How to Get Funding to Grow Your Land Business with the Land Geek Guys

Hey, it's Mark Podolski, the land geek with favorite digit real estate website, thelangic.com and on this week's Art of Passive Income podcast, we're going to discuss the five easy ways to get money to grow your land business. We've got almost all the usual suspects today. We've got Landon, AI Harris. Landon, how are things?

Things were well.

Mark, it's good to see you. We got your partner in crime putting in the reps. Harris, Tria. How are you? Doing well, Mark, I love it. I love it. Eric the Technician Peterson living in. If you guys, I'm going to age myself living in the money pit from Tom Hanks movie. They testing, they tested missiles out there. Eric, how are you?

I'm getting by. All is. All is well.

Yeah.

Good to see you, Mark.

Yeah. For those of you Eric does not have a GoFundMe, he is at an Airbnb. The family is fine, but his house is getting fixed. It's a thing. It's a thing. Last but not least, I love it when you call me Big Papa Tate. Litchfield Tate, how are you?

Doing well. Really well. Can't complain.

It's good to see you. Well, I think we've got a great topic. Let's just dive right into it. So we're going to talk about the five easy ways for people to grow their land business and use other people's money. So we each have our a way of doing it. I don't know if it's our favorite way of doing it, but, Landon, let's, let's start with you. If you've got a coaching client and they say, hey, I want to start getting more money for this business, I don't want to use my own money, what is one way that you would recommend they could look at, you know.

The first way that I would look at trying to get money to do your, to grow your land business would be to reach out to family and friends. I mean, I think that's probably the easiest one. You know, these folks, they know you, you have somewhat of a kind of built in relationship with, with obviously family and friends. You know, you can come up with a basic and simple contract. You know, I was talking with someone the other day, you know, I don't think you should come up with this elaborate contract with all this legal jargon. It gets confusing for you and it gets confusing for them. I think, you know, going to somebody you know and trust, you know, you have that built in relationship and just come up with some fair terms that you can kind of agree on both of you. And I think, you know, going at it that way is probably the easiest way to kind of find funding for your deals.

Yeah, I'm going to give everybody a really super tactical tip as well and piggyback on what Landon just said. I agree with everything you said, Landon, but I would say when you approach family and you approach friends, you never ask for money. You always ask for advice. And so you say, hey, I'm, I'm structuring this deal. Could you give me some advice on it? And then they're going to end up giving you money, but if you ever ask for money, they'll give you advice. So super tactical tip. But that was, that was a great answer to that point in the reps. HARRIS if family and friends are off the board, I feel like this is a, like a family feud. What are the top five ways, easy ways to raise land land money in the business?

TERIA I think one way that we did, if it wasn't necessarily in the beginning of starting our business, but we use this throughout, even currently, and that is wholesaling. So if we already have some existing land and we need extra capital to infuse back into the business, we, we will wholesale some of the property that we have in inventory and then infuse that money back into our business. We use wholesale often, especially if we have a property that we may have had for, you know, longer than we wanted and we have the opportunity to get, you know, diversify our portfolio or just invest in a different area. We may wholesale and then take that money and put it right back into the business.

The quick nickel over the slow dime and reinvest. I have nothing to add to that, except that is a really easy way of getting more money into your land business. Eric the Technician Peterson, I know this is near and dear to your heart.

Yeah, I think maybe another option would be partnerships. Right. So could be family and friends. Could be, you know, in your network or just people. Investors that you've come across that are looking to invest with you because they've heard something about your business and are intrigued by what you're doing. Right. So often when we talk about what we're doing, our friends, family, acquaintances, et cetera, will want to know more and then they'll, that'll lead to, are you looking for investors like, how can I invest with you?

Right.

