All Forum Posts by: Clifford Paul

Just my opinion but shouldn't the first question be. Why don't you have any money? The economy is on fire and there's thousands of jobs left unfilled.  What's your savings rate? What does your budget look like? What's your side hustle? Finding a money partner works but I still have to go back to the why... why don't you have money it's everywhere right now. 

It's a good problem to have. I'm kinda in the same situation just with SFR. I get calls and texts daily and even people who know I can buy houses with cash that track me down.

The problem I have is we have very high cashflow for my small portfolio and are just more interested in paying them off at this point.  That being said a great deal is a great deal and I can't stop buying.  LOL 

What's your side hustle? I always ask this question because I encounter lots of people that know I'm living well and want to get into real estate investing. 

When confronted with this question it's the deer in the headlights response.  I have found that most people don't want to work to become successful.  When I say work... yes I actually mean working 2 or more jobs or starting a side business. 

There's 24 hours in a day, just assuming a regular 8 hour job and 8 hours  of sleep. What are you doing with your free 8 hours? 

Here's a quick tip to train your agent. Give your agent permission to reject goofy offers and not to inform you of an offer unless it's serious.  It's been working for me for 35 years. I don't have the time or energy in my life to deal with the BS... that's what I'm paying an agent to do.  

Congratulations! Looks like you did a great job.  

No joke! Some of the cheapest money you can borrow in the world is on a car loan. Not popular on Bigger pockets but still true.  

I personally would not compare it to renting SFR, multifamily or commercial property. Although I do rent some lots to businesses they are just empty lots that they use for parking of equipment.

Leasing of land does not have as high of rent payments but the cost to buy land is so much cheaper.  At least in Texas. But there's more than one way to make money with land.  So check out the example below what I have done with this property. 

Example: I bought 238 acre ranch that had been in the same family for 80 years. 

Purchase  price $450k

Property includes:

1 - 1050 sq ft 2 bed 2 bath hunters cabin 

5 - 10' x 14' ground blinds with electric, heating, bed, mini refrigerator,  and TVs 

Has 2 fresh water tanks ( a tank is a pond for my yankee friends) LOL both tanks are stocked with bass and catfish 

Sold all the cedar trees for $4 an acre 238x$4 = $952

Sold 80 acres of mesquite trees for $2 an acre 80x$2 = $160

Rent 4 hunting blinds @ $2500 per deer season.  4x$2500 = $10,000

made a trade to my brother to finish clearing the 80 acres for use of 1 hunting blind. Also use it for friends and family members. 

Rent 80 acres to another rancher for hay @ $20 an acre, plus we get 20 round bales per cut. 80x$20 = $1600 two cuts a year = 40 bales @ $35 per bale. 40x$35 = $1400. That's $1400 we don't have to spend a year on hay. Plus when hay is not in production my son turns his rodeo bulls out for grazing. 

Rent hunting cabin @ $125 per night. Last year we had 52 nights rented. 52x$125 = $6500

First year income:

$952 - cedar trees 

$160 - mesquite trees 

$10,000 - 4 hunting leases 

$2,500 - labor trade hunting lease 

$1,600 - 80 acres leased hay

$1,400 - 40 hay bales @ market rate 

$6,500 - 52 rental nights @$125

Total: $23,112

$450,000 - purchase price 

$112,500 - 25% down payment 

$2385 mortgage @ 7% for  25 years 

$300 - property taxes a year 

$1200 - Insurance a year 

As you can see I'm not making a profit or breaking even.  But that was just year one and we have more ways to make money on this property that  we have not tapped yet. 

I just kept trading up until I found a wife that was real estate investor friendly. Worked great for me and I can still sleep in as late as I want.  Mostly joking but actually a true story.

  "Life is short and sometimes trying to make lemonade from lemons is not the best course of action when there's a lemonade stand next door "  Clifford Paul 

Here's how we do it. We don't live on or use our property income for anything other than buying more property, property pay downs and substantial reserves. I know,  I know  not popular here to not  be leveraged  to the  max. That doesn't  mean we don't  use leverage just we keep 30% to 40% of our portfolio  debt free. As your cash flow grows so does your portfolio.  

Yes you can lease land for many different purposes.  I have land leased to hunters,  cattle ranches,  farmers and a couple to commercial businesses.  It's easy money because there is no capex or maintenance required.