Closing Your First Land Deal as a Side Hustle
When you're getting a new venture off the ground, especially when you're , the moment you get an offer accepted is exhilarating. But then comes the big question: how do you actually close the deal? Over the years, I've found there are really three paths you can take, but one of them is my go-to for its simplicity and effectiveness.
My Favorite Way to Close a Deal
My preferred method is the most direct. I just get the seller on the phone to confirm they’ve accepted the offer. I’ll say something like, “Doug, I’m going to send you a deed to sign, notarize, and mail back. As soon as we get it back and record it, we’ll send your check. Deal?”
Nine times out of ten, the seller agrees. When they do, I follow through exactly as promised: send the deed, wait for the signed and notarized copy to return, file it with the county, and once it's officially recorded, I cut the check. It’s a straightforward process that works for this kind of .
Of course, you’ll occasionally run into a seller who’s a bit hesitant. They might say, “Wait, you want me to trust you with the whole thing? How do I know you won’t just take my property and disappear?”
My response is tailored to my experience. I’ll say, “Doug, I’ve been doing this since 2001. My company has an A+ rating with the Better Business Bureau and a long list of happy clients on my website. Do you really think I’d risk my entire reputation over $800?” That usually puts their mind at ease.
If you're just starting out, you can adapt this approach. You could say, “Doug, I’m building a business that runs on trust, and I plan on having a website filled with testimonials. I totally get that you don’t know me, and it's wise to be cautious. How about this: I’ll film myself sending the deed to the county recorder, and then I’ll film myself writing and mailing your check. If everything goes smoothly, would you be willing to record a short video testimonial for me?” This offer of transparency is often enough to resolve any concerns and is a great way of for long-term success.
When Sellers Push for a Title Company
Some people are just tough nuts to crack. They might insist on using a title company, which for these types of small deals, is completely impractical. The fees for a title company can often be half the value of the property itself. When this happens, I simply say, “That’s fine, but if you want title insurance, you’ll need to cover the cost.” Once they see the price tag, they almost always change their tune.
If they’re still not comfortable, I offer a middle ground. I’ll suggest sending the check to a notary who will act as a neutral third party. I give the notary instructions to hold the check until after the deed is successfully recorded with the county. This protects both parties and keeps the deal moving forward, a key part of turning your .
Why I Always Wait to Send Payment
You might wonder why I’m so strict about waiting for the deed to be recorded before paying. It’s a simple risk-management strategy for this unique . Even with thorough due diligence, things can go wrong. The county might reject the deed for an obscure, county-specific reason. Usually, it’s a minor fix, but sometimes a serious issue pops up—like discovering the seller isn't the true owner or a formatting error on the deed.
If I’ve already sent the money and the deed gets kicked back because of an error on the seller's end, I could be out of luck. The seller could vanish with my money, still owning the property. Sure, I could sue, but the legal fees would likely cost more than the deal itself. It’s just smarter to wait until the recording is confirmed.
These days, I often use a service called Simplifile, which lets you record deeds securely online. It's incredibly fast; in some cases, the seller can have their money within 24 hours. This makes these even more efficient.
How to Get a Deed for Your Property
So, where do you get a deed? There are a few options.
My own mentoring program includes access to software that automates deed processing. But for everyone else, a great resource is Deeds.com. You can purchase deeds for any location in the U.S., and they even provide the extra paperwork some states require, like Arizona’s Affidavit of Property Value.
The most budget-friendly option? Just copy the previous deed. You can look up a PDF of the old deed, open a Word document, and replicate the font and spacing. It’s a simple and economical way to handle the paperwork for your growing .
Congratulations, you’ve officially bought a property. Now, the next step in making this profitable is to sell it!
