The Land Income Calculator: How to Make Money Every Time You Buy Land

Sa.

Fellas, welcome to Land Geek Nightcap. Welcome, Land Geek Nation. This is Nightcap. We're live every Tuesday night at 9pm Eastern on Facebook and YouTube. So if you're catching the replay, make sure you join us live next time so you can hang out with us, ask some questions, maybe share a drink. And, you know, we have topics. So tonight the topic is. And we're talking about one of Mike Zano's favorite tools ever, the land income calculator, and how you and Mike can make money every time you buy land. Every time.

It's true.

Hear me there, Mike. We're making money when we buy land.

We do make money on the buy. I agree 100%.

So we're going to get into that a little bit on this show. Probably not too much into the nitty gritty, because I know Mike's had a bottle of wine by now, and John's probably at the end of his rope with all of his children at the end of the day.

And if we're honest, those gritties are pretty nitty. Or the nitties are gritty. I don't know.

Wow. I'm gonna quote you on that and throw it up as a cabinet. But. But, yeah, nice to see every. Nice to you fellas. Nice to see people rolling in here. We got the Daniels watching. Daniel Bryan and Daniel McCallum. Hey, Daniels, for those watching, tell us where you're calling in from or tuning in from and what cocktail or drink of choice you're having this evening. Mike, how are you? Cocktail, drink of choice.

There'll be some wine here shortly.

Oh, okay. It must be very nice to have someone serving you wine.

It might be a hot fudge sundae popping into.

Just don't mix them together.

No, not the same time.

Yeah.

Now. Now you're gonna have. You're gonna eat. You're gonna eat ice cream on Nightcap?

Probably not, but maybe.

Do you remember the one time with Forbes we did the Sunday brunch?

Were we in person for that? No, that was. No, that. In Boston, where we were. That was. That was like an anniversary show.

Yeah, we don't remember that show.

Did we have mimosas? I think we had. Or we had Bloody Mary's. Bloody Mary's, Yeah.

Yeah, it was fun.

Daniel Bryan's drinking Laphroaig.

There you have it.

Oh, that is mine.

Yeah.

It's super pd. That's like when I. Like when I go out for, like, an anniversary dinner and I'm getting a scotch, I get Laphroaig and I don't buy it for myself because that's just like. That's like my special occasion scotch, so. Well done, Daniel.

Smell the magic marker as soon as you pop it. It smells like a magic mark.

You get the Kentucky hug before. I mean, it's just the Kentucky inhale. Oh. Well, guys, I suppose we should get to the topic at hand, right? And. But I think before we get into. So I think it'd be fun for the audience to see. The climax of the show will be when we bring out the calculator. Right?

It's like the fireworks.

Yeah, the fireworks. It's very exciting. The 10B double I calculator. It's Mike's. Mike's favorite tool.

I like it. I do. I do use it. I'm not gonna lie. I use it quite a bit, but in a limited fun, you know, I think you can use it on multiple levels. I'm taking on a base level just to evaluate deals, but it's still good. I mean, it's perfect for that.

Perfect for valuing deals. Perfect for, you know, it helps you set your pricing on deals because we're.

Shooting for a certain percentage back mid negotiation. You can just pull this out and you can. Someone wants less of a down payment, more of a monthly. Vice versa. You can. As long as you're getting your good yield. So you're right that there's use there too.

Yeah. And when we talk about yield, there's a. There's a rule we follow at Land Geek, right? The rule of 72. We try to be 72% or higher. So we'll show you guys what that looks like when we calculate it.

Yeah, many times. We're much higher, right?

Yeah, much higher. So. But what about cash deals, guys? Like, it's fun to. Fun to calculate the return on cash deals too. The instantaneous return. Right. John? John Burnett. Let's just go over. Let's. Let's each. Let's go over our last cash deal and tell. Tell the numbers.

Okay.

If you don't mind bragging.

Yeah, Let me just see if I can find it.

Look at him pulling up the data.

Oh, my God.

Drive me crazy. He's got data in front of him.

I got data. Pulling up air table.

We just messaged the team. Hold on, hold on.

John seems all AI now. So he'll get an instantaneous answer. It'll be perfect.

Yes.

This is so cool. So many sales. He has to figure out which one was the last.

Yeah, yeah. Remember his last cash deal? That's when you know you're a successful Land investor, right?

Yeah. Let's see. Okay, so here's one. Sold for 13 nine.

Okay. What'd you buy it for?

Now I have to look at more data.

Oh, man.

Going to all the places. Let's see.

That music playing.

Yeah, right.

Yeah.

Daniel McCallum is drinking some. Drinking some sparkling wine in salvation of the first land deal, soldier. Also, the last night before the wife has to go back to teaching. So Daniel, that's amazing. Good for you. Tell us the details. Tell us the numbers. And that's. That's amazing. So first land deal. First land deal. Mike Zano, did you celebrate?

Oh, yeah. I mean, it's like the most unbelievable feeling. You know, you, you hear it works, but until you make it work, you know, maybe you have some reservations or. But what, what a great moment.

