Epic Real Estate Investing - Jack Bosch and the Land Profit Blueprint [LandProfitBlueprint.com] | 238

Episode Date: November 28, 2016

Expand your investing know-how with Epic Real Estate Investing and the talented Jack Bosch of LandProfitBlueprint.com. Discover even more creative ways you can acquire discounted properties and maximize your return on investment. Find strategies for finding and securing available land under contract and create bargains where other investors don’t even know to look. ______   The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? • E.ducation • P.roperties • I.ncome • C.oaching   Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Broadcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. Hello, and welcome to Epic Real Estate Investing, the place where I show people how to escape the rat race using real estate. And if you're just getting started and or you're looking for new and creative ways of making money in real estate, I've put together a free course just for you, including a checklist on how to you. how to find motivated sellers because that's where it happens. That's the foundation of every deal. It lies right there within the seller's motivation to sell.

And if you can find them, then you can find deal. So I gave you a checklist on how to find motivated sellers. Those are property owners that are willing and able to sell you their property at a discount. And to access that free course, go to free real estate investing course.com. Free real estate investing course.com. All righty. Feels good. Back on regular schedule.

Hope the Thanksgiving holiday treated you well. and hope you had some time to rest and relax a little bit. And if you signed up for the Epic 89 program, that starts today. And I'm very excited to meet all of you. I got 30 fired up real estate investors ready to take charge and take control of the next 89 days and just make them absolutely amazing. Those lessons that program opened up this morning, there was a little bit of technical difficulty. Everything should be totally fixed by the time you are listening to this. but just in case you are like, you know, listening to this at 1201 in the morning,

there's going to be a little bit of an issue just for a second. Give it a few hours and we should be up and running. Good to go. All right. And I've got a great interview for you today. We haven't had a guest on the show in a really long time. And my guest is a member of my mastermind group. And for more than a decade, his business has consisted of a small niche of real estate

with very little competition, with really high returns on marketing. and it produces, his strategy produces chunks of cash and streams of cash flow. And that has really become the theme here around the office the past 18 months or so. We've always been about cash flow. We've always been about, you know, creating streams of income. But, you know, the last 18 months, we've really kind of embraced being able to do both at the same time. So, you know, I mean, why do you have to choose between cash and cash flow? Why can't you have both?

And that's what I do with every deal now. I create cash and cash flow. And if someone, if I find someone that's doing something, I'm not, and they're doing it and they're creating cash and cash flow, that person has my attention. So I asked him to come on the show today and talk to us about how he's doing it. Real quick, though, by popular demand and because of the overwhelming response from the Epic Intensive, many people said that was the greatest event they ever attended when it comes to real estate investing education. there is a new one on the calendar. And let's see, the date here is January 26th and 27th. That's going to be in Manhattan Beach, California, so the end of January.

And the theme for the last intensive was strategies for a shifting market, which was a huge hit. But what I didn't expect was the tremendous amount of conversation that was created around creative ways of creating passive income and escaping the rat race. I mean, I guess I'm not surprised, but I was actually a little bit surprised because that was like the dominant conversation. So although we'll be discussing more shifts in the market and what there is to do about it, but the primary topic of discussion and overall theme of this coming intensive will be around creating a monthly stream of income that pays your expenses and builds your wealth in as little as 12 months, even if you're prone to procrastination, overwhelm, and susceptible to distractions. All right. If that sounds like you, you might want to get in. Go to early bird registration will be open any second. If it's not already, you can go at epicintensive.com.

The price will be inching up, the closer that we get to capacity. So the earlier you grab your seat, the cheaper it's going to be for you. So go to epicintensive.com and grab your seat. All righty. Now, let's get to our special guest to discuss a virtually untapped strategy for creating large chunks of cash and long streams of cash flow. So please help me welcome Mr. Jack Bosch to the show. Jack, actually, welcome back to Epic Real Estate Investing.

Thank you very much for having me, Matt. I'm excited to be here. Thank you. Yeah, you're one of a return guest. We talked a few years ago. And we were talking about what you do with regarding to flipping land and generating cash and cash flow out of that. And I have to admit, I think maybe when we first talked about it was such a new concept or not necessarily new, but just different, so different. than what I was doing.

