Ep 113: The Power of Land Ownership: A Key to Generational Wealth

Welcome to the Thank Generation of Wealth Podcast. This is the personal finance podcast for the black community. I am your host, amir Estebo. Thank Generation of Wealth has created to empower the culture, to thank wealth, assets and prosperity for future generations. If you are someone who is inspired to lead a legacy and needs actionable steps, that I do with. This is the podcast we do. Join me every week as we discuss various topics from personal finance, building assets and mindset. Our goal is to leave the planet better than I have been founded by enriching our future generations with the right tools for success. And thanks for joining us on this journey. Welcome to the Thank Generation of Wealth Podcast. This is episode number 113. I am your host, amir Estebo. Thank you for tuning in to today's podcast episode. We are much appreciated. I like to open each podcast episode with gratitude and appreciation. I appreciate you taking the time to listen to this podcast episode, because you could be doing anything in this world, but the fact that you are listening to this podcast episode is much appreciated. So that's number one. Number two this podcast episode is brought to you by Amiristin Financial. Amiristin Financial is here to eradicate financial literacy through tools of education and also getting this message out, that we amongst the black community, of all community, must be able to fight this disease called financial literacy. Okay, first of all, I wanted to record this quick podcast episode and this podcast episode again, this is we're going to talk about the reasons, and I'm talking about now the reasons you must invest in man, as we know, if anybody been following the US, basically Bill Gates, right. So what do we know Bill Gates do? So Bill Gates, as of late, is been buying up all farmland, and the reason why? Well, the reason why is obviously, if any of you guys know about, you know about this lab grown meat that they are looking to sell not even looking is actually it's even now being implemented in our stores that they are selling in our stores lab grown meat. And the FDA approved this based off Bill Gates was actually buying up part of properties, land properties, vacant land properties so he can build facilities to produce these lab grown meat. So they say, well, the reason these lab grown meats are billed, they are created is to help protect the environment, help protect the crop, the cows and etc. Etc. But we all know you're not going to be able to get the true nutrition that you would need from using these or eating, consuming these lab grown meats. So the reason I am saying, folks, if you have been listening to this podcast, I've recorded several episodes. You can look at them up. Go back to many of my podcast episode recent podcast episode. What you will see is what I've been stressing is that you must buy land, because once you start owning land, you can then look into certain things like building, creating your own crops, growing your own crops, because the way the US is heading is we are heading in that direction, and that direction is we are heading to where people are going to need to grow their own crops, because obviously they don't want to say the government don't want to say we are in, we are in a inflation right. So when you get yourself some land, guess what you can do. You have options. Okay, let me paint this picture for you guys. Right, think about it the fact that when you buy a home, then you pay it off, what are you still doing, at least here in the US? You are still paying property taxes. Okay, you're still paying property taxes. No way around it, you can own a home and you still got to pay property taxes and you paying property taxes to the county or the city, not only paying to the city, but you're paying to the county. At least here in the US, right, or at least certain parts of the US, they are still getting paid when you own some land. What happens in this scenario? Right, is you become. You become like the city, the government is when you own some land. Let me tell you a story. There is a guy I can't remember his name, he bought. So what he, what happened, was he bought some land back in the 1950s, right, so we know 1950s, 1960s, what we're dealing with racial riots, black people trying to get, trying to get equal civil civil rights. Right, so we were not on par with our white counterparts because there was a lot of laws that was against the Jim Crow laws. They're still going in. We didn't have right to vote, we didn't have certain rights, used the pub, bathroom, etc. So what he did was even going. This is actually, if I was a trace this back, go back to when black Wall Street was built. I don't have the name of the guy who started it, but he. What he did was he bought, I think, like 400 acres. I may be wrong, it was either 400 acres or 40 acres of land, right, but I think it's on the lat. It's the Affirmation 400 acres, 400 acres of land. So what he did with that land was he was then selling it off to black businesses. That's how black Wall Street in Tulsa was born, or green, you know, if you go back to the Tulsa, that's how it was born. So in this property, what he was doing was but I do have a podcast episode if you go look at some of my older episodes I will actually come in the show notes. It's just right now. I'm recording this episode From basically from the top of my head, so there's no notes etc. Because I just felt like I need to stress the importance of why it's important to own land. Okay, you know, I know a lot of people right now are in the residential and maybe you're someone who listened to this podcast episode you got some Rentals etc. But those are not making any money. Let's just be real. Okay, residential right now is not making any money. So what he did was he bought I think it was 400 acres, but let's just say that, let's just say that and what he was doing was selling some of these acreages To black people. And then what he was doing, what these black people were doing, was they were starting up businesses in the community Like dental office, etc, doctors office, banking. This was all being built. So this was all being built in the black Wall Street district, right, and we all know the story. A young man went into the elevator and then some white lady went in it's an elevator with him and then she claimed that he raped her and then a mob riot of white men came and then they Tore down. Basically, even the Oklahoma the National Guard was called over to then drop bombs and destroy the Oklahoma district, the Tulsa district. So that's why that happened. But, as you can see what happened, there was what he bought acreages of land. Okay, so when you own land, one property taxes are not that expensive versus Residential. Okay, there's actually. So now going back to the story. I was talking about the blood. I'm sorry, went off in tangent, but I was going back to the black wall before the black Wall Street, the gentleman. What he did was he