Add Land to Your Existing Flipping Operation (CFFL 0128)
Add Land to Your Existing Flipping Operation
Jack Butala: Add Land to Your Existing Flipping Operation. 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 adding land to your existing flipping operation or really any property operation for that matter. Management or whatever you can dream up. Jill great show today as always we are going to to tell it like it is but before we get to it lets take a question from a caller.
Jill DeWit:
Okay Scott from St. Paul called in and asked there’s a lot of discussion about flipping houses but what about mobile homes? Oh, I have something to say about this too actually. “I’m just starting out too on real estate but it makes sense or at least for a little guy like me because there’s less million invested, the finished product sales for less than a house and there’s always somebody looking for cheap living that can’t or doesn’t want to get a huge mortgage. Obviously I’m not talking about putting $100,000 into a mobile home but maybe $2,500 and selling it for $4,000. Has anyone got this advice, it would be great.” Oh, my gosh I’ve something to share about this right now.
Jack Butala:
Go ahead. I too have a lot to say.
Jill DeWit:
Cool. I happened to go to a local REI meeting last night and this came up. There was a guy at the meeting stood up … The beginning of the meeting they opened up with a little QA and it like a sharing point and it was called like my deals. Everybody stood up and shared some deals and this one guy stood up and said, he had been working with the seller for like 2 years ago, that he got from like a Google adds … This is the funniest thing too is like I shut this down along time ago but this still came from it. Is like a Google adds paid cured search that he was testing a while back. Anyway it resulted in a guy that had a mobile home. It was here locally in Arizona that he wanted to sell but they couldn’t agree on the price. They kind of parted ways and he was … Whatever the guy was offering was like I don’t know. Really, really like $2,500 or $4,000 it was really that low for this mobile home in a nice area.
Anyway the guy ended up calling him back weeks ago finally and just said, You know what, I’m giving it to you. I mean he literally said I’m giving it to you. I’m done kind of thing. The guy is like … He was able to get it … He was able to pay that I don’t know $17 to transfer it not kidding. He negotiated with the mobile home park to give him a couple of months of free space rental because he’s paying like $4,000 to fix it up to sell it for $10,000, that’s he’s goal. Everybody is thrilled because he said this is the eye sore of course in a mobile home park which is why they guy was walking away. This does happen and I think itʻs fantastic.
Jack Butala:
This is a huge business, I have a ton to say about this. I wonder if we should do a full show on it. Actually I know we should probably more than 1. One thing, there … Every single person I know that’s in a mobile home flipping business, or if they own mobile home parks, or anybody who’s involved in this does extremely well. I’ve heard so many stories like the one that you’ve just told where there just … It’s very easy to buy them inexpensively. There is like limitless options. First of all, what you need to super remember about mobile homes, is that it’s not real estate. It’s personal property, it’s the legal equivalent of you car. There’s a lot of different rules that apply. A lot of complicated rules that apply to real estate, do not apply to … It’s personal property. Don’t apply to personal property but there are some pretty serious Dodd-Frank implications to renting and well not renting but selling a property on terms that’s a primary residence, so that’s some stuff to look into but it’s beyond the scope before what we are talking about here.
If you go on Craigslist right now, in any metropolitan Craigslist, you are going to see mobile homes listed for $2,000. I’m sure you can call and negotiate that down. Yes, the answer is yes. Scott from St. Paul, I would continue now on the path that you are on. I think Iʻm going to call it a real estate niche, but it’s not. This niche it’s a great one and I’ve noticed too that specifically in this niche every single thing is negotiable. The people who manage … The on-sight managers for a mobile home parks are usually … Almost all of them own several mobile homes right in the park due to abandonment. They love to have people come in and … Just like Jillʻs story. Without going in a tremendous amount of detail, I’m actually excited about this. It excites me. Itʻs fun to talk about different stuff too Jill.
Jill DeWit:
It is. It really is. We are lucky enough that we live in an area here for flippers that is a great opportunity. We are not where there’s tornadoes and things … I don’t know there’s good mobile homes and it was … They asked some good question like when was it built and I want to say it was like the 70’s, Yeah itʻs a mobile home but you know what, it’s still something you can do and make a lot of money off it. I think it’s brilliant.
Jack Butala:
Kind of parallelizing to this topic or today’s topic.
Jill DeWit:
It kind of does because I had some other things to say about the meeting last night.
Jack Butala:
Go ahead yeah. That’s what I was going to ask you before we actually got into the topic. How did that go?
Jill DeWit:
It was great there were about …
Jack Butala:
Was it you first one?
Jill DeWit:
It was. I just kind of sat in the back. I was just kind of there to observe. It’s not … My first one as a guest if you will, you and I have spoke.
Jack Butala:
Not as a speaker. Right.
