Shownotes
Discover the hidden goldmine of land banking with Brad Warren. Uncover the secrets of strategic land investments, learn how patience transforms into massive returns, and dive into real-world success stories that will inspire you. Get ready for Brad's game-changing insights on building generational wealth through land banking. Tune in now and kickstart your journey to financial freedom!
Key takeaways to listen for
- [05:05] Brad’s transition from a speaking career to land banking and how his investments have grown over time
- [10:04] Real-world examples of successful land investments
- [13:22] How strategic land placement in growth areas may lead to substantial appreciation
- [17:31] Various exit strategies and investing opportunities to turn land into a cash-flowing asset
- [36:18] A proposition to possibly ensure low property taxes, making the long-term holding of land more manageable
Resources mentioned in this episode
About Brad Warren
Brad helps patient investors purchase risk-mitigated, pre-developed land in high-growth areas of Southern California. He then assists them in selling their parcels to developers who consolidate that land into larger parcels for housing, shopping centers, mixed-use projects, solar farms, and more. Multiple returns on investment are widespread. The majority of his investors use dormant or under-performing 401(k)s or IRAs to fund their investments, but they can also use cash, do a 1031 exchange, or utilize several other options.
Connect with Brad
- Website: Bradley K. Warren & Associates, Inc.
- Email: brad@bradwarren.com
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Transcripts
You cannot invest with us until you are educated. We will not take your money until you understand that this is a longer term buy and hold, set it and forget it investment with no cash flow.
And you're going to have to wait a while to get your return.
Neil Henderson:Welcome to truly passive income. I'm Neil Henderson.
Clint Harris:And I'm Clint Harris.
Neil Henderson:Our guest today is Mister Brad Warren. Brad is a former international speaker and coach. He's traveled to over 19 countries and 27 of the United States for over 40 years.
business owners, and is the:And he's here to talk to us about land banking, which is something we've not talked about yet. So, Brad Warren, thank you so much for joining us here. How are you today, sir?
Brad Warren:I'm doing very well. Thank you for having me on the show.
Neil Henderson:Thanks for getting up a little early. You're on the west coast, we're on the east coast. You realize you were a little nervous about the interview.
You got up way earlier than you really needed to. We appreciate you being completely prepared.
Brad Warren:Thank you. And I am ready to rock and roll.
Neil Henderson:Yeah.
Clint Harris:So, Brad, you had a fairly interesting, yet obviously a great trajectory with your career.
You're the author of just sold the Real Estate Professionals Guide to selling more in less time, a lot of speaking, and then you kind of transitioned in your career. And I'll be honest, I'm being a little bit selfish about choosing this part of your accolades to talk about, because I'm honestly curious about it.
cialist in land banking since:So it sounds to me like you timed that very well, but now you're helping other investors looking at building generational wealth by investing in land. Unpack that for us a little bit. Tell us about how you got into that and what your trajectory looks like now.
Brad Warren: been doing it since March of: ,:She could retire together. We could retire if I added in my little bitty pittance of a retirement fund. But if I was still single and needed to retire, I couldn't do it.
So I called my land banker. Her name is Marcella Silva.
We were in a networking group, and I said, come to the house, do your presentation for my wife, Marie and myself, which she did. My wife actually walked out at the end of the presentation, said, no, thanks. I don't get it. Land dirt. Why do I want to buy dirt? And. And the timeline.
And she walked out, and I turned to Marcella, I said, get me a property, because this is the only way I'm going to build legacy and generational wealth. So I bought my first property. Next year, I got another one. Next year, I got another one. Then my wife comes with me to hear Marcella speak at a hotel.
I said, but you heard her three years ago. You weren't interested. Well, I've been watching you. You've made all these finders fees. You've made tens of thousands of dollars referring business.
You've gone to the company headquarters for the annual meeting. You've gone down. You even have little bags full of dirt from your property.
And maybe I missed something, but I'm not going to buy the whole way in the car, Neil and Clint, I'm not going to buy. Well, very long story, very short.
We get there, she listens, she buys two properties right there in the hotel out of the four that were offered, and then in the car on the way home. I mean, yeah, I thought you weren't going to buy, honey and shut up. Drive the car. I get it now.
own eleven properties. But in:I was a business coach at that time, and my wife is sitting at the kitchen table, which is unusual, because usually she's slaving away for oracle in her office in the back of the house. I got this funny feeling. I sat down, I said, what's up? She said, I've been dismissed. You've been fired? No, canned. Sacked. Let go. No, dismissed.
