No Chance to Overpay when you Buy Land Our Way
Jack Butala: No Chance to Overpay when you Buy Land Our Way. Every single month we give away a property for free. It’s super simple to qualify. Two simple steps. Leave us your feedback for this podcast on iTunes and number two, get the free ebook at landacademy.com, you don’t even have to read it. Thanks for listening.
Jack Butala: This is Jack Butala for Land Academy. Welcome to our cash flow from land show. In this episode Jill and I discuss why there is no chance you will pay too much when you buy property or land our way.
Let’s get into the details on this interesting topic. Jill, it sounds like a fun show.
Jill DeWit: Yeah.
Jack Butala: Let’s see … Let’s see if we can come out of the chute here with a bang. What deals are you working on right now? Tell us why I’m sure you’re not paying too much. You of all people.
Jill DeWit: That’s right.
Jack Butala: Then we’ll get into the secrets later about how exactly to do it.he
Jill DeWit: Well, that’s the whole … This whole topic and this whole show is why we are successful period.
Jack Butala: Well said.
Jill DeWit: We preach it all the time. You win when you buy it. We’re not messing around. We didn’t make it up. I’m sure the people use that term and it’s a hundred percent true. If you buy it wrong, and you over pay, it’s really hard to recover. When you buy it right, like we do, and we help, and we coach, and we teach, you can not go wrong.
Jack Butala: What do you buy?
Jill DeWit: Right now … Well, I’m still … I’m working on these two forties right now. I need to call the gal back right and I will as soon as we’re done with this.
Jack Butala: Forties are what we call forty acre properties.
Jill DeWit: Right. Two forty acre properties in … Don’t mind sharing any of the details?
Jack Butala: Northern Arizona is good.
Jill DeWit: That’s all I was going to [crosstalk 00:01:16] say.
Jack Butala: I’m in love with these properties. I looked them up. I saw them in the filing system, and I hoped you’d bring them up because I … I saw them in acquisition que, and here’s a secret: I adore forty acre properties. They’re my favorite.
Jill DeWit: I do also. Really easy to market and sell. People love them. It’s not huge-big, but it’s a nice size. I can usually price them where a lot of people can afford them. It’s a great thing.
Jack Butala: To this day I go into that acquisition file sometimes in the acquisition que, and I just look up properties …
Jill DeWit: Just kind of snoop around? [crosstalk 00:01:56]
Jack Butala: I get into a lot of trouble for going into your office with you and your staff and saying, “We got to get this one done,” so I don’t do it anymore, but-
Jill DeWit: Yes, thank you.
Jack Butala: -I just still get … I still get a rise out of-
Jill DeWit: I know you do.
Jack Butala: -the whole acquisition process. I still do.
Jill DeWit: We’re talking about it right now, aren’t we? You were obviously snooping around, doing it anyway, and you’re bringing it up just to make sure I’m going to close a deal. Yes, Steven, I’m going to close that deal.
Jack Butala: They both have access. That’s what I was checking for. They both have access, and they both have really nice mountain views. One of them … Actually both of them have adjacent ranches. It’s a ranch, it’s not just a forty acre vacant piece of property.
Jill DeWit: Well, not only that, one of them is zoned vacant land, if you saw that. And one of them’s zoned mobile home, which is nice because that just opens up more options for people. It doesn’t have to be site built, it’s clearly in the county description that you can roll something up on there. That’s just … It’s just nice because it gives another option for people.
Jack Butala: I think we should … I’ve done this in the past, maybe put a mobile lot right on there. Not an expensive one, but just buy one off of Craigslist, drop it down, and say, “Look,-
Jill DeWit: “Here it is. Have fun.”
Jack Butala: -like we always do, we’ll just say, “Look, we know anything about this. We bought it out of Craigslist. We dropped it down on the thing. Nothing’s connected. Now, it’s not a vacant piece of property. It’s a house.”
Jill DeWit: That’s right.
Jack Butala: It’s a single family residence.
Jill DeWit: We just rolled it up and dropped it. It’s hilarious.
Jack Butala: I had this conver … I have to share this conversation.
Jill DeWit: Goodness.
Jack Butala: I had a conversation with one of our members last week and he was … He just had a bunch of questions about some stuff. He’s a licensed real estate agent. Very experienced owner guy, he’s really getting into the program. He was asking me, “Well, how do you assess these properties? I mean, what are you … To what extent do you find out the details of these properties?” This is how I answered his question. There’s a paragraph at the end of every posting and it goes like this, “We are in air-conditioned offices in Scottsdale, Arizona. We purchased this property, and all of our property, specifically to resell it as fast as we can. We know nothing about the property at all.”
Jill DeWit: Or just, “Everything that we know is in this listing. That’s it.”
Jack Butala: That’s it.
Jill DeWit: Yeah.
Jack Butala: Except for the fact that it’s probably the cheapest one out there, lifetime property. We know nothing.
Jill DeWit: Right. Exactly.
Jack Butala: I’m proud of that.
