After getting knocked down with Covid we are back with who would be considered a young pup in the real estate world. My man Justin Sliva who has taken just four years to complete over 500 deals. Such an incredible accomplishment and he is in a niche that not so many people know about.
The raw land niche is a highly reliable, easily accessible, and the best-performing multi-generational wealth-builder we’ve ever seen. Investments in Land offer a huge ROI, massive cash profits, and sustained passive income.
Justin has an incredible podcast of his own called Casual Friday's REI and he will train you to learn all about how to thrive in the Land Flipping space. Oh and if you want to save $500 on his program just head on over to billyssecrets.com
That was just a sneak peek as to everything that you will here in this episode and as always if you need anything come find me at billyalvaro.com and billyssecrets.com
Talk to you all soon!
Billy: [00:00:00] welcome to Unstoppable Real Estate Investing Wealth. My name is Billy Alvaro, AKA the unstoppable BA former billion dollar mortgage banker gone bankrupt turned professional real estate investor where each week you'll learn the tools, strategies, systems, and secrets myself. And other highly successful real estate investing entrepreneurs used to start, grow and scale their businesses, creating massive profits and how you can too.
[00:00:31] And we'll teach you how to put those profits to work. So you no longer have to get ready to finally experience financial freedom and generational wealth. Now let's get started.
[00:00:43]Welcome back. Welcome back to Billy Alvaro, the unstoppable BA, and I appreciate you taking time out today to listen to unstoppable REI wealth and at this game now for 13, 14 years investing in real estate, and it is my passion to just absolutely give all I have. To my audience is out there. Now you're going to see today.
[00:01:01] I'm a little reserved. If you don't see me, you're here with me. I'm a little reserved and that's because I am beat the F up with COVID. I've been on my ass for the last five days and the gentleman who I'm going to be having coming on next, he was actually my guest last week when I just got hit with COVID and just happens that we were talking and the system just blew up and it was like, I guess the big guy, his way upstairs or saying, Hey, we're going to cut this short because you're unhealthy ass.
[00:01:25] has to get some rest. So he was grateful enough to come back today. I'm going to bring him on in just a second, but this is your first time listening to the show. I want to thank you. I know you have multiple, things that you could listen to and if you don't know me check me out, go to the first couple of episodes.
[00:01:40] I give you my story of why, how I get into this business, the failures, the ups, the downs, the sideways, and what the purpose of the show really is. And it really is just to give it to get you. Those that are listening to teach you how to start grow, and eventually scale your real estate investment business.
[00:01:56] Whatever that business may be, whether it's a buy and hold segment, a fix and flip or wholesale, even apartment buildings. There's a little bit of everything for everyone. Today the guests that are going to be bringing on, let me bring him in right now. This handsome bastard Justin Silva how you doing, buddy?
[00:02:11] Justin: [00:02:11] It's so good to see you back and feeling somewhat better. You were looking rough last week.
[00:02:16] Billy: [00:02:16] God, I was, I'm still looking. I looked like. Smack in the face with a bag of assholes, bro,
[00:02:22] Justin: [00:02:22] you sound better. Your energy looks better. You have better color last week, you looked bad. And I was worried for, I was like, you sure you want to do this?
[00:02:27] You're like, ah, somebody else, like you said, was watching out for us to make sure that we got you, that rest of you needed so glad they were.
[00:02:35] Billy: [00:02:35] Yeah. I'm glad to get you back on this week. And I know we had some technical difficulties last week, but Justin look. No, you're the first person I'm having on this show that you really have a niche and your niche is land flipping.
[00:02:47] I think you do a little bit of development as well, but you're really a land flipper. So let's get into your backstory. How did you get into this? And then I really want to start picking your brain because I know there's a segment of our audience. Who's going to be interested in how you do this because.
[00:03:00] Your niche is not just flipping land in your backyard. You're doing this in 40 plus States.
[00:03:04] Justin: [00:03:04] Yes, sir. That's the fun part about this is when we talk real estate, we say everybody's got a niche and you don't hear land talked about as much. And the cool thing for me is it's, doesn't have the tenants, the termites, the toilets.
[00:03:13] You don't have any of that. And it's just raw. It's out there and there's so much of it. You drive down a freeway, you see land everywhere. And it's interesting how we got here. Cause I think a lot of your listeners will resonate. We all have these little side hustles inside niches that we get into.
[00:03:27] And since corporate America I've had one always going and we've done private label products. I own a supplement company for awhile. And me and my partner that I have the podcast with now we've had our podcasts for 300 plus episodes casual Fridays REI.
[00:03:40]Billy: [00:03:40] Congrats, by the way, Yeah, that's a good feat man.
[00:03:44] 300 episodes you've been out.
[00:03:46] Justin: [00:03:46] Yeah. We're 325. I think it's three 25 or three 28. This week we shot three a week for two years and then back it down because we had so many other projects going on that we needed to open up the time. So we had an Amazon drop ship. Everybody knows you, you see the internet gurus talking about fulfillment by Amazon.
[00:04:02] We had one of those. We had three number, one products, and we weren't making near the money. We thought we should have been making off of it. It was. It was a grind. We weren't making much, but he was a real estate investor back before the crash, 2002, 2007, 2008. And it's one of my best friends. We've known each other since high school and he comes up and he's like, Hey man, I want to get back into real estate investing.
[00:04:21] I was like, great. He's like, we need to liquidate the Amazon company. I'm like, great. We're getting into real estate investing. He said, nah, bro, I'm going to do it on my own. I was like, what? Okay. So he sends out his first mail thing and he's getting all these five acre properties back for 500 bucks. And I'm like, dude, I've got cash.
