Synopsis:

Welcome to episode 26 of the Crushing it in Real Estate Podcast! This week we have two very special guests, Adam Southey and Justin Silvia both real estate investors located in Texas who specialize in land investing!

About Adam and Justin:

Raw land investing experts Adam Southey and Justin Sliva know exactly where new investors struggle. They’ve each had massive success in their own business, and today they’re on a mission to help others learn to harness the enormous potential offered by land investments: incredible ROI, massive cash profits, and sustained passive income. After helping hundreds of other land investors find/sell amazing properties at unbelievable profits, Adam and Justin collaborated in creating powerful resources to support both new and seasoned land investors along their journey. They launched the Casual Fridays REI podcast and built a comprehensive online course that not only answered all the questions they had received from consulting clients but also incorporated the best of their own combined experience. Adam and Justin are here today to show our listeners there’s more than one way to achieve success when it comes to raw land investing.

Email: adam@casualfridaysrei.com & justin@casualfridaysrei.com

Website: http://www.casualfridaysrei.com/

Facebook Page: /CasualFridaysREI

IG: CasualFridaysREI

Podcast: @podcast/casual-fridays-rei 

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Adam and Justin

Intro: [00:00:00] Hey everyone. And welcome to another episode of Crushing Real Estate with Bryan Pham, where we interview real estate professionals around the industry. If you enjoy this episode, please subscribe to the show and leave a very positive review. We release an episode every single Sunday. So, stay tuned. Enjoy!

Bryan: [00:00:23] Hey guys. Welcome to another episode or crushing it in real estate. This week, we have two very exciting investors. Their names are Adam and Justin, and it is really cool. They invest into land. That’s their niche that they invest in.

And today we’re going to walk through how they do it?  What’s that real estate investment strategy are for that field and learn as much as we can from them? Hey guys, welcome to the show.

Justin: [00:00:49] Hey, thanks so much for having us.

Adam: [00:00:50] Hey Brian. Thanks for having us, man.

Bryan: [00:00:52] Definitely. Hey guys, can we learn more about you? And can you walk us through your real estate journey?

Justin: [00:00:57] Yeah, I don’t kick it off for. So, I’ll let you have this one.

Adam: [00:01:00] Oh, you want me to go first?

Justin: [00:01:00] We’ll let you go first this time.

Adam: [00:01:02] Every time I tell a story, Justin going to tell a lie here in about five minutes. So be ready.

Anyway. So yeah, Adam Southley, I have been in real estate for off and on for about 15 years now. I’ve literally done everything I’ve bought… I’ve been a new home builder or rehab or wholesaler or landlord I’ve invested in mobile homes. You name it, I’ve done it. and at one point in my life, I, went broken. I was Dying to get back into real estate because this is where I was wanting to be. And I came across a podcast where a guy was talking about buying land and he was buying it for a hundred bucks an acre, and then selling it for three or $400 an acre.

My mind was blown because it’s literally at the time, that’s all the money I had. So, I jumped in, I learned everything I could about it. My first few deals, I bought three, two and a half-acre parcels. Each one was for $250 and I sold them all three for a thousand bucks apiece. And I was also getting some five acres back at that time, right around $500. And Justin, he and I owned a business at the time. He wanted out of it and…

Justin: [00:02:03] Not how that went.

Adam: [00:02:05] So anyway, I, I wanted to go all-in on land and I was telling Justin about what I was doing and he heard. And so, he got really excited and then we ended up going off on our own and starting our own businesses. Liquidating the one we had and, we both jumped in right around the same time. And that was almost three and a half years ago. It’s grown and scaled ever since then.

Justin: [00:02:21] Yeah. Yeah. It’s his trajectory is a little bit different than mine. I’ve been having corporate sponsored flips since about 2004 in houses and I was working for the railroad. I was an executive at a railroad and my best friend’s calling me, telling me, dude, I’m buying five acres for 500 bucks. They’re sending me this stuff. I’m like, whatever, if you could buy that for that cheap, I will be all in on it. Right. And, hey, we had an Amazon business, like he said, he calls me, he goes, Hey, let’s liquidate it so I can buy real estate. And I’m like, cool, we’re going in the real estate game now. And he’s like, no, man, I’m going by myself. And I was like, wait, what about me? I want to do this too. And he’s just we’ll do it on your own. So, we both kind of get started in our business, like you said, and go our separate ways. Fast forward, six months later, I’ve got my first big marketing material pushes out. I’ve bought and sold probably 10 or 12 properties. And I get that dreaded. Friday morning, call from my, my, my other executive. And I go meet HR and I’m giving my walking papers. You know, I told her, Hey, you don’t have a job anymore. So, I have this, this dilemma, I’m a dad, I’m a husband, two kids at home house, mortgage, everything.

And I’m like, well, what, what do I do? I’ve got this business. And so, we just jumped all in and went all-in with it. And fast forward to us now, a few hundred deals later. And here we are and we’re, and we’re loving every second of it.

