Ep 560: Finding Unicorn Deals

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The transcript captures a discussion between two individuals about a creative real estate deal involving 60 acres of land near a city. They negotiated highly favorable terms, including a $14,000 due diligence fee, a six-month extension for $200,000, and three years of seller financing. The conversation highlights the uniqueness of the deal, their strategy of making creative offers, and the benefits of pursuing land deals with long closing periods and flexible terms. They emphasize the importance of creativity in land deals and how their business model, which focuses on zero-down deals with high potential margins, sets them apart. The conversation ends with a reminder to submit deals to The Hive Buyers Club.

Overview of the 60-Acre Deal (0:00 - 0:26)

Discussion of locking up a 60-acre property for $3 million with favorable terms, including $14,000 for a year of due diligence and three years of seller financing.

Unicorn Deal Terms (0:26 - 1:02)

They talk about the uniqueness of the deal, highlighting the 550 days to close, interest-free seller financing, and the agent’s surprise at the terms they negotiated.

Creative Strategies in Land Deals (1:02 - 2:27)

The conversation shifts to the importance of creativity in land deals, discussing how creative offers lead to exceptional deals, and how they avoid lowball offers by negotiating terms that benefit both parties.

Advantages of the Business Model (2:27 - 4:35)

They discuss the advantages of their business model, which focuses on zero-down creative deals, and how it allows them to manage cash flow effectively while securing high-value properties.

Reflection and Future Plans (4:35 - End)

The conversation wraps up with reflections on the complexity of the business, the continuous learning involved, and a call to action for listeners to submit their deals to The Hive Buyers Club.

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Transcript

yeah so we locked up this uh 60 Acres

for $3 million is really close to the uh

City and Kyle negotiated this thing for

$14,000 for a year of due

diligence

$14,000 and then we have like a six

months exension for like 200k or

something like that but by then we it'll

be easy to get that money yeah the do

will already be all entitled up ready to

break ground yeah and we and then we

have three years of seller financing

Unicorn Deal Terms.)

behind that it's so funny so uh Kyle

talked to today and he said that the

agent on that deal the managing broker

called Kyle and he's

like I just realized what terms you

negotiated it's been like it's been

three

weeks he goes I can't believe we we

agreed to over 550 days to close 550

days to close with threee Sol financing

behind that so we literally have like

four years four years of terms this

almost five years on this end this

deal and this is that would be a unicorn

deal that's a unicorn all day yeah

Creative Strategies in Land Deals.)

because I bet you there's going to be

from some front end Arbitrage we know

our numbers are strong it's a great area

it's on a major highway we got plenty of

time to entitle it yep before we have to

come up with the with the the money so

by the time we go to a lender and say

hey we need 3 million to close on this

we only need 500 Grand down or something

so I think it's 0% interest too if I

remember correctly well they they they

agreed to zero and but remember their

attorney wanted to see five but but

verbally they even said they would give

us back the interest as long as we just

legally show that it was paid okay so

you got some crazy stuff we're doing

then and I think that's what people are

missing when they're looking for the

perfect deal it's not as cut and dry as

like when you go and get a house and

remodel it and turn it and flip it and

that's it there's only really one

strategy right other than if you're

going to rent it out or how you're going

to monetize the back end but with land

there just you can get so so so creative

there's so many different things you can

do and invent and cut up and negotiate

and there just like a million points of

negotiation and I think it makes for for

the best easiest deals because really

you could put together a bigger deal as

your imagination can put together so uh

Casey Maro tweeted the other day it says

you you can't get a deal without an

offer I think is rule number one but you

can't get a crazy deal without a crazy

offer and that's number two you got to

make a crazy offer first to get a crazy

deal right if all of your deals are

right on par and they're just all soft

and you know normal deals yeah you'll

get some but they're not going to be as

tremendous but you put together

something where you get you know two

years of due diligence for nothing you

know and seller finance I mean that's

incredible whatever you pitch is what

you're going to get whatever you're

going to attract so um this is where it

comes down to I think you have to have

Advantages of the Business Model.)

