0:01 Hey guys, welcome to another episode of the high with this podcast. My name is Anthony. I'm here with Daniel Martinez, we have a really cool guest on here today. It's something that I've been interested in for a long time. Longer that we're in the land business, I feel like the more evolved we're getting right. So from where we started to where we are now, I feel like we're worlds away, because there really is levels to this stuff. And today's guest is going to talk to us today about land banking, something I'm super interested in, it looks like it could be an amazing investment opportunity if you have money sitting around. So let's just get right into it. 0:32 So, Brad, 0:36 I'm doing great. Thanks for having me on your show. Well, part of the country you from I live in Castro Valley, California, which is actually the San Francisco Bay Area. And the land that we'll be talking about later today is all located inside that. I don't know if your viewers can see stuff. But if they can hear and see it's a 60 mile radius around downtown LA. And I'll get into why we only invest in that area later. But it's the lands in Southern California. I'm in Northern California. 1:07 Gotcha. Okay. 1:08 I'm pretty excited about that. Because our primary target has been Texas, we've identified Florida, North Carolina and South Carolina, kind of as our next go to, but we've yet to connect with a very powerful land investor out of California in that area. So yeah, super excited about the show for a number of reasons. 1:25 Right, me too. I'm always excited. 1:31 To jump into like, what what is land banking? And like, can you like break that down into like, granular a lot of people like might have heard it, but they don't understand what it means. 100%? 1:39 Yep. And I'll keep my answers fairly short and brief. And if you need more elaboration, just ask me, because I've been told several times that I talked too much, and especially about land, I can talk for hours about it. So bottom line, I help patient investors, diversify their portfolios. Most of my clients will use like, self directed IRAs, and doormen, 401, K's, but you can do cash as well. And other other ways. I help them diversify their portfolios by investing in land that is strategically placed in the path of growth hold. And we tell people we're very conservative, we tell people seven to 10 years, this is not a flip. This is not cash flow. This is not get rich quick. This is for very patient real estate investors, you buy and hold roughly seven to 10 years. And yes, you could exit sooner or later. But that's on average. And our exit strategy is you sell to a developer who wants to build a solar farm or a shopping center or 500 homes depending on what your land is zoned as. And your exit strategy. Generally, we'll build what we call generational or legacy wealth, which is three to 7x return on your investment. 2:53 Okay, so this is a long term strategy. It sounds like a very long term strategy. So this is cash that you might otherwise want to put away into, like an index fund or something like that. Ira, or, you know, those kinds of investments instead of having them sit there, the cash is sitting in land. 3:10 Yes, and we prefer to call it longer term, not long term, because people are long and they freak out. This is just longer than most people are used to, especially in today's world with Instagram and Tik Tok, and, you know, texting and they gotta have an if you don't hear from somebody in like, 30 seconds, people start freaking out. It's like, No, this is this is buy, hold, set it and forget it real estate investing. So it has to be with patient money. That's why we like people with their IRAs, you know, if they're in their 40s or 50s, that money is going to sit 20 years anyway before they're even able to get it or even want to get it? If so why not have some of it diversified into land, let it sit there instead of the stock market, which you know, as we all know, today is crazy. I'm not I'm not getting anywhere near it anymore. But you know, I'm not telling people not to do that you need to have a lot of different kinds of investments. This is just one of many. And, for instance, my wife and I, we actually own 11 properties. People always want to Brad, do you have any skin in the game? Yeah, well, yeah, we got a lot of skin in the game. About a third of our portfolio is land. Two thirds is a fixed indexed annuity and life insurance. Plus we have stocks bonds, we have a single family rental fully paid for so we're kind of all over the place, but we have a sizable chunk in land. 4:36 Okay, yeah, nice. So you're in good company, right? That's all we do is land. And so we think about what we're looking for. So tell us you know, how did you get started in this and and why what brought you into this business? 