Bryan: [00:03:36] Awesome. Where you guys located right now?

Adam: [00:03:38] We’re Fortworth, Texas

Bryan: [00:03:39] Fortworth, Texas. I love it.

I love your story too because it really reminds me of mine. And I started at Amazon miserably. I’m like, man, I don’t like this at all. I need to do something, you know.

Justin: [00:03:51] And this sounds crazy. Amazon was crazy, cause of the competition. Right. We have a good product. And then all of a sudden 40 people are selling the product too.

Bryan: [00:03:57] I love your story. Like, you jumped all in like, I did too. And I have to say. When you have nothing else to lose and everything else to gain, you would do things you never expect you to do. It was cold call, you door knock and do whatever it takes.  I can see why you guys have been so successful.

Justin: [00:04:17] It’s been great for us. It’s spun off three companies and we continue to grow monthly and we’re able to impact the land investing niche around us with our podcast, which everybody knows podcasts for free. You listen to them. But we document our journey. It’s not like we’re on there trying to sell this guru magic stuff.

We say, Hey, we’ve got a course. If you want to learn how to do it, it’s there. Learn about us. And if you think that it resonates with you, yeah. Come join us. We’re ready to talk about it.

Bryan: [00:04:40] I’ll make sure to include that in the show notes as well. So, our listeners know about your podcast. Awesome.

So, let me ask you this, this basic question.

Why did you guys pick land investing over others like real estate investing? What’s the biggest benefit that you guys see in this view?

Adam: [00:04:58] Well, for me, it’s really beginner-friendly, right? It doesn’t matter how much money you have. You can get started in this industry.

So, like I said, my first deal is by what two and a half acres of land for 250 bucks. Who can’t come up with an extra $250? But then we also have clients who buy land for a hundred bucks. All-day long. Right. And then use the ROI. You sell that for two, three, four, 500 times what you paid for it. And that number scales too, as you’re in this business long enough, now you’re buying land for $10,000 and you’re selling it for $30,000 or even higher.

Justin: [00:05:31] Yeah. And that’s, and he, he hits the nail on the head being a user-friendly niche. We, we can talk about people that flip houses. I’ve wholesaled houses, I’ve flipped houses, gone, and done the GC work myself, done multifamily. And I always come back to land because it’s the least amount of time I put out my marketing material. I get some good leads back. I look at it on Google earth, make sure that it has access. The topography looks good. I checked the comps on it using a free website and check a parcel outline and make sure, and I do a little bit of due diligence like that. Then I send it to the title like you would with a house.

They give me a clear title. We put it on the proper property. We put it on the market and they sell it and try to get as much as we can. And when you’re buying it 20 to 30 cents on a dollar, you, you can’t go wrong.

Bryan: [00:06:13] That’s awesome.

Justin: [00:06:14] Yeah. Let’s not forget about it also. You can owner finance this stuff.

Yeah. So that’s the best part about it, right?

So, say you buy a piece of land. Let’s say you buy 10 acres for a thousand dollars. You sell it for a thousand dollars down a hundred, 200, 300 bucks a month for the next three, five, seven, 10 years, whatever you want to do, you get interest. You get all your money back upfront. So now you’ve got nothing but straight cash flow and there are no tenants. There are no water heaters, no roof. There’s no nothing. They don’t pay you, you though, the land stays in your name the whole time. So, if they don’t pay you after 60 days, you just cancel the contract and resell it.

imagine tote the note car lots that the car doesn’t drive anywhere. It sits in the driveway the entire time.

 You hear that you hear people talk about tote the note car lots of how much money they make off of them. I mean, you can do that in land. So you have so many different exit plans and exit strategies, that it’s not typical, Hey, I’m going to buy it for this rehab it, get a renter in it and try to refi [inaudible] if the appraisal will make, or, you know, in multifamily, go in change contracts, adjusted, get the rent rates up, refi back out. You know, it’s not that this is an individual transaction. It has three or four exit strategies that you can do.

Bryan: [00:07:22] That’s awesome. Can you guys walk us through it or the due diligence process? Like what do you look for when you purchase these lands? Cause I’m pretty sure, all of us will be looking like Redfin or Zillow or whatever. You’re like, wow, there is a lot of lands out there, but what makes a particular land worth investing in?

Justin: [00:07:38] So it’s, and that’s a great question. We, we talk about the type of property, a property type that we like, we call it bass boat property. That’s kind of our key, a coin phrase that we use and a bass boat property is I want you to think about that 30 to 50-year-old guy that has a bass boat, or he has an RV or has the Harley Davidson. It’s a place that he gets away from the office or he dreams about it, the office and he’s at the water cooler and he’s talking to his buddy, he’s like, yeah, man, I was out of my 20 acres, my cabin property this weekend.

