Posted on: May 13, 2022
WI 950 | Money Management

 

Managing money in real estate is a big challenge for most of us. Today, land expert Brent Bowers is here to teach you more about using land to your advantage. Brent Daniels shows up to tell his land tricks that made nearly six-figures. This episode is going to give you some strategies to use land in America.

Key Takeaways

• How Brent got 150 land deals he didn’t have to buy.
• 10% of 141 million priorities are distressed in America.
• The strategy for taking the right amount of profit from your business.
• The numbers game of wholesaling and closing deals.

Money Management Ft. Brent Bowers And Brent Daniels

Episode Transcription

Do you have pride in your work as a professional or American but you feel like you lack control or feel limited in your time? If you invest in land, you own land that is American land. You can experience freedom, freedom of time, finances, and geography. Join me on my show, wherein each and every episode, we learn how to invest in land and make money with American land as a real estate investor so you can earn the freedom you want and deserve.

I have an amazing guest. You have probably heard him out there getting loud but I have a story that he often doesn’t share. He will be sharing how he started. It’s some of the times of having to go through the gutter to get the success that he has found to the tunes of over $740,000 judgment at the age of 27. He was able to pull out of this completely. This guest is going to astonish you. It’s not going to surprise you too much because you have read about him a lot on this show. It is Mr. TTP, Brent Daniels. Let’s get into it.

I have been waiting a long time for this to get Mr. TTP on an episode with Wholesaling Inc. What’s going on, Brent Daniels?

I am excited, Brent Bowers, the number land coach on planet earth. This is going to be a lot of fun. Let’s pull the gloves off, and let’s go for this. I will answer anything you’ve got.

Thanks for that, and I appreciate the acknowledgment of the number one land coach. You helped so many people. I wanted to get you on this show to talk about the big why. What got you into this? I know a little bit about your story. You shared it in Arizona one time but you were very limited on time. You have helped me and my team with one cold call.

It got us 150 land deals that we did not even have to buy. We partnered with this gentleman. We were individually selling them, and we split the gross. Another cold call that one of my team members made got us a nineteen-unit apartment complex. We still hold that thing. It’s probably got a million dollars worth of equity. Thanks to you for showing me the TTP way.

Another cold call that I made in my garage when I was transitioning out of the Army and still learning my land tricks and my land business and building that deal got me $97,000 in that profit. We don’t have all day but that’s a couple of the deals that I can tell you that came from TTP. Thank you for that. I want people to know how powerful being offense and getting out there and talking to people is.

You did all the hard work there. It’s a fact. Here’s the thing. With every single transaction that we are going to do in our marketplace, we are not buying it from institutions. We are buying it from individuals. It’s not like the days of 2008, ‘09, and ‘10 when you are bidding at the foreclosure auctions or buying these properties from banks. You are dealing with real people that have equity in their property, so you need to sharpen your skills in having quality conversations with distressed property owners.

The statistics show us that 6% to 10% of the real estate market is in distress at all times. There are three main forms of distress. There is the actual condition of the property being in distress, financial distress, and then emotional distress. All three of those come together in that 6% to 10%. When you have 141 million properties in the United States, 6% to 10% are millions of opportunities. There are more opportunities out there every single day than there are investors going after them.

I want everybody to know if you are getting started, this is a perfect time. If you are getting back into it, it is a perfect time. If you are scaling your business, it is a perfect time. This business is life-changing, and if you focus on having those quality conversations with distressed property owners every single day, you cannot lose.

That gives me so many more questions I want to ask but before I do that, what got all of this started? I know you had your own real estate company. You built this, and you were having so much success. Talk about Rich Dad Poor Dad.

 

There are more opportunities out there every day than investors going after them.

 

I read this when I was 21 or 22, and it broke my brain. Life’s transitions are interesting. When you are a kid, everything’s cool but then you turn 12 or 13, you are going through changes, and then all of a sudden, you can’t be a little kid anymore. You then go into high school and do your thing. You are involved in activities, starting to get into the job field, doing sports or whatever else. At eighteen, you’ve got to figure out what path you want to go to provide value to the world. From 18 to 22, you are figuring this thing out. I was so fortunate that I found this during that time because it broke my brain. I was like, “That makes so much sense.”