4:48 Short story is, I do a quarterly net worth statement. I've been doing it since I met my wife in 1989. And on December 31 2011. I looked at the numbers and I realized I could not retire. I was 60 years old at the time, I had very little saved up. I'm an entrepreneur. I'm a former business coach, by the way, 40 plus year career as a business coach, but I hadn't really done a lot of saving and wise investing. And my wife worked for a very big company, which they don't like me to name the name. But she did her 401k solid every paycheck match by the company free money, mutual funds that she had picked. She had a really nice portfolio. Together, we could retire individually, she could retire, but I could not retire myself. So I had my lamb banker, Marcela Silva, come to our house, January of 2012. She did her presentation at the kitchen table, just like a real estate agent would do if they were going on a listing appointment. And my wife got up and said, No, thank you, not interested in land, don't understand it too long and investment. And she walked out of the room. I said, Marcella, I have enough to buy into a one deal right now, please find me a property because land is, you know, I can wait seven to 10 years. And this looks like the only way I'm going to have enough money to retire. So I bought one in 2012, one and 2013, one in 2014. And then in 2015, Marcela was presenting at a hotel, and investors were bringing their friends, so she said, I want to go, I said, you said you're not she says no, I'm not gonna buy, I'm not gonna buy the whole way in the car, I'm not gonna buy I just want to learn more. We get there. She listened to the presentation. And she buys two properties right there. Yeah, I laughed the whole way home. That was number four, and five. And then we added six more after that kind of like one a year, we've pretty much stopped at 11. Because we feel like we don't want to, you know, tip the balance anymore. 11 is enough. So that's kind of how I got into it. And I'm glad that I did I rested, I sleep and rest more easily at night, knowing that I've got a really solid investment that is going to return me very good. ROI in the long run. 7:06 Awesome. Yeah, we feel the same about Landon. Yeah, it really is. It's been a beautiful journey. My only regret is I wish I got into it a lot sooner. 7:13 Yes. I waited, I was what 6162 At the time when I finally started investing, and I wish I had known about it 2030 years ago. 7:26 Yeah, I spent 20 plus years in construction. And so yeah, I don't regret it. But yeah, Lee those 20 years would have added up if we had been in the land game ever since. So we do primarily in Texas, man, your your map shows that you're doing 60 mile radius right around Los Angeles. Can you tell us why you pick that area? Why that's important. 7:45 Yeah. Now, just Anthony, just to let you know, in order to invest with our company, we actually have a very high bar, you actually have to get educated first. So we have a one hour recorded presentation that people have to watch. So if you told me is like I just met you recently. And if you said Brian, I've got 25,000. That's our minimum investment. I got 25,000 sitting around in a CD at Wells Fargo. We call those certificates of disappointment not to deposit. And I want to know I'll yank it 25 out, and I'll invest it with you. And I said, Well, have you seen our presentation? You say no, I haven't. Sorry, I can't take your money yet. So in that presentation, Marcela goes into what we call the 10 growth factors. Our company's been around 43 years, it has only invested inside that circle that 60 mile radius around downtown. And the growth factors include things like closeness close proximity to a major port, job increase population increase infrastructure, development. As an example, Lancaster and Palmdale are to the cities, we invest in the city government about a year, year and a half a couple of years ago, as part of their general plan. The city government of the two cities, put $180 million into widening five of the off ramps off highway 14. Now you got to ask yourself, why would a city government spend $180 million of its own money to widen the off ramps and make it easier for people to get on and off the freeway? If something wasn't happening there? I mean, they wouldn't do that. So our company immediately starts looking at the off ramps and the land right around there because we figure, okay, gas stations, charging stations have a shopping center, something's going to be happening near those we're offering because they're not spending $180 million of city money, unless there's a reason for it. So we follow the money. We do a lot of research before we buy any land. In fact, when we look for land, we have something called the 16 point comprehensive analysis. And every piece of land goes through this 16 point check Listen, if it doesn't get 16 Yes, checkmarks we don't buy it. We buy one out of every 30 we look at this, what about 3% of the land that we look at is actually the kind that we believe is in the path of growth. And we'll give our investors that kind of return. So I only mentioned a couple of growth factors. But there's, there's others. business friendly city government, if the city government is opposed to building housing, well done. That's not good. You got people moving in, but they got no place to live, where are they going to stay? You know? So you got to have all these 10 growth factors going on at the same time, which other areas of the United States states might have some of them? We have never, never ever found a place with all 10. Texas? Well, I guess Houston has a port, but it's not quite as big LA and Long Beach, number one and two in the US. What better place, all the goods from China are coming there and getting offloaded. And then they're going to the warehouses and the distribution centers that Amazon building, because they have to be close to a metropolitan area to get there overnight. Because everybody wants it now, right? We on Amazon and got to have it the next day, oh, my God, it's not here. They freak out. So that that's a little bit. And again, you watch the presentation by Marcella. And she goes into all 10. And she explains them and gives examples of job increase in infrastructure and general plans and all that kind of stuff. 