That's an amazing moment.

Success.

It is an amazing moment. I remember like I still remember our first buyer. He defaulted many, many years ago, but I still remember his name. I won't say it in case he's embarrassed about defaulting, but so I found the numbers. So this was one that I bought and we bought it wholesale and we actually bought it for I think six grand and sold it for 13 nine.

Nice. Okay, that's. So you more than double your money, right? Cash.

Yep.

That's awesome. So. Yep. So the profit there is what, 7900? Yeah. And I guess you're, you're your percentage of return on that was like 130. So that's pretty nice. Pretty nice land deal.

That is pretty nice.

Pretty, pretty. Pretty nice. Mike Zano, most recent cash deal.

Yeah, we just closed one this past week. Purchase price was 4, 500 after mobile notary and maybe other little costs. About 47.75 into. It's under five grand. We sold it after closing costs, we netted 13 5.

13 5. So a little bit better numbers than John.

Wasn't trying to beat him. Wasn't trying to beat him.

We all know you are.

Nine thousand dollar nine thousand dollar profit and 200 return on your money. 200 instantaneous return.

Not bad.

That's amazing.

Every day.

All right. And then mine, mine. We bought for. Bought for 4,000. It was actually like 38.33 actually. So. So 38.3 3,883 and. And sold it for 14. Sold it for, sorry, $11,999. So.

Oh my goodness. Everyone's beating me.

Yeah, but not, not by much.

I had mailing costs.

Yeah, yeah, exactly.

That's true. There you go.

Right on the same page.

Yeah. So there you have it. Some nice cash deals going on here recently. Anybody else with some cash deals out there in, in the group, feel free to, to, to share. Adam wants to know where your deal was, John. And I don't know, we have a kind of a nightcap rule here. We don't. We don't share our areas. We don't dive bulge. Just say good.

Say Oregon.

Oregon. There you go.

Yeah, there you go.

She does not afraid to share that info. Yeah. All right. Awesome. Okay. Well, I think we should talk about yield. And I think we should talk about the favorite tool, Mike Zano's favorite tool. You ready? Ready for this? This is how high tech we are on nightcap. Now we can just at the click of a button. No. No solution. 10 DII calculator.

No solution.

Oh, look at this. Daniel McCallum bought. Bought five acres in dock Silver county for 49.68 off an auction. Sold on terms for $10,000. So that's amazing, Daniel. I remember Daniel never talked to you about that deal. Now he had just bought it at auction and I think a couple months ago you were getting ready to market. So that's a nice little return for you guys and very exciting. And I believe, Daniel, that you're coming to the dirt rich summit as well. So we'll have to toast your deal in person, which I'm very excited about.

We will be there.

We will be there, all three of us.

November.

6Th through the 8th, I think.

I think a 9th maybe.

Yeah, 6th through the 9th in Austin, Texas.

Coming to you from Austin, Texas.

Yeah, that'll be very exciting. All right, so we need a deal. Should we can use Daniel's deal if he tells us how much down he's getting and how many months you're painting. How many months or if you do one bar deals. What do you think?

Oh, no, I was thinking somebody who's out there got one that's not for not sold yet and help us work some numbers and options with it.

Oh, yes. Should we, should we like explain what yield is first?

I think we should, John. Yes.

For all the people. Oh no, by we I mean we meant you, the other two.

John, we know you're just going to ask Mark's clone anyway, so just, just ask Mark's clone.

I, I actually asked.

And why is it so important? And then let's just, let's tell everyone.

So I asked Mark's clone to give me an explanation of. Of yield. And then I said explain this to me like I'm a small child. And then it did. And then I said that. Explain this to me. It's a Dr. Seuss book. Would you guys like it? We'll see. We'll see how this goes. Imagine you buy a plot of land with four green dollars in your hand. You sell it to Sam, who loves it a lot. He'll pay you each month for that little plot. First he gives you a dollar or two. Then each month more dollars come through. How much am I making you ask with a cheer. That's where we calculate yield, my dear. We grab a calculator. It's not very hard. We plug in the numbers like a math wizard bard. The month Sam will pay, that's called the term. We call it N. It's easy to learn. Next comes the money you spend on the land. That's pv, the dollars that's left your hand. Then there's the payment Sam gives each time. That's pmt. The dollars that climb. Now press the button, the one marked yield, and watch as the magic is quickly revealed. It tells you the rate your money will grow. Better than banks or stocks, you know. So, John, my friend, don't be confused. Yield is the tr, the tool that pros always use. It shows how your money is working for you and helps you decide what deals to pursue.

So, I mean, really.

There you go.

That's unbelievable.

Was. That is really unbelievable. Like, are. Are any of us going to be creative anymore? Or like. Like, John, I mean, that was actually. If you'd come to us five years ago and done that, I'd been like.

Think of the same thing. Without AI I'd be like, this guy's a genius.

