Transcript
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Welcome to the Think Generation of Wealth podcast and this is episode number 124.
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I am your host, amir Estimo.
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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.
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And for today's podcast, before we start, if you like this content, please and subscribe to the podcast.
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Also, leave a rating and review of the podcast on Apple, spotify.
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So if you are on Apple, if you click on that purple app that says Apple on there, if you're an iPhone user, just like me, that says um, that says podcast, it's a purple app.
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You will find think generational wealth.
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You can click it on there and at the very bottom, if you go all the way to the very bottom, you can where it says you can leave a review and you can leave your review right there.
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It's a much appreciated because I would like to know what can we do, what can I do to help continue to grow the show, and also what, what topics would you guys would like to hear more of on the podcast?
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So, thank you.
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And then on Spotify, of course, if you go on Spotify, let me click on there.
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You go on Spotify and actually go and find a show and then where it says at the show there's, you should be able to leave a review on there also and then again.
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Again, thank you for taking the time to listen.
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So today's podcast episode is I'm going to dive in to more of why land is a great investment to buy.
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Now, with the land market the way it was I would say probably maybe three years ago it's not like that anymore.
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The land market has gotten very saturated and the reason that has happened is because obviously, with the way the housing market happened, with the rate increase and then also deals have became very harder to come by.
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So a lot of big companies and land flippers I mean not land flip, but house flippers have now pivoted to land.
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So what I can say is back in the days, if you sent maybe my primary marketing was direct mail, maybe my primary marketing was direct mail and if you had sent probably maybe 5,000 letters let's say you did you can probably get maybe two to three deals.
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Now you may need to send 10, maybe 12 to get one deal and even if you do get people to respond, most of the time people are not interested.
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They're really just tire kickers.
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They're not interested in selling their land.
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They will say stuff Well, my land is worth a hundred thousand and it can be like a one acre land.
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Now, certain parts that's true if you are in Texas, maybe California, new York, some of these expensive places, but for the most of the part you a hundred thousand for one acre, that's not.
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You're not paying that much.
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Probably in today's market.
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You're playing maybe somewhere between, depending if it's in a good location, isn't in a subdivision, is, is it vacant and is there any value add done on the property.
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You probably can find some land deals.
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You probably pay one acre for 25, but for the most part you're not going to pay that much.
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So with the oversaturation, that much so with the oversaturation.
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And another thing that's killing the land market is a lot of new newbies come in and they're sending out letters and they're sending blind offers.
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So a lot of these blind offers are coming in and they are overly exaggerated.
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A property land you can probably buy again, maybe two, three thousand dollars.
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These newbies are coming in based off what the gurus are teaching and they're sending these blind offers and either it's very low price where it's fine, is offensive to people.
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And then also, or it's very basically, you're paying one acre, you're paying like like 30, $40,000.
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That's the offer.
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And now when you get that property under contract because someone who's probably looking for the most for their property anyways, and when they get that letter now they're going to say, oh okay, well, this person's willing to pay that.
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Well, here I'm going to go with them.
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But guess what?
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The market is what dictates how much a land costs.
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It's not what the seller thinks they're going to sell it for, because the seller can think they can sell a land for 50, buy the land or sell a land for 50, and the market is probably only willing to pay 15, 20,000.
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So then what happens now?
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These newbies can't close on the deal, then they leave the customer high and dry, and then, guess what?
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People get frustrated because people are coming in over delivering or under delivering and promising they're going to close and they never do so.
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These are some factors that has kind of killed the land market in a nutshell.
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So what am I doing now?
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Well, for me I have gotten away from direct mail.
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Well, obviously mail is expensive because back then again you probably sent some mail with stamps and, depending if you're using a mail house, you probably pay 35, 36 cents a mail.
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Now you are paying.
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Now we're paying somewhere between 75 cents a mail, close to 75 cents a mail, which is really expensive.
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Pivot, as a land investor, because, with the way the market is right now, you can't just keep sending out mail and expecting a deal Not saying you can't get a deal, but it's just gotten really, really expensive and competitive.
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But what my whole premise of this is to emphasize.
