Ep 526: Meet the hive: Kyle Thompson

Transcript

welcome to another episode of Meet The Hive today we have a special guest Mr

Kyle Thompson now Kyle was a unique person we probably met 90 days ago yeah

probably almost exactly 90 days ago yeah 90 days ago now Kyle has done some

amazing things in the last 90 days that maybe we'll cover today but it's been

it's been very interesting to see him learn and grow over the last days and uh

it's just been interesting now one thing I'll say to this is not

everybody gets it quickly I'll say that that's my disclaimer but it can

happen can't happen so I think it's been about 80 days 70

days 70 80 Days yeah it's probably been I think I looked back it was funny I

looked back uh to see when you texted me to uh book The call or like to to book the call cuz I booked the call and then

you were like let's hop on tomorrow the next day yeah so yeah I think it's been either just under 90 something like that

call it 90 days so I was K Kyle's been one of those people so I tweeted out the

other day that we've had two students get seven figure deals in under 90

days and Kyle's one of them so congratulations thank you yeah yeah the

other one is Daniel who I haven't done interview yet yet I had I got an interview with him but he he got a 7

contract like in 40 days 45 days something like that that was super quick it doesn't very H this never happened

before YouTube we've been doing this for a long time so I think we got we got two people to do it in 90 days within six

months of each other yeah which is pretty amazing keep in mind I was negotiating that deal probably for the

since the first two weeks that I had started yeah so he negotiated the deal for two weeks two three weeks and he

negot did the hell out of that deal 80 seller was 88 years old everything had

to be Rel late to in person he wouldn't even just take a phone call to get information so oh I I remember this one

you were like every every negotiation took like 3 days longer every negotiation took at least 7 days at

Chapter 2: Negotiating Creative Deals.)

least so like I when I first joined Hive I found this one and it was like when

you guys had first introduced like hey we we'll do long tracks as long as they

as long as they hold it as long as they hold it and then I was like okay so I pitched it and even the agent told me

he's like seller's not going to go for it he's not going to go for it I was like well he's got to hold it for at

least 12 months and he's got to set the finance and he's like he's not going to

go for it he's an old man he's not going to do it he called me two weeks later and he goes Kyle good news that the

seller is interested in in your offer he just wants a little bit more down payment and but he's okay with 0%

interest I'm like what what does he want and then it was only like an extra 7% I

offered 10% down he wanted like 17% down and then he goes hey Kyle there's also another off-market track right across

the street I looked at it and I was like well half of it flood so as I was doing

more research I was like oh there's a there's a like a Wastewater sewer

plant behind this so I called the company and I was like Hey would we be

able to tap into this and I kind of explained what we wanted to do with the project if we were able to get sewer and

he was like yeah I mean I don't see a problem and I sent him like a loom video he's like yeah like I I don't see a

problem it's right there it's like 1,000 ft so that's a little quick synapsis of

kind of the negotiation and kind of what I spotted and he ended up adding that he ended up adding that second track in

there for even cheaper cuz of the flood but it lowered our price per acre and it

didn't increase our down payment yeah stay the same yeah so one thing one thing that's funny about this deal is

you took it we took it to Anthony and what Anthony say he was like hell no he like it's

ugly but what and then I I told Kyle I'm like yes it is ugly but if you get great

terms it turns an ugly deal into a good deal and that's what I told him and he

went he went to work on getting the terms and he got amazing terms this the one with threee s Finance

yeah so he ended up giving us um so this is the one we also learned some sauce on

I'm not an accountant but we learned a little bit of I mean I wouldn't call it

sauce I mean the only thing we need we need to know is that sellers if if we're doing 0% uh 0% seller finance they're

supposed to allocate some sort of that uh monthly payment towards interest but that's for themselves that's for their

taxes that's not for us to disclose so that's for them to kind of figure out

with their you know financial advisor but anyway the seller was like okay well

Chapter 3: The Benefits of Long-Term Entitlement Deals.)

we'll take just the minimum interest that the IRS recommends for this type of loan and it was a three-year balloon so