Jill DeWit:
This is my first time to really … This was a different kind of a group. This was kind of the established group so not like new investors or anything. There was a whole range of people there. A lot of it was basically networking, that’s what the whole meeting was about. Market trends and little things like that it’s like their typically monthly meetings so I just kind of sat in the back and observed and I saw one of our members there by the way. It was really good. [inaudible 00:05:54] said hello to me and he knows who he is Jp. Anyway …
Jack Butala:
How is he doing? How is Jp?
Jill DeWit:
He is doing awesome. He’s awesome.
Jack Butala:
He’s a really enthusiastic young man.
Jill DeWit:
He is, he sent me a nice email last night too. He said, “Hey Jill nice to see you there and I’m excited and really good stuff” It was awesome.
Jack Butala:
[crosstalk 00:06:14] Is he in the mortgage business or something or on a banking business. He’s already sort of in real estate he just wants us to take it.
Jill DeWit:
You are right. You do remember that.
Jack Butala:
You know why? Because I remember meeting him, he was so enthusiastic. He stuck out and I remembered him. Then I see him in success plan asking some really intelligent questions so that’s how.
Jill DeWit:
That was really fun. That was cool that was a nice surprise to see somebody … Hey, somebody I know here. Anyway so it was a really interesting good meeting. It’s really a great place for flippers to networks. Like people would say, I have a property for sale. People would say I have money to spend. People would say, hey I have got a good rehabber. People would say great I need a good rehabber. It was that kind of environment. That’s a lot of what it was for. It was just super fun to be there and talk to people and it’s kind of … I try not to share. I literally sat in the back row and these two guys next to me and the very beginning they had these exercise where we were kind of like, introduce yourselves. I’m like oh, boy what do I say, I don’t want to intimidate anybody to say, I come from a place with 15,000 transactions under our belts, kind of thing.
Jack Butala:
Isn’t that funny, you got it really watch that.
Jill DeWit:
I know so I really kind of … I’ll tell you I downplayed. I didn’t say anything about … I just said Land Stay. I just talked about …
Jack Butala:
Oh good.
Jill DeWit:
I just talked about the Land Stay business. I didn’t say anything about … Because I didn’t want everybody to go you teach people, youʻre a mentor I just kind of … Because I was really just there to observe and that was a point of it and just kind of hear what’s going on and it’s great I’m going to start doing that. I’m going to start travelling around and doing some more of those around the country because I want to really know what’s going on.
Jack Butala:
Did you really learn anything? Like the to 2 things that you learned. I’m sure you learned something but … Like what are the top 2 things like … Did anything surprise you at all?
Jill DeWit:
No. Here’s what I confirmed. If anything I confirmed something which was, It’s getting harder for these flippers to find good deals. In which parlays into your whole get there first thing, but that’s a whole another topic. That’s really what I heard a lot of. Actually I heard 2 things that I confirmed. The other thing was, there’s a lot of money out there. There a few people that were sitting there literally with cash burning a hole in their pockets and people would jump up and kind of say, “Hey I’ve got this deal.” They would say, ” Hey you know what? We’ll talk after.” I want to talk to you. And these guys have money and they want to spend it. They all know this is a much better return on investment than anything. So, it was good.
Jack Butala:
Here is my opinion on … We will get to this topic eventually but, well we will kind of talk about it now. It’s not a new phenomena that people can’t find good deals. Everybody in this environment … Look it’s no different than it was 15, 20, or 30 years ago. That’s my opinion. Everybody in this environment is good at something. They are good at rehabbing, they are good at whatever, lending money. Maybe being a private lender or a hard money person. We happen to be good at sourcing transactions so, I chuckled myself every time I hear or go to one of these meetings and hear, people say,” Man it’s just … it’s getting harder and harder to find good deals.” What they are really saying is, the way that I used to do this, it doesn’t work anymore.
Jill DeWit:
Right.
Jack Butala:
You have to change what you are doing a little bit.
Jill DeWit:
You know what, I totally agree with you and one of the things that I think is a good thing right now, is I see less competition.
Jack Butala:
Me too Jill.
Jill DeWit:
I got to tell you. One thing I learnt last night that blew me away was, it’s the AZREI everyone, that’s what it is. The the whole state, there were actually people that drove from Tucson and I’m sure other ares to come to this meeting, it’s a once a month and phoenix …
Jack Butala:
Weʻre not members by the way.
Jill DeWit:
Weʻre not
Jack Butala:
Weʻre not affiliated with this, this is not a plug.
Jill DeWit:
Iʻm not plugging it or anything. I paid as a guest, I paid my $20 and got a cookie. Literally they have coffee and cookies, you pay. Whatʻs interesting is thereʻs not much competition out there. People come to me and say, both of us all the time, “God OMG, youʻre sharing this secret, isnʻt it going to be overwhelming?” Not at all. I sat there, there was nobody else doing what I do, other than JP and I now. In the whole state, they were all excited to announce that since theyʻve been doing this for 14 years they have 2,000 members.
