Ep 568: Ranch Math

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Ep 568: Ranch Math

In this episode, Dan Martinez and Anthony discuss the concept of "Ranch Math," which they use as a method to calculate potential profits and scalability in large-scale real estate projects, specifically ranch developments. They break down how investing in ranches, with each one considered a "unit," can quickly lead to exponential growth in revenue. The episode emphasizes the potential to reach massive financial targets, such as $100 million or even $1 billion, by understanding and applying Ranch Math. They also discuss the scalability of this model compared to other real estate asset classes, highlighting how focusing on fewer, larger deals can lead to significant financial success. [0:00 - 0:32] Introduction to Ranch Math Dan and Anthony introduce the concept of Ranch Math and how it relates to their real estate business, focusing on counting projects as "ranches" or units. [0:33 - 1:54] Example of a Ranch Deal They provide an example of a ranch deal they are working on, discussing the financial potential of the project and how it fits into their Ranch Math calculations. [1:55 - 3:50] Scaling to $100 Million and $1 Billion The hosts discuss how Ranch Math can be used to scale a business to $100 million and eventually $1 billion by focusing on larger deals and efficient scaling strategies. [3:51 - 5:02] Comparison with Other Real Estate Asset Classes They compare the scalability of ranch projects with other real estate asset classes, like apartments or storage units, and discuss the advantages of focusing on ranches. [5:03 - 6:45] Strategic Partnerships and Sustainable Growth The episode concludes with a discussion on the importance of strategic partnerships, creative financing, and sustainable growth in reaching large financial goals through Ranch Math. They also encourage listeners to share their deals with Hive Buyers Club. Text 📱 210-972-1842 Text 📔 "Course" to learn how to make 6 figures on one land deal. Text ✴️ "Hive" to get added to weekly meetings. Text 🍎 "Apple" to schedule a 1-on-1 call with Anthony & Daniel. Text 🛬 "Land" to join The Million Dollar Land Mastermind 📃 Partner with us on your deals: https://submitbigland.com/ 🔍 Need Inbound Real Estate Leads. https://www.hiveleads.io/ 🔍 Follow Us on YouTube https://www.youtube.com/channel/UCbulcrC4WbOy5Fzu0eWzNVQ/?sub_confirmation=1 🔍 Follow Us on Instagram https://www.instagram.com/hivemindcrm/ 🔍 Check Out https://www.hivemindcrm.io/ 🔍 Check Out Our Land Mastermind https://www.milliondollarlandmastermind.com/landmastermind 🔍 Pick Up All Event Recordings here. https://thehiveislive.com/recording 🔍 Follow Us on TikTok https://www.tiktok.com/@hivemindcrm?lang=en 📍Join the FB Group https://www.facebook.com/groups/137799891494707 📍 Check us at Join Us! https://thehiveislive.com/ Help support the show. https://anchor.fm/hivmindcrm/support

