a lot of lbank team members end up with properties for one two 1,200 14 15600 wow so it's lifechanging man it it is because people in major cities to jump into real estate in New York or California right you can't get a single family home and these are handyman specials in our cities right you can't get in in a good neighborhood for less than $500,000 6 700,000 you just can't it's the black real estate dialogue tune in in the reality for a lot of you is that investment properties where you live have become absolutely unaffordable here's a good thing though around the country there are so many cities with affordable investment properties some even under 100,000 so there's a lot of opportunity out there on September 20th I'm starting a 4-week virtual intensive Workshop that'll show you how to buy your first out ofate property so we're going to go over everything from creatively financing that first property how to build your team that you can trust how to find and analiz properties and how to find the right location and so much more you deserve to build wealth for your family you deserve to invest in real estate it's simply a matter of getting the right information so I want to see you there if you're interested go to estat money.com Workshop or click the link in the description of this episode I'll see you there hi everyone welcome to another episode of the black real estate dialogue podcast if you're on YouTube make sure you like make sure you share make sure you subscribe if you're on audio leave us that five star rating and review thank you so much look forward to hearing from you guys very excited for this episode today long time coming today I have Charles Nan out of Brooklyn with me Charles thank you so much hey what's up man welcome how you feeling man I feel good I feel good um long time coming for sure yeah right we've been kind of like following each other yeah low-key supporting each other right and um I got to say that support was under the radar for a while it's not like hey you know Sam I'm supporting you it was like I'm going just go buy some of his t-shirts CU I think it's dope I'm going just watch every episode because I'm learning from it right and I think it's dope and then we started kind ofers commenting on post and stuff you got some interesting conversations going on like the dialogue is serious yeah so then we started to have conversations and was like hey man I'm a fan of your stuff I watch it and I've been listening for a while and then you telling me you you you're you know following along what I'm doing too so yeah long time coming but I appreciate you having me here definitely definitely so Charles you are like the main person I've seen online who's Dove so deeply into the land bank and acquiring properties in that way so for those who don't know what is what is a land bank a land bank that's a good question too because there's so many of them there 250 of them spread out across the United States and as people get information on them sometimes they're getting different information so in short a land bank is a public entity whose sole purpose is to solve the vacant property problem in certain communities so they'll as an example they'll go into a community that has a bunch of vacant problems vacant properties which are deemed problem properties and they will work with those cities to take those properties over for the purpose of putting them on back on the tax roll so that's the benefit to the city is to put them back on the tax roll the benefit to the community is that it starts to solve the problems that stem from having these vacant uh properties right there the crimes tend to happen in vacant properties they're eyes soures they've been deemed unsafe and that just leads to a bunch of other issues in communities so it's kind of like twofold for the land bank and the community itself and the city or the county itself and then what they're able to do which is unique and a lot of people don't know this land banks have the unique power to quiet title so all the tax issues any incumbrances they have the power to kind of quiet title and eliminate those so one of the benefits of buying landbank properties is that individuals actually get the opportunity to own the property outright they own it immediately after buying it in some in some instances and there's no Redemption period they're very different from tax leans and tax deeds because they've gone through that process and haven't been picked up so it kind of works twofold it solves an issue with the city or the county and then it solves an issue for the community and we get the benefit as investors to where we're able to buy properties at really inexpensive rates yeah I love that man I love that so how does a property get to the land bank like what how does it get in that kind of situation well in most in most scenarios it's the properties that don't get purchased through the tax lean or tax deed sale they'll fall into I would say the bucket of opportunity for a land bank and a land bank will work with the city and and here's why they're so special and they're so different because when they're in that tax lean and tax deed space they're not as attractive because you have to do like Quiet Title action you have to wait a Redemption period of sometime up to three years in certain cities right in certain States or counties um tax deeds and leads go by counties right so in certain counties you you can buy a tax lean or a tax deed you have to wait sometimes it's 365 days sometimes it's three years so investors don't necessarily buy those properties because you actually have to sit on it before you can do anything you can kind of like only make necessary improvements in that space with landbank proper properties uh on the live where I was was teaching this morning we had two young ladies called the property wives that are on the land bake team in two weeks they renovated their property um they got it like up to cold and they were waiting