your income, And let’s say we, you know, let’s say you wanna make 10,000 a month in passive income.
Mark Podolsky [00:18:51]:
Right? You wanna replace your two jobs. So, Jay, the way the numbers work out is you need to invest $100,000 into raw land, and that will throw off In, say, 12 to 36 months, depending on if you’re doing this full time, you’re doing it part-time, you know, your learning curve and that’ll throw off 10,000 a month in passive income. If you want 20,000 a month passive income, you’re gonna have to invest 200,000, and so on.
Jay Conner [00:19:21]:
Well, let’s compare that to another business model. I’m thinking about franchises, You know, the subways, the Quiznos, the, you know, on and on and on and on and on. Well, I know people who have bought franchises. They are they’re in that they’re in the corporate Prison, they just happened to own the franchise. They’re working crazy 60, 70 hours a week, and they might be earning $50 a month after 2 or I mean, $50 a year after they’ve been in there for 2 or 3 years. You just said to invest $100,000, not a franchise fee, but $100,000 over some time. That could be Private Money like we talked about. It could be your own money, and you’ve created these notes.
Jay Conner [00:20:12]:
Well, you know, you can’t even get a college degree in 18 36 months. And for goodness’ sake, compare what you’re talking about to a college degree. How much does a college degree cost these days? And what kind of return will you get when you graduate? 0.
Mark Podolsky [00:20:32]:
Yeah. No. Absolutely.
Jay Conner [00:20:34]:
I mean, chewed up. We’ve got a good friend that, went to law school not long ago, and it took him a year to find a job. In Raleigh, North Carolina. So now as you were like going through the business model And you were doing a scenario and you hypothetically gave the example of, Okay, here I am, Jay Conner. I’m living in North Carolina, And I own a parcel of land, you know, way out there. My granddaddy would call it hull-up scallop out there in Arizona or wherever. You explained in the example that I was I was behind on taxes. It’s raw land.
Jay Conner [00:21:16]:
I’m not at you know, I haven’t paid my taxes. I’m probably in somewhat of financial distress. So given that, would you say one of your best criteria for the list of potential sellers is out of state, I was gonna say absentee owners. All raw land is absentee. You can’t live there. Do you see where my head is? There’s no such thing as an absentee owner. They’re all absent if it’s raw land. But out-of-state owners that are behind on taxes, or is that just one little slice of potentially motivated sellers?
Mark Podolsky [00:21:53]:
I think that’s your lowest-hanging fruit. But once you’ve established this is a strong market, Then I’m I’ll send an offer to everybody whether they are current on taxes or not. But when I’m first looking at an area or looking at a market, I might test it with the lowest-hanging fruit first, and then go up from there.
Jay Conner [00:22:16]:
Okay. Now let’s drill down on your, on your business model that you went over. The scenario that you gave was you said, let’s assume that the value is based on other parcels around in that area, in the house flipping business, we would call it, based on the comps. I guess you’d call them comps. So based on the the comps in the area or the valuations, that it was worth, say, $10,000. So then you said to make your offer, that you’re gonna mail them in the mail. The United States post office is still open.
Jay Conner [00:22:52]:
So you’re going to mail them an offer of $2,500. They accept your offer, let’s assume. So you’re going to pay them $25100. So now you own it. So now you’re gonna turn around and offer that land that once you’ve done your due diligence and you’ve closed do you take title to it?
Mark Podolsky [00:23:13]:
Absolutely. It’s in my name. Oh, yeah. Because when I sell it on owner financing, I don’t want any cost for closure. So I’m gonna sell it on a land contract, not a deed of trust. So that land stays in my company’s name until they pay off that promissory note. And if they default, I keep the down payment, I keep the monthly payments, lower my cost basis, and I do it again. I get a new down payment, and I get a new monthly payment.
Mark Podolsky [00:23:39]:
So we sell. We don’t use even credit checks.
Jay Conner [00:23:42]:
Right. Well, in other words, I guess it doesn’t matter if they do default if you get your money back.
Mark Podolsky [00:23:51]:
No. And we’re using software to manage it. So I’ll use a software called GeekPay. Io. It’s a set-and-forget Payment system. I get my down payment via credit card, but I get those monthly payments via ACH. That way, I’m not Having to pay 2.9% to the merchant. Mhmm.
Mark Podolsky [00:24:09]:
And then if it bounces, no problem. It does all the accounting for us. It does all the notifications. But, Jay, look, we can always make more money. We can’t get more time. So 90% of this business is automated with software, Inexpensive virtual assistants, and software on the back end. You throw in Private Money in that, and now we’re using 3 levers, Other people’s time, software automation, and other people’s money to scale our land business to the next to the next level.
