0:00 We are in negotiations investing in real estate. They're winning. They're making money. 0:05 What's up everyone? Welcome to the Real Estate educators podcast where we provide the education you can build on. I am your host, Kevin Amash. I am loving doing this podcast because I get to help real estate investors, and real estate educators. So whether you're an investor or if you're a realtor or lender, someone who wants investors as clients, this is the podcast for you. I've got a very special guest with me today. I'm excited to have this conversation. But before we get into that, please do me a favor and give me a five star review. We're trying to build this podcast and you could help me with that by giving me that five star review. So today we have a special guest, Daniel Martinez. Now Daniels been in real estate for five years, been an entrepreneur for six. He's gone from trucking to software, to real estate to finance. And I'm excited to talk about real estate with you today, Daniel, because you have a specialty in owner financing, which I have a huge passion for. So welcome to the show, man. 1:03 Thanks for having me. I was looking forward to the conversation. I don't know what it was. And I'm here today. I'm like, Okay, this is a good conversation. I'm excited for today. Yeah, 1:10 I'm excited for this one, too. So take me back. So you said you were you've been in real estate for five years, but you've been an entrepreneur for six. So what's that one year there that I'm missing? 1:22 So I actually did, I did real estate and trucking for two years. So I've been I started truck driving. And I was like 23 and I my company trained me how to be a truck driver. And so funny that my son was my trainer, too. I like the abrupt the start in a while. But my trainer, a truck driving school and my company was like, What are you doing here? And I'm like, What do you mean? Like I'm trying to be a truck driver? He's like, no, what are you doing here? Because like, I didn't study for anything, I aced the test and passed with like flying colors. And like most truck drivers are what you expect to be truck drivers. And he's like, Did you don't belong here and I'm like, okay, like I was to get checked over. So I checked out for like company for two years. And then I started my own trucking company. I know I want to start I wanted to become an onshore but I know exactly what I wanted to do. Since I already had my trucking experience and logistics experience. I'm like, let's go to the trucking route. I don't know, we'll figure it out. So usually you use the gifts that you you're given, or we're taught to kind of do it on that niche. So I started a trucking company. I did that for two years, a year it was going is as very bad for me. Very, very bad. People are going to trucking very crazy, crazy, crazy business. But I was looking to pivot. So I pivoted into real estate a year into that. And I've been doing real estate and I start my trucking company a year into real estate and I just pivoted fully into real estate after that. But first business was a trucking company. And I got to five trucks with like four or five drivers traveling across the country to a bunch of crazy stuff. But I got a bunch of crazy stories for that. But it's I prefer the real estate side better. 2:59 Yeah, so I've got a you probably don't know this about me, but I have a quite a lot of friends that are truck drivers. And, and they love it because it's like, how do you say how do I describe this? It's like kind of a lonely industry, you know, and they don't want to deal with clients and contractors and customers in real estate. They just want to be by themselves listening to their podcasts and just driving. Did you find some enjoyment in that or 3:26 I I, I enjoyed driving. I'm not gonna lie. I enjoyed the driving part of it. It was the business side that it didn't like and I don't like being away from home. So that's why I was looking to pivot and the money sides. It's difficult to so feminism doesn't know the publicly traded trucking companies out there. You think of like Old Dominion, cya UPS, FedEx, most of those companies operate up a margin of 3% or less. Oh, I had no idea. If you're not if you're new to business, a marginally personal loss means that every dollar you make you only keep three cents. 3:59 Which is Yeah, and that's so thin Daniel and you think about like, just fuel prices alone fluctuates so much. So how, how can you even be safe in an industry like that? And 4:11 that's where I didn't know that until I was going in. And my margin was so small. So like to make 100 grand, you'd have to bring in a million dollars. And that's, that's what everything going right. And there's a lot of things that go wrong. So I did not make that I actually lost money. 4:32 And I do hear that a lot too. I mean, just and plus the wear and tear on the truck which the truck drivers never account for maintenance. 4:38 I mean, maintenance fuel insurance, and drivers is like all your costs. That's every every dollar you make goes to that. 4:47 I can imagine insurance isn't cheap. No, it's 4:51 not. It's not I was spending when at one point in insurance, I was spending $10,000 a month. 4:56 Wow. Your drivers ever do anything like to do bid. 5:00 Oh yeah, I mean, I had one hit a deer one went almost went into a ditch one almost rolled it on a hill. I got tons of stories with that is it wasn't fun. Don't do what I recommend. 5:15 Okay, I was gonna ask you more questions about the church ever but let's get into real estate because that's where our passion is. So here you are driving down the road and you're thinking like, I want to get into something different. And then real estate, like appear. So how did you how did you go from truck driving to real estate? 