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Welcome to the West Side Investors Network, WIN, your community of investing knowledge for growth. This is the Real Estate Professionals Investing Podcast. For Real Estate Professionals by Real Estate Professionals. This show is focused on the next step in your career....... investing.
Welcome to the Westside Investors Network. WIN, your community of investing knowledge for growth. This is the real estate professionals investing podcast for real estate professionals by real estate professionals. This show is focused on the next step in your career, investing. Thank you for listening.
Intro speaker:And please, if you like our content, rate us on your podcast provider. Just a quick disclaimer. The views and opinions expressed in this podcast are for educational purposes only and should not be construed as an offer to buy or sell any shares or securities to make or consider any investments or take any other action.
Trent:Welcome back to another episode of the deal deep dive segment on the Westside Investors Network podcast. I'm your host, Trent Werner. In this segment, our featured guests will share their unique stories on a specific deal they've invested in. We will dive deep into finding the deal, financing the deal, writing an offer, and the due diligence. Do us a solid and smash that subscribe button, leave us a rating, and share this episode.
Trent:And now let's dive deep. Welcome back to the Westside Investors Network podcast. I am your host, Trent Werner. On today's deal deep dive episode, we are joined by Dan Haverkost. Dan is a real estate investor that not only acquires land, flips land, he builds new construction, as well as has a portfolio of long term rentals.
Trent:Dan has been able to quit his day job and work for himself early in his twenties through investing in real estate. Now let's welcome Dan Avercost. Alright, Dan. Thanks so much for joining us today. I know we're gonna have a specific deal that was pretty creative on your end.
Trent:But before we dive into that, you're a younger guy. You got into real estate at a fairly young age, and I'd love to just share that story a little bit before we talk about the deal today.
Dan H:Sure. Yeah. Trent, thanks for having me. You know, it really goes back to when I was a teenager. Basically, I managed other people's businesses through high school and college.
Dan H:And so, you know, 16 years old, I was managing a portfolio of rentals and a farm where my boss spent most of the year in Aruba and did that through high school. College had a number of jobs but the last couple years, I was working full time at a landscaping company, you know, running the residential side of that business along with full time school and that was a lot, it was not fun, but you know, I thought to myself, okay, I've been managing people since I was very young, I'm a little bit ahead of the curve as far as the skill set I've developed, so how do I take that and apply it to some sort of business or investing when I'm done with school? So this is when I was about 20 and I started reading different books, listened to podcasts and like everybody else, when I heard or read Rich Dad Poor Dad, it was like the light bulb moment. So I said, real estate it is. And so bought a duplex.
Dan H:I was still in Ohio just as a house hack, and then moved to Colorado because I did not wanna stay in Ohio. Bought another house hack, just a single family home. And it was about that time that I realized, you know, the low and no money down stuff is challenging when it comes to actually investing, buy and hold investing, right? Things go wrong, you need cash. It's a cash intensive venture.
Dan H:And so it was around that time that the idea of starting an active business came up because I was still just working a normal job, you know, middle class income. I met a guy here at the local real estate group here in Colorado Springs, which I actually host now, who had been doing land and development his whole life all over the country. And we became friends. I would drive down an hour south to Pueblo West, Colorado every weekend, help him in his business, just get to know him. Did that consistently, and eventually, I started to participate with him building houses, which is actually very simple.
Dan H:We can talk about that if you want. And over time, organically, I just started to take his business model and make it my own and so that's where Front Range Land came about. So Front Range Land is the active business which feeds the continual acquisition of more rental properties and if you think about quite simply just going direct to seller for land, buying it at 30 to 50¢ on the dollar. Many of the lots we just flip, most for cash, sometimes for terms, and then a few at a time, I'll put new construction homes on.
Trent:I do wanna talk about that because I think that's a interesting active business. I know a lot of people, especially real estate investors, their active business will either be they're a broker or they flip houses to feed the long term rental or long term investment side of things. And I know you you got into the development and the land acquisition early on in your career. Mhmm. For me, someone who's never built a house before, building a new construction house, albeit pretty cut and dry in terms of what needs to get done, there's a monetary fear for a lot of people when it comes to sinking a lot of money into a development.