[00:04:36] If you have five acre properties for $500, I will buy as many as you can put in front of me. And he's like, well, why don't you just do it too? So I talked to my wife, she was a school teacher. We had twins didn't really want to go back to work. I was like, let's start this thing for you. It'd be a perfect little side hustle.
[00:04:52] I'll put up all the money. I'll help you where I can. And we get to work. We send out our first big marketing push. It was late 2016. People started calling back and they started hating. Like they was just mad because we were offering pennies on a dollar for their land. We send blind offers off.
[00:05:06] So it's a little bit different than what a lot of people do to fill our inbound pipeline. And she said, Justin, I'm not going to do it. It's I don't want these people talking to me like that. Me and a mean old man from Louisiana, he said, I'm not going to sell you that land over my dead body. And I told him, I said, Hey, man, put that off for next year will.
[00:05:22] Cause when you die, your kids, ain't going to want your property, sell it to me. And I might as well you've already said over your dead body. So we're here and he goes, man, he's. He goes, you're you. And as our, he goes, you're a smart ass. Aren't you? I said, man, my dad says the same thing. He kinda laugh. I laugh.
[00:05:35] My wife goes, I'm not doing that. And he goes, I'm not selling you my land. I said, nah, no worries, but we'll will be friends. So, moving forward, we got 21 properties off that first mailing blitz we sent out, Oh man, we sent out 2,500 blind offers when we did that. But 21 properties. And so that was going through January, February, March, April.
[00:05:56] I get that Friday morning phone call from my vice president, HR. I was the chief operating officer. What we call him the Shortline of general manager. So executive level, she calls me says, Hey, I need to talk to you. I was like, HR, don't get there at six 45 in the morning. She knows I get there at six. So she comes in.
[00:06:10]Long story short. I signed a separation agreement. I don't have a job anymore. And I've got this.
[00:06:15] Billy: [00:06:15] What year was this? Justin?
[00:06:16] Justin: [00:06:16] In 2017.
[00:06:17] Billy: [00:06:17] Got it.
[00:06:18] Justin: [00:06:18] So I'm sitting there, I remember it vividly. And I hear in your your backstory, banker to bankrupt there and you having to start over, I know you had a pivotal moment where you sat there.
[00:06:29] And for me, I was supposed to go to a music festival that night. I'm sitting by the pool lights are kind of down. I'm feeling like a loser. I don't have a car. Cause I had a company car, part of my compensation Mo I've got a wife and two kids inside and I'm sitting there like, man, what am I going to do?
[00:06:43] And I was like, well, I got this company. I got enough money to live for the next year. How about I just take six months of living expenses, move it to the side. And then I throw everything else I have at this game and see what happens. And that was 2017. So was April 21st will be four years since that moment.
[00:06:58] And here we are later just turning deals. We've done 500 plus deals in 40 plus States.
[00:07:03]Billy: [00:07:03] That's amazing, bro. Like that's amazing in four years, 500 plus deals. So you said a couple of things that I just want to go back and really suck some more information at you. You said that your partner. Was buying properties, five acres for 500 bucks.
[00:07:18] Like where was the property? Yeah. And so that he was buying stuff.
[00:07:23] Justin: [00:07:23] Yeah. He was buying stuff in the desert. And so like Arizona, New Mexico, Nevada, places like that we have since kind of transformed our business into what we call a bass boat property. But early on, we were sending out a hundred dollar offers in desert counties and we're getting it and people were buying it and we're reselling it for three to 500 bucks an acre.
[00:07:41] Billy: [00:07:41] No shit. So you were tripling, quadrupling small deals. Yep. Multiple deals. I see.
[00:07:48] Justin: [00:07:48] Will you talk about a side hustle when somebody is getting started in this? It's not like an apartment complex where you're thinking all grant Cardone, 10 X, everything make millions and millions, man. If you can hit solid five, $10,000 deals, you do it once a week and your risk is really low.
[00:08:01] Yeah. It's a very approachable niche for the regular person. I mean, we talk real numbers and not bullshit people. 85% of people don't have $5,000 to their name so I can take, yeah.
[00:08:13] Billy: [00:08:13] Scary.
[00:08:14] Justin: [00:08:14] Yeah. So if I can say, Hey here, give me put 500 bucks to work here. You pay for your marketing and stuff.
[00:08:19] And then you can turn that back into $2,500. Now you're talking a number somebody can, they can tolerate. It's a little easier to sell your wife on a new business. If you're only putting after education and all that crap, but just you're buying an asset for 500 to 2,500 bucks and you can get started from there.
[00:08:34] Billy: [00:08:34] So you said something else, which I really want you to go deep in that blind offers. I know, but tell the audience what that means and how you structure your blind offers to go out to sell it
[00:08:45]Justin: [00:08:45] That's a great question. And I'm going to give you the, I'm going to kind of go in a little bit of a tangent, so you can kind of understand why I do and how I do what we do.
[00:08:53] So we have a property type that we call a bass boat property. Basketball property. When you work in an office, you always have those guys that have that extra thing they like to do. Whether it's a ride, their Harley Davidson have their second sports car, have their camper, have their bass boat. That thing that's 40 to 50,000 bucks.
[00:09:10] Then they can afford a 200, $300 a month payment on. So we shop that type of property for the person that lives two to three hours. That wants to go two to three hours outside of their major metropolitan area. Go camp hunt, ride their four wheelers there. Buy an investment for their wife to be okay with, but they can go brag about it on Monday.
