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Dec. 29, 2022

Ep 312: Unlock the Potential of Real Estate Land Investing with Daniel Esteban Martinez

Ep 312: Unlock the Potential of Real Estate Land Investing with Daniel Esteban Martinez
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This was recorded in front of a live audience in San Diego, CA October 27, 2022, Daniel Esteban Martinez Keynote. Go check out subto SOCAL meetup group.


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0:03 This show is sponsored by hive mind CRM, it is more than just a CRM. It is a real estate and business mastermind that comes with an all in one CRM, you can have unlimited websites and users, you can call text, RVM, and email all in one user interface and you can set up custom automations. For any type and multiple businesses. 65% of companies start using a CRM system within the first five years of business. Once implemented, the hive mind will save you on marketing give you more time and make more money. One of our users had his first $100,000 month using our system in June, we want to see you automate and accelerate your business text us at 2109728 t 42. For future meetings. And of course, to get our $1 course on how to make more than six figures on one land deal. You can schedule your free demo today at hive mind CR 1:01 In the industry, you got to you got to have more tools in your tool belt, you can't just do properties anymore multifamily, you also have to touch base on land, right. And then a lot of you here who don't already have a CRM, we have to understand that you need a CRM as well. So we wanted to make sure that we keep focused on different points here just to talk learn something new. And of course network. So if you guys haven't met each other already, make sure you guys get each other's numbers. Okay. Every last Thursday of the month, we're here, same old story, nothing different. But always make sure you guys network, you guys are doing deals together. You're doing it wrong. Okay, so without further ado, I'm going to introduce a buddy of ours, Daniel, CEO and owner of hive mind, don't forget to use the QR codes on the table. Do you want to check out the CRM, give it a scan. And don't forget if you guys ever want to work deals with each other, we could be your buyer. We have plenty of hedge funds to work with anything at all. I mean, if you guys just want to talk about deals in general, come on by Okay, so don't forget to use a QR codes and reach out anytime. So without further ado, Daniel. 2:14 Appreciate it. Appreciate it. For Steven here. I met Steven, literally sub two in LA. I was like, Are you sick of Podio yet? That was the question I asked him. And he can attest. He's like, Yeah, I'm sick of Podio. But we're gonna cover a lot of different things. But a lot of people is a lot of people in this business is you got to ask for the business. The bottom line, you can ask for the business. Everybody doesn't know me. My name is Daniel Martinez. I am Daniel hivemind. On Instagram, I've been in real estate for four years. So a lot can happen in a short amount of time. But part of why I'm here is I just decided to make a decision to start entrepreneurship one day. And as crazy as that seems it wasn't there's never a good time to start it. So. So there's never a good time to start entrepreneurship. So you gotta dive in for everybody here. If you haven't done your first deal, it took me seven months to do my first deal. And I contracted a lot of houses. And it didn't work out for me very well. I was living in Georgia at the time. And I contracted like a house had a closing I was gonna make 25 grand $25,000 When I assigned it Friday, the Monday before close or the Friday before close on a Monday, the seller actually passed away. So I lost out on that deal. And I really didn't know what when the best time to follow up was I'm just like, let me just I found the memo on it and wait. And I've checked back a year later. And they sold it again for the same price. And this is pandemic. So it was probably worth the $200,000 or more. So follow up is really, really important. And houses are not. And I'm making joke about that throughout the whole time because I do we do land 100% strictly land. And I'll cover the reasons why we do land as a whole. But I used to be a truck driver. So for everybody out here that has a nine to five still, I mean, I used to literally drive trucks. About three years ago, I was still driving trucks. My first company I started was a trucking company. And it was one of those things where like, I want to do entrepreneurship, but I didn't know exactly what I wanted to do. And I had a CDL so I'm like let me just start a trucking company. And it kind of drove down that route. I did that for two years ended up grossing like $530,000 in two years. Sounds like a lot of money, right? I think a lot of money. I lost 100 grand. So I lost 100 grand in trucking, even though I made 550 But it shows the show that our businesses should be run by you. So you got to think about what the outcome and energy that you're putting out there is worth for the right. You put it to the right things that you're gonna get generate results. So I learned that the hard way, but it's a failure that I built upon because most people that gone into entrepreneurship, they get wiped out And the thing that separates everybody else is survival. So I always make the joke that if you survive long enough, if you survive long enough and entrepreneurship, you'll get there. So that's my little joke. But for everybody here, like I said, I went through that struggle of the trucking business. And I'm a product of podcasting, because I used to drive a lot. So you listen to music. And when I when I was already making the decision of doing entrepreneurship, I'm like, Man, I have to do something better with my time. Because if I'm, literally have all these hours, I'm just in the music, what value do you really get from that? So I started, listen to a lot of podcasting. And that's what really opened my eyes to real estate. And that's how I kind of ended up down this road. So when my trucking company was going to do I'm going to heck, sorry, well, my truck company was going was going, I was like, Man, I need to do this real estate thing. So I kind of fell down the YouTube rabbit hole on the podcast, rabbit hole of podcasting. And I learned a lot just by listening to podcasts. So one of the big reasons why I do podcasting is because I'm a product of it. And if anybody has no I have a high with us podcasts, all everywhere, you can look, YouTube, Spotify, Apple, I produce a lot of podcasts for that reason, because I'm a product of it. So I like giving back to the community. And that's just one of the big reasons why I do it. But back to when I was starting to real