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In this episode of The Hivemind Podcast, host Daniel Martinez is joined by co-host Kyle Thompson and special guest Darcy Marler, a seasoned real estate investor from Calgary, Canada. They discuss Darcy's extensive experience in real estate, his preference for land development, and his current projects in the United States.
Chapter 1: Introduction and Guest Background (0:00 - 1:02)
Daniel Martinez introduces the podcast and his co-host, Kyle Thompson. They welcome Darcy Marler, who shares his background in real estate investing for over 20 years, his transition from IT to real estate, and his initial ventures into the US market.
Chapter 2: Development Strategies and Market Preferences (1:03 - 6:37)
Darcy discusses his shift from Canadian to US real estate, highlighting the faster permitting processes in the US. He shares his development strategies, including new construction and raw land development in Texas and Florida, and explains why he prefers these markets due to their demographic trends and favorable business environments.
Chapter 3: Financing and Project Management (6:38 - 10:59)
The conversation delves into Darcy's approach to financing his projects, including raising capital and leveraging government incentives. He emphasizes the importance of understanding local market conditions and the role of team-building in managing developments remotely.
Chapter 4: Creative Financing and Entitlement Processes (11:00 - 22:07)
Darcy highlights various creative financing methods, such as partnering with sellers and structuring deals to minimize upfront cash requirements. He shares insights into the entitlement process, the benefits of working with municipalities, and the importance of flexibility in development projects.
Chapter 5: Personal Insights and Future Plans (22:08 - End)
Darcy reflects on his favorite aspects of land development, the sense of pride in creating new properties, and his long-term goals. He offers advice for aspiring developers, including the importance of adaptability and creativity in real estate. The episode concludes with Darcy sharing where listeners can find more information about his work and resources.
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Transcript
hello welcome to the H withs podcast I'm your host Daniel Martinez today I have special co-host Kyle Thompson with me
and I have a special guest Mr Darcy
maror now Darcy maror has been a real estate investor for over 20 years and
we're gonna have a good conversation today I'm excited about today hope you all stay tuned so Darcy what part of the
country you from today actually I'm in Canada actually so Calgary Canada Canada
wow okay we've had a few Canadians on the podcast have you always been in Canada or you did you invest in the
United States at all I've done the us as well y okay we' had a few Canadians on the show
is it do you like and this is a preference but do you prefer investing in Canada or United States it's a lot
better now to do in the United States especially what I'm doing with the development the new construction the permitting part is just way way shorter
in the US and you can get things done a little quicker that's what I tell people now this is a good question for you so
you have you when did you start investing in the US and when is was
Chapter 2: Development Strategies and Market Preferences.)
there like a pivot point where some law came about or something that made you like a I should invest in the US now no
not it's uh it's been recent the last few years the uh so I'm in in the province of Alberta which is in the west
north of Montana it's kind of like Texas we're conservative and oil and gas and cowboys and all that so but we're
because of the oil and gas we're prone to these boom booms and bus and Booms and buff so I've done development about
nine different jurisdictions but I just got tired of that right so I want to invest in in places that are you know
just a little more given my gray hair I want things to be a little more even Keel and consistent and not too much
excitement so yeah so places like Houston or Texas and and Florida got
great places to to be for that amazing what type of development are you doing
in the states right now so a couple things so uh doing some new construction
in Florida and then also I just did a money raise uh in to do some raw line
development in just in Houston in Houston or Dallas I'm still trying to find the piece of dirt but yeah I raised
about a million too and I'm looking to to buy whatever that'll buy me 20 acres let's say and develop some some raw lots
and and then sell those to builders and let them build out the homes what part of Florida are you investing in or the
uh the Gulf side so in the Fort Meyers Cape Coral St P along the GF Coast there nice yeah
it's a great area right now I'm in Orlando I'm in Orlando area is booming right now for land the High Acres and
Fort Myers K Coral that whole area is just a lot of infill lots and we've sold some infill Lots there too I think you
know there's migration all over the States you know typically from kind of the higher tax higher bureaucracy kind
of areas to the lower tax so from the California the New York the Chicago down
south but even with in like a Florida like for me personally the the Atlantic
side the Miami Fort laud that's just too crazy too stressful too much driving I personally like the the more laid-back
atmosphere of the gulf and even into Orlando so I think you're seeing movement even between this in between
states I 100% agree let's talk about investing in Canada how 23 years that's
a long time that's it's a lot of experience were you always doing development or did
you start off single family and doing other stuff first or what was like your kind of journey into no so I was I used
