Subdivision Magic Can Line Your Pockets (CFFL 0109)

Subdivision Magic Can Line Your Pockets

Jack Butala: Subdivision Magic Can Line Your Pockets. 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:
Jack Butala here for Land Academy. Welcome to our Cash Flow from Land Show. You know what? We can’t even … We were laughing so hard just a minute ago we had to shop the show. You’re hilarious Jill.

Jill DeWit:
Thank you.

Jack Butala:
Jill and I had this intern … Nevermind, we’ve gotta start the show.

Jack Butala here for Land Academy. Welcome to our Cash Flow from Land Show. In this episode Jill and I talk about creating subdivided land. Jill, you already know this is my single favorite topic.

Jill DeWit:
Mm-hmm (affirmative). It is right now.

Jack Butala:
Before we talk, let’s as always take a question from a caller.

Jill DeWit:
Okay. Larry from Florida called in and asked this question. I like this. This is a good question.

Jack Butala:
My dad’s name is Larry, and he lives in Florida.

Jill DeWit:
Are you serious?

Jack Butala:
Maybe this is him just horsing around with us.

Jill DeWit:
That’d be hilarious.

Jack Butala:
He’s retired. He’s … Go ahead.

Jill DeWit:
Do you think he did that?

Jack Butala:
Maybe.

Jill DeWit:
No. I … May … You know what? Maybe he did.

Jack Butala:
He would do something like this. Let’s hear the question.

Jill DeWit:
I could see this, but it’s a good question. That’s why I wanted to share it. He says, “I’m retired, but would love some extra cash to travel.”

Jack Butala:
No, that’s not my dad.

Jill DeWit:
Oh. Okay. “Can this work –

Jack Butala:
My dad does not need anymore money.

Jill DeWit:
Oh, okay. Well, “Can this work for me as a part-time business?”

Jack Butala:
Yeah, that’s not my dad at all.

Jill DeWit:
Steven, question to you. I’m –

Jack Butala:
No, yeah. Heck yes this can work as a part-time business. You’re going to get out of it what you’re going to put in … What you put into it is what you’re going to get out. I always bring up … When this comes up, I bring up Seth Williams who’s a … He’s a competitor, but he’s not. He’s a good friend and the whole thing. He’s got a website called RE Tipster. He’s a great writer and a great blogger, and he does about, he said between eight and twelve transactions a year. He makes sure that he makes ten grand on each one. I don’t know if we have any members that are vocal about just doing part-time stuff like that. Most of our members go for it. You know?

Jill DeWit:
That’s true. They’re replacing their income with this.

Jack Butala:
Yes. It’s extremely viable to do one deal a month, make ten grand on it, and make an extra hundred grand a year because $10,000 times 12 is $120,000.

Jill DeWit:
Yeah. Thank you Steven.

Jack Butala:
Yeah.

Jill DeWit:
Good, I can put my calculator away. So –

Jack Butala:
So what we were laughing about is this ridiculous intern that we had for a while.

Jill DeWit:
Yeah, it didn’t work about.

Jack Butala:
Talk about lack of ambition, Jesus.

Jill DeWit:
Oh my goodness, yeah.

Jack Butala:
That’s all I’ll say.

Jill DeWit:
I know. You know, the employees that we have … Every employee other than this one I think … Well there’s on other one, they figured it out later. They figured out later. Why is it 20 year old men don’t get this? Any man between 20 and 24 –

Jack Butala:
You’re a huge fan of hiring all women.

Jill DeWit:
They don’t realize the opportunity that they have here, at least –

Jack Butala:
Why are women so much more responsible than men. There’s a show right there. Write a … Can you write a book on that?

Jill DeWit:
There is a book coming on that. That’s very true. That’s just … I can’t get into it now.

Jack Butala:
Women make better tenants. They’re better caregivers. What is it?

Jill DeWit:
Might be better presidents.

Jack Butala:
Oh my God, you just lost half of our audience.

Jill DeWit:
Just kidding. I’m just kidding.

Jack Butala:
Half of the people just turned the radio off right now.

Jill DeWit:
I don’t know what’s going to happen. I don’t even know what I want to do about that, but anyway, having said that, a woman can do the job. Some jobs, women do better. Huh. Think about that.

Jack Butala:
Wow, look at how saucy you’re getting about this stuff.