5:30 So it's kind of with your friends, podcasting, podcasting, YouTube, I had all the time in the world. And when I when I was pivoting, I was like, instead of listening to music all day, let me listen and educate myself. So this is one of the big reasons why it was like an internal thing for me to like, produce more content on the podcast side, because I'm a product of it. So I like giving back to the community in that way. Just because when I was traveling I used to do was podcast. So it kind of gave me the information I need to know to get started. I used to watch a lot of YouTube, just put YouTube on on this in the YouTube about different stuff in business and real estate and kind of just kind of delve out delving into over the fence over that just on YouTube and podcast. 6:11 So which Podcast is your favorite? 6:14 I was just a little bit everything I listened to a lot of I listened to some bigger pockets. I didn't really like it that much. But I was listening to I can't remember. I was most mostly a lot of YouTube. I was just getting like, I'll just go to youtube wholesaling. And I watched 50 videos videos about wholesaling cuz I knew that that was a gateway to get into real estate. So I had to go after video from different people and kind of learn different things and ended up finding there's a young, he was very, very young. He's young, still young now. But he started wholesaling, like 17 He got his first deal before he even graduated high school. And he was like 19 at the time, and he had came up with the course. So that's the course I bought and that's how I got into real estate. 6:55 Ah, that's interesting. So he was younger than you and teaching you how to do it. Exactly. He was younger than me. That's so cool. How what's his name? Jaylen white. Jalen white. 7:06 Haven't heard of him. He's actually out of real estate. Now. It's the funniest thing. He did real estate for five years. And now he does online marketing. So it's real estate money. And then he pivoted into something he wanted to do. Because real estate is not passive. 7:19 Right. For the most part, you're right. Everyone thinks it is but no, and maybe we get into that too. But online marketing relates to wholesaling, like a lot, right? Because to be a good wholesaler, you have to be a good marketer. 7:34 Yep. So he wanted to leverage his marketing background that he leveraged in wholesaling, to do more of a passive business because real estate's difficult. And man, it seemed management and all the other stuff that comes up with it. So yeah, especially in real estate. So 7:48 cool. So do you ever get to meet him, 7:50 I have never met him to this day. And he changed your life, though. changed, my life is crazy. The crazy thing about is me and my partner, we actually took the same course within a week of each other. And that's how we ended up becoming partners. So I would not be here without his course. And I would not be where I'm at without my partner. And that's kind of how we built everything we got 8:09 ever, like reached out to him. Just tell him like, man, like what you did for me? 8:14 I haven't Yeah, and he lives somewhere in LA and I live like two hours from LA. So I do want to make make an opportunity. But I want to get a little bit further and then have a better story. You know, it's 8:27 still pretty good story, man, I really look at you. And it came from someone who doesn't even know he impacted you that way. So you're an influencer, right? You create a lot of content, you have a lot of people, it doesn't feel good when they reach out to you and say, Hey, you, you've helped me. 8:40 But I think even more than that is when somebody has a bigger impact. And they already up to that point. And like I've talked about on podcasts. So I'm kind of savoring it a little bit more, because I want to I want to drive that real value what I do hit him with it, and hit maybe come back to us and listen to this later. I don't know. I want to I want to hit him. I want to hit him when it's hard. You know. That's amazing, man. I haven't gotten to where I wanted to be yet. So I'm waiting for the opportunity still. Okay, 9:07 so where do you want to be? Um, 9:11 maybe next year, maybe next year is the year we're in the midst of creating a fund right now. And we're trying to raise money in over the next few months and just buy more land and my niche already shows specifically land. I've only done one house deal and 100% land. So it's a fun niche to be 9:29 an owl. Okay. So I want to get into the where you're going for sure. I know. We kind of jumped ahead here. So we're let me take it back. You you're in the truck. You're listening to what you're saying you're watching videos, but I gotta believe like you're really watching videos on YouTube while you're driving down the interstate. 9:47 I plead the fifth. 9:51 You're listening to some videos. Mr. Jalen hooked you you bought his course and now he is a wholesaler. So your first deal was a wholesale deal I assume 10:01 Yes, I, I Well, I started with houses. So everybody's told me do houses, houses, houses and houses. So I contracted like three or four different houses and they all fell through for different reasons. One, I contracted two hives and I was doing another one. The seller passed away the weekend before close another one. I it was they rented to a family member second house, I evicted them trashed it out. Took it to the closing table and title told me they had a underlying lien of 30 grand for credit card and envelope the deal. Yeah, those are my three house experiences. 10:43 Geez. Okay. Those right, you stayed with it? Because that's not a very good start. 