estate man, one seller died. I mean, I had another one with a contract that a property. And I went to it was a seller had another house. It was vacant. So like family members needed a place to stay. He's like, Oh, I'll let you stay there. Don't let family stay in your houses. And they stopped paying rent. So now he's paying the mortgage, on top of on top of his own mortgage, families, another house, he doesn't want to deal with them and kick them out, whatever. So I contracted it. I'm like, You know what, Mr. Seller, let me handle this for you. And I'll evict them never done an eviction before. So I contracted it. I'm going to the seller. They're nice to me, but they were nice to him. So I knocked on the window, like, Hey, I'm here to buy this property. We're here to close. I need you out of the house. I understand you need time. Is there any time any way you can give me like, time you can move out? Like no, no, no, go away, whatever. So I'm like, alright, you gotta go to the eviction process. So I'm like, I got up like, I need you to sign this paperwork. I found some paperwork on mine to represent as a property manager. Because I'm like, I have to like, if the judge asked me that, What's your relation to this transaction? I'm like, Well, I'm the property manager. So I'm like, I got some property manager paperwork. And I went to the seller, I'm like, I need you to sign this. I can go a victim. He's like, alright, just I sent him out of the house. I'm like, Alright, so I filed all the paperwork from our money, submitted it all in court, learned that whole process for the first time of evicting a tenant out of somebody else's house. And I finally got them out of the house. And the ticket that took like, two, three weeks, I got them out of the house. And when finally evictions over charged, they trashed the house, of course. So I called my buddy, I'm like, hey, I need your help. To move all this stuff out the house. I'm gonna get a dumpster. I know a dumpster guy from the Ria, the local Ria, we're gonna call him up, he's gonna drop the dumpster off. We're gonna load up this dumpster or clean this out. We're gonna make 20 grand on this deal. He's like, all right. So him being a good friend. He helps me load up all this. We clean up the whole house, couches, close the garage. That tie we cleaned the whole house. We didn't vacuum it, but it was it was trashed. It was trashed. And we got to finally get it cleaned out. And I'm like, Okay, I thought Now next is the buyer. So I find a buyer. Buyer buyer comes in. He's like, the, with the repairs necessary. The numbers don't make sense. Man. So I learned about subject to so I'm like, Okay, what if the mortgage stays in place? Where do your numbers work? Now? He's like, Yeah, I Alright, so I go back to the seller, hey, I need you to leave the mortgage in place. I need you to leave the mortgage in place because the numbers don't make sense with the equity that we could potentially sell it for. And with all the repairs that are required, we have to do this. So go get more paperwork. Hey, I need you to sign this paperwork now too. So he's not he's saying he agrees to sell sub two. And we get to the closing table. And the the sellers like, My car's broke down. I can't get to the title company. And me, my smart person. I'm like, the title company I chose is somebody from the Ria. Hey, use this title companies. hour and a half away on the other side of town. So I'm like, Alright, I'm gonna come pick you up in 30 minutes. Let's go. So I picked them up, talk to them, talk with him all the way to the closing table. His wife shows up because she was somewhere and she had the car. That's why he couldn't get to the, to the closing. The title company I was using, I guess, didn't. They worked with wholesalers. But they didn't pull title to last minute because deals fall through all the time, which I really don't understand that. But now I understand it, but not back then I'm like, why didn't you pull title? So they're pulling title right? When we get there. They're doing all the paperwork. Ladies like, Daniel, come here. I'm like, Oh, no. What's going on now? So she pulls me aside and she's like, did the seller tell you that? He has an underlying credit card lien? That's $30,000? No, he didn't tell me that. Okay, so we can't do the deal? Nope. I have the buyer in the lobby, ready to sign that he knows I'm assigning he knows what I'm making. I was gonna make like, $15,000 to negotiate it down. I'm like, This is ridiculous. Now I gotta know, now I gotta like, I gotta drive home for an hour and a half with my tail between my legs. I was speaking to drive home with a check. But nothing. So after my experience with houses, I'm like, man, there's got to be a better way. There's got to be a better way. So I started me and my, how I got into real estate was I took a course I bought a course for 10 $50. And there was a guy in that group. He's like, I'm doing land. I'm like, what land? Why would you do land? So if everybody that does, like, why would you do land as a wholesale deal? Well, because it doesn't cashflow. Well, why would you do that? Because they're motivated just by owning it, they have to pay taxes. So with houses, they know they can rent it out, they know they can sell it, they know they can let their cousin live there. They know they can Airbnb it, they know they can put anything they want. They can do all these options. They can leave it empty for all they care. They have all these options with land. It's just there. It doesn't produce income, doesn't cash flow, they had to pay taxes every year. And it's just there. It says nuisance. It's usually free and clear passed down from generation to generation that never seen it before. It has no value to them. How is that beneficial? was beneficial? Because there's no there's no emotional attachment to it. It's easy to negotiate. It's easy to negotiate seller finance, because there's no there's 100% equity. And you can cash flow by seller financing using creative finance, which is why we're here greater finance, right? So all the all this stuff to leads into kind of going on the land game. So my first deal I hate I'm like, this is this. I'm really an introvert. Really, really introvert forever. I mean, five years ago, I'll never be doing this ever. And with cameras around, being miked up doing that YouTube videos never in my life what I thought I would ever end up down this rabbit hole. But here I am talking to you guys. So everybody February about that is you got to get in the comfort zone sometimes, and you don't know where the past is gonna take you. You just got to do it. So my first contract that I got, I was like, I'm like, I'm gonna just do a website. So I got a Care website. Everybody had care websites, and let's get a Care website. And let me do