VestRight offers a unique advantage for newcomers in the field of land development by teaching how to identify and structure deals that even large developers often overlook. Many of the major national developers tend to rely on their established networks and prefer to work with properties that are already on the market, waiting for opportunities to come to them rather than actively searching. This approach is typical because it relies on a straightforward, less labor-intensive method of acquiring land.
However, VestRight trains participants to tap into a niche that is often underexploited: finding off-market land deals. These are opportunities that are not listed publicly and require more ground-level effort to discover. This creates a unique space for smaller players in the market who, equipped with the right knowledge and strategies, can locate and negotiate deals that are invisible to many larger entities.
By learning how to scout these hidden gems, participants can position themselves as valuable resources to bigger development companies. When these companies see calls from individuals trained by VestRight, they are quick to respond, knowing that these calls likely represent well-structured, viable development opportunities. This method not only opens up significant opportunities for new entrants but also fills a critical gap in the market, leveraging a lack of widespread knowledge about finding and securing these elusive land deals.
The reason why not every piece of developable land has already been contacted or received a market offer lies in the nature of the land acquisition process and the business models of large developers. Many might assume that large, well-known development companies would dominate the market, rapidly identifying and acquiring all available land. However, the reality is quite different, especially for major publicly-traded companies with roles like Head of Land Acquisition. These companies often rely on inbound opportunities, waiting for offers to come to them rather than actively seeking out off-market deals.
This passive approach opens a significant opportunity for smaller players and specialized entities like those trained through VestRight. These smaller entities operate in a niche market, focusing on finding and developing off-market land deals—a strategy not commonly pursued by larger firms. This approach not only meets the needs of big developers by supplying them with potential projects they might otherwise miss but also sustains a dynamic market where there is always undeveloped land to be discovered and developed.
Moreover, the concept of "gobbling up" all available land in any given market or state is practically unfeasible, not just due to the vastness of available land but also because it doesn't align with the business models of most large developers. They often prefer deals brought to them through processes like simultaneous closes, which are well-structured and vetted, making these transactions more appealing.
In conclusion, the ongoing availability of land deals, especially off-market opportunities, is likely to continue. This ensures that the market remains vibrant and accessible for new entrants and seasoned developers alike, far into the future.
We don't work based on averages, but instead, everything is calculated meticulously—it's all mathematics. Therefore, by the end of the day, we start with the value of a finished home or an attached house, and then work backwards to determine the value of the finished lot. Next, we conduct further calculations to establish the worth of the raw land from the value of the finished lot. Within these calculations lies the profit margin. As a Land Acquisition Specialist, we provide you with the necessary formulas to ascertain your share of the profit, considering that you are the individual responsible for orchestrating the entire deal. This approach allows you to pay the full market value for these properties without needing to operate like a home wholesaler, targeting desperate sellers willing to part with their properties below market value for a quick resale to an investor. This model doesn't follow that strategy. Instead, it involves paying the market development value to property owners. However, because you are the one who identified, structured, and presented the deal appropriately, essentially putting a neat bow on it for the developer, they are inclined to reduce their profit margin and allocate a portion of their earnings to you for bringing them this well-packaged opportunity.
They do. Many of these development companies have land acquisition specialists, but they often dedicate their time to searching for on-market deals, or they spend their time fielding calls, receiving inquiries from individuals like me who are actively assembling these deals and presenting them to the companies—all neatly packaged with the appropriate development structure.
When discussing land development, it's natural to inquire about averages like size and return on investment. However, the variability in land deals makes it difficult to provide specific averages. Each deal is unique, and developers have different capacities and preferences. For instance, one might focus on small projects with just five lots, while another seeks out developments with 50 lots or more. Therefore, it's not practical to label a deal as too small or too large outright—it all depends on the specifics of the property and its location.