10:49 No, no, it wasn't a very good start. I mean, I got I got kicked really hard. While I was down repeatedly. In my in my definitely started out. But my partner, my now partner, friend then was like trial and see what happens. Like, all right, let me just try. It just houses I was getting, I was getting kicked down really hard. So I literally put a website up. I ran Google ads at it. And I found out how to do that on YouTube. No experience. Not I have a lot of experience now. But no experience then how to do it just kind of figured it out. And I had a lady I was living in Atlanta at the time, a lady hit me up. She had a property in Florida. I'm like, Alright, let's see what happens. So it was a little like 4000 5000 square foot lot, little infill lot. And she's like, I asked her what she wanted for it. She's like, make me an offer. And I'm like, I looked it up was worth maybe 20,000 ish, give or take in a minute. My experience was very, very low. So I told her, like, if I give this thing for under five grand, I think I can make money on this one. So I made her offer of $4,236.35. That's kind of made up a number under five grand. And she's like, can you just do five? And I'm like, Yes. Mind you. I did not talk to this lady. She came into the website. So I was emailing her email, email, email, conversing through email. I contracted through email by 1000. I put it on Facebook marketplace in Florida because you can choose location. I put it based marketplace in Florida for for 12 and I found a buyer in two days. And I made six grand and the rest is history. Whoa. 12:30 Okay, so I know a few other people that do infill lots as their niche it's very rare you don't I don't talk to many people that that do that. So your your website and it was a PPC campaign or something I brought her in. Yep, PPC. Yep. So price per click and then and then you just contracted it right online. You never met her? 12:51 Or the seller, the whole transaction. Have you? Did you see the property? No, I still never even saw the property ever since the property to this day. 13:00 And then the rest is history. Okay. So tell me about the next one. 13:04 So I just started doing land after that. So we've done land deals a lot in Texas. We've done a deal in Florida, we mostly do a hybrid thing in Texas. So a lot of stuff we do is has been crazy after that. And like my partner is actually in Texas, I run the back end so I run the marketing system. So you definitely know how to do everything. So I would run the backend systems for my partner and then he would go do the front end sales and stuff like that. So after that I met a partner my partner and we did a bunch of deals in Texas and Florida and all over the place but that was my only deal by myself and then for their partner with my partner and we did a bunch of stuff in Texas. 13:36 Okay, okay, so is it all still infill? Are you doing larger land development types to 13:41 do larger stuff now we're looking at larger projects. We had a this is the epiphany all started so we did a deal about a year and a half ago. And it was it was an infill lot. And there's there's a lot of land and land investing so crazy. It's such a like, super niche. There's not a lot of competition. And mostly typically most competition is under 100,000 or less as far as like property value. So the slot was $35,000. It was worth about 35 to 40. And the seller came in I think it was PPC lead because we were still doing PPC and he's like I want 15 for it. So most wholesalers jumped out on us potentially 20,000 Plus on this, jump on it like now we'll let him go. If he's really coming in at 15 He's kick take lower, so my partner offered them eight. And he's like No, no, I can't do a I can't I can't I need 15 All right. So one thing about land is you make the offer and you wait like times on our side, no one's gonna buy it. There's no There's no one there to buy that property. It just it just sits there. So the seller motive the sellers motivated just by owning it because it'll pay taxes so actually negative cash flows and whether you like land because it doesn't cash flow. So he comes back like 90 days later, he's like, Hey, I remember you're sitting my lot. I need 15 for it. He's like dude, I remember you I've heard you eight, eight, and I still at eight. All right, I'll give it to you for eight. So this is where the whole epiphany happened. We're like, okay, so we sold our marketplace. Again, this marketplace, we still use faith marketplaces day, years later. We sold two for we sold our marketplace for $8,000. Down 500 a month for five years and we sold it for 45k. We found a buyer in two weeks, 8k from the buyer went straight to the seller. And then we just clicked 500 a month on this property that we did nothing to. And we became the bank. 15:34 That's really cool. So I have a I have a land a piece of property of New Mexico. So weird, man, I got this weird story. I'm not gonna go into it. But I ended up with a trade like a hotel for this and some other stuff. So I ended up just getting this and part of a trade that I've never seen it I don't really have anything to do with it. But one acre on story lake in New Mexico, so it's Las Vegas, New Mexico, if you I was like Las Vegas, New Mexico, I didn't even know there was a thing. So I'm thinking about maybe getting on Facebook marketplace man and see if I get this thing sold with some owner carry terms and cashflow. Yep, 16:13 I want to create terms and cash flow. So we had the epiphany of if we can get a deal cheap enough where the downpayment covers the purchase price, we can create notes forever. And $500 a month isn't like nothing a balk at like $5 a month most rentals bring in two and 50 to 70 per month in net cash flow. You know, so if we're bringing in 500 a month, I don't know a lot. I never saw a 35,000 or a lot, how many lots out there out there like that. infinate infinite. So I interviewed a guy my podcast is a land guy. He said it took him five years to get $50,000 a month in cash flow just doing deals like that one. 16:52 And you were saying earlier, real estate's not passive. 