Ep 506: Getting Creative With Big Ranch Land

Transcript

all right so couple things today we wanted to cover some cool interesting stuff happened this last week and then

uh make crazy offers I know we say that all the time but make crazy offers so I don't think people understand what we

mean when we say make crazy offers what is a crazy offer a crazy offer and this is so funny I can make 10 crazy offers

that are all [Music]

wins whether that a down payment seller financing an option long-term debt 50%

down uh 50% in the dollar cash I mean and then I can change the terms whether

it's a fiveyear balloon 10year balloon I can make all these different crazy offers and they're all going to be a

win I guess it's whatever you can get the person to agree to no matter how ridiculous you think it is yep and the

biggest thing is figuring out what their problem is so all of our sellers have a problem it might not be considered like

what normal house sell their problems are but it's a different type of problem so sometimes it's cash flow sometimes

it's cash um sometimes it's land um for our sellers so let's go through those so

sometimes people need a cash urgency just like house sellers they have a

vacation or they want to liquidate their property or they want to do whatever they're going to do with the money so they have a cash need right and then

others might be a cash flow need so a lot of our sellers they would prefer cash flow and they have a liquid asset

so they want cash flow over long term long period of time and that's one uh

that's one thing they could uh they're looking for and then the other thing is there're their land they can liquidate their land so remember land is very a

liquid so they have a pain pain or something that that they need to get rid of so if you figure out what the pain is

you can make a creative offer based on their pain all right so let me give you an example I don't necessarily know that

this guy was in pain but let me give you guys some Clues okay I saw this property that I really wanted uh if anybody knows

I own a little car dealership on the south side of San Antonio I have't leased out right now um and U you know

if you if you're on that Highway there's like 70,000 cars passing per day it's in an area called van Army it's between

Loop 410 and 16 loop 1604 in San Antonio so it's like Southwest side it's still inside the city right if it's inside

1604 I'm might consider that in the city outside is outside outside the city um if you go just south of there you hit

1604 you hit East about a mile uh there's a property that lays long ways

along Loop 16004 which is the main Loop that goes around San Antonio right and this area is still off Farms so it

hasn't even been developed like commercially developed yet like they should be on movie theaters there right if you're in another city this is like one of the main main Loops that was just

jam-packed with with development and Industry um I called the guy and had it be four years ago or something there was

a sign a white sign with black letters I called it and uh the guy says he wanted $4 million for that property so you know

I always had it in mind I said man sooner or later I'm going to make enough paper I'm going to go back and I'm going to get this property nobody's going to buy it before me I'm going to be the

first one to start developing on this side of town right it's because it's all farm so I'm like this is this is my area I'm I'm going to blow it up watch so I'm

starting to see more and more developments happening like dendis office just little stuff going up nothing too major yet nothing Big Time

commercial like KFC or Burger King nothing like that it's just regular little you know like Mom and Pop stuff so uh I was driving by there the other

day to look at another property with Michael Flores and I just said let me just call this sign quick just check in

on this guy check my had text him since like a year ago since like last March and uh as soon as I I I called him I

remember one thing he uh he would he would Ramble On he would just keep talking and talking and talking telling

me how amazing the property is and you know all this stuff's coming in the area and how things are blowing up over there

so he's pretty much trying to sell me the property so when I called him I said realation you know just thinking about it because this guy he's kind of

long-winded um so he the guy just starts again starts talking about how great the property is in the area and he's like

telling me like I'm sure you've seen all of the devels happening around here just going on and I'm listening and asking

questions and just letting him and I'm thinking in my mind I'm like this as much as this guy's talking you know

maybe he needs a cash because if everybody that called this sign he talks to them all for 30 minutes or an hour he's really trying to sell this property

right so no no indication other of motivation other than him just you know being convincing of of talking about the

property so U he there's it's like right at at a four-way intersection on Loop 1604 right so it's like one of the only

Corners when you're coming from I35 so big time like area this area is going to pop someday um has tons of Road Frontage

so um he finally said yeah I would I would consider selling that corner 10 acres for uh

600,000 and now all of my alarm bells are going off in my mind I'm like what did this guy just say right remaining

calm not getting too excited we're doing a a 15 and a half acre track on Loop 16004 in Converse so maybe about 10

miles east of here and uh I'm getting 15 and a half acres for $5 million on this

exact same Corner exact same spot 10 to 15 miles down the road uh same side of

the highway and inside loop 16 before so in my mind I'm running now I'm running the math wait a minute 10 acres

$600,000 that's crazy right that's like 10 cents on the dollar or something so I

I asked the guy I said hey would you consider seller financing oh I've had a couple people offer seller finance you know I'm I'm just not too sure it's

something that I might entertain and I said well I'm not trying to make payments on I said I paid off really quick I said I would give you like a

100,000 down i' give you 100,000 in six months and then 100,000 in a year like every six months until I pay it off and

the the first thing he said was well that offer is a lot better than what the other guy was going to offer done we

sent him a contract today he said I'm going to have my attorney review it and it's on it looks like we're about to uh

contract the best part of this property with $100,000 so imagine taking control of

the best part of a property on a $4 million Ranch for 100 grand I had I was honestly trying to

save up the 4 million so I could buy this thing or get a loan on it like I I want the property that bad so now to to

have control of the best part of the property for $100,000 like I couldn't believe he accepted it on the phone I'm

like I'm dying inside I'm like what the heck did he just agree to like okay well you know I'll let you know something I'm

going to go ahead and drop some paperwork for you to look at and then bam we hit him with the paperwork today said I'm have my turn to review it

everything sounds good looks good I told him cool as soon as I get the survey back I can close I said contract says 30 to 60 days but I said as soon as the

contract comes back we'll close the same day so we have the cash we don't need a loan or anything so that's it sounds like he's in man I hope we get it I've

been after this property for about five years now and it kind it came to us we were willing to pay full price for it so

one thing I want to hint about this is that um the the crazy offers you don't never know what the crazy offer is going

to be but just make crazy offers and some something will stick and a lot of times it's figuring out what the paino

is so I think that guy's pain point is action there's nobody take actually taking action on the property that's

going to put the money where their mouth is so I think with that alone he's willing to sell it at that price so

somebody's going to take action on it with $100,000 down he's willing to make that uh he's willing to make that

deal you know our our our lowest offer right is usually about 10% right so figure a $4 million property you know we

might offered the guy 400,000 down right if he would have took it but since we were only talking about that one corner

piece you know we're only talking about 600 now right so that's why I hit him with the with the low offer like I'm gon

hit you with a 100 boom and he bit on it I was shocked I was super shocked and I've made some stupid offers that have

got accepted so I couldn't believe that one but you know I say all that to say that even if you don't know how to make

an offer even if you're not that good at math you're not that good at Grumps just make a crazy weird offer and every now

and then right so seller's going to get mad at you we got a we got a voice message back like yesterday I think one of our guys made an offer and the agent

said that offer was insulting well good if you don't hear that every so often you're not making

great offers you're just not um I'm just trying to get in here we

go all right sorry about that so crazy off so some people need cash some people

need cash flow we've had deals come in where they wanted a large D payment and cash flow and that's just what they want

so you got to be creative based off what their needs are um and figure out what they want um one thing we want to update

to is that we're looking to buy if you didn't see the post in the group we're looking to buy long strip properties if

they're waiting if they're wait if they wait for their price we can get entitlements for that land to buy it so

we made an offer on uh earlier this week k brought a long sh property we made an

offer on that agent hung up on me but um it's funny this uh new change with the

with the law on the agents thing I think is going to be funny um I think it's going to be interesting climat I I sent

Anthony a tweet this morning that uh somebody already listed their property and they put that they're not paying a

biage commission based off the new lawsuit that just that just went through so um it's going to be an interesting

time um to see some some action and I think it's I think it's good for us on

both sides because a lot of the the the agents side side of their point of view

is like well now they're not they're not incentivised to bring buyers to the transaction and all this stuff but I

think it's it's going to be a couple different changes because now the the sellers agent is going to have to do more work to actually sell that property

and B I think the buyers have to do more work to buy the property so I think it's good for us either way because the

properties is going to sit longer in my opinion which I think is a win-win

so up and coming updates with agents um if everybody hasn't seen the law it's pretty funny uh there's a 4 million

lawsuit against the national associ National Association of Realtors that went that went through this last

week so I think uh there's G to be opportunity for us since we are doing MLS stuff so you never know what's going

to happen and I think a good shakeup like this will bring some inventory or deals to light

good and bad there's always a good and bad to everything that happens so I'm

excited to see what the good is it sounds like the only buyers are going to be investors now really because

if an agent why is an agent going to go go out of their way to go find somebody your property and do all that work if they don't even know if they're going to

be paid or not you know it's going to lose a lot of a lot of buyer incentive well I think the other side of

it too is the B the anybody buying is any agent that's going to represent a buyer they're just going to ask for

their commission from the buyer side which either have to be covered in closing costs or down payments or in the

loan itself so maybe the the mortgage Market will adjust to it too to cover the buyer side I have no idea it's so

fresh and new it's gonna be interesting when it happens now would be a good time to

train some of them to go after land and send us the deals

oh start programming agents now start programming them um

some I watched another video too where they said that if all the buyers agents leave they said they might lose like

there's the agent side is already like a failing there's there's a lot of turnover so I think this they're

expecting a huge loss in agents um that are currently in the business get out of the business because most every agent

that is an agent has to pay their for their licenses uh renewals so they negative cash

flow like we say for for being an agent sometimes the

negative cash flows but um it's interesting time interesting perspective um you want to tell about the other deal

you got creative

Anthony I'm excited to know too I'm like what did we get what else was there the 420 option

oh okay yeah so this is amazing guys again make the crazy offers if you're not making crazy offers you don't know

what's going to happen you guys make sense of this okay I hope everybody's listening you guys guys make sense of

this cuz I couldn't so there's a property that's been listed for like a year and a half or almost two years or something right 400 plus acres and uh it

was for 2.8 million so we we sent them a full price offer 2 million cash Clos

like in three months or four months whatever it was they said nope we're too far apart they didn't even counter they said we're just too far apart ain't

going to happen okay that's fine whatever so I knew I was going to come back in said let me let him sleep on it

for a little bit and then we'll come back in with another offer so we come back I don't know a couple weeks later they said we made another offer hey

we'll give you a million down a million in 12 months and then a million in another year after that boom paid in for

