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Land Flipping with Jack Bosch

Land Flipping with Jack Bosch
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Dave Debeau [00:00:08] Hey, everyone, this Dave Debeau is another episode of the Property Prophets real estate podcast, you probably see. There's a slightly, slightly different background here as I'm recording this for three days into our new digs. We just got the Home Office set up and ready to roll. And today, our special guest, I'm very, very curious about what we're going to be talking about here today. Our special guest all the way from Pheonix, Arizona, via Germany. Jack Bosch, are you doing today, Jack?

Jack Bosch [00:00:41] I'm doing great, Dave. Thanks for having me on.

Dave Debeau [00:00:44] My pleasure. So, Jack, we're going to find out how a German guy ended up cooking in Pheonix, Arizona, this time of the year. But before we jump into all of that, in your background, especially when it comes to real estate investing. Why don't you tell us just briefly, because you've got kind of a different twist on real estate,

Jack Bosch [00:01:04] and it's

Dave Debeau [00:01:05] caught my attention when you said your method is unique because it's real estate without houses, without money and almost without competition. So let's dove right in. What the heck are you doing? And I got a clue about what it is from your T-shirt. So we back up, we can see what you teach for this

Jack Bosch [00:01:24] land profit generator. So I can adjust this a little bit so you can see it better. So, yeah, land flipping. What we do is land flipping. We flip land like other people, flip houses. Just flipping is simpler and easier and in some cases even faster because you can because there's no houses involved. So there's none of the inspections involved. There's none of the time it's gone as termites, none of the repairs, none of the financing, because we specialize on the plots that are worth between like about five thousand two hundred thousand dollars. And we specialize on basically wholesaling or selling. We sell a financing. And in many cases you can pick these properties up or actually our method teaches how to pick these properties up for five to twenty five cents on the dollar, which really means that you can pick these properties up in many cases for a few thousand dollars, even a few hundred dollars. We even have cases where students pick up Oriya, picked up properties for fifty two dollars. Those are not two hundred thousand dollar properties, but they are more like five, seven, five to ten thousand dollar properties. But but let's say you can pick up a fifty thousand dollar property for ten thousand dollars and flip it for 30. You're making the same money or more than the house flipper makes on a wholesale but without any of the hassle. So without any and you can even do double closings and you can use assignment's, you can use all those different things so you can do the same thing that I used to do without all the complexities that come in with house. Now, house flipping is great. It's just more complex.

Dave Debeau [00:02:53] Very, very cool. All right. Now, I got the gist of it. And if you get in for that kind of price, correct me if I'm wrong, but I'm guessing you're probably doing tax deeds. Would that be

Jack Bosch [00:03:05] correct? That is not correct. That is that is I'm sorry or glad to say it's not correct. However, we have started actually with that way when we figured out a method, we actually weren't going after taxes and tax deeds. And we asked herself a question. We attended some tax deductions where properties were coming up in California, for example, where where it takes five to six years before a property goes up for taxes. So after five, six years, it has five or six years of back taxes or fees or penalties of interest. And then they put it up on an auction to advertise the auction. Hordes of people show up a bit. This property up to 80, 90 percent of market value. And we ask yourself the question of why would somebody let these properties go? And we came up with a multitude of answers. But the main thing is that we came up with the realization that they didn't decide to let this property go like the month or the week before the auction. They let this they decided to let this property go six years prior, really when these properties what we did, what we figured out is like, what if we ask yourself the question, what if we could get a hold of these people that apparently no longer want their properties, not once they have six years of back taxes, fees, penalties, interest and all that kind of stuff. But what if we could get a hold of them right away when they just stopped paying property taxes? Or then with the time we realized that only about 15 percent of our deals actually had back taxes, what if we actually figure out what other kind of properties that people let go for taxes? And who are the kind of typical people that let these properties go and contact them before they even start paying property taxes? So as a result, they developed kind of like a customer profile or seller profile that is typically properties within worth of between five and about one thousand dollars, typically their out-of-state owners, not always, but their out-of-state owner. There's a couple of other profile pieces that we have identified. So now what we do is we just sent a direct mail piece to them. In some cases they do owe back taxes and they are part of those that are ready to sign it. I don't want it anymore. The state can have it. But instead of now having to wait six years before the property sells at an auction, they can sell it to us in year one or two. And you three are being delinquent. Sell it to us. And they're happy because in their mind, they're happy to get zero for it. And if we now offering them a few thousand dollars, it's bonus money for them and they're willing to do that. And then we realized that actually the majority of our deals actually doesn't have any back taxes. So we went after those and now we don't care for that. Back taxes are not. We're going after this profile. We have our box of target properties and we have done four thousand plus deals using that method and have created wonderful lifestyle with it.

