0:02 Is this the end of traditional real
0:04 estate investing? These brothers went
0:07 from making no money to $667,000
0:09 a month taking advantage of it. I had a
0:10 pregnant wife at home and I hadn't made
0:12 any real money in years. And you found a
0:14 repeatable way to double your money on
0:16 every single deal in less than 60 days.
0:19 You're talking about a 25 to $100,000
0:21 profit per deal. We've flipped land in
0:23 over 40 states without ever seeing it.
0:24 I'm here to find out how they went from
0:27 nothing to making over $8 million a
0:30 year. So, how much do you need to start?
0:32 >> As little as a few thousand. And nearly
0:34 every entrepreneur fails because of this
0:36 one simple mistake. Plus, the biggest
0:38 lesson they learned from spending a4
0:42 million on direct mail.
0:44 All right, Dan, Ron, tell us what are we
0:46 walking into and how did you turn Dirt
0:49 into a $16 million empire?
0:50 >> Exactly. So, we have been flipping
0:52 vacant land for about 6 years, and this
0:53 is one of our first properties that
0:55 we're standing on. And this is actually
0:56 the only property that we have ever
0:59 bought and hold. This land was about 50
1:00 minutes from where we live. So, Dan and
1:01 I were thinking like, we should just
1:03 keep this land. We bought this land for
1:05 about $100,000. At the time, it was
1:07 worth like 190. But overall, like how we
1:10 built um this empire was by flipping
1:11 vacant land all around the country,
1:14 unused, unwanted, rural vacant land,
1:16 then selling it on the market for market
1:18 value or sometimes above. out of all the
1:19 business models you guys have focused on
1:21 or could have focused on, how did you
1:22 land on this one, what's your advice to
1:23 our viewers?
1:25 >> So, for me, I came from e-commerce. I
1:27 had a drop shipping store. I had Amazon
1:29 FBA. I had a lot of different businesses
1:31 before that. And my whole goal was to
1:33 get out of my 9 to5. Um, and through
1:35 those processes, I've seen a lot of the
1:36 pros and cons of all these different
1:37 business models that people are looking
1:39 into. And then one of my mentors, Joe
1:41 and Mike Bruska, they told me about land
1:43 and how it's easy to acquire land under
1:45 market value. So, I went to Ron. And I
1:46 was like, "Hey, these guys are buying
1:48 and flipping land. My mentors are doing
1:51 it." And you're talking about a 25 to
1:54 $100,000 ticket profit per deal. Me in
1:56 e-commerce, that's what like you're
1:57 making in multiple months. My margins
1:59 were 10% net essentially when I was
2:01 selling electric bikes. And I saw this.
2:02 I'm like, we just need to figure out how
2:04 to buy a property for $50,000, sell it
2:06 for 100, and we just need one of those
2:08 to make 50 grand. Like that's successful
2:09 in e-commerce for a whole year. And I
2:11 just saw the potential in the business
2:13 model. You know how the entrepreneurs
2:15 get stuck or people in a 9 to-5 think
2:17 about well what business do I pursue?
2:18 They get stuck in this paralysis by
2:20 analysis, right? Did you guys feel like
2:22 you're in there too or were and the
2:24 mentor helped you get out of it? What's
2:24 your advice?
2:26 >> I've been stuck in that before when I
2:27 was getting into drop shipping. That's
2:29 how I felt. Um but my advice to anyone
2:32 else is just pick something, go with it.
2:33 For the most part, they all work to an
2:35 extent, right? They're business models.
2:36 Other people are doing it full-time and
2:38 successful at it. Why can't I? So that's
2:39 how I started looking at it instead of
2:41 like looking at the cons of why it won't
2:43 work all this. How can I make it work?
2:44 How can we make it work? And I
2:46 approached Ron with this business model
2:47 and we just really believed in it from
2:48 the start.
2:49 >> Let's go check out that feature that you
2:50 guys talked about. You said you were
2:52 building a pond and still working on it,
2:53 right? Absolutely. Yep.
2:54 >> Right. Let's go take a look.
3:00 >> So this is actually a work in progress
3:02 pond right
3:04 at the bottom. Water will be where we
3:05 >> This is the deepest. This is where we're
3:06 going to be. You can see the ledge right
3:08 here. This 20 ft below. So this would be
3:09 the deepest point about
3:11 >> just run off from the mountain. We'll
3:11 fill this thing up.
3:13 >> Yeah. So we hope that's the plan.
3:15 >> What's the early days look like? Talk to
3:17 us a little bit about the backend story
3:18 of you guys starting the business, what
3:19 you guys were doing.
3:22 >> Yeah. I was 9 to5 working uh sales for
3:23 building material. So this was actually
3:25 my territory, Northern Kentucky and
3:27 Cincinnati metro. So I covered like five
3:29 different counties in this area and I
3:31 was just driving 700 to 1,000 mi a week.
3:32 So I would just listen to podcast,
3:34 right? And that's how I got into
3:36 entrepreneurship in general. So, ever
3:37 since starting my nineto-ive, it was
3:39 always, "What's the quickest way to get out?"
3:39 out?"
3:41 >> Yeah. For me, I was uh I was coaching
3:42 college basketball and like I just
3:44 wanted a way out. I didn't want to work
3:45 for someone else. That was my biggest
3:46 thing is like I did not want to have to
3:48 go get a job. Early days on, like it was
3:51 a lot of grinding with the phone calls,
3:52 mail, all these different things. But,
3:54 uh it was fun like the grind at the
3:55 beginning, getting those first few
3:57 deals. It was really it was exciting.
3:59 >> And how quickly into the new business
4:01 did you guys leave the 9 to5? Totally.
4:02 >> We started in December. I left in
4:05 February. And then we went 5 months
4:06 without getting one deal essentially
4:08 until April. But we believed in it so
4:09 heavily. We were getting the leads. We
4:10 knew it was coming. We're like, how do
4:12 we just get one deal?
4:14 >> After that season ended in February,
4:15 probably around Dan, we went full in
4:17 like we were doing it every single day,
4:18 8 hours, 9 hours a day, we started
4:20 hiring people. So yeah, it was probably
4:22 3 4 months in when we knew like this is working.
4:22 working.
4:23 >> This is one of the few properties that
4:25 we're standing on that you actually own.
4:28 The interesting fact is you buy 40 plus states.
4:29 states.
4:30 >> Talk to us about some of the pillars on
4:33 how you achieve that. Yeah. So you got
4:35 to do your due diligence remotely. So
4:36 you have a few different options. You
4:38 have real litters, you have drone
4:39 photography, and you have just satellite
4:41 images and softwares, right? So we use
4:43 the LAN port software to really look at
4:45 the satellite, the slope, the wetlands,
4:47 the AI data that it shows, and we can
4:49 get a good baseline of what's going on
4:50 in the land just from that, right? And
4:52 then you get a drone photographer out
4:53 there and we have a set of questions. We
4:55 just copy and paste. We make sure uh he
4:57 gets ground pictures, he's getting
4:58 photos from above. If there's some
5:00 question areas like it's wet over there,
5:02 hey, get some photos. How bad is it? You
5:04 know, is there good access off the road?
5:05 Things like that, they do due diligence
5:07 for us. Then lastly, if you have a real
5:09 relationship, they can go there, give
5:10 you all the feedback, and and those are
5:11 our three sources right there.
5:12 >> Can we go check out more of the
5:14 property's features, highlights, anything?
5:14 anything?
5:15 >> Let's do it.
5:15 >> Let's do it.
5:18 >> I'll follow you.
5:20 >> So, what's special about this property
5:22 as opposed to the thousands of other
5:23 deals that you guys have done?