Apparently a new category of getting rid of people that allowed oracle to not have to pay unemployment benefits. So now here's my wife, unemployed, not getting another job. And I was like, okay, we'll get by. My coach's salary, my coach's income.
And she said, okay, fine. And I said, but we're still going out with Rick and Marcella. Marcella is the land banker that I referred to earlier.
Her husband is Rick, very good friend. Of mine. We were having dinner with them that we had scheduled two weeks earlier. We get there, we tell our story. We expect them to, oh, you poor baby.
Oh, you've been fired. And they start laughing. And I'm like, what the f. Is going on? Didn't you just hear what we said?
She lost a six figure job and vacation pay and health benefits. We're going to have to start paying for those. And they said, brad, you're not going to believe this.
Two weeks ago, our company had a moratorium on hiring new real estate agents. We couldn't hire anybody. Last week, they just lifted the moratorium. You are the first person we want to invite to join our team.
We know you got your real estate license two months earlier for another reason, which I won't go into now. And we want you to move your license and come work with us. Two and a half hours later, we're driving home. I haven't said yes.
My wife goes, Brad, I don't understand. This is an incredible opportunity. Why didn't you say yes? I said, marie, they're asking me to leave a 40 year career. It's all I've ever done.
My entire adult life is talk and speak and coach and get on stages. And now they want me to sell dirt.
She leans over in the car, gets right next to my ear, and goes, Brad, you'd be an idiot not to take this new career opportunity. And I did not marry an idiot. Everybody I tell that story to chuckles, like the two of you just did. And I was hysterical. I almost drove off the road.
I was laughing so hard, I almost lost the steering wheel. And I said, you're right. I will take it.
Called Marcella the next morning, February 1, eight days later, my license was moved, and I've been selling dirt as a real estate salesperson in the state of California.
I have a real estate license, and I sell vacant land strategically placed in the path of growth to patient investors to help them build generational wealth. And ive been doing that for the last six years. And I love it, Trey.
Neil Henderson:I love that story. So ive heard you mention that your first land investment seemed like swampland.
And could you elaborate on how you manage that initial uncertainty and turned that into success, Trey?
Brad Warren:Well, I wouldnt exactly call it swampland. It was just vacant land with a couple of little cacti growing on it, sort of in the middle of nowhere at that time.
And when I stood on it with Marcella, when she took me down there to look at it, I said, did I make a mistake? She said, brad, this is mixed use. Hold on. Be patient. Remember we told you seven to ten years, could be less, could be more. Just be patient.
Well, since buying that property, and then of course ten more that property, I've seen one less than a half a mile away selling for four times what I paid. A half a mile to the other side of me byd, which is build your dreams.
It's a chinese electric car manufacturer that built its only north american bus manufacturing facility in Lancaster, California, where we invest. Remember, I said, strategically placed in the path of growth.
On the other side of me, a half a mile away, they just bought 160 acre lot and they're building a second bus manufacturing facility because the first one is at capacity. They can't handle all the electric bus orders that they've received.
uild another one, bringing in:And the last thing we love, business friendly city government. You got to be in an area where the city government is not going to impede growth.
Well, unbeknownst to me, I found out later, after it happened, the city council rezoned my land from mixed use four to mixed use five, which means instead of a four story apartment building or a four story hotel, they can now build a five story hotel or apartment building. What did that do to the value of my land? It just one exit. It just increased it $115,000 and I didn't do anything.
We call that other people's money, other people's time, the unearned increment. I didn't do anything to earn that extra 115,000, but my land will sell for more or because they can build a bigger property.
Clint Harris:I'm just going to be nice and let Neal get a few more questions in this interview because I've got enough to fill up the rest of our time together. But first question, unpack a typical deal.
And I know that that deal is a little bit anecdotal with the rezoning, which I didn't even know they could do that without your approval. But unpack a typical deal acquisition lifecycle, the end buyer, and then we'll go a little bit deeper.
And I want to talk about the feasibility and identifying where those areas of growth are ahead of time and the vision that you have to have. But specifically, just on an individual average deal, walk us through that acquisition and the lifecycle.
Brad Warren:Okay. And ill keep it short because its quite involved process.
But basically, I meet somebody, either from a finder, which is a referral partner, they send me somebody, or I get on a Zoom call with somebody from LinkedIn that sent me a request to link, and I talk about land, and they get interested. I send them a presentation. They look at it. It's about an hour long. It's actually required. You cannot invest with us until you are educated.