Jay Conner [00:24:40]:
I love it. If you didn’t grab that URL a few minutes ago, you can get Mark’s book for free shipped to you in the mail, or just cover shipping. You can get that at www.TheLandgeek.com. So what does the note look like when you turn around and sell it? So you collect your $2,500 in this example as the down payment. Now you’re going to create a promissory note. Since you’re not closing with, with a with a title company or a real estate attorney. You’re using a land contract, so you’re not transferring title till they pay it off. How do you figure out the monthly payment, or is that negotiable? Are you asking them what’s the most they can pay, and are you charging interest? What’s the what’s the note payable look like?
Mark Podolsky [00:25:31]:
Well, the way that I like to calculate it is for every $1,000 that I’ve invested into the raw land, I want that note payment to be $100 of that for capital recovery. So let’s say, for example, my, investment was $5,000. I’d want my note payment To be $500.
Jay Conner [00:25:53]:
Okay. Well, that’s easy to figure. Man, can’t you make this more complicated?
Mark Podolsky [00:25:59]:
I could. Absolutely.
Jay Conner [00:26:02]:
Oh my goodness.
Mark Podolsky [00:26:03]:
So you wanna do algebra and solve for x. But really but, you know, ideally, though, you wanna you wanna look at the car business. Right? What’s the best-selling car in America? How do they, You know, factor in that payment? Be competitive like that. There’s a reason it’s fast it’s its biggest, you know, Seller in America. Because it’s affordable. You got a job, you can afford it. So I wanna keep my monthly payment affordable to any American who’s got a job.
Jay Conner [00:26:31]:
It’s a fascinating model. What percentage I’m going to ask it this way. What percentage, default, and you get to go sell it again?
Mark Podolsky [00:26:46]:
So it depends on the market. Right? So in 2010, I had a 50% default rate. I don’t know if you remember the great recession, Jay, but I got hit hard in 2010. Now in today’s market, we’re looking at a 12% default rate. I anticipate a recession, which is gonna have to happen at some point. Right? Let’s say it’s gonna be a 15 to 20% default rate. When the market Was super hot. We’re looking at about a 10% default rate.
Mark Podolsky [00:27:18]:
So anywhere between 10 to 20%, Depending on how you’re how you’re structuring that note. The lower the down payment, the higher The default rate is going to be. And again, we don’t mind defaults because again, We collect that money, lower our cost basis, and just do it again. I have some students. They do what I call the dollar skittle. So they’ll just ask somebody for a dollar down payment, and they’ll make it a very inexpensive, monthly payment, knowing that that person is most likely gonna default, and they’ll just keep doing it, doing it, doing it until they got their money out. And then They might do what I call a land arb deal. So land arbitrage is when you make this you offer the spread To someone else.
Mark Podolsky [00:28:11]:
So, Jay, say, for example, that I’ve got my money out on the deal because of all these defaults. And now I want to I don’t want them to default. So I know that the market can handle $500 down, 500 a month. So I might go to somebody who’s in the land business and say, hey. I’m gonna sell you this property for 2.50 down, 2.50 a month. You sell it for 500 out of 500 a month. You control that property with only $500, so you don’t have to spend, say, 20,000 for that property or whatever it is. You can control it for only $500, then you make that 2.50 spread every single month and only have and so it mitigates that down payment risk.
Mark Podolsky [00:28:54]:
Again, that’s assuming they’re not using Private Money. If they’re using Private Money, they’ll just pay cash.
Jay Conner [00:28:59]:
I love the model, Mark. Again, you’re listening. You’re watching this show. Take advantage of Mark’s gift, and that is his book, which is titled DIRT Rich. You can get it for free at the post office. Just cover shipping at www.thelandgeek.com Mark, you get the final word.
Mark Podolsky [00:29:22]:
Jay, thank you so much for having me. And For those of you listening, I like to just quote Zig Ziglar. So if you do the next 3 to 5 years what other people won’t do, You’ll be able to do for the rest of your life what other people can’t do.
Jay Conner [00:29:40]:
I love it. Mark, God bless you. Thank you so much for joining me.
Mark Podolsky [00:29:44]:
Thanks, Jay. Appreciate you.
Jay Conner [00:29:46]:
You got it. Well, there you have it. Another amazing episode of Raising Private Money. I’m Jay Conner, the Private Money Authority, and we appreciate your feedback. If you are watching on YouTube, be sure and ring that bell, so you don’t miss out on upcoming episodes. And if you happen to be listening on any of your favorite podcast platforms, be sure and follow me. And with that, we’ll see you right here on the next episode of Raising Private Money with Jay Conner.
Narrator [00:30:18]:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to www.JayConner.com/MoneyGuide. That’s www.JayConner.com/MoneyGuide, and download your free guide that shares seven reasons why Private Money will Guy rocket your real estate investing business right now. Again, that’s www.JayConner.com/MoneyGuide to get your free guide. We’ll see you next time on Raising Private Money with Jay Conner.