0:00 Hey, welcome today to our episode. This is episode called deal breakdown. We have a special guest, Matt Rogers. He's been talking about a lot portfolio he just bought. He just wait. We didn't see his hand. I did, though. So if you don't know, Matt Rogers, Matt Rogers is out of California beta has investing all over the country. So tell me about this law portfolio you got, man, that's amazing. 0:24 Yeah, it's an interesting deal. So I've been doing a lot of work in Florida the last couple of years. And a lot of it has just been getting lots under contract, and basically having them pre sold to builders. So I'll form a relationship with some builders in the area, first, find out what they're looking for, where they're looking for it, and then kind of go out and just shop for them. So I know when I get something back, that's interesting in their wheelhouse, I can check out the specs of the lot, the size, sewer, septic water, those kinds of things, and know if it's a good fit for my buyer or not. So that way, when I put it under contract, and that was pretty much already sold. This particular deal I did, I had been working with a builder in Central Florida. And he gave me a list of what he was looking for. And we went through and sent out a text campaign through hive mind. And what came back was, we had a lot of deals coming back one in particular with a lot portfolio, and there was a group and investor group had bought 20 blocks in this one neighborhood in Central Florida about 20 years ago, never did anything with it, they would never build. They just kind of sat on it. Not sure what their plans were, they never told me. But they just said they expressed an interest in selling their whole portfolio of 25 Lots. So I took that and we agreed on a price. And I took it to my builder and said, Hey, would you be interested in a lot portfolio? He said, Well, let me do my due diligence on these and get back with you. And it took him about two weeks to do his due diligence, I kind of kept the seller moving along and just let them know, Hey, I needed to do some brief due diligence, and we'll get back with you. And about two weeks later, the builder said these all check out well. 22 of the 25 I'm really interested in three of the 25 IV the reduced price, because there's no waterline hookups nearby. Okay, well, we agree on a price for all 25 for the seller, and I let him know that three of those loss needed to be discounted, I pass that discount along to my buyer. And we ended up coming to terms and got it done. So great. 2:28 Yeah. That is cool, man. So all one seller never built, you know, often that happens, people buy lots and never do anything with them. It happens all the time. So you think this is like a one time opportunity, there's probably 1000s of them out there. 2:43 It does happen all the time. And I'm the one that's usually talking to the sellers to find out. You know why they never Bill what happened, this particular investor group didn't give me a whole lot of details, they just said that, you know, what they knew for a while, and they were interested in selling. And they just never really did match with them, which worked out for me, the builder that I was working with on this, there was my buyer have kind of pauses buying for four or five months towards the tail end of the kind of buying spree that most buyers went on, he had bought a bunch of lots late last year. And I kind of pump the brakes a little bit while he was playing catch up with his actual buildings. So I caught him at the right time. Because he hadn't bought anything in six or seven months. And he said he was looking for somewhere between like 20 and 40. Lots Well, I ended up giving them 25 in one shot. And in addition to that, I've sold him probably six or seven other onesie twosie type lots. So I probably sold him over 30 locks now at this point just in the last couple of months. 3:46 So I do have a question on the on the portfolio side is it you have to do like 25 separate contracts or it was like one contract with like 25 lots on it and the title figured it 3:55 out? That's a great question. And this one is a very unique type of case. I got all 25 Lots under contract with the same with the seller. So I've got one contract with him for all 25 Lots. And on the sell side, the builder had a loan from a lending company that lends cash to builders to buy lots. So we've kind of had to play by the rules of the lender that the buyer was and what they needed was something that was kind of unique. I've never really dealt with this before. But they needed 13 lofts on one contract and 12 of the other remaining lots all on individual contracts. So I ended up doing a double close. Instead of an assignment and assignment when I've worked on this deal because of the nature of how the builder and their lender needed to close. We had to do 13 separate schools. We had to do 14 separate closings. So 13 lots on one and then 12 individual transactions per law On the remaining 12. 