Posted on: January 19, 2021
WI 605 | Land Investing

 

There is one lucrative source of passive income that’s right under your nose that our amazing guest today swears by: land.

Brent Bowers is a successful real estate investor, coach, and soon-to-be Wholesaling Inc. coach whose primary focus is buying and selling vacant lands. In just a short amount of time, Brent was able to expand his business, hire a team, and spend quality time with his loved ones. All that while earning an average of $41,000 in passive income!

In this episode, you’ll get a bit of an introduction to land investing and how it’s done from one of the best in the niche. If you are looking for a lucrative passive income that truly delivers, you can’t afford to miss this episode!

The Hidden Way to Build a Massive Passive Income Business

Episode Transcription

I’m going to start with a very famous quote by Mark Twain. This is probably the most overused quote when it comes to real estate by Mark Twain ever but it says, “Buy land. They’re not making any more of it, which leads me to my guest on this show. It’s a co-host here because this guy is so incredibly experienced and detailed with buying and selling land. He is averaging $41,000 in passive income from owning land. Not only that, he’s going to teach you on this blog how he turned $240,000 into $1.2 million in value, what he calls gross enterprise value. It is my pleasure, out of Colorado Springs, Colorado, to introduce onto the show, the Rhino Tribe, my friend, Brent Bowers. Brent, how are you?

It’s amazing to be with the number one coach in the world, Brent Daniels, Mr. TTP and I’m going to share everything I know about lands. I never would’ve thought that we’d be making $41,000 a month, on average. We go up sometimes, we go down sometimes but I just got to pinch myself and I’m excited.

I’ve been talking about this show on the YouTube channel. I’ve been talking about doing land deals for the last several years and I’ve seen you over the last several years explode your business, get focused in on this, refine your processes to the point where now, you’ve got this thing pretty much streamlined and it’s incredible to see the growth. It truly is and a lot of people sleep on land because it’s confusing to a lot of people, friends. A lot of people think, “What do you do with the land? You can’t rent it out. You’d have to find a developer for it. You have to find the right little niche buyers to be able to make any money off of this.” You’ve gone and completely flipped it on its head. You found a smooth process to making incredible passive income. You’ve wholesaled some awesome deals as well with vacant land.

I love the fact that so many people just walk right past the land or move right past that they’re going after those stinky, nasty, dirty cat pee houses and leaving all the land for me. Right down the road from our office, there’s all this vacant land and we sent a mailer out and these people couldn’t believe that we were interested in buying their lands because no one else was interested, sending offers, and calling these people on the phone. It’s almost like we have them. We’re the only ones talking to them. It’s like we have special deals. A lot of people have no clue how to make money with the land because there’s no house on it. There’s nothing to rent out.

I’ll sum it up easily. Here’s how we’re making money on it. We’re getting in at a massive discount and turning around and selling it at easy, affordable monthly payments and that’s opening up our buyer’s pool, huge. Our cash buyers that buy houses and apartment complexes, they’re interested. We open up another pool of people that don’t have tons of cash but they do have $200, $300, $400, $500 a month that they can purchase their dreamland with.

Let’s get into that because we know if you want to wholesale a vacant piece of land, property or contract, you match them up with a cash buyer, you make an assignment fee. That’s simple wholesaling. That’s what we do with houses and apartments. That’s what you can do with the land. I always encourage people, “What are your top lists right now of properties to go after?” What are your top lists, Brent? I tell them 1 of the top 3 is vacant land in town. There are differences, Brent. We’ve done about 100 land deals because I was inspired by you. We went hard at it. We did it. It was wonderfully profitable. It worked well in our business and we still continue to do it but we’re focusing more in town. Now there are three different types of land that we look at. Do you want to break down what those are?

I love breaking this down. Let’s talk about the ones in town first you’re talking about. This is powerful money. Quickly, you can get a lot of infill lots, is what I call them. Those are the in-town lots. Those are a lot we can build a house on or apartment complexes. Maybe it could be zoned for commercial or commercial buildings. You name it. These lots are all over the place and what’s cool. What’s funny is I come across a lot of house sellers that own the lot next door or they own some random lot down the street that they inherited or they’ve never stepped foot on and they’re willing to let it go at a massive discount. That’s the first type of land, infill lots. These are lots that you can fairly easily get electric and water ran to. A lot of times is that the lot line and you could build a house fairly quickly.

WI 605 | Land Investing

Land Investing: You can make a lot of money by owning land. You need to get in at a massive discount, then turn it around and sell it at easy, affordable monthly payments.

