#63 Double Your Money in Land with Pete Reese
Pete Reese is the President of Reelvest Properties, a land development and investment company. With nearly two decades of real estate experience as a broker and investor, Pete has successfully purchased and sold hundreds of pieces of real estate for a profit over the years for himself and on behalf of his clients. He’s on track to earn $4 million in revenue in 2022 with his land flipping and development business. Pete’s always looking for his next deal, including his longtime dream of his own private island. Besides his professional accomplishments, Pete is a proud father to three beautiful girls, keeps up with his family by working out and enjoying a vegan diet, and is the 31st great-grandson of King Henry II.
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Pete Reese: (00:00)
Just started reading some stuff online about it. They caught my intention. I saw some people that were,
Tony Javier: (00:04)
You teach people how to do this themselves so they can do it themselves.
Tony Javier: (00:08)
You, like I said, you can turn a lot of those so-called negatives and things positive.
Tony Javier: (00:14)
Welcome everybody to the show. This show is created to help businesses start or grow the real estate investing businesses. By bringing you guests, they can share their journey with you. So you can learn from not only their successes, but more importantly, possibly their failures. So I wanna encourage everyone to realize there’s unlimited, unlimited potential, and that you can get there faster by working smarter. So hopefully this conversation will prove it to you today, and they help you work smarter. Remember, uh, when you want to get somewhere and get something done, don’t ask how can I do it? But more importantly, who can get me there? So I’m Tony Javier, 20 year real estate investor, and most importantly known as the TV guy. So if you guys wanna dominate your market with TV commercials, go to TenX tv.co. Again, that’s TenX tv.co. We’re actually partnering with people, another TV market, so I’d love to talk to you about that. So, I’m excited, uh, super excited today about our guest, Pete Reese. We’re gonna talk about land, which is a great topic of conversation and something, and talking about in some of my mastermind groups. So, Pete, welcome to the show.
Pete Reese: (01:10)
Great to be here, Tony. Thanks for having me.
Tony Javier: (01:12)
Absolutely. We just realized we’re probably, what, five or 10 minutes away from each other? Yeah,
Pete Reese: (01:17)
Yeah, we’re neighbors. ,
Tony Javier: (01:18)
Which is super cool.
Pete Reese: (01:20)
So let’s do it non-virtual next time. Maybe
Tony Javier: (01:22)
. There you go. There you go. Next time we’ll have you in person. So, . Well, awesome. So, land, not a lot of people think about land when it comes to real estate investing. So just curious on how you got started with land and, and kind of what got you thinking about land, and it seems like a much easier way to flip property as opposed to houses. So, uh, tell us your story. I’m
Pete Reese: (01:41)
A good believer. Yeah. You know, I, I kind of stumbled into this business model a couple years ago, just reading some stuff online. I was, I’ve been a real estate broker since 2006. I’ve, I’d started investing at, you know, 2002 right around there. So I, I’ve been in the real estate game for quite some time and then kind of took a break from it in maybe 2015, 2020, somewhere around there. And I was like, I, I gotta get back in the game. You know, real estate investing. I’ve always loved it. It’s kind of who I am, who I consider myself to be. So I just started reading some stuff online about, they caught my intention. I saw some people that were, you know, talking about deals they were doing where they were, you know, buying properties for 10,000, selling ’em for 30,000, and kind of the business model that they were using to, to get these deals and make the system work.
Pete Reese: (02:25)
And it just really kind of intrigued me. I thought, Hey, that’s, that’s pretty cool. You know, I’d like to triple my money on every deal, and I could see how scaling that up could be pretty easy. Maybe not easy, but doable. And yeah, I bought a training course on it and just dove in, learned everything I could about land. I, you know, I had a good basic understanding of, of land and how to develop and, and those type of things. But the business model itself, you know, how specifically to make the machine work. And then I just started diving in. I sent out my first batch of 10,000 pieces of mail, I think almost two years ago. I think it was December of 2020 when I sent out those first 10,000 letters. And I did my first deal in land flipping in March of 2021. And this year, uh, 2022, I’m on track to do about 4 million in revenue at about, uh, 50% gross profit margin. So on average, we’re pretty much doubling our money.
