Seller Called Back on My Offer – Wants to Close Sooner (CFFL 0142)
Seller Called Back on My Offer – Wants to Close Sooner
Jack Butala: Seller Called Back on My Offer – Wants to Close Sooner. 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 8 part series Jill and I, talk about what to do when sellers begin to start calling your back based on the offers that you sent them in the mail, to buy their property. This is episode 7, of 8, and it’s called The seller called back on my offer and they want to close sooner. They want to close sooner, even sooner than you were proposing and what we say is, “Give it about a week.” That’s pretty motivated. Jill, great show, great topic today. Before we start let’s take a question from a caller.
Jill :
Jackie from North Dakota called in and asked, “Does your program work for farm land?”
Jack Butala:
The straight answer is, Jackie, not as well as for other real estate property types and here’s why. Farm land is a commodity, generally, so you can’t ask anybody, let’s say … I’m going to use Ohio for an example. Anybody in Central Ohio, what acre of farm land is going for right now, and they’re going to tell you pretty directly, and pretty with clear examples of people they know who have just sold, or bought acres of farmland. They’ll say, “Hey, it’s worth 5000, 7000, 8000.” Even one example they make of somebody’s brother in-law that sold for [inaudible 00:01:24], or really low, or really high. The reason that our methodology about buying property so inexpensively works so well, is because there is an element of triggering. Something that’s triggering the seller to sell their property. We are coming in as a method of convenience for them, and closing other property and cashing them out of that. They’re willing to forego a maximum price for that.
I’ve noticed that people are farmers that when those same triggers happen, they have a plan and place already. They’ll sell it to the brother-in-law, or then they might know a broker. It sells very, very quickly, and almost always does not go to the open market to be sold. The answer is, Jackie from North Dakota, give it a shot but it will work, but your returns … The percentages will be much, much, lower.
Jill :
Is it safe to say too, “If you are lucky enough to get something like that, it’s pay attention to it. If it’s someone calling you back on something and they say it’s farm land, you should pack something that might be worth.”
Jack Butala:
The way to buy farm land, if you really want to do that, is to get in there get yourself and … There’s a lot of people … A lot of regular people who have nothing to do with farming, buy farm land, and lease it. They typically buy it for market value at the time, as they should I think.
Jill :
Right.
Jack Butala:
You calculate the return on investment, you may be line it up against the trailer park. Lining it up against a department building, or maybe what we do with the vacant land, and you see what the return is, and you see if it’s acceptable to you, or it’s not and the risk, then you buy it. I think that pretty clearly answers the question.
Jill :
I think so.
Jack Butala:
Back to the topic here.
Jill :
Okay.
Jack Butala:
The seller called, they called back on the offer, they want to close sooner than you are proposing. Jill, you’re on the front lines of this all time, what do you do? How is this different, and what do you do?
Jill :
Awesome. I love it that’s what we are here for. This is it. My first question is why? What is it, that they want to close so quickly. What’s their cash crunch that you just … You hit them at the right time. Really, at the right time. They are like,”Oh, my gosh oh, oh.” Yet the the answer is, “Yes. Where can we meet kind of thing?” Kind of thing. I tried to find out what it is, and maybe you can negotiate a better deal, because they aren’t in such a hurry. I mean it’s true. I have a great example. It wasn’t the end of last year, it was year before, but we had a … Do you know what I’m talking about?
Jack Butala:
No.
Jill :
The end of the year tax guy, with these great properties. I had a guy call me back on a mailer for a five acre property somewhere. We were negotiating the price for that. It was in December. It was between Christmas and new year, last year. I did my usual … One of the things I ask is, “Do you have anything else?” He’s like , “As a matter fact I do. I have this a lot it’s in the sub division and … ”
Jack Butala:
I remember this deal.
Jill :
Remember this?
Jack Butala:
Yeah. We cleaned up on that.
Jill :
My goodness and I like. Well, all kinds of properties. He thought this not what I’d be looking for.
Jack Butala:
We made like 25000, or 30000 box on that.
Jill :
It was fantastic.
Jack Butala:
Really fast.
Jill :
He was a realtor. He needed to get it off his balance sheet, or you want to call it … He need to get off his plate by the end of the year because he was trying to qualify for …
Jack Butala:
For a V.A loan.
Jill :
That’s it. He bought this lot. I want to say he … But once upon a time it was $49000, I remember looking it up. Now I don’t know if that’s exactly what he paid, or what, or who paid that. He had it listed it for $25000 and no [bites 00:05:18]. It was a gorgeous. paved sub division, great area.
Jack Butala:
It Was an [infill 00:05:22] lot with two houses on either side. A house on either side of it.
Jill :
It was in California.
Jack Butala:
Utilities right to the lot line. He was ready to have a house be built on that, a really nice house.
Jill :
Exactly I got it. I negotiated … Should I, can I …
Jack Butala:
Yeah. Heck yes.
Jill :
I bought it for $1900. I negotiated it in with the deal with the other property. He just needed to get off his thing. He was done with it.
Jack Butala:
He wasn’t unhappy about it?
Jill :
He was not unhappy about it.
Jack Butala:
He was excited.
