0:00 Hey, welcome to today's show. I'm your host, Mr. Daniel Martinez. I have here my special guest, co host, Anthony gonna, and Mr. Pete Reese, who's a nationwide investor who does land just like all of us, we're gonna have a great land conversation. Here we are, we're gonna start right now. So, Mr. Pete, how long have you been in real estate man? 0:23 Well, I've been in real estate since since we bought our first home, which was in the year 2000. I've been a real estate investor since about, I guess, 2005 ish. Been a broker, I got my broker's license in 2006 was initially flipping homes and things like that, then the market crashed out here in California, where I'm from. And then, so I was listing bank owned properties as a broker for a couple of years. So that's, that was like my my only focus, that's the only thing that was really selling at the time. So I got heavily involved in that. And through that I partnered up with a lot of didn't partner up with them. But I got hooked up with a lot of different investors and large investment companies. And then I started finding them deals, I went off on a whole tangent for a few years of just exclusively just finding them deals and getting them contracts locked up and everything like that, since I knew what they were looking for. And ahead of a lot of good contacts, especially with the banker and short sale properties and things like that. So kind of went down that whole tangent, and then started another business with my wife. 2017 is a blogger, training and education, business, travel, blogging, those types of things, that was 100% focus for a number of years, four or five years. And then in 2020, little over two years ago, at this point, I really got the itch to get back into real estate investing. And I didn't know what to do, but read some stuff online about land flipping, and I didn't know too much at all about land really. And just started reading bad heard some people talking about, hey, I bought this a lot for 10,000, I sold for 30,000. And, you know, that kind of that kind of appealed to me, I was like I could do that, you know, I had a bias so I can I can value things. So I bought a training program on it, learn everything I could on it. And then just went all in, sent out, my first batch of mail was 10,000 letters. And, and then just started from there did our first resale deal in March of 2021. And that that was the first you know, deal that we did. And then 2021 ended up doing about 1.2 million in revenue about 50% gross profit margin 2022 We're wrapping up the year right now. But it looks like it's going to be around 3.6 million in revenue, and again, about 50% gross profit margin. And I really feel like I can do 10 million next year, if not more. So can a number of things I'm working on to scale things up, but we're just trying to grow as quickly as we can 2:59 do congratulations, man that that sent you. Hello momentum. 3:04 It's really starting to snowball at this point, too. So I was looking at, you know, like, I don't know, if you guys track like your portfolio value of the things that you own, like things for sale and, and under contract. And I looked at it yesterday or the day before, and it was like 2.7. And those are all properties that I own, you know, like outright at this point. So the momentum is really building and then I've got about 1.1, almost $1.2 million under contract to be sold, you know, like closing most of them in January. So it's getting to the point where I'm hoping for January to be our first million dollar month. And I know February is not going to be the same but you know, hopefully it's you know, it's going to be an upward trajectory. So 3:45 Oh, hopefully we can find some synergy with you, man. It sounds like we're exactly in the same phase of our business. Awesome. Yeah, we should do between, I don't know, mid to late into February. Yeah, we should hit one and right over one and a half some like that. That's awesome. Yeah. But we're finding now that the momentum that we're in is it is a tipping point for us. Yeah. Because previously it had just been good, but not great. But now it's like it's gonna go from great to like ridiculous. Like, we're trying to contract one lot right now for six and a half million. Right. Oh, wow. 4:16 That's a bigger deal than I've ever done. Yeah, that's awesome. Yeah. So that 4:19 that we keep targeting deals like that. We sent out paperwork this week for like 3.2. So it's, I think this year is going to be our biggest year yet. But it seems like it's getting easier and easier as time goes on. Like you said, you build that momentum and it gets cumulative. It's okay, now you understand the game now you're not afraid to go fast and I think that's something that held us back for a long time is that we like we're doing okay, but I didn't want to push us into like, completely out into like treacherous waters. So we slow as necessary. And then now where we are now where like we took all the all the governors off, took the brakes off and now yeah, we're going. That's awesome. 4:53 You guys doing great. 4:55 Thanks, man. Yeah, sounds like you're destroying it, too. I was super excited to talk to you and Daniel told me what you were doing I was like, man, yeah, we gotta get this guy on the see what the heck. If you could share with us, kind of how your business model works, you said you're doing you're working a lot of states where we primarily work in Texas, we have a nice sized deal going in Florida. So we're trying to like, infiltrate Florida slowly but surely, but we love Texas, we're probably going to, you know, be the bulk of our business will be here probably forever. But what is your marketing? Like? How do you select the market? Do you have boots on the ground in each market? And then what are you doing exactly for marketing? Right now? You asked us about pay per click earlier. 5:29 Yep. Yeah, at this point, 100% of our 100% of our business is generated through direct mail. And that's, you know, offer letters. So two page letter first page is kind of explaining who we are, what we do. Second page is the actual offer. And, you know, the offers are based off of averages. And, you know, sometimes they're not accurate, either, you know, we'll send out an offer, and then the, you know, the seller will come back and say, Oh, you're too low, or, you know, or they'll accept that right away, and then it makes me think, well, we were probably too high, and then you know, we look at you know, then when it comes in, it's kind of like, sometimes it ends up being just the beginning of the discussion. But it's an interesting way to get the the phone ringing, or the emails or the texts coming in. So, so that's, that's kind of how we generate our leads right now. But what we do then is our business model is really just about short term, like really quick flips, on average, we're holding these properties for about 60 days. So our goal was to price it, you know, slightly below market value in markets that aren't where properties are selling, you know, like we, we always send mail into markets that have got good activity, if the markets really dead, or there's just a big glut of inventory in certain markets, and we stay away from it really, unless, unless I have some, some really in depth knowledge of that market in particular, and I know that if I get really quality property will sell or something like that, but for the most part, those markets I try to stay away from. But yeah, it's pretty simple, we, we really leverage local land brokers to help us with the transactions, basically, we work with them on the buy side, you know, we asked for their opinions on the value of the property before we actually closed on it, you know, during our due diligence, but you know, as the trade off, we, we let them know that we're gonna give them the listing, you know, since we closed on the property, so, you know, they might evaluate a few properties and, you know, something maybe doesn't go through or whatever, so they don't get every single one of those properties that they evaluate, but it's, I think it's well worth it in the end. The other thing is we pay them, you know, 10% Commission's always we don't, we don't try to negotiate commissions at all. And I know that that's a thing that a lot of main investors don't do. But I felt that it really, it really helps build partners, really, you know, with the agents that we're working with, they've gotten incentive to work hard for us to get these property sold, they're happy to evaluate properties for us. So it's, it's just just a better balance. And, you know, you know, what it's like in the land business, you know, like, not every property is a, you know, million dollar property. So you have, you have a lot of, you know, you know, maybe 20 to $100,000 property is that they're not going to make a huge commission, unless they get, you know, a higher, you know, commission percentage so, so, yeah, that's, that's kind of the thing, it's really pretty simple. You know, we do as far as boots on the ground, you know, we send out a photographer, and a drone photographer, drone photographer, basically to walk every single property, and we you know, the property, the areas that we really have focused on, you know, we generally get some pretty good contacts and pretty good people that will go in and inspect these properties for us, the agent will go out there, you know, after we closed on sometimes before we close on it as well. And we do a whole list of due diligence as well, whole checklist that we go through, we try to identify any potential red flags, anything that can kind of bite us in the butt. And you know, we're not perfect, sometimes we miss miss some things, but we do our best to kind of eliminate those things. And if there is a problem that comes up while we're under contract, buy something, then we'll just either walk away or have a discussion with the seller, and let them know that, you know, we can't pay this price because of this reason. So that's pretty rare. Actually, most of the time, we know we got a pretty good sense of what the property is before we even get under contract with it, but you're here and there's some things come up that we didn't anticipate. So 9:25 that's amazing. I think everybody like me that they talk about this all the time, like we're not overcomplicating, it is this it is really is this simple, 9:35 simple. Yeah. Yeah. You know, like, and I think like, like, to that point, you know, that no, not over complicating things, making it simple. I know of audible by investors that have this whole elaborate thing built up on the marketing side of things once they purchase a property. And I could easily put something like that in place but honestly that that would be so much drag on our on our operation that I really don't want to get Other I'd rather leverage local when brokers that will help us on the due diligence side but but then we'll take the property and sell it. And generally the probably sell it for a higher amount that I could sell if I was going to direct market it myself. They you know, the good ones have have a buyer list, and they've got credibility in their area and are able to kind of leverage that, you know, for a higher sale price in the end. So 10:24 yeah, a lot of a lot of people really overcomplicated and like, it's a simple thing is buy low, sell, buy low, sell high, and then having the private capital in place to that understands that could take 60 to 90 days. And that's that's the process. That's it is what it is, like, we're not, do you do any, like add ons of well, water fencing? Anything like that? Are you doing? Yeah, 10:46 sometimes, you know. So one of the big things we'll do, sometimes we'll get a perk test on, you know, especially if we've got a good soil scientists in the area, we'll we'll get that out of the way. So we'll, we'll do that sometimes. You know, we've done minor subdivisions, sometimes as well, if it's an easy one, you know, just in a lot of these areas is simply a matter of hiring a surveyor to come out and survey the property and split it up on paper, and then they record it with the county and then sell off the parcels individually for a higher amount. So we've done that as well. And sometimes clearing paths, you know, if a property is really overgrown woods, and it's a larger, you know, kind of premium property, but it's kind of inaccessible for someone to go and walk the property, we'll do that. And that helps a lot in certain situations. But just minor stuff, generally, you know, we've done at a number of couple of properties actually where they're prime for like a residential subdivision, you know, within the area that are located. So we'll hire an engineer to do what they call sketch plan, basically, draw up on paper what a potential subdivision could look like. And then we end up listing it with commercial broker with that sketch plan from the engineer, as potential of what it could be, you know, and then we can generally get a higher amount for the property rather than than just marketing and as just a big parcel that's zoned RS nine, or whatever the zoning is, you know, you're more exact, and you had an actual engineer, put it out and like say, Okay, we think we can get 100 robots out of this property. Obviously, someone has to go through all the paperwork, do all that, that side of things, but just having that, that there really increases the value of certain properties, I believe. 12:29 Man, I love it. Man, I love the business model, I have a ton of questions, a lot of overlap to you with what you're doing. And then what we will do, like subdivide little to no development at all. But yeah, clearing brush, that kind of stuff. I really enjoy them. I enjoy seeing the before and afters. I have a construction background, so but I don't know that I would necessarily want to, you know, bring in utilities and all that stuff. I think it just takes the investment. It's like we're just turning dirt. We're just turning paper. Really, I know 12:55 that it's the time that bugs me. You know, it's like some of these things take forever, and you're getting bids and you know, like, you know, I don't know. 13:02 Yeah. And buyer to do that. I talked to a friend of mine today who's got like, 50 some acres west of Austin, and they're looking at bringing in electricity and water. Well, I'm like, Man, I would already sold that stuff by telling you guys done with the planning phase. 13:17 Yeah, yeah, yeah. Now I got one property I'm dealing with now that I actually did a minor subdivision on. And it's, um, it's one of the situations where I've got to put in this long like gravel road on the one side of the property and it's long, like, it's 2500 feet, something like that. So it's, it's like a half mile gravel road that I get put in. So I underestimated, you know, I got I got an initial bid and the person kind of, like, low balled, and it's like, okay, it's gonna be you know, 40,000 but probably going to end up being like, 75,000 you know, I mean, till I get the real bids in and everything and that kind of messes up my profit. I'm still making a lot on but it's just a lot. You know, dealing with that is sometimes just not fun. You know, I just hate hate, you know, spending that kind of money, but, you know, you do what you gotta do. 14:04 That's talking to Daniel the other day, and we're talking about the deal. We're working in Florida, actually. And I was mentioning some things to him. And I was like, Nah, man, let's you know, we should probably skip that. Let's not do that. You know, the deals getting kind of skinny. He's like, Dude, it's 75,000 profit. I'm like, oh, yeah, but still it skinny. Yeah, yeah, that's a bad deal. I know. Hilarious. 14:27 So one thing I like about land in general is that you can grease we talked about this, we can talk about Congress all the time is that you can grease the wheels sometimes like sometimes you come on underbid. But if you're looking at if you have a big amount of spread in there, it kind of like okay, let's spend the extra 1020 grand I mean, it is what it is that you can do now, but if you're taking if you take control of that, and make it more profitable just by bringing that road or putting in that fence or clearing that brush entrance to get to the property, that might be all you need to do. There's like nothing else you need to do at that after that point. Eventually 15:01 Yeah, yeah, definitely, you know, I tell the story sometimes too, or I actually learned kind of that concept. I actually used to own a used car lot when my wife and I first got married, I put myself through college, selling new cars, and I kind of learned the car business. And then we started buying kind of some cars on the side and selling them. And then one thing led to another where we decided to open up a new and used car lot, but first thing we would do, and we get a car, this is early 2000s, you know, like we would, we would obviously get a detailed, we had someone that detailed all of our cars that came in and then you know, we'd go to Walmart and buy new formats and do the wheel covers, and you know, just like the little minor stuff, but it made all the difference, you know, allowed us to sell the cars for quite a bit more just by doing some little stuff like that, you know? 15:50 That it? Yeah. People that info packs past No. Yeah. You know, I bought a commercial property just outside San Antonio. And yeah, I was I was turning some diesel trucks and smart 16:07 buying and selling, you know, it's the same thing. But 16:09 yeah, I love it. It's just the hits aren't big enough. Yeah, I know. He asked you about that little subdivide he did. So you brought in this gravel road, because I had a property as we subdivided here in San Antonio, and I was looking at bringing in the gravel road, and it was gonna be like, yeah, like 3000 feet. So did you bring in, like a private road? So you can cut off of that? Or what was the purpose of the gravel road? Yeah, 16:31 it's, um, it's the property is like long and narrow. So the way I had to subdivide it was, you know, I had to, like, have one with basically all the front edge. And then the other ones kind of, had had no, like, major road frontage. So then I had to cut this road, long to one side, so they could each access those parcels. But, 16:51 yes, we turned those down, right? Yeah, we usually look for the ones of course, that have the most road touching the property. But yeah, I've always I've never run a private road to cut off of that yet. So curious of what that process looked like. Or yeah, 17:04 I mean, pretty easy. I mean, the surveyor you know, mapped it all out and staked it all out and everything like that, and actually haven't had the road put in yet. But I'm in the process of like, doing the bids on it and stuff actually have, I'm actually under contract to sell a lot of the lots off. I think four out of the five lots, we've got under contract to resell at this point. So and they're, you know, expecting this work to be done. So it's crunch time, I need to actually, I need to actually get it done. But you know, these contractors are kind of messing around with me on the bids. And, you know, they'll tell me one thing, and then they'll go out there again, and then they'll say, oh, you know, I didn't anticipate this. And then, you know, so the bids higher. So anyhow, are you doing? What's that? 17:46 Are you doing a shared easement? Yeah, 17:49 it's like, I had to do a road maintenance agreement that my attorney drew up. So it's got an easement. Yeah, that is shared is a 50 foot easement that runs a hole, basically, side of the property. And then, you know, putting in the gravel road, the county requires a gravel road if they're gonna build on it. But so, 18:07 one thing you mentioned that that was pretty funny is that for the five lots, everybody sold the audience at title, we do the same thing. Yeah. really hilarious. Because, like, we mean, like, really, we need to be more abrasive towards houses. The reason why is because they're doing all the hard things. Like don't do nothing, but don't do nothing that hard. Like, yeah, 30 days to sell the house like this. We have like 90 days or 120 days, and then we find the buyers and then they bring cash to the closing table. And that's how we do this. Yeah, makes it sound like too simple. But 18:41 ya know? Yeah, it's a good it's a great business and you know, obviously you got to put in your the effort to really understand land and understand what's a good what's a bad lot what's what sells what doesn't what the good area, what's the better, you know, like, you got to you got to kind of understand all this, but it's not rocket science. I mean, you know, it's not it's, it's a, it's simple buying and selling. So you buy it for the right price, so you can then resell it for the right price. And as long as you're buying properties that it can be considered good properties. If you price it slightly below market value, you're gonna sell it right away. So 19:18 what's your opinion on a floodplain? You do a lot on the floodplain lots are 19:23 not a lot, but I do here and there, you know, like sometimes in the FEMA flood zone, you know, it's just a matter of kind of the area and what's typical for an area like some some areas that are like all in the floodplain, that's just what they are. But, you know, some areas, some areas are, you know, it's kind of rare to have had those floodplain properties and if I do buy one, that's FEMA flood zone, typically it ends up being like it's like a recreational property rather than maybe a potential home site. So as long as I'm buying it as recreational property and reselling, you know, price it accordingly. I'm not really scared off by that. Wetlands scare me a little bit more like property's got like a ton of wetlands on it, you know, typically walk away from those unless they're super cheap. You know? 20:06 Can you clarify what the difference between a flood lands and a wetland is kind of wetlands popping up a lot in Florida? And then we don't see that at all? 20:12 So what? Oh, yeah, yes, certain areas, especially in the southeast, you're gonna have that a lot like wetlands. It's basically like a swamp. So, yeah, in the Louisiana, something like that, you probably find them out as well. It's standing water most of most of the year, you know, there may be certain times of the year where it'll kind of dry up, but mostly they're standing water. So it's an it's not quite a pond or a lake. It's just like, you know, it could be six inches of water or something like that. I mean, you really can't do much with that. It's, you know, and, you know, environmentally, it's not like, you can take a bulldozer and just, you know, taking a bunch of putting a bunch of dirt because a lot of the wetlands are like federally protected and everything like that. So he just can't know much you can really do with him disturb him at least so 21:01 you have like floods. Oh, man, we go after flood zone. Yeah, good price on it. We got a property just actually today. We just submitted the contract to title. It was 331 acres for like, 337 We haven't even looked at the flood zone. Nothing yet. It's all flood zone. That's fine, too. For that price. 21:19 Yeah, that person again, can't really lose. Let it roll. It's probably 21:23 I don't know, two, two and a half hours from Dallas, but I think it's gonna be a slam dunk. Man. That should be it should be multiple six figures. 21:30 Yeah, Texas is one market. I haven't gotten into at all. I don't know why. Just just seems like there's a lot of investors already working there. And you know, and I'm sure it's such a big state that, you know, I'm sure there's different areas that, you know, yeah, no, I'll stay away. I'll say, 21:44 I was gonna say, hop on in and do some deals with that. 21:48 Yeah, that'd be fun. That'd be fun. 21:51 It's on the Brazos River. And it's like, almost 1400 acres, then. Wow, yeah, we're looking at maybe doing some 100 acre ranches out there. It's like two and a half hours from Fort Worth something like that. So it's just like, the state is so damn big, like the whole world can invest here and still not be saturated? Yeah, yeah, that's the thing. 22:09 You know, like, there's just so much land out there. You know, if you like, get in a plane, and you fly from Florida to California, and you're just looking out your window the whole time. It's just endless, I mean, endless land that you're flying over. And most of it seems like it's completely there's nothing on it, you know, so I know all these big cities and are not that way. But once you get out of a lot of these areas, it's just so much open space. So man, so 22:35 a guy Bailey, actually, Daniel sent me a link to a rant. It's like 400,000 acres. That's, that's a big property, north of Big Bend, and it just looks like a little blip. The further you zoom out, like it becomes like this little.so That gives you an idea of the size of Texas like, man, there's just so much crazy, just here alone. It's just Yeah, it's out of this world. And I think that's what I love about the land business is that if you're in commercial, if you're in apartments are no matter what, there's a very finite number of those properties, right? Even like self storage, and all this stuff that people get excited about. We're not even looking at it not even, we're not thinking about it nothing then. And I think what you said earlier, it's very, very true. Is that like it does, it's not like you can just walk into the land game. And now you're like an instant expert. But the longer you stick with it, and you learn to identify what's a good deal and a bad deal. I think it makes the playing field a lot easier, man. It's like maybe like learning chess. So we'll see a track and immediately as soon as I get the text message, somebody's like, can you look at this, and I looked at it for like eight seconds. And I'm like, nope, close it out. Sends me one and my heart starts beating fast. I'm like, yep, contract on this. Yeah. Tell me more. It's hard to identify it within seconds. I think that's when it gets really really fun. 23:47 Yeah, yeah. You know, and, and, like, I've been teaching my daughters how to do it. They've even done some deals themselves, doing kind of smaller deals. Yeah, they, they pulled together between them. My daughters are 20 and 22. So they're kind of grown, but they're still my kids, but you know, but they, they started each with $4,000 4004 1000. So they pulled together 8000. And now they're up to about 85,000. So and they just kept that money rolling. That was a total of six deals into smaller deals, but they, you know, for them, that's, that's really good, you know, return for them. So they're just keeping that money. reinvesting and timeline look like about a year and a half. But they took they bought one and like more, May of 2021. And then they didn't bind and then they sold that in a couple of months. But then they didn't buy another one until March of this past year. So they didn't most of them in this year, actually. So 24:43 a 10x return in the year and a half any day of the week. 24:46 Yeah, it's pretty crazy. When you think about people wouldn't be able to never believe it, you know, it's not like they're, you know, toiling over, you know, doing hard work in order to achieve that. It's just kind of like, you know, responding to emails and, you know, just kind of managing the process. 25:00 But that flipping paper man like, there's no way this 12 documents is worth 300 grand. Yeah, I know. People that aren't in the business man, I'm like scratching my head. You know, I love it. I had quite a few people now, you know, and for years of flipping land, that people telling me like, Hey, you should keep it quiet, you shouldn't really be telling everybody about the land business. And I'm like, man, for the, for the most part, most people aren't gonna take action anyway. Yeah, that's the thing. I really do love to see people get into this business and start to grow. It's like, thank you. It's like, this is the promised land and being in the land business. 25:30 Yeah, yeah, for sure. You know, and I had, I had a completely different perception of what land investing was, even before I got into it, you know, I assumed it was kind of people buying larger properties and just kind of holding them forever and waiting for the big city to kind of become a lot more valuable, you know, but that's completely different than what we do. So 25:52 that's what I was thinking. I thought like some old guy that just owns like, 1000 acres surrounding cities, and he just holds it for 30 years and like, not even hold our stuff for 30 days. Crazy, right? We're gonna contract to title a purchase agreement that we got, like, I don't know six days ago. And we turned in the purchase agreement with the with the sell agreement on the same day. We haven't sold before the ink dried on the purchase contract. Oh, that's great. Only in the land business, right? Yeah. Seriously. Oh, no. trashing out the house. No cleaning? No, no, nothing. No tenants, no toilets. I love it. Dude. 26:28 You might have some tenants on the properties. But that's that's pretty rare. 26:32 To keep them in every time we come across tenants on the land. We try to keep them there. Yeah, yeah. Because they already they know the land. There's like the groundskeepers, now they protect it and take care of it. They know everything. Yeah. So we try to leave personnel in place when we find land with people on it. 26:46 Yeah. Even if they're non paying tenants. 26:49 So that dealership I bought, the gentleman was living there. And so the seller introduced me to him, she was like, Hey, he's taking over the place. So whatever he says, You got to do it. And he's like, Hey, I'm gonna give you the move out. I'm like, You're not going anywhere, man. 27:02 So the property manager 27:05 crashed it out until now, like, whenever we come across something else, like other properties, where we got to put up signs, take trees down, cut the grass, we'd eat whatever, I'll just call them up and say, Hey, man, I got this address. Here's what we need to do. And he will take the blower over there and take the trailer load up trash, whatever we have to do. Yeah, he's like a part time. That's cool. That's good. That's a rent dude. 27:24 Yeah, that's, that's good. That's, that's that's a good relationship. Right there. Yeah. 27:29 Yeah. He's super handy to have around. And my parents do that. Like, you should make him pay some kind of room. But man, that guy does so much we see like, saves me so many hours per year, like, anywhere. Yeah, yeah. 27:39 Yeah, that's cool. Really cool. Yeah, we had one property that we were buying. And we're going to kind of go into the due diligence process and sent the photographer out there, photos come back, and it's like, Walter White, you know, like, RV kind of, on the property. And then there was this whole encampment of people in the middle of the property. And then I'm looking at the pictures of the stream on there. And I'm like, does that stream look kind of green, like, like, yellowish green, I'm like, and then pictures of the neighbor's property, and they've got all these 55 gallon drums of who knows what, and I'm like, I'm not buying this. I had to back out I was like, I just, I'm not gonna get into a, you know, a toxic waste situation. So I gotta draw the line somewhere. 28:25 Yeah, I've actually I've done pretty good on buying some junkyards. Man, there's one right now. Yeah, like, which just loaded up with just trash just mountains and mountains of crap, dude. And yeah, we've had beautiful luck on those. I think we're 200k up on junkyards. Wow. So we're looking now at another one. But this one was actually a recycling facility. And it does have some super environmental concerns. So we've been staring at it for maybe a year and a half, two years. But I think I still want to pull the trigger on it. And there's a there's actually a guy living there in an RV. He has a generator, he has laundry lines up and everything. So I've yet to talk to the guy. But yeah, I was like, it might not be bad, it just leave him in place. While we put things together on this. 29:03 Yeah, I bought that one in that in a Wyoming LLC with no paper trail. 