[00:09:27] So what we do is we take two to three hours of a major metropolitan area. It says, Hey, we want something. That's got maybe some topographies, some trees someplace, you might hunt, you make fish. And we send out a blind offer. We send a two page letter, that's a piece that introduces us and then a property offer.
[00:09:44] That's got a contingencies in it. And we send them a price like dollars and cents, like right then. So they get it, they open the letter, they go, what did they want to buy my land? They go to the second page. Oh, there's an offer right here. There's actually a contract. We can sign to get this thing moving.
[00:09:58] And so they know what our offer is. The cool thing about this is it qualifies your lead when they call you back. So when you talk about sending out like a neutral letter or a postcard, like a lot of people teach to do. They they call you say, yeah, I want to sell my land. Oh, you want to give me 10 grand?
[00:10:13] No, I want a hundred grand for it. And now you have, you don't have a hot lead. So this qualifies a lead. So if I get somebody to say, Hey, I offered them 10, they call me back. They know I'm at 10. They say, Hey, Justin, I want to sell the land, but 10 is not going to get it. Would you do 15? Now I have a hot lead.
[00:10:27] I know where they're at. We know we're at now. We just got to figure out who can make that deal work.
[00:10:31] Billy: [00:10:31] I love it. It's probably what do you have, like a calculation built into some sort of a spreadsheet that,
[00:10:36] Justin: [00:10:36] yeah , two ways the old school way we used to do it is we would go through and take all the comps on the market figure out what our price per acre is.
[00:10:44] And then we would make that a price per acre then multiplied on 0.3 for doing 30% or 27 or 32%. The fun thing is since we've gotten to this, we have taken ouralgorithm and our pricing and worked with another company. They've started an online tour, a couple of clicks, and I can have a complete state priced.
[00:11:01] It's data, scrubbed and seconds. We worked with real hand in hand with a company called prycd P R Y C D dot com and they've done it. And they pull from over two and a half million comps now. So it's a really cool little tool that we've helped develop. And as such it's made our life ton easier.
[00:11:18] Billy: [00:11:18] And that's P R I C E d.com
[00:11:20] Justin: [00:11:20] P R Y C D.
[00:11:23] Yeah. cd.com. Yeah, those guys are they're brilliant kids. I say kids they're younger than me, but brilliant guys. And they've really taken all the feedback and everything and built this really cool little platform.
[00:11:34] Billy: [00:11:34] And so this thing, what, it's like a, it's an offer generator where you could just plug the information in automatically has the algorithms should be, and then generates the letters and sends it out.
[00:11:44] Justin: [00:11:44] It generates the file that you send to your print house and the print house takes it and the mail mergers it and sends it.
[00:11:49] Billy: [00:11:49] Got, dude, I love technology. The kids today that are getting into this business have no freaking clue how lucky they are, because it is. Easy bro.
[00:11:57] Justin: [00:11:57] Oh yeah. So when we started this, we had to learn how to find properties by reading legal descriptions.
[00:12:01] I don't know if you've ever read legal descriptions before, but Kentucky be like Betty Lewis tree to the house that died into the rock. That's painted green to this, and you're trying to find that out no way in heck, but now we have GIS softwares at work that came from the oil and gas industry that we are able to open and stuff.
[00:12:21] So we can use technology to really help our niche. It's really grown, what we've been able to do as our business over the last five years.
[00:12:27] Billy: [00:12:27] I love it. I love it. So now I want to get into the next thing you said, which well, before I get into that, so the blind offer piece. How many of these are you sending out?
[00:12:33] And on average, how many are you getting back in on a monthly basis saying, Hey, we're in the same ballpark. Let's negotiate. Make this deal happen. What are those numbers?
[00:12:41] Justin: [00:12:41] Yeah, that's a great question. And so it kind of depends on your asset class. So I want to, when I make this, when I say this number, somebody's gonna say, well, Justin said one for a thousand.
[00:12:47] Well, If you're doing the cheap desert stuff, you get better than one for like 400, 500, you get back and you're going to get a deal on the asset class. We're in we're about one to 1000 right now. So I close it for every thousand blind offers. I said, I'll close on one deal. . And if I go bigger than that, and I go into like a bigger, higher end properties, typically about one for about 5,000. So your costs in that one letter is about 46 cents, depending on how many you buy 50 cents, you just call it rough math. So, $2,500 into a deal that you're going to make 20 or 30,000 bucks on is not too bad.
[00:13:16] Billy: [00:13:16] So your average deal right now is making you yelling how much
[00:13:20]Justin: [00:13:20] right now our ROI over everything is 135% return on investment money in money, out to about a hundred days. So, yeah, so a hundred days in and out that's money wired in money, wired back out, and we're turning them at 135% ROI.
[00:13:34] Billy: [00:13:34] Got it. So earlier, when you were saying that you did 21 properties with 2,500 mailers, that's that small. Crappy desert shit.
[00:13:42] Yup.
[00:13:42] Justin: [00:13:42] Yeah, we offered $125 an acre there about 21 properties off those 21 properties we made about $70,000, which
[00:13:51]Billy: [00:13:51] I mean it's $500 investment. I mean, young guys right now in the hard real estate space, single family.
[00:13:57] They're not making that at all. I don't know where you're going to spend 2,500 to make 70 GS. Yep.
[00:14:03] Justin: [00:14:03] Yeah, no, we send 2,500 letters out. We spent 1200 bucks in marketing material, so yeah. And I want to make sure we have a 50 cent bark, but it's yeah. So, I mean, you think about that at a scale. It's like, okay, well I could build out a team and deal in nothing but that and just keep turning out.
[00:14:17] And there's a lot of guys that do that business for me. I like looking at stuff a little bit different and putting my money to work on better deals to have a little bit better asset class. So we buy these ranchettes that. We're buying our average purchase price is about 15 to 20,000 bucks and we're selling them for 45 to $60,000.
[00:14:33] And we just continually turn those one a week. And that's a good living to me. We able to put that money to work in other things and keep moving.
[00:14:39]Billy: [00:14:39] I mean, look, man, you seem happy. You seem no stress on your face, a big team, a small team. Like what does your team look?
[00:14:46] Justin: [00:14:46] Yeah. And that's so we've got, since I've got several different legs of the business, everything is set up with professionals that are kind of, I want to call them a subcontractor, but that's essentially what they are.
[00:14:56] Like my phone services. I have a service in Florida, the answers, the phone, 24 hours a day. They emailed me the lead. So I look at it from there. I do a four step due diligence piece and it goes to a title company to handle the back end. So , they get paid per product that they do. My marketing team, I typically use a land broker in the area.
[00:15:12] I have the channel set up to do it myself, but there's a way to leverage a buyer's list. And so you'll have people that work on these small, these smaller crappy properties, and they'll have build a buyers list and do all this stuff on Facebook. I've taken the stance. That it's easier for me to use a professional in that area that has a buyer's list.
[00:15:29] They have all the channels set up. I will help them with some marketing material. Like I'll go get a drone or a drone, a video for them. So they have that marketing material and then I'll geotarget with Facebook. So the old neighbor letters, if you will, I'll take those and put up a geotarget 50, 50 mile radius around the property itself, and then the major metropolitan areas, and then boost those posts.
[00:15:49] But I drive it back to the agent versus coming to me. So it's my company name, going to the agent and he gets all or he, or she gets all the leads and they handle those. Not me.
[00:15:59] Billy: [00:15:59] I love it. It's brilliant. Let's talk about let's educate the listeners out there on how you go about building out your lists of front and these people, like, what does that process look like and what does it cost you?
[00:16:10] Justin: [00:16:10] Okay, that's perfect. That, so we use a service data tree. The price has that program as well. They're hooked into an API feed with data tree, but data tree is a first American company we're allowed to pull. Essentially a list for almost, I think it's 98% of the counties in the country. So you can say, Hey, if I want this state or I want this County and I want between 10 acres and a hundred acre properties, I want the owners to be out of state or out of County.
[00:16:37] I can select all that and it builds it and shoots it out on a raw excel file for me, the cost on that there are different tiers depending on what you do. I pay anywhere from three to 5 cents a name. And it comes out
[00:16:46] Billy: [00:16:46] for relatively inexpensive and that will gain the things we've been using data tree for years.
[00:16:52] They're a great company. You can't say anything. Good stuff about them. We use it for a different piece, not for really land, but they're a great data company, man. They have everything you could possibly imagine. You're going to need. To build your list. And like, now that we're on that, let's just take our time to like, talk about this when you're going to do real estate investing.
[00:17:09] Right. The number one thing is marketing is the lifeblood of every business. And so in your niche, just like in, if you're going to be buying and flipping or wholesaling or whatever you think is land development. It all comes down to marketing to the people who are going to be responsive to sell building your list is the foundational basis of every type of marketing program.
[00:17:30] If you don't have a good list that you're going to be able to target and go after you basically pissing in the wind, right? I mean, it's going to be a good feeling. You're going to get all wet and stuff. If you're listening and you're getting into this business or you're in it, you want to start growing and scaling.
[00:17:46] Getting your lists dialed in is the foundational most important thing that you can do once you get that list. And I want you to listen to what Justin was saying. He, then he has his message to market. He does a blind offer and sends it out specifically talking to those landowners and he's getting one out of a thousand.
[00:18:04] I mean, neither present for a $1,500 investment. Like you said, you got 21 properties yielded 70,000 brother. Those numbers are like serious dollars in the world we live in today. And I don't know if these numbers are panning out for you now, but I know where our world with the marketing dollars that we're spending, if you're getting three or four times your investment thousand in 4,000 out, that's like great numbers right now, back in the day.
[00:18:30] We would do a Google. We were doing a telemarketing, we were getting seven to 10 for every dollar we were spending of a tournament. I'm not seeing that these days. Are you still seeing your numbers at that? Like, yeah.
[00:18:43] Justin: [00:18:43] So my, my product type is the asset class I'm buying now has changed a little bit, like, so for instance, those range from five acre to 40 acres in the desert the last mailing campaign, I'll just say the last Q4 last year.
[00:18:54] We sent out 9,000 pieces of mail and it yielded back about $210,000 in profit because we went from which push you a $4,500. Yep. Yeah, so, but, and that came from, we had six deals off one, 3000 plot and they were 90,000 and then another $150,000 profit off another one, big ranch. So we think we were able to pick up you hit the nail on the head.
[00:19:20] When you say you have to identify your niche and what you're looking for and understand that scalability of it. So your inbound pipeline is your lifeline for real estate investing. So how do you fill it up? Like, what are you doing? And for me, like you said, as blind offers. But identifying who the person is, that's typically going to sell to you.
[00:19:36] You're not going to buy a property from a man that has two acres yielded off and he owns it 160 acres next to him because that's what he makes his money off of. His cows is his, family's been there, the generational land that the people still live on it. They have an emotional attachment to it. And so then you get kind of into the house flipping thing.
[00:19:53] They're only going to sell if there's a really big problem. Now, if you take a owner that lives out of state and has raw land somewhere else, Their emotions. Aren't really as close to that piece of land, unless they just bought it. But you have somebody that you're looking for that opportunity. And a lot of times that's grandma left this to mom and dad who left it to kid.