In regions like the inner-Portland area, even smaller infill projects on lots around 15,000 square feet can be highly desirable due to their potential for subdivision in sought-after neighborhoods. These smaller parcels can be excellent opportunities for those looking for projects of that scale.
The key to finding the right fit for any land development project lies in its pricing and structure. If a deal is set up correctly and located in a desirable market, there is likely a developer suited to its specific characteristics. Essentially, for every property, there can be a developer, as long as the deal itself is sound
VestRight, established in 2019 by Cody Bjugan and his partner David Hill, was created with a clear and profound purpose. The program aims to share the significant expertise and insights they have gained from nearly two decades in the land development industry. Both founders saw a unique opportunity to impart their knowledge in a field where detailed educational resources were scarce.
The core mission of VestRight is to genuinely empower individuals by teaching them the intricacies of land acquisition and development—a niche yet crucial area of real estate. Unlike typical real estate courses, VestRight offers an innovative approach by focusing on strategic land deals that can yield high returns without the need for substantial initial capital.
Cody and David's vision for VestRight goes beyond merely teaching real estate tactics; it is about building a legacy of knowledge and empowerment. They are driven by a commitment to personal growth and development, values deeply embedded in the philosophy of their program. This dedication to growth is not just about business success but also about making a meaningful impact on the lives of their students.
VestRight stands out in the marketplace because of its founders' authenticity and integrity. They are not just educators but seasoned land developers who practice what they preach, ensuring that the knowledge they share is not only theoretical but tested and proven in real-world applications. Their approach is straightforward and transparent, appealing to those who value sincerity and genuine opportunity in the realm of real estate education.
Participants in this program are not limited to completing just one deal; they can engage in multiple deals simultaneously. The strategy emphasized in this course is geared towards building substantial, long-term wealth, often described as legacy wealth, rather than quick financial gains. This approach is not suited for those seeking immediate returns, like a quick paycheck within 60 to 90 days. Instead, it is designed for individuals who recognize the potential in land development as a prime opportunity within the real estate sector but may not know how to start.
The course introduces participants to significant financial opportunities in development, providing a pathway to get involved without requiring a large initial capital investment. Moreover, while the program highlights that some deals might take up to 15 months to reach fruition, it also offers strategies for earlier exits. These strategies allow for earlier paydays in certain scenarios, with different exit points that can be seen on the Allied Development Partner Referral Page - https://allieddev.com/land-referral-program. The key to success in this program, and indeed in any endeavor, lies in filling the funnel—keeping a steady flow of potential deals coming in. This enables more frequent transactions and quicker financial returns, catering to a variety of financial and strategic goals.
Finding out what land is zoned as is relatively straightforward. You should start by contacting the local governing jurisdiction of the property you're interested in. Most jurisdictions have an official website where they publish their zoning codes, which are accessible to the public.
However, it's important to understand that dealing with zoning involves more than just identifying the current classification. The process can include considerations of rezoning possibilities, comprehensive growth plans, and other regulatory factors. These elements are complex and require a deeper understanding, which is why they are covered extensively in our course.
We delve into topics such as how to determine if agricultural land can be rezoned to residential, and how to interpret and utilize comprehensive growth plans. The course equips you with the necessary strategies to effectively find and evaluate potential deals. So, while you can obtain basic zoning information from your local jurisdiction's website, our program will guide you through the more intricate aspects of zoning and land use planning.
A Feasibility Study, or what we also call our "Underwriting Process," is a comprehensive process integral to residential land development, significantly more in-depth than the typical 10-day inspection period associated with home buying. This study usually extends to about 90 days and involves a detailed checklist covering a multitude of aspects necessary to determine whether a piece of land is developable.
Key elements such as zoning, utilities, overlays, topography, and the transportation system are all scrutinized during this phase. Additionally, the study includes layout planning for subdivisions, preliminary applications with jurisdictions, cost estimating, Phase One environmental studies, traffic analysis, and boundary surveys among other evaluations.