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Premise of this is to emphasize, depending how people feel.
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Listen, these people I'm probably going to mention.
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Let's not think of it from a political aspect.
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Think of it as why it's imperative.
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If you are someone that's investing, let's say you're investing in housing, you're investing in land, I mean, you're investing in land stocks or even Bitcoin.
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This is just another avenue that you can invest in.
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And could you find some really cheap land?
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Yeah, you can still probably find some, but you can add this to your portfolio.
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As someone who's a seasoned investor, and if you want to continue growing assets and wealth, this is something you can add to your repertoire.
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Now, some of the people I'm probably going to name, you guys are quite familiar with.
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For the most part, you guys are familiar with Bill Gates.
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Bill Gates bought some land.
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And let's see Bill Gates bought some land.
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He bought two hundred and seventy five thousand acres of land farmland across 19 states.
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So what they say, some of the most famous saying is what the rich do, follow the money, follow the money is what the rich do, follow the money, follow the money.
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So strategy Gates invests in agriculture as a long-term asset and with steady appreciation.
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So he focuses on sustainable farming practices and food security.
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Now, what he's doing as far as if he's trying to do these bio the political side of it I'm not interested in this.
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That's not the point of this.
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The point is to emphasize and say this is why it's important to buy land.
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Why land?
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Why it matters?
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Because farmland generates passive income through leasing to farmers while appreciating over time.
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So Gates Invest suggests confidence in agriculture as a key industry for the future.
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Another person is Ted Turner.
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So Ted Turner, he's the owner of TNT and he used to own I don't know if you guys are wrestling fans he used to own World Championship Wrestling back in the days.
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Now he's Ted Turner.
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He has over 2 million acres across multiple states.
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So it's including Montana, new Mexico and South Dakota.
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His strategy is he uses it for bison ranching conservation efforts, ecotourism.
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He also supports wildlife conservation through his land stewardship.
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So this matters because land ownership provides economic and ecological benefits while preserving natural resources.
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So that's a reason why Ted Turner owns land.
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Ted Turner owns land.
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Another person, mark Zuckerberg, his company, which is Hawaiian Land Investment.
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He has over 1,500 acres of land in Hawaii and that's including sugar plantation in Kauai.
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I'm not sure if I'm saying that correctly, but the strategy here is land conservation for privacy, long term sustainability.
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But he's also faced criticism for purchasing large amounts of land which impact local communities.
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The conspiracy was the reason.
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Probably that was happening was because some of the elites, like Mark Zuckerberg, wanted to buy more land.
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So that's why.
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So, basically, they wanted to kick the people out so they can own land because people were not giving up.
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Well, it matters because Zuckerberg, he sees land as a hedge against economic downturns and a place for long-term sustainable projects.
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Elon Musk well, he's been in the news lately, need not say more.
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Elon Musk, his Texas land for SpaceX and other ventures.
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So Elon Musk was his company.
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The other ventures so Elon Musk was his company.
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His headquarters, tesla was in California.
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It got moved to Texas, austin, texas, recently.
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So he has thousands of acres of Boca Chica, texas, where SpaceX Starbase is located Strategy buying land for technology technology infrastructure, space exploration and development.
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But he also hinted building a Texas utopia near Austin.
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This matters because strategic land purchases allow control over large projects, whether for business, future development or colonizing Mars.
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Next person we have here is Kanye West.
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Now again another controversial figure Political aside, folks just keep the politicalness out of this Landownings.
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He owns over 4,500 acres of land in Wyoming, including Monster Lake Ranch, bighorn Mountain Ranch.
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Strategy initially purchased for creative retreats, farming, personal space.
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Kanye had plans to develop housing projects but he later sold some of the land.
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This matters because he invests in land for privacy, creativity, future and real estate development.
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And I remember I can't remember the name of the album, I think it was Yeet, but that was the name of the album where he went and he basically created that album, going to Wyoming and because he said it helped him with his creative juices for creating the album.
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Another one Oprah Winfrey.
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Hawaii, colorado, california land holdings.