3 million 3 million cash nope we're not interested in seller financing damn

again okay all right I was so pissed off when they rejected that offer I told Mike I said f those people we're not

going to follow up with them no more I'm just done with these people so as soon as I said that I said wait a minute I

said offer them 500,000 for an 18-month option and we'll close in 18 months 500,000 down for an option no payments

no interest no nothing just Clos in a year and a half they they countered with hey we'll take it we'll do that but

we're only going to do 14 months that's your counter so they don't

think about the timelines a million now a million in a year and then a million in a year after that right so at the the

the two and a half one and a half year mark they already up like two plus million dollars right um but no they

rather take the SA same period of time for 500 Grandin so they just in the same

same same time period they just lowered their their their price 15,000 right or

200,000 and they're getting a million less for the same time period they just like reverse Clos themselves like what

the hell that was the worst offer they they ever could have took and they took it I don't know it's a strange place and

you got to make crazy offers and a lot of people and this is the crazy I don't know if we've ever done that before because usually our offers usually their

step up to better better better but you did okay better worse and they took the

worst one I don't know what's going on guys but people are accepting weird stuff

right now but if you don't hit them with those crazy strange offers even the agent even followed up today they haven't followed up with us once during

this whole negotiation period and today they messaged like hey are you guys sending a contract yeah we sure are so freaking

amazing man to just see see what people are accepting right now another thing we're noticing out there in the marketpl is land is not selling land is at a dead

halt um banks are cutting off uh Builders uh land I mean house money so

they're tightening up on how much money they're willing to lend this Builder was borrowing money for like eight to 10 houses at a time he said now the bank

has them down to two houses at a time that's all they're willing to lend on so things are getting worse right now not

better it looks like we're the only people buying out there I mean we their stuff just sitting there for a year two

years it's just all sitting so if you're not out there making offers and following up like a mad man you me dang

I don't know what else you're doing I don't know anybody online right now that's saying hey we just bought land hey we just bought more land hey we just

bought more land but it's it's going fast man yeah I'll agree with that um I

haven't seen I haven't seen any any movement at all it's just it's been crazy man it's been crazy interesting

year for us um as far as the traction goes but crazy offers for the win and

keep offering creative um if anybody hasn't seen the episode I I had a meeting with Diego today and Diego says

he's been watching my trillion dollars of Deb Equity video If you haven't seen it go check it out but I talk about how

there trillions of dollars of debt Equity locked in land that it takes someone like a deal someone like us who

does land to unlock that that Equity so and it takes a certain set of skills if you want to talk about um taken I have a

certain set of skills no people that are they're they're open to creative a lot more now

yeah people like if you would have made an offer 10% down on a million dollar piece of land a year ago they would have

laughed at you and hung up on you now they're like when can I talk to you guys like send me a contract and I see that

in writing like now they want to negotiate you know now people are starting to Circle back and they're starting to look at offers for real now

yep um someone asked how does the funding process work for these

projects we just take it the deal by deal we just look at it we see how much cash we have to put out of pocket the

worst possible deal you guys can send us is a cash offer if you send us a property like hey this guy wants $5 million like yeah him and everybody else

in the United States probably around the globe right so it's up to you to go in there and get an amazing good price if it's listed for 6 million we're going to

offer 3 million cash right or if they want the no he he wants he said he wants the full six million we got one today

they want the full six million they want two million down no tell them we'll give them a million down that's it done there's no negotiating there's no coming

back there's no countering nothing take the million or don't that's it and then typically we like no payments no

interest until sold you know and we usually balloon them out like in 18 months or two years so um Diego says it's it was the

word nonrefundable that took the human psychology at its finest for that

seller yep you got to imagine how much negotiating goes on around there as Chris rude would say how much

luckery right is going on out there where uh you know somebody comes back and they're negotiating hey the option

if we don't like it in 30 days 90 days we get our our our option back or we get our uh you know earnest money back and

all kinds of crap we just hit them straight up with hey the day you sign a contract we'll give you the option money you don't have to give it back so and

we're not giving 800 bucks or $100 like you see on some wholesalers contracts we always do like 50,000 100,000 200,000 so

it's real money you know and and and they get it quick and that's the main thing a lot of people send earnest money to the title company right so the people

aren't going to get that money for six months or a year anyway so if you talk to them and you say hey we'll hit you with 100 Grand next Tuesday day you know

that that that's it speaks to how serious we are about buying the property and we'll release

it and we'll release it so a lot of a lot of wholesalers their strategy is to send it to the send it the EMD to the

earnest money and never let it go and they have to have a mutual release to let it go but if the deal is good enough man we'll send the money straight to

them and what we learned from experience is a lot of time once they take the money they're locked in and they're not

going to give up on that deal they can't they're locked in they already took took

and use that money uh Jeremy says he made two offers on two ranches similar offers mentioned

and then uh eny looking at the pan handle properties going fast uh that's Florida right no pen

handle up up in by Amarillo north of Amarillo stuff goes around there for like two or three grand an acre so you just got to get it for like a grand they

want more than that I mean maybe if if it's in the heart of the city but if it's outskirts I mean they're just giving land away out there

yeah the the the stuff in the rural areas um I would rather do like a a

Novation type deal with those because the deals they just sit too long so uh somebody messaged me this week and they

had a deal it was north east of Houston uh between south of Tyler which Tyler's

already kind of Rural and then if you're south of Tyler like a good hour there's nothing there and it doesn't even hit

the artery coming up through uh going to Dallas totally misses that artery so it's kind of the middle of nowhere um

seemed like it was a good price but I was like man we can't do that price unless it's really cheap or we get like

a Novation type deal with 50 to 100 Grand down so a lot of these smaller properties you can do seller financing

especially like half million and under uh with 50 to 100K down and you should be able to get it like a six six to

eight month balloon pretty easily so if you can find an Arbitrage there so I'll tell you a perfect I'll tell you like a good little deal scenario to keep an eye

out for so let's say you have like you have let's say 30 acres for 300 if

you can sell 30 acres for 15K an acre versus 10K an acre if you cut it up in

10 acre lots look for opportunities like that so 300 300K to get into the deal we might offer 100 150 Grand down or 50k

down whatever is needed to get into that deal and then you can maximize your Roi by essentially selling it for five 5K

more per acre so there's 150 Grand in there based off of you putting in 50 to 100 Grand in there so if you can

leverage some type of s financing with a short balloon if you know you can move that inventory pretty quickly in those areas especially up and coming you can

do some good uh little partner Innovation deals which I think Angie wanted to cover that a little bit so I

was just going to bring that up if you couldn't so are you talking about and I and I kind of missed if you were inly

there was a Novation the deal you just gave an example I think I missed that so um I'd love to see just or hear a couple

examples of Novation yeah so inovation can come in any many different forms which I kind of

mentioned earlier it can come in many different offers so inovation is essentially it's like a form of a

partnership where they hold the property till it sells so it's a it's a big thing people are doing with houses but you can

get into properties with an this is one of the things that even I I would

consider Anthony's 420 deal with a 500K down I would consider that a Novation because technically we're getting a

14-month Novation 500k down right Anthony it's a form of innovation yeah

but when you say Innovation there's like that legal connotation right there's a proper way to set up the paperwork and all that crap like we're saying like in

general terms it's probably more of a partnership with the seller it's more of a partnership inovation so that one's we

used an option contract to do to bring full retail Market with $500,000 the

down payment so it's a way to take control of a property with a small amount of money to take and sell to the

retail market and usually with Plus for that deal we're actually entitling it to make it worth more money um if we're

doing a small flip you might take control for 10 to 75 grand or 100 Grand

and then list the property and then take your spread on the back end so there's different forms of of types you can you

can kind of work in and do um a lot of different ways yeah so I want I want you

guys to think about something right let's completely reframe your thinking as as a real estate investor whether you're brand new or seasoned in your

mind you're imagining you're a buyer and you're dealing with sellers right that's that's the posturing but if you think

about it we're not actually buyers at all all we are is we're lenders we're coming in and we're giving the person a

little bit of money while they let us improve the property to get them their full asking price so that's why we refer

to it like as Innovation right Innovation means that you you find somebody who who has a house they do want to sell it but the house is it's

needs a lot of work right so what you do is you have the seller agree say hey look here's what we're going to do I'm

going to come in here I'm going to put all the money in to make the house really really nice we're going to sell it together you're going to get your

full price and I'm going to keep the rest so that's all we're doing so when you're talking to these sellers knowing

that you have access to the capital you're not coming in as the buyer you're coming in and saying hey I'm a problem

fixer and your big property that nobody's ever going to come buy because that sign's been out front for five

years nobody's coming to save you here's what we can do I can get you your full price of asking but it's going to take

me a couple of years and just so you know how serious I am I'm willing to write you a big check up front while you

let me do what I'm good at I'm the professional here I'm the doctor I'm not a buyer that's pretty much

it um you want to talk about that the China property again real quick so I think that one's like a form inovation

too yeah that was one of my first deals um all we did was uh I got a call from a

seller it was from a Google lead and it was inbound it came in like at 12:30 1:00 in the morning the lady was in