5:24 >> I mean, the main thing, it's an hour
5:25 away from where we live. So, like it's
5:27 this is the closest we've ever bought a
5:29 property. And the thing about land is it
5:31 appreciates pretty much year-over-year.
5:33 It's not as volatile as houses. It's
5:35 going to go up 8% every year for the
5:35 next 30 years.
5:37 >> Okay. Do you mind sharing the details of
5:38 the deal? What you guys pay for it? How
5:40 did how did it come about? Anything interesting?
5:40 interesting?
5:42 >> Yeah. So, we the guy we bought it from
5:45 paid 70,000 for it and that was like he
5:46 wholesaliled it to us and we bought it
5:47 from assignment cuz we really wanted
5:49 this property. Um, and he wanted to buy
5:51 and flip it. I'm like, "Listen, we want
5:52 this property. What do you need for it?"
5:53 essentially. And at the time it was
5:56 worth probably about 180 or so. We So he
5:57 had it under contract for 70. We paid
6:00 him $30,000 cash. So 100 all in and got
6:01 a good deal on it. The one we're going
6:03 to down the roads listed for 250 about
6:04 the same size, but we think it's
6:07 probably anywhere 250 to 300. Guys, over
6:09 87% of you who are watching are not yet
6:11 subscribed. So if you don't want to miss
6:12 these incredible entrepreneurs sharing
6:14 all the insights, all the secrets,
6:16 everything you need to be successful, do
6:18 us a huge favor. Hit that like and
6:19 subscribe button. We greatly appreciate
6:21 it. All right. So, you said you
6:23 consistently double your money on every
6:25 deal. Can you walk us through what the
6:27 deals look like these days across 40
6:30 states? On average, it buy for 25, sell
6:32 for about 50. And like 5 acres was
6:33 probably our median acreage we're
6:35 buying. That being said, if you look on
6:36 uh the last year to two years, it's been
6:39 closer to buy for 100, sell for 200, buy
6:41 for 150, sell for 300. We've been doing
6:43 much more of those. But for the first 3
6:45 4 years, 25,000 was the average
6:46 acquisition cost.
6:49 >> Okay. Is the spread the income way
6:50 bigger on the bigger deals?
6:51 >> It's much bigger and it's the same
6:53 amount of work. But our goal was just to
6:54 get out of our jobs at first and we knew
6:56 we could do that by buying $25,000
6:58 properties and some for 50 and we do,
6:59 you know, a lot of those 10 of those a
7:01 month. We're in really good shape. Can
7:02 we do the same exact business model for
7:03 more expensive deals was the big
7:06 question. And one year we just put it on
7:08 our uh radars. It's like we're only
7:09 doing big deals. That's what we're
7:11 really focusing on. And that deal we got
7:13 a ton of six figure deals.
7:15 >> Talk to us about the average time on a
7:17 deal. Right. You mentioned 14-day
7:19 closes. What about due diligence on raw
7:21 land? That's a big risk. How do you guys
7:23 decide between risk, reward, etc.?
7:24 >> Yeah. So, we have like the marketing
7:26 aspect, which we're going to get a deal
7:28 or two from every marketing campaign.
7:30 That might take an hour, 2 hours. Then
7:31 you have the leads calling you back
7:32 essentially. So, you send the marketing,
7:34 you have leads calling you back. If it's
7:36 a single lead, you might talk to them
7:38 maybe 30 minutes, 45 minutes. All in
7:40 all, due diligence is going to take an
7:41 hour maybe. As you get more experience,
7:43 it doesn't take that long. You are
7:44 calling the county to see what
7:46 restrictions. You're reviewing it on a
7:47 computer and then you're just making
7:49 sure the price makes sense essentially.
7:51 Then you're scheduling drone. But hour
7:52 and a half, 2 hours maybe for due
7:54 diligence. But 5 hours maybe for a deal
7:56 and then we're talking about a 30 $40
7:58 $50,000 potential profit. It's not a ton
8:00 of time once you do it over and over.
8:02 You're going to get that time per deal
8:04 way down. 3 to 5 hours probably.
8:06 >> So from from first conversation to
8:09 close, 14 days, 30 days, 60 or on
8:10 average, what does that look like?
8:12 >> Probably like 3 weeks. I'd say 3 weeks
8:14 on average for those, we're really
8:15 aggressive with like getting to the
8:19 closing table fast. Every day that this
8:20 you haven't paid the seller, the seller
8:22 hasn't signed the deed, it's a day that
8:23 the seller could back out or something
8:25 could fall apart on the deal. So, we're
8:27 really quick with everything. You still
8:28 have a contingency though to back out.
8:30 We're offering you a really quick close.
8:32 Like our due diligence period is anytime
8:33 really before closing. Yeah, we'd have
8:35 to pay the title company. We have some
8:36 earnest money down with the seller that
8:38 they can uh potentially keep. So yeah,
8:40 there are contingencies in there where
8:41 if we find something from the drone
8:43 photographer, we can back out. And the
8:45 drone photographer has helped us quite a
8:47 few times, like back out of deals last
8:48 minute of stuff we couldn't see on the computer.
8:48 computer.
8:50 >> And the hardest thing is, and the main
8:51 thing we're doing there is analyzing the
8:53 price because when you're in rural
8:55 America, like this property, we have a
8:56 comp right there right now for sale, so
8:58 we kind of know, but a lot of times 10,
9:00 20 m, you might not have any comps. You
9:02 might have to go back 18 months. So it's
9:04 like a big question of you try to get
9:05 the closest to your property in terms of
9:07 size, distance, all of that. But the
9:08 main thing and the biggest challenge of
9:10 the business is actually comping land.
9:12 >> How important is the assessed value
9:13 then? How how much do you depend on that?
9:14 that?
9:16 >> It depends on the area. Yeah, virtually
9:16 not at all.
9:18 >> It might be $14,000.
9:20 And then we're getting taxed like $20 a
9:21 year on something like this. And they
9:23 try to keep the assessed value of vacant
9:25 land really low. And it's just not accurate.
9:25 accurate.
9:27 >> But that's in Kentucky. Some states are
9:28 different with how they appraise.
9:29 >> Closer you get to cities, the better
9:30 that assessed value because they want
9:32 their taxes, um, everything like that.
9:34 Here, they just don't want people like
9:35 for getting foreclosed on. like they
9:36 don't want to deal with that kind of
9:38 stuff. They want development. Uh so they
9:40 vacant land isn't that hard to keep.
9:41 It's not expensive to keep.
9:42 >> So where are we going next, guys?
9:44 >> Going to go up to Cincinnati to our
9:45 office and check out our operations up
9:47 there. Okay, let's go check it out. Do it.
9:48 it.
9:49 >> Ron and Daniel have a saying. When it
9:51 comes to real estate investing, you make
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10:55 [Music]
10:57 >> This is your Cincinnati office. This is
10:57 it. It is.
10:59 >> How long you guys been in this awesome space?
11:00 space?
11:02 >> Been here about 18 months or so.
11:03 >> Yeah, we got a podcast studio here, a
11:06 couple offices, conference room. So,
11:08 this half of it used to be our podcast
11:09 room just here. There's a wall right
11:10 here. They just took this out a few
11:12 months ago. Um, and we opened it up to
11:14 make a bigger podcast space to put two
11:15 desks in here and make it really one
11:17 collaborative idea. We s Ron and I sit
11:19 down, have a podcast, Ben's recording,
11:21 Marco's in here. It's just really collaborative.
11:22 collaborative.
11:24 >> Uh, what was the first deal and how soon
11:25 did the second, third, fourth happen and
11:27 so on? Yeah. So, our first deal was
11:28 actually right here in Weekley County,
11:30 Tennessee. This was five acres right
11:31 here. So,
11:32 >> a bunch of trash.
