How do Pros Find Relatively Cheap Land?

Finding cheap land seems like an easy thing for professional developers and other real estate professionals. The important thing to realize is that developers often go after property that is not on the market. They approach landowners before they have even thought about selling.

Bird Dogs

Real estate developers use what they call "bird dogs" to go out and secure land for them. These bird dogs are individuals that have a very good record of dealing with people. They are good sales people, but they do not come across as pushy. Many times, they are picked because they fit in with the community that they are working in. These "bird dogs" will then go around and talk to the landowners of the particular area that the developer wants to buy in.

They will visit with all of the adjoining land owners several times. They will start by developing a relationship with the landowners and getting to know them. They will let them know that they wish to purchase the land that they own if they would be willing to sell. If the landowner jumps at the opportunity, they will buy it immediately. If the landowner does not want to sell immediately, they will keep coming around periodically. They will bring gifts and try to talk them into selling. Many times, with this method, they will be able to secure a cheaper price than they normally would.

Once they get two or three landowners to give in and sell, the other landowners around will usually concede. The last landowner left will usually get a higher price for their lot, but they usually give in. Overall, even paying a premium for the last parcel, the developer saves quite a bit of money on the total amount of land compared to what they would have paid for the land.

Bulk Purchases

Another way that professionals get cheap land is to buy it in bulk. They often have multiple millions of dollars at their disposal because they have a history of other successful deals under their belt. If they need to, they can finance a large deal or they might even have the cash on hand. When you buy multiple acres of land all at once, you can often do so at a deep discount. If the land is owned by a single landowner, they might not have any idea what the land is worth. The land might not be worth much until it is developed. Therefore, the landowner is happy to get rid of it and the developer is able to develop it and further increase the value as they go.

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