Land Investing Online

In the fast-paced world of real estate investing, finding lucrative opportunities often leads to the challenge of managing surplus capital.

For those thriving in land flipping and investing, deciding where to reinvest profits can be both a rewarding and strategic next step to scaling your profits.

In this episode, the Apke Brothers Ron a Dan delve into actionable insights on how to leverage your real estate investing captial effectively within, and outside the realm of land investing.

More Marketing The Merrier

Expanding marketing efforts is paramount for scaling a land business. Allocating surplus funds to test new strategies and scale existing campaigns can drive more qualified leads, ultimately boosting deal flow and profitability.

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Join our free Discord channel!

Engage & network with thousands of new and experienced investors, participate in weekly Deal Reviews, and more!

Investing in People

Hiring virtual assistants (VAs) to handle data scrubbing, property listings, and customer correspondence is a smart initial investment.

Gradually diversify your employee base by adding specialized roles like pricing analysts or transaction coordinators to streamline operations and foster growth.

Outside Ventures

When it comes to opening the door profitable ventures outside of land investing, there are a plethora of options you can take.

You can try diversifying into physical real estate assets, such as rental properties or mobile home parks. This type of real estate investment offers stable returns and attractive tax benefits. Real estate investments complement land flipping by providing steady cash flow and long-term wealth accumulation.

If real estate is not your thing, you could try acquiring or launching businesses.
This strategy
requires industry expertise and operational efficiency to maximize returns and mitigate risks, but can be extremely rewarding and profitable. 

Ultimately, reinvesting surplus profits requires a blend of calculated risk-taking and strategic foresight.

By prioritizing continuous learning and growing within the land investing industry and venturing into complementary investment avenues, real estate entrepreneurs can fully optimize their cash flow.
Venturing out into complimentary investment avenues or trying alternative routes like physical real estate assets can create an even stronger long-term cash flow.

Watch or listen to the full episode below to hear amore ways to reinvest your profits to grow your land business and as an investor!

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View Transcript here

Dan: If you have a lot of extra capital, you don’t know what to do with it, and you want to reinvest it into your land business, what would you start with, Ron?

Ron: If you want to scale your business, put more money into marketing. Your profits, put more money into marketing. Next thing I want to talk about is people.

Dan: We always say start with a VA, that’s scrubbing your data, listing your properties, flying to emails, things like that is a really good place to start.

Ron: I think deal funding would be kind of the next one. Funding other members deals, funding networking out and partnering on deals.

Dan: Let’s go to outside land investing.

Ron: The thing about putting your money places outside of real estate is. Like you need to put it in places you know.

Dan: The last three moves or so we’ve made, let’s just talk about the last four move business, real estate, real estate, real estate business. And I do buy crypto. Hey everyone. Welcome back to the real estate investing podcast.

Today’s topic. We’re talking about reinvesting your profits into other areas. I’m your host Daniel Apke joined again by my brother and business partner, Ron Apke. And we want to talk about this because Land flipping land investing, you know, is very profitable. And a lot of people are making a lot of money doing it.

And there, you have the, uh, money problems of, you know, and it’s a really, really good problem to have of now, where do you put your money and what do you do with all that excess money? And we’re going to break this into two categories. Essentially in this episode, we’re going to talk about. So I’m going to talk about where to place your money if you to keep it in your business land investing and then places to put it outside land investing and different things that Ron and I have also done.

So there’s two, two different pathways. It’s in land investing, you know, with different areas we’re going to talk about and buying your own deal and things like that. And then there’s outside land investing that are just generic and they’re, they’re what to do with your money if you want to place it outside of this business model as well.

Ron: Yeah, I think this is probably something we don’t necessarily talk about enough. Dan is just this because people are making lots of money and then it can get, it can just become a cycle as you’re just putting it right back into the next deal, the next deal. And like you need to eventually, you can definitely put it in your business, which is what we’re going to talk about, but it’s different than just cycling it into the next deal.

Putting it into the next deal is different than into your business.

Dan: Right. I actually agree . Oh, it’s a, it’s a combination of both, but let’s talk about inland investing first. Okay. And if you, if you want to reinvent, if you have a lot of extra capital, you don’t know what to do with it and you want to reinvest it into, uh, your land business, there’s multiple things you can do.

And what, what would you start with Ron in terms of reinvesting money like this? Let’s start with some basic things like, like mail and marketing.