I had always wondered why I got mad that I had to go to class or do something at a certain time, or somebody was telling me to do something. I wanted more control, and it was always in the back of my mind. A lot of our audience, and I know you, have felt that before, especially being in the Military where you are trapped into a schedule, a system, and a model that you have to follow. This book broke me out of that. I was like, “I can go out there and start as a self-employed person, and then at some point, once I get enough skills and experience, I can own a business. I can start hiring people and start building a business.” That was what was exciting for me.

In 2004, I decided I was going to get my real estate license because I thought that’s what you needed to do to understand the terminology, the paperwork, and the process of investing in real estate or having a real estate business. I have been on that path ever since. There have been ups and downs, and then it is way back up.

I love the quote, “The work works on you more than you work on it,” so whether or not you are going through a tough or an amazing time, the work that you are putting in is changing you and is making you something different. If you stick with it, push through it, and don’t quit, you inevitably become wildly successful because you are learning and becoming more of a true entrepreneur. If you do it in the real estate space, there are so many incredible benefits that come along with it.

I’m glad you mentioned, “Broke my brain,” because I have never known anybody else put it like that. 2004 was a very big year for me because I graduated high school. It’s cool to know that that’s when Brent Daniels got his real estate license. We were at the rhino round table together. I was a Wholesaling Inc student, and I luckily got chosen to be the land coach for Wholesaling Inc.

It was such an honor but I remember calling you and saying, “Is this a good idea?” You told me, “You would be stupid not to,” so God bless you for that. You also told me one more thing, which I didn’t listen to for a while, and it was to start a YouTube channel. I finally have started that YouTube channel.

It’s fantastic. It’s the absolute best. You are giving instructions. You are cutting through it. To everybody that hasn’t subscribed to Brent Bowers’ land investing channel and you are interested in land, jump on there. There are a ton of unbelievable resources. I said to my team, “Anytime we have a piece of land, and we have a question about it, I will reach out to you but I also send them right to your channel.” They usually get it figured out fast.

You had shared something when we were at the rhino round table standing there in that house in Arizona. It touched me. I didn’t know you very well at that time. Cody Hofhine had put on the rhino round table. You were talking about all these rentals that you purchased, and then you found yourself in this huge hole. I’m saying what I remember from you talking about that but I know it hasn’t always been roses and sunshine. You had twenty-something houses and all this financial debt. You also talked about cars. Are you willing to share that part?

In 2004, 2005, 2006, and 2007, as a new real estate agent and a budding investor, I was making good money and a great market. It’s because of that, that I was like, “I’m going to open up a big brokerage. I’m going to be the new Keller Williams. I’m going to do this, and it’s going to be amazing. I’m going to have a bunch of proactive real estate agents going out there, hitting the phones, knocking on doors, finding all the best opportunities, and making a difference in our community.”

 

WI 950 | Money Management

Money Management: The statistics show us that 6% to 10% of the real estate market is in distress at all times.

 

It was going well but the issue was the whole market melted. We saw the equity in the Phoenix markets go down by 70% of value. A lot of people were upside down, and the money wasn’t coming in because we couldn’t figure out how to get short sales through because the banks didn’t have the right departments to the loss mitigation departments weren’t even invented yet in these banks. Everybody was crumbling, so because of that boom, I had to foreclose on five properties that I personally owned, another 15 or 16 properties that the company had owned, lost two cars, had those repoed, and was floating there.

I was in a rough spot because I had always thought that if I worked hard and was super proactive, it was always going to work for me but I stopped the motion. I stopped being proactive because I was worrying too much all the time. The worrying took over my brain, and I paused. You talk about fight or flight but there’s also freeze. I froze. I felt embarrassed.

I felt that all the respect that I had built onto my name was crumbling. I wasn’t prepared for that as a late twenty-year-old guy, and then mixed in there, I was also getting a divorce. That was a whole other thing. I was like, “Everything that I built up in my first five years from college was crumbling.” I felt terrible.

I went into a shell for a good year and then finally started to claw my way out. That was huge because I had to. The last thing I didn’t tell you about was I had to facilitate this big brokerage. I had put a personal guarantee on a 9,000 square feet office space in North Scottsdale, which was expensive, and I had signed a ten-year lease. I was only six months into the ten-year lease when the economic world melted, so they smacked me for the remainder of the lease, which was $740,000. I had a $740,000 judgment at 27 years old, I was divorced, I got my Range Rover and Mercedes repoed from the front of my house, and I was living in a rental property with some friends. It was rough.