I mean we're paying like almost nothing in interest again you know compared to what our Roi is going to be so what was

the purchase price in this one like 28 uh it was like 3 million or like just over three million okay yeah yeah so

it's it's a good deal it's a good deal but I'm excited about this and one thing one thing we always tell people

especially with longer deals like this is that it's going to take time it's going to take 12 to 16 months to produce

this and seller gave us 18 months seller gave us 18 months so K negotiated that up front so especially with these long

longer entitlement deals we're trying to pick up other stuff versus

entitlements kind of pick up more more more regular deals than entitlements cuz tlements take a a lot longer and take a

lot more Capital intensive but we are like I said we look at it if it's the right opportunity and we get the right terms hey we'll look into it so I think

this one you negotiated like $115,000 of earnest money for the first 12 months

for the first 12 months 13,500 for the first 12 months which if you can get a multi-million dollar deal with $113,000

for 12 months I don't know if you I don't know if you can negotiate any better than that it's crazy I mean the

sellers 88 years old and he's letting us hold the property obviously we know he's not sitting there we're doing work we're

doing work during that time um the engineering and stuff but he's letting us hold the property for 12 months for

$113,000 so think about this so most time most people that invest in real estate they're always trying to buy then

value add so if you buy a house I'm going to turn it into a flip put $220,000 into it and then flip it

essentially we're doing that same process but we're value adding while we're under contract and then we purchase at the end of it so we've

increased the value of our end product and then we buy it so we have a lot better terms we get a better Roi with

our capital and it gives us a lot of Leverage and especially with time involved property

appreciates we get that upside for however long we contract it or we have the upside into the the seller financing

Chapter 4: Leveraging MLS and Creative Financing.)

and the due diligence period so big land and long time lines are they work well

in your favor and you can pay arv whatever it is right whatever it's worth

mhm pretty much as long as you seller financing this is one of the beautiful things about seller financing is you

could pay their price even a little bit of buffer room overpriced and still make a great deal happen with seller

financing because you're not having to bring a bank involved so let's let's backtrack just one second for those of you that just don't know what an

entitlement is entitlements where you take a piece of land and you work with your local county or city that uh has

jurisdiction over there and we prefer to work with a civil engineering firm and what they do is they do all the studies

they work with the county to kind of approve the plans for uh maybe a residential subdivision for housing or

maybe multif family commercial whatever whatever it might be industrial um so

obviously we're we're in the residential space so that's what we do um and that that's the plan with this property is we're working with the county to get um

approvals for a residential subdivision yeah but this this is this

is just one of the deals you got you I think we're we're still waiting one we're going contract yeah Monday should

be a uh go under contract for a bread and butter deal um like 30 Acres 38 acres it's like 38 acres so we'll do

like 122 acre lots um 50 cents on the dollar at list price um so that that

that one was just sitting on the MLS um actually that one was a little bit fresh both are on MLS right both were on MLS

both are on MLS so this is one of the Beauties about our strategies we can pick off deals off the MLS there's one

of the big things we always look for is a is a price or Finance Arbitrage or

even like a lot AC Arbitrage and I think you found one of one or all of those on all of on both of those yeah so and

stuff just sits in Ms so if you get if you get an eye for it you can get make some money on it for sure so under 90

days hopefully two deals by Monday one one one seven figure deal one multi six

figure one multi six figure but that one's like probably 90 days or less on that one so obviously that's most ideal

right is you know less time even if it's you know you make less money these entitlements they're they're big money

but it's higher risk and it just takes more time so the bread and butter is obviously these these subdivides but

like Daniel said if if you guys are getting good terms who know man just send it send it

over send it over let's look at it let's uh let's take a look at it cuz yeah like Daniel said that seller financing just

changes the game cuz you got to think about land um most of the time it's appreciating over time it's not just

Chapter 5: The Importance of Education and Continuous Learning.)