So, what we do is we go out and we market looking for properties like that. So, the idea of, Hey, a thousand to $2,000 market value per acre, and we’re going to try to buy anything from 10 to 200 acres like that. We go in and offer that money to them at 20 to 30 cents on a dollar, get those properties back. And then we market to those people. Now we can get them into that because it’s about the same price as a Harley Davidson, a bass boat, an RV. The payment, we can make the same and we just adjust the down payment. Hey, get 20% down. Well, if we bought it for 20 cents on a dollar. And we get 20% down. We’re out of it for nothing.

We have no risk. And now we’ve set up cashflow for seven to 10 years. And so, the due diligence piece of that is we send out our marketing material. After we’ve looked at an area, defined it as, Hey, it’s got the trees, the mountain range or stuff around it that we like that we can find it in the market value that meets that criteria to make our margin for us. And then we send it out. We get one back and they call us. We make sure they’re the owner. We check the parcel to make sure it has access. Cause we want County maintained access to get us on the property. We don’t want it to be covered six months a year in the snow. And then we look at it to see that it has those characteristics that we think is going to be something we’re selling later on that dream that we’re going to sell to these people.

And we’re going to, and it’s, and its quality land that somebody forgot about or inherited. And we just try to get it back to the market.

Bryan: [00:09:23] Awesome. I like that a lot. I mean, when you look at these lands, like is there something that triggers in your mind, like, wow, like this can totally be a mobile home park or this can totally be like this new mall that can potentially be here. You know.

Justin: [00:09:37] So I’m going to answer that one. I think Adam was trying to jump in, but the, that is, yes, it does. That’s the dreamer in us from the old real estate ways. Like, Hey, yeah, we’re going to make us a more mobile home. We’re typically in and out of a deal. And about 90 days. That’s when we fund it. When we send the wire over to him, we get our wire back and we’re cashed out. So, when you’re seeing a hundred, 200% ROI inside of 90 days, you don’t worry about the mobile home park or the mall development. You worry about how fast can I turn this paper. And then what does that machine look like going forward?

How do you turn?

Adam: [00:10:09] Yeah, because the whole idea here is that we’re not developing, we’re not swinging a hammer. We’re not dealing with subcontractors. It’s turning that money. Just like Justin said, buy low, sell high, do it as many times as you can.

Bryan: [00:10:22] So as you guys are, you know, working through the deal, I assume that you guys have a buyers list, you guys mass email.

So is there any particular way or method that you look for these bars like already, they can’t be your stereotypical, you know, buyers list. Oh, I will look for a broken-down house or like multifamily, like these guys have to be some, a little more experienced. So how do you look for these kinds of buyers list?

Adam: [00:10:48] Yeah. So, while we do have a buyers list, I wouldn’t say that’s our only like I know with whole-sellers, they’ll go out and they’ll have a list and they’ll have a go find a house and we’ll send it to their list and then it’ll sell. Right. A lot of our people are end-user. And so, we market what we call, be everywhere. Right? So be any list of property for sale anywhere that someone may see it. So, we do have buyers lists, but we also market real heavy on Craigslist because people on Craigslist, love to buy lands, but then Facebook, eBay, realtors, realtors, get it out on the MLS. They listed everywhere. I mean, you name it, put it in forums.

If you, have a piece of land that you think would be really good, like an off-road community, go look for like a Facebook group. That’s about, you know, four-wheeling or something. And then post an ad in there. Just get to know people because of the market buyer. I mean the end buyer there, you never know we’re going to come from.

And you’ve got all sorts of buyers too. Like I have truckers that buy for me because I have land along the route and they just like to know that they could pull off the road and park their 18-Wheeler there or something. You’ve got people that just collect land. So, like there are people who have a lot of money and they just have a thirst for land.

So, they’ll just constantly buy land from you. But then there’s the preppers, the off-grid livers, you name it, they’re all there everywhere.

Justin: [00:12:00] One other thing I’ll add to that. Like, so typically our marketing goes, as it’s going to that, we send out neighbor letters to the contiguous owners and we buy it so cheaply. We can essentially create our own wholesale list in any market you want because you have a neighbor that’s touching that piece of land. So, if Atlanta square and it’s got four people, then you hit the corners of those two. So now you’ve got eight people. You’ve got eight people that have a vested interest in what that piece of land does.

And we send them a letter before we actually hit the market with it and say, Hey, we’ve got this, we’re going to market it at this price. It’s going to hit the market. We’d sell it to you here if you’re interested. then we can offer that financing if you’d like it. And so, we just continue to grow that, that always, well.

Adam: [00:12:37] I love to think about that one too because imagine the house you’re living in right now, if the piece of land right next door came up for sale and, or was about to come up for sale, but the owner contacted you before and said, Hey, I own a piece of land right next door to you and I’m going to sell it. But before I do, I wanted to see if you, but want to buy it. And if you do want to buy it, I’ll even owner finance it to you if you can’t afford to pay the whole thing right now. And so, like who wouldn’t jump on that? I know I would do that.