Jill DeWit:
There’s a book there coming by the way. Ugh. Yes … That topic gets to me. So –

Jack Butala:
Remember that one time you took some kind of thing, like a seminar. You went to the thing and came back and said … This is what I heard. You probably said a lot of stuff, but this is what I heard.

Jill DeWit:
This is the only thing you took away?

Jack Butala:
Professional women, like women who have a career, they ask for permission and then ask … What was that? Do you remember that? Women ask for permission, and men ask for what they want, or something like that.

Jill DeWit:
Yeah, I can’t remember what the thing was, but we sometimes –

Jack Butala:
I think women … You should do a whole thing on … It should be called Stand Up for Yourself Woman. That’s the name of the book.

Jill DeWit:
Sometimes women … I don’t know why we do this. We’re almost asking for permission to do things instead of taking charge, and I don’t know where that comes from, but yes. We all know when women are rating themselves, like for a job review or something, we will rate ourselves different. The men well say, “Oh, I’m,” whatever. They give themselves 100 out of 100. They’ll give them 105 out of 100. Women will go, “I’m an 85. I know I can improve in this.”

Jack Butala:
Yeah.

Jill DeWit:
No. No. No. No. No. What we think we’re worth when we really should walk in just like the men because by the way sometimes we bring more to the table. We won’t even go there, but we deserve 100 too.

Jack Butala:
Hey if you have a question for us call 888-735-5045 and leave a message. If it’s actually interesting, and you seem like an interesting person, we’ll have you on the show.

Jill DeWit:
Maybe.

Jack Butala:
Jill will be the judge of it.

Jill DeWit:
I’ll be … No, I’m just kidding. They don’t make it to me. It doesn’t make it to me. I guess the questions make it to me. All right, back about the subdivision.

Jack Butala:
I love subdivisions Jill.

Jill DeWit:
Tell me.

Jack Butala:
It’s a license to print money.

Jill DeWit:
This is –

Jack Butala:
Here’s why. There’s two types of subdivisions in the world. One that was modeled after a, let’s call it a Ranch Farm Model, where you take a big piece of property, and then you want to give part of it to your son or your daughter or you daughter-in-law, so you just carve it out. You have one APN. Picture a farm that’s got one APN. It’s a big huge piece of property. Assessor’s Parcel Number. You want to cut out 40 acres and give it to your brother-in-law. You can subdivide it, basically by rewriting the legal description, northeast quarter, southeast quarter. I don’t want to get into that right now because it’s boring.

Jill DeWit:
It is boring. Do you see my eyes glossing over.

Jack Butala:
Yeah.

Jill DeWit:
Yeah.

Jack Butala:
I do. That’s how you do. Those are the kind that we like. The second type of subdivision is the one that you live in, where you take a big piece of property, and you cut it up and put roads in there. I’ll call that an entitlement subdivision because you have to, at least out here, apply for entitlements. You have to get … It’s called getting entitlements to do a sub. We care about the first. You can take a 40 acre property in Arizona, and if you cut it into five properties, not six, six is whole different ball game. It has different rules and everything, but you can cut it into five properties and create five APNs and print money.

One of our members said it like this, buy it by the case and sell it by the bottle.

Jill DeWit:
Mm-hmm (affirmative). You could take a 40 and have a 20 and a 10 and a 5 and a 2.5 and a 2.5. There’s your five –

Jack Butala:
Is it without paperwork and is it without hassle? No, but you do the math. You’re going to make three or four times more money than you would if you just bought the 40 and sold the 40. I’m just using 40 as an example.

Jill DeWit:
That’s a good number to work with. What I love too is because nothing’s too small. You still got a nice big 20 acre, that’s awesome. You could probably sell that 20 acre for what you bought the whole 40 … You make money off the 20 already, make your investment back off that 20. It’s still a fantastic size, and you bought it right, by the way, or you wouldn’t be doing this. Then the 10 and the 5, all these other ones are gravy.

Jack Butala:
Right.

Jill DeWit:
You know what you’re doing. It’s making land Steven.

Jack Butala:
It’s creating land.

Jill DeWit:
You’re creating new … The county will love it … I’ve heard you say this. It’s a … There’s more properties to collect taxes on.

Jack Butala:
Now you have instead of one APN and one tax bill, you have five. It’s a win-win for everybody.

Jill DeWit:
It is. Maybe I can’t afford the 40, but I can afford the five.

Jack Butala:
That’s what I mean.

Jill DeWit:
I don’t want the 40, I only want five.

Jack Butala:
The name of the first education program that we did it was called, “$10,000 a Month for Life Cash Flow from Land.” That’s the full title. The ten grand comes from collecting payments. You pay cash for properties, this is what we do here. We buy property for cash and then we sell it on terms, or we sell it for cash depending on the property.

Jill DeWit:
Mm-hmm (affirmative).

Jack Butala:
Now you’re making … You’re collecting five payments instead of one.

Jill DeWit:
Exactly.

Jack Butala:
Who the heck can argue with this at all. It’s the best thing ever.

Jill DeWit:
You could easily have a $1,000, period, on that one transaction.

Jack Butala:
Jill regularly buys 40 acres properties for less than $4,000, and we cut them up. It’s not without effort. I’m telling you, that’s beyond the scope of this show, and very municipality is different, and some flat out, even though the law says you can do it, some flat out don’t like it, and they don’t want you to do it. They will tie it up forever. We should write a whole book on this.

Jill DeWit:
Mm-hmm (affirmative).

Jack Butala:
We really should.

Jill DeWit:
Right. Here’s what I’m thinking, you could sell … I could easily get … On a 20 acre property, I could easily get 250 a month in payments, seriously. 250, 150, 100. $100 a month. Think about this, I could be making $1,000 a month easy in payments on this one property.

Jack Butala:
Off a $3,000 investment.

Jill DeWit:
Right, that I spent … Even say I bought it for five. Who knows, five months I make my money back.

Jack Butala:
I would love to see a better business model than that.

Jill DeWit:
Right. Then it’s just gravy after the few months.

Jack Butala:
You can’t do this with every property, but you don’t want to buy every property anyway. You’ve heard us talk about this.

Jill DeWit:
Mm-hmm (affirmative).

Jack Butala:
It has to have … The property that you buy, you want to have access. That’s a … Anybody who’s in the real estate business, they think that … Your immediate reaction is, “Oh, you guys are buying property out in the middle of nowhere with no access.”

Jill DeWit:
I love that.

Jack Butala:
No we’re not. We’re not.

Jill DeWit:
Exactly, no. You don’t buy it. If you can’t do that, you don’t buy it.

Jack Butala:
You can’t subdivide property anyway … I’m telling you right now, anywhere without really good access.

Jill DeWit:
Mm-hmm (affirmative).

Jack Butala:
Even if you have to create access, and there’s nothing wrong with that.

Jill DeWit:
I’m good with that.

Jack Butala:
There’s nothing wrong with creating access. We do it all the time.

Jill DeWit:
I … Yeah. We were looking at some properties yesterday where you could see the strategic … I was like whoever did that road design was brilliant. There was a drive right up to it for every parcel, and it kind of snaked through the property, and it was efficient. I’m like, that was brilliant for that property.

Jack Butala:
There’s guys that live in rural locations that have those big caterpillar blade things. It’s called blading roads in, and that’s all it takes.

Jill DeWit:
Yeah.

Jack Butala:
They are happy for their work, and it’s way less expensive than you think. I did it in Nevada once. A huge subdivision in Nevada. Made just a killing on it.

Jill DeWit:
Mm-hmm (affirmative). Once you learn one, you’ve got this. Once you learn how to do it, you know that state, that county, whatever, you’ve done it, and you’ve made all the connections by the way. You want to pick an area that there are multiple properties that you could probably do this with. You know what I mean?

Jack Butala:
Mm-hmm (affirmative).

Jill DeWit:
You’re going … You’ve already made all of the friends.

Jack Butala:
That’s right Jill.

Jill DeWit:
To go back and do it again, it’s going to be easier every time. Talk about investors throwing money at you, oh my gosh. If you need that –

Jack Butala:
We have no affiliation with this company, but if you go to arizonaland.com, just like I said it, and look at their business model, this is all they do. They take thousands and thousands of acre properties, and they cut them up into 40 acre properties and sell them on terms. They maintain the roads and charge an HOA, and the whole thing. They do a bang up job.

Jill DeWit:
That’s awesome. Brilliant.

Jack Butala:
I have multiple people throwing money at us right now to go do this.

Jill DeWit:
I know.

Jack Butala:
It’s going to happen.

Jill DeWit:
It is.

Jack Butala:
We just need to find the right partners.

