Collecting Keys - Real Estate Investing Podcast EP 42 - Printing Money with Extra Land: Tips for Subdividing Lots
What did you think of todays show??
If you’re like most people, you probably think of real estate as a safe investment. And you’re not wrong — but safe investments can get boring after a while. Finding hidden gems in overlooked or undervalued neighborhoods helps you make a profit and adapt to the ever-changing market.
In this episode of Collecting Keys Podcast, we discuss how you can create opportunities so you can increase profit and thrive no matter the market condition.
Here are some power takeaways from today’s conversation:
- Learn to pivot and adapt
- Leverage market changes
- Create opportunities
- Do your due diligence
- Ask for help if needed
Episode Highlights:
[0:53] The Current State of Airbnb’s
The Airbnb market is suffering from a lower rate of bookings. There are lots of additional costs when running an Airbnb, making it less appealing.
The system is built to leverage excess capacity. Due to capitalism, Airbnb’s became expensive compared to when it first launched as a cheaper alternative to hotels. Because of that, hotels are gaining the upper hand with competitive prices.
[09:55] Becoming Adaptable
Being a one-trick pony isn’t sustainable. As you pivot and adapt, you must learn how to analyze and underwrite deals. Determine what to do with your properties and leverage market changes.
The buyer pool and buying power have become smaller. Figure out creative financing and find ways to provide affordability for people to recover some of your money and cash flow. You could also trade out lesser quality assets.
[19:02] Creating Opportunities
If you want to make money in real estate, you must learn how to create opportunities despite the market conditions. Look at what’s going on around you and do what makes sense in the market. You need to recognize the opportunity in a property ahead of time.
When you do find an opportunity, here’s what you can do:
- Choose a property in a great location.
- Consult whomever is responsible for the land development to find out options.
- Contact your zoning department if you must re-entitle a property.
- Find out where the utility hookups would be.
- Get a surveyor and builders if needed.
Don’t be afraid to ask people what you need to know. Most people would be willing to help you. Total separation can be midrange-expensive.
Notable quotes from the Episode:
[22:46] “Look at what’s going on around you before you do stuff like that because it might not make sense for you in your market.”
[26:12] “Don’t be afraid to just ask people.”
[29:18] “We didn’t even look at building because we just knew the location was great, that we knew there would be a good spread on the land itself to sell to a builder because–not that we don’t want to do this but– we just haven’t ever done a new build.”
Resources Mentioned: