Episode Transcript
Speaker 1 00:00:20 Hey, everybody. You're kicking it with the homeboys and the Homeboys podcast where we talk everything In the world of real estate investing, whether you're just getting started or a seasoned vet, we're gonna give you over 40 years of combined real estate experience to help you on your investing journey. Today, we've got a really exciting, knowledgeable guest. We are talking with Pete Reese about how to make money and build wealth through the power of real estate. His podcast called The Turning Profit Podcast is an amazing one where they highlight land investment and him and his wife actually get along and do it together. Mm-hmm. <affirmative>. So we're gonna talk a little bit about that. So, uh, Pete, how are you? We're excited to have you on the show.
Speaker 2 00:01:04 I'm doing great. Well, thanks for having me, guys. I'm excited to be here.
Speaker 1 00:01:07 We're ex we're excited to have you. And we talked a little bit before we went on the air, and Scotty, you know, mentioned it. We don't claim to be, um, the land experts also. So we're, we're excited to learn today from you. And, uh, we got to, we got to talk to you a little bit about, uh, the amazing part of the country that you're based out of, which is San Diego and Scotty and I told you how jealous we are <laugh> to be stuck here in Indianapolis talking to, to someone out in beautiful San Diego. But, uh, but anyhow, why don't you, why don't we just start off with, uh, you telling us a little bit about yourself?
Speaker 2 00:01:43 Sure, sure. Well, I appreciate that great intro and yes, I can't complain about the weather here in San Diego. Ah,
Speaker 1 00:01:49 It's so nice.
Speaker 2 00:01:50 Yeah. Yeah, definitely, especially this time of the year really, um, really sets itself apart. But, uh, as far as real estate goes, I've been kind of in real estate since about 2002. Uh, when we started, um, flipping homes, my wife and I, we would buy homes and we would fix them up and resell them, um, kind of flipping homes before, you know, before it got real popular, I guess. Yeah, it still was a little bit popular. There's was some shows on tv and that's kind of how we got hooked on it. But, so we started doing that for a while, and that was going great until the, uh, market crashed in about 2007. And, um, we decided kind of at that point that flipping homes was not the best thing because the buyers had all disappeared. So we, uh, luckily a couple years before that, I had actually gotten my broker's license, and then I figured, well, I'll just transition into what's working right now.
Speaker 2 00:02:43 And, and what was working was bank owned foreclosure. So I kind of put all my focus into listing those type of properties for the banks being an r e o listing broker around here. Mm-hmm. <affirmative> did that for a number of years, and that, that kept me busy at a time when a lot of people in real estate were struggling. So I was thankful for that. Not a great business, uh, in my opinion, but <laugh>. But it's, uh, it was an interesting one and a lot of interesting stories from that. But I ended up working with, um, through that I ended up getting connected with a lot of large investment companies that were buying properties that they could then flip or hold as, as rentals. But, so I was, for a while there, I was just finding them deals. And that was kind of my focus. Got outta real estate, uh, kind of all together for a number of years, working with my wife on a business, um, about blogging and blogger training.
Speaker 2 00:03:30 So she had been, uh, had a blog for many years and she had a lots of people always asking her about how to do it and about blogging? Blogging, yes. Oh, wow. Yep. Okay. Like travel blogging and lifestyle blogging. So, and, uh, yeah, so we developed a whole business about training business around that. And that, uh, became really, really successful and had thousands and thousands of students. And, uh, and with that as well, we started really getting into the travel blogging side of things. So as a family of five, we were traveling the world about 150 days outta the year for almost five years
Speaker 3 00:04:05 Straight. 150 days out of the year. Yeah. With with your family.
Speaker 1 00:04:09 Yeah. I looked at your bio up on, um, on online and it, and it did say world traveler. So I'm, I'm, I'm seeing where this, that's an understand where all this comes in, and that is an underst
Speaker 3 00:04:19 World. Travel is an understatement. <laugh> Okay. Sorry. Keep going.
Speaker 2 00:04:22 We were, we were really into the travel. Yeah. Wow. And it was, it was a great time period and kind of covid when that happened, that kind of put the brakes in all the traveling. Yeah. And, and then at that point I was like, well, you know, I'm kind of feel like that chapter is, uh, I was getting kind of, um, maybe a little bit burnout on that side of things. So I knew I wanted to get back into real estate and real estate investing, and I was just reading online about some different models and things that I could do, stumbled into land flipping and started reading everything I could about it. I w I, you know, I noticed people talking about, Hey, I bought this property for 10,000 and I sold it for 30,000. I only held it for, you know, 60 days. And I thought, well, that's pretty cool.
Speaker 2 00:05:04 I could, you know, have like those triple your money type returns like that. Um, so I bought a trading course and I kind of went all in on it and started, you know, sending out mail, which is how you generate your leads in this business. And, uh, did our first deal in March of 2021, and then ended up 2021, did about 1.2 million and some change in revenue at about 50% gross profit margin. Nice. So on average, you knows, we're trying to double our money. Yeah. Okay. So any, yeah. So if we buy a property for 20,000, we're trying to net 40,000 after all is said and done. So. Well,
Speaker 3 00:05:39 I have so many questions from your background, but, but I wanna Sure, yeah. I wanna point out something, point out something first to, to anyone watching this, this entrepreneurial spirit that, that you're seeing here is someone who makes a new plan. He wasn't given anything. He, he comes up with these, these new plans each time and then executes 'em. And, and that's the spirit that we see in a lot of successful, we're very lucky that we get to interview folks and meet with people who have these, you know, do some really neat things like you're doing now. But your background, I find even more fascinating, the fact that you, um, kind of have started from scratch multiple times, and you go out and you make it happen, and you, you admit it. You didn't have all the answers on any of those times, and you went out and did it. So that's, that's very fascinating. You know, I, we can relate a little bit. I started in 1998 and him in 2001, two. Yeah. We're real, real estate.
Speaker 2 00:06:35 We're the same time
Speaker 3 00:06:35 There. Yeah. Flipping. Yeah. And, and we, we got our, our lunch eaten, you know, in the same crash you did and, and found our way through it. But, um, it's, it's interesting that you've landed on the land right now, because I just watched a Steve Harvey clip that I found really interesting. He said that there's about six acres per human on the planet that, uh, of land. And he said, anyone that doesn't own land, I think to myself, I'll take your part. I'll take your six acres. I'll take your six acres <laugh>. There's a lot of really smart people out there that are really starting to believe in land. Not just the flipping it, but even the holding of it, which I know that that's hard to get returns. You gotta have some wealth to be able to do that. But, but nonetheless, I think this is a topic that's really interesting to a lot of folks, and they don't know how to, how to turn this into a profit center land. They think, okay, it's land. And you've found some ways to do that. So I definitely want to touch on some of those ways. Again, you talked about holding it and then flipping it. So you look for deals. Do you wanna dive dive into that a little bit more and how you found, find them?
Speaker 2 00:07:36 Yeah. So the, the whole process is, I mean, it's, it's pretty simple in a way. I mean, we generate all of our business with direct mail, and we put a list together, and this is kind of a big general list, kind of a shotgun approach really, for, we'll take a particular state and, and maybe a number of counties within that state. And we will build a list based off of just kind of the acreage size and vacant land. And then we will kind of filter out the obvious non sellers, you know, maybe like a utility or a railroad or something like that. And we'll send out actual offer letters to these people based off of average prices per acre in that particular area. Now, obviously, it's a pretty aggressive offer price. Um, but that gets the phone ringing. And, um, then, you know, we kind of work out deals when people respond and we look at the properties in detail and kind of figure out like, Hey, this will work, or, you know, we need to get it for this price in order to work.
Speaker 2 00:08:32 We go through a, you know, an escrow and a title company and, and purchase everything that way. And we have a due, uh, you know, a whole big due diligence process that we go through as well. And then we'll close on these properties with cash, with our own cash, and then we'll do some kind of minor value add stuff to 'em. Sometimes could be clearing some brush, it could be getting a survey done, could be getting a perk test, something along those lines. And then we'll put 'em on the market right away and resell them, and we'll put 'em on the market at a price that's also pretty aggressive, meaning it's slightly below retail in order to get a quick sale.
Speaker 3 00:09:06 So you, you don't, it sounds like your due diligence, a lot of it's done after the fact, uh, you know, you're doing perk test to see if you can put in septics or whatever else the perk tests are for and, and clearing them to maybe make them more attractive to developers, basically, it sounds like. Right, right. So you're buying raw, but
Speaker 2 00:09:22 Yeah. Yeah. I mean, a lot of our end buyers we're, we're buying stuff that's pretty rural generally, so they're out of the towns or the cities. So a lot of the end buyers end up being, you know, an individual looking to buy either a recreational property or a potential home site for them, or, or maybe, you know, buying it, thinking that maybe someday I'll build here, that type of thing.
Speaker 3 00:09:43 But it's funny, Clinton and I spend, uh, we've both got these searches set up all over the state of Indiana for, uh, I wanna shoot, I, I like to shoot and I need a certain amount of acreage in order to shoot and not bother anybody. So we've got these, these, uh, these researches set up and, and he'd like a cabinet at some point. Um, and it's, it's amazing to me how expensive something that has already kind of been researched and is to the point where you could build, and all of the, the unknowns are known, you know, someone's already done all of those soil things that, that, it's amazing how much value add that is to a piece of property. So that makes a lot of sense. Um, do you ever get into a situation where it doesn't work out, where you do those tests and the results aren't what you want? Or do you go into this pretty eyes wide open?
Speaker 2 00:10:31 Yeah, I mean, we, we try to, I mean, we look at soil maps and things like that, and generally, uh, in a lot of the areas where we do a lot of business, we have a soil scientist that will say, Hey, you know, we'll send 'em the soil map and the parcel and everything. We'll say, Hey, what, what do you think about this? You think we have a good shot of getting this perked? Um, and then they'll give their opinion, you know, before we send them out there, before we close on the property. But, you know, a lot of times we try to buy it, right? So even if it's just ends up being a recreation recreational property, we'll still be able to sell it, you know? And, and these are larger parcels in a way too. So sometimes, you know, what's your average size?
Speaker 2 00:11:08 Generally? Most of this stuff now is, uh, most of it's 10 acres or above now. Yeah. Okay. Yeah. So, you know, it's, and it's one of those things that, like on a 10 acre parcel, there's a lot of places that you could kind of dig some holes and see if, see if it would work. So even if it doesn't perk in one area, it doesn't mean that it's not gonna perk in a different area. It's just, you know, it's just not confirmed yet. So, um, but we try to buy 'em at, at a good enough price that we should be fine, even if it, you know, even if it weren't the perk or something like that.
Speaker 3 00:11:37 It's fascinating to me. I mean, it's fascinating. There's so many ways that you can find success in real estate. I mean, this is one that's like, literally never even crossed my mind, you know, this, this angle, you know? Yeah.
Speaker 1 00:11:50 I mean, I think it's u I mean, unique enough that, uh, I mean, I mean, do you, are there a lot of people getting into this? I mean, do you see a lot of other people getting into this? I've, I've listened to a couple of your podcast episodes and stuff. Um, I mean, are you scared about people rushing into this market, or, uh, no. You know, there's a lot of, uh, a lot of land out there, but it seems like you, yeah, there's a lot of, you've got a pretty neat little, you've got a pretty neat little, little niche here. I don't know. It's, it's, uh, it's very interesting to me.
Speaker 2 00:12:22 Well, there, you know, there are other land investors out there, and there's kind of a niche of people that do this, but I don't think it's, I I don't think it's anywhere near being kind of as competitive as say, you know, house flipping is, I mean, that that's an ultra-competitive kind of red ocean, as they call it. And I, I view the land flipping as more of the blue ocean ocean
Speaker 1 00:12:41 Side of thing. Yeah.
Speaker 2 00:12:42 Yeah. And anytime you're doing something that works, I mean, there's gonna be other people that want do it too, which is great. And I just, I just don't have that mentality of like a, like a scarcity type thing. I think there's enough business and a lot enough potential deals to go around for anyone. We,
Speaker 3 00:12:57 Everyone wants. We, we believe that in every area of real estate. That's why we get on here and we share everything we do. Yep. And, and we hope that it helps, helps people succeed. Because you
Speaker 1 00:13:05 Can, you can speak for yourself. I'm a, I'm a, I'm a greedy No, you're old man. That, uh, you are
Speaker 3 00:13:10 The, you're one of the most generous, generous people. Thank you I've ever known. And so that's,
Speaker 1 00:13:15 That's far from appreciate, appreciate that. But there are times where we've been big on, um, markets like within, you know, our geographical area, like within Indiana. Yeah. I'm not even gonna say the city. So I'm gonna keep it close to,
Speaker 3 00:13:28 There you go. Don't be generous. Yeah. Be
Speaker 1 00:13:30 Generous. Generous. But there are certain areas that people have, uh, you know, used these areas as the punchline of real estate jokes, you know, for 20 years, and now they're up and coming. You know, I don't, I don't tell my competitors here locally because there's, you know, there's, there's 20 guys that are, that are, you know, here locally that are, you know, well-respected guys. I don't want 'em in those areas yet. Yeah.
Speaker 3 00:13:54 But, but so this requires, uh, liquid capital though, basically to do your business model. There's probably not a lot of banking, traditional banking that, that would support this type of, of of business. Right?
Speaker 2 00:14:06 Well, there's two ways to do it. You can do it with your own capital. Uh, like I've done, and, and I actually, uh, I'll go into the other way now, which is the, the fact that you can, there's partners out there that will partner on deals, and basically what that means in this business is the partner will bring all the money and then you split the deal. So, and I did this on a couple of, like, larger deals, and I'll kind of give one as an example. We bought a property, uh, last year. It was 656 acres. Um, the property was 315,000. Really good deal, really beautiful property actually in, in the southeast mm-hmm. <affirmative>. And, um, yeah, so it was kind of a win-win situation because the, um, I decided, you know, since it's a bigger, bigger, uh, amount and everything, I'll just do it with the partner, the partner. They sent all the money to close the deal, and then, uh, I was kind of responsible for coordinating with the agent and the marketing side of things. And then after it sold, we split the profits. So he got 50%, and I got 50%. So he made a great return on his money for, you know, just putting his money into the deal for a while. And then I got a really good return, almost an infinite return, because I just had to bring the deal.
