Ed Mathews

So the big question is this how are real estate investors who don't have a ton of free time, don't have access to off market deals and didn't start life on third base, how do we grow a real estate business conservatively to support our families, finally leave the corporate rat race and build a legacy? That is the question and this podcast will give you the answers. I'm Ed Mathews and this is Real Estate Underground. This is the Real Estate Underground Podcast Show number 74. Readings and salutations Real Estate Undergrounders. It's Ed Mathews with the Real Estate Underground Podcast. Thank you so much for joining us today. Today is actually, selfishly, a really cool episode because we're meeting with Pete Reis of Real Vest Properties and Pete, welcome to the show. Thank you so much for your time today.

Pete Reese

Well, thanks for having me, Ed. I'm looking forward to this.

Ed Mathews

Yeah, me too. So the reason I'm selfish about this is that we have two sizable plots of land under contract right now, and one we know what we're going to do with. The other one we're kind of thinking about. So can't wait to have this conversation. So thanks again for your time, so for the folks out there. So I've been stalking you for a better part of six months now and finally got you and I mentioned you offline. Having a podcast is one of the cool ways to get people to return your phone calls right. So, as far as your business and the community you're building with your wife Heather, can you tell everybody about your business operation and who you are and how you got here?

Pete Reese

Sure, sure. What I do basically is land flipping And I really, before I got into all this, i really had no clue what that even comprised of. I thought buying and selling land was kind of one of those longer term things where you'd see these big pieces of land on the highway to the middle of nowhere somewhere or on the way to somewhere else, and you'd see them, the same pieces of land for sale year after year and maybe someday those pieces of land got a lot more valuable. But that's what I thought land investing was. But land flipping, which I do, is completely different.

Pete Reese

It's actually a short term hold business model And basically what we're doing is we're buying parcels of land off market. We use direct mail to generate all of our leads and all of our deals And then we take those properties. We may do some minor value add stuff to them, but generally we're putting them on the market right away And our average hold time has been about 60 to 75 days, really Historically, yeah. So we're buying them very cheap. It's raw land and unused raw land, so we're able to get a good acquisition price on these properties that we buy, which allows us to price them aggressively on the resale side, putting them on the market, working with the great local land broker. So then it's basically the best price thing in the market, so it'll sell fast. So that's how this works.

Ed Mathews

So the axiom buy it, you make your profit on when you buy. It is very true with land as well.

Pete Reese

So true So true. Yeah, you make your money.

Ed Mathews

then Excellent, excellent. And so I'm curious, because I live here in the Northeast, in Connecticut, and when we put land on the market, it can sit for, i don't know, three, six, five, three, six, 12 months. So how are you moving property in 60 to 75 days? What's your secret?

Pete Reese

Well, that's because that land is priced too high. Okay, land that is priced, if it's a good property and it's priced aggressively, like under market value, it'll sell right away, at least in most areas where there's actually action and there's actually activity going on. It's all about the price.

Ed Mathews

Yeah, all right, so that's interesting. So when you look at a property and you're identifying the market price, what's your strategy in terms of is there a specific percentage of market that you're looking to deliver the listing, or is there some sort of formula you use to figure that out?

Pete Reese

There's no hard set formula. It really depends on the area, depends on the kind of activity how much inventory is out there in the market. But if it's an active market then we're probably pricing it at. maybe if it's an active market where buyers are actively looking, things are happening, we're probably 90% of market value.

Ed Mathews

That's pretty darn good. Wow, that's still amazing. I'll take 90% all day.

Pete Reese

Yeah, i know. Well, that's the thing It's about moving the money fast And if we're able to, on average, resell these properties in 60s to 75 days, and then you're making. Our goal is always to double our money on these things. Sometimes it doesn't quite work out, but on average our average deal we're probably profiting about 23,000 per deal And yeah, so it keeps the money moving quickly and the returns become pretty exponential after a while.