5:01 Wow, that's so closing costs for 5:05 each lot. Closing Costs added up quite a bit. Those are the buyers responsibility. So I didn't incur costs on that. And the good thing is the title company that we worked with there in Central Florida, it was a title company that the buyer does all their deals with. So I would normally have brought in my title company, they handle this. But his lender required a specific title company to get this done. So that's one thing you have to do too, is also just be flexible in cases like this, where maybe you're comfortable using a certain escrow company, title company that you're comfortable with. And in this case, I had to use somebody new, but they ended up being great. They've done many, many deals, they're professionals, they got everything done. And we were able to get everything locked up. And they were great to communicate with. And sometimes you never know, sometimes you work with a new title company. And there can be some hiccups, and you're just not familiar with each other how they operate. This all went fairly smoothly, especially for having that do 14 closings on the b2c side transaction, which would be my transaction as the seller and the builder as the buyer. 6:12 What was like the when you got the lead to close was that transaction time 6:18 I got the lead and it took from the time I got it in, I went back and forth with there's a group of three people that were part of this LLC that owns the 25 locks. And they had to kind of go amongst each other to make sure they wanted to take this deal. And this we discussed price. So it took about a week, week and a half of them to kind of talk amongst themselves and figure out how much they were looking for, for all 25 Lots and and how quickly they wanted to close because they have known us for so long. And they said they've had other people reach out to them prior and prior years to try to try to buy in from them. And they just weren't ready at that time. So that's why it's good to keep your marketing consistent, because you just never know when somebody is ready to sell, you know, they had people reaching out to them as early as 678 months ago looking to buy these slots. And they just said they weren't ready, I happen to hit them at the right time. They said they were ready, we got a deal done pretty quickly about seven to 10 days after they took some time to kind of discuss what they wanted. And then we got under contract between 710 days after initial talks. And then we have an additional two weeks after that for due diligence. With the with the buyer. And we had that we have a handshake deal, basically, after seven to 10 days with the buyer or the seller. And I just said hey, let me just want some very brief due diligence just to make sure this is what I think it is. And then I'm gonna go into my formal due diligence if we go under contract, and they said, Okay, no problem. And that gave the buyer time to do his brief due diligence he needed before we went under contract. And he came back and said, You know what, 22 of these 25, I really like three of them I'm not crazy about but if you give me a good, a good deal on them, I'll take them. And we can do everything on one shot. So they ended up working out. And then it took about about four weeks of actual closing. And there's a lot of title searches that need to be around. And then the just hurricane Ian came through, there'll be a hose and push everything back about 10 days. So ended up being about just a little over four weeks. In closing, we were going to close in about three weeks, and it pushed it back by week we can have so I would say from first contact, the actual closing was between six and seven weeks. 8:24 Now that's amazing, man. It's a it's kind of cool. The I've never done a portfolio before. So it's kind of a song I was gonna treat myself because that's that's interesting, man. It's a it's kind of cool. That's a 14 closing that's crazy. 8:37 Yeah, and, you know, getting the packets from the title company. And they could only work with what the lender was requiring to get done. So it was one of those things where it's not ideal, but it's what happened, what needed to happen to get the deal done. And in cases like these, you just kind of have to roll with the punches. It wasn't a big deal. Just a lot more closing paperwork to sign. And the closing company made it pretty easy. The only thing I really needed to get signed outside of a couple of general affidavits for the whole package was just to get the warranty deeds notarized and signed. So they made that very easy on me. Instead of sending me 14 completely new Closing packets, they kind of sent me one brief one that kind of covered everything. And then on top of that was I had to get 14 deeds signed over 13 of them were on one deed and the 12 wrong. Were all on individual 9:26 individual loans. How much profit did you make on it in seven weeks. 