Off-Market Land Deals
Looking For A Specific Deal Or Just Exploring The Idea?
If the answer is a specific deal, my first step would be to have a plan that works. A strategy for what is going to be done with the land, how it is going to get done, the projected cost of doing it, and what the expected outcome will be.
Why? Because it always helps to know why I am looking in the first place but remember, just because it is off market doesn’t mean it is any good.
Develop it
Flip it
Hold on to it
Or…???
Tips For Scoring Off-Market Deals:
(I Found The Hidden Gem With #6)
Since it’s off-market, I won’t find it on Zillow or the MLS. That means it’s going to take some old school effort.
Road Trip – Map out and drive areas of interest to look for promising parcels. The ones without the for-sale sign.
Check Online databases – Once a parcel of interest is located I can check county tax records to find the owner and his/her address of record.
Door Knocking - If the owner is nearby a knock on the door might work as long as No Trespassing signs and/or aggressive Dobermans are taken into account.
Direct Mail that works - I can send a well thought out and personalized (handwritten?) letter to the landowner asking if they’re open to selling. I think the effective way is to send one with specific details about the subject property, sent to the owner by name, describing me as a potential owner of the property, and what my intentions for it might be. Then ask for a face-to-face visit!
Direct Mail that typically doesn’t work - Generic form letters or Bcc email blasts. Let’s be real about it, these methods lack any form of enticement for a landowner that isn’t selling in the first place. The more I put into it the more I can get out if it!
Networking – Connecting with local developers, investors, RE agents, or nearby landowners. Bird dog land companies, developers, or builders with excess parcels they may need to get rid of.
Specific Off-Market Success Example:
I once bought six 20 acre off-market parcels (with lot status) from Weyerhaeuser Real Estate Company (WRECO). They were excess real estate to a +/- 2,000 acre project in Snohomish County, WA. I had the access, they didn’t.
It happened solely because Marc, my Land Manager, knew a guy that knew about it, he let Marc know, and Marc let me know. Marc is the king of local networking and that’s how word-of-mouth worked for this off-market score.
Dig into the details:
• Zoning laws – Make sure the land can actually be used for the intended improvements.
• Utilities & access – Does it have available water, electricity, sewage/septic and legal road access?
• Topography & soil – A flat or gently sloping lot is generally easier to develop than a steep one. Are soils tests necessary?
. Environmental - Has the land ever been used for any purpose that would require environmental studies? Are there environmentally sensitive areas that cannot be touched - wetlands - steep slopes etc.?
• Back taxes or liens – It’s easy to research the county tax assessor site to find any unpaid property taxes to prepare for a meeting.
Make an offer:
Since there’s no immediate competition from other buyers, there may room to negotiate.
Some landowners don’t even know what their land is worth, but I also have to remember that they may not be all that interested in selling either.
• I can start with a low but fair offer.
• I need to be ready to justify my price (e.g., “I’d need to clear the land, bring in utilities, etc.”).
• Should I offer a cash deal to make it more attractive?
Close the Deal:
• Title Search – Have a title company report on the bundle of rights and obligations that come with the land. An attorney should be used for legal issues.
• Survey – Get the property surveyed if boundaries are unclear.
• Deed Transfer – Work with a title company and real estate attorney to properly transfer ownership.
Psychology Of Off-Market Landowners:
If it’s a hot property they have probably been contacted before by agents and private parties.
There is likely an underlying reason why they haven’t sold before. Find out what it is and fully address it to the satisfaction of the landowner!
Another Specific Off-Market Success Example:
I needed an emergency vehicle access on the west side of a large project. I approached Mrs Gertrude V., an elderly adjoining property owner and offered to buy an easement on the south side of her 20 acres.
After several face to face visits to get acquainted and eventually sitting at her kitchen table, I found out she wanted to sell out entirely since she would soon be moving to a nearby senior center.
Her condition of sale was simple:
My verbal promise to let her nephew and his wife rent her late 60’s single wide on the property for as long as she was living. That way they would be nearby to visit her and help out when she needed them.
I made the promise, I kept it, and the nephew was a great renter and watched the rest of the 20 acres for me.
This worked because I found her condition of sale, addressed it to her satisfaction, paid her the agreed upon price, and kept a key verbal promise!
That’s how it worked for me.
Good luck!
Contact me at: ldr@landdevelopmentrealities.com