16:56 It is I make the joke about it. This is where like land can become passive if and like, the note game is 100 I think the most passive part of real estate. And so I agree. And that's where like, we had the epiphany now Okay, so let's do larger tracts. Let's create larger amounts of cash flow, using the same strategy using creative finance. So that's what we do. We just we took that same $8,000 30,000 Our lot, get that straight to the seller, we're doing that same thing just with larger lots. That's the whole idea. 17:26 Yeah, I love the debt side of real estate for that reason. So i That's why I just like I sort of agree with you on the on the if it's passive or not, because rental properties clearly are not passive. Wholesaling clearly is not passive. And fixing and flipping is not passive. But if you create debt, it is an unsecured, right. So who knows, man, you might end up with some of these back, and you could sell them again. 17:50 So I did the math. So right now we're working, we're doing a lot of larger deals. So think about this. One of the reasons why I love land is because land has the most equity, single family multifamily storage, they Retrade, they trade, they refinance, they always getting debt on it all the time, land, they do not do it because they're afraid of losing it. So they're afraid to get debt on it. So most of the land out there is on free and clear. So you can get a lot creative terms pretty easily with land because they have huge amounts of equity. In it, they own it free and clear. They passed down from generation generation. And it's a lot easier to get that creative terms on it because a lot of its own free and clear. And they have a lot of it too. So most one of my students, one of my one of my team members, he's like a little he's a little my sales guy. He's like, one thing I just noticed about what we do is everybody we talked to is a millionaire. So what do you mean by that? He's like, every seller, millionaire, every buyer millionaire. And the reason why is because most people that are buying land, they already have a house there, you got that stuff situated. It's not like number one priority. Land is something excess, they're gonna hunt on it, they're gonna do recreational stuff, and they're gonna shoot on it, they're gonna build something, they're an investor, they're gonna put a mobile home park on it, they're gonna put mobile homes on it. So it's either what they do, or they're a way to create value, or hold value. So everybody we deal with on the land sets a millionaire. We talked to one landowner, he says 2500 acres with a bunch of cabins and an airstrip on it. He's like, come up to this property. And I'll give you a show you the property on my helicopter. Like, no, no, how sellers ever going to have a conversation with you. 19:30 Can you imagine that? 19:33 I mean, I've never heard anybody else talks about like that. But we had a land seller talk talk about like, hey, I'll take you a tour of my helicopter. Like you go. We haven't gone yet. It's in like by Oklahoma way far you gotta go. And I do want to do it. But like, this is the conversations we're having. Like, I want to be in a realm where we're having this couple of conversations. And then we're learning about like, and this is where it's raising capital and doing In bigger deals, it's a lot easier to get creative financing, it's a lot easier to raise money, it's a lot easier to do a lot of things, when the spreads are bigger, because you can afford to pay whatever interest rate private capital wants, you can, there's money to move around, you can get if you can get creative terms on $10 million, you're making a lot of money. Just for example. We do a lot of like, and if you're a hard money lender, and you do stuff like Kevin, does, you get a depth spread right? Off the money you he may he may invest people's money at eight 10%. And then you you you invested out at 12 with two points of Origination. Right? Yeah, exactly right. This is for all the all the all those people imagine this, we have a seller right now we're communicating with and this is one of our students found the deal. It's a $3 million property, the seller wants 10% down, which is 300 grand. He wants he's gonna give us 0% interest for five years, on three on $2.7 million. All we're going to do is sell all of his land, okay, so he has a house on property that's worth 300k, we're just going to subdivide it off and pay him with his own house, then we're going to set up, cut up all the land on it and sell it at 12% interest. So his payment for 30 year ham by a 0% interest in selling 500. Just selling it for 2.7. At 12 will create $27,000 a month in cash flow. 21:28 Net. And the payment to him is all principle. Yep. My goodness. So you mentioned this to me right before we hit record. So and I and I mentioned to you I've done a ton of owner carry stuff, but I've never been able to successfully negotiate a zero interest loan. So I've, I've heard of it. It's like the unicorn, right? How'd you do? And 21:54 the trick is we asked for equal payments. So I learned this. I don't know where we learned this from but we pick up a lot of different pieces of repo. But instead of asking for either ask for equal payments, so I always like let's say it's a three to $6,000 property, easy math $1,000 a month for 360 equal payments of 1000. I mean, easy math. Oh, that's three or 60,000. So I was like, Yeah, that's exactly what I'm asking for. Let's do that. So you make you want to make it simple, where they can, they can do the math themselves. So we had a seller, he's like, I want 8% interest, like, alright, we'll give you 8% interest, but we're only paying 2500 a month, and a percent interest would have been like seven grand a month. So like that even stuff like that everything's the what I love about real estate is everything's negotiable. And you can literally ask for whatever you want. And it makes it makes sense. So if a seller wants interest, yeah, I'll pay it on the back end. I just want a payment 2500 a month? Well, yeah, 20% Okay, let's do it. You know, and it's, everything's up for negotiation. So I think the biggest reason is, land has the most equity and I talked about this a little earlier. So