China she was actually a school teacher in China CH but she lived here in Fort Worth her whole life south of Fort Worth

so um I all after like talking to her for a long time I thought I couldn't afford the property so I was like well I'm not going to be able to buy it

anyway no big deal you know I just we're just having fun just talking laughing and uh just like just getting like just

literally like this is not a deal so I'm not tripping anyway whatever you know she was just cool to talk to you and we're just you know kind of bsing and

then she said the property was on I35 so I said wait a minute I started like mathing it out the property on I35 said

that actually sounds like a really good price so I told her I said look property needs a lot of work I drove and saw it actually drove like three three and a

half hours to see it and I said the property like the grass has not been cut in 10 years right there's there's like junk cars in there like it it was just

it was a wreck and I told the lady I said hey the property needs a lot of work um I'm willing to put the work into it right to make it nice and everything

I said but you know I don't I'm not I don't have the cash to just give you up front I said what I could do is I can go in there and I can help make the

property better clean it up make it nicer and then and then I can help you move it you know and then maybe I could split it up I told her even if I could

sell all of the property and just keep the commercial side on 35 and just have just that and nothing else and I make no money I told I'm willing to do that and

I said so I bet you don't need all the money right now like you don't have gambling debt or something you need to cover right she's like no so I said how

much do you need right now to put in your pocket just so you're good for a little while while I do what I have to do to make the property worth more money

so we can get rid of it and get you your money and she said if I had $10,000 right now all my problems go away boom

handed me over a 46 Acre Farm for 10,000 bucks like gave the 10 grand uh put it

in my name she had a lean position on it um I came in cleaned it up threw it on the MLS and it was sold like in 45 days

or something made 85 Grand cash so that's like a that's another form of Novation all you're doing is

giving them some type of security whatever you're you're solving that that initial problem of liquidity in their

pocket with 10 to 50,000 depends on the sell whatever their need is that's you got to understand what their need is and

then you just list it on the MLS and you take over their property super great strategy we've used versions of it and

we're trying to dig into more of these with these entitlements because a lot of these sellers they want High pricing and

it might be worth it once it's entitled but we have to entitle the property so hey you hold on to the property we're

gonna value at it through entitlement you hold on to it and then we'll pay you off whenever it's done so it's another

form of Novation just take kind of taking control of the property with with whatever type of EMD option or um some

type of seller finance just take over the property to to bring it to fruition to get their pricing yeah so let's say

somebody had a question well I'm just curious like you said that the property was transferred to your name can you talk a little bit

about like so you actually went through a closing and you didn't pay her any

money or like 10,000 bucks so you gave her 10,000 bucks and it transferred to your name

yeah and then contractually how did that work because obviously you know you agreed to a much higher price just that

I'm just kind of curious how that I don't know so she got a de of trust for the balance so it's just like

I gave her $10,000 down payment I become the owner she becomes the bank and uh the deed of trust shows that I sell her

the remaining balance on the property and then we we took it the MLS and sold it on the MLS so whenever we

got paid she got poured the portion of the bank portion just like a loan she got paid off completely and then we got

the portion of the rest and she's happy we're happy and she got money in her pocket day one and we got the Deeds of

the property sell on them last without uh flexibility and disclosure and all

that stuff CU we disclosed up front what we're going to do so she was okay with it from day one very nice

yeah yeah and and and if you think about that guys how many people are out there that have no way to improve the property

they don't have the knowledge the skill set the time the capital so you're bringing a lot of value to the table

right there's a lot that we bring to the table so don't think for a second that we're taking advantage of Grandma right

without us she's going to end up having to liquidate for pennies on the dollar this is something that Daniel and myself we really live by we pretty much trying

to give everybody their full asking price if you go to another Mastermind they say hey anchor them with a really low insulting offer and then you know

that'll make them think it's worth less then you get the property for nothing a week before it Clos after you find a buyer hit them again for another

discount yeah after you already found a buyer you're already going to make profit then the day before closing hit

him again like that's that's a trash way to do do business if I catch anybody doing that

in our group I'm kicking you out that's trash yeah we've never done that before and I never will so don't please don't

do that there's no reason to try to like do Shady stuff in this business there's too much money involved there's there like I said

there's enough money to go around and you don't have to low ball or cut off cut off the seller just because you're GNA make extra five 10 grand it's crazy

okay up it's Matt it's Matt Rogers up brother how you guys doing it's great to

great to catch up with you haven't seen you guys for a while dude always great to hear from you bro what's that so we've been here yeah

yeah no doubt um hey Anthony on that deal you did with the the lady um what

what kind of time frame did you agree upon with her I'm just curious like upfront you gave her 10 grand you ended

up taking title put her as a lean holder what was the paperwork involved in terms of time frame to pay her back uh kind of

since she's basically financing the rest dude let me check the paperwork before I lie right this was like Curious like you

know a year two years something like that I forgot the time I forgot the time frame that we wrote it up but we wrote

up zero payment zero interest until sold so I don't remember if it was like a 12- Monon cap or twoyear cap I just don't

remember this was this is a deal from four years ago yeah no I think yeah I

feel like maybe we've discussed this deal before at one point down the line I was just curious like you know like one

to two years sounds you know like a reasonable amount of time for something like that for sure but like yeah you start stretching in further than that I

was just curious if it was like you know what the lady's response was uh you know on pushing time frames with with giving

10 G's down let me check the paperwork I'll actually email you the paperwork just just so we both take a look at it I

forgot how we structured it exactly but I have my attorney structur it up and and typically now what we do is yeah we do like 18 months to two years is what's

typical sometimes three years and it's a big property like five or six million is there a certain price point

that you see that kind of like uh in what that you know level of time's going

to be on on you know basically paying off the property like you know uh you start getting into three four five

million bucks you know you're going to get a little bit more grace in terms of time frame because there's bigger payments coming and probably uh you know

payments every six months every three months something like that versus like something that's maybe half a million

where they're gonna probably want their money within what you know 12 to 24 months yeah you're exactly right so I I

think if there's a gross rule of thumb I would say that you know something that's worth a million to 2 million the we're

probably the max we're going to go is like one to 24th one year to 24 months and then now we're starting to pick up

stuff for four and five million six million I'm asking for every bit of like 36 months now um we have a 15 and a half

acre property locked up right now for 5 million I've already I'm a year into my my option already and I still have another year left so and what are you

finding this like sweetening the pot when you're asking for longer time just like you know um you know like a certain

bench Ben marks you have to hit every three months or something just to put a little extra cash in their pocket to keep them quiet yeah this guy I'm giving

him 21,000 every six months so that's like the half a percent is what we're doing so that way as as they're coming

up on that hey instead of them just getting exhausted wondering if you're doing anything uh we can share the engineering paperwork with them surveys

you know just kind of update them on progress and then I think having those regular payments right is is kind of

what keeps them in the game uh like like we offer this guy down million down million in a year million in year so

they're not waiting with their hands in their pockets either like wondering if we're buying or not and I think that's what they're afraid of is when yeah you

you give them down $500 earnest money and tell them you need two years to close or a year to close doesn't feel

sound right yeah AB this offer we sent out today um 600,000 I just offered

100,000 down 100,000 in six months 100,000 in six every six months until he's paid out no interest at all no

mention of interest and uh he sounds like he's going to take it man you know at least he's getting that regular money in his pocket

so you just gotta kind of fill them out yeah I think that's the main thing and then what we try to get every single

time is no payments no interest like we'll just pay we do that to our lenders every single lender that we have no

payments no interest until the property sells so we try to do that with our Sellers as well it takes the pressure off of everybody you know we get

mentored by a lot of seasoned guys that have been doing this for a really long time like yourself and uh you know we

just they always say hey be careful don't over leverage don't over leverage we'll never be overleveraged because our sellers aren't getting any payments

until the property sold sold and typically the sellers are not getting any payments until the property sold so it's a pretty good way to stack that