Speaker 3 00:15:18 Yeah. It's interesting. It's funny, I, I sh I feel like I spoke too soon about that with real estate, there's always a way to find capital. That's one of the beautiful things about real estate, no matter what it is capital can be had. And, uh, for people just getting into real estate, who, who, who don't think that they can do it, they're wrong. They can, you know, it, it just takes, uh, the hard work and the effort and the willingness to go out and search for partners or search for capital through different means, and it can be done. And that, that's something that we really wanted to motivate this next generation with is, is folks like you who just, they go do it. They make it happen, and, you know, they search the capital, uh, or they search for the capital and they find a way to make it happen. It, you know, I, it sounds like you're not just sitting on 10 billion, you're trying to stick into land. No. You're making this stuff happen, you know? Yeah,
Speaker 2 00:16:09 Yeah, yeah. Partners
Speaker 3 00:16:11 <laugh>, you know, you're,
Speaker 2 00:16:12 You Yeah. And you know, you, you will grow faster if you've got your own capital and you just can accelerate and everything like that. But, you know, a lot of people starting this business, they're doing everything with the partner, you know, and there's nothing wrong with that. You, you're, you're just making 50% of the deal. You're just not making a hundred percent of the deal. Right. But
Speaker 3 00:16:28 Yeah, I mean, you've got, you got a family of five, you, you need, you need to keep some of that money,
Speaker 2 00:16:32 <laugh>. I know, I know. I do.
Speaker 1 00:16:34 <laugh>. So when you go to sell all of these, uh, properties, is it just, is it a local professional that you use to put in the mls? Is that, is that predominantly the, the sales
Speaker 2 00:16:44 Approach? Exactly. Yeah. Yeah. I mean, we really are big on trying to develop relationship with local land brokers, and that kind of makes all the difference from us. I know a lot of other real estate investors will do all the marketing side of things themselves, but I'm just a big believer in using the local professionals because they can help us on the purchase, the acquisition side, as far as our due diligence and potential resale price. You know, they give us their second opinion, we give them the listing as soon as we close on it, and then they resell it for us. I mean, the, the, the good brokers, they've got a buyer list already. They've got, um, you know, they've got marketing systems in place and they'll be able to achieve a higher sale price than I would anyhow, if I were to put it in some sort of flat fee mls or, you know, put it on, you know, Craigslist or something. <laugh>. Right,
Speaker 1 00:17:31 Right.
Speaker 3 00:17:31 Uh, we, we've noticed with land development that we do when we need land, there's only a couple of brokers in the state that are real specialists at land when we need land. And it's amazing to me. They keep it in their pocket. They, they're the only ones who know about these, these deals. So you, you, uh, so you find those people for your locations and then you give it to them, basically.
Speaker 2 00:17:55 Exactly. Yeah. We, there's, there's brokers that we've done 50 deals with.
Speaker 3 00:17:58 Oh. Oh, really? Do they help you find, then, after you get that relationship, help find you, or you
Speaker 2 00:18:03 Still They don't help us. They don't help us find the deals. I mean, we generate everything off market with our, our, um, you know, our direct mail. But, but they're really val very valuable when it comes to, you know, giving us their second opinion on a property. And, uh, and then obviously getting it sold as
Speaker 3 00:18:21 Well. So are you able to lean on them during the purchase process a little to see what their insights are then once you have those relationships?
Speaker 2 00:18:27 Yeah, exactly. Yeah. We're, we, that's part of our whole process and you know, we kind of lay it out in the beginning, like when we try to make a new content, we're like, Hey, we need, we need a little bit of your help on the acquisition side, you know, your opinion on the property. And then, uh, as soon as we close on it, it's, you know, we're giving you the listing. So it's kind of a, we wanna make it work their wild and we pay 10% to our, um, broker partner. So we, we make sure that it's, it's worth it for them to work with us. Yeah. So
Speaker 1 00:18:53 Is, is any of it farmland that you're doing?
Speaker 2 00:18:56 Sometimes. Sometimes, yeah. It's harder to get ahold of farmland though, because it's, it's always seems to fetch a premium in a lot of the areas that I'm dealing with. Well,
Speaker 1 00:19:04 Yeah. I grew up in southern Indiana, you know, and I've got a lot of farmers as good friends of mine, and, you know, they're always talking about the price of farmland, you know, it's, yeah. You know, it's a pretty hot commodity, and you're right, it does, you know, fetch a, fetch a premium. I know in southern Indiana, farmers are struggling to find, you know, enough land, you know, to be able to farm, but,
Speaker 3 00:19:25 Yep. So are you open to other partners? Are you, uh, money partners if people are watching, you know, I know we've got a lot of clients who are, are always interested in, in investing, um, you know, with someone, um mm-hmm. <affirmative>, are you open to syndications or anything like that?
Speaker 2 00:19:40 Um, yeah, you know, um, I, uh, I would definitely be open to it for some of the larger deals. All the smaller deals obviously are, are no problem to deal with myself. But some of the larger deals, sometimes, uh, there, there is a, a need that would come up, you know? Yeah. Prop properties like two, three, 400,000 somewhere in that range where, you know, we're looking to double our money on those. And, uh, so I think there's an opportunity if investors had some, you know, some funds sitting around, you know, the, the good part for them is they actually get the deed in their name. They close out so that they're Sure backed by like, but, and then we just have a marketing agreement where, where, you know, we split the profits now. No,
Speaker 3 00:20:16 That's, that's a smart way to do it actually then. Yeah. You know, it protects their money, but it's, yeah,
Speaker 2 00:20:21 Exactly. You still have money. I mean, I know if I was, yeah, if I was gonna be sending, you know, large chunk of change like that, I would want to make sure that the property was in my name. So
Speaker 3 00:20:28 <laugh>, I noticed,
Speaker 2 00:20:29 I know a lot of the land investors don't do it that way, but that's the way I feel most comfortable.
