Ep 480: Earning $3 Million from a Land Transaction While in the Car Sales Business

Transcript

we have a special guest Jesse gimnez

how's it going

guys so Jesse gimenez is a known Jazz

man who loves to play the saxophone but

he also does Real Estate I do I do we're

going to talk a little bit about a

little bit about everything um how long

have you been playing the saxophone I've

been playing a sax for probably

25 25 years so I I haven't had the

pleasure of hear hearing him play

completely in person yet and I'm I'm I'm

really saddened by that he probably's

going to pull out the jet the saxophone

like he's probably in his truck

downstairs experience it was dope hey

you don't not miked up you can't be

speaking in this interview all right

yeah I forgot I'm not here guys Anthony

is not over there on the couch this is

just me the cameraman and Jesse so don't

mind Anthony he can't see he's not a

part of this

conversation can't even see

him

so for everybody here uh Jesse is a big

land man so you've been in real estate

for six years yeah six years yeah six

years um now Jesse we spoke a little bit

in the car but he's got a sales

experience from being a car salesman

right how long were you car in car sales

um so total of 18 18 years 18 years yeah

so there's good real estate people in

car sales so if you're looking for a

good salesperson Acquisitions yeah

they all car sales yeah Car Sales I mean

that's a lot of uh a lot of people in

real estate that I know I mean they

started in car sales to some capacity

and some of them actually started even

beyond that point even like from the

service department they'll go from

service department kind of learning that

part of it and then they'll just

transfer into sales because service and

sales is right next to each other okay

and then they'll just kind of Dive Right

into sales and then learn that part of

it and the the the service department is

like a totally different animal than

sales sales of course you know it it can

take a little bit to kind of get get uh

familiarized with the nuances with with

whatever you're trying to sell but

afterwards I mean it's I mean you can

run through it for years on in and be as

successful as you can push it I mean you

can make some really good money so I did

that for about 18 years and uh the last

four years I um I dipped into real

estate okay and um I started with the

idea of wholesaling okay right and to do

that I said well I need to get my feet

wet I need to understand kind of what's

what what what are the fundamentals of

of of getting into that with contracts

with clients with with laws uh

everything around it so I said well I

got to be an agent first okay so I I I

did that I got my my my real estate

license and then by doing that I also

pushed my wife to do the same thing okay

so she's she's an agent just like I am

and we were we were kind of doing the

same thing for a little bit um and then

shortly after I said okay well let me

let me dive into what I originally

wanted to do which is kind of

wholesaling and I did a couple

residential deals uh under my belt I did

a small little land deal after that and

uh shortly after we came into a u a much

bigger opportunity and then we'll talk

about that one we'll cover that in a

minute yeah so if you have listings send

it to Jesse I'm just kidding he he

probably hates that part of the job now

send him I I'll take them all

man I'll take him all I always like

messing with the agents because most

people most agents like they hate the

listing side of it especially if you're

like an investor side yeah semi listings

Jesse loves doing showings oh yeah yeah

oh yeah all day long just call me

anytime I'll be there I'll be

there that Michael Jackson song so uh I

I want to cover this too so you said

you're doing were you doing both car

sales and real estate at the same time

for years same time yeah so it was it

was insane dude I will not recommend

that part but if you must and that's the

only way that you can make it work then

do it uh cuz you you just got to put

yourself out there but yes it was it was

a it was a [ __ ] sounds painful yeah it

was U doing sales in cars you know

making sure that you're taking care of

those people while you're trying to do

real estate and trying to uh tend to to

to those clients as well at the same

time sometimes I would get calls from a

car situation and then five minutes

later it's a real estate situation at

the same time and then I had to figure

out how to do both yeah switch hats

again right immediately and you you you

have to do it um but I mean you just

kind of have to learn how to knock it

out so one one thing I I love about this

is that um it's never easy starting and

it's always painful there's no uh quick

easy button into real estate especially

land um with with it longer timelines um

but how he did a bigger transaction how

many transactions did you do before that

bigger transaction we're going to cover

that in a second so I believe it

was so five so I did five of them and I

could have done more but because I was

so tied into with the whole car industry

it uh it held me back quite a bit so I

was kind of like weeding my way through

just kind of learning one after another

learning kind of the ropes and

understanding what I should shouldn't do

and I'm a guy that

um I tend to learn from the sidelines a

lot okay and it's not that I'm not a

risk taker yeah but I am I do calculate