Anthony that one's for 335 right we sold it for 335 which one the 46 Acres yeah it was

like 300 or 320 or something I think it's 335 CU I got the HUD yeah yeah then you're right yeah

because it was 85 net I think she wanted like 225 or something or 220 whatever we settled on yeah there you go awesome well yeah

no I I I appreciate the up on that just uh just wanted to touch in and say hey and uh you know see what those time

frames look like when you're dealing with the sellers and kind of what their expectations are for you know the kind of price points that you're working at I

think the main thing that we do is uh make make a weird offer where just sounds you know terrible but it's still

respectable like a little bit of money up front like 50 Grand or something and then let them counter let them respond

see how they feel about it and for the most part I think 90 95% of the time

they say no but then you let them stew on it for three months or six months and then you're you're following up like

everybody should and uh eventually they get worn out hey can we take a look at that offer okay are you guys still

interested in the property so yeah I think first first somebody makes an offer they don't hear back and they you

know they forget about it they feel bad about it they feel beat up but that's just step one next step is is keep

negotiating I've been after this property today that we're going to get uh for 600 Grand I've been after it for five years dude five years I called the

guy four four or five years ago called the guy and now we're just we just sent out the contracts

today that's awesome well hey uh the the money's in the followup so congrats on

that so I appreciate it guys I'm gonna hop off thank you bro see you soon man take care yeah so there's there's many

different ways to do it and there's no wrong way and if you get used to doing deals like this once you get a little

liquid or you find you raise your own money you can do these deals yourselves this is the crazy part thing about this thing everything we teach you eventually

you can do yourself without us as much as we we we want to JY with you you can

do this stuff yourself and figure it out um and this is stuff we we this is a strategies we use to do little money out

of pocket deals all day long and they're everywhere yeah and then everything that we're telling you guys like I feel like

there's a lot of other you know teachers out there whatever you want to call them and they all have like their script and

their books and everybody out like why don't you guys have a script I don't think you need a script you need to just do the work just get out there and make

offers even if you don't know what you're talking about make the offer see what they say you got to come to these calls so you know how we structure

our offers go out there make the offers and then see what happens and then if you need access to Capital you have us

when we started we didn't have two stones rubbed together you know so just just for just for you guys now you have

the knowledge you have the skills you have the capital and we're talking to you about what what's working right now this is a terrible Market Realtors are

going down wholesalers are going down you know they're all changing course trying to sell more courses nobody's

doing deals anymore and we're just flying right now this is the fastest we we've ever gone so you know this is this

this is the actual stuff that's really working out there right now in this market yeah yep telling you everything

everything we're teaching you you could do yourself and make a killing make a killing make a killing um hey somebody

asked about the 4 million property um what's the exit yeah it's 15 and a half

acres um so right now I'm just doing all the the site engineering you know phase

one uh survey Master utility plan so we can see where all the utilities run that

kind of stuff I'm I'm doing about 100,000 120,000 worth of engineering on it right now just to get it like ready

we're applying for an extra exit off of 16004 on the 16004 side it's on the main highway so we're getting Texas

Department of Transportation to approve a a secondary access there one in the back we submitted a a rough plan of what

our shopping center might look like and we're we're shopping it out to commercial entities so I don't know if

you guys have lows everywhere in the United States but it's like a Home Improvement warehouse Like Home Depot um they're interested in maybe 8 Acres or

possibly all of it um we're talking to different coffee companies restaurants those kinds of guys so the strategy here

is you bring those commercial entities in you create a ground lease right so the ground lease says hey we we'll rent

the land from you or lease the land from you for the next 20 25 years 30 years right and some of those leases are 10 to

20,000 a month so you could sit on that cash flow forever or you can immediately

liquidate that note like the same way we we create notes and then sell them at closing to pay for the property um you would create cre a ground lease and then

sell it at closing give the seller his money and take the rest and a typical ground lease can sell for a million to

like a million5 per acre so that's what that's what we're we're working on doing on that one a ground lease is a triple

net or double net lease um 100% Marvin uh those deals those deals are we're

we're trying to do our first one on this deal but we'll see how it goes but I have a I have a guy in my network that I

met in Atlanta when I was living there he does this for grocery stores

and he said the grocery store lease is $50,000 a month geez imagine sitting on that cash

flow for the rest of your life for just one deal you did 50 years ago so I want this is why I love land and land is the

best game like that's a lot of houses you ain't never going to build up 50,000 a month in cash flow on houses

just never going to happen it's probably GNA take 40 years or 50 years to get there yeah and and he he he has he owns

a couple grocery stores and he doesn't manage the grocery stores either this is just the lease on the land that the

grocery store sits on so imagine this piece of land let's say we create eight leases on it or 10 leases on it or 12

leases on it times $20,000 each and you're making four or $500,000 a month

for the rest of your life so I mean it's just it's just it's a fun game to play and if you don't know how to play it you

just just stick with it stay in it stay around it come to these calls we're we're we're like I think the only thing

that makes Daniel and myself like high mind interesting above like what other people are doing is we're not in love

with one strategy like oh we only do sale stores we only do multif family all we do is we're looking for deals that

give us back the most amount of cash for our time and and our investment of capital and that's it so come a year

from now our strategy might be completely different like right now we're looking for neighborhoods to start start throwing in houses you know so

we're always evolving we're always looking for a bigger game um you know we're not married to the strategy like

how much cap how much Capital can I put in and what kind of return can I get in the shortest amount of time possible and that's all we really care about and

we're going to continue to evolve and we hope you guys evolve with us so uh we're towards the end of the call I want to

cover this too uh we're looking for development opportunities that are already uh approved um we think we got two on the

hook and I think we posted about that a week ago uh one and these These are people that have developments already

approved uh one guy ran out of money so he has like uh there's like 30 lots

available to build on and only 10 are there or I think it's like so we're looking to buy uh looking to buy into

that project right now essentially no money into the deal you talk about that a little bit Anthony which one you walk into the

development with 30 houses left to build yep I was going to respond to Kyle by

text but I'm just going to just say real quick Kyle's like you would need to be a hedge fund to get that kind of cash flow we already have all our paperwork set up

for a fund like we could launch tomorrow if we wanted to we already have it all lowered up spend about $30,000

um our main investor wants to put in 20 million and then as soon as we place all of that one he's going to put in another

20 million um he doesn't want to go directly into the fund he just wants to buy one property at a time with us but

he's prepared to go in about 40 million so the fund is there it's already set up it's just on pause right now until we

find some stupid money like Ira money or something like that um but yeah we are we are setting up to become a fund and

we're going to start uh working on the notes and leveraging the notes and eventually what what what where we're

headed is uh we're going to just be sitting on a lot of mortgages like a lot of notes and then we're going to be the lender for the high mind people that

understand our strategies and know them and then we'll just deploy that Capital to them so that they can go out and duplicate what we're

doing you mean it means from single family homes yeah it's never going to happen yeah you'd have to you'd have to

raise a billion dollars you know to go out and buy a whole neighborhood and then we're going to do that to uh the build to rent model so right now we're

selling empty lots So eventually we're going to throw up 180 houses 600 houses

and then just sit on as many as we can and just keep them um I am looking into deals in

Georgia 100% if you got deals in Georgia let me look at them uh we're looking to Deals we're looking to do deals out of

state because uh as this thing gets bigger we're looking to start testing our Waters in other other states um I

know people that do the subdivide model in Georgia and Alabama so um I know it

works out there too yeah we know we know some guys that are doing some big land deals in Georgia too we have never really done anything there but the offer

is the offer guys that's again like I just said right now who cares about the asset class

righty it doesn't matter what it is how can we get the most amount of return uh for the smallest amount of capital right

and that's that's where our mind goes so I guess as long as it's red states only we're not going to play in blue States

you know in California might be an exception because Daniel lives there we have a big Network there but um yeah for

the most part red States land um again what what we don't want to do is go in

there and drop five or 10 million on one property we'd rather put 100 or 200,000

down on 10 properties instead of just putting it all into one spot so if you guys find a lot that's worth 5 million or 10 million then negotiate like

500,000 down a million down uh for the right deal because we don't want to park a million and then not get paid for two

years right so that's the thing is a we're looking for quick and announc yeah I

got go bar can you guys hear me yep uh I mentioned the one in um like 15

minutes from now Nashville Tennessee it's actually it's about F over 500

acres and I followed up with the seller few days ago he said it's still avilable how far from

Nashville it's like 15 minutes from downtown Nashville what's the price

breaker he's asking 30 right around 30k perer it's a deal but let's try to work

something out some kind of terms but that's a deal with that price that's a sick ass property I like Nashville a lot

yeah he's he's he's said said he's like literally surrounded by country singers

celebrities yeah I believe it man that national super super hot I would love to get a around

there think we two people talking you guys wanna try to set up a

call this week with them yes yes hey guys I know a lot of you

guys are pinging us left and right there's a lot of people on our team you can also reach out to um like Mike Flores Andrew there's a handful of

people that work with us daily all day so if if uh you can't get a hold of my Daniel or myself just keep following up

with us I'm sorry we know we're just we're going through stuff as quick as we can you know what to do on your side

right the worst thing you can do is blow us up about a cold lead all right if you know what to do you know what to say you come to the Tuesday calls make your

offer go out pit your offer even if they shoot you down who cares go make the crazy offer see what they say we can

always come back in and negotiate they're always going to say no the first time anyway yep um for instance today we had