Right? I mean, now. Now AI is desensitizing us to create. I mean, we don't have to be creative anymore. It's desensitizing us because, I mean, that was amazing. But I mean, come on. This is just ridiculous. But that was a great, great. So, you know the Cliff Notes of the whole thing, right. Are. It's just basically your annualized return on your money.

Yeah. So thinking about that, like, you know, it could look great.

So you could.

So, for instance, you know, we love buying deals where we can forex our money. Right? And that's great, but if you're 4xing your money over 100 years, that's actually a pretty bad return. Right. By any measure. Right. And so it's a question of how quickly are you actually getting that return over time? And that. That helps us gauge on whether or not it's a good investment.

Right?

I agree. I always say it's how the layman's terms is how quickly do we get our money back.

Yeah, I like it. Well, yeah, I like. I mean, that, that's, that's part of it, right? That's your capital recovery. So, so the sooner you recover your capital on a deal, the better your yield is going to be. The higher the down payment on a property, the better your yield is going to be. The higher the monthly payment on the property, the better the yield is going to be. And these are numbers that you can somewhat manipulate if we buy a property. So let's say. So let's do a little example here. Let's say, you know, Mike Zanel buys a property for. For $2,000.

Yes, I'd love to.

You'd love to. And you know, let's say based on some of the preliminary research that he has done, he's determined that the market value in that area is what. We'll just use $8,000. So, Mike, you're buying this property at 25 cents on the dollar.

Sounds good. I'd love to.

Yeah, I'd love to. Right. Because, you know, if. If you're looking at market value properties with 8 to 10,000 in that area, you know, when you're buying this thing at $2,000, you're already making money. But then we want to structure the deal in a way that makes sense for us. And, you know, any deal where you make your money back in 10 months or less is really a killer deal. Right. And I don't know where the rule of 72 came from necessarily. I know Scott Todd talked about that long ago. Mike, is it when you, like, double your money in a certain amount of time? Is that how that works?

Yeah, I think that's over a certain amount of years. But I think we'd better off having John making a little poem about it.

I just love jail on the spot because I know he loves math, so I like picking.

As I always say, there's three kinds of mathematicians. Those who can add and those who can.

And everyone should know that quote of yours by now for sure. Just like they're going to know. Eat baloney.

By land in the making yet. Because that is the most incredible shirt.

Another very famous land quote. Another very famous quote I think that we should immortalize. So.

Sorry, I have a very long poem now about why 72 is the ideal yield. I don't know if we want to be done with this or if we just keep.

How can we.

How can we take this topic and stretch it by an hour? We're gonna have by the end, I'm gonna be like writing like the Epic of Gilgamesh to explain yield.

It's gonna be great.

Ask it to convert it into a haiku.

That's what I'm just gonna ask. Too high.

All right. All right. Convert haiku.

This is gonna be good.

Double. Each year grows 72 yields the key scaling dreams take flight Every year feel like the last line was kind of a cop out.

Every year your money doubles.

Yeah.

Every year your money doubles if you hit 72%, right? Yeah. So we want to hit 72%. So let's say we sell this property for. Let's just say 10,000 on terms, right. It's a great deal. Well, let's not be quite that. Let's say 8,000. We'll say 8,000 on terms. We're doing 8,000 on terms. So there's really three values you need to be concerned with when you calculate the yield. Right. And the first one is the present value. So the present value is basically your cost basis. So, Mike Zanio, if you spent $2,000 on this property, Right?

Yes.

And let's say you had a couple hundred dollars and you can do this. You don't have to every deal. You can calculate the mailing costs in there and the marketing costs and that type of thing. But let's say you had $100 in closing costs, and you had $100 in marketing costs and maybe $100 mailing costs. So then really, your cost basis for this particular property is. Is 2300, right?

Negative. Yes.

Negative.

But why?

What's that?

Why?

Because. Why am I negative?

Making it negative. It's because it's leaving our pocket.

Right? Very good. Leaving our pocket. Our pocket. Now, if you sell this property, those. Dana. And you get a down payment. What are you shooting for? For a down payment? Typically, on a typical land deal, it'd.

Be nice to get 20, but, you know, you're probably going to end up getting, you know, 10 would be good, but I think 20 is what we usually teach in flight school. Right. And then 80 is taken over the payments.

Yeah, I mean, I think you can. But. But here, here, here's the cool thing. Like, you can do whatever you want, right? So maybe you do like a.

That's the beauty. Because you can play with this while you're talking. Like, say, Scott, I'm on the phone. I'm like, Scott, 2300. You're offering this to me for what, $200 a month? And I'm like, scott, you know, or Maybe you said 250, Scott. I can only do 200. What can you do on this? So originally you're maybe you're saying 250 bucks a month.

Yeah. So. So let's say you get a 250 down payment, but let's say you charge a dock fee, which a lot of us do. Let's say you charge a 200. 200 doc fee.

Right.