my risks as much as I possibly can but I

learn mistakes from other people as much

as I they can as well oo that's good one

so that's the that's one of the ticket

things that I've sort of ingrained in my

Essence it's like I I I want to be

successful but I also want to do it in a

way where I can actually um get to the

objective because the one thing that we

don't have is making too many mistakes

because we don't have that much time

time is the one commodity that we don't

have absolutely right so we can't go

back try again and try again and try

again and try again and try again 10

times over and do the same mistake so

most most people don't have that luxury

right so you know I said well slow

yourself down learn from the sidelines a

bit get as much information as you can

and learn from the greats be around the

best of people that you can and learn

from them just absorb it all and he you

and and then

bam hear

me no it's uh I I think the the the

power Network because you can fail a lot

right very easily if you don't have the

right uh counselors around you to guy

didn't point you in the right direction

oh absolutely so I I think it's it's

definitely Paramount to especially you

talk to people where you go who you talk

to people who are in front of you of

where you want to go yeah and that

usually opens up that path to go where

you want to go and follow their

footsteps right right so a lot of people

like I'm going to be a Trailblazer and

start this whole new thing and I'm like

don't do that find somebody ahead of you

literally follow their footsteps and

they'll guide you the direction they

want to go because um you you learn a

lot without having to trip over

everything that's in your path right so

it's huge oh yeah so we're going to

cover the big deal what's the big deal

that we're alluding to the big deal with

the big deal yeah the big deal so mind

you this is five transactions in as an

agent right while doing car sales and

this deal totally transitioned your

whole life so so going back to that so

five deals I did as as as sort of

wholesaling yeah um while I was doing

some other transactions as an active

agent so I've done a couple more in

between that but as the sixth wholesale

deal um this came up uh with an

opportunity with a um a client of mine

actually from Mercedes from

Mercedes-Benz at the time yeah and it it

sort of it was something that took

probably about a year to kind of have it

all pieced

together um prior to the execution of

that deal it was a conversation that

started to where um the client just came

in and said hey um my husband is

possibly going to inherit a property

that we don't know what to do with ding

ding ding ding yeah so from that

conversation I said well what does that

look like I mean what what is this and

she said well I don't have the details

yet but I would like because of your

service with us yep and the Rapport that

I have with well she didn't say the

Rapport but um you know I'm from the car

yeah so she basically said because of

our history with you I'd like for you to

take a look at it since you're you're in

real estate as well and it's crazy

because I had my real estate card next

to my car business card at the same time

so I had a lot of people picking both

cards at the same time it was it was

pretty cool I was like double dipping

and and they were they were nice enough

to let me do that um but that was kind

of how that started okay and then every

couple months every six months she would

come in for a service it' put a lot of

miles and i' know just say what's going

on how you doing didn't really touch on

on on the uh that yeah I didn't I just

left it alone and then I remember the

husband came in finally cuz he was

really busy and he said hey I think my

wife told you about this situation and

um yeah I just inherited the property

and um here's the address I don't know

what you think we should do with it

whatever whatever um and that was it so

it went from one from that stage to

within 48 hours I set an appointment

with him we went out to to take a look

at this property so what what was it how

many acres it was about

112 113 Acres okay outside Austin um no

within Austin within Austin yeah it was

within within Austin uh within the

Austin perimeters and um so after that

we went out there took a look at it and

um you know he said hey what what do you

think you can do with it I mean what I

don't know where to go from here yeah I

want to get rid of it but I don't know

what the next step is and what do you

think so I said well I don't know that

yet give me a couple of days and I'll

get back with you with some options so I

did my due diligence I talked to a

couple Brokers a couple of real estate

friends uh some land people at that

particular time and uh I did my due

diligence as well in regards to doing um

sort of like a CMA right just kind of

going over what's around it just kind of

checking at at other comps and I

gathered so much data and I compiled it

into a spreadsheet I mean I had a full

presentation on this thing okay like

from top to bottom um and then I I said

you know based on everything that I that

I put together I think this is a

probable gauge on what the value of this

property is is might be might be uh

coming up to and he said well I think

that'll

work and in his head we were we were

um we were I mean we were off by maybe

less than 5% based on what he was