Trent:It usually takes months and months to get sold or even get ready for sale. Mhmm. Why did you wanna go that route instead of something that was more, I guess, conservative or safe?
Dan H:You know, I think, really, the honest answer is because I met someone who taught me that. You know? You can make a lot of money in any of these niches. It's just knowing your niche. That's the key.
Dan H:And so for the first couple years, the market was very stable 2018, 2019, and up to the pandemic. And so consistently, the model he showed me was all about presale. And so all of the homes we built were presold. We just bought the land outright. The end user and buyer put up a solid earnest money deposit, and so it was very safe.
Dan H:And then in that case, the bank financed the vertical construction a 100%, and so as long as you're picking a reliable, trustworthy contractor, it's actually incredibly simple. Now these last few years, I've been building them on spec spec houses, so they're unsold until I'm actually building them. They're not presold because of the crazy fluctuations in commodity prices that made it harder to sell presolds. But at the end of the day, again, if you have the right contractor, if you're already getting the land at a huge discount, and just like you mentioned, you flip houses or buying rentals, if you're building for far far below market value, that gives you a lot of outs and then just a cushion of safe a margin of safety. And so couple more points on that to any of your audience that knows much about land, I focus on land that's already entitled, it's infill and so this stuff is ready to go, lot is flat, utilities are in place, I don't have to do anything other than, you know, get the plans and submit them and get the permit.
Dan H:And so that's an important caveat because if you are going in entitling land, that alone, I mean, depending on the project can take years and massive headache. So there's a lot that goes into it. And the last point I wanna make is it's always been a simple three bed, two bath, 1,500 square foot home, which that fits, you know, the most people looking for housing can buy that and will buy that. And so that also just staying in that lower bracket entry level housing has really helped too.
Trent:And you said I appreciate you pointing out the entitled portion of that because we've had guests on the show that flip land that is just farm rural land. And so that's what was in my head when you first mentioned that. How many houses or units are you building when you actually do a development like this?
Dan H:Right now, I have two spec houses going. It's been consistently two to three at a time.
Trent:Okay. So it's not big 30 Nope. Home divisions or anything like that. Okay.
Dan H:No. See, that does intimidate me, but I guess at the end of the day, it's really like anything else where if you have the appropriate liquidity, you set your debt up right. I think as I do this longer and longer, I'm realizing the thing that gets people in trouble most of the time is that medium term stuff. A thirty year mortgage, you know, that you assuming you bought the asset at a reasonable price and the numbers make sense, it's hard to go wrong. Very short term land flipping, if I'm buying at 50¢ on the dollar, is the market gonna drop 50% in a month?
Dan H:I don't think so. And so it's this medium term stuff that can get you in trouble, right, the twelve month loans, the bridge loans. And so more and more, I am looking at some bigger projects potentially, but I will be very intentional about high so that the debt so that a permanent loan is already in place if need be.
Trent:That's smart. I like that. I like that a lot. So let's talk about your long term portfolio now. We're gonna get into this deal that we promised to talk about, but you started off with land acquisition development.
Trent:Mhmm. Obviously, you had the duplex in Ohio, and then you bought a house when you moved to Colorado. What other properties are in your portfolio?
Dan H:So I've just continued to buy houses here. So I have 13 tenants among six properties right now. And as soon as I got a couple specs here that are both under contract, thankfully, so planning to go buy some more quarter three and '4 this year. And this is just my opinion, what I'm about to say. For me, I enjoy spending my time just working on scaling my active income.
Dan H:So I am less and less interested in going and buying, you know, distressed properties and dealing with that and more just wanna buy nice real estate in nice areas or potentially just keep some of the builds. So working on getting some clarity there as I head into quarter three and four, but I don't necessarily want to do a whole lot more of what we're about to talk about in the deal deep dive.
Trent:That's fair. So when you are and every market is different naturally. Here, buying a single family home, sometimes even duplexes right now are really hard to pencil. What is your market that you're looking at like? Are you still able to get single family houses to pencil there?
