Ep 546: Creating Affordable Housing

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creating affordable housing is to's
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episode I think this this one's uh
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really close to our heart and as us land
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investors I think we're the the starting
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seed of affordable housing when it comes
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down to it it really is there's there's
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a big need for affordable housing and if
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you listen online and people crying
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about raise rents and all that stuff is
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because there's there's too there's not
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enough and it raises when when the supp
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too much demand it raises the price so
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um housing getting out of control rent
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rates getting out of control and I think
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it's all because housing there's not
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enough housing so us as land investors
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we take it very personable to personal
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to uh create affordable housing and lots
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of it if we can and we're heading to it
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in larger scale I think that's what
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makes our business so fluid uh and so
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rewarding is that you can start with a
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raw piece of land say an Old Farm or
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something that's not of commission yep
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and uh you know hey there's a lot of
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people moving to Texas there's a lot of
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people moving to the United States yep
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uh all those people need somewhere to go
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like we already have a massive housing
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shortage right and some people either
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they can't afford a house with today's
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wages interest rates but we're coming in
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right and creating 10 Lots 20 Lots 180
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Lots inventory subdividing starting to
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create inventory for people that
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otherwise couldn't afford a nice house
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in a crazy area of town but if you can
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get yourself a nice 3/4 acre lot a one
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acre lot with a brand new double wide or
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a brand new home on it I mean goly
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that's the American dream you know so if
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you're in a regular little neighborhood
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right where the medium house price is as
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is what what the neighbors have and they
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have no land at all y we're giving we're
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creating something where you have a nice
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big piece of land so you can run your
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business out of maybe um at a very very
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affordable price we have a Target exit
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of somewhere between like two 199 and
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249 is our Target exit for the most part
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yeah so so we get we get to make money
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on our mission and it's a it's a double
Chapter 2: The Role of Land Investors and Community Impact.)
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has it does a lot of good things for you
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you know I think um like when I think
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about like Tyler cut that in 11 Lots
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floors 11 Lots again it does feel good
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then to be able to like I said to to be
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able to do the work and somebody that
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would have never had the chance to get
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land and do a lot of seller finance so
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we're giving a lot of people opportunity
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to get land when they would have never
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had it you know and I wish somebody had
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gave that opportunity to my mom and dad
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you know to say hey look you guys can
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buy five or 10 acres I just need five
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grand down or 10 grand down like man I'm
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sure they would have found the money and
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they would have did it and our life
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would have went a lot different you know
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we had the land it's a cash Reserve it's
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a place to relax you know it would have
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just been a different my whole life
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would have been different if somebody
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had introduced this to my parents so I
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love doing it I think it's cool
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especially when they have young kids
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it's like man the kids don't know how
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lucky they are you to be able to have
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land now the way that we do it yeah and
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then like we're putting more mobile
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homes on people that buy from us put
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mobile homes on the land so like even
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then like inventory like we're the the
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first seed of the of of the of the
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subdivision and and creating inventory
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like we've had multiple buyers come back
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and they're they're mobile home dealers
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and like that where they'll buy
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Lots from us so there's a lot of uh
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benefits to the community um that it
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feeds itself in different ways and I
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always think about like um as us as
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doing a lot of business in Texas we
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create a lot of job opportunities I mean
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work on deal with in Tyler right now
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where we brought in Corey and
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Witherspoon and their team on a
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transaction so you you get to feed and
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you get to do business with people you
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want to do business with those are boys
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we would love to keep them fed and and
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you know help them make money put food
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on their family table keep their M their
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machines operating keep them operational
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machines uh y this you know we got uh
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guy Jason that clears our skid steer
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properties around San Antonio then now
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we got the dirt trucks running lots of
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dirt trucks running probably spent 30 or
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40,000 on just dirt drops in the last 90
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days 120 days so it's cool to see that
Chapter 3: Examples of Successful Projects.)