 

People that are interested in these are new builders. These guys want to build a spec home or developer and you’ve got them on your cash buyers list already. They’re amazingly easy to find, too. You can go down the street, see who’s building a new house and talk to these people. Sometimes it’s the neighbors that are interested in it and not to dive too deep in how to find the buyers but that’s the first type of land. Those are massive, huge amounts of profit you can make quickly, in a week sometimes.

The reason why they’re so profitable in my experience is they either want ten times the value of the land or they want next to nothing. I remember having an interview with Max Maxwell and his number one video was how he bought a piece of land in town for $250 or something and it blew up. This happens. Acody Hallfine bought a property for $3,000 and sold it for $97,000. This happens. You and I were talking before, Michael Ireland, unbelievable, TTP family member like you and I. He’s made $150,000 off of two lots or something.

2 out of 6 deals and this guy’s a silent killer. He disappeared and then he calls me right before Thanksgiving, “I got good news.”

The reason I bring this up is to let you know that there is a ton of potential in going after vacant land in town especially if you can get something that’s zoned commercial, it’s bananas. Brent, one of the things that we switched up in our script when we were going after land and seeing the opportunity because we were making $30,000, $40,000 assignment fees on vacant land in town because nobody’s going after it. One of the conversations that I switched my phone prospectors to was, “When they gave us a no, would you consider an offer on your property?” It was typically houses. They said, “No.” We would say, “We totally understand. Do you have any other properties, maybe even a piece of land that you would consider selling?” All of a sudden, that backdoor, we were getting deals from people telling us, “No.” They don’t want to sell their property but they got this vacant piece of land that they’re just paying property taxes on.

We get to know on the house because I also have a house buying division. I’m not as excited about that and we’ll talk about that. When he gets that hard no, he goes, “Do you have any other houses or land available?” Just like that, we got 150 parcels from one landowner. What’s cool about this is we couldn’t come to terms on price. However, we’ve agreed to partner up. He has opened up a few of his properties. We’ve already sold two of them and he keeps opening them up a few more at a time. What he’s going to do is put us on the deed with this land. We’re not acting as realtors. We’re not real estate agents. We’re acting as owners and we split the gross. I picked this checkup. It was a $10,000 check. I sent him $5,000. We kept 5,000 on a piece of land we never even owned.

What’s the second type of land?

The second type of land is agricultural land. This could be anywhere from, let’s say 22 plus acres. It could be up to 100, 200, 300 acres. I’m not generally buying a lot of agricultural land and I’ll tell you why. Most people that are farming, ranching or running cattle on this land, this is their livelihood. This is how they make money. They’re probably not going to give it away at a massively deep discounted price. However, if you come across those 40 acres of those 50 acres that’s not being farmed, not running cattle on it, send them an offer, send them a postcard. Generally, we only do a few deals every quarter in agriculture and then let’s talk about recreational. This is what I love the most. Why I like this the most is because it’s land in the middle of nowhere and no one cares about it.

Buy land. They’re not making any more of it.

However, I thought that no one cared about it but this whole COVID thing has helped exacerbate people’s demand for this recreational land. It’s land that’s 1 hour, 45 minutes out of the city. I like to say 30 minutes from McDonald’s and Walmart. This is land you can camp on, maybe build a cabin on, tiny house, ride dirt bikes and four-wheelers. This is stuff you can get at literally $0.10 on the dollar but it takes a little bit more work to sell it. You’ve got to put it out there. You’ve got to put it on Facebook, Craigslist, all the land sites and maybe call the neighbors, things like that. You got to work a little bit harder to sell it but it’s so easy to buy it. That’s where the majority of my monthly payments are coming in. I call it the bread-and-butter deals. Those are the three types of land.

I love this because this is a smart strategy. Find the lots in town, lock them up wholesale and get nice, big juicy fees. On the outskirts of town, while people are fleeing cities, people want to get away and not be trapped in their houses. They want to be in nature and have some land that they call their own. You can buy acres for $1,000, $2,000. We got two deals, Brent, where they literally signed it over to us for what was owed for the property taxes. They owed property taxes on their properties and they gave it to us for free for $5,000 and $8,000 on each one because they owed property taxes of $600. We paid that off and resold them and made great profits from them.

Literally, all you have to do is ask and see if people would consider an offer on their property and then get them as low as possible. One of the hurdles that people have with doing land is they don’t know what to offer and how to value land. On the Wholesale hotline we get this question all the time, in my DMs, on my YouTube videos that I talk about land, the question keeps coming up. How do I value land? How do you get comfortable valuing land?