Dan H:No. It's not easy. Sometimes you have to go rent by the room. That's one great strategy. That's worked very well for me or if you're finding like we're gonna talk about a creative structure where we got this on seller financing that makes this one cash flow.
Dan H:So it just comes down to creativity most of the time and or a massive rehab where you get it a big debt discount and ultimately have a buffer there. So it is not easy to get them to pension. I'll tell you that you gotta be creative right now here in Colorado Springs for those who are not familiar with the area. It's very expensive.
Trent:Awesome. So now let's talk creativity here and talk about the deal that we promised to talk about today. You wanna just break down real quick where the property's at, what the specs of it are, and how you came across this deal?
Dan H:Sure. So 1512 Shasta, Colorado Springs, Colorado. It was on Craigslist, believe it or not. So interesting. We can dive into that.
Dan H:Seller financed, 3%, two years interest only into a permanent mortgage, all at 3%. Let's see, purchase price was $2.50, rehab ended up being about 25. It was initially a four bed, two bath, made it a five bed, two bath, and just long term rental. But there's a lot that went into that, a lot of things I did wrong that I can learn from, and we can talk through each and every part of that.
Trent:So it's first thing I wanna talk about is the Craigslist and the seller carry financing piece that you talked about. So the Craigslist was just like any other Craigslist ad someone posted a for sale by owner, I'm assuming?
Dan H:Exactly. Yeah. It's an older gentleman who owned quite a few houses, and he had plenty of cash and more just wanted passive income for when he was gone for his kids.
Trent:Okay. And so that's why he did you said 3% down, two years IO, and then he was gonna carry the note for 30?
Dan H:Yeah. So fifteen year after the two years interest only. That's a fifteen year AM. No down payment, 3% interest. So that really has helped the deal, especially as interest rates have gone up.
Dan H:It makes it far more interesting because this was 2021.
Trent:Yeah. Okay. That's solid. Yeah. And in terms of I know you said you added a bedroom.
Trent:Mhmm. But what other rehab or repairs were needed?
Dan H:Yeah. This was a big one. So the number I gave you is very low. We spent about $25 to rehab this thing. It was everything.
Dan H:So every inch of plumbing all the way to the street was replaced. Foundation issues, the main beam we lowered four inches, and it had uniform settlement throughout the entire foundation. So there was very little cracks. Right? When there's I don't know if you dealt with this at all.
Dan H:When there's uniform settlement, does not visually look that bad, but in the middle of the house, there's a big lump where the main beam is because that hadn't have moved. And then just cosmetically, it was in rough shape. The people were gross. It smelled bad, so it needed a big cosmetic rehab. And so that foundation thing was one of the biggest reasons that we're able to buy that one at a discount and why he wanted to sell or finance it beyond just wanting the income because he was not gonna be able to get a permanent mortgage.
Dan H:So thankfully, my brother knows quite a bit about foundations and a friend of mine owns a foundation company. So, you know, pooling my resources, we're able to get that done very easily and not very expensively. And so all of the money really just went into cosmetic rehab and the plumbing. And then along with that, my contractor got arrested as he was redoing the main sewer line to the street. And so the entire front yard was excavated.
Dan H:Right? And this is a quarter acre lot, very residential suburban. So entire front yard excavated. I get a call from his assistant, and he's like, Dana, I don't know what happened, but he's gone. Jeff's gone.
Dan H:He got arrested. So anyways, we had the excavator on the clock and he's just gone and the whole front yard is excavated so that was quite it was a rough day but learned about the bail system there, got him out, got that done. But, yeah, added the bedroom too. That helped a lot. I know I'm just kind of brain dumping here, but last point I'll make is here in town, there aren't a lot of five bedroom units or houses.
Dan H:And so that's really been an advantage because plenty of people have four kids, and they need five bedrooms. So that has really been useful, especially right now, they're building a crazy amount of multifamily small units that's not gonna affect the five bed.
