Study Hall: HOW TO GET MONEY TO BUY LAND

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that I want to tell everybody to check out. You might not have any intention of farming, but with what's going on with food sovereignty, being able to purchase land through the USDA and loan products that are available, as well as being able to take advantage of any grants and different things that are available with food sovereignty projects, it's a no brainer. Look into Farmers dot gov. That is a great resource. When you are purchasing land. Institutional

funding is your typical funding. That's when you go to Wells Fargo, Bank of America, Chase, or Citizens Trust Bank, Unity Bank and you say, I want to buy this piece of land, I would like to build a home on it, and I would like to sell it. They've got the best rates that it's the hardest to get, so you're going to need to speak to multiple lenders, and you're going to do best by starting with a

bank that you already have a relationship with. So this goes without saying, before you try your hand at investing in any land, you should be credit worthy. You should have an exceptional credit score. You should have money and savings in the bank. At least, you know, twenty five percent of your disposable income should be saved in the

bank before you start buying land and investing in this way. Yes, you can buy affordable land at affordable prices cash outright, and if that's the strategy you want to do, by all means do it. But if you're going to do a development project of scale, you're going to need institutional funding. And to get the best rates and to even be considered by a traditional lender, you are going to need

exceptional credit and experience that track record. Again, there's ways to get around it if you don't have a track record and no one on your team has a track record. By partnering strategically with your constructor your excuse me, your builder, your developer, speak with multiple lenders. Set up your LLC again, talk to that strategy, that business consultant, that strategist, that

business attorney. Put your LLC into position by having the best, most credit worthy people on your LLC, people who have experience in maybe they have been a general contractor if you have someone in your family or in your friend group, use the people who are in the best position to be able to go after institutional funding. If you do that, seller financing is the better option if you know you'd have less than perfect credit.

know it, but nobody else is gonna know it. So seller financing means you could go and put loans out on twenty properties real quick and start flipping them on how you might see it as an opportunity, and your debt to income reach is not going to change, and you'll be able to move on your projects or get institutional funding as needed or additional credit cards as needed without these land deals being on your credit report and pulling your debt to income ratio to a lower score.

So with seller financing is scamming season, so be careful. People will put a picture of a property up at like they are the seller and you go and you're like, oh, I just bought twenty five acres for five stacks, and you did not just buy twenty five acres for five stacks. So make sure you are doing your due diligence, that you're checking the tax records to make sure that the person who says that they are the owner the seller is the seller. Check with the listing agent, make sure

that the listing agent is is an official broker. And you protect yourself in every former fashion by going through a closing attorney on your seller financing deal. That's how you cover your assets. Okay, don't go do a seller financing deal straight up, and you might not actually end up buying this land, unless, of course, you are again a season investor, a season real estate investor that's used to buying properties and putting deeds in at the text

assessor's office and with the court in the county. If that's not you, you need a real estate agent and you need a close an attorney to ensure that your transaction with the seller goes through smoothly. Another note, with seller financing, or what's also known as owner financing, you negotiate with the You can negotiate what you want and they can negotiate what they need. So it could be a twenty percent down payment, it could be a fifty percent down payment.

It can be a flat monthly rate of interest only with a balloon payment at the end. So make sure that you do good negotiating so that you get the best financing terms possible, so that you don't end up overpaying for this price of land. Because if that's the case, you hustling backwards. So negotiate. Make sure that you got your best negotiator doing the negotiating, and you don't lose your shirt because you're financing a an exorberate interest rate,

you're putting too much money down. Any of those things can be a bad situation. So negotiate, negotiate, negotiate, and make sure final note that the owner owns the property the outright. Ideally, if the owner doesn't own the property outright, don't buy it. If the property itself has a mortgage on it, that's going to be more than the down payment you're going to pay, because when you pay that down payment, you want that down payment to clear the mortgage.

No out that way, you can end up with the deed in your name. From that moment you leave the closing table, that deed being in your name means it's your property. You can get USDA farm benefits, you can get all of the things that you need. But as long as there's a mortgage on that property, in that seller's name. This deal is a no go in most states.

You can't have a property and sell it while you still have a mortgage on it, So be mindful that that mortgage needs to get cleared, and if it can't get cleared, it needs to be assumed, and you need to go through the process of legally assuming that mortgage with the mortgage holder and do it the right way because you do not want to lose your money. Private money lenders highest interest rates, hands down, that's not the way to go if you can avoid it, but it's

easier to get most cases. It's based on the deal. And you can also get private money from family and friends if you are lucky enough to have people who are financially Asstoote and who have savings and are interested and able to invest in deals like landdills and new construction opportunities. So if you have somebody in your circle,

go get that private money first. Negotiate, negotiate, negotiate, win when right, And if you don't have private money of ail to you in your own personal network, you can go to a hard money lender. Hard money lenders are essentially borrowing the money of all the people in their network. To be able to make loans to you at exorberant interest rates. A good interest rate for somebody who has a pretty good credit score who wants to bus and move before their business has been in business for at

