How Mike Balcom's Novation Strategy Could 10x Your Profits
Aug 13, 2024
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Mike Balcom, a former professional poker player turned land investing mastermind, shares his unconventional journey in land investing. He dives into the intricacies of novation deals, showcasing them as a profitable alternative to traditional wholesaling. Mike provides actionable insights on engaging sellers, navigating their motivations, and avoiding common pitfalls. He emphasizes building a cohesive team culture and the balance between academic knowledge and practical skills, all while highlighting the importance of effective communication in successful transactions.
Mike Balcom's innovative novation strategy allows investors to partner with property owners, ensuring guaranteed sales while navigating market fluctuations.
Building a collaborative team culture enhances efficiency in land investing by fostering transparency and empowering team members to share insights.
Thorough due diligence and proactive negotiation are essential to minimize risks in land investing, as unexpected challenges often arise.
Deep dives
Automated Loan Servicing
Automated loan servicing greatly simplifies the process for land investors. It allows for nearly all ongoing administrative tasks, such as collecting payments and generating statements, to be handled with minimal manual effort. This automated approach enables investors to set up new loans and onboard borrowers swiftly, making the entire process efficient and hassle-free. By utilizing this service, investors can focus more on their core business rather than getting bogged down by tedious administrative tasks.
Mike Balcom's Unique Journey
Mike Balcom's entry into land investing was influenced by his father, who introduced him to the concept of land banking at a young age. His real estate career began as a realtor and evolved through various investment strategies until a serendipitous conversation during a pickleball game led him to acquire tax auction properties. This initial deal was both daunting and enlightening as it introduced him to the intricacies of land deals. Balcom's story underscores how unexpected opportunities can lead to significant career changes.
Evolving Investment Strategies
In the beginning, Balcom relied on traditional mailers to find motivated sellers, building his portfolio with limited resources. The need to adapt became apparent as the market dynamics changed, pushing him to explore other strategies like novation deals. These novation deals allowed him to partner with property owners, promising guaranteed sales prices while managing marketing and renovations. This shift not only diversified his investment strategies but also improved his ability to respond to varying market conditions.
The Power of Team Dynamics
Balcom emphasizes the importance of building a strong, collaborative team to enhance efficiency in land investing. He believes successful teams are composed of skilled individuals who are encouraged to share insights and take ownership of their roles. By fostering a culture of transparency and open communication, his team is empowered to identify promising deals and navigate challenges collectively. This collaborative approach has proven to catalyze innovation and streamline operations within his business.
Implementing Innovative Deal Structures
Novation agreements have allowed Balcom to redefine traditional land deals by working closely with property owners to market their properties without ownership. This structure grants him the flexibility to bring in potential buyers with financing, facilitating smoother transactions. By ensuring clear communication and expectations upfront, he has built reliable processes that encourage seller trust and attract more buyers. These innovative approaches have broadened his investment horizons beyond conventional methods.
Learning from Setbacks
Balcom acknowledges that setbacks, such as investing in properties with unforeseen issues like zoning restrictions, are part of the land investing journey. He stresses the importance of thorough due diligence and proactive measures during the negotiation process to minimize risks. Even after conducting extensive research, unexpected challenges can arise, requiring adaptability and resilience. These experiences highlight the unpredictable nature of real estate investment, teaching investors to be prepared for uncertainty and informed decision-making.
190: Are you ready to take your land investing game to the next level? In this episode, we sit down with Mike Balcom, a former professional poker player turned land investing mastermind. Mike shares his unconventional journey and the hard-won lessons he's learned along the way.
From navigating the challenges of novation deals to building a rockstar team culture, Mike reveals the strategies and mindset shifts that have allowed him to close hundreds of successful deals. He also shares cautionary tales of the costly mistakes that can trip up even experienced investors.
Whether you're a seasoned pro or just starting, this episode has actionable insights and insider tips you won't want to miss. Tune in now and discover how to avoid common pitfalls, unlock hidden profits, and build a thriving land investing business.