that seller to them, spending 500 A month might be all they spent, or they might spend 4000 a month so like, Man, I'm gonna get double the amount I spend pay less in taxes, and I'll get blue.in five years and get all to two to whatever million dollars you know, whatever that number is added to the math, but whatever that number is, it's like 2.5 2.6 just doing the math in my head real quick. Okay, 2.6 and five years he's like yeah, let's do it. Like I'll get the money eventually. And I'm always secured by the asset which I know it's an asset so it is what it is. 23:34 The real estate educators podcast is brought to you by pine Financial Group, pine Financial Group is a private lender specializing in value add bridge lending for real estate investors. This is accomplished by raising private money from individual investors and lending that money out in short term real estate loans. Pine operates one of the coolest public mortgage funds on the market because it brings consistency and security to your investment portfolio without giving up on returns. The fund pays its investors a flat 8% return with monthly distributions. There is a low minimum investment and no lockup period. That's right. You can request all of your money back at any time without any fees. diversify your portfolio out of Wall Street and into Main Street with the pine Financial Group public fund. P F G fund five Find out more at Pine financial group.com That's pine financial group.com 24:34 Aren't you glad you got into real estate man? 24:36 Real estate has changed my life and land has changed my life even more. Because now we're looking at I this is where like I'll say it's your show because you're a finance your finance podcast you here but land is the only place you can go to a seller and ask them to be the bank on a large asset and you can get loans without having to provide Add your financial statement, provide your proof of income, provide your, your assets, like you don't have to do none of that with a seller and you can get a 0% loan. 25:09 That's pretty amazing. So you said something earlier that I want her just repeat what you said. And I want you to like explain this to me. So you said you'd like land? Because it does not cashflow? Yes. What do you mean? 25:26 Okay, so underlying motivation, if they have a house, they can live in it, they can rent it out, they can Airbnb, it, they can put a family member in it, they can leave a vacant, they can do all they have all these options with land, they dead, none of those. So they're stuck doing they're stuck holding the bag, every time or every land seller is holding the bag every time. And I say they're all motivated just by holding it because of negative cash flows, wherever the taxes are, that the pay that every year, sort of lose it to the tax sale. So they have this this, think of it think of like an acre that has anchor behind them that just have to keep pulling with them everywhere they go, doesn't matter where they live, they just keep dragging it. They can't sell it, they can't get rid of it. They don't want they don't want to they don't want to let it go either. Because it's it has value. But there's going to drag it with them for the next 20 years. And it's just there. 26:21 So the no cash flow. I thought that's what you were gonna say, the no cash flow, you love that because it creates it helps create motivation. And it's the motivation that creates the opportunities for you to negotiate your owner owner carry stuff. And that's the 26:37 other thing too is will tell him like, hey, you've been carrying around this this property for 30 years, let's pay you monthly and turn it into cash flow for you. Let's unlock it, I got the key that solves problems. 26:49 What's your best way to find these these sellers? 26:53 You're gonna laugh at me. But MLS 26:56 isn't really. So what's listed? So isn't it hard to negotiate when there's an agent, the middle of it, though, 27:03 waits for the agent, the agent wants to get paid. So we tell the agent, we have agents on our team, hey, we can pay you a 6% commission, and we'll buy this property if you help us get this get this thing going. And they're like, Okay, and remember, a lot of these properties are on free and clear. So they get their commission seller, you can tell like it's really what they want. It's a numbers anchor that doesn't cash flow. So you're solving a lot of problems. And then we we make an offer we wait. So we taught students make an offer and wait to come back around. There's no buyers for this. There's no buyers that buy it. So it just it just sits there. You make enough offers and you wait and they come back around. 27:47 So if there's no buyers, how do you sell it? 27:51 We create value. So this is for the apartment investors for all the apartment investors we value add with paper. 28:00 Okay, you go. So 28:01 apartment investors that the value add by increasing ROI NOI and decreasing expenses. That's how you create value add or build more units, you know, to a physical property we evaluated with paper, so we buy a $5 million Ranch, who has $5 million by Ranch, probably 100 millionaire who can afford it? Well, how do we make that affordable? Well, we might take that $5 million ranch and sell it into 10 parcels of 500,000. So we cut it down into affordable prices to the regular public where more people can afford it. And that's how we divvied up. So usually the normal plays we do let's say $2 million property. We can we can look at the value, a million dollars full price, we can subdivide it and sell it for two if we just cut it down. Arbitrage so we're finding ever 28:57 have any trouble with the cities? 29:01 No, I mean, every city has hoops you have to jump through to solve the problem. And it's just gone through the hoops. And we tell real SSOs Hey, we'll give you your price. We'll give you your price. It's gonna take this amount of time to solve it. And we'll close 29:17 my see. So you don't close until you know you can execute on your strategy. 