What I’m thinking about: Breaking my own rule about cross-posting content because this recent Land Pricer update is directly related to the future of our SLC funding biz.
Quick note: I won’t be routinely swapping content between newsletters, but this particular article (with some new edits) kicks off our public Land Pricer launch story, and I’m proud of how it turned out. (If you already read this, please indulge me this week!)
To add, the future will tell whether we’re able to figure this software approach out, but I am certain this is the direction the technology is heading.
And if you want routine Land Pricer updates, subscribe separately here. (Even if you never use the software, I’m certain our updates will improve your own team’s due diligence. No gatekeeping.)
Here’s what happened when we completely scrapped our first attempt…
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The Brutal Truth
Four months ago (originally was supposed to be end of 2024, doh…), I promised you the most reliable land pricing tool on the market.
What we shipped was 45-60+ minutes of manual data entry hell, per property review.
Our beta users (mostly friends of mine) were polite, but honest, and the core feedback was that the “UX generally sucked”.
And would my own team use the initial version of the product? Only if I forced it down their throat.
We missed the mark completely. Paid a HUGE ignorance tax, both from my own wallet (to the tune of ~$86K), and from a time perspective.
What We Got Wrong
The original Land Pricer required YOU to answer 50-100+ technical questions about every target property (and associated comps).
Potential neighbor encroachment. Flood zone impact, and whether improvements were feasible. Contour in buildable areas, in relation to neighbors. Recreational vs. residential potential.
Extremely accurate…but all manual. All defeating the purpose of having software in the first place (and ‘AI’ in our company name, no less).
No busy operator (including myself) wants to spend an hour analyzing one property when they’re reviewing 5-10+ deals per day.
The Complete Rebuild
So we went back to the drawing board. Based on feedback, we knew we needed to get the total time to review a property dramatically lower.
If it took longer than 10 minutes, that was a non-starter. Ideally closer to 5 minutes or less (and continue to shave that down as the underlying tech improved).
All while still earning the title of the most reliable land pricing tool on the market.
Here’s what the new Land Pricer actually does:
- AI image analysis handles 30+ core property assessment questions (95%+ documented accuracy, across diverse land parcels all over the U.S.)
- Automated comp selection and ranking based on comp type, sold date, and distance
- Sophisticated comp scraping that adjusts target property pricing based on a multitude of factors from comps, including days on market, price cuts, and Views/Saves ratios for active comps
- Dynamic pricing calculations for depending on factors like what percentage you offer the seller, and anticipated closing costs
- COMPLETE analysis in 5-10 minutes max instead of 45-60+ minutes
The user input is simplified and streamlined and works in parallel with our AI backend. No time is wasted.
The Real Test
The ultimate validation: If we won’t use Land Pricer in our Serious Land Capital funding business, we won’t ship the product.
Our land funding operation maintains 41% net operating margins in this general RE down cycle (Note: RE is hyper-local, always do your research).
Those numbers don’t happen by accident – they happen because we are OBSESSED with due diligence, bordering on religious devotion to downside protection.
As Sharran Srivatsaa says, “Amateurs automate for efficiency. Professionals automate for accuracy.”
We are dead-set on automating for accuracy for our own sake, and instilling Land Pricer with industry-leading underwriting principles from Serious Land Capital, so you can get margins like we do.
For max clarity: We’re not just building software, we’re sharing the exact underwriting system that generates our (very) profitable returns.
What’s Next
I’ll be previewing the rebuilt Land Pricer AI at UnConference this August 7-9th with 60+ land operators.
Our engineering team has been working overtime to deliver this product for public launch by the end of August. (I’ve obviously gotten launch dates wrong in the past, apologies, so we are trying to be extra conservative here.)
Between now and then, I’m going to walk you through exactly how we rebuilt this thing (if you subscribe here), and our rationale behind each feature.
Why certain features made the cut. What we automated vs. what still requires human judgement. How the AI actually works behind the scenes. What we want to do in the future (for the RE agents who read this, we want to replace CMA’s entirely…we all know they can be done better, reply to me if you have any ideas!)
The land market is tough right now (in most areas of the US). Margins are tight. Mistakes are expensive. Competition is at an all-time high.
That’s exactly when you need tools that actually work, and keep you in the game.
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Want personal access to the EXACT formula Serious Land Capital uses to achieve 41% net margins? Land Pricer launches publicly at the end of August with the same underwriting system that’s generated our documented returns. Get early access, and preview updates:
P.S.Did you see Microsoft’s article on how impacted your job/skillset is from AI? Where do you slot in? Where does your team? …How many ‘dredge operators’ can the economy support?