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Trent:Uptown Syndication is now offering a syndication coaching program for you to take your real estate portfolio to the next level. This is your opportunity to have experienced syndicators, AJ and Chris Shepherd, coach you on your way to controlling your real estate investing future. Our coaching program will provide you with the tools and framework needed to begin syndicating real estate in your target market. Go to uptownsyndication.com today to learn more. So personally, I hear a five bedroom or four bedroom to a five bedroom house and all of the work that you just mentioned and questioning how 25,000 could get all of this done.
Trent:Aside from knowing a good foundation professional, how were you able to keep this at such a reasonable budget?
Dan H:Yeah. This was a guy I used many times. Honestly, he liked me personally. I'd given him a ton of work, and he underbid it. He underbid it badly, and this ended up creating problems.
Dan H:Honestly, we ended up having to get someone else just to finish the last couple items as the tenants moved in, but he didn't even try to change the price. No change orders. He was trying to stick to what he did, and he overworked himself for not enough money because he committed too low and messed up in the budgeting initially. So that's a big part of it to be completely straightforward. And he wanted to do that because I had always treated him very well and he wanted to stick to what he committed to.
Dan H:So obviously, that's not something that other people you know, it's a one off but we got it at $2.50, market value was about $3.40 and then you factor in just the immediate cash flow from the couple years interest only and I mean even if we had spent $40 on it, it still would have been well worth doing.
Trent:So what are your monthly cash flows now that it's rental?
Dan H:2,300 comes in on the rent and then the interest only is $6.25. You know, you factor in the taxes and the insurance, I wanna say 9 ish 100. Taxes are very low here. Property taxes, 9 ish 100. And then just putting aside some for repairs, call it 900 or a thousand a month on the interest only portion.
Dan H:And then in this October, it'll go to the permanent mortgage and it'll cash flow a little bit, but I more think of it as just a nice asset that someone else is paying for for me.
Trent:Mhmm. Absolutely. When is the loans gonna be paid off in what? Another thirteen years or twelve years, something like that now?
Dan H:Well, goes to a normal because it's been interest only. At October, we'll start the fifteen year clock.
Trent:Okay. Okay. That makes sense. Yep. And you already have built in equity.
Trent:So it's a good long term hold that like you said someone else will be paying for.
Dan H:Mhmm.
Trent:So I know you said the gentleman that sold it to you had other properties. Did you buy any of the other ones or just this one?
Dan H:Not yet. I've tried. And, you know, in hindsight, he's bit of a slumlord. And so at this point, I almost don't want to because just seeing how many things had been left in this property unfixed, I don't necessarily unless it's a really good deal with low owner financing wanna buy any more of his properties, but we'll see. I was intending to follow-up with him this fall as we transition.
Dan H:We'll have to anyways and see where he's at, but have not as of now. There's one thing I wanted to just say on the whole owner financing thing. Yeah. So plenty of people reached out to him and the biggest reason that he ultimately sold it to me was because I had been buying properties for years. I showed him some of the houses we were building.
Dan H:Right? There was trust built there and legitimacy by showing him track record experience. Hey. Here here are the houses right here. We know what we're doing.
Dan H:And so that was the biggest reason that he sold it to us. And in fact, he wanted to actually finance the rehab cost too because there was trust. And so for him, because he was very liquid, he just wanted to get a return on as much of his capital as he could. And I said, no. No.
Dan H:No. No. No. Don't need that. But yeah.
Dan H:So it's interesting how you really need to dive into people's motivations. You wouldn't expect someone to want to leverage you more and more and more, right, by financing the whole acquisition plus the rehab. But then if you look at where he was at and his perspective, well, starts to make sense. So just an important note there, you really need to, when you're talking to sellers of any asset, dive into what their motivations are, what their situation is, and not assume that your perspective is also theirs. This is very relevant in the land business too.
Trent:I actually do wanna kinda go off on a little tangent with the seller carry financing and the creative financing side of real estate. Is this the only time you've done seller carry, or have you done it in other deals?
Dan H:The only time I bought on seller carry. I have sold quite a few lots on seller carry.
Trent:And so when it comes to buying on seller carry, and I know this gentleman was offering it, but do you feel confident now that you've done it multiple times that you could go to a seller that maybe wasn't looking for that? And once you figure out their situation and realize that they don't necessarily need the cash right now, do you think you'd be able to negotiate that seller carried with that seller? Absolutely. What would you do?