I made a tweet today because uh people always tweet like oh I spent $4,000 and

I got 30 leads I think we got 13 leads today in our website with no Ms spend so

and that's just that's just our website like I got probably five DMS today and I don't know how many Anthony got but it's

getting crazy um but FYI guys with that being said you

know the the people that are in this room that step up um you understand how we make offers and you get really good

at it we'll start pushing those leads to you so just by you participating learning digging in helping uh we can

start putting you on an overflow list where you'll just get a text message and here's the lead start working it but you got to know how to make the offers you

got to know how we set up our structure you got to know what kind of properties we like and uh we would love for you guys to to step up and start helping us

come through these leads and give you a piece of the deal yeah I had a meeting with Diego and Diego said he sold four properties in

like the last 45 to 60 days and he's like man just with the the end the end of this it's it's getting pretty good I

was like it's only gonna get better uh junior City got three leads

today no it's it's it's pretty good man um we're working on uh integrating right

now our bottleneck is underwriting and I hope we're trying to fix that this week um to our my goal is to have all deals

underwritten within 24 hours just because we have so much lead flow um so that's that's the goal I'm going for 24

hours in the inbox if somebody underwrote it and said yay or nay or more information so um we're working to

that and it's a lot of lot of people lot of time a lot of effort and a lot lot of different people's Parts but we're

getting there we're getting there I promise it's going to be good yeah that's what I was going to tell you guys too like how else could we

build a machine like this right we went from spending $10,000 a month in marketing to zero and now we have more

lead flow than we can handle so that's why it's called a hive Mone right we're going to rely on the community to help us work these leads do deals uh by the

time you know how to run a whole subdivision by yourself we can appoint you you know in front of that subdivision get you paid on that right

so we're trying to share the love but if you don't come to these calls and learn the game you know we can't trust you with that kind of stuff just yet but

ideally we want everybody in this room to step up and be a leader and help us work deals work leads Run phone calls um

send out offers all that kind of stuff everybody in this room should be raising Capital um ethically and legally right

so you can't go to Facebook and say Hey you know we need money we'll give you back a 20% return or 50% return uh but

just post about what you're doing Say Hey I was on a call tonight buying hundreds of acres of land um ask me how

we're doing it invite people to the call get yourself out there get let people know what you're doing I post a lot I post a lot about what we're doing the

kind of numbers we're doing and I felt like a lot of people might take it like oh these guys are always bring but all I'm doing is I just have a loudspeaker

what what's that that tweet you sent me today Daniel like if you can get attention you can get money yep yep if

you can get if you can get attention you can drive traffic and here's the other thing you can steal other people's

traffic so um one thing I'm noticing is that you can hop into other people's groups and hijack their deals so I think

not necessar hijack but partner or cjv so you can if you see something that other people don't see you can get in

front of it and get paid too so it doesn't have to be your leads it could be other people's leads

too yeah I think the biggest benefit here guys is that that we have the lead flow you don't even have to have a

marketing budget anymore right we we're making MLS offers nobody's buying this stuff other than us so if you're putting

in the times you're putting in the hours then we're talking to you on a regular basis because you're out there making offers right go out there make the

offers see what happens offer creative offer something down 10% 100% just go out there make crazy offers hit us up if

we're too busy we're going to push you to somebody else like Trenton or Mike or Junior um you know Daphne's doing really really good now um she just locked up

her own contract Daphne went from helping us sell the properties uh to getting her own contract I would say like in six months or something and

she's gotten a lot of checks and she's a 22y old kid she just turned 22 so I mean literally if you're in there if you're

out there doing the work you have the financial support you have the legal support you know a lot of stuff that we didn't have when we first started so we

we hope you guys are proud to be in this room and and we're trying to share the wealth you know a lot of gurus are out there like look what I'm doing look what I'm doing they don't tell you how to do

it they don't tell you how to get involved they don't they off definitely ain't offering you no money all right so we're trying to wrap around you and give

you as much support as we can to make you guys successful and I don't know what else we could do to make it better and if you guys have any ideas you could

share that with us too hey I uh I got a couple I got a

question real quick so um I know you guys kind of mentioned that um you know there's some people in the group that we

could probably reach out to if need be um would some of y'all that's in the chat would you be able to throw your

information in there so we can all maybe try to get together and do something make make a post inside the group you'll

see what happens yeah I have I have uh so I had probably about four or five

people respond nobody else responded there you go there people

right there there's Junior let's go go yeah and and also guys like if you need

if you need help right Post in the group and post a specific question you know we say hey guys I I have a seller the dude

said he'll take 10% down he said he'll give us 30 years no interest I don't know how to close it I need help you

know hey how much how much should I offer this guy down and uh somebody will step up and ask it if nobody if everybody's busy it's been a few hours

and nobody's hit hit you back in the group ask again say hey guys still still need somebody to help me with this thing you know somebody will step in there and

grab it yep yeah actually have

a go go I have a point a point to make on

that too when you're making offers uh one of the important things is closing time we need time to close these deals

um I got one the other day and they wanted to close it in 30 days and that's just not enough time for uh us to do a

due diligence all that so usually 90 to 120 day close um if you're not sure then

just ask us and I will you know what to offer and you know we'll kind of help you guide you along the way that's Mike

Flores right there guys let me tell you a little story about Mike I talked to him probably about three years ago or something four years ago on the phone it

was like midnight or something and I didn't hear from him for about a year year and a half and and a year and a

half later he comes back and he's like hey I got two or three leads for you ready to go right now you want to go drive a property like yes let's do this

so he went out there he did the work didn't ask a lot of questions he went out there and put the work in so you don't need to keep getting more and more

and more information before you take action you know what to do you know what the offers look like you know what they sound like um and then and then so now

Mike he's now he's been hanging around us for a year I see him almost every day sometimes and uh he's out there making

offers he's out there doing the work making phone calls making follow-ups writing contracts I mean the dude's on fire I me the dude's he's a completely

different guy than the guy that I met uh you know a year ago he not the same guy at all he's a completely different

person so you know it's like does our system work can it be taught can can you

can you learn can you benefit from the information Mike's the living shining example like he's my stunt double I I

mean he might I was going to say he might work more than me but I doubt it but he appears to be working more than me I mean the guy is on it super on it

so you you put in the hours and it might feel like you're not making any progress for a month 6 months nine months but if

you're stacking the hours and stacking the hours eventually the momentum starts to starts to come back in your favor he went to title company to go do something

I don't even know what he was doing there and he's like hey they said there's a check here for me like yeah he goes what's this for I was like I don't know I have no clue you know I know I

don't even remember where he got paid from so it it took a little while to get there but you know to yesterday he told

me he goes man I'm G to start looking for my own deals and hopefully I'm taking down my own deals soono I said good I'm going to lend you the money right so we want you guys to evolve it's

not it's not like a brokerage where we want you guys to to stay under our thumb for the rest of your life hopefully you get out there and then you build a team

of 10 or 20 people and you're out there running it too we still partner with you we still lend you the money yeah the biggest thing and this is

this is for our goal is to become the lender and if you work with the lender at any point usually the lender works

with people that I have a relationship with that understands their methodology that's the biggest thing A lender looks for your track record a methodology so

literally us we're we're teaching you our methodology because we're going to lend on that methodology because that's what we fun so that's the biggest thing

so we want you to have all everything you need that we didn't have we didn't have we didn't have all this stuff when

we when we started I'm telling you we really didn't um we've been we've been striking stones for three years in a row

four years in a row trying to spark a fire and now the fire is here you know hey it it hurt man A lot of times it

really hurt you know we go all in on a deal and throw in our only 100 Grand our only 200 Grand and that's all the money we had and then the money gets locked up

and it's tied up in there for six months or a year you know we're back to zero again like we got land we got deals under contract but now there's no

operating Capital to keep going you know so we know what it feels like to lose sleep and feel sick to your stomach and

and be mad at yourself and frustrated embarrassed in front of your spouse you know like we we we know that feeling all

too well so if you're on this car you're like well I don't have any resources and I don't have the time those guys have you know you know cuz CU we

were in pain too you know but you push through it you know that's why we talk about like you have you need to have supernatural abilities you need to pray

you need to meditate you need to drink green juice you need to work out you need to do breathing exercises like you got to get your body in such good shape

that you can put in the hours right I'm a pretty heavy guy like you know I'm I'm I'm pretty stout I've always been like a

bodybuilder type but I got a fat belly on me right now right because I haven't been sticking to my diet and working out correctly but I'll tell you what I'm

riding 20 miles on the bike you I'm walking around the block 7,000 times a month you know I'm moving my body I'm

keeping that energy up because if not if you're putting in this many hours you're going to die you're going to die of a stroke or something but you got you got

to make sure your body can take what the abuse that you're going to put it through you know so that's why like Fitness and all that like like spirituality it's a big part of what we

talk about because if you're if you're stuck in the mud there's a way to get out there I promise you there's a way to get out and nobody's

stuck yeah no one's really stuck it may seem like you're stuck but you're never really stuck there's always a way

out said now you got Le now you got a you got a team in here you got people you can reach out to ask questions you

got experience you got counselors you got legal we can get lawyers involved we we're suing a few people right now we're going to sue some more hopefully this

year so you got everything possibly need out of a company but now it's just up to you are you going to do the work yes or no and you're the only one that knows

the answer to that can I ask can I ask a quick question about uh partial releases

before we close tonight of course all right um okay so I made an offer on um a

property up in Michigan it was like like 26 acres and um I just you know shot

over a and offer like a six Monon balloon and with I even offered 20 it

was it's only been on market like a week so I heard 20% down so about 50,000 bucks and uh I came in about 10% below

their asking price and uh she said that they you know this was just an offer via text and I talked to the agent on the

phone she goes yep they like it this is a trust she goes I'm letting her right up told her we'd make sure that she got

paid like you guys said I told her she'd make you know I told her that of the 50,000 down payment her commission um is

going to be like 20,000 and I just wrote in there that it's like you're going to get paid your commission will we paid out of the down

payment um if and so anyway so she seemed fine with that um but then I got

to thinking the partial release just since I hadn't done that before um do I and she's going to send the contract over I think tomorrow morning for me to

review and sign so what I was thinking um I know that the partial release

language you know as far as like when I subdivide it and go to sell the parcels that will be in the DAT you know the promisory note or the Data Trust um my

question is is on the offer does that need to go like me in special Provisions

that like you know I am going to need partial release I don't want to like get this offer signed and then for whatever

reason like oh no you can't subdivide my property and I'm not going to release these