11:33 >> A bunch of trash. That's that's how we
11:35 negotiated them down from $15,000 to
11:36 five. So, we bought this deal for
11:39 $5,000. Sold it for $15,000 in 2 days on
11:41 Facebook Marketplace. Um took a little
11:44 bit to close obviously and all that, but
11:46 we didn't get a deal from December
11:48 December to April. And then April, we
11:49 got six deals. And then from April to
11:51 December, we had 48 deals that year.
11:53 That was our first year in it. So, it
11:55 was really big to just show the
11:56 marketing compounds on itself. You're
11:57 getting more calls, you're getting more
11:59 comfortable, you have more leads out
12:00 there. Just starts compounding. It took
12:02 us five months to get one deal. Then
12:05 that same month, we got six right there.
12:06 >> All right, guys. Blitz time with Dan and
12:07 Ron. You guys ready? >> Yep.
12:08 >> Yep.
12:09 >> How do you sell land that has been
12:11 landlocked from access routes?
12:14 Landlocked due to nearby development,
12:14 something like that.
12:16 >> Anytime a property is landlocked, one,
12:18 you have to sell it way under market
12:20 value. Two, you find access. And that's
12:21 what we typically do. We call the
12:23 neighbors and we try to buy access from
12:24 them. What's your favorite upflip
12:25 episode and why? >> H.
12:26 >> H.
12:27 >> You like the pooper scooper one?
12:29 >> Yeah, the pooper pooper scooper one's
12:31 interesting. Just like an absurd story.
12:32 That's probably my favorite.
12:33 >> Okay. What's the best purchase you've
12:35 ever made under $100?
12:37 >> This whoop honestly. Yeah,
12:38 >> that under 100 bucks. I
12:39 >> Yeah, it's like 20 bucks
12:40 >> for me. Books, learning that kind of
12:42 stuff. What's the biggest check you've
12:43 ever cashed and how did it feel?
12:46 >> About half a million dollars and uh it
12:47 was adrenaline rush. It was exciting.
12:48 >> Uh what's the most bizarre piece of
12:50 property you've ever considered? We've
12:52 seen some rural land, but rural rural
12:54 Mississippi land like the middle of
12:56 nowhere. No cities, no gas stations,
12:58 nothing nearby. We've actually bought a
12:59 few of those properties. Those are
12:59 pretty wild.
13:00 >> Did they pan out?
13:01 >> Yeah, we've made some money on them.
13:03 >> It's just tough cuz it takes so long to sell.
13:03 sell.
13:04 >> Got to buy, right?
13:06 >> Okay. If you could buy land in any
13:08 country in the world, what would it be
13:10 and why? Where would it be and why?
13:11 >> I think it would be like southern
13:12 France. I just It's not that hard to get
13:14 to. You got a direct flight to Paris and
13:16 then it's beautiful rural France.
13:18 >> Okay. I like Sweden. Switzerland, like
13:19 the prairie and that stuff, the
13:20 mountains. Yeah.
13:22 >> All right. If your business was a movie,
13:23 which would it be?
13:25 >> I thought of like in my mind, I like war
13:27 movies personally and and shows. So like
13:29 Band of Brothers, just seeing like the
13:30 they start, you know, off the coast and
13:32 they're working their way into Europe
13:33 and just seeing the progression of how
13:34 they're defeating the enemy throughout
13:36 it. I love that cuz that's kind of
13:36 business in general.
13:38 >> There you go. It is a battle.
13:40 >> That's that's that's a rep. When the
13:42 first deal started coming in, how much
13:44 profit did you guys take in personally
13:46 versus just reinvesting it, right? talk
13:48 about the delayed gratification aspect
13:49 for entrepreneurs and how important that is.
13:50 is.
13:52 >> You paying yourself early can really
13:54 delay the success of your business. We
13:56 put 100% of it back into the business,
13:58 back into marketing cuz marketing is the
14:00 fuel for growing that business. Like one
14:02 $10,000 deal doesn't do anything for us
14:04 personally and said we need to turn this
14:06 into much more. So 100% back into
14:08 marketing, back into the business. The
14:10 delayed gratification uh I think helped
14:11 us scale faster.
14:13 >> Yeah, you're just putting more fuel into
14:15 the fire. The fire's ignited. We got six
14:16 deals in April. We're rolling, right?
14:17 We're just like, put all of our money
14:19 in. Any single dollar we had, let's put
14:20 it right back in. That's buy more deals,
14:22 more marketing. And that's how we got 48
14:25 more deals that year.
14:27 >> What is the one mistake that most
14:29 entrepreneurs make? 99% of them.
14:31 >> Focus on the things that don't move the
14:32 needle. Focus on things that just don't
14:34 drive the business forward. As a
14:35 business owner, you have to figure out
14:37 what drives your business. And you don't
14:39 know necessarily at first, but for us in
14:42 land investing, it was the marketing,
14:43 choosing a market and just getting your
14:45 mail and your marketing out because
14:46 that's how you get leads, right? That
14:48 was the most important thing in this
14:49 business. But every business is a little
14:50 bit different with what drives the
14:52 business forward. Some people are so
14:53 focused on making their website look so
14:55 pretty and all these other small things
14:57 that don't really increase sales, right?
14:58 You just have to look at what's going to
15:00 increase your sales and profitability
15:02 and focus on those things. How do you
15:04 guys manage marketing with every other
15:06 hat that you have to wear on early on as
15:07 a business owner?
15:08 >> I think the biggest thing is just being
15:10 on a schedule. We've said it a few
15:12 times, reiterating it, is just being on
15:14 a marketing schedule. So, for example,
15:16 sending it. I used to like to send my
15:18 mail every Monday morning before I did
15:19 anything else. So, my mail goes out
15:22 whether it's 2,000, 3,000, 5,000 mailers
15:24 every single Monday. And that keeps
15:25 consistent deal flow. And it's you need
15:27 to do this. It is such an important part
15:29 of the business. you just cannot do
15:31 anything else that Monday or I couldn't
15:32 do anything else that Monday until I got
15:33 the marketing out.
15:34 >> It's just about the awareness of what
15:37 drives the business forward and knowing
15:38 what drives it forward. We know we have
15:40 to put all our emphasis on that so you
15:41 can't miss it or else like I said the
15:42 business just stops.
15:44 >> What do you guys use to identify
15:47 properties, analyze them, give us an
15:48 example? What do you use?
15:49 >> We use Land Portal for almost everything
15:51 we do. Building a list, reviewing the
15:53 deal and the due diligence on it,
15:54 sending out marketing, things like that.
15:55 But we can actually pull it up. We're
15:57 going down to 44 acres here soon in
15:59 Grant County, Kentucky. We can pull it
16:00 up. I'll show you right now.
16:02 >> Yeah. So, this is the 44 acres we're
16:04 going down to. And on this property, you
16:06 can see the slope on here as far as it
16:08 contour lines. We can hit 3D and see how
16:09 sloped it was. We talked about the
16:11 slope. Um, but yeah, this property, you
16:13 can see how sloped it is off the road,
16:15 everything like that. And that's kind of
16:16 the beauty of using a software like
16:18 this. We talk about computer due
16:20 diligence. This is what computer due
16:22 diligence looks like to us before we
16:23 actually go see a property or send a
16:25 drone photographer to a property.
16:27 Wetlands, FEMA, you can see all the
16:29 creeks, everything like that. Yeah.
16:30 Buildability overlay. So, it's actually
16:32 going to look So, what it's going to do
16:34 is actually look for buildable spots on
16:36 the land. Um, which is all AI driven in
16:38 terms of this. And it's looking for
16:40 buildable spots. Um, this is a very slow
16:41 property on this northern part. I don't
16:43 think I found any.
16:44 >> Now, we're going to visit. Yeah, it
16:46 didn't find any buildable spots up here really.