I don't know if I was really open to it. And, you know, this year has been a really good year with regard to creativity and new acquisition strategies, new exit strategies for us in the office. And I was like, let me check back in with that Jack guy and see what that land thing is going about. Maybe we can fit that into the, into the business model as well. So I really, for selfish reasons, wanted to get you back on the phone to find out more about it.

And like, so can you just kind of start me from the beginning? and so I'm really clear and then everybody else they can listen in. Wonderful. Yes, I'll be happy to. So, so yeah, so I have been the odd wall in the real estate industry basically for now for the last 14, 15 years since 2002 because when I stumbled on real estate, all these all these traditional techniques like flipping houses and things like that and rehabbing and fix and flip and all things, they all were too complicated for me at the time. because I as you can tell from my accent I'm not from here I mean you know me where I'm from Germany I came over to the US in 1997 I didn't really know much at all about real estate

I had no real estate background from Germany anyway the way real estate works in Germany is completely different than here and I I basically started just dabbling in real estate I wanted to get into real estate but I was scared I had like $3,500 to my name that's all I had saved up. And I basically did, what I did is I tried all kinds of stuff. And I failed at all kinds of stuff, including like on my first wholesale deal, because I, I mispriced it, misestimated the repair costs because I didn't have a clue. And then when nobody wanted to buy it, I freaked out and backed out of the deal.

So, but when I came across land, I realized that if you focus and I just stumbled on it, There was no plan behind it initially. When I stumbled upon lots and land, I came across properties worth $10,000 that I could literally buy for $400. Now, cash, frame clear from the owner. The owners just owned them for 10, 20 years. They didn't want to have them anymore. They didn't want to pay property taxes anymore because what people think about land is technically true if you hold on to it. Basically, when you hold on to it, you don't, it doesn't cash flow.

and you have to pay property taxes every year. But if you flip it, so because of that, there's a lot of people who don't want their land anymore, but you can actually use that to an advantage because they just want to get rid of it and they're even more motivated than housesellers. So you can buy properties for $0.5, 10 cents on the dollar. And then the thing is, the key is,

you want to then flip it to somebody who does want it. So in that case, my very first deal was a property between two houses, a lot, pretty much all utilities there. And I bought it for $400, put a sign up there. The neighbor comes across the street comes over and says, like, what are you doing? It's like, I'm selling the property. And he's like, I want to buy it. Great.

So I sold it to him for $4,000. So I made 10 times my money. And that's kind of what it started out with. And I realized that a lot of the things that, especially that anyone deals with in the housing industry is just eliminated with lots of land. There's no mortgages, there's no tenants, toilets, termites, no repairs, no mold, none of that. Right, right. Got it.

Okay. So I guess my first question is how do you find this land? All right. So the key is it's very, very simple how you find it. You basically get our focus, these properties that are worth under $100,000. So again, we're not playing in that big marketplace for the builders. and where the developers and those guys play. That's the other myth of land that they say,

like, well, my land is expensive, it's risky, takes a long time. Well, that's true if you buy an acre in downtown LA and wanna develop another $700 million office tower on it, right? That's high risk, that's high cost, high development, high time. But if you buy a couple of acres on the outskirts of town, that costs, that it worked, $20,000 and you pay $3,000 for it, then it's not high risk because the worst case scenario

is that you flip it to somebody who wants to hold on to it and takes money of the stock market and puts it into real estate in the path of growth. And in a few years, the city has approached and now they're happy. So their goal is not to sit on that land forever. Their goal is to buy that land as a financial instrument in a sense to as an asset that appreciates over time. and they're willing to pay the property taxes over time. So how do you find that very simply?

You just go either to the county or there's online services that you can go to and just ask them for a list of vacant land in their county. And ideally what I like to do is I like to go after three different markets, where we can talk about that in a moment. Okay. So it's just information that's readily available, like house information is available. Exactly. It's available.