400. Now you're at 1900.

So 450 bucks, really, you're getting. You're getting 250 or you're getting a 200 doc fee and 250 down payment. So that changes your cost basis. So now your cost basis is 1850. Right. So 1850 is your cost basis. And again, that's how much money we're into this property after we get the $200 back fee and the $250 down.

Payment, now you can go on to 200 and still have a crazy yield.

Yeah, it's going to be a crazy yield. Right. So what's typical in our John Burnett typical terms and typical payment.

So typical payment, if I was buying a property for 2000, payment might be between 99, like on the low end, maybe a couple hundred on the upper end.

Yeah. I think that I always tell people, and it's. Maybe it's more on the upper end, as John saying, but you can think of it like a thousand one hundred. 2,200, 3,300, 4,400, 5,500. That's kind of how. And obviously that might be the upper. Not upper tier, but, you know, that's approachable.

So let's say we sell this thing for 8,000 firms, right. And we get a $250 down payment. So basically, you're looking at if you get a $200 down payment, your balance is 7,800. And we'll just say we'll sell it over 48 months. Okay, so 48 months, then. Whoops. I knew I was going to do that.

With the present value in yet.

I know.

That's all right.

So there's your present value. Okay. And we're going to sell it over 48 months. So that's our N, right?

Yep.

And our payment on that is 162.50.

Would you get that?

I just took 7800 divided by 48. Okay, well, that's our payment. So to calculate the yield then. So we have our three numbers that we need to calculate yield. We have the present value or the cost basis. We have the payment that we structured for a 48 month deal. And we have the 48N, which is your time. So our yield on this deal is really good. 103%. Right. So making 103% of our money annually over the life of the loan. Right. But you guys can see how if you're on the phone with a potential buyer and they're negotiating with you. Right.

God, I want, I don't want to pay any more than $150 a month.

$150 a month. Okay. All right, so let's say we change the value here. Then the payment amount to $150 a month. And then what's that do to our yield? So you see, it brings our yield down a little bit, 95%. But it's still an amazing yield.

Yeah, but you might. And it's not. Maybe not change the yield the length of it, but you might not say, okay, great, but that's gonna be over 50 months or 55 months. Or you, I pick one, you pick the next one.

Yeah. What if we say, yeah, we can do that over 60 months.

Right.

Then our yields 97. So this is a handy tool to have out and use, you know, during sales conversations, because every once while and then every once in a while somebody will say, hey, I know it says 99 down, but I want to put a thousand down. Okay. Right. And then I don't really need to calculate the yield on that, but I can, I can look at it and get really excited. Right?

Yeah.

So. So this is, so this is a tool that we utilize on the buy side. Right. We'll utilize it when we're buying a property. You know, Zaino, you and I are. Truth be told, we were doing it on the phone. Yes. A couple days ago.

Yeah.

Right.

You look at, you know, we're buying a bulk deal and we had to configure all the numbers to see how we can make our yield. Because we're not going to do the deal unless we get our yield to a certain percent. Right. So. Right. Certain number. So we played with it and then we, as soon as we recognized the yield was there, we were like, done deal. We're doing it.

Done deal. And that, and that was, that was really nice to. Because, you know, some people like, like, you know, it's just less guesswork. Like maybe it sounds like we're getting a good deal. But let's sit down. Do to the numbers.

Yeah, you don't really know. Get the cold facts.

Yeah. So let's, let's calculate Daniel's yield just for Fun. And then we'll. And then we'll. We'll open up for questions. So Daniel bought his property for 49. 68. All right? And Daniel got $500 down. So actually, then his. His cost basis is 4,468. Okay. So that's his cost basis, his present value in land. He's getting $153 per month for 72 months. So Daniel's yield on this deal. No way I was gonna say is that. Is that. There we go. It's 36%.

Okay.

So is it. Guys, are you gonna shy away from a deal like this? Not necessarily. Right.

No. We have a target. But, you know, the thing is, who's gonna turn, you know, know four into. What's the total? 40. 45 into what?

45. $4,400 into 10,000.

Yeah, right. Where else are you gonna do that? That's the thing, you know, they may not. All this is saying that he's not going to recapture his original capital as quick as we might like, but he's still going to make a great return.

Excuse me. It's a great return.

A lot of deals like that, Scott. Like, I've done deals on bigger properties that I'm not concerned about getting my money back that quick, but I look at the overall return over time, and it's crazy, so I'll do that. So you just, you know, you just have to, you know, it's based upon what you're capable of doing with your business at the time. You know, they're all different scenarios that.

Work, and it all balances out in the end because you have some crazy high yield on. On some properties. Right. Especially, John, on the properties where maybe you sold it three times, and now your cost basis is 100 bucks.

I know.

Yeah.

Once you get to that point, I'm. I don't even know how to calculate yield.

But. But an average, you know, you have some deals that knock it out of the park, and then you're going to have some really great deals like this one. I mean, you're making 36% on your money. I mean, where else can you do that? Where else can you do that, Mike?

Yeah. Not a lot of places.