already targeting thinking okay yeah so

he said I think that'll work let's let's

go ahead and go with this and I said

okay well let me see if I can find a

buyer that can pick it up for for that

amount um so the next week we started

kind of taking pictures getting drone

shots putting everything together um

just kind of sort of creating a campaign

yeah and um after that you know I

started you know shooting it out and

doing a sort of a a dispo thing on it

and and by yourself too right you're the

only one working this deal so I was the

only one working this deal just on my

side yeah I had I I did um have some

help uh with the dispo but as far as

doing AJ on this it it was just all me

there you go it was just all me um so

that's basically what happened we closed

in in about 45 days and uh we captured a

um a almost about a 3 mil net in

that amazing mhm amazing so so I didn't

hear the full story I thought it was

only one no that's

crazy no was a little a little bit more

than that no no that's a little bit

more that's crazy man it's pretty good

for a new day no and that's that's what

I'm saying I really want to dig in on

that so you had no experience messing

with big land no idea you got to seller

their price and this is what I really

want to hit on too you got the exactly

what s wanted right you got the upside

you did all the work you figured out

what to do and I think this is one of

the things entrepreneurs you got to

figure it out no one taught you no it's

figuring it out and it's I believe

everything happens well number one yes

everything happens for a reason but I

think everything has to come to the

perfect timing and situation timing

situation yeah because there's a lot of

deals that come together because of

timing situation resources and just the

it's just the right concoction at that

same time Y without those variables you

don't really have much to work with and

sometimes it'll you'll have a deal

you'll have it under contract it'll

backfire you because of other variables

that you couldn't control a lot of this

I will say that yes it was the luck of

the draw but right place right time with

the right people uh right relationship I

think solidified that relationship

through sales so so all those things you

have to really it it's a slow steady

burn as I say slow steady burn just just

don't rush it massage it as much as you

can if it's meant to be it's going to

come to be with the right situation I

mean everything has the everything has

to come to fruition as it should be when

it does have everything that it needs

underneath yep that's it um but um yeah

going back to that it was um it was like

I said like 30 to 45 days and we were we

were able to close that uh that guy so

amazing amazing that's such a crazy

story

um I think I I I commend you for the

follow through and just the because you

did you did all that front end due

diligence by yourself and this is one of

the things where like I think a lot of

people need a lot of help but there's

people out there that can figure it out

themselves and I think this is a

definitely an atonement of of you just

figuring out yourself cuz there's a lot

of nuances that come with land now that

you got more experience you completed

that deal you've done all the research

now we're looking at more opportunities

yeah there's there's certainly more in

the pipeline but it's one of those

things where like

that one experience changed your whole

life you you probably quit your job the

next day and you're like not quite I it

was it was probably a year after that

that that I you kept your job for a year

yeah I kept I kept it for a year you

know and and I'll tell you why you

trying to roll the dice again well I

mean it's always I think the car

industry will have its perks and one of

the perks is going to be that your

connection with those clients yeah you

never know what you can get in associate

with those connections okay you know

it's it's like again it's it's it's

you're killing two birds with one stone

because the the guys that are in there

at least the clients that I was working

with yeah they were at a sort of a you

know the I guess they're the caliber in

regards to their finances um there were

you know several teers out of what the

norm would be um and because of such

usually they they

had a massive real estate portfolio most

of them did can you tell what dealership

you were working at at the time so this

was mercedesbenz and a okay so you're

working at a higher end yeah car

dealership so you're the caliber people

coming in they they can afford it yeah

yeah yeah so they can afford that and

they have they have so much to talk

about right they they they're business

people most of them and they'll just

open up if you talk about something that

they really like to you know um even

doctors they come in I mean I'm not

going to talk about anything biology or

you know you know or anything of that

sort with them that's not my forte but

if I say hey what do you drive okay

we'll talk about cars where do you live

okay we'll talk about you know your your

house here or maybe your house in CBO or

whatever and then we'll like slowly get

into real estate from there how do you

do you own any more or any more

properties do you have land what what do

you have oh no I have this that and the

other and you know I'm about to buy this

and get and then we'll get into even

more stuff and it'll just open up a can

