Why Specialized Printing is Imperative to Investor Success (CFFL 0127)

Why Specialized Printing is Imperative to Investor Success

Jack Butala: Why Specialized Printing is Imperative to Investor Success. 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. In this episode, Jill and I talk about why specialized bulk mail printing is imperative to investor success. Cutting to the chase, it just saves a lot of money, it’s not like regular printing, and we’ll get into it in a minute.

Jill DeWit:
Mm-hmm (affirmative).

Jack Butala:
Jill, as always, lots of fun. I’m going to try so hard, I’m going to make a personal promise to you and our listeners to not make this a boring technical show.

Jill DeWit:
Okay, good. I looked at this topic. I was a little worried, but I knew you were going to make it fun.

Jack Butala:
Alright. So, before we get into it, let’s take a question from a caller.

Jill DeWit:
Okay, cool! Michael from Orange called in and asked … I love this question, this is such a good question. If you had to start over with $100,000, no education, no credentials, no wife, no kids, so you have a clean slate here; what would you do to become financially secure in Los Angeles or anywhere?

Jack Butala:
I want you to answer that first.

Jill DeWit:
I love this question. How many people are asking themselves this, right now, today. I’m about to graduate, what do I want to do. The old rule of thumb was go get a degree, any degree, it’s always going to help you. I’m sure some people … That’s how I take this question is. I have $100,000 dollars, so let’s just say the money for college … Maybe it’s a college fund sitting in a bank. That’s how I take it.

Jack Butala:
Or an inheritance

Jill DeWit:
Right, or inheritance, and he’s sitting there going, “Now, what do I do? I don’t know what I want to do, but I want to be financially secure.”

Jack Butala:
What would you do?

Jill DeWit:
I would invest. I don’t want to work. Let’s just be honest. I want my money to work for me. I like to have fun. I don’t have a burning desire to have a day-to-day operation that I need to be at because I need to do … Does that make sense?

Jack Butala:
Yes.

Jill DeWit:
So, I really, slash however, if I have a good income stream from my money, where it’s making money for me, then I can still do whatever I want. For example, we all know I played around, had some fun doing some acting stuff months ago. That was really fun for me, but you know what, it was kind of like a hobby, and it’s an expensive hobby because you don’t make a lot of money. What if I wanted to act and do plays, and stuff like that. I’d have to have something else bringing in some money so I could afford to do that. I’d go back to the basics. What are some of the things I know I’m going to make money on? I can’t find anything better than what we do, which is properties, or real estate, however you want to word it. Even stock market. I can’t put this money into stock market, and know it’s going to come back like it should; at least enough to live on every year. $100,000 is not enough money.

Jack Butala:
Can I answer now?

Jill DeWit:
Sorry.

Jack Butala:
No, no not at all. I think this is an excellent question. I’m going to try not to get too philosophical, but this question is worked backwards. Money has nothing to do with anything. Start with a blank sheet of paper and what you want to do. If investing in real estate, and getting some passive income going, and turning some deals, and being a deal maker is something that appeals to you; being on a phone a lot and negotiating things. This can potentially be something for you to do. Some people own a muffler shop or an oil changing shop, and they love it.

Start with a blank piece of paper and really do some soul searching about what you want to do. Everybody loves passive income. It’s such an over-used word. I avoid it. I avoid that-

Jill DeWit:
Phrase.

Jack Butala:
The technically term, I think, is cash flow, but it doesn’t matter. Just sit down with your spouse, or whoever, and decide what you want to do. If flipping land, and flipping houses, and data analysis is something you’re into, or you want to learn more about, or you see it like the future like I do, see it as part of the future, this is a great thing to do. Whether you have 100 grand or a 100 million, it has nothing to do with it. I’m going to say this one more time. If you’ve listened to this show and followed Jill and I on social media, you’ve probably heard us say it 50 times.

Jill DeWit:
Follow Jill.

Jack Butala:
50 freakin’ times probably. Listen, there’s way, way, way more money out there than talent. A lot of people in this business don’t know that it is so easy to raise money if you’ve got a great deal. We don’t teach you how to raise money. The people with all the money; they’ll find you, trust me. We get calls all the time.

What you want to do is really learn how to find under-valued property. I don’t care if you have three nickles. I don’t care if you’ve got no money to spend on real estate. If you think on that blank sheet of paper that this is something for you, then that’s what we teach; how to use data, get some stuff in the mail, which is kind of leading into our next point here. Get some offers in the mail, get a good printer, field the calls, make some deals, and get some money people involved.

Jill DeWit:
That great. I don’t want you to be personal. Steven, you just sounded like a commercial. That was an infomercial. I apologize, everyone.

Jack Butala:
Maybe you could cut me off a little earlier next time before everybody falls asleep.