Right. So it's a great deal. I think it's an amazing first deal. I think the longer you're in this business, like we said, you utilize this calculator to help you make money on the buy and to structure deals in a way that makes sense for you. Right. So hopefully this was helpful. Everyone, Land Geek Nation. Let's Go through some comments and questions, Michael. Oh, the hive mind is what he loves. Oh, my God. Where in Austin. Where in Austin is the Summit? All right, I'm gonna find that for you, Don. And I'll tell you, Billy Swinton has a property in inventory, not sold. That's okay. You bought a property, though, Billy. And we make money on the buy. So what I always tell everybody is because sometimes people get a little bit down on themselves, they buy a property and then maybe sits there for a month and they don't sell it. So what I like to do is remind them that, hey, Billy, you bought this property at a deep discount, and there's some inherent value to this property. So essentially, you just added this property to your real estate portfolio.

Yes, Right.

And that's for people too. Maybe they go on a buying spree. In the first few months of this business, they buy five or 10 properties, and then they're feeling a little bit nervous, or maybe they're feeling a little bit down. Cause they haven't had a sale right away. Well, look at the value of the properties, right? Put it in a spreadsheet. You bought these properties. You're $20,000 all in for these properties, and they're worth a hundred thousand bucks. That's a win.

Yeah, big time.

Yeah.

Yeah, absolutely.

All right, so Dinesh is here. What's up, Dinesh? Watching from British Columbia, having a crisp glass. Crisp glass. Nice, crisp o' connigan pinot grease. I don't know if that said that right. Sounds like a white.

Dinesh. Sounds like a white wine.

Don Trasher finally understands it. John, which I think is. He is attributing to your green eggs and ham, like Dr. Seuss rendition of yield. So that's awesome. Where do we find the calculator? So you can find the 10B double I calculator. It's an app on your Mac. Like, I downloaded it as an app on my Mac and an app on the iPhone. I think it does cost a few dollars, but it's a helpful tool to have. John, you're on a PC or Mac?

I'm on a Mac, yeah.

And Mike, you're kind of all. Mike's a different computer every day. So, Mike, what are you using?

I have it on my iPhone.

Oh, okay. IPhone. Yeah. Okay. So, Daniel Bryan, excited for this map. Got a response to a $2,000 offer today. Well, there you have it, Daniel. So play around with the calculator. Play around with the pricing, right? Play around with the down payment and the monthly payment. Billy, Sentence says Divide the interest into 72. It'll tell you how long it takes to double your money. Learn the stuff. And you will never overpay for a car. That's true.

My karate man is here.

That's awesome. Let's see here. So is interest on terms going away? I've listened to a lot of podcasts and it seems like it was charged several years ago. So I'll just quickly say in the 10 years I've been doing this, I don't charge interest. I never have. And I think with our model land investing, that makes sense. And I think most of us don't. What about you, Jeff?

Yeah, I don't. I have in a couple scenarios and when I do, it's just a pain. Like mostly just because of taxes. You have to like give people, I think 1099 with the amount of interest that they paid and so you have to have their Social Security number. So it's just a little bit more of a hassle. But I do charge more for terms. So I've got a fancy spreadsheet and I plug in my numbers. Like I'll plug in the cash price, plug in the down payment of the monthly, and it'll calculate out my terms price for me. So basically I have a terms price and I have a cash price and the terms price is higher.

So say that one more time. How you calculate it though? I mean, I think we should break that down. People are going to want to.

Oh, yeah. So I've got a. I've got a spreadsheet that I basically, I'll plug in my down payment. Well, so it'll go both ways. So I've got one that'll calculate the cash price for me from a terms price and the other that'll calculate my terms price from a cash price. So like if I were, let's say the cash price was $8,000, down payment is 349. I charge $250 doc fee. And then let's say that we were doing, let's say 160amonth. So if I were doing that, then my terms price, I would do 160amonth for 63 months. So the total terms price for me would have would be 10,679.

So I like it.

I think. You know what I've determined, Mike? I think you need a little bit more John in your license. That's what I'm determined from this, from this whole podcast.

I mean, I need a little mic. More mic in my life.

So do you concur?

Yeah.

Scott, you can leave now.

I concur.

I'll leave you too long. Oh, man. Yeah. Okay, so let's see what else we got going here. Oh, this is a. I like Don's comment there. Oh, sorry. There are very few places in the financial markets that you're going to make 36% per year. Kenneth Green, you're exactly right. When selling notes, which is another technical discussion we probably won't get into tonight, it is imperative that you can figure out the yield that you want to achieve by backing into the number of payments. Very true. All right. Awesome. And then we do have this. This is kind of a cool question, actually. How do you calculate yield for land arb? So. So this is one of the things. Land arb is pretty. Pretty cool because you should take that one.

I know you've talked about this a number of times.

I've talked about a few times, but. All right, well, let's add it.

Let's.

Let's go back to the yield calculator. So.

Well, first off, 10 DBi. You're gonna break it.

I'm gonna break it.

If we do a yield. Yeah.

