Is This the Way To Build a Life-Changing Business? (Podcast Ep#111)
May 23, 2024
auto_awesome
Learn how Chris and his team found success in equity funding and dispo in land investing, sharing tips on due diligence and underwriting. Discover the go-to tools for diligence, why most deals are rejected, and the process for assessing each deal. Explore valuable resources for land investors, including a dedicated Facebook group and Land Funding Dot Partners. Gain insights on building a successful land investing business and finding funders aligned with your needs.
Focus on equity funding and diligence in land investing for sustainable growth.
Utilize tools like Land ID and Google Earth for underwriting in land deals.
Deep dives
Chris Duff Shares Insights on Land Business Funding and Underwriting Process
Chris Duff, an experienced land investor, discusses his journey in the land business since late 2019, highlighting the transition to a funding model focused on equity funding. He emphasizes the importance of underwriting and due diligence in land investing, advising newer investors to focus on larger deals for sustainable growth. Duff explains the nuances between equity and debt funding, stressing the need for detailed research and building relationships with funders.
Understanding Equity Funding in Land Business
In the podcast, Chris Duff explains equity funding, detailing the differences between equity and debt funding in land deals. Equity funders like Duff provide capital without personal guarantees, highlighting the importance of thorough due diligence in equity funding arrangements. He discusses the benefits of using OPM (Other People's Money) to pursue larger deals, emphasizing the need for strategic funding to scale land businesses effectively.
Importance of Underwriting in Land Investments
Chris Duff delves into the critical role of underwriting in land investments, emphasizing the significance of thorough diligence for successful deals. He highlights key considerations in underwriting, such as terrain issues, wetlands, flood zones, and pricing structures. Duff shares insights on the underwriting process, including tools like Land ID, Google Earth, and soil maps, to assess property characteristics and potential challenges.
Submitting Deals and Resources for Land Investors
Chris Duff provides resources for land investors, including a Facebook group 'Land Daily Diligence' for deal reviews and insights. He introduces 'Land Funding Partners' as a consolidated list of land funders, offering comparisons and options for investors seeking funding. Through these platforms and Serious Land Capital, Duff aims to support land investors in navigating the funding and underwriting processes effectively.
What’s your sweet spot in land?
Marketing? Talking to sellers?
Chris and his team found their niche in equity funding and dispo – getting into the nitty gritty of the transactional side of land investing – and doubling down on it; helping land investors grow their business by moving to larger and larger deals.
Whether you’ve been in land for years or just a few months, you quickly learn that your money is made on the buy side so your due diligence and underwriting need to be top-notch.
That’s where Chris and his company, Serious Land Capital, shine, having done *thousands* of deals over the years to hone their craft, they now have 7-figure deals sent their way *weekly*.
In this episode, he breaks down the equity funding business he and his partners have built and their process for choosing what to fund.
IN THIS EPISODE LISTEN AND LEARN:
- The go-to tools Chris uses for diligence
- Why 90-95% of the deals they’re brought are a *no*
- Why investors seek equity funding and their process for assessing each deal
Show notes:
https://www.seriousland.capital/
https://www.facebook.com/groups/landdailydiligence
https://landfunding.partners/
[chris@seriousland.capital](mailto:chris@seriousland.capital)
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode