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Jan. 12, 2023

Ep 326: Real Estate Land Is Not Complicated- Buy Low And Sell High With Pete Reese

Ep 326: Real Estate Land Is Not Complicated- Buy Low And Sell High With Pete Reese

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Transcript

0:01 Hey, welcome to today's episode. I'm your host, Daniel Martinez. I'm a little bit under the weather, but that is okay. I have a special guest today. And this episode is called deal breakdown. We talk about cool, interesting stories. I also have a special guest, Mr. Pete Reese. I kind of gave his website away already too early. But we're talking about that. And definitely go check the other episode. Mr. Pete Reese, what is your cooler interesting story about real estate man, 0:25 I know. I've got it, I've got a bunch of interesting stories, I guess I'll tell one related to my land flipping business, which is what we're doing 100% Full into right now. And this story starts with the A, this is the, to this date, this is the largest property that we've done, it's actually a 656 acre property. And we bought this property for 315,000. So we you know, as we know, we buy properties off market. And then we do some minor things to them sometimes, and then we put it back on the market and resell them. So we bought this property for 315,000. And this was one of the only properties I actually did with a partner, money partner. So in this in the land flipping business, there are things called Money partners. So basically, it's a situation where I brought the deal. So I found the deal, I got it under contract and everything the money partner came in, and actually, they sent the money to the attorney to title to get the transaction closed. And then we had an agreement ahead of time, but and then after we resold the property, we split the profit. So in this deal, I didn't have any money in it out of my own pocket, I did have some money that was, you know, responsible for getting the deal, you know, I send out a lot of direct mail. So I do have costs associated with that. But so it's 315,000, we ended up selling the property for 595,000. And then, after all was said and done, we made 100, some $1,000 each, and kind of an infinite return on our investment. So that was a that was a really cool property in that the partner, you know, they they got a really good return for a very short hold time. I think it was about five months total hold time, which is longer than we'd like to do normally for our land flips. But since it's such a large property, I anticipated it taking a little bit longer. But But yeah, from our perspective, it was great because we didn't put any money towards the deal. And we still made 100 some $1,000. After it's all said and done. So 2:37 good deal. Infinite returns are nice. And then yeah, they really are, especially with large let logic attracts. It sounds like you 3200 acres, 200 acres, right, under 56 acres. Yeah. And if it's six acres, you're probably a little bit away from the population a little bit sounds like Yeah, yeah, it's kind of 2:54 in very rural area, but a little property anyway. I mean, it was in the southeast, and pine trees throughout the property, nice, big trails throughout the property. I mean, really, really an interesting, nice property. It's just, you know, there's not limited development potential. There's no big subdivisions going in there anything like that, but they're paved roads or utilities, all the stuff that just kind of rural, I guess you could say, 3:17 yeah, definitely rural. Nah, man, I liked land gain, because there's, there's there's opportunity everywhere, and like 200 acres, like, it might sound like a big deal. But the rural areas, there's, there's 1000s of them. And there's always opportunity out there, even if it's a small price point four acre, we're like we're looking at a bigger deal right now. And the profit spread was like $500 per acre, but we're looking at 5000 asked, quickly, turns a really big number really quick. Yeah. Spread. So it's kind of interesting, looking at looking at the price per acre difference and the potential of just like putting in the work. And that's the benefit of private capital. So you can listen to the MLS. Yeah, 4:01 yeah. Yeah. And it's interesting, because, you know, with with the land, it's not like I can go out and find hard money lenders, there's no hard money lenders available, but there are money partners available, that are willing to split deals with you, if it's a deal, you know, it has to be a deal has to be, you know, it has to be solid comps, and it has to it has to make sense for everyone involved. But if there's a deal, there's money partners available. And then, you know, obviously it'd be it would have been best if I got all those profits myself, but then I would have had to actually invest 315,000 and probably not done other deals I would have done and so it was the right move at the time for sure. 4:39 We talked about the whole time. It's like, Yeah, we could put our money into it, but it's just so much easier and they take a lot of the pain away with a split in the deal in your nobody had to use. It's all about finding good deals after that point. Yeah. Partners. Yeah. Let it roll. Let it roll, you know. 4:57 Yeah. And if you get time I got another little story. worried that he's kind of got my, at the beginning of my real estate investment career. That's kind of an interesting one not related to land. But so this one, yeah, this one, we actually, this was the first property my wife and I ever bought with the intention of, hey, we're going to flip this property, this was in probably 2002 1005, something like that. So it was when the market is in Southern California, the market really pretty hot going up, and it was still gonna go up