Buy Land for a Hundred Bucks-What’s the Catch? (CFFL 0048)
Buy Land for a Hundred Bucks-What’s the Catch?
Jack Butala: Buy Land for a Hundred Bucks-What’s the Catch? 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 discuss the number one topic that gets asked about and discussed and addressed with our new land academy members. Is this for real or did you just get lucky flipping 15,000 properties?
Jill DeWit: I’m sorry. Yeah, I was just a 15,000 odd one offs.
Jack Butala: Do you ever get tired of addressing this?
Jill DeWit: No, because especially the way you worded it, that cracks me up. All right, I have to tell you I just-
Jack Butala: I do get a little tired of asking it.
Jill DeWit: Oh no, I think it’s great, because you know me, I drink the kool-aid, it’s really funny for me, but I got to tell you, I was in our master inventory spreadsheet updating some numbers the other day. Sold a property on eBay, it’s not our number one marketing tool, but it’s one of our marketing tools, and it’s interesting over the years, how pricing and things have changed with eBay, so it’s still a good tool, almost now for advertising. Anyway, my point is I sold one on eBay on Sunday night and I was really happy and impressed with the price that it went for, and I went back and I looked, and I went, “We bought that property for $51. I’m not kidding.”
Jack Butala: I know which property you’re talking about.
Jill DeWit: Right, and I went, “Wow.” Boy, that makes me feel good. It’s so funny because they’re not big numbers sometimes. I’m just selling, it’s not big for me, because I’m kind of jaded here because I’ve done some big numbers. It’s really good. Anyway, I only probably made how many times our profit, it’s in the hundreds of percentage profit, but anyway we bought it for $51, so can you buy things for $100 all the time? Yes you can. You sure can.
Jack Butala: We buy properties just so I can set this up properly, we buy properties for hundred dollars, five hundred dollars, a thousand bucks, a couple thousand, up to four grand usually, maybe sometimes a little bit more every single week.
Jill DeWit: Yep.
Jack Butala: We send out a bunch of mail. We do it very, very strategically and intelligently up front and consistently, and people send their offers back to us signed, and so we buy five acres for $500. What’s interesting about that one deal that you brought up is that was one property and I know that deal intimately. It was 1100 property acquisition, which is why the price was so low, and we sell them for what, $900, $1,000, or some numbers around there very, very consistently. When that deal’s done, probably will never be done, we will have cleared, I figure about a million and a half bucks, just in that one deal.
Jill DeWit: You mean that deal won’t be done because there’s so many properties that were a part of that.
Jack Butala: Yeah. It’s just endless.
Jill DeWit: Exactly. We just leak them out now and then. It’s just a nice little thing.
Jack Butala: Right.
Jill DeWit: Yeah. It’s fantastic.
Jack Butala: Are we special that we can do this? No. Anybody can send these letters out, which is what land academy’s all about. We have many, many, many people that’s in successplan.com. Please go there and check it all out for yourself. There are normal, regular members that are doing it day in and day out.
Jill DeWit: Yes.
Jack Butala: They’re doing it at whatever level they’re comfortable at. A couple on Sunday, doing it full time, some are in there to make this their career like we did, so it’s any version of that, but what’s the catch? There’s no catch.
Jill DeWit: It’s great. One of my favorite things is when I’m looking, you just mentioned our website success plan where it’s free for now where everyone can sign in, and log in, and participate, and kind of see what our members are doing, but I love the, it’s like the Christmas surprise in their posts. If I could see their face, that’s what it would look like where they’re like, “Oh my gosh. I just did it.”
Jack Butala: Yeah. I’m getting calls back on my mailers.
Jill DeWit: “I just paid $500,” and then they’re a little bit nervous, and they’re like, “I just sold it for $4,000.” They’re almost looking like, “I didn’t know this was,” we’re like, “We’ve been telling you this whole time it’s true.” Then they do one and they still kind of can’t believe it. It’s kind of like pinch me. I’m like, “Yeah. Now do it again, and do it again, and do it again.” They’re like, “Okay, I got this.” It’s true.
Jack Butala: Is there any catch Jill? Is there something negative about this that … Is there anything negative about this, or is there any way that it wouldn’t work?
Jill DeWit: Hold please while I think. No. No. Especially with you and I behind them, no. I mean, what you and I have done and how detailed we have laid out a road map, unless you overpay and don’t follow something. You really can’t. If you follow our guidance, you won’t go wrong.