29:22 We might even put the money we'll sell all the properties before we even close. 29:29 Yeah, that's amazing. So later literally, like quite literally you take the risk out of the deal. 29:36 I mean risk there's risk and everything but I guess 29:42 well if you already have a buyer for when you bought when you buy it, I mean it kind of eliminates virtually eliminates the risk, doesn't it? 29:49 So we have a deal right now. It was it's owned by two of the best top brokers in the city. They're the top they sell the most houses. They're owned by two broker's, they hired a land broker to sell it, they couldn't move it. We came in, we almost sold out all the property, we're closing in the next 30 days, we're making a million dollars on it. And the agents are okay with it, because it was costing them $6,000 a month to carry this thing. And they've been carrying it for years. And whatever they were trying to do didn't work out. Now they're trying to move it. And no one can move it. So we're coming with our, with our magic key to unlock it. And we're making a lot of money on it, even to the point where we talked about it on stage about two weeks ago, and somebody from the audience called them and told them and then we met with them afterwards. I'm like, hey, yeah, somebody told me you showed the deal on stage. And they're totally okay with it. That's hilarious. But I have to be because you have an agreement, right? Yeah, we have an agreement. And I mean, we already told them what we're doing and how we're gonna do it. 30:53 Okay, so you speak on stage, you have your podcast, you sounds like you have students? I didn't know that. So like, where do we start? And tell him tell me about the students you gotta like, program you you're selling and what is this? 31:06 So we do, we have million dollar land mastermind.com. We teach and educate students on how to a find the deals. We started marketing for sellers about 12 months ago, and our students find them or we find them on MLS, so we haven't like marketed to sellers in almost 12 months. And our students are getting really dangerous at finding this stuff on MLS, because it all just sits there. Go go to the listings, with the acres with a million dollars or more sitting down last six months or more. And they're all primed and ready to go. And no, no else, no more waiting involved. 31:45 So this is land mastermind, this is a 31:48 billion dollar little mastermind.com. Millionaire, million dollar, 31:52 million dollar land mastermind.com. Okay, we'll get that in the show notes. So then someone can reach out to you there and like, if you want to if they are going to, if they're going to want you to help them with this, do a little hand holding, they would go there and you're able to do that. 32:09 Yep. So the we actually prefer to like a lot of wholesalers, we tell them like, Hey, don't contract this thing. Because a you're not going to give us enough time and land doesn't move. So most of our contract periods we lock up for like 90 to 180 days minimum. So imagine a wholesaler that had lakhs of houses and have to build the house in seven to 30 days. Imagine if he had six months. That's what we do. We lock it up for extended timelines. And we're okay asking for those timelines. Because most developers, like if you talk to Dr. Horne, or lonar, they're asking for 18 months due diligence at monitoring. So ask asking for six is nothing. 32:48 Yeah, 18 months, and then they renegotiate with you? Yeah. And then 32:52 they'll renegotiate with you exactly. So we have we have a couple of deals. It's crazy. We have a 15 acre commercial deal that we can make like $4 million on one deal. It's freaking nuts. We have this just if the deals we're doing, it's literally insane. And I don't know how we got into this rabbit hole. But I like where I'm going. And this is going to be crazy, fun ride for the next couple years. So 33:21 you want to go you want to go say alright, Jalen, because of you. Here I am. Thank you. So what does that look like? Like, tell me? Where are my standing right now in order for me to go out and say thank you to Jalen. So 33:37 we're in the midst of starting a fund. And a lot of what we do is fish in a barrel. So there's billions of dollars ready to invest in land and house houses, single family apartments, there's all the money in the world to buy every asset out there. But there isn't for land. So a we have to create the VA investment vehicle right to invest in land. So we're, we're in the midst of creating a fund over the 10 year be up and running, we're gonna raise money before the deals that we already have on a contract, and then close on this deal. So our goal is to try to raise $100 million fund and $100 million dollars sounds like a lot. It really does. But I just looked at a $20 million ranch in Missouri. And we're looking at another one in Texas, two $20 million deals there one deals. So like $100 million, isn't really a lot to isn't really a lot when you're doing bigger numbers. And it's really hard to get to that number in houses. It's really, really hard unless you're doing California, which is $21 million houses. But even that's a lot for calibrate for doing flips, but with this, it's very, very possible and within the realm of possibility and there's plenty of them out there if I just look for a million dollars plus in any market and there's gonna be a ton of them. 34:51 I think I know the answer to this, so maybe I'll lead with that. But I guess it's okay to have 20% of your portfolio in one project. If you're Are you able to execute on the exit? Right? Like we talked about earlier, if you could take out a lot of the risks, and it's okay to be pretty heavily weighted on one project, is that what I'm hearing? 