Dan H:Yeah. Oh, gosh. I have it. This one pains me. So last fall, there there was a 16 unit down in the market where I'm building houses and she fit all the parameters of someone that seller carry would make sense for.
Dan H:I mean, didn't need money. She just wanted it to help her kids and grandkids when she was gone. And I used Shasta as an example explaining it as opposed to using these kind of buzzwords that push people off, know, seller carrier, fine whatever. I just said, there's a house we bought from an older gentleman like yourself and I just went through the whole story And she we almost had a deal on this one. And then she had her whole personal life blow up.
Dan H:Long story there, but didn't get to buy that. Still following up with her. She still says she'll sell it to me when she's ready to sell. But to answer your question simply, yes. Having experience here makes it much easier because I can just reference the owner of Shasta, and I could even use him as a
Trent:referral if need be. I wanted to ask that because I've never personally done any seller carried stuff, but I have some friends that have, and I definitely see the benefit of it and not having that real world experience. It's hard for me to communicate that with a potential seller that I wanna buy their property, but I need you to carry the loan.
Dan H:Yeah. You've gotta have a good rapport. And this is something I struggle with. I tend to be way too to the point. Right?
Dan H:To the point. Too quick. And one of my acquisition managers, I'm actually working he's better than me at sales, and I see his phone conversation lengths, and they're twenty to forty minutes all the time. And the level of comfortability he ends up getting with the sellers because he builds the rapport, it allows you to just be so much more straightforward and say things you never would be able to say otherwise. And so I think that's step number one, and I'm working on getting better at that myself of just really building a solid rapport so you can have a more honest conversation where those initial barriers are gone.
Dan H:And then from there, whenever I wanna bring up something that might be touchy, I use stories. Stories always work the best. So for you, you could hey. I have a friend of mine. He bought this house, and the guy wanted to just be paid on it every month.
Dan H:He wanted to keep getting income without managing it. And so they set it up like this. You know, would that be of interest to you?
Trent:That's not a bad idea.
Dan H:Yeah. It's not
Trent:a bad idea. So going back to Shasta, obviously, you still own it. What do you see? Are you just gonna let it ride, or do you have any plans of refinancing it? What's your plan with this deal?
Dan H:Yeah. Especially with where rates are now. Absolutely planning to keep it. Brent's still at 2,300 a month. It produces it's an older house, so there's been things that have popped up since then for sure, but nothing crazy by any means.
Dan H:So, yeah, just another one in the portfolio that'll let slowly pay off over time.
Trent:I mean, would you ever consider doing a cash out refi when rates get a little bit better?
Dan H:Yeah. Potentially. One thing and this is, again, this is my opinion. I'm not saying this is correct for everyone. I try and think about when I think about the points of leverage, just in life in general, but, you know, business here, sure, I can leverage my properties continually, like, especially the ones I bought in 2018, but I would much rather just figure out how to get go and make more money because you quite literally can expand by orders of magnitude consistently if you focus on one active business under the umbrella of real estate because all the niches I'm aware of are scalable to pretty much any degree you want them to be and so I would rather do that and just leave the properties as they are than leverage.
Dan H:Just my opinion, not necessarily correct.
Trent:I mean, I can't really argue with that. I'm a big believer in leveraging and adding to your portfolio that way early on in your career, but if you don't have to, then why do it?
Dan H:Well, no. And that's the fair point too. I guess it depends on how good the deal is. If you find something that's exceptional, then it's absolutely worth doing. I've seen this, you know, having met dozens, probably hundreds of investors over the years that I've talked to and listened to all the podcasts, I feel like there's one school of thought that focuses on extreme frugality, slowly improving rental properties over the years.
Dan H:And then there's another that just goes out and figures out how to, I mean, scale dramatically in an active business over the course of much shorter period of time, and I would much rather do that. Option number two is harder for sure, and there's a lot more risk and pain in the butt that goes into that, but I would much rather do that personally as opposed to thinking about scraping together pennies and and slowly accruing. I wanna how do I go make eight figures, you
Trent:know? Yeah.