for the landbank compliance officers actually release the interest and give it to them so that's where they differ got it that's dope man so with the land bank properties I'm assuming there's typically a lot of physical distress like in those properties yeah lots of distress they they're usually vacant I'm going to say at a minimum 5 years vacant so they've gone through that tax lean that tax deed the tax delinquency state from the owner and the properties have been vacated W so you're not going to find right Land Bank properties in major cities that are thriving right New York City doesn't have a land bank um and the five burrows because we don't have a vacant property issue and certain cities and and will use let's just say like Wilmington Delaware um Shelby County uh where else Detroit Michigan where they have that vacant property issue that's where land banks will go in and say hey we can help clean up this vacant proper property problem that you guys are having got it that makes a lot of sense so the idea is you buy a someone can buy a property through a land bank and I'm assuming as well there's different requirements like you need people need to rehab it yeah and put it up to code like you said and up to standard within a certain time frame yeah so one of the myths I I definitely want to debunk with the land bank right is uh so so we were talking with another real estate investor and her her her initial thought or knee-jerk reaction with the landbank was oh they only give you six months and every landb bank they they have their rules and requirements based on the goals of the community right so every community every County will have goals and it goes based on what they want some land banks will allow anyone to come in buy a property and renovate it some land Banks only want homeowners to come in and renovate and the reason being if you live there you have more of a propensity to take care of your property better than if you were an investor from out of state so when things go wrong and you live there you're going to fix it fairly quickly you're an investor it may take a little long longer so it's typically based on the need and then from a requirement perspective from a Time perspective some based on the how they structure their deal with the city or their agreement some will give you six months to renovate a property some will give 12 some will give 24 some land Banks as as an example mon County Land Bank in Georgia um you buy the property and you own it out right you get the deed right there when you buy the property that's the mon County uh auction they do it the first Tuesday of every month so it varies and a lot of the myth is like I don't want to deal with land Banks I don't want the red tape they're going to take my house back and where I think I carved out a niche was I don't think a government entity would want to sell a property to someone for such a low cost have them renovate part of it and then take it back like that just didn't sound right so when I started to get into land Banks I really took a deep dive into the requirements and I just started to read and read and and just ask more questions and I found that they really want the properties back on the tax role they want the properties to be thriving properties in the community right they want to clean up the communities obviously there's a monetary side right they want to get the tax from it you turn on gas you turn on electric um water so it actually does start to revive and regenerate revenue for the city but it it has so many other benefits to it so I really started to focus there and um just find my Niche there definitely I love it I love it so what most people were probably wondering like how much we talking how much can I get a land bank property for depending where it's at they vary um I would say a common starting point would be $11,000 so their land Banks I'll give you one for example the Detroit landbank it's called building detroit.org um a lot of those properties are in that binder that we see over there with all the Deeds um they they have two ways that you can buy properties one is through an auction an auction style which starts at a thousand and then they have this own it now process where that own it now process they start at a th000 and then you can like put in offers for it based on what you want a lot of landbank team members end up with properties for one two 1,200 14 15,600 wow so it's lifechanging man it it is because people in major cities to jump into real estate in New York or California right you can't get a single family home and these are handyman specials in our cities right you can't get in in a good neighborhood for less than $500,000 6 700,000 you just can't so when people get wind of landbank properties and the stuff that we do on the landbank team it's lifechanging for them it's like an opportunity where they always wanted to get in but they just didn't know how yeah that makes a lot of sense man so I'm sure the rehab varies as well but like on an average say Detroit property that could be $2,000 how much how much rehab could somebody expect what have you seen or experienced in your your own experience so for a full rehab um I've seen a team member spend I'm going to say about $50,000 start to finish and they turn that house beautiful all right that house is actually um I feature it a lot I show pictures of it it's like one of my favorite properties man this guy and that's like almost going all out believe it or not because they're what I like about them is you can get duplexes as well but they're moderately sized they're like 1,000 square ft three bedroomroom Bungalows for the most part then they have what they call in the midwest two family Flats where uh it's funny we call them different things right all over the country but a two family they're moderately sized so they don't cost a whole lot to renovate and then what we also have to consider the cost of Labor in underdeveloped cities is a lot less