to be a computer guy years ago I don't know why that's that's a very common theme in real estate investing everybody comes from it anyway so from the late
90s into the 2000s I actually was living and working full-time in South America Venezuela Columbia Mexico Brazil loved
it met wife down there kids were born there got burnt out didn't want to see another computer so I came back and I'd
always been interested in in real estate so you know pretty much all they teach is flips and rentals and new and uh and
uh Airbnb now but back in the day it was just flips and rentals so okay I guess I'll do some flips and and I started to
do that and a couple of those didn't sell okay so now I guess I'm a landlord and and that started the journey but
I've done pretty much everything flips you know long and shortterm uh rentals flips Spurs condo conversions new
construction L development so I you know I got boarded easy so I was flipping around doing all this kind of stuff and
again like I said you just get tired of the booms and busts and say no I just just want to get off the roller coaster
make so one thing I really want to hit on I think is funny because I me me and
K we're both land guys we do a lot of land stuff but why land after everything
you've done why land because a lot of people they they don't understand land and I think you kind of understand land
a little bit here so why after doing everything you end up doing Land Land Development so let me say why I don't
like some of the other stuff I guess so I've had you know close to a,10 240
doors in my day so I just never enjoyed the rental part never lik the tenants and the toilets the fixing up old crop
never like the eight or 10 year I got to hold this thing with a JV partner for that long before I get the appreciation
so basically nothing really about that whole world I enjoy on the project side
the flips the condo conversions that I was my own on-site supervisor so you're
down to the site every day again you're fixing up old crap you're at Home Depot every day for 18 years you just get
bored and tired so what attra me to the new construction Land Development land parceling you know some of the
entitlement strategies that we'll talk about here it's new you get to do with new buildings and and you get to be creative and you get to you know
literally watch your you know whether it's horizontal you get to see the the dirt get moved around and and and
trenches being built and pipe being put in the ground and then you're building the roads if you're going vertically you get to see the house or the the fourplex
whatever your building coming out of the ground so the sense of pride is just you can't compare it you know you're sitting
back at the end and you're watching this fourplex that you just built versus renovating a you know 1950s piece of
crap like s of pride is just way way different so I I that's kind of what I'm addicted to is is that you know I've
done some subdivisions and you know you drive through that even today just the sense of price you know this exists on
this planet because because I did that that that's that's a pretty cool feeling people have housing because of me great
absolutely we resonate with that a lot we resonate with that a lot plus you know I grew up on a farm so
maybe you know I like to smell of dirt I don't know maybe that's part of it too but no I I think the coolest thing is
Chapter 3: Financing and Project Management.)
that you have a clean it's like artist there's a clean slate canvas that you get to create and mold something that's
going to be there for a long time it might change in the future who knows but at least it'll be there for probably 30
to 40 years and you kind of molded that future but you know so even if I'm doing
the birth strategy or flips whatever you know I've got this 1950 50 you know it's 1,000 square ft you know 7 and half F
ceilings bedrooms are 9 by9 you know I can't you know maybe I knock out a wall to you know they used to have the
kitchen and the and the living room separate I knock out the wall now it's one big room but you know even if I get the latest Cabinetry and flooring and
lighting fixtures you're still it's still dated like you said so it's it's not a clean slate you're working with
the existing limitations of that building here everything's brand new Clean Slate clean clean canvas and you
can you can really you know if you want 9 foot sailings on both the main floor and the second floor go nuts you
whatever you want yeah that's pretty it's definitely interesting how are you
securing financing for these projects and like what what type of projects deal size are you looking for so I did the
like let's say Houston for example so I did the money raise first and that's becoming more and more I think that's going to be more and more of a bigger
thing a lot of times now you go if you don't have the money for example you know you find the property is kind of
the traditional way doing it but more and more now the seller or the seller's realtor is going okay you have proof of funds you got some money you're going
waste my clients's time for the next three or four months while you go and frantically raise money so I did the
money raise first and so now that kind of limits you uh it doesn't really necess limit you but it limits you on on
the size of the project right so you know let's say on North part of of Houston acreages cost you know 200
250,000 an acre well I'm going to be able to buy so much land some place else where 50,000 an acre I can buy more over
here it's you know it's 20 to 30,000 an acre I can buy more right if I go more into the inner city maybe I can only
afford a couple of acres and then do apartment building so you know there's kind of pros and cons to everything uh
if if you've finding the land first then you got to raise the money if you raise the money first then you you know you
