Posted on: April 23, 2021
WI 673 | Buying Land

 

Being stuck in a 9 to 5 job decreases the possibility of finding opportunities to earn big and finally enjoy more time living rather than working. Our guest for today left the corporate setup in exchange for better opportunities in real estate – specifically in buying land. Brian Hemmerle walked down the land journey with Brent Bowers, opening opportunities for him to build passive income. He just got his first deal through it. In this episode, Brian shares his deals and the process he underwent. He also talks about his strategies in building passive income, his passive income goals, and his experience in finding a rockstar VA. If you want to learn how Brian made it in doing his wholesaling business fulltime, then this episode is for you.

The Incredible Strategy One Tribe Member Used to Buy a Piece of Land for $500

Being stuck in a 9 to 5 job decreases the possibility of finding opportunities to earn big to finally enjoy more time living life than working all your life. Our guest for today is a stud who worked hard and left the corporate setup in exchange for better opportunities in real estate wholesaling.

Episode Transcription

I’ve got a stud, Brian, on with me. He is out of Kentucky. This guy just left his 9:00 to 5:00 and he also walked down the land journey with me. He’s already done his first deal. Brian, introduce yourself. How are you?

I’m doing awesome. Thanks for having me on the show. I appreciate you asking me to hop on and share some of the successes I’ve had on the land side.

It’s my absolute pleasure. How long would you say from beginning to end that it took you to do your first deal?

It was within the first few mailers. I sent out the first batch was 240. With that, I received my first signed purchase agreement back from the tax delinquent list that you teach people how to find for land.

You sent out 240 mailers and did a deal?

Yeah, 240 purchase agreement letters that you teach.

How did that deal come in? How did you know you had a deal? Did they call you? Did they return the purchase agreement? Did they fax it? How did that come through?

They signed the purchase agreement and sent it in the mail to me. I have a UPS box for my house business for the address, and I just went to go pick up the mail one day and all of a sudden, this purchase agreement showed up in the mail. As a matter of fact, I couldn’t read the guy’s phone number. I didn’t know. I had to search him down and he tried to call them and talk to him about the land.

What did you do from that point? Did you talk to him? Did you start pre-selling the land? Did you just straight buy it because you knew it was a good deal? How did you go about that process?

WI 673 | Buying Land

Buying Land: Always focus on building passive income every single day.

 

The original purchase agreement, it was for $2,600, maybe a little bit more than that. Once I had the agreement, I started pre-selling it through Facebook Marketplace and other avenues. I come to find out once we did the title search on it, there were a lot of liens on it. I did go back and have to renegotiate with the seller. I dropped the price. I was able to get the price from $2,600 plus down to $500. At the end of the day, there was roughly about $8,800, maybe a little bit more and back taxes out.

Was this guy out of state or didn’t want the land? How in the world can you buy a piece of land for $500?

He lives closer to Tennessee. He had owned it for years and he had plans at one point to build on it, but that never came to fruition. He tried to sell it a lot of times to different people and a lot of people just didn’t want it. We renegotiated down to $500. I said, “I’ll see what I can do.” I ended up selling it to a flipper who’s now on my house buying list to buy deals from me. I ended up selling for $13,750. The actual profit was $4,098.

$1,098 off of 240 mailers?

I need to get better track of my numbers, but it wasn’t more than $100, $150 of mailers.

I’m just doing some quick math. You made $4,098. You made about $16.50 for every mailer you sent out.

The response rate was good. You consider one purchase agreement off of 240 purchase agreement letters, that’s pretty impressive.

A little less than about 0.5%. One thing you mentioned there was you were pre-marketing on Facebook. What do you mean by pre-marketing on Facebook?

Anytime you have a contract, all contracts at least in Kentucky, obviously, talk to your attorney, but they’re all assignable contracts. I can market that particular contract to see if anybody’s interested in purchasing it from me. I was able to go on and post the information. It was an acre lot on a street near a lake.

A big part of the wholesaling business is understanding someone’s situation and putting a solution in place that works for them.