some ads. I'll throw five bucks a day at it and see what happens. So I had this lady come in with and I was targeting land. She's like, I have this property in Florida, that I keep on getting fined from the city for people dumping on my property. So I'm like, okay, all right. Let me see what this worth. Oh, and another benefit of land. There's there's not very many comps, depending on the area. But good thing with Florida, there's a lot of little infill lots that have good comps, so I kind of comped it, and I was like, consumes about $20,000. And what I know about land is yes, you can sell it for full price. But at this time, like if you really want to move it fast, you got to sell it at a discount that way it was like Oh, I'm buying this at a deal just like you do with houses. You said a deal that a discount. So I was like, things are about $20,000 If I can get this from five, there's going to be a deal. It's gonna be a good deal. It's not gonna be 510 grand. Well, we'll see what we can do. So I shot an offer and this is all through email. I never talked to the seller. I emailed her back. Would you take $4,230.32 She will take that. So she responds like an hour later. Like, I'll take five grand I'm like yes, five grand. That's exactly what I want him. So I sent her the contract. locked it up for five grand. I was like, what do you do now? You put it on marketplace Facebook marketplace, this is the best place to sell deals. So I put it on Facebook marketing Ace for $12,000. And I found a buyer in two days, my messenger started blowing up, and a buyer came in. He's like, I'll buy this $12,000 taken off marketplace I want to buy right now. Alright. So we negotiate the whole thing and took $1,000 I'm like, I'm ready. So I'm like, I'm gonna send you the purchase sale agreement right now. Let's get this done. He's like, I'll sign it tonight. And I'll let you know person in the morning. So I sent it tonight, we come in the morning and I my phones blowing up, cuz I give my phone number. Like who's calling me? And guess who it is? It's an agent representing the buyer. And I'm like, I just negotiated everything out. I don't even need you. Like, come on, Mr. Mrs. Agent, like, this is this is already a done deal. I heard the terms, the contracts already. It's already out there. And she's like, well, the buyer called me and he wants me to represent him. So in my head, I'm like, what's 3% of 12 grand? You know what, I'll pay close? I'll pay your fee. I'll pay your fee. So after after she's, you're good to work with me. She's like, can you up my payments of $500 the title companies that our way. Like, yeah, I'll give you $500 Just make sure you sides. And that's my deal, man. I made six grand how to pay the agent 500 grand $500 I made $5,500. And I've been doing land ever since. And that's that's kind of how I fell into it. And me and my partner, the one that that basically we took the same course. We ended up working together because nobody else is doing houses and I'm really I'm sticking to land because I got burned with the eviction. I got burned with the other one, the guy passed away. I'm like, Man, this is. And that was like seamless. I never talked to the seller and never talked to the buyer never talked to the title company. And I did the whole transaction via email. I'm like, this is an introverts dream. So that's that's what happened. So you can really negotiate amazing terms when you're talking to land seller. So a deal we did about a year and a half ago. I talked about land not cash flowing. It doesn't cash flow for sellers, but us using creative finance, we can make a cash flow for us. So we had a deal come in. We still did people, our main lead generation we do is texting and PPC. So texting and PPC and we use high bind, of course, texting outbound and we use PPC use same thing inside mine. So we had a we had a guy come in, he's like, he has a $35,000 lot. How many 35,000 Our lots are out there. 1000s right. Maybe millions who knows $35,000 lot. He's like I want him we're asking is like I want to sell my lot. How much we take for it. He's like 1515 already halfway. But that's his opening offer. We're like, I'll give you eight. He's like no, no, I need 15 You don't understand. He's like, I'll give you a and my partner. He's like, I'll give you a number. We're not doing 15 Don't worry about it. We're not doing 15 So the dude came back. The 90 days later, follow up is key. He's like, Hey, I remember you wanted to buy my lot. He's like, Yeah, I want to buy your life was somebody that details about it? He was like, Yeah, I want 15 for it. And he's like a I remember you. I told you a is a well you give me now $1,000 He's like alright, so we got to kind of under contract for $1,000 Guess what we did? We put on Facebook marketplace. At what price point 45. It was only worth 35. So what are we what am I doing here? I did 45,000 with $8,000 down was 1000 Going to the bot to the seller. What am I getting? payments? So I sold it in a week. $500 A month $8,000 went straight to the seller and I'm cash flowing $500 a month. What's the what's the average rental income you get on a rental property in Indiana? 500 $400 $200,000 asset 150 to 250. So here's a 150 to $250,000 asset cash flowing 500 bucks $35,000 lot. I'm sticking to land. I'm digging in. I'm digging in. So now we're coming across like okay, we kind of got the concept. You can lock a property up discount it. You oversell it overpriced. And then you do seller financing. How big a deals can we do? All right now Now we're talking. So everybody, everybody every the average wholesale fee is $20,000 across I know it's different here for people here in California listening to this watching this live or it might be different here. But everywhere else is about $20,000. And most of the land deals we're doing 5060 $75,000 on each lot. So we're like, okay, if we're beating the average wholesale fee on on land, raw land with no no utilities, no nothing. Wow. Floodplain it doesn't even matter. People want floodplain properties too. So we're like, okay, if we're doing these numbers on land, let's just do bigger deals. So we started targeting bigger lots. So last year, we bought 107 acres. What do we do? When you when you buy, we use seller finance, creative finance, we negotiated $200,000 Down 800,000 seller carry. And we subdivided, we subdivided the 107 acres into 1011 acre lots, or was like nine to 10 eliminate your lats. That's right. 