Ron: Yeah. I mean, you, you can with marketing, you can scale up your marketing. Like that’s a way to reinvest your business. Like you want to scale your business, put more money into marketing.

You have profits put more money into marketing also, which. Also, another thing is testing different strategies. You’ve learned from us or you’ve learned to whatever, how you’ve, you’re making money in land by marketing some way, taking 5 percent of your marketing budget and reinvesting that into some different strategies.

The test I think is, it’s like R and D, like all companies, all these big tech companies, all these companies are doing research and development. That’s the same thing with testing different marketing strategies, putting money into that I think is huge.

Dan: Yeah. Testing different marketing strategies, whether it’s Uh, 10 percent of your budget, 15 percent of your budget, whatever you are comfortable with, but it’s important because you’re going to learn things from it and not only learn things, some things are going to hit and you’re going to have different niches and strategies.

Uh, maybe you want to test out, you know, 20 percent of your mail one month going to, Uh, properties with houses on it that own over 20 acres to try to, you know, and send a custom letter that says, I want to subdivide five of your acres off, you know, something like that. Five of your road frontage acres. And you go and you buy a bunch of five acre properties, different strategies, get creative with it like that.

But then you also have texting. You have cold calling services out there, things like that, like 500 bucks a month. That’s reinvesting. That’s a lot, right? Uh, texting services can be expensive plus the skip tracing and everything that comes along with it. Um, whatever you’re doing, like putting it into different marketing, that’s a big pillar in this business.

You got to get leads. So if you’re reinvesting in your business, that’s the first place I would look to put it is into getting more qualified leads. Unless you have an influx of them and you don’t know what to do with all your leads. 99 percent of land investors want more acquisitions. Cause that’s how we make money.

Yeah. So that’s what you would put it in first. Next thing I want to talk about, um, and staying in the land investing space, Ron is, is, so we talked about marketing as people and that’s another area. If you, if you get the right people that can really, really make you a lot of money. And there’s lots of different areas in this business you can go.

And we always say, start with a VA that’s scrubbing your data, listing your properties, replying to emails, things like that. Um, you can pay a little bit more for VAs and they can do some due diligence for you. They can do, uh, um, pricing for you. If you want a pricing analyst VA, they can do all kinds of different things for you.

But at first, the generic customer service VA who’s just going to be scrubbing and doing a bunch of different stuff and you can keep adding to their plate over time is a really good place to start.

Ron: Yeah. I mean, people can 10 X your business, like not, I don’t want to say relatively fast, but getting people to replace some of the roles that you’re taking, like you’re doing a lot.

If you’re doing this business yourself, you’re making solid money. You’re doing a lot of stuff within this business. And it’s hard to like reinvest in different marketing strategies. If you are doing this all yourself, cause you don’t have the time, you don’t have the mental capacity, but if you can, you know, Get a VA, you can get a America, whatever it is.

You get a person to take some things off your plate. It’s going to allow you to grow your business. And that’s what you should be focused on. Uh, if you want to reinvest in that, in the business,

Dan: yeah. And there’s, I mean, you can, it depends what level you’re at in land investing. Maybe you already have VAs, maybe you already have all that.

And maybe your next employee. Is a transaction coordinator or a salesperson or just a inbound salesperson who’s answering the calls instead of Pat live and then kind of passing them on to you. There’s a lot of different ways you can go with hiring in this business in general, but putting it into putting your profits into people can really, really 10 extra growth.

Like Ron said, next pillar, uh, we talked about strategy, we talked about marketing, we talked about employees. What else is there, uh, in terms of inland investing?

Ron: I think deal funding would be kind of next one. You have some money, Funding other members deals, funding, networking out and partnering on deals.

Like you have some money to put into deals, uh, like, yeah, you can put money in, if you’ve used deal funding, you can definitely hand select deals for yourself. Um, in terms of you’ve taken, if you’ve used deal funding for your deals in the past and you want to start funding deals yourself, that’s a way, but you can also go to members, you can go to other people and you can try to partner with them on their deals.

If it makes sense to you, like that’s a way it thing about it is you have less control when you’re doing that, Dan, and it can bleed a lot of capital very, very fast.

Dan: Absolutely. Like you can get, uh, you can go from 1 million to zero very quick and put it all in there and it can take all your capital and stress you out, which is good because that money’s going to turn if you did your due diligence and stuff as well.

