Posted on: September 15, 2021
WI 776 | Land Investing

 

When it comes to real estate, there are numerous ways to invest. Investing in land is a popular way to go, and wholesaling land can be as profitable as flipping a house. Andre Baughan, our guest today, is a cybersecurity salesman from Arizona who wholesales land on the side. He has closed 3 deals in just 3 months of land investing, and the best part is that he only works about 4 hours per week.

In this episode, Andre will tell us about a house and land deal he closed within 45 days that netted him $17,500 in profit. He will also discuss how he got into land investing and the low-cost marketing channel he uses to generate leads.

WIP 776: A Land Investing Newbie’s Journey To $20k Per Month In Passive Income With Andre Baughan

Episode Transcription

Welcome to another great episode. I’ve got a pure rockstar go-giver on with me. He’s already done several deals in a very short amount of time. These are land deals. Andre Baughan. How are you?

I’m doing good. Thanks for having me on.

Whereabouts are you in the country?

I moved from Wilmington, North Carolina, over to Phoenix, Arizona, the hub of wholesaling.

You’re out there with the big dog, Brent Daniels. Have you gone by his office and met him yet?

Not yet. I should drop by.

He’s out there crushing things. Good to know. What brought on the move from almost one end of the country to the other, the land of moisture and humidity to the dry, barren desert of Arizona?

I got married when I was in college at BYU. After we graduated, I’m from North Carolina so we moved to North Carolina by the beach in Wilmington. We moved in the middle of COVID. It was hard to meet people and my wife’s from Phoenix, from Gilbert. She knew more people over here so that’s why we packed up and headed out West.

What are you doing now for work?

I’m a W-2 employee now, full-time. I do cybersecurity sales. I sell cybersecurity packages that huge companies full-time and, on the side, I wholesale land.

Any experience in real estate, any real estate licenses, education or certifications or anything like that?

When I was at BYU, I went to one of those seminars from the dudes on Shark Tank. They were like, “We’re coming to your city.” I was like, “This is awesome. I’m going to see Robert from Shark Tank.” I went to the seminar and he didn’t show up. The sales reps were there to sell us a course but that’s what introduced me to real estate. I was like, “That’s cool.”

My Facebook starts showing me a bunch of ads for wholesaling. I eventually bought a $600 course in 2019 and the course didn’t help that much but at least it exposed me to be more of what wholesaling was. I was in Provo, Utah. Word got around, Cody was up in Salt Lake and that’s how I heard about Wholesaling, Inc. After I heard about it, I pulled out some credit cards invested in Tom Krol’s OG Direct Mail course. That’s the only exposure I have had since 2019.

Have you made any household sales at all?

Not a lot. When I invested in this course, I didn’t have enough money for direct mail because I pulled out credit cards to get the course. What I ended up doing was driving for dollars and cold calling in Utah. It took me about five months to get my first house deal. I profited about $5,000. It was good, so I knew it worked but I was in debt and I had to get out. After that happened, I went out and got a sales job to get out from underneath the water and take care of my family and 2021 came. I heard Brent Daniels and Brent Bowers on this show talking about land. I was like, “This is it.”

You know what I love about you Andre is you keep moving forward. You’re putting the puzzle pieces together. Do you have any children? You’re married. Any kids on the way? I saw you have a beautiful dog on your Facebook page.

Only the dog. No children yet. It’s me, my wife and our dog.

Texting is way cheaper than direct mail. It costs $0.14 to get the number and $0.04 to send a text.

I wanted to get a little bit of background about you. Let’s start talking about the massive success that I’m seeing you have in lands. You’re messaging me all the time. You pump me up, motivate me when I see the wins. I love seeing the wins. You hardly ever asked me any questions. It’s like, “I got another one. I did another one.” You got a $23,000 assignment fee coming. I’m like, “I got to get Andre on the show.” I feel like your story is going to help so many people.

You look super young. No offense, by the way. Embrace that. Imagine where you’re going to be when you’re 35. Let’s talk about what you’re doing. I know you prefer the text message method. I assume because of less money and texting land seller or landowners, I should say. Not even sellers. Tell me about some deals. Let’s break the deals down.