Tony Javier: (03:16)
That’s amazing. My year’s perked up when I hear those numbers, man, because Yeah, yeah. in order to, to, to, to do that many houses, man, that’s, that’s a lot of transactions and a lot of, yes, as, as you said before we started tenants and toilets and, you know, things of that nature. Yeah. So, so walk us through a transaction, because I think most people know how a real estate transaction works with, with houses, right? You know mm-hmm. , either you wholesale a house, which you’re getting a contract on a house, and then you’re finding a backend buyer. Or if you’re flipping a house, you’re actually doing work on the properties and whatnot. And it sounds like you’re closing on all of these deals, right? Mm-hmm. . So walk, walk us through a typical transaction. Now, the closing works. Do you do any improvements to it? Do you split the lots up? Like, you know, tell us, tell us how that all that works.
Pete Reese: (03:57)
Sure. Well, here’s the basics of the business model, at least the way I do it. There are a number of different ways to, to skin the cat, as they would say. Um, there’s a lot of different models associated with the land investing business, but here’s what I do. I, it starts with direct mail. All of our business is generated with direct mail. We send out letters to people, to, to property owners directly. You know, we use information that we compile, we compile lists from a company called, uh, data Tree. It’s a First American company. Mm-hmm. . So we prepare lists, send them out, and, and basically I’m sending out things all over the country. I’m not, I’m not really doing any deals in my own backyard here. Mm-hmm. Mm-hmm. . And so we send out, you know, stuff to, to get the phone ringing or emails coming in or mail coming back.
Pete Reese: (04:38)
And these are actual offers that we’re sending to people. And it’s based off of kind of averages say, you know, like, uh, in a certain area a property might sell for $3,000 an acre, we might offer ’em, you know, a thousand or 1500 an acre and, you know, they’ll call back or respond back in some way and either say they’re interested or, or we’re too low or, or they’re interested. But then we look at it and we’re not interested because of pe you know, it’s a swampland or it’s landlocked or something. So , we go through that process. We come together on a deal with the property owner, and then we, um, move forward with our due diligence. So we have a whole kind of, uh, process that takes place once we get under contract. Um, we send a photographer out to the property, normally a drone photographer as well, walk the property.
Pete Reese: (05:23)
We also work with, uh, local agents that will give us their opinion on the property about the area and what they think that they could resell the property for. Uh, we do all the transactions through an escrow or title or attorney’s office. So we do every, make sure the title’s good before we close, and then we buy it 99% of the cases we’re buying ’em just for cash. And then we close on the deal, and then we immediately list it for sale. And we list it at a price that’s slightly below market in most cases. So we can generate a, a quick resale. And our average days in our inventory is 60 days, and that’s including, you know, the resale escrow period. So, and, and, uh, as far as improvements on the properties, we do, uh, improvements. Sometimes it’s kind of dependent on the property itself.
Pete Reese: (06:10)
Sometimes we’ll do some, some basic clearing so people can access the property and, and kind of walk it. Sometimes we’ll do a perk test. Sometimes we’ll order a survey and, uh, we’ve done properties where we’ll split ’em up, you know, we’ll take a, and we just did 1 75 acre property and we split it up into five parcels. It’s a minor, minor subdivision, which in a lot of states is pretty easy. Basically, you just hire a surveyor, they go out and do it, and then they file it with the county, and then you’ve got five for one. And then we resell ’em individually. And just by doing something like that, you can create value, but Awesome. There’s, yeah, in a lot of cases it’s really not that extensive what we do to the properties. It’s mainly about buying a property, right. And then being able to market it right as well.
