Join us Live to learn tips tricks etc to build your passive income with land investing

Mike Zaino, the zen master. Breathe in the mailing, breathe out the marketing. We're live, brother. How are you? Awesome.

I'm feeling good. You know, I feel like everybody's had their special moment live with you over the last few weeks and this is my moment.

I'm kind of glad. Yeah, I've been eagerly anticipating this moment where, you know, I can vox Bossman and be like, I just had the best conversation on Facebook and YouTube Live with Zano. So sorry you couldn't make it. But you, you were out of the country. What was that trip like for you?

Well, it was, it was really good. You know, we were gonna go on a cruise. It got canceled. So we diverted to the Dominican Republic and we had a great time. Look at, it was just before all this craziness hit, we did have a little snafu at the, on the tail end. It seems like things getting crazy and our flights got canceled. So, hey, we made an adventure, a clock Griswold true adventure. We went to Minneapolis and drove home two days. But all in all, nine of us, great memories and eternally grateful for the land business to allow us to do something like that. So you know what? It was a win, win, win, win, win.

By the way, Mike Zano, who are we?

We're Land Geek. Mark is the Land Geek. You know, we. And I am part of the Land Geek team, otherwise known as one of the Land Geek guys. You know, my partner, the OG there, he's Scott Bossman. We do a nightly show every Wednesday. But Mark, you started the Land Geek. You know, how many years has been going now this, this Land Geek. Before I dive into exactly what it is, how many years would you say.

We'Ve been doing this? Eight years now. Right. So teaching people 2012. Yeah.

Yeah. So I was fortunate to meet you close to five years ago, you know, and learn about how you can do a one time transaction, right? And then you have multiple, you know, you have income coming in every month. You, you know, and it's amazing the people who have never heard of this, it's kind of really shocking. I know they do all types of real estate. And we know, hey, there's all, there's great models out there of different types of real estate. But what's unique about ours, it takes a low investment to get involved. Our purchase points are really tiny. I mean, we're talking thousand dollars, $1,500. But you make that money back in 10 months or a year or less. And you know, you get someone who pays you $150 $200 a month. You're helping them because they couldn't afford it any other way. And then you. Because we buy 25 cents on the dollar through a unique method that you teach, we're able to realize 400% net. You know, we say that 3, 400%. Michael. Let's be honest. Sometimes it's like 6, 7, 8,000. I mean, this truly can be astronomical, can't it?

Oh, it's. It's. Yeah. The returns are insane. You know, I say on average, it's 300 to 1,000%. But we've seen. I mean, we've seen infinite ROI where we literally put none of our own money in and sold the property. Hey, Joe Lucas. Afternoon. If you're on live, leave a comment and say hi. Hopefully everyone's safe out there and doing well. But we have a topic, and then we'd love to answer your questions. So the topic for today's Facebook YouTube Live is what is the different model between wholesaling and wholetailing? So let's break it down. Oh, no. Look at that, Matt. Fortune 500 Forbes says you need a better microphone. Zano. What's up, Brian? Theresa Wynn.

Matt just invested in a new microphone that's going to make me look really bad in the nightcap, so I'm probably going to buy the same one.

He's.

He's really dropping the mic. Oh, pun intended. What mic?

I need a new mic. I was listening to some of our. Our podcast the other day. I'm like, I don't. I could sound better.

Well, that happened once. We had Larry Ober street are a couple times on the nightcap, and he just sounded. Well, he's got a voice that's amazing for podcasting, but he had this microphone, and, you know, I really felt the pain then, and I know when I hear Matt Forbes, it's gonna really sting. So I gonna do it. Mark. It's a. It's a. He was. He's got. You gotta send Mark the info on that, Matt, because I'm getting one. I'm gonna up my game.

Yeah, Matt saying I do need a new mic. All right, Matt, go ahead and vox me the info. I'll buy it today, but it needs to be usb and I don't have to buy a mixer. I don't want to mess with a mixer and all that.

Oh, you like to plug it in. You don't like to go any. I need Bluetooth. You want to go right in? Yeah, right in.

Yeah. I mean, I'll do if it sounds good. But sometimes the fancy ones, they have to have a mixer and you equalize the levels and all that. Matt says he's got to run, boys. I'll send Mark the info. Nice that he spelled my name with a C. Come on, Fortune 500 after all these years?

Seriously, Mike? Yeah, he did it on purpose. That only. Only leads to one conclusion. That was on purpose.

That's on purpose. He's like, I got you. All right, so let's, let's break what is the wholesaling model, and then we'll talk about wholetailing.

Okay, well, I'm fond of wholesaling, Mark. That. That's how I paid off my debt. You know, when I first met you and learned about this method and you keyed me into a little niche within the niche. Is that probably our niche within the niche? However you want to say it. And listen, wholesaling is amazing. The transaction on the right side of the equation, which is between you and. And another investor, is smooth as pie. You don't have to leave our Facebook group to find someone who'll be interested in your land. So basically it means that I can buy it at a price where I can then sell it to another land investor and I can make money. And they know that and they're comfortable with that because they're going to make a whole lot of money. So I have to leave room, right, for that, for them to make their roi. That's the difficult part. Now everybody says, geez, Mike, I want to replicate what you did. I want to wholesale. And then my answer is, yeah, you can do it, but you have to be good on the left side, Mark. You have to be good at negotiations. You have to know how to buy, right? And that's the true secret. Because once you get that, that's the secret to our entire business, the buy side, right? But this is, you have to be extra, just extra skilled because you got to buy so low that you could turn. This is why I buy 40, 50 properties at a time, Mark. I'm getting ready to buy 60 properties right now. And when you buy in bulk, you can truly get a great deal. Because it's like the Walmart or not the Walmart, maybe the Costco or the BJ's philosophy. It's right, you know, if you're going to buy one for 500 and you're buying 10, it's not 5,000. We know that, right? Other people might think differently, but that means, geez, I might go 250 for all those, right? So you have to kind of so anyway, wholesaling. I can buy something and I can sell it to you, Mark. And you can take it and you can sell it. Make it 3, 400% and everybody's happy.

Okay, so let's walk me through like a, like a real deal. So like you bought it for how much? First of all, how did you buy it? Did you do a letter writing campaign? Did you have an existing relationship? And then what did you pay and what did you sell it for? And how did you sell it? Did you sell it to one person? Do you sell to a few people? How did you do that? Right, and why would you do that and not just retail it?

Sure, great question. So everything starts with a letter campaign, Mark. That's the backbone of our business, right? Mailing, you know, everything starts there. Consistent mailing, I believe will always uncover some real, you know, some serious deals throughout the year that, you know, it might look at. Mailing is like you're getting flakes. Flakes are like a good deal. Flakes of gold. Flakes of gold. It's like panning out like they're mining, right? Every so often you're going to get a nugget. Now that could be where you buy one property at such a great price that you're going to really make a great roi. Or it could be you uncovered. My favorite is when you uncover somebody who owns multiple properties. Now that's going to typically happen, Mark, to be honest, in areas, well, where we go, right? Arizona, New Mexico, some parts of Colorado, Florida is great because you got to think there are these small size parcels, equal size dimension in huge, huge platted out areas. So it's one area and you're going to run into people who own multiple properties in those areas. So a real deal is. I've done a lot of these. I bought close to 100 properties in a county down in New Mexico and I probably paid somewhere around $100 a piece, right, for each one of them. So I sent a letter campaign out and probably mailed my offer price somewhere around 300 or 275. But I find out I got this guy and he owns almost 100 of them. So I'm not gonna say, geez, I'll give you 300 a piece for all 100. No, I talk to the guy, we work back and this is where the mag in. If I were talking to you, Mark, I'd be like, mark, listen, I really don't want to offend you. That's the last thing I want to do. But when I'm we're talking about property and a bulk purchase. I'm probably going to hold on to it for a long period of time. In that case, I got to buy, right? I have a cost to my team. I'm going to hold on, you know, so I don't want to offend you, but I want to let you know that I want to make you an offer for all of them. It's going to be below market value. I mean, well below. And it's not going to be $300 a property, but if it works for you and works for me, we can work together. But if not. Mark, listen, I enjoyed this conversation. I love making new friends. And we can do deals in the future maybe. So you kind of prime them and they're like, hey, no, no, that's fine, Mike. You know, send me what you got for an office. Off already out of the bat. I'm kind of prepping you, right, Mark, that, you know it's gonna be low, right? But I'm doing it in a way that you don't think I'm a bad guy, right? So I buy these for about a hundred dollars a piece. What do I do with them? What I love when I buy them bulk is I make packages. And some people out there may have bought and packaged deals from me. I'd package them up and I'd say, Geez, 300. If I'm buying for 100, Mark, I'll triple my money. Because these properties can sell for $1,500 or more on terms. So I'll sell them. Listen, Mark, you want to buy 10 of them, it's going to be $300 a property. It's $3,000. I'll give you a package of 10. So I'm going to triple my money. And there's no hidden agenda here, But I bought them so right that the typical purchase price is 300. So I'm buying them for what you would mail for them anyways. But I bought them in bulk, so it allows me to have. And so why. So then the question you asked is a big one. It's like, why wouldn't you just sell them retail, right? Why give it away? Well, first of all, I get addicted to the quick cash. This is how I paid off my debt. This is how, when I wanted to get married the next year, I had to pay off my debt. I raised 50,000 in four months. It's addictive, I'm not going to lie. Quick cash, quick transactions. Number one, it's addictive. I'm sorry. It's Kind of like gambling. I love it. It's quick cash. Number two. I have areas that I work, Mark, that I work retail. And so I kind of have what you would call a hybrid approach. I feel very confident that I have my supply in my retail areas. And why not just make cash like a redeploying the business for my retailer? Basically, I love it. That's the real answer I don't have. I don't want to sit here and defend. I could make a lot of money doing them retail. But I love it, Mark. I love quick cash.