it's not depreciating so um it's just the assd class is it's unbelievable yeah

so like I said this is ky's results in the last 90 days like I said depends on

you are who are an individual and I think Kyle's Relentless as far as trying to get some action and trying to get a

deal done um I commend him for putting in the work and putting the effort to get these results cuz it was definitely

all him it was definitely all him and he knows what work he put in to get those just

those results right he knows he knows so

um what other things have you learned in the last 90 days in general

cuz one thing that's think about Kyle is Kyle started real estate a year and some

change ago so he's like 15 months in the game yeah 16 months in the game so he's been like he's been hanging around us

for 90 days or so um what has been like your your

educational epiphanies that have happened over the last 90 days so I think the one thing um that

kind of blew my mind was uh yeah the entitlement is cool it's a cool deal

that I got that that honestly the really the fun part was was the turns but really what blew my mind when I first

learned about hype mind and what these guys do is uh like the 10 acre subdivide plays where were like no money out of

pocket to double our money that blew my mind that I was making like 10 15 20

grand assignment fee sometimes a little bit more on a house and I can make 10x that money on a

quick 10 acre subdivide and maybe the same amount of time but with still no money no my own

none of my own money on of my pocket so one thing I like I I love about land is cuz you have the ability to ask for

longer time timelines and they're not out of bounds in most cases so by you asking for a longer timeline you actually have the ability to Value add

even even up to the point of selling before you have to put up a significant amount of money to even purchase it so

land is the only asset class you can actually pay the seller off with their own property yep you can't do that with

any other asset class you can't buy 50 units of apartments and you need to put 10% down you can't sell five

units right you can't do that yeah it's it's all one package but if you buy 50 Acres you can 100% sell 10 acres off of

that and that can be your down payment to your seller exactly so you have the

unique unique ability to creatively put together a deal with little to M out of pocket just by

negotiating so yeah that was that was one thing that I learned that just blew my mind I learned that right off the bat

and obviously um that's why I worked so hard to to get a deal and and start getting

deals done was just because of learning that concept like right off the bat but um just learning about notes notes and

and um just how to Value seller financing and how to how to Value

balloons and of course um I already knew the concept about seller finance but not

knowing how to actually put a value on what that looks like and what it can do

in especially in the land space because of just talking about the appreciation so it just blew my mind that a seller is

just going to give us 0% seller finance on on honestly most cases if they're open to

seller finance they're going to give us 0% like 85% of the time like they're going to give us 0% yeah one thing I I

harp on with land especially big land is you can get some type of seller financing on every deal whether it's 90%

or 20% doesn't really matter you can get some type of seller financing on it you just got to ask and drill into it

because a lot of these sellers have Equity so you got to really got to ask some tough questions um one thing I want

to ask you was if you guys are interested in notes what book did I tell you to get uh to learn more about notes

uh it was in invest invest in debt invest in debt so verybody listening if

you want to learn about seller financing and notes and balloons and all that stuff and how to Value it invest in debt

by Jimmy Napier it's one of my favorite books simple it's very simp short read very

simple very short read and it's a lot it's very informational so um maybe we'll put the link in the

description but the 10bii calculator too yeah 10bii five bucks on the App Store

$5.99 it's priceless priceless priceless priceless um if you guys been watching

my content you see stuff I do live in person on the weekly calls I pull the calculator out a lot I use it a lot I'm

very proficient with it I can punch out numbers pretty

quickly and I can find an Roi and time value of money and it's just it's a good

thing to practice with especially if you're messing with uh seller financing and Roi and stuff like that it's really

it's really a great tool to learn how to use proficiently but man um it's been

amazing to see you grow I I think I told you this one recently I don't know we

met a couple times told a couple times on the phone but um Kyle's one of those people where I

know he's going to do great things for a very long time and how old are you 24 24

cow's learned a lot at 24 I didn't start my first business till I was

26 I was 25 26 so for him being 24 knowing a lot he's going to do some

amazing things in the future he's definitely a person you want to watch out for because he's going be do some

crazy stuff um I think uh me looking back when I was 24 even when I started

at 25 I definitely would not see foresee

what I would be doing now I kind of have some foresight now of where I'm going but back then I definitely didn't but um

it's very interesting to see young people and their trajectory that they

can create by putting himself in the right in the right position and in the right place to receive information I

think a lot of people they get so blindsided but they they feel like

they know it all and they're not able to receive any more information they can't grow anymore they can't grow anymore

yeah me I talked to Kyle about this too you can go to Instagram and look up

house flipper and there's house flippers that been flipping houses for 30 years and they'll continue doing it till the

next 30 Years you know and what we what we teach about land and

land investing and it totally blows houses out the water it blows a lot of different classes out the water so I