When I heard the podcast with you and Brent, a few weeks later, you came out with Tracy Krol. You were interviewing her doing the Do or Die series. I followed step-by-step what you were telling her to do, except I did texting instead of direct mail.

Why did you do text? What was the reason behind that?

Budget. I did texting with houses. That’s how I ended up getting my first deal in 2019 when texting wasn’t super big back then. I was like, “I’m familiar with it. I’m going to start with this.” I’ll have some money to invest.

How much does it cost us in the text? It’s usually nothing.

It’s like $0.14 to get the number and $0.04 to send a text so it’s $0.18 to reach someone.

That’s phenomenally cheap. That’s probably more than what it would burn as far as calories if I door knock. Eat a bunch of food to burn all those calories. That’s not too bad. If you talk to 100 people, that’s $14.

There are pros and cons to it because when you text people, you get a bunch of responses and a lot of them are tire kickers. A lot of them are like, “F-you. Get out.” You then get one that says, “I want $12,000.” That’s the one you focus on. You call them and work it. There’s a downside to texting. It’s time-consuming. You’ve got to sift through a lot of people but it’s cheap. Until you can get some deals to start using direct mail, it’s a good way to go.

I love your attitude too because you’re always going to get the F-you’s. You’re always going to find those people that are unhappy. I got a text about a house I own saying, “I’m three years behind on taxes.” It scared me. It made me a little nervous but I texted back. I’m like, “Thank you so much. I’m not selling, though.” I don’t get why these people walk around so angry but you focus on positive things, the one that does want to sell. That’s a lesson right there in life. You focus on the good things, on what’s going to work because we too often, focus on the negative things. All those hateful messages and we dwell on it then we don’t focus on that one person that does want to sell that needs our assistance and our services.

It’s a numbers game. If you don’t look at it like that, if you get emotional in it then you get crushed. You can’t have your emotions in this business.

Leave your emotions outside while you’re texting. Walk me through a couple of them. I know you’ve got a handful of them and that’s the last update I got. You might even have more than that. Walk me through the first one. Is that or did you have another one in mind that you wanted to talk about? I know you have a couple.

We can do one. First of all, I picked my playground, as you said. I picked Asheville, North Carolina. I marketed there. There weren’t enough buyers or I couldn’t get anything to move. I learned from that, picked up and went to a new market. I went right outside of Charlotte, North Carolina and started marketing there. I pulled a list off PropStream. I skip traced all the numbers and started texting them out. One lady finally replied and she was like, “Yes, $12,000 for my land.” That’s all she said.

WI 776 | Land Investing

Land Investing: When getting into land, you got to have a good buyer’s list in your area before you start marketing, not only because they’ll buy it, but they’ll help you learn the value of these parcels.

 

Did you use LandSharksList.com to get the discount and all that on properties?

Yes. Once she said $12,000, as soon as they give me any number or any interest, I call them. I get them on the phone and make sure they’re serious. I called her and she was like, “We’ve had this piece of land for 30 years. My husband and I are trying to downsize and liquidate and move in the country. By the way, I’ll sell this rental house that is pretty bad.” It was a twofer. Also, this rental house was in pretty bad condition. My mind was like, “Houses.” If it’s a good deal, I’ll look at it still even though I’m focusing on land. What ended up happening was, she was asking $12,000 for the land. It wasn’t a deal at $12,000 but I continued to build rapport with her over the next few days. I talked to her about her house and her situation. I ended up getting the land under contract for $7,000.

Less than what she wanted. You used the negotiation strategy with her.

It was about half of what she wanted. She had a tenant in her rental house but she needed to give the tenant money to move out into a new place. She couldn’t sell the house until the tenant was out. That’s how we structured the deal. I was like, “Why don’t we buy your land? You can use that money to get the tenant and we’ll forward you, buy the rental for an extra $2,000 or whatever.” What we did was we bought the land for $7,000, found a buyer for $12,000. Right there, we made $5,000 on the land. Brent, it took literally one week to wholesale that land, which is insane how fast you can flip this land.

Everyone gets faster because you build a buyers list from every single one you do. It compounds on itself.

We got the house under contract. She was asking $70,000. I didn’t know if it was a deal. I had a buddy down there doing wholesale deals. I think they’re called Solution Home Buyers. I’ll give him a plug. Thanks, Jordan. He’s in the tribe as well, on this show. I called him up and I was like, “Jordan, you think this is a deal at $60,000? I negotiated this house down at $60,000.” He was like, “Lock that thing up ASAP.”