than what you and I would spend on renovating a kitchen in uh in Brooklyn right or in one of the more uh expensive parts of California it would be that somebody might do a kitchen for 50,000 whereas in some of these cities like Wilmington Delaware Michigan you can probably do a whole you can easily do a whole house for 50,000 yeah um some of these locations also and I and they've been done as low as 20,000 uh which we see for full renovation some of these locations have um warehouses where you can buy used doors windows cabinets like I've seen someone get a whole cabinet set for like $800 installed W cabinets countertop uh everything so some of those are the resources that we share to members on the landbank team definitely definitely that's that's dope so what made you want to get into L bank cuz if I understand if I remember correctly you started investing in New York City and then you decided to venture out after a while yeah so so my story I'm going to say is a little bit different it was it really was focused on my kids right so just investing in New York I was doing well and I gentrification started to get crazy right the house that I live in now $500,000 regular Brownstone right location downtown Brooklyn and then what I started to notice was Neighbors in my area that were just moving in started reporting that's spend in 750 the barklay center comes now they're like 1.2 um downtown Brooklyn starts to just revive itself and and gentrification starts to get heavy the same Brownstones on the area that I live in2 million $2.5 million so here's here's like my thought process right so I have two sons I'm like they're very similar to me right they're going to college athletic scholarships but not Scholars right so I'm starting to think when these guys graduate college and it's time for them to live somewhere right to move out on their own or whatever they're not going to be able to afford a $2 million home or 2.5 like the average American can't necessarily even with a bachelor's degree afford a $2.5 million home who knows what it's going to be like when the youngest graduates right so I just decided to take it upon myself so that they wouldn't have to compete so hard and I decided I'm going to just go cash out on some properties and build them portfolio fos right and I was just figuring I'm just going to go buy the cheapest properties for the purpose of a debt-free door so they could start to have monthly income coming in every month um and just build like one for the the youngest one for the old right and just build so that when they graduate at least they'll have $7,500 a month $9,000 a month coming in so that they don't have to go crazy trying to afford heavy mortgages they could actually keep some of their check when they when they get it and you know New York City is just starting to change to where for the upcoming for the Next Generation there's no way they'll make it if they start it at zero right it's just too competitive all the other cultures everyone else is is passing down these head starts for their kids so that when they graduate college it it's it's a lot more seamless instead of a struggle so that's why I found the lamb B um Land Bank properties at a thousand so now I'm like all right this is great right mission accomplished I'm just going to buy 10 of them each and by the time they graduate they'll each have 10 properties and um boy concept and Theory versus reality hit me right so trying to develop in different cities like from from a distance managing a portfolio here in New York a life right a family everything else and then trying to do that in another in another city which is almost another world right the Midwest and the East and the north they're all different um became a challenge for me so the mission that was the mission where I got started and going through the struggle and learning how to operate in different cities and learning like the laws the culture is extremely different and then I just started to die docent all this stuff I started to document the journey um after every loss right so my why and investing is different than everybody than a lot of peoples right it's like I have to do this for my kids are they going to move to right somewhere where they could afford whatever a th000 $2,000 right and it was like no like we're close really close-knit family so it was like I just couldn't get give up yeah so after losses right like I had break-ins I got contractors stealing materials uh stealing supplies Windows missing um those losses like there was no way to get there was no giving up so I just had to get smarter and smarter where I had to buy camera systems um I found like these solar powered camera systems where I could actually talk and hear what's going on in the property so that was a big help um the credit cards that have loss and Theft Protection of course so after more loss right after paying contractors and more loss I start to figure it out I'm like all right so materials and things don't get stolen we got cameras for contractors showing up contractor accountability is huge anywhere in America it's that accountability Factor either you're going to go stand on top of them and make sure they do the work or you going to trust them and hope that they do it and then you got to drive to your property to make sure that they actually did it and quality and QC their work but the camera systems um changed the game for me I had one at one time eight cameras on on one property wow and it was like me standing over them right because I could put a camera right here and see that they did the bathroom right and see the work that was being done and now I could pay them so after after those losses man it made me such a conscious safe um investor and developer to where for some weird reason I didn't know what was coming I started to document all of this stuff and then um that's where I started man I just got my start in the midwest I got up to 34 doors wow in the midwest um everything