This in-depth process is essential for making informed decisions about land development and is comprehensively covered in our course. Importantly, the feasibility study can be managed remotely, allowing for a flexible lifestyle. Utilizing third-party consultants to handle much of the groundwork enables developers to maintain their freedom and manage projects from anywhere—be it Mexico, Hawaii, or elsewhere. This aspect underscores the independence and potential financial efficiency the land development industry can offer, contrasting sharply with professions where earnings are directly tied to active working hours. Thus, understanding and conducting a thorough Feasibility Study not only equips you with critical development insights but also supports a lifestyle of flexibility and autonomy.
The financial outcomes of land development deals vary significantly across different regions due to economic conditions of each area. For example, a 50-lot deal might generate a $500,000 return in the Portland area, which is considered a strong return locally. However, the same deal could yield up to $3 million in Southern California due to the higher economic scale, or just $100,000 in Ohio where the economic scale is different.
This variability is a fundamental aspect of the business, as the calculations are based on percentages that are inherently relative to the local market values. It's not a matter of comparing one coast to another, but rather understanding the nuances from one jurisdiction to another, even within the same metropolitan area. The value of a finished home and the corresponding lot significantly influences the worth of the raw land and the potential profits from its development. Thus, the key to success in land development is understanding and applying these principles across different markets, leveraging the mathematical aspect of the business to adapt and capitalize on the opportunities presented by each unique locale.
Finding developers for land development projects is generally straightforward and becomes easier as you expand your professional network. In any given market, you might identify 10 to 15 developers readily available. By understanding the specific preferences and requirements of these developers—such as the types of projects they are interested in, preferred sizes, and their ideal locations—you can efficiently match them with suitable projects.
For example, when assembling deals, you might identify a project that aligns well with a large national developer's goals or know that a smaller local project would be perfect for a developer like "John" who specializes in such ventures. This familiarity with your network's preferences ensures that when you present a project, you are targeting the right developers who are most likely to be interested.
The process might seem daunting initially, often due to the fear of the unknown, which is a common challenge. However, once you start engaging in deals and building relationships within the market, this apprehension quickly diminishes. You'll find that identifying interested developers becomes second nature, allowing the process to flow smoothly and naturally. As you gain more experience and become more attuned to the market dynamics, matching projects with developers becomes an intuitive part of your business strategy.
The philosophy behind charging for a real estate course is rooted in the belief that value and transformation come through commitment. Providing the course for free might lead participants to undervalue the content, potentially relegating it to being just another unutilized resource, like an unread book on a shelf. The course fee acts as a barrier to entry, ensuring that only those truly committed to learning and applying the knowledge will enroll.
This approach is based on the idea that people tend to engage more deeply and benefit more significantly when they have made a personal investment. Therefore, the course is structured to require a financial commitment, reinforcing the importance of the education being offered and encouraging students to take full advantage of the resources provided. This strategy is not only about ensuring the seriousness of the participants but also about maintaining the integrity and effectiveness of the educational experience, fostering real growth and success in the field of real estate.
The double-close, or simultaneous close, is a well-established technique used across various real estate transactions. When integrated with land development strategies, it highlights its unique value. Though the process itself may not appear particularly dramatic, its effectiveness is proven in how it facilitates significant project advancements.
This method has been around for a long time in real estate but is often overlooked or misunderstood. Its innovative application in land development lies in enabling developers to exit deals efficiently. By implementing a simultaneous close, a developer can utilize the buyer's financial resources and time commitment to transform raw land into a developable subdivision. This strategy allows the developer to maintain control over the project while minimizing personal financial risk and involvement, thus streamlining the development process.
The role of real estate agents is pivotal, yet many agents are not familiar with the nuances of handling development land deals. They often lack the specific knowledge required to accurately price and structure these transactions, typically relying on standard forms and contracts that are unsuitable for such deals. The residential development industry operates according to its own unique set of rules, and standard contracts do not adequately address the complexities involved.