It had some characteristics that people were interested in. I got a lot of backlashes when I posted it. I reached out to you. I was shocked. They’re all like, “You’re pricing it way too high.” Out of the blue, I got a message from a guy who builds houses. He owns a roof company. He flipped houses. He was interested in the land. He’s going to build a house on it. The other thing, Craigslist, there are other places you can go and post on, but the lead came from Facebook Marketplace.

We get that lash back, too, and luckily my virtual assistant runs my Facebook stuff and answers all those nasty questions or those nasty remarks. I call those Facebook trolls. It’s not that you’re asking too much. It’s just they don’t have the money most of the time. People that are going to beat you up on Facebook, I have found have never ever been my buyers. Those nasty people don’t buy from me 99.9% of the time. We don’t deal with those guys anyways. That’s so funny. You had mentioned that it’s near a lake, it’s a desirable area. You paid $500. You added them to your buyer’s list. How long did it take you to find this builder to buy this lot after you started marketing it?

I believe as soon as I started marketing was probably within the first few days. We’d negotiate it for a little bit back and forth. I’d probably put a contract in place probably within the week.

Do I understand correctly that you assigned this contract? You never took ownership of this property?

Correct. I signed my interests in the contract to the enviro.

That’s brilliant, because by doing that, you don’t have to worry about the fees on your end. It’s just one closing cost, one title fee, everything’s taken care of. Let’s talk about the seller. Did you improve this person’s life? Why would they get rid of something for $500? Was there a desperate need or were you getting this burden off of his shoulders?

I never met him in person. He lived in a city called Monticello, Kentucky, which is close to Tennessee. It’s probably four hours from me. He’d probably try to sell it in the past before for nothing. Obviously, he knew that there were a lot of tax delinquencies on it. At the end of the day, the big part of this business is being able to solve somebody’s problem, understand their situation, and put a solution in place that works for them.

He was happy to get $500 and to let this property go, and that’s where we come in is have the ability to either buy it myself and market that contract to an enviro. I called them not too long ago and say, “Double check and make sure you got your check,” and he was happy as can be. He thanked me and I said, “We appreciate it and we are glad we can get this done for you and take this burden off of you.”

I love that you called and followed up with him. We’re going to implement that in our business as well. One thing that we found that when we call back like a month or so later, “I wanted to make sure you received your $500, make sure everything was good. Was there anything we could have done better?” We are getting a critique of our company. They’re telling us if we could have done anything better, but a lot of times, they have a friend that owns another piece of land right down the street or the neighbor. It’s amazing when you call them to check-in, now you’re a trusted friend and they’re like, “Jimbo down the street also has a lot for sale. You should call him. Here’s his number.”

WI 673 | Buying Land

Buying Land: If you’re always getting one more thing off your plate, eventually there will be nothing else on your plate.

 

We’ve gotten referrals that way. That’s incredible. It sounds to me, everybody won. The buyer won, the seller won, you won, keep rinsing and repeating. Imagine getting the next one at $500 and selling it for $13,000 with no liens and back taxes. This is only a small percentage of the land that I deal in. Not all of them have problems. It seemed like my first several had problems like your house business. Your first couple of house deals probably had major issues. It’s part of that ramp up process like the Lord saying, “Do you want this?” You get through all these problems and it’s smooth sailing for a while.

I like to call people back and make sure that they were taken care of, that they were happy. Always leave, “If you have a friend or family, or if you know of anybody, we also buy houses and land. If I can ever help out anybody that you know, please stay in touch with me.” I want to make sure that his problem is solved and he was happy. The house business is awesome and I’m still in the process of ramping it up and I’m learning a lot.

I’m learning on the go for both sides. What’s attractive about the land pieces, and hopefully, you’ll have me back on when I do my first seller finance deal, but it’s attractive. You can find deals. What I love to do is find deals then you go and sell them on terms, and that’s where you can build up that passive cashflow. That’s something I’ve learned from you, and I’m excited to grow that piece of the business and add it’s another marketing arm to help grow both businesses.