think you have to be opened Ed on other opportunities and other information out

there because you don't really know um where the cap is like even me

I'm learning every day literally every day and it's fun it I don't know where

my trajectory is like I know where I'm going but I don't know what information it changes rapidly it changes rapidly

like I I feel like 2024 for me person personally I

feel like I've learned 10 years of information just and right now it's and it's middle May if you're listen to this

might come out in June but right now it's middle may this year 2024 I've learned I feel like 10 to 20 years of

information that I could have learned the hard way and I feel like I learned it in the last 6 months so my trajectory

even 6 months ago has totally it went a little bit further down the road

yeah I think of it in in like terms of of the stock market too you're like looking at a chart it's always

constantly going up and down but sometimes you'll have a big pushup sometimes you'll have like you

know some sort of fell fall off and then some sort of down and then you're just

up up and down always but that trajectory is always changing um but they they really can't

take away from what you already taught exactly that's one of the biggest things man you bu if you build upon your

education your uh your end result is Limitless literally Limitless I

everybody does know I used to I used to be a truck driver and I used to run my own Trucking Company when I used to talk to drivers I I would I would go through

the hiring process and they' be like oh I've been a truck driver for 18 years

and I'm like so what you're telling me is you did one year truck driving and then you have 17 years of doing the same

thing behind it and no growth beyond that and then they would look at me sideways and like

what like you tell me you did the same thing over and over again so you got one year of experience 17

times it's like just a neutral trajectory it's a very neutral

trajectory and that's that's the point is it doesn't matter your experiences it matters about your growth during that

experience and what you do with it because a lot of people they may learn

the information to grow but they never utilize the information to grow beyond that right and you also got

to you got to embrace the we talked about today embrace the struggle embrace the hard times like you don't want this

handed to you man like I I think I Al I think about it all the time of those people that are born into just

straight wealth like just an an absurd amount of money and it's just like the

only thing they can find for fun now is to to have power and that's all they have fun with like because they they

haven't really experienced struggles in like the what a normal life can actually feel like and yeah we talked about it I

don't want this handed to me like the the this the the struggle and the the the climb to get there is what's

fun my my my I feel like I put in a lot of work and effort and it's getting a

lot less this the struggles changed like when I first started it was a lot of

manual I'm going to do things myself but now it's changed from manual struggle to

a mental struggle right it's ch it's change the struggle

has changed a little bit but even the mental struggle like I I always think about this like Elon Musk is running

three multi-billion dollar corporations like imagine the mental capacity of that

person like I don't know I'm not there yet the thing is anyone has that though

you have the capacity to get there anyone has it it's just you you got to have that breakthrough and you have

multiple breakthroughs multiple breakthroughs I mean when you have three comp yeah multiple breakthroughs and I

mean you got to have the tenacity that guy is insane it's multiple

breakthroughs over your over your lifetime and distance so me Anthony's a

big fan of Elon Musk and he always equates to um Elon Musk is being like an

alien because he sees he's a very Visionary and he sees the future of what

things could be but he's creating it um or buying into it and then create making

it better so like he didn't start Tesla but he bought into Tesla and then he's guiding it on directory based off his

vision so it's having what's not there to make it physically tangible MH that's

not there I mean that's part of the big thing about being a Visionary um but we don't even me and you don't have to get

to that extent like I don't have to instead of going to Mars we're going to Jupiter like like I'm not you don't

have to do that but this is one of the things like I think Elon is on a totally different level but us as individuals and people especially listening to this

you just need to get we're not Reinventing the wheel what me what me and Anthony do and what Kyle's trying to

do and doing we're not it's it's been done before and there's a path laid out

and you just got to follow that path and sometimes it takes longer and sometimes you get a shortcut but shortcuts aren't

always there around the Cor corner it's like playing Lottery People win the lottery but not everybody wins so like

going back to breakthroughs I think of it like this so you have a breakthrough you get to a higher level cuz there's

levels of this absolutely so you go through a breakthrough you get to a new level that's your Bas line that's his

new Baseline that's your new Baseline but that Baseline could be badass like for that time being could be badass but

then you're like I want more then you have another breakthrough and then that Baseline you're like this badass but I

still want more and then you keep having more break through and that's what Elon had Elon had it but on on an

extraordinary level yeah and he just had breakthroughs just I mean his breakthroughs will be infinite you know

until the day he dies so I have a question for you so we're talking about

baselines and breakthroughs not that I'm retiring but as I've matured and I've

been doing this for a while there's going to come an end where either a I have to exit the business or I die right

it's bottom line happens to everybody I've been I've been thinking about it a lot more like said I love what I do and

