Ep 486: Why Land is the Best Investment- Real Estate Disruptors Podcast

Transcript

0:28: The speaker describes the gravest mistake real estate investors make as reinvesting their own capital into deals and flips, highlighting this approach as inefficient for wealth accumulation. They also mention the vast amount of dead equity in land, underscoring the missed opportunities in the real estate market.

is probably the the gravest mistake that a real estate investor can make is you do some deals you do some flips then you

take your own capital and then you reinvest it the worst way to get rich ever land has trillions of dollars of

dead Equity mhm it's [Music]

dead

[Music]

this is probably the the gravest mistake that a real estate investor can make is you do some deals you do some flips and

you take your own capital and then you reinvest it this is the worst way to get rich ever land has trillions of dollars

of dead Equity mhm it's dead hey everybody thank you for joining

1:49: Daniel Martinez and Anthony Gona's introduction on the "Real Estate Disruptors" show, explaining their journey from San Antonio, Texas, to discuss the potential of land investment. The episode aims to challenge the traditional views on real estate investment and provide insights that could help viewers become millionaires through consistent action and the right strategies.

us for today's episode of real estate disruptors today we have Daniel Martinez and Anthony gona with Hive mine and they

flew in from San Antonio Texas to talk about why land is the best investment it's a pretty bold claim so we'll see

where this goes guys I'm on to Mr create 100 millionaires the information on the show alone is enough to help you become a millionaire in the next 5 to seven

years you'll take consistent action you will become one guys if you get value out of the show please hit that

subscribe button stop keeping us a secret that way we can help and grow more people together

uh you guys ready absolutely all right so start with you Daniel what was life like right before you got into real

2:38: Daniel shares his background before entering real estate, starting from being a truck driver to meeting the show's host during a sales training event. This story emphasizes the significant changes and developments in his career, marking his transition into the real estate sector.

estate oh man I was a I was a truck driver so um that's actually how we met so we met September 2019 I drove a truck

out here to come to your first sales sales sales uh trainings and so it's been an interesting Journey being here

full circle four and a half years later so it's interesting excited I still remember you driving the truck all the

way out from Atlanta right I was probably as my only one that's done that H you're the only

one that drove a semi across the country I I don't know how many drove across the country but you're definitely the only one that drove an actual truck across

the country because I still remember you were out there was me you Pace yep right

I think Stratton might have been there y uh we had a couple people that came for a live sales training yep and uh we all

took a picture next to your semi I don't have that picture I was actually trying to hope they put it on

the podcast maybe they'll find it put it on later oh um I don't have it I only have a picture of me pace and uh Sage

Eric Sage yeah so we might have to hit up pace because I think pace is the one that took the picture Al so there it is

I don't have it so we have proof if we can get it happen yeah yeah but I still remember right guys like you know pace

and I we did our you know 5 5 a.m. runs and only a handful of people did it and you drove a truck across the country oh

yeah I I I forgot about that I drove to the park I took like three three parking spots and I miss you the park at 5 a lot

of parking well cuz like I'm not a morning person and since I was on the East Coast at that time I was like hey I

might as well go to the park and I was with the Fat Boys at the back back of the line because every's running the mile like all the skinny guys are all

running running running and I'm like I'm going to stick with the Fat Boys cuz I'm out of yeah we did break out in the seers I think you were with uh I mean no

offense here I think you were with Bryan's yeah right uh at that time so or

maybe it was Brandon Simmons I I remember both of them there you go perfect and then uh so but you're you're

truck driver so what was that life like before you you know in real estate man

uh my first business was actually a trucking business so I started a trucking business I was a truck driver before that and then I was transitioning

to real estate and that's where I kind of met you so I had all the Time in the World to like listen to podcast so I'm

actually a product of real estate disruptors and it's come full circle here so I'm excited oh it's definitely come full circle how about you um same

thing man um was this a background question yeah yeah what what what was your life like before you got into real

estate right like what was whether the tribulation or dreams or whatever like Why Real Estate man I kind of it was just a big

5:50: Anthony recounts his path into real estate, initially from a construction and roofing background to discovering wholesaling and its potential for quick profits. His story highlights an $85,000 profit from his first land deal, illustrating the lucrative opportunities in land investment and his decision to focus on this area within real estate.

fluke I think so I was in construction my whole life I was a I was boxing at the time I thought it was going to be a famous boxer I'm like 12 years old and

my dad's like get in the truck you're going to work so now I'm working for my dad's company painting painters helper that kind of stuff I got really really

good at construction um and lead generation right So eventually I got to the point to where you know with my dad's company it was either feast or

famine like we had a lot of money or no money at all a lot of work or no work at all so I always found myself doing marketing I always reaching out to

contractors trying to find new work so that we could eat that kind of stuff important things um so fast forward to

2018 I'm doing Commercial Roofing right so we'll do like a million dollar roof on a building um I was running a a big

roofing company with just my cell phone so I'm doing all of the marketing right I have a professional marketing background for like 15 years um but you

know my friends were running multi-million dollar roofing companies but they all had like construction Crews and warehousing office staff and all

this and it's just me and the cell phone running like bigger companies in there what I was doing is I was like helping sue the insurance company and then I

would collect the funds and I would just wholesale the job to another roofing company gotcha let them do it knock everything out um so I got to the point

where with my family I was looking to build a house and I get on YouTube and I googled how do you buy a land for cheap

right and I came across the term wholesaling and I was like wait a minute I'm doing these big grouping projects right and it like takes like six months

for fulfillment but these guys are getting real estate contracts and then just selling them instantly and making similar money so I was like I'm going to

do this right yeah so just the grace of God man I got lucky one of my first deals on a 46 acre land deal made

$85,000 yeah I'm like probably not going to do houses so you were doing Arbitrage

and we call it wholesale but you're already sourcing opportunities and selling those opportunities without

fulfillment yeah gotcha and it was in construction that's all I knew Yeah well

yeah and that's your background so um so you saw uh you're looking to buy land for

development development is that what you said to build a house from my own family go the house for yourself got you and then you saw along the way it's like

wait a minute these guys are buying real estate and selling real quick so then what was

that jump like then tell me like you know what was the how long from when you saw that till you actually did your

first deal when you started your real estate business it was with the dream to change the world and make an impact the reality is you might not be near that if

you're like many investors you might be frustrated you just can't succeed in getting your salese to do what they know

that they should do they operate on their own terms meaning they don't follow your process that you know

produces consistent results so each month feels like a roller coaster because revenue is coming in

inconsistently how relieving would it be if your sales people did follow your proven process were receptive to

feedback and training and could be held accountable to the results that leads to their success and your success would

your company stop riding in the roller coaster of Revenue frustration and mental drain and that's why we brought

in Ren Bartlett he's built a business has wholesaled 100 plus houses a month the people he brings into his business

are bought into the process they have a deep understanding of their role and are excited to be held accountable because

as a business owner he truly knows their deeper why so that we can demonstrate that our company is here to provide for

their true purpose if you like to finally stop dreading managing people who don't follow a process produce

inconsistent results and aren't bought into your company sign up for our sales leadership program to end the emotional

stress of inconsistent results and finally have a fulfilling business working with people you want to be

around dude so I'm going to All In kind of guy right I don't think about things so I think what I lack in like

intelligence or whatever just make up for in pure action so I'm learning about wholesaling like mid December by January

1 I launched like $30,000 worth of marketing because I already knew I was going to get a deal I've been I've been

doing marketing for too long I knew if I spent enough on marketing for sure I'm going to get a contract there's no way that I couldn't so I want to say it took

me like five weeks to get my first contract when I when I I did my first pull ever was 500,000 records and I rvmd

it texted it hired a VA everything I ordered like thousand bandit signs made a bandit sign maker my wife's right

there she drove me around while I'm hanging up bandit signs like I went all in dude 110% in and I got a contract

pretty quick but I already knew like if I if I ran across enough leads I'd eventually get a deal I called everybody in San Antonio like all the gurus and I

had lunch with all of them told them what I was doing so I identified who had like who's good at sub2 who's good at commercial who's good at land and so

anytime I got that type of Deal or lead I would take it to that person and go have lunch with him and give it away so there's no middle of the road with you

no either all in or all out anybody that knows me no I'm an Allin kind of guy yeah okay and then you immediately

connected with all the gurus or the experts inside of San Antonio yeah

there's a lot of them in San Antonio I don't know why there's so many in San Antonio but there are a lot of them for you to say that it's crazy yeah Phoenix

is crazy well Phoenix is nuts as well but to me Phoenix makes sense I don't

know I could just be in my own world right but you know we kind of all you know in some way this is going to be

kind of weird way to describe it but we're all like like descendants of Shan Terry right like he was the big one and

we all kind of like follow his footsteps in San Antonio I don't think you guys have that I don't think you have like one person you guys can all point to

Logan former no no it's it's a really really good Market with it's ripe with opportunity I feel like it's a last

Texas major city that's like been uh unindustrialized or hasn't been abused yet lot of Green Space you talk about

you know like the creative right because you got Charles you got Michael um you got uh Logan Logan Logan and Commercial

yeah right I mean he's he's insane uh with commercial he's supposed to be coming on sometime in the very near future I'm trying to think who is um you

got beans's there you got MIT you got there's a bunch of names there oh mit's there too yeah okay for some reason I

thought she was in Dallas um yeah I mean you guys have like a lot of names out there so you immediately just go all in

on marketing and then you meet all the uh wholesalers that you could just sell deals to I mean that sounds like the

ideal action so how' that work out uh amazing actually man so I have a network

marketing like multi-level marketing background okay so I already knew you get around the people that are doing well and then you just learn from them

yeah so that's what I did I bought them all lunch bought them all Stakes right went to lunch with everybody and I immediately started just like they they

took me under their wing they saw that I I actually brought something to the table right so I didn't show up and say Hey What Can you give me how can you

help me I came I said hey I have a lead pick your brain don't say that yeah don't ever say that to anybody you want to learn from don't say pick your brain

uh so I I brought them the lead and uh they would just automatically start teaching me I say here what do you want for like I don't care but you're going

to teach me yeah so MLM background um outside the construction component so

were you successful in the MLM dude so I joined my first company I was think I was like 17 or 18 it like USANA those

kinds of guys and I bombed at everything didn't sign up anybody and like call your friends and family and sign that's is not my personality type uh but uh

there was a company called Empower Network there a guy named David wood and uh I was going to join that company it's like a blogging based MLM it was weird I

want to say it was probably 12 years ago or something yeah I was looking to join the company but I didn't know how to join I didn't know what their website

was I didn't know anything but I wanted to follow this guy so I found a video on YouTube where the gentleman was talking about like hey join my team on MLM and

he had his phone number in the in the description of the video I like this is genius so I called him like dud I'm join I want to join inow Network I want to

join your team he's like perfect sign me up good and he did coaching he had all kinds of cool stuff but like the the light bulb came on it's like man I know

how to do MLM now so I shut it down I wasn't real too too interested in the product after a while but when I found a

company called power that I did want to you know blow up in U I did the same exact strategy I ran a YouTube video I

ran ads to it put my number in there and uh randomly one day calls somebody calls me they said hey you signed up four

people in two days how'd you do it I'm like I did so people were converting without me even talking to them yeah I I

nailed it dude I became one of the top guys in the company right away and I figured like yeah this marketing thing starting to go good that's awesome and

the only reason I'm asking this is that you know MLM has a really bad R uh rap right uh and I can't say it's undeserved

even though I'm in one I can't say it's undeserved right um but the great thing about MLM is that most of people that

successful in mlms go off to do other things well right because I mean like you look at entrepreneurship and you

know do my own thing and uh do my marketing doing this like you have to learn all these things

mindset that you don't get in a W2 world right I mean like I leadership too leadership so I say you know between MLM

and college like probably MLM even though it's not wow that's a big statement yeah even

though it's not necessarily the best reputation so so you said you start in December um mid December you said was

your yeah so I just started learning yeah when was that exactly what year 18 okay so mid December 18 what is this

thing January let's just dropped 30,000 in marketing February you do your first

day you said 80 something um I got my first contract was actually a house and I got into with a broker and agent they

walked with me helped me drop the contract it took months to close that was contract number one okay I want to say the second one was a it was a 46