least six months. Because typically all of these financing options, except for seller financing, you're gonna want to be in business for at least six months, unless you are doing a farming business in which you can use a USDA startup loan to fund your land purchase and your farming operational expenses. But otherwise you are going to need to have been in business for at least six months, unless

you're again going with a hard money lender. If not your heart, your heart money lender is going to look at the credit score of the primary or the managing partner. If that person has like a seven hundred credit score or better, you don't have to have been in business

for six months. Again, Typically the deal will dictate the private money lenders situation where you might not need to have good credit, but you definitely need to go and have these conversations again negotiating with your private money lenders. My favorite private money lender is direct lending Partners. They typically do not do deals on land. Most private money lenders or hard money lenders do not do deals on just land. But again, this is America. Anything is possible

when you negotiate and open your mouth. Crowdfunding less hoops, less successful crowdfunding. When we started our when we decided to purchase land and we were looking at Toomsboro, we went on to go fund me and we looked and seen about fifteen or twenty crowdfunding campaigns of people trying to fundraise the one point seven million dollars for the

city of Toombsboro. Right, crickets on all of the on all of the crowdfunding like, nobody raised more than like a thousand dollars on any of these crowdfunding website on this GoFundMe. So crowdfunding, while everybody gets really excited about it as an option, it's not usually successful unless you're very strategic and you have a huge marketing campaign and a great story. We were able to raise over eighty seven thousand, We're almost close to our eighty eight thousand

dollars goal. And we used that as a kind of like a building fun where we were able to clear our land and put down gravel and you know, lay down areas for us to do our uh pavilions and our stages and all those types of things. And so that was a long and hard process to raise eighty eight thousand dollars and we still haven't reached our goal. So I crowdfunding is an option. It doesn't take a lot other than a strong story and marketing campaign, but they don't tend to go as far or be as

successful as you would like them to be. And it takes a ton of money to be able to genuinely develop large projects, especially when they don't have, you know, connection to certain infrastructure. So crowdfunding is definitely a later choice. And then there is regulation crowdfunding, which you can raise

up to one million and seventy thousand dollars. I'm not very familiar with crowdfunding, and I would love if Troy and Rashad could get somebody who has done some crowdfunding in the EYL University at some point, because.

discover the limitations and the restrictions of the land. I saw somebody in the comments say something about feasibility studies. That's this moment of discovery. Right. You can do a feasibility study before you buy the land, but that's a whole lot of money to put into something and then decide not to buy it or go forth. If you study the area, you do your due diligence, you know what's happening in the community, You've got a clear vision when you purchase that land. You can do your feasibility

study after the fact. Because developing land is really a lengthy process. It's not an overnight success type situation. It's going to cause for a civil engineer to come in to study the grating and the slopes of the land. There's gonna be someone who goes and drills into the dirt to see how much weight the dirt can withstand, so you know how high you can build and what you can build, and what kind of materials there's gonna

be best based on the climate. I'm skipping ahead, but ultimately this discovery period is where you're gonna get your topographical survey done and you're gonna want to understand the demographics of the area. Again, what the median income is, are people graduating from college? Is the crime rates high? All of that good stuff. So that is your discovery period,

your master planning period. This is where you're a person that you hired as your master planner looks at where we're gonna put everything at the infrastructure and the roads. Ingress and egress means how you go into the neighborhood, how you go out of the neighborhood, how you go into your driveway, how you go out of your driveway, waste management, stormwater runoff. They're gonna plan all of these things. You are not the person that does that. There's a

master planner, a developer or architect, a civil engineer. There are a team of experts that sit down and do your master planning if you're doing a large scale project. If you're doing a smaller scale project, you still need the same people, but you might be able to work with a boutique company that has two, three, four people. Maybe we're in the same ernest.

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That master plan to lay out those streets, those roads, all all of that designed from the information they got in discovery, from that topography report. They're gonna do all of that and it can cost anywhere from ten to fifty thousand or more depending on how much land you are getting planned and who the planner is. Design phase

Designing is the next step to your development process. This goes beyond that initial discovery phase intto building homes and structures and retail and commercial based on the climate the area, the needs of the citizens. Areas that are prone to like tornadoes and hurricanes, they will require different kind of building materials than places that are by and don't have those type of climate changes and issues. So all of

that can increase the cost of what you're designing. And this is where you can make a lot of money or lose a lot of money because you can overly design and you design something that's too high end for the area, and now you're not selling because it was not the kind of design for this neighborhood. Community and culture. Purchasing land where there's wetlands, deep valleys, other topic, graphical challenges.

That's going to create larger budgets because now you're talking about building bridges and how you lay in your foundation. So all of that stuff is a part of the design fast and it's going to create and have a certain budget that will change according to the complexity of the design and the uh, what's the word I want to use, the style, the aesthetic of it. Okay, construction This is the second to the last stage of the rawland development process. In most cases, it's gonna be the first.