Okay. So for those that are watching, maybe for the first time, land arm is when you buy a property from another land investor on owner financing, but it's at a discount, right? So let's say John Burnett has a property in his inventory, and his cost. His cost basis is really low. He has options. Then he can sell it retail cash or retail owner financing, or he can sell it wholesale to another land investor, or maybe he'll choose to owner finance it. So I did this a couple years ago. My nephew was getting into this business, and he needed a property, and he's like, hey, Scott, do you have any properties for me wholesale or land arb? And I looked at, you know, my inventory, and I did. I had a couple of properties for him where my cost basis really, when you look at it, was probably a couple hundred bucks into a $5,000 or more property because I had bought it years ago and sold it and somebody defaulted. So I gave Cole the opportunity to buy these, you know, land ARM for me. And so. So here's the thing with land or, you know, Cole, and actually, he's still paying me today on these deals, but he's already sold them, Right. So he's paying me. Whoops, I got to go to the calculator. He's really. No, you know, when you. When you buy these properties, initially, you're not a lot of money into the property. So he bought the property for me right away for 120 bucks. So his cost basis month one is 120 bucks. But if he sells it month one for 240 bucks to another buyer, then his rate of return is infinite. We don't even need to calculate the yield. Right?

Right.

But what's cool is what happens is he's, let's say he sold it month two. So month two sees then into the property for $240. So his cost basis is $240, right. Now if he gets a $250 doc and then sells it for $240 a month, his return is still infinite. Let's say he buys it. Let's say he sells it. Let's go to month six. Let's say it takes him a while to sell this property and now his cost basis is like 720. He's paid me center, he's paid me six months on this property and just hasn't sold it yet. So his cost basis is $720, right. For this particular property. And he sells it to someone for let's say $200. $200 a month. Now remember 120. That's coming to me.

So 80, right?

What's that?

So he's going to get 80.

So he's going to get 80. So his, his money coming in is, is 80. And let's just say he sells it for 60 months. Over 60 months. Look at the yield on this land. On this land arm deal. 133% he's making on his money. That's assuming he sells it in six months.

Yeah. And we didn't even factor the down payment into that, did we?

We did. You're right. We didn't factor the down payment in. So it's probably. So the present value is probably more like we'll say 450 after a doc fee or whatever. So we'll just say present value is 450. Then the yield is 213%. God. So why don't, why don't more of us do land Arb?

Right?

It's a question to ask. It's a good question.

Making money out of thin air.

So self reliant land, Andrew. That's why we like land Arb.

Right.

Actually I had a call guys today with, with a gal who's been through our Landeed flight school program and she started six months ago and she said, you know, I just haven't, I haven't had a lot of time in this time in the business to do like mailing campaigns and that type of thing. So I decided I'm going to go land art. So she's bought eight properties. Land arb. She sold six of them already. Her passive income is $550 a month. She's six months into flight school. But she's really no money into these properties. So think of the return that she made on her money.

Yeah, right.

Yeah.

So. So Landor is very, very, very smart for the new land investor and it's very smart for the old land investor when maybe you get a default or something.

Right?

Yeah.

I need to refill.

Oh.

I'm having a model now. I had a bourbon, but now I'm having a model.

I'm on Spin draft right now.

Oh, you like that stuff?

Yeah, I was doing. I've got a fresh squeeze non alcoholic ipa, which is also delicious. So.

Is that Deschutes?

It's Deschutes, yeah. This is a good one.

You know what? That Deschutes IPA is pretty good. The Nanohook call. It's pretty good.

Pretty.

Pretty good.

Pretty good.

All right.

Daniel just bought a land app deal.

What's that?

Daniel McCallum just bought a land app deal. It says.

Yeah. After he. After he sold his property. In terms, he needs more inventory, so. And what better place to get a land. Our deal or wholesale deal than our community, Right?

Yeah.

So. All right, awesome. Well, any other questions from the group? We do have some other comments. Let's see.

Here.

This has been helpful for Daniel, gives him direction on moving forward on how to structure deals. Ken Green wants to talk future value. Ken, you're so fancy. You're too fancy for us. We're very, you know, we're. You know, we're barely making it by here. Talking about just present value. Ken has a. Has an HB12 seed platinum. Whoa.

Fancy.

That's a physical. Like, you own that in your hand, right? Ken? You don't have that on your phone.

I like to think that Ken has like a holster that it fits in and he whips it out.

Want to do this deal?

Oh, that is awesome.

All your decisions in life on the. With a 10B double II.

Throw that up here. The 10B double I financial calculator.

HP12C. I gotta look this up.

Yeah.

All right. Billy Swin as a. Yeah, we can answer that. Billy. Billy. This may not be for you guys, but I have an LG Pass question. I want to mail a few myself. Can I use lgpass for that? So I think if you're asking like, can you print the letters off yourself? Is that what you're asking, Billy, you can definitely do that. You have two options in LGPass. You can either do the automated function through LOB, which is a processing center that processes the physical envelopes, or you can set up a Dropbox destination and basically create the letters, send them to the Dropbox and print them off that way. So that. What is land arb? Yeah. Protecting families. So land Arb is when you buy a property on owner financing from another land investor at a discounted rate. So I'm going to pay John Burnett $100 a month for this property that he's given to me on a deal and then I'm going to sell it to somebody else for $200 a month and I make the split. I still pay John as 100 bucks a month, but I make a hundred bucks also.

