0:04 Hi, this is Jordan Morehead and this is the Austin real estate investing podcast today. I have Daniel Martinez here. Daniel, real quick. Can you tell our guests who you are and how you're involved with real estate investing? 0:16 Sure, sure. So my name is Daniel Martinez. I am out of California by doing best in Texas. I do a lot of stuff virtually. Mostly all my shows extra to Texas, we do land a real estate investing. We bought 100 acres last year in Texas and subdivided into 10 acre lots. We're looking to do more of that this year. As far as I think it's like, yes, we can. 0:38 Yeah, sorry. Just how you're involved with real estate investing. Oh, 0:44 yeah. And he asked me a question recruitment, what it was. Alright, so I have I do a couple of things in real estate. So I do I have a software called Glide mind, we help people automate. It's a CRM business, help automate the Celebrate the business, I have a data company called lists, guys provide data and skip tracing all over the US. And then we're doing a bunch of we're starting a bunch of new businesses around real estate in general, but we have pretty much tools and tools and services that we're providing hot leads, working on that right now. So some good coming up soon, 1:14 man. So why did you choose to invest in Texas, I think that said something everybody's interested in why Texas, if you're in California, why come to Texas to invest? 1:24 I've been with my partner for about three, four years, he's out of San Antonio. And that's where he's like, he's kind of like the sales arm. So he does, he drives across Texas to view land all over Texas. And he's just, he's just that type person. So they're super type personalities in real estate. And usually, you gotta find a person that fits the other side of it. So I'm the back end, I handle a lot of the backend automation, software outreach, data management, client outreach, and stuff like that. And then my partner actually doesn't sales. So actually go door knock the seller, so I have the advantage of doing what I do virtually. And he has the advantage of being there in person to actually go belly to belly with this with the sellers. That's awesome. 2:00 Cool. Um, so you've been doing this for a little while sounds like what initially got to attracted to real estate investing. 2:09 It was out of necessity. So my first business that I started was actually trucking, and a way to pivot into another business. And because trucking wasn't working for me, and I ended up I learned about real estate, and kind of went down that path about four years ago. Now. It's just interesting ever since. 2:26 So that's interesting. I want to talk about that for a second. So you're in trucking, like over the road trucking? 2:32 Yeah, over the road trucking. So I actually, I'm only 30 years old lace to drive dash to drive semi trucks for companies. And then I went when I wanted to go to entrepreneurship. I already had a CDL. And I knew trucking. Let's just do trucking because I already have the tools I need for this business. So I went down that road and did that for two years. They were generated $550,000 in revenue over two years. Yeah. And then pivoted into real estate after that. 3:00 So what, what caught your attention in real estate investing to pivot from truck because I mean, those are two really different things. Obviously, real estate investing, they're probably a lot of trucks, bring in materials to job sites, transporting all the things needed to make real estate investing happen. But it's, it's not something you would expect somebody to go from A to B, they're what what caught your attention in real estate. Um, 3:27 I see this a lot. But it was when I was in trucking. I had a lot of times I would drive. Yeah, for patients in the podcast and YouTube. So when I listen to podcasts, you said I was looking for something to pivot into. And that's how I learned about real estate and wholesaling and all that stuff. And you kind of go down once you learn about wholesaling, you kind of go to the rabbit down the rabbit hole, and you get stuck. So that's what happened to me. 3:48 That makes sense. I think that's how a lot of people find real estate investing, they stumble across a podcast or a YouTube video, and then they just go down, like you said, go down that rabbit hole. Because there's so many real estate podcasts. We're on a real estate podcast here now. We've been going for a little over two years. But there are so many real estate podcasts. And you'll just find I don't know how many YouTube videos about real estate, millions, I would say it's either in the hundreds of 1000s of the millions on the YouTube videos. We have a big YouTube channel, we've got to think over 100 videos, and I haven't even been doing it that long. So there's so many on there. Awesome. So you've done a few deals. Do you guys mostly do wholesale then? 4:37 Um, no, we don't we hardly ever wholesale nowadays. Just we buy it. We buy in flick. So just like flip houses we buy and flip land. That's our strategy. 4:47 Oh, okay. So you mentioned the 10 acre plots, but then that was all you did? Or most of what you did. 4:53 Yeah, that's mostly what we're looking for. Right now. We come across like other properties. Like I'm working on I want to build the ad came across the land. person one Atlanta, that I'm trying to build a storage facility out of. So working that right now as well. So there's different opportunity with land because you can have a blank slate. So depending on where it's at, and the access and utilities that come with it, you can do you have a lot of endless possibilities to go any direction you want. But if it's like large, large land parcels, usually just buying and subdividing, if it's smaller, we might look to do like a commercial building on on it, depending on where it's at in the car count. And it's just really depends on a lot. 5:27 Yeah. And the zoning to zoning is so important with the commercial there to zoning and what they'll allow you to build on it, I think, the biggest pieces there. 