of worms and well I didn't know that you

did that either let me let you talk to

one of my other buddies because he's

trying to get rid of his and opens it up

opens that up and then I'll talk to him

and then he has it's like did you get

any other deals off of being a oh yeah

okay wow oh yeah yeah yeah yeah that was

that was well that was the biggest one

but I had probably one two three four or

five others after that wow okay so I I

that makes sense why you'd stay in and I

think we spoke about that in the car

like getting Sal car sales people to

switch over to real estate and keep both

jobs because you saw the Ben you saw a

huge benefit there's a benefit yeah but

to to to properly juggle them that's the

best where yes where you are giving 100%

to both sides is really difficult really

it's really difficult so maybe husband

and wife spouse here and kind of ticked

on one side and well she was helping me

for quite a bit on that and uh now she's

she um she opened up her irrigation

company okay and actually today is the

first day that she announced it so if

you're watching this it's for you shout

out for

you um but yeah she's she's doing that

her and her dad they have like a little

irrigation company going on and he's

been doing for like 30 years so she's

passing he's passing down the torch

she's picking it up and she's kind of

roll with it and they're both licensed

irrigators and she she does um back flow

as well um and uh she's a realtor too so

helps me when she can and um do a little

bit of everything now sounds sounds like

a cohesive

relationship except when she's pissed at

me then it's no longer cohesive and it's

a it's it's a bunch of pillow throwing

and U at least it's a pillow at least

it's a pillow

right oh man so um let's talk a little

bit about uh new stuff that's working on

so you're now pivoting into larg larger

transactions because I think that's

doing one of those it kind of knocks out

the the fear of doing a larger

transaction you figured it out so you're

you're doing bigger transactions now can

you cover stuff any's working right now

as far as like larger transactions yeah

so we have um tentatively we have a 50

acre track that might come to fruition

that one's going to be I think on I 10

um and that one is a couple m in that

one so that one's kind of um coming to

fruition and then I have one that's

already out there and that one is a 26

and 1 12 acre track that's very close to

um Austin as far as kind of the

centralized location matter of fact is

down the road from the other track that

I sold um so it's same location that

one's a u about a 3 and a half million

million dollar deal so one one thing I

really want to iterate um is these these

deals are not

fast no to put them together they're not

they're not fast for sure they they do

take a little time there's some of them

you'll get lucky there's not a lot of

variables that you need to friction yeah

um but you know sometimes you'll just

have people that may want to get rid of

a land that may have multiple heirs or

they may have issues with utilities that

you got to figure out beforehand or you

know something that says hey you know

you just got to wait a couple more

months before I decide maybe even a year

and just keep pushing and sometimes they

just lasts longer than that but

ultimately it's just follow up make sure

that you're there and you know you kind

of have to set the right expectations

with your sellers too because right

these things take a lot longer to just

push across the line yeah yeah yeah the

bigger they are um well I take that back

sometimes the bigger they are the easier

it gets depending don't tell people this

all right

depending if you know what you're doing

um I've seen I've seen some bigger deals

that are less complex than a regular

residential deal so don't take that too

lightly yeah that's one of our

secrets no what we're realizing that too

is a lot of the bigger transactions they

have a lot more upsid so it's a lot

easier to raise the capital for them

it's a lot easier to let the capital

understand the timelines like if and

there's more upside so if like if you're

somebody's put 100 Grand and they're

possibly getting back 10 to 15 yeah like

Hey where's my 115 back you know I'm I'm

worried about it whereas if they put up

a million and there's like five million

upside they're like let me know what

it's done yeah yeah for sure yeah I mean

it's a different conversation oh totally

absolutely I mean you know if you're

looking at at a deal like that I mean if

you're having a big payday um you know

in two three four five years and you

could you can wait it out you're going

to figure something out you're going to

wait it out yeah 100% 100% so um let's

talk a little bit about I I realized

during this conversation and we've been

we we just had lunch together yeah you

wearing your Ranch Lander hat oh yeah

yeah yeah yeah so Ranch Lander is sort

of a u uh a group that we've sort of put

together here in Austin and uh you'll

you guys probably see our buddy rooster

so um rooster and I kind of put together

this little um little group of investors

that focus on land Ranch subdividing

pretty much anything around land in of

itself uh mainly in the Austin area and

of course other parts of Texas but um I

feel that we are sort of the extension

of of of hivm and you know collectively

we are a uh a group of investors that uh

that kind of do the same thing um but uh

