Wednesday, November 28, 2007

By Paul Sunndin

I am about to tell you a true story. If you believe me you will be well rewarded. If you don't believe me, I will make it worth your while to change your mind. Let me explain.

I have done many real estate deals over the years. Some good - some bad. Make no mistake, I've made a lot of money. But a couple of years ago it became difficult to find good deals on single family homes, so I started looking at land subdivision.

Anybody who has been involved in the land subdivision process understands the complexity of it. All the time and money involved and (of course) all the headaches. There is so much red tape - I really wondered if it was worthwhile. I almost gave up.

But then I made a discovery. After months of research, I stumbled upon something. Something that would allow me to make easy money in both up and down markets. Now here comes the best part.

More about my story in a moment....

Before I go any further, I'd like to get one thing out of the way....

Now back to the story....

I was confused at first. While examining acreage prices in a certain area, I noticed that the price per acre for several smaller lots was significantly higher than the price per acre for many of the larger parcels. In many instances they were 50% to 100% higher. I was truly amazed. Remember - this is the "per acre" price.

I ran some numbers and determined the enormous profits to be made buying large parcels of land and splitting them into smaller ones. When I factored in the leverage associated with a 10% down payment, the returns were enormous. If you don't understand the concept of leverage just send me an email and I'll walk you through it. Now it gets fun.

So I asked myself - how do I buy a large parcel of land and split it up into smaller parcels for resale? All along making sure that I stay away from land subdivision regulations. I knew I had to develop a system.

It turns out it wasn't as difficult as I thought. There were certain pitfalls I needed to avoid. But with the process I outlined, I decided to take the plunge.

I ended up buying a 40 acre parcel for $2,500 per acre. I then split it into four 10 acre parcels. The four 10 acre parcels were then valued at $5,000 per acre for a total of $200,000. That was $100,000 over my original cost! After payment for a survey, debris removal and commissions, the net profit was approximately $75,000. Not bad for maybe 50 hours worth of work.

Now of course I was ecstatic with the results. I certainly made some mistakes along the way. But with some fine tuning, I knew that I had a system that I could implement time and time again.

I'm not saying that doing land splits is easy. It's not. But if you follow the process I've outlined, virtually anyone can be on their way to big money. In fact, look at the testimonials below - they are from people just like you.

Can I really do this?

I wrote this book for both beginners and real estate professionals. I made sure that even beginners would be able to accomplish a split using my approach.

But you say that you don't have $100,000 like my example?

Well that's OK - I didn't need $100,000. I was able to get the seller to carry the mortgage with 20% down.

You say that you don't even have $20,000 - well that's OK too.

There are banks and financial institutions that will lend up to 90% of the value of the land. You can often use your IRA or other retirement plan to fund the down payment. More about this later.

In fact, it's easy to get started doing land splits with parcels in the $20,000 range and down payments of 10%. Once split, these parcels may fetch upwards of $40,000 or so.

This allows even the beginning investor the opportunity to start small. Limited funds should not prevent you from doing a land split.

Now under my system:

	You don't need a lot of money.
	You don't need to have any real estate experience.
	You don't need any land development, land subdivision or land investment experience.
	You don't need great credit.

But there is one thing you need - the desire to make money. This is something that I can't teach.

Once you understand my system, you will realize that land splits can be done by anyone and virtually anywhere. There really is no excuse to not getting started today!

You may be asking yourself – what exactly is a land split?

Well most large real estate developers subdivide land for residential or commercial building. This requires deep pockets, extensive paperwork, and can take months (or even years)! However, if you follow certain guidelines, most states will allow you to "split" the land into fewer parcels and be exempt from land subdivision regulations. So here are some details.

My simple technique works as follows: buy a large parcel of land, split it up as many times as possible while staying away from land subdivision requirements, add some minor land development improvements (if any) and sell off the parcels separately generating substantial profits and/or generating monthly cash flow.

Again, doing a land split is not easy. The process can be complex. There are many pitfalls, including legal and environmental issues, zoning requirements, understanding complicated land subdivision regulations and difficult land development improvements.

You must also watch out for complex easements, soil conditions and a variety of government restrictions. But don't worry. My system will help navigate you through the process.

Now that may sound like a tall statement, but I can show you how to be successful at the land split. My system is fairly basic, yet there are many pitfalls and secrets to success. Here are a few things you can expect to discover:

	How to make easy money doing land splits with minimal risk.
	How to identify land and locations that are ripe for land investment.
	How to properly execute a land split and stay away from the land subdivision process.
	How to identify simple land development improvements that add substantial value and build equity (even if you know nothing about land development).

	How a land investment can provide you with a guaranteed monthly cash flow.

You may be thinking – the real estate market is in the tank. Make no mistake about it: real estate markets are cyclical. Prices rise and prices fall. Risky land subdivision and land development is no different. But unlike most real estate investments, the land split works in both up and down cycles.

Realize that this isn't just some tips about making money in land. It is a system with a formula for successful land development.

The following are highlights:

	Discover why land investment can be the least risky real estate investment with huge upside potential (pg. 10).
	The five success factors of the land split that allow you to analyze a potential deal with the accuracy of the best real estate expert (pg 23).
	The important characteristics of a market ripe for land splits (pg. 32).
	Discover the potential legal and environmental pitfalls of land splits - and how they can wipe you out if you are not careful (pg. 40).

	The 15 critical questions that you must answer prior to executing a split and how these determine the answer the FINAL question (pg. 50).
	Discover the 8 critical contract clauses that are imperative to the split (pg. 57).
	Discover the 6 simple techniques to add value to any land development with minimal cost - and how to leverage these techniques for substantial profits (pg. 67).
	The anatomy of a split (from start to finish) demonstrated as a fast and easy way to make huge profits in land - with very little risk (pg. 73).

	Discover the secret techniques to generating monthly cash flow from your land investments (pg. 81).

One of the nice things about land splits is that they are practiced by very few. In fact, very few real estate investors even know about the practice.

I have been reading real estate books for decades and have never read one on land splits. You could search for other books about the topic, but I don't think you would find one. You may find books on land development or land subdivision, but few people have the money and appetite for that sort of risk.

Dear Paul, Thank you for your wonderful book. I have done many real estate deals over the years, but I never realized the money to be made doing land splits... Desmond Wilson - Stillwater, OK

Paul, I have become sick and tired of so many of these real estate books that offer the same old advice - "buy, fix up and sell." Thank you for writing an informative and innovative book that offers a different approach to making money in real estate. Phillip A. Roberts - Irving, TX

Paul - I just wanted to say that your book on land splits was very eye opening. I am aware of the complexity of land subdivision and never considered making money doing splits. It is so refreshing to read a real estate book that offers such a unique insight on making money in land......I'm going to be using your approach to look for land investments in my area immediately. Beth Hudson - Vancouver, WA