5:38 Always, you can always do a variance too. So if you have a good like parcel that has good roundabout areas, you can always do a variance, which is the process of changing your zoning. 5:48 Awesome. I mean, that kind of leads me to my next question. So if somebody's looking for a deal, like they're looking to do a land land development deal, what's some advice you give to people to avoid getting caught in a tough situation and doing a bad deal? 6:05 There's a lot, there's a lot just like real estate man, it's very, very broad and niche specific. Like, there's a lot of people that they'll find land, do entitlement work, and then sell it to developers. So they're not even doing the front end, they're not even doing the back end, multimillion dollar development, raw land, do the variance entitlements, and then sell the paperwork to an end developer, an end developer will come to that part. Because there's so many different facets of the of the real estate business that you just got to find something you're good at finding good information just again. 6:33 Absolutely. So you're saying it's a lot easier just to entitle it, and then pass it on to somebody else to do all the the longer harder work there. 6:42 Yeah, cuz I mean, it takes a lot of money. So I don't miss it. This time. It takes this takes some type of does take a little bit of money, but it's less money than actually building the actual asset you're trying to build. So there's companies there's tons and tons of companies out there that will actually like, I have four to 30 acres with utilities, sewer, sewer, city, sewer, city water, what can you do with this? So they'll come in, okay. If it's worth 30 acres, I can probably build 200 units on this property. It already has city sewer. So I can I can build apartment buildings. So they'll come in, do a variance, hey, can we get the zoned R seven, or whatever multifamily zoning for that county is they'll get a zone for multifamily. And then they'll hate Mr. Developer, we have this 15 acres that can do 250 units based off the zoning, we already got the paperwork for it. Would you buy it for this mount? And then just go that way? 7:32 Yeah, that's smart. You take on a lot less the risk of doing it that way, too. Yep. 100%. And it's just doing paperwork, what's the risk? So what's something you tell a newer investor might be looking to get into these land entitlement deals? Where do I start? 7:48 I'm not even, I don't even do land entitlement. I have an optic partner that does that we do department ranch. So that's the thing about land. So I have I have clients that do infill lots was, is something in the city where there's a house a lot, maybe another house, and another two houses a vacant lot. So those are infill lots. So I have clients that do that they'll buy and flip those two builders, or people that want to build their home, whatever, the end buyers, and then you have like, you kind of go a little bit because there's like different versions of this. So you I have like four to 30 acres in in town that you can maybe do entitlement variance type property. And then once you get out of town right in the fringe, there's people that want to live outside the city, usually within 90 minutes from an airport 60 minutes from a major city. That's where we restaurant, we that's where we play with. So we're looking for 50 acres, 2000 acres anywhere in there that we can subdivide and, and pretty much sell off. So Texas has unique law where we can just subdivide, as long as 10 acres or more we can subdivide without having to do any, like extra paperwork, we have to do the survey. So that's where we specialize that so we're in that area. So well. We have oxygen partners we have so whatever property to bring to us. 8:58 Okay, cool. I didn't know that. So it makes it really easy to just to subdivide that land and sell it off to people, people in so much more common now to talk to so many different people that say, Hey, we want to be right outside of town, we still want to be 60 minutes or 90 minutes from the airport. We want our own land, we want our own space, they kind of want to have their little ranch yet. So makes a lot of sense that there's a huge market for that right now. 9:25 Yeah, like I said, people just I mean, the American Dream is is land freedom. So a lot of our buyers are are emigrate immigrant buyers afford to pay cash. And usually what that we're using, we're using owner financing properties. And I think one of the next questions is where do you want us to be right? Yeah. So where do you want us to be as kind of answering the question as we want to be more into like the the note side and banking side of it. Because if we can get land subdivided and create notes, that's where we decided we're gonna be honest more such as the bank notes side of it using land as leverage to build up that side. 10:00 Yeah, and just to simplify it for everybody listening, you want to buy the land, and then finance it to somebody else who's the end buyer. And you're collecting payments over time and getting paid at the fair interest rate for it. But anybody that's ever looked at an amortization schedule, when you bought your house and you see the amortization schedule, and you see that, you're actually paying what three to four times the price of the house, by the time that loan is paid off. It's probably not four times. I think, 10:31 it's like, it's like, right now. It's probably like 2.2x. As interest rates go up, it's gonna go two and a half 3x. Four amortize? 