bought some land and that land itself. What he did was I think it was a Walmart that came in the neighborhood in the area that wanted to build on his land. So guess what happened? Walmart gave him two options. Either he takes residual income for life On that property because he owns it, and Walmart actually pays him a monthly, a monthly Revenue, so whatever, so basically every single month. So he did. What he did was a seller financing with Walmart, so Meaning that he was the home, he was the bank, so Walmart would pay him a monthly payment because they built their property on his land. The option two was he cashes out, walmart comes in and they say, hey, you know what, instead of we doing residual, we'll just give you one time payment and then that's it. So what he ended up doing was because he was thinking of generational wealth. He ended up keeping the property. So most people would say, well, you know, I'll just take the money and be done with it. Well, what if I told you the money was two million dollars? He made right. So he made two point two million dollars. Right, that was his option. But he was thinking of this in the long term, and the long term was what you could pass this down from generations to generations. You don't need to then have to. Yeah, you cash your money out, but what are you gonna do with that? Right? So he was thinking of generations. So, until this day, walmart is still paying him a monthly payment because they're operating on his property. I guarantee you and this has been over years, right? I guarantee you right now that two million dollars he probably would have got paid. It's nothing. It's not like if you bought the property and you was doing some type of financing with an everyday Joe Smoll, right? No, this is Walmart and they actually built on his property and they're paying him a residual income every single month. So he is making mailbox money, okay, and this has been over 10, 15 years now. This is passed down from generation to generation to generation. Okay, would you have done that? Would you take that deal or would you just cashed out? That's why I stress the importance of land. By yourself some land. When you have land, I could tell you right now, the difference between land and housing is night and day. We think houses are built on. Houses are built on land. That's why it's important to own the land, not on the land. Forget the house, because once you pay off the house, yes, but you still got property taxes. It looks nice. Let me tell you what. So with housing, right, let's say, you buy a house, but you still, you know you finance it into a mortgage and you still got to make the monthly payments. Let's say your monthly payments are $600, even though these days that's not what it is. But let's say your monthly payments are $600 a month, but for you to make a profit you probably need to mark up that, probably to, let's say, $1,000 a month. So out of that $600, out of that, $1,600 of it is to pay your mortgage. So you're really only profiting $400 and in that $400 you still have to put money aside for escrow right, meaning I mean you can do your own escrow, but in this scenario you got to put money inside in case anything breaks down, and it will happen. In housing it will. So that's why I am stressing the importance of owning land, because you don't have to deal with that in land. You don't have to deal with somebody calling you in the middle of the night. We're sleeping and they're toilet the toilet broken. You got to come and fix it. Or hire a Hire a realtor Right to sell your property. Or hire a Hire a company, a property management company. To what? Hire a property management company to manage your property for you. So you're not getting those calls at night and you're getting it directly from the property management and that all comes out of the 400 bucks. So at the end of the day, you're probably making what 100, 150, 200 box bucks per barely. That's why I am saying it's important to own land, because with land you don't have those type of troubles. Now. Is land easy? No, it's a very tricky Business to get into. If that's what you want to make, it, it's a very tricky business. But, as you see, a lot of right now fix and flippers are Trying to buy land. Their marketing for land because right now mortgage rates are hot, selling houses Well, you could sell a house, but you know you go into another house. You're not. You're gonna pay what? Seven percent interest? And that's what I, you know I refind this on my, our Mortgage and we're paying to. When I hear some of these rates these days, it's crazy. There's no way I'm selling my house and then go into a seven or eight percent mortgage. But right now that's what happening. People are not buying homes, so homes are sitting on the market longer now because the rates are too high and if you are buying a house you're getting that seven percent. But who's to say, if you buy some land, you have someone pay you, you can flip the property and there's so many. There's over 6,500 land properties in the US, so you don't even have to worry about everybody can eat. You don't even have to worry about what you just. Your main thing you would have to find out is what does it have access? Is it accessible? Can you install water? Can you install sewage? So this is someone. If they want to do residential, is there a data survey? Is there a perc test? What is a perc test? The perc test is you test the soil to ensure that you can install a sewage or a septic tank on the property. You want to make sure that if you buy seven acres of property, you can use all seven acres. Now that's the tricky thing about land. You can buy seven acres of land. It may be only be able to build on one acre, so you got six acres that you can't even use. You want to make sure you find that if you decide to do something Right, own yourself some land, folks. Land will get you. Land will get you that mailbox money. Land will get you financial freedom. That's running the process of doing so. If you tell us this podcast episode. You want to find out more information? Feel free to contact me at a mirror dot. Estimo at think gen wealth calm. Again a mirror that estimo at think gen wealth calm. And then we can. I can give you some tips, whatever you like to know. You want to get into this business now. I tell you right now it is not easy. It is competition, but if you're not afraid of competition and you're not afraid to put it into work, it could be very lucrative for you. Okay, so thank you for tuning into this podcast episode and until next week, much love, peace. Thank you for listening to the think generation of wealth podcast. If you enjoy this podcast, here's three ways you can help the podcast world One, subscribe to the podcast, where you get your content, to Leave a rating and review the podcast again wherever you get your content so others can find it. And Three, share this content with someone that you think will find this a value. Thank you for listening again to think generation of wealth podcast. Peace and much love.