Joe Varnadore:
Will seller financing work on property types other than residential stay tuned.
Joe Varnadore:
Well, good morning. This is Joe Varnadore, and welcome to today's edition of NoteSchoolTV. We are so happy to have you guys today, and we have an amazing show for you. So remember to like share and subscribe by hitting that bell, right? So that you will know that NoteSchool goes live every Wednesday morning at 11:05 central time. So and to learn more about NoteSchoolTV, and NoteSchool just go to www.NoteSchool.com/TV. Feel free to add your comments, add your questions and to stay hooked in with us. So I am going to jump into our news stories for today.
Joe Varnadore:
Oh, welcome to the news for today. And we have a couple of great news stories for you. So the first one is white house foreclosure banned extension to deliver immediate relief. So yesterday the president Biden announced that the foreclosure moratorium would be extended from the March 31st to the end of June to June 30th. So this was designed to help Americans, as we continue to go through this whole pandemic. The story on DS news says today, one in five renters is behind on rent and more than 10 million homeowners are delinquent on their loans. So these actions through the GSEs, the Government Sponsored Entities like Fannie, Freddie, Ginnie Mae through HUD and all the government's monitored loans will help folks. Okay. And that's a good thing. So this piece of piece that Biden put in yesterday will actually cover about 70% of home mortgages in the United States.
Joe Varnadore:
So as long as it's a GSE, either, excuse me, insured or guaranteed loan, that will take effect. And then secondly the lumber prices, how about that? while lumber prices have crippled home builders. So guys back during when, before Trump president Trump left the office, he and the prime minister of Canada kind of struck a deal to make sure that there was plenty of lumber coming into the United States from the lumber mills in Canada, and then, well, the pandemic hit and it kind of slowed that down. So what we're seeing today is that lumber prices are at an all time high, as well as an all-time shortage. So stay tuned on that, just another bleep in the in the system, as we, as we move forward here. So I am going to bring on the founder of NoteSchool and our visionary come on on, and Mr. Eddie speed. Good morning, sir. How are you? You looking good.
Eddie Speed:
I'm good, How are you?
Joe Varnadore:
Doing great, man, I'm in Florida. So it's 85 degrees your in Texas. So it's seven degrees.
Eddie Speed:
Well, we have had quite a cold spell if you've read anything about it on the internet, it's kind of crazy. And our friends from up North kind of teased us a little bit and maybe rightfully so. And they were like, we live with this all the time, but there, we have had a problem with producing utilities, Joe, both water, gas and electricity, and it's kinda like Dallas Fort worth 8 million people in it. And when you add the capacity need of about 120 or 30% of normal, and you can only produce it at about 60% of what you normally could produce. Those numbers don't quite match, Joe.
Joe Varnadore:
Yeah. There's a gap there, man.
Eddie Speed:
Yeah.
Joe Varnadore:
So Dallas big word, has had to pivot, right?
Eddie Speed:
They have in fact, interesting. Brian Lauchner, you know, is on our teaching team and normally he's on NoteSchool with us and literally he didn't have internet or power. And so it's just you and I here Joe.
Joe Varnadore:
Yeah, it is you and I, and we've got two great guests. One is from South Louisiana, and the other's from South Carolina. So I'm going to let you bring them on and if I need to pull up the PowerPoint, I can certainly do that.
Eddie Speed:
Well hopefully I've got it up. I know I didn't set you up just right on the transition and that's on me by the way, but pretty interesting news on both sides of the spectrum, right. Shortage of lumber and a lot of things kind of working underneath and behind the curtain about things to come on, delinquent loans in Forbearance, Right.
Joe Varnadore:
Right. And you know this, so this, and then again on this, the first story there with the foreclosure ban, you know, that affects the folks that may have until June 30th to go in and get on the in forbearance as well. So it extended the forbearance piece of that as well. And then that will carry through six months after that. So, you know, as much as we tried to dig out of this, it's kinda dragging us back in. So I'm going to drop off here, man. And I'm going to let you introduce our guests today because these are two sharp cats.