So let's break down then. Who is wholetailing or whole? I'm getting ahead of myself. Not the wholetailing model. Who is wholesaling? Who should, like, really, really seriously look into being a wholesaler versus me, a retailer or somebody that is a hybrid? Sometimes I do wholesaling, but I'm typically on the retail end of it. What type of person do you think? How much capital should they have? What type of background do you think they would ideally have to make them a great wholesaler?

Well, first of all, I would say somebody who initially comes to this business is limited in capital, right? Because if you come to this business and you got 10, 20, 30 grand and you want to deploy it, great. Send a mailing campaign out, buy your properties and start slamming down that passive income. No problem. But I came negative 40 grand, right? I was like, well, geez, I don't have a bunch of capital. And so I was looking at how can I quickly pay off that debt. So it made sense to me. In low dollar amounts, I could buy. Now, I didn't start out buying in bulk. I'd buy 2 or 3 or $300. Selling for 600 doesn't sound like a lot, but when you embrace the idea that. And this is something you taught me, Mark, back in the day, I remember we used to vox, which is a geeky little walkie talkie app. And I'd be like, mark, I'm thinking about doing this and I'm thinking about doing that. And your answer would be, do both. I'm like, mike, do both. Have the abundance mentality. And that really sunk in. Like, you got to have that abundance mentality. There's no shortage of land out there. If I can buy one property at 300, I can buy 10. If I can buy 10, I can buy 100. And if you embrace that, you can quickly ramp up your inventory. And so I would say somebody who's primed for this is probably limited on capital. In the beginning, you Got to have some money to start the business. Right. But you can do this. Your own bootstraps. A $300 deal here, a $300 deal here. Boom. Then boom, boom. Just keep rolling it, rolling it. This is before we had the beautiful invention of LG Pass. This is before we had a lot of simply file. So I was like a day trader, paper in paper, but I was making money. It was exciting. So I, I would say someone who's limited in cap, who would be good at it. Well, I would say somebody who's comfortable having an uncomfortable conversation. Right. Someone once told me that the more uncomfortable conversations you have in life, the better. And I really believe that if you feel like you need to have a conversation, but it makes you feel a little squeamish, that means you really need to have that conversation. So having the ability to feel a little bit uncomfortable in a conversation truly would make you. And you don't have to start out that way. But again, Mark, going back to my example, if I was talking to you and I want to negotiate with you, but I don't want to offend you, I'm going to be very transparent.

Mark.

Listen, I work with a number of investors. What I'm going to do is probably work with them and I'll sell you properties. But it's going to take me time. It's going to take me a lot of resources on my end, my team. There's a lot of money here. Right. And I'm going to probably hold on to these properties for a while. So I have to be very careful with my purchases. So I don't want to offend you with my, with my offer, but I'm going to tell you right now, it's going to be below market value. It has to be based upon the number of properties you own or based on the property you own and what I'm doing, looking to do with it. So if you're comfortable with quick cash where there's no realtors, I'm going to give you every dollar that I tell you that I'm going to give you and I'm going to take care of all of the process. All you have to do is literally notarize a deed and cash the check. You know, does that sound good, Mark? And you know, if you get, listen, if somebody was like, no, that's horrible. I need market value. Great, you weeded them out.

Don't worry about it.

Onto the next guy, right?

What I love about the wholesaling model and the wholesaling model is in both Models, you're eliminating one really sort of difficult piece of the business. So in wholesaling, what you're eliminating is a difficult piece of marketing and selling. Because you could just call up somebody or just go on the Facebook group, the land geek official motivation group, and say, you know, who wants to buy a group of 10 of these at this price? And you'll sell it in a day, right? Not even a day. Like, hours. So that that whole piece, the marketing, listing on craigslist, listening on Facebook, listing on land Moto is eliminated. Selling. How much do you want to put down? Negotiating, going back and forth, asking those questions, gone. So that whole big piece is gone. Now, let's talk about the wholetailing model, because what the wholetailing model eliminates is what you just discussed, which is buying, which is dealing with the sellers and having those uncomfortable conversations. Because the wholetailing model focuses on buying from a guy like you. Wholesale and eliminating the letter mark, the writing letter campaign, you know, getting the list, scrubbing the list eliminates all that. Pricing the list, county research. All those things are eliminated in wholetailing. But what the wholetailer has to do to make money is, number one, they got to find a trusted wholesaler. So I want somebody who's got a track record like you. I don't want to deal with somebody. This is their first rodeo wholesaling, and they're kind of marketing it to me, like, here's what you can sell it for on terms. No, no, I want liquidation price. Don't sell to what I can sell it for on terms. I want to know, what can I liquidate it for and still make money? I mean, how often do you see that, Mike, as a. As an area where you're like, this wholesaler is not really doing right by anybody?

Yeah, quite a bit. You got to leave. You got to leave some margin there, Mike. You have to be. I say that when I wholesale someone, you should be at least able to almost double your money cash, but definitely make 300%.

Right?