Acre Farm south of Fort Worth and again I called the people that I thought might be able to help they they kind of walked me through it I did a no deal didn't

know what the heck that was but we gave the sellers a certain amount down she signed it over to me I listed it sold

85k yeah wow so that's pretty impressive so um there is the way you're saying you

I just dropped 30,000 because I knew this was going to work but there was never a moment of doubt in your head whether this was going to work or not I

have to my marketing background was so extensive like I said I know like you spend enough dollars and you get conversions you don't even have to be a

genius you could just be Joe Blow so yeah I was very 100% sure that that we were going to do some business gotcha

all right so then how about you like how long from like I'm going to do it till so we we actually got the same course in

December we both started around January same time um he told me to start looking the land because he got that that quick

deal quick he had marke I had have Market a month and uh I contracted a few

houses didn't work out had three contracts fall through two like $20,000 assignment he fell through one seller

died right before before closing I had another one I went through pre forclosure I evicted the

tenant crashed it out took to closing I was Mak like 25,000 then fell apart

closing crazy and then he's like I land see what happen so literally within like two weeks I put a carrot s up and um the

Google ads lady came in I was afraid of sale so I was like emailing her emailing her emailing her I got

the sorry I'm so sick I'm a little irritated so uh I got the contract um

through email found a buyer in Facebook Marketplace in in two days sold it made six grand and the rest is history no no

houses no House deals all land the first deal you locked up was through email

through email 100% he never talked to her on the phone never text her I never talked to the buyer either so that tells

you like this how you our relationship goes is I'm L to the back end he's a front in sales Contracting and all that

stuff so I I do like agent calls now and stuff like that I've got i' kind of grow this muscle but back then man I was

afraid to talk to anybody okay so then you guys connected pretty soon

thereafter like you guys said you said you guys were in the same course yeah so jayen white we both took Jaylen White's

course back in 2019 yeah that's how we connected so you guys connected how soon from when you connected so you guys

started working together immediately dude it was like a year in it was like a year in well we were always networking

we're always networking and communicating I think I posted in the group something about like hey is anybody doing land and of course crickets right and then Daniel's like

hey some land and so we just started talking and we stayed connected I noticed that he was really good at numbers right so if I'm running comps

right I'm just running there with like half a brain like I could figure it out sooner or later I took pre-cal in college yeah um so but I would notice

when I would send him something and he he would send back to comps like within minutes I was like the heck did this guy do and then anytime that was anything

that was numbers percentages anything he would come back in like seconds and I'm like okay that's something that it might have taken me 30 minutes an hour and

this guy's knocking it out quick so we immediately identified each other's strengths and him like hey can you call the seller for me I got this lead so we

immediately just started leaning on each other back and forth so it was it was a hve mind since day one yeah okay so you guys

were uh closely working together from the get-go uh how many deals did you guys

collaborate on before you guys decided like you know what let's just be partner I probably like five I was going to say

yeah it was it was it was just a few just a handful but we we just started leaning on each other immediately like hey I need to earn this money for this

hey I need to can you help me with this contract like just right away um we just kind of felt that Vibe and he never asked me like hey well what's in it for

me and I never asked him either like what's in it for you we just we just automatically started clicking and uh I

would say we started the hive mine thing just over three years ago and I had this

business idea and 2021 it was like 1: in the morning I'm telling Daniel about it and he's like that's a great fing idea

I'm like you sure is isn't it yeah yeah so it was kind of just all very fluid manange yeah so then uh

after a few deals in about a year you guys decide to partner up yeah it was a

loose partnership we didn't sign agreements or nothing we we were just helping each other it was a handshake agreement okay uh is that still a

handshake agreement or is things are writing now no now we got joint llc's trust all that stuff yeah all right so

what were some of the challenges you guys had initially working together um I think we work really well

together cuz like he has his strengths and I have my strengths so we work like that yin and yang side of it so um we

really like we never really even to this day we don't fight about stuff because we're both just working like I don't

have to ask him like what' you do today like he ask me what I do today right both just working and I live in California too and he lives in San

Antonio so yeah that's right you moved to California um okay so then you guys

bought Jaylen White's course yeah right and then you guys get out there and you hit it hard and then you also talk to a bunch

of other you know mentors in your Market what else who who was instrumental in helping you guys you know it was right

dire everybody I mean it was I think land was the wrun direction I think you kind of go down that path and you start

coming across problems the best way is doing the action of it and then you come across different problems you come you

do like title situations and they call Logan and he was mentioning Logan before Logan even started going out there so

he's like oh how we fix the ti problem and he was like oh we got to do this this and this he tell me okay we got to do this this and this we kind of work through the problems and then we uh we

got sub two he coed to Uncle Charles and Mike boom boom boom we're working through creative sub two now we

understand creative stuff too trouble title and then we started looking for flip opportunities and they were're just focusing on land and then doing all this

other stuff that cles down the line with it and you get eventually get better over time and you see different opportunities yeah I would say the

people that were instrumental for one Logan Fulmer and his partner Ryan McDonald and Ryan are me like this now I

probably talked to him multiple times per week but it was them two uh Mike and Charles for sure they both spend a lot of time with me when I was a new kid

like I was I wasn't even doing deals yet yeah um Charles stayed till like 9 o' at night one time like on a Friday or

Saturday it's crazy and he just got off the Whiteboard and just went to town so Mike and Charles for sure Logan and Ryan

Mitsy went with me to lunch a bunch of times Cory Thompson man he's one of the guys that took us under his wing and like he's you know he could be a little

abrasive right hard to get in his good graces but whatever reason man we just click since day one and I just I just

like how genuine he is and honest he is yeah so yeah I think some of those names and I'm sure there's a lot more and somebody's going to cuss me out after

this but those are the ones that I could it was a lot of people and it was it wasn't like any one person even you because you with the podcast we learned

stuff from your guest so like it was a culmination of a lot of different things and I think a lot of people they get

stuck in that one like I think uh make war with many counselors and like we never met or talked to some of these

people even people you're guests but it was just one of those things where we got different information from all over the place and kind of piece it together

based off of what we were doing in our business today and that's how we kind of came up what we do I tell you then I was

watching real estate disruptors like every episode like binge watching dude for like a whole year like no TV no

radio nothing I was watching your show and I this is freaking amazing I'm going to be on that oh I love it I love that um so yeah and

you talk about Charles uh I mean Charles is the guy that you know he'll take his shirt off your back off his back to to

really help you out right yeah totally selfless and you talk about Cory Thompson um I love Cory I love Cory too

he's like a brother to me dude he's U he's A's he's a great BS detector yeah

he and he'll call you out on it he'll call you out on it um he might be wrong sometimes yeah and he'll admit it yeah

right um and then you know he's like the baller Busters for Real Estate um so we keep that's why we keep him close so we

we do we do an annual event every year and Cory spoke every year he'll bring his own little onage with him and we're

have fun and it's it's a fun time with him he's always a he always brings in a little spark yeah he's a character and

uh yeah he's not's he's not afraid to to speak is mine absolutely okay so um you

said that you started doing land and then there's other things that come along with it so your core focus is

still land it's still land but like different versions of land like when we first started it was like flipping then

we got like creative financing seller financing wraps and then it turned into

like a subdivide and now we're doing entitlements so it's like we kind of went down that path and the deeper you

go down the door opens up a little bit more and you kind of see like oh that's interesting's let's try and do that so

like we've learned like our land knowledge is a like exponential and

we're still learning like even we talked to our engineer today and engineer like oh that's amazing we should look more

for that opportunity so like as we as we go further down into it we're learning and becoming very skilled at it yeah so

you're talking about like you know this engineer spouting these ideas like what is like your latest Rabbit Hole you guys

latest Rabbit Hole has to be the actual entitlement process itself yeah right because uh we could take a 100 Acre

wrench buy it for a million dollars survey it off into several pieces flip it sell some for cash some for notes

amazing deal and you can make a couple hundred grand to a million dollars just doing that alone now when it comes to entitlements now we're looking at flood

zone and endangered species and you're going down all these different like what the text dots like Texas Department of Transportation roads um dealing with the

county putting in roads like soil compaction you know like holy smokes like this leads to a lot of different

places so that's probably been like the biggest count of worm we've ever opened so we're not going to change our business model we're going to keep cutting up branches in Texas but again

it's like do you want to make 500,000 on this deal or do you want to push it to like 5 million profit on this deal the same exact deal right without ever

breaking ground so that's why we're trying to look at both things without completely changing our core business model yeah and and entitlement it's you

know um it's a crazy concept you know um I first heard about entitlements I want to say in like

200 N 10 11 whatever on there right and it was a different situation because

then they couldn't even give land away right like you had land you couldn't even give it away because it's upside

down before you even bought and take it right yeah so they couldn't sell the land they could only sell it for the

cost of entitlement so I was like dang hey you know you give me the $8,000 I spent on entitlement you can have the

land for free that's the way it was it was cuz wow again we're talking about

this is after the real estate crash uh and all the developers that had the money to buy all these things they

killed it yeah but most people didn't have that kind of cash right so but yeah I mean uh for everyone that's listening

right now they may not be familiar with entitl I know you kind of kind of hit some things here but for the people that are listening that are unfamiliar with

entitlements because I think this is this could be a huge opportunity for somebody that's listening yeah what is

instit yep so it's the process of taking a raw piece of land right so let's say you get an any major city you drive down

any Main Highway that leaves the city uh we go right past the neighborhoods and then we go to to a land where just raw

land the farm you see some cows out there some horses some goats if you're in Texas probably in a lot of other places yeah but uh you take that raw

piece of land and then you repurpose it so it could be zon like unzoned it could be agricultural it could be residential

if it's inside the city you take it and uh you apply with the county the city everybody that wants to talk to Fire

Marshall right and uh you usually hire an engineer you rezone it so you you repurpose it so let's say it was

residential single family residentials houses you throw a couple hundred grand at it and now the city says hey you can build Apartments here so the same piece

of land without ever breaking dirt goes in value of $250,000 to $8 million right

just within maybe a year year and a half time span and a couple hundred thousand do so you just repurpose the land um and

get everybody to approve you for doing a different use for that property right and the the developers like it too

because they don't have to wait for that timeline of actually doing that work so they'll come in and like hey I can buy

this today and put a shovel in it tomorrow okay I'm going to buy the opportunity so that's what they're looking for the guys with the money don't want to wait so they buy back

their time by paying you to do the entitlement process yeah yeah uh so I heard someone do a presentation on this

a collective genius um I want to say about about a year ago maybe less yeah that that's his business model he would

just buy a land he would get it entitled and he would sell it without ever

putting a shovel in the ground but for him it was always he would buy it

subject to entitlement right so like hey I will buy this land if I can get the entitlement

approved but if I can't get the entitlement approved you can have it back absolutely yeah furthermore we'll

give you the we'll give you all the paperwork you paid for yeah and as we shake hands and and leave but it's also a good way to lose 50 or 100 Grand if

you don't know what you're getting yourself into if you don't know what you're doing yes it can be really expensive because you're you're spending

a lot of money to get something approved that might never get approved absolutely so we're both gambling like you gamble

you give me a year of your time and your property for a year and I'm going to put in a couple hundred grand or 50 Grand

whatever the number is and then hopefully on the back end we both make profit but if not I'll give you all that paperwork we shake hands as friends and