We will not take your money until you understand that this is a longer term buy and hold, set it and forget it investment with no cash flow. And you're going to have to wait a while to get your return, which generally is three to seven x three to seven times your investment.
So you're trading time for more money.
You watch that presentation, you get on a zoom with me, I answer the remaining questions you have, then you get to meet Marcella in a three way conversation. We grill you. What are your goals? Are you sure that this money is patient money and can sit there for a while, they understand all that.
Then they tell us, yes, I want to invest. I trust you, I understand the process. And I have x amount. Our minimum is 25,000 to 2 million. So they give us a range. Let's say they say $80,000.
Okay, do you want solar or residential? Because with 80, we can actually move out of the low.
There's five kinds of zoning for land, and solar farms and agricultural land is at the bottom, and then residential. Then you have industrial, commercial and mixed use. So for 80, you can probably get a residential property.
But we ask them, they say, no, I just want to solar property as big as I can get for 80,000. We then look in inventory. Our company actually buys the land first. We use our own money. We buy the land, we put it in inventory, and then we wait.
Person says 80,000, we call headquarters, they go to inventory, they look for something plus or minus two. So 78 to 82,000, something in that range. If we have one, we pull it out of inventory.
It's not available to any other investor, and it becomes the property of that investor. They get to buy that one. It's not like you get in a car for residential. You drive around, you look at ten houses, and then you pick the one you want.
No, we pick according to your price, and that becomes your property. And then you go through the escrow process and the deposit and all that.
And we have a 21 day close, and at the end you get a fee, simple deed we pay the title insurance. You own the property. It's your land. You can go down and walk on it, dig holes, throw dirt at people, whatever you feel like doing.
Clint Harris:Got it? Okay. They actually do close on the property. They own the property now it's a waiting game, right? So you're sitting on there.
There's no depreciation or anything that you can take because it's just literally a piece of dirt. You're not changing the zoning, you're not doing anything. You sit there and you wait. You're just paying the taxes on it.
And then five years, seven years later, obviously you're looking at natural appreciation in the market. And are you advising people as to when it's time to sell and helping with that process, or are they just waiting and hitting the market?
Brad Warren:Great question. The short answer is we provide free negotiation coaching to any client, any investor that not all want it.
Some handle it on their own, which I personally think is a huge mistake. But once they get the offer, they don't know what the land's worth. Our investors don't really know. Again, this is very passive.
They don't want to be involved. They don't care what's going on. They don't know what's being built down there. So they call up and this just happened, actually, two months ago.
One of my clients, they've owned a property two years. Velour actually got a letter, handwritten letter from an energy company. Very odd. We thought it was a scam. We found the company, they're legit.
We forwarded the letter, got on a call.
The husband wife, Marcella and I, we spent 30 minutes with them going over the letter, giving them questions to go back to that energy company to ask. They were offering a 35 year lease on 30 acres at $3,500 per acre.
If you do the math,:That adds several tens of thousands more dollars. They didn't know that. They were like, wow, that's incredible. But now they are on their own negotiating.
They may get more than:And again, we will know if there are other investors in our company in that same area, if they've gotten offers. And then we can tell our. I can tell my client, hey, we know of three other investors, all who got $3,800 and they got 3%.
So make sure you're getting at least that much yourself. So very valuable information that we can give for free because we want our investors to have a big win.
Obviously, wed love it if they would reinvest with us, but if they dont, they dont.
Neil Henderson:Preston, you mentioned something here I want to make sure that we cover, which is, it seems like theres a couple of different exit strategies or strategies here. Theres just a full on exit where youve owned a piece of land for three, seven years, whatever, and you decide to sell it to someone down the line.
But you mentioned a lease, and Clint and I really just, we were at the best ever conference last April, and there was a guy there that was talking about ground leases. Is that sort of what you're referring to, a ground lease?
Brad Warren:Is that like for carbon capture and things like that? Carbon credits? I've heard of something like that.
Neil Henderson:Maybe it's not what you deal with at all.
Clint Harris:Yeah, his was more of like developers that would get into a crunch. They would sell the land underneath an apartment complex or whatever, and you would lease the land back to them.
I think it's probably a little bit different, but in this situation, the beauty is that that person still owns the land and it effectively is a ground lease that they're listing it to the utility company or whatever it may be. So they're getting paid for the next 30, 35, 38 years and they still own the dirt. And what are the chances after the infrastructure goes in?
Maybe it's obsolete by then, but it's not like 38 years from now they're coming back and they're taking it apart. Right. It's similar to what he was doing, that it's a legacy play in that situation.