Bryan: [00:13:01] I would do that heartbeat.

Justin: [00:13:04] We have a, we have a book it’s out. We’ll give you the information for the show notes, but we’ve got a special for your guys for seven 99, but what it does is it talks about doing that exact same thing, but buying it from a state and then sending letters out while you’re waiting for the period to come up on the litigation period or the whole time, because it’s a tax deed property. And then you send letters to the neighbors and say, Hey, we want to double the size of your lot for 500 bucks and you’re buying it for $50. And so, you send it to them. 40% of them buy. The rest, we put it on eBay and it sells on eBay. That’s awesome. So, you’re still getting that same money.

Bryan: [00:13:37] You guys, you guys are getting me really excited to do. You guys convincing me.

Justin: [00:13:41] Yeah. And that’s, and that’s the good thing. And that’s kind of, why we’ve we, we like to do these interviews is because so many people drive by raw land. They’re going on a freeway and they see this just lancing at their neighbors. And they’re just there, they’re numb to it. But at the end of the day, it’s an asset class that’s got a value. Now, if you can buy it for under that, like any asset or any, any item, buy it for under the market value of it and try to realize as close to the market value as you can, that’s the profit, the margin. It’s how you get wealthy.

Bryan: [00:14:08] Definitely. I agree with that. And you guys bring a lot of good points too, you know like you don’t just have one way of just selling your deal. You guys have Facebook.  You guys have Craigslist and all the other ways you guys use. So, I just want to make that clear to our listeners is like, some people are like, oh my God, I have a buyers list. There are no other avenues [inaudible] you guys made a good point. Like there are Facebook groups out there that specializes in this type of things. And these have investors in there they’re ready to buy. So that’s a great tip for our listeners. I really liked that, man.

Justin: [00:14:40] Yeah. Adam had talked about the off-roading community. So, one day I was stumbling around and I’m looking at this Overland group. And this guy, what he does is he goes out and buys property with 15 or 20 people. And they all kick in some money. They like cheaper property. They can go park their Overland rigs on. That’s a car that has the 10 on top, and everybody goes out there and camps. And so, all these families have this camp spot for a couple of hundred bucks each. And so, I got involved in this group and I was looking, I was like, man, I could buy land for a hundred bucks with these guys.

And then I started thinking about, I was like, I can just sell them the land because they’re paying market value and I can bring it to them cheaper. So, every deal I get, I said, Hey, are y’all interested in land in this area, you’ll run a buys group. If they say, yeah, if not, he lets me post in there and they’ll have somebody else in a group because, oh man, we want to be in that area. Can, can we get a cash deal from you? And we sure let’s go. So, you know, it’s the power of social media and what it can do for you. That’s not the only exit strategy.

Bryan: [00:15:29] Yeah, you’re right. Can you walk us through one of your most creative deals that you guys have been there? Like what is the most deal? You’re like, wow. That’s so creative, what we did to make this work.

Justin: [00:15:38] You know, trying to think one of my, one of my favorite deals I like talking about it’s a, it was. I’m driving down the road and this guy calls me and he calls my office number, which is a Google number. Most of us have Google number set up that goes to us. So, any rings and goes, Hey, this is so and so I sent you your letter back. I hadn’t heard back from you and it’s been a couple of months. What’s going on. And I said, Oh, I hadn’t seen anything from him. I’m sorry. So, it’s kind of tell me about it. And he goes, well, I’ll tell you what I’ll do. I’ll just resend everything back to you and just give me a call on Monday. And I’m like, okay, so now I’m really curious. This guy is a professor in California and he was responding to a piece of land in Oklahoma and I’m in Texas. So, kind of, so you kind of know the geographic of how everything is set up. And he tells me it’s 135 acres. His great grandfather bought and left it to his grandfather who left it to his dad who left it to the three sons. One of the sons had passed away. And he wasn’t really entitled to anything anymore because he passed away, but he wanted the wife to be a part of it. So now I’ve got this, I’m like, oh man, when you start hearing any, in any real estate, when you start hearing deaths on deeds and transfers, you’re like, let’s just hope they got it right.

They tried. And in 2011, the guy came and he saw the piece of property and knew he didn’t want it because it was a junk piece of property in Oklahoma. He wanted nothing to do with it. And I said, okay. And I had offered them like $48,000 for this piece of property is 135 acres. So, I go out there and I look at the program. I, man, this is great. This is worth some bucks. It’s worth a couple hundred thousand dollars. So, in my mind, I’m salivating, you know, I got to get this deal done. Well, I had to do, what’s called a quiet title action in Oklahoma, where they put in a newspaper and they get clear title. We run through that. And during that time, I go out to look at the land and I saw that the neighbor had been paying the taxes on it because he had a land lease.