you know we we put the together this

this idea or this at least this name to

to to carry out a more I guess modern

Branch kind of vibe to to our group and

um you know it uh it kind of threw me

back a little bit because it almost

reminded me of Yellowstone you a series

it kind of reminded me of that just just

a little bit as far as kind of the idea

that was taken on this and um yeah so

right now we're putting a a podcast

together we're kind of doing um a a

compilation of of different content that

we're going to that we're going to put

in there and uh you know we want to

bring in something that's a little bit

more um heavy on the day-to-day

operations kind of being out there

seeing what happens when you're walking

land and when you're talking to Sellers

and things of that nature and if we're

getting chased by Coyotes or chickens or

Hogs or whatever it's going to be all in

there if we're going to you know be on

the saddle as well and ride some ponies

and if we fall it's all going to be in

there as well so we're going to throw as

much content as we possibly can on that

thing it's going to be it's going to be

fun but ultimately we want to make sure

that people know what we're doing and

inform them you know of of what can be

done with with land so and as I said I

think one of the cool things about this

and like we've talked together we've had

lunch together we've known each other

for a long time we've cated on different

stuff is that land is there's so much

opportunity I can work when work with

and by side J and never cross him just

cuz there's so much opportunity yeah and

in fact we're probably sharing deals and

sharing

opportunities and Sh it across to him so

it's such uh land is very vast and a lot

of opportunities out there I think it's

a very big blue ocean and um for us we

kind of stay away from the outskirts and

he's like I'm in the heart of

Austin yeah it's a different Animal Man

I mean and at some point it's just you

know there's you're you're going to find

a stopping point in there because you're

not going to find these big tracks in

Central Austin for too long it's all

going to get cut up and topped up and

absolutely turned into warehousing and

apartments and yep it's coming

everything and that's that's the cool

thing about land in general the path of

progress so if you're if you can find

land in any like big pocket City inside

the etj it's going to be something and

somebody's looking at it oh absolutely

and this is one of the things that we've

noticed too is that we we picked up

properties off the MLS and like hey I

already we talked to the engineer

engineer like I already worked that

property I saw it hit the MLS and I

started working on it and see what we

can do with it and he's just doing it

for fun as a side project oh wow so like

people people just just never know

they're just bored right right right

bored and they they see something they

see opportunities to start working on it

and creating what it could be right and

then there's think there's probably

hundreds of people out there like oh

that could be something really amazing

everybody has their own story to tell

with with property it's it's never it's

never the same I mean ultimately I I

would say you know if you have the right

piece of land it's like a uh 10 people

can have 10 different Visions for it

totally I mean you can paint whatever

you want as far as the outcome yeah it's

ridiculous that's the other thing I love

about B is it's uh it's literally buying

at the bottom and you can kind of create

and form your own future with it it

could be a highrise 100 years from now

or you could be a duplex for now you are

your own Picasso yep you kind of create

an mold whatever you want to make out of

it and as long as the numbers make sense

you can do whatever you want yeah that's

the key that's the key uh what is a

quote that is yours or somebody else

that you resonate

with o got him yeah that's going to be a

toughy a

quote might be able to cut snip this one

out man I um that that's a tough one man

I mean there's there's um let's see I

mean you can just make one up right now

it's like buy more

land byy

Jessie I would say I would probably

say learn the best out of the flock that

you that you fly with O Okay learn with

the best and I think that that resonates

and the other thing the other one that

really really that that it just went

came in it just came in is show me your

friends and I'll show show you who you

are there you go there you go um this is

dope well thanks Jesse for coming on for

everybody here go like share subscribe

where can people find Ranch Lander it's

a podcast yeah so Ranch Lander YouTube

so rout roube YouTube Rancher

ranchland.com um and then me Jesse menz

on Facebook um on Tik Tok and on uh

Instagram he needs a better Instagram

handle since he's a jazz land man yeah I

need to I need to modify that so that's

Jazz land man Jazz landman right put a

saxophone on this thing yeah there you

go that'll work his his Instagram needs

some help so if you look him up yeah he

has a better handle yeah well we're

going to work on that one we're going to

work on it thanks for tuning in we'll

see you next time thanks for watching

like like share subscribe we'll see you

next time

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Ep 480: Earning $3 Million from a Land Transaction While in the Car Sales Business

Daniel Esteban Martinez

Jesse Jimenez