Tony Javier: (06:52)
Have you had any properties you bought where you did the due diligence, you close on it and then you’re like, crap, I can’t sell this for some reason. That would be my concern. Just not knowing a lot about land, you know, whether it’s, uh, potentially in a flood plane or maybe there’s some kind of restrictions. I mean, I’m sure you do do your due diligence to make sure some of those things don’t happen, but has it ever happened to you?
Pete Reese: (07:11)
We’ve had some properties that haven’t been great, some deals that haven’t worked out great. I haven’t lost money on any deal yet, knock on wood. And I’ve got nothing in her inventory, which I anticipate losing money on. So we’re pretty, we, we have a pretty thorough process as far as our due diligence goes at this point. Uh, we use a lot of online tools where we could tell a lot of that stuff before we even get under contract with the property. You know, say it’s, uh, in the FEMA flood zone, or if it’s, uh, wetlands or if it’s landlocked. And, and a lot of different, a lot of different things that we look at. And, you know, there are some that I, you know, in hindsight I wish I didn’t buy mm-hmm. , you know, but you know, you’re always gonna have those type of deals. And then they have some that worked out way better than I thought they would as well. Mm-hmm. , so they kind of make up for those, those kind of dogs. .
Tony Javier: (07:55)
And the great thing is, I mean, tell me about the price points. Like what is your typical price point that you buy, you buy land
Pete Reese: (08:00)
In? Yeah, I, I mean, it started out, you know, when we, we first started, I was, I, I would buy pretty much anything, you know, in the five to $50,000 price range. And then at my goal was to kind of double our money on each deal. And then, you know, as we got going further, I realized, hey, you know, some of these, some of these cheap properties, they have a great return. So I might buy something for five and be able to net 15. So you triple your money, but it’s not really gonna move the D needle that much as far as the business as a whole. So I’ve, this last year, I’ve really started kind of backing away from those deals because, you know, like with, like with anything else, some of the, this smaller deals, they sound really appealing, they sound great, but they take actually more effort than the bigger deals. Mm-hmm. and, um, cause more problems sometimes , right? They’re, they’re junkier properties. I guess it’s, it’s a good way
Tony Javier: (08:50)
To put it. So, so you’re saying 50,000 at above now is kind of what you’re trying to deal with for
Pete Reese: (08:54)
The most part? Yeah. That’s, that’s a good benchmark. You know, and the highest I’ve done so far is I’ve bought one for three 15, sold it for 5 95, so that wasn’t quite a double, but still a substantial amount of money and, you know, and I’ve got a couple that were in Esker to buy that are, that are larger than that 365 and 4 75, somewhere in there. But in both of those, I anticipate being able to double our money, so, awesome. Just kind of being able to like, continually keep the money moving and trading up,
Tony Javier: (09:21)
Man, you’re getting me excited about land .
Pete Reese: (09:24)
It’s, I dunno, I’m a big fan. I mean, and I’m not, I’ve never considered myself to be a land person, any of those types of things. I mean, I’ve always been into houses like, like most other people and I’ve flipped houses and in my past quite a bit. And I don’t know, it’s just a, it’s just a kind of an easier business model. It’s kind of the blue ocean as they say, you know? Mm-hmm. flipping homes is kind of the red ocean right now. There’s so many people doing it, it’s
Tony Javier: (09:47)
Tough. Yeah, yeah. You know? Absolutely. Absolutely. No, I love it. Um, as I told you before, we, you know, push play here, I’ve got, uh, clients we run TV with around the country, and they’re getting some land, land deals and they’re making six figures on ’em, you know? Yeah. And it’s hard, it’s hard to make six figures on a house, especially when your average price point, like mine is 150, 200,000. And so, like, my air’s perked up and I’m like, well, wait a second. You know, how, how can we, you know, do this with, with other people? So we’re actually launching, launching TV commercials for those that just want to find land. And I feel like, like you said, it’s a blue ocean where not many people are thinking about it. In fact, we had a call today, a mastermind call for, for our TV clients, and one of the guys that we’re launching is launching land. And another guy was like, wait a second, you can really make money on these deals. So I connected them and he’s like, we had a great conversation. There’s a deal that I might be able to make work that I normally would’ve just thrown to the side. And I bet you a lot of real estate investors do that where they get a land deal and they’re like, I can’t do anything with this cuz they don’t think a house is on it. Right. And it’s the same. Yeah.