You can go to the county, get a list of what, get a copy of what's called the vacant land list, or get a copy of even their entire assessment role or go to services like the same services you go to for houses and just tell them now, I want land and I want land in this county. And as I said, I go after the actual county of a big city. Like in LA, you can go to LA County and ask them for a list of all the vacant lots in the city. And they'll give it to you. Or you can go and say, like, give me all the land on the outskirts of the, like all the land on the outside of a county. Or you can say, well, if L.A. LA County, let's say, is too populated.

Give me all, you go to the county one over, just one outside, like Lancaster or or some Bernardino County or current county or whatever these are. You can do that in any market and go, say, like, give me, give me the list of all the land there. Now you're like about half an hour outside of the city, but it's still attractive because big city is becoming so expensive to live in that there's demand for properties just outside of it. people rather drive a little bit but have more space and can live on. So we're not necessarily looking for the junk, not at all. We're looking for strategically located land and outside of the big cities,

there's a lot of it. Got it. So just going to adjacent cities, adjacent counties of popular counties and cities. Right. Okay. I understand that. Now you've got your list. What is your best way to contact the people?

All right. What we do is we send them direct mail. Okay. Now, having said that, I actually just talked to a lady. I was doing a presentation at a event for Robert Kiyosaki, not too long ago. And at that event, I talked about my land investing strategy. And afterwards, the next morning, a lady comes up to me and basically tells me, she just looked online, found on one of these platforms like, cracks list and now Facebook has the marketplace and other places like that. She found a piece of two lots in the city that the guy wanted $35,000 for. She did a little bit of a quick comparable analysis, just like you would with houses. Found out that the properties were worth probably like 50 and texted the guy or contact to the guy via email asking, would you take $20,000 for those two lots?

And he said yes. And then she worked the phone the next morning. and found a builder right away who would give her $45,000 for them. So overnight, she flipped those properties without any direct mail, made $25,000. And she did that just by basically hustling and the beauty of this is, and that's why I want to bring this example is that one of the beautiful, beautiful pieces of Atlanta is that you actually don't necessarily have to go inspect it yourself because Google Maps, Google Earth, shows you everything there's to show.

You don't have to look at the roof to see in what conditions. the kitchen is because there's no kitchen, right? Right, right. Then it wouldn't be vacant land, would it? Yeah, that wouldn't be, exactly. So that's the thing. That's what people forget. They're like, oh, my God, how do I do this?

Well, very simple. You want to buy a piece of land on Hawaii? Great. There's Google Earth. Just go look at it from that angle. If you like, what you see, we'll make an offer. And so on. So it's much much simpler.

It's what a thing I realized that we both belong to a Rosal Investors group. And what I realized there is, that there's a lot of complexities in the housing world that that that contribute to it being profitable but that also makes it a little scary for the beginning investor so so that's that's why I stumbled but yeah we use direct mail usually we send them a letter and again contrary because there's not much competition we get huge success rates we get huge response rates So like when a house investor gets, what's kind of an average response rate?

Two, three percent? Yeah. Four or five is a really good mailing probably these days. Right. Four or five is a really good mailing. Well, if we get less than a 10 percent response rate, we need to look at what we did wrong because we usually get between 10 and 20 percent as a response rate from the sellers because nobody else mails to them.

And yet at the same time, there's websites like Landwatch where that were three million people a month go to buy land from. So you can you can you can you can sell it very quickly. Sweet. Okay so direct mail is still no secrets here. Doesn't sound like anything complicated. Anything different than what we do already. So when you're talking to them and you mentioned this this question has come up

from some students of mine inside of our Facebook group is running comps on land. And so I guess really determining the value of land and accurate value of where you know you're going to be able to sell it for a profit. Where do you find land sold and how and what's the criteria? Because land comes in all different shapes, form and sizes and different areas, and it's probably not sold as frequently as houses are. So how far back do you go with the comps and kind of explain the evaluation process a little bit to me?

Wonderful. Yeah, that's also one of the number one questions I get. So I have an extra, in one of my educational programs, I have an extra detailed module about that. So there's really three ways to value land. One is the exact traditional way that you do houses, which is looking by sold comps. Now, back when I started 2002, 2003, there were no online ways to figure out sold land other than the MLS. And I couldn't get on the MLS because it wasn't as prevalent as to this today. that you can just find on a realtors website, go search the MLS and pretty much any market.