Jill DeWit:
No, it’s okay, you were on a roll. I really want to know. I answered this honestly. This is you, Steven. I’m going to put you on the spot here. You have no idea. You have a high school diploma, you are not married, you have no kids, you have $100,000 in the bank. I want to know seriously, what would you do?

Jack Butala:
I’ll get all personal.

Jill DeWit:
Okay.

Jack Butala:
How old is this person?

Jill DeWit:
He didn’t say. Starting over, so dream it up. I’m going to say 22.

Jack Butala:
I would get a full-time job. I would leave that $100,000 in the bank.

Jill DeWit:
What would you personally do? Not give advice.

Jack Butala:
I would personally put $50,000 into a deep, deep savings account, and never touch it ever, ever again, ever. I would take the other 50 and probably do way too much research on the internet about what to do. I would probably eventually find real estate somehow, and use that as seed capital; maybe try to match it with somebody else’s money, or find a good partner, or something like that. I’d go though the three steps: education, experience, independent success, and start flipping some land.

Jill DeWit:
Okay.

Jack Butala:
If I knew how to make money hand over fist like we do, and something else, I’d probably go out and do that.

Jill DeWit:
All right, got it.

Jack Butala:
I’ll tell you what I wouldn’t do; buy a small business where you have to work there everyday. It has to be scalable. Scalable’s a misused word. I would avoid anything … here’s the trap that a lot of people get into, and I would personally. I’m going to make this personal.

Jill DeWit:
Thank you.

Jack Butala:
I would avoid any situation where, I call it, fee for service. I’m getting paid for the service or the product that I’m selling, or making, or whatever. So you are now limited to eight hours a day. I always use a tow truck. Let’s say your an ingenuitive guy, you get a good deal on a tow truck, you open a business, and you’re rolling. You’re getting whatever. You can only take maybe eight calls a day.

Jill DeWit:
Oh, okay, I see what you’re saying.

Jack Butala:
That’s it. It’s not scalable in any way. Then you’ve got to buy another tow truck and get another guy, and then-

Jill DeWit:
Isn’t that scalable, now?

Jack Butala:
No, that’s not scalability.

Jill DeWit:
But you just bought another truck.

Jack Butala:
Scalability; that’s repeatability.

Jill DeWit:
Oh

Jack Butala:
Scalability is writing a book, or writing software, where you write the software once and you sell it 100 times, maybe 5,000 times, maybe if you’re Windows, 50 billion times.

Jill DeWit:
Okay.

Jack Butala:
Or an app. An app’s a perfect example. You spend a bunch of money … Hey, we have an app.

Jill DeWit:
We have an app. I was just going to say, we have an app, and it’s $9.99, just kidding. It’s very scalable, and it’s free. Go check out our app.

Jack Butala:
Yeah, so does that answer your question from a personal standpoint?

Jill DeWit:
I think so. You kind of went around it. I got real deep on it, and you kind of went way out there. You were still in your professor mode. I was trying to rail you back in.

Jack Butala:
Save some money. I would do all that while I had a job; some type of job that I enjoyed.

Jill DeWit:
I agree with that.

Jack Butala:
All throughout when I started this whole thing, I was an investment banker, and I made great money, but it just ended up that I was making more money doing this at some point, and the math didn’t work. I had to leave if I was going to be on my own ever.

Jill DeWit:
That’s true.

Jack Butala:
I’m a big fan of overkill.

Jill DeWit:
Have a job that pays the bills while you’re getting going until you know it’s going to work.

Jack Butala:
Right.

Jill DeWit:
That is good advice.

Jack Butala:
You want to wait a little bit too long sometimes for things like that; be real conservative about it.

Jill DeWit:
Right, cool, thank you, Steven.

Jack Butala:
Yeah.

Jill DeWit:
I have some questions. This is kind of a me asking you stuff about the specialized printing. How long did it take you to figure out what was needed? Tell us about your mistakes and all that good stuff, please.

Jack Butala:
You want to hear about my life-long mistakes, or just about printing?

Jill DeWit:
Printing.

Jack Butala:
I was ready to talk to you about my life-long mistakes. This is one of those Jill therapy calls.

Jill DeWit:
No, we’re not doing … What did I call it? Steven’s emotional baggage. We’re not getting into Steven’s emotional baggage this time.

Jack Butala:
With printing, here’s the thing. Most of the printers out there online, bulk-mail printing … In a second I’ll get to how this really works, which is really the reason I made all these mistakes.

Jill DeWit:
Okay.

Jack Butala:
There’s generic printers out there. Let’s say, like out in the West, here, we have our chains like Kinkos and Alphagraphics. I think Kinkos is national; part of FedEx now. Anyways-

Jill DeWit:
Does Kinkos still exist?

Jack Butala:
Oh, maybe it doesn’t; maybe you go to an Office Max or something.