Pete Reese: (10:45)
And, you know, yeah, go ahead.
Tony Javier: (10:46)
I was just gonna say, it’s the same thing with sellers. You know, I’m sure that’s probably why it’s profitable, is now many people are marketing for land and then when you, when they get a postcard from you, they’re like, oh, wait a second. Um, I am sick of paying that tax bill and you know, this how this land isn’t making me any money. I’ll just, you know, I’ll just sell it and they sell it for, you know, half or a third or fourth of what, what the property’s really worth.
Pete Reese: (11:05)
Yeah. And, you know, I was always under this impression in the past that land takes forever to sell. You know, that was my kind of big hangup. Like, okay, it’s great. You might be able to make, uh, some good money on land doing a development or, or something like that, but it’s gonna take forever to sell. And this business model kind of is the opposite of that. I mean, like with 60 day average hold time on our inventory, we’re selling things very quickly. And you know, when you kind of do the math and, and you really start calculating your, your return on investment, uh, especially if you multiply that out for, for an entire year, it’s kind of staggering numbers and it’s, you know, the whole key is buying Right. And then being able to resell. Right. The other thing that I think is really important is to kind of know the area that you’re dealing with.
Pete Reese: (11:50)
Some areas there’s a lot of activity. Like there’s a, a lot of land transaction purchases, there’s a lot of listings, there’s a lot of stuff going on. Mm-hmm. , some areas there seems to be somewhat of an imbalance between what the sellers are expecting and, uh, what the buyers wanna pay for ’em. So not a lot of, not as many transactions happen. Like, not a lot of deals happen, but you, you look for the markets where there’s an, there’s an active market, you know, like there’s a pretty solid understanding of like, okay, land in this area goes for 3000 acre, and when that’s well defined, there happens to be a a lot more
Tony Javier: (12:24)
Activity. Where do you find those comps? Um, you know, people in the go through the m mls to find, you know, comps for houses? Do you use like LoopNet or, or where do you find your comms
Pete Reese: (12:32)
For? Yeah, most of the comps, most of the comps that we do are on Zillow really. So you can, you can fill, you can search for land on there as well, and then just filter it by, by the, uh, you know, by the, uh, acreage ranges and how long you know when it’s sold and you know, or how long it’s been on the market. And we also use a place like, uh, land Watch is another big kind of portal for land only listings, but they, you can’t look up sales on there. That’s the only problem. You can get an, get an idea for what competitive listings are like, and if there’s a lot kind of going on in those areas. Mm-hmm.
Tony Javier: (13:01)
, the other great thing about land, I’m sure is, is the price point. So if you do want to deal under 50,000, either one, some people have the cash to pay for that, or two, you don’t have to tie as much private money up. Right. And if you’re turning ’em in 60 days, that’s not , that’s not that much time to, to have to No. Hold the property. So I like that.
Pete Reese: (13:18)
Yeah. I’d say that’s, that’s, that’s, that’s one restraint if you’re looking to do it, you know, by yourself. It’s hard to find lenders. It’s hard. There’s no real hard money lenders for land. I mean, they’re, they’re probably out there, but they’re not, not readily available, uh, I guess you could say. But there are people that will partner with you. There’s a, there’s kind of an active market for that. So what the typical deal is, is they will put up all the funds, you know, you bring the deal, say, say, I, I got a property under contract for 50,000, the thing’s worth a hundred, and I can demonstrate that as it’s an actual real deal, and they’ll put up the 50,000, close the deal, and then when it sells, you guys split the profits.
Tony Javier: (13:56)
I’d be on those deals a hundred percent.
