Ep 498: Why Are Agents Bad At Land

In this conversation, the Anthony & Daniel discuss the challenges real estate agents face when pricing and selling land, highlighting a lack of understanding and expertise in this area. They note that agents often rely on the seller's advice or lack comparable sales to accurately price land, leading to overpricing and misrepresentation. The discussion also touches on the subjective nature of valuing land and the importance of agents understanding their market and improving their knowledge to better serve their clients and make informed pricing decisions. Despite the challenges, the conversation acknowledges the existence of competent agents who excel in their roles, emphasizing the need for education and better practices in the industry to enhance the overall quality of service. Lack of Understanding in Pricing Land (0:18-0:36): The conversation highlights a key issue with real estate agents not fully understanding how to price land properly. They often rely on the seller's advice, leading to overpricing due to a lack of comparable sales data and a fundamental understanding of the land's value. Subjectivity in Valuing Land (4:50-6:00): The speakers discuss how the valuation of land is highly subjective and can vary significantly based on improvements, the potential for development, and the specific characteristics that differentiate one parcel from another. The Importance of Agent Expertise and Education (7:19-7:40): The need for real estate agents to have a deeper understanding of the land market is emphasized. It's suggested that agents should seek counsel or conduct more thorough research to accurately price and sell land. Challenges in Communication and Expectation Management (10:01-11:58): The conversation concludes with a humorous yet insightful analogy about email management, underscoring the broader theme of managing expectations and communications effectively in real estate transactions and beyond. Text 📱 210-972-1842 Text 📔 "Course" to learn how to make 6 figures on one land deal. Text ✴️ "Hive" to get added to weekly meetings. Text 🍎 "Apple" to schedule a 1-on-1 call with Anthony & Daniel. Text 🛬 "Land" to join The Million Dollar Land Mastermind Submit📃 deals at https://submitbigland.com/ 🔍 Need Inbound Real Estate Leads. https://www.hiveleads.io/ 🔍 Follow Us on YouTube https://www.youtube.com/channel/UCbulcrC4WbOy5Fzu0eWzNVQ/?sub_confirmation=1 🔍 Follow Us on Instagram https://www.instagram.com/hivemindcrm/ 🔍 Check Out https://www.hivemindcrm.io/ 🔍 Check Out Our Land Mastermind https://www.milliondollarlandmastermind.com/landmastermind 🔍 Pick Up All Event Recordings here. https://thehiveislive.com/recording 🔍 Follow Us on TikTok https://www.tiktok.com/@hivemindcrm?lang=en 📍Join the FB Group https://www.facebook.com/groups/137799891494707 📍 Check us at Join Us! https://thehiveislive.com/ Help support the show. https://anchor.fm/hivmindcrm/support