Real estate is a numbers game. You can’t have emotions in this business or you’ll get crushed.

I tried calling her back and she didn’t answer for like three days. I was like, “Dang it. I lost a land deal and the house deal. I lost the twofer,” but she ended up calling back. We got under its contract for $60,000. I went ahead and JV-ed this deal with Jordan since I’m in Phoenix and the deal was in Charlotte. I didn’t have any boots on the ground yet. This is like my second deal since marketing to Charlotte. Long story short, they brought the buyers then wound up selling it for $85,000. It was a $25,000 profit and split down the middle.

$12,500 in your pocket.

Plus, the $5,000 from the land deal from the same seller.

$17,500 on one twofer. How many text messages did you have to send out to get that bad boy?

Not too many. I think about 1,000.

At $0.14 apiece, was that $140?

The return was I put $1 in and got $22 back on my investment. It was insane.

I would do that all day long and three times on Sunday. I want to break that down a little bit. You’re very resourceful. You went to LandSharksList.com. That’s how you got your list. You can go and get a skip trace. Some people might not understand what skip tracing is. Andre took the data that he got from LandSharksList.com. He pulled up data in Charlotte, lands owners in North Carolina. Once he got the data, he took it over and used my affiliate code.

I love BatchLeads.io/TLS. If you use that link, they will give you a lot of free records in the very beginning. You can get started for next to nothing with this. $0.14 a text message. I love mail. I love sending Land Offer Letters or LOLs because it’s super passive. I don’t have to answer the phone. They come signed in the mail, fax or email and we get to them. Andre is being very offensive like very proactive texting. That’s a super-fast way to get deals. From start to finish, sending that text to getting paid, what did you get paid again in total on this one?

The total was $17,500.

From that very first text to getting that $17,500 in your account, how long would you say that took you?

Probably about a month and a half.

Forty-five days to make an extra additional $17,500 at 25 years old with no kids. I’m very envious now. Keep moving. By the way, here’s our grand finale. You used Jordan with Solution Home Buyers, another tribe member. Who else better to reach out to you than another rhino tribe member? That’s very resourceful.

I wouldn’t have locked up that house under contract unless I reached out to him because I didn’t think it was a deal. It’s super important to squad up with people.

He knew that market. That’s confidence. I tell people all the time. I studied the successful students, the ones that are knocking it out of the park and 9 out of 10 of them are doing deals within about a two-hour radius of where they currently live or an area they’re familiar with. Let’s say they’re stationed in Korea. I’ve got a lot of people in the military or in Alaska that have to go to where they previously were like you did. You team up or squad up with someone like Jordan that’s familiar with that area and with this business. Kudos to you.

WI 776 | Land Investing

Land Investing: There are pros and cons to texting. Sometimes you get a bunch of responses; a lot of them are tire kickers. You’ve got to sift through many people, but it’s cheap and a good way to start.

 

I think something important too to note is, I wouldn’t have reached that seller by texting a house list. Maybe I would but I found her through texting land. I went in through the back door when other people were. She was probably getting other postcards and stuff for houses but I was like, “Are you selling your land?” She was like, “No one’s asked me about my land.” That has opened the world to more opportunities.

I can tell you on two hands how many times that’s happened to me. We are mailing for the land. We’ve been getting postcards like crazy on these houses that we own. We don’t want to sell any of those houses but I do want to sell the land. Guess what happens? They like doing the transaction. They like us or whatever it is or they have another property that came available. Maybe their fathers or their mothers had passed away or somebody and one thing led to another and we get twofers all the time.

It’s an amazing thing when they’re receiving letters all the time. A lot of these people own portfolios of real estate and they’ll sell us this one-off piece of land they haven’t done anything with. They never made that connection of all the texts, emails, phone calls, cold calls and postcards they get to sell them their land because no one ever asked about the land. It’s a shoo-in and everyone probably reading this episode now that buys houses are going to start sending mail to the landowners. They are going to use your trick, Andre.