Eddie Speed:
All right. Awesome. All right, So I want to bring on Ben Legg and Greg Phillips. These guys are these guys are doing a business that I really love, and they're seasoned guys, welcome guys.
Ben Legg:
Hey, Eddie. Good to see you.
Greg Phillips:
Good to see you.
Eddie Speed:
Good to see you. So, as you guys know, I, in the note buying space, I made literally thousands of field trips to guys that were selling land around the country and owner financing it. I'm a country boy by nature. And so I like land. I bought land notes and I don't know a lot of different places. I think I've probably closed well over 500 portfolios of land notes. So I may law field trips. And when I met you guys, it was very exciting for me because you guys were living. What I thought was a possibility that a lot of people just did not know when, first of all, you live where you to live. It has nothing to do where you can do your land business,
Ben Legg:
Yes.
Eddie Speed:
And you do so you do it significantly virtually. And then secondly, the thing I'm really impressed about your businesses is that you guys don't even live in the same market.
Ben Legg:
Yeah. We're, we're Virginia boys. That's where we met. And, we both have moved probably seven or eight years ago. I moved to South Louisiana and Greg moved to Charleston, but, you know, got our business started there and really have team members there, still on the ground. But you know, we were able to move and live wherever we want.
Eddie Speed:
So the case study we're going to do today, I would consider to be not ordinary, but extra-ordinary. Right.
Ben Legg:
It's a good deal that one's not the norm. You know, we definitely find some good deals and that's really what we're good at the acquisition side. But this one is that's a good one.
Eddie Speed:
It definitely is a good one. And it shows you what's possible. And I believe it you know, this is what I call a country land deal, right? You're not really a sub divider. You are, you may be a land split up guy. You might take a track of land and split it into more than one track. Right. But you're not really, you're not putting in utilities and you're not putting in necessarily, you might put a driveway in, but not necessarily a road. Right.
Ben Legg:
Correct. Yep. Yeah. We've done a number of subdivides or divisions. Yeah, as far as the infrastructure, I mean, Greg and I have talked about that a lot. That's just not something we've done.
Greg Phillips:
Yeah.
Ben Legg:
Or I don't think we even want to do, to be honest.
Greg Phillips:
But we like to keep it easy and, basically get it lined up, ready for the buyer to go or whatever.
Eddie Speed:
Yeah, so I really appreciate these guys. I think they have a very good model. They're quiet giants in the business. In fact in the business that I'm involved in our land business, we have a little network of guys that are from the different parts of the country that do this well and all have, you know, a good contribution to it. And so I'm honored to say that, that these guys teach me the parts of the land business. That they're really good at that we can be better at and hopefully vice versa. So it's a good partnership and stuff. I want to show you guys a case study today. And Greg, that's some of your handiwork, Isn't it?
Greg Phillips:
Is this the, that is not mine one day. Hopefully I'll get on that thing and do it, But.
Eddie Speed:
You get it all with a skid steer, right? The little Mow and thing in front of the skid steer?
Ben Legg:
Yeah. We had a, a actually buddy of mine who I grew up with. We hired him to get out there with his skid steer. So this track was if you had seen the, before pictures, you know, this is after, but before was, imagine a jungle, literally, you couldn't see into that track. It was just you know old growth, regrowth. And we ended up buying that and we knew it was something that we could add value to. And that's really what we look for among other things when we're buying land. But, you know, it's amazing what a skid-steer can do a day and a half work, a skid-steer work. And a couple loads of gravel.
Eddie Speed:
No doubt about it. As you know, I'm a fan of that. And we liked doing that on some of the land that we do as well. So, this was over in, out in the country, this was 33 acres, and this was, I guess, this is your before pictures. So it gives you a pretty good sense of what it can look like before and after
Ben Legg:
That's right. Yep. This one you know, is one that we after we got the skid/steer in there, obviously, you know, we're able to cut down a lot of that and get it cleaned up. You know, and this is one that, you know, it's, it's just a really good area. You know, Greg and I both grew up, you know, not far from here. And you know, when we saw this particular track of land, we knew the area and where it power at the road what else, Greg? good state road frontage. You know, this is one where, you know, all the checks were coming out, you know, checked off on this one.