Parcels absolutely yeah U we used to write it in the special provisions and then uh you know as as time went on and

you start making lots of deals and offers U we were told by legal to to not put it in special Provisions because it

even says on there like don't don't put legal things in here so when it comes to partial releases that's kind of a touchy

area what happens if you don't perform you know what if the seller changes their mind and they don't want to sign the partial release so we have our

attorney draw those up for each each one you know it's I think it's easier to spend the 400 bucks or 800 bucks to have your attorney draw it up that way

there's very detailed language in there because what happens like I said you're ready to sell your property you're ready to go hey I need a partial release for

this 10 acres and the lady's like I'm not going to sign that like you said it's better get all

that up front so what kind of document is that then is it just as far as when

you're submitting that purchase oper even even if I were to have an attorney draw it up like is it just like held an addendum

to the purchase contract or usually when our attorney draws it up he has his own version of the contract so he doesn't

use like a track and then add an addendum uh he'll draw up his own contract and there there's detailed language in there that says yeah that

you know the the seller agrees that um buyer has the right to uh to get partial releases of lean you know as a property

sold and developed um and what what I would do is I would like draw off what

part you want and this is for Texas you can cut off 10 acres without going through the county so I would like

roughly meets and Bounds it based off of what part you want and then they that

way whenever they sign that they're releasing that part whenever you close because you have you're gonna have

to get a survey to cut that off the property right I just didn't know that I would need to do any of that like when

I'm just submitting an offer but you're thinking that I might it it depends it's okay so this is like let's say you have 100 acres and you're putting 100 $10,000

down or let's say 100 acres 10,000 an acre it's a million dollars you're putting $100,000 down you want 10% of

the property free and clear well you got to designate what part of the property you want free and clear whenever you put that 10 thou that $100,000 down and then

um you got to make sure you just and I wouldn't put that with your purchas sale agreement I would kind of add it in like Anthony said after they send the

purchase and sale agreement hey I want to throw this in as an addendum and have your have your attorney is this Texas or

another State Michigan Michigan Michigan so I would I would just as as long they know what you're doing up front say and

again this is why I ask you guys to just set it up to say look I know how to get the money out of this property let them

know that it's not a stealy if it was a steal you know I you know we would close tomorrow and give you all cash but if you're trying to do like a seller

finance or partial release yeah just let them just explain to them reiterate hey you know this is what I do for a living

I'm a professional um you know I know how to get you your exact dollar amount you know and just let them know that it

it might sound a little strange say look even even if uh if it sounds like something you've never heard of before

remember we do this all the time don't worry about it I'm going to help you navigate it um so yeah I would I would just let them know up front what what

you're planning to do and and it's it's pretty easy thing so here's here's your biggest rejection that you're going to get is the seller is going to say well

what if you sell off chunks of my property and uh you don't finish and you guys don't do the deal say Sir well you

know if I'm going to give you sign significant amount of capital up front um I don't intend to lose it right I haven't lost money yet in real estate

and I don't intend to do it today not with this property at least um but you know if I'm going to give you a significant amount of capital I promise

you I'm going to perform remember I'm a professional I'm not an amateur it's not my first time ever doing this um so you know I I promise I'm going to help you

navigate it even if it sounds confusing and I know why you might think that but you know I'm going to help you get to the other side no problem at all but I

know why you would think that and uh probably what we would do furthermore so you feel a little bit more secure is we'll start from the back I'll start

working on the back I'll sell the ugliest piece first and I want to work from from the back to front so that way worst case scenario you get all your

money and you still have the best part of the property mhm do you really sell your

ugliest piece first absolutely yeah right now we just closed on that 243 Acres we sold the very very furthest

back corner that you can get with a little piece of flood zone on it and that's to cover let's cover everybody's

butt because like not that we don't want to perform or we're not going to perform it's just that if we and we we'

disclosed to her like Hey we're going to sell the back part first because if anything you get the best part back

whenever we don't perform so you always want to if you're going to do that type of strategy you always want to make sure

you're you don't want to get sued in the back end because you sold the the best the best part look guys I sold time share for about

three years and we've learned like like the black magic of sales this is another reason why we don't low sellers is

because uh we we know how to convince people to do things right so it's like we're never going to use that superpower on anybody but sells 101 or or 301 type

stuff would be where uh the seller saying like hey what if you don't perform like sir you have to make them

feel like that's the most ridiculous thing you've ever heard like you know I'm not intending to make you an offer

where I'm going to be out of business by Christmas I have kids I have a family that I love you know we have a pretty nice house I'm not going to make an

offer that's so ridiculous and I would even use the word ridiculous that I'm gonna be out of business by the end of

the year so if we start this deal together I promise you I'm going to finish it like I would never leave a proper like that I mean it's just even

just hearing that you know sounds kind of crazy never have and never will yeah just make it sound so ridiculous like

sir I can't believe you just said that right and and there's I I'm saying it with like a little bit more forceful just because I want you to get like the the feeling but you know I would we

would never talk to a seller like beating them up like that and in some cases you have to but that's a whole another conversation um but for right

now this in this particular instance it's just like sir that's so ridiculous I can't believe you just said

that okay you know what's funny about that is I was uh negotiating with a realtor and that's kind of what I

negotiated with her I didn't know if that's something we would do or not but it just kind of made logical sense and I

was like We'll sell everything off in the back because the guy fear was we would leave him with a checkerboard of properties yep and um and I told him no

we'll just sell everything in the back first and then once we sell all that we'll just start moving to the

front that's it and that's it yeah I was going to say I hear Pace

morby says it all the time he says you just got to have that Godlike confidence and that's really all it is like sir

don't be ridiculous like I'm here to help I know what I'm doing otherwise I wouldn't be talking to you about this property I got 550 leads on my

spreadsheet and you're just one you're just the first call of the day so you know if we don't work something out on this one no offense I would love to buy

the property that's why I'm calling you but uh I'll follow up with you in a few months and and you could even mention to them too here's something that's that I

want you guys to understand if you're selling something right you're trying to convince right you're trying to convince

them or use these dark celles tactics to make them say what you want them to say in our business now what we've evolved to is we're just

educating here's here's the best case scenario here's a here's a decent scenario and this is typical how things go and this is worst case scenario why

them through all those steps we teach them about wholesaling we teach them about all this other stuff you know fraud in real estate where the more you

talk to them and the more you educate them you give them the confidence to make the decision to do business with you why because not only because you're

educating them but you're why you're building trust but you're telling them what where all the holes are here here's

what's going to happen sir you said you got three offers on your desk right now oh yeah I got three offers everybody wants my property I don't mind you said

mine's the lowest number right oh yeah yeah you need to come up a lot higher than that because uh I got way better offers than that why don't you take any

of those offers um um well I'm just trying to um

I'm just trying to see what I could get for it here's what's going to happen sir you're going to continue to shop your property out and you're going eventually you're going to step on a snake what's

going to happen is somebody's going to contract your property they're going to say hey I need three to six months to a year to two years and at the end of the

time when it's time to close they're not going to close and you're going to have lost two years of your life and who knows how much money so what I tell you

here's what I'm going to do all those contracts that you have on your desk ask them if they were going to send you a check for $110,000 the day you sign the

contract contract the same day did what did any of them say that well no no that's that's here's what they're going

to tell you they're going to say that's not how it works and the real estate's not like that if they start to say things like that they're not a buyer

take all those contracts place them into a garbage Canin the day you sign the contract with me is I'm going to send you a check I'm G to perform I'm going to close when I told you I'm in to close

period yeah and then I had an agent ask me well what's can you send us some

recent contracts or deals you done recently absolutely and I sent him an email with with contracts and Huds that

we closed recently and then they know we're a real buyer because you just knocked out everybody else anybody that's playing The Edge game like I

don't know that sure a deal you just kick them off the table and ask them ask them I got two

offers right now and I'm going to take either one of those why haven't you taken those either one of them just curious they're higher than mine um you

know they might be real offers I don't know if they're real offers yet but you say you got the offers in your hand um you know why haven't you taken those

let's see what they say just be quiet yep you say your point and you go silent and you wait till the silence is

deadening where they have to respond and put their foot in their mouth and then then at the end you say

yeah if they're not going to give you a check the day the same day you signed the contract I would just and I say it

exactly like this word for word I would take those property all those papers I would make them in one stack and i' place them into the garbage can because

you're going to step on a snake you're going to run into the wrong person they're going to try to get you