I’m telling you what, the more collaboration I find, the more deals come. The more people I help, the more deals we get. I’ve got people across the country sending me deals. I can’t even keep up with them. One thing turns into another. I’m sure someone will contact you about a deal in Phoenix if they come across the house in Phoenix and they’re sitting in North Carolina.

I think something else that I’ve been learning too with the land that’s a little bit different than houses is you got to have a good buyer’s list or you at least have to know some pretty solid buyers in your area before you start marketing, in my opinion. Not only because they’ll buy it but they’ll help you learn the value of these parcels. When I started marketing to Charlotte, I didn’t know the value of these land deals at all. The way I learned was by locking stuff up, sending it to my buyers, calling them and they would literally educate me on why it was a dealer or wasn’t a deal. It’s a little bit different than houses. Maybe your buyer pool isn’t as big as a single-family residence but there are definitely a bunch of land buyers out there.

They’re kind. You ask them, “What would you pay for this parcel?” When I go into a new area, “Who do you think I figure out what the stuff’s worth? Who do you think I call to figure out what the stuff’s worth?” It’s the people that are buying the land right in that area. I say, “I got this parcel under contract. Would you be anywhere around this number?” They are either going to tell me, “No way,” or “That’d be a deal.” We know where to go from there because who else to judge but the people that got the money to buy it. The same thing when we buy a piece of recreational land or land in the middle of nowhere. I look at the stuff that’s selling. I look at what’s available out there for sale and I get it for way lower. It’s that simple.

When doing deals, it’s super important to squad up with people from your tribe.

Buyers are super important on my end with figuring out value. I know that’s something a lot of people are worried about, like, “How do I value this on my end? How do I know what it’s worth?” You can get a good idea on Zillow or LandWatch on those websites but if you’re still unsure, call a buyer. Post something on Facebook, call whoever replies to it and ask the questions.

Anytime we run into a problem, I’ll tell my team, “Pick up the phone and call 100 people.” You never have to call that many people to solve the problem. It’s like when we had a challenge on one of our development deals. We’re losing a lot of our square feet. It’s going to cut out four of our townhomes. They’re like, “What should we do?” “Let’s call ten surveyors.” It didn’t take ten. It took like two. If you get on the phone planning to make 100 and you only have to make 3 phone calls, that’s even better. That’s a sweet deal. It’s icing on the cake.

It’s crazy what happens when you start talking to people and be loud about it.

Brent Daniel’s famous words. Be loud. Talk to people. Here’s the thing, you got to be willing to go out there and eat humble pie. You don’t have to be a know it all. Most of the time, no one wants to talk to know it all. If you go into it with, “I was hoping you could help me out. I don’t know much about this,” people are so much more open to helping you rather than when you ask them a question and be like, “I know.” Don’t say that. Even if you do know, be receptive, be humble about it, accept the information and be grateful about it. That’s how I’ve been able to accomplish so much. I’m like you Andre. You’re making the calls, talking to the people, you reach out to Jordan, another tribe member because you’re humble and you understand you’re getting started.

Now we’re here. What is the future? Also, before I ask that, I want to know how long have you been doing this? It sounds like you’ve done a lot of deals. I want to know when you first started sending out those texts, when you started doing this, how many texts you sent, how much money you’ve made with this. Give it to me.

I started getting serious about it in April 2021. I dabbled a little bit in houses in 2014. I’ve done three deals. One land deal in Concord, in North Carolina and the twofer. Those are the three deals that I’ve done.

In your first three months? You figured it out.

Yes, it took some learning because, in 2020, I dabbled in houses again. I didn’t dedicate myself, though. In 2019, I spent those months trying to learn as well. In 2019, three months, three deals, I spent a total of $1,200 to get those three deals. The revenue I made on those deals was $22,500.

How much time would you say you spent to make that $22,500?

Maybe four hours a week.

That’s 48 weeks at 4 hours times 4 hours.

Some weeks, I didn’t do anything. That’s a rough estimate.

You’re making more. Let’s say that you spent 190 hours in those three months so $22,500 divided by 190 hours. You made $118 an hour. Imagine if you build a team. Imagine when you get this completely rolling out. What does the future look like? What are the plans for the future?

My goal, it’s a pretty big goal but I’m going to start getting into the land notes as you do. I’ll put it out there. I’ll manifest it. By July 2022, I want to be at $20,000 a month through passive land notes coming in.