Jill DeWit: I am, also. Well, it’s part of [crosstalk 00:04:26] being transparent and upfront and honest. People do call me and they’ll go, “What do you know?” I’m like. “Hey, this is it. I haven’t been there.” They’re like, “Oh.” I’m like, “Knock yourselves out.” They’re like, “Okay.” Yeah. I’m just honest about it. I’m not going to make up something that’s not true. I really don’t know, and they appreciate that.
Jack Butala: What are you going … Where did you … For new listeners, I’m going to ask you a few questions about these forties.
Jill DeWit: Sure.
Jack Butala: How did you come about this acquisition opportunity?
Jill DeWit: My phone rang.
Jack Butala: It fell out of the sky?
Jill DeWit: It did. It did.
Jack Butala: My whole business motto just fell out of the sky.
Jill DeWit: It did.
Jack Butala: It was all accidental. We really don’t work at all.
Jill DeWit: Not at all.
Jack Butala: We just talk on the radio … In front of these mics all day.
Jill DeWit: Exactly. Some days it feels like that. No. It was from an acquisition … Well, it was from a letter back in 2007 where we offered $8000 for both of those properties. That’s eighty acres roughly for $8000, and she’s calling now saying, “Hey, it’s my mom’s. She’s still with us, by the way. We just want to cash out. Mom’s owned it for forty years. No one’s going to use it. We’ll take what you’re willing to give kind of thing.” She knows that it’s … That that 8000 number is probably not what I’m going to spend.
Jack Butala: What are you going to buy for it?
Jill DeWit: I don’t know. I’d like to buy it … You know what? If I do for $2500 each, anywhere between $2500 and $4000, I might even go up to the $8000 because they are really worth it-
Jack Butala: That’s what I think.
Jill DeWit: -that’s still not crazy, but you know? I’ll see. I was just going to say, one of our, I don’t know if you saw this in success [plant 00:06:13], but one of our members just paid … It was actually before he bought the program and he’s all excited now because he’s doing this deal while he’s going through our whole program. He paid $2800 for a property, and he’s selling it for $7000. He’s happy to have us now because he needed us as a resource to figure out, “Okay, now that I’ve got this great property, marketing it, and selling it, and closing the deal, and doing the deed, all of that information,” was what he was commenting on in our success plan-
Jack Butala: Is he having trouble?
Jill DeWit: -website. No. Well, not really trouble. He just doesn’t know what to do.
Jack Butala: Oh, okay.
Jill DeWit: Not like there’s a problem. He’s just kind of, “I don’t know what to do now.” He’s loving having us as a resource here right now at a timely moment to do this. He’s like, “Oh, my gosh. It’s almost like they are falling out of the sky,” the guy said. It’s hilarious.
Jack Butala: Wow, really?
Jill DeWit: Seriously.
Jack Butala: Did he say where?
Jill DeWit: I don’t recall that much information that I read about it. I don’t think he shared that much. It’s just fantastic that he’s doing these deals … These deals are happening while he’s getting through all the stuff, and it’s like … It’s going really quickly for him. Maybe a little too quickly that he was prepared for, which is great.
Jack Butala: I have to say this. All the answers are in the program.
Jill DeWit: I know they are. Well that’s what’s so cute. He’s [crosstalk 00:07:38] like, “Guys, I’m only half way through. Can you guys help me? Tell me what chapter I can find this because I need this right now.” It’s so funny. I’m like, “That’s awesome.” He’s like, “I know it’s in Steven and Jill’s program. I just haven’t got there yet. Can someone give me the tip of where it is?”
Jack Butala: That’s a huge compliment. In the free eBook, that first exercise I ask everybody to go through is that [inaudible 00:08:04] exercise where you post a “We buy vacant land” on a Craigslist wherever you want to buy property. Probably every week someone does that, and then they get like four hundred people’s links selling property.
Jill DeWit: Wow.
Jack Butala: They don’t know what to do.
Jill DeWit: Exactly. It’s really funny.
Jack Butala: Hey, I should mention on the air, because our producers said that no one’s getting this message, we give away a free property every single month. Every single month. All you have to do is two incredibly simple things. Download the free eBook. You don’t even have to read it. Just download it. And review this podcast on iTunes. You can give it one star if you want. I would give it five. Jill would probably give it two.
Jill DeWit: I’d give it eight.
Jack Butala: It doesn’t have to be anything crazy, but just go out there, review it, and you are automatically registered to win a free property. Who won the last one last week, or last month?
Jill DeWit: I have it written down. I think I know the person’s name, but I’m not a hundred percent sure.
Jack Butala: Oh, yeah. Okay.
Jill DeWit: I don’t want to say. I’m sorry. Thank you for reminding me because that announcement is coming.
Jack Butala: Okay. Good.
Jill DeWit: It is almost the middle of the month. We did our end of November drawing, and we do have a winner, and they will be very happy when they hear it. I will say it on the next show.
Jack Butala: Good. Back to the programming. What are you going to sell these properties for? Like how much?
Jill DeWit: Cash or terms?
Jack Butala: Yeah, that’s one we have to always talk about.
Jill DeWit: See, I might do one of each.
Jack Butala: That’s what I think we should do.