The deficiency in agent expertise primarily stems from a lack of specialized education in the field of land development. Addressing this educational gap is crucial, which is why programs that teach the vital elements of contracts for development deals are invaluable. Such programs significantly enhance the value and effectiveness of professionals in the industry.
Moreover, ensuring the potential of a land investment is comparable to verifying a diamond's authenticity. Developers informed about the intricacies of land development will not finalize a purchase at a development value unless the project has received the necessary subdivision approvals. If a property owner desires a quick sale, the transaction can proceed based on the land's current as-is value, which might be significantly lower than its potential value when developed. Development contingencies, such as Preliminary Plat Approval and Construction Drawing Approval, are essential components taught in educational programs. These contingencies ensure that financial commitments are made only when all necessary approvals are in place, reflecting the depth and practicality of comprehensive real estate development training.
Finding developers and builders is generally one of the simpler aspects of the land development process, particularly when compared to sectors like home wholesaling. In any jurisdiction, developers are relatively easy to locate as they are established businesses striving to be visible and accessible. Unlike searching for private investors in the wholesaling houses sector, which can often involve negotiating deals under market value, identifying developers involves interacting with legitimate companies that are openly operating in the market.
Allied Development notes that knowing developers is crucial, but having a strong network and understanding market dynamics is not enough on its own. To successfully put together deals that yield significant returns, it's essential to have a comprehensive understanding of how the development process works. In areas experiencing growth, particularly in suburban regions where residential development is expanding, finding developers interested in new projects is straightforward. However, challenges may arise in remote areas where development interest is minimal. The key is to focus on areas with growth potential, where developers are actively seeking opportunities.
VestRight offers a detailed segment of their course specifically designed to teach land valuation, a topic that can be quite complex compared to valuing residential properties. Valuing a home is relatively straightforward with tools like Zillow, which provide access to recent sale prices and comparables in the area. However, land valuation requires a more nuanced approach due to the lack of direct comparables.
The course introduces several techniques to estimate the value of land. One key method involves a process VestRight refers to as “magic math,” where participants learn to reverse-engineer the valuation process. This technique starts with the current selling prices of homes and works backwards to determine the value of the undeveloped lot. Furthermore, the course teaches how to calculate the potential number of buildable lots a parcel might yield and then multiply this figure by the estimated value per lot to arrive at a comprehensive valuation. This approach equips participants with the tools to effectively assess land value, even in scenarios where traditional comparables are not available.
VestRight focuses primarily on residential land development. The course outlines why developers often specialize in certain areas, such as residential or commercial, and tend to maintain focus within their expertise. This specialization allows processes to be easily repeatable, enhancing efficiency and expertise in a specific sector of land development.
There is some overlap in concepts applicable to both residential and other types of development, such as commercial or industrial, significant differences emerge, particularly in areas like land valuation and determining the highest and best use of a property. These distinctions are crucial when branching into commercial development, where the dynamics can vary greatly from residential projects.
The choice to specialize in residential development is driven by the fundamental need for shelter, which is universally essential, unlike commercial spaces such as strip malls. This basic need for residential space underpins Allied Development's focus, aligning with practical and fundamental economic principles that support a steady demand in the housing market.
To prevent a developer or builder from circumventing you and going directly to the seller, it's crucial to establish trust and exercise strategic caution in your professional relationships. However, it's also important not to be naive about the intentions of others. One effective strategy is to be selective about when and how much information you reveal about a potential deal.
For instance, if you are still in the preliminary stages of securing a deal and want to gauge interest from potential developers, consider discussing the opportunity in general terms. You can mention the general area or the size of the lot without revealing specific details that could lead them directly to the property.
If you have assessed the value of the property and are confident in the deal's specifics, it may be wise to wait until you have a formal contract in place with the property owner before engaging with developers. Once a contract is executed, the property is secured under your name, making it difficult for others to bypass you and negotiate directly with the seller.