And that's the big thing. So it's difficult because you see a lot of people out there that say, geez, I want to wholesale this property. But then you dig into what they bought it for, and there's not a lot of margin there. So you gotta. And what's the solution to all of this? Truly, if you want to do wholesaling, final piece on the wholesaling is to do what Scott Todd says, 20 a day. If you're consistent with the mailing, you're gonna have all these potential deals and you're not gonna overpay for something. Somebody who overpays for a property probably didn't mail consistently. Probably had. I got to have landitis probably decided I have two day offers on the table. I need to make something happen here. So persistent mailing will fix that. Now the whole tailing side, it's awesome. Mark. Most of my properties, I don't advertise in the Facebook group because they're gone. I already have people that I know want them. So I built that relationship, that trust, and it's really important. But as somebody who's coming new to the business or say that I have an established business and I'm working one area, but I want to try a new area. Hoteling is a great option. Hey, Mark, you got a property I could try where I could in this county? Because I want. Sure. Here you go. And now it's a low cost investment. It's a low weight, it's a low risk. I'm just getting a property from you on an advertise. I'm going to sample it. If I like it, maybe then I'll go into a mailing campaign into that area. So the whole thing is really powerful.

Yeah. The whole tailing model can really help you just with your own county research where you can just buy one property and test it for yourself and really mitigate your risk exposure and just the time and energy it takes to do a letter writing mailing campaign. All right, before we go a little deeper into wholetailing, I want to say hi to Michael Ashcraft. He says, good afternoon, guys. Thank you for all the awesome teaching. Dr. Lance Ellis is on. Afternoon, gentlemen. Thanks for all the quarantine great content.

What's up, Lance?

What's up, Lance? And Don Paresa. What's up, Don? In Hawaii? Helpful and motivating. Thank you. Patrick M. Says, Good afternoon, gents. The champion. Oh, he's got a question. We'll get to that in a second. The champion, he wants to know other tax differences with wholesaling versus selling for terms, which is a really good question. And Jason Hoffman says. Hey, guys, happy Monday. Oh, Lance Ellis. Here we go. Two negative Covid tests so far. Looking about a thousand on this one. Awesome. Awesome. Yeah. Good. That's great to hear. Okay, so now in wholetailing, Mike, we're gonna buy from you wholesale, but then we're going to go through the effort to sell it retail. And when I sell retail, I want to get my money out. Six to 12 months, if not sooner. So I'm going to do easy financing terms. And the whole idea is I'm making it irresistible. Like a car payment. So easy down payment, maybe 200 bucks down, maybe 200amonth, something like that. And I'm going to get my money out really fast, especially if I'm buying it from you for like $300. I get my money out in a month. Yeah, yeah, typically. So now the energy and the focus for me is on sales because I've eliminated the deal side of it. But now I'm really focused heavily on. I've got a market on marketplace, the buy sell groups. I've got a market on Craigslist. I got an email to my buyers list. I've got to go on land modo and the lands, I've got to be on the phone selling. And so it depends on you. Like, what do you like to do? If you're more comfortable talking to sellers and being a deal junkie like Mike, then wholesaling might be a great place for you to start. If you're more like me and you don't want to do more of the research, part of the more analytical piece of it, where you got to get a list, you got to scrub a list, you got to price a list, you can do the county research, you can eliminate all that and just go straight to Mike where you know there's a market. But you like the marketing and the selling piece. Wholetailing might be a better model for you. Now let's talk about the money piece of it. Both of them have a great advantage because you don't need a lot of money to do either one. In fact, in wholesaling, you probably need less money because wholesaling, at some point, you want to be able to lock up those bigger bulk deals, and you're going to need some kind of financing piece of it to do it. Because if I'm a bulk seller, like, I want to know, I got somebody, you know, we're going to close fast. Is that. Is that right, Mike?

Yeah, I know. Definitely. Definitely. I mean, there's other options too. And say you uncover somebody with 100 properties, you know, let's not forget the takedown mark. You know, if you didn't want to wholesale them, you could definitely say, listen, how about I buy 5 buy from you a month and then you. Whatever it may be, it all comes down to your ability just to strike a conversation. This is not difficult stuff. This is really about just building a connection and letting people know you're transparent. And, you know, something you said to Mark I've heard you say this several times. I think this could help people. On maybe the right side is it's marketing. And marketing. Right. So when you're mailing out letters, you're marketing to people who you want to buy property from. Listen, it's no different on the sell side. I know it can seem overwhelming for people. It's like, oh, my. Really? It's like a different mechanism. It's not a mailing campaign. It's Facebook, it's Craigslist, it's Land Moto. It's using these other mechanisms to send out its volume. It's all about getting a rhythm, getting volume. You know, 20 a day on the mailing side gets you the properties. Maybe it's five ads a day, right? Well, it is a number that's going to produce leads which are going to produce potential sales. So I think when people get overwhelmed, it's important to realize you're already. If you bought a property, you've already kind of mastered this idea of consistency and marketing. Just shift it over to the right side.

Right, right.

Because I know that people get overwhelmed, Mark, when they're like, geez, man, I know how to buy a property. That's easy. But selling property actually just as easy. It's just a different. It's a different consistency, a different rhythm that you have to hit. And I think that's important to point out when you say no marketing and marketing, that really hits it on the head.

Right. The M and M is. You're right. I mean, we say mailing and marketing, but it's really a marketing and marketing business. We should probably do another Facebook live maybe tomorrow on how you structure a takedown deal, because that's getting a little technical, like the language that we use, why we do a takedown deal.