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Land holdings over a thousand acres in Maui this was another person, a controversy, a large estate in Colorado and properties in California.
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Strategy buys land for conservation, luxury real estate, development, personal retreats.
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This matters because wealthy individuals often purchase land and high value areas for appreciation and exclusive lifestyle benefits lifestyle benefits.
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Another person, jeff Bezos, ranch and Space Development Land Land Holdings owns over 1,000 acres, including Corn Ranch in Texas used for Blue Origin space launches.
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Strategy.
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Bezos buys land for commercial and agriculture and space exploration purposes.
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This matters like must.
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Bezos sees land as a foundation for building futuristic industries.
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Now the key takeaway should be here is what industries?
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Now, the key takeaway should be here is what Long-term vision, multiple streams of income, conservation and sustainability, privacy and control and strategic location matters.
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Now, to hit on each point when you buy land, land is not like houses.
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As I stated in recent podcasts previous podcasts land is not buying houses.
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You can buy houses and it could be something you stay in.
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Land has to have, ultimately, a vision of why you're buying this land.
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What I came across with certain people when I and the land who's maybe selling their land is what thing I hear is hey, I bought this land because I had this vision of doing this and then, for whatever reason, life came about, they didn't.
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Basically, they didn't continue with that vision.
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So in that regard, that was one of the reasons they're selling their land properties multiple streams of income.
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Well, if you own that cause, there's different types of land you can own.
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You can own commercial real estate, you can own residential, recreational.
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You can own it for farming, agriculture, which is what Bill Gates is doing he's owning land for agriculture reasons farming.
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So with land, there's various what you can do with land versus, let's say, houses.
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For example, if you buy a house, a residential home, you can buy a couple of residential home, but the primary reason to own it it really is for, yes, you can buy for multiple streams of income, you can buy for passive income.
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But the thing with houses there's not so much you can really do unless you buy commercial real estate or some other type of real estate.
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But with land, you can do agriculture, you can do residential if that's what you want to do.
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You want to buy your land and you want to build a cabin.
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So you want to buy somewhere out in the mountains or something you want to stay.
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So let's say you have a family, you guys go there every year, you go to your home and you guys have a piece of land you can own, that.
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You can build your home, basically like a getaway spot.
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You can do agriculture.
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So if you want, you're some person, you just say you know what I don't like what these food the government are feeding us.
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I want to believe in growing, I want to grow my own land.
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I want to grow my own crops, my own food.
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You can buy land and do your own plantation.
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Let's say you're someone who may be in the cannabis space and you say you know what I want to, because most, some of these states I want to, because most some of these states they legalize cannabis Not all, but some do.
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You maybe you buy land in a state that does legalize cannabis.
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If you're someone, that's until you want to grow, you want to grow your own cannabis.
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Then you can buy pieces of land for that, to ranching.
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Let's say you want to do some farming, you want to do cattle raising, you want to do horse recreational.
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You say, okay, you know what, I want to own this piece of land.
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Let's say I have a four wheeler, I can go to this piece of land.
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Or let's say it's a gun range, it's a spot, or hunting, that would be recreational, but you can be the ideas of land, depending on what you're buying is you can do, is it's a vision If you because I've come across people, whether it's the buyer or the seller, and they say the reason I bought this land was because of that, of course, or the reason I'm buying this land is because of this.
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Now there is certain restrictions depending on the county.
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I would highly suggest you reach out to the county.
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It could be planning and development, maybe or maybe not.
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They can share that information with you.
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But for the most part, you want to contact someone in the county that can tell you want to contact someone in the county that can tell you hey, these are your restrictions, this is what you can do and what you can't do.
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But for the most part, if you, as a buyer, you really want to buy land where you, it's unrestricted, there's not restrictions to it, because if there is restrictions, there's going to be limitation on what you can do with that land, versus if you buy land that doesn't have any restrictions, the buyer pool let's say you're someone that's flipping land the buyer pool opens up for you even more.
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And again, the reason I was using these people as an example it goes to show you how land is best secret.
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You probably never thought about it.
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You're driving, let's say you're driving and you see all this open space.
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And I will not to be off topic, but let me say something real quick.