Eddie Speed:
That's great. What I would say that you guys do is you essentially buy land, like house buyers, buy houses.
Ben Legg:
Right?
Eddie Speed:
You use all of the same techniques. You find people that have a piece of property they're not using, and you do a marketing system to go reach up to them. So here's the land track. And and I assume that you've all got, you guys can see that. And you know, the orange line here is of course the property itself where you bought it. So it opens up in the back, right. It's kind of a weird shape tracks.
Ben Legg:
Yep. Got a little Pipestem go ahead. Greg got a little pipe STEM right there.
Greg Phillips:
Yeah. And this is off the GIS as well. So that folks aren't used to looking at maps or land, this is on the County GIS, a map out all the properties and.
Eddie Speed:
Yeah.
Ben Legg:
I think one of the, Sorry, go ahead, Greg.
Greg Phillips:
Yeah, no, we've seen enough of them. This looks normal.
Eddie Speed:
Yeah. Well, and it kind of looks normal to me because as you guys know, I look at a lot of stuff like this as well, but basically the line here of course is the County road. Right. And this track probably did not make a lot of sense to bust up into various tracks because of the way the shape of it. Right.
Ben Legg:
And this one wouldn't have been, you know, you'd have to have a significant amount, more work from edge to be able to do that. You know, if it had that, it would have made great sense. But this one, there were some is actually in land use. So we would have had to pull it out on the land use. There were some different things with this that would have made sense to do that. But this one on route 15, it's a major route in Virginia up to interstate 64. And this property is right by Fork Union Military Academy. So if you've Google that, it's a very prestigious school. Yeah.
Eddie Speed:
All right. So let's talk about, so you guys bought the property and, and just kind of briefly tell us a little bit about the story. So you bought it all cash. Tell us about the seller a little bit and what their story was.
Ben Legg:
I mainly dealt with the seller. I actually I received an email after we sent him an offer. So Greg I'll let him kind of describe, you know, our marketing process briefly. And then I'll kind of take it once we, once he received the offer.
Greg Phillips:
Yeah. So basically we'll get a list and filter down for all the land that we're interested in. We'll go ahead and send out direct mail or whatever contact we want to, to sellers. If they're interested in selling, reach out to us, we'd be glad to talk with you, get an offer out to you and then make a deal work. So this is just one that came through the pipeline for us and Ben took from there.
Ben Legg:
Yeah. I just, I, it struck me because I got an email and it was a very different email. It was from an attorney. And it was, there was nothing in the body of the email. It just had an attachment with a formal letter on company letterhead for his law firm. And he'd said, thank you for the offer. Could you please call me to walk me through the process and how you arrived at your offer price? And it was signed by the attorney. I just, it just struck me as odd. So I just, I personally just picked up the phone and called the gentleman. And that was how he communicated to us, which I'd never really seen before, to be honest with you. And we ended up buying this property from an attorney out of Richmond, Virginia very, very nice guy in his late sixties, probably early seventies. He had inherited this property and inherited some other properties on this road and he was just selling. So I, I talked with him, build some rapport and ended up being able to close the deal.
Eddie Speed:
It's the story. We've all seen a million times, right. He had inherited it. He probably called two or three realtors to list it. They may have listed it, they didn't know how to market it, and they probably never got an offer and to him it was sorta like unsaleable land, so to speak. Right?
Ben Legg:
Yeah. I think the other big factor for him was he did cut the timber. So he received some of his equity out of the land, which is as a big point for us. And it caused, you know, that there would need to be some work, some clean up on the property. So that was something we kind of talked through that he finally just kind of agreed.