Jill DeWit:
It is.

Jack Butala:
Jill and I don’t have enough to do.

Jill DeWit:
Oh my gosh. That is our only problem. That is our –

Jack Butala:
We need a partner that will handle this whole thing, and deposit the money where we tell them.

Jill DeWit:
Exactly.

Jack Butala:
If you’re a person like that let us know. We have the land, and we have the money. We have no time.

Jill DeWit:
Mm-hmm (affirmative). You’re right.

Jack Butala:
I’d rather do this show than do that.

Jill DeWit:
I know. We need one more person.

Jack Butala:
Maybe my priorities are wrong.

Jill DeWit:
Maybe your priorities are wrong.

Jack Butala:
Maybe we should stop teaching people stuff, and just make hoards of money and never say a word on here ever again.

Jill DeWit:
Yeah, that’s a good idea. No. We did that. Now we teach people.

Jack Butala:
For years.

Jill DeWit:
We didn’t … We always did teach though. People have said –

Jack Butala:
That’s where we started because people were asking us for it.

Jill DeWit:
Right. The whole big picture is we’ve been doing this for years anyway, just not at this level. It got to the point where we couldn’t possibly help everyone who asked for our help. We finally said all right, we’re going to put together a program, and that will teach everybody, and then look what that grew into.

Jack Butala:
Right.

Jill DeWit:
Talk about fun. I’m having so much fun now.

Jack Butala:
Me too Jill.

Jill DeWit:
This is the best.

Jack Butala:
I should’ve done this a long time ago.

Jill DeWit:
Mm-hmm (affirmative).

Jack Butala:
We do so many more real estate deals now because we have Land Academy than we did before.

Jill DeWit:
Mm-hmm (affirmative).

Jack Butala:
We weren’t suffering before, trust me, but … It lends a lot of credibility I guess. I don’t know. Who knows why. People are making a lot of money. People are quitting their jobs. They’re making enough money to quit their jobs as members. It’s awesome.

Jill DeWit:
I agree. It’s awesome. It is. I love it. Do you have anything more you want to say about the subdivision magic?

Jack Butala:
No, if I didn’t say it already, I love subdivisions.

Jill DeWit:
Yeah.

Jack Butala:
I love them.

Jill DeWit:
Mm-hmm (affirmative).

Jack Butala:
Hey, join us in another episode where Jill and I discuss your all important success in subdivisions, real estate, and in life.

You could take that, that’s what you could do for a living.

Jill DeWit:
Totally. That’s all you do.

Jack Butala:
Just that one thing. The guys at Arizona Land, that’s all they do.

Jill DeWit:
Yeah. Exactly.

Jack Butala:
They have a huge operation. They own an office building. They have 50 people –

Jill DeWit:
That’s a good idea.

Jack Butala:
No they have 50 people working there. All sales people. You know what they do? They sell properties to people in Asia.

Jill DeWit:
Oh.

Jack Butala:
They speak Mandarin, and they call them.

Jill DeWit:
How do you know this?

Jack Butala:
I don’t know. I just … I know these guys. I have a lot of respect for them.

Jill DeWit:
I’m like, how do you know … That’s very interesting. Hmm.

Jack Butala:
Most billionaires per capita are in Shanghai or something like that.

Jill DeWit:
I did hear that this morning on the news. Yeah because you know what?

Jack Butala:
Is it Shanghai?

Jill DeWit:
It’s China or something. Oh shoot, where was it –

Jack Butala:
No, it’s China, but I don’t know if it’s Shanghai.

Jill DeWit:
You know what was so funny, I don’t know if you heard this comment because –

Jack Butala:
It’s Beijing. That’s what it is.

Jill DeWit:
Is that what it is? All right. Gail on the morning show that I like –

Jack Butala:
Yeah on CBS.

Jill DeWit:
Yeah. She made a joke about, “I know where I’m going.” She’s like joking … Now it’s Gail and Mr. Wong. She said that on the news. I’m like oh that was awesome. On her show with Charlie Rose and Nora. It’s so funny. That’s what she said this morning. It was really good. I believe it.

Jack Butala:
I’m pretty sure I could sell stuff to Chinese people.

Jill DeWit:
There’s another … Anyone listening? We need another person now to head up that whole project.

Jack Butala:
If you speak Mandarin give us a call. Let’s go buy some subdivisions.

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