Speaker 3 00:20:32 I think it's smart the way you do that. I mean, it truly protects you too, in a lot of ways because you're protecting them, which protects you. But, um, I noticed Clint and I were on a speaking circuit for years before kind of covid put, put a halt on it. We did a lot of speaking out, out on the west coast, and towards the end, right before Covid hit, we started getting a lot of clients coming up to us asking us about land. And we hadn't had that before. So is this becoming more popular? I cuz I'm kind of disconnected from that client base. I'm not out there anymore on the speaking circuit. And it was just starting to happen where we were starting to get asked a lot about a land land for 20 years. We were asked about multi-family, that was, everybody asked us about multi-family <laugh>, but at towards the end, people were starting to ask about land. Are you seeing a trend with, with that where people are starting to see the, the value in, in something like your business model?
Speaker 2 00:21:25 I think it makes a lot of sense and I, I do think that there is a little bit of the building momentum there. I think for a number of reasons. First of all, this business, you know, we have 60 day average hold times. Now the bigger properties take tend to take longer, but on average, you know, that's when, when we group it all together, it's 60 days is what we're holding these properties for. I think
Speaker 3 00:21:43 It's amazing's shocking. I would've said that. I'm shocked. Yeah. I would've thought years, you
Speaker 2 00:21:47 Know? Yeah. I mean, and so it's, it's an active, you know, it's an active, you know, cash flow generating business completely different than, you know, like the long term holds in, in some way. Yeah. But, so there's a lot of interest in this because it's kind of like home flipping in a way. It's, it's generating that active income, you know? So this is, uh, similar to that, but a lot easier than, than household. I think there is people that are, that are realizing that. Um, and I think the other thing that's kind of in this environment that we're in right now, people are very interested in holding real assets rather than, you know, maybe they get burned by crypto or maybe they lost a bunch in the stock market. And I'm not saying that those aren't real assets in some way, but it's tough to beat land when you're talking about just a real physical asset, which in an inflationary environment should actually go up over time. You know, just holding the property,
Speaker 3 00:22:40 You're preaching a acquire on this.
Speaker 2 00:22:42 Yeah. <laugh>. Um, so, you know, obviously it's, um, it's not income generating if you, if you're just kind of holding it for a long term, kind of buying in the path of progress or something like that. But, but, uh, you know, using them, this model I have, it's uh, it's kind of the active cash flow generating type business. So, and there are some models that, that, um, I think are starting to gain some momentum too with kind of the long-term possibly income generating aspects of land, you know, with, especially with the renewable energy side of things. You know, like building a solar, developing a solar farm mm-hmm. <affirmative> or a wind farm or something along those lines. We were approach
Speaker 3 00:23:20 Interesting things. We, we have 11 acres behind a warehouse that we have, and we were approached, uh, by a solar company to asking to put solar back there. We're gonna build some apartment, not an apartment complex or, or maybe an RV storage back there. So, so we turn them down. But that, that's an interesting, to me, that's a very, well
Speaker 2 00:23:37 It's popped up everywhere
Speaker 3 00:23:38 Here in Indiana. It's, it's popping up city solar, solar farms.
Speaker 2 00:23:41 Yeah. I mean there's, there's a big push to kind of change out the whole electrical grid in the United States by 2035, a renewable energy. So, I mean, that's just an amazing amount of infrastructure they're gonna have to do if they're gonna have to make that happen. It's gonna be mostly solar or wind. Yeah. Um, so have
Speaker 1 00:23:58 What kind of segue into the, the current real estate market. You know, we, in, in, in our environment, you know, we saw, um, you know, we do a lot of single family real estate investment and interest rates popping, you know, 5%, you know, made things a little bit different. It's not, you know, it didn't just completely do a 180 or anything, but it
Speaker 3 00:24:18 Caused a pause and a slight cool down. That was it. That
Speaker 1 00:24:21 Was it. Yeah. Is what, what, how does that translate into, into to land? Have you seen anything, any change, say from, you know, mid to late summer to now in, uh, the land market?
Speaker 2 00:24:35 Honestly, it hasn't been that much of a change in the markets that we're dealing with. I mean, slight cool down possibly, um, but it's weird, you know, land, you know, these residential like rural type properties are somewhat correlated to single family market. But then on the other side, uh, it's not as direct as you would think because a lot of these buyers are cash any house and they're not buying them with some sort of land financing. They, who knows, they may be using a HeLOCK in their home or something to buy these properties, but it's not a direct, uh, you know, loan on these properties.