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we are giving our friends and family
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jobs people are making money around us
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yep you know that's it's yeah we are
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creating a lot of opportunity just in
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our own little small circle y so imagine
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when the circle gets wider the projects
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get bigger we have 20 neighborhoods
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running like man all the Personnel
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involved top to bottom we're going to be
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employing thousands and thousands of
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people yep inadvertently like even now
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surveyors Engineers oh damn I forgot
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about I didn't think about that yeah
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surveys Engineers agents sales team our
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internal team people at the city damn
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this is getting exponential now yeah
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yeah the people at the city the counties
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those guys providing more taxes oh yeah
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so we got free electrical in one of our
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subdivisions I thought it was going to
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be maybe a couple hundred grand let's
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talk about that that's Co they said if
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we had to like put upgrade the
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transmission line coming down the road
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it could be you know somewhere between 5
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and 700,000 so in my mind I kind of
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earmarked a million for electrical yep
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for this neighborhood we're building and
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uh the city actually calls me back or
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the Electrical Company calls me back and
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he says Hey we've approved the uh the
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upgrade of the line coming down the
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street of the neighborhood and um we're
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paying for it out of our own pocket he
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said and uh whatever we charge you to
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run the polls and inside the
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neighborhood he said every time you sell
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the property we're going to give you
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back that much credit for that one unit
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so if let's say we have a $300,000
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electrical bill for running all the
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polls yeah we're going to divide that by
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180 and then every time we sell a lot
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they're going to give us back that money
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and they said because we really want
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your business so we're providing the
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electrical provider more opportunity to
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Arbitrage capital from customers yep so
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they they're throwing in a million
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dollars worth of electrical for free
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because they want to our project happen
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affable housing imagine that you're
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doing a house and you need a freaking
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$100,000 remodel that ain't never coming
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for free never we're getting a million
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dollar remodel for
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free land game that's upgrading the
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electrical lines coming down the street
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that's how bad they want the
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power it's an interesting game it's
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interesting game I think um I invite
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more people to participate because it's
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only going to make things better for a
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lot of people that's what that's
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probably the most mind-blowing thing out
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of all this to me is that people that
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have this type of information they're
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not sharing it yeah and me and you here
Chapter 4: Challenges and Rewards of Land Development.10:00)
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we are we're like on open Forum telling
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everybody and then like yeah a lot of
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people are here but like wow you just
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think like they should be coming by the
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thousands by now right but like I think
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people want an easy quick little hit
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like I want to flip a house I want to
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get paid by Tuesday everybody wants to
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get rich quick scheme that's what
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everybody wants everything else sounds
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glamorous in our game like oh it takes
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six months or a year I can't do that but
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the people that are sticking around are
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starting to do very well they starting
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to learn a lot of game the faster we
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learn it the faster they learn it yeah
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it's getting tremendous man like I said
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I think you know we we're always looking
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for any wholesale fee 10 grand 20 grand
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was great we bumped it to 100 now we're
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it seems like these bumps these days are
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getting closer to 500 to A Millie hey I
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could see d one a Millie's probably a
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low deal for us hey they're coming in
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good and then you get it in tranches too
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um frier has like 400 Grand on it that's
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that's what I'm saying I think we're
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hovering between like one and five but
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Tyler has seven figures there's a seven
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figure that's we got this seven figure
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and then um um florville yeah florville
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could easily go uh the one in Orville
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Kyle's deal the entitlement deal that
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one's going to seven figures way way
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over seven figures Converse um Converse
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should be multiple hopefully um what
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else do we got I yeah we're starting to
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pop up like we're starting just planting
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big seeds you get big returns and that's
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what's cool that's what I'm talking
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about it's like a piano kind of like
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you're hitting the right notes hitting
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the right notes and it was like 10 grand
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five grand 20 grand five grand now it's
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like 100 200 500 but sooner or later
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every Keys is going to be a million
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dollars like every play every every
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every deal will be a million up yeah and
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learning how to play at that scale what
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is it taking just Blood Sweat tears
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figuring it out team and system Making
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Connections team systems putting things
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into place raising Capital like always I
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mean I think that's the ultimate thing
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that a real estate investor should be
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focused on yep but yeah lots of moving
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pieces man there you go hope you found
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value see you next
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time like subscribe follow the H mind
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we'll teach you something cool yep never
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heard of anywhere else either you a hear
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this anywhere hey if you have any deals
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you have a great day