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Transcript

we're covering Ranch math today what's

Ranch math

Anthony well I like to count in a number

of projects uh so it's something that we

do just kind of naturally now so it'll

be like hey if we pick up that little

property for a million we and we twox it

how long would it take us to hit 10 boom

that's five wrenches right so now we we

kind of calculate in ranches now and

then as we do the math it's pretty cool

because uh it seems like things could

could get exponential

exponential pretty quick yeah so we have

a deal work contract out today it's a

Example of a Ranch Deal

it's going to yield two ranches you know

it's a 160 acres for 850 yeah it's it's

cool because this you know let's call it

nine nine all in say nine and then so

nine it's worth at least double it's

possibly worth triple so that's pretty

cool you know that that one deal three

X's right so that's you get you put in

one rent you get three back so um a lot

of people they think like a million is

is a lot of money it is a lot of money

when you think about it but when it

comes down to Ranch math it's not that

much at all it's a unit it's one unit

it's one Ranch so when we talk about

Ranch Math and how to get to large scale

of 100 million half a half a billion a

billion it's down to Ranch ma yeah so

for any company if you're selling

products and goods and services or

software OB is a lot it's a lot of

products and services rendered I mean a

million is a lot a million in software

is a lot it took us like three years to

hit a million in software yeah so that's

a long 297 at a time you know yeah takes

a long time so you want to think of like

what's the max unit I can create or sell

to hit big

number and with a ranch you could do it

with one so like let's say what's an

average like Ranch like development deal

like if you're doing a 100 acres with

100 houses you know what is that

probably worth so 10 million that's at

least a $10 million deal at least on the

Scaling to $100 Million and $1 Billion

low end at least on the low end and

you're building nice houses probably

double so that one deal turns into a 20

Mill iar do yeah so if you're doing

let's say let's say we're trying to get

to a bigger number let's say like 100

million or or a billion how does the

math work on that how many projects

would you need to do to hit that number

well 100 let's start off with 100

million so if you're doing $10 million

projects it's 10 simple math okay and

those are that's on the low end again

because that's like selling you know

double wi that's not selling nice houses

for 300 or 500 whatever yeah so um one

deal 100 acres a million uh cash total

sales so you need let's say 10 of those

and that hits 100 million in sales 100

million in sales in 10 deals not bad

yeah so then it comes down to a billion

and we sound crazy when a billion a lot

of money but when you do Ranch math it's

not that many deals even at that $10

million price point it's 100 deals yeah

even at at the worst case scenario

you're 100 100 deals away from a b and

anybody that's doing any sort of volume

of transactions out there be it in

houses or apartments or anything if

you've done 100 transactions then you

know it's a lot of work but it's not as

much as you think right because I feel

like I'm I'm probably respons

responsible for 100 transactions by

myself but what about with those of our

team and the hive mind and you know

everybody that that's on board I mean

there could be thousands of deals

already inside of our system and

knowledge you know game learning so then

then it comes down to like okay if it

takes 10 people to

do one one10 million Ranch deal in a

year you know the scale of how many

people you need and how many years it's

going to take you how many teams is how

many people yeah in this long in this

long it might take us 10 years to hit a

billion but definitely it seems like it

seems like it's a definite Target if

things continue as they are cuz you know

I don't know we could go to war or

something weird happens but if things

continue just as they are um I think the

way that we're reaching scale is is

different than everybody else because

we're not like hiring callers and like

or picking like having a higher monthly

burden we're doing it through our

Network and through a strategic

partnership so it's like there's a lot

of people sharing the load so by the

Comparison with Other Real Estate Asset Classes

time we hit a b again it's not just

going to be like based on mine and your

efforts there's probably going to be

thousands of people you know that we

helping so again it continues to dwar

that number down if we only need to do

100 deals and there's a th people

involved you know and then this is this

is the other thing too I want to bring

up is scalability so can you really

scale to a billion in other asset

classes I don't know I feel like other

asset classes are finite right like a

partments or storages I mean you could

do a Grant Cardone and buy $150 million

one but that's an anomaly right you're

not going to how many how many $150

million apartments are out there it

could be a lot I don't know for all I

know but the thing is is like you're

going to have to negotiate find those

get in the driver's seat meat out all

these other brokers who who specialize

in that and what we're doing it's it's a

it's a lot lower Target it's a simpler

Target not simpler Target so I don't

know I I I it's an interesting game and

when you do bigger transactions it comes

down to simple Ranch math what's your

Target and goal and we could talk we if

if your goal is $10 million a year Ranch

bath you do one project a year and

you're set with 10 people and you can

you can easily do that with doing bigger

transactions so I think a lot of people

like they try and they try and have this

Strategic Partnerships and Sustainable Growth

uh this theory in their head of like I

want to do 10 deals a month well what's

the 10 deals worth is it 10 $22,000

deals yeah or is it 10 $20,000 deals I

see that a lot on social like I Clos 30

deals this month and they're all 1,500

bucks 1,800 bucks 2200 bucks like damn

it's a lot of work is it is it really

worth the effort to do 50,000 or less

transactions I don't

it depends what you're counting to you

know what I mean and I feel like with us

with where we're head INF now that's

what that yeah and it works right CU

people could eat off of it and they do

well6 figures a year you know multiple

you know but still again if you want to

count in millions or in five millions or

10 Millions you need a bigger product

yeah we've been negotiating deals that

are 10 million 20 million and that's

just like the purchase price that's not

even with the development we haven't

nailed one that big but like we have a

lot of them that seem like they're about

to fall yeah there's one that's about to

fall that that that one for 10 that

one's probably going to go but we're

just continuing to to scale and it's in

the same same manner that's sustainable

because we're not changing our business

model we're not over hiring uh we're

just learning a lot and we again taking

advantage of strategic Partnerships

creative Finance seller finance um

mortgages notes wraps everything so I

think we're playing a pretty good field

pretty good

stage yeah I hope you liked it go share

with a friend wanted to start developing

and doing a ranch math check us out

million doll land mastermind.com

and we'll see you next episode thanks

guys hey if you have any deals you'd

like to submit to The Hive mine and our

team go to Hive bc. it's actually the

high Buyers Club submit your deals and

we can hopefully dispo 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