Jack Butala: Yeah. That’s a perfect point, because most of the people that are the very skeptical, and I would be skeptical too, the most people they’ve flipped a couple houses or they’ve renovated houses, or they’ve done something along those lines, and it just didn’t turn out the way that they thought. It cost more to renovate it than they thought, they went out and they went off budget, or they didn’t sell it for the amount that they thought they were actually going to sell it for. They sold it for less so they made less money for whatever reason. That’s virtually impossible to do with this program. I’m not sitting here hacking the program. I’m just telling the truth. We say, send out a bunch of letters to these specific types of landowners, and we’ve identified them as they don’t want the property anymore for a lot of reasons. If you want to send a lot of letters out asking to buy their property for $8,000 each, you’re going to fail.
Jill DeWit: Right.
Jack Butala: If you want to send them out for $100 or $500 or $800, depending on the property, you’re going to succeed, because over here at the exact same time, I can show you where they’re all being sold for the same price, sold for double your money price.
Jill DeWit: Right.
Jack Butala: The catch is you just have to follow the instructions and kind of make a commitment.
Jill DeWit: Mm-hmm (affirmative). That’s it.
Jack Butala: Wow, that was a short podcast.
Jill DeWit: Okay, let’s go. No. No, it’s great though. It’s funny, even we don’t often when we’re out having fun, talk about what we do, but now and then someone will ask us and it’s interesting the look on their face if they ask that question, “How are you doing that?” I’m like, “It’s not hard.”
Jack Butala: Even when we do get into it, I only tell people socially tell people what we do, if I know them pretty well, and even those people are like, “Okay great, so you got lucky a few times.”
Jill DeWit: Exactly.
Jack Butala: They just don’t believe it.
Jill DeWit: Remember that time we were at a friend’s house at a yard sale and we had a big yard sale with a bunch of friends. It was really kind of a get together. It was just a neat thing. When I say yard sale, I say charity, because you give things away, but anyway it was a early Saturday morning, and I happened to be closing a deal. I don’t know if you remember that. I was getting a couple phone calls from, I can’t remember what the property, but it was multiple acres and you and I were having little side conversations, and I know our friends were looking at us like, “What are you doing and what are you buying that for?” Steven, I remember in the background saying, “Watch this. Watch Jill. This is going to go great,” and it did. It was perfect, and they couldn’t … They’re watching it happen. They’re watching me go back and forth with the phone conversation, they’re hearing our transactions, and I’m like, “Okay, it’s all done and I’m going to have all the stuff drawn, it’s going to happen on Tuesday,” and they’re kind of scratching their heads going, “Wow.” I’m like, “Yeah, it’s not hard everybody.”
Jack Butala: Everybody think real estate’s so complicated.
Jill DeWit: Right.
Jack Butala: You know what’s complicated? Renovating a house.
Jill DeWit: Oh. How about rewiring when you open up the wall?
Jack Butala: It’s really easy to buy a piece of land and sell it for more.
Jill DeWit: Right, and you don’t have to do anything.
Jack Butala: Honestly, it’s easy to buy an apartment building and sell it for more. What’s really hard is buying a house and renovating it. Of all the genre’s in real estate that you can choose, that one is set up to fail the most, and it’s also the most popular.
Jill DeWit: Do you know what’s interesting? I was just thinking about your examples. Have you ever known someone, I’ve known people that did this, that have gone to car auctions and have picked up cars at an auction and resold them for more money? Even what we do is easier than that.
Jack Butala: Yes. I agree, because you don’t have to touch it.
Jill DeWit: Right, and you pick up this car at this auction, you get it home, it’s kind of like you were talking about like a house thing, you don’t know, all of a sudden it stops running, or now all of a sudden the check engine light comes on, or who knows what, and you think you got a great deal, and now you got to do something to it. You thought you bought this at an auction seriously.
Jack Butala: Cars are a big topic this week for us.
Jill DeWit: It is. I’m just saying.
Jack Butala: Jill’s Porsche blew up.
Jill DeWit: I know people, I knew a girl that did this as a side business, and I remember going, “Wow,” it was her and her dad, and they would go pick up these cars at an auction and then they would turn around and sell them on Craigslist or something and make a grand, but it wasn’t always that easy, and it didn’t always go that smooth, and having the title done, and have emissions, there’s more points of failure I think than our business model.
Jack Butala: Yeah. Lots of moving parts, that’s what I say. With land we really do buy it for a few hundred bucks, multiple units a week.