10, limiting your lats. And then we stopped, we subdivided so I don't do any deals here in California, none all in Texas. And the reason why is because my partner is there. And for all the introverts out there, I don't do none of the front end sales. So when you and this is Simon sidebar here, when you partner with other people, you don't have to do all the things required to do in real estate, there's acquisitions, there's marketing, there's sales, there's dispositions, there's transaction coordination, there's all these things that come with a real estate business. But if you partner or outsource, you don't have to do all the things you don't want to do. So everybody talks about, build, build your strengths, build your weaknesses, build your weaknesses, let all that stuff go focus on your strengths and partner or, or partner or hire your weaknesses, you can go a lot further. So my partner is all the sales, guess what I work from the house. My family's like from Asia from Chicago, they're like, how do you deal with California traffic? And I'm like, Yeah, I literally roll out of bed and go straight to the office, and I'm at work. Like, what, what's the commute? I don't know, she's talking about so. So back to the 100 acres, we bought 100 acre seller finance $200,000 down, we got private capital to put the $200,000 down $100,000 seller finance, if you pull out everything, just financing with the MBI. It's like 3000 a month, or like, we'll give you 2500 a month with a two year balloon. And we're just trying to make up numbers trying to keep the payment down as low as possible, just so we can do what we need to do. So in Texas, you can subdivide large acreage, and to tenant as long as it's 10 or more acres, you can subdivide that land as many times as you want. So that was 100 acres, 1011 acre lots, all you need is an engineer to cut up that property. So what we're doing, we're just like wholesaling, we're using paper, cutting it up, and then subdividing the smaller lots and then add it when the lots are smaller, you can sell it for more price per acre. So that's what you learn. So the bigger it is, the cheaper it is. And when you cut it down, you essentially force appreciation. So that's what we're doing. So that lot, we ended up it took us nine months from close from the $200,000 financing to, we sold all the lots, we ended up making 200k in cash and 200k and notes that still pay us. So now we're making money off of transactions that we did, and cash flowing that deal. So now we're like we need to do more of these. Let's go let's turn it up. So now we're strictly targeting larger assets, do the same process. We sold all those deals on Facebook marketplace. And that's how we That's our whole strategy, large acres, cut it down to small acres so that people will buy it. We're seller financing it, and creating paper, and then cash flowing that deal for whatever we need to so we sold off the notes to pay off the seller pay off our private capital. And then we kept the rest of the notes. And that's how we got the spread that we did. So right now, we just bought, we bought 125 acres, about some 45 days ago outside of Dallas. For 175. We bought it for like 1300 an acre. And we're listing. It's actually on sale market right now for 600. What are we offering seller financing with $200,000 down. I'm getting really repetitive here, but I want you guys to understand that you can really you can really do this with seller financing and creating opportunity, especially with land because you can get a really good deal. If you talk to enough people, this is the whole strategy. So how do you talk to a lot of people, Stephen? hive mind. So, we text a lot of people and it's just a numbers game. People want to sell their house creatively with damp With down payments with 100%, seller financing by talking to a lot of people, that's it, it's, I think it's brand Daniels as TTP talk to people talk to people. That's it. When you talk to enough people, people will negotiate with you, and give you the terms you want to make a deal happen. So that's the whole strategy, we're out, we're using creative finance, we're using subject to loans in place or not, we're taking over payments, and we're giving them the money they want. As interest rates are going up, that's it's going to make more opportunity for us. There's properties on the market right now, in every market that have been listed, especially land for over a year, how motivated are the sellers, really motivated. And especially with high interest rates, you can negotiate seller financing. So we actually, we do a land mastermind, we pretty much teach you how to market and get those deals, if you get a seller on the phone, we'll help contract and close that deal for you. We had a seller, we had a one of our students, literally, he was just he just talking to people talking to people. So we teach our people to just go talk to people. And if you find a good lead seller wants to just sell it as finance terms bring it to us. And one of our clients just locked, we're locking up a $16.9 million, a lot of 252 acres. And it was brought to us by one of our students. I don't know what we're gonna pay him, but he's gonna make a pretty good check, and he still has a nine to five. So a lot of crazy things happen when you do bigger deals. And that's going back to the fact that small deals, pay small wholesale fees, big deals, pay big wholesale fees, he's got to find the people paying at a higher level and find those deals for them. And you can do bigger checks. So and the good thing about bigger checks is you don't have to do all the things required on a regular wholesale business. If you just do the marketing, that's enough. If you just do the sales, that's enough, if you bring in the money, that's enough. For bigger deals, it's just like multifamily. So we're trying to do more deals, we have a deal. We're working right now. The two owners are real estate agents. They didn't want to sell it. So they found a land specialist to list it been on the market for a year. It hasn't moved. We came in. We offered them seller finance. And we're trying to create $3.2 million of notes out of property listed for a year that hasn't moved owned by agents and agents know what we're doing because we told them and they're okay with it cuz they're just ready to move. They got this thing seller finance, where they're paying out almost $5,000 a month. So they put already $60,000 themselves personally negative cash flowing. How much motivation do you need people that negative cashflow. So it's just talking to people figuring out what they need what what timeline they need, negotiating seller finance terms payments, we're paying the two owners one one's cash one one's payments. So that's what we do pay the other one in cash the other one payments, as less cash we gotta throw out now let's not forget to sell we just pay them off and payments. So everything's negotiable in real estate, you can take it any direction you want. It's all about the you're negotiating your negotiation strategy and what tools you have in your tool belt. So with me and Steve, we talk a lot about creative financing the powers of