And I think that's interesting because one of the things I didn't think about with land banking, typically, when I think of land banking, my go to reaction is preservation of wealth, that you're turning dollars into dirt. Right. We all know that the value of our dollars is going down.
We all know that they're not making any more land and the land is going to continue to go up in value.
It's going to go up in value at the same rate as inflation plus the natural appreciation of the market and the development that's happening in that area.
So land has always been a good hedge in terms of a store of wealth, but now you're talking about the ability to turn it into an evergreen, basically land lease. That's making money more than just the natural appreciation.
Like in that situation, the value of that property shoots up immediately because now it's tied to a net operating income. The reality is that guy could turn around and immediately sell that land lease to somebody else.
You could split the paper and probably sell it for $2 million overnight, which would be a dumb thing to do. Instead, just keep it, hold onto it and allow it to continue to generate wealth.
But I've always thought it as more of a hide your money there and then. Now you sit back and wait. In that situation, it's interesting that it actually turned into, effectively, a cash flowing rental property.
Brad Warren:Yes. Now, let me say right up front, leases are rare. This caught all of us off guard and by surprise.
he laws, have to, by the year:So how are we going to get to 100% in the next 21 years? Ain't going to happen. So these energy companies are going crazy building these massive solar farms. There are a thousand acres. They're gigantic.
They're like a mile square, 2 miles square. And we're seeing more leases because we're assuming they don't have the capital to buy it outright. They want to spread their payment over time.
And yet once the panels are in, they're making money so they can afford to go longer and pay more cumulatively over that 35 year period.
And that allows them to buy more land or lease more land and build more of these solar farms fast because they're going to be fine, millions of dollars if they don't hit those goals. So it's a whole bunch of factors going on. Yeah. Interesting. Doesn't even begin to describe this whole field.
I've been doing this now six years as an investor, six years as an agent, and in twelve years, I'm still a novice. I am still learning about this business. It's just fascinating to see what's going on.
And now you've got all these electricity buses and electric cars and electric trucks. The trucks are ridiculous. It takes as much energy to charge up a car as to run a house for an entire day. That's just one truck.
There's hundreds of them, thousands of them going to be on the road.
Clint Harris:Thousands. Hundreds of thousands, probably thousands, hundreds of thousands.
Brad Warren:Just in California.
Where is all this electricity going to come from the sky, from the sun, that's where most of it's coming from, because no hydro, nuclear is on the way out. Fossil fuel? No, it ain't happening. It's the sun. That's where most of the energy has got to come from.
Clint Harris:So this is a whole macroeconomy that we're uncovering here. This is a significantly. If that's the consumer, then obviously that's an unbelievable demand that has to be met over the next few decades.
Let me ask you this from a feasibility study standpoint, what is going through the process? And I'm not asking you to reveal the secret sauce, but like, how are you guys identifying the markets? How are you identifying the land?
What are the demographics? Are you looking at residential density or growing areas? Are you looking at near interstates or highways? Unpack that for us a little bit.
How we have confidence that you guys are picking winners, that is a huge.
Brad Warren:Question, so let's do it real fast. First of all, we only invest within a 60 miles radius of downtown LA, not in La proper. LA is all built up already. You can't buy land in LA any more.
Five to 7 million an acre, if it's even available, which it's not. So we're in the periphery of that 60 miles radius. Lancaster, Palmdale, Victorville, Adelanto.
We've gone out a little bit into Palm Springs, desert hot springs, and we're moving north to get more of the cheap land for the solar. So we're outside that 60 miles radius at the top of La county and into the bottom of Kern county, which is contiguous to LA county.
We have a dedicated team, we call it the research and acquisition department.
They have a checklist, and I can't reveal all the secret sauce, as you said, but it's got 16 things, and every piece of land that they look at has to get 16. Yes. Check marks or we don't touch it. It's not going to fit our criteria. We also have something called the ten growth factors.
There are ten macroeconomic things going on, all inside that 60 miles radius that lead us to believe, with I can't guarantee, but I'll say absolute certainty, that the areas that we invest in, our growth areas, we've seen it, the mayors have declared it. We read all of the city document, you know, all the planning documents, the general plans.
We go to city council meetings, we stay in touch, we follow the money.
So one example, city council of Lancaster and Palmdale, several years ago put $180 million of city money into widening the off ramps on the major highway 14 that runs through the two cities, you got to ask yourself, why are they spending $180 million of taxpayer money to widen the off ramps? They're going to be building stuff at those off ramps. So we start looking at all the land right near there and buying up as much of it as we can.