Ed Mathews

Yeah, because at some point you don't have to finance your acquisitions anymore. You can just do it out of cash, which Yeah, that's what we do.

Pete Reese

It's all cash, and then the inventory value continues to snowball as well, which is really cool.

Ed Mathews

Yeah, yeah, wow, excellent. And so where are you focused? Are you buying? Where are you buying land these days?

Pete Reese

All over the country But I've done a lot on the East Coast. I'm in California but I've done a lot on the East Coast. That's a lot of. We kind of develop little pockets, little areas of states where we have great people on the ground, and then we try to do more and more deals in those particular areas. So I'm continuously trying to find more of those areas, more great people to work with, to try to expand our footprint really.

Ed Mathews

Yeah, i'll buy anywhere. It is a team sport, right, yeah, so how did you Obviously you're accomplished and you've done really well in this business Why don't you pick real estate as the place to kind of live out your entrepreneurial dreams?

Pete Reese

Yeah, well, that's a good question.

Pete Reese

You know, i've always had kind of that interest in real estate from when I was little, because when we grew up my parents didn't own a home And I saw all my friends they had, we live in an apartment complex And you know it was a great upbringing and everything was great as far as that goes.

Pete Reese

But I always was, you know, trying to talk my parents into buying a home and real estate and you know everything, and they just weren't receptive to it at the time And you know they had, they had other priorities and other things going on And I understand that. But it was always something kind of inside of me I was like when I grew up, i'm going to buy lots and lots of real estate, lots of homes and everything. And that was kind of my first goal of just to buy a home myself. And since I get married, we bought our first home just FHA loan, three and a half percent down, perfect, held it for a couple of years and did pretty well on it. I think we made $50,000, which at the time was a lot of money.

Ed Mathews

It's a lot of money, especially for a new couple.

Pete Reese

And so then we kept on. Then we put that money into a bigger house and that one needed work as well And we fixed that one up And then we got into flipping homes. That was early 2000s, up until the point where the market crashed out here in about 2007-ish, but before that I got my broker's license as well And then when the market crashed I was like, well, what's selling right now in the foreclosure property? So I started focusing on being a listing broker for the banks. That was my focus for a while. Then worked with a bunch of investors that I met, large investment companies that I met through that, just finding them deals, got out of that for a while and then out of real estate altogether for a while, developing a business with my wife about blogging and blogger training. It was kind of like an online education business. We were doing a lot of traveling great fun business.

Pete Reese

But I had this itch to get back into real estate and started doing a lot of research about different models and land flipping to me. I read some stuff about land flipping and it kind of resonated with me because the dollar values weren't that high but the returns were great. You could buy. I saw people talking about buying a property for $10,000 and selling it for $30,000. And I just thought that was pretty cool to do a lot of those type of deals. I've always kind of prided myself in the fact that I can identify value and find the deal, so that was kind of what got me hooked. And then I just started kind of learning everything I could about and went all in on it.

Pete Reese

First year in 2021, march of 2021 is when we did our first land flip and then ended up that year at about $1.2 million in some change in revenue and about 50% of that was gross profit margin. So that year we were, on average, about able to double our money on each deal. And then, yeah, 2022 did about 3.5 million in revenue and we were a little shy of the 50% mark 40 something percent and gross profit, which is still pretty good. And then 2023 looking to do 10 million plus.

Ed Mathews

Wow, congratulations.

Pete Reese

Yeah, thanks.

Ed Mathews

Outstanding, and I mean the fact that you're turning that with cash as well. that's a heck of a return. you're driving All right, so let's get into it. So when we look at like my company, when we're looking to buy off market, we do a lot of direct mail, we do digital marketing, text messaging, whatever else cold calling. What are some of the strategies that you use to generate your deal flow?