Speaker 3 00:25:10 So your clients, uh, are the wealth then a lot of your clients end up being wealth who want a little play property? Is is that
Speaker 2 00:25:17 I think it happens that way. I mean, I don't have a lot of direct contact with the actual end buyer because we're using brokers for all of them. Right, right.
Speaker 3 00:25:23 Of
Speaker 2 00:25:23 Course it's sell 'em. But I think that ends up being the case. And I think also some people maybe, you know, some of these rural areas, they're buying a property where they're just going to wheel a mobile home out there or something like that, you know, or put a manufactured home on it. So I think that happens a lot too. But, um, yeah, for some reason a lot of 'em end up being cashed. So those, you know, the land in a lot of these areas didn't run up this fast and it, and, you know, likely won't correct. Uh, like, you know, single family homes would as well. Plus I think we've got that inflationary thing working for us on the land side things too. But we're
Speaker 3 00:25:57 Big on those rural areas, the, the kinds of areas you're mentioning. So we, we have a lot of our single family homes even plus
Speaker 1 00:26:03 I'd like to wheel a double wide up the
Speaker 3 00:26:05 Know I was gonna say
Speaker 1 00:26:06 That escape from
Speaker 3 00:26:07 Everyone. I would too. I'd like a double wide and a, and a gun safe. And I'm, that's all I need. I'm set. I can, I can hide my golden silver out there and I don't care what happens.
Speaker 1 00:26:15 Yeah, I'd love it. My wife had kids. I don't
Speaker 3 00:26:16 Think that they go forward. No, your wife would not go your
Speaker 1 00:26:18 Wife. She would not go
Speaker 3 00:26:19 Forward. But, but, but we believe in these areas that you're focused on. I, I, it's kind of our secret niche. He didn't want to say a couple of the places where we're so focused on, but we're, you know, we have a lot of properties that are an hour outside of an hour and a half outside of major metropolitan areas. And our tenants in those properties stay forever. Forever. And the returns are amazing on these properties, and you can get good. They're, they're just real. It's an interesting little niche. So in a way, we're already kind of dabbling in a similar market as you, you're in the, the land part. We're more in, you know, single families in these areas, but we're big believers in it. We, we, we've, we've seen a real, a real run up in demand for the, for living in those areas, especially after Covid, where people can live anywhere and they don't have to be near the major metropolitan cuz they can zoom to work. And, um, so, so I, I think that's an interesting niche you're in with a lot of growth potential
Speaker 1 00:27:15 And it makes sense. Like, you know, we we're here in Fishers, Indiana and Fisher's a is a, you know, really, uh, popular suburb of Indianapolis. And you know, we're in a very high traffic area. You're not gonna go out here. There's, there's some land across the street over there, you know, I think for sale for $2 million that, you know, it's gonna be a developer that's gonna come in
Speaker 3 00:27:35 Two acres for
Speaker 1 00:27:36 2 million acres, you know, and that's million Acres. I can't imagine, you know, whoever owns land like that is not gonna be willing to sell it. I mean, they're selling it at full boat. I mean, they're selling it at full retail price, which means there's probably not much of a market, you know, in it for guys like us or guys, um, like you. So being out in the rural area, rural areas, it makes sense. Yeah.
Speaker 3 00:27:56 He's mailing letters to Kevin's uncle's, Bob, uh, it's cousin-in-law and saying, Hey, that 12 acres Yeah, that is overgrown. I'd like it. And then he goes in with a bush hog, makes it pretty test the soil and calls a local realtor Yeah. And says, throw this baby on the market and he makes money. That's right. I mean, it's that's right. It's a brilliant, brilliant concept. I love the business model. It's really neat. Yeah.
Speaker 2 00:28:18 It's, it's fun. I mean, in a lot of these areas, you know, like this one in particular, <laugh>, uh, it was, it was a little bit of a, um, little bit of a, the order was a little off on these. I, I told my, my local broker, I'm like, Hey, we're we're closing on this property on Thursday. And he's like, okay, great. So he sends me over the listing agreement. One thing, it, it got delayed by a couple days, and on Friday he e emails me, he is like, Hey, I got an offer for you. Right? I'm like, uh, actually we didn't close on this yet. <laugh>, thank you, man. Like, love it. Yeah. It, we should have communicated that, that we, that got delayed. So anyhow, we closed today. But, uh, but yeah, so there's, you know, that, that's, uh, it was a good problem. Bought it for 58 and sold it for 99, and it didn't even really go on the market. So. Well, I,
Speaker 3 00:29:04 I, we love it and we appreciate you coming on today. We don't want to keep you forever. So
Speaker 1 00:29:08 I wanna ask about the podcast real quick. Okay. Okay. Yeah. Um, your, your Turning Profit podcast, because I always find it interesting whenever you've got a husband and wife working together and they're all smiles all the time. <laugh>, you know, um, me and my wife, you know, she's my soulmate, uh, my wife partner, but I'll tell you what, I couldn't imagine her and I on a podcast together, <laugh>. So, uh, tell us a little bit about the, the Turning Profit Podcast.