might be looking at different size of scope and you got to be flexible on the amount of land but the other thing as
far as financing goes too is what's great about this world that development world is that because of the housing crisis um there's government
incentives uh rebates you know helping the financing uh with that so that you
know and you've got a lot more options for for that in this development world as compared to flips and rentals because
we're adding we're adding units and helping like I said the housing crisis so there's a lot more options in the
financing in this world I feel how how are you finding those financing options
that are maybe state or local wide is there like a tip or trick to that yeah so typically you know at all three
levels you've got the the municipal level the state level and then the federal level there there's different uh
uh different things available like I said it could be a tax rebate incentive program maybe it's instead of the
financing being traditionally 75% loan to cost for the construction loan maybe you can get up into 85 or 90 so a lot
less cash required but you know just kind of you're looking in uh you know doing Google searches at the municipal
or state or federal level depending what you're trying to do uh specifically if you're doing multif family like kind of
over five units if you're building apartment buildings whatever there's there's quite a bit available there because yeah the government is trying to
incentivize in certain places we're building more more units you know that thing I talk about too is is uh you know
typically we think of Land Development as just outside you know the outskirts of town urban sprawl were just growing
and growing out there big companies you know building thousand tract homes I kind of bring It down to to kind of
normal size investors level well let's just start with an old house on a you know 50 foot lot what can we do with
that well we can tear down the house and build a a fourplex or a sixplex more in the inner city we can help re re
Revitalize neighborhoods kind of normalize neighborhoods like that so again the the government's right into
that too they like to see that there's always ability you know to if you're if you're building kind of for the lower
income crowd or for seniors there's there's lots of information and stuff there's again incentives to do that
interesting how are you managing like boots in the ground because you do you come to the states often or do you
Chapter 4: Creative Financing and Entitlement Processes.)
have contractors you work with that locally in different areas or yeah so
I'll a couple ways so one of the things like I said I was on site supervisor all the time doing my own stuff and you get
bored of it right and then you realize you know you don't have to be a lone wolf you can you can delegate some of this stuff right so Houston I've been
down Houston like five times in the last couple years a you know getting a lay of the land uh building the team you know figuring
out what's what's different about it and there's a little bit different you know I KN I knew Houston fairly well like I
said I was in the in South America in the late 90s my client was a US based uh multinational oil company out of Houston
so I traveled to Houston quite a bit so I know it quite well but you know you just got to get up to speed with what's
new so basically you know you're building your team you're learning which sides which parts of the city are best
for for what you know there's kind of a different Houston's kind of unique in that up north north of this city in The
Woodlands con Woodlands conare it's very you know very wet very Lush you know some really great trees there if you go
west into the Kad area it's really dry right so again you've got some different things you got to learn about there's uh
you know some flood issues there you know you might find a beautiful piece of dirt but you look up the you know a
flood map and in the 100e storm you're going to lose 80% of the of the of the lot so these are kind of some of the
things you got to worry about when when you're looking for landing
do you prefer uh one market over the other do you prefer Texas over Florida or is it just doesn't really matter to
you I prefer again one of the things that I'm used to like I said the up and
downs but the other thing is it does take longer to get permits so uh I've got dur isms and one of them is in
andout quick so if I can get a permit uh you know in three to five weeks versus
you know 10 months I like that a lot so I like I like the South because they
that's where people are moving to so you know you get the demographics that that will will back up adding new units
you've got a lower uh Dependable Workforce the lower cost Workforce you've got a lot less bureaucracy a lot
less fees and permits a lot less time to do it so it's kind of the the overall uh a the government involvement is it as
small as possible and then you know are people moving there you don't want to be you know you don't want to start and
build 10 units in a in a town where they're you know boarding up Main Street kind of thing right so democratics have
to have to go with it as well exactly exactly so in in the case of Florida and
Texas because we we've only done um you know some bigger projects entitlements in Texas what's the difference there
between the timelines that you're working with in Florida as opposed to Texas if you're looking at like apples
to apples on a deal like maybe like um some sort of entitlement deal that is very similar to Texas and Florida but
timeline wise yeah so the time well again even within a Texas like you've got San
Antonio which is longer you know they call uh San Antonio blue City and a red State kind of thing right so again you
kind of even within a I can't even globally say Texas is is perfect all over it um but that's part of you know