Right. So, but if you have, but nowadays, that's different. So it's actually easier now than it ever was. On the, you can, you can, you do it exactly what you do in houses. You look for like kind property that are sold in an area. Now, the thing is, again, since we're focusing on either infill lots or we focus on, on, on, on smaller, like one to 10 acre lots right on the outside of big cities. or we focus on large acreage in more recreational things or when somebody can go out and have their own 40 acres

with a little creek going on it where they can put a cabin on and something like that. So those are three very attractive kinds of land that a lot of people are looking for. Like the first one is for the builder. The second one is for more of a financial speculator. The third one is for more, the guy that wants to go hunting

and take his family out and have a blast. So a lot of those are, a lot of those the comp process is a little different for each of them so the the infill lots are obviously there if you can find other other infill lots that sold great it's the same comp process that you do in houses you look what's old and you compare it if you can't find soles on that end if because it's an infill lot there might be a hundred houses and only one lot left right in that case you got to do what the appraisers do which is basically value it a lot based as a percentage of the house value.

Okay. So if the house is worth $200,000, typically it's said that the land is worth about 20 to 25% of the home value. Right. So that's, that's one way. If you have houses that are worth $400,000, these lots are worth $80,000. If the lot is worth, the houses worth $200,000, the lots are worth about $40,000. The simple as that.

Okay. If you're in the outskirts of town, typically what's happening, there is a lot of like kind property. There's not, it's people that whoever split these properties up already, split them up in one acre pieces or two acre pieces or five acre pieces. Okay. So it's not like you have to go look for everyone is completely unique. It's usually there there's somewhat uniform in size and and then you can go, you can go by that. And now if you don't have solds there, what you do is you take listed properties and you subtract about 20% of the listing price because land sells at a little bit more of a discount over asking price than houses do.

Okay. All right. So a well-priced house at $100,000 will sell for $100,000. Mm-hmm. A piece of land listed at $100,000 probably sells at $80. Okay. All right? So if you know that, that's fine.

And then in the large acreage, you do the same thing, but if you come across something that's odd there, you can always go and then calculate per acre. So if you find something that's 10 acres and everything else you find is either 5 or 20, you kind of like look at what's the 5 acres selling per acre, what's the 20 acres selling per acre, and your 10 acres should be somewhere in the middle because you do get a volume discount. The larger you go on land, the less per acre you pay. Got it. So it's kind of like fronts of them.

So it's not a straight price per square foot type thing. The bigger comes down a little bit. Yeah, it comes down to these three different ways. Okay. I got it. So really, it's just like with a house, you just have to know your customer. Are they going to buy a hole? They're going to fix and flip because that's going to represent a different value to those two different people.

Exactly. That's how you market it too. I mean, if it's out more, if it's 40 acres out there, and this is a hunting area, you advertise it to it on the hunting websites, on the hunting places. Landwatch.com is a hunting land section. And you put it up there and it sells very, very quickly. You sell it on Facebook, on land groups and things. So it's easy and fast to sell them, very inexpensive too. And you just go about it that way.

You just gotta kind of know, but it's the same as the houses, right? You don't market a luxury home in the magazine in the penny saver, right? Right. It's not the market. Right, exactly. Okay, so you've got your vacant list. You've sent your mail. Now you've kind of got the value.

you got a lead there now when you go to present the offer is it really just after you figured out your comps it's hey would you take 20 000 for this is that pretty much it is as a matter of fact though we do our offers in writing and that's probably one of the biggest differences between this method and um and the other uncle housing methods like because there's so little competition in this area so few people go after the land deals even though there's tremendous deals you can literally cherry pick your best deals one of our stuff students just got a property for $11,000, sold it for $92,000. I mean, that just happened like two weeks ago.

And another one, literally also two weeks ago, got six properties worth $400,000 for $60,000. I mean, this is an average standard deal that's happening right now all the time. But because it's land and there's so little competition, we don't have to jump and make these offers. Probably the number one most important thing that separates us from the house investors is that we can schedule this business around our lives, meaning that once I have made my offer, I don't have to get on the phone and rush that offer to the seller. I can take my time. For example, in our business, we only make offers once a week. Like, I know it sounds crazy. Yes.