It took me about a year to clear my head, put real positive things back into it, and then start being proactive again. What I did to grow my real estate business was to go out there. I didn’t have any money. My dad gave me a car. I couldn’t even afford a car because there was no income coming in. I would drive to neighborhoods and get out because I didn’t want to waste gas.

I would knock on every single door in popular areas, and finally, I knocked on one door that was at the end of the street. The gal loved her house. She didn’t want to sell but she was the caretaker of a house a few houses down. She said, “It’s vacant now. The owner is older. They live in New York. I think they want to sell it. Let me see if I can call or get permission for you to reach out to her.” She then came out with a name, address, and phone number.

I called the owner of that property instantly, and it ended up being my first deal. From there, I was off and running. I was unstoppable and still am. The company is unstoppable because if you give us a name, address, and phone number, we are going to make a difference in our community. I am telling you without a doubt that talking to strangers is difficult but it’s a thousand times more fun than being broke.

When all that happens, it’s almost like falling off a ladder. You are working on your roof, putting up some Christmas lights, and you fall off, and you land right on your back. You lay there for a minute, and your mind is scanning from your feet to your head and is like, “What’s broken?” We all do it. It happened as well in the 2008 and 2009 timeframe.

We lay there and figure out, “Is my neck broken?” It sounds like that’s what happened. You went into that shell. I can also relate to the divorce at 27 years old. I was on my second deployment, and my wife was like, “I’m out of here.” I was crushed, and I can understand that. You put it so lightly. You had $740,000 on your butt at 27 years old plus a divorce. Most people couldn’t handle that.

 

You have to earn that spot to be the leader in your business.

 

To anybody saying, “Do a bankruptcy,” the issue was my business partners in this business disappeared with all of our books and all of the financials for three years. You have to file taxes to be able to do a bankruptcy, so I was trying to file taxes and was trying to get all this stuff done. I had no money. I was trying to barter with CPAs. I don’t even know what I offered them. Maybe it was to help them find real estate deals.

It was a mess. I ended up settling that for much less but it was a huge and heavy burden. To anybody out there, if you are starting with very little money in your account, it’s better than a negative $740,000. That’s not like, “That’s a mortgage or that’s good leverage debt.” That was judgment money. That was like, “You owe this. I’m going to pull you into an attorney’s office every 90 days and see what money you have and take it from you.”

I imagine they were still letting you use the office while you were coming up with this judgment money, right?

Yeah. I lost the office, the business, a lot of relationships, and the books. It was an absolute whirlwind disaster. I have made it my purpose to help as many people avoid that as possible because what happens is we get really comfortable being a business owner. The thought of building a business that runs itself is so seductive but the one thing that I want to tell everybody out here is you have to earn it. You have to earn that spot to be the leader in your business, and there’s a path to do that.

If you go from doing a couple of deals and then you are starting to hire people, expand, spend, and get your overhead high, and not take the money home to you and your family to go buy assets, it’s a huge mistake. I stand on every stage, I get in front of every camera, in front of my iPhone all the time, and I’m loud at keeping the money. You’ve got to pay yourself first. The money should go home to you and your family to invest in assets. That’s what builds wealth. Keep the business going. Don’t replace yourself yet. Stay self-employed until you are bringing in consistent money, and when that happens, then you can start expanding.

I love that so much because there’s that evolution of business. As we bring in that money, we also start to spend a ton of it. We have the nicer offices. We are like, “We need these computers. We need to have these lunches.” One thing that every business owner should do, and I don’t care if you have been in business for 1 week or 10 years, every single month, go look at your credit card statements because these things creep up on you.

We were in the same room when Todd Toback talked about phantom expenses. I was like, “What are you talking about?” He would cancel his credit card once a year and cancel everything out. My bookkeeper and I looked at that, and thousands of dollars were coming out. We were like, “They were going to deal if we would have been on top of those things and paid ourselves first and focused on that.” Many people focus on, “Let’s go do all these deals,” and then they rack up all these expenses. That’s my little soapbox. You’ve got to also watch the expenses and not be adding all these channels. I’m bad about it. I’m preaching to myself, “That’s powerful.”