all strategies and I've done everything you know there's pros and cons to everything right rentals you got tenants
and like I said eight or 10 years to get it done flips you're always on the hunt you know always there's a lot of pressure to for me to find the next one
to keep my my my team bus kind of the downside of the development world is you got to spend some time
upfront you know learning what's different you know um you know we're taught all we know most of us is flips
and rentals so you know what is zoning in density what is highest and best use how do you increase the value of land
but another thing is geographically where are we going to be because it is such a you know I can this this place
will take you know three months to approve my zoning change this place takes two years right and everything in between so we're investors we want to
kind of get in quick so let's not let play in the two-year Place let's play more in the three four month place
that's part of part actually pretty easy right like lots of people know how to build stuff
so it's more the let's take some time think like investors let's you know learn what we got to learn let's figure
out where we're going to do it start to you know start to look analyze that put the deal together put the funding together but then our team's doing all
the back and forth with the city getting our permits so it's actually a pretty good return on time we can just sit back
and think like investors and and at the point where we're ready to to go our team will kind of take over so you keep
uh talking about your team it sounds like you you built out a pretty good team is it so are you using like agents
for boots on the ground or I know Daniel kind of touched on a little bit who are you using for your main boots on the
ground like who's like if you needed someone to go walk something for you like who who's the first person you're going to call so um no good question so
basically we got some new players as opposed to the flip and Rental World so a realtor is more involved here uh a
real tourist kind of comes in three places one is they'll help you find the initial land or the original old house to knock down they can help with the the
filling out of the you know the back and napkin profor you know what is my you know and sale going to be or if I'm
going to build it and keep it in my rental portfolio you know what what can
uh the rents be when I finish building this stuff and then finally at the end you know they'll help you sell it as
well so a realtor kind of takes on a more a different Road there we we're we're dealing with surveyors civil engineers
if we're doing the vert or the horizontal we're civil engineers planners if we're going vertical then we're into Architects or architectural
technology so we got some new players and so yeah so when I'm down there depending what I do right so if once you
get to the point let's say I'm going vertical and I'm building a you know vplex or something you put the you know
you get the stage where everything's approved and you get your final blueprints you put it out for tender and you get some bids and you go with you
know a final Builder okay so now they're your their boots on the ground you have regular talks with them a couple times a
week you know another couple of tips you know with technology now you can stick a camera on a post in the in the corner
and and just hook it up to the Internet so you can kind of keep an eye watch all all the time on you know did any work
get done today or not yeah and then thing you know you it's I've done this in the past too where you just hired a
local inspector and just paid him a couple hundred bucks a week no reports or anything just walk around the site
and yeah doing good know you know the blocking wasn't too great so I talked to your foran about that and you can kind
of get it around that way but you know you still want to make kind of regular chips but you can do a lot of this stuff
uh far away days absolutely so are you doing more of as we call ourselves almost like paper pushes where we we're
not trying to do a lot of the vertical work are you doing a lot more vertical work at this point or are you kind of trying to shy away from
it I personally like that I I think there's three stages to development
there's kind of the paperwork only entitlement paper lot strategy whatever you call it where you're just changing
zoner density and selling it or you're maybe potentially getting your architect to design that fourplex get the building
permits approved and now you got a shovel ready package you know lot assembly where you knock on the neighbor's door maybe now instead of
just a 50 foot lot now you got 250s you got 100 what do you do with that you know so there's that kind of paperwork
stuff there's lot prep where you're actually you know whether it's 20 acres on the outskirts of town or an old just
a regular lot in the inner city you know out with the old in with the new I what you got to get rid of maybe the old
house Ricky old fence the driveway whatever you know maybe some some ground clearance if you're if you're bigger so
there's kind of the the lad prep where you're actually creating service lots to sell to a builder and then the third
part is I'm actually G to build something again and out quick so I like the I like typically if you're doing a
big project I say don't do all three pick a lane because it just takes a long time you know if you're if you're doing
that then it can be a you know three four five year project phase project stuff happens economies change interest
has changed government's changed so in andout quick is a big thing um yeah but again you can match it to your strategy
your personality like what do you want like maybe you just want paperwork perfect in and out four or five months