Land Flipping

Pete Reese

Everything at this point is generated with direct mail. Okay, and I send a lot of direct mail. I've been for the majority of last year I was sending out 50,000 letters a month. I've just made the decision and took the steps to step that up to 100,000 a month now. Whoa, okay, and then maybe I'll double it again later this year, i don't know. But so we're doing a lot of outreach and obviously that brings a lot of deal flow in as well.

Pete Reese

So, and what we're doing specifically with the direct mail is it's not just like hey, i want to buy your land. It's a very specific thing. It's a two page letter. First page is kind of explaining who we are, why we're contacting them, what we can do for them. Second page is a purchase agreement, just a one page purchase agreement. It's got the details about their property the parcel number, the acreage, the actual price that we're offering for the property and a spot for them to sign. So and, believe it or not, we get a lot of people that sign those and mail them back, or sign them an email in the back, or call us and say, hey, i'm interested, how do we move forward with this? Or they call us and they say, well, i want to sell, but that price doesn't work for me. And then we see what we can do.

Ed Mathews

So so the real estate, the marketing guy in me is thinking two things right. One is love the fact that you've pressed the gas pedal right through the floorboards, right, that's awesome. That's me, yeah, you know, but right. But the thing is, is that when you look at direct mail, responses can be, i don't know, let's say, one to two percent, right? So you're sending out 100,000 letters a month offers really right. And you are getting back, i assume, somewhere in the 500 on a tough month, 2,500 on a really good month, right? Does that sound about right?

Pete Reese

Well, you know what the crazy thing is I don't even track that response rate. I know I get asked that a lot, but to me that's not really even important because there's so many very in what the mail that we send up. There's so many variables that come into that. First of all, the offer price. You know, like the percentage of retail value. If we're if we're really, if we submit a really low offer, then our response rate is going to be terrible. If we submit too high of a value, then our response rate is going to be great. Some areas are more responsive than others for one reason or another, and you know so there's a lot of factors that go into it. But what I track, what's most important to me, is the cost per deal, the cost per deal that we buy, and that average is about 3,000, 3,000 bucks in mail costs for every deal that we do.

Ed Mathews

Okay, and so cash out 3000 to what's your average deal size, if you don't mind me asking.

Pete Reese

Our average profit per deal right now. This year has been 23,000 last year is about 22,000. That's outstanding. Yeah, so it's a great return on investment.

Ed Mathews

So you're gonna give me 3000. I'm gonna hand back 23,000.

Pete Reese

How many of those get? you to do a year, i would do as many as I possibly do, yeah, as many as I could do. And the thing is that what doesn't show up in those numbers is the inventory value, the value of our inventory that hasn't sold yet. But we've got obviously a lot of stuff under contract to be resold or on the market to sell. It's just unrealized kind of value yet. So when we get into this, the more that starts to snowball as well, which is kind of cool.

Pete Reese

And a portfolio that I own free and clear.

Ed Mathews

So So you have a land portfolio yourself that you keep.

Pete Reese

Yeah, yeah, like the inventory that we have right now that's either under contract to be sold or just on the market to be sold like listed with the broker is about 2.5 million right now in value.

Ed Mathews

I understand now, yeah, So it's free, and clear, because it's your cash, i got you. Right, exactly, Yeah it's a beautiful thing, and so I'm just curious about the logistics of making the offers right. You're sending out 100,000 mailers How many people work for you that are figuring out and it's a loaded question that are figuring out what the value is of each one of those parcels so that you can accurately make an offer.

Pete Reese

Yeah, see, that would be nearly. See, there's different strategies in this business. Sure, i'm more of a. My mindset is that to get the mail out. So for me it's not really viable to go through 100,000 properties and price them individually each month. It just doesn't. It's just not possible. I mean, you'd have to do so much research and everything like that. So what we do is we do our offer prices based off of averages for a particular county. So say, we're mailing 10 acre plus in a certain county and we'll look at what the sale, the sold comps, are at and we'll come up with an average price per acre And then we'll price. We'll back off a percentage that we need to where we need to be in order to make sense for us And then we'll price accordingly. Just go down the spreadsheet with a formula and put it in that way, and then we send the spreadsheet or we spend their list to the mailing house. They do the whole mail merge and send them out for us.