Eddie Speed:
So in your neck of the woods, there is a timber value on a lot of this kind of property.
Ben Legg:
Oh yeah.
Eddie Speed:
And I grew up and I did a lot of deals in the Southeast. So I'm very familiar with that idea. Great idea that he did. So he had gotten a lot of money out of it, and this was just kind of the salvage value of the land left in his mind. Right.
Ben Legg:
Right.
Eddie Speed:
And this is why entrepreneurs make money, entrepreneurs solve problems. He couldn't sell it guarantee he couldn't list it with a realtor and gotten any offers. Right. Unless you sell it to an adjoining property owner.
Ben Legg:
He would have had to clean it up. For sure.
Eddie Speed:
Yeah. You guys go out and get it slipped up a little bit. Don't put a lot of money into it. Just put it, put an entrance in the front. Right?
Ben Legg:
Correct. Got an entrance all the way to where you can get back to where you can actually see where you can get the, the wife, you know, in the truck and get her out there so she can actually see the track. That's the idea.
Eddie Speed:
Gotta park in the front door. Right.
Ben Legg:
Right.
Eddie Speed:
All right. So then you guys reposition it and we have this conversation in our group a lot, you know, like my dad used to say, I grew up around horses, right. My dad used to say a horse is worth what the traffic will bear. Right. And meaning a horse is worth what somebody will pay for it. And I think positioning it to the right market in the right way has a lot to do with somebody doing it. So you guys resell this land for 130,000 bucks.
Ben Legg:
Yeah. I'll let Greg kind of tell you one of our marketing secrets, what we do right away.
Greg Phillips:
Yeah. So one of the secrets is a, as you had mentioned, Eddie is, is get in touch with the neighbors. So we go ahead and send a letter to all the adjoining neighbors. And they're the first people we will want to contact. They know the land the best. And we also want them to do the right thing if it's in their backyard and they want it, we want to work with them.
Eddie Speed:
So did that work?
Ben Legg:
It did. We ended up selling it. We sent, you know, neighbor letters, what we call our neighbor letters. It's just a process of funnel through our marketing process. And one of the first things is just our critical neighbor letter. Very simple, very plain Jane, just, Hey, we've got this track. We thought it's the right thing to send you a letter before we market it, give us a call. And that's what we did.
Eddie Speed:
All right. Now here's the best part about this deal. Okay. You get 30,000 down. Hmm. 30,000 paid for it. 30,000 down.
Ben Legg:
Yup.
Eddie Speed:
And you end up with a seller finance note with, let's just call it free.
Ben Legg:
Correct.
Eddie Speed:
Right. It's profit.
Ben Legg:
Very close.
Eddie Speed:
And you get almost a thousand bucks a month for 20 years. Tell me it ain't so.
Ben Legg:
Yeah, this one's a good one. This one was you know, in the neighbor, you know, we've learned a lot just in NoteSchool and obviously meeting you, Eddie, is so one of the biggest things we focused on is getting more down and understanding and underwriting our buyers a little bit about our borrowers rather a little bit better. This gentleman, it's pride of ownership and it's, it's sacred to him. I mean, this is a guy who has high character, we try to underwrite character now and pride of ownership. And this guy has all of it along with 30,000 bucks, you know, he ain't going to walk away from it. You know, this is something he described, he called right away off the neighbor letter said, this is for my son who just graduated from VMI. This is for my family, this is what I'm going to pass down through our generations. We're going to keep this track we're going to clean it up. Horses are going to go back here. This is for our family. And that's, you know, there's, that's who you want.
Eddie Speed:
I've been involved in selling lots of land. Right. And I have learned that land has to have a sacred value to the buyer. And if it does, there's virtually no chance they'll ever default.
Ben Legg:
Correct. We had, you know, speaking of that Greg and I've talked about this a lot, but we had a buyer call, and I talked with him personally, probably about a year ago. And I said, well, why are you buying this? Or what, you know, what was, what I tried to get you to get some info. And he said something interesting to me. He said, this is going to be my future. And I thought that was an interesting comment because how do you ever default on your future? You know, so it's just, it was one thing that's kind of stuck with me. And Greg and I talk about that a lot.