I'm out of here exactly so now you mentioned that you're trying to figure out your business model do I want to

keep doing what I'm doing or do I want to do entitlement what are the factors we're considering and trying to figure out

whether you want it to entitle or not so I I want to cover a little bit back into this so we kind of do we when we first

started we did not start with entitlements it's a very high level thing that we got to so we're just talking about the rabbit hole right now

we're still we still have to go back to the land okay okay yeah the the land the land is crazy so you can find flip

opportunities to make eight six figure spreads pretty easily and they're out

there uh I just interviewed a a client student of ours he found a $230,000 deal

for 30 grand sold it for 30 grand down he is's making 4500 a month for 60 months net cash flow yeah so if you want

to talk about cash flow a lot of houses that's a lot that's a lot of that's a lot of cash flow with no maintenance repairs nothing so like I I I I'm always

I love Twitter so I'm always like beating up people like somebody tweeted today like ohh what's the best

investment class to to invest in no they said what what to stay away from I think

no no what's the best investment class to invest in wrong answers only so I put

sfr and then everybody's like oh why sfr because I'm like it doesn't cash flow like one your AC or roof goes out there

goes two years of cash flow so with with land you can add value or find Value

through Arbitrage at pricing and you can create notes and create like a crazy yield out of nothing that doesn't even

exist and like what do your end buyers do with it I don't know it's not my business my business is writing good

paper at good property so it's like you can do flips to create large amounts of

value and you can do create cash flow to create large amounts of cash flow and that's why land is the best asset class

oh I want to get back to that the factors on entitlement what are

you considering okay so we have a first of all we have a lens that we view deals

through yeah the quickest way to do it is a 10 acre subdivide right again you buy 100 acres you cut it up sell it

that's lens number one if we can do that profitably now we're interested in the deal um but now we're going to look at

things things like does the property have sewer connections yeah right what's it zoned for what kind of does it have groundwater how close to the city is it

right what's going up around it so all those things would we could learn to decide so right now we picked up a ranch for 8,000 Acres like $2 million and uh

we noticed that everything in that area is going for 20 plus thousand an acre how do we know because we sold one right up the road right so now we're like okay

we can cut this thing up we can sell it we can make make about a million cash in like 12 months or so but if we spend

about 500,000 on engineering right now we're getting offers for right under $5 million right

right on something that we paid two million for so it's like do we want to hold on to it and and push this thing to like two to three to$ four million or do

we want to just grab the million and move on to the next one so I think it depends on Demand right uh what area you're in if this thing was a 10 more

minute South we might not have done any entitlements at all let chop it up sell it move on to the next one so I think

that's that's probably the most important thing is like hey how much time and cash would we invest into this thing and how what what kind of

exponential return can we pull out right and that's probably the biggest indicator return return on cash return on time

there you go yeah so should we put actually 12 months into this thing and and make the the the return go up 3x

like yeah this is a great area great opportunity lots of development happening around there you know 10 minutes outside the city this perfect

yeah the 10 acre lot subdivide we did one in under 90 days contracted it sold

it 90 days so that's the quickest way to cash within the land space that we do so

we always look through that first lens like you said so are you're looking at land and the C you can turn these into 10 acre 10 acre plus lots sometimes it's

20 sometimes it's 30 but how poing the land is we can cut it up without going through County approval in Texas why so

this is probably the single most important thing if you let's say you took a 20 acre lot and you cut it down into one acre lots that's a year I don't

care how you look at it nine months to a year right on a small piece of land but if you took a 200 acre plot and cut it

up as long as you stay above 10.01 acres in Texas you'll be done like in two months maybe 3 months total and you're

out the door so sometimes we have we're sold out before we have to close right right so so it's something uh particular

in Texas where you want to be over 10 acres where the the red tape is a lot

shorter it's non-existent from what I've been told or what we've been told it works like in 18 states probably red States right but uh that's that's where

it's it's pretty simple game as long as you cut out big pieces nobody bothers you they're not worried about it we can fix it later if you make a mistake yeah

right but once you start cutting up one and two acre tracks now it affects drainage it affects the neighbors like you got a whole other set of problems

that are coming in so all the calculations there's a lot of different governing bodies that want to take a look at it yeah yeah and that makes

total sense right cuz how many houses can you actually fit on this but 10 acres whatever we'll figure it out one

acre loss all right well what's the density how much water are they going to need and so on that's what you're

talking about yeah everything but we find there's limited water there's like just different challenges like the city will be like hey there's only a 3inch

water line there like we're not going to be able to give you 180 meters right we can give you six like oh dang 20 AC

track let's do it right so quick in and out depending on what's around us and again how far we are from civilization

right gotcha that makes total sense uh so you're talking about the cash flow component yeah um and then the guy is

buying it seller finance and selling it owner finance so right now we try and

acquire solell Finance so that $2 million deal we got it for $500,000 down MH 0% financing 1.6 carry debt from the

seller payments 4,500 a month if we go through and subdivide those lots in 10

acre lots all the way through it might produce 20,000 a month cash flow and we give 4 4500 to the seller so like we

have opportunities to cre through seller financing because land is under service when it comes to financing very very

underservice you can get there's billions and billions of dollars for every other asset class but nothing for land the banks won't even lend on it

under service for financing yeah on the buy and sell side right so sellers are kind of stuck in a rock between a rock

and a hard place because no one can buy it unless you have cash and if you buy cash they're G to get it discounted and

if they buy it financed uh it's really hard to get Bank financing as a whole so every's always asking for seller

financing for sure so they're kind of stuck in limbo forever so we always make the joke that land literally nobody buys

it we've never been bought out on a deal we just make the offer and wait six months 12 months and it comes back to us again yeah oh yeah for sure I mean I

think looking my understanding I don't do a lot of land uh but you know I'm going to be dating myself here you know

back in my day I was Learning Land it was always 10 10 10 right it was 10%

down 10% interest and do and 10 m right so I mean is that we will ever mention

anymore is that or is that just like the old people same thing yeah 10 10% interest uh we do we we're aiming at

1199 when the rates went up we were at 10 but yeah 10% down and and 10 12% interest works great yeah yeah so go

ahead we'll do up to 30 years but it really depends on what they can afford we kind of mold the payment around them

gotcha who's buying your land dude it's all retail in buyers we don't

have a buyers list at all m zero buyers list yeah we just sell directly to end buyers so we essentially have a

wholesale model so we do a lot of like Gorilla Marketing through Facebook and Facebook ads and then MLS and then we

put Panda signs out so we do like every type of marketing channel because that's the other thing if once you sit like 45

days in MLS you're going to start getting beat up by by wholesalers by us

and wholesalers these nasty wholesalers I know they terrible our whole goal is we're trying to move that property

within under 60 days better the person people that come in week one those are serious buyers so I trying to offload it

and work with those people that come in early because we know how to price it and if we're offer sing financing he 10% down like okay how much is it per month

2500 okay I got that don't worry about that that's all we need to know how much can they put down how much can they afford monthly and and then we can back

into the years and everything else it's like it's like used car sales mhm it's like used car sales cuz they back into

the they back into the purchase price and new car sales is not that different I mean same idea it's just car sales in

general so we're like the car sales of real estate yeah so uh so you take it

down you buy it seller finance and then you list it on MLS and then retail buyer

comes along and you sell it sell Finance yeah in which way we can yeah gotcha

okay um so then you guys are getting pretty comfortable with notes then I would imagine absolutely okay which is

different than land our note gamees getting pretty crazy all right so how who is helping you guy who's helping you

guys get good at notes for one experience but for two we're just we're learning from a lot of

people um I think even the note buyers right those guys are really seasoned and they're really good they ask all the

good questions so what what you ask again you need what okay let's write that down so we're learning from them there's a guy named him FS out of Texas

who T taught us a lot about financing and interest rates and how to play with the notes older gentleman named Tom

Henderson who's like one of the best that ever lived like a guru type we've been to his seminar got his his book but

man we didn't realize that land I mean notes is its own Universe it's his own world it's his own Universe yeah so most

of the people that that do notes they can't create them so we kind of fit in between all of them because we're

practicing notes we're also creating them too so we get to play in both sides of it yeah like note buyers they have

trouble uh finding the notes to buy right and we're mass-producing them right we need help you guys ever work

with Eddie uh we we we interviewed him one time and I I think he taught us just enough in that interview for us to be

able to run with it I think that was a big paradigm shift for us well I guess the reason I'm bringing up Eddie Eddie speed is that he has like a Marketplace

yeah right but it doesn't really or I guess are you guys just holding on to the notes we're not by choice we're

doing we're doing a little bit of everything right now so right now we've been kind of arbitraging the notes um

we've been selling the notes we'd like to keep them and then leverage them again but that's a whole another

strategy in itself but we're we're working our way into keeping them

andh what we were doing in the beginning as we needed Capital because we did the I think this is probably the the gravest

mistake that a real estate investor can make is you do some deals you do some flips then you take your own capital and

then you reinvest it I is the worst way to get rich ever yeah right knowing what we know now so that's what we've been

doing for five years and uh as soon as we create the notes we would liquidate either pay the seller off make put a little bit of profit in our pocket roll

on to the next so we're getting to the point to where our volume's increasing so much that we're getting stuck with notes right The Bu interest rates went

up note buying game goes down so now we're pushing $2 million worth of notes and it wasn't our intention to hold on to them but we have them so it's kind of

like the notes are becoming a byproduct of our business model so that's both enjoyable and traumatizing at the same

time um how is it enjoyable well starting to get uh the cash flow the

passive cash flow is starting to build up right the golden rule for land is land doesn't cash flow but you it looks

like it's cash flowing on our side yeah right and it wasn't the intention because eventually we thought we would keep them at some point but we didn't

know because the market was going to crash and note buyers were going to stop buying so in what ways has it been a problem well being able to get in and

out of deals right so let's say the seller says Hey I want a million dollars for this Ranch we come in we say hey we'll give you 200,000 down or 300,000

down we chop it up sell it some of it's cash some of it's seller finance we take the bulk of the cash give it to the seller put some our pocket sell the rest

of the notes to pay the seller off well if nobody's buying notes like hey Mr seller we're going to be a couple ,000 short by our closing date got or at the

end of the financing term so there you have that that portion in there so the the the note you have with the seller

you can't pay them back because you can't get out of your existing note yeah so we have the notes like hey you know

we we can get you paid out but would you take some notes as the rest of the cash instead of cash sometimes they say no

sometimes they say yes but that's the challenge right now yes is being able to use that same strategy that we've been using for a few years we have a cash

burn problem not a cash flow because cash burn every time we create a no it just absorbs Equity cash that we would

could use and redeploy and all that other stuff so right it's just cash burn so we're always trying to redeploy and

red redistribute that that's the problem I think kind of happens in land um there

werey a couple guys on discount Lots you guys ever interact with them no it's called discount Lots never heard of um

so that's their problem is like they're buying all this land and they're selling them on on terms right and just the same

thing it's like the only thing that's stopping us is Cash absolutely right

because like we can we can buy good land and we can cash flow right uh but

there's it takes time to recuperate the out of pocket right so long term it's a

they got a great balance sheet but not cash yep all right I

imagine that's kind of what you're talking about as well that's exactly what we we've arrived to right so now we

came up with this crazy idea like let's start a fund mhm right because that 12% return is amazing right if somebody just

