Does This Work in Every Single State? (CFFL 50.1)
Does This Work in Every Single State?
Jack Butala: Does this work in every single state? 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 talks about a question she receives almost everyday and I’ll tell you I get it a lot too. Does this work in every single state? I bet I know the answer.
Jill DeWit: Yes. Really? Why do you say that?
Jack Butala: As always. No, yes some version of this works in every single state but as we directly teach it it works better in certain areas that have some attributes that I think we’ll get into in a second. You think it categorily works in every single state?
Jill DeWit: Yes. Like you said, some version of it.
Jack Butala: Oh okay, so we’re saying the same thing.
Jill DeWit: We are.
Jack Butala: Even though we answered the question a little differently.
Jill DeWit: Right, but I think I know where you’re going with it which is what I do, is why waste time and energy, and resources in the states that it’s just too difficult and maybe because of it it’s not as profitable? I would choose to focus on the easy ones.
Jack Butala: I think it works. This program works in every single state. It’s just different dollar amounts. There’s just some states you can buy property for $500 in and there’s some states that you can buy … Then you sell it for whatever. 500 may sell for $1500 or $4,000 or $5,000 depending on how you do it. There’s some states that you’ve got to spend … These are usually east coast states, a little bit more than that but you mark it up just as much.
Jill DeWit: Oh my gosh. I got to tell you, this is a perfect example. I have an example, I was talking to a gentleman yesterday, a seller on the phone, he’s in New Jersey …
Jack Butala: I got copied on this email. I love this story.
Jill DeWit: We are talking about a 40 acre parsel out west here and I am trying to get a number out of him just so I have a starting point at how much money they’re looking at. It was funny because he said it not me, he said, “I do get it, I’m in New Jersey and prices for 40 acres out here … Heck prices for 2 acres in New Jersey are very different than out west in some of the more rural and open areas.” It was really funny, so I pushed him and his number was 5. I’m like, “Okay, I’m just making sure we’re on the same page because being in New Jersey $5,000. Being I New Jersey and you’ve got 40 acres we might be talking $5 million. It was $5,000. I’m like, “Okay, thank you.”
Jack Butala: I was actually going to tell a different story.
Jill DeWit: That’s what I can work with.
Jack Butala: There’s a guy that emailed us. I’m p
pretty sure you guys got the email. He said, “I did exactly what you told us to do in the free E-book. I posted this thing on Craigslist and I bought a property for $100,000. Optioned it out or sold it out of term for $380 or something like that.
Jill DeWit: Yeah. I did see that.
Jack Butala: I guess yo can just add two zeroes to the stuff we teach out west here.
Jill DeWit: That’s exactly-
Jack Butala: What were the terms of that? I think he …
Jill DeWit: I think it’s in success plan. He bought it for 100 and something-
Jack Butala: It was $103,000 and they sold it.
Jill DeWit: The valuation was … There’s financing involved.
Jack Butala: Right.
Jill DeWit: From my understanding-
Jack Butala: Evolution was like 180 and they sold it for a lot more than that.
Jill DeWit: There had to be an evolution involved. He sold it … Is it a terms deal? I’m trying to remember what the-
Jack Butala: Yeah.
Jill DeWit: Okay. Any way-
Jack Butala: Did he’s even purchase anything from us. He just got the free E-book. Tried the Craigslist-
Jill DeWit: Exactly.
Jack Butala: Exercise. I bet there’s a lot of people out there we don’t even know.
Jill DeWit: That’s very true. That there out there doing it on their own successfully.
Jack Butala: If you have received our E-book and has had success with it like many, many people have. We should do a show like that. We should have people call in and say, “Yeah I did it. I did this, this, and this and it worked.”
Jill DeWit: That’s great. I think that’s fantastic.
Jack Butala: I do too. It was designed to do that. Like Seth Williams said, “I think your alluded to a different show.” People purchase education because they don’t want to spend 3 years learning it on there own. If you want all the secrets up front. You go, “Yeah, you can do it yourself.” It’s going to take you about … I don’t know, two days instead of two years.
Jill DeWit: Hang on a moment. Let’s think about this. How long will it take everybody else to get to … I dot know, 15,000 transactions so they have all the experience we have? It could take a little time or you can learn from people that do have over 15,000 transactions. Might be a little bit easier. Hopefully that’s why they’re listening to our show. That’s good. I was thinking when I said, “I only do the good ones.” I try to pick … Not only do I only really want to work wit the states that are great and easy and fun and profitable. I look at transactions that way also. Sure, could I complete every transaction that comes my way? Heck yeah. Do I want to complete every transaction that comes my way? Oh, no. You know?
