Episode 70 Your Questions Answered

Automatic TRANSCRIPT

And. Welcome to the casual Fridays REI podcast, where you'll learn about the wildly profitable Mitch of land. Investing active lane investors. Adam Southie and Justice liba are here to share their experiences with you, so that you can learn how to build massive cash flow and huge profits from this highly lucrative niche so without further ado. Here are your host Adam Southie, and Justice liba. What's up everybody? I'm Adam Southie here with my co host just and liba. And this is the Catholic Fridays REI podcast. It's wednesday. That means we're catching up on what's going on our business. But we've also got some questions we're gonna answer today before we do that. Let's talk about some education guys were big fans land academy, and that's because Justin, I both got our star with them and for thinking about getting this niche. We have a special offer for you. The first one if you put the word casual CAS UAL at checkout, you will get five hundred dollars off your role and the second one. This is a big one. We take a screen shot of that. If you. Send it to us at consulting at casual Fridays, REI dot com. We will give you a free half hour of consulting over whatever you want. We can pick a county pricey county. You name it. We'll get it done. So let's get started. Gabby wednesday. Why are you laughing so hard? I was taking a selfie of doing that. And you look it up like you're getting mad. No, I wouldn't get mad. I would like to lend a heck is he today? Non I pretty good. Ignoring you, I was. I was thinking about what I was saying because I kept like kept having to correct it. Man. What's up? It's Wednesday, ma'am. Just Ulan grinding through the week grinding trying within Baden Lhasa. I feel like things are kinda slow I skipped a Mailer. What? Yeah, I because we got some things that we're working on. Now, some big things come in. And, and so I kept a Mailer right now too. Time, put some time and a little bit of capital and different direction. It's funny that we have to kind of because you can't just like Miller today and think that you're gonna not be busy next week. Now, if you skip today, it's usually a month from now that you're not busy, so you have to plan that out on your business. That's crazy. I like that. I did because I did the same thing, but then I miss counted because for those who use Plum, I will be in Canada for a week, so Plum will probably be shut down because I'll be offer it and my partner, he's that I have with Plum, he works. And he's a silent partner. So he's in less. There's an emergency will he get involved? But. The one where you're going to be, I'm going to Canada hunting the Canadian black bear. All right. So ready, I'll be slipping. I got all my stuff in get some new Cam. Oh, I got a cameo Geli suit a camel rain, suit, cammo short sleeve came a long sleeve, cammo, three-quarter sleeve. Can't okay there. But we got we got a lot of. Cam. All right. I'll feeling Geli sued is that necessarily that just for fun. Bye dad bought for me. It's my birthday present. That's yeah. No, it's real. It was real nice thing. It's cool because it doubles Gilly soup. But a doubles as an insect repellent like an insect suit. So I, I never hunted. Canadian never been springtime hunting, Canadian black bear and apparently is big mosquitoes up there. I wouldn't think that in Canada. I don't know what I wouldn't know what to think about. Is it gonna be cold? I don't hate to transfer eighty two thirty. Yeah. So, luckily, Cabela's has, like a summer spring time bear hunting guideline. Hey, things you need. And so he printed me off a list. I was like, okay, you need to make sure you have all this, and it was like bring out the camera. It's like bring a cammo jacket. Bring a camel rain suit bring a Cama wool shirt. Bring Cam o- short. Sleeved shirt, bring camel like dry wick shirt break, I'm like wanna Campbell of everything to walk WalMart just grabbing stuff. Luckily, Amazon hooked me up on ice. Yeah. So my wife is like how much money have you spent on this trip really is not that bad. But it's not that bad. I had to buy thermos. Oh, you know what that is a, what thermos l it's like this looks like a kind of like a. I don't know how. Like a nineteen ninety cell phone that has a vent mesh thing on one end. And you put butane and a Matt in there, and you wear it, it creates a fifteen foot bubble around you of mosquito protection. Thought you're going to be like way overdone, like the overdo it, you're gonna see some like I'm gonna be like inspector gadget, you're gonna see some experience, Canadian hunters looking at you like who is this, clown? He's got his Davy Crockett hat on me. Like what hunting is Davy Crockett hat. You got your knife in your teeth and you just like I should be running at these bears. I think that will probably be just because, like, oh, you have a logic thing as I think we're sleeping in a