How We Bought Land For Our Airbnb Off-Market

In the current real estate climate, buying property can be an uphill battle with soaring inflation and interest rates. However, my wife and I successfully purchased our dream property off-market in Northern Michigan by attempting a few non-traditional ways of purchasing. In today's post, we'll walk you through our process of finding absentee landowners, the power of handwritten letters, and some crucial caveats to consider before buying vacant land and embarking on your own new home build journey.

Focus On A Specific Area.

I know, I know. This one seems obvious, but it's important. We are firm believers that before you decide to purchase a piece of land, you should become an expert in that area and the surroundings. What are traffic patterns like, nearby neighborhoods, what townships are in the area and how do their zoning regulations differ? All of these things are important to consider when looking at land to purchase. For us, Bellaire, Michigan, was a natural choice. It had been our go-to destination for many years, so we were already familiar with the lay of the land. We had our favorite spots and areas we weren't particularly keen on. Familiarity with the region made a world of difference in making informed decisions about purchasing land.

Finding Land Owners.

The next step for us was identifying absentee landowners in the area. Absentee landowners are essentially individuals who own a piece of property, but reside elsewhere. These types of owners often present unique opportunities, especially when it comes to generational land passed down through families. To find them, we used an app called OnX. It's an app originally designed for hunters to locate property lines and allows you to find out who owns specific parcels of land, where their taxable address is, and the name of the owner. If the taxable address differs from the land's actual address, we know we've stumbled upon an absentee landowner. While OnX is a paid app, there are a few other free alternatives, like LandGlide, that offer similar functionality and can also help you in find absentee landowners.

Letters.

Once we identified a few parcels that we liked and were owned by an absentee landowners, we decided to approach potential sellers with personalized handwritten letters, which we felt would stand out in a world that is so digital nowadays. This approach felt more genuine and thoughtful, particularly for the older demographic often associated with long-held properties. Though it took a couple of weeks, our dedication culminated in a successful off-market deal, securing the property of our dreams without facing competition on real estate platforms like Zillow or MLS listings. While cold calling can feel intimidating, we find that writing handwritten letters and then following up with a phone call after is a warmer approach.

When purchasing vacant land for an airbnb, it is important to consider the additional costs associated with buying vacant land. Clearing trees, constructing a driveway, and connecting to utilities represent substantial "soft costs" that should be factored in. Moreover, buying land as a down payment for a new build may not always guarantee a smooth appraisal process, as we'll delve into in future blogs.

Throughout this journey, we aim to remain transparent, sharing financial breakdowns, forecasting, and the nuances of the Airbnb Niche.  By targeting absentee landowners, employing personalized approaches, and offering genuine connections, you too can discover unique off-market opportunities. We hope this is helpful for anyone considering doing the same! 

Check out our youtube video explaining this in more detail here: https://youtu.be/cVzsE48kkT8