You don't need any money, Mark.

You don't need any money. Yeah. Yeah. So that's like a whole other thing. The takedown deal in wholesaling. Before we take out our. Our next topic, I do want to answer some questions. First of all, Jason Hoffman says, hey, guys, Happy Monday. Sound money says, I'm still looking for land. Thanks to your tips, I've saved myself many potential headaches. Cindy Lee wants to know, how often do you go live? Well, now, Cindy, since, well, Mike's going to be the fire department, but since, like, my typical schedule of, like, doing things is kind of interrupted, like, we're going face like we're doing it five days a week now, we're having a good time with it.

It's all about community. It's all about the community. I mean, this is how, you know everybody's craving social interaction. Well, come to the Facebook page. Come together. And this is where you can get that social interaction.

Yeah, absolutely. And if you don't know who we are, go to landgeek.com learn more there. Check out the Art of Passive Income model podcast as well. If you don't know what LGPASS is, go to thelandgeek.com LGPass see what that is. I think you get your first month free to try that. If you want to start automating notes, go to thelandgeek.com geekpay which Mike, that's the other thing I want to talk about was, oh, Jason Mendoza says, happy Monday. The other thing I want to talk about is that overwhelmed piece. If you're listening to this and you're thinking, oh, maybe I want to try this, but it sounds like there's so many moving parts and this and that, we don't want you to build another job for yourself. The whole idea of creating passive income is that you want to have solo economic dependency. That means you're making money, but you're not doing anything. You want to be able to work when you want, where you want and with whom you want. It's not a one to one input. You want to leverage yourself. It's never been a better time in history to own your own business. But a business means that you're not creating a job for yourself. So you have inexpensive virtual assistants, you use software, you delegate all of this so that you can sit back and be the CEO. Now, in the beginning, yeah, you can't abdicate. This can't be the blind leading the blind. You got to start somewhere. But after a certain point, you start outsourcing. Mike, what's what, what advice would you give to somebody as to when they should start outsourcing?

Well, the good news is this is a repeatable, redundant process. That is the really good news. And that you could say, AKA boring. But trust me, boring is good. It's what you want. Outsourcing could start right away. Mark, since we're doing five steps over and over again, Scott Todd, he talks about these in flight school. And by the way, let me just segue for a second. The beautiful thing about flight school, like the most beautiful thing about it, is that it is the actual recipe, it is the actual method by which Scott Todd runs his business, which means it's the way that he can scale it, the way that he can work an hour or A half hour, whatever he does per week and still crush sales. So you need to have that replicated process. So how to keep it so it's not overwhelming and how to start outsourcing it. Start with what we call pain points. So in the beginning, building a list, listen, there's no shortage of ways to do that. But a lot of the ways to do it are redundant and boring. That's where you get your first ba. You know when you copy paste or you screen scrape right away, you do that four or five times, Mark, Maybe you'd be like, I think I get it. I copy this here, I put it here, I copy this. I mean, so the outsourcing starts right away, right? It's an immediate thing that starts. It's just there's different levels as you go into the business, but it'll start right away.

Our two favorite sites are fiverr.com and upwork.com by the way, if your due diligence, I mean there are actually. What is it? It's parcel review dot com. They'll do it for you. There's Landmasters Us.

All somebody has to do is come here, learn the method that Scott Todd teaches and use all the different software pieces and stay consistent and dedicated. I'm not going to, I'm going to say that again. Consistent and dedicated and use the tools that are at your disposal. At your disposal. And use the recipe that Scott Todd puts out successes. Mark, you wouldn't give 180 day guarantee if it wasn't, if it wasn't almost inevitable, right? I mean you wouldn't even do that.

If you do it, it's inevitable. Like first of all, our education should literally cost you nothing because you'll make it all back very quickly and we guarantee it 180 days more. Most people do it in two months. Now if you don't know what we're talking about, you know what flight school is. Just go to langeek.com training schedule a call with the zen master Mike Zano, who's on right now or his partner in crime, Scott, the nightcap OG dude, buddy bossman, and they'll walk you through what flight school is. Why it's the best way to compress the five years of me working in this business into four months. Mike, how angry was I the other day? You're like, mark, how's it feel?

But I was trying to say something positive to the community. But it was, I guess at your expense.

But Mark, no, it's fine. I'm happy.

You have to identify the opportunity. I Mean, you went through the suffering. I mean, it's something you did willingly. And I didn't mean the way I said it. May have been blunt, but I was saying that. Flight school in four months. Can I say this again?

Yeah. Yeah. Right. No, no. I'm gonna throw my headset. It's fine.

Flight school in four months can provide you with the education, the experience, the know how that it took Mark four years to accomplish. I mean, it. But that speaks to what you created. So I think that as the creator, as we call you, that this should be a compliment. Not a thing.

I know. No, it is. It just. It just. It just hurts. Because hearing how I like, I'm not gonna say I wasted four years of my life, but if I had somebody like Scott Todd to take me through this in four months versus four arduous years of mistake after mistake and hard way after hard way. Oh, my gosh. Yeah, it's crazy.