So a partnership is one of those options. And typically in, in the land business, that's going to look like, well, I guess there's, there's all sorts of ways to do it. But the way that I like to encourage my students to go about that, if they're going to go down that route, is to do it on a deal by deal basis. So you're mailing, you're buying a property, wholesale, whatever it is, and you identify that property as one you want to work on with this investor. So you go to your investor, you say, hey, I have this property. I'm going to pay X for it. I believe I can sell it for Y. Here's what it looks like if I sell it on terms, which is most likely, here's what it looks like if I sell it for cash. And here's how we're going to split those returns, right? And in that case, if your investor agrees, they put up the money, you buy the property, hopefully you title it in your name still, because if you put it in their name, it complicates the process. But you have an agreement behind that that agrees, you know, states how you're going to re. I'm sorry, pay back their capital and their profits over time.

Okay.

And that's. It's only tied to a single deal. So it makes it really straightforward. They don't have any say over your business. They're not, you know, part owners in any way. They don't have stock in your company or anything. It's just, hey, we're partnering on this one deal. I'm the expert. I know how to buy and sell land. Let me do what I do best. And you're going to reap the benefits of that as my investor.

Yeah, that's such a super tactical tip. I, I love the way that you explain that. And this happens every day. It. You'd be surprised, as long as you put yourself out there, how many people want to partner on that basis because they have more money than they have time and they know the returns on land. They like the land business. They've been listening to podcast. They just have not had time to do it themselves. And now you come in, they'll put in the money, you'll do the work, and you just have to be really clear on explaining the benefits. And I mean, like 6,000 times, I've never lost money on a land deal. I'm not saying you can guarantee their return, but get pretty damn close. I mean, we make our money on the buy, so it's, it's a really mean, again, an easy, easy way to get other people's money to fund and grow your land business. I love it when you call me big Papa number Four survey says traditional.

Forms of, like capital raising. So you got things like a heloc, you could get a, you know, a small business loan, things like that. And the reality is this may not be perfect for everyone. This is, you know, not an approach that I would typically recommend for most people simply because the other methods already described are a little bit easier, in my opinion. They require a lot less paperwork and it's more on a relationship, you know, build. But these are, there are institutional loans out there that you can perhaps qualify for and go after that will give you money. And at one point it was really, really cheap money to go out and grow your small business. And that's not a bad option for sure. And the truth is, land investing is capital intensive, right? So I don't care whether you're coming to the land business with $5,000 to buy property or $5 million. The one thing that both of those dollar amounts have in common is at some point in time, you will run out. So what I like to encourage people to do is start thinking about how you would get a capital influx to your business before you need it. If you decide when it's, you know, like, I need capital tomorrow to start this process, you're in trouble because this is a relationship build, right? Like if you're going to go ask a friend for advice which would hopefully lead to money, you know, they don't want the first time, you don't want the first time. They're hearing about this to be when you're in desperate need of raising capital. So this is, this is a process that starts early on. Think about it frequently, often, and don't be embarrassed to talk about money. I mean, at the end of the day, that's the key here is society has kind of made it, you know, one of those topics that's a little less savory. But the reality is when you're doing well, like you said, people want a piece of that, and if they can hitch their wagon to you and you give them the opportunity, they're probably going to take you up on it.