Eddie Speed:
Yeah. There's a, you and I've had, we've had lots of conversations with three of us about different land and what land means and why somebody would buy and what they would do with it. And as you guys know, I'm not a giant fan of some of the, you know, in-field Watts kind of stuff. You know, it's land that really, they have no, there there's nothing they could ever do with it. Right. And this is land that they can put their future on. And I feel good for them. Price is irrelevant. They're selling a piece of property because that's what you offered it for. And the truth of matter is if they wouldn't have paid that you probably could have found somebody else that would have paid the price. Right?
Ben Legg:
Yes.
Eddie Speed:
So it wasn't a matter of negotiating price. It was a matter of finding somebody that had such a value and could embrace owning that land and then it'll be fun one day when you guys go back to your, near your home town and ride by there, and I bet you it's exactly the way that God describes it. Right.
Ben Legg:
Would you agree, Greg?
Greg Phillips:
I definitely think so, I look forward to it.
Ben Legg:
Yeah.
Eddie Speed:
So let's look at this bad boy here, because I love your deal. You guys made 30,000 at the closing, right. And invest invested 30,000. So you had an investment in it. Let's just say you broke even the first year. I'm going to say, okay guys, that's just a break, even. So the first year you made 11,500 bucks, right. In-Depth service where he's paying you. And now you got that money coming back for a long time. And that thing makes 11,000, essentially 500 bucks a year for 20 years. And let me just tell you something. I had an old land man, that used to say this saying to me guys, I don't know that I've ever said this to you. That land will be very good to you.
Ben Legg:
Yeah.
Eddie Speed:
Right?
Ben Legg:
I've listened to you. If you're good to your bank, your bank will be good to you.
Eddie Speed:
Yeah, of course. You guys have gotten very skilled at this. You now have a note. You have a business you may want to borrow some money against the note you want to may sell a partial. There's lots of things you can do to recoup your future in money that's coming in to you, If you need some of that money for work and money upfront to go do something with and not have to get clobbered and go sell the whole note and take it even have to discount it really even. Right. So there's lots of things in that in the future. So, here's what I really appreciate about you guys. You just looked at the house buying business and you've been in that business. Right.
Ben Legg:
That's how we kind of started we, yeah.
Eddie Speed:
When you look at it and you look through a sort of another set of lands and you said, look, we think we'd like to do this land business. And the one thing about it is, is you thought outside the box, Greg, I tease you all the time, or I'm sorry, Ben, I tease, Greg, I tease Ben because he is being at the real weather man. Am I right?
Ben Legg:
I am. That's what I wanted to do my whole life. Graduated from Penn state with my degree in meteorology and was doing TV.
Eddie Speed:
I moved to the radio or TV station in Lafayette, Louisiana and became the weather man. And all of a sudden, that's a very part-time gig for you because full-time gig is you and Greg are in the land business. Right.
Ben Legg:
That's right. Yep.
Greg Phillips:
Yeah. I let him speak in live TV Every now and then.
Eddie Speed:
He sends me some video pretty cool. Yeah.
Ben Legg:
Yeah. It's been a while since COVID, they've, kind of shut that down. I probably, I get to do it probably 15 times a year get to fill in. So it's fun
Eddie Speed:
Anyway. It's that's that's, that's fun, That's a fun thing. And listen guys, I really appreciate your business. I appreciate how you handle it. And we'll all agree. That was an extraordinary deal. We wish we could do that times a hundred every year, but, but sometimes they're not going to be quite have that wide of a margin in it.
Ben Legg:
Yeah. We look for singles and doubles. I mean, that's really what we built our business on, you know, really good quality land. You know, this one is a home run. I mean, there was no doubt about that. But we've learned a lot and look forward to continuing to learning a lot.