It'd be like lifting weights for four years and then coming upon a method that will allow you to get big biceps and build your chest out in four months. I mean, but you wouldn't have found that had you not gone through those four years. So the unfortunate part is that you had something. The fortunate part is everybody that comes after you gets a benefit from it. So it's a win win.

No, no, it definitely is a win win. So Don Paresa says flight school, and follow the recipe and you'll get proof of concept. So that's phenomenal. Also, you know, dawn, like, the deal that she did, that should be another Facebook Live. We should have dawn on because, you know we're going to do a topic on. Because we talked about wholesaling today. We talked about wholetailing. But what Dawn Paresa did in Hawaii, Hawaii in flight school is something called land arbitrage, which I would argue is the best of it all. Like, that's the best of both worlds. Dawn, leave us a comment if you'll. If you'll jump on Skype, Don, then the three of us can talk about land arbitrage and how that works. I don't know if she'll be shy or not. Hopefully not. But no, I don't think. Because she just did the deal. It's great. Sean Widechild. Hello. Keep up the good videos and training. Thanks, Sean. Okay, so, Mike, do we have time to answer some questions? How are you doing time wise? I know you're drinking.

I get all the time in the world. Bring them on.

Okay, so this is a really interesting question from the Champion on YouTube. He says, Are there tax differences with wholesaling versus selling on terms? So let's discuss the being a dealer of raw land versus being an investor in raw land first. So Champion, if I can call you champion.

I want to be called champion.

The champion or just Champ. I feel very like it's like familiar now. It's like it's like the A2 form instead of instead form. Like, I mean, I'm not being so formal now with the champ. Let's just say tc. So tc, this is the way it is. Tc, he's like, yes. All right, so let's assume TC has a full time job right now and as a side hustle, he's going to start buying and selling raw land. We can make the argument that that is he's an investor. Now at a certain point, at so many different, you know, the way he markets properties, for example, or how the amount of properties. The IRS has this whole sort of checklist. What makes you a dealer? Now I'm a dealer of raw land. I don't do anything else full time. Like there's no other way around it. I deal in raw land. So when I sell a piece of property in that year, whether I sell it on terms, when I get the down payment and those monthly payments, I have to pay ordinary income taxes. Now if I were an investor, I might be able to make an argument that if I held it a year and a day, I might be able to say I get capital gains. Now, because I'm not an attorney and because I'm not a cpa, I don't want to give you tax advice. I don't want to give you legal advice. I can just tell you what I personally do. And I've hired, you know, tax attorneys, I've hired CPAs. There's a loophole in the law that says that in raw land, raw undeveloped land, when you sell on terms, you can pay taxes as you collect the money versus a dealer. Let's say in automobiles, they have, like if I said, if I'm an auto dealer and I sell you a $30,000 car, even though I've only collected maybe $2,000 of that 30,000, I have to capture the entire $30,000 on my books that day as revenue and pay taxes on it, which is a huge cash flow issue. But land is exempt. So. So here's a question. Doesn't dealer designation apply to those that improve the land or property? It can apply to those that improve the property. There's a whole checklist. How many properties you have how you're marketing the properties. Are you putting out billboards, Are you putting out signs? Do you have a sales office or is it all done digitally? It just depends on a lot of things. But essentially. The bottom line is from a tax basis. Land investing compared to say like buying a single family home does not have the same tax advantages because land lasts forever and therefore you can't use depreciation. And the other piece of it is ordinary income versus capital gains. That being said. Oh, Dr. Ellis said this would make a great topic for the podcast. No, yeah, I know, but Lance, I don't want to get in trouble. We've done a, we've done a better job. We've had people on like CPAs and tax attorneys that would have them talk about it rather than me. I'm just going to give a general overview. But that being said, you can structure where on some deals you're a dealer in land and some deals you're an investor. If you want to get tax advantages, you can use a self directed ira, use a qualified retirement plan, and you can actually buy and sell raw land and really explode your returns using those vehicles and grow your tax fund like 300 to 1000% on all these deals. Tax deferred or tax free, depending on how you do it. Oh yeah, Dr. Ellis is like, bring on a good guest. Okay, we will, we will. Definitely. So, Mike, I've been talking a lot. I'm going to let you give your two cents. Sorry about that.

My two cents is that you hire someone who is an expert. Shout out, Craig Cody, you hire someone who is an expert. And that's what I did. So I could not do anywhere near of a good explanation as you did. But I do believe in hiring the experts. I also believe there's enough money in our deals not to worry about that. I think that the returns we make can account for the IRS as well as any other expenses we have and still be very happy.

Yeah, yeah. So we got a question on YouTube. Is it covered in the Investors Toolkit or Flight school? So if you go into flight school, the Investors Toolkit is included. The Investors Toolkit has a tax and legal training from a CPA and a JD Mark Kohler, who discusses these issues in the Investors Toolkit. We also discuss from an attorney because there's some states where you can't use, let's say a land contract or contract for deed and how to work with those states with our contracts. So we do have those two trainings in there as well. The TC says your thoughts on the land business after the COVID 19, your thoughts on it? Well, right now we're doing pretty well. I don't, I think we're going to do even better after it's all said and done. What do you think, Mike?