11:28 Okay, now, I'm excited to see the presentation. 11:32 Great. Well, I'm hoping your audience is excited as well. 11:37 So what is like a exit? Like? Are you buying low selling high? And like an exit strategy? Are you buying high hoping it sells higher in the long term says you're holding for so long? 11:49 Excellent question. Excellent question. So I'll give you the insider, you know, pull back the veil. So we look for land really, really inexpensively. I asked the CEO, I said, Well, how do you how does first of all, our company buys the land with its money first. So we're not representing the seller and selling it directly to an investor, we buy the land and hold it ourselves. And we buy it very, very low pennies on the dollar. And mostly this was interesting, the CEO said, we find a lot of divorcing couples. And in California, it's community property, the judge says you either have to buy out your partner or sell it and split it 5050. Well, the A lot of times they choose to sell it cheap, get something back, this could be you know, Grandma bought it 20 years ago, they don't realize it's in the path of growth. Nothing's happened for the last 20 years. But lots happening now. And they sell it to us very cheaply, we mark it up. But still below market value based on I hate to say comps, because land is very hard to find comps, because of different zoning and all that roughly through other like properties that are nearby, we sell a just a little bit under market value to our investor that creates cash flow to run the company and pay our research and acquisition department that works nine to five, five days a week. And all they do is look for land, we do a lot of what's called risk mitigation, we take as much risk away as possible. So now it's now it's marked up just below, you know, just below retail. And the investor then holds it and rides it the seven to 10 years or more or less depending on the particular property and goes for that bigger return that three to seven times return, they invest 50, we don't want them exiting for anything less than 150. And it'll be more like 202 5300 in that range. So I've seen some go for 10 times, I've seen people turn down offers at 10 times, because they know it's worth more. There's another property next door that's selling for you know more than what they just were offered. So they say Hey, this is long term, I don't need the money. Now. I'm just going to wait until they give me the price that I want. 14:12 It's interesting. It's interesting, because I think what's cool about what you're doing is that you're within the same 60 miles, which is a lot of Southern California. But like you said there's so much opportunity of growth down here because I actually lived down here in Southern California. So I see what is happening every day. So 14:31 and it's in the periphery, it's in the periphery of that circle. It's not in LA in LA property, you're talking you know, four to seven four to $8 million per acre. If you can even find vacant land there's just no more in LA itself Los Angeles the city, but when you get into Palmdale Lancaster, desert, Hot Springs, Cathedral City Adelanto Victorville kind of all in the in the in the end This outer outer edge of that circle, there's still a lot of opportunity left. 15:07 That's cool. And that's what we do. We're outskirts investors. 15:10 Yeah. It's called the exurbs. And we define that as a suburb of a suburb. So you get into the suburbs of La like Riverside, you know, Malibu, you know, but those are suburbs. Those are fully develop very hard to land bank there, but the suburb of the suburb further out. That's where all the opportunity is. 15:33 So 15:35 good. No, yeah, I was just going to ask, because I know, I know what we do to find our land. How are you guys finding land? 15:44 Well, as I mentioned, we have a department called research and acquisition department, probably 567 people work out, I thought I turned off my ringer, it's ringing that maybe somebody wants to buy land. back to them later, actually went and turned off the ringer, but it went back on again. Anyway, the research and acquisition department, these are people that are just working full time from nine to five right now even as we're talking. And all they do is comb that that area that we invest in and look for land, that's either somebody that's been paying their property taxes and doesn't want to pay anymore, somebody that's getting divorced, that has to get rid of it. They just work all the time to find some property that meets our 16 Point comprehensive analysis. And then they make an offer, they may have to negotiate. But as long