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Transcript

why are agents bad at land oh what why

why'd you say that cuz we refining deals

MLS what why does that make an agent bad

at Ma or what Len you said yeah B land

yeah why is an agent B land because I

don't think they understand what they're

selling why cuz to them they take the

seller's advice to over overprice it

they might not even know the actual

price of it the cad value doesn't tell

them the price of it there's no comps to

understand the price of it they just

don't understand a high to price land

okay I get it I get it I get it I

thought this was like a disc video like

a dis truck like a disc route because

there's a lot of agents that don't don't

know what they're doing and they're

probably harmful at you know at best but

there's a lot of good agents that help

us and they're amazing and they're

awesome and they kickass at their job

and they're better than a lot of Real

Estate Investors and wholesalers true

but we're talking about the average

seller that has has their agent friend

who sells houses sell their land you

okay so tell us how that can go wrong

there's no square footage like there's

no bed and

bath paint's the best Roi you can add to

a property like it doesn't doesn't

account for

land okay so I can compare this to like

like shooting preference right some

people really like to be like a sniper

like lay on the mat for like 2 hours

and hit 1,00 acre shot like damn that's

not really fun for me right like high

volume so that's kind of the same thing

like are you taking the sniper approach

or you taking a shotgun approach and

this is where we talk about finding

desperate agents cuz I I think motivated

agents they're motivated agents so I

think there's two parts of this there

might be a smart agent who plays the

game the long game because R is

definitely not a short game it's a long

game and then you have the other agents

that don't understand what they have how

to price it how to sell it what their

end buyer looks like and they don't

understand what terms they're going to

have to take to sell that property at

that price

point yeah and and so again we made a

previous video about this Daniel could

probably tell you what number what what

the name of it was but the more you

educate your seller the more money

you're going to make and the more money

they're going to make so by so like

let's say a wholeseller is like hey I

want to get this million dollar wrench I

know it's worth three and now I'm going

to make $2 million like damn tell the

seller like hey look this thing's worth

three you want one I give you one and a

half I keep one and a half but it's

gonna take us a year s's like well year

you give me a one and a half instead of

a million yeah boom both y'all make more

money everything works out better and

you have to be a snake so same thing

like with the investors also with the

agents so the agent goes like hey they

know everything selling like the

neighbors property one acre sold for

50,000 and they're like hey you have

7,000 Acres I can get you 50 ,000 an

acre and the guy's like damn

$350

million outside of Adis

kosa damn that's a lot of money man

that's like how much the economy of Mars

is worth right now because the seller

the agent doesn't know what they're

talking about and they don't know what

they're doing but if you just tell the

seller like look sir even though your

neighbor's property sold one acre for

50,000 you have a 100 you're it's

probably worth 20 an acre you could

probably get 2 million and then we in

and we're like Hey sir do you want 2

million or do you need Fast Cash the

guy's like I just need money tomorrow

we're going to give you five next Friday

and the guy's like I'm never going to

take that yeah okay so we want to give

you 2 million but it's going to take us

10 years and the guy's

like dunzo that's a deal now but that's

something the agent needs to know on the

front end is like what is the property

property really worth and you got to

start there or you don't have a deal or

listing so how does an agent understand

what it's worth if it's not their

expertise do they seek counsel from

others do they maybe do a little more

due diligence of what price perers are

selling for the same similar tracks size

tracks like I I feel like there's a lot

of agents and we picked off those deals

off the MLS that were misrepresent not

misrepresented but they were mispriced

and and it's also not mispriced because

check this out here's here's um

everything is subjective right very very

subjective with land so you buy this

house downtown Houston we this freaking

amazing Airbnb is so beautiful like the

ghetto is like on the other side of the

street and this is the like one of the

nicest airbm I've ever stayed in Che out

the next video to see more about

that we're going to do a video about

that

okay what was I talking about how land

is subjective okay so if you think a

house is subjective right like let's say

Eric buys a house and he's like can't

bought it for 50,000 I put 50,000 in

Mike Flores says it's worth $1.99 dude

you're going make 100 Bands yes best

deal ever like let's go celebrate then

all of a sudden I look at it I'm like

dude he wants to borrow 50 grand for

that and you're like yeah I'm like nope

tell them no tell they can have it tell

him don't give us no fees you keep that

whole entire deal right and that's land

that I mean house house is a fixed price

$89 a square foot that's all it's worth

you're never going to get more than that

land it could be an area that's worth

20,000 an acre and then put in a road we

knock out the trees we make it look so

beautiful we put this awesome fence and

and and this big rock entryway and we're

like hey we think this neighborhood's

worth 29,000 an acre how could the agent

come in and tell us like y'all never you

can't sell that for 29 an acre how many

times have we heard that from an agent a

lot but the cost to improve it and the

time it took to improve it so here you

go so here you go now we're in an area

where there's nothing that matches this

asset and we think it's worth 29 and

that agent's like everything's worth 21

around here but also nothing looks like

this so you can't help me make my price

if your client wants it if you want it

if somebody wants it awesome here's the

price I don't think it's worth that it's

like an artist like well then don't buy

it right you think somebody wins a

Picasso like I mean she does look pretty

realistic but there's no way I'm going

to pay 50 bucks for that yeah right how

how old is this and now like the thing

is worth $782 trillion dollar like some

dude got it for like two tortois shells

and a box of one I they appreciate

it so everything's subjective so I don't

think it's I don't think it's malice I

think it's just like not knowing how to

do the business and then also we offer

everybody like if you have a deal we're

not legal we cannot give you legal

advice but if you have a deal and we

think we can help we will let you know