Yeah, absolutely. I mean, look, we're in an election year. This is going to be a way easier topic to talk about. Now, is money and religion just, you know, the quicksand relationship of politics? Just don't talk about it. So, but, no, but you know, in all seriousness though, hey, that's, that's super tactical advice. You're looking at a HELOC or small business loan. But even more tactical is don't be surprised by the fact that you're going to run out of money. And so start planning on it from day one. Think about it like this is your business umbrella. You want to buy the umbrella before it rains and it is inevitably going to rain. Even here in the desert it rains. I have an umbrella, so be prepared for it. It should not take you by a surprise. And what happens is when it does take you by surprise, you start making bad business decisions because you're making fear based decisions because you're thinking, I've got to do this and I have to do that and I'm running out of money. It's not a good place to be. So to recap the top four easy ways to raise money. We've got friends and family, flip a wholesale deal, go for that quick nickel instead of slow dimension. Do it on a deal by deal basis with an investor and they'll keep doing it with you. Look for traditional ways. Home equity line of credit, super easy with the bank. Again, doesn't matter what the interest rates are with a 300 to a thousand percent return in a margin small business loan. And then the fifth way, which I think everyone is going to say is the best way to raise money, the easiest way is when you sell land on terms which is going to be your biggest buyer pool. You're not going to have as many cash buyers as you have somebody who's making you, making money on payments. And let's say you've got a $100,000 note portfolio that's bringing in say 2, $3,000 a month in passive income. Sell that note portfolio, 50, 55 cents on the dollar, whatever you can get for it. It's typically going to be about 50 cents on the dollar because that's the market. And take that $50,000 and redeploy it. When you look at the math, it is absolutely irresistible when you look at it from emotional standpoint. No one wants to do it because they don't want to see their passive income drop. But the math is unbelievably compelling when you look at it from, from that aspect. So if you can be a little bit less emotional about your passive and build your, your cash chest and war chest that way, it's the easiest way to do it and certainly the preferred way, I believe, is to sell that note portfolio. If you can stomach a temporary dip in your passive income because of all the methods that's going to have the best math attached to it. You know, we should actually do a, a webinar just on walking everybody through the math of selling A nail portfolio and then where to go to to do it because it's just so compelling. I know for the coaching clients. We actually did an office hours on that this week, right, Eric?

Yep.

Yeah, so, but we should probably do something just for the, the general community as well. You know, maybe not as advanced what you taught, but you know, something just to educate for sure. Well, I thought this was a great podcast, extremely tactical. But now we're at that point in the podcast where we're going to ask Landon for his tip of the week. A website, a resource, a book, something else actionable for the autopassive listeners to go improve their businesses, improve their lives. But before he does that, got to give a shout out to our sponsor, which is flight school. Learn how the next 16 weeks can change your life. Start building that passive income out renters, rehabs, renovations or rodents by a team that's done it thousands of times. So I know what you're thinking, well, what about the investment? It ain't going to cost you nothing. Guaranteed you're going to make it back 180 days or less to show us you did the work. Learn more. Go to the landgeek.com training. Thelandgeek.com training okay, Landon, what is your tip of the week?

So I've been getting this question a lot is how can I make my ads stand out? How can I make my ads show better on Lamboto and things like that? So I was looking through Axie and I came up to this article. It's actually through Follow Boss. They're actually a really solid article about, you know, 50 real estate, basically buzzwords and, and phrases. So not only is it about phrases and buzzwords, it also talks about how can you manage your SEO a little bit better and make sure that your ads do come up. So I put the link in the chat, but it's a good read. It's definitely, I think, helpful for a lot of those folks that are trying to really get their ads to kind of show up a little bit more.

All right, I love it. Let's take a look. Very cool.

That's. Yeah, it's geared a little bit more towards real estate homes, but you can easily use this in land. So a lot of this, you can kind of switch it out your SEO.

With 50 plus real estate keywords you can swipe. I love these. Swipe and deploy type of tactical blogs. This has been a very tactical podcast. Fantastic. We'll have a link in the show notes to this tip of the week. And yeah, this is great. Tree Are we good?

We are great, Mark.

Thank you, Landon.

You're good, Mark.

Technician. Great papa. All good. All right. Well, I want to thank the listeners. Remind you the only way I can get this motley crew to come back again is if you do us three little favors. Follow rate Review the podcast. Send us a screenshot of that review support@thelandgeek.com going to send you for free a signed copy of Dirt Rich. And if you already have Dirt Rich, it's just going to be be selfish. It's going to help help you out. We're going to get better guests as well, so. So please do it. All right, let's do this. 1, 2, 3. Let.

Let freedom ring.

All right, thanks, everybody.

Thanks for listening to the Art of Passive Income podcast. Are you ready to learn how you can start building a passive income without renters, rehabs, renovations or rodents? Schedule a free consultation@thelandgeek.com training let freedom ring.