Eddie Speed:
Well, we appreciate you guys coming on and share and a great story. And obviously we see seller financing on all kinds of asset classes. And as you, as you guys know, and we've talked about, you know, with this, with the virus in commercial property and a lot of different asset classes that are going to be affected by, you know, going to become distressed assets and the financing is going to dry up a good bit on some of that stuff, we're going to say seller financing home, a heck of a lot more than houses. And that obviously goes opener today. Right. Can you do it on more than the houses?
Ben Legg:
Oh yeah. And I think that that's going to be the theme early for the next for a while.
Eddie Speed:
You got it. You guys thank you. I'm so glad that see you and congratulations on your deal.
Ben Legg:
Thanks Eddie.
Eddie Speed:
Good to see you. All right. Well, it's just about that time, Joe, for Feeding Frenzy Friday.
Joe Varnadore:
God, I love that. Right. Feeding frenzy Friday is live every Friday with Brian Lauchner from the NoteSchool teaching team, as well as Scott Tyler who runs our a tray desk at colonial funding. And so make sure and tune into that every Friday Scott and Brian take about six or seven minutes and they go through deals just like the one you just saw there on the screen. So they talk about, you know, why it's a great deal. They go over the positives and if there's any negatives, they go over those as well. And by the way NoteSchoolTV is sponsored by NotesDirect. So make sure and check that out. So anyway, I just have one question for Ben. Does he have a stage name, right? Is it like Thunder Legg or like Storming Legg or something like that?
Eddie Speed:
You know, I've put Joe, I've never thought of that question, but that's pretty awesome.
Joe Varnadore:
You know, it's just, you know, Eddie, those, I love what, and you'll hear this from NoteSchool students over and over and over, you know, one of the things we don't do, Eddie and that's it because that's where you lead us, right? Is that we don't look to go Oh, you're gonna make a million dollars or 200, whatever it is just like Ben and Greg just said, you know, you, we go for the singles and the doubles. And by golly, occasionally you get to knock it out of the park. Right?
Eddie Speed:
You got your hook in the water, something good can happen occasionally.
Joe Varnadore:
More hooks you put out there, the more that's going to happen man, and you've got a troll. So let's talk quickly about our guest next week. And then we're going to jump into our after-party with Ben and Greg. So Eddie, next week, you are going to interview a very, very dear friend of yours, mine and of NoteSchool, Dr. David Phelps, right?
Eddie Speed:
I am, Dr. Phelps is launching his book next week.
Joe Varnadore:
Yeah.
Eddie Speed:
We're going to, he is launching it on Tuesday and we have a lab interview with him on Wednesday. I'm really excited. I have a long history with Dr. Phelps. Thank a lot of this man, smart cat, good guy. And just really excited you guys be sure and stay tuned with us and be with us next week on that.
Joe Varnadore:
Absolutely. And the name of his book is what's your next. So guys stick around with us for the after party and make sure and again, like subscribe and hit that bell notification so that, you know, when we go live every Wednesday morning at 11:05 central time, and to check us out and to learn more about NoteSchool and what we do at note school, go to www.NoteSchool.com/TV guys. Thanks so much. We will see you next week and take care.
Eddie Speed:
Well the guys, this is what we call the after party.
Ben Legg:
Gotcha.
Ben Legg:
And you've been to after parties, Ben , not exactly what you were thinking. Yeah.
New Speaker:
That's why I'm here.
Scott Patton:
Question and I'll pop it up on the screen for everybody. How does one get the value of a land track to enable a to place an offer? She meant to, she did a correction for real property. We use comps, et cetera. How does land work?
Ben Legg:
I'm going to let Greg take that one.
Greg Phillips:
I would say land is real property. It's about real as it gets, and you're going to do it just about the same way you're going to look for similar properties in the area, compare it based on acreage and all the different attributes of it. I will tell you it's a little bit harder to value land. The comps aren't quite as readily available. Some of them do have to get a little bit further back, but for us, that's how we value it.