Dan H:Yeah. Certainly not there, but that's just how I think. Just
Trent:No. And I agree with that as well. In terms of your active business, I know you're developing houses, buying land. You did say that you sometimes just flip the land and Yeah. And that the land is all over the country.
Trent:It's not necessarily just in Colorado. So Mhmm. How do you go about finding the land and how do you decide if you wanna just flip it or end up developing it?
Dan H:Yeah. So the vast majority of the parcels just buy and sell. That's it. Very, very simple. When you're dealing with infill dirt, it is so much simpler than a lot of other niches under the umbrella of land because, you know, a lot of these subdivisions, it's the same thing 20,000 times.
Dan H:It's just quarter acre, half acre, there's slight variations. But point being, it's much easier to do the due diligence remotely. Sometimes we need a local realtor to go look at it or just when we're getting started in a new market, kinda walk us through the pitfalls that you could run into there because there certainly are all kinds of issues that can pop up from market to market. But once you know and you have your due diligence checklist, it's very simple. And so as far as finding markets, it's really simple.
Dan H:Wherever there's volume, wherever there's demand, lots are being bought and sold, you can go do this. And, you know, land is just such, at least relative to housing where you're at, such a blue ocean in that. There are almost no big operators doing this at scale. There really aren't. There's some big operators that partner with, you know, Doctor Horton and Lennar and the big builders to take huge ranches and tracks and subdivide them to create the, you know, ready to go lots for the builder, but there's nobody doing it, at least that I'm aware of, at scale in existing subdivisions.
Dan H:So all over Florida, North Carolina, here in Colorado, a lot of different Arizona markets all in the country, there are subdivisions that were done decades ago, didn't get built out, and now that the migration patterns have moved in the country, they are exploding. I mean, you just go to Zillow, land sold in the last thirty days, and scroll around the country and you'll see that. You could do, you know, half an acre or smaller and you'll see where these subdivisions are. And because of that, there's opportunity. There aren't a lot of competent people who really know land, who really know what the end user wants because they've never built a house and many of the sellers are wealthy and apathetic.
Dan H:That's another interesting nuance of land is it's not distressed or very rarely distressed. I shouldn't say not. I spend a lot of time on this because you always wanna know who your avatar is so you can align your marketing accordingly. And so for land, it's most often apathetic and upper middle class to wealthy because if you think about land, people rarely get loans for it unless they're actually building a house right then and there. And so if they bought this for cash a decade ago, two decades ago, they're probably in a decent financial situation.
Dan H:And so they bought it at 5¢ on the dollar. They're just tired of it, they wanna get rid of it, they didn't move there and build like they initially intended. That's our avatar and so they're more looking for convenience and legitimacy. So our mail pieces are focused entirely on legitimacy, especially with so many people calling and texting land sellers saying, hey, can I buy your property? But they don't have money.
Dan H:So right on the postcard, we have a big tired of fake offers, we send proof of funds. And so I know I just went on a bit of a rant there, but it's so true. Land is just inefficient. That's the simplest way to put it. It is not like housing where you're dealing with Blackstone as a competitor in a lot of markets, you know?
Trent:And are you closing cash on these lots typically? Okay. Yep. Interesting. And then you said majority of them are buy and sell.
Trent:Mhmm. Are you listing it with, like, for sale by owner? Are you selling them on terms? Or are you just listing them with the local broker in whatever market they're in?
Dan H:Most of them go to the local realtors because we have found that to be worthwhile. You know, I have an excellent land realtor in Florida. He has hundreds of land listings. That's all he does. And everything South Of The Panhandle, if I have a question, my guys can call him and I mean, his comps are spot on and so it's well worth paying him.
Dan H:And especially when we go into new markets, then he can, you know, oh, well, watch out for this and it it's just there's nuance and different norms everywhere, so that's really important. And then same deal in North Carolina. So most of our stuff we sell with realtors and that's been very helpful. Occasionally, we'll get buyers via just sending letters to the neighbors or even just throwing it up on Craigslist or Facebook. We've sold probably a dozen lots that way this year.