Parks their cash there and they can get 12% back and I'd have to think about it so that that's kind of our next Direction now was like okay so I think

we got really really good at lend we got really really good at lead generation right we have an overabundance of leads

uh but now like I think and this is what I kind of alluded to earlier is that make making your own cash and redeploying it is not not the best way

to get rich right it's uh it's not it's the best way to get cash poor it was actually Corey Thompson man he sent me a

it was one morning he he text me a video was Grant Cardone which I'm not a great big fan of Cory is I think he's kind of

cheesy yeah Cory loves Grant I don't understand that for someone that hates gurus he really loves Grant he really

loves Grant he he said he text me a link right and I love Cory so press play right just woke up and uh it was his

book how to get super rich or something like that and the only one sentence I needed out of the whole entire book he's like just find somebody who's extremely

wealthy and deploy their Capital yeah say no more Grant so I I it kind of clicked so that's when I told Daniel hey

we need to change our Focus us now into just raising Capital yeah because at the end of the day no matter what asset class you want to get into whether it's

commercial or self storage or anything like that if you have Capital that's ready to deploy then it makes everything

else easy and what we've come to find out is that it's easier to borrow a million dollars than it is to borrow $10,000 right because the person that

could lend you 10 doesn't have it but the guy that has a million is like yeah here it is pay me back when it sells right oh damn we think we're on to

something so absolutely we're headed next um so before we get into that

before we get into the fun because I want to talk about the fun mmhm um talk to me about some of your biggest success

stories with Lan okay got a couple of them so I'm going to start off small and I like this

deal because it shows that anybody could do it so it's kind of barer to entry bar to entry deals so we had a deal come in

very brief um it was worth about 35 to $40,000 one thing we love about land is there's no comps like we're kind of

shooting in the dark yeah and that's the best part about it because there's no verifiable comp you say that's the best part about it that's the best that's the

are would be scared to death about that that's the best part because as long as you know you have it under you're going to make money you just don't know how

much right so as long as you buy it right as long as you buy it right yeah so we uh the the deal came in through

PPC and uh the guy wanted 15 which is already 50 cents in the dollar and most people jump all over that but the thing

is that we know is that there's no buyers for this we're like yeah let them go let them seizon a little bit so he

comes back three months later and he's like I need 15 for the slot I remember you're interested like what can you do like dude

$99,000 it was $8,000 that's it so he's negotiating with them $8,000 all right I'll take it $8,000 so we get it

contract for $8,000 we immediately sold it on Facebook Marketplace for $8,000 down 500 month for five years boom write

it up $8,000 the buyer gives us go straight to the seller and now we hold the paper easy deal you can find deals

like that very easily on the MLS Marketplace Market Marketing in general

so that's kind of like a bar entry deal that we always talk about because anybody can find a $40,000 lot there's

some down the street you can pass up and they're everywhere yeah so that's kind of the barrier to entry and then we had

uh you talk about the China deal that's that yeah that's one of the first ones that I did so yeah um it's

like 12:30 at night Lord knows what I was doing wake and I saw a number coming and said China on it damn scammers right

because I had just set up my Google ads and uh the lady actually I called the number nobody answered she calls right

back I was like what the heck so it's a lady that she's like a school teacher right in China she's like from here um

and she's the one that had the property over there by Fort Worth and she's like I got to sell this property and all this stuff she's like I need to get 225,000

for it or 250,000 and I'm like dang I don't have that kind of money I just started I don't know anybody that could lend it to me so I'm like it's probably

not a deal whatever so we stayed on the phone for like an hour we're just laughing talking you know just just having fun like just you know shooting

you know whatever and uh eventually she says yeah and in the back side of the ranch backs up to I35 and I said wait a

minute I35 $200,000 40 acres I was like like this AR to sound like a deal it sounds like a really good deal where did

you where did you say the property was so I go straight to my laptop checked it out and I asked her I said hey uh what

did you say what do you got to get for this thing and so we made an offer that night um the next day she calls me she

said I need to talk to my son and see what he says so she calls me the next day she says yeah we'll go ahead and take the offer and that's that first Dayal where we got that big pot for 85

was just we did a kind of Novation deal I didn't know what to do right I'm completely lost so I called Addison blang a couple of guys that that H that

are already in the game like what what what's the best thing to do here and he's like well how much money does she need right now I don't know I didn't ask

M so I called her and I said hey look I want to get you the money let's go ahead and do the deal I was like what do you need to put in your pocket right away

you know just to kind of get your head above water so that we can do this deal together and I told her I was going to resell it I said I might split it up

into a few pieces and sell it or whatever I can do here and uh she said you know what if I had $10,000 right now you can take all the time you need done

called my attorney had him draw it up send her 10 grand she she put it in my name I I listed it on the MLS in the

neighbor Buton damn okay here to go yeah so yeah so a quick 85 that's not that's

not too shabby significant man for somebody that's just getting started didn't have the confidence to know what I was doing um so it was a really good

win man that really kind of set the bar for me it's like hey I thought I was going to flip houses right because like I'm the best contractor that ever Liv

I'm a license home builder general contractor I'm just going to kill it in remodeling right but uh it just yeah as

soon as I got that pop on land I was like okay yeah I need to I need to stick with this all right we got another one

so this this is one we did back in November uh we bought 18 acres in Bash drop and where Bastrop Texas it's east

of Austin okay so I like this one too we're kind of scanning a little bit up we got a we got a free free free cash

flow deal we got a 85 flip this one was really good so um we a wholesaler bought

it and they had it and they're kind of sitting on it and they're trying to move it again they're like we it was 18 Acres

we would never bought it if it was one lot one thing we we're always looking for is arbitrage opportuni so this is 18

acres in four Lots that's money right there so we bought it for 450 uh it was like a

Wednesday or Thursday we went closed on it we had three contracts for three of the Lots um because we sold it

separately by Monday for 600 Grand they closed in two weeks so we were in 400

600 back and then we still have one lot that we're still selling for 1999 I think it went under contracts today oh I

you didn't even tell me so so it was like 400 in 800 out and I think it's like a 230k win in like three weeks from

the time we closed and uh we had it sold before we had to close and then uh yeah

so that last one it should be like roughly 400 like in 60 days or something yeah those are all some really good wins

right yeah um the promise of the show or the premise of the show is why land is the best investment yeah so why is land

the best investment because depending on what your strategy is if it's cash flow or flips you can do bigger spreads and

create larger cash flow in land without any of the capex Opex and management of

M any other asset class there's no staff nothing's going to break down there's no roof leaks no toilets no tenants yeah

yeah cuz we' had we've had Jack BOS on the show yeah right we've had Ray Jang uh on the show we had uh Brent bow as I

was was yeah okay yeah Brent yeah right so because like yeah I mean they're all preaching the same thing right uh

so tenants toilets termites I think that's what that's that's Jack's yeah saying right you're saying no stat which

I think is also incredibly appealing um so then what are the expenses then in

running a a a land business so I'll tell you for the most part if for a brand new

Land Company it would be marketing and Engineering right or and improvements so if you had to put in coverts fences that

kind of stuff um that would probably be the biggest challenge but just if I could back up for one second I want to

talk about cuz I didn't get to answer why why land is the best investment I think it's a it's a sure bet no matter

what right so if you buy commercial property you buy a house buy something like that there's always that little that buffer zone where you don't know

what's going to happen right your your rehab goes up goes over now it's not a deal anymore interest rates turn and you

got to give back $80 million worth of apartments right we saw in Texas so

with with land you buy 100 acres right we look at it through that first lens of 10 acre subdivides so there's for sure

profit there right we usually aim for somewhere between like 500 a million per wrench uh so there's going to be some kind of win even if it halves right and

now instead of 500 you make 250 still a sure bet right nobody's going to feel sorry for us if we made 250,000

instead of f right right but with land you can take it to the next level always it's always a strategy so instead of

doing 10 acre tracks right you do some engineering you break it down to five acre lot or two and a half acre lots or

one acre lots so instead of you having to take a loss right with like apartments or commercial of any of those guys you just hit it with a little bit

more capital in a few more months and you can always increase the output no matter what it's a blank canvas even if

you overbought even if you overpaid you still continue to in a little bit of time and capital into it and you can always Force appreciation higher so much

so that some some of them you can push them in the 10 million 20 million right Profit just by continuing to inject more

time and capital into it so it's a for sure bet you're never going to lose and and I say never but I mean there's a lot of ways to increase the the value of

that property by just putting in more time and capital gotcha uh so marketing what kind of marketing are you guys

doing to get land this is the funny part so we let we talked about podcasting a little bit earlier we have not marketed

to a seller in 13 months directly so we have zero marketing spend right now all of our lead flow comes

from our students and just education that we put out there and like is this a deal and then we put a lot of for

outward education so and like right now we don't have that many students but we have enough deal flow where we're it's

crazy yeah so we're just looking to grow the team at this point we have 550 ranches in our spreadsheet and it grows

every day every day yeah so you say Ranch just I'm I'm curious if maybe that

means different things in different areas so what does ranch mean when you say Ranch you know maybe somebody's

going to ding me they're going to watch this and be like no he blew it because I'm from Texas right but I'm a city boy I'm not even from the country so the hat

is just for show yeah branding purposes only no I'm kidding uh so a ranch is

usually like a workable rench right so you're G to have like animals you're going to have equipment you're going to have maybe uh irrigation stuff like that

um where in another type of property you might say a farm right where it's only raising animals yeah because in my head

you say that I'm thinking farmland we've gotten cows we've gotten cows free

cows if you buy enough land proper you get free houses yeah so like we always make a joke about like why would you buy

a house if you get it for free if you buy enough land yeah yeah so uh what are

what's the definition textbook I don't know but yeah in my mind Farms it's like more like agricultural based like

animals raising animals cows that kind of stuff and then I think a ranch is is is the kind of production so there might be a little bit of everything might be

animals there might be some growing going on there that kind of stuff in my mind I'm just imag it's it's a big giant tra land that nobody's using outside of

the city right okay but there's got to be some parameters as well right like uh what's the minimum

size right now we're looking we've done smaller stuff but we're looking for 20 acres or more just because if it's a 10

acre rule we can at least cut that into two loots minimum mentally I'm looking for I'm thinking about 100 acres in up so recently I I we checked on MLS and

that was the first search we did 100 acres and up and the cool thing about land is the bigger the property is the easier it gets right you need that

initial cash in ction you need that earnest money the option money the engineering money but a bigger Ranch has

a lot more profit involved right so if you bought a 20 acre lot you can easily split that into 10 and 10 you're done in

two or three months it's a done deal right but you know again the profits kind of like if you're going to put in 10 20 30,000 and you only pull out 50

but if you buy a 243 acre wrench and you extract a million dollars in in four

weeks or something right so the bigger the properties the the more leverage it's in there so in some cases we TR the

property we do our Magic on it and uh we sell a small portion of the property and pay it off and the rest is ours free and

clear what states are you guys buying in uh mostly Texas we're looking at

other states we done some deals in Florida but Texas is just there's so much opportunity there we're just

looking anywhere in Texas gotcha um and then there's got to be some sort of like

has to be a certain distance from town or something yeah so you're not doing it

like 100 100 miles out of town this is where we differentiate from a lot of other land people is that they like they like the desert squares you

can get a lot for 500 bucks with 80 $87 down and like yeah you could do that and

I think if you start there that's perfectly fine but I like buying land where people want to be because I can I

can charge more for it I can get a really great opportunity for it and I can move it faster if I buy it where

people want to be so usually like being within think of like the city as a donut if you think of Austin cut out Austin

and then go around Austin and that's our buffer zone so we're usually Within 45 minutes to an hour of any major city and

that's where all the money is being made right now so are you at a point where like city lights are still there or or

pacity lights in some cases no we're pity lights okay yeah so think about I'm thinking in my mind like a good 10 to 20

miles out is amazing because that's an easy commute back and forth 30 minutes is still good 45 minutes you're getting

questionable I think the cut off Mark is about 60 miles once once you're an hour out yeah you're kind of like in no man's

land 61 miles you're done right so yeah I would say 30 minutes or under 10 minutes better you know so that's what

we're looking for like the 243 we bought it's like 10 miles right outside Loop 1604 in San Antonio so see and my mind

that's still the city even though there's no you know lights out there so for you it's that you you really can't

lose because you can always Force appreciation no matter what yeah and for you you can basically act like a

wholesaler flipper without the stress of actually dealing with the property absolutely gotcha um if it's so easy why

why isn't everyone doing it not enough information is I think is my my point there's not enough people information

and we've had to we've had to block people like hey you're teaching too much about land like this is what people you

you get to a point to where that these deals are so profitable that people get mad when you're when you're giving out

public information like saying teaching on YouTube like hey you know this how you do land people are like dude that's

like our best kept secret for the last hundred years and you guys are blowing it for us so for one people keep the information close to the chest um there

is a a capital barrier to entry right so sometimes these these ranchers or Farmers or whatever they want like