16:46 really.
16:48 >> You can see the one down here where the
16:50 house is. It circled that. Oh, it did.
16:51 Okay. We're going to go see this
16:53 northern parcel, though. This was
16:55 actually subdivided off and sold
16:57 separately. This is the 44 acres that's
16:59 for sale. You can see it listed on
17:02 Zillow as well here for $250,000.
17:03 >> Gotcha. I mean, it's one of the most
17:05 important parts of what you guys do is
17:06 analyzing the property, right? So,
17:08 having the right tools is absolutely
17:10 100%. And it also has things like uh
17:13 comp reports and where it's you go to a
17:14 estimate for land, it's not going to be
17:15 accurate because it's developed for
17:17 bedrooms, bathrooms, square feet, that
17:18 type of stuff. So, how many floors it
17:21 has. This is for land specifically. So,
17:23 it looks at the features of land, the
17:25 slope, the wetlands, all of that stuff.
17:27 And then those comp reports based on the
17:28 data. By the way, guys, if you want to
17:30 know more about land flipping, Ron and
17:32 Daniel put together a free master class
17:34 on how to start a profitable land
17:36 flipping business from scratch. So,
17:38 check out the link in the description to
17:39 get access. All right. Well, let's go
17:40 check out this property. Show you guys
17:42 on the ground how to do a little bit of
17:44 due diligence, get dirty, and get some
17:45 ticks on our feet. >> Exactly.
17:45 >> Exactly.
17:50 >> That was quite the drive.
17:52 >> Yeah. Let's check this property out. 44
17:53 acres here.
17:55 >> So, this isn't your property. This is
17:56 again what we discussed. You're looking
17:57 to purchase it.
17:59 >> Yes. It's only a mile away from ours.
18:01 Same size. Know there's a pond. It's for
18:04 sale for $250,000 right now. You have
18:05 over a thousand feet of road frontage
18:07 here. So there's it comes from the peak
18:09 up here, which is its highest point,
18:11 dips down into a valley, and then on the
18:13 other side comes back up to another peak
18:15 where you could build on and get a
18:16 little more privacy. On the second peak,
18:18 >> you split these things up into more density.
18:19 density.
18:21 >> We we do that a lot with our investments
18:22 in general. It's called minor
18:24 subdivisions. So yeah, especially in
18:25 rural America, there's not a ton of
18:26 restrictions on how many times you can
18:28 split it up. You think this 40 acres
18:30 probably make four or 10 acre parcels or
18:31 do five acre parcels, but we do that all
18:33 the time. So, what's the secret to
18:35 evaluating a property's potential? Walk
18:36 us through the key aspects.
18:37 >> Well, you want to make sure all the
18:39 attributes are good. So, you want the
18:40 road access. You don't want it to be
18:42 wet. You don't want it to be too slope.
18:43 That's my main question for this
18:45 specific property. Is it too slope? Do
18:46 we have enough room to build? And then
18:47 we're looking for attributes like
18:49 creeks, ponds, and just seeing what
18:50 stands out. Making sure it's in a
18:52 desirable area is the biggest thing when
18:54 you list it. And when you list it for
18:55 sale, is it going to sell for the price
18:57 you think? That's the biggest thing we
18:58 want to look at. And we want to make
18:59 sure there's no defects. Like, you have
19:00 a torn down barn here. or is that going
19:02 to hurt or help a future buyer? So, we
19:03 look at things like that.
19:05 >> So, once you've identified a possible
19:07 deal, what are the important next steps?
19:09 First, you do your due diligence, making
19:11 sure there's no crazy defects, but the
19:12 biggest thing is just checking the price
19:13 of the land. Like, what are you going to
19:15 buy it for and what can you sell it for?
19:16 And you want there to be plenty of
19:18 margin because if there are things you
19:20 didn't catch or the market's not as
19:21 strong as you thought, you want to be
19:22 able to drop the price and get more
19:24 aggressive and still make money. So, the
19:25 biggest thing is comping the land,
19:27 checking the attributes, just making
19:28 sure it's going to sell. How do you get
19:30 the seller on board though, Dan? I mean,
19:32 he may think it's worth 300,000. It's tough.
19:33 tough.
19:35 >> He wants quick cash or he doesn't want
19:37 quick cash. Like, we have an offer for
19:38 them. It's got to be the right seller.
19:40 We do things like double close if they
19:42 want, you know, 80% of market value.
19:45 Maybe they want 220 grand on a $300,000
19:47 property. We can work that out and get
19:50 90 to 120 days of the ability to market
19:51 it and talk to them and do that. We do
19:53 that. We do offer that. But our number
19:55 one pitch is let me I want to buy that
19:58 for 160,000 sell it for 300,000. You
20:00 want the quick cash now 14 days or do
20:02 you want it in 90 days and let me market it.
20:02 it.
20:04 >> When you're doing uh an offer higher is
20:06 are you essentially doing an innovation
20:07 where you sign a contract and then get
20:09 the opportunity to market it?
20:10 >> Yes. Exactly. And that's like uh and
20:12 then we'll just double close on the same
20:13 day, line up a future buyer and ask
20:15 them. We be we're very transparent with
20:16 the seller. It's like listen you didn't
20:18 want the 14-day cash. I can still pay
20:20 you 150 grand for that property. I'm
20:21 happy to do that right now. That's my I
20:24 I'd rather do that or give me 120 days,
20:27 we'll get an ovation and I would try to
20:28 line something up so I can get you that
20:29 220,000 you're looking for.
20:31 >> So, what part of the process do people
20:33 mostly get stuck on?
20:35 >> Yeah. So, analyzing the price of the
20:36 property, it's difficult with land
20:37 because there aren't always comps right
20:40 nearby. So, they might come up with a
20:41 price of, yeah, they think it's worth
20:43 $300,000, seller wants 250. Like, you
20:44 got to go back to the seller and try to
20:46 negotiate. So many people get cold feet
20:48 around negotiating with the seller,
20:49 telling the seller like, "Yeah, I can't
20:51 offer you that. I can offer you 170.
20:52 It's a hard conversation, but being
20:54 willing to have those conversations
20:55 makes you so much more money in the long run.
20:55 run.
20:56 >> All right. Do you guys mind if we go
20:57 check out the barn?
20:58 >> Let's go take a look.
20:59 >> Close. Are we okay with that?
21:02 >> Yeah, let's do it.
21:03 >> Is there anything else important that
21:05 our audience needs to hear about what
21:07 you're looking for at this property?
21:09 >> We're just making sure there's margin in
21:10 the deal essentially. So, we want to
21:11 make sure this property has been on the
21:13 market right now for sale for about 70
21:15 days, I believe. So, we want to make
21:16 sure we can get it under what it's
21:18 listed for, under market value, so that
21:19 you know when we go to sell it, we can
21:21 make money. So, we want a motivated
21:22 seller. So, we need to make sure that
21:24 that person on the on the other side
21:25 who's listed this wants their money and
21:26 wants it fast and they're sick of
21:28 waiting. It's been 70 something days. >> Mhm.
21:28 >> Mhm.
21:30 >> Have you ever closed on a property and
21:31 realized there's something really
21:33 horribly wrong with it? Talk to us about
21:34 that story, the lesson.
21:35 >> Yes. So, we bought 40 acres down in
21:37 Mississippi. It was a little off the
21:38 road, but it had an easement, so it had
21:40 legal access to actually get back there,
21:42 or that's what they told us. So, we go
21:43 to sell the property. We bought it for
21:45 like $30,000. We go to sell it for
21:47 $80,000. We have someone under contract.
21:48 They're like, "I want a survey first."
21:50 We get the survey and then the
21:51 surveyor's like, "This is broken access.