make a profit boom or you like dirt you like the smell of dirt let's put some
let's build a subdivision so there's the great thing about development is there's all these entry and exit points you don't have to finish right so you can
just pick a lane that that you like and stick and enjoy it that's awesome man
that's awesome are you doing anything vertical right now what is what does that look like I'm just starting to yeah
uh so again talking to few Builders but yeah more like I said the go side of Florida uh in and out quick you know you
can typically because of the housing crisis I I talk a lot about let's come back with higher density and and that
but you know the ability to buy a v lot and build a house in 10 months and you
know make a pretty good return in 10 months with the builder doing all the work that that's that looks pretty good too right so I don't mind
that absolutely uh you mentioned darc isms can you mention can you mention a
few of your favorite darc isms yeah the the wisdom is is experience
over time so in and not quick you know like I said governments change interest rates change cost change so the you know
you're typically better off in and out quick uh don't paddle Upstream by that I mean don't fight City Hall if you've
heard horror stories about development it's usually because the developer tried to do something they knew they weren't
going to be allowed to do so let me give you an example so let's say I'm just dead set on building a 24 unit apartment
building for example well I have to be flexible on where I do that I either have to go where it's already zoned and allowed or I have a reasonable
expectation of having that approved if I if I apply for approval if I'm dead set on on
developing in this neighborhood in this community well then I have to be flexible on what I build because only
certain things are going to be allowed there's a range every Community every neighborhood every city has a range of
what you can build in each place right and you know it's kind of a square peg round hole if you're budding has no Dam
but I want the 24 unit apartment building here and they're only allowing duplexes and fourplexes you know you're
in for a rough go so it's kind of like don't fight City Hall you know and then yeah and then um in and out or the old
in with the new is the other one right so what's there existing now that I need to get rid of again old house driveway
garage rookie def fence in the back and trees and then in with the new what is
the Builder going to need from me as the developer you know maybe it's an old house so you know the size of the water
line coming in was really small but now I'm going to have an aplex there okay a lot more water use I'm going to have to upsize the water line so with the old
and with the the new works and it works on every SI as a project you know I built a a horse track and a casino the
process is the same what's there that I have to get rid of and what do I have to to put in and to make the new the new
dream work so there's three right there three dark SE let's let's talk about the horse
Chapter 5: Personal Insights and Future Plans.End)
track is that in Canada getting a horse track done yeah yeah so 20 years ago now
a group of horse owners you know kind of high netw worth people wanted to build a new track in in my town of Calgary the
the old track was like 80 years old and didn't really work anymore so you know
we're great economy life is good they got partway down the road and then the V8 recession hit and so now basically
they're $108 million in debt they've got the the foundations in and and that's
about it so they brought me in to kind of to rep picture that kind of turn that
around and so I was able to uh we actually based uh we're in the Canadian
equivalent of of chapter 13 where we kind of were just Frozen and the courts froze our creditors and we were allowed
time to kind of work out a deal to kind of get out so I I got us from 108 million in debt down to about 30 I
partnered with a company out of Austria that was on the U the NASDAQ Century gaming out of out of Austria so they
kind of brought in the new money we we I sold the land I sold all the land and then leased it back as a way to raise
some money so by doing these kind of creative things we're able to to kind of get out of creditor protection or
chapter 13 and and actually go ahead and build this track that was from 2009 it took us took me six years till 2015 till
we were actually running but we're nine years in now and horses are running around the track and people putting
dollar bills into or dollars into the slot machine so it's actually a pretty cool story
wow wow that's that's a that's a lot of Ingenuity to make that happen because
even reaching out to the another country's gaming yeah to raise money a
smart but that's cool that's the cool thing about development too right is it can be small just one house knock it down build
a duplex it can be massive right so that's another thing about development that I love is is you really get to use
your your brain and be creative and and do lots of different things so you talk about creative how often are you using
like creative Finance um you know you talked about leasing back the property and we we Daniel and I we love Creative
Finance how often are you using it quite a bit like you know one of the things uh
I kind of talk about a lot is uh can you partner with the seller and I I teach 11 or 12 different ways to do that
different in the flip or flip and Rental World I need the seller to leave because I gotta renovate their R right they
can't say so you know you got agreement for sale vtb you're kind of limited here
ideally if I can partner with the seller so that I you know everybody says
oh Dar you know everything here is 800 you know it's 800,000 for that old crappy knockdown house in where I live
