To clarify: my comment was more about what I hear from land investors. I've also heard of this happening when marketing to home-owners, but I'd think that has more to do with them getting overwhelmed/annoyed with cash offers to buy their homes.
What should be the minimum of acres for a mailing campaign?
Just mailed out my first mailing campaign. There were some 0.10, 0.25, 0.50, and etc acres. Are they worth it? What do you recommend for filters? Minimum 1 acre?
Thank you in advance,
Jimmy Tsiampouras in most rural areas, I don't bother with properties that small... but again, it depends on the market and what those sized properties typically go for. Have you done any research to find out what those sizes would be worth?
0.50 acres is the cutoff I use in my markets. It gives me plenty of bite sized deals to go after. I might be bumping this up to 1 acre soon. Those smaller deals are easy to find but they get kinda dull after a while.
You really need to understand the value-to-size ratio and also your own money limits and what you’re able to throw at each deal. The more money you have, the bigger you can go.
Seth Williams Somewhat yes. Let's say roughly $2-3k. Even if we pick them up for $2-300, wouldn't the closing costs and cost of insurance, etc eat our profits?
Amy Breen Thank you
I suggest you ask a different question - "What is the asset value range that I want to invest in"? For me, it's never about the size (acres), it's about the dollars. I have a price range that I'm willing to invest on a deal, from minimum to max. This is based on the amount of money I have to invest, my risk tolerance, and my investment goals for target returns. When I apply that to any given county, my minimum acreage might be 5 acres. But for the next county I consider, it might be 1 acre (as a simple, rough example). The financial numbers are my guide, not the numbers associated with tract size.
I suggest you ask a different question - "What is the asset value range that I want to invest in"?
What he said.
Arturo Arturo last edited by Arturo
Jimmy Tsiampouras IMO it wouldn't make too sense spend 2k$ on a property if you have to spend 1k$ of Title Agent fees. Just set a policy: example, under 5K$ self close, more than that use a title company. But most of all run your numbers on a spreadsheet and see what the profit would be with and without Title Company, and only then decide. It's all about math I guess (and your expectations).