a little bit after that. But there was at the time, there was a lot of 8020 loans, they called it. So they were 80% first 20%. Second, and it happened concurrently. So you could actually buy a property and a pretty large property, this property was 799, something like that. With no money out of pocket, I think even we got this, we wrote into the contract for the seller to pay some of the closing costs. So we bought this property. And then we ended up as soon as we closed on it, we got our broker that we use to help us buy the property, he got contacted by a relative of one of the neighbors have never done that St. They offered to buy it from us. And we long story short, they ended up paying us we got 74 we netted $75,000 on the deal. We didn't put any money down. And we didn't even make our first month's payment because it closed before that was even do so just just a crazy time. You know, those loans are not available now. But, but it kind of got us hooked in real estate investing. That's for sure. So we were like, can it be this easy? And no, it's not. But you know, but it was nice to have that window to start things off and build some confidence and things. 6:51 The neighbors are so underrated sometimes, yes, by the properties, like is it like, there was like extension of my property, I'll take that. And like sometimes they're even looking like even wanting to buy a property for 1015 years, which means for somebody to contact us. So if your property is always lived in neighbors, somebody might want it. And it's easiest way to find a buyer sometimes. In most cases, you know, yeah, 7:12 I love it. When we get like, we put a property on the market and we get one of the neighbors that wants to buy it because I know that that's like a solid deal. Like they're not going to just they're not just screwing around. They want the property. You know, they've been eyeing this all the time, and they want to buy it. So find a way to buy it. 7:29 Yeah, it's definitely cool. Definitely Cool. Well, where can people find you online? Through attorney profit.com? And tell them what you do? And definitely go check out his other episode. 7:44 Yeah, yeah, turning profit.com. That's everywhere. That site is kind of our home base for our own podcasts that we're launching. But it's also we do monthly income reports on the site. So it's a it's my, my contribution to being as transparent as possible in the land flipping business. So each month I write up a report film a video for it, but I break down the revenue we did that month, the profit that we did that month, the all the deals that we did you know, each deal I take it like what do we bought it for? What do we sell it for? How much profit do we make on that deal? How many days do we hold it for some things about the property, some things we might have learned some things that went well, or maybe it didn't go well. But I break down each one of those things, and just kind of just show what's possible within the land business. And you know that that type of stuff really wasn't out there. At least it wasn't free out there when I started flipping land, so I figured it would kind of be interesting to people. And that's why I'm doing it. 8:44 Yeah, well, it's funny you say that, because we're doing this, we're starting the same thing I told. Like we're gonna have to, we have to break down every deal report, even if it's vaguely breaking down, because like, you can get really in the weeds and some of these deals want to show like, profit margin purchase price money borrows like that. Because, like live shows the ability to because like people that do houses like oh, I made six figures on a deal. I'm like, man, if you do land, if you target those properties, you can do that. Almost every deal. Yeah, it's it's crazy as it sounds, but it's possible. So we definitely documentation. And it's not even about the size a lot too, because we're doing a deal right now. That's nine acres, we should do run six figures on it. So it's not even like 100 acres or more fatigue or more. You can do it on small deals, too. Yeah, 9:30 definitely. Yeah. Some of the smaller amounts are the most valuable, I guess. 9:34 It depends where it's at. And that's all Yes. Location, location, location, location. Well, we appreciate you coming on man. Definitely go check out your your your podcasts already started. 9:43 It's launching by the time this will go live. I'm sure it will be launched the January 4, so 9:49 yeah. Okay. Is there any profit DICOM Yeah, let's check it out. Like I said, Friday a lot information and like somebody we're always here. We're always here to help people that are here to share the information and help bring knowledge Choose a community because that's that's what we're here for as a whole we appreciate coming on we'll see on the next episode be enjoyed subscribe like share and subscribe we'll see you next time Thanks Guys thanks

Daniel Esteban Martinez Profile 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!

Pete Reese Profile Photo

Pete Reese

President of Reelvest / Host of Turning Profit Podcast

Pete Reese is the President of Reelvest Properties, a land development and investment company. With nearly two decades of real estate experience as a broker and investor, Pete has successfully purchased and sold hundreds of pieces of real estate for a profit over the years for himself and on behalf of his clients. He’s on track to earn $4 million in revenue in 2022 with his land flipping and development business. Pete’s always looking for his next deal, including his longtime dream of his own private island. Besides his professional accomplishments, Pete is a proud father to three beautiful girls, keeps up with his family by working out and enjoying a vegan diet, and is the 31st great-grandson of King Henry II.