Dave Debeau [00:05:55] Fantastic. OK, well, that's. Very, very cool, Jack, so thanks for clarifying that erroneous assumption there. And you guys are going to have to bear with me. We got just moved in this new place and coincidentally. We're getting our new hot water tank installed today, so Jack, to market a little bit of background noise here.

Jack Bosch [00:06:13] OK, I got the cleaning ladies here and they're having to vacuum and everything going on, too.

Dave Debeau [00:06:19] OK, so that is super cool, Jack. So to me, it sounds like you're basically applying some of the same strategies that I've seen wholesalers and I have seen flippers apply with single family homes. But you're applying this to vacant land, is that correct? Is it is it usual?

Jack Bosch [00:06:38] Yes. Now, the process is different because, for example, the hot the housing world, everyone wants to talk to sellers and then when they sell their property to sell it to like a real estate agent or something like that or Tobias's, that's similar with us. We built buyers the suit. But in our case, we actually want to talk to the buyers. And because the sellers are a dime a dozen, so there's lots of properties that people want to get rid off for pennies on the dollar. And so we outsource all the front end of it. So he has the ultimate the front fees. We have a mailing house, send out letters, we have a call center taking phone calls. We have a virtual assistant general offer through the valuation process. We generate the offers. I just look over the offers before we make them, but we have them again, a mailing house. Our assistant sends out the sets out the offers so all of that can be completely outsourced. We don't meet in anyone's living room because, I mean, Houseplant doesn't have living rooms. We don't even have to go see the property. So we don't we use Google Earth and Google Maps to go see the properties and the county guides that your information system practices. So you can be everything can be done from home completely virtual to the degree that now we have students in Germany that have heard about us doing this year through the grapevine and they have gotten started and they're doing deals from Germany in the United States without ever talking to the seller without, in many cases, talking to the buyers without just all virtual. So so, yes, it's the same principle that we're doing wholesale. So they're using assignment's using double closings that we do sell, financing, things like that. But the process is just a little different that that in our case, the beginning part, which in the housing world is the most effort part is in our case, the most outsourced parts. And then the selling part, we create listings, beautiful listings, and we put them in social media platforms. That's usually the part we do ourselves. And we talk to the buyers more than to the sellers. But even that allows the buyers want to talk on this thing here. They want to talk about text messaging. They want to chat. They want to get a link. They want to get an email. So we have done tons of deals where we did talk to the seller ever and we didn't talk to the buyer ever. They just by basically by looking at the thing, by going driving in there, by using our website where they can pay by credit card and things like that.

Dave Debeau [00:08:57] Very, very cool. I love it. I love it. I love it. I had a question on the top of my head. So you know what I like about what you said there. I love everything that you've said, but what I really liked was you're really starting with the buyer in mind first. So you're who who are the typical buyers for your properties? Are the developers? Are the builders, are they and homeowners whose I mean, I'm sure it's all of the above, but who's your primary buyer?

