WHY YOU SHOULD BUY DIRT
WHY YOU SHOULD BUY DIRT
What is solo economic dependency?
Solo economic dependency means that if you're not working, you're not making money. This applies to people with jobs, freelancers, and solopreneurs. Even professionals like doctors, lawyers, or dentists who solve their money problems but not their time problems face this issue. When a dentist's hands are in a patient’s mouth, they aren't generating income otherwise. Passive income solves this problem.
Why should business owners create steady cash flow and passive income?
It's the idea that anything can happen—you can get sick, lose your job, or face any other uncertainty in this volatile world. Having a steady income stream coming in daily, weekly, or monthly is the antidote to financial insecurity. You've already done the work upfront to secure it. So, if something happens, you and your family are protected. While cash is great, you have to pay taxes and constantly find more. Cash flow and passive income are king, in my opinion.
How can handling payment defaults increase the return on investment in a land investment?
Entrepreneurs don’t want to create another job for themselves—they want a business that operates as a passive income machine. For buying and selling land, we use three points of leverage: other people's time, software and automation, and other people's money.
Let's talk about handling defaults. We use a software called Geekpay.io, a "set it and forget it" payment system. We collect the down payment via credit card and monthly payments via ACH, automating the process. If the ACH payment bounces, the buyer has 30 days to cure the default. If they don’t, we use a land contract, which keeps the asset in our ownership. We keep the down payment and any monthly payments made, which lowers our cost basis. For example, if I bought the land for $2,500 and the buyer has already paid $500, my new cost basis is $2,000. I can then resell the land, get a new down payment, and start new monthly payments, increasing my return on investment.
In some cases, you might prefer defaults because they can boost returns. To encourage defaults, you could ask for a low down payment. If you want to avoid defaults, aim for a higher down payment.
How could buying land notes become a passive income stream?
If you have an hour or two of focused time each day, this can be a great side hustle to build passive income. As an entrepreneur, I emphasize the importance of focus. So, consider who you could get to run this for you. If your current business is doing well, it might be worth delegating. If it isn't, this could be an interesting pivot into a new opportunity.
How can you determine if buying and selling land notes is the right fit for you?
The mindset needed here is something you have to develop for yourself. I can't say whether this is right for you; only you can decide that. For me, it was a good fit because I like the idea of working from anywhere. I enjoy traveling, have some computer skills, and dislike dealing with physical things. I have no interest in owning a home—I need a handyman for everything. If you’re handy and enjoy working with contractors, traditional real estate might be a better fit. But if you’re more of a techie like me, this could be worth trying. Ultimately, everything is a test. You have to try it out for yourself.
*This interview has been edited and condensed for clarity.*