While there's no one-size-fits-all answer, as strategies can vary depending on the specifics of each deal, careful planning and controlled disclosure can effectively protect your interests. Through Cody's 20 years of experience in the field, careful management of information and timing has proven to be a reliable way to safeguard against being circumvented in property deals.
No. If you're going to bring a developer into the deal, you don't need to bring on any independent third-party consultants before bringing the developer, assuming that you're looking to exit sooner rather than later in the development timeline.
At Allied Development, we emphasize that the approach to land acquisition is designed to be flexible, allowing for minimal overhead and scalable operational expenses. This business model is structured so that individuals can start and grow at their own pace. Initially, one can operate effectively as a solo entrepreneur without the need for a full team, expensive software, or hefty subscription services. The business can be run on a shoestring budget, making it accessible to those just beginning in the industry.
Compared to the average startup costs for most businesses, which can quickly escalate to tens of thousands of dollars, becoming a Land Acquisition Specialist requires significantly less financial outlay. Minimal expenses might include basic marketing materials like business cards, maintaining a website, and occasional mailings, but substantial overhead such as office space and a large staff is not necessary. Allied Development themselves maintain a lean operation, focusing on efficiency and high returns without the complexities and costs associated with managing a large workforce. This approach not only keeps the business agile but also maximizes profitability, demonstrating that substantial returns can be achieved even with a modest setup.
At Allied Development, rezoning has been part of past projects, but it's not the primary focus. Unlike initiatives that involve revitalizing a large, dilapidated downtown area by collaborating with developers to construct skyscrapers, Allied Development's expertise lies in identifying and assembling deals for raw land in urban growth areas with residential development potential. Occasionally, smaller infill projects are considered, but with the passage of time, there has been a growing preference for larger-scale deals. In earlier years, the approach was more varied, encompassing small, medium, and large projects. However, Allied Development generally steers clear of redevelopment, rehabilitation, and minor division projects, such as splitting a single parcel into two lots, though these opportunities are certainly viable within the broader land use process that is covered in their educational programs.
When starting in the land development world without an existing network, one might worry about not having the right connections or not knowing whom to call. However, this concern is addressed comprehensively in our training courses, which teach participants how to build a network and find developer buyers. In fact, finding developers is often one of the simpler aspects of the process.
In the development industry, the merit of a deal does not hinge on the reputation of the person who brings it. Developers evaluate opportunities based on the potential returns and the correctness of the deal's structure. If the deal is sound, it doesn't matter if the person presenting it is a newcomer or not well-known in the industry; if the numbers add up and the deal is structured properly, it will likely be considered.
The Land Acquisition Specialist is in a position of control if they have a properly structured deal. Developers are essentially looking for well-prepared opportunities—they are ready to "eat" if you "feed" them correctly. It's akin to preparing a meal; not only do you need to know what the developers want, but also how they prefer it served.
In contrast to sectors like home wholesaling, where finding bona fide buyers can be challenging due to saturation and many participants merely circulating deals among themselves, finding developers in land development is straightforward. Developers who handle a significant volume of transactions are readily identifiable and accessible through various channels. This ease of finding developer buyers is a key advantage in land development compared to other areas of real estate investment.
VestRight teaches a real estate strategy that can be fully executed from home or any remote location, making it exceptionally flexible and accessible. This approach stands in stark contrast to traditional real estate roles like fix-and-flippers or agents who typically need to be physically present to inspect properties, manage renovations, or conduct open houses within a specific local market.
With VestRight's method, the physical presence at a property site is rarely necessary. For instance, all the data required to assess a property’s development potential and value can be gathered using online resources, maps, and communications with jurisdictional planners—all from the comfort of a home office. This not only eliminates the need for extensive travel but also opens up the possibility for anyone with an internet connection and a phone to engage in land development, regardless of their geographic location.