right so it doesn't work well if you can partner with a seller you don't have to buy the property right let them live
there while you're getting your permits cutting the grass paying the insurance all that now your cost you know your
money is only needed for permits and fees and some engineering to get whatever permits you're going for so
it's a great way to kind of res save cash and and use a lot less cash um at
the end you've got the permits you want now maybe you sell it to a builder and
you know you pay the the seller the amount you've agreed on plus some kind of split or you know whatever terms you
you know some kind of bonus for for playing with you or maybe you do want to go do the horizontal and the vertical so
now you've you've worked out an exit strategy where you can pay the original the original seller so they get you know
they get a little bit of a bonus for working with you over those few months whatever so what it's a really really cool way to to Really expand your
options you know we're always talking about we got to have JV money Partners well if you can partner with the the
seller that say you're having you know a need for a ton of money so it really really helps a lot being creative like
that that that's one thing that gravitated us towards this game too is uh is again you could just be so much
more creative you have a lot more options to do that it's just a lot of times it's just dirt like it's there's
no there's not as much emotion involved so it's just a lot easier to get some creative terms
going just let me tell you real quick story so a student of mine out of Seattle actually his hometown is is uh
Charleston South Carolina he was stuck working in in uh Seattle making good money new newly R newly wed so pressure
from the home front to quit the job and come back home he done some um wholesaling didn't like get really
negative lots of negative feedback from those flyers that come out so so you saw my he saw me and this is what I want to
do right so quit his job moved back because he's got three projects on the go and just one real quick so he found
some land that right now is zone for like you know two houses older couple that that had hoped that
their son would end up building there uh he didn't want it they know that they can sell it and and build but the new
houses that would go in the two new houses would be like 900,000 or a million and she's a retired nurse and
she said well you know I would never be able to live there so I want more this to be more affordable so my student came through and say yeah we can do that but
I need time right so give me six months to uh to see if I can get the zoning to build 10 or 14 town houses and then
there'll be a lot more uh a lot more need for that like lower income housing right and so she loved that so that's
what they're doing so to buy the land was 195,000 to get you know just to kind
of a little the next level up up zoning or entitlement is like 20 grand of of fees yeah if you had 120 you could
actually rezone it and do the whole full 14 right so he said well I got the 195 D
but I don't have the 120 I can do either or I said well once you're a little bit further along once you're confident that
you're going to be able to to get the exit that you that you want and that the city's on board with this why don't you
go back to the the the the the older couple because they want it like they want to work with you they've proven
that and say hey why don't we rip up the old contract and instead of 195 what if I pay you like 230 or 250 I'll pay you
50,000 non-refundable now but then the rest won't come until till the end till
the final exit so that saves you know you've got the 195 well now you've got 50 out of Bo now you've got the 120
where you can actually do the full entitlement do the full shov ready package and get the much higher return
the much higher profit right kind of a light bul moment for him yeah I can do that but again just being creative
figuring this out and again like so he can sell it he can flip it for 25 Grand
tomorrow if he does just kind of the little bump there's about 100 Grand worth of profit in there if he goes the
full way gets the shovel ready it's probably about 300 Grand $350,000 probably for him if he can if he can do
the full thing so that's kind of some of the numbers that are involved sometimes too I I like I like the Our Hope
strategy and this is why I like bigger stuff is I don't even negotiate on price if anything I want to get them their price and then some that's really how I
play that angle so the a a lot of smaller other asset classes you have to
beat people up on price because you can't you can't make money any other way you have to beat people up on prices with development you kind of have a
blank canvas to create value at X and whatever X is does it price matter price
is relevant terms are more important here I think than in a lot of the other situations like this gentleman here like
my my student like he hated wholesaling because he's sending out these flyers to the neighborhood not hearing back from
anybody he wants but he's hearing all these nasty emails and phone calls you have so be kind of because it you know
the flyer says you know buy your land 30 cents on the dollar right well yes is total nicer Vibe you're going there
you're sitting down with a couple if I can hit your your you know your fair market value it's price or terms right
there's at Old maximum you can have price or terms but not both I'll meet your price but I need six months 10
months whatever and here's what that looks like and then we can either share some of the profits or you know as it go
further along I can make payments in in in stages because I'm more comfortable that the end exit is what I want it to
be right so there's a lot more it's more positive you get to you know this this lady she wanted retired nurse she wanted