The easiest way for me to answer that, I want to start with this, is don’t worry about being the expert. We don’t have to be the expert on what things are worth. I’ll talk about the first couple of parcels of land I sold. I called realtors. The first realtor doesn’t know, the second realtor does, and then Zillow. Zillow makes it so easy. You can go on Zillow and draw the little map in the area, draw that little map and then put in lots and land and you can see what’s available for sale currently and then you can press the solds and you can see what’s sold. It’s not always super accurate but you’re looking for a general basis of like, “I see that these 5 acres went for $5,000 or these 5 acres went for $10,000,” but let’s keep it easy numbers. If you see those five acres went for $5,000, it’s selling for about $1,000 an acre. Let’s offer $0.10 on the dollar. Let’s offer $100 dollars an acre.

Then number three, probably my favorite easiest, you don’t have to call anybody. I know you’re all about calling people. Let’s talk to the TTP audience, “Get on the phone with a realtor right now, call them.” We have a cold caller, by the way, that calls realtors only. It’s phenomenal. The third, my absolute favorite is the land sites, LandWatch.com, LandFlip.com, LandCentury.com. You can see what other people are selling these parcels of land for and take it from them. They’ve already done the work. Get the average. That’s it. We’re only looking at averages here.

Everybody’s probably wondering, “We get it. Land is good. That’s cool. I want to implement this into my business.” How do you get $41,000 a month in passive income from land? This sounds very strange. Do you rent land? Do you have to buy it and then rent it to somebody? Are you buying it and selling it to somebody? Break that down. How do you get to $41,000 a month average owning land?

It started with one piece and then turned into a second piece. A friend of mine is a partner on a couple of my land deals but he has a favorite saying that, “Sawdust shavings make piles. They add up. Before you know it, your whole entire garage is filled with these bags full of sawdust.” When I started this in 2016, I never would have ever dreamed we’d have $59,000 months or $50,000 months or some months that we call suckier, $20,000 months on just land payments. Here’s how it started. I was mailing the tax delinquent list and I was mailing it for houses at the time only and I was throwing away all the vacant land on the tax delinquent list.

WI 605 | Land Investing

Land Investing: Coming across agricultural land is hard. Most farmers aren’t going to give their land at a discounted price. It’s their livelihood.

 

I heard this guy on a podcast talking about buying all these tax deeds for land and I didn’t understand all that but I knew that I was getting rid of half of my tax delinquent list. I was like, “Let’s mail this postcard.” It was the handwritten tribe postcard. I mailed 671 parcels of land that were on the tax delinquent list and I must’ve received about a hundred phone calls, Brent. I kid you not. I didn’t get the chance to return all of them. That’s back when I was buying the land and the houses myself. I didn’t have a team established yet. I was just starting out but I bought two parcels of land from that one mailing and the first parcel for $285. I got it under contract. I met the guy. He was a CPA. He traded for this land several years ago. I’ve been paying the taxes, non-buildable lands.

My wife and I drove about an hour and a half to go see this land on a Saturday and it was beautiful. I figured out why it was non-buildable by calling a realtor and asking what I could blow this property out for in 30 days. I wanted to get my money back quickly. I’m embarrassed to say this, $285 was a lot of money back in 2016 for me. I was broke. I had my first baby. I called the realtor and she says, “We could probably list it on the MLS and get it sold for you in about 60 days for $10,000.” I was like, “Whoa, $10,000.” I hung up with her. I told my wife, Emily, I was like, “We’re going to do this deal. We’re going to buy it for $285 and sell it for $10,000. This woman’s going to list it.”

It was two vacant lots. It might’ve been a total of 12,000 square feet. It wasn’t even an acre of land. It was overlooking the Pikes National Forest. The reason why it wasn’t buildable is one ingress and egress. The firefighters cannot get in and get pinned down. They had to build a road across railroad tracks, a long story. The realtor calls me back in five minutes. I didn’t know she was calling me back. She was, “Would you mind if I purchased it?” I was like, “What are you offering?” She goes, “$5,000.” I was like, “When can you close on it?” It’s Saturday. She said, “I can close on Wednesday.” I was like, “This Wednesday in a couple of days?” She goes, “Yeah.” Me being the great negotiator I am, I said, “Let’s do it.”

I call the seller back. I meet him on Tuesday. He brings me a deed. I give him a $285 check and Wednesday, I get my $5,000. I didn’t believe this was a thing until we did the 2nd, 3rd, 4th and 5th and then we started holding the financing, building the buyers. We have two goals, get the digits, their email and their phone number to build a buyers list or sell the land. That was it. That was the first one. We kept repeating that process to where now we accept payments $400, $500 a month for this land. I try and get the down payment for my buyer to cover that $285. Brent Bowers isn’t broke for the next month because I spent my $300 cash, my discretionary income.