mhm like have you ever have you ever been sued for non-performance

yeah that's all it is guys educate the sellers we're not trying to trick them we're not trying to talk them into something educate them let them know

what's out there let them know what could happen if they do business with somebody else you know there's nothing wrong with that there's no rules against that so you're going to you're going to

run into problems I promise you the more you push this property out you're going to start to attract the wrong kind of attention to your property and you use

little phrases like that you're not saying it's scary you're just casually saying it like you're going to attract the wrong type of attention to this property I'm telling you right now I've

seen it a lot especially lately lots of fraud out there and now they start thinking oh damn I'm attracting attention to my prop there's fraud out

there like oh damn right so you start planting these seeds of doubt in their head and let them know like I trust trust me man I'm your guy literally I'm

your guy go to YouTube see me one thing I'll say too and this is prob of the final part he said it earlier confidence

confidence confidence um I did a call with Kyle earlier this week and man the

confidence it it it comes off like a punch in the face to the agent and the seller and whoever's listening so if

you're super confident about what you do and how you do it just overexert that confidence when you're on the call

and your knowledge base and it usually usually the sell the agent will be like

yeah these guys know what they're doing they have a track record they have experience they're doing other deals

like um and you can really kind of punch them in the face and kind of get them to do as you what you need to do and what

they what they need what you need them to do who's who's familiar with the term third party credibility raise your hand

or or put a one in the chat if you've ever heard the term third party

credibility sh hands show hands anybody not a lot of people have the cameras on we got a lot of ones we got a lot of

ones Felix Zack Jeremy Jason Junior Edward

Michael give us a okay perfect look look let let's say you're the this is your first day of class and you got a little

propeller hat on right you sit at your desk and you've never done this before you call a seller and they say how do I

know you're the real deal how do I know who I'm dealing with how do I know you're not a scammer sir if you want to

know who our company is can you have a pen with you oh I don't can you grab a pen can you grab something right with

real quick oh you start to turn it around on them now right you're recapturing control of the conversation

can you grab a pen real quick I'm G to ask you to write something down oh hang on let me grab a pen um so they come back on the phone you say look write

down the word hive mind hi i v m i n d and go to YouTube those are the guys I work with that's our company that's what we do this all we do every day all day

every hi mind land yeah hive mind and then land and just put type that into

Google or YouTube and see what happens and those are the guys we work with right so that's a that's something that

you want to talk about is like you don't have to be an expert even if this is your first day you could lock up a $5 million Ranch tomorrow right if they if

they question you if you if you don't sound confident they smell blood um like they do right these guys are rich and Savvy these sellers uh you just tell

them look you know I'll tell you exactly who we are go to YouTube and check it out if you like what you hear or if it makes sense call me back you know we

want to talk about your property that's why we reached out to you personally said give give them a chance to get off the phone you don't got to

close them on the phone you're not going to close a $5 million deal in the first phone call I just say look us up you know it sounds like there's might might

be a low level of trust here just because you you maybe you've gotten hit up by a lot of wholesalers a lot of people that aren't serious about buying the property I'm feeling kind of a

slightly low level of trust if if you write this down go look this up on YouTube and then if uh if you want to do business with this call me back you know

even though you're not in the video you're using third party credibility right so you can go from in your very first day of class to getting a deal

tomorrow by leveraging us so how do you make how do how do you

guys how do you how do you prioritize a deal that you have in your hand how do you get in front of us where your deal goes to the front of the line and we write you a check tomorrow um make the

offer you found a property the guy wants $2 million you know he wants to sell it he says he's willing to work with somebody make the offer say Sir here's

what we do it's listed for 2 million we offer roughly about half and I don't want to insult you or make you feel bad that's where usually about where we

start because by the time we improve the property we put in a significant amount of property we got to hold it we got to pay taxes there's a lot of stuff profit

right we're not doing this for exercise we're doing I say that all the time too I say sir I'm not doing this for exercise I'm trying to make a little bit of money here um so just tell them we're

we're doing this as a business model so if we're going to give you just cash tomorrow tomorrow you want me to take the cash out of my family's bank account

and then wire it to your bank account you know there has to be a significant reason for me to do that I need some kind of motivation to wire the the the

money out of my family's bank account and send it to yours right and there's a lot of risk involved with that you know

maybe my kids won't have something to eat if this project fails right but right now I have the cash I'm very safe I'm very protected so if I wire the cash

to your account account there's got to be some kind of incentive so I'm going to have a lower offer that probably what you're used to hearing already U and

then I'm going to make you a second offer the number that you're asking sounds a lot higher than we'd be willing to pay cash for it um so I have an idea

though I think I can get you the full asking price but I need to talk to my partners real quick and I'll have to get back with you but I think I can get you

the full asking price I got an idea but I need to I need to confirm this so I'm G to have to call you back uh and that's

it make them the two offers one's low and one's full price with some kind of financing terms if you set it up that way you're going get more yeses than no

because we get yeses almost every day now MH so yeah if you get a lead yeah

don't don't just send it to us and be like I have a lead make the offer make the crazy ass offer the worst they could do is say no and then we come back in

with a second offer that's it you can't mess it up there's a a saying that says you can't say the wrong thing to the

right person right and that's exactly the philosophy here you say oh man I messed up you know the guy's pissed off

he hung up on me and he screamed at me and he said the f off bam now bill doesn't call him back now Jay calls him back come in the other door and they

start all over again so I I'll tell you how to get our attention really quick I have a such and such deal with 10%

down that'll catch our attention every time yeah if you send us an inbox message that says hey I got a guy on the

phone he wants a million dollars he said he'll take 10% down in the rest in payments or the rest in 24 months guess

what you're going straight to the phone call you every everything we're going to do we're going to stop we're going to get on the phone with that seller and

see if we can close them right away while they're hot but if you call us and you send us if you send me an address and you're like the guy wants a million

dollars so what did he say you know and then if you say hey this looks like a

good 10 acre subdivide play put some ghost ads out what is a ghost ad a ghost ad is a it's a post on Facebook

Marketplace it's not on your stories it's not on your personal page it's on Facebook Marketplace um and you post an ad there

with a very vague description you cannot Market a property you don't have on your contract you might get in big big trouble I don't know how legal that or

illegal that is but you poting that on Facebook Marketplace it says Hey 10 acre tracks by this highway intersection

these two streets and um I want $199 right you know you're getting the property for 10,000 we shoot for a 2x so

you get you buy it for 10,000 n we're going to try to sell 10 tracks for 20 if the guy wants 14 and stuff selling for

for 16 in the area don't even send it to us unless it's some kind of creative deal zero down something crazy um so um

you know post your ghost ads if you send us a message that says hey I got a 10% down deal the guy says he'll Finance it

for 30 years he didn't mention anything about interest and oh by the way like somebody sent us one this week I got like 40 messages over the weekend ding

ding ding ding ding that property is going straight to the front of the line so that that's the order of of

importance you send us an address it might just get ignored make some kind of crazy offer get them to say yes if they say no put them on a followup and call

somebody else until you get somebody to agree to our basic terms but if they just want five million cash need a close

in in 60 days like don't even send it you're just clogging up the system work something out where they're going to give you some time like sir that's a lot

of money nobody's buying in this market I think you know that um I think I can get get you all your money but I'm going to need to work something out we're

going to have to figure out how I can get you the money it's going to take me a little bit of time I had a guy he says uh I said look I can get you the money

he wanted 6 million for like 125 Acres with a mansion on it and a 20,000 foot barn and uh it even had partial oil

rights and he said he wanted 6 million I said look sir I can get you the 6 million but it's going to take me about

24 to 36 months and I'll give you about 5 to 600,000 in your hand the day we sign paperwork and I'll get you the rest

like in a year or two oh man I I can't I just I can't wait I just you know I just I can't wait that long now it's been

like a year 14 months and I messaged them I said hey man can I go out to the property and take a look at it again yeah come buy my office I'll give you a

key right so he already knows what I'm after he knows I'm not paying cash he knows I want to work something out it

hasn't sold for a year I'm going to revisit the property now right and now the guy trust us first

he wanted to meet us out there you know he wanted to see who we were now he knows who we are here's a key to the place to a six to a $6 million ranch

with a mansion on it right so you build the relationships you be cool you be calm don't worry about it if they don't

take the offer right now you know just just remain we're we're all human man say use things say there's a I made a

video on YouTube I should post it in the group it's called um how to build scary Rapport is what it

was called something like that look look up my name how to how to build scary Rapport and uh you're using you're just

using all these different phrases like look sir I'm the expert I know how you feel I know exactly what you're thinking

I already know you talk to a bunch of people and they probably told you do this um but I'm just telling you right

now I'm I'm an expert at this I have a my backbone my my company that I work with uh they're pretty it's a strong

company they're very public they have a YouTube channel they all over Tik Tok so these guys are experts and I promise you

you're in good hands I know don't worry about they start asking these crazy don't worry about any of that I promise

you I'm going to take care of all that I know exactly how you feel those are all trust building phrases so if you feel

like you're losing the person to trust that's not the time to keep on going and negotiating and talking about the property and making the offer they might