as they get it at the price that they know that there's still a lot of room left, that is still below market. That's what they're doing. And that's how they find the land. 16:47 They're cold calling or sending mailers or 16:50 I don't know the exact process. They they actually I'm a salesperson, you know, for the company. I'm a real estate agent, and they don't really tell me it's kind of the secret sauce. What I do know is a lot of the scrutiny has to do with maps. We actually own maps have you got you guys are pretty young. But have you ever heard of microfiche? No thanks, I don't even know. So some of your older listeners will know what I'm talking about. Back in the day. I'm 71. So I've been around for a while. Back in the day. You have these they're they're a little piece of plastic film that's maybe six inches by six inches, has a ton of information on it. And you would place it on a projector, the light would come up through the microfiche and projected on the wall. And you could have hundreds and hundreds of documents on one little slip of paper, we have an entire box of microfiche. We have maps that the City and County of Los Angeles don't even own. They call us when there's a land use issue like when the city or county is going to go do their own development, they will call us to ask is there an easement that we don't know about? Is there a very gas tank that we don't know about? You know, from from a former gas station from 50 years ago? Are there red legged toads running around? Is it in a sensitive environmental area. They don't own these maps anymore. We bought them years ago, decades ago. And they're actually under lock and key in the Map Room. And you only get to go visit if you're an investor, you can actually request a visit to the Map Room. I was in heaven because I love maps. I'm an old school guy topo maps and all that kind of stuff. And they are hanging on the wall. And he pulled out the microfiche and I'm looking at stuff. So we have information that nobody else does, nobody else has. And we use that to go out and look for land to research land. And when we hear about something, we run five out of those 16 points on that comprehensive analysis have to do with certain maps. And if it doesn't get it, yes, checkmark for all five of those plus the other 11. And we just say Nope, it's not in the path of growth. Growth doesn't meet our criteria, and we don't buy it. 19:06 I like the heavy filtering here. That's something that we do less than where we were like outskirts like farm and ranch land. So we have less of that red tape. But pretty important when you get you know, in heavy heavy development areas. And that's something that we want to start paying attention to now is we're starting to look at land that can be developed land where you can work the entitlements, that kind of stuff. 19:25 Yep. Well, as you guys know, there's five different kinds of zoning of land, and we sell in all five zonings and my wife and I over 11 properties. I don't know the exact numbers but I think four or five are the what we call green real estate. They're going to go for solar farm. There are non residential agricultural land. The only thing you can do on those is build solar farms. We also have some residential and we have industrial and we have mixed use, which we love. Oh quick exists sample and the mixed use I know I'm digressing a little but remember I said earlier that business friendly city government? Well guess what, the Lancaster City Council about a year ago rezone my mixed use from four storeys high to five storeys high. Hello, they just gave me an acre and a quarter more land only they gave it to me vertically instead of horizontally. So now, when a hotel developer comes in and wants my land, they're gonna have to pay more because they can build a five story hotel, instead of a four story hotel, that's a bigger hotel, guess what, my land is going to cost them more now. And that was courtesy of the city council, I didn't do anything. We call it the unearned increment. Because I earned it, but I didn't really do anything. It just was kind of handed to me. Just from a zoning change, my land went up probably 25 to 30% in value. So that's what we like, when we talk about business friendly city government. 21:00 So one thing I wanted to ask, are you guys doing the entitlements yourself? Whenever you're ready to sell? Or are you kind of waiting for someone to approach you, that's gonna do entitlements, 21:10 the ladder. So we sell the raw land to the investor. And we tell them do nothing. Wait, when you get the knock on the door. And this is a free service that we offer. By the way after the sale, we don't make any money on this. We call it free negotiation coaching. So let's say one of you, let's say Anthony, you bought a similar property from us for 25,000. And you got an acre and a quarter. And two years later, Southern California Edison and the energy company in Southern California, by the way, there's about 20 of them now, not just the three that are run by the state. There's all these private ones because of what's going on down there. But But Southern California Edison calls you and says, Hi, Anthony, we see you bought an acre and a quarter way out in the outskirts of Palmdale