Brent prefers to buy properties with massive discounts and sell them at easy financing, without credit and background check, to someone who comes to him with a downpayment, giving them affordable monthly payments in return for the land of their dreams. He found those properties through a close-out sale with Paul, whom he met in a Facebook group at a massive discount of $1K, expecting a gross enterprise value of $33K from multiple land deals!
In this episode, Brent breaks down the close-out sale deal with four properties he and his team made with Paul, a wholesaler he met in a Facebook group. He will also talk about the strategies, concepts, and terms that help in doing multiple massive deals beneficial to you as an investor.
Learn another way to level up your wholesaling business through lands from Brent himself. Turn the volume up and listen to this episode.
- A deal he made with Paul on a Facebook group
- Four amazing properties he bought
- His projections from selling the lots
- What gross enterprise value means
- The benefit of doing multiple land deals
- The Warren Buffet strategy that he follows
- On getting his lands on a silver platter from Paul
- What a warranty deed means
- On having no competition on lands
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Hello, Rhino Nation. Today, I’m your host, Brent Bowers. And I just wanted to finish out the week and kind of just give you a success that we got on our team this week. So I’m part of several Facebook groups where there’s other land investors. Yes, there are other land investors out there. It is a niche inside of a niche, but it’s a very small world, but there’s some great people out there. I wanted to kind of explain the deal that I just did, what me and my team just did, and I came across a friend of mine and my friend’s name is Paul, and I actually purchased four lots from him. So Paul is a wholesaler, he’s a land wholesaler. I don’t think he does a lot of buying and holding and seller financing like I prefer to do. I prefer to buy the property super cheap, massive discount, and turn around and sell it at easy financing, no credit, no background checks, to where someone could come to me with a down payment and then I can give them affordable monthly payments, and then they have the land of their dreams.
So I came across Paul in a Facebook group that we’re both a part of, and I noticed that he had a wholesale list. So I look at his list and I asked him how much for everything that he had left. And it was only four parcels left on 14. So I was kind of the closeout sale. He was probably ready to be done answering all these questions, but this guy had four amazing properties. Two of them were in Colorado and two of them were in Arizona. Two of the most wonderful states that I absolutely love investing in. My number one is Colorado, obviously, because I live here. And number two is Arizona because there’s always going to be great demand for Arizona land because it’s warm. And what do we have a lot of in the United States, is people getting old looking for warm places to retire.
So I asked him, “How much for all of them?” I think he was looking for almost a little over 9,900. He ended up giving me all four for $8,800. He gave me a heck of a discount, roughly $1,000 discount just because I was taking everything off of his plate. Well, let’s fast forward about six days. We’ve already got two of those Colorado lots sold and we are projected to make a gross enterprise value of $33,305 when we sell all four parcels of those land. What does gross enterprise value mean? Basically, it means we are creating an enterprise value of $33,000. And that the $33,000 will be paid to us over the next several years in monthly payments. So, guys, here’s what I want to get through to you, it’s not about doing just one land deal, it’s about doing multiple land deals.
And as you can tell, I just bought four parcels of land for $8,800. One of those is 10 acres, one of those is two and a half acres, and the other two in Arizona are just small lots. One’s really close to a golf course, and one is in the absolute middle of nowhere. So we’re taking four lots at an average of $2,000 a piece and turning around and selling these four lots at what is that, 33,000? I’m going to pull out my calculator. What is 33,000, one, two, three divided by four. We’re buying them at 2000 a piece and turning around and selling them for $8,200 a piece. So if you break this down, this is a 377% return on investment. Warren Buffet has a thing where if he spends a dollar, he wants to make $3 back.
So it’s roughly a 300% return. So we’re following Warren Buffett’s strategy. This is not Brent’s strategy. I have not created anything here, I’m just following a strategy and taking $1 and turning it into $3,77. So that’s a very simple way to look at it, but my favorite way to buy land is mailing land owners. However, there are people that have already mailed the land owners like Paul, and then has already done the due diligence. And he’s already paid for the title reports. And he’s already got the pictures and the videos. This package, here’s the number one bonus, came with pictures and video, and title reports, and due diligence. And, oh, by the way, Paul is taking his time to write up the warranty deeds. He’s transferring these to me via warranty deed. So what a warranty deed means is he is warranting this thing that there are no liens or encumbrances since the beginning of time.
And if there were, they’re already taken care of. And if something were to come up, Paul would have to warranty this stuff. So he is not only giving me pictures and video, due diligence reports, and title reports, he’s also taking his time and money to file the deeds for me. So these things will be in my name in the next few days. So, guys, you don’t just have to mail people, there’s people out there that hand you this land on a silver platter and you can turn around and sell it before it’s even in your name. If you notice at the beginning of this podcast, I said, “We’ve already sold two of those parcels of land.” Helen, my land sell specialist, has been waiting for me to get more property. So when she saw these, she was pretty happy. So, guys, I just wanted to share the huge success with this.
We’re doing this all the time. Everybody is looking right past the land. They’re just running towards these stinky cat pee houses, these apartment complexes, these mobile homes, but everyone is forgetting about the land. Land is where it’s at. It all starts with land and for every single land investor, there’s probably 15 other house investors. So there’s virtually no competition. So Brent Bowers, I hope you were able to get some value out of this. Thanks so much 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. That’s wholesalingI-N-C.com/land. And schedule a call with me and we’ll hop on a short call together and we’ll discuss your real estate investing goals. If it sounds like we’re a good fit together, I’d be honored to help you in your land investing journey. I’ll see you next time, landsharks.