21:53 This property does not have legal
21:55 access." So, we tried to find a way to
21:56 get legal access. We couldn't figure it
21:59 out. That buyer backed out for $80,000.
22:01 We ended up selling for like 35 grand,
22:02 but it was something that cost us
22:04 $40,000. We were told on the front end
22:06 it had legal access, but once that
22:08 surveyor got an official survey, we
22:08 found that it didn't.
22:10 >> So, you didn't do the due diligence.
22:11 Didn't verify the easement?
22:14 >> We did. something you guys are doing now
22:16 because it's going to cost you or it's
22:17 just a risk of doing what you do.
22:18 >> So, we went through the title company
22:20 and we actually got insurance on it
22:21 having access like they insured us. I
22:23 get had access but if we go through an
22:24 insurance claim all we do is get our
22:25 money back essentially for the property
22:27 which is the same we got anyways. We
22:29 don't usually get surveys before we buy
22:30 properties. That would be the only way
22:32 to find this out. But surveys take like
22:34 you said 6 8 weeks and they back up
22:36 closing too much. So, we trusted the
22:37 title company. Unfortunately, we got
22:38 burned a little bit on this one. Uh but
22:40 it was definitely a learning lesson. How
22:42 do you do due diligence remotely? What's
22:44 the most important thing out of all the
22:45 important pillars?
22:47 >> With the mistakes we've made in the
22:48 past, we've really learned you got to
22:49 talk to the officials in the actual
22:51 counties, in the cities, talk to them
22:52 about your land. You're looking for
22:54 zoning restrictions. Can you put a
22:55 building on it? Can you put a mobile
22:56 home on it? Because there's a lot of
22:58 restrictions you have in certain areas
22:59 that tell you you can or can't do
23:01 something. And that can kill the deal.
23:02 Absolutely kill the deal without you
23:03 even knowing, right? And then you're
23:05 just looking for other things from the
23:07 county, making sure uh you can get like
23:09 septic and different utilities out there
23:11 and electric. So, it's more picking up
23:12 the phone, calling the people in the
23:14 actual area to limit your risk in the future.
23:20 >> Did you guys know anything about
23:21 buildable land or soil when you first
23:22 got started?
23:24 >> No. Didn't know anything about dirt in
23:26 general, like across the board. I knew
23:28 you probably needed a flat area in my
23:29 head to build on or like something
23:30 somewhat flat, but that's the extent
23:32 that I knew. And then you just kind of
23:33 learn and you get it and you get
23:34 properties under contract and you're
23:36 doing the due diligence yourself just
23:37 listening and watching YouTubetubes and
23:38 you just pick it up over time. It's not
23:39 that complicated.
23:41 >> I remember when you called me and
23:43 mentioned land flipping like let's do
23:44 this. Uh I remember getting on Zillow
23:46 and just like filtering a land. I'm like
23:48 I don't know what I'm looking at. I
23:49 remember how confused like everything
23:50 that I was looking at cuz I was in Ohio
23:52 was like farmland and stuff like that.
23:53 I'm like that doesn't make sense. Like
23:55 how do you do that? Like it's a very
23:57 vivid memory for me. What's been the
23:59 biggest resource earlier on to actually
24:00 get caught up and understand the
24:02 business, understand the industry?
24:04 >> Networking I think was big like Dan said
24:06 with his mentors were really big as far
24:07 as learning from them. Just there's
24:09 online resources where you can review
24:11 contour lines, you can look at different
24:12 pieces of land and like every day we
24:14 just got a little bit better and then
24:16 after 5 6 years like okay we've come a
24:17 long long way from where we were on that
24:19 day. It just it's slow build honestly. I
24:21 didn't feel comfortable reviewing land
24:22 after 2 months 3 months. It's like it
24:25 took 4, 5, 6, 7, 8 months to really feel
24:26 confident with reviewing land.
24:28 >> So, if you guys were starting today from
24:30 scratch, zero capital, what would the
24:32 first three steps be to to get going?
24:33 First thing you do is you analyze a
24:35 market and you choose a market. Right
24:37 after that, if you have no capital, you
24:38 can't send out mail. Mail's expensive.
24:40 Texting is even pretty expensive these
24:41 days. Pick up the phone, you start
24:43 calling. So, you got to get a list from
24:45 that area of all the property records uh
24:47 of vacant land, which is all public data
24:49 from the counties, right? You get that
24:50 list and you start calling them. and you
24:52 want to acquire their land, you got to
24:53 third, you got to get offers in their
24:54 hand. So, you got to come up with a
24:56 price that you're comfortable with when
24:57 you're talking to them. But on that
24:58 first conversation with them once you
25:00 call them, you're just trying to gauge
25:02 are they interested seller and is the
25:04 land worth buying essentially and then
25:05 gauge them yes or no and qualify the
25:06 lead on the first step.
25:07 >> Who would be the biggest resources
25:10 initially on like a realtor or a title
25:12 company for information? Let's say you
25:13 don't have access to apps, subscriptions
25:16 to get data. What are some free avenues
25:17 real quick to go to?
25:19 >> Uh county tax assessor has all the list.
25:21 So you call them, you can call them. You
25:22 should get sometimes it depends what
25:23 county you're in. Sometimes they'll send
25:25 you a zip file or like the old I don't
25:26 even know what they're called and you
25:28 can't decrypt it. Um but yeah, the
25:30 >> floppy disclos this is all public
25:31 records. You're in America, right? You
25:33 can type in this person right now and
25:34 find out their mailing address and you
25:35 can go to the county and you can get
25:37 their mailing address. That's more one
25:39 by one than pulling a bulk list or you
25:40 can say give me the list of your whole
25:41 database and the tax assessors and
25:42 they'll actually give you the whole
25:44 database of the all of it. But then you
25:46 need to sort through it. So more of a
25:47 one by one approach. you go to the
25:50 county tax assessor online or the GIS
25:51 map and you can look at individual
25:53 properties and get the mailing address.
25:55 What is the most underrated benefit of
25:56 land flipping?
25:57 >> Yeah, I think the biggest thing is like
25:59 when you get a land deal under contract,
26:01 the seller might live a thousand miles
26:02 away and like the deals are simpler
26:04 because you don't need someone to move
26:05 out of their house. If you're house
26:07 flipping or house wholesaling, like that
26:08 seller has to move out at some point.
26:10 You don't have to deal with analyzing a
26:11 structure. I just need to look at the
26:13 raw land and make sure nothing's too
26:16 crazy about it. It's good land. So the
26:18 ease of analyzing it, I think, is why I
26:20 love land flipping so much versus other
26:21 real estate where you have to look at
26:23 structure, plumbing, electrical, and
26:25 then even after you buy it, you you get
26:27 burned a lot in structures cuz you don't
26:28 know everything. You don't know what's
26:30 behind the walls. So land the biggest
26:31 benefit in my mind is it's easy to an
26:34 analyze once you learn how to do it.
26:35 >> What does climbing the ladder mean and
26:37 why is it crucial for especially for
26:39 those starting out in in this industry?
26:40 Yeah, I think like when you're getting
26:41 started in land investing, like the
26:43 first stage is like this business model
26:45 is for me and making that decision.
26:47 Second would be like learning a little
26:49 bit, but then like your goal is to get
26:50 your first deal. Then you scale up to
26:52 two, three, four, five deals. Then
26:54 you're making some really good money.
26:55 You can leave your job. A lot of
26:57 opportunities open up there. But some
26:59 people try to skip the first few steps
27:01 or they get stuck even like analyzing
27:03 the business model too much or in the
27:04 learning phase, they get stuck there and
27:06 they never actually take any action. So
27:08 there's a balance between learning,
27:09 taking action, but we really want to get
27:11 everyone to that first deal because then
27:13 you have the proof of concept that you
27:14 really need for this business model.
