I was very excited to sit down with Mark Podolsky, The Land Geek, to talk about his side-hustle-turned-full-time-biz of investing in raw land.
In fact, he was able to replace his day job income and quit his job only 18 months after starting.
It’s like nothing we’ve covered on the show before, though somewhat similar to the real estate wholesaling concept last discussed a few months ago with J. Massey.
Mark calls it the best passive income model because you don’t have to worry about building a website, building a product, dealing with tenants, dealing with repairs, or selling a service.
Naturally I’m pretty skeptical when it comes to this sort of thing, but this a pretty fascinating one. Definitely curious to hear what you think. Viable side hustle or no?
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Learn:
- How Mark and his students earn both quick flip cash and long-term passive cash flow from investing in raw land.
- How he got started with just a $3000 investment — and quickly turned that into $9000.
- The criteria he uses to search for properties to make offers on.
- How to research comparable sales.
- How to do your due diligence, even if you’re out of state.
- What to look for in a parcel of land.
- Where to find buyers for your property.
- How to structure your sales for either quick cash or long-term passive payments.
- The risks and pitfalls to avoid.
- Mark’s #1 tip for Side Hustle Nation.
Links:
- TheLandGeek.com – Get Your Free Launch Kit (normally $97)
- Mark’s Investor Toolkit – Save $500 with promo code sidehustle! (affiliate link)
- LandTrainer – premium training course put together by a Side Hustle Show listener.
- eTaxSales.com
- AgentPro247.com
- ListSource.com
- IFTTT.com
- LandFlip.com
- LandsofAmerica.com
- LandHub.com
- The 12 Week Year
What do you think? Is this a side hustle that sounds interesting to you?
UPDATE: A year later, I interviewed two side hustlers who took action after listening to this episode. You can check out those conversations here and here.
Raw Land Flipping Alternatives
If this sounds like a lot of upfront work, it is. But there are a few ways to invest in land–and real estate–a little more passively.
Here are a few options to consider:
- Fundrise – Fundrise offers a variety of commercial real estate REITs, targeting different investment goals and areas of the country. I like the quarterly cash flow, low minimums ($500), and being automatically diversified in not having to pick-and-choose individual deals.
- PeerStreet – PeerStreet is only open to accredited investors at the moment, but allows you to buy fractional debt in fix-and-flip projects across the country. There’s a $1000 minimum and target returns are 6-10%.
- AcreTrader – Invest in America’s farmland, starting with $5000 minimums. Since 1990, farmland investments have seen an 11.5% annualized return (according to the site).
- RoofStock – Roofstock is a marketplace for “turnkey” rental properties. If the “no tenants” aspect is what attracted you to raw land, this one probably isn’t for you.
Be sure to check out our full list of alternative investments for more.
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Hey Nick,
I’m a relatively new reader/listener that came across your blog while looking for alternatives to my day job. I’ve been listening to your podcasts and some of your guest’s podcasts as often as possible and have been incredibly inspired. I’m halfway through episode 108 and I can’t wait to hear how this raw land gig plays out. Keep up the awesome work!
Thanks Steve! Mark definitely opened my eyes in this one.
Wouldn’t you have to pay off the back taxes owed to the state and continue to pay taxes until you sell the plot off?
I believe so — and because of that, covering the back taxes might have to be part of your offer. Like “I’ll clear your debt with the state and take the property off your hands.”
That was my thought as well but it sounds like the tax bills are actually pretty low. A lot of the property tax is based on “improvements” (buildings) made to the land so raw land has a low tax rate. From what I understand, the delinquent tax would only be a few hundred dollars.
Yes the taxes have to be paid, but if you do seller financing, you pass the taxes on to the buyer, just like a mortgage. I don’t pay taxes until I sell the property, in case I bought a lemon. I will pay them if the county is going to repossess a lot.
Hi Nick, first off I love your website and have it as my homepage. I listened to the podcast with Mark and I was really excited about this new concept of buying and flipping land. The only problem I went to his website and it just seems like it all about selling his programs. I want to really learn how to do this and I get lost in all the programs he is selling. I will give his site a chance and read his free ebook first, but it is a cool concept I would like to Try. Thanks again for all your great work on the Podcast and giving us great ideas to create side money. Stephen
Thanks Stephen — Agreed; Mark’s site is very sales-oriented at the moment. While I’m confident his material is good, definitely do your on own homework and don’t feel pressured into buying into anything you’re not comfortable with. Keep me posted!
I really want to look into this but it seems like it’s easy to Mark because he’s from a real estate investing background. I bet there’s a lot of legal stuff to deal with in these deals.
Yep — this was definitely a high-level overview of how it works and what’s possible, but anything there’s contracts involved and property changing hands you can bet there are some legal considerations in play :)
Honestly, its pretty easy. The Investor’s Toolkit covers most of the bases, but like any businesses, you are responsible for all legal issues, so you have to be aware of the laws and restrictions.
Hey Nick,
Do you know if there is any free place to search for these properties? All three of the sites he suggested charge either a monthly fee, or a price for each list in order to access the information.
Super interesting interview though. I have always thought about doing some real estate investing in the future because of the high cost to get involved, but this seems like a good way to get into real estate with very little up front cash.
Thanks!!
Hi Adam — I asked Mark about this and he recommended reaching out to the treasury office of each county individually. I think because it’s a pain, that’s why these other sites/services can charge for information that is typically part of the public record.
County treasurer is the best way to go. Some will charge for the records, but often the other sites aren’t up to date.
Great Podcast Nick!
I have a question, if you have done your due diligence and you purchase, how often does the land not sale (or the one owing back taxes doesn’t want it) or no one is interested in financing it? I know there is risk in everything but how often does the buyer get ‘stuck’ with a piece of land that has very little ROI? That has to be my biggest concern upfront.
Thanks!