The way to do this is how much profit do you want to take home every month? That’s it, and then if you are going with your profits and your income, that’s what’s going to equal your expenses on the other side. How much are you bringing in? How much do you want to keep? That will equal and create the discipline of knowing how much you can spend every month. If you know that you are going to be making $50,000 a month but you want to take $35,000 home, you’ve got $15,000 for your expenses. You always want to have 3 months or 90 days saved up there. You are saving all that up and taking the money home.

It is income minus profit equals your expenses. It’s not income minus expenses equals your profit. If you make that switch in your business, you are going to build real wealth and build way faster than you would. If you go, “I will bring it in,” and the whole “it’s a business write-off,” that is one of the most dangerous sentences of all time. That is an excuse that you give yourself to not take money home to your family and buy assets.

 

WI 950 | Money Management

Money Management: When you have income coming in, you’ve got two choices. You can either spend it or invest it.

 

When you have income coming in, you’ve got two choices. You can spend it or invest it. That’s it, and that’s after taxes. Remember that we got taxes in there too. Are you going to be spending money? Are you going to be investing money? Sometimes, you invest in your company with people, talent, systems, and processes, and that’s fine. Oftentimes, we spend it on silly things, and we call it a write-off. It ends up crushing the amount that we can take home and earn money from a return of investment or from investing that money into property, business or the stock market.

If you want a write-off, go buy an asset that produces income for you. I went down that road. I was like, “It’s a write-off,” and then before I knew it, I was buying stupid crap like boats, RVs, and nice motorcycles. I figured out how to write my motorcycle off but when to have that. I appreciate you sharing the road through the gutter that you had to go through.

This might be me but I relate more to the struggle than looking at this huge, massive business and operation and 60,000 followers on YouTube and TTP. I love hearing that you had to put in the work. I’m sure there were many sleepless nights. You had some help along the way. Thank God for your dad that gave you that car. We always have someone that helps us out.

Honestly, it’s difficult to look back. It’s not because I’ve got scar tissue but because I have learned to stay focused on, “What am I doing now.” I think that idle hands do the devil’s work, so I look at every single day as to, “How I can squeeze the most out of every single day. How do I sprint for most of this week so that I can feel great when I shut it all down and turn my mind off, and enjoy entertainment, spending time with the family, personal growth or whatever else?” Maybe it’s thinking about nothing. You have to focus. “What are you going to do? What conversations are you going to have that are going to move the ball forward in your business?”

This phone is our portal to $100 million, and I truly believe that because the most successful people on planet Earth are on their phones all the time. They are talking to people all the time. I don’t care what industry it is, but especially in our industry of real estate, if you are being proactive, going out there, and calling on the properties that need the most love, it’s not rocket science. Ugly houses equal big checks. There’s an endless supply of ugly houses.

I can’t agree more. First, you are going to suck at that. I know you talk about it in your course and your program like, “You are going to suck at this at first but you’re going to get lucky too.” They say, “A blind hog finds the acorn,” and then eventually, after hundreds of phone calls every single week compound, and by the time you hit that millionth phone call, you can talk to anybody and any personality type, whether they aqre a driver or passive. You name it. You are not just building a fortune, wealth, and a massive income but you are also building yourself. It’s the hard work works on you type of thing.

I was in baseball growing up, and I finally smashed the ball. I was sucking that year. I remember this jerk behind me. I might have been ten years old at that time. He was saying, “A blind hog finds the acorn from time to time.” I was like, “That son of a gun.” I will never forget him. I know his name. I will never forget that quote. You are going to suck at first but we got to get through that suck phase.

That’s growth. When you get that kick to the gut and you feel it’s all watery and you are like, “I feel very uncomfortable,” everything great is on the other side of that. That should be the thing that you are looking for if you are trying to be an entrepreneur, a real estate investor or not to live an average life. You got to take those shots to the gut, and you have to keep moving forward.

To put some parameters on this, if you talk to 200 distressed property owners, you will find one deal. The average wholesale deal is $15,000. That’s throughout the whole country. You talk to 200 people and make $15,000. You have to talk to 199 people that will reject you. Most people haven’t been rejected by nine people, let alone 199. The difference between the people that are superstars in this and the people that stick their toe in the water is they are willing to get through that 199 to get to that one person that you can help out in your community.

 

Pay yourself first. The money should go home to you and your family to invest in assets. That’s what builds wealth.

 

You repeat it because when you start, you start with so much faith that you can do this. The three Ds come in Doubt, Disappointment, and Distraction. Those start creeping in, and we don’t stay focused. If you put your blinders on and you stay focused on having conversations with people that own ugly houses, you can’t lose but 199 people are going to reject you. Are you strong enough to get that 1 out of the 200 that you can provide value to? That’s the difference.