Ed Mathews

Gotcha. Yeah, that makes total sense. Okay, Cause I figured having poor at Matthew's toiling over a spreadsheet for a hundred thousand.

Pete Reese

Yeah, i think some investors do that, but maybe not themselves or maybe they have assistance do that. But that would be really tough. The thing is when someone responds or when they send back a sign off or something like that. It's at that point where we really look. We look into the property and figure out exactly what it's worth. So sometimes, unfortunately, we're too high on our offer prices. Sometimes we're right on, sometimes we're too low and the person wants you know, is wants to sell, but they want to negotiate. And we look at it and we say, okay, well, can we come up to that? Well, it makes sense for us. And then you know, so we look at it on a case by case basis.

Ed Mathews

So then, i imagine, just thinking process wise, the owner of the property signs the contract first, right?

Pete Reese

And then you Exactly Yeah, yeah, we don't sign it before we send it out.

Ed Mathews

Yeah, Smart, That way it feels you don't want to right.

Pete Reese

Yeah, yeah. Well, you know, and it's a real basic purchase agreement. I mean we have, we have our due diligence period and everything like that. So you know, once we get even something signed, i mean there's, you know, we have outs if we find something that we don't like about the property.

Ed Mathews

Okay, Yeah, that's fine, and so, and that's where feet on the ground become really important, right? Yeah, i don't imagine you're hopping on a plane for every one of these deals.

Pete Reese

No, no, i've seen very few of them. I saw a few. We went on a road trip 2021 and we did actually drive by some of the properties and I saw. You know we'd walk the properties and stuff, but that was a rarity, it just happened to be kind of a coincidence that we were in that area.

Ed Mathews

Yeah, that's what I know I don't.

Pete Reese

I never see any of these myself.

Ed Mathews

Right, right. So so you know, obviously you're a self-starter and you've done a lot of different things within this, within this space. You know what is it about? land that is, it draws you in. Like you know, i look at flipping houses as like my vice, right? You know, i don't drink, i don't do drugs. Flipping is the, you know the, the my cocaine for, so to speak.

Pete Reese

Yeah.

Ed Mathews

And and so I you know, and we haven't done it for a while and I'm actually missing it, but you know, i'm curious what? what land? you know why? land as opposed to houses? or, you know, investing in other asset classes.

Pete Reese

Well, i do invest in other asset classes more for a long-term perspective and for tax reasons, yeah. But yeah, so I I just like land because it's kind of about the deal. It's kind of fast, you know. You can realize a gain really quickly. Yep, there's real. You know, when we do value add stuff to these properties, it's not super intense like it is on a home flip. I've been through that, that world, and it is fun seeing a transformation on the property. I really do like that aspect of it, yeah. But I don't like the other aspect of how long it takes and you know managing all the moving pieces, contractors and you know all these different things that go on with that. So I love the fact that we're able to turn the land quickly and it's about the deal. I love deals. You know buying and selling. That's kind of fun to me, right, and it just seemed to really resonate with me. And you know, home flips or renovations and things like that are cool too.

Ed Mathews

It's just, I don't know, yeah, stressful.

Pete Reese

More stress, yeah, more.

Ed Mathews

You are. You know I'm sitting here looking at you over Zoom and you know you are very zen, very calm. You know there's no beads of sweat on your forehead or anything. You just, you know, just kind of doing the deals.

Pete Reese

I'm low stress, i'm a happy guy, you know.

Ed Mathews

Yeah, that's a good thing.

Pete Reese

I try to, yeah, keep things in perspective.