50,000 earnest money 100,000 of earnest money it's not a joke right you can't put down 100 bucks on some of this stuff and you can because we've done it right

but it's not as simple it's not the norm yeah then you get it under contract now what the heck do I do so average wholesaler goes out they get it under

contract and then they start blasting it out trying to sell the whole 200 acre track and we get an inbox they want 7.4 million has to close in two weeks like

sure guy ain't G to happen so you have to know who who is your buyer right you

have to have the capital in place to be able to put the earnest money down m uh a ranch that we're doing entitlements on right now we're aiming for like 500,000

in entitlements so you do have to have some Capital to play and that's where you know we come in with our students is

we say hey look you guys find the deal we'll negotiate it close it contract it we'll put up to Capital got it so you're

basically the OPM yeah for your students yeah okay so then how does that work

you're using other you're you're we're using OPM but we're operating as a lender so you're you are are taking

capital from elsewhere and then you're the bank here so kind of like not quite private money

it's not quite hard money but it's some sort of hybrid well it's private because we don't we don't run anything on

anybody so if a student brings a deal we don't care what their financials look like or the credit or anything we underwrite the deal right and that's it

so we but it's not your money yeah we we got to grab from somewhere else and that's still private too yeah right so

we'll have guys just shoot us over the cash and say hey you guys want to get on this we need 550 let's do it send it over done they're not underwriting the

deals either they're just going based on our reputation no it's their money they're they're just trusting in you so that's it what are you guys typically

borrowing at uh from your lenders the percentage uh the rate the rate oh dude

this is the best part um we pay we've been paying our lenders like 50 to 100%

MH wow whatever they want is the answer whatever they want whatever they want and like the thing is is like the best

way to get more private capital is to overpay for private capit and they open up their wallet so we've

been overpaying since we started and that's how we're able to get millions now at our fingertips cuz we're

overpaying our Capital yeah so um it's it's a long-term play because everybody

struggles like if you had unlimited wallet what would you buy like whatever I wanted you know so if you can get good

capital and good opportunities and we're creating such large spreads I'm like hey I can share this Roi with the

lender because it's not my money if I can make half a million dollars with your money like hey how much you how

much RI do you want you know right it's a different it's a different conversation where a house or apartment

like it's limited Capital like if I give too much Equity to the to the lender it ruins my cap rate

right you know but you say uh 50 to 100% like I give you 100 Grand you're gonna

give me 200 Grand talking sometimes times sometimes no problem and sometimes more sometimes

over 100% it just really depends on the deal but that can't be sustainable over a long period of time well the thing is

is is that if the deal flow keeps coming in like like right now I think we we measured our pipelines over 100 million right now gotcha so every time we do a

deal if we're looking at making a million or two million or four million and the lender's like hey I'll put in an

M but I want two back like pencil it out Works fantastic play it still works out so I

think that's why like right now we're focusing on on the the capital raising part because are you at times giving them more profit than you is are they

walking away more than you are no I think I think the the highest we we did that at the beginning cuz we would like

lock in rates but now we're getting like okay we had a deal we're going to make 100 on it so he was like yeah we'll give

you we give you 50 Grand back and we ended up getting a haircut on it and we ended up making like 30 grand and the

lender made 30 grand so like it still the deal I think right now we're maxing out like at about 50% profit yeah you

guys put up the cash we'll put the intellectual capital and we'll split it then we'll stop there but there's no way we're going to go in there and make 300

and the lender makes a million now we we'll stop at 50/50 yeah yeah gotcha and that makes total sense to me okay so um

how are you guys so you guys aren't spending money on paperclick right now or anything so if someone wanted to go

get land right now what are you telling people how to Market to get land tell them Daniel tell them just tell them uh

go to zillow.com and find stuff that's listed and make offers dude you can go shopping on the MLS bro that 200 the 200

Acres we picked up 30 cents in the Dollar on the MLS for six months shooting fish in the barrel bro

nobody's playing nobody's playing the game I I pulled a list just in the San Antonio area of ranches that are 100

acres and up 82 listings so the the thing is the thing is that most people in the land space they usually deal

100,000 or less the higher in price point just like houses there Le there's less players that operate at that at

that price point so we're learning is that the more we go up in price the less people are playing at that level so

every all the people on the MLS like we need a motivated sellers land sellers are not motivated they've been sitting

on that land for 50 years so what's the what's the what's to hide next motivation of that it's on the MLS they

already raised their hand they sign a contract with an agent they're motivated right now to sell so we just count that

as like hey that's motivation enough for us and it's just time so we make the offer we wait they come back six months

12 months later we had a deal uh the lady wanted 1.3 for a property we made

our offer nothing it came back 14 months later we bought it for 350 MH 350 and

she probably got beat up by wholesalers in the midst of all that lock up of property for 6 months all that stuff so

that people time wears them down where they come to their senses and like hey D

Anthony they made they made a sensible offer let me go back and see if they'll give it to me again so you guys come in

if if my math is correct about 25% yeah right well I mean it's different for every property because we're

underwriting it based off of what it actually is worth because some of these sellers are like oh I want there's a and

this is this is for everybody here it's like 5 Acres sold for 50,000 an acre so I want 50,000 an acre for my 500 Ranch

I'm like it doesn't work like that it doesn't math out like that it doesn't math out like that so the bigger the property the less price breaker you get

for it and it goes the price breaker goes small goes larger smaller the track right hence you can get an that's why

your model works that's why it works it's the wholesale model with Costco you buy in bulk and you sell it by the by

whatever you want I think something that works in our favor is there's no true measuring stick for the comps there's no

comps right so a lot of times probably 20 or more times agents have was like

you're never going to sell it for that nothing's ever sold for that in that area and we immediately create new comes all right yeah so I think that's that's

something that's cool that works so you say like do we buy at 25 cents well 25 cents of what right 25% of the listed

price right because the agent came in and told them that it was worth 3x of what they were told you know that they could get for it when in reality you

know the way we break it down is what would a 10 acre track sell for so if they had 100 Acre track or 200 acre track we don't care about any of that

what can I sell 10 acres for and then we back into the deal that way got and so we're not necessarily looking at comps

like to say hey well 200 acre track sold for 20 million so that's what we're going to buy it for like it doesn't even

based off your exit strategy we're just looking at that that one lens and then like comps kind of count but they kind of don't all right I'll tell you why so

let's say that everything around there is selling for 150 an acre but we know damn well that it's close enough to the

city that we can easily get 199 we're just going to roll with what we think we can get for it and and kind of that's

like our our magic exit is at 150 to like 250 for a 10 acre track so as long

as we can hit that demographic then we're done especially seller finance right because these guys can't go to the bank or the credit union and get seller

financing uh so if we say hey look everything around there selling for 150 to 179 we don't care we're still going

to push it out at 250 with 10% down and know I know we can get it every single time because I only need 25 Grand to buy

gotcha so you came out uh to my training and I'm kind of heartbroken

right now sounds like you didn't even use it it sounds like you just did everything by email you all the same cloes but he just

typed them out instead of saying them I really did that's that's 100% fact I

used your sales scripts and I was typing it out 100% so so you never used the the

the lines on actual homeowners no I I never did because I used it I used it through email and then after I met him

he was doing all the sales calls I'm like I'm like Anthony you're up you know and I I

didn't have to practice with it so gotcha and it was one of those things where I was I gave him the I gave him the script and he was like oh I use a

version of this so he like modified and created his own little version of it because he's already a sales guy yeah so it was just like it was there was no

offense to you I'm not offended I'm just heartbroken right you spent hard you spent hard hard earned money on it right

I did I did that's funny yeah I mean I still remember the sales call as a matter of fact it might be recorded it might be on my drop boox if I wanted to

uh to pull it up so uh all right so then the next thing you're talking about is then raising Capital mhm so what is the

vision for raising Capital um I think the vision right now is where we when you get to larger

amounts of capital you have to create the right vehicle for people to invest in they're not going to invest in uh

Steve train LLC just because it's not an offense to you but you don't have the right vehicle to receive and oversight

so what's the next step is a fund so a fund is SEC regulated you have certain rules and parameters you have to fall

under and then people with higher net wor are willing to put Capital into that structure because it it feels safer not

that it is your own due diligence but um it feels safer because it's regulated

right yeah and the the flip side of this is you can do a fund for any type of model you want including up to losing

$80 million of apartments no one we're not attacking anyone here we're not talking about

anyone here if you felt offended it's because it was meant for you no names

but it's one of those things where like you can and a lot of people that run the fund model they get paid to acquire they

get paid to dispose they get paid for management and like our fund is like I don't really care about any of those

things we're we're running the fund at Cost we'll pay out our own pocket I just need money to invest because every time

we create a note and sell it we're giving an Roi to that lender if I can sell my note to the fund I can give the

ROI to somebody I know and trust and like versus giving it to somebody I don't know and like and Trust right so

if I can wash my left hand with my my right I'd rather do that and create the right fund structure that way I can keep

doing the the transaction I want and fill that cash burn problem right so I think the the vision for the fund is uh

of course we need the initial Capital right for the earnest money the surveys the engineering that kind of thing we're

going to take that ranch and we're going to property Farm whatever you want to do right somebody's like this one's not a ranch it's a farm uh we're going to take

that property and we're going to convert it into both notes in cash right and again like if the market gets weak then

the note game gets soft and you can't get rid of the notes so the idea of having the capital in place is that we can redeploy the same Capital over and

over and over again right so uh lenders put in 100 million right we're going to do we're going to raise 100 million for

our first raise four rounds of 25 million we have one soft commitment for 20 already nice right so people kind of

see the vision of what we're doing uh we want to have the capital in place so that if we do get to a point to where the ranch is sold out and we have a

stack of notes we can sell them to ourselves effectively right and then redeploy that Capital again so use that

cash flow to pay back the lenders that put there if they're getting a 18% create distributions as well MH whatever

it is that that Capital that's sitting there at 12% interest can go right back to the investors right because that

thing's recycling every month it reloads and keeps paying those people down without us having the pull from our Capital pool so that's what we're going

to do we're going to continue to take that capital and just recycle it into New Deals use the notes to pay down the investors over the time gotcha so uh the

notes you've created uh to sell or the notes you created had to sell the land

that youve subdivided right to the to the end buyers you're taking those notes and you're selling

those notes to the fund yep that's the intention yeah okay

so all right so it's uh are you selling the notes to the fund and this might be

too technical here let's go let's go deep but at what value are you selling

notes so we would like to sell them like 80% of value because even like that it creates like a 15% yield and then if

they have seller pays back early it actually increases the yield which mostly you have sellers that pay back early so our Target for the fund is

we're definitely no guarantees but there there's you gotta be careful here yeah

you do have to be careful with this stuff it's true no this this one pretty good way to go to prison yeah so like we

we're offering a 12% preferred return because we know we can we're creating 12% notes so if we sell them discounted

we're going to create higher yield at that point and then um if the note ever pays back earlyer we have to restructure

the loan as the note just and that's the other thing too there's three things you can do whenever a note comes due you

restructure or you restructure it like you did in Co you foreclose like they did in 2008 or what investors do is they

do cash for keys and resell it again right so we have those options in availability without actually selling

that note to John Smith over here who's just going to do that by himself we actually hold it within the fund structure and have the ability to

recycle and re re recapture that note if ever comes defaulted uh so so before my

next question uh for those that are listening what is a pref

return cuz they're using some fancy terms here yeah a a prefer return is essentially a not guaranteed rate of

return but it's a preferred return that your fund is offering in your

PPM to your investors that invest into your fund so what effectively what we're saying is if you give us $10 million we