We are men. We are used to getting rejected all the time. This is harder for women but you can do it as well if you are a woman. I’ve got women on my team that is crushing it.

Some of my most profitable and gangster students are women. They have a unique advantage because people trust them a lot faster than they will trust us. They take over. In my opinion, the women run this industry.

I have two acquisition managers, and both of them are women. I couldn’t agree more. If you are reading this and it is resonating with you or you know someone that needs to read this, please share it. Please pass it along to someone that needs this, whether it’s your brother, sister, mother, aunt, cousin or friends. Also, if you have not gone on and rated and reviewed this show, please give us a five-star review so more people can learn about this and know Brent Daniels’ story. What have you done to get yourself uncomfortable? What has gotten you out of your comfort zone talking to millions of people?

The comfort zone always expands. Something that’s interesting that I have looked at is I went to my wealth advisor. I’ve got this family office set up a thing that takes care of everything. I asked him, “How much real estate do I have to own, free and clear, to have a million dollars passive after taxes a year?” With $83,000 deposited into my account after taxes, do you know how much real estate you have to own free and clear? It’s $27 million worth of the real estate.

Most people get 20% or 30% down, so you have to get about $100 million to $125 million in real estate to get $1 million passive. That’s something that I’m pushing towards. That’s something that’s making me uncomfortable. That’s something that makes me think, “I have to, 1) Find great opportunities but, 2) I have to start investing more into this incredible asset class.”

Let me tell this to everybody. I cannot get there without my business being wildly profitable. You could do some creative stuff here and there but typically, what I have found with creative deals is they are usually not in great school districts. That’s what I look at. I look at owning properties in really good school districts because statistically, they stay vacant the least. They get the most in rent, and the renters take care of the properties on a higher level than if you are in bad school districts.

I’m looking at good school districts and I’m like, “How do I get $27 million worth of it there?” You are going to have some growth with appreciation and equity buy-down if you are buying it with debt. It takes a while but starts buying properties in good areas and/or developing them. That’s what I have been doing to get uncomfortable.

Every single property you own is its own small business. You’ve got the people in there that are paying rent. Those are your customers, and then your property is a product. This is something you have to keep up with. You have to keep this property going. You have to make sure that it’s managed, that the taxes are paid, and anything that goes wrong with it is taken care of. It’s its own small business.

 

WI 950 | Money Management

Money Management: Build not just a method for finding deals but the actual model of building a successful business that sources discounted properties. When you do that, you will have enough cash left over to make smart investments, making a huge difference over time.

 

I encourage everybody to build their real estate business first. Build the model, not just a method for finding deals but the actual model of being able to build a successful business that sources discounted properties. Build that up so that you have enough cash left over to make smart investments, and over time, it’s going to make a huge difference. If you want to talk about it, that’s the financial legacy that will live past you. That’s where I’m at.

That’s making me a little uncomfortable thinking about that. That’s so true. We are hiring an in-house accountant. They are going to be in our family and our team. That’s something we talked about. Every piece of land, every house, every office building, and the apartment complex that I mentioned is its own individual business. That’s baffling some people but it only has to start with one.

Start with one. Wholesale two, keep one. Wholesale three, keep one. Wholesale four, keep one. Keep building and building. In 2004, he got his real estate license. He had a $740,000 judgment and a divorce. He pulled out of all that and kept moving forward. At the end of the day, he was talking to people. He kept pushing forward and building that dream, energy, fire, and stay. Always be on top of things. Where can we find you? How can people reach out to you?

Go to my YouTube channel, Brent Daniels – Real Estate Coach. I would love for you guys to join some of my live shows. We do that every Monday, Wednesday, and Thursday. We go five hours live, answering questions from around the world and the country. It’s a ton of fun. I love it. I have an incredible crew that puts together a great show every single week. Join us. If you want any free resources, scripts, and breakdowns on how to find cash buyers and what to do on appointments, all of those things are free at TTPInsider.com. Check it out.

Thanks so much.

Thank you. You are the best.

 

Important Links

 

About Brent Bowers

WI 895 | Land InvestingBrent 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

Leave a Reply

Your email address will not be published.

[class^="wpforms-"]
[class^="wpforms-"]