and if well we actually we need 200,000

to make it work we need 3 million from

this morning to make it work like I

don't know if I can help but send me

send it to us let's have a

look have a look land is very subjective

it's very subjective don't say it's like

it's like the good side and the bad side

it's the yin and yangang of real estate

and there's it's a lot of guess work a

lot of guess work m a lot of guess work

which it's I think that's the fun part

it's fun and it's it's risky I guess you

got to know what your risk uh tolerance

is so you say hey I'll buy it tomorrow

or next Friday but I need to in order

for me to make profit I got to throw up

some 32 units of affordable housing

like yall can just keep that one

right it's already zoned in Pro for

it that's all you play may he that one

it's it's it's it's a proof for 100 Lots

this sounds terrible send it over like

where's where's the county approvals oh

we don't have

it oh man this sounds ridiculous I hate

this deal send it to Skyfall no no

no no no we're not going there so Che

this out you want to know about yin and

yang my email box like you have 480,000

unre emails right I'm sorry and Daniel

you have negative3 on red emails like he

has like red emails to the good it's so

funny man we're so

different till that one guy blew up my

email oh no so I I threw a uh pretty in

incredible wrench would you say into

Daniel's uh email because uh somebody's

like hey I'm going to send you a bunch

of land deals I'm a lead generator I'm

like oh damn this guy does marketing

this guy knows his stuff I'm thinking he

probably knows a lot of things I know

and now he's just like blasting Daniel's

email with trash and we're like oh oh

Dan's like I'm dying bro I'm dying

oxygen damn I'm dying and I feel so bad

I'm like oh man I threw him into the

line of fire I'm glad it's not me but I

thought the guy but it is you too cuz

it's your inbox too but you just don't

care but I just read him cuz I give like

four or three shits and then uh Daniel

I'm going through all the emails like no

he can't leave his email like that he's

like taking rounds like he's dying on

the battlefield and I'm like man that

sucks that's terrible I mean I feel I

really feel for him and he's like I hate

this guy tell stop you me I'm like yeah

right for show you you let me know what

happens tomorrow when you tell him for

show you're right

out you're so right I would tell him too

if I was you okay so Daniel's so mad at

me it's it's getting it's getting really

out of hand

because I had it was a point in my life

before before I started this where I had

zero unread messages get you a water

bottle we got to pause for I need

to oh man so this is so funny because I

had I had zero unread messages ever in

his life since he was

born and it was like 100 150 look listen

Okay and now it's 200 you know what I

feel like my son was just born okay let

me tell yall why this is like the

unreleased [ __ ] private

whatever so check this out so he's like

my dad has 480,000 unread emails he's

mad at me for it right but now that he's

an online marketer his mailbox seems to

be melting oh man oh [ __ ] did this just

start happening it it's been happening

for a little while like oh man that's so

[ __ ] crazy like how does it make you

feel oh I feel terrible damn when did

you say this started like a few months

ago he's like trying to diagnose my pain

and he's like this is real pain you want

to see

pain and D's like I can't take it

anymore welcome to my world sooner or

later you like 9 million unready I was

like I can't look I can't look so that's

why you got to ultimately like MLM is

the only model that works you have to

you have to put other people on for you

to stay on or else you just self

destruct I want to delete my email

delete it all change email I just want

to burn it imagine

me 17 and 18 years later of doing that

you're on year five I'm on year

18 13 years from now imagine what your

inbox is going to look like I'm never

going to look at your emails again

[Applause]

bro

Daniel Esteban Martinez

Host/ Ceo/ Speaker

I have been an entrepreneur since 2018. I come from a regular home just like most people. My dad worked on the roads in the Chicago area for over 30 years. He always taught me to work with my brain, instead of my body. Your body can only take so much abuse. I learned so much from my father. He always pushed me to work smarter and not harder.

I have owned and operated a trucking business for 2 years. I started learning real estate in 2019. Fell into the Data & Skiptracing business in 2020. My partner Anthony & I started Hivemind in 2021.

I have done a ton of different jobs coming up from painting, to door-to-door sales, telemarketing, truck driving, and loading trailers. What I learned most is that I want to stay in the digital business space. The leverage you can have delivering digital products to the marketplace can yield limitless possibilites.

I started The List Guys in 2020. It is a data and skiptracing service. We provide seller and buyers list nationwide. My clients have been getting great results and I am proud to help people killing it.

I started the Hive in 2021 with my partner Anthony Gaona. It is a real estate and business mastermind. It also comes with a all in one CRM, that can host unlimited websites and users.

Starting the Hivemind has been an amazing journey so far. Seeing one of our users make his 6 figure month in June 2021 leveraging our software, I know there will be plenty more to come!

Anthony Gaona

Host/ Ceo/ Speaker

Hi! I am Anthony Gaona.
I’ve been in digital marketing for almost 15 years.I grew up in construction working for my dad when I was only 12 years old. Normally we had a ton of work or no work at all so a lot of my free time was spent learning how to generate leads.

It didn’t take very long for me to master online marketing because I became absolutely obsessed with it. For the last 15 years I’ve been generating construction based leads. At first I was running the projects myself. This led to sub-contracting all of the excess projects and eventually wholesaling the leads off to other construction companies.

One day I was preparing to build a single family residence for myself. In mid December, 2018, a simple YouTube search led me to the term wholesaling and the rest is history. The plan was to use my construction background to start flipping houses. By January 1st of 2019 I launched several marketing campaigns both on and offline for real estate seller leads.

Within about 4-5 weeks I had my first real estate contract locked up. It didn’t take long for me get a land lead where I made almost a full year’s pay on a single transaction. This came from a land lead and that forever changed my life.

I ran low volume larger land deals for the first two years of my real estate career. Like anyone who has been in real estate investing for an extended period of time, I started thinking about scaling my business.

Instead of deciding to vertically integrated and start hiring I imagined a model where I would teach my real estate investing method… Read More