The house investors are like, what? You don't jump up from dinner and go meet the seller. It's like, no, nobody else is going to contact him in the next week or month or so. So you can take your time making offers. And because of that, we send our offers in writing. Okay. So we send them a letter. We send it in writing.

We give them a few days to accept it. And that allows the seller to get potentially over the initial shock of the offer being so low, perhaps discuss it with their kids, and then sign it and accept it. And that's another shocker. On average, we get an acceptance for every three to 500 letters we send out, not offers, letters. So if we sent 300, let's say if we sent 500 letters out, we get something like 50 responses. Now those 50 responses, there's an average deal and a half in there. So, I mean, those are numbers that are absolutely incredible.

That means that our marketing only costs us $300, $400 to get one deal. Now, if you look at that in the housing world, those numbers, you've got to take those numbers by 10. And obviously, housing people still make, house people still make a lot of money. I mean, as you are an example of. But still, so we send them in writing, and it's literally as simple as we figure out what we offer, anywhere between 5 and 25 cents on a dollar, put it into an offer template, send it out, stick it in the mail, and wait for the acceptance to come back. Got it. Any follow-up goes on there, or you just wait?

We do sometimes do a follow-up in that way. What we do is in the first wave of offers, let's say we send out 50 offers, we get one accepted. And then all of those other 49, we'll send up a follow-up offer, like two, three weeks later, with kind of like the maximum or a higher price of what we would offer. And then we usually get another one or potentially even two accepted, which basically means that on some people, we just missed the price. They were willing to sell a little bit more. But still at a tremendous bargain. I mean, instead of taking 10 cents on a dollar, they're willing to take 20 cents on a dollar. It's still a great deal, right?

Right, right. So we'll send them a second wave of offer in there. And then usually we leave them alone after that. We could probably get more, and we have done that in the past. We've gone back three, four times. But after three, four times, it almost becomes predictable. And then people are going to hold on to their land up waiting for the next offer and the next one. Right.

So you don't want to do that too often. Got it. Got it. Okay, cool. So you've got this deal. The seller accepted it. You've got it under contract. Now, are you assigning the contract?

you doing double escrows, are you closing first? How does the transaction go when you go to flip? All of the above, whatever comes back, whatever works best. I personally buy them because I have the financial means to do so. But at the beginning, when I didn't know anything about this, I literally would have him on a contract. And I would find the buyer. And I didn't know there was such a thing like double escrow. So I would basically buy him on one day and sell them the next day.

Now I would do in such a case, a double escrow. Usually I like to do double escrows more than assignments because our profit margins are so high that there's a potential of upsetting the buyer. If you buy something for a thousand and it's worth, or let's say you buy something for five, you have it on a contract for five, it's worth 40. And you're selling it to somebody for 30. Right. You might not get away with an assignment fee of $25,000. Right, right. No.

So in that case, you want to do a double escrow or if you can afford it, just buy the property and then sell it three, four days later because such a tremendous deal, you don't want to, you don't want to sit on it for forever and just want to go buy it and then go sell it. Super. Okay. All right. So you're making this sound really, really easy, Jack. There's got to be a catch.

How are you finding the buyers? How are you doing it in a couple days? Well, that's actually really the thing. That's why I'm like, that's why I've been screaming from the rooftops for the last eight years. This is what I call the simplification of real estate. There's really not much of a catch. The only catch is the only thing you're going to make sure, obviously, is that you do not buy junk real estate. I mean, there is some pockets in the country, some areas where there's really acres, they're only worth $500.

dollars, right? So if you come across those, by all means, stay away from those. But they're usually not right in the markets described. They're not in the cities. They're not right around the cities, and they're not the larger acres in the rural areas. They're often the itty-bitty properties, the small acres, the one acre in the middle of nowhere. And the one acre in the middle of nowhere is just not attractive. So stay away from that. But other than that, if you follow my steps and go after these three kinds of properties, there's really no, there's really no downside. Now, how to find the properties? They use, I like to say, you want to piggyback on already existing websites.