There’s a four-generation handshake land lease to run cows on it. Yeah. So, I walk up to his house and I’m not a small guy. Me and Adam are decent size guys who like to work out and this guy pulls a gun on me and goes, I don’t know who you are. And I was like, Whoa, do you, do I need to get mine? It’s in the car?

Cause we were at Texas, Oklahoma. We kind of do stuff like that. And he’s like I said, I’m just here for the family next door. I want to look at the property. I just wanted to, I know you kind of has something to do with it. So, I want to talk to you before I walked on the property. They don’t want you to come out and shoot me. And he’s like, Oh, okay. So, we talked for a couple of minutes. He’s like, well, I don’t want that property. I have supposed to have first rider refusal. And I said, okay, cool. Because my kids may. I was like, Hey, just have him call me. The daughter didn’t want it. Son calls me three weeks later after we get it, we’re going through the quiet title, get all closed and ended up making me a pretty low offer.

And he knew it was low, but I made three times my money on it. Yeah. So, after it took about three months to get everything closed, but $52,000 total in with all closing costs, quiet title. So, $135,000 cash that he handled, all the closing costs, you know, that’s, that to me was pretty creative. It’s a beautiful place. And I went ahead and wrote into the contract. I got hunting rights for the rest of my life on that piece of property from one of them kind of creative, but it shows that what you can do with land and why that value is actually there.

Bryan: [00:18:37] I love that. I love that story dude. Lots of creativity to make it work, but like you mentioned so good points too. It’s like if you buy right, it doesn’t matter what the situation is.

Justin: [00:18:47] You know? Yeah. That’s the thing we get mad because we’ve gotten greedy in some aspects when we, when we mess up and we only make 20 or 25% in four months, you’re like, man, it only made 25% just to dump it, to get it off the books. And you think about that.

So, think about saying that only made 25% of my money in four months. That sounds horrible to say it, but at the same time, I’m like, yeah, that’s what we’re busters.

Adam: [00:19:10] And the land niche 25% is a bad return. I mean, when you’re used to doubling or tripling your money, then when you make 25%, it’s a big letdown.

Justin: [00:19:21] We sound horrible for saying that.

Bryan: [00:19:23] Over here and flipping it, I’m like, I’m so happy that 12%.

Justin: [00:19:26] Yeah. And that’s, and we kind of, we laugh about it and joke about it, but, you know, that’s kind of part of the stuff that we’ve learned. And the systems we put in place to mitigate that risk. Like you said, if you can buy anything cheap enough or you buy, right. You’re not going to go, you’re not going to get in trouble with it.

Bryan: [00:19:41] Awesome. That’s a really good point. Thank you for that story guys. Appreciate it.

Adam: [00:19:46] No problem.

Bryan: [00:19:46] Yeah. So, what are your long term and short-term goals of real estate? Do you guys want to get the big real estate development? Are you just going to just buy the bigger, a lot of lands?

What’s the goal?

Adam: [00:19:56] I think for me it’s to do is. Keep increasing the number of deals that can be done and the profit range, but by keeping the company small. Cause I don’t, I have no desire to be an ivory tower with a 50 employees and analyst and all that stuff. Right. If I could get two or three, four people with the, maybe they’re a what’s word, VAs, you know, they’re virtual and we grow and you just have a solid team for me.

That’s it? I mean, that’s. That’s kind of where it’s at.

Justin: [00:20:23] Yeah. And that’s it’s, he makes it, he makes a great point that you know, a lot of people see like the Trump towers and see their names on it. You see that the Grant Cardone building and everybody’s like, I want my name on my own building. And what we, I think we’ve both come from, this is like, if we can do enough deals that we continue to make money and they’re a bigger profit range. You know, if I talked to our clients about this all the time, if you have a hundred grand working and you got 10 properties, average purchase price, 10 grand, and you sell them all for 30,000 bucks on average, You’re making $200,000 every time that money turns. Well, if your whole time is 90 to 100 days, you turn that three times a year, 600 grand profit by yourself with no assistance other than using title companies and realtors.

Would you, would you do that? And do you want to get any bigger? And so, if you, for me, my short-term goals are kind of, continue to grow the three companies that we have, but it’s to move into a, more of a, Hey, let’s go out and buy big ranches. Cause that to me is like really attractive. Like, Hey, I love these big, like old ranches that have been on the market for a while, but bring them down to smaller ranchettes for the average person can afford them. And we force appreciation. You can hold the notes, you have all the exit strategies we’ve talked about and we kind of create new land by doing that because we’ve taken this massive ranch and developed it down to a ranch. And yet.

Bryan: [00:21:35] That’s awesome. I really liked that too, because for me, it’s like, I’ll just keep my team as small as well. I feel like what’s, your team grows like past 10 people is so much personality to handle, so it wasn’t extra headaches to handle.

Adam: [00:21:48] Yeah.

