Introduction To The 24-Month Millionaire Land Investor Program

This is episode number 2220. Jill and I are talking about the 24-Month Millionaire Land Investor Program Deconstructed. As Jill said in the last episode, this is about an eight-year program. We haven’t talked about it in a long time. I don’t know why, because I put it all together before this show, so we can talk about it here. It’s a good program. It makes a lot of sense.

This came about a year or two after we launched Land Academy in 2015, and people want to know what to expect. They got the basics down to “When can I,” fill in the blank? You would say, “If you do these things, this will come,” but they needed a specific roadmap. You sat down and printed it out. I know you’ll explain it in great detail here in a few minutes, so I don’t want to take away from that.

It’s great how you deconstructed it in a spreadsheet for everyone to see, “I see how I can have $1 million in 24 months. This is what the deals would look like. This is how hard I have to work.” It’s all spelled out how much mail goes out to get that, and everything. Everybody can take a step back and go, “That’s real. I get it. I believe you.”

Thank you for doing that. That’s how your mind thinks, which is good. I’m very lucky to be with you because I don’t have to worry about that stuff. You just tell me, “Here’s what our numbers are.” Do you know what’s great? I don’t see the numbers like that. I don’t look two years out. I look at what my monthly goals are. Spoken like a true salesperson because I’m hero to zero every month, and everybody knows what that is.

I think it’s because a lot of it’s our age and maybe our influence on each other. When we start something new, you’re very good at taking the lumps and accepting the learning curve. The real awesomeness doesn’t happen until there’s a beginning, a middle, and an end. At the end of the middle, you start to see major results. Whatever you’re trying to accomplish, I don’t care what it is. The end period, let’s call it, is the fun. You’ve got to go through this stuff in the beginning. That’s what the 24-month millionaire challenge explains.

The real awesomeness doesn’t happen until there’s a beginning, a middle, and an end. Share on X

I hate to admit this, so please don’t use this against me. Anyone reading, please don’t bring this up like, “You said.” It’s boring at the end when you hit your goals sometimes. You’re like, “Now, what am I going to do?” I do like the beginning and the middle. I like the front end of it.

You and I need to be challenged.

“It’s exciting. This is great. Is it going to work? I think so.” I know it is because we’re those people. We won’t let it fail. If things don’t work out for us like pizza, it’s because our hearts weren’t in it. We changed our minds, and that’s okay.

There’s a movie called Bandits, and Billy Bob Thornton is there. He’s one of the thieves. It’s a pretty old movie. Not old, old, but he was explaining to everybody else in his group, Bruce Willis and everybody, “Listen, one of the problems with being intelligent is you pretty much know what’s going to happen next.” That’s where we are in our land career.

I hate that. You know what? That goes with being a mom. I watched it all unfold. I knew when all of that stuff was being dragged out of the garage. I knew what kind of ramp was going to be constructed. I knew in about two hours we’d be on our way to the ER. I hate that, but it has to happen.

When I pull up a deal on a Thursday call, we’d do this deal for a member or whatever, and there’s about an eighth of a second moment where the actual property comes up on ParcelFact. Now, I know what’s going to happen for the next ten minutes, but I have to go slow and be positive.

I am sure our seasoned members, because we’re all on camera now. The way we do it, we all mic up and put cameras on if they want to. I am sure the moment that we see the property, they could see the look on our faces of whether we like it or don’t like it immediately, and what’s going to happen, like, “No, it’s not going to happen,” or “Yeah, this is great.”

However, nobody learns anything. We have to explain ourselves like, “Here’s why,” because the whole point is to help people develop that skill for themselves on a faster schedule than the decades that it took us to do it.

I was waiting for you to call us ding-dongs.

Each day on the show, we answer a question from our Land Academy Member Discord Forum, and then we take a deep dive into land-related topics by your request.

Josh wrote a lengthy one. “Hoping someone with experience with SFRs can provide some guidance. Long post, so apologies in advance. I’m trying to get ready for mailing to SFRs, and I have a few questions from reviewing the House Academy 1.0 material. For the SFR Red, Yellow, Green test, the sold-to-listed properties ratio isn’t discussed unless I missed it.”

You did not miss it.

“Is a 2-for-1 ratio still ideal? I’m finding the ratios typically much higher for houses. For those mailing houses, are you aiming for a higher ratio?”

The Red-Yellow-Green Test & Mortgage Considerations For Property Acquisition

Let’s slow down for a second. I’m going to answer these as we go instead of at the end. The Red, Yellow, Green test is a test that I devised, looking at statistics in a zip code market about what has happened in the last month, how many properties got listed, how many properties got sold, how many properties are stale on the market, are there too many properties, and the universe of properties in that ZIP code, too many properties listed for us to be interested?

The whole point of that test is to look into a crystal ball. When you find a property that meets your acquisition criteria in that market, you know what’s going to happen next, and you know how fast it’s going to sell because the market is hot, or you know what type of property sells faster than another type of property.