Now, we have a system, we have a website and so on, and we allow our students to actually put their properties on our website too. But overall, we piggyback or most of our students piggyback on already. How do you find the buyers piggyback, right? Right, how you, yeah, exactly, how you find the buyers. Okay, yeah, okay, got it. I'm sorry, sorry. How they find the buyers, yes.

The buyer is basically when you sell the property, you're putting them on already existing websites, like the big 800-pound gorilla is Landwatch. Landwatch literally gets landwatch.com, gets 800, get 300, 3 million visitors every single month looking for what you have to offer. Wow. Which is land. So you put your property on Landwatch. Yes, they charge a little fee for that, like 29 bucks, $39 or so a month to put

your properties on there, but they also have something like for 10 bucks more, you can put as many as you want on there. So once you have multiple property, it becomes really cheap. Like you have 10 properties, you put them up there. You end up paying like four bucks a month per property. And you should be getting on average three to five leads a week just from that buyer leads for each property. So for each property that you have. So you should be getting quite a bit there. And then also Craigslist. Cregslist is good for at least five to ten leads a week on your property. And between those, most cases, you're already selling.

Now, a little bit more advanced than what allow what people starting to do now and seeing tremendous success with is actually sell their properties right on Facebook. Facebook Marketplace. Just heard somebody, one of our students yesterday, mentioned that he sold the property on the Facebook Marketplace, which is now on your iPhone. you have this little icon in the middle that annoys me quite a bit because I don't want to buy yourself stuff through Facebook, but apparently people are selling land now through that amongst other things.

You can have, there's land groups already on Facebook and land pages that you can post your properties. You can start your own land group or land page. And again, in one of my educational programs, I just literally last week, I created a module about that. And so that's one of the simplest way. Obviously, that's some of the almost freeways. You can obviously do advertising. You can put the property on there and boost it on Facebook. You can do a little bit advertising.

You can buy advertising on Landwatch. And then what you want to do is you want to ultimately, if you want to scale this, you want to have your own website. You want to build your own opt-in page. You want to build a buyer's list. And as you build a buyer's list, you buyers list, just like in everything else. in the housing industry, the same thing. Your buyers list becomes your pool of buyers that buys most of the properties over time.

But to start out with, just use the Craigslist, the Landwatch, the Facebook, those places, and let them do all the hard work for indexing, and you just jump on their bandwagon and enlisted with them. And that should sell your first three properties very quickly. Got it. Okay. So really, it's very simple, very straightforward, nothing different than, we're all doing already. Sounds easier for sure.

So the big things to watch out for would be the junk properties. And anything else to be where. Any other cautionary advice? Yeah, well, the thing is with the junk properties, one of the things we do when somebody follows our advice, they use our contract and our contract allows them to back out any time for any reason. And the reason that we can use these contracts, because who we're dealing with, and that's the other question I usually get is, well, Jack,

why would these people give up these properties for $0.10 and a dollar? Why don't they sell it themselves? Well, have you ever bought something at a garage sale that there's a $200 item that is selling for $20 just to get rid of it, right? That's the mindset the sellers are in. They're just, they have been paying property taxes. They don't want to pay property taxes anymore. They have inherited them. They just don't want them anymore. So you're dealing with complete non-wanters that just want to get rid of that burden of property ownership. and they're signing anything, including a agreement that allows you to back out any time for any reason. Now, because you have that contract, we can actually push the research a little bit further back. So once we have a deal on a contract, that's when we do a lot of a research on the property.

That's when we start digging in into all the little details. And if we find something we don't like then, we can always back out then. So it's less of a kind of cautionary kind of thing. It's more of like a process piece. So you don't have to worry up front. Just make your offers based on what you think the property is roughly worth. And then figure out all the stuff about this property once you have it under contract. Because if you don't like it, you can always back out.

Other than that, no, I mean, just there's a few, obviously, a whole bunch of extra details. Like how do you properly put the listing together that it sells quickly, right? How do you properly make an offer that gets accepted? How do you go about finding the most exciting areas, right? How you found the areas where properties just like literally get ripped out of your hands and the moment you have them, you have three people wanting to buy them and so on. There's a few things that probably goes beyond what we can cover here. But overall, it's really, really simple.