would like to give you back 12% that's our Target right um that's what the preferred rate of returns and this is

secured by real estate 80% loan to value in good assets that we can always

restructure and repurpose gotcha uh 12% sounds really high and I understand that

your notes are at 12% but just because you're no 12% why would you offer a prefer turn

because you don't you you can pay more absolutely so why would you because a

preface it's not a guarantee but it feels like a guarantee m yeah right why would you offer a number that's higher

and make you like would it be better to potentially under promise and overd deliver versus setting a high

expectation well it's it's it's a it's a juggling act you got you gotta kind of do whatever it is but my whole thing is

that a lot of larger capitals are looking for good safe Investments so we want to make sure they get a good safe

investment with a high rate of return because we're creating notes at 12% so 12% is in well I'm not saying don't give

a good return no I'm saying he's saying how can you guarantee that much yeah right like it's it's um because yes you

can hit it right it's that whole deal of under promised and over deliver versus like setting really high expectations

and then the one time you don't hit it now everyone's upset so here's here's the other thing too so all the assets we're buying are usually 50% loan to

value so if we were to hold and create these notes ourselves we'd be getting a

50 to 60% uh Roi on our capital for 30 years yeah so giving it 18% return is

very minimal MH for that fund structure so it's really easy I mean we talk about

we're paying our lenders right now 50 to 100% yeah 18% that one I can't pencil out we're going to have to we're going

to have to sit down with a spreadsheet with that one that one's not making sense in my head 18% and it's not that I don't believe you I just can't get it

around my head 18% is it's it's easy for what we do because I can buy a $100,000

lot um I can buy a $100,000 lot for 80 grand and provide 15% return mhm

just like that the target of our average deal on these bigger ranches is at least 50 to 100% minimum right that's not even

including on the back end but this isn't the 10% we're looking for in flips oh no no no this a totally different we buy for if we if we spend a million in cash

we want to pull two out of the deal right typically it's not our cash right so it's dead eights infinite returns 12%

for the notes alone and then that's not even including partials that's not even including us taking it to the next level through the entitlement process yeah so

where uh if we get a ranch with five or 10 % down or 100,000 into the deal and

we pull out a million in cash at the end of it in 12 to 24 months so it makes 12 like insignificant like if somebody said

hey I'll lend you $100 million at 12% like can I get two right it's such a such a low Target for us even if we took

zero and just paid the 12 still fine it's just one deal right when you have when you have an infinite lead flow so I

think that's something that makes us a little bit dangerous is that we if you you can't go out and raise a $100 million if you have a $10 million

pipeline right might you might find yourself upside down pretty quick yeah but have our lead flow is so tremendous

that we could replace a loss no problem let's say we don't hit a Target on a on a deal and we we only make 11% right

we're 1% short now but on the next one we do 5x right real easy to soften up that one

point um you said you got a soft commit from 20 mil for 20 mil from one person how

did you get a soft commit for that there someone that you already have a working relationship with yeah yeah gotcha somebody that came from inside of our

community okay how did you get that so you say within the Community mhm was this an investor in the community the

student in the community or a referral from a student inside your community it's actually yeah it was a referral from somebody inside the community he

was a family member Goa yep and he said hey this guy has some money to spend he wants to talk to you guys and it started out small I think the first time they

went in with us was 200,000 um we paid them back 100,000 in Under 12 months and

uh they thought that was amazing 200 turned into 300 yeah gotcha in Under 12 months so yeah I mean I think a lot of

people would be happy with that return yeah and and then the other thing too is like we we like try and like get long-term guidelines but if we complete

it faster say we did that in six months that's 100% annualized return so that's another thing we do with our lenders uh

before the fund right this fund has not launched yet uh but if we uh pay them the same rate of return no matter when

it closes so if we take cash and we finish the deal in 30 days or 60 days or 90 days they get a flat rate right so

they said hey yeah we'll park it with you guys for a year or two years but if the deal's over in three or four months they get all their money back right away

and then what happens is they get really excited and they're ready again and then they call their friends and their friends and their friends and now uh you

know we have the capital is kind of starting to stack up now people are starting to call us and say hey can you guys use 400 hey can you use 800 hey can

you guys use 200 we're like yes but hang on right right so we make sure that us

like we bought a b deal or a B+ deal amazing one of the best deals we ever done in our life but for our investors we look for Like A and A Plus deals like

we got to stop buying a deals it's all let's do all a plus now so we're extra careful with other people's Capital you more so than what we would be with our

own gotcha um so you guys also have a CRM yeah I'm

seeing this on a shirt it's not in the talking place here but clearly you guys have the CRM so talk to me you guys um

somewhere along the lines somewhere along the line started a CRM yep and

started a podcast right we've only been talking about land this whole time yeah right so

like what what is your guys's core Focus I'll take it first goe go ahead so um

having a a a marketing and an MLM background uh it kind of gave me the

vision for uh what what you can do in numbers and and volume right so when I started trying to when I started decided

I was going to focus on land I noticed that these big deals with these big spreads they're tough to find not going to lie right especially when you're not

going straight to the MLS like we are now right so I had a vision is um what

if we created a mastermind where we just taught people how to go out and find these big deals right because they were

so hard to find so what do we do other people's money other people's time right to be able to scale this thing so that

was the vision like what if we could teach a community of people how to go out and find these deals bring them to us and then we'll do the experting on

the background raise the capital and close them so a mastermind was the first Vision but I said if somebody joins a

mastermind on Monday you know 30 days later they're out like that's pretty cool I'm out of here so I thought you

know what would be a sticky product to keep them here so all we did was just white label ghl mhm you know we came up

with the idea in December we launched February one something you know February two so like it was like under a six week launch right because we didn't want to

be known for our CRM and having the best CRM in the world we just needed somebody to download a bunch of data right put a

bunch of information in here start to use the product and Mark it so it would be a little stickier than just picking up all of your toys and going home after

being in for 30 days so that's all it was it was a way for us to create a mastermind with a very sticky product so that it's not so easy to leave and of

course the Brand's more recognizable than being Daniel Martinez mhm you know LLC they'd rather be in something that

has a name and a tag on it so it was that's all it was it's kind of just a faux product for us to build a brand and build a name for ourselves well and it's

worked right uh and it's it's a brilliant idea because I'm actually copying that same exact idea sick okay

right it's uh you know we have our sales Community you know it's for 97 a month but Community is not

sticky but if they buy a sales CRM for 97 bucks a month that also includes sales training they'll stick around

forever yeah or at least that's the Hope yeah right it works yeah well clearly

right I mean this is something that uh let's see the I mean Russell Brunson right he's the one that's got the Lynch pin deal I I don't know you pay

attention to him i' I've know I know of him I just don't know what he offers or what he does I his whole thing is is is all about spending as much money to get

someone into a product that they'll never right but education is a product people will leave all day yeah right so

how do you get in the stick that was it that was the only idea man I thought we were going to build something from the ground up and then Daniel finds GH was

like dude just let let's just use this and in my mind instead of pushing back like I'm the visionaire we got to do it my way I'm like dude we can how long

will it take us to set this up he's like we can be up and running in four weeks yeah do it which I think is much shorter

today it's it's l shorter today for sure now we can put stuff up in a day or two right yeah so and our whole thing and I

think you kind of mentioned a little bit is our entry into the marketplace everybody everybody wants to be influential in the realistic Community

but like yeah there's a lot there's a lot of different ways you could do it so you have coaching which it's very

clogged because everybody wants to be a coach so after you do one deal after you want to be a coach after you do your

first deal so then like there's 10,000 people trying to go up the coaching route and you got the book and everybody's like oh I'm going to write a

book and I'm G to be influential that way and then they're speaking and uh events which people go up that way and

then they like oh yeah there's like everybody going up the coaching and the event speaking around like if I can speak at every event I I'll pay you

whatever pay to get on and then like there's pay to get on to speak oh yeah come on

you didn't know that I didn't know that dude that's the whole thing yeah you don't even have to be famous you just drop some Stacks in your own stage see

that's crazy right cuz like I'm at a point now where they're like hey you want to speak like you want to pay me they're like no okay I'm not going we

got one of those from Houston they're like hey we want you guys to come speak okay awesome sounds good let us know when okay it's five grand like we ain't

going you need to give us five grand to go I still might not go exactly yeah so so people pay wow okay it's it's a tough

world out there I had no idea so like and our our thing is so they're doing me a favor by letting me speak for fre

yes lucky you yes and like I said even even even for us like we're getting

content out we'll pay a videographer we'll get an Airbnb we're gonna drop some money while we're there so I'm not

paying to show up at your event I'm sorry just not doing it and then not not to toot our own horn or nothing but I

think we're doing pretty good you know what I'm saying so like well guys are doing great yeah if we go on your stage like I think we're going to bring some

information that people have never heard before it's a unique strategy U it's something again that people keep very very private so like if you invite us to

speak like I think we're we're blessing the community right right so we're not going to also pay like yeah even if you

offered us cash like I still don't want to be away from my wife the kids I rather just stay home well yeah and that's that's the challenge right it's

like what I'm asking for and no one want will agree to uh so so you were saying so speaking podcasting is another route

and then products or services so I think podcasting and products or services are like the least path at least path of

resistance M so we went through we started hyp mind we just hit 3 years old February 2021 so we're three years now

congratulations it was through it was through that and then we did that for nine months I started the podcast uh N9

months later 2021 and I just went hard on it I mean I was doing like five 10 episodes a week for a long time and I

would release five a week for a very long time so we're like 476 episodes right now yeah 300 hours of

content I keep kpis now yeah that's great um 300 hours of content which is

like 12 days it's crazy so I'm like okay so we got the podcast C we got the

product Services now we're speaking and then we're working on a book we want to releas a book so it's like you kind of

come through different ways but you got to figure out what that first way is that you're going to enter the marketplace so like hive mind CRM is

kind of like our brand but Hive mind's our brand that we're kind of following into because we don't want to do this forever like I don't want to be that

dude that has to show up at every event and like I'm good like if I can create a a brand that enters into the marketplace

and I can put somebody else to run it eventually then that's that's all in all goal I'll tell you something embarrassing we launched the coaching

program M and uh the minimum was 25,000 the middle one was 50,000 and the top was 100,000 and we got what was the

lowest one 25,000 25500 so now that we got students we don't want to coach anymore we don't want people to just be

randomly calling our phones and and and blowing us up so like dude if we get another 20 students I'm quitting right

so we prefer the the method of of do a community let everybody in the in the group learn and then they could just bring us the deals as they come in

submit them to the portal but that one-on-one coaching stuff like we're done with it at any price tag yeah yeah

one rather just do deals oneon-one coaching is really tough it's it's crazy it's crazy so like it it's it's been

it's been interesting we've been kind of diving down different things but I think I think our model it's it's going to be

interesting because land is a harder bear to entry because of all the other problems you come into and once we solve

that money problem on the front end we can be their lead source to lead

contract to lead cash to cash infusion to buy and take down the deal to lead

dis lead disposition and all the way to the end even to the note side on the back end so we we can we can I I handed

one of my students he was struggling a little bit like hey here's a deal you're going to make money on it if you do ABC

so he went through the whole process and he's like off 5050 50 5050 to deal with you like okay that's amazing I'm not

doing anything with that transaction you go do it we'll put up half the money we'll put up all that stuff but now he's

doing the transaction a toz and I'm not even participating into it he had a deal where uh one of our students found a

lead um he had a buyer in that area that buys and we gave him the lead he's going

to send us some money for that deal that we didn't participate in all right so I think like in the

spirit of multi-level marketing and network marketing it's like we just need the people right they're the distribution Channel they're the distribution channel for everything yeah