27:16 >> What's important besides patience when
27:17 it comes to climbing the ladder?
27:19 >> Besides patience, I I think some grit
27:21 because you're going to have things come
27:22 up. You're going to have some
27:23 difficulties in this business come up.
27:25 We weren't successful out of the gate in
27:27 this business. It took 3 4 months to
27:28 really get rolling and then when it did
27:30 get rolling like it was a snowball fast
27:32 down a steep hill essentially. So need
27:34 some grit at the beginning. You need to
27:35 be able to go through tough times for
27:37 sure and be willing to do that. But
27:39 that's probably the biggest thing for my
27:40 what I see from successful land investors.
27:41 investors.
27:43 >> So for every $5,000 that you spend on
27:45 marketing, you expect a net profit of
27:46 what? 50,000
27:48 >> about $50,000. Like we usually 10x our
27:50 marketing spend very very normal. We
27:51 like direct mail when we're doing
27:53 marketing for the most part. Like that's
27:54 what we built our business on. Other
27:56 forms of marketing that are cheaper are
27:58 texting, cold calling that you can do as
28:00 well for this business. But that's 8,000
28:02 9,000 pieces of mail. All it is is two
28:04 deals though. Like that's all we need to
28:07 get. So 9,000 pieces of mail, $5,000 of
28:09 spend. We're gonna get about two 20 to
28:11 $30,000 profit deals at scale. Sometimes
28:12 you're going to get a lot bigger though.
28:14 Like sometimes you'll get a $80,000
28:16 profit deal at scale with how much mail
28:18 we spend. We we sent millions of pieces
28:19 of mail and that's what the numbers come
28:21 out at scale. Like we're going to make
28:24 $50,000 for every 5,000 we spend. So it
28:25 the the name of the game is just
28:26 spending more on marketing essentially.
28:27 Like like we talked earlier,
28:29 consistency, send your marketing,
28:31 spending money, and then following up
28:32 the leads. But uh yeah, that's what it
28:32 looks like.
28:34 >> Yeah. And it's achievable. How do you
28:36 define the markets in which to spend
28:38 this marketing money?
28:39 >> That's the first part of the business.
28:41 We call it analysis, right? And uh
28:42 analysis and then marketing is the
28:43 second, actually sending them out. And
28:45 we're looking at things like sellrough
28:47 rate. How many 5 acre to 50 acre
28:49 properties are on the market versus how
28:50 many have sold in 6 months. So you're
28:51 just making sure what you're buying is
28:53 going to go through. We look at days on
28:54 market. It's average property. How long
28:56 is it taking to sell? We look at
28:57 population density. We don't want to be
28:59 in Seattle, Washington. We want to be
29:00 one or two to three counties removed
29:02 from a city like you are right now from
29:04 Cincinnati because then you get the rush
29:05 of the people from Cincinnati who just
29:07 want to own land, put a cabin on it, put
29:09 a future house on it, whatever they want
29:10 to do. Just keeps the market open and
29:12 the demand really high. The key is the
29:14 balance of sellers and buyers. We're not
29:16 in the middle of Cincinnati. So, the
29:17 sellers are a little more interested in
29:19 selling their land out here than in the
29:20 middle of Cincinnati. They know they
29:22 have something. And buyers, like Dan
29:23 said, buyers will come from the city.
29:25 Buyers want to own land outside the
29:26 city. There's a lot of people with
29:28 money, especially since co like there's
29:29 a lot of people that are trying to get
29:31 outside of city for weekend retreats,
29:33 stuff like that. So that's it's the big
29:34 balance when you're choosing a market.
29:36 Two to three counties removed from a
29:37 main metro area is really what we push though.
29:37 though.
29:39 >> And what's what's the key to your pitch then?
29:39 then?
29:41 >> Fast cash. Like we give people cash
29:43 within 14 days. If they were to list on
29:45 the market, it might take 8 months, 12
29:46 months. They have to find a realtor.
29:48 They have to pay realtor fees. We take
29:49 care of all closing costs and we're
29:50 going to get you money within 14
29:52 business days. So that's the biggest
29:53 thing is like we're going to follow
29:54 through. It's going to be a smooth
29:56 transaction. You don't have to worry
29:57 about anything and that's why we can buy
29:59 properties at such a steep discount.
30:02 >> How big is your team today across uh the
30:03 portal, the businesses that you guys are doing?
30:04 doing?
30:06 >> It's about 30 people in general and
30:07 that's throughout all the portfolios
30:10 from droners to the land business to our
30:12 other businesses, everything 30. And we
30:14 have virtual assistants. We have people
30:16 uh here in the US. We've kind of have a
30:18 combination of inerson and hybrid as
30:19 well. What's the most unexpected thing
30:21 that you guys have learned from building
30:22 and managing a team? I don't know if
30:25 it's unexpected, but the interview is
30:28 the best uh you're going to see the best
30:29 light in that person essentially. Like
30:30 when you're interviewing someone, like
30:31 you're they're going to be buttoned up
30:33 obviously, everything like that. And uh
30:35 just having realistic expectations for
30:36 employees, trying to build up employees
30:38 is kind of the biggest thing that we've
30:39 worked on the last couple years. Having
30:41 our employees go from a lower level
30:43 position, moving up in the manager
30:45 position, everything like that. But um
30:47 for me, I'm like I never get too high of
30:48 hopes for someone because we've had
30:50 people with the highest hopes and then
30:51 they haven't worked out in the first few
30:52 months. So just kind of level
30:54 expectations when you're hiring someone,
30:56 hire based on your core values is really
30:58 big for us. Your core value should be
30:59 the opposite of what you hate. So if I
31:01 hate people who lie, my core value is
31:03 going to be transparency and like being
31:05 honest, everything like that. So that in
31:07 the hiring process has been huge.
31:08 >> How do you guys find investors who are
31:10 willing to put in hundreds of thousands
31:12 of dollars into a deal? The easiest
31:14 place to start is other land investors
31:16 because the cycle of land investing,
31:17 someone comes in, they want the freedom,
31:19 they want the money, they build up some
31:20 capital by doing deals and then all of a
31:22 sudden you'll sit there and you have 50,
31:24 100, $200,000 extra in your bank account
31:26 over time and it's like how do you put
31:28 that best to use? So you go out to other
31:30 land investors who are newer or need
31:31 deal funding in general, need their
31:33 deals funded and you offer to pay for
31:35 them and you do some sort of partnership
31:36 profit split agreement. That's the most
31:39 common. Other way is uh it's a cheaper
31:40 option and it's going out and getting
31:42 from friends and families and investors
31:44 more like a hard money option. So I'll
31:46 give you 15% plus an origination point
31:48 or something up front. But the way you
31:50 get that it's hard because they don't
31:52 know land. So you have to show them your
31:53 portfolio. You got to treat it more as a
31:55 business deal, make a presentation,
31:57 multiple calls. Becomes a sales game to
31:59 get those type. But really you just need
32:00 a few really really good ones. That's
32:02 what we did. We got like two to three
32:04 very very good investors for the hard
32:06 money side of things. Um, and it's a lot
32:07 cheaper than the traditional profit
32:08 splits that I was talking about. Then
32:10 you just sell their deals really fast
32:12 and then they have more money and then
32:13 they put more money into you.
32:15 >> So from a family investor for example
32:17 who don't do land, how do you convince
32:19 them to actually get in on a deal with
32:20 you? Do you have a personal deal that
32:21 you work on you willing to share?
32:23 >> Uh, yeah. So our dad became a big
32:25 investor of ours. Um, and also one of my
32:27 friends became a big investor of ours.
32:29 And one, they kind of see what you're
32:30 doing and they're building confidence in
32:32 you over time because they're not
32:33 investing the first deal that we have.