Most likely housing or maybe four, you know, supermarkets or four mini markets with the gas station. Only now, instead of a gas station, is going to be an electrical vehicle charging station and have both, because we got to make that transition.
So you follow the money, you follow the infrastructure, you follow the city council, you do all that and many other factors. Population growth, availability of water, business friendly city government near a port, Long beach and La harbor.
Third busiest, I believe, in the world. First busiest or most busy here in the US. Where do all of those cargo ships that are bringing in all those containers?
Where do they put all those containers when they land here in the US of A? They put them in warehouses. Where are they building those warehouses? Lancaster and Palmdale.
Because the other cities have put moratoriums on building warehouses. Because the community has finally gotten, you know, has risen up and said, no, but not in my backyard.
Black, latino, asian communities are disproportionately affected by all the fumes, the noise, the traffic, the deaths, you know, people getting killed by the trucks and whatever. And they basically lobbied their city councils. And so several cities inside that 60 miles radius have said, no more warehouses.
We're putting a moratorium. Well, guess what? Lancaster and Palmdale said, come on up here. We got the land. It's cheaper than you can get it down there, and we welcome you.
And so there are massive amounts of millions, literally millions of square feet of warehouse space on the board or even shovels in the ground. They're starting to build them already. So that was longer answer than I wanted, but, yeah, yeah, I know it's.
Neil Henderson:Not a simple answer. I grew up in Nevada, so there's a lot of vacant land in Nevada, but most of it, unfortunately, is owned by the federal government. BLM. It's out there.
You always got to be careful. I guess my question is, who typically owns it now? Who are you usually buying this land from? You're in the path of progress in Lancaster.
Who owned it before?
Brad Warren:I'll give you one example. I asked the CEO that very question. Divorcing couples. So Mister and misses Smith, California's a community property state.
Granny paid $3,000.20 years ago to buy three acres. She thought, oh, this would be a great investment. Nothing's happened for 20 years. And the divorcing couple has to.
Either one has to buy out the other one, or they have to sell it and split the proceeds 50 50. So we find those people, we offer them something, we get their land, because we know it is in the path of growth. And 20 years has gone by.
So it's ripe, it's getting close. It's probably not going to be seven to ten anymore. But unfortunately, those people don't know that. They don't have the knowledge.
They don't have an entire research and acquisition department whose job is solely to do the research and find the land that meets that criteria. So that's one source of the vacant land that we purchase and then make available to our investors.
Clint Harris:Got it. We spoke briefly before we started recording. I want to bring up something that, you know, the name of the podcast is truly passive income.
And the funny thing is, the reality is that there is nothing that is absolutely, truly passive. Even what Neil and I do.
We're syndicators and we're operators, and our investors just put their money in, we develop the deals and they get their proceeds.
But the reality is, you still have to vet the operators, you still want to look at the deals, you're still looking at the k one's and the monthly newsletters and the quarterly distributions and all that. It may be a tiny amount of your time compared to the return that you're getting, but the reality is, nothing is truly passive.
And I think part of the conversation that we often have is not about truly passive income, it's about what is not truly passive income, and kind of unpacking what that strategy looks like. So talk to us in terms of the way that the investors need to think about this and what is expected from them with this type of strategy.
And I love the fact that they're not buying a rental property that they have to manage. You're literally just waiting. You have to have some patience.
But there's also going to be some front loading of the work and then making decisions on the back end as to when to liquidate. So walk through from the investors perspective, what the expectation is.
Brad Warren:Well, you said the p word yourself, patience. The biggest obstacle to land banking is getting impatient and needing that money for something else.
That's why we go through before they buy and we ask, are your kids going to college? Do you already have that fund set up for them? What about a hip replacement?
What about buying that new Tesla or going on that round the world cruise with your sweetheart that you've wanted to do for 20 years. If youre going to need that money for that, dont buy land. I have actually turned a couple of people away because it was inappropriate.
Age is another factor. I had one guy, he was in his seventies and he wanted to buy, and he was like, oh, yeah.
And we started filling out the contract, and the next day he called and im like, okay, heres the call I was expecting. He said, my wife and I talked about it overnight. We realized, well be ten years, will be 85.
And yes, our kids can have it, but weve already got them taken care of. We were going to back out. I said, great, I'd rather you back out now than call me every six months. How's my land doing? How's my land? Oh, my God.