The margins are much, much smaller in deal funding. Funding your own deals as well as a really good one. Um, but the last thing I want to talk about too, is Um, systems and you don’t need to, it’s a small financial investment systems. It’s a, it’s a bigger time investment. It’s just a time thing. And, but if you guys aren’t, if you guys don’t have good CRMs and systems and processes, because you’re going to hire these people, these people are going to come on.

And a lot of times the people force you to put good systems in place. So they work together, but they’re going to come on. They’re not going to know how to do stuff. And you tell a transaction coordinator to go do all due diligence. Well, what does she have? Does she have a checklist? Does she have a CRM going through the stages, making sure putting in all of the information?

So it’s stored in one area, those type of systems and putting the time, uh, and that’s, that’s an investment, but it’s more of a time investment than anything.

Ron: Yeah, for sure. And that’s a, that’s a good point. Um, systems are, it matters what type of person you are sometimes for systems. Like sometimes some people are like needed systems.

You might already have good systems at this point, but if you’re. The type person is always kind of delayed it and you know, you can be more efficient with it. Outsourcing it, partnering with a whatever on Upwork, whatever it is and trying to improve those systems or you can try to do it yourself is an efficient use of time and money.

Dan: Yeah, I agree. And I think those covered a lot of the pillars of inside land investing. Let’s go to outside land investing. And, uh, there are multiple assets class. Obviously you have, let’s just talk about some of the few, like you have real estate, you have stocks, you have, buying other buying or starting other businesses.

Um, maybe you have, uh, you know, buying and starting another business in relation to your land investing business, uh, real estate, rental properties, all of that stuff you have there. And that’s just kind of a broad level. And we’re going to get into kind of the specifics and talk about what we do also. And what we do is not perfect.

Of course, it’s higher risk than a lot because we’re not putting a lot of our money into stocks and 401ks for the most part, we do that. But a lot of our monies are going into real estate or going to the other businesses or starting other businesses, uh, acquiring other businesses, things like that as well.

Ron: Yeah. I mean, when we’re putting our money or when I’m putting my money places like. Just what can it be in five years? Like it’s stock market is a safe spot at 401k is a safe spot to put your money long term for sure. And

Dan: you should do some of that

Ron: for sure. But it’s not like, it’s not helping me hit my goals five years from now.

Um, I think you’d probably agree with that.

Yeah. Yeah. It matters your personality too. It matters your

age. It matters your situation. Like you don’t want to, if you’re 50 years old and you’re retiring in five years, whatever situation, like you probably don’t want to do something as risky as us, maybe whatever it is.

But yeah, I mean, we, we’ve done a lot of different things. We can get into the details of it. I love putting my money into real estate because it’s an asset class that we know really well. But again, it’s not that you’re not cash flowing. If you’re putting into rental properties, the advantage of real estate is the tax incentives that we see.

Dan: Yeah. Well, tax incentives, you do cashflow a little bit and you have the appreciation and you paying it off over time with cash flowing a little bit. The more I, uh, I invest in things, the more cashflow I want because being asset rich is one thing and it’s cool. But I want to be very, very cashflow rich.

And it just gets you to be able to, like that is the ultimate freedom assets behind it are going to come with that too. If you’re cashflow rich. And that’s what I look at now. And that’s just my personal preference. I historically have done a lot of investing on uh, you know, asset asset based things that aren’t giving me cashflow.

And now I’m starting to look at it a lot different because I understand the, you know, and Grant Cardone says that all the time and he always has, and it never stuck with me and it never really has. But the more I experienced, not being cashflow rich in certain things that I put a lot of money in, but the assets there and it’s a safe asset.

And I know it’s good to balance them all and everything, but I like the cashflow of certain businesses. And that’s why recently I bought a mobile home. And that’s a cashflow mobile home and mobile home parks. It’s a park, mobile home park. And they do cashflow a lot. That’s an asset class that’s just going to cashflow a lot.

It’s going to be a little more maintenance, probably. But those generally cash are cash flowing. Uh, you know, you start buying two, four units. You might get 400 bucks a month, a thousand bucks a month, whatever it is. But you’re. That’s really to pay off the asset and have that asset behind it, which is great.

And we have a lot of those as well.

Ron: Yeah.