Jack Butala:
Oh my gosh.
Jill DeWit:
Iʻm not kidding.
Jack Butala:
Jill.
Jill DeWit:
I know, and some were … Iʻm like thatʻs all you have?
Jack Butala:
Thatʻs shocking
Jill DeWit:
Holy moly, what weʻve been doing, and we have more than that.
Jack Butala:
Thatʻs amazing to me.
Jill DeWit:
I know. The good news is I want to share with everyone who listens to this, because thereʻs not a lot of … You think that there’s a lot of competition but thereʻs not. I know right? I about fell over when I said are you kidding me?
Jack Butala:
How many people were there?
Jill DeWit:
Maybe … There were probably … I counted, Iʻm going to say 90. I literally sat and counted.
Jack Butala:
Thereʻs 2,000 members …
Jill DeWit:
2,000 members and 1/10 of them are there.
Jack Butala:
Thereʻs 2,000 members that are paying, Iʻm guessing around $200 a year ballpark?
Jill DeWit:
Thatʻs exactly right.
Jack Butala:
Of those 2,000 90 of them showed up that night you were there. Thereʻs like 40,000 or 50,000 licensed real estate agents in this city … I mean in this state, if my numbers are right.
Jill DeWit:
Yeah. Seriously I should get out my checklist. I sat … When I went to the realtor I made a little tick mark, I think I counted 3 realtors. Iʻm trying to think what else I counted. There were a couple different things I thought, Oh thatʻs interesting, but I was really blown away at the … Thereʻs not a lot of competition.
Jack Butala:
Yeah.
Jill DeWit:
Itʻs interesting too, so to parlay to this subject is even the speaker last night, the facilitator itʻs his group by the way. Heʻs been doing this like I said for 14 years now and he was telling everybody diversify. This ties in to our thing, I thought, nice thatʻs exactly right you should diversify.
Jack Butala:
I came up with this topic finally after about 15 minutes here, weʻre going to talk about the topic. I came up with this topic because we have a few members residential rental people that wanted to enhance their income. Jill and I wholesale houses quite often actually, itʻs not the main topic of what we do. I think it would be a great thing for most property managers or if youʻre used to sourcing transactions, houses or apartments itʻs so easy to add land to your portfolio. You could do 2 or 3 deals on the side a week and not … You already have a phone numbers established, you already have the hard work done. I really think that this falls into … itʻs a very logical extension for most real estate investment operations.
Jill DeWit:
I agree. One thing that I like about land is these transactions are … This was so cute, the guys on each side of me, when they heard what I did were like, “What.” The guy to my left, it was the coolest thing heʻs like, “I just read about that.” Like itʻs a new thing heʻd never heard of. Heʻs like, “Wow.” Iʻm like, “Itʻs the greatest thing ever, I can buy … The transactions are much easier. I donʻt have to visit the property, you know and itʻs all over the country.” The guy was like, “Wow.”
It was really … I could see the wheels turning, seriously thinking about why am I doing all this work? Iʻm like yeah, you can make a lot of money just doing this, and do both like we were just talking about. I have one last comment about this was, because this came up for me a lot yesterday. In an online community, not ours, sharing with some new members some things some new people that were getting investors, and one of the things I tell new investor all the time is this is a great place to start. You want to have an investment company. You want to be a real estate investor, this is a great place to start with land and grow form there. You will learn so much about transactions, transferring properties, working with the counties, buying, selling, marketing, you name it.
Jack Butala:
Thatʻs such good advice because what we do is so basic. I think … I usually say this, itʻs the least complicated real estate transaction youʻre ever going to come across. You have a buyer which is you, you have a seller which you find through using our direct mail technique. You donʻt even a lot of times even use an escrow agent. You contact a notary in a location of where the person who owns the property lives and you send some documents over get it signed and thatʻs it, get it recorded. Itʻs like a 5 step process. It’s really a great way to learn, Jill youʻre right. Pretty simple stuff, and then you can move forward. Like I said, we have a lot of members who continue with their home flipping operation or their rental operation, they just enhance it with land. Thatʻs cool, what else happened last night? Anything memorable and good?
Jill DeWit:
Iʻm trying to think here. No, itʻs just a really good group, I just was impressed with the number of people. Iʻll tell you another thing that you should know, theyʻre actually starting a, made me think about this, a women’s group.
Jack Butala:
Thatʻs perfect for you.
Jill DeWit:
Right? I thought, okay do I want to get involved, like I have enough on my plate as it is. I think Iʻll wait for them to come to me, weʻll see I donʻt know if I want to throw my name into the hat yet. They did announce that theyʻre going to start a women’s branch, if you will of that.