the have the imagination and you don't

what a crazy offer even sounds like that

this is the funny part about our offers

is that they've been on the market so

long they's open to any offer and then

we can make a crazy offer and it works

so it's a lot hard to make a crazy offer

on deals that they're getting a bunch of

offers because of course it's going to

take cash deal that Clos in 30 days but

this is the beauty about land is not

getting offers like that that's what I

think is the beauty about what we do is

that nobody's going after it at this

scale and they're not doing it the way

that we're doing it so they come in and

make a Loba offer sellers like can't do

that Bo wholeseller moves on to the next

deal yep but we come in here with our

infinite wisdom and full price

offers when we don't even lowall anybody

we just B full price offers yeah do you

want a low cash offer or do you want a

negotiate something amazing on your

price that's it that's it two offers

they don't like it move on to the next

there's not a lot of science behind it

yeah it's such an interesting game that

um I would say we're we're getting

really good at catching

unicorns unicorn Hunters professional

now yeah every deal is too good to be

truth amazing yeah it funny because we

we pitched that deal to eventually

develop a partner and like oh I don't

like the deal and we tell him the terms

okay I think I like that deal you didn't

let me

finish or or the guy that was going to

invest with us in the 243 Acres he was

sad he didn't get it we we actually

refused his money we didn't like the

terms yep and we got a better lender

with easier terms for a lot longer and

uh the guy's more passive he's just more

quiet while we're doing our magic he

hasn't he hasn't even like blown us up

or nothing I haven't heard from him

haven't heard from him he let seven

figures on a transaction haven't heard

from them he ain't too worried about it

so and this is one of the things where

the margins are there I I when we we

tell people about the numbers it's like

yeah we we got this deal for 2 million

it was probably worth four when we

contracted it and then we we were now

entitling it when an entitle is done

it'll be worth close to eight to 10 and

then we have3 million dollars of dead on

it you think it's hard to get a lender

on that I think we'll be all right I

think we'll be all right yeah we like if

we PID off all the lenders everything we

have we're still like 25 cents on the

dollar all in yep so yeah any lender

would get us to the finish line and I

think I think that's the beauty about

being creative and getting creative

deals is that it makes the lending

easier with the right lender

cuz you have you have you have crazy

margin there's there there's a mitigated

risk there's always risk but there's

Reflection and Future Plans.End)

mitigated risk that guy that led at

seven figures uh he said so what are you

guys bringing to the table right because

we usually do zero in on all of these

deals it's what we teach it's what we

live by so we're a good example of of

our deals um and I said well we got an

electro capital I said look at the terms

we negotiated at 0% interest Bo he

didn't need to hear anything else he was

like yeah that's pretty good reason it's

a very good reason and I think I think

it's a very good reason to if if you if

you exercise muscle we still buy stuff

cash but with terms and we pay them off

their with their own property and like

we do a lot of creative stuff but when

you have a very a liquid asset class

like land you have to be creative in the

ways you take it down and one of the

ways we've gotten to this point is we've

taken down very crazy and difficult

deals with a little to cash out of

pocket and it's made us a better

investor for the future yeah I think

that's something that we started with

right we started doing zero down

creative deals because we didn't really

have too much cash on hand yep but now

that where we've evolved to and we have

access to a lot of capital like we why

would we change our business model now

our business model says let's get in

with zero down little to nothing out of

pocket bring in lender and then

everybody that has money they have these

limiting beliefs that they can't do it

and us we like that's the only way we

knew how to yeah so when somebody puts

in 100 Grand or 500 Grand and they like

it's hard for them to imagine the

returns we could pay because we're

already buying like at a real a real low

basis and then we're going to Value add

from there so y it's pretty cool uh it's

a pretty cool business to be in the

business model it's interesting because

I feel like we learn something every day

it's so complex that we learn something

every single day every day something new

pops in and so it's like man imagine the

people that are not focusing on Creative

land deals 24/7 it's going to take them

a really long time to catch up to where

we are because this is what we're doing

day in and day out day in and day out

the kitchen table over and over breaking

our heads for 18 hours a day so if

somebody's doing like a couple land

deals a year yeah they got so much

catching up to do or a bunch of land

deals for cash yeah they're just turn

burn and turn burn and turn well I hope

you like this episode go like share

subscribe share with a friend we'll see

you in the next episode thanks guys

thanks hey if you have any deals you'd

like to submit to The Hive mine and our

team go to Hive bc. is actually the hive

Buyers Club submit your deals and we can

hopefully dispill your deal for you have

a great day

[Music]

English (auto-generated)

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