Jill DeWit: Exactly. I think the biggest thing for us is just wrapping your head around the fact that there are a lot of people out there that have unwanted properties. There are a ton.
Jack Butala: Yeah. Hey, speaking of cheap property, we give away a property every single month.
Jill DeWit: We do.
Jack Butala: All you have to do is go to iTunes and rate our show, and also go to our website, landacademy.com and download the free eBook. You can rate our show one star if you want, and you can download the eBook and throw it away, and it registers you to win a free property. Here’s the numbers, there’s probably 30 or 40, maybe 20 or 30 people that have rated our show on iTunes, so if you’re the person, I guess what I’m saying is next month, you probably have like a 1 in 30, 1 in 40 chance of winning a property.
Jill DeWit: Yep.
Jack Butala: How can we give it away so cheap? Because we just buy it so cheap.
Jill DeWit: Exactly. Another thing about how we do this is we make it really easy for everyone on the buy side and the sell side. I work really hard at making it easy, and once you know what you’re doing and you understand it, it is that easy.
Jack Butala: There’s a few places that I’ve seen people get hung up and it really sidetracked them for getting the wrong data. I’ve had members, actually our top 5% performing members, most of them have said, “Man, I didn’t know that all this data was so bad until you showed me where to get the right data.”
Jill DeWit: Oh yes.
Jack Butala: That’s a big, that’s something we maybe take for granted.
Jill DeWit: I think you’re right.
Jack Butala: You can’t skimp on data. It’s not the cheapest data, but it’s correct.
Jill DeWit: It pays off. You know, that’s one of those things, sometimes you have to look at it, it is kind of a cost of doing business, but it pays off. One deal takes care of your data every month.
Jack Butala: Here’s another place I’ve seen a lot of failure, not with our members, but a lot of members come to us and we’re last. They went through another program or they went through to a competitor, or they flipped a bunch of houses and it didn’t work, or whatever, but for some reason, they seem to have a little bit of experience and I’ve heard many stories on success plan about sending out postcards and sending out colored letters and stuff. We don’t do that. We send out offers with real numbers in there.
Jill DeWit: Exactly, with a date.
Jack Butala: Sending out a thousand postcards, even if the best data in the world, what that will instigate is a massive amount of phone calls where people just want to talk to you for a couple hours.
Jill DeWit: Right, and they don’t even know what you’re offering, so you don’t even know if you’re in the ballpark or not.
Jack Butala: Yeah. What you want is someone to send you your offer back signed, and then just to give them a call and say, “Great. We’re going to close the deal on Thursday.”
Jill DeWit: Right.
Jack Butala: Then move onto the next offer.
Jill DeWit: Exactly.
Jack Butala: Where else have you seen people make mistakes at by the time they get to us?
Jill DeWit: You know, I’m glad you asked this. I was watching it a little bit this week. Sometimes people, I don’t know if it’s human nature or what, I almost think they’re looking for things.
Jack Butala: That’s what I think Jill.
Jill DeWit: I’m like, “What the heck?” There’s a little bit of a, “I need to …,” they find some deals and they almost try to find a problem in the deals, like it’s in Betty’s name and Betty lives over here and Sally lives over here. That’s not a problem. We can figure this out. Does that make sense? They’re almost looking for some things, and almost creating their own roadblocks and going, “I can’t figure this out. I can’t possible do this.” Yeah you can.
Jack Butala: This is just like anything else. There’s super, super simple deals that you do all the time, and then there’s some stuff that requires a little bit more intention, and in fact we address that in all of our programs. The ones that require a little bit more attention, if you’re super brand new, pass them off.
Jill DeWit: Totally.
Jack Butala: You need to learn how to do it properly and easily, so you don’t get discouraged, but yeah what you’re referring to is multiple ownership in one property and in multiple states. All you’re doing is sending two notaries out to a different state simultaneously.
Jill DeWit: Yeah, it’s not hard.
Jack Butala: You just got to get through it.
Jill DeWit: It’s not hard at all.
Jack Butala: That’s not the reason that it’s cheap. That’s another thing I see all the time. “Well if it’s so cheap, there’s something wrong with it.”
Jill DeWit: Oh, that’s funny. That’s really funny. I do like that.
Jack Butala: It’s not. There’s nothing wrong with it.
Jill DeWit: No.
Jack Butala: It’s just not wanted any longer, like a garage sale.
Jill DeWit: Exactly.
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