0:03 All right real estate runway family. Today we're going to talk with my friend Daniel Martinez. And we're going to focus on land deals. So we're actually going to talk about how you can acquire small pieces of land or even large pieces of land from those who just don't know what to do with it, and actually chunk it up and make it subdivided and more valuable to those who would have an appetite for the piece of land you're looking at. So let's get into this and check it out. Before we do, folks, if you get any value out of the show, hit up that Like button, subscribe, leave a comment, just interact with the show, because that's really the only way that we get to more people just like you so pay it forward, share the show, write a comment. We appreciate you for doing so. We're on all the socials. Guys. If you want to check us out of Facebook, Instagram, LinkedIn, tick tock YouTube. So tick tock and YouTube is at real estate runway podcast for this show. And all the others our team quatro capital, one word, no special characters, or just visit us at the quatro way.com And you can click right over to it. And folks, we are always open to partnering with you. If you are an investor, you want to check out some of the opportunities that quatro capital has hit us up at the quatrro way.com/investor Register. someone from our team will reach out and we'll work on getting to know one another and see if that is the right fit for you. So let's get right into the episode. Here we go. All right. All right. All right. Real Estate runway family. Welcome to another episode of The Real Estate runway podcast. This is your captain speaking. And we have today a good friend of mine, Daniel Martinez. Daniel is in the land flipping business ranch flipping business and actually has a tech company that we'll talk about in the end as well right in the CRM space. But before we do, we're gonna get into Daniel story, Daniel, welcome to the show. How are you today, brother? 1:48 Thanks for having me. I'm glad to be here. I love contributing to the podcast niche as a whole. I have my own podcast and I'm a product of it. So we talk a lot about that too. But I just love contributing to the space. Yeah, 1:59 the stay tuned till the end, folks. And we'll definitely get into Daniels podcast and the quatro question section at the end of this episode. Daniel, before we get into this, you've got a pretty amazing story where you walk through your blue collar to investor story that you have here. And then just where you come from it. 2:16 Yeah, so I'm actually 31 I started entrepreneurship at 25. I was actually a truck driver at the time, actually, I was trained by my company. And I knew I wanted to be on sure but didn't know what I wanted to do. So I'm like I have a CDL. I understand trucking to an extent. Let me just start a trucking company. So I drove for two years for my company and then starting a trucking company ran that for two years, and I lost my shirt. I was pivot while I was truck driving. I was pivoting into other niches. And I heard real estate and wholesale and all these other cool things I can dive into listening podcasts and YouTube while I was driving, I pivoted into real estate. It took me seven months to get my first deal. I tried houses for a long time I checked like three houses they all fell through for different reasons. A seller died, someone blew up the closing table literally I took the seller to closing up at the table. My first deal actually closed was actually a land deal. And I've been doing land ever since I've just been found my own little niche and success and land. I've been doing that ever since. 3:14 I love one thing you said there, Daniel, folks, we are in a beautiful time where if you want to learn anything, there's probably a podcast or YouTube channel or some kind of audio book or something on it. And you want to talk about having probably the best opportunity to power listen and power learn. Try driving a truck across the continental United States day in and day out, you probably have a lot of time to listen. So I know that's not for everyone out there. Because some of you have to work at a desk. But man, we have these great little air pods. You can just stick them in your ear, listen to something in the background, learn by osmosis focus on learning if there's anything you can do, you can probably learn it via the content out there today, including this podcast. So Daniel, back to you here. You mentioned that you had some trouble with the the housing side of things trying to get into flips, or maybe you were buying to rent either way. But you fell backwards into land. What was attractive to you about it? And what did that first deal look like? What were you trying to do to turn a profit on that piece of land? 4:11 So the house stuff, there was just a lot of competition. I was actually living in Atlanta at the time and I just I contracted a lot of stuff. I didn't necessarily know what I was doing one deal. I put up $1,000 hard, earnest money, and I lost $1,000 Because I contracted too high with an agent. I was trying everything I could and that just wouldn't work out for me whatever reason I contracted one I was right before close, the seller passed away. So blew up the whole deal and I'm like okay, here's another one. And then another one. I took it to closing talk about the so to closing literally the title company didn't do a title search. So like right before closing Hey, we got bad news. There's a credit card lien of 30 grand that blows up your whole deal. Congratulations. Thank you. I just evicted the tenant. I trashed the whole property out. I just did all this work. And look at the table. So I was like, let me switch it up. So I'll be my partner, we actually the same course. And he was in the land. So I'm like, try out land car works for you. So I'm alright. So I set up a PPC campaign. So I set up a website with Google ads and just waited for people to come in through there. I ended up hitting a lady from she lived in northern Atlanta, but she had a property in Florida. It was getting those vacant, getting dumped on vacant little lot, like 5000 square feet without square feet. She's I don't want to deal with this anymore. Can you help me out? So I'm like, I looked it up. Using Zillow, I found out as well, where I guess those around were 1220 grand. So I'm like if I can get this thing for 12 or less 12 to 15. I mean, I see I can move this. So I was like, I want to get it for five. So she made me an offer. So I was afraid to talk to the seller. So I actually emailed her. I'm like, Hey, would you take $4,236.33? Can you just do five? I'm like, Yes, boom, five, I put up Facebook marketplace. And I found a buyer two days later for 12. And that's how I did my first deal. 6:01 That's pretty great. So that's land flipping at its best right there. And that's again, less competition. Not everyone understands how to value land, or it's not as easy as everyone knows how to go look up a house value today, right? There's a lot of people trying to buy houses, not for investments, but for their own personal use. There's not enough housing inventory out there. Hence the housing crisis that we're in and why rental real estate is so good. But competition is a big part of what you're talking about here. Daniel, since then, you've evolved, and you've done multiple land deals, and now you're looking at big land buy and things of that sort. Walk us through that evolution. How did you go from that first deal, which was in essence, a land flip Jerry some cash? What are you looking at these days? And how did you evolve to that point? 6:44 It was an evolution like I like land because it doesn't cashflow. I like land because it carries its own weight of motivation just by owning it. That's pay taxes every year. So actually negative cash flows most people, and there's more inventory than any other asset class. In real estate. If you think about it, there's more land than mobile homes more lightly, and it houses more land than RV parks, all everything else, there's more land than everything else. So you got more inventory. A lot of people don't know how to monetize it. So if it once you cut that learning curve, you're in a blue ocean, which we love everything about blue oceans, like we're literally the blue ocean. So one of the things I love about land, too, is that you alluded to it before this is that a three two houses in a neighborhood, we only get 150,000. Because there's by verifying comps that determined it's 150,000, there's no getting, you can over remodel the house, you're only gonna get 150,000. So it's set in its ways with land, it can go 1000 200,000 to a million like it can go any direction that because the inherent value is based off whoever's the end user slash and buyers. So me flipping it, there could be a huge end buyer capital thing that I don't even know what it is. So we look at comps, but very loosely, so if we verified the slots, maybe worth 100 grand, if we can get it for 30 or 50. Grand, we know we're gonna make money, we just don't know how much. So it comes down to that thing, okay, I might sell the state for 125 and make an extra five grand that was even underwriting. So think of a flip where you have that you know where that roof is, land has no ceiling. So as long as you have a good margin of safety, you're gonna make money. So we did a deal earlier this year in Florida, we thought we're gonna make 100 grand on it. And at closing, we made 40. We're like, Okay, we made 40 Oh, no, it's a bad day to cry about some people to 90 day flips, and they make 40 grand. So like, you have to build in that margin of safety. And you can really create larger spreads by going after larger properties, the average wholesale fee in houses is like 1010 to 15 grand right now, it might be 12 grand right in the middle. Because you can only make so much out $100,000 house, or $100,000 property, you're capped out like you can't squeeze 100 grand out of 100 grand property, because no one's gonna give it to you for free. So when you start doing larger assets, you can create larger spreads. So that's why we started going after big land because we can go after larger assets and create huge spreads. 9:03 Yeah, that makes a lot of sense. And so just to clarify, you primarily are still with big land, or you're selling it off in a wholesale fashion. You're not really taking it and developing it right. You're letting the next guy right 9:16 100% Yeah, yeah, well we do is that paperwork. So a lot of people like I had to add paint and I fixed the roof and I had to fix the AC and like I would do that paperwork. That's how we do. 9:25 All right, so let's talk about the big land side of things a little bit. You mentioned why big land, but let's say you go and find a piece of land first of all, before you even find that piece of land, what are you looking for other than big land? Are you looking for any features attributes, paperwork that's already in place? What makes a good acquisition avatar for you and the big land and how big is big, 9:45 we like big land because it can create huge amounts of profit spread and you really don't know how much you're gonna make top to the end. But we got a small stuff to like, dependent, like we can make money on it. We're gonna go after it if it makes sense on paper. I'll start off small and work our way back about two years ago. This is where How we got the idea to make money in cash flow land? So remember it says land doesn't cash flow, we make a cash flow. How do you make your cash flow? You become the bank, how to kill the bank. So we did this deal about two years ago, when we found like a $35,000 lot. Seller came to us like, hey, I want 15 for it. After hearing that we're like most people jump on it because it's just $1. Yeah, pitching grant. If he's coming up to 15, he maybe will take less. So we offered him eight $1,000 And all I have to get 15 for it. I can do 15 Right, whatever. Cool thing about land is a boomerangs. It always comes back to you because no one's buying it. There's so much opportunity out there. We talked about Blue Ocean, it's like, can we go? It just comes back to so and so it came back 69 days later. Hey, I remember you're interested in my land. Do you still interested? Yeah. A grant. Okay, I'll take the Hey grant. So we got them under contract for eight grand. We put on marketplace, he found a buyer in two weeks for eight grand down 500 a month, eight grand the buyer gave us strategy to the seller. And then we click 500 a month for five years. That's equivalent to a rental, most rentals average 200 to $600 of cash flow per rental, but there'll be the capex, they got repairs, they got management, they have all these other things that can ruin their castle for the whole year. That is net cash flow, because it's the bank. It's gonna be 500 a month. So that's where our little path grew. So that's a small deal. bigger deals we've done that deal in Florida, we took the Hillsborough pre foreclosure, that was actually getting the property we took it over for 20 grand. We sold it on the MLS, and we made 40 grand and the prop the property is worth four 450. 11:38 Yeah, not a bad day at all. I would say okay, let's walk into going from that. You mentioned adding paperwork to the land. And I think you're in your bio, you talk about subdividing lands, what is the upper bound? Is there an upper bound to what land you're considering at this size? Or 11:54 now, we just did a deal on June those three and 50 acres 10,000 acre, so three and a half million? We contracted it back in March. We closed in June. All the lots should be sold. In August. We were set to close sometime. And August, maybe September. 12:12 So let's walk through that one. Daniel. So you found that you said it was 10,000 acres, right? 12:16 It was 350 $10,000 per year sorry. 12:19 350 acres? 10,000. Off breaker Got it 3.5 million. So you bought that. So what did you see in it that you liked? And then What value did you add to it? Because I think I got a piece of about what you just said, What did you do to it to then be able to sell it off. 12:35 Think of the wholesale model. So you go to Costco you can buy, maybe not the toilet paper, but you go buy a big pack of toilet paper, you might go to the corner store and they sell it each roll of toilet paper for each thing. So it's the buyer by the brick model, same model. So he buy large acreage, and he's subdivided down into manageable parcels. So think about this, how many buyers out there and we're just talking about how scarce land is and how many buyer pools are out there. So how many buyers can actually afford three and a half million dollars the land? Very small. Yeah. So cut it down into 10 to 20 acre lots. Now it's down to maybe 20 200,000 400,000. Now we're taking it to a manageable amount where people can afford it. Now we can open up to more buyers. That's how you create that flexibility. So we bought a 10,000 acre, we're selling it for 20 20,000 an acre. So we sold some lots for 20. We had a big developer ended up actually contracting the last we subdivided that one into 15 Lots and a big developer and we sold for a big Villupuram of buying the other 11 lots from us at a wholesale price instead of selling 20 We sold for 12. And that's where making money so we're projected to make 700 $800,000 on it. 13:47 All right. So let's get to the details on that. I love the the tactical side of this. So you identify this piece of land. And somehow you came up with a three and a half million dollar prize. So how did you like to start me there? How did you decide, this is what I'll pay for it to know I've got enough margin on the back ends. 14:02 So generally we're trying to we try and get a 2x value add opportunity. So the it was 10,000 an acre acquiring. We know we could sell it for 20 to 22 Selling once we subdivided it down 14:16 housing, how did you know there were cops out there for that are cops gonna get 14:21 upset support smaller acreage sizes that people are paying 20 to 20,000 per acre. So once you know that you can go to the marketplace. I'm like, boom, there's a deal. There's a deal. There's a deal. Literally, I was one of my students I was on like let me just see how many deals I can find in 30 minutes. I found nine deals on the MLS that were market that were marketed that had money built into the deal. And they're sitting there six months a year on the MLS. No one knows what to do with it. You can let it cherry pick them off the MLS without doing no marketing spend nothing. They're just sitting in MLS. 14:55 Yeah, just because like you said, it's unmanageable to the average buyer, right? 14:59 It's not manageable and no one knows how to deal with it. They don't have the skill set or the knowledge to make it work. 15:05 Okay, so then I guess let's think about what I would call super value out in the space do you ever get into I'll call it horizontal development. So let's say you bought three and a 50 acres, you can go sell them off as smaller subdivided loss. And that's like almost literally for changing the paperwork, that's free money right there, you can get into maybe getting it approved for our for housing or something like that. Have you ever had to go that far? Or do you really just say, I'm just taking it from big to small, and that's really the best and all the value out I want to this, 15:35 we don't actually build anything. So there's different phases of development. So like, large into Czone bit zoning, it's a bit struction into actually complete construction, and then you have selling off. So you have the four different phases right there, we generally do phase one. So for instance, we're doing a deal right now. We bought 10 acres, lot smaller, but we bought 10 acres for 225. We're turning it into 11 lots, and we're selling it all to mobile home dealer for 60,000. A lot. So we're projected to do 660 minus expenses, and we picked it up for 225. A little 10 acres. 16:13 There. Very nice. Okay, that's super interesting. And so I guess as far as the next part of the episode, let's talk a little bit about the tech company that you have Daniel. And so this is an interesting combination, right? Because not only are you a land investor, and you know a lot about how to flip land and make a profit on that by subdividing. And you've also got a pretty interesting product out there. So I'd love to hear why you created hive mind, and how maybe how your your current investing life spawned that. 16:43 Yeah, we created it was out of necessity. I think, whenever you're starting real estate, you get to a certain point where you're like, I have to create tools and systems and I guess I'll get some systems in place. Because you get becomes very unmanageable very quickly, the more successful you become. And everybody should have a CRM system, I don't care. If you use ours, I really don't care, you need something, you have to have something that coordinates controls automates follow ups to your leads. Because if you don't have leads, you're not you don't have a business, it's the lifeblood of your business. So we use it literally for everything. So like most people, we have the very like unique real estate structure. So like, we help other businesses set up their systems automations help them create leads, we set up PPC campaigns, we do a lot of the other stuff for them. But like other people come in who already know how to use this, let me come in and use the system. And I'll text out hope call, I'll run my own PPC campaign and I just use your framework. So we have we have all certain types of customers that come in into our system based off whatever needs they have. But the biggest thing is that you need something to coordinate and exterior leads. So like obviously, company personally, we spend $0 for acquisitions, we can pick them up off the LMS. Yeah, students how to pick them up. So they're bringing us deals. So our acquisition is literally zero. So all of our marketing spend, are most people spend 1000s of dollars a month for marketing, we spend it to find buyers, that's where our marketing, that's what makes us different. We're totally opposite from everybody else. And we use our advertising spend to find buyers, nothing for sellers. 