Why We Can Afford to Give Land Away Every Month (CFFL 0045)
Jack Butala: Why We Can Afford to Give Land Away Every Month. 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: Hey, this is Jack Butala for Land Academy. Welcome to our Cash Flow From Land show. In this episode Jill and I share the story behind why we can afford to give away a piece of property every single month a piece of land. It’s really no secret. It’s just because the math works and we can buy it so inexpensively. Jill we ran a ton of promos and tested a bunch of stuff probably a year ago, and this one just seemed to be the most popular promotional tool that we … Well it stuck around.
Jill DeWit: Right.
Jack Butala: Why do you think it’s so popular? Please tell me why you think this works so well?
Jill DeWit: So many reasons. It directly relates A, to what we do. And B, let me think. Would I rather have a quarter acre piece of property? Somewhere where I can drive right up to it or would I rather have an iPad?
Jack Butala: Is somebody giving away an iPad?
Jill DeWit: Some people use … People, I don’t know if they still do, but I know people that have given away things like that as a promotional item. I’m like what am I going to do with an iPad?
Jack Butala: I own a ton of property. I’d rather have the iPad.
Jill DeWit: What? I’ll buy you an iPad. Goodness, Steve.
Jack Butala: This is now at a great time to say every single month Jill and I give away a property.
Jill DeWit: Yes we do.
Jack Butala: It’s incredibly simple. She’s going to actually announce the …
Jill DeWit: I’m going to announce the winner.
Jack Butala: Last month’s winner. Or is it this month?
Jill DeWit: It was for November. It’s at the end of every, from the whole … Do you want to give the rules?
Jack Butala: Sure. You can if you want.
Jill DeWit: Okay. Just every month we have committed to giving away a free piece of property. You do not have to be a Land Academy member. You do not have to be signed up anywhere special. You only have to do two things. One, download our free ebook. As Steven says you don’t even have to read it.
Jack Butala: You’ll read it though.
Jill DeWit: You will read it. You’ll want to read it. You’ll want to know how we can give property away because you’re going to want to do this. It is funny. The second condition is you need to go and rate our iTunes show. Just any rating.
Jack Butala: Rate this show.
Jill DeWit: Rate this show. The Cash Flow From Land show in iTunes. If I can’t tell, by the way, who your name is, if you have your funky jam 7 or whatever. I don’t know where I got it. Let’s just say I’m not going to know who Funky Jam 7 is. Send me an email so I know who that is. Jill@landacademy.com. Hey I just rated the show. I’m Funky Jam 7. For this month’s drawing here’s who I am.
Jack Butala: Here’s the interesting thing, there’s probably 20 people that have rated the show so far.
Jill DeWit: Yes.
Jack Butala: It’s pretty new.
Jill DeWit: Yes.
Jack Butala: Next month let’s say there’s 30 or 40. There’s like a 1 in 20 chance that you’re going to win this property. It’s not like an iPad where 17,000 people enter like a Pepsi contest.
Jill DeWit: Right. At the end of every month we get everything together and we announce it on the middle of the month of who won last month’s. Are you ready? Drum roll.
Jack Butala: Go ahead.
Jill DeWit: The winner is Eric Held. Eric is not a member or anything. He rated our show. He loves our show. A regular listener. Eric, you’re going to get an email from my staff in the next couple of days asking how you want to have your property transferred.
Jack Butala: He’s probably going to say something like thanks for the property and don’t ever use my last name on air again.
Jill DeWit: No, silly. There’s probably, no.
Jack Butala: It’s all good.
Jill DeWit: It’s all good.
Jack Butala: Is that the first time you, you haven’t even contacted him at all?
Jill DeWit: No not yet. I’m hoping he’s listening in his car and he doesn’t have a like … That was our first big announcement.
Jack Butala: How can we afford to do this? If you have listened to even probably 1 or 2 episodes of the show with Jill and I here, we are in the business of making tons and tons of offers for unwanted rural vacant land for next to nothing. Tons of offers for 1, 2, 3, $400, $500 or higher acreage it goes up. We’ve made a living since the 90s of buying unwanted raw land for next to nothing and selling it from the internet.
Jill DeWit: The big picture is it’s not worth that. It’s worth more, but we’re just reaching out to the right people at the right time that just want to get rid of it. Like me and my dumb car.
Jack Butala: No, not the car again.
Jill DeWit: Okay. Like we talked about the convenience store or the yard sale. There’s times that you’re reaching out to people and they just want it off their lawn. It’s like a yard sale. They feel good about it. They’re really over it. They’re not trying to maximize the price. That’s it. We’re buying valuable property at way under wholesale.