Bryan: [00:21:49] I agree. You guys, like if you could do in a smaller team scale, what is it like smaller team, like, hell yeah, let’s do that. And invest in the principal too. It’s like I had an option to be like 200, 300-unit rentals.

Well, I was like, no, that’s not, I don’t want any more headaches. I just want like 20 paid off units that will give me passive income. No matter what, you know, this is where we have a lot of similarities. So, like, wow, exactly how I think too.

Adam: [00:22:16] Just imagine if you had two or 300 finance pieces of land, there are no tenants. There are no bad headaches. So, I don’t know. That’s, that’s pretty feasible to do to.

Justin: [00:22:25] Automatic payment systems just paying you and every day you’re just getting direct deposits.

Adam: [00:22:28] We’re going to sell you on land. You’re going to be a land investor before the show’s over.

Bryan: [00:22:33] Oh no, wait, it’s something there.

Justin: [00:22:39] That you say that, and that’s kind of funny because we, out of the, all the deals we’ve done, I bet we’ve only been to about 5% of them.  So, it’s not typical for us to go to the land because we got you have Google earth, you can pretty much see. And if you’ve got County maintained roads, typically you can see them on street view. So, you can see what’s going on out there. Then we hire a drone pilot to go out and get us a video. So, for our marketing material. So, for 200 bucks, we can have somebody on there with an in-depth look, video and everything, and we know exactly what’s going on on that property right now. And that beats a plane ticket to, you know, wherever Colorado or Tennessee and being gone away from her family. We do it in our office and have a good time as we go to lunch together and just kind of laugh about it.

Bryan: [00:23:16] That’s awesome. I love it. I love how you guys are putting in putting the 21st-century spin on everything where it’s like everything remote, including you investing.

Adam: [00:23:26] We haven’t really talked about our marketing either. I think that’s probably the most unique part of it is we take all the negotiation out of it because when we do our marketing, we’ll mail an entire County, everyone that owns land and entire County we’ll make them a blind offer site unseen 30% of value. So that way there’s no going back and forth with, like, let’s say you send a postcard. Well, now you got to go see the property, do all this and then make an offer. Our people know what we’re willing to pay before, before they ever even call us back.

Justin: [00:23:53] So it qualifies that lead. You have a warmer lead coming back to you. Now, sometimes people say, Hey, you offered me eight. I really want $10,000. We look at it and if the value is 30 or 35, yeah, we’re going to jump all over it. If the value is 12 and we offered them eight, we say, Hey, we missed it in your area. We apologize. We want to do the deal. The best we can do is four. And then they have to make a decision about whether they want to sell or not. We’re not being so rude because they already know we were at six or eight, you know? So, it’s just a matter of us correcting it.

Bryan: [00:24:19] I like that strategy too, just because I, as you know, I’m in the Bay area. So, as you walk away, you know, you send out postcards and, you know, name a price, what would he do? They’ll call you back and they’ll be like, Hey, like I want to sell my house at absurd amount. If you give them over, like the buyer and seller the ability to hand off the first number, they’re going to say something ridiculous.

Adam: [00:24:42] Yeah.

Bryan: [00:24:42] Your strategy a lot where you’re like, you know what, let me give you a number. If you don’t like it, say, no, if you call me back, if you want to negotiate, let us know we have that baseline, you know?

Justin: [00:24:53] Yeah. Yeah. That makes a huge difference in negotiation. And we’ve used the same technique with houses and apartments and we’ve, and we’ve been successfully doing that as well. I mean, imagine sending an apartment complex, a letter of intent with a blind offer on it. And when I say that to a multifamily person, they go, you can’t do that. You need to know the cap rate, the NOI, you got to know this.

I said you know what you think it’s worth. Like you have an idea, then you’re going to an inspection period. Then you figure it all out. The letter of intent just says, Hey, I’m willing to do this like this at this time. And so, we’ve done that as well. And people look at me like, I’m crazy when I say it and we bought 15 or 20 multifamily buildings like that.

Bryan: [00:25:28] I love it. That’s a great strategy, guys. It’s to show you the best strategy.

Hey guys, what is your biggest source of motivation? What is your, why? What keeps you going every day? Every morning.

Justin: [00:25:39] Man, for me. My, my wife kind of, I, I could say the easy stuff is that, Hey, my kids, my wife, my family, and I want to support them, but really it’s I think if I went deeper than that, it’s I think with every, every entrepreneur, every investor, they have this desire from being a kid that they just, either something didn’t feel right to them. And they knew there was more to life. And so, my, why is that drive and trying to figure that out and proving to myself that, Hey, there’s this better than what I was, and I’m going to continue to grow from that.

So, I think that we all have that. So, like your title says, you know, crushing it up. Even when we crush it, we don’t realize we’re crushing it as an entrepreneur or somebody that’s going to be continued to be successful because we don’t think that we ever did it good enough. We’re going to do it better next time. We’re going to keep. So that’s, that’s for me as my Whys, continue to grow that crush and I want to keep crushing it. And when I crush it, I’m going to do it again better.