Your horizontal development. That's the grading of your roles, that's the curves, that's utilities. Eventually you know you're gonna start building the property from the ground up. When you looking for a contract or your construction team, they're gonna get paid in increments from your construction loan and once they have gotten all of the construction done, you're ready to

go onto the next phase. And construction again can take longer timeframes based on the complexity of the design, the materials chant leaks in the supply chain or of trying to get certain materials to you. If you have certain materials that you are using because you're committed to green building, or you have a high end design, all of that can lead to higher budgets and costs. When you're looking for a contractor or contractors. You can google what state,

what city you're in. If you want to hire you know a minority contractor, a black contractor. Google that put Georgia Minority Contractors Association, put Florida Black Chamber of Commerce, put DC Business League into the results. Call them up and find a reputable contractor if you don't already have someone you know. In branding and marketing, that's the last

stage once you've gotten your building done. Before you've gotten your buildings done to be perfectly honest, branding and marketing is what's going to sell this community that you just invested your time, energy and money into. Branding is how you sell, tell the story of why you built it,

and attract your ideal residents to the community. And marketing is the active placement of materials and formats that will allow them to see that story and get that story in front of the masses so i can show you better than I can tell you. And I'm going to take you to a community right here in Georgia that's dope. In marketing, this is called Trillist. This is a community that's been being built over the last ten years. It's actually a community that was founded by a production studio

called pine Wood Studios. It's in Fayetteville, Georgia. This marketing is what attracts their ideal client. Their values is what attracts their ideal client. The community that they are building is for makers, entrepreneurs and storytellers where they can for fine fulfillment in every way. This is branding a community tailor made for storytellers. Well, it was a studio that purchased land built it up, similar to what Tyler Perry did when he purchased land in East Point to build

Tyler Perry's studios. They built a community that's that economic development. It's got restaurants in there, homes and so when you are considering land development and what you're buying, things happen in phases. And so I wanted to show you this because when you start talking about doing a land project, you have to have vision and you have to know where you're going. So I wanted to show you guys Trellis and I'm going to show you got close that door,

please star, thank you, Yes and Sarambi, Georgia. Again marketing, it just looks like the kind of place where you want to live. Right, They got goats. So when you start thinking about your project, begin with the end in mind, and think about who's going to live here, and build for them, and build in a way that the story is compelling. That's what we're doing with Freedom Georgia. All right now, I'm going to take you guys to the final stage, and I got three minutes before we go

to questions, some insight and inspiration. Don't wait for opportunities to come, get up and make them, Madam CJ. Walker. The charter chartering a city. Listen, if you are interested in chartering a city, hit me up. But the reality is, as we begin to be more strategic and work these ideas and principles of group economics and collective economics, and we're building collectively communities that are safe, that are thriving,

the logical next step is a city charter. A city charter is going to open you up for benefits that will give you more control over your community long term. When it comes to how your community is developed, police, the zoning, the ordinances, the health outcomes, how money that gets sent down from the federal government to the state government gets distributed is based on these cities and their

populations and density. So we really got to look at how being a city and taking these developments where we're building our own infrastructure, building our own culture of shared value values. Then we turn go to the next step, which is a city charter and electing officials who are going to represent our values and do what's best for the residents that live in this city. This is called placemaking, is what we're doing. It's not just about land developing.

This is about making places where people feel safe, where people have peace, protection, prosperity, and a city is a government structure that allows that to actually happen. So that's our next step. That's what we're going with this. So get strategic, work together with your comrades, with your partners, with your like minded business folks in the area, get with your economic development authority, get with your black Chambers of commerces, and let's start building these cities according to

our needs, our design. This is how we be strategic.

You would think that this would be one of the key things that would consist of an educational experience because we all have to live somewhere and land is the key component of the planet Earth. And it never, it never was actually taught to ninety nine percent of us. So it's amazing that you were able to come on here and teach this, and we're thankful, so thank you for that. And you know, it's also amazing that we was able just to even have this platform to actually

educate people. And it's a very encouraging thing and I'm sure everybody is extremely appreciative of it, but do not take it for granted. Sometimes when you when you get things and it's free, you don't fully appreciate it. But it's like, you know, this could have been Harvard, this could have been Yale, this could have been any any.

So now that we're coming into this information, it's important that a we learn as much as possible, we apply it, and also we work together as a group. So yeah, that's that's something that is extremely extremely powerful.

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week of Eyo University as you know it. We're taking a win a break for two weeks and then we're coming back in twenty twenty one. We're coming back in twenty twenty one with a whole new, revamped product. We're gonna have a professor series where we're bringing in experts to teach classes four times a year. So it's not just gonna be one off because sometimes it's hard to learn with just a one off class.

really really taking us to the next level. If you joined today, it's forty percent off, which is four four hundred dollars for the entire year, including seventy classes, all stuff I just named your grandfathered them for that price next year. And yeah, so this is the last forty eight hours. You got forty eight hours before that changes. So if you're interested, I pinned it in YouTube. It's eyl university dot com into promo code freedom at the

end at checkout. And I mean, like, realistically, four hundred dollars, that's like a that's a good dinner with two people in New York City.