Jill DeWit:
Yeah, I don’t even know, but I know they’ve got with FedEx. I don’t even know if they’re still around, but I’m not going to look it up.

Jack Butala:
You walk into one of those places in there. They’re set up for just about anything that’s personal. It’s not a big print shop like for magazines and stuff. They’re not specialized at all. That’s my point. That’s a big mistake I made. I’ll tell you, the four-color bleed stuff, which we have no part of, is expensive. Those machines are really expensive. They’re expensive to maintain, so where do they make it up? They make up the money on a print job like ours, which is black and white, number 10 envelope, real simple stuff, super professional, but simple. You don’t want to get involved with a printer that’s got a ton of overhead, and then try to make it up on higher-margin jobs like ours. You need to find a specialized printer.

Number two; what are you paying for with printing? This is how it works: All printers go and get a, what’s called, a bulk-mail license right from the post office. It’s surprisingly simple to get one. What it does is it allows you to literally print on an envelope, a bar code and a number, the actual number of your license. You don’t pay for anything yet. When the letter, or whatever you’re mailing, hits the post office, you actually get charged for that. It’s about 30 cents. When you’re listening to this podcast, it is, anyway; at the time of recording this. A stamp’s 49 cents.

That is the challenge with the printer. The printer has got to make it cheaper for you than if you stuck a stamp on there yourself, or if you asked one of your kids to lick 50 stamps and stick them on envelopes. Between that 30 cents and that 49 cents is his labor, the materials, the ink, the maintenance, the whole thing, so the higher his overhead, materials, and all that, the higher it’s going to be the margin. You want to try to always be cheaper than the price of a stamp.

Hey, wait, that’s the name of our product.

Jill DeWit:
You know what’s funny, Steven? I don’t even think people expect that. Let me back up here. I’m brand new. I’m mailing out … Who knows what I’m doing, and I’m mailing out flyers for something. I’m going to expect that either I’m going to do it … I’m going to expect the stamp price to be what it is, and I’m going to expect extra for the printing, and stuff in the envelopes, and putting them in the mail, because that’s what I’m paying for.

In a good way, you are killing it because what you have negotiated, and what you have learned, and what you do, and how we share it is so huge. If you told me, “Jill, it’s going to take you an average of 79 cents to get one out.”, I would budget 79 cents. That’s just the cost of doing it, but I don’t want to do it, so it’s worth it.

Jack Butala:
That’s why people pay for education, and that’s why we set up a smoking deal with a printer, so that it is cheaper than the price of a stamp. What good would it be if I just said, “You know, here’s the theory.”, and you know I see a lot of people do this. “The theory is this is exactly how you do it, and here’s one step after that. Go call this guy. He owns this thing. Because our group’s really big, we’ve negotiated a great deal. Go over here and join the rest of us. He’s probably processing other member’s mailers right now. Specialization in printing is imperative in my opinion.

Jill DeWit:
I have a good question. This is, for me, one of the bigger points; not just the cost of it, but knowing what to send. Why wouldn’t I send a postcard, why wouldn’t I do a hand written pretend envelope, why wouldn’t I put a picture in there, why wouldn’t I put? You know what I mean, seriously?

Jack Butala:
I would ask you that, because I think that this topic makes-

Jill DeWit:
There’s a lot of discussion-

Jack Butala:
You get really heated about this, and I want you to answer that question. I think your answers are right, by the way; always right.

Jill DeWit:
There is so much discussion I see, and read, and hear about the right way to reach potential sellers via mail; whether it’s an apartment building, or whether it’s a single-family residence NSFR, or just a piece of land, I hear all kinds of different things. It’s comical to me when you really just need to take a step back and realize, what does your seller want to get? That’s really for me. I don’t want a postcard, I don’t want two-resident, and so many people do that. I want a real, personalized, addressed to me offer from a credible buyer. I think if you just take a step back and look at it like that, you’re going to not do a hand-written pretend thing. I don’t want that. I don’t even understand that because it makes me think that, is your kid doing these? You don’t have a big company? Part of that gives me the wrong vibe. If you ever send a postcard that says, “To John Smith, or Resident”, I’m out. You don’t even care if I get it or not? I toss those. Almost no matter what it is, I don’t even look at them anymore.

Jack Butala:
If you’re one of the people who listens to this podcast to get information about how to do real estate transactions, and you’re not listening just to be entertained, now is the time to take out a piece of paper. Pull over the car or whatever. Take a piece of paper out because this is really, really valuable. What are you trying to accomplish here? That’s the question. You’re spending some money. Sending out some type of correspondence to a property owner who is showing signs that they want to sell the property.

Number one; do you think you’re going to trick them? Should you send them a tricky note like, “Avoid foreclosure.”

Jill DeWit:
Right, that’s going to make them want to do it.