Pete Reese: (13:57)
Yeah. I mean that’s, that’s actually a win-win for both sides because, you know, the investor, it’s like an infinite roi because they’re not putting any of their money up, only the money to acquire the deal itself. So direct, direct mail or whatever else is involved with that. Mm-hmm. and then the, the funder side, I mean, they’re getting unbelievable returns, you know, on their money for not doing anything mm-hmm. . So yeah, there’s risk, but you know, if, if you know what you’re doing, the, the risk could be kind of minimal. So Yeah. As long as you’re buying the property is right, you know, the downside risk is, is really pretty minimal if you’re buying properties right. In a de if you’re buying decent properties at the, at a good price in an area where things sell, you’re, it’s gonna be hard to go wrong. It’s gonna be hard to lose, really.
Tony Javier: (14:42)
What are your thoughts on, uh, texting or cold calling those leads as well? Is direct mail just a lot easier, whether it’s inbound and is just, you know, you’re dealing with more motivated sellers as opposed to having to, to go through a bunch of bunch of crap leads mm-hmm. You know mm-hmm. , like you do a texting, cold calling. Is that kind of why direct mail you think works so well?
Pete Reese: (14:58)
Yeah. Yeah. It’s the, it’s the business model that I started with and we’ve just kept at it. I’ve thought about getting into texting or cold calling, but just haven’t done it. What’s, what’s interesting is that we can, we can pretty much target the kind of properties that we want with the direct mail, and I guess we could do that by, you know, creating that list and skip tracing it and then, and then doing, doing it that way as well. But I do think that, I do like it because the inbound leads, you know, they’re, they’re a lot more motivated and our cost per deal. And last year for the whole year, our cost per deal was about $2,500
Tony Javier: (15:30)
Per each. That was gonna be one of my next, that was gonna be one of my next questions. Okay. Your cost per deal. That’s perfect. Yeah.
Pete Reese: (15:34)
Yeah. It’s crept up a little bit this year. That’s because we’re going after bigger properties, so, you know, it’s probably 3000, 30, 200, somewhere in that range, I’m guessing is where it’s gonna shake out at the end of this year. Mm-hmm. . And so far, I think, uh, the deals we’ve closed this year, it’s gonna be about average profit of about 22,000 per deal. Mm-hmm. , so the numbers work. I mean, the return on investment is there if we’re paying, you know, 3000 to get a deal and we’re making 22,000, you know. Makes sense. Yeah,
Tony Javier: (16:03)
Absolutely. Do you find, do you find that there’s different parts of the country that do better? You mentioned, you know, mar some markets may be better than others. I imagine probably Midwest markets may be a little bit better, would you say?
Pete Reese: (16:15)
I’ve never really done anything in the Midwest. No. I’ve never even, you know, I’ve thought about some of the areas, but we just haven’t, most of our stuff is on the east coast at this point, you know, like the whole, all the, the East Coast states pretty much, uh, not, not the northeast, but pretty much, you know, Pennsylvania down. So that’s, that’s kind of our, where our sweet spot is. But I’ve also done stuff in the Pacific Northwest and in California too. But, um, you know, it seems like everyone, kind of, a lot of the investors I know, they kind of fall into a little groove of like, areas which they really kind of understand and, you know, there’s, there’s a lot of opportun, there’s, there’s so many properties in those areas. You’d really have to be sending out massive amounts of mail in order to kind of, you know, burn everything up.
Pete Reese: (16:56)
I get burn all those weeds up mm-hmm. . So there’s a lot of opportunity. And, and I know a lot of people that do Midwest or Texas, I know a lot of people that do the desert, you know, like desert squares, they call ’em, they’re buying, you know, five, 10 acre parcels in the desert. It’s a completely different business model. They may have buy these things for, you know, a hundred dollars an acre and then they sell ’em on owner financing and just take payments for, for a long time. And, you know, their return on investment is great. It’s just kind of hard to make the bigger numbers that way, in my opinion.