from a block of single family properties to a commercial unit of 16 uh 16 doors and the journey continues I love that man about how many um Ling properties do you have now Land Bank in total 34 gotcha properties in in total like The we have our book of Deeds over there 353 Deeds to properties in total all debt free by the way wow and I know you have like a bunch of land is it down in Alabama yep so we have Alabama and Mississippi Alabama Mississippi yeah primarily primarily Alabama and I and I got a lot of that strategy from just fully entrenching myself into real estate developing um surrounding myself with developers surrounding myself with people that are big in the insurance industry surrounding myself with the banks right all the developers you have to go in pricing your deals right and they're so they're all concept at this point but you have to go to the bank to to get it funded you have to in those proposals figure what insurance is going to be so the insurance agents and Brokers know where all the like big time developers are going they know where the Amazon are going they know where the whole foods are going they know where the biggest developers that are going to build skyscrapers are going because they have to come to them to get quotes so I started hearing a lot about um Alabama about Birmingham about Jefferson County besser County and it was like all right through the work that I did in other cities they introduced me to landbank personnel there wow and I was able to get in very early and like buy tons and tons of properties there that's amazing um so the land bank is like properties but also land as well yeah wow they'll sell land and properties it's it's the same process it's it's very similar processes too to where some of it is application some of it is auction however they sell land however they sell their properties they probably have the same most of the time the same process for land got it that makes that makes a lot of sense that makes a lot of sense um what are some different exit strategies that someone can do with with the landbank property so like you rehab it and then you can rent it out but are there other things people can do with proper of course and here's another thing too that people don't really don't know or like they struggle with understanding and then sometimes like you said they get very practical or basic information on the sites and you just have to do some digging so there's pretty much four strategies that we that we go over on the landbank team um one of them is fairly new uh and it just and it's it's funny that you get introduced to these Concepts through practice iCal real life situations where we're starting to figure out different exit strategies so here's a quick strategy where people can make some fast money with the land bank right you buy the property they all have requirements for you to own the property outright you can do the minimum requirements and you could sell that property to a wholesaler and you could like so I've done that strategy where I've done the minimal and sold a property uh let's just say you bought a property for $11,000 let's say 2,000 you put in let's just say to do the minimal requirements $44,000 so you're in $6,000 on a property you could sell that property to a wholesaler anywhere from8 25 $30,000 um I've executed on that strategy however you know so so you knowing me my my goal is different my goal is like to build generational wealth create create wealth and not debt so I don't love that strategy it's the least um exercise strategy on the landbank team yeah what I've noticed for strategy number two so we'll say that strategy one strategy number two what we notice is that some of the land Banks and if you really pay pay close attention to it they have what's called rehabed and ready properties so they are rehabing a subset of properties theirselves and they're selling those properties 15 50,000 $200,000 right um let's just say the for example the Detroit landbank again they have a section called rehabed and ready they're taking the same properties that we're renovating they're renovating them and they're selling them so strategy two would be like a full renovation and sell it on through like a realtor or like an MLs or something uh to that nature who however you want to sell it basically but it's to do like be like a flipper strategy number three we call the generational wealth strategy when I first started a lot of my branding was um create generational wealth not debt right it was like the debt was crossed out and that was just because we at some point have to start thinking about passing down our portfolios so that was the whole concept was like debt free everything if we can um so that strategy is to buy renovate and rent out to buy and hold strategy and it's to build those portfolios but what makes the the portfolio different is that that free so however you got the money and this is one of the things that I really teach and I'm I'm I'm I'm pretty strong with my students about however you got the money to renovate do everything you can with all the rent money that you collect to pay that debt off so sometimes students would use like a debt free like an interest free credit card some of those companies give like 12 months 24 months debt free I mean interest free so I teach that strategy um if you use the bank whatever it is just sacrifice is what I teach right sacrifice take all the money take every bit of rent money and just pay it off you will see the light you will but what I don't want happening is I don't want Banks or any other institution having hooks in your property where they could take it away right because that defeats the whole purpose you lost your time your work your money your energy your time away from home right you you've lost like the dream of passing down this portfolio so strategy number three is like my best strategy it's like the the strategy that I I want everybody to get to I'll take strategy one