This is my way of forcing you to choose a market long before you ever send out mail or do a mailer or anything, that if it happens, if you get a good acquisition, there’s a good chance you’re going to cash out of it correctly. All of that stuff with land and houses is the same. I did not devise this truthfully with houses because when I did the whole program, and this is the truth time, it seemed like a logical scenario. You choose places to send mail for houses and land exactly the same way.

Thank you. “Part two, scrubbing out houses with mortgages. I understand how targeting owners without a mortgage makes sense for easier deals with a higher likelihood of owners who can sell for far below retail. My question is regarding the idea that if a 3-to-1 and a 5-to-1 ARM loans from the pandemic boom are just now adjusting, then is it advantageous to target those owners?”

Here’s the problem with selling property or buying property with people who have new mortgages. It’s like trying to buy a used car from somebody who just drove it off the lot. Chances are, they owe more money than the property is worth. With the 3-to-1 and 5-to-1 mortgages that are coming due now, that means 5 years or 3 years earlier, then interest rates are going up. That’s a huge motivation factor for a seller.

“My mortgage is going up. I’m just going to sell this house. I’m going to go back and live in an apartment,” or make a different decision for you and your family. Yes, you can do that, but it only works if the equity piece is where it should be. If you’re going to go buy a house for $300,000 and the owner has $298,000 of debt on it, how do you think that’s going to go? I can tell you how it’s going to go. It’s not going to go well.

They don’t usually don’t have the dough to pay it off.

I’m telling you, what this does is help you keep your mailing costs down. People who have no mortgage, which is 50% of homeowners in the entire country, and it’s been like that since 1950, and it’s like that now, plus or minus 5% or 8%, then they’re choosing to sell the property for life-changing reasons. The same reason a land seller chooses to sell land. They’re experiencing a life event.

It’s not the price. It’s not responding to some market. It’s not a real estate deal for them. They’re just done. They’re going to be less concerned about price and more concerned about how happy they feel that Jill is calling them and how quickly we can get the deal done, and how painless it is. It’s a customer service thing at that point.

True. Alright, part three. What’s TLDR?

I don’t know.

“Does sold-to-new-listing ratio matter for SFRs? Do I still avoid mortgages on SFRs for easier deals, or does the hyper supply and recession market cycle change the approach?”

This is a good question. It’s something that you’re going to have to answer for yourself. My Red, Yellow, Green test for houses is about 25 columns long. If I teach a 25-column-long Red, Yellow, Green test to people who are entering this industry, they’re going to shut down. All those things that you just mentioned matter, and they matter a lot, and so do the 3-and-1 and 5-and-1 ARMs effect. If you have the right data source, it’s ATTOM Data. They know exactly what everybody’s mortgage balance is this month. You can manipulate it that way. Yes, if those things make sense to you, please add them when you’re ready to your Red, Yellow, Green test.

Thank you. This episode’s topic, let’s give Jack a moment to breathe and take a drink of tea if he likes, because I get to sit back. This is The 24-Month Millionaire Land Investor Program Deconstructed, created, written, and explained by Jack.

Deconstructing The 24-Month Millionaire Land Investor Program

All right, here you go. At the end of doing what I explained right now, you should have about $1 million in the bank. For months 1 through 5, 1 through 6, you decide what’s best for you. I want you to immerse yourself in the education process, specifically the Land Academy education process. I want you to set up a peer group, which is easy to do in Land Academy because we’re all on Discord.

Find the people who are better at answering the phone if you’re not too good at it. Find the people who are better at doing the mail if you’re not too good at it. Immerse yourself and develop an amazing dynamic personality within our group. I also want you to go out all over the internet and look at other education products, collect as much free information on podcasts and all that stuff that you can do about flipping land and flipping houses that you possibly can.

I want you to forget, and this is a key, about sending mail out. I want you to learn about it. I want you to not send it out in the mail trial, but do a bunch of dry runs, like I talk about in chapters 3 and 4 in Land Academy 3.0. I see a lot of people come into our group, and they want to do a mailer in two weeks. Some people do. They’ve come through us through other educational sources. They were unhappy about it. They were ready to do a mailer, and they got it out in two weeks and started doing deals. That’s not how I would recommend this. If you have a job in college and you’re making money, you have only so much bandwidth, then you’re going to spend less time learning.

I don’t want that to happen to you. If you have a full-time job, absolutely take 5 or 6 months to learn all this stuff. Ask a ton of questions and get to know other people. On the 6th or 7th month, let’s just call it the 7th, I want you to send out your first mailer, and I want you to digest that you’re going to make some mistakes. I want you to get familiar with the process. Not only just with that first mailer, but also the process of answering the phone when the mail hits, and handling sellers.