Tony Javier: (17:25)
Yeah, I was just gonna say that. I was talking to one of our land clients and, and, uh, that model where, you know, you buy a piece of land for 5,000, you mark it up for thir to 30, you collect a $5,000 down payment, and then you’re nothing into the deal, and you just collect the payments in the, in the interest. Right. And, and, uh, but you’re right. That’s not super, super scalable. Um, but, you know, that could work for some people and maybe get them in the game and get them started, so.
Pete Reese: (17:49)
Yep. For sure.
Tony Javier: (17:50)
Yeah. So tell us about, uh, the best deal you’ve ever done.
Pete Reese: (17:53)
Oh, the best deal. I would say, I would say that bigger one w the 315,000 sold it for 5 95. Mm-hmm. , that was kind of my favorite. It was an awesome property, 650 acres, , something like that. And, uh, beautiful property, you know, pine trees all over it. And it was, it was just a situation where it was an inherited property. And, you know, they lived in a different seller, lived in a different state, and they just kind of wanted to move on. They tried to market it, they tried to market it, uh, a couple times in the past, you know, they overpriced it and it sat on the market for a long time and they didn’t sell it, so they were just interested in moving on. And that’s why they, they took our offer. I think we originally offered him 2 95, and then we negotiated up to three 15. But it took about somewhere, I think it took about five months to clo five months from beginning to end, which was longer than, than my normal deal
Tony Javier: (18:43)
Because of the follow ups or because of the closing process?
Pete Reese: (18:46)
Partially the closing process. I think it was a 45 day escrow. But the, the main thing is we had started higher, you know, we had started at seven 50 or something like that, and then we kind of gradually kept working it down, but,
Tony Javier: (18:59)
Um, oh, you mean you, when you priced it I see.
Pete Reese: (19:01)
Yeah. Or list priced when we put it.
Tony Javier: (19:02)
Oh, I see, I see. Okay. Yeah. And what, what did they originally listed at when they had it on the market? I
Pete Reese: (19:07)
Think they were, you know, 8 99, maybe, something like that. And, you know, and as soon as I bought it, I got a call from the neighbor who had previously leased out the property for hunting and everything. He’s like, oh, they’ve been trying to sell this stuff, this property for years. You’re never gonna sell it. And I was like, okay. A little bit concerned
Tony Javier: (19:25)
. I know. I hate, I hate those calls. I hate when I talked to a neighbor and they’re like, you’re never gonna, and then I, you know, you sell just fine. Yeah,
Pete Reese: (19:31)
Yeah. That’s right. I know , you know, and, and who knows what, you know, his motivation, he wanted to lease the property again. I’m like, well, no, we’re selling it so . Um, but we did some stuff to that. We actually, we cleared some paths on the property, which made it a lot more marketable and accessible mm-hmm. . So I think that was, that was kind of a minor thing that we did, but it made a huge difference.
Tony Javier: (19:49)
Yeah. Yeah. Tell us about the, uh, on the other side. Tell us about the worst deal you’ve ever done.
Pete Reese: (19:53)
Mm-hmm. , you know, I’d say my worst deal was one that was just, uh, just really kind of frustrating. I thought it was the greatest deal ever when I got, and that was, this is like, I don’t know, maybe in the first 10 deals that I did or something like that, I bought, it was a 13 acre property, and it was in like the southeast, and it was in the middle of one of these, uh, a city actually. But it was kind of like in between two subdivisions, kind of a junk piece of property, really mm-hmm. . But when the, when the seller, you know, contacted us, they’re like, okay, we’ll we’ll accept your offer. Which I think the offer was, I don’t know, 15 to 20,000. Then I looked at the property, I’m like, yeah, I can’t do that. It’s like, landlocked and there’s like partially wetlands and I’m like, eh, I, you know, I, I really don’t want this property, but I’m gonna offer him like such a low little amount for it that, you know, he’s probably just gonna say, you know, screw you and, and .
