Posted on: July 15, 2022
WI 995 | Land Investing

 

Imagine closing a deal once but getting paid every month for years to come. That’s the power of land investing and exactly what’s happened with today’s guest, Peter Soros. Peter joins Brent Bowers to break down how he’s grossed over $90k and is now receiving $700 checks every month after starting his wholesaling journey. You will also hear Peter talk about the importance of motivation and finding a career that you’re truly passionate about.

 

If you want to learn how to do the kinds of deals Peter is doing, consider doing what he did and apply to Brent’s Land Sharks program.

 

 

How This Investor Gets Paid Every Month For Years Off One Land Deal With Peter Soros

Welcome, Peter Soros. I am super honored to be hanging out with you and talking to you. I still have to pinch myself that we are able to do what we do as land investors in this small niche within real estate. It allows the lifestyle that we are building, financial freedom, time freedom, and the ability just to do the things we are able to do. How are you?

I am doing great. I should be getting my wired check from the third deal that I have closed in the past. It has been a journey for these ones, specifically, which I know we will get into. It is great. I got to really enjoy my weekend, go to stay at a hotel, in the pool, and in hot weather. It is stuff that I have not been able to do for a long time. So much has changed with your help. My whole life has changed.

First of all, I am honored and almost got a little choked up there. I appreciate that very much. Tell me about yourself. I know a little bit about your son. You are telling me he was knighted in the medieval time. I want to know a little bit about you. Tell me about how you started. Have you been in real estate for a long time? Let’s hear a little bit of your story.

My background, work-wise, was more graphic design, photography, and some music. I was doing that. I remember someone saying when I was trying to learn to become an entrepreneur and get out of that light. Someone had said that, “Whatever you are doing while you are at work is what you should be working on, but you are doing something else that you should not be doing at work.” I realized what I was doing was looking at LandWatch.com. I was looking at land and real estate and thinking, “I could do this with that land or I could do that. Someone could do that.” Eventually, I ended up getting my real estate license partially because I realized, “This is what I want to do. I like this stuff.” I got my real estate license, but I did not do much with it.

I sold 1 or 2 mobile homes and that was it. I was still doing it part-time. It is not something you can do part-time. I bought a wholesaling course and it was exciting. I flew through the course, but I was still so scared. I didn’t do anything with it for years, and then everything changed. The whole world changed the past couple of years. I was still at my job. I just said, “This has to end.” Come January 2021, I did quit my job. I did not have much lined up. It was one of those times to burn the ships. I am just going to make real estate work one way or the other. I struggled for a couple of months. That is when I found a mentor who was a broker and now he is my partner. We will get into that.

We did our first wholetail that way. That was the first big check. That is when I took my son with me the whole time. It all started from there. I had my license. I knew I had to make this work one way or another. Things came up on the investing side because I want to do the investing side way more than being an agent. After that wholetail, the land investing came up again. I had heard about it years ago. It was like, “I do not understand any of this.” I asked one of my real estate investing buddies. I said, “Do you know anybody?” He is like, “Brent Bowers. He is the guy. Go to him.” Within that week, I signed up, and within a couple of months, I had my first deal.

WI 995 | Land Investing

Land Investing: Life is not just about working and paying the bills. It’s a whole lot more than that. Figuring a way out to make that happen is one of the biggest mindset shifts.

 

I am taking that quote. I was writing my notes, “Whatever you are doing while you should be working is what you should be doing for a living.” Did I get that right?

That is showing you where your mind is. For some people, maybe it is fitness stuff or health stuff. While they are at work, that is what they are thinking about. That is what they want to be doing. I did not even realize it until years later like, “Maybe I should be into real estate.” I did not know I could do anything in real estate or with land. It came full circle like, “This is exactly what I have wanted to do.” I had no idea.

Something that you mentioned was you got to enjoy time off for a change. It sounds to me like you might have gone for some time without having a celebration or taking time off. That is why I love the land business. Do not get me wrong. I have shiny objects. I want to get it. We are entrepreneurs and we are visionaries. Anything we see that we can make money, we try and jump into. I always have to remind myself that the guys that do well in anything go big in that one thing.

I keep focusing in land. It is not necessarily the big parcels of land where I am flipping it for tons of money. It is the financial freedom land. What do I mean by that is the stuff that gives me freedom that I can buy for $0.30 or $0.40 on the dollar, turn around, sell it at retail, and get monthly payments in. That is my cup of tea. Go back to you getting to enjoy some time off. Why? Talk about some of those land deals. You mentioned so casually, so humbly, that you closed three deals.