Jack Butala: What’s the number one question we get, I get every single week? What? I don’t believe you. I don’t believe I can go buy a piece of property for $100.
Jill DeWit: It’s true.
Jack Butala: I have continually over the last 2 decades come up with interesting ways to answer that question. The fact is we’re reaching the right people, just like you said.
Jill DeWit: Right.
Jack Butala: Making it real easy for them to just get out of that whole thing.
Jill DeWit: That’s part of it. When you think about it we are incurring all the costs as well. They’re going to net a decent price and they don’t have to go anywhere. They don’t have to do anything. It’s a valuable thing that we’re doing. We’re doing all the paperwork. We’re sending the notary to them. I’m paying for that. I’m recording it. There’s value there also.
Jack Butala: The vast majority of the people that we buy property from thank us.
Jill DeWit: Yes.
Jack Butala: If not all of them by the time Jill gets done with them. It’s hard to explain to somebody who’s new at this. They think that I’ve heard it all. There are a small segment of people out there who think that we’re in the business of taking advantage of people. Nobody’s putting any guns to anybody’s head about doing a real estate deal. Throw the offer away if you want. A huge number accept it and they thank us and say I didn’t know what else to do.
Jill DeWit: That’s very true. You’re right, that’s a good thing. There’s plenty of times that people say gosh, I’m sorry. It just doesn’t work for me. I say okay. That’s okay. I wish you all the best. If anything changes please let me know. It’s very respectful and polite and that’s okay. It happens. I was going to bring up my car again. I’m sorry. It’s just such a good example because it’s so current right now. The guy that made me an offer and I said, “Thank you but no thank you”.
Jack Butala: What a racket. So this is what happened with Jill’s car. She’s got an almost vintage little Porche that it’s on it’s last legs. She took it to the mechanic. The mechanic said it’s got all this stuff that it needs. It just occurred to me that this mechanic could’ve made this stuff up.
Jill DeWit: Right. Although the check engine light is on.
Jack Butala: Did that occur to you?
Jill DeWit: No. I believe him.
Jack Butala: I think they’re pretty reputable too.
Jill DeWit: It’s not a run off.
Jack Butala: What a business model. Diagnose a huge problem with a car and then make an offer for 1/10 of what it’s worth.
Jill DeWit: You know there is a business model. I sure hope his brother has a used car lot. Seriously, because there you go.
Jack Butala: You’re not going to sell to the guy right?
Jill DeWit: No.
Jack Butala: Okay.
Jill DeWit: No, it’s not anywhere, if it was anywhere in the range I was thinking I absolutely would because then I wouldn’t even have to go pick it up. In this case, no. There’s a great business model there.
Jack Butala: Right. It’s ridiculously dishonest.
Jill DeWit: No, you don’t make it up. You’re legitimate. You just know what you’re getting into. You’re legitimate. It’s interesting, I knew a used …
Jack Butala: I bet a certain percentage, I don’t mean to interrupt you, but certain percentage of people would just say yeah.
Jill DeWit: Absolutely.
Jack Butala: I don’t want to come, get the car anymore.
Jill DeWit: They’re just done with it.
Jack Butala: Yeah.
Jill DeWit: It’s kind of like us. What if you taxes are so high. We talked about that too. Do I want to write a check to $1,000 right now to get my car fixed? This is the real truth.
Jack Butala: It’s just like our business model.
Jill DeWit: Here we go. It is. I can write a $1,000 check right now and I can get my check engine light off and be rolling for a little while. A little while something else is going to happen by the way. Like you’re going to get another tax bill. Same thing. Or I can get money for it.
Jack Butala: With that specific problem with that car you’re going to get another bill next month that’s more than that.
Jill DeWit: Exactly.
Jack Butala: It’s just like real estate. The owner’s staring at the mailbox looking a tax bill, property tax bill every year saying, “Am I going to write a check for this tax amount on this property I’m never going to use and never going to go see? Or am I going to get a check from Steve and Jill to sell the property and I don’t have to do anything? Somebody literally shows up at my door with documents and a cashier’s check?”
Jill DeWit: Right.
Jack Butala: It’s not a hard decision to make.
Jill DeWit: It’s not a hard decision to make.
Jack Butala: It’s not. It’s no wonder that we get the response rate that we get, which is pretty high. Between 5% and 25% of the letters we send out. That’s how we can afford to do this. We’re not paying a ton for the property. Is it worth a lot more than that? Yeah.
Jill DeWit: Or I wouldn’t have bought it.
Jack Butala: That’s right. We don’t make offers on property we don’t think is valuable.
Jill DeWit: Exactly.