Stonewall you because they don't trust you and I want six million cash I just want clothes and I don't want nothing right because they don't know who the hell you are but if you say Sir usually

when somebody's like oh I just want my cash I just want to close in 30 days I feel you know I I think maybe some

people might every now and then maybe somebody really means that but for the most part when I hear somebody say that I feel like maybe there's like not

exactly an established level of trust here you know you can find us on YouTube you know what I'm saying so usually when

somebody's oh I just want in and out because you don't want somebody to take advantage of you but I promise you the way that you're just getting more offers

and more offers and more offers somebody might try to take advantage of you sooner or later right but I'm not going to let that happen to you I'm on your

side I'm a professional this is what I do I'm gonna take care of you we're gonna make this deal happen I promise I do this all the time so you say those

little trust phrases like that and slowly but surely you start chipping away at them slowly but surely you start chipping away at them and then bam they

decide to do business with you look sir I don't need you to say yes right now I don't need you to say yes to anything but I'm going to send you two offers

one's going to be a for lower cash offer you know if you want if you need the money right away um but but if you want full price I'm going to I'm going to

have to think about it but I bet you I can think of a way that I can get you all the money but I'm going to have to get back with you but I'm going to send you two offers I'm going to send you one

for low cash and the other one's going to be some I don't know what I'm going to do yet but I'm going to structure it in a way where I'm going to try to get

you the full price that you're asking that's it you don't have to give them everything on the first

call think we're over time um Jeremy har says do we don't make two offers yes we

always make a low cash offer and seller finance offer and then make at least two offers it took me four to get to that

that that uh $3 million $2.8 million 400 nres four offers right and they they I

was so pissed off already because I'm tired of making them great offers you know and and I'm not a hot head I don't usually get mad but this guy frustrated

me already because they shot down everything I threw at him I even offered to overpay right so I was already done with these guys but we just threw one

last hellary the ugliest offer we had made yet bam they bid on it so I had a

lady hang up on me today an agent so I'm going to personally call her in six months and make the same offer so it's

where the fun begins I can call her tomorrow if You' like I'll make a lower offer hey I'll give you the number don't

T I got you I got you but can I add a quick minute to the time I know we're getting there but yes but but real quick

real quick before you go on I was going to say dead serious right so if if you guys get shot down by a seller don't be

afraid to have one of your colleagues inside of this organization or another go back in and make a offer a

stupid offer just go there and make something like an offer that embarrasses you to make that offer that way at least

you're anchoring the person in their mind like come on sir your head's in the clouds like you know you want 10 it's work Co come on let's be realistic right

so you're not lowballing them for the sake of just hitting them with the lowball to maximize profit we never do that but if their heads in the clouds

you know you got to bring them back down to reality a little bit and sometimes we do that sometimes we send in a second face so when this offer from this 400

Acres um I made the first offer myself and then I disqualified myself immediately when I got the guy on the

phone I was like look man I don't want to wait cuz we're there's no way we could do find I said I don't want to waste your time or mine that's the only

way I can buy this property you guys have a nice day I ended the call like in less than 2 minutes hung up on on the

realtor the seller everybody so I I excluded my I extracted myself from the deal and then we sent Mike Flores in to

make an offer then I sent Trenton in to make an offer so you know sometimes you gotta play the play the field a little

bit go ahead go ahead Bill sweet sweet appreciate it but then I guess I'm getting close to this one deal working with Mike I to follow the instructions

as you know called City and then as far as the uh to get the it has water on the property I know Daniel said it's at 20

acres right it was uh 30 minutes south of Fort Worth um of course I say the minimum for a setic they said it one

acre and then of course uh minimum for well is two acres so I know Daniel said we could maybe break it up to two to 10

acres IR ran ghost ads and for only five acres and 10 acres but it it it got pretty hot most people went for the five

acres it got like I don't know 30 or almost 40 messages um but the goal is the smaller we break it up of course the

more profit when we do the entitlement route is the goal right for something that small it's only 20 acres is not that big yeah so by the time you're

going to have to go through the entitlement process this is how you make a over price offer right let's say that

the guy wants a million we're going to offer them one three right but it's going to take me 36

months to get you the money right so I'll pay you to wait pay you $100,000 a year to wait but this is how we have to

do it so by the time you go below 10 acres and you're going to do five acre tracks might as well do one acre tracks or two and a half or whatever you can

get away with in the area you go for you go for Max density Max Max approvals to get whatever Max Roi you can and usually

for stuff like that you don't need to run ghost ads and that's this is the great question and everybody that's still here if you're if the if the plays

entitlements you don't need to run ghost ads because it's going to take 12 months to produce it and the Mark's going to change

anyway oh okay okay yeah and chances are if somebody wants to buy one acre track today I

mean you tell them it's going to take a year they might not want to buy so but anyway if you know you're going to take the deal down I would leave the ghost

ads up anyway yeah exactly it doesn't hurt yeah yeah but make sure you're comping one acre lots or two and a half

acre lots so if it's 100 acres 100 acres is only selling for eight grand or 10 grand in that area what are one acre

lots selling for or two and a half acre lots or five acre lots right because you know you're going to bust it down so

yeah you can run the ghost ads if you want to see like what's the maximum profit you can get there but if you're in an area that's in demand you're 15

minutes outside the city like we like right that's kind of the Kill Zone you're you're going to be able to sell those little those smaller Lots easy

especially if you're working in Texas by a city with over a million people if you get a lot of people guys are sending us deals out in the middle of nowhere two

three hours from Dallas like I don't know what I don't even know who would buy that I don't even know if there's people there we saw one this month uh or

this week that there was a population of 18,000 people I don't want to throw a million dollars at a ranch if only

18,000 people can buy are in the buyer pool go just go closer to the city where there's a million people yep um other

thing I'll say to that too is that you can overell the properties especially something like that so if they don't

want to wait you can o overpay the sellers to wait for their pricing as long as it makes sense you can look at

the the comps for one to two acre lots and if it's a 40 acre deal I mean you can get 20 30 Lots out of that easily

and you can will you can pay them if they wait like we could pay whatever price if they wait that's the biggest thing we could pay whatever price if

they wait as long as they wait offer more I don't know that's a crazy offer

in my opinion if they want a m they want a million for they want a million for uh

100 acres offer them 1.2 to wait a year then we turn that to 90 Lots yeah so

check that out the crazier their pric is the crazier offer you have the right to make if they have the audacity to post

some crazy price then you should feel proud to say hey I can I think I can get you that amount of money right and the

price you know the price is ridiculous and don't forget education education education teach these guys something you're not trying to scam them this is

not wholesaling houses right we're not trying to lowball ground water to make an extra 10 grand there's no need for it in this business right so what you do is

you let them know Hey sir um based on everything I've seen around there and all the you know I do this

professionally based on everything that I've seen happen around you it seems like you're about double or triple priced of what stuff's going for in that

area yeah yeah but there there's a they build an apartment complex up the street for me yes sir to get an apartment

complex you throw about 500,000 at it maybe a Million worth of engineering and then there's a chance that it could get shot down there's no guarantee that you

can get that same apartment complex just because somebody's up the street so I I know where your head's at I totally get it I totally get it and it sounds amazing I would do the same thing if I

was you but for the amount of money that you want to get I would have to put some money into the property to the two and

500,000 to a million I'm willing to put that money into the property and get you your full $6 million but to tell you the

truth I'm GNA I'm going to invest a lot of time and energy into this property and I don't know if I'm up for it right

now so let me do a little bit more homework let me see if there's a way that I can think of to get you that

whole six million but if you want cash I'm likeing about half of that I'm like 3 million oh I never sell for that

no sir that's why I said I'm going to try to get you the full six let me call you back D with your solid Finance

[Music] offer well one last mini question so generally before I I'll subdivide was

only minimum of 10 acres but now since we're doing the entitlement we go smaller so we can get a higher Roi is the goal

right yep okay gotcha more time the

better more time the better make a crazy offer think think about this think about helping people first don't be a don't be

a profiteer right I'm a capitalist but I'm also not like a vulture so think

about this you want to make profit but we're not coming in Like wholesaling Houses 101 you know what I'm saying

we're not we don't need to scam anybody or take advantage of anybody you come in as a consultant right if you're going to

do this business for long enough you're going to become a multi-millionaire you could probably stack a hundred million do in this business in five to 10 years

realistically especially if you're going to start from our platform so there's no need for you to

cut anybody's throat you come in as a consultant as a professional and as a specialist and so what you're going to

say is look I cannot pay you what you want for this property if you can we can right we just make a cash offer done

close it up but if they want too much if they're not willing to negotiate you know it's a badass property you know you

can make money here and let them know that say you know what I look for very specific property sir I've been doing

this for a long time and I'm pretty good at it I like this prop I think I can make it work but I'm going to end up

putting a lot of time and a lot of capital into it so position it that way is I have the knowledge and I have

the cash to get you paid exactly what you're asking without lowballing you let

me think of something I'm gonna have I'm going to have to think about it but I think there's something that I could piece together where I can get you your

PO asking price that's it we come back in and pit sell our finance without ever using those words and you get to deal

every time and you can overpay if they wait

look sir I'm telling you right now your property is listed at 2.5x of cash value you're way overpriced with that being

said I know how to get you that amount of money there you go thank you thank you all right guys stay prayed up go do

cool things make some money help people man help people you'll make a lot more money man this call was fire all right

have a good night guys bye see you next week

Ep 506: Getting Creative With Big Ranch Land

Daniel Esteban Martinez

Anthony Gaona