Dan: But I like to look at a lot of, and it depends. Do you want cashflow? Do you want assets? Do you want security? Do you want a little bit of risk? And what you want, how much work do you want to put in? How much work do you not? Because if you don’t want to put in work and you just want to put it in places, there are real estate syndications.

There are partnerships you can get with other land investors or real estate people who need hard money and you can get 20 percent a year. on your money. There are, uh, I said, syndication, their stocks, obviously I’m somewhere in the middle. I don’t like to put a lot of time into my assets, but I do want some cashflow too.

Ron: Yeah. Yeah. I’m somewhat, I’m somewhat similar. Yeah. As far as that, I mean, with where we’ve put our money the last 24 months or so has been less physical real estate assets for me personally, just because of. It takes a lot of energy and work. Like you have the appreciations nice and all that’s nice. But like it does, even if you have property management company, like whoever is managing it, like it takes a lot of energy and work.

We had a bigger apartment complex, maybe it’d be a little different, but what we’ve done recently is start. And by businesses, I guess that’s kind of the biggest thing that we put our money into and the combination of building, buying a business, whatever it is, you are, you can be, cashflow is essentially going to create the asset so you can, you have the best really of both, both worlds.

If you are looking for cashflow is. If you are looking for cash flow, it is you buy a business, you build a business, whatever it is, 100%. Um, but I always, the thing about putting your money places outside of real estate is like, you need to put it in places, you know, and that’s what we did. Like we know the markets.

That we’ve put our money into. We understand there’s less risk in things that, you know, without a doubt, there’s less risk in us building the land portal, putting hundreds of thousand dollars in the land portal, because we know the industry, we have customers, we can provide the data, the service that the customers need.

So there’s a lot less risk than if any Joe Schmo off the street builds a land, uh, data company.

Dan: Yeah,

I completely agree. Knowing that

industry, like even, even when I was looking at the mobile home park. It was foreign to me, the different things I had to look at, but it was still real estate and I could figure it out very quickly.

And the, you know, I could figure out the, uh, the distributions and the interest that they’re giving us and all these different things going on in there, uh, fairly easily because it was in the same asset class that we already did.

Ron: And you had operator partners for that.

Dan: And that operator partners for that as well.

Yes, absolutely. So I’m not managing the mobile home park, which is the biggest thing. Um, and then it does, it does give cashflow and things like that. Uh, like Ron said, we manage our real estate portfolio in Cincinnati. We do have property managers, but we’re, there’s no other operator or anything there.

It’s us. And that takes more time. And also isn’t that great of a, it’s good longterm money when you look at it in five years for sure. But it’s, it’s a lot of time and stuff. If I took that money and put it. into my own businesses and things like that, it’s different, but that’s just how we roll. So the last three moves or so we’ve made, and let’s just talk about the last four move.

So I bought the mobile home park. I bought a piece of land, uh, um, for a member, for Mike. That was a big investment. Like, yeah, deal funding. Um, so that was funding. So I bought a mobile home park. I bought that. We started, uh, the land portal. That was 300, 000. Right.

Ron: About, yeah.

Dan: Um, it’s in Lamport or what else there’s, uh, we bought Grant County, we bought a Northern Kentucky property.

Yeah. That was a while ago though. Um, I bought a piece of real estate in Florida, um, and then we just brought Donors. io. Yeah. Yeah. So that is, we just got out of auction yesterday and brought Donors. io. Um, we haven’t closed on it yet, so we, we won’t talk about that too much, but those are our last moves. So business.

Real estate, real estate, real estate business. And I do buy crypto. I like crypto. I have a lot of crypto and that’s just, I like to, I, it’s only Bitcoin and Ethereum and those are the only two I’m really buying. And I don’t know much about it, but it’s just fun. And I have a lot of money in there, but those are my main moves right there just personally.

And I’m not like, We are not perfect at this. We know we’re high risk and all of that. But if you do look at my asset class right now, a lot of it is pretty balanced, but it is, it’s more balanced than you think. And we have a lot of cash and stuff like that also. And we do

Ron: a 401k. Even the best investors in the world, though, like they all say like the actual best, not the people who talk the most or have the most people listening.

Like they always say, I think Warren Buffett said, like. There’s, there’s the, the risk is only associated with how much you know about the business. Like Warren Buffett doesn’t see risk in buying a business because he knows how to, like he knows what he’s investing in. He understands it. The best entrepreneurs don’t see risk in building a business because there’s the less risk in building a business than there is for a lot of other things they could do.