Jill DeWit: That’s kind of a safe bet because then it keeps my acquisition cash flow going when I sell them for cash quickly, then I’ve got more money to reinvest. Then I love building out more terms properties where I just get those payments coming in. I don’t even have to think about it. I might cash out … With those properties? $10000?
Jack Butala: Yeah.
Jill DeWit: I could cash out at $10000, and then for terms I could probably do, probably $12000 or $14000? I want to say. That’s not crazy for a forty acre property, and you’re paying, you know … They might pay me $1500 down and $199 a month for several years, and everybody would be very happy.
Jack Butala: Yeah. I would sell … Because of the access situation for both of those properties, I would probably sell them for about $22000 each.
Jill DeWit: You think more?
Jack Butala: Yeah. $1500 down, probably $100 to $200 a month. Probably $200 a month.
Jill DeWit: That’s what I say. More like the $199 a month or $197. That’s doable.
Jack Butala: Probably around twelve or thirteen years.
Jill DeWit: Mm-hmm (affirmative). What a good investment. This is so much better than a car payment, and I was going to make a funny car joke in a minute.
Jack Butala: I have a list of podcasts we’re going to do this week, and one of them is cash returns.
Jill DeWit: Okay.
Jack Butala: We can … Because I love cash.
Jill DeWit: Right.
Jack Butala: And I think you like terms.
Jill DeWit: Okay. I have to tell you this funny story. This morning I had to … Right? You know where I’m going.
Jack Butala: I do.
Jill DeWit: All right.
Jack Butala: I’m sorry for your loss.
Jill DeWit: Thank you. My sweet, little, green Porsche is on her last legs. Anyone who’s owned a Porsche or a car like that you can only drive it for so long, and then it all goes to … It’s a mess. I’m talking to the shop where I took it in to have it assessed, basically. I’m trying to think of a medical term. We’re having, you know what’s it called where you’re going in to see …
Jack Butala: A diagnosis.
Jill DeWit: A diagnosis. See how critical it is, and if we need to have surgery right now or if we can prolong the surgery.
Jack Butala: Insurance does not cover it.
Jill DeWit: I think we’re just going to have to put her down. Anyway, the guy and I were talking and I said, “Hey, you want to make me an offer?” Of course, he made his mechanic, ridiculous, low-ball offer for my sweet car named Olive because she’s green. I just hung up the phone going, “Yeah, no.” It was great because the first thing out of your mouth, Steven, was, “That’s what we do with land.”
Jack Butala: We do that all day.
Jill DeWit: I’m like, “You’re right.”
Jack Butala: What’s wrong with making a low-ball offer?
Jill DeWit: Exactly, because somebody just … You know what? With that guy, somebody in my situation, some … I bet a lot of people go, “All right, fine,” and they just take it. They’re like, “You know what? I’ll cash out. You can have it. I don’t have to do anything else.”
Jack Butala: You don’t even have to go pick it up.
Jill DeWit: I have to go pick it up.
Jack Butala: Did you take the offer?
Jill DeWit: No, I didn’t take the offer, because I know how this works, and I can make it better. I can double what he offered me.
Jack Butala: Oh, yeah.
Jill DeWit: See, that’s the thing. I know … You’re right. That gives me a really good idea what my car is worth based on what he’ll pay me, because if a mechanics going to pay me “X”, that means I can go out there and get it for double, and that’s in the condition it’s in.
Jack Butala: You know what? It’s just like our land deal for us, because if for whatever reason, like three weeks from now the car’s not sold, or you’re sick and tired of people on Craigslist or however we’re going to do it-
Jill DeWit: Right.
Jack Butala: -you know. You might just drive the thing back over there and say, “Show me the money.”
Jill DeWit: I was just going to finally leave the keys on it … At the corner.
Jack Butala: You know what he would do? It’s the same thing we do. “Oh, no, no, no. That’s not the price.”
Jill DeWit: Right.
Jack Butala: “That was the price three weeks ago.”
Jill DeWit: “I had time to think about it, and that’s not going to work now.” That’s funny. No, part of me wants to negotiate. There’s a part of me that goes, “Hmm, let me think about this.” It’s obviously worth something.
Jack Butala: You got me thinking now because I-
Jill DeWit: Oh, no.
Jack Butala: -I know what’s involved in doing this-
Jill DeWit: Oh, no.
Jack Butala: -this is what we do. This is-
Jill DeWit: My car?
Jack Butala: -what I’ve done my whole life. my whole life I buy a car … This little, green Porsche was no different. We found a perfect awesome situation that was an adult female owned Porsche for Jill. This was a lot of years ago, and she ran the heck out of it. It’s just over. You know? We could keep putting money into it, but you know? We’re going to sell it for probably, I’m just estimating, maybe four-five … What the heck are we talking about today?
Jill DeWit: I know.
Jack Butala: Is this car talk today?
Jill DeWit: This is car talk. Oh, no. It finally happened. We have [00:14:40]. Oh, that’s great.
Jack Butala: This is the way we do stuff because I, you know … We’re going to end up selling this car for probably [00:14:49]
No Chance to Overpay when you Buy Land Our Way
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