that. So once you understand that you can really do whatever you want. And it's limitless, what what assets you can target and what assets you can get. So, talk a little bit about hive mind, hive mind is a software CRM, we launched that for everybody that's been in real estate for a while. Who here has used Podio at least once. Podio Podio. He was telling he was telling me earlier, he's like, I hate Podio. Thank you so much for this. And that's Steve Steve's sales acquisition. He's on Stephen's team. So Stephen is one of my clients. So he's over here with Podio. And me I had the same issue. I went in, everybody's in Podio. I'm like, Okay, I'm the tech guy. So I have to learn this stuff. And I'm like, I went in this thing. I'm like, This is ridiculous. Why is it so difficult to do this and I'm techie. So I saw an opportunity to launch hive mind. And we've really dug into providing as much value as possible. We give a lot of our money back to our clients. And we're just producing a awesome community, which is why we kind of intermingle with with sub two is because a lot of my clients are in sub two. And it's the same thing. We're sharing, sharing information, sharing knowledge, partnering with each other. I had a client, he was good. Matt Rogers. He just spoke in LA. He literally came into hive mind he's like, I just want to use texting. And Matt Rogers Have you ever met him? He's in the Andrew Athol. He's like, I hate technology. I don't want to use anything else. So he came in and he's like, Daniel, show me how to text. That's all I want to do. I want to just that one thing and that's it. I'm like, Alright, I got you. So I showed him how to text. He comes back to me four days later, I got a contract in Florida. I'm like what Are you serious? He's like, Yeah, I got a contract in Florida. I'm like, Alright, I have clients in Florida, go talk to one of them. He's like, alright, so he contacted one of my Florida clients that moves lots in Florida. And he hit him up, and he's like, I have this lot, boom, because I got a buyer for it. They went from, he signed up, got a contract, and four days, they closed in 22 days, both made $7,000. I didn't get paid on that. But they did. And it's one of those one of the things that leveraging the network that hive mind brings, and it's really cool, because I have clients all over the US. I have clients in four countries, actually five countries now. I'm clients of five countries that they leverage and, and, and work with each other across the United States. And they use the system. So it's a really cool community. And it's just collaboration, collaboration, collaboration, collaboration, a lot of a lot of like, I have tons and tons of stories, I'll tell you another story I have. So I have a client that does land deals in like 30 states. He buys and sells with cash, and sells on open market. And he had a lot in Wisconsin. So buyer came in, he's like, I want that a lot. He's like, alright, and the buyer did the same thing that my buyer that my buyer did the other day, he's like, I have an agent, I want this run through my agent. And he has to go through him, he has to prove all the documents and all this stuff and all the stuff with the title company. So he's like, Alright, let me talk to your agent. So your agent starts talking to him. And there's an agent from Wisconsin, my buddy, my seller that my client, my client buyers from Massachusetts, and he starts talking to him talking to him. And after a few minutes, like, Hey, are you so and so from the hive mind? He's like, Yeah, he's like, I'm from the hive mind to you. I know Daniel very well, I talked to him yesterday. And like what the buyer's agent that he brought in was another hive mind client that the seller was selling a lot to crazy. Stuff happens in the weirdest ways. But it shows the network and people collaborating. And it's just, it's crazy. So I talk about business automation a lot. Anybody wants to know a business automation looks like all right, somebody's really excited back there. I see you, I see you. Don't worry, I'll make eye contact. So everybody pull your phones, I'm gonna show you a business automation looks like business automation looks like so I have a Texas number, because that's just the number I've memorized. So if you pull out your text messages, and I want you to text this number, to 10972 1842. Again, we're sending a text message. 2210972 1842 All right, we're gonna text SoCal. So CL. This is also Cal JV. So tech, SoCal. So I am not wearing my phone. Actually I am, I should take it out of my pocket. Because it's going off. So I did this, I did this demonstration. I was speaking in Milwaukee, Wisconsin, and those three other people in the audience, and I did the same presentation, pull your phones. But I thought ahead and I gave my phone to my buddy. I had, I had 100 People text me in 1990 seconds. And if you have if you got the first text, guess what? You're not part of the you're not part of the system. You are one of us, part of the hive mind. So that'll text you on our YouTube channel, our podcasts, you'll get text for the next 30 minutes. Congratulations. You've been infected. It's not spam. Right? I heard you. I heard you. I know you're whispering to your partner. But I heard you. I don't spam people. I'm trying to contact sellers to make negotiations. I'm not offering anything to sell. So you'll get a text. I think it's a second tax, you'll get an offer to our land mastermind. If you're interested in that, like I said, we're teaching everyday people how to target big land deals, and make big big checks, and hopefully go off and do it yourself. So I had a client that we used to do recently weekly education for free. And I had a client just he'd listen and listen and listen in. And then he fell off the map. I'm like, Where'd this guy go? He came back like six months later, and he's like, Yeah, I did three subdivides I'm working on my fourth and fifth one right now. I'm like, Oh, holy crap, where do you go? But a lot of this thing is just taking action. Didn't get all the information in the world. But if you don't take action It goes up the other year. So everything I said, You got to take action on it. I did a podcast today with a guy. And he's like I learned. He said, he said he was listening to another land guy. And he's like I learned, the list of pool is two out of state owners. And then I left the call. And then I pulled out of state owners, I did $700,000 in land, my first year of gross profit. And it's like, the whole thing is taking action. So for everybody here, target land, out of state owners, land is of underlying motivation for everything because of negative cash flows, you can really find a good deal. You can make big deals happen. They're just zeros. So go out there and make big checks. There you go. 35:48 So let's open it up for some questions. All right. Now you guys understand that you can make money just by selling land. So let's does anyone have any questions? They want to kick off? Anybody getting in any land deals tomorrow on Facebook marketplace? 