Dan: All of these things I just talked about, I know they’re going to work a hundred percent. Yeah. They’re, I’d be shocked if one of those didn’t work out. Yeah. And that’s five things. Like you got crypto, crypto is the one where it’s like, okay, that’s kind of a thought. But for the most part, like I, all of those businesses we started, we acquired, uh, we put it into the land, all that, like, I know what it’s going to get me for the most part.

Like, I don’t know how high it’s going to go, but I know it’s going to go higher.

Ron: Yeah. And the thing about land, like if you guys are making money on land, ready to invest in other things. The thing about land is that it can provide you so much time. Like you can be making three, four, 500, 000 a year working 10, 15 hours.

Then you have time to do other things. You have money to do other things. So like just figuring out and it’s looking in like, do you want to reduce taxes? Okay. Probably buy some real estate, probably buy some physical real estate

Dan: You should be doing that. If you’re a full time land investor.

Ron: For sure. Yeah. So you can get.

Tons of tax incentives for buying that. Talk to your tax advisor on that.

Dan: All that’s depreciation. You can, you can, you know, balance, you can, uh, balance out your income so much from bonus depreciation that you won’t pay any tax because of the depreciation of the, the calculated depreciation of the asset, but talk to your accountant, obviously, but that’s the number one strategy to eliminate taxes.

Ron: Yeah, you make money and then you put it into an asset that’s growing that hopefully cash flows and you also pay no taxes on it on the money you made through that entire year. So like, that’s the number one thing. And then just kind of evaluating where you are, the risk you want to do. Some things are more risky, like it’s not There’s not no risk in us buying businesses, but same time, like we just, the confidence and the customer base and the understanding of the market for sure just reduces it.

Dan: The risk is time and we have an operator on this and I would not have bought that business if we didn’t have an operator because we have, we’re so focused on the land portal right now and everything else we have going on laying about. We already have a software set. We just bought another software set, but we have an operator.

That risk would have probably not been worth it if it wasn’t, if we didn’t have an operator in place. Yeah. So it’s all about your time, what you want to put in every, every asset that I look at purchasing. I, the first thing I think of is time and then the reward and the balance between the two.

You know, like

if it’s, if it’s going to get, make me a million dollars a year, I can put a little more time into it.

If it’s gonna, you know, and I can be willing, that’s a sacrifice I might be willing to take if it’s going to make five, 10, 000 a year and then it’s whatever. And it’s going to take my time too. And I got to go in whatever it is and hire contractors, things. I’m probably not willing to make that, but if someone’s there as an operator and wants to partner with me or get some equity and give them 20 percent to do it and I pay for it, like you can, you can always work things out.

Ron: Exactly. Um, well, I don’t have any more to add yet. Evaluate your portfolio, make decisions based on that. If you are a full time land investor, buy some real estate. That’s definitely something you should be doing. Um, and then grow your business. Like don’t forget about growing your land. That’s the first because that’s working.

It’s working.

Dan: You will make the mistake. If you don’t put this money in your land business first, you, it’s a heavy, heavy mistake, you know, and you got to where you are now and you’re making money because you, you have a skill. If you don’t put it in the fuel and the fire, like it’s like putting gasoline on a fire cause you, that’s the skill in the money coming in is just backing that up and it’s everything grows together for that.

Like you have to put it in your business first cause you know that’s going to work and it is working. That is your skill and you built that. So always fuel that fire first. I’m saying when you have excess and you start to go, don’t look at investing elsewhere. Until you’re to that point.

Ron: Yeah, for sure.

Other than that, guys, if you guys enjoyed this episode, if you’re listening on Apple or Spotify, share this with a friend, put it on your Instagram story, put it on your Snapchat story, share it with a friend. It really helps us if you’re watching on YouTube, hit that subscribe button, hit that like button, leave us a comment.

If you have any other videos, any other episodes you want us to talk about other than that, thank you so much. We’ll see you next time. Thanks guys.

Dan: As always, thank you for joining. Please do us a huge favor and like, and subscribe our YouTube channel and share this with a friend. It really means the world to Ron and I, but more importantly, it could help change the life of someone else.

Thanks for joining and we’ll see you next episode.

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