Jack Butala: That’s a great point. We’re at that point in our career. I don’t want to do this to you. I know we can make $30,000 on it. It’s just going to take too long and it’s too hard.
Jill DeWit: Here’s what’s interesting too. I’ve got one that actually on my desk right now that is … This doesn’t come off at all but it’s that good of a deal. It’s worth me spending $800 and going through Escrow and getting title insurance and doing it that way. It’s that good of a deal. I’m still going to pay for it and do that.
Jack Butala: When we say complicated transactions. What we mean it, it’s owned by multiple family members or multiple LLCs in different states. There’s lots of stuff that goes on.
Jill DeWit: There might be trust involved-
Jack Butala: Escrow agents deal with this stuff everyday. That’s a great reason to take our transaction types in Escrow and spend the time and energy on it.
Jill DeWit: Most of the time we don’t need to. It’s really great and it’s really easy for us now and easy for us to teach. How to take when you have just one buyer and one seller. How to do the deal and how to get it recorded. Then how to turn around and sell it and all of that.
Jack Butala: Another thing is too is that we’re just use to some of the states that we work in. We’re very well established A list of buyers out here out west.
Jill DeWit: That’s very true.
Jack Butala: Here’s my question to you. Let’s say you’re just starting out and you live in Atlanta. You think Georgia’s a great place to do this. Florida or Alabama. Neighboring states around that area. How long will it take you to develop a pretty credible A list of buyers that would step up pretty much every time you buy a piece of property?
Jill DeWit: Not long because I’ve known from you how to do it. I know from you where to go and get them. I know for you to look around and find who owns a lot of property in the areas that I’m looking at doing. Maybe I’m going to do a lot of research on the internet. It’s not hard to go online. Look at similar properties. See who has stuff for sale and figure out who owns multiple units of that kind. That’s my list.
Jack Butala: In two weeks I bet you and I, if we spent maybe two hours a day. We can have an A list … Not an A list but a list of buyers, a pool of buyers. Potential buyers. In the thousands and their email addresses and all their contact information and the whole thing without spending any money.
Jill DeWit: Exactly because-
Jack Butala: Not even a dollar.
Jill DeWit: It’s all there because they have property in the area for sale. Guess what? There’s all their contact information. I can see John Smith owns 20 of these. On there’s John Smith’s phone number and email address. There you go.
Jack Butala: I wrote a blog on this topic. I got an email … It was long time ago about how to build a list of buyers up. I got this gathering response in bigger pockets from this guy who said-
Jill DeWit: Really?
Jack Butala: Yeah, and his whole point was … You know what? The next time I writ a blog on this topic, I’m going to adjust it based on what he says. Which is not typical for me. Usually I have a message for people like that. Not this case because he’s kind of right. What if you don’t take ownership? There’s a huge pool of buyers specifically for houses not for land. They just don’t take the ownership. They-
Jill DeWit: Like a double ended close kind of thing?
Jack Butala: Yeah. My answers after I got over being left from my face got red with anger. I started thinking, “This guys right.”
Jill DeWit: Meaning, don’t even go … Meaning in a good way or not a good way?
Jack Butala: He’s right in a good way. Our way is awesome. It always has been and it’s worked fresh for years and years. Ed has way to that.
Jill DeWit: That’s true.
Jack Butala: In a way to do it is to go out on Craigslist and start collecting people who flip stuff. Get their phone numbers and all of that and add them to the list.
Jill DeWit: Very true.
Jack Butala: A lot of people don’t take tittle.
Jill DeWit: It’s true.
Jack Butala: By the way that’s was not ethical or legal for a long time. It’s come back now that it’s okay to do it. Dual Escrow when it’s called.
Jill DeWit: Right.
Jack Butala: We’re getting a little off topic here but it works in any state.
Jill DeWit: You know, I have seen that. I know people that do that. It’s like a … We’re big fans of buying it out right and owning it. Other people that’s like basically … It’s a version of getting a commission because you’re bringing the deal to somebody. That’s not a bad way to get started too. If you’re going out there and you’re doing … Using our way of having … Maybe your using our way of having these deals come to you and you don’t have the money to do it. We even do that with some of our members where we say, “Come to us. We’ll do the deal and almost you get a cut.” That’s kind of thing.