35:10 Well, the other part of it is amplification of money. So I'm not asking, I'm not buying that $20 million with cash, I'm going to ask for, maybe start financing with 25 to 2.5. Down, you know, and I'm gonna, I'm gonna amplify the money I have already. And because I already know, no one's making an offer on that $20 million property, we just talked about million dollar properties, imagine a $20 million property, it's just gonna sit there. So if I have the ability to execute, with two and a half percent down or 25% down, that's gonna make them say, No one's even even making an offer. Yeah, I'll take 25% down, and I'm just gonna leverage it again. 35:48 Okay, so even if you're at 20 25%, down, you're still around what two and a half percent, I'm at my, my math might be wrong, but somewhere around two to 3% of your total portfolio into one asset. 36:02 But here's the other thing too, is that, that value, we're always looking for two to three 2x plays or more. So if we're gonna buy it, for 20, it's got to be at least we're 40. That and then we can unlock it with a special key we have their subdivision. So imagine can take control of a potentially 40 million $50 million asset with two and a half million, or 20. Earth or for 5 million. Yeah. 36:29 Yeah. So if it's 5 million, you'd be a 5%. For Yeah, that's pretty crazy. So that's how how's it going with the fund? Are you still working with the with an attorney to get it set up? Have you started? We raise or where are you at? 36:42 We're doing soft commitments right now. And we are in the midst of starting the paperwork with the fund to get the attorneys up, they'll say 240 weeks to get it up and running. So we're our goal is to have it up at the end of the year, with loosely time time restraints, but it's going to be crazy. And I'm excited. So that's the conversation I want to have with Jalen is like, hey, we did, we started, we ended down the land niche, we created all this thing, we have this fund. Now we're buying all the land deals from our students and all the other land people out there because mostly investors can get capital. So imagine if we can do that for everybody that's in the land each that does the same thing we do the operation, we're the new buyer will buy everything. 37:20 It'd be like, Hey, Jay, like you helped me create this home what you want to come invest in it? 37:25 Well, I mean, I might just throw a pointer to it just for the for the, for the investment, you know, there's there's a lot of crazy things that we can go and, and wait until it gets it gets good. Like right now it's good. But I want to see as it gets really, really good. You know, 37:42 but you clearly have a passion for a band. It's fun. 37:45 Land is land is very, very fun. And I like it because it's such a misunderstood niche that there's so much opportunity. And like I can literally stay in Texas the rest of my life and I would never run out of deals. And there's a whole nother 49 states out there. 38:03 We are the biggest state in the frickin country. While 38:07 I'm saying I can literally stay in Texas my whole life and never leave. And I will still be in huge opportunity. 38:15 We're in Texas, are you? 38:16 I live in California. 38:18 We're in Texas are you investing? 38:21 Everywhere. I got deals. We got deals from South Texas. From by corpus. We have deals from East Texas, the marshal, we got deals. We're looking at one and by Oklahoma. We got deals everywhere all over Texas literally everywhere. 38:40 And we are most your students from there then? 38:42 No, I got a student that we just we just didn't we do an annual event. We just we did a lot. 38:48 Is that where you were speaking on stage? 38:52 Yes and no. So we had an annual event last week. And then on stage. There's another vet in San Antonio that was there. Someone else invited us to speak at those 500 people there. We spoke there two weeks before our event. So I was just in San Antonio twice last month. But we have students from out of student drive down from Chicago to go to our event in San Antonio. So we have students all over the place and they're doing all this stuff virtually. So one of the cool things about land is you don't have to like live it. You don't have to be there to see it. You can send somebody give drone shots you can use I literally saw my first land deal I sold with Google Streetview no professional pictures. Nothing I literally went Google Streetview put the address and I screenshotted the my homescreen and that's what I put on Facebook 39:37 marketplace that was that that was that 4500 foot lot or something? Yeah, 39:41 it was that 5000 square foot lot. That's awesome man. But like literally, I rarely see the land we sell. I mean we sold a lot in Florida. Still never seen it. We made like 50 grand on it. We're projected to make 100 and we make a lot bigger spreads and land to like I just saw one of our old clients, he now teaches one of his students made 50 grand on his first deal inland. Like you have to do a flip for that. And most of the most Yeah, exactly. And you can do that inland is crazy. 40:13 That is crazy. And you don't have to worry about the contractors and showing them to work and getting the kitchen remodeled and all that stuff that we all love. Yep. 40:24 So this is the crazy part, like, ever is like, land. Well, how do you find comps? Well, that's the fun part. There's no verifiable comps. So you sell it for whatever you can sell it for. 40:36 And you don't need comps, because you're not you're you're selling with owner terms. So you don't need appraisals. And then someone's willing to buy it for like, 40:44 this is a funny story too. So that $3 million deal. We offered him 336 month financing, like, hey, we'll put 10% down 36 on the financing. And he's like, I need to talk to my attorney. Because I'm pretty sure the law states that we have to do a minimum of five year balloon. So he talks to his attorney. And he's like, Yeah, let's do a five year balloon. But that only counts for houses. With land, you can do whatever type of balloon you want. 