tent crap. I forgot to buy a mad for my sleeping bag crap to find one. Double check that list could be uncomfortable. Thing city boy, is setting up his bedroom over there. They're sleeping out in the hammock cool to take hammock. So, yeah, that's coming up. So for the Plum listeners clients that work with Plum, I will be gone. So every limited response, I believe that we will spend a little bit of time the lodge once everybody's gotten a bear to do some fishing. So I may have some wifi there, but it'll be really limited on what I can do. So if you're closing properties this week, make sure you close them after the thirteenth. Yeah. Good point. Yeah. Okay. So we have things go over today. Oh, it's gonna be free talk. But so I'm going to answer these questions as I would answering if they were coming from you, and we were having a beer. Is that work cer-? Okay, crispy creams this morning to crispy. Okay. Well, so everybody has heard they haven't heard his voice, or they don't know about, but intern Brian in term, Brian, we love intern Brian. He sent us some questions, he wanted to hear, and we didn't really know if they were worth of Aleppo, because, you know, some of them are technical, we're not expert, so we're going to give forgive our. We're just two dudes liked to buy land cheaper than what we're going to sell it for. Yeah. Okay. All right. So the first one, how do you structure your business in terms of tax strategy and accounting? So this is the thing that hangs up a lot of people in, I me, personally, I set up my LLC about it was about three months into the business. I want him said of LLC, and that way, I could get the tax benefits. And the security of the LLC, but everything else after that, my, my suggestion would be keep track of every expense, and ask your account or your CPA. Do you do not need to have a CPA before you buy your first piece of property? So don't start paying for something like that. Just keep track of an excel spreadsheet, go from there. Yeah. Dispel up. I would say you don't you Nelson to do this business note, I did it because I thought I need a business in LA to do this makes me feel good. I'm. Oh business owner. Right. And then I do keep track of my daily expenses. I know m- inside out. Everything else goes the accountant Yano, but too much into it, because you don't want to over think all this stuff, it's not your job. It's you're not the tax professional. You're not the lawyer not to do that. That's the thing so many people want to take the burden of all these things on themselves. If you have your numbers and you know what they are. So say you you spent twenty five thousand dollars on property, you sold it for fifty thousand dollars. So you have twenty five thousand in profit, and then you right off the expenses for whatever else is in there. You're count knows what to do. And then hopefully, they're saving you money. And they find that you only you lost five thousand dollars at here. Even though you really put twenty five grand in your pocket. Okay. Next question, do you have any liability insurance or other protections for your business? I, I don't the LLC protects my personal stuff from it because it separate the liability insurance. I did look at that with a couple of different insurance agents, and we talked about doing a, a blanket policy in since I had some other property houses we did a. A one million dollar blanket policy just to kind of cover me for the stuff that I do. Yeah. For the insurance for me. I've been thinking about it. But as anything I mean, if somebody says, hey, just look at your property, great long as you know, you're doing it at your own risk, just kind of liability, and you can put away in there, if you want, and then you, you know, the hold harmless agreements in a lot of your, your contracts, you should have some kind of hold harmless clause in either your advertising or your contracts. And so those those tend to help you. I next one how much research do you do on county before mailing? It's funny. So like, I'm like, I go by state, and we've talked about high price and Pitt counties. So I pick a state and I'm like okay, and then I start scrolling because I'm sure ching, I priced by margin and price that I want to spend what I'm gonna pay for it, and what I'm going to sell it for. And then I look for the prettiest pictures, and then from there, I usually do a quick check to make sure there's a metropolitan area within two hundred miles. Yeah. I don't how much research do you do? I wouldn't say a lot. I mean I don't I do enough to look for the things that I'm looking for, and that's about it. I don't steer away from a now paralysis by now. I do checks if parcel fact. Yeah. I do check to see if I can get the assessors information one thing, I'm gonna have to add that I never had to worry about getting the deeds. I found a county that I couldn't get in and that, that bothered me here recently. Yeah. Kind of