18:11 And that makes a lot of sense. And you're right. Sometimes you have to build the machine a little bit. And then you realize, wow, I've got a good machine here. Let's I bet other people need this machine to and venture to say that your tool is geared around what you needed in the business as as a land flipper. And it probably applies to a lot of you real estate folks out there. So in just a minute, we'll talk about how you can check that software out and see if it's right for you and your business. Daniel, let's hop to the quatro questions. Are you ready to go with me? 18:36 Let's go. Hit right. 18:38 So first one, what is your superpower that could be life for business? And how does it serve you? Well, 18:44 my superpower I think is like systems. And that sounds like I'm the smartest person out there. I think the basic understanding systems and I love math. So I think I excelled at math when I was in an a high end of high school. And I think it comes down to help me out with underwriting now with real estate. And I really leveraged that side of it. I wasn't really that much of a speaker. So I started the podcast, but I guess I drove that skill. But for me it's a system station system is systems and underwriting and math. So am I present my partner is good at sales. So partner with somebody. So let's go. 19:18 Yeah, that's super important. Don't partner with people like you partner with people who are unlike you. So complement your shortcomings or at least flip the coin over Daniel, what is your what is your biggest failure? And what do you learn from it can be life or business. 19:30 My biggest fear was actually trucking man. I took that one straight on the chin and I'm not afraid to say it. I learned a lot from business though because I learned how to manage people I became employees dealing with employees dealing with a lot of different tough situations. That just gave me a lot of thick skin in business that I wouldn't have gotten. I would have got into real estate eventually. But I went down that path where like I went down trucking and had to find another avenue to pivot into and be real estate. So I think gave me the through all to work through the pain because this is a real estate's not easy. Anybody that says it's easy, they're lying to you, there's sleepless nights, your wife or spouse holding you, like you got to deal with a lot of stuff cashflow problems, you have the payroll, counseling your employees like you gotta you have a lot of stuff that you deal with as a boss, and no one really talks about. 20:25 Yeah, I would agree to that brother. And there's, there's real estate is great. But there's especially if you own vertical property. There's a lot of people behind it too. And you have to remember you're in the people business, whether you own hard assets or not. So that's a great lesson there. Let's let's segue into question number three, Daniel, adherent quatro, we have four pillars people property, profit, and then philanthropy coming back and taking care of people sorry, people, property profits, philanthropy coming back and taking care of people I said around the first time, but I love to give my guests a an opportunity to talk about your philanthropic heart here on the show how it is you give back with your time talents and treasures. And sometimes people on the show actually will give on your behalf with whatever we put in the show notes. But what does that for you, Daniel, 21:08 I trained I have a heart for young people, I always I like helping young people learn more about life and business because I think a lot of people don't, don't educate them, or they don't prepare them for what life actually brings to them. Because I know for me personally, there was a tweet yesterday that's talking about like how people go to college to make their parents happy. And I'm like, it might not be the thing you do. But they didn't prepare them that sometimes parents don't prepare the young adults into that transition to adulthood. And it can hit you very fast. And you're not prepared. So I always like helping young people just become more knowledgeable. And I always talk to like, my family and young adults, I was trying to teach them about business. Because I have me and my older brother, we actually got into business, but we're the only one people in business in our family. Everybody else is like blue collar still. So I think just giving back to the young people, my oldest daughter is actually going to school. So they actually have a entrepreneurship programs. I'm hoping to teach and educate for the high schoolers in my daughter's school because she's kindergarten, but I can participate in contribute to the high school. 22:19 Yeah, that's fantastic, Daniel, it's such a soft spot in my heart for that as well. Let's come to the point where we have our free gift here in the show. Let's talk a little bit about the podcast that you have. And let's talk a little bit about the think you have a text gift as well we were talking about earlier. So what are those two things? And how can we find them? 22:36 Yeah, so actually, I have $1 course is literally $1, you can set the course to two and 097 to 1842, which just talks about the where to get started in real estate. And then we have other courses and products there, we're actually launching a free PDF checklist. It's not out yet, but it's coming soon. They offer maybe to check it out, maybe it will take some money when it's available. But the free stuff free stuff coming. I always like providing education, and then podcasts, podcasts, YouTube, social media, we have almost 400 episodes released right now. And I just like getting back to community because like I said, when it comes back to it, if you go back, I'm trucking, I listened to a lot of podcasts, a lot of YouTube, I can send a lot of audio content. So I like contributing back to in that way back to the community because I'm a product of it. So that way to get back and I think it comes full circle. So I like contributing back. So I appreciate you having me on. So to help contribute back to the community as a whole. And I hope you find value in this episode and our podcasts and other podcasts out there. Because as us as producers, there's so many people consuming content, it's hard to change that chick crossline nicely produced. So I commend Chad here and other people like us to produce and create content in the niche to provide education. 23:48 I would agree there's so much good stuff out there. And it really all it is like think about back in the day where you had to read a book to learn something. And that book might have been someone's end of career work that was already for what they know, was 10 years old. In a time where things are moving so fast today, you have to have current information you have to know what's currently going on. And what better way than to just listen to conversations like the one we're having right now. So thank you for that Daniel and Daniel, the last little bit here on the show, I promised we would come back and talk about hive minds, and also how to get in touch with you as an individual. So for the listeners, as we conclude here, what is the best way to get in touch with you? And should they want to go learn more about hive mind, please provide that as well. That's the CRM way. 24:29 Yeah, we're at hivemind CRM on literally every platform than platforms. You think we're there, we're there. We produce a lot of content. It's everywhere. We really try and make sure we're on platforms that people want to be. And if you're on that one platform pod, check it out. We're there. That's pretty crazy. There's a lot of effort that goes into producing content everywhere. So I hope you take advantage of it on your favorite platform. And then I'm Daniel Martinez on Facebook. They know how to mine on Twitter, and then you can always get all of us through that too. Oh number 2009. So So ac 42 That actually goes to my team. So if you have any questions about hive mind, or education, literally any question you want, you can ask that question or eventually coach, my team. And me. 25:10 All right, Daniel, thank you for coming on and sharing a bit of your journey and your experience of the land side of things and just even even some of the mentorship on running a company. So hope to have you back on here in the future and hear about more of these fantastic land deals. And folks scroll down to the shownotes everything we just said to be right there. If you're clicking pleasure, and talk to you next time, Daniel. 25:31 Thank you have a good day, guys. 25:33 Wow, folks, I hope you enjoyed that show. That was some really cool stuff, talking about chunking up land flipping land, and how this business is actually counterintuitively, spending more money on finding its leads for buyers than it is for sellers. So very interesting stuff. Go check out Daniel Martinez, check out hive mind CRM, see if that is right for you. And don't forget to text the link in the show notes to see if you want to check out his free course for land flipping. Now, if you got any value out of that show, folks, check us out and give us that five star review that thoughtful comment and or just share the show just interact with the show. That's the only way you can provide value and share it with somebody else. That's the only way it grows. Folks. If you want to be on the show, we're always taking interviews you can apply at the quatro way.com/podcast And if you want to look at investing with quatro capital, we always have things going on, check us out at the quatro way.com/invest to come build a relationship and start from there. Until next time, this has been another episode of The Real Estate runway podcast over and out friends