Ep 473: Maximizing Land Value: Strategies for Transforming 243 Acres of Raw Land

In the conversation, a land development strategy is discussed for a 243-acre farm purchased significantly below the market rate. The initial plan involves subdividing and quickly selling the land for a substantial profit. However, a more lucrative approach is considered, involving obtaining necessary development approvals, such as water and electric services, along with conducting essential studies like drainage and flood assessments, despite the high costs associated with these processes. The conversation also delves into the complexities of water availability in Texas, affecting development density. Alternative strategies include collaborating with builders and developers to finance and execute the project, potentially raising the land's value even further. The speaker outlines creative financing methods, including using funds to secure large properties and leveraging networks to realize these development projects. Text 📱 210-972-1842 Text 📔 "Course" to learn how to make 6 figures on one land deal. Text ✴️ "Hive" to get added to weekly meetings. Text 🍎 "Apple" to schedule a 1-on-1 call with Anthony & Daniel. Text 🛬 "Land" to join The Million Dollar Land Mastermind 🔍 Need Inbound Real Estate Leads. https://www.hiveleads.io/ 🔍 Follow Us on YouTube https://www.youtube.com/channel/UCbulcrC4WbOy5Fzu0eWzNVQ/?sub_confirmation=1 🔍 Follow Us on Instagram https://www.instagram.com/hivemindcrm/ 🔍 Check Out https://www.hivemindcrm.io/ 🔍 Check Out Our Land Mastermind https://www.milliondollarlandmastermind.com/landmastermind 🔍 Pick Up All Event Recordings here. https://thehiveislive.com/recording 🔍 Follow Us on TikTok https://www.tiktok.com/@hivemindcrm?lang=en 📍Join the FB Group https://www.facebook.com/groups/137799891494707 📍 Check us at Join Us! https://thehiveislive.com/ Help support the show. https://anchor.fm/hivmindcrm/support