We will get to that because there is a lot to talk about with what happened on those. In the last job I had as a graphic designer, I was barely scraping by. I had to live with my family. I was grateful that I had family and all that, but it also was not ideal. I am a single parent. I have to share a room with my son. I knew I had to make a change. Doing anything like taking a vacation was not even part of my vocabulary. Also, growing up, my dad would never take a vacation. He was all work. My mom was, “We got to work.”

I want to break that. I want us to enjoy our time here. I make time for that. It makes all the difference. That makes everything worth doing, but there is more to it. It is not just about working and paying the bills. Life is about a whole lot more than that. Figuring a way out to make that happen is one of the biggest mind shift changes for myself.

Make time for what truly matters. It would make all the difference that makes everything worth doing.

Your story is a reminder to all of us. Anybody reading right now, it is not all about work. That is how my parents are. To this day, they still work. They do not go on vacations. We were not raised to do that. Ultimately, we always want better for our children than what we had. Not that I had it bad. I had amazing role models. My parents never stopped working, and some people’s parents do not work. We have those role models, but we always want better. That is cool. I would love to break down one of your favorite deals that you have closed, whether it be the couple that you just talked about or any of your land deals.

There is one that has been interesting. I locked it up, but it took six months’ worth of escrow to finalize it. There was so much gold there. I was like, “I have to see this through.” It was a real mess of an issue. This lady inherited thirteen parcels of land. It’s a good growing area, but there were all these issues with it. Her brother, who had owned it died and had two different LLCs, some from different states. One was bankrupt and the other one owed the other company money. It was within their own company. There are weed abatement liens. There was so much on it. There were so many times she was ready to quit. I said, “We are not going to quit. We are going to see this through because if you cannot do it with me, you cannot do it anywhere else. You will never be going to be able to sell these things.”

We were with a title company with my partner, who has been in the flipping business for many years. He was managing one of the biggest flippers in San Diego. He knows that game, but land was new to him. I said, “I need a money investor on this because I might have to purchase these outright first. I had put them on the Facebook marketplace. People were interested, but this is not going to close soon. I think the long game on this one.” The first title company said, “We can do it,” and then they said, “We are not going to do it unless you do all these things like reinstating LLCs that are dead.”

I am like, “This is going to be impossible.” The seller did not want to do that. She was like, “I am not doing any of that.” We had to shop around at different title companies. Finally, we found one that would do it under certain requirements. She was in Vegas. She wanted to drive to San Diego and find paper. She was like, “I am not doing notary stuff. I want to sign stuff and I am going to get paid right away.” I was like, “Whatever we got to do.” We finally closed on that. Out of those 13 parcels, I have sold 11 of those already. I have just got two more to sell. If you want to go into numbers, we can go into numbers.

First, I want to go into like, “We are not going to quit.” You were that rock, the foundation for that seller. I love the fact that you showed so much confidence in her like, “I cannot get this done. No one is going to get it done.” People have to remember that it is okay when you are getting started and you are like, “I am learning.” You shared so much confidence with that seller. That is why this went to fruition.

I remember my 5th or 6th land deal that I am still getting paid $534 a month. It was the last remaining vacant lot in a mobile home park. I had to reinstate incorporation, but this was one deal. Yours is thirteen. That is wild. I think we all want to know the numbers. We want to hear the juicy details. I love hearing the numbers because it inspires me to go out and do another land deal.

WI 995 | Land Investing

Land Investing: To get through these deals and get people to trust you, it’s all about mindset. It’s all how you approach them. Make sure you understand what they are doing. Those are things that really make the difference.

 

I locked them all up at $40,000 after closing costs. Everything was $44,000. My partner came in and we bought those outright. Both buyers I did find on Facebook. I sold 5 of them for $50,000, 6 of them for $60,000, so $10,000 each, and I have two left. Those are the numbers on that.

It sounds like you are already profitable and you still have two left. I am doing the numbers here. For about $10,000, you have sold 11. You made about $110,000 so far gross minus $44,000. That is incredible. You say that so humbly.

I say that because I have had another big three parcel deal that we were right at closing, and the guy did not perform. I was ready to close on that and that never happened. We are experimenting and lifting with an agent out in that area. He is suggesting splitting them because it is half an acre. I was going to sell them for $65,000 and said, “We could probably get $65,000 for two of them.” For the other two, we might be able to get some between $20,000 and $25,000. That one is going together.

I did some calculations really quick on my calculator. They put these things on phones now because, luckily, I could not do math at all. I took $110,000 gross as what you received minus the $44,000 in expenses. That is $66,000 in profit received already in your pocket. Plus, you got two more to sell at $25,000. $91,000 on one of your first land deals.

That would probably be my 3rd or 4th land deal. There were some earlier ones.