and Lancaster, and you pay 25,000. And you've had it for two years, and we'll offer you 32,000. And you think, wow, I made $7,000 In two years, and I did nothing except paid $100 in property tax or something. You call me? You don't answer them. You say thank you very much. Send me an email with that in writing, and I'll get back to you. You send me the email, I send it to the CEO of the company. He gets involved. He looks at that land. First of all, we may have other investors in the same area who've already been offered more. Southern California Edison doesn't know that. And we're not going to tell them that you don't mention the name of our company. You don't want them to know, because then they freak out. It's like, oh, no, not those guys again. So by the seat CEO gives me questions to give to you, which you then email back to SoCal. And you say hi, you know, well, what are you building there? Oh, it's a so far. How many megawatts? What are you breaking ground? Is there a battery energy storage system on site? Blah, blah, blah, blah. And now Southern California Edison is scratching their head going, Oh, this Anthony guy. He's not going to take 32,000 He's too smart. So now their next offer maybe is 65. They bump it up? And you're like, Wow, that was pretty quick. I didn't do anything except ask question. You still don't accept it still lowball. It's not three times three times your investment is 75,000. You're not even there yet. So we keep going back and forth. This could go on for a year or more. While they're trying to they're trying to consolidate all these little one acre, five acre, two acre, two and a half acre properties into 1000 acre solar farm, it could take them look a while. Wow. So we'll coach you as long as necessary until you get into that three to 7x return. So let's say they offer you 120. And you bought it for what did I say originally 3025 or whatever? Five years? 25. And you're at 120. So you're like little over four times, almost five times. And you said and Anthony. You said Brad, my last offer was 120? Should I sell it? I cannot answer yes or no. Because that's financial advice. And I will lose my real estate license and most likely our company will get too. So I'll give you the code words. I'll say Anthony, they offered you 120. You paid 25. We told you three to 7x. That's an excellent price. Or that's fair market value based on what we know other investors have received at the area. Notice I haven't said yes or no to your land. You can try to squeeze 125 or 130. You might lose the deal. But it's your land. You do what you want. And then you go back to Southern California Edison and say, you know, I was hoping to get 125 The next day they call Oh, okay. God, Anthony, you are a really tough negotiator, you know? All right. 125 And then they send you the contract. Guess what? We'll look at the contract. We're not attorneys. We will just give you land banking advice on that. contract. And we'll mark it up, we'll cross out things and send it back to you and say, These are the things you need to ask them, and they get pissed off, they'll call you up and say, did your attorney do that? You can't do that you can't, our CEO cut out one entire paragraph once. Because it said, if at any, they were negotiated with nine different people, and they this was my friend was actually this was his land or her land. And they said, if at any time any of the other eight people back out of the deal, you owe us attorneys fees. Is anybody in their right mind going to sign that contract? How now? Why would I pay? Why would she pay attorneys fees if somebody else backs out of the deal? So she crossed out the entire paragraph, send it back. And their attorney said you can't do that? And she said, Yes, I can. It's Milan. I'm selling it to you. I don't care about these other eight people. That's your problem. So they're still negotiating, but they keep bumping the offer up, started. Oh, God, you don't know that story is incredible. In fact, she may even tell that story in the recording. And you'll see the progression, she actually shows you that the offer letters that she got, and the progression from they paid 92,000 for the land, the first offer was 126 335 509 600. And they've turned out every one of those and they're still going 26:30 good. So I got a multiple part question. With all that being said, now. Are these like, like syndication? Do you have to be accredited? Or do my individual owner of the land? How does that work? 26:42 Great questions. No, you don't have to be accredited. No, they're not syndications, though, you can as you know what maybe you don't know God, guys, because you don't do much in California. But at least in California, the law is you can invest with up to four non family members, and eight family members can pool their money to buy. There's pros and cons. Obviously, you can buy a bigger piece of land if you get more people or people with a lesser amount of money can get in, which is what I did on my first property I got in for 20,000, just under 20,000. And I own 17% of that first property that I got, because I couldn't buy the whole thing. I didn't have enough money. I said, but I want a piece of it. So you can go in with people and do it that way. The downside