We're dealing with people that don't want their properties anymore. In some cases, they even stop paying property taxes. And that's how I initially discovered this because I went after properties that had that had, I went to this tax lien and tax deed auctions, but then I realized that there's even the faster way to get to these properties by going directly to the owners. And then I discovered that most of the deals didn't even have back taxes. And it's like, great, now the world is my playground. And I just can go after all of them. So, got it. Perfect. All right. Question. Can you, can you increase your sales price, say, if you wanted to,

carry back financing and create actual cash flow for yourself. Thank you very much, Matt. I actually, thanks. Thanks. I completely almost forgot. Well, I'm a cash flow investor, so I'm always thinking about how can I create this. I don't like flips too much. Okay, yeah, very good.

So am I. Actually, back in 2013, I wrote a book called Forever Cash, which is my name for everlasting passive cash flow. So it's exactly, yes, absolutely. As a matter of fact, this method allows you to actually get cash flow from land because the number one way that we like to sell properties now is with seller financing. Because literally, when you sell it, you have to offer. I like to sell it in only one of two ways.

Number one is a wholesale deal, right? $40,000 property, buy it for $4, buy it for $5, sell it for $25. Done, quick $20,000 profit. You go home, everyone is excited. Second option, buy it for $5,000, sell it for full market value. Right. but ask for it 10% down payment. Yeah.

Right? 10% down payment. That's as simple as that. And as a result, now your market has expanded massively. Right. You got 10 times as many people can actually afford the property. They buy it by, give you $4,000 down and $500 a month. Well, with two monthly payments, you got all your money back.

Yep. Right? With a down payment plus two monthly payments, you got all money back, plus closing cost, perhaps a third month. After three months, you got all your money back. And now you get $500 a month for the next, something like eight years coming in. And the beauty of that is that it's true passive cash flow. Right.

Because there's no tenants. There's no toilets. There's no termites. There's no midnight moveouts. There's this pure, you're the bank, right? So you put yourself in the bank's position charging a 10% interest rate or 12% interest rate. And you literally just get money in the mailbox. You never have to repair anything.

And if the buyer ever stops paying, you just actually just foreclose on it. Or nowadays, we actually start work with lease options on land. So that's actually that they technically don't even buy the property, but they lease it from you. So you have to just do an eviction, which is very quick and very inexpensive because they pretty much abandon the property anyway. They don't live on it. Right, right. It's land. Right.

And as a result, it's like very quickly, you get it back. but you never go from a positive cash flow to a negative cash flow because there's no mortgage on it. Right. Right. There's a mortgage on it, but you're the bank. You're the holder of the mortgage. Totally. So it's a beautiful way to build cash flow.

And as a matter of fact, when I figured this out, when Michelle, my wife and I figured this out at the end of 2002, it only took us 10 months while having full-time jobs to actually build this up to $5,000 a month in cash flow. Mm-hmm. And then over the next couple of years, we built. at literally up to over $50,000 a month in cash flow. So this is a beautiful cash flow method with literally almost no downside. And at the same time, it's almost like you double profit because when you sell or sell a financing, you sell at the higher price. Right.

Because the deal is no longer the price. The deal is the affordability of the monthly payments. Correct. And you're charging interest on top of the higher price. So you're making profits on top of profit. So yes, thank you so much for mentioning that. I almost forgot the sweetest thing of the entire team. No, you know, this time last year, maybe about a year and a half ago now,

because I've been telling the story a little bit for a while. But about a year and a half ago, I had 200 doors, give or take a couple. And what I started doing all this year was eliminating, or not eliminating, but turning half of that portfolio into notes and selling seller financing. So now my portfolio was kind of split 50-50. I had so much depreciation from the actual real estate that I owed. Like I wouldn't have to pay taxes for a very long time. So I'm like, I would rather capture that right now.

Let's create some real passive income and have those level out a little bit is what I've been doing. And I'm just seeing this. Like I'm still looking for houses to do that. And the values of houses are going up a little bit. It's getting more and more difficult to do when properties go up like that. A lot of people in the market. So there's a lot of competition. a lot of people are getting their letters.