36:08 is maybe a dumb question gets zero possible to have a lien on the land. 36:13 lien on land? Yeah, yes. What do we do with liens, we take over sub two just like houses. So that $2 million deal with the with the with the agents, there's a $1.4 million underlying lien that we're trying to take over subject to that is just a regular everyday owner. So our goal with our strategy with that one is we're trying to keep it in place. And just to negotiate partially labourious of lien that we can take over and subdivide the properties. And hopefully we'll give them extra points because he's about 5% interest. Our goal is to bump it up that we would keep the lien in place. We want to bring up that $1.4 million to do that deal. 36:52 Do do do a title search when you buy land, then 36:54 yes, title search titles, those structures, will you still use title companies just like people that do houses, we contract, everything goes a title, a title, make sure there's no underlying liens, all that stuff, their stuff. First second position, we Turman that and we do a lot of trouble title stuff in Texas to see if there's stuff in second third position and for getting that first position. Whatever that is, we can leverage that if there's lien or IRS, we can always negotiate that down. So it really depends on like, we always do a title search and try and see what liens are there and see if we can remove them or negotiate them down. Because these are always negotiable. 37:34 So how do you find the leads like I've because I've actually been looking at into buying land the past on a year and a half, for personal use. But I've also been thinking about like investing too. But how do you find the leads, because I always just kind of resort to talking to a realtor and looking at Zillow and stuff like that. So what's a good good source? 38:03 There's a list providers, so data source priced, and you can drive them for dollars, you can do all the same bandit signs looking for land, you can target listed properties. Like there's tons and tons of resources out there. I'm working on a deal in Atlanta that I literally Google Map for dollars, I found this big ol chunk of land near the city that was owned by one person, and I just sent him a postcard. And I found out who the owner was and sent it to his mailing address. And he's like, How'd you get my how'd you get my information and like it's on the county. So this is pulling a list skip tracing it. And like for us we do we pull this skip trace it and we do and we do PPC so we text them PPC that's all we do for lead generation. 38:46 And do you ever deal with like a realtor or anything 38:51 we sell with realtors on the other end because selling when it comes to the sell side, you just Pam the 3% and you don't have to do not have to worry about it. Most times they'll do transaction coordination for you. So you just let them do their thing. We make enough money, we can give some away. Good questions, good questions. 39:17 So it's inevitable that when you guys start marketing to sellers, someone's going to tell you they have some land, right? Yes. So how are you running your numbers? Like for somebody that's just starting out? Yeah. And they get an opportunity for some land. How are you running numbers on the fly? 39:34 We use just the resource reverses we have like people there's been through they use like prop stream and stuff like that. Literally we use Zillow we find a price per acre for the similar size lots of sold in the area. And that's kind of gives us like a base ARV of what it is. And we just need to be loosely close, because we're always going to if we get this thing at a good price, we can always sell or finance and raise that price on the back end. So we're actually creating constant over seller finance. 39:59 So When you guys are looking for land, like as far as for infill lots like in the city or rural acreage? 40:07 Good question. Good question. So there's a lot of land niches out there. So you kind of let's kind of start in the city. It's a question I'm gonna cover. So when you're in the city, you have infill lots, it might be house, land, house, house, land, business, those are infill lots. So it's kind of inside the rural city, those are going to vary in price, because there's a lot of different variables in it. It could be the size of a lot. It could be the car count that passes if it's a hard corner or not. Why do you think McDonald's are on hard corners? So the price of the value goes up, but based on depending on where location is of that lot in the city, us personally, I have clients that do I have a client that he's done multiple, six figure months just targeting those lots in general, and Florida. And that's what Matt Rogers does to us, we look for 50 acres or more, within 50 miles of the city. And the reason why is because you can't find 50 acres in the city no matter what. And if it is, it's going to be an exorbitant amount of money. And usually it's cut up by then. But if you find most people and this is a good question for everybody here, people that work in San Diego or in LA where they live, they live in Temecula, Menifee, all the sights in the middle so they're willing to travel. So it's the same thing for people that want land people don't want land recreationally, like the gentleman back there, they're gonna buy it within a certain radius of airport and the major city because they want they want the luxury of space. But they still like the proximity of of the city. Because of my habit, am I have an international airport, it might have concert halls, it might have all that stuff. So we're looking for within 50 miles of any major city. In Texas, we're doing stuff nationwide now. But it's mostly we're trying to stay within that range. Because most people are willing to travel past that. And you kind of the value of the land drops significantly this because there's not many people buying past that point. 41:55 And what type of demographic a buyer do you guys usually, usually do you guys have, like a certain demographic a buyer usually sell to? Like, is it mainly just developers? Or is it random people or farmers or 42:08 it's a little bit of both, we sell to a lot of Hispanic buyers, because the American Dream is owning property. So we sell a lot of Hispanic buyers, and we sell to a lot of businesses like we just sold a lot to a mobile home developer. So we sold it to him at low downpayment high interest rate, his whole idea is he's gonna put a mobile home on there, because he has a mobile home hookup that he's gonna put on the lot and sell it again. So we're providing a service that's needed in the market, we're not doing any development, we're not breaking ground, we're not doing anything like that. We're just adding paperwork to the deal and selling it into bite sized parcel. 