I want to shout it from the rooftop. We hardly ever sell land for cash anymore. Granted from time to time, someone will offer us a good chunk of money and it’ll fit our criteria. As long as it’s over 300% ROI, we’ll take the cash all day long because it’s about velocity of money and we can put that into another piece of property, but we always focus on building our passive every single day.

My retired land sales specialist, she works on probably even less of a part-time basis. She’s in Ohio right now, and she came back from Vegas, but she’s added almost $3,800 to our passive income per month. She’s added $3,800 extra a month to our passive income, selling these onesy, twosy, threesy lots for $299 a month, $399 a month. It adds up. Salt dust shavings make huge piles.

Since I started the training with you, you’ve been very accessible to answer any questions if I’ve got any concerns or issues. Working with you has been a blessing and I appreciate it. I appreciate your friendship and hopefully, we’ll continue to learn from you and help grow this business to a large one.

I’m going to see you in Arizona. We’re going to be on a boat, talking about scaling our businesses for 3 or 4 days. That’s going to be incredible. My last question, you talked about passive income. That’s bringing this question up for me, what’s your passive income goal per month?

We initially discussed this. I said $10,000 initially, but I need to bump that to $25,000, maybe even more. I got to put in the effort, put in the work. Something I struggle with is I need to be able to put a team in place to help me do this. That’s something I’m going to hopefully learn from you and continue to grow from that aspect.

You read my mind. I could not have done this without my team. I can’t take credit for any of this. If it wasn’t for my team, and a lot of my team is in India and the Philippines. I’m not paying them $35, $45 an hour. I’m paying an affordable salary and they are growing my business. That’s serving me every single day.

I did the first 5 or 6 or 10 land sales all by myself, and that was work getting it off the ground, but what was cool about that is I now had the confidence to train someone with say Screencast-O-Matic and I do a quick video and now they know how to do that process. That’s all I did every day. I got one more thing off my plate. We talked about this, but if you’re always getting one more thing off your plate, eventually there’s nothing else on your plate and you enjoy life on your terms.

That’s where I need to go to truly grow this business. I have a rockstar virtual assistant now. I like to implement and find somebody who I can teach and train, but the Screencast-O-Matic is awesome. Thanks to you. You tell me about that. I use that all the time for trainings. It’s awesome. I’m excited about the future. I’m excited about this Mastermind session we have coming up here.

I promise this is the last question this time. You said you have a rockstar VA. I guarantee you all of our readers either have one or they want one or they don’t know how to get one. How in the world did you find the rockstar Virtual Assistant? That’s what I mean when I say VA.

I don’t know if you know Bob Antoni, do you know Bob?

I sure do. I love Bob.

He didn’t end up hiring this guy, but he said there was something about his humility and his loyalty and he just didn’t fit the criteria that he was looking for the job description, so he referred me. I interviewed him and he’s been with me ever since I left my full-time job on June 12th, 2020. He scrapes everything for me. He helps with my CRM. He does a lot of tasks that helped me focus on sales aspect, the seller shot.

I find a good VA and I treat them like family and the most loyal, dedicated, hardworking people I’ve ever met. It’s been a great journey. Thank you so much, Brian, for joining me. If you’re interested in getting started on your way to generating passive income through land, head over to WholesalingInc.com/Land and schedule a call. My team will hop on a short call to discuss your real estate investing goals. If it sounds like we’re a good fit together, I’d be honored to help you on your land investing journey. I’ll see you next time, Land Sharks.

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About Brent Bowers

Brent Bowers is an investor and coach with a focus on buying and selling vacant land. As an Army Officer with over 8 years of service, Brent was spending a great deal of time away from his family, and he knew he needed to make some changes in order to be more present with his wife and children. In a short period of time, Brent was able to expand his business, hire a team, and (most importantly) spend quality time with his family while still working hard and helping others.

While Brent invests in many different types of real estate, his favorite investment strategy deals with buying and selling vacant land, and he enjoys sharing his expertise in this area with his coaching clients.  Brent chooses to live his life based on Bob Burg’s quote, “Your influence is determined by how abundantly you place other people’s interests first.”  He is passionate about helping other people find success in real estate investing, particularly in land investments.

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