I love the product I produce for the world which is inventory and affordable

housing but I always think about who is going

to take on that responsibility behind me and I have to make

sure even if I die or I don't want want to do it

anymore who takes on that who who's going to take on that mantle and the reason why I think about this is cuz

there was a there was a whole Twitter thre about the dude who created Myspace created Myspace I think he had

like a $540 million exit he sold it Myspace and most Founders would start

something else and kind of keep doing it but he just stopped he just lived life he went and surfed and started pick

taking up new hobbies graphy and golf and all these different things

and I don't I don't know I don't know I'm not at that point

yet so I it's really hard to me to think about what I would do after I'm done

whether I hand it off or I don't know it's just something I think about but do you ever think about stuff like that

like all the time your exit all the time I'm like first of all it needs to I

don't think you can even set a number on the amount of money you would make before or like you have your quotequote exit before you if you were to do it

before you die obviously like I don't think it's I don't think it's in terms of like a number that you hit but it's

more in terms of like either a feeling of like I'm just I just feel like I

can't accomplish anymore like I accomplished everything I wanted to accomplish and I'm done and like I want to spend more time with my wife or my

kids or my family and that's it I mean I I I feel like most people in

entrepreneurship or um or being in business they don't look at it when they make these exits as terms as some of

it's business plays and some of them they're just like playing Monopoly and they just want to keep upgrading and stuff but the people that make exits and

they just stop it's just because they can't put a number on like the value of just spending more time with family

picking up Hobbies I think about all the time like I don't know like playing guitar just like grilling out hanging

with the family going on a boat and like it's not even about like drinking

alcohol doing drugs like doing all this like crazy stuff when you when you retire and Stu it's like no it's just

about living living and just going back to what we what we were made for before

monetary things became I mean we've always traded something whether it was paper money gold whatever it was

seashells whatever time like whatever it is like we were always trading something but I think we just kind of go we've

gotten so into trading our time for money that

we kind of forget what really matters and it's just like family spending time and having connections and stuff but

money is really the gas to get there quicker that's it it's and like you hustling in

a in a 9 to-5 W2 I mean nothing against it nothing against

it but it's probably not going to get you there to spending more time and and with the people you love and doing

things that you love quicker than being an entrepreneurship and going through hard for maybe 10 15 years and then

you're able to make an exit or you're able to kind of step back into a smaller position and then you can say yeah like

I I can spend more time or I can take a one month vacation it's nothing's going to crumble you know so I had I had this

I had that same thought process so I I remember when I was a truck driver and I was talking to one of the guys and for

everybody here that were Trucking but they had like seniority you have like your seniority of like every every job

whatever and one of the guys is like I just got seniority enough to get a

Monday to Friday afternoons and I'm make and I'm making six figures right because

he has he has a top top top pay and he has a good schedule and I'm like I like

how long have you been here he's like 11 years and I'm like 11 years is a long

time and he's like what about those guys I ask him what about those guys oh those guys have a good like what do they got

oh they have Monday to Friday and 6 a.m schedule they're home by 3 it's amazing

like how much they make oh it's like they make like 1:15 and I'm just like how long they've

been here oh 15 years there's guys retiring so once they retire I can go up

in seniority and I can get it hopefully in the next two years and I'm just like it's just like a it's all like a big

dream man it's too it's they they sell you the dream and it's like it's too

long it is I mean I I okay let's take a back of Step and he's talking about I've been here

for 10 years and they gave me this think about putting 10 years into yourself 10 years into yourself like

hard work like 80 hours of work but you're for yourself not someone else

yeah what what you can produce so one thing one thing you have to understand as an

employee you should bring a multiple on your efforts to your boss slash business

so when you work for yourself you get to take that roles and responsibility and you put it into your own business and if