Ed Mathews

Absolutely So. let me ask you, in terms of entrepreneurship, you know a lot of the folks that I run into that listen to this show. it's, you know. it's either folks that have been doing it for a while and, you know, enjoy some of the stories that we talk with guests like you about, and then there are others I affectionately call them the dreamers or like me, and I wish I had time to get into real estate, and so I'm curious in your experience, i'm sure you've come across all different personality types. You know what tends to be the difference between the person who's out there doing it and the person who's, you know, just sitting on the sidelines thinking about it.

Pete Reese

Well, i think sometimes it's just a matter of coming to that realization that they're going to need to take some action if they want their life to change. Yeah, i think a lot of people get stuck in that mode like, oh, i could do this and everything, but they're waiting for everything to be perfect and just line up. And it never is perfect and it never completely lines up. At some point you just got to make the decision like, hey, i'm going to buy this property, this $10,000 property or whatever the case may be, and I'm just going to go for it and see what happens. And if I lose it all, then I lose it all and it'll suck, but at least I took the action and made something happen. But you got to take that first leap. And when you take that first leap, then the next leap is a little easier And then the next is easier. But you got to make that decision and just do it And sometimes put the blinders on and just say I'm doing it, yep, and I'll figure it out. I totally agree.

Ed Mathews

And we'll get into it, and the object is to keep the water just below your nose, right, yeah, that's right. And then, slowly but surely, you work your way through it. So I'm curious. Obviously you've been doing this for a while, and folks who join your community look to learn from you and the other members of your community. Can you tell me a little bit about that group that you're building and how to get involved there?

Pete Reese

Sure, and this is something I'm super excited about We just launched it in the beginning in January and we're talking here in March, so it's kind of in its infancy, but already we've got just a vibrant community that's happening and it's all about land flipping. Some people in there are brand new, lots of people are in there are brand new. But then we've got a lot of people that are experienced investors netting over a million dollars a year in there just doing land flipping. So we've got the whole gamut And in there I'm going to be releasing a free training program. I don't have any courses or programs or anything like that to sell, but I've been working hard. I'm putting together this free training program, which kind of it's.

Pete Reese

The whole business model shows you exactly what I do, from A to Z and how you can duplicate and do it yourself. But kind of the reason for doing that is I know that it'll bring more back to me in return than I'm putting out. I know that there'll be opportunities to partner with deals on people and all these types of things will come from it. So that's kind of the reason that I'm doing it. And, yeah, so I'm just super excited about it And every day. There's just lots of different discussions, and we just started doing weekly Zoom calls as well, where break down deals for people like live on the screen. I'll show you how I evaluate deals and what I look for when I'm trying to determine if I want to buy something or not.

Ed Mathews

Wow, that's incredibly generous. I firmly believe that service is the highest form of contribution.

Ed Mathews

Karma's real, you do get it back. Why we do this podcast is we don't make money on this. There's no advertisers, and the three people that are listening not named my mom or dad are the way that. I was very fortunate in my life where I've had half a dozen or so people that took a liking to me or felt sorry for me or something and threw an arm around me and said okay, kid, here's how you really need. This is what you're doing and how you're screwing it up And this is how you really should be doing it. And how do you can't pay a mentor like that back. So the way you pay that human being back is by doing exactly what you're doing, which is you serve the community. This is why this podcast exists and it's really generous, man, so congratulations on that, yeah thanks, i'm looking forward to joining it.

Pete Reese

Yeah, well, it's just one of those things that's really cool And already just lots of cool connections and things have come of it, and it's just at the very beginning, so I just can't wait to see where it goes.

Ed Mathews

Yeah, it sounds like a heck of a heck of a ride, enjoy.

Pete Reese

Yeah, it really is.

Ed Mathews

So getting into the mentor's piece, i'm curious about some of the people that guided you along the way. I mean, obviously you've done a lot of things really well. Nobody does everything well without help, so I'm curious what was some of the best advice you ever got And, frankly, who gave it to you?