look, whereas it somewhere, I wanna be does it have a good county website, and I get on parcel fact, I like pricing consistency. If I'm gonna mail the entire county, one price. Yeah it's not a not a ton. All right. Do you have a buyer's list and wholesale list? And if so, how to use it I had a few people, I know that work in certain areas than out reach out to on stuff. But if you're listening to this and you ever see a property, I have listed, it's for wholesale two. I mean you just call me and reach out, so no. But as for a list, we started actually capturing stuff with casual Friday, our Email list here, and then, you'll we started building our list out there just for people that have been visiting him we send out three times a month. We send out a deal that we offer maybe five thousand dollars off the property or it may be, you know, some property that we have picked up pretty cheap. You know four five hundred bucks. Yeah, I have a bias clicked everyone's Email as ever responded to me off Craigslist ads off of lands websites. Whatever just keep that Email list, San for me. If you see a property, there's probably a good chance of also a wholesale price on it. And yeah, we'll mail the people, but also use the land, motos lists. We do use his as well. Yeah. And I get like I get. On that all the time you do. I haven't I've gotten to one lead off that damn thing. I don't know. Man. It's so weird because I get sales from land Moto and Craigslist. And I hear other people saying that they don't I don't. I don't know if I've ever sold anything not on those two and advertise everywhere. Yeah. It's funny. It's funny. There's not one way. There's not one right way. Yeah. Do you ever run a sales like you ever run a sale for your properties? If so, how do you do it? Everything's on sale. Yeah. Like I'll do I'll do cash special prices, and she's usually it's the title of the ad that I have out there. I may put another adult out. And then just change a title up a little bit and change. The picture try to drive more traffic, especially if someone's getting a little older stale. I will do that. Yeah. I'll pick a holiday. It'd be like memorial. We can sail, no dock fee and five hundred off. Okay. Cool. That's, that's probably about it. Yeah. Let's it I thought we had something else. But no, that's it. Those are good questions. I think I think they're great questions. It's the technical stuff that everybody seems to get hung up on, you know, and that's I think the difference between like new investor that becomes a little more seasoned. And they get like probably you a me are, and I and I can speak for a lot of guys that just kind of have that. Yeah. We'll figure it out. If it comes up kind of integrity, we are willing to take that kind of blind faith jump and say, hey, I'm not gonna worry about what my counts gonna say right now my count, pay to fix it. It's kind of like an attorney you pay your turn to fix the problem, not to enlist. You're going for advice prior to, but it's not to give you vice after the fact. Hey, no. I messed up and fix it. What do I need to do because there's always a corrective way. Yeah. People ask me questions. I just said, I'm just like I figured I'm want to happen. I don't know if that's like the smart because it's kind of odd for my personality, because everything is, like very set and measured and. I don't know about that. Is that what you me twice a day, I do not twice a day do going that would mean that I saw twice at least one day that, that doesn't happen. Yeah. There's just like so many things that if you get hung up on you're going to not do deals or you're not going to do something, because you're so worried about the technical aspects and a lot of interest in your own head because they don't really matter. I need my business car out of my cannot send a Mailer until I have a business card. I mean that's valid point though. You know if you can't talk about it, if you're not being. Is that right? Are you gotta be about to talk about it? Don't talk about the about it. But if you're not being about you can't talk can't talk about. So you gotta be about it on that business card. Or your website or. Yeah, I don't I think one of the. Biggest flips profit lies that we've ever heard some guide and have a website period, because one that we've consultant or a part of was bought for three hundred sold for five hundred twenty five thousand dollars day. One on the market was to twenty-five profit to twenty-five clear profit in his own. I land deal. No website, no by site. No sell side. No, no nothing. No. And then he still he bought three in that county. 