Make that spread.

Make the spread. Yeah. So Billy wants to do stuff stamp, stamp and mail on his own. But, but tracking LG pass. You can definitely do that with LG Pass, Billy. For sure.

Yep.

So. Awesome. Awesome.

Well, do we need to like get some more poems out? I'll see if I can get a really long one.

Hey, we, we. We took an hour of 25 minutes. We're pretty shy.

Yeah, we're smart.

We're shop and we're smart.

SM shop.

Oh man. Where can you access the calculator? Yeah, I would just search online or off the iPhone. Mark. Yep. All right, cool. Any other questions folks out there? 10 bi calculator affiliated or not? Any other questions about. About land investing? Has anybody done some deals they want to share? Any wins that you have experienced here recently? Awesome. I think I hit most of the comments here.

All right, cool. Believe them. Wanting more.

Yeah, that's how you are, Zano. You just kind of always. Oh, goodness gracious. You guys are very quiet tonight.

Yeah, I had too many non alcoholic beers.

He's non drunk.

He's non drunk. Oh man. Can you play with the math for selling the note after a few months? Oh, not right now. Not right now, Daniel. I am. Do you guys ever. Do you. Oh, that's a good question. Do you guys ever keep any land that you buy? John, do you ever keep any land that you buy?

I haven't. I've had some properties that we bought that were beautiful, you know, where we kind of considered a little bit, but I've. I never have. I think, I mean if we found something phenomenal, maybe we would.

But any land that you buy. John, do you ever keep any land that you buy?

I haven't. I'VE had some properties that we bought that were beautiful, you know, where we kind of considered it a little bit, but I've. I never have, I think. I mean, if we found something phenomenal, maybe we would, but I haven't. What about you guys?

No, No, I haven't found anything that made me say yes, I'm keeping it.

Yeah, I have. I have one property that I bought a long time ago. It's. It's technically landlocked, but it's, like, right on. Right outside city limits. So I think it's kind of right in the path of growth. And I bought it at a good price, I think. So I'm just letting that kind of sit in my. My QRP bought the property. My qualified retirement plan bought the property. So I just parked my money in that bottle land, and we'll see what happens here in the near future.

Nice.

But. But I know Mark has. Right? Mike? Didn't. Didn't Mark buy, like an entire subdivision one time and put it in trust, and then some developers came through or railroad came through or something?

I don't remember that specific story.

Yeah. But. But I think. I think it just all depends, right? Like, you're gonna come across opportunities where that might make sense. I think that the majority of us, though, we just want to move it because money loves speed.

Right.

Because if I can sell it right away, what can I do with the. With that money right away rather than sitting on it? But I think there are some. Some plots of land. It makes sense to maybe keep them, put them in a trust or, you know, gift them to family members or whatnot. Yeah, I think this is Jeff. Is that Jeff Moore? The fire's still raging here. Is that in Utah, Jeff? The fire's still raging here, but I did pick up a wholesale property this week, so I'm taking the win. There you go.

That's a win.

Cool. I was going to find a quick Facebook question of the week, and then we can close it out with that. So let's see. I can find something here quick.

We could also always do story time if you wanted to.

Yeah. Do you have any land stories down that you'd like to tell?

Let me think.

Let me think.

I could. I could tell a crazy sale story.

Oh, dude, please do.

Yeah. So I had this one property, and I sold it for. I sold it on terms for like 23, 24 grand. The guy paid two or three grand. And then this was when. Remember that bank failure that happened? And everybody was freaking out, like, way back when. So this guy Decided he wanted to pay off the property, and. But he didn't trust banks. And so he's like, I can't wire you the money. I was like, okay. And he didn't want to, like, send a check or anything like that. He's like, I'm going to drive up to you, and I'm going to give you cash. And I was like, well, I mean, you're in Salt Lake City. I'm actually on vacation in. In Southern Idaho right now. And so we can meet in Twin Falls. It's actually, like, kind of close to you. And so he was like, okay. So I figured. I was like, salt Lake City, it's like, gonna be nice, clean cut boy. And I was like. And so we went and met in the. We met in the gas center at Twin Falls. And this. This guy shows up, and he's got a shaved head and he's wearing a hoodie. And I. And I come up to him. I'm like, are you Ben? And he's like, yeah. Where are we gonna do this? So we go into a car together. Oh, my God.

This is like.

I know. You went into his car.

No, he went. We both went. Yeah. So. But anyways, he brought. He had this box.

Yeah.

And this big white box. And then he flips open a knife. And I'm thinking to myself, this is the part where I die. This was a terrible decision. And then he flips over the box and starts cutting the tape.