42:41 And the majority of people that come to our events just mainly deal on, you know, actual, like stick bills or metal bills, whatever the case may be their houses. So when you guys are locking these land deals down, what type of agreements? Are you guys using? Did you just have your attorney draft one up? Or is there a mock one that you can share with everybody here? 43:02 We have our attorney do all our Doc's one of our things is that me and my partner, we haven't decided any paperwork, we have our attorney fill out the paperwork, we just sign it. We have zero buyers, our buyers are the retail market. So think about this. If you're contracting houses, you have to sell to an investor who's going to sell it to the retail market. So you have to double you have to like divide your potential spread on the deal. US we sell straight to the retail market. So we don't have any buyers. We take that whole wholesale price to retail. And that's why it makes so much money. 43:34 Awesome. Another another question. What about like, when you want to divide? What's the process to? Or how would you know some is dividable? And where would you go to learn that? 43:57 The biggest thing it's going to depend on your state, which is why we stick with Texas because we know the law, Texas as long as it's 10 or more acres, you can subdivide it with an engineer. I don't know the law here in California. I'm sure we can look at it and figure it out. But we just haven't done any deals here to know what the law is here. But in Texas has 10 or more acres, just have an engineer. We have an engineer part of our team that'll do it for equity. So no money out of pocket. 44:24 How did you go about finding a buyers list for for land? 44:29 Like did you just put it on Facebook marketplace like I'm developers. Right now right now we have no buyers list. We sell straight on MLS, we put around the MLS and let them let the agents sell it. And one of the reasons one of the ways we move it on the MLS is we offer seller financing. So all the deals that sit in the MLS, they're trying to get their cash price right now. Whereas when we sell our properties, we're always offering seller financing so that's why our deals move 44:59 on so it doesn't cost money to divide up your land, you just 45:05 it? It depends on how many, how many acres it is. But it's usually 30 to $60,000 from an engineer standpoint, to subdivide the land. So we have, we ended up finding a guy that wanted to do it for equity, so we don't have to come money my out of pocket and that's what he does for us. Good question. 45:31 All right. So Matt Rogers is mainly Florida, and you're mainly Texas, and you said you have a network within hive mind. Yes. So let's say if I get something in like Idaho, then I will reach out to you and hive mind. 45:43 Honestly, you just posted in the group, I have Idaho's we have a lot of clients in the major metropolitan areas, Metro mount metropolitan areas. Wow. But I don't know I'm sure we have somebody I can link you up with. Everybody knows somebody. And if you just put it out there, somebody will respond. 46:00 Okay, awesome. And then you said you don't really touch California right now. But is there? A lot of people are not concentrated on California. So would you do California if the opportunity arose? 46:14 It depends on the deal. Like I said, we'll look at any deal anywhere. But our bread and butter is Texas. So we have deals sent to us and Oklahoma. I think St. Stephen has one in New Mexico, we'll look at deals and other places, it's just we really have to do a little bit more of our we have to stretch a little bit on those where if it's Texas, it will we will know really quick if it's a deal or not. 46:36 So Dallas is a is a place that you do or out of there. On our outside of Dallas, 46:42 we bought 120 acres, literally 60 minutes outside of Dallas, that we're trying to move for 600 when we bought it for 175. Perfect. Yeah, Dallas is hot. As Steve mentioned, you know, when you reach out to sellers, some of them always have some land, right. So that happened here was a duplex and Claremont didn't make sense for creative or the way he wanted to structure it. But he's got land in Kern County a tiny lot is that somebody in selling be interested in helping them out for I don't even know what you would do with it's not even that large. But somebody will buy it at the right price. Somebody will buy everything. So seller finance it, seller finance it legit. Our whole thing is that we like doing large parcels that have value because the papers worth a lot more sellers thinking to default on it. You're that paper once you sell it once it's gonna stay there for a long time. So with small little lots, you can do it. It's just not our strategy. We're not we're trying to create good paper that we can leverage. And my paper you mean your notes? Yes. Yes. 47:45 Cool. You mentioned you were a truck driver. It's funny because I drive for UPS too. And I would tell him I drive through like Oklahoma, I see like billboards saying acres of land for 180,000, you know, who are the end buyers for that, like I get that you get the land, you lock it down? Who really is buying the land and what for? It doesn't really make sense to me. 48:12 And so middle of Oklahoma, it comes down to that proximity. There's nothing out there. Yes, those those properties move hands. But it's really hard to find a buyer because it's just nobody's buying up there. There's no movement. The whole reason why we stay within proximity of big markets is because people are always expanding out into further markets. So people always think where's the opportunity in land? Well, it's ever growing, as communities grow and shift they expand into land that's not taken. So 6% of the US is land. So think how much proximity there is. So as as the city grows, it just takes up and that value of land becomes more and more and more. So there's always opportunity just outside, just outside the bridge outside the city lines. And it's always ever expanding. 