It’s only a few grand that you made but it’s a proof of concept. I talk about this. You cross that bridge of faith and belief that you can do something to where it’s a fact you earned income from doing it. Once that starts, it’s rinse and repeat, go, repeat. Pour gasoline on the process, clean up the process, make it more streamlined. Now you’re sending out offers. Are you sending out offers? Are you having people call you off of a, “I want to buy your land?”

We do both. We send an actual, I call it the LOL, the Land Offer Letter because when the seller gets it, they sometimes laugh and then when I get it signed and returned back to me, I laugh out loud. The guys don’t answer that. We send them a postcard as well. Postcard, super easy, not a lot of due diligence but you get a lot of phone calls. The LOL, it’s a sniper approach. They sign it and send it back. You hardly have to talk to anybody. We take the two-prong approach.

Brent, before, you go, “Brent, I want you to try out this offer letter, send it out to a bunch of people. See what happens.” All of a sudden, we start getting signed contracts mailed back to us. We would literally go at 10% of the assessed tax value. We would send out offers and they were just sending it back to us in the mail. Now, if that this land we’re closing on it, we’re wholesaling it, we’re flipping it, we’re doing all sorts of things. It’s a great way to start building up some income from the real estate if you’ve never done a deal before. Going after those vacant lots, it’s incredible.

Stop worrying about being the expert. You don’t have to be the expert on everything.

All of the good chemicals in my brain were exploding, seeing six contracts come in the mail and I’m like, “This is insane. This is bananas. What are we doing here?” We started turning those over and making money on them. It’s an incredible business. What you do to get that passive is you buy the land and then resell it and you’re the bank. Is that right?

You got it, 100%. We buy it at a massive discount, we turn around, sell it with a low down payment and a low monthly payment. We make it affordable for the mass. It’s like F-150, the number one selling truck in the world. I wouldn’t call it the best truck in the world but if you walk into Ford and you want to buy a truck, you’re going leave with a truck and monthly payment, the same thing with the land.

In the intro, I said you turn $240,000 into $1.2 million because you’ve got $240,000 invested into this raw land but you’ve got notes on it equal $1.2 million.

We purchased a little over $240,000 worth of land. Some of it’s with my money. Some of it’s with partner money because you might be thinking, “I don’t have $200,000.” Don’t worry. You get there slowly. Other people will see what you’re doing. They’ll see that you’re making a 300% return on investment and they will want to partner with you. I’ve had people beat down my door to partner with me on land deals or to loan me money at 5% interest. We purchased roughly $240,000 worth of land. We have not sold at all. I got a little crazy. I started buying everything I can get my hands on. I got a little cocky with it and I was like, “I could sell any land.” We have about 40 parcels left to sell.

Out of what we’ve sold so far, we’ve created a little over $1.2 million in the note. I call it growth. Let’s not talk about the actual crazy names, gross enterprise value but they’re notes, that’s all it is. It’s a promise for people to pay us roughly $1.2 million over the next 5, 6, 10 years, all combined. It’s been a pretty good return on investment and we still got more to sell. I’ll let you know what it turns into with all of his sold but we’re always buying too.

If anybody’s confused about what a note is, it’s a document that secures the debt that’s on a piece of a property. He’s got $1.2 million worth of notes from $240,000. He’s making $41,000 passive from the monthly payments. You’re selling this thing, you’re buying it at $1 and you’re selling this land at $5, essentially. If you talk to any financial person in the world and you tell them that you got a 500% return on anything, they’re going to tell you it’s fake, don’t listen to it, that that’s not happening. That’s what happens when you buy properties at a discount when you buy land at a discount and then let as owner financing. He’s owner financing these deals with $100 down, $200 down, probably more at some point and then getting those small monthly checks but it all adds up and adds up to $41,000. It’s crazy.

It’s like one we did. It took us a little while to sell it but it was perfect because it was right on the side of a highway. We purchased it for $800, put an actual sign up saying, “Land for sale.” We get calls all day long for our land for sale. Long story short, we bought it for $800. We got an $800 down payment and we sold it for $10,000 total. That’s almost 1,000% ROI and we continuously rinse and repeat. Once you do these a few times, it’s like, “Let’s get a team, someone to buy this stuff, someone to sell it.” You oversee it. How we were able to get that much passive is because of a team. I can’t say that it was all my efforts. It was other people helping me.