is everybody has to agree to sell at the same time. We've never ever in 43 years of the company, being around had an issue with somebody saying no, no, I want to hold out for more. Because through our coaching, once they get the code words, that's an excellent price. They know it's time to sell. And when they're looking at four or five, six times their investment. They're very, very happy and ready to do it. I think that answered you asked about accredited and syndications. Yeah, I think we got it all. Yeah. And that's a fee simple deed, you're getting a fee simple deed from the state of California, you own the land, it's yours, you go put an RV on. If it's residential, I guess you could put an RV on there and camp out. The city government's not going to be real happy with that. Because that they don't want a bunch of armies in these places. They're hoping that it's going to go for like 500 homes from KB homes or eliminar. Somebody like that. But it's your land. I went down and picked up scoops of dirt from three of my properties, put them in plastic bags, label them and brought them home. Because dirt is gold. So I got my little my little packets of dirt from some of my properties. It's a it's a, it's a fun business. 28:42 So are you looking for like, because like me like 20,020 $5,000 in California, that's probably like a quarter acre. Or like, there's gonna be some 28:52 dope, our minimum size is an acre. So if you want to dip your toe in the water, which many of my investors start out by just saying, Brad, I just want to check this out and try it and start watching. Oh, we also do free update webinars on Tuesday evenings for a half an hour to see Oh, does an update on what's going on in the areas where invest that's how I found out about the city council rezone my land. I don't get a notice from the from the anybody. I heard about it from the CEO who the CEO who heard about it because we we go to city council meetings, and we get the general plan and we've you know, we follow up and make sure that we're staying abreast of things. So that's how I heard about it. So I forget where I was going with that. But that that's Oh, he was asking about what what was his question again? Anthony. You remember what Daniel just asked 29:49 me? If you're 25,000 seems like it would only buy a quarter acre. 29:54 I'm sorry. Yes. So yeah, minimum investment is 25,000 and that will get you at least an acre or something. adds an acre and a quarter of the lowest zoning, which is the non residential slash agricultural land. And that's the land that goes to the solar farms. So yeah, you can own just one and a quarter acre yourself outright. 30:14 That's cheap, actually. 25,000 for an acre, you can't even find it in the San Antonio area, not even in the outskirts. I mean, you gotta go pretty far out to find an acre for 25 grand. 30:23 Yeah. Now, I will say, we've asked the CEO at some of our annual meetings, we said, well, how much longer do we have? How much longer can we keep finding land? Even marking it up and selling it to our investor for 25,000? How much longer can we go? And he originally said, like 15 or 20 years, the last time he said two years ago, he said, we've got 10 years. Now, it's two years, but about eight more years, and we think the land is just going to start to get too expensive. Or at least we'll have to raise our minimum, maybe to 50,000. I don't know why he won't give us that kind of detail, is a very private guy. And he keeps stuff very close to the, by the way, the CEO of the company is a PhD economist. So he looks at micro trends and macro trends and does all he's a geek with numbers. And every predict I've known the guy a little over 10 years, every prediction he has made about the future, he has been 100% accurate. So I figured, all right, I'm gonna stick around with this guy and ride this as long as I can. And we'll see it. And we've also asked him, Where are we going after we run out of land in this area? He won't tell us. And I think Texas, that's one possibility. I see Texas has a few of the growth factors. It doesn't have all 10 in one area. But he's got a few. But he won't tell us. I personally, he lives right in inside that circle, I don't think he's going to want to go any place that he can't drive to look at the land himself, he can actually go and look at any property before our company buys it. I don't think that he does it. I think one of the staff does that. But he could if he wanted to drive in an hour to an hour, quarter, maybe two hours max from one end of the circle to the other. And he could look at any property, what's around it, what infrastructure is there. So I don't think he's going to go to another state. But who knows, we'll see. Right now I'm just writing it for as long as I can. having as much fun as I can. I'm trying to get my wife to lighten up and buy some more. But she's she compromise. She says when we sell one, we're going to do three things. A chunk goes into retirement. A chunk goes for a really nice, sweet vacation. And we replaced that land with another piece. I said, Okay, I'll go with that compromise. Do you feel done, signed, sealed and delivered? Now my wife has an MBA in finance. So you know, so she, and she's a computer geek, he used to