In this episode of the Fresh Money Monday Podcast, we have a special guest in the house, Alex. Alex is a Land Flipper, Entrepreneur, and Entrepreneur Mentor. He has been in the business for a long time and has a lot of experience in the land flipping space. We talk about how he got started and how he has been able to make a ton of money over the years.
00:09:46.000But the ones that start, that stick with it, 5 to 10K a month profit very quickly.
00:09:52.000It's not like a business that takes time where you have to get it off the ground, set up all this stuff, test this, test that.
00:09:58.000It's one of the things where if you have the right just steps to follow and you kind of know the basic, the baseline, you'll make 5 to 10K a month.
00:10:13.000My network in there as well, making a bunch of money.
00:10:15.000But typically speaking, how does someone get started?
00:10:18.000You would say no it is especially well.
00:10:19.000I mean, obviously I have my community, right?
00:10:22.000But if they wanted to just start on their own, watch YouTube videos, you know, I mean, there's not any secret sauce to it as far as learning the basics, but watch the videos, research what you could online, and just put in the reps.
00:10:35.000The cool thing about this is like you can mess around with it and you're not losing any money.
00:12:12.000Dealing with like long-term renters is a pain in the ass.
00:12:15.000I can only imagine short-term Airbnbs because renters don't even give a crap about the property.
00:12:20.000So people that are there for vacation or whatever, especially if you're in Orlando, one of these hot spots for Airbnb, they're going to destroy the house a lot of the time.
00:13:36.000You know, like builders, all the builders we work with, they'll buy like super hard for a month, you know, buy as much as they could, and then they'll just chill out for like a month.
00:14:01.000Yeah, so all these different areas that are up and coming, you'll have obviously builders that are building houses and what do they need to build the house.
00:14:08.000It starts with the land, you know, the dirt.
00:14:51.000And that's one of the good things about flipping is you kind of get in with very fairly low overhead, which is why you're able to profit so quickly.
00:17:42.000I mean, as far as courses, it's like, number one, I didn't make my first seven figures, my first seven figure year I had was from my actual business.
00:17:52.000Honestly, I started selling courses in the end because there was other people in my niche that I knew that were selling courses for land flipping.
00:18:01.000And it's funny enough, we're all from the same area.
00:18:34.000You know, you're not going to college for free.
00:18:36.000Why would I put my blood, split, and tears into building a business to show some random person that messaged me on Instagram, you know, how to do it for free?
00:19:17.000You had to go to college for yourself.
00:19:19.000For my job, but like in general, I wouldn't advise people to go to school unless you're going like to a top school or you're going to, you know, or you're going either you're going to school because you need a specific degree.
00:19:31.000You want a specific job that requires a degree, you're going to an Ivy League school or you're going to school for free.
00:19:36.000Like if you're doing one of those three, then it makes sense.
00:19:38.000But if you're just going to school, you're going to be a doctor, bro.
00:19:40.000But if like or a lawyer, but if you go to school, you just get a random ass degree.
00:19:43.000I mean, you're just trapping yourself in a job for the rest of your life.
00:21:45.000Started pouring it into Airbnb, made good money from Airbnb, moved to Miami, spent all that money, had to start fresh, got into land, made a million my first year doing land, then started my community, then scaled up my land business this year to do around 2 million.
00:22:03.000We'll keep increasing that every year.
00:22:05.000But now my main goal is probably development, you know, because land flipping is like the gateway, you know, like the gateway drug.
00:22:13.000You start flipping land and then you could go into everything else because every deal you'll ever do in real estate starts with land in the end, right?
00:22:21.000Every multifamily you'll ever invest into, every rental property, all this stuff, it starts with land in the end.
00:22:28.000So when I'm working with these builders, finding them the land, I know exactly what they're looking for.
00:22:33.000I see exactly what they're building on it, what they're paying for it, their timelines, their terms, everything they're doing with it to where you could just replicate it.
00:22:41.000So now I want to do heavy development here in Miami just so I could be in my backyard and be able to do that.
00:22:46.000Yeah, no, I mean, it gives you a fantastic foundation, literally, foundation because you're picking out the land, which obviously you got to decide.
