We’ve all heard it. Real Estate is a great investment and will transform your life, family, and legacy in amazing ways. But is it?
I mean, it’s great, but is real estate the best investment?
The stock market is pretty incredible too–especially if you get in on the ground floor of the next Microsoft/Facebook/Snapchat.
But to make money with stocks, you have to pick the right stock…
At the right time…
And invest enough to make it worthwhile…
That takes a little too much luck for me.
I’m more a fan of hard work and predicable success than dumb, random luck.
Real estate rewards hard work over luck, far more than picking stocks.
But there’s a problem. While real estate is a transformational investment strategy, it’s not perfect. Not by a long shot.
In fact, there’s two major problems with getting started in real estate. And one problem is HUGE.
Money is a big problem, but not huge (believe it or not).
Money is why most people get into real estate investing, but few people have it to start with.
And do you need money in real estate… and lots of it.
It’s not cheap to buy a house, fix it up and flip it for a profit. You need starting capital, a renovation budget, and then more seed money to keep buying more houses. Want to buy a block of houses to rent out? You need an enormous stack of cash.
Have you ever looked into mobile home parks? It’s an amazing investment, and with our aging population, it’s a sure-fire hit. You almost can’t lose. Except for one minor issue; do you have an extra million lying around to buy the land or even more for an established park?
Chances are you’re like me and you don’t have that kind of cash to start your real estate business.
Actually, freaking out over the purchase price of mobile home parks cost is how I began my journey to buying and selling land.
I had a pretty successful video production business, making six figures a year with 5 employees and hundreds of clients. You might have even heard of a few of them.
But I was absolutely miserable.
The thing was, up to that point, my video business was the best job I’d ever had. Before I started the video production company, I had 11 jobs, everything from ambulance driver to carpet cleaner.
It was that last job, as a carpet cleaner, where everything changed.
The second thing you need, even more than money, is the will to change your life. Without it, you won’t get anywhere.
I know how hokey that sounds, but it’s true.
When I had my epiphany, I was working a carpet cleaning job for minimum wage in 2015. The kicker was that I also had a compressed disk in my back. If you’ve ever cleaned a carpet, it’s a lot less fun with a compressed disk causing you grueling pain with every push and pull of the vacuum.
Every day, I’d stagger home and crash into my bed from exhaustion and pain, every nerve in my body on fire.
My wife finally let me know enough was enough.
She told me I needed to find a new job that wouldn’t kill me.
I had one idea, but it was a long shot.
I’d always enjoyed making videos (been making them since I was a kid) and thought I could make videos for local businesses. My wife agreed it seemed like a good fit.
With just $6k in savings (we are pretty frugal, which helped out a lot), I quit the carpet cleaning job, built a basic business website, contacted some local businesses, and (amazingly) within 2 months I was making $5k a month! It was absolutely incredible.
As I kept gaining clients and doing more work, I was making more money producing video than I’d made in any job before. I’d always loved making video with friends, even as a kid, and this was me getting to live my dream and do my passion.
There was just one problem.
I turned my passion into my business, and it killed my passion.
Could you walk away from a guaranteed job? What about a business paying you $10k a month?
Everything changed for me when I realized I was working 7 days a week, making 100 videos a year, for more money than I had ever made, but I was miserable and didn’t see a way to grow the company.
More than that, I didn’t want to.
This business was killing me–in a different way than carpet cleaning.
I needed to change. Again.
Thankfully, life provided a hint on a trip down to Texas in 2019.
About 40% of my clients were in Real Estate, whether agents, brokers, or developers. One of my friends, Ryan, was driving me around and talking about alternative real estate investments like mobile home parks.
He wouldn’t shut up about them.
And he planted the seed of an idea.
Pretty soon, I couldn’t stop thinking about mobile home parks. They seemed like an incredible investment! My parents were former real estate investors (they had some rotten luck in the last recession) so I knew the industry and its risks. It wasn’t a surefire win, but there was promise.
I began by researching mobile home parks investments. They seemed like an excellent investment opportunity. Incredible actually.
But that $1 million price tag was just too much.
I just didn’t have that kind of money, but I figured that others probably did. If I could get 100 investors to invest $10k each (or 10 for $100k!), we could all be making a profit in a few years.
As I was looking into mobile home parks, I ran across some related video on YouTube about investing in land. I won’t tell you exactly what videos I found because they were so hokey. I actually laughed out loud when I watched them.
“Really?” I thought. Buying and selling raw land? It seemed a ridiculous way to make money.
I didn’t come to that conclusion lightly either.
For two years, I’d been filming and learning from real estate agents, investors, and brokers. Not one of them ever mentioned investing in land. No one in the industry that I knew was talking about this.
In fact, there are quite a few videos on the internet calling land flipping a scam.
So I kept researching mobile home parks and lining up my investors. But there was something about that land flipping idea that I couldn’t shake. I felt like I had to disprove the concept before I could move on. The video was so hokey that I assumed it was a scam, so I needed to prove that it was a scam to myself before I could keep moving forward with my mobile park plans.
I found lots of basic videos about investing in land. The more I watched, the more I was intrigued. The hokey videos and sketchy tactics gave way to real education, and I saw promise in flipping land.
It wasn’t a scam. In fact, it became clear within just a few days that this was a brilliant investment opportunity. Investing in land was a better long-term investment than mobile homes, flipping houses, or even apartment rentals!
There were three big reasons that land investing stood out to me:
1) Speed of execution
2) Low cost of entry
3) Low risk (especially for investors)
We’ll go over why each of these is important later in the course.
I started my land business in January 2020. Like so many others, I thought 2020 was going to be my year.
The business made no money the first month, and the second month I finally bought a property in Arizona for $1800. I paid cash, used the wrong forms, got yelled at by an agent, and made a ton of other mistakes.
But I sold the property for $3,300 a month later. My second property I bought for $2k and sold for $6k.
That’s thousands in profit for just a few hours’ work.
I was hooked.
Using my profits, savings, and some money partners, I bought more properties. I also sold my video business in July 2020, reinvesting the money in my new business.
I was all in.