Jack Butala:
Jill and I get invited to speak all the time and itʻs to the point that weʻre going to have to really kind of pick and choose.
Jill DeWit:
I do.
Jack Butala:
Is this a good group? Would you … Itʻs a good thing this isnʻt video.
Jill DeWit:
No, I … No, no, no, no, no … I just donʻt know the group. You know what? Iʻll tell you, because 95% of the room was men. I donʻt have a good feel for a separate women’s group, how strong they would be.
Jack Butala:
No, I mean would you speak to the group last night?
Jill DeWit:
Oh, would I have spoken to them?
Jack Butala:
Yeah, I know you would speak to a women’s group.
Jill DeWit:
Oh absolutely yeah.
Jack Butala:
Would it be a factor?
Jill DeWit:
For the men’s group? Absolutely too, but itʻs just interesting the dynamics. I know I have stuff to offer, I know I can help. It’s just really do I want it? We have to pick and choose right now, how we spend our time. You know what? Hereʻs what it is, I want to reach as many people as possible. If they had a women’s group that was 2,000 people, Iʻd be all over it. Now, if they have a women’s group thatʻs 20? Iʻm not so sure thatʻs the best use of my time. Like our show, I know we reach more than 20.
Jack Butala:
A little bit more.
Jill DeWit:
Iʻve had at least 20 people personally tell me on the phone that, “Jill, Iʻm one of them.” So, thank you very… thank you seriously.
Jack Butala:
You know it all depends on how well iTunes is working that day.
Jill DeWit:
Oh, thatʻs true. There is that.
Jack Butala:
Sometimes we actually do reach about 20 people.
Jill DeWit:
Sometimes.
Jack Butala:
Sometimes 20,000.
Jill DeWit:
Sometimes 20,000.
Jack Butala:
Itʻs up to iTunes completely.
Jill DeWit:
Oh my gosh, itʻs the iTunes gods. [crosstalk 00:17:57]
Jack Butala:
I just push my own button
Jill DeWit:
Dude, you know your Walter White bobble head, maybe thereʻs something we should have, seriously Steven has one. We should have and iTunes shrine, in our office maybe and were going to like …
Jack Butala:
Yeah, with candles.
Jill DeWit:
Everyday come in and say a little prayer … Please iTunes work for us today.
Jack Butala:
My IT staff here at Land Academy Land Stay, is on a first name basis with the senior customer service podcast rep, his nameʻs Alan, at iTunes because … For a lot of really bad reasons.
Jill DeWit:
Oh.
Jack Butala:
All seriousness, thereʻs some glitch … You know I should say this, thereʻs some very glitchy stuff going on with iTunes podcasts, itʻs not us specifically even some very very large podcasts are having some serious issues right now. Itʻs not us, we apologize we release the show every single day at 3 oʻclock 7 days a week, and if itʻs not there, thereʻs a 98% chance …
Jill DeWit:
Itʻs not us.
Jack Butala:
Itʻs not us itʻs iTunes.
Jill DeWit:
I love it.
Jack Butala:
Hey, join us in another episode where Jill and I discuss your all important success in property investment and in life. Thatʻs great that you know, weʻre getting so busy now. I wanted to go to that thing last night.
Jill DeWit:
It was really interesting. Itʻs not bad, I think itʻs good sometimes that we divide and conquer.
Jack Butala:
I do too.
Jill DeWit:
You know what else too? I think that, if Iʻm sitting there with you, weʻre going to be more recognized. If youʻre by yourself and Iʻm by myself, I would stand a better chance of being under the radar.
Jack Butala:
I always figured that I brought you down. Like in any given big room [crosstalk 00:19:37]
Jill DeWit:
Well, there is that too. [crosstalk 00:19:41]
Jack Butala:
Man she showed up with him again?
Jill DeWit:
Dude, thereʻs that guy … Shucks man, I canʻt go up now. No.
Jack Butala:
I really wish she would turn her diamond ring around and put it inside of her palm, and wear it that way like she did last time.
Jill DeWit:
Yeah, thanks. Very, very funny. No, no it was good, and I like it. It gives me a chance to get to meet some different people and, so itʻs fun. I had a really good time.
Jack Butala:
Good.
Jill DeWit:
Itʻs good.
Jack Butala:
Outstanding.
Jill DeWit:
Thanks.
Jack Butala:
Well, itʻs nice to see you back here and fresh. Wrapping up a podcast with us.
Jill DeWit:
Thank you.
Jack Butala:
Thereʻs a lot of work … Iʻm watching whatʻs happening in our whole company right now and itʻs really transforming a lot faster and a lot better than I thought. I just wanted to do this with you .
Jill DeWit:
Me too.
Jack Butala:
Letʻs go buy some property.
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