Pete Reese: (20:43)
And, and then we’d both be on our way, but I think I offered 3000. And then he’s like, okay. We accepted it. And I was like, oh, okay. What am I gonna do? I’m, I’m gonna be able to sell this landlock property. What ended up happening, I actually made money on it. So it’s, I can’t say that it’s like a terrible deal by any means. I think I sold it for, you know, five or six grand or something like that, but Right. It was just such a hassle, you know, so many buyers calling about it, why is this so cheap? You know, all this stuff. And I ended up selling it, but it was just, I was just so happy to see it go cuz it was making hardly anything on it, and it was just kind of a thorn to my side. Fell outta escrow a couple times just because I don’t know if the people didn’t realize it wasn’t landlocked, even though I was very clear about all that stuff, you know? So it’s just, it, it taught me a good lesson though, to, to not kind of worry about those junky properties. Like, I always wanna buy decent properties, like good properties where there’s access, no analog properties anymore. I’m not buying any properties that are a hundred percent swamp or anything like that. So it taught me a lesson cheap isn’t always cheap in the, in the end, I guess.
Tony Javier: (21:46)
And, and use your gut feeling right too, you know? Right. I, I’ve got one of those deals right now. I, I lent money, so I, I, I was doing gap funding for a while. I lent money to, uh, to this lady. Sweet, sweet lady. But I, I knew there was something off, uh, but I funded the deal anyway. And long story short, she ended up taking $80,000 worth of draws from the hard money lender without doing the work. She was taking pictures of like corners of the property or corners of each room, acting like the whole room and everything was done when it was just parts of the property. And, uh, we just finally, we got it back and we renovated it and of course the market’s changed. We, we funded this like a year and a couple months ago. It’s been, I mean, it’s when the market was hot and now we thought, I think at the time and we were looking at like 500 or five 50 is what we thought we could get for it. And we just listed it for four 60. So you can imagine the numbers on it. So I would take your deal over my deal all day long. So , that’s all about perspective.
Pete Reese: (22:38)
Yeah. Yeah. I guess it was just, uh, just, it was such a thorn on my side that it probably, you know, and, and it probably just held me back from doing other deals cuz the time I was spending on this thing. Yeah. But,
Tony Javier: (22:50)
So, uh, tell me about, uh, what’s next for you? So you, it seems like you’re kind of mastered in a short period of time, by the way, the land thing. What’s next for you? Do you have some big goals? Do you have some things that
Pete Reese: (23:01)
You are working on? Yeah, I’ve got some, I’ve got some things that I’m, I’m doing kind of related to that. Well, first of all, my goal for, for 2023 is to scale this up to, uh, 10 million, 10 million in revenue. And I think I could do it. Pretty sure I can do it. Time will tell. So that’s my kind of, uh, immediate goal for the next, for the next full year as well. As far as long term, I’ve, I’m really interested in kind of the renewable energy space and, uh, working on developing some of these larger properties into solar farms. Hmm. So there’s a lot of federal incentives for tax reasons and there’s just a lot of money going into, into that industry in general. And I think doing what we’re doing with the land, we run into a lot of parcels, which would be pretty ideal for a solar farm.
