The Surprising Land Investing Strategy Fueling This Young Investors Journey to Real Estate Riches

Raising Private Money with Jay Conner

Ever wonder why landowners don't list their properties themselves?

Dan Haberkost & Jay Conner reflect on this, affirming one lesson: Never second-guess people's choices. There's profit in understanding different perspectives.

In the world of real estate investing, having access to capital is as crucial as identifying the right property. Jay Conner, an authority on private lending, recently shared invaluable insights on his podcast, 'Raising Private Money,' featuring an interview with Dan Haberkost, who has raised over $2 million in private funds and left his traditional job by the age of 23 to pursue real estate investing full time.

The Genesis of a Real Estate Mogul

At 16, Dan Haberkost was already managing a farm and rental properties, dealing with tenant issues, and learning the harsh realities of running older real estate. This early foray into property management taught him the types of real estate he didn't want to own. By 21, he purchased his first duplex and soon relocated to Colorado to expand his portfolio, quickly realizing the significance of having financial backing for investing.

Front Range Land: A Model of Arbitrage

Dan Haberkost detailed his venture, Front Range Land, which focuses on buying land at a discount and then reselling it, mostly through direct marketing efforts. He emphasized the distinction between his active business, which is not investing per se but a means to an end—an arbitrage business aimed at generating funds for further investment into his preferred buy-and-hold asset classes.

Understanding the Investor Mindset

Dan Haberkost advises new investors against short-term thinking. Plans like hosting a real estate group might not pay off immediately, but they establish credibility and authority, attracting long-term business connections. He stresses maintaining a solid reputation and ensuring lenders are always made whole, even if it results in personal loss.

Raising Private Money: A Balancing Act

While Sean advocates securing deals before having all the funds lined up, given the abundance of investment-ready cash, Jay Conner takes a more cautious approach, advising to secure funds first. Both agree that educating potential lenders on Private Money and self-directed IRAs is paramount, stressing that teaching and leading with a servant's heart can build trust and open funding pathways.

Land Investing: Inefficiency Equals Opportunity

Investing in land can be more efficient due to its market inefficiency. Unlike residential properties or multifamily units, land is often mispriced and not well understood, allowing for profitable arbitrage opportunities. Dan Haberkost uses direct marketing to reach landowners, capitalizing on their apathy rather than distress, and selling the property for a profit on the multiple listing service.

Looking ahead, Dan Haberkost and his partner have launched GroundUp Partners, offering capital for land deals in response to limited lending options for this asset class. They're now raising funds to grow this endeavor, showcasing Dant's keen insight into realizing where the demand lies and fulfilling it to shape his real estate future.

Investing in Long-Term Success:

"It's always hard to make the investments into something like hosting a real estate group, whether it's time or money, ... but down the road, you're gonna be really glad you did them." - Dan Haberkost

Visit https://www.JayConner.com for more information on Private Money benefits in real estate, and keep an eye out for future enlightening episodes from Jay Conner, dedicated to helping real estate investors climb to new heights through strategic private funding.

Questions discussed in this episode:

• What specific types of land does Dan focus on for simple subdivision, and how does the resale process work&