49:02 Right? But so who really are the end buyers? And who really who buys these deals from you? 49:07 Well, it's people people that have oh, that's that's a great question. So people that buy houses us, what are they gonna do with it, it's an investment that they're going to live in, that they're going to Airbnb that they're going to rehab it let's say that their grandma live there who buys land, people that can afford to they need of recreation, or they have to have a plan to build something on it, they have a clean slate so with land you live once once there's a once there's something builds on a property, it's kind of set forever, like it's really hard to change the zoning and tear that house down and build up multifamily. So once you build that first thing on it, that's kind of what it is going to stay for a long time for a very long time. So with land you kind of it's a for all all people that do stocks, it's you're buying at the bottom. You can go duplexes, multifamily, single family office, retail, you can go any direction you want and that's kind of the cool thing about land is the people that buy it. If it's an up and coming area They can build whatever they want. They don't have to go to the county and get a variance to build up that whatever property they want. So there's a whole there's a whole people that strategies that they target infill lots in populous areas. And all they'll do is they'll buy at retail prices. And then they'll, hey, if I build, they go to the city, and this is called a variance. They'll go to the city, Hey, can I build 20 multifamily units on this? Oh, yeah, you see this permitting and engineer to drop plans, Alright, perfect. Engineer drop plans, they'll do all that stuff. And now that now that same property has tripled in value quadrupled in value, just because they did the paperwork for a new build, and they don't have to build it. There's builders out there that are looking to buy that paperwork and that land as a package. Because essentially, on a silver platter, they don't have to do that work. So there's Pete, there's companies out there that all they do is they buy contract land, do a variance and sell it off to builders that actually going to build and developers? Alright, thank you. 50:58 Oh, yeah. Wait. So you mentioned that you want to be within 50 miles of a major metro area? Like is there a population size or anything that you're looking at specifically, or just like looking at Houston, Austin, 51:11 just like the obvious major ones are, what's your cut off of what you're considering? It's just 50 miles, the reason why of anything of anything, if anything, that's where the that's we call it like the doughnut, or the doughnut has a hole in the middle, that's the city, you're not going to find 50 acres or more in the middle of the doughnut. So you do outside the perimeter of that city itself. And that's where we're gonna find all the all the good deals that we're looking for. There's deals in the city, there's deals out all in the midst of that, like, the we're just, we just did an event in Florida. And there's houses along the the river where they park their yachts. Most people have driveways and stuff, they literally park a boat. So what happens is, when somebody wants the 20 year old home or 30 year old home, they'll buy it at full asking price, tear the whole thing off, and then build the mansion on the same property because it's the proximity, location, location, location. So there's only so many places you can park your yacht in Miami. So that's why it makes it so valuable. 52:13 You might have said, but for your big purchase in Texas, the one that you divided up into 1011 acre lots or vice versa. Do you mind? How much did you make off of each? You might have said but how much did you make off of each one? 52:31 So we sold it into 11 acre lots. We ended up making 200k in cash and 200k and notes over the whole on that one deal. On that one deal. All total? Because we had to pay off the seller, we had to pay off the private capital. And that's what we made on the back end. 52:47 So you paid your balloon early because you sold off all the correct. 52:51 Correct. Good questions. Good questions are low. 52:58 What up? What up? All right. So a variance in San Diego is about a year to two year process. 100 to $200,000. San Antonio, what are we looking at? 53:09 We don't do that we actually have a variance partner, though by nationwide. And that's a good reason why we don't do variance. We're trying to literally just like a wholesale deal. Get in and out of these deals. So we're doing bigger deals we're trying to get out. So like a lot of variance is going to be changed by different market. And we have a guy that does that. So if you guys have a variance property that potential for it, we have a guy that we can we can push it on to and still make a deal. Okay, awesome. Yeah. And like I said, it's just the variance thing is it's time consuming as paperwork. And like I said, every every municipality is going to be completely different of what hoops they're gonna make you jump through, and some aren't worth jumping through. At least for me. 53:51 Anyone else? Awesome. 53:57 Awesome. Thanks for coming. guys. I appreciate the questions. I enjoyed being up here. I hope he enjoyed the talk. I don't talk very often. But I do have a podcast, I guess I'm lying. Thanks for coming out. I do come here to contribute and help out the communities and I do support all my clients. So I try and help out them whenever they need it. So that's the difference of the hive mind and other other companies. I really try and put foot my foot foot forward and help them out wherever they need to 54:25 know thank you, Daniel. Appreciate it. Hey, guys, remember, if you're walking out of here with no new numbers, you're doing it incorrect. So you have a beer, talk to everybody around here. That could be your next partner. All right. Thanks for coming, guys. Appreciate it. 54:39 Oh, and if you have any questions about hivemind you can literally text that same number. That's how you get a hold of me. That's how his team gets a hold of me. They literally text that number. That's how I manage all the time. That's a mess. I manage all my clients. There you go. Thanks, guys. Have a good one guys. 54:57 Hey, guys, we hope you're enjoying this content. If you have leads that you need to dispo anywhere in the country please visit high like Hive buyers and we'll help you move those deals that you need to get into the marketplace this show is sponsored by the list guys, do you need more leads in your local or virtual market? One intense small businesses don't invest in any kind of marketing the list guys have over 35 plus list types to choose from and you can mix and match any list or criteria. We also used to skip trace lists and provide up to seven numbers and email addresses every list you purchase will be scrubbed against previous purchases the list guys are here to save you time. Contact the list guys today at www dot one this guy's dot com. That's www dot the number one list 55:53 saw an opportunity to launch Hyper V and we really dug into providing as much value as possible. A lot of our money back to our clients and our security which is why we kind of intermingle with

Daniel Esteban MartinezProfile Photo

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!