Jack Butala: Let me take a minute and explain it for anyone who does … The tree listeners who don’t know. You find a seller. The whole key to real estate if you’ve read any of our blogs or mine specifically. The whole key to success in real estate. This goes from Donald Trump type skyscrapers down to Sally Duplex. The whole key to successful real estate investing is to find under valued property. You’re not going to find it in MLS. If you have no money at all. The first thing you need to do is get educated and start finding under valued property. That might be apartments. It might be houses.
It might be land like we do. Land and houses. Once you’ve established the sellers ready to sell a property for what you think is an under valued amount of money. You align yourself with people like us who do have the money to close the deal. The expertise and you’ve established some trust with them. At that point were you have a willing seller and a partner that you want to By this with. That’s got a lot of money. That’s when there’s several different ways you can complete the transaction. Some of them don’t involve that money guy taking money at all. Certainly you don’t take title at all. You can call it a dual escrow. You can call it an alignment. There’s all kinds of ways to do it.
Jill DeWit: Exactly.
Jack Butala: There all out there. They’re advertising.
Jill DeWit: Oh my gosh.
Jack Butala: Advertising for you to put them in your data base. You know what? I’m going to share this sentence that I’ve shared in the past. I haven’t used it in a lot of years. When I was starting out. It was hard for me to get their attention. They just didn’t take me seriously. This is what I say, “I have a property … I have a fantastic buy.” I’m talking to a seller, “The price is half of probably what the market would bare on this property. I don’t have the money but I don’t want this to go to waste. Can you please take a look at it and maybe we can make some money together.” I have never said that sentence and got it to the right person and not gotten a call back. This is how you don’t do that. “I have a seller who wants to sell their property and I’m not sure what to do. This is my first time and I’m hungry and I don’t know what to do.”
Jill DeWit: “I don’t think I could qualify on my own.”
Jack Butala: “I don’t have any confidence.”
Jill DeWit: “My credit score is low”
Jack Butala: “My sister’s ugly.”
Jill DeWit: “I’m barley making rent.”
Jack Butala: Call a guy and say, “I don’t have the cash. I thought I did. I want to do the deal with you.” They will call you back.
Jill DeWit: It’s all good. You and I talk about this often. I don’t understand why that’s not general knowledge but … There’s a ton of money out there everyone. There’s really no shortage of investors. If you think there is, you’re looking in the wrong place. There’s a ton of people out there that are looking for deals. They would love for you to present deals just like you said.
Jack Butala: Exactly Jill. Well said. I always say there’s more money than talent.
Jill DeWit: That’s for sure. Oh my goodness. It’s amazing to me that people that have come to us … What’s interesting is there’s so much money out there. People who are not necessarily real estate professionals and into this industry at all. They just have money to invest. The number of people that have come to us and said, “I’m hearing about your numbers. How can you help me?” Kind of thing. They just out of the blue knock on our door sometimes for help with it.
Jack Butala: I’m going to real off a bunch of states and you tell me if you think it will work or vise versa. We can do both.
Jill DeWit: Okay. Based on my experience go.
Jack Butala: California?
Jill DeWit: Yes.
Jack Butala: That’s a triple A yes I think.
Jill DeWit: Oh my goodness yes. That’s one of my favorites.
Jack Butala: Organ?
Jill DeWit: Yes.
Jack Butala: Washington state?
Jill DeWit: Yes.
Jack Butala: Minnesota?
Jill DeWit: I don’t know.
Jack Butala: I do.
Jill DeWit: Okay.
Jack Butala: Minnesota is awesome for this.
Jill DeWit: Okay.
Jack Butala: Specifically like Wisconsin in the southern … Right where that meets Canada. That’s a great place to buy property too.
Jill DeWit: Okay cool.
Jack Butala: Main?
Jill DeWit: That’s kind of stiffy up there-
Jack Butala: What? You just alienated a whole [inaudible 00:14:40] I’m never going to sell you anything in Main.
Jill DeWit: I’m form the west coast. I don’t know. They’re kind of proper up there. Do we need an attorney for things? I don’t know. I’m really asking. Hey, how about this. Can I change gears for a second.
Jack Butala: Yeah.
Jill DeWit: All right.
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