How do you turn a parcel of “junk land” into a profitable investment?
We’ve talked about flipping products for a profit and real estate investing before. We’ve even talked about land investing.
But never like this.
Wayne Seminoff from JunkLandIntoGold.com specializes in finding unloved, unbuildable lots — then he fixes the issues — and resells them for up to 100x his initial investment.
Tune in to Episode 629 of The Side Hustle Show to learn:
how Wayne flips junk land into profitable property
how to clear title issues and solve access problems
how to turn unbuildable lots into valuable assets
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The $1,000 to $400,000 Flip
Generally, junk land is junk because you can’t build on it.
Maybe they have no sewer or no septic. Maybe they have title issues. He also deals with red tape at City Hall to overcome those issues.
As Wayne puts it, “I can take $1,000, buy a piece of junk land at a tax auction…and then sell it as a buildable lot for $400,000.”
His journey was unconventional, to say the least.
While attending an auction for dead people’s belongings at King County Morgue, he met another frequent bidder. The bottom line is that this guy owned a thousand pieces of junk property that he’d been buying at the tax sales for 10 years.
While Wayne had been working in real estate at that time and knew how hard it was to fix properties when they had problems.
So they agreed on a partnership where Wayne would work on fixing the problems with these properties in exchange for half the profits.
And that’s where he really honed his skills.
The Issaquah Gold Mine
Wayne bought a property in Issaquah, a hot area with about a half-acre lot with water, sewer, power, and road access, right across the street from Target, and he paid $1,000 for it.
The reason he bought it for $1,000 is the guy who had owned it for 20 years couldn’t sell it to anybody because he had a title problem—he couldn’t get a clear title from the title insurance company.
So Wayne called him before the tax sale and offered to buy it for $500, but the owner asked for $1,000 instead.
Wayne agreed, took the land to his attorney for a quiet title process, which took four and a half months and cost him $15,000 in legal fees.
Now, that $1,000 property is worth $500,000, and Wayne’s total investment was just $16,000.
Understanding the “Don’t Wanters”
At the core of Wayne’s business model is the concept of “don’t wanters.” These are property owners who, for various reasons, have no interest in keeping or developing their land.
They might be heirs who inherited unwanted property, divorced spouses eager to get rid of shared assets, or simply individuals overwhelmed by the challenges of owning problematic land.
Wayne explains, “When they don’t want it, that means they don’t care to do anything on it. They don’t even want to call a listing agent and say, ‘Hey, you know, see if we can get [a better offer] for it.’”
These don’t wanters don’t know it could be worth a million because they see any barrier to them as a final barrier.
According to Wayne, these people are shortsighted and don’t have the desire to look beyond the barrier.
This lack of motivation often leads these owners to sell their properties for far less than their potential value—a situation that savvy land flippers like Wayne can capitalize on.
Finding Potential Properties
Wayne’s process for finding potential properties starts with county tax sale lists. These lists, often available online, show properties that are delinquent on their taxes and at risk of being auctioned off. Wayne focuses on properties with the lowest amount of back taxes owed, as these often represent the best opportunities for profit.
He uses websites like Bid4assets.com and RealAuction.com to gather information about upcoming auctions.
For properties in King County, Washington, Wayne uses the county’s IMAP system to gather detailed information about each parcel, including utilities, access, and topography. This information helps him assess the potential of each property and identify any issues that need to be resolved.
Wayne’s Property Selection Process
When evaluating properties, Wayne follows a systematic approach:
Focus on the cheapest properties (those with the least amount of back taxes owed)
Look for out-of-state owners, who are more likely to be “don’t wanters”
Visually assess the lot using online tools
Check for utilities (sewer, water, power)
Determines how to make the property buildable
It’s worth noting that not every deal is a winner. Wayne estimates that out of every 10 properties he buys, he might make a killing on one, some money on two or three, and break even or lose money on the rest.
But when the wins are big enough, they more than make up for the losses.
Strategies for Making Unbuildable Land Buildable
Wayne has developed several strategies for turning seemingly worthless parcels into valuable, buildable lots:
Clearing Title Issues
The Issaquah example applies here, where he worked with a skilled attorney to clear the title through a quiet title action, eventually turning a $1000 property into a buildable lot worth $500,000.
Solving Access Issues
Wayne dealt with a landlocked property in Bellevue, Washington that had no legal access, despite a driveway running past it. He initially offered the neighbor $10,000 for an easement, but the neighbor demanded $400,000 instead. After suing for access, Wayne won the case, securing the easement for free, along with $10,000 in attorney fees, and now his lots are worth a million dollars.
Addressing Lot Size Issues
Wayne faced a challenge with city regulations regarding a 2,800 square foot lot in Bellevue. The building code prohibits construction on lots under 3,000 square feet, leaving Wayne just 120 feet short. After studying case law and presenting examples where cities were sued for similar situations, Wayne now has the option to sue the city if they deny his request to build.
Creative Septic Solutions
For small lots without sewer access, Wayne has developed techniques to install septic systems that meet requirements even on lots traditionally considered too small.
Navigating City Bureaucracy
A crucial skill in land flipping is the ability to work effectively with city officials. Wayne’s approach is to view cities as potential allies rather than adversaries. He starts by asking for help at lower levels and works his way up the chain of command if necessary.
Wayne shares, “I go in there and I ask people to help me and I say, ‘Hey, I got this unbuildable piece of property. Is there any way I can build on this?’” He’s found that planning directors, in particular, often have creative solutions to seemingly insurmountable problems.
His philosophy is simple: “If they’re saying no to you, they’re lying to you. If they say yes, they’re telling you the truth.” This mindset keeps him persistent in finding solutions.
Selling Improved Properties
Once Wayne has resolved the issues with a property, he typically sells it at one of two stages:
After securing a building permit
After getting city agreement that a permit will be issued
His pricing strategy often involves offering a slight discount for a quick sale. For example, if a property is worth $500,000 with a permit, he might sell it for $400,000 without the permit to expedite the sale.
Wayne emphasizes the importance of working with experienced land brokers who understand the unique challenges and opportunities of raw land. As he puts it, “You have to have somebody who can say, well, no, it’s not junk. You can actually put a 10-story building on it.”
Mistakes and Surprises
Wayne owned a narrow lot on Mercer Island with a lake view, which would have been valuable if he could build on it. However, the lot’s narrow width required a variance for smaller setbacks, which the neighbors opposed, leading the city to deny the request.
Later, the next-door owner discovered through a title company error that they had mistakenly been deeded Wayne’s property 20 years prior.
Rather than compensating Wayne, they sued for adverse possession and partition, forcing the sale of the property. Wayne ultimately received $85,000, but after legal fees, he lost about $75,000 on the deal.
What’s Next for Wayne?
At 81 years old, Wayne is focusing on sharing his knowledge with younger generations.
He’s developed an educational program to teach others his strategies and written a book called Junk Land Into Gold.
(Ready to turn junk land into gold? Wayne is offering 25% off his Junk Land Into Gold program with promo code FUN).
Wayne’s #1 Tip for Side Hustle Nation
“Mistake your way to success.”
Episode Links
JunkLandIntoGold.com
Bid4assets.com
RealAuction.com
Book: Junk Land Into Gold
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