Jack Butala:
If you think that you’re going to trick them, you’re in the wrong business.

Jill DeWit:
Correct.

Jack Butala:
You have another option. Are you going to send them a beautiful, color, flowery entertainment piece that says, “Hello, Mrs. Smith, I love your 40 acre property over there. Have you ever thought about selling that? Please give me a call. Maybe we can talk about it, and maybe we’ll get together on a price. We would love to buy that from you, I think.”

Jill DeWit:
Exactly.

Jack Butala:
I need some more information. You know what’s going to happen? You’re going to send a thousand mailers out on that, and you’re going to get a thousand phone calls.

Jill DeWit:
Everybody’s going to call you, and nobody’s going to want to sell.

Jack Butala:
Nope, that’s exactly right.

Jill DeWit:
Or they want to sell it double what they paid because you opened the door.

Jack Butala:
You know why I know about all this stuff? Because I did all these things wrong. Or, you want to send them an offer that says, “I’m not horsing around here, Mrs. Smith, and I say this with respect. You’ve owned this property for a long time.” By the way, it’s 41.1 acres and XYZ legal description. “We buy a lot of property over there; real familiar with the area. You’re kind of showing the signs that you don’t want to own it anymore, and I understand that. Again, I don’t mean any disrespect, but if you’re the kind of person who just wants to check it off your list, you don’t want to maximize your price or go through a realtor, we’re in that business, and we can really help you. If it all checks out, we’ll be happy to send a notary over to your house by Friday with a cashier’s check, and you’ll just be done with the whole thing.”

Jill DeWit:
Isn’t that funny?

Jack Butala:
“If you find this offensive, I sincerely apologize, but this is the kind of business we’re in, and we have a lot of happy customers. They thank us.”

Jill DeWit:
Right, so that’s the message you’re trying to send.

Jack Butala:
Yeah.

Jill DeWit:
That’s the whole difference. I think if people took a step back and realized what they’re sending out … I can’t imagine how much wasted money has gone out in ineffective-

Jack Butala:
That was my final point, Jill.

Jill DeWit:
Sorry.

Jack Butala:
No, no, no, it’s fine. I’m glad we reached the same conclusion together because-

Jill DeWit:
Ineffective mailers, because they are not sending the right message.

Jack Butala:
That’s why it’s important to have a specialized mailer company that understands what you do. The mailing part of this is expensive.

Jill DeWit:
Oh, gosh, it is.

Jack Butala:
The data piece; I see a lot of people concentrating on saving money with data. The data piece to this, the one that we have right now, is between five and ten cents a record. That’s very insignificant compared to the printing piece, which is about, for us, cheaper than the price of a stamp, depending on how much mail you send out. You don’t need a calculator to look at how much does a five cents times a thousand cost, and how much does 50 cents times a thousand cost? Find somebody that understands what you’re doing.

You know what we didn’t mention? I’ll leave it on this last point, unless you have something else to say.

Jill DeWit:
No, no, it’s perfect.

Jack Butala:
You want to make sure that you do a mail merge. Jill mentioned it earlier: John Smith or dear current resident gets thrown in the garbage. If you do this right, you’re going to be getting about a five to eight, maybe ten percent response from people who are interested in selling land, and you’re going to get about a half of one percent .05 for houses if you do it correctly. You want to make sure that you’re hitting those numbers and doing this properly. The single best way to do that is to do what’s called a mail merge. You can look it up on Land Academy or SuccessPlant. All of our members do it, and the effect is this: Think if you want to send a love note to four people, and you don’t want the one person to know the other three people are getting it, that’s what a mail merge is.

Jill DeWit:
Like an email. There’s an email that you email it to personal with the name and everything. It’s a really easy thing to do. In an afternoon you can do this. It’s not hard.

Jack Butala:
I think we covered it.

Jill DeWit:
Thank you.

Jack Butala:
Hey, join us in another episode where Jill and I discuss your all-important success in property investment and in life.

Jill, I think we did it. I think it was half entertaining and half informative.

Jill DeWit:
I agree.

Jack Butala:
Nice work.

Jill DeWit:
Thank you. We’re getting good at reeling each other back in if we need to. I’m like, “Okay, go on out over here.”

Jack Butala:
You know what we need is like a Nerf football to throw at each other if we get sidetracked too much, or signals.

Jill DeWit:
We have some signals. What are you talking about? We have some signals.

Jack Butala:
Some hand gestures.

Jill DeWit:
Yeah, yeah, we got some. You’re saying I could up my signals? Are mine too subtle?

Jack Butala:
No, heck no, no, no. No, I think you’re right. I’m not disagreeing with you at all. It’d just think it’d be fun to throw some stuff at you once and a while.

Jill DeWit:
Thank you.

Jack Butala:
Let’s go buy some property.

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