I'll take strategy two but if you bought a property and you spent 50 and you sold it for 150 or 175 like that means it was worth $175,000 that you just let out of the family name right like I'd rather you just hold on to it rented out and cash flow it that way and then um just by the laws of nature what we talked about this morning in our our mentorship call um seller financing is for us being a bank and us doing seller financing but doing it from a portfolio perspective so for those that want to generate passive income right they have I teach in different levels right so is like beginner stage intermediate and pro right the beginner stage is getting so smart they're learning how to buy two and three properties at one time right so they're learning how to buy two three properties at one time and they're able to sell them seller finance and what that's doing is creating that gener is generating that income every month to where they're now collecting $900 a month for you know for five properties over the course of two three years and it it's it's a strategy where again I don't love it because it it removes the ownership piece however it also removes like the downside of having tenants and the struggle with tenants too right so now we know where to buy properties really inexpensively right eventually it'll run out I don't know because America has a huge uh vacant property issue um it will run out they will run out but I don't know how long it'll take so that strategy it's not my favorite but I get it because some people don't want to be landlords some people don't love tenants trashing your your your house um the phone calls you may get at night right if you got two three properties you might not have a um a management company so now you're Fielding those calls about the the leak in the roof the Clogg toilet that you find that has like a whole W of paper towels in it and so I think what's starting to happen is it's becoming more and more popular this um seller finance because we know where to get the inventory right at a really inexpensive rate for someone that wants to get into real EST estate from a Buy and Hold perspective it still makes sense for them to pay $700 a month seller financing you renovate the property you can rent it for 12 13 14 $1,500 make money and you you're paying the bank back so to speak yeah that makes that makes a lot of sense so for someone who's uh considering the landbank what are like maybe two or three land Banks you tell them just to check out first all right uh that's a tough question because I be biased to you can be biased it's fine right and um when I meet other ones right they they say I'm pushing and promoting but I'll say one of the biggest land Banks is the Detroit landbank um it's called it you can find it buildingdetroit.org is the actual website and that's like the quick hitter that's like the overnight success site you can go there now you can buy a property in like whatever time like four hours you can actually own a property from the Detroit landbank uh one of my other favorites is the Wilmington landbank uh Wilmington Delaware it's it's reasonable drive from New York I think it's like two and a half hours I get I got there before um the Wilmington landbank has a very unique program it's called their Homestead program where you have to agree to live in the property for I think it's three years or five years however you do an application you do a uh you do an application you show proof of funds if you qualify for their program they'll sell you a property for a dollar oh $1 yeah Wilmington uh Delaware's landbank yall heard it here I do a so they have different programs too so there's a $2,000 program we'll sell you a house for $2,000 um you just have to agree to sell it to an individual that's going to live there gotta okay and again if you just remember think back to the community goals they really want owners living in certain communities because owners tend to take care of their properties better than investors or out ofate investors and then um I have to mention this one man this is the last one that I'm going to give you said three the Birmingham landbank Birmingham and and I I do own property there so I'm promoting it but kind of sort of not really because I own so much there so I'm welcoming everybody to come invest there right it's just going to appreciate my kids portfolio but the Birmingham Birmingham landbank Authority man um I had a student there he quit his job off of buying and renovating properties from the Birmingham landbank uh he was a post a postal worker post office worker he bought a property um renovated it I spent like 65 70,000 on Renovations sold it for 185 quit his job the next day wow so it's a process um there a little wait waiting period probably um somewhere between 60 to 90 on getting the results of your application back but um once you do it and here's the thing with the landbank once you renovate a property there right any of the land Banks You're Now what's known as like a trusted investor yeah so they know you they get to see your work they'll highlight you if you do a really good job and then they almost open the books to where they invite you to now do it again and do more so um my client my my my team member Ken I think he's at like five or six right now but just completely quit his job man we experienced some technical difficulties with the video recording of this episode so if you want to hear the rest head over to Apple podcast or Spotify search black real estate dialogue and you'll find it if you want to keep up with Charles follow him on Instagram at Charles J in and also check out his YouTube channel the lbank show see you soon what's up y'all Sam here from the black real estate dialogue podcast thank you so much for watching another episode definitely take a moment to subscribe make sure you like this video also visit our website blackre estate dialogue. comom and follow on Instagram blackre estate dialogue talk to you soon