10:40 Exactly, yeah. Even that you're paying double what you paid for the House over the life of the loan, because you're paying so much in interest to the bank. So Daniel gets piece of land, and we're gonna keep it real simple. Daniel gets a piece of land and sells it for $100,000. But on a seller finance note, at 5%, over 30 years, Daniel might actually collect $200,000 for that piece of land. And that's the magic of seller financing. People say, Oh, why would a seller want to do that? That's exactly why they want to do that. And they're not paying tax on all that money at once. They're paying a kind of a trickle over however long they finance a deal for. 11:20 Yeah, it's actually pay less taxes by doing an installment sale. And the other advantage is that bland isn't lendable. So if we become the bank, there's plenty of buyers that want to work with us versus not work with us, you know? Yeah, really position ourselves as the lender. 11:38 Yeah, that's smart. Like that. So those long term goals is just have a lot of unknowns paying you overtime. And that's that's great passive income, because you don't have to do anything. Not only is it land, so there's no maintenance, but you're not doing anything they're paying you and you just collect the checks and foreclose on it if they don't pay. Yeah, 11:56 a lot of a lot of people in real estate and like I want 1000 doors or 200 doors. I'm like, I just want cash flow. I don't even care what how many doors I have, like doesn't matter, like cash, cash flows, cash flows, and doesn't matter what form it comes in. 12:10 Yeah, I think something else that I really think is interesting about owner finance deal is the foreclosure process is so quick and easy. And you keep all the money you made. So if they paid you 50 of that 100 grand, and they just suddenly stopped paying, you could take the land back and keep it 50 grand, 12:30 it's actually asked to go through a different process. Because if you as the lender, you start to start to do a, a notice of sale to the county to sell off that property. And then if nobody buys, you can essentially, if there's an overage, if there's an overage and somebody buys that property, you just get us get whatever though to you, you can't keep that money legally. So it's a different process. 12:54 Really, with land. It's different. And it's just in general. 12:58 It's the same thing with mortgages. So if somebody forecloses and loses their property, they they can only whoever the lender is, can only collect what that property is owed to them through the amortized schedule. That's it. All the rest. If it sells like auction, let's say they have $100,000 property, they pay down 40,000, the lenders on 60. If it goes to auction, and sells for 80, lender gets 60. The whoever, whoever bought it, they paid 80, that 20 actually goes as an overage to the state, which eventually goes back to the original owner that bought it. And then the person that bought at the auction gets that 20,000 equity. 13:37 Thanks. I had always heard that it was easy to 40 in the foreclosure process on a fellow seller finance note, and I've bought with seller financing, but I've never been foreclosed on. Luckily, with seller financing, but I always always heard that you got to keep what was paid to you and you just got to take the land back and most of it 13:58 has yet to still do the notice of sale. If nobody buys it, then you have the opportunity to buy yourself back and get the property back. But you still have to do a notice of sale where if somebody doesn't buy it, then you have the opportunity to buy yourself, but you still have to go through that process. Sure. So anybody anybody can buy it technically, 14:16 just a little more complicated. It's more like normal foreclosure sale than people like to lead you to believe that it sounds like Yeah. Awesome. So Daniel, do you have a favorite business or mindset book that you like to read and recommend to people? 14:33 I'm not really 14:34 I'm not guess. 14:36 Yeah, I'm not really a reader. I do. I do have a business book. In the pipeline. I like traction. Texas is a good one. Just because it's a helps you understand your roles in business and what roles you should take and what roles you shouldn't take. 14:51 Okay, yeah, traction is a great book and traction by Gino Wickman. There's like a whole series around that book too. There's that Understanding EOS for the employee there's rocket fuel, I want to say has something to do with that. There's a bunch of them. If you look up traction by Gino Wickman, or you just look up Gino Wickman. You're gonna find a bunch of good stuff on that. Yeah. All right, Daniel, how can people get a hold of you or reach out to you if they want some more information about what you're doing at hive mind? 15:22 Yeah, so we're hive mind CRM on all platforms, Instagram, Facebook, YouTube. We provide a lot of content towards that. We've been extra on the content. We've been on YouTube for a year and a half. We've done like almost 1000 videos, so we put me mostly a video every day since April 2021. It's been pretty crazy. There's been a lot. We have a podcast called hive with us Podcast Network. We're on all platforms with that. And then if you have a big land deal you want to submit to us you can submit it as submit big land back 15:55 up. Submit big land.com 15:58 Submit big land back calm. 16:00 I like it. All right, Daniel. Most important question we asked here on the podcast is what's your favorite restaurant in Austin. 16:09 So I like to go to chow so I wouldn't. I went in there with my partner. We had to go to event there. And we went to fogo de Chao and the copper handles are really good. And of course the steaks good. 16:21 Oh, yeah, they come related to keep slicing it. You can't keep up sometimes. 16:25 I give up. 16:28 I couldn't quite keep up with them. They're pretty quick. Thank you so much for coming on here today. Daniel and anybody interested hive mind or submit big land? deal.com got a big land deals Summit. 16:42 Yeah, it's hive mind. crm.io That's our website. 16:46 And then we'll have all this in the show notes for everybody to but I have mine crm.io and submit big land deal.com I like it. All right. All right. Thanks, Daniel. Thanks for coming on. We'll talk to you soon. 17:01 No problem. Thank you. Thanks for having me.