I think I think focusing on uh teaching people the game let them go out and pick up the deals and also they're doing the

right because like having to go through the sales process of selling like 10 or 20 Parcels talking to engineers and visiting the site those kinds of things

there's a lot of moving Parts yeah so like how could we scale this thing we one the capital right so the fund most important part um so that we can

bankroll the people that are out there doing the deals what does that lead to that leads to our students bringing us a deal saying hey I need a borle $2

million um okay cool we'll put up the capital but now we don't have to participate in the deal at all right so we they need a capital at a at a very

high rate some kind of partnership or something um and then on the back end we could even be the note buyer right right so so the the we're we're doing deals

now passively where the students are out there doing everything and we're not doing anything just putting the capital

and there's no overhead from employees which is the best part how is there no

overhead because we're not we're not paying till they produce just like a salesperson yeah so who is analyzing the

deal so we analyze the deal because essentially we're the one bringing the capital so we'll help analyze and

negotiate up front and they're just bringing in elect Capital we have a team we have about five people that are there

with us that are so underwriting they they've been around us enough to know what we're looking for so they'll take a

first look at it make sure it's something that we're interested in or that we think they think we might be interested in and then they'll send it to one of us for the final blessing so

we had an event in uh October we do an event every year uh one of the speakers he's not real estate based uh Daniel

Burke Aguero told me to give him a shout out so he was not real estate based he's kind of like on the coaching side of

helping people kind of get their mindset and their their personal side in order to get their business in order

so no real estate experience he came spoke at our event from a referral from somebody in our community and um he's

like can I try this you guys teach me like yeah here's what we do how we do it and he just went running first kind of

figured it out he we he found a deal in 31 days he cold called for like 20 30 hours just cold calling agents just

exactly what we talked about he found that deal we bought in January for 243 Acres mhm so we're paying him 100 grand

for his month of work that he found to find that deal and it's just amazing

like I've never had somebody like go from zero to 100 so fast and now he's like I think I got three more deals

based off of your underwriting parameters I think they're going to fit the box where you're going to fund it and uh we're going to look at it when we

get back home except Each one teach one model yeah right so once somebody learns it then they can teach their peer group

two three four people so that's why it has kind of like that MLM structure oh it definitely has an MLM structure eventually Maybe have 10,000 people out

there doing deals for us and we're just providing the capital so we we have we have a Anthony's a Visionary and he has

a he has an opportunity in his mind that we'll do a thousand transactions in a day inside of the organization inside

the organization like how do you do that it's a lot of people and processes and

it's not you on the wh cranking the whip behind somebody to make sure they work it's

them going out there and doing it because you provided all the tools for them to do it and they're just doing it

because it's profitable right I love it so what does someone get if they're using the hive mind CRM they

get for one access right so uh it's us doing a one weekly coaching call um they

get the CRM and a CRM can be a pain in the butt right so you got to get in there you got to set it up you got to upload your list you got to set your automations you got to have all these

different pipelines and automated responses right um our customer service department does it for them so it's completely hands off like you don't even

have to know how to use it for one um they get access to the community knowledge uh we literally help like

we'll jump on the phone and negotiate we out raise the capital so all it is like it's like a us like shining a you know

the Batman signal it's the hive mind signal come check this out guys trust me it'll be worthwhile yeah gotcha so if

someone wants to join I'm looking here hivemind disruptors Doom h i v m i n d

disruptors dcom or text red to 2110 9721

1842 that's it okay and then if they join that then they get access to to you

guys in the group coaching to learn in Greater detail what we talked about today absolutely gotcha all right I mean

that sounds like a steal um we think it is we think it is like yeah we we had a we have a student

he was working at Costco he had a few opportunities to come up and it takes takes people like six six months or so

to kind of understand what we're looking for some people pick it up faster and I think it's based off your individual

like knowledge and skill level but I mean we have a single mom in there she's got a few opportunities we're working on

like it it's just cool to see people working and creating large opportunities

that they they might not even we tell people don't buy it with your wallet you're not buying these deals your wallet because we're going to get

creative Finance yeah so and and we'll raise the money so if you're part of the community you have access to all of our

resources just by being a part of it yeah you you have like new new students making 50,000 100,000 right assignment

fees on the first deal the mailman made 50,000 on his first deal one of our students is going to make over a million

on his first deal so great for yeah it's a it's a pretty cool Niche to be in I don't think that points to like

the genius of Daniel and myself it's just where there's bigger numbers involved U there's a lot more profit

involved and I think in my mind somebody sends me a 4 acre tract and I get butterflies like I don't want to look at

it I don't want to put that much time and energy into something that's going to produce you know small Roi but if somebody sends us 100 acres we're all

over it right and like oh dang where's this at what are we talk about you know like the upside and like it sounds

fairly simple mhm necess easy but fairly simple it's not really complicated there's not a ton of moving parts and

you were saying earlier like if it's if you didn't if it's not a great deal you can force

appreciation what's the downside with the strategy I think buying too far away from the city where there's no buyers so

we bought 100 acres in a place called Orange Grove Texas last year and we still have like 30% of it after about a

year right we got it for super cheap but it's not moving right so um I think that getting stuck with the property uh we

found a group of investors by Dallas that bought three ranches to do the same strategy um the guy that led them into

the strategy didn't know what the heck he was doing and now they winning how much did they go into the deal they they bought it too high and then they

borrowed against it to get Timber equipment no but what do they got total

cash out of pocket into it oh it's like they bought uh 250 acres for three and a half million so they're averaged like

12,000 an acre and we would have bought it at 9 and exited at 18 they bought it at like 1213 and they incurred debt with

now they're at like 17 18 per acre so now there's no way to exit the property

without large cash injection so that's the next thing now so now you got three and a half million stuck into a deal and

the only way to get out of it is to raise more Capital to force appreciation only so that there's a problem um going

in 50,000 worth of engineering and earnest money and all that and then it turns out you can't do it what you thought you wanted to do with the

property or after us having it under contract for three months or six months there's no buyers coming right so now

you've already like cuz we don't wait to close we start engineering immediately we start surveying off like we're ready to go right so normally we try to make

sure that it's a sure bet we go into it but yeah you can lose 10 or $50,000 worth of earnest money on a single deal

so I think even more reason to have that guidance going with somebody who's experienced as opposed to just saying like oh I saw that that podcast on real

estate disruptors those guys are doing it we could do it too right I think well it's really easy to forget about the things that can go

wrong right because we hear things like oh that sounds great I'm gonna go go jump all in and this and that so paying

too much which is I mean I guess it's experience component uh or or or

guidance component and then buying too far which is really the same thing as paying too much I mean you shouldn't buy

at all it's too far yeah anything else um I think paying with your own

cash um one thing that we've noticed and this is this is crazy land has trillions

of dollars of dead Equity M it's dead yeah in the property just sitting there

they've owned it for 50 years and it's passed on Generation generation and it's literally it takes some like us to

unlock it so it's to your detriment to pay cash for things there's people that do what we do they buy everything cash

I'm like why would you buy cash you're crazy every one of these sellers has Equity you can ask for seller financing

I don't care how much they how much they want down if it's a good opportunity you get that thing with 50% down buy that

deal m because you can lever sell financing right so there's a lot of

equity there that you can play with and maneuver and get creative with and I'll I'll leave it at that I was going to

point at some other landmines um you can come across endangered species oh yeah right Florida bloodlands

Wetlands um just like you can get push back from the county so right now we're looking at buying a deal west of San

Antonio where the developers pissed off the city and the county so now they don't want to do business with them they're making it extremely difficult uh

for them to be able to do business there so those are some landmines um things that you got to watch out for um type of

soil that's on property right sometimes uh if you're looking to do a development and it's not the best for like septic systems that kind of thing um no access

to utilities no groundwater right in Texas we have groundwater right um so if there's no Public Utility District or

Co-op water uh you can drill Welles and you can produce water that way but in some areas there's no groundw at all so

again it's just like knowing what all those little nuances are and I think just following somebody in right into your first handful of deals and then

after that you can go off on your own and do whatever you want to do but yeah lots definitely lots of pitfalls yeah getting some guidance yeah so

um why what is your why man if you had asked me five years

ago I would have said my family MH but I think once you get yourself comfortable and you get your family comfortable um

my my mind is automatically starting to go how big can we scale this thing right because I see a lot of things that are

happening around the globe right with the famine and and limited access to resources when I was doing that Solar

Company uh I had I was trying to track leads for people that wanted solar so I threw an ad on Facebook uh it was actually Craigs List like hey solar

panels for free right so they can call me and I'm like we get you hooked up this guy called me he was in Mexico and

he's he was in tears the guy's like we have no electricity in our village like I really need those solar panels and man I started to cry and I was and so that

that from that day forward I said I'm going to start working on infrastructure in places where they need it the most M

and uh you know just thinking about all the different needs so we have a lot of different charities and non profits that we have on our radar things that are

important to us um that's my why I want to start to move Capital at a scale where we can start to make an impact and

things that are important to us all over the planet not just in the United States but that's my why man I I reached the point too where fancy cars and shiny

things I don't own a Rolex um those things are so insignificant to me I want to be able to to scale this thing up

make a large volume of capital so that I can move it into things that are important uh that that would reach far beyond like the people that I know like

my immediate sphere of influence yeah that's why that's awesome how about you

um for me is more of the on the information side I think um one one of the big reasons why I dove so hard on

the into the podcast side is because there's no readily information about land in general and I think it's you

don't know the impact you can make over a lifetime of just producing content um

and like I I one of the other reasons why I love just grading is I can't have my my daughter my daughter's six and

four and I have a son ons 3 I can't have these conversations with them right now so I want to have and record this

information for them and other generations to listen to forever I don't know what the future holds but hopefully

this information will be out there for a very long time and people can learn and start taking action and um it's

Evergreen that's why I love doing stuff like this it's Evergreen content so you don't necessarily know that the impact

and influence you have on communities that you never speak to and I think you've you understand that most after

doing this for 5 years you don't know that you don't know the really true impact you make just by providing the

information so he's more on like providing the physical stuff I'm more on like the information side of let's make

this information readily available that way we can make a large impact in this untapped resource of a blue ocean of

land yeah if I could add a 2.0 kind of what he said and something too that's been real heavy on my heart is that we

grew up super super poor man like a lot of people have that story right that background um we you know we had to live with a couple times growing up it's like

my dad didn't have land his dad didn't have land right so a lot of the land that we're finding these big tracks that

are like 500 Acres 1 th000 Acres it's been concentrated only to a handful of families so that leaves a lot of other

people that were disadvantaged that never had the opportunity to have l so with what we're doing we're breaking generational curses over and over and

over again for a living so that's something that I'm furious about like this best kept secret if it was if this was out into the public a long time ago

then maybe my family and generations prior you know wouldn't have to go through that so for us to be able to break generational curses for people at

scale it's like dude count me in like I'm at War like I said people have been telling us like you guys need to keep it down about land like

man I'm not gonna be quiet yeah so that's something that really really drives me man is I I want this

opportunity to be afforded to everybody that's willing to play the game they don't even need money yeah I think it's great it's incredibly incredibly

powerful um what is your biggest struggle today um biggest struggle I think right

now is is uh personal or business that's um personal I think it's it's always

juggling juggling working is I think everybody struggles with that I love what I do because I work from home and

he's on the ground running the ranches so I kind of have the ability to like I'm I pick up my school I pick up my

daughter from school every day and then sometimes like I got a meeting I to go to so I'll be right back so I can kind

of manage both um I think it's my personal struggle and business struggle it's just people I think we need more

people in capital and we can really do some amazing things but um it's it's been amazing journey from