32:34 So they see we're kind of building it
32:36 up. Things are successful. They see
32:38 that. But the biggest thing is I like to
32:40 go in very confident because I know this
32:42 property is going to buy for 30,000.
32:44 We're going to sell it for 60,000 in,
32:46 you know, 60 days or so. And you just
32:48 show them the history instead of trying
32:49 to convince them. You show them the
32:50 data. It's like this is what we we're
32:52 doing. We'd love for you to be a part of
32:53 it more. So
32:54 >> the first deal is the hardest with
32:56 anybody. Like it's like and then once
32:57 they get that return the first time,
32:59 like when's the next deal? Our data is
33:00 always asking. It's like when's the next
33:01 deal? Do you need my money right now?
33:03 And then that's that's the question you
33:04 get after you really give them a good
33:06 return. And it's constant in terms of
33:08 like we had so many people who want to
33:10 fund our deals because how much return
33:12 they get with them. What two-letter word
33:14 helped you guys multiply your income?
33:16 Being able to say no to smaller deals.
33:18 Before we were buying $10,000 deals, 15
33:21 $25,000 deals, but we knew we had to do
33:23 10 of them to make a $250,000 profit,
33:24 right? I knew we could go after deals
33:27 and make, you know, 100,000 2000 3
33:29 $400,000 of profit from one deal. And we
33:30 found out it's the same process. there's
33:32 really no more work than the smaller
33:34 deals. So, we just had to shift our
33:35 mindset, shift our whole business and
33:37 our operations, get the whole team on
33:39 board and start saying no to the smaller
33:41 deals, go after the big and really stay
33:42 and the whole idea behind that was just
33:44 staying precise on what we wanted at
33:46 that time and just changing our market.
33:47 >> Probably very tempting early on to say
33:49 yes to every deal, right? You want to
33:51 get it all,000 bucks there,
33:52 >> commercial deal here, this deal, any
33:54 deal you'd take at first. And I like
33:55 that cuz you learn a lot. But as you're
33:57 scaling a business, you want to keep the
33:58 team focused and and you get really good
34:00 at one thing and it you can scale exponentially.
34:01 exponentially.
34:02 >> What's the fastest that you guys have
34:05 ever closed a flip from start to finish?
34:06 >> Yes. So we actually a lot of times we
34:08 get referrals from sellers. If we have
34:09 good experience with sellers and a
34:11 seller referred I think it was a cousin
34:13 or something to us, but it was Tuesday
34:14 we talked to the seller the first time.
34:16 Friday she had $60,000. What's the
34:17 takeaway there?
34:18 >> I knew the area. We just sold a property
34:20 in that area. So that helped. Like I
34:21 knew the demand. I knew we'd be able to
34:23 sell the property. There's nothing like
34:24 I overly questioned. We got a drone
34:26 photographer out there, but there's
34:27 nothing that like I questioned too much
34:29 about the property. Due diligence was
34:30 simple, straightforward. I would have
34:32 held it up a week, 2 weeks if there's
34:33 something I was concerned about to get
34:35 those answered, but um there wasn't
34:36 anything. So, it was a really, really
34:39 smooth process, honestly. How important
34:41 is mentorship to your success?
34:42 >> That's how I got started in e-commerce.
34:43 That's how I got started in land
34:45 flipping. That's what we still do today.
34:46 I always find someone who's doing what I
34:48 want to do, just more advanced, further
34:51 along in their path, and mentor under
34:52 them essentially. Right now, we have a
34:54 guy out in Colorado who mentors us. He
34:55 actually owns a supplement company. He's
34:56 more on the business side, the
34:59 analytics, all that. And then we have
35:00 another company that we go through
35:02 called SAS Academy who we also have
35:03 mentorship through. But every single
35:05 thing I do, I always try to find someone
35:06 who's better than me at it, who's
35:08 further along, and we partner with them
35:10 or just go under them, buy their course,
35:11 watch their YouTubes, and just really
35:13 dive into their model. How important is
35:14 that? Especially when you're first
35:15 starting out.
35:16 >> For us, it's like it expedites success.
35:18 Honestly, you can do stuff by yourself.
35:20 Absolutely. It's just going to take
35:21 longer. You're going have to learn from
35:23 mistakes versus someone can tell you
35:24 about the mistakes that they made when
35:26 they were in your position. And then
35:27 there's the community. You got to
35:29 surround yourself with other people in
35:31 the same shoes as you doing the same
35:33 thing on the same path. Maybe they're
35:34 advanced, maybe they're a little lower,
35:35 some are on your level. Just surround
35:37 yourself in a community because they've
35:38 been through it, they're going through
35:39 it, and you can just get immediate
35:42 advice. What if you could build a 100%
35:44 remote real estate business without
35:46 tenants, renovations, or property
35:48 management headaches? Inside the land
35:50 flipping blueprint, Ron and Dan share
35:51 the exact system that took them from
35:55 complete beginners to $667,000
35:57 a month. You'll learn how to pick the
35:59 right markets, find motivated sellers,
36:01 and use the exact same marketing tactics
36:03 that will help produce 9 to 12x return
36:05 on spend. If you're ready to run a
36:07 high-profit, low overhead real estate
36:08 business from anywhere in the world,
36:11 scan the QR code or hit the link below
36:13 to get access today. Was there ever a
36:15 property that you guys regretted buying?
36:17 And what's the lesson? What's the
36:19 takeaway in that whole experience?
36:20 >> There's been multiple, but the one that
36:22 comes to my mind is in George and
36:24 Crawford County, we bought a 40 acre
36:28 landfill. So, uh, without knowing it was
36:30 a landfill. We didn't buy a landfill.
36:31 >> We didn't know. We found out after we
36:34 bought it. Um, and we had such a good
36:36 deal on it at the time that it still
36:37 made sense at the end, but the process
36:40 was was awful. But essentially what
36:42 happened is we found out the perimeter
36:43 of where the landfill was. We actually
36:45 bought two parcels right next to each
36:46 other. And I think it was 20 acres and
36:48 20 acres. So the landfill was on one of
36:50 the parcels but didn't take up the whole
36:52 other. So we sold them as one and said,
36:54 "You can build on this one and not the
36:56 other." But the problem was people were
36:57 calling the county doing their due
36:58 diligence saying, "I'm looking at this
37:00 land." And the county was just telling
37:01 them that's a landfill. Don't buy it.
37:03 So, it took probably 6 months of going
37:05 back and forth with the EPA for them to
37:08 write a letter to the county to tell
37:10 them that they can build on it, separate
37:11 the two and build on this one. But the
37:13 learning part was due diligence, right?
37:15 And that was when we were fairly new to
37:16 the business model on the deed
37:18 somewhere. It said landfill. We just
37:19 didn't catch it. And it happens like
37:21 we've done over a thousand deals. It
37:23 happens, but that was one that was very
37:25 preventable in front of us that we just
37:26 kind of ignored and didn't catch.
37:27 >> We did make money on the deal cuz we
37:29 bought it so well. So, we made $20,000
37:32 buying a landfill, but it was 50 calls
37:34 every single day of buyers because we're
37:37 listed so cheap, posted so cheap for the
37:39 area, 20 acres or 40 acres and everyone
37:41 was calling us. Then they were calling
37:42 the county and then they're calling us
37:43 back like, "Yeah, no, I'm not buying
37:45 that." So, uh, it was a lot of work, but
37:47 we did make some money, which I guess
37:49 it's a win. We learned some things. It
37:50 >> was a cheap learning experience. Yeah. >> Yeah.
37:51 >> Yeah.
