Building Wealth With Land Deals with Tom Staub
“I think understanding what a deal looks like is a lot easier for people. But when it comes to picking the right deals, and I'll just start there, it's kind of the same as how I would look at if you were to give your money to a lead to a rehab flipper”
Tom oversees the underwriting of projects, financial pro formas, debt, and equity strategy, company growth, and is focused on the viability of projects, partnerships, and investor relations. Mr. Staub has more than 15 years of business experience, has owned and successfully operated four separate companies, and has been a sponsor on more than 140 deals.
His journey has taken him from bachelor’s and master’s degrees in finance to Wall Street as a broker for Morgan Stanley, to the tech startup world of Silicon Valley, and over the past seven years, the world of entrepreneurship and venture capital.
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Brett:
I’m excited about our next guest. He actually oversees the underwriting of projects, financial performance, debt and equity strategy, and company growth, and is focused on the viability of projects at Red Oak development group. He also is connected with the partnerships in Investor Relations. He has more than 15 years of business experience and has owned and successfully operated four separate companies, and he’s been a sponsor on more than 140 deals. Please welcome to the show with me from the great state of Texas, Mr. Tom Staub. om, how are you doing?
Tom:
That's right. We refer to Texas as a nation here.
Brett:
It's true. It's like the nation of Florida and Texas. It's like a whole other world. I was just in Florida over the weekend, and it's a cool spot. I've been in Texas for a while. Although I was in Dallas. Actually, two months ago, I was in Texas, saw Tony Tony Robbins at a Commercial Real Estate Event. Austin is exploding. We can talk about that here in a little bit in a minute. But before we go there, would you tell us a little bit more about your background and your current focus?
Tom:
My trade is not in real estate. In the beginning, I started off, at Morgan Stanley in Wall Street, in the consulting world, and corporate finance and tech, and in film real estate about 12, 13 years ago, as well as serial entrepreneurship, and they kind of go hand in hand, and if you look at where the markets have shifted over the last 10 years, there was a time in which you could do big flips, commercial building flip syndications on already existing buildings and make a lot of money. That time has passed. In the last two to three years, we've pivoted and focused mainly on land development where all the big margins are today. We primarily develop an Arizona outside of Flagstaff, and primarily, we're secondarily around Austin, Texas.
Brett:
Fantastic, that would be fascinating. We'll dive into all of those things, and our topic for today is basically building wealth with ln deals, and we'll be focusing on that here in a minute. But before we go there, I also want to take one more step back, I think it's kind of a cool background with Morgan Stanley, the tech background, but I want to take one other step back even before that, perhaps even when you're in high school, or early days of college. Tom, I believe we've all been given certain gifts, some people call them strengths, some people call them superpowers, I believe they're their God, given gifts they've been given to us to be a blessing and help to others. I'm curious, what are those one or two gifts that you believe you were given? How does that help how you help and bless people today?
Tom:
It's amazing, way back, I saw my mother be a phenomenal saleswoman. My dad be a relationship guy, and I knew I always had the interpersonal sales ability to do sales and probably do well at it. But I never want to be a road warrior and all that, and as you would have in real estate definitely requires networking. Some time ago, I knew I had to just pony up and use those skills and network and really form relationships that are required to do real estate deals, and I'll tell you, there's, for my experience, land development deals, even bigger real estate deals really require people to sit down over dinner handshake, break bread through drinks, and that's a skill. number one. Number two is, I come from a finance background. There's a soul Blockbuster Video of me, and I'm like five, and they asked me, Tom, what do you want to be when you get older? I don't know, but I love numbers, and that was an age five, and so numbers have always been my forte. Combining those two, I think is pretty powerful. Hybrid for these deals.
Brett:
That's really cool. Finance and the numbers background, but then also having the mom and the dad mom, more traditional sales dad relationship, and kind of combining those two, and then he cut the thing about networking, which is really neat. I had the privilege and the honor to be a part of your amazing conference that you put on recently, and I was able to speak at that, and I appreciate that opportunity. But just the high caliber of guests that you had on there. I mean, he may be shared. I kind of wanna bring that network thing to live here because it's like networking, and then there's being able to bring on and connect people on a very high level. Just share a couple of the guests that you had at your conference and maybe even plug that in for next year as well.
Tom:
We live in a nonprofit. It's called the REI Academy, which is short for Real Estate Investing Academy. We have a small YouTube Channel, but mainly we do in-person events. For no virtual events, and fourth through that network, I had the likes of Bill Danko who have written two bestsellers, 4 million copies. Michael Zuber is a best-selling author as well in real estate, kind of a big name. The CEO is of hemmerling.com, CEO Matt Owens. The real estate CPA, Brandon Hall. You were fantastic and just others. Those really are the experts in real estate investing, and I think my goal in all this nonprofit is I tell my clients as to if you work with us, you're not just getting an asset product or an asset class, you're going to get access to the tax accountants, people like yourself, and those teams, what we call the power teams is really what it takes to form the wealth, the legacy wealth, not just a million dollars, well, I'm talking multi-millions. You gotta have those teams in place, and those, this network that we have formed allows people to get that team.
Brett:
I think that's very well said that Power Team taking the networking and then actually applying it right, because it's one thing to be connected with a lot of people like, the LinkedIn days or social media days thing to take that and actually apply it practically, with education, and I like the way you put that form the legacy, power teams formed the legacy wealth because you're right, those who've helped you maybe get to the millions, maybe aren't the ones who can help you to the 10s of millions, and then 10s of millions to the billions, and I think that's very powerful. That being said, let's dive into how to build wealth with land deals. Tom, what's the number one secret to building wealth with land deals?
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