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Transcript

ments in your hand on Raw land like

agricultural unrestricted land so we're

getting a farm it's 243 acres and that

land I got it for 8, like 200 an acre

when everything in that area is going

for 20 to 30 an acre plus right 35 an

acre plus so we already bought it at

like 20 cents on the dollar or something

right so that there's one level of value

there then you just bust it down into 10

you sell it quickly for 15 bam you make

$2 million in six months or whatever or

a year and everybody's cheering for you

and how happy they are for you but you

know if we if we go through we file some

documents we talk to the water company

we talk to the Electrical Company you do

a drainage study a flood study you know

Road elevations that kind of stuff take

a few months then you take all those

documents to the county to the city to

everybody and you say hey I I want to

build a neighborhood it looks just like

this here's all my specs and then they

look at it they look it over they say

well damn everything looks good let's

run it so now they give you like a a

certificate you have a letter from the

water company that says that we're going

to provide you know 82 meters to This

Land Based on the plans we saw same from

the electric company right they send you

a letter that says hey you guys are good

for 150 meter poles inside of this

subdivision you have those letters

signed sealed and delivered ready to go

and then you have your approvals to

break ground with the city right so you

can start your road start dropping in

your water lines and mind you that that

depending on the project the paperwork

needed for that could be six figures

plus so I think quote we're getting on

this one is like

250,000 yeah so that's the value right

so somebody's like why doesn't the

seller just do that themselves good luck

knowing everything to do right and then

also good luck having the money on hand

right two 300,000 and this could all get

shot down right you go you spend a two

or 300 Grand and it turns out nope the

electrical no matter what they cannot

provide electricity to your property

there's no water you're suck yep there's

no groundwater you'll see some of that

in north Texas you won't see so much of

it around San Antonio there's a lot of

groundwater here you know that's another

value that I think people are not seeing

that are in this business is right now

you got to have water to be able to even

build a neighborhood and in Texas you

know there's not that many veins of

water you know like aquafers and all

that so San Antonio is massively

massively underpriced right now

but in that scenario you would we would

do that all that due diligence to to

make sure that you know we don't clo on

something without checking those boxes

I'm assuming yeah right and that's a

correct F to buy real estate but

something that we're doing right now is

we can afford to roll the dice because

this is our backyard our backyard and we

already know what's happening I can tell

you where the water is so I know for a

fact when I buy that property we're

closing on this Ranch before the due

diligence is over no matter what right

but I know that we're going to do it

because there's I know potit has tons of

public water and then I know that if

potit doesn't give us public water that

if I go down 13 most Wells are 200 feet

300 feet that's it if I go down 1300 ft

I'll hit like the biggest part of the

aqua for like an ocean so that means I

can throw a lot of houses up around

there so that tells me that land is is

prime prime prime prime because I can

get density there because there's so

much water

there if not oh man we got to do five

acre lots now because said we can only

get 10 water wells on the whole property

so now lot of profit going to five acre

lots right now 30,000 acre lots yeah and

mind you we're getting steal for 8,000

so it's a 3X still yeah so plan a was to

sell it all as is in big chunks without

doing any development and try to make

like a millia cold melee quick you know

six to 12 months

flat but now that we're going to run 300

$500,000 worth of paperwork on it get

some soil testing done do a drainage

study all that crap we might try to sell

it for like six to 7 and a half million

you know and try to wholesale the deal

for 2 million cash to us or plan C is uh

we just go ahead and break ground uh

start go ahead and just start clearing

the road start dropping the water lines

in you know just get ready to go to war

and then I'm I'm half expecting you know

when you're calling it around to a

developer and saying hey I got this

property want to

sell I I did I posted on Facebook I said

hey I want to partner with Builders who

would want to throw their houses on my

lots and we both get paid at closing bam

I got like 15 phone cost to

make

um so what I'm trying to do is similarly

find a developer who will fund the uh

the construction of the roads and all

that they'll be like oh how much are you

selling these lots for how many of these

how many houses can I borrow or how many

Lots will you sell to one person I don't

know buy a hundred and the guy's like

well you know what I got to do well help

me throw this damn road in for starters

you

know do you have 500 Grand on you I

could borrow that would help a lot and

then I could sign a commitment to say

hey I'll give you all of Avenue E if you

know you throw me in a mile of

road right right yeah yeah so I'm I'm

kind of reverse engineering the funding

on this bad boy that's that's pretty

that's freaking creative right there I

love it that's awesome yeah I'll give

you lot you know I'll give you this lot

and then you you know you do this and

then he's getting value because he's

getting you know it's just it's a barter

CU how to Builder got to make money they

got to go find the land they got to

entitle it they got to wait two years

now I can finally build 20 houses and

make $4 million but if I say hey you

don't got to do nothing I got 20 Lots

right there you can take them all but

all the slabs have to be poured all in

the same 30-day slap 30-day

window you know so they got to commit to

building all 20 at the same time you

know that's what I'm looking for is

there people that have a big wallet with

that we'll find private money guys we'll

find developers you know all that stuff

right so and then so if we could use the

fund money to tie one of these deals up

right let's say it's a $3 million Ranch

the fund puts down 10% 300 Grand and

then we go to work with all this network

of Builders and developers um let them

fund it all out and we're just do our

value is we negotiated the deal and then

now we're starting we're filing all the

paperwork we're doing all the testing

we're ready to go like we're seriously

playing we're going to break ground with

or without you but uh yeah to be able to

attract outside capital for them when

they see what we're doing they see the

value in it like hey you know this

Builder specifically for Luling area but

he's out of lots and you say hey well I

got 30 coming up he's like well damn how

many can I buy hopefully all of

them yeah no that's awesome that's great

Insight

[Music]

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!

Anthony Gaona

Host/ Ceo/ Speaker

Hi! I am Anthony Gaona.
I’ve been in digital marketing for almost 15 years.I grew up in construction working for my dad when I was only 12 years old. Normally we had a ton of work or no work at all so a lot of my free time was spent learning how to generate leads.

It didn’t take very long for me to master online marketing because I became absolutely obsessed with it. For the last 15 years I’ve been generating construction based leads. At first I was running the projects myself. This led to sub-contracting all of the excess projects and eventually wholesaling the leads off to other construction companies.

One day I was preparing to build a single family residence for myself. In mid December, 2018, a simple YouTube search led me to the term wholesaling and the rest is history. The plan was to use my construction background to start flipping houses. By January 1st of 2019 I launched several marketing campaigns both on and offline for real estate seller leads.

Within about 4-5 weeks I had my first real estate contract locked up. It didn’t take long for me get a land lead where I made almost a full year’s pay on a single transaction. This came from a land lead and that forever changed my life.

I ran low volume larger land deals for the first two years of my real estate career. Like anyone who has been in real estate investing for an extended period of time, I started thinking about scaling my business.

Instead of deciding to vertically integrated and start hiring I imagined a model where I would teach my real estate investing method… Read More