Leadership, Learning, and Land Flipping

Pete Reese

Yeah, i haven't actually worked with a mentor, say like one-on-one people, to help me out, but I do a lot of research and a lot of, you know, reading and listening to audiobooks and watching videos and things like that. So a lot of those people that have put content out there and things like that have been those kind of mentors for me. Sure They know it or not Some of the mentors you hire.

Ed Mathews

That's okay.

Pete Reese

Yeah, yeah With the land flipping stuff, i did buy a training program from another group and I did learn a lot from that and that kind of got things kicked off and I learned how to evaluate land from them And then I took what I learned there and kind of put my own little spin on it, i guess.

Ed Mathews

Yeah, and clearly that's working. So you know, i tell everybody, you know, i firmly believe that leaders are readers, right, and you know, these days, reading isn't necessarily a book, right? You know, an actual, tactile, real, 200-page book, it can be an audiobook, it can be a podcast, it can be a YouTube video, you know whatever right. And so I'm curious you know who are you paying attention to these days and you know what are some of the ways that you consume that knowledge.

Pete Reese

Yeah, mostly audiobooks. When I'm actually consuming that type of information, i do listen to or do watch a lot of videos and podcasts and things like that on YouTube as well, and I kind of get going down different rabbit holes on things that interest me. Like, lately I've been very interested in the marketing and business side of things. I've got a marketing degree myself, but what I learned in school is not anything to do with the real world today, or even back then really, when I think about it But but yeah, it's craziness. But so I just think that there's a lot of specialized knowledge out there and you just have to kind of look for whatever you're interested in and you'll go down all these different paths and before too long you'll be kind of a more of a well-rounded person.

Ed Mathews

But, yeah, i couldn't agree more. So you know, i'm curious, you know, in terms of YouTube and you know some of the audiobooks, you know who specifically are you paying attention to?

Pete Reese

Like yeah, recently I've been watching all these videos by again. You may have heard of Alex Hermosi. He's got some really good content out there. So I went down that rabbit hole you know really deep on some of the business stuff and kind of the bigger picture business thoughts. you know some things that I never really thought about before, so help me look at things through a different lens, i guess.

Ed Mathews

Yeah, i mean what he's done to build his I think the book I just finished of his $100 million in offers.

Pete Reese

Yeah, so good. Yeah, the book is really good Yeah.

Ed Mathews

I haven't read his other one, but that one is just brilliant. And you know, the community he's building is impressive as well. Yeah, So you know, from a digital marketing perspective, I paid close attention to the guy that runs ClickFunnels, Russell Bronson.

Pete Reese

Oh yeah, yeah, He's very smart.

Ed Mathews

Really smart. And another guy who will tell you that he didn't do very well in school and, you know, failed his marketing college, right, it turns out he's a pretty good at it, funny, huh. Well, yeah, again, it's theory versus practice, right.

Pete Reese

That's right.

Ed Mathews

Yeah, And practice is what makes money, not the theory and the books. Yeah, So all right. So I'm curious, you know, in terms of, you know, when you're spending time away from the land acquisition and flipping business, you know, what else do you like to do?

Pete Reese

Well, lately there hasn't been much time away from the business, but I love to travel. So, yeah, we've, we've. We went through a period for about five years when I was working on the blogger training business with my wife and everything associated with that. She's also a travel blogger. So we, for a period of about five years straight, we were traveling about 150 days out of the year with a family of five, like all of us, like all over the world. So that was a great time And we loved all our travels.

Pete Reese

And since COVID hit, we haven't really been traveling as much or anything. But we want to get back into it somewhat. Just, you know, maybe shorter trips at a time, maybe a week here and there. So I love traveling when we can fit in this schedule, but I'm trying to get some things situated before we do some more of that. You know I love working out. We, you know, my wife and I we always go for a walk every day. That's kind of our, our break, you know. Three to five miles, normally closer to five, and it's kind of our business meeting as well. So I like doing that. That's kind of fun stuff. And obviously spending time with my family. And I've got three girls 22, 20 and 13.