00:22:53.000Because I remember we discussed the ease of putting in like a septic tank, for example.
00:22:59.000You got to take these things into play.
00:23:30.000And not only do you need money, you're going to need more than you think you need because the amount that you think you have, that's not going to be enough.
00:24:25.000A lot of these Section 8s also repairs.
00:24:28.000It's pretty rare that they're fully turned key.
00:24:30.000You need a few thousand to put into repairs.
00:24:32.000So this really is wholesaling land and wholesaling houses genuinely is the only no money down real estate model that leads you into all these other models.
00:24:43.000You know, you make money flipping land, you invest it into rental properties, building houses, new construction.
00:30:49.000They're in the basement saying, oh, bro, I'm talking about these people.
00:30:51.000And this is what I've realized after being on social media for like five years.
00:30:55.000Bro, if you show luxury cars, luxury lifestyle, nice watches, any of that other stuff, they're automatically going to start hating and talking shit.
00:31:03.000Yeah, I mean, bro, there's a few things you can't avoid it.
00:31:06.000Like there's a few things you genuinely can't fake.
00:31:07.000Like you could fake a car, technically.
00:33:37.000All these idiots can say whatever they want to say.
00:33:40.000And just so the audience understands, so guys, in the state of Florida, when you are doing a real estate transaction, the title company is kind of the intermediary that holds the money.
00:37:23.000There's a reason why Money Mondays don't do as well in views.
00:37:26.000And in general, why financial channels, actually, when you look at it in the grand scheme of things, don't get as many views because a lot of people are not willing to take that step.
00:38:38.000Anyone that lives in Port St. Lucie, I mean, they know you can't go anywhere without seeing a brand new house being built.
00:38:44.000So, I would just hold on to that for like five more years, my friend.
00:38:47.000Um, because a few years ago, those single lots, a quarter-acre lot in Port St. Lucie was around 60 grand, and now they go for 140 to 150.
00:38:58.000So, if you don't need the cash, right, if you don't need the cash in current time, keep holding on to the land, it'll keep going up because they can't make more land, right?
00:39:08.000They could build more houses, all that shit.
00:39:10.000Hold that five acres in Port St. Lucie will be just more and more valuable over the years.
00:39:22.000And, you know, I listen to Myron, and he tells me, get a get a screen, get in the trades, fuck college, fuck all these fucking loser-desk jobs that go nowhere.
00:39:34.000Get into the trade, start your own business.
00:39:37.000I mean, I'm going to tell you to flip land, obviously, but the next best thing is definitely starting trades.
00:39:43.000I mean, there's not many other options.
00:39:47.000Quite frankly, there's a ton of options, but there's also not that many options because people just make it, they glorify it and they make it seem pretty when none of this stuff is all this online internet stuff.
00:45:20.000And that's something I could do as a weekend job.
00:45:25.000Tomorrow I'll be on call with the owner of it.
00:45:32.000But since I'm kind of at this heel, I'm just trying to scratch my head on like what are some things that I can do to increase my profit, my revenue, and then to be able to invest it into things that I can accure long term.
00:47:47.000And your story really resonated with me a lot, especially just hearing about your past and you were hearing about you getting in fights and you going into jail and stuff like from the last podcast that I've heard about you.
00:47:57.000And I was just wondering what suffers like the people who join a course like with yours from getting results and from the other people who aren't just in it and not necessarily like being able to achieve exactly the success like maybe you're at because I've been looking for a side hustle for something else to do so I can that way because I already have an emergency fund and just looking for something to branch out.
00:48:21.000I mean are you asking what makes mine different in comparison to other people?
00:48:26.000Just like what makes like somebody like me like in a position like this looking for a side hustle like something else to join and what it takes like to be profitable successful within your industry.
00:48:37.000I mean the cool part about my industry is if you're following the system I provide you don't need like a special skill set or any experience with anything tech really anything.
00:48:49.000You just have to follow what is in front of you.
00:48:52.000It's one of those believe it when you see it type of things because obviously everyone in the internet doesn't believe you can make money by learning from someone else.