[00:20:13] And if you can figure out how to fix the deeds because they didn't do it right in the, will you opened up a whole nother leg. And last year, what saved us through COVID is we knew how to do that in the state we were working and we spent a ton of money on a, we sent out a 50,000 piece mailer. So we spent after data, phone calls and everything costs us 30 grand to run this piece of mail.
[00:20:34] We ended up making 210 grand back, which is low for us normally. But the day we hit go, five days later, COVID hit and shut down everything. So we had 280 people tell us yes, that they wanted to sell to us or counter offered. But we couldn't get them close because you couldn't get into the counties to do the abstracting.
[00:20:53] So they just kind of fizzled out the lead, spins it out and we could never get them done. We couldn't get into court to get the deeds cleaned up. But with the five, we were able to ended up making 210 grand off of it.
[00:21:02] Billy: [00:21:02] So I'm hearing you listen, seven times your money is still phenomenal in our world. It's like home run, right?
[00:21:11] So you said something unique, two things that I want to make sure that your audience listen. You said your lists you're really going after out-of-state owners. So that's where the theory for your avatar. And then you said you're looking to solve problems. So is there a way that you target these people who may have title issues?
[00:21:28] Is there something free or no, it's just kind of like the mixed stuff that comes.
[00:21:32] Justin: [00:21:32] Yeah. So the data doesn't really tell us that because you can't see it. It, grandma still shows on the title, but she's been long gone. It's hard to get that out of the data, just coming out of data tree. So it's knowing what to do when it comes back and you see it and you're like, okay, Hey, it says Thelma Louise, but this is John reaching out.
[00:21:50] Hey, John who stumbled his L that's my grandma. Yeah. She passed away. She gave it to my parents and parents passed away. Now, what can we do? And every state is specific on how you can work around that. And knowing that little piece is it helps you, save a deal that you would've just turned away because, Oh, I can't fix it.
[00:22:05] I don't know how, or you spent some time maybe invested with an attorney in that state and said, Hey, I got this. Can you help me with that? Some States it's easy. Some States it's really tough.
[00:22:14]Billy: [00:22:14] So do you do you leverage genealogists at all to go through and assist you with figuring out the title issues and be doing a family tree?
[00:22:22] And making this come to fruition.
[00:22:23]Justin: [00:22:23] No some of the States you will, you can use like affidavit of airships. Like it's like, Hey, this is, they fill that out for you. Other States, we can quiet the title. We can say, Hey, we can do it this way and be able to work around. In some States you just have to get other people's signatures and you're like, Hey, we've got to have a quick claim deed, a quick claim deed from everybody here.
[00:22:39] So we can get their rights over to one person and let them sell. Sometimes it's easy. It's like an estate's there. And we just got to make sure the estate still can sell the property. Sometimes the work's been done and they just didn't realize it. And we're able to do that. Sometimes it's a probate, get there, turn the wheels, probated.
[00:22:54]But it's all very state specific in what you can and can't do.
[00:22:57] Billy: [00:22:57] Yeah. Yeah, for sure. So I know in New York, New Jersey we solve like mega title problems. Like that's our niche. We know when we have a seller who's looking to sell and there is a laundry list of issues with the title business. Well, the title side, we come in and we'll invest 2,500 to $7,000 in some cases to pay on their behalf because they don't have the money to do this, to solve the problem.
[00:23:19] Some of these cases, Justin, it takes us six months to a year go through an unravel. All the bullshit, but I can tell you firsthand that when you come in and you put on your problem-solving hat and you have a way a means in which to get the cash, that's tied up in those properties, which they can't access because of all these legal title issues, when you're able to solve those problems.
[00:23:41] You're going to make ridiculous and legally . You should make a big fat payday because you're coming in and doing what others cannot do sell is a, still getting a very fair offer. You have the know-how the knowledge of how to actually come in and fix that's where you make your money. So think about it like in the world of.
[00:23:58] Of healthcare, your general practitioner, your doctor who went to school, that's a general practitioner. Let's just call it. He's making $150,000 a year that would go to their brain surgeon. Who's a specialist, this got $150, $150,000 for six hours of work. He knows. Right? So it's the game in which we're playing in.
[00:24:18] The point I want to get across to the listeners is when you're getting into this, if you become a problem solver, if you really understand. The nuances of how to really go in deep and solve problems with us, New York and New Jersey. When we have title issues, probate side, we have a state issues. We first go down the road of hiring a genealogist.
[00:24:36] That person is going to do an in-depth understanding of exactly who's involved with the family tree. Because the first we did was untied the deal. No, who the heirs are. Sometimes we go nine levels, deep, grandkids had grandkids, they die. They had kids, the forces when you invest that much time and energy and money upfront going through it, and then have the understanding of on the legal side, how to unravel it and address it.
[00:25:00] You're learning. 1520 $25,000 renovation deals into 150, 175, $200,000 profit deals simply by solving problem.
[00:25:11]Justin: [00:25:11] You're exactly right. You're exactly right. We see that it was somebody early on said, if you can figure out debts on a deed, you have a million dollar business. And so from coming from corporate America, where my day started at five in the morning.
[00:25:22] To going on my own from five to six in the morning, I spent an hour a day Googling and just things like that. Okay. If I'm working in Oklahoma, what is the process to clean up the title in Oklahoma? What is a deed protected property and how to fix those type things? So if I had something that was given.
[00:25:38] To an Indian back then or native American given to them and their heirs wanted to sell it. How could I unravel it to sell it? What is the process to do that? Because the normal investor looks at it and they go, Oh, it's protected deed. They can't sell it. Well, no, they can. Life is not designed to where you just lose property.