29:11 So we're in communication with a couple of different government agencies that they were trying to figure out like, what's the liability? If we take the property on? Like, can we have indefinite amount of time to clean it up? Or are we going to be racing against the time to start getting fines and stuff? So I think once we have a little bit more clarity on that, they're going to pull the trigger on it. It's a it's an a great industrial area, central San Antonio, it's like, there's a lot of upside on that deal. So I'm willing to toy with it for the next 10 years, just so we can deal with it in the background. And yeah, that's 29:38 interesting. That's an idea. 29:42 Deals, man. We look at weird deals when people would have walked away from stuff we pick them up. Yeah. 29:47 So you just disclose, we've done just disclose what happened and people still buy it. 29:53 Yeah, yeah. As long as you're, you know, like upfront about what the deal is and yep. And most of the time, you know, like on property Is that we buy, you know, like, has an old junk mobile home on it or trash or tires or something like that, you know, I don't I don't clean up a lot of that stuff sometimes because I think the buyers sometimes have this perception that they're getting a deal because they're gonna be dealing with that stuff themselves. And we sell them like, hey, you know, this is a price for you taking it as is, you know, if we cleaned it up and everything, we'd mark it up quite a bit more. You know, people go for it generally. So. 30:26 Yeah, you're right. You're right. It just kind of 10 grand if you deal with the tires in the trash. Yeah, man. Give me a deal. I'll get this right. Next week. And we'll close. 30:42 Yeah, we have one. You have a tire situation right now. tire situation. This is a situation, dude. There's there has to be at least 10,000 tires on this problem, man. Yeah, it's massive man. And you could see it from satellite. I mean, this 31:01 is where you can see it from satellite to that's 31:03 getting close on cleanup. And like recyclers, and people that are burning down and all that, but the spread on here is like 625 or something. Even if we spend 100, grand, you know, getting rid of these tires or 150. Like, it's still gonna be okay. I think what's Yeah, 31:19 yeah. So Well, anyone like, does anyone looking for these tires for recycling purposes? Or do you have to pay to get to remove them, it'll all 31:29 spin. And yeah, so I got a recycling plant that will take all the material, right at no cost, but they want to grind it up. So then I have another guy that will come in from like another state, and he'll charge you 22 grand and grind it up, but he's not going to haul it. Alright, so I'm gonna gotta think about Yeah, I'm gonna have to make this big tire mountain and then get some trucks out there. So ideally, right, what we do is we sell the junk yards with the junk on them, right, we don't clean them up for the most part. But in this case, right here, like I might, you know, talk to potential buyers, and see if somebody is willing to take on that task and maybe split it, like I said, so if I look at it, and it's gonna cost me 60 grand, I might tell somebody, Hey, I'll give you a $50,000 discount, if you want to handle it yourself, something like that. So yeah, we're still trying to play with it. But either way, like I said, there's plenty of opportunity there, just and I kind of wanted to take it on. So I can know what the challenges would be next time I come across that, because we did find that we were able to get $100,000 discount, you know, for having that pile there. And then we did our numbers were like, well shoot just a ton of spread here. So even if we did spend 100, or 150, it's still a deal. But it scared off enough of the buyers that nobody wanted to pick it up. And it was on MLS dude, really, I think just super low hanging fruit out open. But nobody wanted to take on that. And it made me I'm a contractor. Bring me that pile of tires. 32:44 business in general is just about solving problems. So like you're able to, like you're willing to get in there and figure out how to how to get the thing solved. And, you know, the seller wants to get rid of it. They're tired of looking at that mound of 10,000 tires. And, you know, they're like, I can't sell it with all these tires, you know, so you're solving a problem and you know, should get paid for it too. 33:02 So, exactly. Man, I think that's what we do in this business is that we just problem solve, like, you gotta sometimes we really got to think outside the box. So we've contracted stuff before we were stuff that we've worked on, where I didn't see the strategy immediately, right. And I was actually at the dealership with my dad and my sister and I was in the office. And this deal had kind of been burning in the background for like, maybe 60 days or something. And I just didn't couldn't see a strategy on it. And then the light bulb came on. I'm like, wait a minute, there's at least 100,000 on this deal. I think we did 155 on that one. But I couldn't see the solution. Like it took me like a month for a month and a half for it to dawn on me. Right. So yeah, I think being like high level problem solvers in the land business is probably going to prove to be like the best decision I've ever made in my life. 33:44 Yeah, really well, sounds like you're creative, and you're willing to dig in there and get them done. You know, like, sometimes I'm probably guilty of, you know, dismissing some of those potential deals sometimes because I don't want to put in the effort to to deal with that problem. But those are probably some of the ones that I should be digging into more, you know, like, they probably have a lot of upside if I'm willing to put in the effort or have someone on my team to put in the effort to figure it out, you know? 34:09 Yeah, well, it's easy to get spoiled in the land business. Yes. 34:13 Yeah, just take the real easy one. Yeah, 34:18 that's guilty. Guilty. Guilty. Yeah, we see stuff and I'm like, Dude, do we want to mess with all this? So I had a deal here that I contracted earlier this year, I think was in February. It was 1000 acres and we're getting it for two grand an acre. So if we had did like 100 acres split, and sold them off. I mean, it was like an $8 million spread. But it was an undivided interest between a to a daughter and her dad warring with each other so I'm like by time we go through the process get it also go to court do it two years later to make 8 million like who's gonna just skip that whole deal? Yeah, yeah. Somebody else by would have dreamed to take a deal like that on and I'm like, I don't want that much. I don't want a two year headache. I'm just gonna move on to something easier. 34:55 Yeah, seriously. You guys ever do like by any Just properties with seller finance or partnering with the property owner and maybe split it and then like split profits with them and those type of things. 