The entire business model of VestRight is based on virtual operations, utilizing advanced technologies and software to enhance efficiency. The traditional concept of "driving for dollars" — physically scouting for properties — is viewed as outdated and inefficient within this framework. Instead, the focus is on leveraging digital tools to manage and develop projects from anywhere, whether that's a home office in Arizona or a vacation spot. This modern, tech-driven approach not only broadens the scope of potential business activities but also supports a more flexible lifestyle, allowing participants to manage their projects remotely while maintaining or even enhancing productivity.
Approaching the seller is a fundamental yet straightforward part of the VestRight strategy. Initially, the focus is on identifying properties with promising development potential. Once these properties are targeted, the next step involves determining ownership and making direct contact. Although Allied Development incorporates monthly mailings as part of its outreach, the majority of successful transactions begin with simply finding out who owns the property and initiating a phone call.
The typical initial conversation might start with something like, "Hey, I believe your property has potential for development. Would you be interested in discussing a possible sale?" From there, the dialogue can develop based on the seller's response.
Yet, the crucial aspect of this process is not merely making contact but having a deep understanding of what to discuss and how to structure the deal effectively. It's possible to reach many property owners who express interest in selling, and you might even manage to draft an agreement. However, if that agreement reaches a developer and is quickly dismissed due to poor structuring or unfavorable terms, it reflects a lack of expertise.
This is where the VestRight program becomes invaluable. It's designed not just to teach participants to identify and contact property owners but to thoroughly understand the entire process of land development. This includes structuring deals correctly, valuing properties accurately, and preparing proposals that developers recognize as professional and viable. Mastery of these skills ensures that when a deal is presented to a developer, it is met with approval and enthusiasm, leading to successful transactions rather than wasted efforts.
Choosing a geographical area to start land development involves strategic considerations, which are central to the VestRight program. Unlike other land strategies that focus on acquiring any type of land cheaply and selling it for a modest profit, VestRight emphasizes targeting land with significant development potential, particularly in growing urban areas.
The VestRight approach is not about buying land at a low price just to turn it around quickly for a small profit. Instead, it involves identifying parcels in regions experiencing residential growth, where new homes are being built, and where there is a movement of people towards major metropolitan areas. These are the areas where national builders are active, creating opportunities to put together deals that not only promise but often deliver mid to high six-figure returns, and sometimes even more.
VestRight teaches how to pick these promising locations based on urban growth trends and the construction of new subdivisions. The focus is always on land that offers residential development possibilities—not just any land, but parcels that provide real value due to their potential for development. This strategic selection is what enables the participants of VestRight to structure deals that are attractive to developers, who are prepared to pay well above the raw market value for land that is presented as a well-structured opportunity.
The key to success in this business model is not finding cheap land but understanding how to evaluate and structure deals in desirable locations where people want to live. This comprehensive approach ensures that the land acquired is not only viable for development but also that it meets the needs of the community and the market, maximizing the potential returns from each transaction.
One of the biggest advantages of using a simultaneous close, also known as a double close, in land deals is that it allows you to maintain a central role in the transaction, thereby protecting your position and interests. This method ensures that your fee remains undisclosed to both parties involved, adding a layer of privacy to your financial gains.
When you're just starting in the land development business, you can indeed achieve success and solid paydays by assigning or referring deals to developers like Allied or others. This provides a valuable opportunity for everyone involved to win, regardless of experience level. However, simply assigning a contract might not secure as large a fee as completing a transaction through a simultaneous close, where you wait until closing to receive payment. This is because, with a simple assignment, you lose some control over the deal once it's handed off, potentially reducing your influence and assurance of getting paid at the closing.
By choosing a simultaneous close, you ensure you remain an integral part of the deal until the very end, safeguarding your ability to secure a larger payday. This method offers a significant advantage, particularly for those new to the field, providing them with a more secure way to handle transactions and optimize their earnings.