[00:25:55] It's designed for it to move. You just have to understand
[00:25:57]Billy: [00:25:57] the steps, and the legal mechanisms in order to make that happen. You just, bro. That's why you're doing it as well as you are because you're peeling that onion back and you go in levels deep. You have not brokering land.
[00:26:07]You're really solving serious problems. And you're also systematized. I mean, look, you came in and you said you're, it sounds like you're a single yourself and your partner. It's just you two guys doing this, a lot of subcontractors that are doing all the heavy lifting for you. Talk about, you touched on it briefly, the whole backend.
[00:26:25] So you're you, pre-selling your properties. You have your buyers list. Are you like. Predesigned and you do it like reverse wholesaling land or
[00:26:32]Justin: [00:26:32] no, I don't. We have some buyers that we know work, certain areas we'll reach out to, but what we've started doing over the last two years where we really saw our profit margins rise was coming straight to market with it and using a land like using the top land brokers in those area.
[00:26:45] And so I, for instance, I have an agent in Oklahoma, she sold 25 properties for me. So when I call her, she knows she's going to make money. She's like, Oh yeah, Justin's got another one for me. And so she'll look at that and she'll go out of her normal area just because it's a deal that she knows I'm easy to work with.
[00:27:01] She knows, I know what I'm talking about. And I'm going to tell her, Hey, this is what I think it sells for. She'll double check the comps and be like, ah, yeah, I think you're right. Maybe we go a little bit higher, but I know you don't want to maximize, just want to turn it. And so it, you do that in enough areas.
[00:27:15] You start to build those relationships with the,
[00:27:16] know,
[00:27:16] Justin: [00:27:16] the top companies at the top brokerages is so that they help you out a little bit more than just, being Joe blow off the street,
[00:27:22] Billy: [00:27:22] bro. It's all about the relationship. If you have yourself, all a team of people who are a players and how to execute like I, the last week and a half on Facebook, I've had maybe a half dozen people cause I'm posting about deals.
[00:27:33] We're doing like, Oh you're killing it. And I'm like no, I'm not killing it. My freakingteam is killing it. This ain't the Billy show like guys and girls, I have working with me, understand my vision, believe in my vision. And they execute at the highest level because of their company successful.
[00:27:49] And whether it's a vendor, it's your employees. It's your tenant. Nine subs, whoever it may be. They're part of your team. And without them, without. Having them support us through, like, we wouldn't be doing what we're doing now.
[00:27:59] Justin: [00:27:59] You're exactly right. My print company that we've, we put 500 clients into their company.
[00:28:05] We're their number one non-employee sales company for them because it's so many people run for them. Like we had a live event last year. She's like, Hey, I have to be there so I can at least buy everybody drinks, so she came, flew out and happy hour for our live event. But I talked to her this week and she goes, Hey, we've got this thing.
[00:28:21] It's been bothering me. I said, well, here's what I need. Cause I'm putting together. A little direct mail thing. I said, I want to have pricing options because right now we have one standard pricing option, but , we have people that do it a couple different ways. Can you make this for me within a two hours?
[00:28:34] Her art department put together new graphics, it's already priced and everything is back to me. So I have it ready for my clients so they can make little tweaks to their business if they want to. So like you said, having the best in the business. On your team is what you strive for. You don't need to build out 30 employees, if you can put the right subs and the right people, the right vendors in place that understand that the vision and what we're trying to do.
[00:28:54] Billy: [00:28:54] Agreed brother agreed wholeheartedly. I agree. So let's get into your podcast. What is your podcast about?
[00:29:00]Justin: [00:29:00] it originally started as our journey as land investing and we talk about the different things we've touched into early on, it was all about land, but we started using. To do a little bit more with like a process of buying a little 47 unit apartment complex with seven units to add I've used blind offers to buy multi-family before, just use a letter of intent with a price against it and see if we can get the door open to, to go through the inspection period.
[00:29:24]My partner, he said he is a real estate real estate agent as well. And so this year we started to use some of the tricks that we used in land for him as an agent and, geo targeting for leads to come in. And he doesn't go knock on doors for it. They come to him and it's been amazing to see his business take off this year.
[00:29:40] So we're doing that. We it's, we're talking about the big developments we're doing now. We've got two big subdivides going on. One of them is huge and we're about to close on it and we've already got buyers lining up for it. It's 2,424 acres that we're splitting up into ranchettes, half million dollar ranchettes.
[00:29:54] Billy: [00:29:54] And if we building that out, what's that building it out.
[00:29:58] Justin: [00:29:58] I know roads Wells for each place in power for each place, but that's it. Why didn't it sell away in two off? Yup. Yup. So, yeah it's, I don't want to call it a paper subdivide because we are doing a little bit development piece, but you know, we're buying it like 1350, an acre and our under, we underwrote it at 2100 with comp show 2,500 bucks.
[00:30:17] An acre is what it should go for. So 2,400 acres like that, and you got buyers lining up already. The cool thing is it's it fits a niche and Texas, we have a lot of people that like to hunt. You have seasons. don't know how much your listeners know about hunting, but you have seasons, you have white tail, big deer.
[00:30:32]But in Texas you have some exotic and you can hunt them year round. So if you're a business owner, a high net worth individual, and you want to hunt year round, cause you want to take your clients or your friends out to your ranch to hunt. We have what's access and Barbado sheep out there, so they can hunt those year round.
[00:30:46] And so they have the big white tail it's game managed and they also have these other exotic, they can hunt too. And so we're taking a three and a half million dollar property and bringing it down to them for a half million dollars. But when it's all said and done, it's it underwrites out between 52 or 5.2 and $6 million is what comes back to us.