12 month, 24 month, six months, whatever you want, because you don't follow Fannie Freddie laws. So literally, he went to his own attorney and his own attorney recommended that he do five years and we're at three, so five years, just an extra 24 months. Yeah, exactly. So we don't have to follow Fannie Freddie laws, we still use the Armello. And we underwrite the buyer, and all of our buyers they're usually come in cash heavy with cash or their financial. So it's me, I'm 41:39 gonna look into this man, I'm gonna look into Facebook marketplace for my lot down in New Mexico, offered us some terms and see if I can get that thing to cash flow. And then I'm gonna send you a note saying Hey, Daniel, thank you for the advice. Now I'm cashflow on 41:53 certain Lana, the cash flow. And one thing I love about land is you get straight pie. No management No, like you have to pay the note servicer, that's it. And you can make the you can make the buyer pay for 42:03 the you can service your notes Kenya. 42:06 I mean, we can but why would I want to 42:12 just cashing checks. I guess it's easy for me since I'm a lender, we already have all that set up. So yeah, we 42:17 don't have that set up yet. We're getting there. We're getting there. But we're getting we're getting there. 42:24 We're getting Yeah, I'm sure you are. Alright, man, I'm going to hear about your podcast, I want to hear about your events, and then we're gonna have to wrap it up. So tell me about your podcast. 42:31 So we have over like 420 episodes out right now. It's called the hive with us HIV E with us.com. And we're on all platforms. We've been doing that for two years, I just really went deep into the podcasting game and I really enjoyed it and love it. I've been just like producing a lot of content with that. As far as our events you can go to the hive is live.com/summit 43:01 and that's five is live.com/summit 43:04 You can go there and you go to the highest level.com You can see all our stuff, you can actually buy all our recordings for all three years. If you missed it, we covered a lot of cool stuff. One thing cool about our events is there's no pitches. It's just straight content, straight fire from the sources. 43:21 So you you do a lot to help the investor community and you have students here that are out there making money making 50 or more grant a deal sounds like 43:29 I have right now that's making seven figures on a lend subdivide 43:35 and that's kind of make you feel good. You're literally changing people's lives. Oh yeah. Yeah, 43:41 this is pretty that's why I need more like like this is getting good I need I need more spending more ammo to the when I go to jail and see. Yeah, 43:48 okay, well, you're doing pretty well man. I don't know he probably heavy happy to hear from me now. But I get it. I get it. But wait. You have to let me know how it goes. When you do reach out to him. I 43:57 will video it because this is gonna be it's gonna be interesting conversation because I doubt he even knows who I am. 44:03 Probably not. He's not even in the game anymore. He's out doing something else. So he doesn't know that he impacted you like this. That's what I'm saying. How good would that feel for him? Yeah. 44:12 So annual event. And then if you more well more land investing million dollar, million dollar land mastermind.com. If you're interested in like weekly calls, go there. We'll have somebody there. Talk to you about it. But we have a course songwriting. He got a hive mind CRM, the IO, you can touch it and you'll get emails and stuff. Because automation helped us automate. That's what the hive mind is the first product. We're coming out with a book. I don't know it's probably next year. There's a lot going on. 44:44 How many people on your team? 44:48 I have a whole I run a whole software company so I have six on my side. On the real estate side we probably have about 10 is our machine Soon to be better suited to be better and bigger. 45:04 I love it, man. You're so positive and, and you know, there's room to improve but my gosh, you're doing well. 45:09 It's gonna it's gonna be an interesting year next year. That's why I say it's gonna be we're gonna have to stay in touch for sure. Yeah, it's gonna be interesting year, I think this year, we'll probably we'll probably be close to like 10 million and acquisitions this year. Which is crazy. 45:23 That is crazy. Because I know what your margins are. What the What's the revenue number, and that's pretty, pretty good. 45:31 That's good. It's gonna be interesting. It's gonna be interesting year next year, because on the funds in place, we've had deals fall through to this year, which kind of hurt a little bit, but next year is gonna be interesting, because now we're going to solve that money problem. And it's going to be interesting year next year. That's all I'm gonna say. So stay tuned for hivemind 2024. It's gonna be it's gonna be interesting. We 45:50 will definitely do that, Daniel, any closing thoughts, anything you want to share before we wrap this up, um, 45:56 you build your content after you build your infamy up the content you create. That's my quote. So we go out there and produce content. I always say thank you to the podcasters out there, they're produced because there's more consumers than there are producers. So producers out there, thank you. And then the other thing too, is go out there and make a difference. Man, there's a lot of there's a lot of ways to change the world and just kind of find your niche and find your gift and lend it out to the world because you can do some damage with it once you find it. 46:26 You're good dude. Man. I appreciate you taking your time and and joining me today. 46:30 No problem. Take care, buddy here. 46:33 We'll catch you later, Daniel. Thank you. Hey, guys, I 46:36 hope you enjoyed this episode as much as I did. If you did, please be sure to follow and leave us a review. Oh yeah. And tell a friend