I've been doing I've been an entreprene for six years now so it's just been interesting journey and kind of growing

through different struggles that you have through entrepreneurship because um

you hit different levels of growth at different times and hitting that next

level and kind of breaking through those barriers has always been it's been it's been fun I told Anthony like I think

we're hitting like newer higher levels I'm like I don't know if it's going to be as fun as it was when we were struggling

uh yeah the hustle is different the hustle is different you know the hustle is different it's a lot more complicated

problems with a lot more ramifications yeah yeah more risk yeah more risk uh I

recently read a book um and what they talk about in there is every problem you solve creates a new host of other

problems amazing that's an amazing observation right good and so it's like yeah like we solved this problem now we

got these other problems that not as many people have solved yeah MH yeah I think that's what's cool too like I said

like so now we're heading into these things where I'll tell you just some one of the things that I'm really focused on right now is uh for for teenagers that

are depressed that are struggling right seeing suicide rates go up so we want to have like a a fitness center type Counseling Center uh for those people um

people that are that have nowhere to go right like let's say like a single mother they might have an abortion like what if we had public housing for those

people or immigrants you know things that people wouldn't have to worry about where they they feel like they're backs against the wall so if we're going to

start to move large volumes of capital we're going to have large amounts of tax money to dump let's put into things that are important right that more so than

like hey look at me now we have a thousand doors like our our our do goal is zero mhm right but yeah through

through uh through the Charities and the the nonprofit organizations that we want to set up like we're going to end up with some doors as a byproduct of what we're already doing yeah so challenges I

would say for one for me it's hard it's hard to unplug because once I get obsessed with something like I'm not I'm not going to let go so once I get home

it's like phone off like put try to put it away we go to dinner put the phone away and that's something that I really struggle with is being able to unplug

for my business because I love it I tell I joke I say I don't have any hobbies right so I work out and I work and that's about it um uh but business-wise

I think just Capital man uh right now um our lead generation is working too tremendously right so if we're going to

continue to grow in scale and we're again that need for capital is going to be ongoing forever so even after we raise 100 million like let's do another

round yeah uh because the lead flow is there so yeah those are the two challenges that I can think of first things first yeah and I I definitely

resonate with that right the how do you unplug because this is fun ask her dude ask her yeah it's hard to unplug man it

really is hard this is fun we're playing this is not this is going to work I love the game more than anything man I really I enjoy it I don't feel like oh God

another day of work like I'm just I'm I'm in it to win it yeah yeah what's your superpower mine man I have to tell you

it's just brute strength right and then being able to foresee the future so once I have a vision and I know I'm going to

like something that I'm going to focus on I don't worry about the 99% of what else needs to happen until I get there

like I'll put in the hours like physical physical pain and torture uh I'm gonna make it happen no matter what so I think

it's being able to power through challenges uh making sure that like all the little things that come along the way like

those are like insignificant insignificant I'm still going and sometimes it is very painful and very painful to put in the hours and have the

focus it's just whatever I lack in intelligence I think it's just brute strength man being able to see something

through no matter what happens and being able to to go through that pain and those challenges no matter what yeah

you're G to make it happen how about you um I think my my superpowers it's able to extract it's to take large amounts of

information and extract what's pertaining to me he has way of this dilling down large volumes of

information into like two sentences yeah it's it's weird it's weird because I listen I listen to like somebody whole

speak speak speak speak speak and it's a lot a lot of people they throw a lot of fluff into their their book or their

their blog or their their whole podcast episode and then like what are the action items for this thing that I read

or listened to and what am I going to do with it so I I have like an ability to

pull and extract a paragraph and we're going to implement it today MH and that's my

super power yeah well and I appreciate that I like to think I have the same one

and the biggest challenge is listening through someone's endless BS to get that one thing yeah that one

thing it's so crazy because I'm like I listen to like hours and like that was it I'm good let's go Cardone book like

the book could have been a sentence long yeah why can't you just like what was the point of all these other things but

like I get it too because I I think information is meant for people in different stages so like if you're

reading a book about business and you've never experienced in business everything's going to be like oh my goodness this is amazing but like people

that have been in business for 10 years they're looking at that book completely different because they need to understand that lesson that a tenure

business owner understands so they're waiting for that one nugget to come across and like o that was it thank you

everything else was fluffed because I already experienced it hands on expression I heard recently uh

apparently or supposedly it's a Chinese um I can't I can't think of the word

right it's confucious saying something something along those lines but you know a man never crosses the same river twice

right because he's a different man it's it's a different River amazing yeah right so doesn't matter how many times he's gone across it so kind of what you

were saying there uh so what book have you gifted more than any other um book I am not a reader I'm not

a reader at all podcast audio book um i' I read uh I read hor Mo's book it was

really really I read I read it once and which one the first one I haven't read the second one yet $100 million offers

yeah yeah so I read that whole book and it's funny because like I read the whole book and every's like like there's no

like it's there's a lot of like action items but he really don't he really doesn't say what the thing he did was

and I pulled out of that whole book here's what he did and then he says it in $100 million leads what he did and I

already had extracted it from his first book even though he never said it yeah gotcha so it's million leads or mil

offers offers that's good and the spirit of being a Gemini could I get two sure

sure um one is the The Power of Now right uh I was going through a dark time in my life when I came across that book

and I think that text is probably like single most powerful thing I ever come across to like no matter where you are in your life like if you just stop

worrying about what happened before and what's going to happen into the future you can concentrate all of your energy and power into that moment and just stay

there and then everything becomes super easy so I think that one for one how how's that or why why is that the case

because if you think about it right just like psychologically if you're thinking about like the past you end up depressed because you wish you could do things

different or you wish you would have made different choices and if you're always thinking about the future you're anxious of the future of what's going to happen what could go wrong right because

we're we're trained to like outrun T-Rexes right so you don't die so we're worried about what's going to happen tomorrow but if you if you can remove

all that stuff right be like in the presence of God right like in the Bible or right be be with yourself or the

power whatever it is if you can concentrate all that effort into that one space I think you become Ultra powerful because you're not like

watering yourself down into the past and into the future yeah so that book right that really really hit home with me so I

got into like real heavy into prayer meditation right to just be able to sit still and work through things and I've noticed that after I come out of these

sessions right whether it's 10 or 40 minutes right we have a ten commandments for our group and part of it is meditation and prayer because I feel

like if you reach down into that higher self no matter what you you can have this problem that you've been chewing on for like three to six months and then

you come out of a 40-minute prayer session and you just solved it all without even thinking about it yeah so I think that's powerful I think people

should tap into that more often I think it should be brought up more in business because we want the Practical steps we want to read books and we want to watch

shows and we want more knowledge but sometimes the removal of knowledge right is is where the magic is and the removal

of information is where the magic is and I'm real real heavy into that gotcha and then the second one I'm gonna say it

wrong is that daing right that's probably one that I've recommended more than anything and

I myself found an audio on YouTube and I've probably listened to it like 200 times gotcha so whenever whenever the storm does hit me right you're like dang

I don't know what to do I don't know where to go from here that's I'll just put on that audio and I'll listen to it for like three days straight I'm at the

gym listening to it I'm driving around at the beach listening to it like just with my headphones on Non-Stop and again

I think it brings me back to Center again to like say don't worry about it whatever is going to happen is going to happen with or without your

participation so something I say like is when you run into like a personal or business challenge right you can stress

about it but you're still going to get the same result probably going to get a similar result with or without your stress participation exactly so that's

something that I really really pay attention to is like just when things seem like a storm is coming right just

calm down and relax and and things are probably going to work out in your favor because they normally always do yeah and

then removing that stress makes you more powerful because now you're not losing that 10 or 20% energy drain from not being able to focus so that's it so I

wish I had more like practical business books no I mean those two books are and I think they're very similar right

because like what what's we had Larry Ash show he talked about like if you worry about the past it's anxiety or

anger you wor about the future is worry neither of which help you right and then

the da Ching uh I haven't read it yet it's on it's on my kitchen counter right

like someone told me to read it it's like okay so I bought it it's just sitting in the kitchen counter so I got

to pull it out and read it but I mean there's a lot there's a lot of power in knowing that um if you just focus on

what's at hand because that's the only thing you can control and give your P self permission to not worry about the other things but for most people it's

really hard to do it's so easy to get caught up in everything that's going on around us right the information age when we're supposed to become smarter and

wealthier than ever people actually get consumed by the information right you spend too much of your focus and your time and energy and you you you

distribute them all into all these different things Sports and the kids and the wife and the family and and social media so when you when you think about

it there's nothing left of you right right so I think when you spend that time with God or or higher power

whatever it is then you go inside yourself and and and you can commune with God I'll just give you one quick example true um it was a I think it was

like Dan rathers one of those famous right guys and he's interviewing Mother Teresa and he said you know what do you

say when you talk to God and she said nothing I just listen yeah and then he said oh that's interesting what does God

say and she said nothing he just listens and again one of those boom Epiphany moments we're like wow really spending

that time in silence and that communing with yourself with your higher power that's where everything lies and there's not an instruction manual right so God's

not out there giving you like the whole Bible but if if if you distill the whole Bible down right in a lot of spiritual

texts right so I I prefer the Bible but there's they're all saying very similar thing is that if you distill all that

information down into nothing it's just being where you are being in that present moment and being having that communion with God or the higher power

and that's where everything lies that's where you can create worlds yep um what are some last thoughts you'd like to

leave all the listeners with um again me something U that that I'm going to

probably harp on for the rest of my life now is if you intend to to do real estate or business and invest your own

Capital it's going to be a long sad Road and you might end up dying Brook um I think everybody should immediately get good at raising capital and make that

your central point of focus and then you could just point that at any good business model and uh I think that's the quickest path to

we I think uh being open-minded a lot of people they get stuck in this rut that they think they're doing the right thing

and that's the only way to to get results and I think we've we've kind of

us we've gotten a lot further than a lot of other people in a short amount of time cuz we're open-minded I don't know it all

um and I don't presume to know it all but I've learned from a lot of different people and strategies and different things that I've implemented that's

created this hybrid model of what we do and I think it's just being open-minded and to what's out there because you may

think you know it all but there's things that you don't even understand yeah every time we think we hit a new level

we meet somebody else and we're like back to elementary school yeah so I think we we we probably are the most

open-minded entrepreneurs in the country because we don't think we know at all as soon as we meet somebody new that has great information we immediately

incorporate that into our brand and into our model and we run with it yeah humility and coachability I I think

those are two the and they're they're one of the same but it's it's so such an important attribute because the the

thing that can turn me off more than anything else when I meet someone new is if they have it all figured out okay oh

man you give them a nugget and then they got an answer for you right away like a dang this isn't going to go good yeah like all right I'm not going to spend

any more time with you because there's just nothing nothing good can come from this relationship um so if someone wants to get a hold of

you what's the best way for them to do that um I'm on Facebook and Instagram uh

Daniel Hive mine on Instagram I'm on Twitter a lot enjoy Twitter Twitter's fun um but yeah that's probably the best

place how about yourself um simply man I prefer like a Facebook Messenger I'm on there a lot so uh I think that's

probably the easiest place to get a hold of me and uh it might take me a little bit to get back a couple days but I I try to answer everybody and then if you

see me on social media like on Instagram or on Facebook or any of those I try to reply to every single comment like even if I reply a month later so if somebody

just reaches out through one of those public channels then I'll get back for sure but I don't have like a website or anything like that that that is my go-to

all right Perfect all right well thank you so much dude thanks for having this man yeah this is like one of our life accomplishments dude so happy I feel

like we owe it in large part to you man because you you you put the show out you put the good information into the universe and it fell on our ears and

here we are now man so oh it's the same thing you were saying you're welcome it was the same thing you were saying earlier right like each one each one

it's that ability to pay for because you don't know with my impact what changes it's going to make I think the waves

that you're making on on the planet and in the universe man with what you've created is just like I can't thank you enough dude and even just for ourselves

the way things have gone like I can imagine all the other people that you've impacted and it's just like just to even think about it it's it's amazing just

beautiful so thank you oh thank you thank you guys thank you for coming on we'll see you guys next

[Music] time we real estate disrupt us

Ep 486: Why Land is the Best Investment- Real Estate Disruptors Podcast

Daniel Esteban Martinez

Anthony Gaona