Right?

And then he starts counting out to me $20,000. Or I can't remember how much it was, however much left on the note, but it was more than 20. He counts it out to me in 20s, 50s, 100. He's like, There's 1,000. I'm just like, yes, yes, yes.

And.

And then. And then at the end, I'm like, what do I do? And so I just took out my phone, and I was like, I. I guess I'll give you kind of a receipt. So I just took my phone and took, like, a selfie video, and I'm like, this guy just gave me $20,000.

Oh, my God.

And then. So he left. I did the property. And then I've got $20,000. I'm in Southern Idaho, like, far away from my bank. And so I just put it in the trash compartment in my minivan. And then we. We ended up, like, depositing it in the bank like, three or four days later. So there you go. There's land story time with John.

I mean, it's kind of interesting, John, because I Would say there's. There's like one deal every year or two years that's kind of like that where somebody just refuses to pay electronically. And they're like, the only way I will pay you is with cat. And I say, well, hey, I'm in this city in la crosse, Wisconsin. I'm in la crosse, Wisconsin. Like, you're. You're ten hours away from me. You're five hours away from me. You. You can come to me, I guess, but I'm not coming to you. And I had a similar story. I met a guy in a. In a local panera coffee shop about a year and a half ago, and he whips out a tin can with it, pays me eight grand in cash. And he's like, you know, dolem them out in the. In the panera shop.

I love it.

Yeah, that.

A tin can in a. In a panera. That's great. I had a guy mail me gold once, so.

Oh, nice.

And, yeah, Eric peterson was my coach and he had like all.

He.

I mean, he always talks about his gold deal. Yeah. So he. He was telling me about all the different ways to value gold and all this stuff. It was great. So awesome.

Mike, have you ever done a cash deal in person?

Yeah, I mean, the one that comes to mind is I bought some. It was. I was in. It was interesting. I was going down to Florida and I had been talking to a guy months prior. I really wanted this property for about 5k. And he wasn't going to sell it. But by chance I saw he lived in the city that I was going to be heading to. So I called him up, I said, I don't want to assume anything, but I will be down in your area. And he said, I often. I said, you know, I'm at 5K. And he's like, well, it was like January, February, tax. The season wasn't here. I'd say, no, but you hit me at the right time. Let's do it. So I went down and he was a chief of police in that town. And I met him at the bank, the TD bank. And we're just whipping out like five grand cash, you know, and they're all looking at me like, what's going on? What's he paying the cop off?

Oh, man. We do not recommend to anybody in the call. They do things this way, but I don't know, it's. You want a little. Want a little adventure?

Yeah.

These things.

We live life on the edge. It's great.

Billy Rogers. Remember Billy rogers, his first cash Deal. He, like, went to the person's house and. Or the guy came to his house with a briefcase or something like that.

Oh, yeah, Yeah. I think he told him to go away. He was like, no.

Oh, man. Well, Zano, I can tell you, Xana, you get a little antsy over there.

I'm gonna go eat my hot fudge Sunday. That's all.

Oh, he's got a Sunday waiting for him. Okay, that's fine.

Nothing.

What else do at 10 o' clock in New England except you don't have fudge Sunday.

I could just tell. I could just tell that, you know, you weren't. Your energy has just dropped a little bit. I could tell that you want to move on with your evening and get away from me and John. It's fine.

It's all right. We love you.

I love you too, Mike. We love you.

But we know we take second place to the ice cream sundae.

Not every night.

All right, so next. So next week on Nightcap. That's an interesting topic. I don't know if I know necessarily know what that means.

Oh, boy.

It says land investing training. Land investing training course. Nothing back.

So we're gonna do a whole course.

We're doing an hour long course next week. I guess this is to build trusts. This is to show. Yeah, I don't know. We'll see what happens.

Yeah, it's gonna be wild.

It's gonna be wild. We're teaching. Zano, you're teaching a course next Tuesday night on Nightcap. Have your slides ready, please.

Oh, geez. Yes, Professor.

AI is not allowed. No AI slides.

Oh, boy.

Oh, boy, oh, boy. All right, well, that'll be fun. We'll have to get some context on what that means from. From. From the man, the Godfather, Mark Podolski, who, by the way, I hope he joins us again. It's been a while, Mark.

He thought that he was like, oh, I don't know if you guys, but we miss you, Mark. We do miss you.

We do miss you.

He is watching. Well, probably not. Probably not. But you'll see the rerun.

We live in the rerun. We do. All right, everybody, I hope this was helpful. Use the 10B double I calculator. We should get like some kind of cut from the 10B double I people. I think we should. Yeah.

Should at least get one of those $3 that you pay.

Yeah, exactly. Yeah.

This goes viral.

All right, everybody, have a good night. We'll chat with you next week. And keep mailing and marketing.

Breathe it in, breathe it out.

All right.

Cheers.

Oh, wait. And also eat baloney by land.

Eat baloney by land.

Good night. Good night. Bye. Bye. Bye.