[00:31:03] Billy: [00:31:03] Did I can't, congratulations on your success or you've been doing this for four years. Like the world of real estate investing, I would consider you. On the newer side. Yeah. I agree for new because you're absolutely fucking crushing it. What did you earn over the last? You said, I think the last time we spoke, it was like $7 million.
[00:31:21]Justin: [00:31:21] We've $15 million worth of real estate for about seven and a half million. And so, you pay out partners and you come back and forth. So it's been, the kind of everybody that, that dream I'm 39 and my dream early on, because I grew up kind of meager, I'm not going to give you a whole backstory about growing up hard, living that life.
[00:31:38] Looking back. I had what I needed, but it thinking about this earlier, I was like, as you get on these podcasts and you hear the person, all my childhood was so rough, didn't have Christmas presents. Didn't do this. Didn't know my dad didn't he's like that. But that forms who we are, that, that pressure early on and having to still know that you can be successful in whatever it is.
[00:31:56] So, yes, we've generated about seven and a half million dollars in equity doing this in four years. But I don't ever look at it as how much cash is sitting there because I put it all back to work. I mean, I still need to eat and still want to go. So, but now we're at a point where at Christmas, this year I had a million dollars in cash out working or all land.
[00:32:12]You start peeling that off and putting it into other projects, do is subdivide. You do try to buy an apartment complex, start building mailbox, money. We have out, we have about 50 mortgages outright. Now that we've got on land deals that are coming in every month. So, we're building that mechanism to take that equity and put it to work and.
[00:32:28] And start to grow that passive piece as well, because at the end of the day, I think we all want, we know time and freedom is the ultimate goal. But to do that, you, we forget that you have to have money compounding to do that. And so you've got to put that seed money in there.
[00:32:41] Billy: [00:32:41] You're being very strategic with the way which you're leveraging the cash that's coming in.
[00:32:46] So you guys, Justin, and you said you're 39. So a lot of guys that get that start making money in this business at any age, generally, it's the younger ones. Sometimes you see in the thirties, you see it in the fifties because
[00:32:57] they
[00:32:57] they
[00:32:57] Billy: [00:32:57] they're a lot wiser, but they come in, they start making money and instead of them reinvesting it.
[00:33:02] Into their business or into assets that are going to give them a return monthly. They buy the fucking cars in front of me is X. And look, it's, I'm not against that. I love it. I love the good life. I love that stuff. There's a time to invest. It should even say invest. It's not that this is a time to spend your money on that.
[00:33:21] And it's not in the early stages of building your business in the early stages. Live meager live below your means, invest every dollar possible. And I wish I would have taken this advice when I was twenty six years old. And I grew that mortgage bank because I was pissing my money when I had houses all over the country.
[00:33:38] And it wasn't, you weren't investment homes. They were second in third homes and fourth homes, homes that never got used. So it's smart that you do it. Talk, if you will. On your strategy. You said you have about 50 mortgages out. So tell the listeners on what you do. I know basically what it is, but I want them, I want you to tell them you're taking these, this property down and instead of the people buying it with their own cash, you're acting as the lender.
[00:34:02] Justin: [00:34:02] Yeah, that's great. So I told you earlier, I typically offer 27 to 35 cents on a dollar for a property. When I go to market, I will always offer owner financing and I offer it with 30% down and offer 10% interest and I'll hold the note for 12 years. So this person, as long as they come with, there's no credit check depending on what they're wanting to do with it.
[00:34:21] Whether I go traditional, like. Deed of trust or actual mortgage with it where I do, what's called a land contract or a contract for deed depending on what term you like better. So we go either way. But what that does is it allows me to have another exit strategy of the property. So if I'm getting 30 cents on a dollar down and that's typically what I paid for it, and then I'm taking my profit and saying, Hey, over 12 years, you're getting into 10% interest.
[00:34:43] With amortization the way it is, you front-load that profit and you're just, you're killing it for the next 12 years. We get those built in. You have mailbox, money coming in. You have your original money that you had to work with and you go back to work with that, but you get that other money just turning and it's more, yeah, it allows me to kind of save a little bit because you hit something that I love is I'm a car guy.
[00:35:03] I love cars. Like if you, if, but I hold myself back every month from going and buying a super exotic, just because not because I want to flash it. I just love the visceral experience of cars. I've owned a couple of 65. Shelby Cobra is like backdraft models. The cool the 2015, Z 28. I've owned several cobras and Mustangs and just things like that.
[00:35:24] And so right now I have a 92 Fox body. That's a, it's a summer edition car, 30,000 original miles. But it's just because I like cars. I drive a Raptors, my daily drive, but you know, that's a business expense. It's, I'm a land company, right? It's over 6,000 pounds. I got to go out and check the land sometimes.
[00:35:41] So th there's different ways to do that. But, I always tell my clients to turn your money three times before you go out and make that big purchase, because what seems to happen? I have a joint venture company. I was the first in the country to say, I will joint venture with you on a raw land deal.
[00:35:56] Based on the merits of the deal. That's it. I don't need your credit. You're just not alone. You bring me the deal. If it three, to, if it's worth three X, I will put the money up for it. You sell it. We split the profit 50 50, and we were able to help so many people doing that over the last three years that.
[00:36:12] The most common thing happens is they make that first flip. They make 10 grand, they go take their wife on vacation. They go buy this wheel or the wheels for their truck, or they go do something that they normally wouldn't have been able to do versus taking that 10 grand, putting it back into marketing and calling me back St.
