Flipping Land from Across the Country with Pete Reese

Pete Reese has been in the real estate industry for almost two decades and is now sharing his experience with land flipping. Join us as Pete discusses how he buys properties off-market, adds value, and resells them quickly to double his money after commissions and closing costs. He talks about the advantages of partnering with passive investors who put up money to buy the property and split the profits, as well as the potential opportunities to develop rural properties into solar farms or wind farms with incentives and tax benefits. Pete also shares insights on mistakes he has made in the past, such as keeping a team member who didn’t fit in and how consistency is vital for any investor. 

Take advantage of this thought-provoking discussion on land flipping!

[00:01 – 06:10] Opening Segment

• Pete has been in real estate since 2002 and got his broker’s license in 2006
• Land flipping involves buying properties and holding them for a short amount of time before reselling them
• The value is added by finding deals that are not as liquid as other assets, such as single-family homes

[06:11 – 14:11] Generating Passive Income Through Land Flipping

• Buying properties off-market and reselling them at a price slightly below market
• Buying more significant properties and splitting them up into smaller ones to resell individually
• Land flipping business is mainly about active income with no benefits or long-term capital gains
• Passive investors can partner with land flippers to buy properties and split profits
• Gas rights, mineral rights, and timber investments may be involved

[14:12 – 24:40] Building a Team for Success in the Land Business

• Opportunity to buy rural property, hire engineering firm, and resell it for premium.
• Sending out 50,000 letters a month offering to purchase properties
• How Pete built out a team of acquisition managers, lead/due diligence managers, property analysts, list managers, asset managers, transaction managers, & executive assistants
• Pete’s mistakes made in building a team
• Real estate experience helps but is not necessary for specific roles

[24:41 – 29:35] Closing Segment

• Best investment: a 40-acre property sold for 175K after three weeks
• Worst investment: not investing in real estate during the 2007 crash
• The most important lesson learned: consistency

Quotes:

“It’s all about consistency for us. It’s about making sure. The leads are coming in consistently, and I can control that by sending out the mail. I send out 50,000 letters a month, and it’s like clockwork.” – Pete Reese

“I’m just kind of a big believer in the asset class itself because I feel like, especially in the inflationary environment that we’re in, the land is kind of the ultimate asset, and in theory, it should rise in price.” – Pete Reese

Connect with Pete!

Website: www.TurningProfit.com 

Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/

Track your rental property’s finances with Stessa. Go to www.escapingwallstreet.com.

Join our Passive Investor Club to access passive commercial real estate investment opportunities.

LEAVE A REVIEW + help someone who wants to explode their business growth by sharing this episode or clicking here to listen to our previous episodes.