work? Well, I won't say the company. She works at a big company that starts with the letter O. She used to work there and did a lot of financial analysis and general ledger and accounts receivable and all that kind of stuff. So she's a money person, and she knows her stuff. And like I said, originally, she went three years saying no to this till she finally really got. And in that hotel room. I said what made you you're buying two properties the whole way here. He told me you weren't going to buy. She said, I get it. Now. I see it. I didn't get it when Marcel explained it the first time I get it now. And it's what I want to end so she bought the two and like I said, we got six more after 33:45 that. That's incredible, man. That's where we're at with land right now. I mean, we're spreading the land investing gospel, but like a lot of people still don't see it. And we're just like, oh, good luck, you know, and wish you well, in all your endeavors land is where it is wetlands where it's at? Yeah, yeah. 34:00 And I don't put down others. I mean, like I mentioned, we're very diversified. We have stock, we have mutual funds, I just did a real what's called a real estate acceleration loan. It's like a hard money lending kinda thing. 20,000 Well, I probably don't want to say this, because then your investors want to know about that. And they won't buy land, but it's a 10% 10% return in 90 days. And then you can roll it over, you can just take your money and go about your business. So we've got all kinds, you know, stocks, mutual funds, we've bought some series i bonds from the US government. Like I said, we own a single family residence. I mean, we're we're all over as I think every investor should be. But I would say a third of our major chunk a third of it is inland because we see that the opportunity there. 34:47 I like to 34:50 go ahead. Yeah, I was gonna say plus we don't like to work hard. I just did all the taxes taxes were due November 1, all 11 properties. Since I'm The point person on all 11 took me less than two hours, less than two hours to compile all the numbers, get a hold of equity Trust Company. That's where our IRA is or self directed IRA, request all the checks, put them in the envelope about two hours of work once a year. That's what I call set it and forget it real estate and that lazy man's investing or lazy woman's investments. 35:24 Dun, dun. With us, I like your vehicle with us. When somebody wants to invest with us, we look for a minimum of 100,000 You're doing 25,000? Can these people pay cash? Are you are you seller financing it, or how does that work? And maybe they can use it, they can rollover an IRA or something like that. 35:40 It has to be a self directed IRA. And we give them the names of three companies that we work with. We only work with those three because of titling issues. If the self directed IRA company doesn't title it appropriately, then it's a nightmare to get it out of title and sell it to the developer. So we only work with those three companies, and we give you their names, and then you pick the one that you want. So self directed IRA, I would say 75% of my clients use some form of a self directed IRA or a dormant 401k. From a job they add, you know, maybe they left it 1015 years ago, and it's just sitting there. And maybe it's been going up if they invested it wisely, it's going up a little bit easier. Lately, most of them are going down. They say a 401 K is now a 201 K. So and cash, you you can borrow like you can borrow against your house through a HELOC. You could borrow against life insurance policy, we don't recommend that I will steer you away, I'll be very reluctant. Because that's that you're going to be worried about putting the money back. You may have to pay it back with interest, even if it's a loan to yourself. The HELOC, you know, we don't want hard money, because then you got to pay to finance it for 10 years, seven years, 10 years, whatever. We prefer cash and self directed IRAs. Those are the two best ways to invest. 37:02 So I have a question about the impending recession, and the changing times has happened over the last six months. How was your strategy changed? Then? Like? Has anything changed at all? Because you guys are looking for long term holding. So I doubt it change at all, in my opinion. But that's a good question to 37:19 ask. You are correct, our strategy has not changed at all we have found at the beginning of the COVID pandemic, we had some of our investors exit at the high, they got land leases, these were solar. And instead of selling it outright, they got 25 year leases with a 2% escalation clause. And they're gonna make a couple million dollars over the course of that time in cash flow by leasing it. And at the end of the 25 years, guess what, they still own the land. Unless they do another five year extension and another five year extension, they own the land, the solar company can come and take all the panels out. But in 25 years, those panels are going to be semi obsolete anyway. So it's a great deal if you want cash flow, but we have no control over whether it's a buy or lease. We've had some people who are they've leased, like the person owns maybe five acres, and they'll lease one acre to build what's called a