I agree. There's no shortage of interest. I think there's increased amount of interest. My son sold another property last night, Mark, and he's got another one he's getting ready to sell. So we've been selling and selling and selling. I think that what we have is what people want. You know, they look at this is going to go away, but the threat of it coming again is going to make people think that I want a place of refuge where I can go away from people. I want an affordable price. And that's our. I would say it's never been a better time to get involved in what we do, Mark. I think that this is going to show people the benefit of having an asset that allows them to escape from everybody and go and, you know, be safe. So I don't, I don't, I don't think that it's going to impact us negatively. In fact, as of right now, it's impacted us positively.

Right, right. And you know, when the government goes into the debt that they're going into, historically you're going to look at an economy that is going to have inflation. So the dollar's value is going to be greatly diminished, which means that investors, then, you know, there's a flight to safety in gold, silver and raw land. Now, I was having an argument with Tate and Scott Todd, Tate Litchell and Scott Todd this morning on Voxer. I'll just read it to you because it was kind of funny. We were talking about this. So this is from Robert Kiyosaki today on Twitter, death of $. People desperate for money. Very sad. If government gives you free money, take it yet, spend it wisely. And this is in all caps from Robert Kiyosaki, author of Rich Dad, Poor Dad, Do Not Save, Buy gold, silver, bitcoin dollar is dying silver. $20 best buy for future security. Everyone can afford $20, especially with free fake money. Now, there's a whole thing in there which I don't need to get into the whole political things and fake money and all that. But what he's saying is that if you do get money from the government, you know, don't put it in the bank. In fact, you know, cash is never really a great idea anyways. We want to get, we want to get a higher return than the low Interest rates we have anyways. But I would make the argument that you can't eat gold, you can't eat silver. But you know what you can do is you can raise crops on raw land. There's a lot of things you can do with raw land and it's a real asset. And I think that, that being said, that alone trumps precious metals. If you can wrap your head around owning raw land for a lot of people it's just easy. Get a gold bar, get a silver bar, put it in their bank and if they have to trade it, they can trade it. Nick has a question. Can your self directed IRA be considered a dealer? If you self deal, that's a no, no. In your self directed ira, that is. Nick, you own property in XYZ Corporation and your self directed IRA can't buy from your own XYZ Corporation, that's a no, no. Otherwise it's sort of a moot point if it's a dealer or an investor. Because the tax implications of the IRA depending on if it's a Roth or a what's it was, it's a SEP ira. The SEP is tax deferred. The Roth is tax free, then doesn't matter at all. So let's see. Can you briefly describe anatomy of land arb deal? Well, we're gonna save that for another Facebook live because Mike Zaino, guess what topic. You know, Don Paraiso said, I am shy, but you know, I'll do it for you. All right, let's give dawn praise some love because you know, it's not easy to come on and do this stuff and be live and be vulnerable like that. So that's amazing. Thank you, Don. I promise we won't keep you on here for like an hour. You know, so we'll just talk about your deal and kind of break down what land arbitration is. Sean wants to know, does the Investors Toolkit cover how to set up the actual business, Opening an llc, do I need a business license, how to set up a website, etc. No, because Sean, that information is so readily available that it's not really a high value piece to put in the Investors Toolkit. You could just google how to set up an llc. A lot of our clients either go to Legalzoom or Rocket Lawyer and set up a one person llc. It's really that easy. You don't need a business license to set up a website is sort of a commodity these days. I think the better question is do I need a website to start? And Mike, do you need a website to Start.

No, no. You know, websites are awesome and at some point you'll want to have one. LLC is a great. At some point you're going to want one and, you know, not to. Again, everybody has a specific situation, but I bought and sold as an individual for quite some time before I even built an llc. I think personally the most important thing in the beginning is proof of concept and just to do the mailings and get some deal flow and the rest of it you can just build as time goes. But you really want to get this machine cranky in the beginning. So focus on mailing and marketing.

Right, right. So Dr. Lance Ellis says Dawn's a smart lady, land geek and infinite banker. So I think, Lance, since you're putting dawn on the spot, if you can come on Skype and talk about how you're using the infinite banking concept. What is infinite banking? To buy land. I think that would be helpful. And let's then get Russ and Joey. That would be kind of cool too, but that'd be great. So here's Sean's question, Mike, but is it recommended? Do you recommend getting. Setting up your LLC before getting into deals?

That I would say that. You know, I always, when people ask me that question, I say, you know, talk to whoever does your tax. Just talk to whoever you can sell a legal. You know, I don't want to really recommend it. Yeah, I think it's nice to have your own business. I love, I love the fact that we do. But I don't know, Mark, how you might be more inclined to answer that differently. But I always say that, you know, discuss that with those people that will give you the best legal advice as to why you'd want the LLC or so on and so forth.