'cause we does pricing and did everything in that county. And he bought three. And I think that county in painting close at three hundred and fifty back so that'll get you hooked. Yeah. Yeah, he sits. He's pretty aggressive on pricing. Now, he's, he's a statistician guy. So he's like pretty pretty aggressive. And he talked to him yesterday. And he was like, man. These guys I've gotten on back but it's with him. He's so like anxious all the time about doing a deal that he's, but he's, then he's probably only way, ten days or hasn't been fourteen or fifteen days. It's always crap. It's crap. And then and I'm like, what else are you doing? Well, I'm looking at these thirteen it came in there, all joke, though. They're all junk, and you're like, whatever man because I think he sent twenty one thousand mailers out on houses while so far this year. Patience is virtue here. Jackie doing deals. So what's going on with you? Well, I I'm working on some. We'll wait. We are council bigger stuff, but I wish I had a whole lot more to talk about my land business. It's just a I bought a bunch of stuff last month. It's all closed, and it's in the marketing pipeline, and that's it. I'm really happy with the properties about last month like all of them are really stellar and it's things are good. But now I skipped a Mailer, and we're working on our stuff my, my property guy that said, on a piece of property that shouldn't show up to closing. He had paperwork told me was gonna sign it and everything that we can't find him still. So he's got a deadline of what we saw it'd be yesterday that we're closing extra escrow, if he doesn't answer. So the cool thing was is like in this business happens is, you know, I still had mail out there. I bought three more properties while sitting there. And so, like I had about a sixty acre this week, a twelve acre this week and a twenty year this week. Yes. So the buy side still looking really good sell side has a couple of contracts out, and then I had four this weekend, you know, there were finalizing negotiate to get them up listed. I've got I think ten or twelve properties, with people out on them this weekend are this past weekend, as well in so since we record on recording Saturday this week, you know by now I should know. So either I'll be getting on the plane to Canada filling good with money in the Bank for the last half of the year or be killing a bear a spite. Yeah. You know, actually just think something that I was doing what is going to bring us up talk to you. But. So when I first got into like the owner financing stuff I didn't really know what I was doing. I'll just go on with it. Right. And so I didn't tell people that they couldn't get on the proper like they couldn't live on the property. And so some of my very first owner financed five acre deals, two of them that people emailed me this last week for contracts because trying to get permits to build on it. And this should be almost done. No off now. Six year notes and yeah. Yeah. Okay. So at least they're getting permanents will the parents would have to be in my name because I it's a I've got one lives out on one of mine. I've got one that put a cabin out on one had one had a house on it. Remember, an Oklahoma, mccartan county, the family lived in their RV up there on the weekends every down from south Texas, moved up there on the weekends. And when she saw I had an old house. Yes. If you could fix old house up. I said, Sears, it comes with it, and they rebuilt the house, and they're living in the house. So you're okay with all that. At this point. I'm I'm money ahead. I just smile about it and laugh. That's and that's the point of why we set up some of our terms businesses, what would be some people are like, oh, you got to babysit them. You gotta chase them down. They don't want him to build if you get your money back on the first side, you know, you keep going, you could get that litigation. Later with them if you need to. But I just get your money back as fast as possible rewards. Now, they're they have a vested interest in it. Yeah. But so I don't let now days I tell the can't live on it permanently so you can enjoy your land treat lane. Do whatever you want, don't building permanent. So you're paying it off. I didn't do that. I put no primary residency clause in it. But I didn't when I got started. And so now I'm now going back and forth, like I haven't emailed him back, yet kind of it. So I'm trying to figure out what say they're gonna mortgage you. They're going to build it cash out of pocket. Don't know. Okay. I mean worst case scenario, they improve it. Yeah, I guess so because then you go foreclose on it. Right. And you get everything. It's just one of those things we're going to have to learn one day. Yeah. So you either write it off. Showed us business loss. Thank you, Mr. tax. I don't think that that will. I don't think I think that they're good payers, which is why I'm like plane just like yeah. Okay. Whatever if need a permit let me know. Because I've only one of them has been late. And he was at one time, and he was emailing me like, Stu, sorry. Sorry payments coming paints coming. So I gotta. Yeah. So I gotta trust them, but you never know you build a house on it. And