WI 605 | Land Investing

Land Investing: Work consistently and slowly. When other people see what you’re doing and that you make a 300% return on investment, they will want to partner with you.

 

Are you going specifically at pieces of property that are tax default and tax-delinquent?

When we go into a new county, we start with that.

Where do you get that data?

You can get that from your county treasurer’s office. I say, “Pick your playground. I started in my own backyard.” I call the county treasurer, “Where’s the list? How do I get ahold of the list of the people that are behind on their property taxes?” They told me that doesn’t exist. I was like, “How do you track who’s not paying their property taxes?” “That’s Mary.” I talked to Mary, she gives me the list. We mail it. Sometimes it’s just a small list. You have to pull on PropStream the entire county lists, the vacant land list and that’s where it’s like, “Let’s keep those mailers go in every single day,” and then you get those trickle-signed letters back whether fax or email.

The beautiful thing with PropStream, TTPData.com, check it out, is you can filter it with the ones that have liens, vacant properties that have liens. Now you’re pulling the list and going after people that have signs of distress and they own these properties. That’s a tip there that I hope you take advantage of because nobody goes after it, Brent. Literally, nobody goes after that rural land. Not many people go after the stuff that’s in town. It’s bananas. I don’t understand why they don’t but hopefully, reading this, they’ll be inspired to do so. The beautiful thing is, finally, after a long amount of pushing you towards it, we’ve got you now as a Wholesaling Inc. coach, coaching land.

I am Wholesaling Inc.’s official land coach.

They’re feeling it in their gut that this makes a lot of sense. How do people find you? How do they get more information? How did they see if it’s the right fit for them? How do they do that?

Gross enterprise values are just notes. That’s all it is.

If this is something you’re thinking about or have some questions about, go to WholesalingInc.com/land. Book the call. Me or one of the team members will talk to you to see if it’s a good fit, see your strategies if there’s something we can help you with. I’ll be honored to coach you up on this and teach other people how to do this.

This works for everybody. This works for people that have established wholesaling businesses that want an edge in their market and add extra revenue every single month. This is great for people starting out that they want to get their first deals through the process. They want to understand steps one through whatever, from getting a contract to getting paid on it. This is a great way to learn the business because once you learn it, you’re off and running. Now you’ve got the opportunity, that confidence and certainty that you can make money in real estate, which is what this blog is all about. We are thrilled to have Brent. It’s going to be incredible. He cuts right through it and gives instruction. This is not education. He’s going to show you how to get deals through going after vacant land. It’s about time.

It’s been a long time.

I’m excited for you to get going and for everybody to reach out that’s interested in this. As we close out this blog, will you give me a couple of things that people should be aware of? Some of the bigger mistakes that people make when it comes to going after vacant land and then wrap it up.

I’m going to talk to you about some of the mistakes I’ve made because I can only teach and tell you what I know. After I did it about 6, 7 or 8 land deals and I was making money so quickly, I started thinking like, “There’s no piece of land that I can’t make money on.” I would see the assessed value. I started purchasing land. I did two in a row without going and looking at it, without looking at Google Earth, without doing my due diligence. Is this land buildable? Did the seller buy it on a treasurer’s deed? Is the title clouded for the next nine years? Is there a huge gaping hole and no one could even build because it’s on the side of the mountain?

I purchased a couple of these properties sight unseen. I was sent cash. I got the deed back. I didn’t do due diligence and title work. I didn’t check with the county and see if it’s buildable. Now I have those systems in place where no matter what, that is done before we write a check. Long story short, I didn’t lose money on any of those parcels of land but you better believe I had to make some nice seller financing terms for my buyer. They knew I disclosed everything. I got ripped off. There are some sellers out there that they want to get rid of their problems. Do your due diligence, do the title checks, do your title work and slow down.

Land, I’ve been talking about it for several years. It’s finally formalized under the Wholesaling Inc banner and it’s going to be incredible. WholesalingInc.com/land, check it out. Brent Bowers is going to blow your business. It’s going to take off like crazy. Brent, thank you for being on the show. I’m so excited for you to contribute more and talk about land and get loud about this because it is something that is going to benefit a lot of people. I’m excited that we’re finally here, where you announced that you are coaching your land program for people to get not only passive income but also get income from wholesale deals and start building up their business with a strong foundation. Brent, thank you for being on the show. Everybody out there reading, I will sign off like I always do by encouraging you to talk to people. Until next time. I love you. I’ll see you next time.

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About Brent Daniels

Brent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…

Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!

Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…

A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

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