Yeah, I mean, the only reason really to have an llc, first of all, it's limited liability protection. It's not, you know, a lot of people think I'll set up an LLC and it's going to reduce my liability. You know what, in this business, because the numbers we're dealing with, I have a simple business philosophy. Happy customers guaranteed. So I don't fight with my customers. They go out there, they don't love the property, either refund them or exchange it for property they do love. So that piece is kind of done. So the only reason really to have an LLC is because you want the tax advantages of having a corporation which can write off expenses and lower your. Your taxable liability. So do you need it right away? No, but I'd say after your first deal, it's nice to have and then have that, that LLC capture those expenses or reimburse you for any of your expenses. Dom Parraza. Thank you. Ditto. Dr. Ellis, Lance, Russ and Joey are infinitely, no pun, better than me. But I would be honored to connect with you all anytime. All right, fantastic. Well, that'd be great. Thanks, Dr. Lance. Derek Hoffman. Infinite banking is how I'm funding my start in this business. So there's a lot of advantages to the infinite banking concept as it relates to land investing. I think we should just get Russ and Joey on and have them discuss it and how they're doing it. For sure. What's up? Cliff Collins, he says howdy. So Mike, this has been a pretty meaty Facebook Live.

Yeah, I'm glad. All the interaction, I feel, I feel pretty good about it. I like it. I'm glad I got my special one on one time with the creator. I watch everybody else. I'm glad that I finally had my time in the sun.

Long, long overdue. And Mike, I mean hopefully you're gonna be safe at the firehouse. I mean tell everybody what's going on with you starting tomorrow. But I want to just give Vicki Faso, which I think I've got a call with her tomorrow. What's up, Vicki, say hi. Thanks for being on. So TC says yes. Get those two guys on. Vicki says Anthony Faso would be available to discuss infinite banking concepts as well. Fantastic. Let's get Anthony on too. Yeah, I forgot. Yeah, Anthony's like a IBC expert. Dr. Ellis. Mike, stay safe. Wear your PPE. What's a PPE?

Look at you.

Look at you.

Medical protective acquaintance. See you guys are so personal protective equipment. So yeah, we, yeah, so it's very important, you know that. Well, that's everybody these days, but especially us. We go on. We still do medical calls and whatnot. So be back tomorrow. And yeah, just keep it safe but still do what we need to do to help people.

Okay. So are you going to be like how much time do you have to be at the fire station this week? Do you know?

Well, I'll be there tomorrow and depending on what happens, you know, if there's anybody that's potentially infected in other groups, they won't be able to come in. So it could be different. While Mark, to be honest with you, so. But I'm ready. I've had a nice little vacation. I've been away for a while. I self quarantined just to keep everybody safe when we got out of the country. So I'm ready to go back and you know, and do my thing. But yeah, it'll be interesting. I'll keep you posted.

Yeah, definitely keep us posted for sure. So, Mike, do you, do you want us to answer any more questions or should we wrap up here? And by the way, if you're just now jumping on, It's Mark Podolski, landgeeklandgeek.com I'm on with the Zen master, Mike Zano. You can talk to mike@thelandgeek.com training. Are there any more questions before we wrap up? But you know, we did talk about wholesaling. We talked about wholetailing the two different models. The advantages of it as you eliminate when to get piece of the business on either the buy side or the sell side. You don't need much capital to get started on either one of them. There's tons of advantages of using these land investing models to get started in your business. And even for you grizzled veterans like, I still do a wholesaling model as much as I can. Absolutely. I don't, I don't wholesale very often, but if I do a bulk deal, I mean, certainly I'll wholesale some pieces out to get my capital back. TC wants to know when is the next boot camp. So we're hoping for Vegas in August. If you go tolandgeek.com bootcamp we'll keep you posted. But as of now, we're still hoping we can get out in August to go to Vegas and do that. That's a two and a half day live training and go to the landgeek.com training to figure out how to get your two free tickets. So any, any other questions? Any other questions? All right. Well, I want to thank everybody for being on supporting us and if you've left a comment today, anytime this week, I know, you know, hopefully Mike will be able to jump on Friday, but we'll do some type of fun giveaway on Friday for sure. Just to thank you guys for supporting us, leaving a comment and doing that. We really appreciate it. If you're on YouTube, it really helps if you share our videos. You like your videos, you subscribe. We've only got 11,000 subscribers now, which is great, but please do that and if you can share, you know, the videos to your friends and if you have a loved one that you think could have their lives improved by having additional passive income without renters, rehabs, renovations or rodents, refer us, we'd appreciate it. Thanks, Todd Kashette, for jumping on. Appreciate it, Dr. Ellis. Thank you.

Thank you everybody.

Dog raise a virtual hugs and aloha to you all. Carlos is saying seriously, Seriously. I don't know what he's discuss asking, but seriously, we're being serious. Yes. And everyone be safe out there. And, you know, let's try to make the best out of this situation. And thank you, Derek Hoffman. All right, Mike, you ready? 1.

Yeah.

2. 3. Let.

Let freedom ring. Ring.

Oh, yeah.

We nailed it.

And wash your hands. Thanks, everybody.

And drink scotch and drink some.

Yeah. Or Casa Noble. Or the good tequila. Either one. I don't know. Whatever. Thanks.