Jack Butala: We did a show on that. We did a whole show on property we will never purchase no matter how cheap it is, no matter if they’re giving it away. That all has to do with, absolutely no access or on the side of a cliff or something.
Jill DeWit: I had a really good discussion exactly on those lines last week with a gentleman about that. He wanted to know my take on it. He has heard from a lot of people and he didn’t agree, that have said that you buy every property for the right price. When he asked me the question he was pleasantly surprised when I said, “No. I’m not going to buy every property. There’s some I’m going to pass on regardless of the price.” He was just like ah, thank you for being honest and thank you for saying that. He agreed, there’s plenty of properties I don’t want to get stuck with.
Jack Butala: There’s a transaction that I used to keep. It’s gone now, but I used to keep it in our acquisition queue at the bottom.
Jill DeWit: Was it a cemetery?
Jack Butala: I bought a cemetery out of accident one time. It’s a totally different topic.
Jill DeWit: Thank you.
Jack Butala: No, this property, anybody who … I kept it there for our staff to kind of like just to teach a simple lesson. It was a ton of properties, all adjacent to each other in Southern California. It was like 2 or 300 acres. They were all cut up into like … It was great. It was a great deal until you look at it, until you actually look at the maps and see that there is absolutely no access to this property.
Jill DeWit: It’s just a mess.
Jack Butala: It was like $3,000.
Jill DeWit: Oh okay.
Jack Butala: I think that was the amount of back taxes. The guy just wanted to give it to us.
Jill DeWit: No wonder.
Jack Butala: I took it out probably a couple of years ago. It was distracting. It was a master distraction. There’s a time a long time ago that, and this person is long gone, but they would work … I would turn a deal like that down and they’d go behind my back and go get it.
Jill DeWit: Really? But would they make any money off it?
Jack Butala: Yeah. You lie.
Jill DeWit: Oh.
Jack Butala: You just go lie, you sell it and say it’s the greatest piece of property. It’s stuff we don’t do.
Jill DeWit: That’s bad.
Jack Butala: This theoretical mechanic thing.
Jill DeWit: That’s bad. I mean that’s kind of why I trust the guy. Come on, let’s be honest. If he was making it all up eventually his days are numbered. Someone’s going to call him on it and he’s not going to be around.
Jack Butala: And that’s what happened.
Jill DeWit: It’s not like he’s young.
Jack Butala: That’s exactly what happened Jill. You know it.
Jill DeWit: There you go.
Jack Butala: If we were doing something wrong or silly or it this didn’t work, first of all we couldn’t give a piece of property away every month.
Jill DeWit: True.
Jack Butala: We’d be out of business. But if we were doing any of that stuff we wouldn’t have the trust that we’ve established. We’ve done 15,000 deals. We’ve established the trust.
Jill DeWit: Almost 16,000 now.
Jack Butala: Yeah, maybe 16.
Jill DeWit: You’re right. In all the years of … The customers over the years, the repeat customers over the years, that says a lot.
Jack Butala: You know, this guy, this is sad, but he passed away, a former employee. I never talked about this.
Jill DeWit: No. This is new to me.
Jack Butala: It was long before you. A person that I haven’t spoken with in a long time just emailed and said hey. They sent me the obituary.
Jill DeWit: That’s sad. Why would he not come? Well I … It was dishonest because he was selling it as something it wasn’t. If there was a deal that I passed on and somebody in my office said, “Do you mind if I have a go at it?” I’d say, “Not with my money, but thank you for being honest. And you’d better do it right or you’re not going to work for me cause I don’t want my name out there.”
Jack Butala: If he would’ve come to me and said, “Hey if you’re not going to do this deal I’ll do it.”
Jill DeWit: Right.
Jack Butala: I would’ve said yes.
Jill DeWit: That’s what I’m saying. Be up front and honest about it and don’t go marketing it the wrong way. Don’t use what I’ve taught you and be dishonest. That’s not cool.
Jack Butala: That’s another reason we teach all this stuff so you can, even if that situation, if you obviously you educate people, your customers, about how to buy these properties. Here’s the APN or the assessor’s parcel number. Here’s a map of the property. Here’s pictures of the area or pictures of the lot. If you’re staring at a map that’s got no access at all like Google Earth map, you can’t get away with that for very long. Just tell the truth.
Jill DeWit: That’s another good point. I think another reason that we have the customers that we have, and they come to us. I’ve had customers that have latched on to us, our company and me, just because of me and my helpfulness. I don’t want that property.
Jack Butala: You have customers that have latched onto you Jill?
Jill DeWit: It says a lot. Not literally.
Jack Butala: I just kind [crosstalk 00:14:49] of like Snow White dancing around with birds singing and stuff and landing on her head
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