35:07 We're always looking for creative strategies, man, like very rarely do we come in, we just write a check. Yeah. And that's really, yeah, that's, that's a screaming deal. It but we try to lead with creative, we try to find sellers that are willing to work with us. And then the targets we go after are a million and up. So those sellers don't know how to sell those properties. Anyway, the brokers don't know how to sell them. Ranch sellers don't know how to sell them nobody. So it's in their best interest, like especially like if it's an expired listing or something like that. easy for us to come in and say, hey, I can sell this thing. Want some help? Yeah, yeah. Any work out some kind of creative partnership solution with them? 35:42 Yeah, see, that's, you know, that's kind of one of the roads, I want to start going down. I mean, at this point, I've just been kept keeping it really simple. Buy cash, you know, and then and then resell quickly. But I think there's a lot of deals where maybe we're too far apart on price or something like that, where we can, you know, add some value to the property and kind of make it a win win, you know, for the seller and the buyer. And everyone makes money that way. So, but I like it, you know, I think I'm gonna start exploring this type of thing. So sounds like there's money to be made no, 36:13 do that. Some of them are just too good to be true. I'm telling you like when we're saying, like, we've been speaking at events for the last maybe year and a half. And when we're on stage, like he these guys have to be lying. I have to be lying. That just sounds too good to be true. But it's funny, because I've been saying this quote now is like, the longer I'm in the land business, the luckier I get. Yeah, we're just coming across as better and better opportunities that just don't make sense, man. And I'm like, nobody's looking at this was like, I'm in like, in a movie. Like, we're, you know, I'm being pumped. Yeah. 36:43 Yeah, yeah, really? That's cool. 36:47 It's been a fun ride, man. Something I wanted to ask you about if we can just kind of hit the rewind button. We've never done mailing before. So can you talk a little bit about how you would even select the market, like in another state? And then how does the mailing process work? Is it just like a house where you just fire them all the data? And then they just start sending dripping out the mail at a certain rate? 37:04 Or? Yeah, the way I do it? Well, first of all, as far as picking the market goes, I'll kind of just look at Zillow, you know, transactions on Zillow, and I'll look for the balance, you know, sale, say I'm interested in properties that are 10 acres or more, and I'll look over the past year, how many properties in that county were 10 acres or more sold, and then I'll look to see how many are on the market. So if it's at least balanced, you know, say 50 properties sold within that range over the past 12 months, and then there's 50 listings, it's a pretty, pretty balanced market, you know, that's, like a year's worth of inventory, I guess, if you were to try to just ballpark it, but so I've looked for at least that now, if there's, if it's the other way, like if there's 100 listings, but only 50 properties within that range sell year, then that's two years worth of inventory, it's pretty slow market, it's gonna be gonna be tough to do something, if there's, if it's the other way, like there's only 10 listings, but 50 properties have sold within that range over the past year that I know, it's pretty hot market and good properties will sell. So those are the kinds of things I just look for generally, you know, I'm really doing a lot of these states, I'm doing kind of like huge areas, you know, and what I do is we use data tree, I don't know if you've ever worked with them first American company. So basically use them to pull the list. And we'll search by, you know, vacant land 10 acres or more, we'll kind of, you know, I know other investors when we send to absentee owners and things like that, but we'll just kind of send them to everybody within that range. But we'll filter out, you know, sellers that we know are going to sell, like the railroad or utilities or a school or university, you know, any of these types of things that we know these sellers are not gonna sell, we'll take them out of the list. And then we'll prepare a big spreadsheet, we'll come up with an offer price. Generally, I'll figure it out per acre. So if I know in this county that on average, retail price may be 5000 acres, something like that. So then I'll just back off percentage, we might offer 35% of that, you know, for our offer price. And then we put that in a spreadsheet and it just kind of the and then we do this, we send it to the mailing company, and they do a mail merge. And then that generates all the offers, you know, like parcel number, the acreage, the offer price, all that kind of stuff is figured out. And then we're sending out individual offers to all these people. And sending out right now we're sending out 50,000 letters a month, so 25,000 letters each, every two weeks. Yeah, so a lot, a lot of mail we're sending so it's about 50 cents provider to so 39:41 that's a pretty good capital expenditure per month, but getting the returns you're getting are like out of this world from an investment. 39:49 Yeah, like as far as the cost per deal. You know, it's about 3030 $200 for every deal that we get. And we've been averaging, you know, so far, you know, historically we've averaged $22,000 profit per deal, you know, some, some really good ones, and then some other ones that have not been so good in there. But we haven't lost money on any deal yet. But on average, we're $22,000 per deal. So I want to gradually increase that. Or maybe not even so gradually, but I want to increase that exponentially, you know, the, by doing bigger deals, and, you know, bigger properties. So that's kind of the thing, we use a company called Rocket print. They're the ones that do our mailings for us. But it's pretty easy. I just send her a spreadsheet, they've got her letter on file, I send them a you know, we prepare a spreadsheet every two weeks, and I have an assistant couple of assistants kind of helped me putting everything together with that. And you know, I set the pricing for each county, but then they build the spreadsheets off of that, I just send the spreadsheet to the mailing house, and they take care of all the merging and everything like that and send them all out. So I don't have to put on any stamps or licking envelopes. Right? 