00:49:00.000And that's why they just, you know, have, they don't have much of it.
00:49:04.000But in the program, what I'm showing you to do, you don't need a skill set.
00:49:08.000It's something that you could just come in and you follow it no matter who you are.
00:49:12.000My advice to every person is the same: just stick with what you are doing.
00:49:16.000If you actually stick with it, you go through the learning curve, you start making mistakes, you start picking things up, you'll eventually figure it out.
00:50:33.000And how much would you say, like, typically, like within that range, like setting up?
00:50:36.000I remember that there was a last time I saw you on PropStream where you're listing and being able to see like a certain land sites and where the place can develop that, where you can maybe contact builders.
00:50:45.000Is that like all placed within the program when you go into it, like to be able to locate stuff like that?
00:50:50.000So you have an idea of what you're searching.
00:52:20.000Again, guys, the number to call in is 646-490-0394.
00:52:23.000That is a number to call into the show.
00:52:25.000If you want to go ahead and ask a question, we're focusing on real estate today specifically, namely land flipping, but we can talk about other portions of real estate as well.
00:55:40.000Hey, yeah, I was just wondering, how long do I need daily just for your program?
00:55:46.000We recommend an hour to two hours a day starting out just because you have to get through the learning curve.
00:55:51.000But once you get through the learning curve, you'll have a pipeline of lead flow that will definitely help you out with not having to work as much.
00:56:33.000And how much money would I need to start?
00:56:37.000I recommend like a thousand bucks, but if you don't have a thousand bucks to start, you'll be okay with zero.
00:56:43.000Again, we have multiple people in the program that kind of take the route of using all the free methods I provide, and they're just fine.
00:56:51.000You know, multiple people have done multiple deals their first month doing it that way.
00:56:56.000But the more money you have, obviously the faster you can kick it off the ground, but you don't need money to start and make your first few deals.
00:57:06.000Okay, so is it just like finding the land and then you're essentially making the deals?
00:57:11.000Yeah, so you find a builder that needs land in a certain area.
01:00:07.000Yeah, that was my only thing because I'm like, how am I supposed to make something work when I thought I was supposed to use my own title company type of thing?
01:01:28.000So I'm a wholesaler in the Hampton Roads market or whatever.
01:01:32.000And we're trying to get in the land flipping.
01:01:35.000I've done a couple deals, a couple of single families, a couple of townhomes, but it just seemed like it's like getting this land flipping.
01:04:30.000But I don't know if I should sell my house or rent it out.
01:04:33.000No, if I rent it out, I'm going to have to cover like $600 towards my mortgage because the market price here is less than what I'm paying on my mortgage.
01:06:24.000So I think for you, bro, in your situation, it's probably going to be hard to get a long-term tenant to pay you $2,600 to $3,000 because you probably want to at least break even and rent it for $2,600 to $3,000.
01:06:36.000It's probably going to be hard to do that.
01:07:29.000Yeah, I think in your situation, bro, since you're in a very good location for Taurus and real estate market is a little, you know, your house isn't valued high enough yet.
01:07:40.000And obviously it's going to be tough to get a tenant to pay that amount of money in Orlando.
01:08:54.000Do you ever take a percentage of the land instead of getting a funder's fee?
01:08:57.0002% of developed land goes a long way instead of 10K funder fee.
01:09:01.000So, no, you're not wrong completely, but with majority of these deals we're doing, the lots, the pieces of land themselves are in the $30,000 to $70,000 range.
01:09:13.000Every single month, I'll do larger deals, of course.
01:09:15.000Don't get me wrong, but that 2% would come out to probably the same amount as my finder's fee, and I get paid my finder's fee up front.
01:09:23.000I don't have to wait for them to finish building the house in six months.
01:09:27.000If that's what you meant by taking a percentage of the development, of course, get your finders fee up front.
01:09:35.000Do the development yourself down the line.
01:09:38.000Most of the houses they're building are around 300 grand.
01:09:41.000So, you tell me what is 2% of 300 grand?
01:09:43.000Not much, you know, $6,000 in your pocket or a $10,000 finders' fee up front.