37:53 >> What's one unconventional tactic that
37:55 you guys have been taught by someone
37:56 when it comes to identifying core
37:58 values? It's taking what you don't like
38:00 in people and building a core value
38:02 against it essentially. So we didn't
38:03 like people that kind of sit on their
38:05 thumbs and don't take action. So one of
38:07 our core values became actionoriented.
38:08 We like to be around people who really
38:10 want to grow and get better and just be
38:11 better people personally and
38:13 professionally. So we installed growth.
38:14 So it's just taking what we really
38:17 didn't like in our team members and just
38:18 people around us in general and building
38:20 core values against them so that we only
38:21 attract the things that we like.
38:23 >> Like we're around our employees a lot.
38:25 Um, and you want to be spending time
38:26 with people that you really like to be
38:28 around or it's just not going to be a
38:29 great relationship. They're not going to
38:30 be great for your business. So, like it
38:32 it was huge in how we built it. It was
38:34 really good advice. We probably got it 5
38:35 6 years ago and we still use it today
38:37 when we're hiring. What's the biggest
38:39 myth that stops new entrepreneurs from
38:40 diving into specifically real estate
38:42 that it's too late? The boom already
38:44 happened. The COVID boom. All the prices
38:46 are too high, right? Everyone says that.
38:48 That's a huge myth. One, it comes in
38:50 waves, right? Prices of real estate are
38:51 going to continue to go up over time.
38:53 And two, our business model is a little
38:55 bit different. We're not going after a
38:57 apartment complex to just rent it out
38:58 and get a little cash flow like that.
39:00 We're buying so far under market value
39:01 in this business that we know we have
39:03 room to make margins on it. So, it's not
39:04 like we're just waiting for the market
39:06 to go up in price. We're doing it now
39:08 and it's a snapshot of what it is now in
39:09 the market. But people say it's too late
39:10 to get into real estate.
39:12 >> It's amazing that there are clientele
39:13 out there, right? Sellers that are
39:15 willing to sell at 50 40% of retail value.
39:16 value.
39:17 >> Yeah. I mean, that's the truth. every
39:19 single day, every single week. Like we
39:21 find those people like it's just people
39:23 that are looking to liquidate. Honestly,
39:26 we say land, we make an illquid asset
39:28 land liquid, but with our offers
39:30 essentially like it is not easy to sell
39:32 land. Our offers are really enticing to
39:34 people because we make their asset
39:36 liquid very very fast. 14 days you can
39:38 have money. Uh so that's why it really
39:40 entices sellers and why we get accepted
39:41 offers every single day. Really.
39:43 >> What's been the most expensive business
39:45 mistake that you guys have made so far?
39:47 What did it cost you? What's the lesson?
39:49 >> Overfocusing on our systems too early.
39:51 We needed to be focused on acquisitions
39:53 and sales and being on the phones with
39:54 people, things that drive the needle. We
39:56 built a CRM system, a custom in-house
39:59 CRM system through a consulting firm,
40:00 and we did that way too early on, and we
40:03 spent, I think, $40,000 on this. If we
40:04 would have taken that money, got a new
40:06 employee, got some other things, put it
40:08 in the mail and marketing, we would have
40:09 seen a much better return. You do have
40:11 to do that at some point, but it doesn't
40:12 need to be as elaborate as it can be.
40:14 You can do a lot with systems for not
40:15 that much. you could do Excel spreadsheet
40:15 spreadsheet
40:17 >> and that system like it was not like we
40:19 spent too much money on it. We spent
40:20 every dollar was too much money. We
40:22 don't use it. We've never used the
40:24 system that he built for us. Um so it
40:25 was $40,000 burned.
40:27 >> Guys, what book changed your business
40:29 the most and why? And how do you turn
40:31 insights into action versus just
40:34 continuing to gather more information?
40:36 >> Yeah, for me early on in our business,
40:37 we read the book called Traction. I
40:39 think it was by Gino Wickman. It's
40:41 basically how do you build a business?
40:42 How do you build core values around your
40:44 business? And that's something that we
40:46 still live by today. So it was 7 years
40:47 ago we read this book. We wrote down our
40:49 core values that we're going to hire
40:51 people based on, fire people based on,
40:52 promote based on all these different
40:54 things. So it's things we live by every
40:55 single day. And as far as other people
40:57 reading books and like they take these
40:59 insights, don't take action. It's just
41:00 you got to have the stage where you
41:01 consume and then you have the stage
41:03 where you take action. The way we figure
41:05 out how to uh and what we're going to
41:07 take action on is by also from traction
41:09 our quarterly rocks where we're like
41:10 what three things are we going to focus
41:13 on and anything outside of that bubble
41:14 really we ignore for the most part. So
41:16 it's like when you think because too
41:18 many people read too many books and
41:19 they're trying to take action on 10
41:21 different things. Pick three things for
41:22 a quarter that's 4 months and just focus
41:24 on those three things. You'll be amazed
41:25 with how much progress you make.
41:27 >> Say there's an aspiring entrepreneur
41:29 watching you guys right now who's um you
41:30 know afraid to take the next step. maybe
41:33 he's doubting himself or herself. What's
41:34 your advice, actionable advice that they
41:36 can take today to just go out and execute?
41:37 execute?
41:39 >> I think learn about different business
41:41 models like and then choose a route.
41:42 Like if you know like entrepreneurship
41:44 is for me like you got to choose what
41:45 route you're going to go and like Dan
41:47 said earlier like any route can be
41:49 successful. So once you choose whatever
41:50 thing you're going to choose like you
41:53 got to be full force into it and not
41:55 like think some people like hit the
41:56 first roadblock and then they're like
41:58 okay this isn't for me. You got to get
41:59 through those first roadblocks. You got
42:00 to choose the business model first.
42:02 That's the best piece of advice. And
42:04 then once you choose it, go all into it
42:05 >> and don't look behind you. My dad gave
42:07 me that advice when I was looking. I had
42:08 like five different job offers out of
42:10 high school. He's like, "Pick one. Go
42:12 with your gut and don't look behind at
42:13 the decision." Or else you just say to
42:14 should I have chosen this business
42:16 model? It's not working. Cuz then you
42:17 have excuses when you hit those
42:18 roadblocks to get out and go to another
42:20 business. It's just stick with it.
42:22 >> If you could start today with a,000
42:23 bucks, I think people would be really
42:24 curious to find out how would you spend
42:27 that $1,000 to give you the momentum to
42:29 get the first deal closed. So, getting a
42:31 list of leads uh of potential sellers,
42:32 choosing an area that's going to cost a
42:34 little bit of money, and then using a
42:36 texting software to blast out the
42:37 sellers essentially, so to reach the
42:39 most people. If I said direct mail, we
42:40 can't reach out to that many people.
42:42 We're not going to get that many leads.
42:44 With texting, we can probably hit 10,000
42:45 people with those and it's going to get
42:47 you your first deal. With $1,000, if you
42:49 do it right, you can get your first deal
42:52 and have 20 turn that into 20 $25,000.
42:54 So, I think texting is the best
42:55 efficiency for that cuz you can hit the
42:57 most people in terms of reaching out to
42:58 the most sellers. So, when first
43:01 starting out, low low budget, your
43:02 perspective is texting.
43:03 >> The thing about mail is you could spend
43:06 15 or $1,000 on mail and get no results.
43:08 And we don't want to turn that $1,000
43:10 into zero. With texting, you can reach
43:11 out to 10,000 people. It's going to take
43:13 a little more bit more time than direct
43:14 mail. But that being said, it's going to
43:16 give you best chance with $1,000 to get
43:18 to get a deal. Want more ideas on
43:19 getting into the real estate game
43:21 without having a ton of cash of your
43:23 own? Check out episode 227 where Ken
43:26 McElroy shares his no money strategy for
43:28 building a $2 billion real estate
43:30 empire. Take a second also to like and
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