you don't you're stealing from your company think we talk about this like if you're if you're not

producing an Roi you're you're almost a a leech you're dead in the water you're

dead in the water yeah it's disrespectful to yourself honestly it's disrespectful to yourself and I've seen

and and the people around and your family and your friend it's disrespectful cuz you know your

potential yeah I like I said I I've seen it I mean I work I remember working on the docks and there'll be guys like I

would I would outwork them and they would barely they'd show up for work and kind of just skate by and you'd see them

in the bathroom break they' take extra long bathroom breaks and who knows what they were doing but right I I couldn't

like I felt like the day took took longer when I did that and it wasn't fulfilling yeah and I had to be busy

with my hands cuz I could work I would work back in those days I worked 10 hours 12 hours and it felt like six cuz

I was so B I was keep myself busy but I don't know I it's just P things have

changed since then and my perspective has changed and I

do I think I talked to Eddie Wilson about this on a podcast he's like episode

501 and he's like he has he said I hate the term work life

balance because my work is my life yeah that hit hard my work is my

life and balance is existing as balance is

everywhere and that that one hit me hard too cuz like I do I I love my schedule

that I have now and I do love what I do

in general because I know it produces good impact to the world

and yes I make money too but there's multiple wins that happen through the

process of the way I make money and that's why I like that's why I like it yeah it's the I like I like the real

estate and wholesaling and land and all this stuff because we

take properties that need to be solved problems that need to be solved IL

liquid assets that would never sell for cash um taxes that would be paid up the Wu

and we negotiate seller financing and they keep more more money and pay less to Uncle Sam like I help people

transition difficult issues into money and it's very fulfilling for me very

fulfilling just being creative man just being creative being creative is just so when I was doing houses and you could be

creative with houses too don't get me wrong but it's just it's so much easier as the price goes up

so much easier as price goes up you have way more negotiation room you have way negotiating power with with a higher

price point I was just thinking about this you you see like artists they paint beautiful pictures right I feel like the

deals we negotiate are beautiful pictures right they're are they're our version of art 100% it is it's a work of

art like yeah I just I just think I just it's almost like just think of the craziest you

could you could put in an offer just do it like and obviously it's it's honestly you

could do almost anything in a real estate transaction as long as the seller and the buyer agreed to it agre to it

and that's really it I just thought about that too I I told my wife's like you're not like I feel like I'm not

creative but I am creative I'm just creative in real estate right and I

never really thought about it that way everyone has a creative mind they just put it in different places like I wish I

wish I could paint I love I love painting right I love paintings but I can't paint I can't even write my own

name but man some of these offers they're some beautiful work of art I can't even spell my own name but

man I could put an offer together oh man I feel like I need to

cut off the second part of this episode and like real estate Creative Real Estate is

Art that's could probably be like three parts I don't know this it's funny but I

don't know it's it's exciting to see to to exciting to see what people could do with the with with the right

information um we hear a lot of times about people getting bad information and

it it hurts it hurts when people do that but it's cool to see when people get the

right information and what they can do with it and I know it has Limitless potential in the right hands

absolutely Limitless potential so and even me like I said I don't know I know

where I'm going but who knows what art I'll be making in the next 5 years there's something we're going to learn

and it's just going to be like we look we're going to look back at this conversation now we be like damn we were dumb asses back then and it's crazy like

I look at myself a week ago and I said that I'm like damn how did I not know that a week ago or a day ago like

you learned so quickly you're like bro how did like I look back at my day yesterday I'm like I was an idiot

yesterday but it just it shows you how much information's out there for you to learn

it's endless it's it's it's it's endless literally endless and here's the crazy thing when I was Employee I knew a

fraction like a tenth of a fraction of what I know now and I thought I knew a lot back then

right so it just shows you how much Limitless information is out there that

can be harnessed for good to create your own version of Art

for sure crazy man uh thanks for tuning in

for coming on yes sir for part number two or part one depending on what order I put this in maybe three maybe

three but now this is good Meet The Hive with Kyle Thompson there you go

[Music] [Applause]

English (auto-generated)

Ep 526: Meet the hive: Kyle Thompson

Daniel Esteban Martinez

Anthony Gaona