Trent:Interesting. How many lots are you guys doing this year or projecting?
Dan H:I mean, right now, I think of it via net revenue, but we have 15 or 16 for sale right now. We have four that just sold, a couple more under contract to sell, several more under contract to buy. So, I mean, I've gotta think. I really haven't looked at it in terms of how many total land deals, but my guess would be 70 or 80, maybe 60 to 70. Because, again, I just think in terms of net profit.
Trent:Right. That's not slow. Those are good numbers.
Dan H:Yeah. Yeah. It's busy because the Southeast is still on fire. I mean, there are so many people moving down there. They need more housing.
Trent:And aside from your active, your passive, I know it says it on your website, but when you're not hammering the phones, working your butt off, what else are you doing in terms of just, you know, real estate? I know you have your niches or your niches like you said, but is there anything else in real estate that you're interested in or you've dabbled in?
Dan H:You know, with real estate specifically, I've had some people reach out to me for consulting. I'm having fun with that. When helping competent people who will take the advice you give them is really fun, I've been really enjoying that. As far as under the umbrella of real estate, that's about it as of now. I'm wondering if you're alluding to something that I'm forgetting, but No.
Dan H:It the
Trent:it was the consulting aspect because I know you you touched on that, and it seems like you're able to convey strategies and your thoughts pretty clearly.
Dan H:Yeah. I've had fun with that. I know a lot of people that do that at scale. A lot some of my friends do, and they just take anyone. I will interview you more than you interview me.
Dan H:If you have any interest in learning the land business, I promise you that. But, yeah, man, that's really satisfying because you learn more things about your own business. You get more confidence in your own business. It's been great doing that. So, yeah, any interest in learning the land business or just turning more of a hobby into a business, I can certainly help with that.
Trent:Well, those are exciting things, and I'm excited to see where you're headed, Dan. I gotta ask one last question. When it comes to the Shasta deal, the excavator getting arrested in the middle of it, the seller carried financing, the great terms on the loan. Mhmm. What was the biggest takeaway that you had from that when you were doing that deal?
Dan H:Oh, man. Yeah. I think in there's a couple things. So I I'm gonna kinda cheat and give you three or four. You know, a friend of mine said this to me in the midst of it when things were going wrong the day that the guy got arrested.
Dan H:He goes, you're gonna be so happy you did this deal in five years. And so I keep that top of mind in that things that don't especially in the context of investing, things that are very much delayed gratification, you know, really try and keep that long term perspective. I try and think about everything in terms of decades, which again, much easier said than done. So that has really stuck with me because in hindsight, it's an awesome property, great terms, and I am thrilled that I own that. You know?
Dan H:So in the moment when things are going wrong, keep the big picture in mind. And then number two, you tend to get lucky when you're consistent. And I'm alluding to the Craigslist thing there because it's just a matter of checking consistently over the long term. I had another friend here in town. He and his wife would check Craigslist weekly for listings.
Dan H:They got one of the best deals I have ever seen in my life on a killer property in Colorado Springs a couple years ago off of Craigslist. And so big picture, you know, I've had a couple people say, wow. That's so lucky you've got something on Craigslist. No. Checking it consistently for years and years and years, it's really not.
Dan H:It's more inevitable. And so just like meeting the guy who taught me my whole business, is it luckier? Is it just that I would go every week and I would talk to people every week, you know? And so you tend to get lucky when you're consistent.
Trent:I like that. That's a good quote. Thanks. Dan, where can people find more about you? I know your website, I'll let you say it, but we'll also put it in the show notes, but where can other people connect with you?
Dan H:Dan haberkost dot com or reach out on Facebook, Instagram.
Trent:And what's your is it Dan Haberkost on Facebook and Instagram? Alrighty. We'll make sure it's in the show notes. Dan, thanks for your time today and sharing about the Shasta Drive deal. And, again, thank you so much for all your insights on not only land flipping and land acquisition and developing as well as long term investing.
Trent:So thank you again.
Dan H:Thanks, Trent.
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