When I tell people that I make hundreds to thousands percent ROI on my land deals, their jaws hit the ground. In any other business 100% ROI seems like a moonshot. How are we able to get those kinds of returns over and over again? One word: arbitrage. As land investors, we know how to leverage asymmetries that give us an advantage when negotiating with sellers and buyers. While we often do this intuitively, there's actually science behind it. And today's episode of The Land.MBA Podcast, we're going to go deep on four different inefficiencies that you can take advantage of, to pay less and charge more for your properties. I am the kind of guy who has a reputation for negotiating at Walmart. I do like a deal. But when it comes to investing you need much more detail to be successful. There are many analytical models to arrive at your pricing. The first thing I typically look at is activity. There has to be some good activity around raw land. Because if there's not, nothing we're not going to do anything to change that. You need buyers! No matter how cheap you buy it, it doesn't matter if there's no demand. When you do find an area with buyers you need to find out who those buyers are. If all of those buyers are locals, that's not a good scenario for us as land investors because they're going to understand the value of the land better than we will. And our business is predicated upon having an information advantage over both buyers and sellers with regards to price. An arbitrage is where we can get something cheaper than the true value of it. And that usually happens for a short duration because the market eventually figures it out and closes the gap. But as long as that arbitrage is maintained, we can make a spread. So what drives an arbitrage? I’ve boiled it down to four inefficiencies.