Jack Bosch [00:09:27] So it depends on the kind of property that we focus on. So we focus on three kinds of properties. And those three kinds of properties have a total of four kind of type of buyers. So the first kind of property is the infill lot. So it's a lot to think about a road. Thirty five houses, one empty lot. That's a fine. If that's a three or four hundred thousand dollar neighborhood that it's a prime candidate to sell to a builder because builders are builders, they're not architects. They don't know how do you often find deals, but we know to find this. So we take this sixty seventy thousand dollars lot. We put on a contract for in this case we go a little higher and prices, let's say, for twenty five thousand dollars to put this on a contract, we mark it up by twenty five thousand. I'll sell it to the builder for fifty, which is still a bargain for him because it's worth 60 to 70. So you get a discount. We make it twenty five thousand dollar profit, we're happy. And they put a spec home on there and they go sell it and they make their money on whichever way they operate. That's not the last. Number two is where most of our deals are from, which is kind of that that path of growth. It's kind of like the belt around bigger cities, bigger growing cities where the properties are like anywhere from like to, let's say 20, 30 miles or 50 miles outside of of these properties, which is basically close enough for somebody to live there and commute to the city, but still cheap enough for four properties to be affordable. So that attracts just people that want to build their community to the city. It also attracts retirees that can't afford to retire in the city because in the city, a house costs three hundred, four hundred grand or whatever it is. They can't. They can. Pay anymore if they're after they haven't saved enough that they're just in Social Security and so on, but they can buy a 30 thousand dollar acre lot from us 10, 20 miles outside of the city that we put on a contract for three thousand dollars, sell it to them for thirty thousand dollars with, let's say, a five thousand dollar down payment of four hundred dollars a month for ten years. So if you if you if you heard that right, we paid for it three. But we get a five thousand dollar down payment, so we only get as a down payment more than we paid for the property, which means we can do this as a cashless transaction. We can take the down payment and they will use it to pay the seller with it and pay the title company with it and then still have perhaps five hundred dollars over left over. But now we get cash flow without any money. The deal, we get 400000 cash flow for the next 10 years, but the buyer can't pay that thing off if they're in their 50s now they pay this thing off. Then they put a small house or a mobile home on there and now they have a life of dignity that still got that fifteen hundred two thousand dollars and Social Security to spend. And there's still only about 20 minutes away from the doctors, from the movie theaters, from the restaurants and the grocery stores. So that's another buyer. And then the third kind of buyer is more a recreational buyer. A recreational buyer is interested in the third kind of property, which is larger acreage in the more rural areas. So an hour, two hours, three hours away from a big city, usually where there's something attractive like our river or our mountains or cooler temperature like in Arizona, northern Arizona is very attractive because it's 7000 feet elevation pine trees. So in somewhere everyone Thursday evening and Friday afternoon, it'd be lined up up into the mountains because it's 110 degrees Fahrenheit or forty three degrees Celsius here and it's only twenty eight degrees Celsius or seventy five degrees over there. So or 80 degrees over there. So everyone escapes up there that can afford it. So so therefore the Smoky Mountains close to Atlanta or you name it like other kind of fun places for people to go to where they can get some weekend fun and so on and and have their own little piece of paradise, their own little acreage in there, particularly in the current environment that we live right now. Those properties have all of the last two properties have actually skyrocketed demand because people are sick and tired of living in their in their cramped, let's say, apartment in New York City. They want to they want to have a place in upstate New York instead. Right. So if they can work from home already, why not work from their cabins? Why not work from a from a place outside, rather take an RV on there with a wi fi thing and work from there. Right. And have some and have some space around them because it's free and so on. So that has really boosted the demand on our property, which from what was already a great twenty nineteen to what is now an absolutely fantastic two thousand twenty four hour business so, so loud because ranches and mini ranches and things like that, people love that kind of stuff. So. So again, the buyers are the three, four different buyers for those three kinds of different types of problems.

Dave Debeau [00:14:11] Very, very cool. Thanks for for explaining that, Jack. My God. Time flies when we're having fun. Didn't even get very many of the questions that I had for you. But I do appreciate you giving us this big picture overview and I'll have to have you on another episode. But if people want to find out more about this this whole land profit process that you got, I know that you got you've got training, you've got courses, that sort of thing. How can people find out more?

Jack Bosch [00:14:38] But so the number one place you can go is completely free. It's a Facebook group called Land Profit Generator, Real Estate Investor Group. That's where a lot of our students are hanging out, where a lot of deals are being discussed for a lot of people helping each other. And we even have a group of dedicated, what we call concierge is there that actually are taking care of our customers and are helping them and welcoming them. And so so you could go to that profit generator, real estate group, or you can also go to the website, land profit, fun, dotcom, fun, like having fun. You can find out more there. And lastly, I also have a podcast called The Forever Cash. It's called Little Different because it has multiple purposes. It's all about cash flow because we create cash flow from land. Right. It's about cash flow. So it's called Forever Cash Life Real Estate podcast. So you look at for Jack boss, you look for our cash, you'll find my podcast there, too. And we talk a lot about land flipping there to interview students and and talk about the different aspects of it.

Dave Debeau [00:15:39] Jack, thank you very much. There's been a lot of fun. I appreciate your time and your and your input and congratulations on what you've created for yourself. Thank you. Thanks for having me. All right, everybody, take care and we'll see you on the next episode. Bye bye. Well, hey there. Thanks for tuning into the Property Profits podcast. If you like this episode, that's great. Please go ahead and subscribe on iTunes. Give us a good review. That would be awesome. I appreciate that. And if you're looking to attract. Investors and raise capital for your deals, and we invite you to get a complimentary copy of my newest book right back there. There it is, the money partner formula. You get a PDF version at investor attraction book, dot com again, investor attraction book, dot com ticker.

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