E48: Why Land Is the BEST Real Estate Strategy for WEALTH in 2024

Cash Flow Fight Club

Want to learn the secrets to building a lucrative land investing business from a seasoned pro? In this episode of the Champion’s Corner, we welcome Brent Bowers, a military veteran turned real estate mogul.

Brent shares his proven strategies for finding discounted land deals, implementing creative financing, minimizing taxes, and scaling a profitable enterprise while maintaining a work-life balance. He also discusses how he now coaches others to achieve similar success through land.

Here are some power takeaways from today’s conversation:

00:00 - Introduction

02:07 - Land investing and replacing military income

06:20 - Making his shift from house flipping to land investing

11:23 - Implementing tax-savvy strategies

14:57 - Revenue in the first position

17:23 - The power of seller financing

20:54 - The snowball effect in land investing

25:36 - Leveraging land notes for active income and passive investment

34:29 - Due diligence mistakes and legal issues

42:16 - Success factors in real estate investing

Episode Highlights:

[11:23] Implementing Tax-Savvy Strategies

Brent faced a large tax bill that showed the need to diversify profits. He now uses land sale earnings to purchase industrial buildings eligible for cost segregation and additional depreciation. This minimizes taxes by offsetting ordinary income from land with write-offs from other real estate. His strategy demonstrates how analyzing tax benefits like depreciation can reduce liability for real estate investors.

[17:23] The Power of Seller Financing

Brent expresses his enthusiasm for seller financing real estate deals, providing an example where he and a partner purchased a parcel of land, then sold it while financing the majority of the sale price for the buyer over several years. Brent sees seller financing as an amazing opportunity that provides ongoing income and calls it one of the best strategies in real estate investing.

[20:54] The Snowball Effect in Land Investing

Brent provides a colorful analogy to explain the snowball effect concept when starting a land investing business. He recalls helping his son build a snowman and how rolling the snowball made it bigger and bigger. This reminded him of how doing one small land deal that generates an extra $100 per month can lead to doing another that makes $200, and so on until you're earning thousands each month. His story helps illustrate how consistently taking action and letting profits compound can rapidly grow a land investing venture over time through the powerful snowball effect.

[34:26] A Painful Lesson in the Importance of Due Diligence

Brent emphasizes the critical importance of thorough due diligence when purchasing real estate, as he learned from an expensive mistake. He lost $115,000 on a recent land deal due to unexpected access issues that tanked the property's value. This experience reinforced how properly vetting every detail, such as ensuring legal ingress/egress, is essential to avoid potential pitfalls. His costly lesson shows other investors the significance of comprehensive due diligence to uncover and mitigate risks on any real estate transaction.

Resources Mentioned:

The Land Sharks: https://www.thelandsharks.com
Free resource - The Due Diligence Checklist: thelandsharks.com/dd -
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