battery energy storage system. Because all this electricity is being generated by the solar panels is only generated during daylight hours. Well, they want to store some of that for nighttime. Apparently, between four and 9pm is the highest usage of energy. In California. People come home from work, they turn on all their appliances, they fire up the the laptop and the TV and they start cooking on their you know electric stove. And then they turn on the air conditioner. And they charge their car their electric car. So these battery energy storage systems need a large chunk of land to build so that the energy companies can store some of the electricity that is regenerating. So sometimes the person will lease or sell just one acre out of their five to have built an energy storage system and later they'll sell the rest of the for the solar field that they know is coming to solar farm. It's coming so our strategy really has not changed one iota what we found is more people are buying at the lower end. That has changed a little bit. We have a lot more people wanting solar, because they just see because of the laws in California. Oh, that's another one of the 10 growth factors. The laws in California are all pointing towards solar. SB 100 Senate Bill 100 signed by Governor Brown 2018 requires the entire state of California to get all of its electricity for buildings and homes from renewables by 2045 That's a state law can't be changed. And right now we're at 33%. So we got to go, double, no triple what we currently have in 20 years, and it's taken us 30 years just to get to here. So the solar companies and the utility companies in California, they're going crazy. Building the solar farms, because they're going to be fined 10s of millions of dollars per year for not meeting the goal. So they're going crazy. I think the last statistic I heard Anthony was 50 square miles of land inside that circle, have disappeared two solar farms in the last two years alone. 40:47 Whoa, they're racing against the clock, everybody, every but 40:51 they're going crazy. Nuts. So we love the solar, it's, it's just, it's an easier entry for people that only have the 25,000 they can they can get a piece. And then you know, sell it for 75 or 100. And buy a bigger piece. That's what we hope we do 1031 exchanges, we help people with those as well. 41:11 Oh, very nice. That'd be very helpful. That's something we're looking more into as well. Well, man, where where can people find you? Where can people get a hold of you when they're ready to throw some money into this deal? And how does that work? 41:23 Well, even before they're ready to throw money, if they just want to learn more, if they want to get the link to the one hour presentation, which they have to watch before I can even take their money, we don't even get to the money conversation until they have been educated first, on the screen. Or hopefully, if they're listening, they can remember this. Email is the best Brad at Brad warren.com, B, R A D, the Warren my name, I got it because it would just kiss ever, I'll never forget my name, or at least I hope I won't. So it's easy to remember my email, Brad at Brad warner.com. Make sure that they say I heard about you on the hive mind network the hype with us, whatever you guys entitled, your title, your actual program, make sure they let me know because I always like to give credit where credit is due. And thank the people. By the way, I also have a referral program. And I thank people with cash with money for sending me referrals. So I want people to know that and so they've got to tell me where they heard about it. That is something I ask every person that emails me, and I'll be happy to get back to him. Usually within 24 hours I answer my emails. And then we find a time to meet via zoom. I chat with them. I look them up on LinkedIn, I look them up on Facebook, I want to know something about them. And they can look me up. And then we chat and then they watch Barcellos presentation. And then if they still want to invest, then we talked about that process at that point. 42:57 Beautiful Man. Yeah, this is a great episode. This is a great learning experience. It's something that we're gonna start to look into ourselves. And I'm excited to see where this goes. So guys, if you're looking to invest in land banking, if you want to take a closer look at it, I think it's an amazing strategy. You have an incredible team behind you. So yeah, man, it sounds like you guys are the scientists of this environment. So yeah, I would like to take a closer look at it myself. So I'm going to be emailing you for more information. And yeah, looking forward to doing this again as things progress. 43:26 Well, thank you very much appreciate being on the podcast the program. You guys ask great questions. And hopefully this is at least educated the entire audience as to land banking and the possibilities. 43:41 Yeah, I got it. I got a lot better idea of it myself now too. So my credit my gear just spinning. So I'm sure I'll be in contact with you and I have some more questions myself. 43:48 I look forward to hearing from you. Thanks, Brad. You 43:51 have a good day and thank you for hanging out with us. My pleasure. 43:53 Take care. Bye bye everybody.