[00:36:27] Justin, I got three more properties now let's do another couple of deals. I've got one guy that's done exactly what I listened to. I think last year, We did nine properties together. This year we've already closed three together. Like we bought and sold, went through the sales cycle, but he's doing them on his own now.
[00:36:42] And that was the whole intent was like, Hey, we'll get you up and going, you put your money back to work, keep it going. And so when he calls me when he has either a tricky deal or a deal, he just can't afford because he's got his money out, working too much right now.
[00:36:53] Billy: [00:36:53] It's a smart way for you to do more deals by leveraging yourself and partnering up with people.
[00:36:58] We do the same thing, multiple States. And I know in the beginning, like I know it's only a matter of time before they understand what they're doing. They do it on their own. They still, if you build that relationship, I still have deals today that I'm doing from guys that I started. Eight nine, 10 years ago.
[00:37:14] And there's JV with me for one reason, because when they have a problem property, we can solve it. Or if they have a property that needs a lot of cash, they know we come in. And we could do a turnkey deal with them. We could put the money up, we can analyze the property, negotiate with the seller. If we needed to negotiate with the seller, take the property, renovate it, do everything, car blanch, and then come up with a joint venture, split the profit and it basically just bringing the deal in and then hands off, it's a win for them.
[00:37:41] It's a win for us. It's a smart way. To build your business and, look, there's no better feeling than getting people started in this business, whether they're on your team full time and you're showing them how to make money or you're Joint Venture, with people at the field, it's a great feeling to be able to.
[00:37:56]Educate and then watch them actually execute, educate them.
[00:38:00]Justin: [00:38:00] It's a great question. There's two cool things. I've got two cool stories on just deals like that. One of them, the husband had done a few deals with us and his wife told him these people have made you so much money.
[00:38:10] They live in New York, we're in Texas and we're having a live event here in Texas. His wife says you need to go down there and see them. You've they've made you so much money. You can buy a plane ticket and go spend a night in a hotel and see them guys. So he comes down and his wife comes with him and then she tells me that you gave me my husband back.
[00:38:24]That to me is where you get that fire back. And you see that, that growth. The second one is I did a deal with a guy and I didn't know his personal, like what he's going through. We did three deals real close together with him. And I hadn't heard from him for a couple months. I was like, Hey man, just send him an email.
[00:38:36] Hey man, I wanna check on you. Haven't heard from you in a couple of months. You just hope all is well. And he said, dude, the three deals you did with me gave me enough money to get my daughter back in custody. She was in a really bad situation with her mom and I got her back. I just wanted to tell you, thank you.
[00:38:47] That's the only reason I wanted to flip a few pieces of land. You gave me the money to do it. I got my daughter back and all is well with the world and it got killed it, but it changed his life and it changed her life and impacted it. And so. For me, I came in as if I could impact somebody's life and make it a little bit better than I did my job.
[00:39:02] I don't care money, whatever it might, my kids are getting to see me more because I'm home. Now, my wife gets to see me more because I'm not chasing that corporate wheel, but at the end of the day, it's that little bit of extra that we can put back out in the world to hopefully impact multiple people.
[00:39:14] Billy: [00:39:14] That's what it's about, bro. It's about giving back and impacting lives, but you have been gracious giving me 40 something minutes of your time today. I know you have a product, you have a product in the land space and whether it be on Billy secrets.com, would it be any elite for the listeners? And I don't know what you give a discount or whatever.
[00:39:30] Justin: [00:39:30] Yeah. And so we're not going to talk, we've got a land flipping blueprint. If you want to learn how to do it, we're knocking 500 bucks off normal price is 24 95. I think it's 1995 on there for your listeners. I'll get you the link for that for it, we, even if you're one of those people that says, Hey, I don't know that this, I have a, have an ebook out there.
[00:39:46] It's nine bucks, nine 99. It talks about buying. Real estate for the price of your coffee a month, spending 50 bucks on a piece of real estate, we made a ton of money early on doing this. We buy property from the state of Arkansas for 50 bucks, sell it on eBay for $500. I had an employee that was her full-time job.
[00:40:03] It was to do 20 of those a month. That was where she was getting it. Me and her split the money 50 50. When she, I put up all the money, she just sit back there and she'd make it. And she got paid when she sold them and she enjoyed it. She has since moved on and helped another guy build his land company, but, and they do really well.
[00:40:16] We're actually doing a subdivide together in Texarkana, but you know that for your listeners, we get that $500 off. If you like what we hear a casual Friday's rei.com casual Fridays, REI is our podcast. It is every Friday. Now it used to be three days a week. And like I said, there's 325 episodes.
[00:40:32] And they're short, they're 15 minutes. They're designed for you to listen to on your way to work. So I do appreciate you letting me come on, Billy.
[00:40:40] Billy: [00:40:40] Yeah, Justin, listen, man, you and I did not know each other before this, but I think we're going to definitely remain friends because you're individual you're a giver, you're a hustler.
[00:40:49] And you're somebody who persevered, you lost your job and you didn't allow that to define who you were. You actually went out. You wanted to do so love getting to meet you, bro. Love a great show. You brought a special little niche to my listener base. Cause you're the first guy. You always need
[00:41:08] Justin: [00:41:08] somebody to come in and do it better, but we've been doing it for awhile.
[00:41:10] So we kind of got an idea what's going on.
[00:41:12] Billy: [00:41:12] It's great brother. And listen, if I could ever help you with anything, if you ever need any help at all in anything JV, go deal. Something comes across your desk. Hook up with me for sure, bro.
[00:41:21] Justin: [00:41:21] Likewise. Likewise.
[00:41:22] Yes, sir. Thanks.