Speaker 2 00:29:33 Yeah. Well, we just launched it at the beginning of this year, I think the seventh or something like that. So we're really in its infancy. We've been planning it for a while, but I think it's awesome. Finally got off the ground. I
Speaker 1 00:29:43 Think it's great. I think it's great. I
Speaker 3 00:29:45 Like the clips you've done on TikTok from it. I think that the clips are great. I mean, I Thank you. I I got a kick of, of running through those. My attention spans pretty short, so that's more my speed. Yeah, yeah. You know, but your, your TikTok
Speaker 2 00:29:57 Content's
Speaker 3 00:29:58 Great too. Hopefully
Speaker 2 00:29:58 Get people interested in those cool sound bites and maybe they'll watch the whole thing. Yeah. You know?
Speaker 3 00:30:03 Yeah. We know personally you're on Instagram, TikTok, I've seen you on both of those. YouTube. YouTube, mm-hmm. <affirmative>, yeah. YouTube. Yeah, YouTube. And then, um, apple Podcast, Spotify, that kind of thing. Yeah.
Speaker 2 00:30:14 All those. All those. Yeah.
Speaker 3 00:30:16 We highly suggest it. I we enjoy it, you know, and
Speaker 2 00:30:19 Well, thank you. Thank you. I, you know, I'm, I'm loving it and, uh, it's a great new journey. Like when we do something, I want to do it right. So that was why it took so long for us to get it actually going. But, you know, our idea, idea is to talk a lot about land flipping and then also, uh, highlight some other areas of real estate investment. I mean, land flipping is not the only way to make money in real estate, but yeah. So we try to bring in some really smart people to talk about the other stuff.
Speaker 3 00:30:40 Well, you have an experience. You, you're, you're kind of a renaissance man of, of real estate. You've got a lot of experience in other areas. So you should
Speaker 2 00:30:47 Talk about, I think, I feel like I know a lot about different, a lot of different areas, but I'm not expert in all of 'em.
Speaker 3 00:30:52 You know, you, you know, enough to be dangerous.
Speaker 2 00:30:54 <laugh> enough to be dangerous. That's a good way to put it.
Speaker 1 00:30:56 Well, speaking of bringing really smart people on, I noticed where you brought your daughter on on uh, oh yes. One of, one of your shows that had to been pretty cool.
Speaker 2 00:31:05 Oh, that was fun. Yeah. Yeah. It's my, I've got a 22 and a 20 year old daughter, and also I've got a 13 year old daughter. But they both, uh, took a little bit of an interest in what we were doing with the land flipping stuff. And they had, they had $8,000 saved up, and this was a year and a half ago at this point. And I'm like, Hey, why don't I just throw you some of the smaller deals that are kind of extra ones. And, uh, so long story short, they took that 8,000 and they've parlayed it into, uh, I think 84,000 at this point.
Speaker 3 00:31:35 <laugh>. Holy
Speaker 1 00:31:35 Cow.
Speaker 2 00:31:36 Yeah. Just doing, uh, I think five or six land deals. So
Speaker 3 00:31:39 Someone wanting to get into real estate of some sort, but with a very small budget, LA this w this is something that they should pay attention to. They should listen to your podcast.
Speaker 1 00:31:47 What a great lesson
Speaker 3 00:31:49 For
Speaker 1 00:31:49 And for your daughters. And what is that is incredible. I love that.
Speaker 3 00:31:53 That's pretty neat. Yeah.
Speaker 1 00:31:54 Yeah. We both we're, we're both in houses full of estrogen also. He's, we've got all girls. I've got two daughters. Oh, you're all three daughters.
Speaker 3 00:32:02 That's hilarious. All it is. And I threaten 'em all the time that I'm gonna leave them this company when I, when I pass. Oh, gosh, gosh. They're scared to death of all the work. Be
Speaker 1 00:32:10 Able to do that. You wanna do that.
Speaker 3 00:32:12 But, but I, again, I, we could talk all day. I'm fascinated by what you do. I I hope our listeners go check you out because I think they're gonna pick up a lot of things. Not just on land, but on life experiences. He's living life, right? He's bringing his family into what he does. He's passionate about what he does. He gets this stuff. He passes on great financial literacy, so pay attention to what he's doing. It may not be a good fit for you, but I guarantee you will pick up some really cool pointers that you can apply to lots of different areas in real estate. And I wanna finish this with three questions. So, um, okay. So real simple answers, but what's the best real estate decision you ever made?
Speaker 2 00:32:53 I'd have to say right now, getting into land flipping,
Speaker 3 00:32:55 That's an easy,
Speaker 2 00:32:56 I mean, I love it. So yeah, I wish I would've done it sooner, but I
Speaker 3 00:33:00 Will. Hey, you're living right.
Speaker 1 00:33:01 You living, you learn, you know,
Speaker 3 00:33:02 But you're living, right? If, if your answer to what's the best decision I've ever made is to do what you're doing, you, you're doing right. So, alright. What real estate decisions do you regret?
