Electrician to Land Mogul: Chris Johnsen's High-Voltage Land Investing Journey
Jan 2, 2024
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Former electrician Chris Johnsen shares his journey from stumbling into land investing to building a highly profitable land-flipping business. Topics discussed include taking the leap into full-time investing, buying properties outright vs using options, exploring conversational AI platforms and the future of AI, Chris' unfair advantage in real estate, the importance of a strong support system and setting expectations with sellers, business passion and future plans, and the idea of creating a sports complex for extracurricular activities.
Land flipping offers higher profit margins compared to traditional jobs like electrician.
Scaling a land flipping business requires significant changes, such as hiring top-performing employees.
Building rapport, responding with urgency, and sounding like a regular person contribute to success in land flipping sales.
Deep dives
Chris Johnson's Journey into Land Investing
Chris Johnson, a former electrician, stumbled upon land investing when he bought a lot next to his house and later sold it for a significant profit. Intrigued by the potential, he started exploring the land business further. Through self-education and taking action, Chris quickly found success as a land flipper. He discovered that the profit margins in land flipping were much higher compared to his previous job as an electrician. In just over a year, Chris completed around 80 deals, earning substantial profits. He primarily used text messaging to find and communicate with potential sellers, converting a high percentage of leads into deals. His ability to build rapport and respond with urgency has been key to his success.
Chris Johnson on Scaling and Future Plans
While Chris has been highly successful in his land flipping business, he acknowledges the challenge of scaling it further. To triple his net income, Chris recognizes that he would need to make significant changes. One option would be to hire a top-performing employee to take over some responsibilities, allowing him to focus on bigger deals and subdivisions. However, he is cautious about rapid scaling and is currently more interested in growing his business gradually. Chris plans to dive into subdivision deals and explore entitlement opportunities, while also considering the potential for long-term investments in commercial or rental properties in the future.
Overcoming Challenges and Maintaining Focus
Despite the challenges and occasional worries, Chris remains committed to his land investing journey and has never been tempted to quit. He acknowledges the natural lulls in the business, such as during the holidays, and reminds himself to relax and enjoy the downtime. Chris is aware of his tendency to be a perfectionist and worries about every detail. Scaling and staying focused have been ongoing struggles for him, but he is determined to overcome them. Chris believes that long-term success comes from staying focused, avoiding distractions, and honing in on the land flipping business while gradually exploring other investment opportunities.
Advantages of Being a Regular Guy
The speaker emphasizes that being a regular person and sounding like one on the phone benefits his success in sales. He believes that customers can easily tell when someone is a salesman based on their demeanor. By being polite and using respectful language, he establishes a connection with customers. Additionally, he mentions that having a supportive family is another advantage he has, as they provide help and support in his business endeavors.
Approach to Deals and Double Closings
The speaker shares insights into his approach to deals and double closings. He mentions that his deals vary in profit, with an average of around $20,000 for 2023. He gives an example of a deal where he bought a property for $341,000 and sold it for $384,000 through a double closing. He also explains that he sets expectations with sellers regarding the closing timeline, typically between 45-60 days, and offers an escape clause to protect himself in case of complications. Lastly, he discusses using online tools and consulting with local realtors to determine offer prices based on market values.
174: Chris Johnsen is a former electrician who stumbled into land investing when he wanted to buy a neighboring lot near his house. His initial success ignited a realization of the potential in land investing.
His story is a testament to the power of taking action and seizing opportunities in an unconventional industry.
In this episode, Chris explains his journey and the strategies he's used to build a highly profitable land-flipping business in a relatively short time.
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