When you hit speed bumps or even walls, that community that you established in the first six months, reach out to them and figure it out. Either way, you’re developing future partnerships. In month eight, you’re going to send out a second mailer, and you’re going to make fewer mistakes. Nobody is talking about selling a property yet and/or buying a property yet. You’re sending mailers out and learning how to do that.

In month nine, you’re going to send your third mailer out and you’re going to buy your first property from 1 of those 3 mailers. You’ve got a lot of mail out now. Three months’ worth of mail. No matter how Jill and I try in the Land Academy, we can’t communicate this concept effectively. It takes a bunch of months before you’re going to do your first deal. It takes a lot of mail, a lot of practice, and a lot of screwing stuff up.

I don’t care if you’re a seasoned commercial real estate professional. You’ve probably never sent a mailer out. This is different. You’re going to have to learn. Now, you’re off to the races. You’ve got at least 15,000 units of mail out there, maybe more, because we’re sending at least, this is the rock bottom, 5,000 units of mail out every month.

Now, you’ve got 15,000 units out there. It’s month nine. You’re preparing for month ten. You’re going to send out your fourth mailer. You’re going to buy your second property. In month eleven, you’re going to send out your fifth mailer. You’ve got 25,000 units of mail out there, bare minimum. You’re going to buy your third property and you’re going to sell your first property. Because you did everything right in your education, you’re going to make between $40,000 to $60,000, $70,000. Let’s just say some number in there.

“Jack, where did I get the money to buy the first property? I don’t have any money.” You’re going to deal fund it with the people that you met in the first 1 through 6 months. You’re going to send it to Jill. She’s going to approve it or not. If she doesn’t like it, she’s going to say, “Please, put it back out in the market and get a deal funded.”

Get the deal funded by somebody in our group who’s more aligned to do, let’s say, X, Y, Z properties. Maybe we’re not doing infill lots right now because of the market, but somebody else is. I guarantee it. Getting your deal funded if it’s good is the last thing you should need to worry about. I don’t want you to even think about using your own money, even if you have it on those first few deals.

If the deal is good, funding shouldn’t be your worry. Don’t use your own money—build relationships instead. There are plenty of people with capital who are just looking to fund smart deals. Share on X

I want you to develop relationships with partners. There are a ton of lazy people with tons of money in our group. All they want to do is fund deals and talk on the phone with you. They don’t want to talk to customers, they don’t want to talk to Jill and me, and they don’t want to learn about buying and selling land. Just fund your deals.

Now, you’re off to the races. You’re sending out at least 5,000 units of mail, and you’re selling and buying one property per month. That’s your whole goal. Not to make $1 million, not to get a Ferrari or impress some girl. Just keep your head down, get the mail out, process it because right now, you’re way ahead of the curve. You’ve got 30,000, 40,000, 50,000 units of mail out there. For months 11 through 24, buy one, sell one. At the end of that, and it’s hard for me to describe, you will have between $700,000 and $1 million accumulated. That’s the 24-month millionaire.

I guess that’s one deal a month when you get rolling. That’s once you start going in less than eighteen months of money coming in.

Where everybody gets tripped up is through months 1 through 10.

They all want to do it today, tomorrow. “Can I make money in 90 days? Can I make money in 30 days?” Hold on a moment. You can.

Yes, if you’re extraordinary. If you have Jill’s personality times four, there’s a chance that you can do that.

It’s going to take everything you’ve got.

Why would you do that? Can you take ten college classes in one term? Sure. You’re going to fail half of them.

You’ll have no life.

You’ll learn nothing.

Maybe not sleep.

This is the roadmap to 24 months. What I haven’t talked about in the past, and I’ll tell you right now, is that in month 25, you have about 90,000 mailers in play in the last year and a half.

That’s reasonable. That’s 5,000 a month.

Ninety-five thousand.

That’s very manageable.

You have between $700,000, $800,000, and $1 million in the bank. Now, the cost of doing a mailer is insignificant to you because you’ve proven it to yourself. This is where you want to get yourself mentally because in month 24, 90,000 mailers are in play. You’re going to buy one and sell one if you just buy one property and sell one property a month, which is silly. We do way more than that. Most of the successful people in our group do that. They don’t do it because they set out to do 52 properties a year. They do it because there’s so much mail out there, and they’re reviewing these deals that are coming in, and they’re good.

They might buy four one month, and one the next month.

Now you’re making $1 million a year. That’s when you join Career Path. Career Path is packed full of people. The story I just told you, they did all of that. They’re tired of making $1 million a year. They want to make $10 million. That’s what we talk about in Career Path. It’s usually 15 to 20 of us. That’s the 24-month millionaire. Did I leave anything out?

No, it was perfect. I loved it. Thank you. Trust me, I would’ve brought it up.

That’s what I figured. Join us next time, where Jill and I discuss the top worst states to select for land investment. You are not alone in your real estate ambition. We are Jack and Jill. Information and inspiration to buy undervalued property.