Pete Reese: (23:45)
You know, the ideal property for a solar farm is one where you’ve got those huge transmission lines like running right through the property, and those are junk properties that no one wants mm-hmm. . So if we could take some of those, pick ’em up for the right price and kind of chip away at ’em and developing, don’t develop ’em into a solar farm, which is a long process, you know, it’s a two to five year deal, and then either, you know, build the projects out ourself or get it all approved and sell it to someone else that’s going to build it out. But regardless in any of those scenarios, we, we would definitely be winning cha They’re trying to convert the entire grid, um, to renewable energy by 2035. So that just means like a ton of money’s moving in that direction and it’s, it’s going there, it’s just a matter of who’s gonna get a piece
Tony Javier: (24:29)
Of it. Yeah. I’ve seen some of those out here in California. I started flying about a year ago, and every once in a while just get blinded by this light, you know? Oh, yeah. You know, glaring off of these panels and figured out that they were solar farms, so mm-hmm. , um, that’s interesting. I’d like to see how that would play out. I imagine that would probably take some of the deals you’re doing and make ’em like just unbelievably profitable, right? If you could make
Pete Reese: (24:49)
’em work. Oh, definitely, definitely. And, and, you know, it’s a longer term deal and there’s not, honestly, there’s just not much out there as far as information training or courses or anything related to that YouTube video. There’s just, it’s very difficult to get to the information, but there are companies that do solar developments, you know? Mm-hmm. , they’ll, they’re engineers for that, those type of projects. So I imagine that’s kind of where I’m gonna learn how to do it. I’ll be calling up these companies and, and hiring them to put it, put the project all together for
Tony Javier: (25:18)
Me. Are there tax credits that they give for that? Do you know? Yeah,
Pete Reese: (25:21)
It’s a 30%, uh, federal tax credit. So when you, when you, anything you spend on, on the project, so,
Tony Javier: (25:27)
And then you get, and then, and then you get a, I imagine bonus depreciation probably applies to that too, right?
Pete Reese: (25:32)
Yeah, yeah. That’s, that’s what I’m told. So the government’s trying to push everyone in that direction. So, you know, like Rich Dad, poor Dad says, you know, as far as like, that’s what the tax code is all about. You know, it’s, it’s, they’re trying to incentivize you to do certain things and as real estate investors, that’s, you know, taxes are, are, are a great reason to, um, move in certain directions. So mm-hmm. Try, try and take those cues. Cause I, it’s like one of those things where obviously it’s obvious to me that that market in the future is, is going to be a lot more valuable than it is right now. Mm-hmm. . So
Tony Javier: (26:04)
Yeah. Awesome. Good stuff. Good stuff. Pete, anything else that, uh, you want to share with our audience before we start wrapping up?
Pete Reese: (26:10)
Yeah. Um, we’re doing, if anyone is interested in kind of following, you know, our progress as a business and land flipping business, I’m posting, um, regular or monthly income reports showing our monthly revenue, our deal by deal breakdown. Like, we bought this property for 20,000, we sold it for 43,000, held it for this may days and, and kind of a little write up on each property and each deal we do each month, profit margins, everything like that. You can go check that out. Turning profit.com. We’re also got a, uh, new r podcast that, that started up about that as well in real estate investing. So with my wife as a co-host and that’s about it.
Tony Javier: (26:47)
Cool. Good stuff, man. Well, appreciate the time. Um, I, you know, I’m definitely motivated to, to look more into land. I feel like that could be a really good profit center for, for real estate investors that are already doing deals. And I’m excited, you know, looking into that mainly to not have to deal with contractors, not to have to deal with tenants and, and things of that nature. So I don’t know if it’ll go anywhere, but I definitely will get my team to, to look into it and see if it’s, uh, a venture that we wanna get into. So thanks for sharing your knowledge and congrats on, um, you know, the success in a short amount of time. It’s been what year, year and a half ago that you really started, um, you know, doing, yeah,
Pete Reese: (27:21)
Yeah. March of, of 2021 is when we did our first, completed our first flip. So yeah, gonna be two years here pretty soon.
Tony Javier: (27:28)
No, that’s good. That’s amazing. I mean, to be able to do that many deals, 80 deals in a year, I mean, for real estate investing, that’s, that’s pretty hard, uh, pretty hard to do in the single family space, so that’s super exciting. So. Well, thanks again, Pete. We appreciate your time and we’ll have to grab, uh, grab lunch here in San Diego.
Pete Reese: (27:44)
Sounds like a plan. I
Tony Javier: (27:45)
Appreciate Tony. All right, we’ll talk soon. Thanks buddy.
Pete Reese: (27:48)