You want to be at how much per month in July 2022?

$20,000 a month for passive land notes and have a team built out to take care of all of it. That’s the goal.

You know where you want to be. Let’s backward plan that. My average land note is about $600, the average land note. Let’s take $20,000 per month. Not to be confused with per year, $20,000 a month coming in and payments divided by, let’s say, $600 a month. That’s only my average. It goes up and goes down but divided by $600. That’s 33 parcels of land sold or 33 notes. Do you think you can do that in twelve months?

I know I can.

WI 776 | Land Investing

Land Investing: If you want to get started in land investing, you have to find your why. If you don’t know your why, you’re going to quit super quickly because it’s hard.

 

I think you can too. That’s less than three land deals a month. If you do one a week, you can take one week off a month. That’s three land deals a month. Let’s backward plan a little bit. You did 3 deals in 3 months, about 4 hours a week. Imagine if you make that a little bit more efficient, time block a little bit more because I find that most people don’t work as much as they think they do.

I was writing content and if I focus, turn my phone, email and Facebook off, it only takes me to do about ten minutes to write one video worth the content. It’s amazing how five videos can take me like five days to do it because I’m looking at the phone, looking at the email, talking to the kids, kids run by.

When you’re hyper-focused, time block, turn everything off, all distractions, close the windows so I can’t see the dog chasing the kids or whatever. I’m so much more efficient. Time block, that’s my answer to you. Time block, keep that in front of you and if you don’t do three deals a week, you got to be at 33 land deals and one year. You have 52 weeks to do it. If you do one a week, you’ll be there in 33 months or 32 weeks.

My focus now has been on info lots, doing the quick flips to get some capital because I have credit card debt that I wanted to get out and crush it. Get out of the way. From these land deals, after paying my taxes and tithing on them, I crushed the credit card debt. It’s gone. Now, I can focus solely on getting these notes. I can do a couple more flips with these info lots and maybe start targeting the desert squares so that I can do more volume with these notes. That’s my general plan. I don’t know if it’s going to work.

I have a sales specialist. She sells my land. She’s over 65 years old. She’s retired. She’s usually in Arizona or Ohio or Colorado. She goes back and forth. She’s always traveling and she’s going through therapy now because she got in a bad car accident. From Monday to Friday, five days, she sold four parcels of land. One was for $643 a month. One was for $201 and the other one was $389. The other one was $250.

Let’s say that they were only $250 each times four. We added $1,000 a month to our passive income in a five-day structure. We do that every single week. Sawdust shavings make pies. They add up. They start to build up. That’s where I’m going to leave you with. I want to ask you one more question. If you had it to do all over again and you could start it from the beginning, what advice would you give our audience?

Find your why. I think it’s one of the biggest things because you’re going to quit super quick if you don’t have a why because it’s hard. It sounds easy like, “Three months, three deals,” but it gets tough. Take action. Get a little education and a little bit of instruction but then go. Start doing stuff because you’re going to fail anyway, no matter how many YouTube videos you listen to. Go out and do it. Learn from it and correct it.

What’s your why?

Time freedom. I love my job. I have a great boss. I have a great team. I’m in sales. It’s great but I want to be able to pick up and go to North Carolina whenever I want with my wife and my dog without having to ask for time off or worry about a sales quota or things like that. I want to have the option to go wherever I want, whenever I want. That’s my why. It’s pretty simple.

It doesn’t have to be anything crazy. Andre, it’s been a pleasure. I think you added so much value to our audience. I’m super happy to see your success in this. You go, take action and that’s what I love about you. At the end of the day, you’re right. Don’t get caught up on YouTube. Get the instruction and go. You’re going to make mistakes, no matter what. I still make mistakes. My team still makes mistakes. We learn from it.

It’s entrepreneurship.

It’s wonderful having you. Thanks so much. If you’re interested in getting started generating passive income through land, head over to WholesalingInc.com/land. Schedule a call with me and we’ll hop on a short call and discuss your real estate investing goals. If it sounds like we’re a good fit, I’d be honored to help you in your land investing journey. I’ll see you next time, Land Sharks.

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About Brent Bowers

WI 623 | Wholesaling Land

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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