some more affordable housing so she my my my student says she was actually trying she was so happy that they'
worked out this deal right so I mean it's it's just a whole different vibe than kind of the traditional
wholesaling so you mentioned earlier about 11 ways to get creative financing
can you kind of cover some of those ways yeah so we we've touched on a few of them so yeah how do you partner with
the seller so you know can you pay a you know you work out kind of a split at the end so you know I'm going to take it to
here here's the the exit for me whether it's just entitlement or whether we're going to go a little further um um you
know so there's maybe some kind of split I've seen people kind of rent I'll rent your house for you know the six or 10
months that you're going to still live there and you're still going to cut the grass and you're doing everything but you know so basically it's just ways to
to to you know find so that you don't have to kind of make the big ball you know typically you
know people just I'm going to buy your house 30-day clothes 45 day close boom you know I got arrange financing is
there a way to work with the seller so that yeah okay I'll you've matched my price and then here's
you know what how can I incentivize you to work with me for six or 10 months you know what does that look like all kinds
of you know different ways to do that maybe you know I really you know I really love to living here you know I
don't really want to move but whatever okay well how about we're going to build these town houses and how about you get
one at the end you know something like that right and you know maybe there's a plus or minus you got to feel the the
money difference a little bit but you know can we work out some kind of oh love that you know so just getting
creative you know a lot of times we just assume that the seller wants to sell quick and the most amount of money but
you know just kind of ask questions and shut up and listen I say because uh you know you know maybe maybe you know my
wife's sick I don't want to sell quick I'd love to stay here for a year while you're doing that that works out
perfectly for me right unless you ask those questions you don't kind of figure that out right so those are that's again
I love this stuff too kinds of different it's creative I love creativity what is the quote that is yours or somebody
else's that you resonate with sorry what's that what is the quote that is yours or somebody else's that you
resonate with don't skip leg day so you know I say that as a joke but
it it it kind of does say you know like don't just focus on you know building one strength you've kind of got to be
multifaceted in this real estate investing game so you know you got to have different hats at different times
so you know you got to make sure you have some skills or if you don't have the skills then then find the partner
that does you know like I said I was a lone wolf guy all my career I I would have benefited more by having an
operational partner so for example I love the hunt I love the the front part I love putting it together I love being
creative on the deal designing all that you know was kind of a down day for me when I got the keys to the apartment
building whatever I was buying because now I had to execute and I know I don't like the execution part I would have been better off focusing on this while
somebody else did the the nuts and bolts of the building it was really good at dot so kind of don't Skip Leg Day brings
all that into it you know if you're you find somebody that's strong or you're weak and and kind of be more well-rounded
so you any other questions Kyle this is good that's it right now I just I'm glad
we're in the same space I I love land Daniel loves land man it's just it's awesome it's awesome I love and I love
that you like creative Finance because that's something we use daily I mean we just uh we just made an offer 700,000
over list price if they gave us their terms so it's a lot of fun to be able to do that for sellers you know and it
surprises them and shows that we're serious as well yeah and you know I've got another group I'm working with that
yeah the there's like 200 acres of land raw Land one house on it you could sell
it today for eight the seller could sell it for 850 the pitch to them was it's going to
be a three-year phase play you'll get paid some now but you know some after year one year two year three they'll
probably end up making about a million four a million five when it's all done and that's just so that saves all the
cash that the group doesn't have to you know lay out all the money for the the original piece of dirt yep it's we we
always try and explain it to our sellers like if we raise the money it's probably going to cost us more so if you want more money let's let's negotiate I'm
old's Let's Make a Deal happen yeah and sometimes they say no no I just want my money fair enough but uh if if you can
if you can find that person what I'm trying to find usually is in my space you the let's find the the couple in
their 60s that have owned the house their kids grw up there they've been in there 20 years and and dad knows that he
could sell it tomorrow for a good Buck but he's also seen the other developers come in the area and make a profit and
and he wants some of that dad's a little greedy which is good uh and so but he doesn't know how like he's old he's a
little scared so if you kind of come in and and and show them yeah work with me and you know we'll see the dream you
have we can kind of flush that out together so that's kind of the person you want is that that person that's uh
that wants to be a developer but doesn't know how as well as on the seller part so yeah we always kind of mention that