Bryan: [00:26:31] Love it! Love it.

Adam: [00:26:32] I’m there with him too exactly on that. But my why is also more of I have to. It’s like, I have to be a good entrepreneur. I have to be crushing it because I am the absolute worst employee you’ve ever seen in your life. I’m unemployable. I give me a job and expect me to be the worst. It will be okay. But if I have, I’ve always wanted to be an entrepreneur. And the only way to do that is to get out there and keep moving every day.

And knowing, I got to keep the lights on. I don’t know if you can see this, but I’ve got a tiny lamp on my desk where I, at one point in my life, when some real estate things went bad, when the market turned that this lamp was the only thing I had to like live by, that was the only electricity I had in my house. And so, I keep it on my desk now as a reminder, every day to get out there and keep working hard and keep building.

Bryan: [00:27:14] That’s awesome. I love that. I liked that a lot too, because for me, my, why is to. Oh, we’re using real estate as a tool to kind of do other things, but my why is to leave the world a better place than when we first came into it, I realized the only way to do that is to free up my time. Worry about your basic living expenses, all that stuff. You take care of that, your mindset changes. What else could I do to like help the world become a better place? You know, it sounds very humanitarian and all that stuff…

Justin: [00:27:49] I think we both agree with that. Cause you know, for us, with our podcast, our journey, wasn’t designed to say, Hey, let’s go out and sell a bunch of courses, a bunch of books, let’s get all this notarized and be notarized. Like we go to a big REI meetup. People are like, Oh, that’s Adam and Justin. It’s not about that. We, we thought, Hey, we’ve been through some of these problems. We had some trials and tribulations. Yeah. And if our story can at least help, one more person become successful and become financially free, then we’ve done our job as humans. Have good people. We’ve, we’ve affected their family and their generation, their generations of family. And so, for us, that’s kind of what it started as, Hey, let’s, we’re two friends. Let’s talk about what we’re going through and just record it. And 150 plus episodes later, we’re still talking about it. We’re still impacting those people.

And for us, that’s, that’s a win. If we don’t make any money off of it, we’re successful because we’ve impacted some other person’s life. So, we’re with your, why we agree with 100% believe in that.

Bryan: [00:28:38] I love your mission. I love your mission statement. I love what you guys are doing. Giving back as best values as you can, abundance mindset. You know, you could have a lot, like, you know like just so much money, so much money out there, like so many deals out there. Like you can all be really successful and that’s a trait that I see, like really successful people have, you know, the abundance mindset. You guys definitely have that. Definitely.

Hey, so a couple of questions left. So, if you could restart your real estate career, what would have, what would have you done differently?

Adam: [00:29:09] I think I would have scaled up quickly. When you’re brand new, and you don’t have a lot of money. It’s really hard and you want to kind of keep it all to yourself. But if you get out and talk to everyone, you can, and especially the deals that we’re buying as cheap as you are, when you first get started, you can partner everything.

Everyone’s kind of afraid to partner as much as they can. But yeah, like if the more people you can find a partner with, the more money you can make, even if you’re a percentage off of each deal, a smaller.

Bryan: [00:29:34] Absolutely agree on that one.

Justin: [00:29:35] Yeah. That’s a great one. I like the idea of scaling faster. I’m going to take a different stance on this one though.

Adam: [00:29:41] All right, go ahead.

Justin: [00:29:42] I’m going to, I’m going to take the stance that I don’t know that I would do anything different because if I did something different, I wouldn’t be here today. And the reason I say that is I feel that we’ve done what we needed to do to get here. And it also placed because it had to happen.

You know, now would things have been better if I would have done something different at one point? Yeah. Or if I would’ve tried harder in this or not, but it still got us here. And I think that I find our success has been because we were perseverant and we are consistent. And those are the things that I think need to people need to work on is scaling and being more consistent. And knowing that just one little problem, it’s not going to just destroy you. And so, if you can get through that at the beginning, which we had to get here, you know, I, I can’t know that I go back and change anything. I know that sounds kind of like a cop-out, but I don’t know that I could I’d start sooner, have more time, you know, I can’t go back and change that.

Bryan: [00:30:32] Yeah. Well, I agree. Both of you guys, you know, there’s some things you wish you’re like, ah, I should have done more. There’s something that you look back and you’re like, wow, like it’s okay. Because without these things that happened to me, I wouldn’t be the Chris that I am today. That’s a little bit more valuable.

Justin: [00:30:47] Yeah.

Adam: [00:30:48] Oh yeah. You definitely learn a lot from your mistakes.

Justin: [00:30:50] Yeah.

Adam: [00:30:51] You just hope they don’t cost you anything.

Justin: [00:30:52] Yeah.