9:30 So I ended up making the total deal profit on that was just over 121,000 9:36 Boom, six figure months with hive mind another one. 9:41 I run all my texting through I've mine. And it's been great. Obviously you and Anthony have been a big part of what I've been doing for the last I would say a year and a half, almost two years now. And it's great. Now we have a good community of people who who encouraged and Help each other and, and this was one of those things where it's just, you know, having the platform and the people behind you, you know, to bounce ideas off of and get things done. And it's just great to kind of have that encouragement from like minded people who are striving to do the same things that you want to do. So, this deal, I've done a lot of infill lot deals. And over the years, I've really ramped it up quite a bit, I would say in the last year to year and a half. And this is one where it just kind of is a testament to the power of trying to stay consistent with your marketing, because you never know what's going to happen. You can hit singles and doubles, which are great. And I those are bread and butter deals, you know, those are deals that are like, five to $15,000 per lot, you can get a lot of these deals, and just kind of keep them churning. And you know, you can bring in a pretty predictable 20 to 40,000 a month, just into an infill lot deals, if you have good buyers that are continuing to buy, and you continue to keep your marketing consistent. So and then if you continue to do that, and keep your marketing out there, you're gonna get a homerun deal like this pop up. And this isn't the first one I've done, it's not going to be the last. And you keep your name out there and let people know you're interested in doing deals and stuff like this happens. So it's not Farfetch, anybody listening to this or watching this, you can do it too. And you just have to kind of just keep plugging along. And there's going to be some weeks and months where things don't go as planned, they happen to me still, you know, sometimes deals fall through, your marketing doesn't go as well as you'd hoped. But as long as you don't give up and just keep pushing on, these deals do pop up. And when they do, you need to be ready for them because I have a buyer lined up who looked at these and we got everything done quickly. And I've done enough of these to kind of know what to look out for, and things to kind of keep into consideration when you're doing a deal of this size. And, you know, I got transactional funding for the deal. So you know, I bought it technically and resold it the same day. But to do so instead of an assignment where I'm no money out of pocket. I had to bring $461,000. To, to closing to close on this, even though was the same way close. Yeah, right. And so yeah, and that's another power to having a good network of people behind you. There's a guy in a few other groups I'm a part of, that stepped up and was a pleasure to work with. His name's Abraham Gray, he's out of Atlanta, he's a big time real estate investor, where 10s of millions, and he stepped up and no problem put up 100 Or put up 461,000 Guys money back the same day, and was a pleasure to do business with. So the more people you have in your network that you can count on for things like this, you know, I had somebody wire in almost half a million dollars. And I had to obviously provide the contracts and the title work and title company and things like that. And for him to be comfortable with it. But great guy did a very smooth, seamless, transactional funding, and it worked out great. 12:54 There you go, there's a dozen deals like this don't come very often. But when they come you got to be ready and have the network in place to make that happen. 13:02 We can come sooner than you think as long as you're putting yourself out there. You know, if you're just kind of hiding in the shadows and hoping something happens, you know, it's probably not going to work out for you, if you're willing to put yourself out there. And it's not always easy. You just got to keep keep pushing through this weeks and months where things aren't going right. If you want to get up. You know, it's it's one of those things where you just got to kind of do what you can to keep the lights on, you know, and then a deal like this will pop up. And when it does, you got to be ready to jump on it and have the people in place. I had a transactional funder, I knew who could get this deal done. We had to use a lender Title Company, which was fine, they did a great job. And there's just some, some, some experience that comes along with doing this for four or five years now where you know, it helps you out a lot but for anybody new or has just done a few deals or maybe it hasn't even done a deal. There's plenty of people in the hive mind network, they're willing to help you out and jump in me included. And, you know, do what it takes to JVM a deal or, you know, just help people out to get to the finish line. 14:08 There you go. I hope you enjoyed this episode, man. Thanks, Matt for coming on. Quick little 1015 episode. We're gonna do a lot more of these. So hope you liked this new segment. Keep an eye out for episodes like this, and we'll see on the next episode. Thanks for coming. And you see on the next one bye