Speaker 2 00:33:12 I regret not going all in on, on buying real estate when the market crashed. Um, I that I got out of all the real estate at the time, I should have been getting all in. So
Speaker 3 00:33:24 That is such a hard thing to do to time write, you know, emotion is so powerful and I don't know anyone that did
Speaker 1 00:33:30 Do it. I mean, it's so hard, especially, you know, we're, we, we were talking about, you know, uh, a pullback that we've never seen, you know, in our careers before. I'm, I'm very thankful that, that I went through it. I'm sure you guys would probably say the same thing cause we, it taught us a lot. But yeah, I look back on that and like, man, why didn't I pull the truck back? I know back and just, I know do everything I possibly could. But, uh, yeah, we,
Speaker 3 00:33:55 We've built, we've helped, we helped a lot of clients build portfolios of real estate. And, um, I look, we look at their portfolios now, you know, that we've helped them build since 2000, really? 2010 we got heavy into buying for our clients and holding. And it's fascinating to look at the, the, what they own now, what little they owe. You know, the tenants have paid, practically
Speaker 2 00:34:16 Paid off. I'm sure those clients love you guys. Yeah,
Speaker 3 00:34:18 They do. I mean, they do. It's, it's really neat to see. But, uh, the last question then is what real estate advice do you have for the next generation?
Speaker 2 00:34:28 Well, you know, if you're gonna be, as far as a real estate investor goes, if you're going to get in the real estate investment game in some way, I would pick one particular niche and go all in on it and try not to get, you know, the shiny object syndrome where you're kind of seeing what everyone else is doing and kind of looking at all these things and thinking that would be cool and kind of dabbling. It's so much better if you just focus, you know, pick a lane and just focus. And I guess once you get everything on autopilot and you get a great team kind of doing everything, then maybe you can venture out into some of those other areas.
Speaker 1 00:34:59 I think that's great advice. I see so many people, you know, put so many different irons in the fire within real estate. You know, their whole, their wholesaling properties, they're flipping, you know, they, oh, I'm gonna start managing properties myself. I'm doing all of these things, and they do everything at a C minus level, you know? Yeah. And if they just would focus on one thing, I think that's, that, that advice is so
Speaker 3 00:35:23 Powerful. I'm thinking of one person I know in particular who's incredibly intelligent, and if he stayed focused, he could blow the rest of us out of the water. What, whatever he chose to do, he's in everything, but instead he's in everything. And he does, he's terrible <laugh>. Yeah. He, he's, he's, he just fails at everything He does. That everything does. But, uh, that's great advice. And again, we appreciate you coming on. Um, I,
Speaker 1 00:35:44 That's where we can find you.
Speaker 2 00:35:46 Oh, yes. Uh,
Speaker 1 00:35:46 So our listeners where we can find you.
Speaker 2 00:35:48 Yeah. Best place to be, to go to turning profit.com. That's kind of our central hub where you, you can then find our, uh, you know, link to our YouTube channel and Instagram and all that kind of stuff. But on there, I also do a monthly income report, which is, breaks down everything about our land flipping business. So it's the revenue we took in the gross profit, um, every single deal we did that month, like what we bought it for, what we sold it for, what we learned, uh, how much profit we made, how many days we held it for, everything like that. So try to be as insightful as as possible and transparent as possible. And so that way, if you're, if you have any interest in the land flipping business, at least you could see what kind of deals are being done and maybe what's possible. So I do that every month. So I think that's interesting content, but, uh, yeah, we'd love to have you check out our podcast as well. But all the links are on, on the, that website.
Speaker 1 00:36:37 Well, Scott is gonna be busy for the next three evenings now because he's a daddy geek and now he's gonna be on there checking
Speaker 3 00:36:43 Out. Yeah. Just, just to warn you, I'll be on there.
Speaker 1 00:36:45 So he's, he's, he's good.
Speaker 2 00:36:46 Good. All right. I need the
Speaker 1 00:36:48 Visitors. He's booked up for the rest of the week. People don't reach out to him. <laugh>, but, uh, well, I encourage our listeners to, to, to reach out and, and, you know, check out Pete's, um, you know, podcast and all of this, you know, information on land. Scotty and I learned a lot from you today, and we really,
Speaker 3 00:37:03 He's pulling back the curtain on his website, on everything. I don't know anyone else who does that. I literally don't know anyone in this business that pulls the curtain all the way back and shows you at all. So that, that's fascinating to me. Like you said, I'll be there for the next three days. You should too. Check it out,
Speaker 1 00:37:18 <laugh>. Well, we thank you again, Pete. Thanks so much for Thank you guys. Coming on. This was a lot of fun. Uh, so that's our show. If you've made it this far, we'd really appreciate it. If you'd leave us a review on Spotify or Apple Podcasts, it really helps us to grow our podcast and reach as many people as we can to help them understand the world of real estate investing. You can also find some short form content on TikTok. Our TikTok is at the Homeboys podcast where you can learn even more about the power of real estate. Tell next time homies happy investing.