So my initial thought was after we've had this conversation with, wow, can I do this with the land too? So thank you for. And 100% yes. As a matter of fact, that's what lots of people do. I have lots of students that are building thousands of dollars of passive income by becoming the bank and by selling these properties at super high prices. And in all reality, you're doing the world of favor because banks actually don't like to lend

on properties that are on land that's worth less than 100 grand. Usually those kind of properties. Now, if it's an infill property, they do potentially lend on it because it all has all water sewer septic and everything to it. But water sewer and so on to it. But if it's in the outskirts of town, they usually don't lend on it. So if anyone wants to buy these properties and millions of people do, as it's proven by 3 million people a month going to land watch, millions of people would like to have a piece that they can either buy in the path of growth for the city. to approach or that they can buy a buy now pay off over time and then once it's paid off then they can

put their retirement home and even if it's just a mobile home but the point is they don't have $20,000 they don't have $30,000 right now and the bank won't give it to them so by you offering cell of financing you're really providing becoming a service provider in a niche where there's a tremendous need particularly by the baby boomers right we're not so fortunate that they have millions of dollars, but that want to retire in a low-cost kind of environment, have perhaps another five, ten years to go until they can retire. And a lot of our customers, a lot of our buyers are that, particularly for the more for the land in the more rural areas or so. There's, there's lots of them not, or, or like subdivisions just outside of bigger cities that are like

more like vacant. They buy land. They paid off over 10 years. And then they go, put a single white, double white, their mobile home on there, and they can now live a decent retirement that is debt-free. I like it. Cool. So Jack has been a pleasure. I get you now. I totally understand you now. A few years ago, I was like, yeah, well, I'm going to stick with my houses and multifamily. But I'm going to add this to my repertoire for sure. If I need any help, I'm going to reach out to you. And if other people wanted to do the same, how would they reach out to you? Very simply, they can go to the website, www.

Landprofitblueprint.com, at landprofitblueprint.com and check it out. As a matter of fact, there's a lot more information. There's a few videos and a lot more information about how this works. I do have a program about that. We actually just completely redid it after seven years, completely brand new based on like 2017, 16,000. 2017, 1617 methods, how it all works, and using all the tricks and tools that we've learned

over the last 15 years almost. So just go to land profit blueprint.com and you can just get a whole bunch of free information about how this works there. Sounds awesome. I will make sure that's in the show notes. So that's land profit blueprint. That's correct. Super.

Well, thanks for taking time away from your Hawaii vacation to sit. in with me. And it's been a pleasure and I'm grateful for you. And, you know, let's do this again sometime. Wonderful. Thank you very much. Okay, Jack. Take care, bud. Thanks. Bye-bye. Go to landprofitblueprint. com, land profit blueprint.com for more information on how Jack does what he does. All righty. So you know what time it is. It's time to give away this episode's $100.mazon.com gift card. This is actually the last one of the month. We did it on every single episode in November. I missed a couple episodes, but then we did a special episode over the, I think it was last weekend or two weekends ago. And we gave, I don't know, three or four away on that one episode to make up for all the ones that we missed.

So I think we hit it. So let's go ahead and spin the wheel to find our last winner of the month. Headline says, great podcast. And the name is Yoman A-8-2. I think it's Y-E-O-M-A-A-8-2. And they write one of the best podcasts on iTunes for Real Estate Investing. listen and learn short and sweet thank you very much for that yeoman and send me an email to podcast at epic real estate.com podcast at epic real estate.com some of you send them to me at

mat at epic real estate.com they're going to get lost there don't do that send it to podcast at epic real estate.com and i'll reply with a $100.mazon.com gift card that you can use for yourself in the holidays do use whatever you want already so until next week god bless and to your success I'm matt terrio living the dream you've been listening to epic real estate Investing, the world's foremost authority on separating the facts from the BS in real estate investing education. If you enjoyed this show, please take a minute to visit iTunes and share your thoughts. Thanks for listening. We'll see you next time here at Epic Real Estate Investing with Matt Terrio. This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com.

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