Episode 20 - What Is The Risk Of Land Investing With Steve Hodgden
In this deep-dive episode, Daniel sits down with Steve Hodgegden, founder of Finance Land Sales and Modern Asset Management. Steve shares insights from his 30+ years in subprime lending, medical loan finance, and land investing. They discuss the psychology of subprime borrowers, the flawed logic behind no-interest land deals, how to build performing notes, and lessons learned from big mistakes like buying slope and flood-prone land. Steve also offers a raw, experience-based view of ethics, underwriting, and building a sustainable land business with long-term upside.
1. Subprime Borrowers & the Psychology of Repayment
⏱️ 0:00 – 9:01
Steve’s surprising niche: financing 7,000+ gastric bypass surgeries
Why people with bad credit sometimes make the best borrowers
The psychology behind aspirational land purchases and performing notes
2. Land Deals vs. Used Cars: Why Desert Squares Suck
⏱️ 9:01 – 15:10
Why he abhors no-down, no-credit-check land deals
His take on desert squares and used-car-lot logic in the land game
How he reframes seller financing to avoid the “loan-to-own” trap
3. Structuring Notes Ethically (and Legally)
⏱️ 15:10 – 22:09
Truth in lending: How most land sellers misrepresent interest
The right way to disclose pricing and offer early payoff rebates
Balancing ethics and business when working with lower-FICO borrowers
4. Mistakes, Slope, and Lessons from 600+ Land Transactions
⏱️ 22:09 – 41:12
Buying 23 acres “on the wrong side of a guardrail”
Slope, flood zone, and why you must walk the property
How bad deals still happen even with experienced partners
Learning from price reports, topography, and rural zoning realities
5. Legacy, Joint Ventures, and Sustainable Scaling
⏱️ 41:12 – 1:06:49
How Steve structured 80/20 JVs and why 50/50 is often too expensive
Why he’s avoiding hillsides, bridges, and emotionally-driven deals
Thoughts on legacy, transitioning leadership, and “was today more fun than golf?”
Where to find him and how to partner responsibly
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Daniel Esteban Martinez
Podcaster/ Investor
Daniel is Podcaster, and land real estate investor with years of experience.
Steve Hodgdon
Notes, land, and old guy who has made lots of mistakes
68 years old. Entrepreneur since 1989. A "credit man" from the old days. Note buying, selling, Started Modern Asset Management in 2007 after exiting larger business selling to a VC group in 2005. Retirement wasn't right for me. Plus the GFC really hurt!
I'm very proud of our team. My partner finishes everything I start. We have great support, smart folks and great service attitude.
We built a strong underwriting machine and have written over 7000 loans. Pivoted to JV funding land investors in 2017. Now a virtual business with a partner and team of 6.
Turned over $15 million in purchase volume since 2020. On average, our deal partners keep 65% of profits. Faster sale = better split
While I'm looking for new JV partners and folks to help, I'm also here to share mistakes I've made.
I just returned from an 11 day drive looking at problem acquisitions. All the usual suspects. Slope, wet, bad access. But also some learnings about local markets and the importance of good partners