01:09:48.000Even if the houses are $500 that they're building, because that's the median price for these spec homes.
01:09:54.000I mean, yeah, you're making $10,000 in six months if you take 2%, or you could just take it up front.
01:09:59.000Get paid upfront, get out of the deal, go on to the next, do volume, and you'll make money.
01:10:47.000I don't think so because I don't recognize your name.
01:10:49.000But those are things I would recommend doing if you actually want to see results, right?
01:10:53.000You could be in my course for 10 years, but if you don't take the correct action, reach out, ask for help, show up to the calls, go through every video, and actually put in the steps.
01:11:03.000Well, I can't magically put money in your pocket.
01:11:06.000So if you're actually in my program, I don't recognize your name, but if you're actually in my program, reach out.
01:11:11.000That's what we have the community for.
01:11:37.000I mean, if you really want to, you can live in one of them, right?
01:11:40.000You could do an FHA loan, 3.5% down instead of putting the conventional, you know, 20% down, live in one of the units, rent the others out, give it three months, refinance.
01:11:50.000I don't have rental properties, though.
01:11:58.000You know, I tell people, you know, single family is a bit harder to get cash flow because you're only depending on one family there.
01:12:06.000I always tell people it's better to have a duplex or a triplex or a fourplex because what you basically do is you split the rent obligation between multiple people.
01:12:14.000So hopefully, if one person doesn't pay, someone else can offset whatever you might lose and vacancy isn't as bad.
01:12:23.000And by the way, guys, episode of Roger is definitely coming.
01:12:25.000I know we've been traveling doing all these collabs and everything else like that.
01:12:29.000But we are going to do that episode where Roger, we're going to talk about property management, cash flow targets, how to find a house, what to look for when you're doing it, turnkeys versus fixer-uppers.
01:12:52.000You know, Roger's compiling the numbers and everything else like that because Roger started doing my bookkeeping.
01:12:57.000So we're going to share a lot of that information with you guys.
01:12:59.000And hopefully you'll be able to wait away from there where, you know, you guys are going to be able to not make some of the mistakes I made.
01:13:07.000Comedy Skin says, are there any tax benefits to land flipping?
01:14:59.000So, if you plan to do the work yourself, if you want to flip houses, do all these things, then sure.
01:15:04.000Um, yeah, you have too many options, yeah.
01:15:08.000There's three, you have too many options, but just to answer your point, Alex, I find somebody that's actually doing what I want to do right now, learn under them and see if I want to do it because it sounds good to be, you know, have a VP and all that stuff.
01:15:18.000But like, don't you want to do that yourself?
01:15:42.000So, it is going to be an assignable contract.
01:15:44.000All that means is when you sign the contract with the seller, you have the legal right to flip that contract to assign that contract to an end buyer.
01:15:56.000So, you're not liable to buy the property, you can cancel the contract, you don't lose any money from canceling the contract, things like that.
01:16:03.000So, you get a signed contract with the seller, it is an assignable contract.
01:18:14.000Like, I, you know, like, I had people having like on YouTube, you would watch like Jordan Welch, you would watch Iman Ghazi, like those guys, but that's e-comm.
01:18:24.000You know, hard of this to start fucking like realistically.
01:24:09.000Or would you rather have it make you money and you relocate, buy another property that you can make improvements to and keep renting and repeating that kind of personal preference there?
01:24:22.000If you want to Airbnb it, build the pool and do that because then you can charge more.
01:24:27.000But if you're going to have long-term tenants, you know, I always say whenever you have long-term tenants, you don't want to make the house too nice because what happens is you're going to need to have a higher rent, right?
01:24:38.000And to have a higher rent, a lot of times that might put you where you price out the market, right?
01:24:43.000Like rent is contingent upon all the other houses in the area.
01:24:46.000So this is why I always tell you: if you're going to rent a property, don't make it too nice.
01:24:49.000Don't put like, you know, the top marble, yeah, like the top marble in the kitchen, make the bathroom super nice.
01:24:55.000Because once you luxurize it too much, what'll happen is you won't be able to garner the rent that you want because all the other homes in the area are cheaper.