Scott Patton:
And Sharon.
Ben Legg:
Go ahead.
Scott Patton:
I was just gonna say, and Sharon had a comment that's kind of related to what you just said, which is, unlike the residential housing land value, based on its usage, residential, commercial, Timberland, they all have different ways to be evaluated. Yeah, Back to you, Ben.
Ben Legg:
Yeah. I just, I was going to say we internally we use what we call our data sheet. So we will put together comps, actual comps of properties that have sold in the County and we break those up by acreage. So under an acre between one and three acres, three and six so we get ranges and then we compare them of what they sold versus their assessed value and price per acre. And if you get that, you've got a really good idea of what land is valued and obviously going to see it and just being involved in it.
Eddie Speed:
You know, land guys develop a judgment is what happens. Right. You had was it 33 acres? 36. I forget the exact.
Joe Varnadore:
33.
Ben Legg:
Yeah.
Eddie Speed:
Yeah. So the thing about it though, is the way it was narrow, it was kind of had a neck to it. Right. So it is narrow front and it went back. And so you get into a little bit of a question of usable acreage, right. And So had that been 33 acres all along a road that you could have cut into four tracks, it's value to buy would have been very different, correct?
Ben Legg:
Correct. Yes.
Eddie Speed:
And so those are things that you now have developed kind of a sense and the judgment about, I think it's common sense, but you understand the rules that relate to the common sense. You guys obviously have great common sense.
Ben Legg:
I think it's just experience more than any other, just like a house. I mean, when you do a single family versus one area versus another, you just under just experience and understanding what you can do.
Joe Varnadore:
Well guys, but it didn't start out for this guy said, well, I want a hundred thousand dollars for this. Right. I mean, you kind of talked through it. He expressed what he was looking to get out of it. So it wasn't like, it was just so difficult to go out and you know, make a nail a price for this land. Right. I mean, am I go along the same bright trail there?
Ben Legg:
Yeah. Greg, I mean, we've got a system for how we, we do all that. It's weekly or what Greg.
Greg Phillips:
Yeah. So we'll I mean, we'll obviously do the research on it and go ahead and send out what an offer we think would be fair for. And then from there, we'll either call the seller, they'll call us, we'll do negotiation at that point, or we'll follow up in the future with the revised offer and really take a look at it. And it's systematic how we do that.
Eddie Speed:
And obviously the price you pay is irrelevant to whether it's all cash or terms, right?
Speaker 4:
Correct. So that's how that we're looking forward to, to learning we're baby pops when it comes to seller carrying on the front end, we don't, we're looking forward to learn it from you. You guys, on that.
Greg Phillips:
I would say something with the land that we haven't mentioned is it's prime for finance. And one big reason is banks don't lend on land. And so if banks don't lend on lands, you either have to have all cash or the seller has to find it, whether you're buying it from the seller or we're selling it, it's without banks involved where we're the bank,
Eddie Speed:
You know, our person that made the comment a minute ago on the, on screen has got our producer, you know, read it back to us. It's interesting because what she said was she was, she was referring to houses, real property as if land wasn't real property. Right. And Greg, you quickly corrected and said, it is real, but here's the reality, right? Land, a lot of land is difficult. It's difficult to sell it the way we're used to set traditionally selling property. Right. They've called, how many times have you guys had a customer call you about selling a track of land? And they've had it listed with a realtor or they talk to a realtor and the realtor went on and on about what it was worth. And then they couldn't sell it
Ben Legg:
105 times out of a hundred.
Eddie Speed:
Right. And so that's the advantage is the fact that it's not, it traditionally is not very efficiently sold through realtors. Now we mutually know people that are smart land people that happened to be realtors. That doesn't mean every realtor doesn't know how to do it. But most realtors don't know how to do it. Right. And that's become your business model.
Ben Legg:
It's hard. I mean, it's a hard asset for people to understand, unless you really commit to understanding it. And it's not, I don't mean it's hard. Like, Hey, it's you gotta be rocket science to scientists to understand the whole process and how to actually buy it, a track of land. But it's, it takes just like anything else. It takes time and effort and energy to learn it.