Nothing's happening. I had one client do that. I was ready to smack her. She bought a $750,000 property and nothing happened for five years. I just got an email last week.
She just closed $2 million and she didn't use us. We were going to get her up to 3 million, probably, or 2.5. And she thought she could do it all on her own. So we said, fine. Here's our suggestion.
Have a nice day. It's your land. She got a nice, I mean, what's that? Two times, one and a half? It didn't quite hit the three.
We wanted to get 2.25 and it would have been three x, which is the minimum that we like. So you got to have patience. One guy called and says, should I put up a for sale sign? No. Should I hire a real estate agent? No. What should I do?
Nothing. We explain this to you several times. Read my lips. Don't do anything except pay your property taxes every November on time. That's it.
And when you get that call or that letter or that email, then you call me. You do not reply, you do not respond. You don't even say hello back to them. You send me that information. I get in touch with Marcella.
We pow wow with the CEO of the company. That's who gets involved. Guys had 40 some odd years of experience in this business. The company has been around 45 years.
He's the son of the founder, has a PhD in economics. He's brilliant, one of the smartest people I've ever met. And you just wait.
nally cash and occasionally a: Clint Harris:I was thinking about that. That seems like a good place for retirement dollars.
Even though you're missing out on the compounding interest, that you have opportunity to have a really big upside on the back end. And if you can do that tax free, that's obviously a pretty solid way to do that. And it's just sitting there and appreciating over time.
You mentioned previously on one of your deals, the council actually changed the zoning on your property. Is there any type of forced appreciation play with these types of properties where you can go and file to change the zoning?
Are you guys looking at changing zoning or anything like that? Are you guys buying bigger pieces of property and breaking them up?
Or you literally just buy it and sit on it and they're going to change the zoning as needed, or how does that work?
Brad Warren:No. No. Yes. We don't buy bigger ones and split them up.
To my knowledge, I have never heard in the 45 year history of the company, of us approaching the city council, asking them to rezone. They just do it, and we love it. It doesn't happen very frequently.
In fact, in my twelve years with the company, that's the first time I've heard of that happening. So whether it's happened before could have, and maybe I never heard about it, but it was my land, so I knew about that one.
But you just let the economic forces play out.
You just sit there and do nothing except pay your property tax, which, by the way, with Proposition 13 in California, property taxes are very low to start with. When it changes hands, and it's. The assessor comes in, they never assess it at the purchase price because it's vacant land.
They assess it maybe at half. So you're starting low, and then it can only go up a maximum of 2% a year. So let's say the first year you paid $500.
The second year you're going to pay 510 and then $520.40 or whatever. I mean, it's ridiculously low, the carrying costs. So you just sit and you wait a and it's not easy. I get impatient.
I'll be the first to say it's been a while, and I wish some of my properties would sell.
And then I'm reminded, oh, the longer I wait, the more valuable the land is because the less, like you said earlier, invest in land because they're not making any more of it. And supply and demand.
Neil Henderson:Preston, you sort of answered my next question, which is what are the carrying costs?
I mean if you got just on a typical piece of land, let's call it $100,000 piece of land that someone bought, what are they looking at as far as carrying costs?
Brad Warren:Well, lets back up a second. So in addition to the $100,000 purchase price, theres an escrow fee which is graduated based on the purchase price.
We meaning our company pays the title insurance policy. So they basically just have the 100,000 and maybe on 100,000 and probably be about $1,000 closing costs for escrow. That's it.
And then like I said, on $100,000 property, even if it was maxed out, even if they went the full 1.3%, it'd be $1,300 the first year and then $1,300 plus 2% the second year and that's it. There's no other costs, it's just dirt. It just sits there and does nothing except appreciate in value.
Neil Henderson:Well Brad, this has been a fantastic conversation. I've really enjoyed it and now Clint has as well. And I know our listeners have.
So if any of our listeners want to find out more about you and your company, where would be the best way for them to do that?
Brad Warren:The best and only way is email, phone calls. You know, if you're on the east coast, you're going to wake me up if you call me too early. So it's just my name, Bradley.
You send me an email, I reply within 24 hours. Well, set up a zoom.
We'll get to meet each other, chat, start answering your questions, I send you the link to watch the full presentation and we get the process started. And that's it. Bradwarren.com dot Brad, thanks for your time.
Neil Henderson:It's been wonderful.
Clint Harris:Yeah, thanks a lot Brad. Really appreciate you educating on that.
Brad Warren:My pleasure.
Neil Henderson:Thank you so much for listening and watching the truly passive income podcast.
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