Bryan: [00:30:54] I like what you brought up to be like, Hey, like how, how consistent are you? You know? Cause I feel like in real estate to be successful, you have to be consistent.

Justin: [00:31:02] Yeah.

Bryan: [00:31:03] There’s going to be a lot of times where things don’t work out for months. Why would I do anything? You know, what the hell is going on? You have to be able to work hard when no one else is looking.

Adam: [00:31:14] Yep. Yeah. A hundred percent. That’s one of my biggest things is people give up too soon. Right. But how, how soon as too soon is, you know, you never know you could be working on this for two years and then you quit because you didn’t do anything, but all you needed was two years in one month before you struck it big, right?

If this is your dream, if this is your goal, then you never give up. You just keep working for it.

Bryan: [00:31:33] Absolutely agree. I’m one of, I’m one of those guys too. Like I was in real estate for two years. I couldn’t find a deal. And when the first deal came, the second new came like two, three days after that, you know, because I was preparing myself the two years to know what’s good about doing to what, what to do next.

I literally flipped like five houses, my first four bloods of action. Prior to that, it was like, two years of like, oh my God, I was such a poser.

Justin: [00:32:06] That’s you? You say that and you say it jokingly looking back, but there are a lot of people that probably listen to your show and listen to ours that sit right on that, that fence. And they’re land investor because they bought the course or they’re a real estate investor. Cause they bought whatever course and learn and go to the meetups. But they’re scared to jump off. And that’s the thing is you, you kind of have to just jump and do it, get started and go be consistent and then know there’s going to be some issues. Just work through them and keep moving forward.

Bryan: [00:32:29] Yeah. Analysis paralysis, you know?

Adam: [00:32:33] Yup.

Bryan: [00:32:34] You guys, what is your favorite book or podcast? I gave you guys such a big breakthrough that changed your mindset.

Adam: [00:32:42] So I hate saying this because I feel like it’s every real estate investor answer when it comes to books, but it was Rich Dad, Poor Dad. Like, I don’t know anyone who hasn’t read that book, especially when there are newbies and just, isn’t like, oh my gosh, this is it.

What have I been waiting for? Like, I, I cringe when I say that, but it’s true. That’s the book that got me started.

Bryan: [00:33:03] That’s an awesome book, by the way.

Justin: [00:33:07] I’m going to tell on myself here a little bit, Bryan, I recently switched the way that I learn and I’ve been using an app called Blinkist. And so, I can read, I can hear the cliff notes of three nonfiction books a day at a gym. So sometimes the amount of information I’m getting to consume now is so much that I can’t remember the titles of them, but I get that stuff. So, one of them, I just read was about ultra-learning. And to me, that was super cool. How the different ways you can learn a massive amount of information really quickly. And in the different ways you can do that in the different angles it takes to do that.

Bryan: [00:33:43] They go off that topic. One of my favorite books that I read this year was Deep Work by Cal Newport. It talks about it’s thought like you learn a lot of these really quickly. If you set up time blocks any day, you have one or two hours, we use Dolan ages, trackies, and focuses on the subject. And your ability to intake the motivation comes a lot quicker because you’re not distracted. Part of strategy. The book that he’s like, okay, like your time, your attention span is very limited. People say they work for an eight, 10 hours or whatever. That’s all. It’s all. It’s not true. Time blocks.  You do like two hours of deep work. Did you take an hour break? Did you do two hours and a 2-hour break? That’s the best way to learn? That’s what we grow. That’s one of my favorite books I read out there. Hey guys. So how can our listeners find out more about you? How can we reach out to you?

Adam: [00:34:38] Yeah, Casual Fridays REI. That’s our podcast.

It’s like we said earlier before, it’s all about our land journey. We tell our ups and downs. We answer the questions that we see around. We’ve got a group, we answer questions for them. We don’t try and leave anything out. That’s every Monday, Wednesday, and Friday. We’re on Facebook, Instagram, and YouTube, @casualfridaysREI as well.

Justin: [00:34:58] And casualfridaysrei.com.

Adam: [00:35:00] Yeah. Sorry. I forget about the website.

Justin: [00:35:02] Website’s there too.

Bryan: [00:35:04] I’ll make sure to include that on the show notes.

Adam: [00:35:06] Awesome.

Bryan: [00:35:07] Awesome. Hey guys, thank you for being on the show. It’s really enjoyable. I appreciate it,

Justin: [00:35:11] Bryan, we appreciate it.

Adam: [00:35:12] Yeah. Thanks so much.

Bryan: [00:35:13] You guys got me to become a land investor now. We’ll be talking more after the show.

Justin: [00:35:17] We’ll send you a copy of the book that we talked about. Real-estate Investing. We’ll send that over to you. See, it’s a quick read. You’ll enjoy it.

Bryan: [00:35:24] Awesome. Thank you, guys. Appreciate it.

Adam: [00:35:26] Thanks. Bye. Bye.

 



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