they're like. I don't need this or you know, I've got the house on it now. What's it gonna do? Stop paying for it. Yeah. Go to Milan and use my tractor bulldoze. I thought about it too. What have you just show up the bulldozer? Like, hey, I'm Adam you bought. This for me. You quit paying his my land mine my kingdom. Yeah. Oh man. Well, you got anything else. No started getting to summer so that no, the parents are getting a little bit distracted. I have been at home because I work from a home office and have in Jackson and Jordan and case and he's found my office, and so that, if you follow me on social media seat carefully his picture of him at my office door, and he just he's likes to come up to it and beat on it to turn around and smiles, and I'm just like man. It's so cute. Just because the other night, I was like she said, did you did you figure figure that out? And I was like figure, what that office away from here is only two hundred dollars a month. We work. I did. And she's like no. That's not what I'm talking about. You're not leaving me here with these hell on. Twins are active man. They and they tag team you and they don't stop there. Winless. Kind of switch, you said following on social media. And so. Eighteen years ago, the resulting that got me excited like in real estate was when flip this house. Started on any. Did you watch when it came out very watched? Okay. Do you remember, do you remember like Armando Montelongo? Yeah. Guy from San Antonio. Yeah. Hey, followed me on Instagram yesterday. Did he really it's probably about? It's probably probably is. And I know that because I, I understand how that works, but I was like, this is the reason that got me into it, and the other, it's him or they followed me. And so I didn't follow back because once you follow back the Bill. So I just kept it after seven days they lead for right now. I'm like, yeah. He's got the blue blue check next to his name. Man, verify. Especially you don't have to check next year. Right. Like listened to a podcast, the other day, it's not difficult. You just gotta turn Adam Southie, on Facebook into Adam Southie, business page, and then it'll verify so that's not what I heard. That's what I read googled it. I remember I told you about Schick member? I tell you about the guy that went to a million followers real follows in thirty days he explained it. It's a tied to media. Okay. So it's still not that hard. You get like a, a media to publish something you said. And then you submit it, and then if that's not enough, maybe then go somewhere else, and you get like someone else to quote, you casual Fridays media, bro. Like a like a big time media thing, I think we're pretty big town. Well, I think we are too, but we're not like New York Times time. Big see me said, no because I see some people that are verified date. That's what I'm telling you that this, this dude, got a million followers, and thirty days. And this is this is what he said. Well, if you're one of these big news publications it wants to sit down and talk to us, we were more than welcome. Sit down because we want to get atoms check, I think the way you get that Yusen them stuff. And if they like it, they quote it, and then you send it to Instagram, and say, well, look, they quoted me we're going to find us immediately. And I think because we are. I think we are you could see our stuff is real. It's raw. It's fun. And I mean we're here, we're happy. I'm I'm stoked, because when you read the numbers last week to me that, what are tracker trajectory is we're like five times over what we thought our yearly goal was, when we started this thing we sat down and said, hey, this is what our goal is. And it six months five times at yes. So you're talking about podcast, growth and download, Yep. So we had a what we thought was a pretty reasonable goal. And we're we're sitting so high above that, and it's. I'm really happy because it says that, like people are listening, but it says that they keep listening, which hopefully means that we're putting out stuff. They like and, and it's value driven. Yeah. And on top of that more people are coming, and so, because you don't see Jerry unless you add more listeners. And so that means we're, we're being able to touch a few more people every time and it's not there's not paid advertising behind this. There's not like the secret mobile advertising company. This running advertise Ega listen to casual Fridays. No, it's, it's organic growth because like you said, hopefully we're providing some sort of value in content for our listeners. So we thank you offer that because that's how it starts. And if you like us show us, go to Facebook, Instagram. Give us a like an Apollo and then go to I go to Stitcher go to wherever else into us like review and subscribe to the show means a lot to us. We love you. We'll see you Friday. Do you have a good day?

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