Eddie Speed:
Yeah. Well, you guys have built a business around this. This is your gig. Right. And you do it every day. And, so you've really, you've really taken it to a different level. I've met lots and lots of people that did land on a very part-time basis and did okay with it. Right. Did pretty good with it. And obviously as you guys know, as I said, at the beginning of the show, I love land. And it is because really at the end of the day, what I've discovered is if you're, if you find the right buyer that buys the land from you and you owner finance it, the right land and the right buyer, they almost never default because I used a word earlier and I was taught that word by land man. And he used to say, Eddie, this land is sacred to these people.
Ben Legg:
Yeah, you're right. I mean, country land and good country hard. And people, they, it's their land. They want it, they, that's just part of, that's just how it is.
Joe Varnadore:
You know, it's there, it's kinda like their sanctuary, especially with everything that's going on no to be able to get out and go out. And even that it's got a little road there, but you get into that and then look at you, stand there and kind of look at it. And it is real. And Greg, Ben, I just have to ask you a question here. So is there as much competition in this, there was when you were buying and selling houses?
Eddie Speed:
You don't have to answer that guys.
Ben Legg:
Interesting. I we have definitely seen an uptick in the com, we received more letters now for tracks that we own, that we have in the past, but no, Houses are a whole another animal.
Eddie Speed:
You know, and one thing I want to, before we hang up and I know we need to, but I want to say one thing, because people hear me do like the, the weather report bands, so to speak of the market, because what's happening in the weather right now might be very different from what's going to happen because of what's working behind the curtain. Right. But you guys land business and some of this other network of guys that we're in. So my partners in the land business, we put a track of land for sale within 75 days, we've sold $2 million worth of land.
Ben Legg:
That's insane.
Eddie Speed:
True story. And and so.
Ben Legg:
For cash?
Eddie Speed:
Yeah, we actually did sell it for cash. And I wish we could have owner finance part of it, but they just were, were, they were like, literally just like, no, we won't pay cash. I mean, it's like, we sold seven tracks in about 60 days. My guys did awesome job. And people, people, so to understand what Joe said about the virus is true. This country land it, this particular land was about 90 miles from Dallas Fort worth. It was pretty land, and people were buying that land to do what?
Ben Legg:
Get away.
Eddie Speed:
To go with escape being in the city. Yeah.
Ben Legg:
Wow.
Scott Patton:
So, We have two questions that are kind of related to what we do just been talking about. So is it okay. We'll just take these, it'll be the last two questions first from Mary S. Asked, where do you find listings for tracks for vacant land such as this one larger or smaller. I see ads for vacant land on Craigslist all the time, but there are some publications that are there some publications you three subscribed to before you answer that, let me bring up Charles what sources do you use to locate the tracks you want to make an offer on? So they're kind of like the same question.
Ben Legg:
The marketing gear wheel take care of it.
Greg Phillips:
So I'd say in terms of finding land, and basically where we market to www.landwatch.com is going to be one of the biggest sources. They pull everything that is only MLS, and that's probably gonna be your number one source. And then Facebook marketplace has been really good too kind of have to sort through a lot of things, that's another hot spot that you can sell on or find tracks on as well. Craigslist is another good place, but just like land versus houses, it's a little bit harder to find it compared to land watch and Facebook marketplace for it, and then sending the list. I'd say, it's going to be about the same as houses. We like to go directly to the County get the list from them. There's also data providers you can get out there. You just want to get the list and go and sort it for the type of lands you want.
Eddie Speed:
Okay. Joe, take us home, pal.
Joe Varnadore:
Very good. I certainly will. So again, if you want to learn more about NoteSchool and what we do at NoteSchool, go to www.NoteSchool.com/TV, make sure and like subscribe and hit that bell notification. We will see you next Wednesday live at 11:05 central, have a great week.
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