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I remember when I was younger, about years ago me, my mom and my little brother we went on a cruise and we went to the Bahamas and at the time Michael Jackson was still alive.
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And when we went on this, we went on this cruise and we, we, we, we docked at Freeport Bahamas and we, we, we docked at Freeport Bahamas.
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We then took a tour of the city and one thing I remember driving by and there was a piece of land that the tour guide brought to our attention and he said Michael Jackson actually had his own private land.
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And he said Oprah Winfrey had her own private island, so they had their own private island that they can come to.
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So when they came and vacation in the Bahamas, they will just go to that private island that they have.
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So when it brought me back to what I was talking about earlier, when they said privacy and control, because you have your, if you're someone, you're your celebrity and you don't want people coming in all up in your face.
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You just go somewhere where you can have some privacy, because most of the time in the States they don't have it.
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They don't have it.
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And if you think about this as a person, like I said earlier, if you are open investor, whether you're investing in stocks, real estate, this is just another tool that you can use to grow your wealth and you can own this land.
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You don't even know what can ever happen in the long run.
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Who's to say, a big company comes and they want to build, and if they want to build, you can say you can charge them a fee and they pay you every single year to use that land, or you sell it to them, and sometimes these companies be willing to pay millions of dollars.
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If you know how to basically negotiate and et cetera, they will pay millions of dollars for this property.
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So it just depends on what or if you want to do.
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You say, hey, I keep it within the within our, within the generations, and you don't have to sell this land if you don't want to.
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You can just pass it down from generation to generation and hopefully one of these generations will say you know what, instead of let's see what we can do and you never know, maybe develop a project with the property, et cetera.
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So I just wanted to emphasize today's episode mostly on why investing in land is important.
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It's a low startup, the taxes are cheap relatively for the most part, and you have so much more you can do.
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Especially if you buy property that's vacant land and then it doesn't have any restrictions on there, then you can do.
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Especially if you buy a property that's vacant land and then it doesn't have any restrictions on there, then you can go either way, depending on what's your vision, your long-term vision of this land property.
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So hopefully this episode is of value to you.
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Again, just take the political side of this, of this, uh, take the political side of this out.
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Don't don't look at.
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Well, you know such and such and, bob, yes, I get it.
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That's not the point.
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The point is to emphasize more.
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So I'll see why buying land is important.
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Now, can you find land 300, 400, 500 bucks?
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Now, can you find land 300, 400, 500 bucks?
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Probably not.
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I'm not going to guarantee you that.
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But if you actually look around, just happen to drive around and you see a piece of property, you're curious.
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Jot down the address, go to Google Earth or go to Google Maps.
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Whatever you use, you can find out who owns that property and then call them.
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Now way you can do that is you can go on a website I think it's called true people searchcom, and then you can actually.
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Once you have that person's name, then you can plug it into the true people search and it can give you.
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Now the numbers may not be, the phone number may not be accurate for the most part.
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It may not be the phone number may not be accurate for the most part, but you can call this person and see if they're interested in selling their land.
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You might might be surprised.
00:23:52.970 --> 00:23:59.796
If you have the funds, you might be able to buy a piece of land for three $4,000.
00:23:59.796 --> 00:24:03.615
It just really depends, uh or even cheaper than that.
00:24:03.615 --> 00:24:22.294
And if you want, you can just do see if they're interested in doing what they call seller financing, where you just pay them a small monthly fee a month and until you paid off and you can own the deed so you don't necessarily need to pay all the money up front you can just do a seller financing.
00:24:22.294 --> 00:24:36.512
Just do that for time being until eventually, depending how you and the seller structures that deal, you can own yourself a piece of land down the road, and all it starts takes is just one.
00:24:36.512 --> 00:24:44.512
Okay, so thank you again If you stayed long enough to listen to this podcast episode again.
00:24:44.512 --> 00:24:48.220
Hopefully this is of value to you until next week.
00:24:48.220 --> 00:24:55.605
Peace, let's do something.
00:24:55.605 --> 00:25:06.526
Thank you, bye, let's do it, thank you.