as well where it's like hey think of us more of a because when we do those kind of type of JV Partnerships where we uh
we bring in the engineering money you know we come in we do all the engineering work we we hire the civil engineer we do all this think of us just
as a partner here you know we're here to to you we're here to show you show it to you and we're here to bring the
financing for you um because most of the time and I'm sure you know they're they're sometimes land is pretty liquid
and we have to come in and tap into it and bring that potential to it and and you know 99 times out 100 the
seller doesn't know any of that right like they just kind of they're interested in you know I see the other developers I want to making a profit I'd
like to do some of that I don't just want to sell my house or land or whatever for what it's worth I want a
piece of that too um now you can open up their eyes too and well I didn't even know half if that was possible yeah
let's do that yeah that's incredible so uh work people find you online this
has been a really good episode I have hrre estat mentor.com yeah that's a good
one just Google you know my Dy mar.com all lowercase alog together that'll find me you can go to YouTube and just go
Darcy Marler Channel that'll find me as well I got like 130 videos online to talk just only about this just
development and new construction land assembly all this kind of stuff so it's a it's a really great resource for if
you want to figure out more about well we appreciate you coming on thanks for your time thanks for coming to help
me on Kyle for everybody here go like share subscribe we'll see you in the next episode thanks for tuning in share with a friend thanks guys bye hey if you
like to meet us in person we do an annual event every year the hiis live.com Summit we'll see you there have
a good day
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Daniel Esteban Martinez
Host/ Ceo/ Speaker
I have been an entrepreneur since 2018. I come from a regular home just like most people. My dad worked on the roads in the Chicago area for over 30 years. He always taught me to work with my brain, instead of my body. Your body can only take so much abuse. I learned so much from my father. He always pushed me to work smarter and not harder.
I have owned and operated a trucking business for 2 years. I started learning real estate in 2019. Fell into the Data & Skiptracing business in 2020. My partner Anthony & I started Hivemind in 2021.
I have done a ton of different jobs coming up from painting, to door-to-door sales, telemarketing, truck driving, and loading trailers. What I learned most is that I want to stay in the digital business space. The leverage you can have delivering digital products to the marketplace can yield limitless possibilites.
I started The List Guys in 2020. It is a data and skiptracing service. We provide seller and buyers list nationwide. My clients have been getting great results and I am proud to help people killing it.
I started the Hive in 2021 with my partner Anthony Gaona. It is a real estate and business mastermind. It also comes with a all in one CRM, that can host unlimited websites and users.
Starting the Hivemind has been an amazing journey so far. Seeing one of our users make his 6 figure month in June 2021 leveraging our software, I know there will be plenty more to come!
Anthony Gaona
Host/ Ceo/ Speaker
Hi! I am Anthony Gaona.
I’ve been in digital marketing for almost 15 years.I grew up in construction working for my dad when I was only 12 years old. Normally we had a ton of work or no work at all so a lot of my free time was spent learning how to generate leads.
It didn’t take very long for me to master online marketing because I became absolutely obsessed with it. For the last 15 years I’ve been generating construction based leads. At first I was running the projects myself. This led to sub-contracting all of the excess projects and eventually wholesaling the leads off to other construction companies.
One day I was preparing to build a single family residence for myself. In mid December, 2018, a simple YouTube search led me to the term wholesaling and the rest is history. The plan was to use my construction background to start flipping houses. By January 1st of 2019 I launched several marketing campaigns both on and offline for real estate seller leads.
Within about 4-5 weeks I had my first real estate contract locked up. It didn’t take long for me get a land lead where I made almost a full year’s pay on a single transaction. This came from a land lead and that forever changed my life.
I ran low volume larger land deals for the first two years of my real estate career. Like anyone who has been in real estate investing for an extended period of time, I started thinking about scaling my business.
Instead of deciding to vertically integrated and start hiring I imagined a model where I would teach my real estate investing method… Read More
Darcy Marler
Real Estate Investor, Author, and Educator
Darcy Marler has been a full-time real estate investor for over 23 years.
In that time, he has invested in every major residential Real Estate investing strategy. Everything from Small, Medium, and Large Land Development projects (he was even instrumental in getting a Horse Track & Casino built in his hometown), Land Assembly, New Construction (he has built 46 new homes), Short- and Long-Term Rentals, Flips, BRRRR, Condo Conversions, and even Changed the Use of an Existing Building.
Darcy is the author of 4 Real Estate Investing books and the creator of an Online Property Development Course. In total, he has owned almost 100 individual properties, with 240 units, and close to 1,000 tenants.
Darcy can show you what is possible when you switch from the traditional Flips & Rentals investing model to something more lucrative, more interesting, and more fun – Real Estate Development!