40:55 That's beautiful, man. That's what I was gonna ask you like, just based on what you told me how you run your company, I can already just see like, everything. 90% of the information in my brain was like, This guy's a genius. 41:05 Why didn't come up with it. So I'm not as smart as you're giving me credit for but I did adapt it. I did adapted my own went away. So 41:13 who did you mentor under? Was it like gulberg? Or one of these guys, one of the big 41:17 course I bought was my indie Academy. Okay, 41:20 yeah, try to look to look too deeply into it, but very familiar. They 41:27 kind of gave me the basic model. And then I took it and adapted it a little bit to what I do. So they taught me how to evaluate parcels evaluate land in that way. So it was it was good for that, you know, it's kind of kind of basic, really, they've got a community associated with that with that and stuff, too. But it got me everything I needed to go to get to get going and start going off to the races. So, you know, 41:53 I love how much humility you carry yourself with. Yeah, we get 3000 per day, and we get back 22,000. Like, if you talk to like any stock investor, any any investment, anybody that's familiar with investing, like if you put in three and get back 22, like, holy crap, I mean, that's, that, and then the land business, we just like glaze right over it. Like, it's yeah, it's 42:13 going now, you know, like Facebook ads. You know, in our other business we had, we were spending a lot of money on Facebook ads, and kind of historically, for every dollar you put in, you get like two to $3 back. So, you know, double your money, you know, return on adspend and double your, you know, your your investment on the ad so, and that was considered, you know, decent at least, but this is so much better. You know, and basically over six times, you know, what we spend on our outreach efforts, we get back in and profit, you know, so do that's 42:45 a dream come true, man. I mean, yeah, I don't think 99.9% of businesses can say that. Yeah, 42:51 and I know that, you know, as far as outreach efforts, a lot of people are doing texting, which I'm going to be looking into, and I know that their cost per deal is probably a lot less than 3000. You know, they're probably under $1,000 per deal. And pay per click, you know, I've heard some good things about pay per click as well, but I haven't really ventured into those areas yet, but I'm gonna, I'm gonna do this. And I guess so. How are you guys generating all your deals? 43:17 Well, if you want to learn about texting, that's what we do. Oh, it is. Yeah. We do texting NPPC. We do both. Texts are our main thing. That's our that's our software. Okay, well, we should talk. What is a quote that is yours or somebody else's that you resonate with? 43:41 I guess the I don't know if that's the the actual wording or if I'm getting the act, actual wording, right. But it's something like this, but Wayne Gretzky skate to where the puck puck is going not to where it's been. So, you know, I always I always like, keep that in mind. It's like, you don't really, you know, like, your situation. Now. It's kind of just a snapshot. But really, there's so many variables in the world and business and everything going on, you want to like head towards where things are going, not where they're at right now. So I always think about that one. 44:10 And where can people find you online turning profit.com And you come up with a podcast? What's your, what's your schedule, looking like on that? And then you're listening that January 6, correct? 44:20 Yeah, yeah. January 4, I believe. Yeah. So yeah. So we're gonna, we've got a whole batch of episodes that we've recorded, and we're gonna start watching. I'm not sure if it's three or five in the first week, and then once a week after that. So we've got a couple of really good guests that we've had on already. Pace Morbi Jamil, Dom G. There. Yeah. So and then we've got some other ones in the works I can't talk about yet but and then my wife is the co host with us. So she's, you know, part of this business as well. And so we we do some solo episodes, some about land flipping. We actually just filmed the episode with our daughters, you know, kind of talking about how their lives Think about the main business and how they're, they're kind of building their own business and, you know, follow their journey as well. So, and then, and then we do the monthly income reports on our site. And that's, you know, turning profit.com, where we break down every single one of our deals that we've done. Each month, the revenue, we've taken, every deal, we've done the profit, how many days we've held it for things we've learned about the property, what went well, what didn't go well. And another thing that I filmed on there that that I'm giving away is I filmed a video and it did a whole presentation on our 51st deals in the land business. So it breaks down every single one of those deals and numbers on every single one of them. So just kind of stuff I wished was out there when I got started in land than the land business because you don't really know what's possible until you see actual details of what people are doing. So there was very few details on that even in the paid training program stuff. There's very few details of what people are doing. People were very hush hush about it, and I don't I don't know why. But so I tried to break through that barrier. 46:04 So that's cool. Man. I would like to take a look at that if you have a website for Daniel's been harping on me like we gotta get our numbers up and get our heads up. And I'm like, I know I now get. 46:12 Yeah, yeah. So yeah, so if anyone was checking out there, I know. Great. 46:19 So it's a turning profit.com 46:20 We have your profit. TOCOM Yep. 46:23 That's super cool, man. That's amazing. And if you ever want to go after bigger deals, right, like we're trying to, if you wouldn't start working Texas, man, I'll give you the parameters. And if you want to start firing some stuff off here, we got buyers, we got capital we got we got private, a lot of guys want to offer us cash. You know, sometimes we have more cash than the deals on hand. So let's make some happen. 46:42 That sounds great. Let's do it. So 46:45 awesome, man, we appreciate you coming on here. 46:47 Well, thanks for having me guys. Really appreciate it. 46:49 Yeah, thanks for coming on the show. Man. We really appreciate you. If you liked or enjoyed this episode, please go like subscribe and share with your friends and family. We'll see you on the next episode. Thank you Peter. And Alright. Thanks, guys. Bye