Ed Mathews

Yeah, right there with you. I have a 20 year old and a 15 year old, So okay, cool.

Pete Reese

Yeah, i'll see you in the next area, fun times. Yeah, yeah, between all that, there isn't much time for anything else. No hobbies or anything aside from that.

Ed Mathews

Yeah, somebody asked me the person was they had chosen not to have children and he's like what do you do for hobbies? I'm like what are you talking about? I have kids, that's it. It's swim meets, it's dancing, it's softball, it's soccer, it's art shows, it's parent-teacher conferences. That's my life, right.

Pete Reese

There's no time for anything else. So really, i mean the schedule's packed.

Ed Mathews

Yeah, and it's fun. So why would you? Yeah, right, that's right. So, pete, hey, thank you so much for your time today. You know if people want to get in touch with you or learn more about your community, you know what's the best way to get in touch.

Pete Reese

Best place is to go to turningprofitcom. Now, turning Profit is the name of our podcast that we've got as well. It's all about real estate investing with the real heavy focus on land flipping, because that's what we do And that's with my co-host, who is my wife, heather, so we have a really fun time with that. We just launched that in January as well, so we're really looking forward to it.

Pete Reese

Yeah, thank you. Yeah, we're loving it. But on turningprofitcom I also put it do a monthly income report on there, which is a real deep dive into our land flipping business every single month. Now that's the revenue we took in, the profit we made that month, every single deal we did that month, like what we bought it for, what we sold it for profit on that deal, how many days we held it for notes about that individual deal. So we go really deep into all those different aspects of the business And the idea behind it is to give you some transparency into what these land flipping deals are like, what it's actually like running a land flipping business and maybe what's possible.

Pete Reese

Because I know I'm kind of aggressive and I like to scale things up quickly. So I think other people can look at that, maybe take a little inspiration and think, well, i could do that too. This guy's not that smart, i'm smarter than him, so those types of things. But I'm serious. I think that there's a lot of people that will look at that and think, well, i can do that too, why not? So it's not rocket science, it's not.

Ed Mathews

No, it's math.

Pete Reese

Yep, that's right, she's math.

Pete Reese

I mean the thing is you gotta learn how to evaluate properties And once you really understand what's a good property, what's a bad property and what it's worth, it's a guy's limit, even if you don't have the cash to buy these deals. It's kind of an interesting community because the money's there Like you can, it's land, so there isn't really a developed hard money type thing like in the home flipping market. But you can partner on deals. If you have a deal, there's plenty of people that will partner with you on that And basically what that means is they will put up all the money and then you take care of the marketing and everything And then when it sells you split the profits 50-50. So to win-win.

Ed Mathews

Yeah, that's a good deal. That's like 50% of a deal any day.

Pete Reese

Yeah, seriously.

Ed Mathews

Right. So, pete, thank you so much for your time today. It was really good to finally catch up and meet you live, and as soon as we wrap up this meeting, i'm gonna be on your website Turning Profit to join your community Cause I'm absolutely fascinated by this part of the business And, like I said, i've got two parcels that are under contract and one of them I'm not really sure what to do with, so maybe this is something that I can.

Pete Reese

Yeah, yeah, time to come up with that exit plan, right.

Ed Mathews

Yeah, there you go. So, Pete Rees. Thank you so much and continued good fortune. My friend, And we'll look forward to keeping tabs on you on your website.

Pete Reese

Thank you so much, Ed. I really appreciate it today.

Ed Mathews

My pleasure, Thanks. This has been the Real Estate Underground podcast, a Clark Street Capital presentation. Thanks for joining us. If you're enjoying the show, please remember to subscribe and share it with your friends. If you'd like to learn more about Clark Street Capital and our upcoming projects, please join our investor club at clarkstcom. Slash join Until next time. Happy investing.