You are just a salty dog. You are a seasoned pro. Maybe we can bump that next one up to $100,000 profit. I love your attitude with that. You had the mind of a champion. You were not going to quit and I am sure you were focused more on helping that seller. I doubt you were sitting there just calculating numbers. You are not going to do the deal unless it is going to pay off. Did you think that you were going to make that much money on that one land deal?

If you want to succeed in real estate, you should gain the confidence to talk with people.

Because of my real estate background and as an agent, comps made sense. I have to have that confidence going in there with my own research.

Explain comps for anybody that does not have a real estate background and they are just getting started. Please give the layman terms of what you mean by comps.

As you check the exact same area of the project you are working on to the land, you are looking at buying and seeing what sold recently that is as similar as possible to that one. The market decides everything. That is the quick version. You just look to see what has been sold that is the most similar in every aspect as possible. You figure out where your range is.

If the comparables support it, it is almost a no-brainer. How long did it take to sell these things? I do not want to skim over the fact that you said you found the buyer on Facebook.

Both buyers. One for the 5 parcels and one for the 6 parcels. Both of them came from Facebook.

Was it Marketplace or buy-sell groups?

WI 995 | Land Investing

Land Investing: In the end, you’re just dealing with people.

 

It was Marketplace and sharing it to groups. It might have been through one of those buy-sell groups. I do not remember where they funneled in from.

How long did it take to find those two buyers?

I had people chomping at the bit right away, but because of how long it took, I had to tell people, “This probably will not close for a couple of months.” The serious one stuck around. As soon as we finally closed, one of them was within two weeks and the other one was about a month or so. That second buyer for the six parcels was ready to cancel. He went to the city and wanted to build on every single six parcels, one on each one. They were 0.06 acres and you cannot do that. He misunderstood. Luckily, his agent was his daughter and she said, “This is still a really good deal. You still need to buy this.” She convinced him and we were able to move forward with it.

I love the fact that you had your buyers lined up before you and paid for the land.

Most of the deals I have done have been double closing or double escrows to pay off from my purchase. Some of these ones, we did have to outright buy because we did not know when they were going to close.

Peter, I appreciate you taking the time, the vulnerability, sharing these facts and details, and anything for the reader that is just getting started or quitting their job as you did in January 2021. I do not recommend people ever quit their job to go deep like you did, not like putting your toe into it. You jumped in the deep water. Any advice for the reader?

Be willing to walk through the fire of deals to solve problems for people. You have to trust the process and listen to the people who’ve done it.

So much is your mindset. A lot of times, you hear people talk about that and like, “Sure, it is.” It is like, “How do I do this?” To get through the deal and to get people to trust you is all mindset. It is all about how you approach them, how you even see yourself as like, “Are you trying to solve a problem, or do you understand what you are doing? Do you understand what the person on the other side is dealing with?” Those are things that make the difference. I think that is one of the reasons why I named my company PS Home Solutions. I am here to solve problems for people.

If you are willing to walk through the fire of those deals, you will get paid eventually. The system worked. You have proven it. You have proven it to me, and then I did it. I know it works. You have to trust the process as well. That is part of it. Trust the process, listen to the people who have done it, and then have that confidence, understanding, and just the people you are dealing with because, in the end, you are just dealing with people and some people are going through a bad time, especially when it comes to land. It is one of the last things you want to get rid of. The people you are dealing with are very sensitive too.

Share this episode with someone that is going through that competence, needs that mindset, or needs to go out there and take action. Share Peter’s story. If you have not done so yet, please rate this show. Review it five stars only. Thank you so much for that. Peter, a single parent and shares a room with his son. That is tough. I can barely sometimes live with my children. They have all three of their own rooms in the same household, let alone share a room. You did it. You overcame that.

Kids are tough. They require a lot of attention, time, and discipline. You have just overcome so much. I still have to pinch myself to realize that trusting the proven model absolutely works. Sometimes I cannot even believe it when I see all these payments come in every single day for land notes. Eventually, I want to get you to where you have those payments coming in every day as well.

My first one is coming. I am closing, getting the deposit, and then I am going to start getting monthly payments of about $700 a month for two years. This was the first time I had become the bank.

That is some people’s retirement income right there on one land deal. That is amazing. It is even possible. I am still getting paid on one that is $534 a month. You are beating me. I do not have any $700 a month. I think my biggest one is $694. Those pay off eventually and we keep building it back up. The one that has been paying me since 2016, $534 a month, I still pinch myself. I cannot believe it. I bought that land for $200 and sold it for $39,000 with interest. Thank you so much for sharing. If you are reading this, go to WholesalingInc.com/Land. Go there, fill out the form, schedule a call, and if we like what you have to say, we might even invite you to be a tribe member, just like Peter.

 

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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.

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