Jill :
He was so excited. All we had to do is really, really quick. That was part of the deal. He’s like, “The answer is yes. Can you over write tomorrow, I’ll have it signed and we’re done and out”
Jack Butala:
That’s a great example of this topic Jill. I forgot about that deal entirely.
Jill :
Thank you. I know. It was great. That’s one of my advice, found why, and what’s going on, and make it up. Still do your due diligence, you don’t want to go blindly, “Okay.” You want to still do your homework, and that doesn’t take a lot of time. Look it up, make sure it’s what you want, and make it up, that’s why we’re here. You really can do it this fast.
Jack Butala:
In our offer I think we gave them … We say that our offer is valid for … I usually say by the end of the month. If the offer goes out into 2 or 3 weeks, that’s a pretty done fast close for anything, and in real state transaction. If somebody is saying we want to do it faster than that, the first thing I think is, “All right, wait a second, do you really own it, am I talking to the right person?” Just basic regular stuff. It’s all the staff we check out anyway. I just want to check it out. Then the other thing is that, the seller is really opening a door for you to negotiate the deal, even further down than what you’re sending the offer for, because they want to close it faster. That almost happens when they do that.
To summarize it I guess, it was otherwise to sell property and close faster there is a reason like Jill said. It’s usually a money reason, and it should throw up your radar a little bit higher, check everything twice instead of once, it shouldn’t take really any longer than it does anyway, but make sure you want to do the deal, negotiate it a little bit better price, and then help the seller get what they want, close it faster then.
Jill :
It’s awesome. I love this, I don’t want to drag it out.
Jack Butala:
No. Exactly.
Jill :
That’s the whole thing. We don’t need to talk about it, we don’t want to drag it out, I love the transactions. We talk about that all the time. The best transactions, it was one of our calls last week with our Land Academy members was, how to spot a serious buyer, and one of the thing is, there is less talking.
Jack Butala:
Less talking is always better, almost in everything in life in my opinion. Some people know but …
Jill :
Give us an example seriously over that [inaudible 00:08:11].
Jack Butala:
Give us an example of, when less talking is always better?
Jill :
No, when it’s more wait … What did you say?
Jack Butala:
I said less talking is always better.
Jill :
That’s true, but you said sometimes no.
Jack Butala:
I did, didn’t I?
Jill :
Yes. You did.
Jack Butala:
I’m trying to think very quickly. I have an example of when more talking is better.
Jill :
I would like to know.
Jack Butala:
You know when more is better like when you’re really trying to learn something technical, and you’re talking to somebody really probably … We have members like this. You’re really engrossed in what you’re doing, and you’re trying to learn from somebody who has done a bunch of deals, almost 16000 deals. It’s painful, but you learn more. I know. You know what I don’t know.
Jill :
I was waiting for that, I’m like, “There is something coming.” Like, “Where is he going to go?”
Jack Butala:
I don’t know.
Jill :
You know what, you should a lot of questions, and you should do it your local R.E.I event, not here. Just kidding. Just joking.
Jack Butala:
There is a lot of talking when you just hanging out with your friends and talking about I don’t know something … You know what when you’re really interested in something like a hobby type of thing, and you’re hanging with like kind people like you, and you’re just talking everybody’s ear off, and everybody else is talking your ear off.
Jill :
How about that wannabe actor, the other night, and he seemed to have a lot of questions for you.
Jack Butala:
Yeah.
Jill :
Was that a good scenario? You really did …
Jack Butala:
I think that was a not-acting question, I’m not an actor at all. He said a lot of question like I think we’re older, and we’re successful and I think he had questions like that. That’s all.
Jill :
I think that was good, because clearly we’re not 23, he’s 23, that guy.
Jack Butala:
He was just really complimentary of him. He’s a good kid.
Jill :
He was. He is.
Jack Butala:
I’m always happy to help enthusiastic people always. Jill and I teach a class at N.A.U where substitute teachers for an entrepreneur class at Northern Arizona University, the campus that’s in Phoenix. We’ve had great classes, and we’ve had not so great classes. I mean classes of people, and sometimes because they’re just falling asleep, they have no interest, they don’t want to be there, then it’s just painful, even saying hello is painful.
Jill :
It is. It’s funnier right? You’re right.
Jack Butala:
Join us on another episode where Jill and I discuss your all important success in property investment and in life. Not bad for take 2?
Jill :
That was okay.
Jack Butala:
I turned it on this time.
Jill :
Thank you for doing that. I appreciate you recording this one. That’s so funny.
Jack Butala:
I haven’t done that in a lot of years. It’s probably about a year, like I forget to hit the record button.
Jill :
I have a reason why; because I think in our normal set up, you’re not having to do it, because you have people do it. Here we’re working remote and you’re not producing them but …
Jack Butala:
I’m on camera and it’s strange.
Jill :
Exactly. We have a few different variables going on here right now that we don’t normally do, so that might be why.
Jack Butala:
Hey. If you’re a regular listener on the podcast in the … This podcast is doing extremely well, from a listenersip. Check us out on Periscope. Jill and I began to record … Not record, I keep saying record, to film and broadcast live through Periscope, which is a division, or a sister company to Twitter, and if you’re interested in that kind of thing, you can check out us live filming the episodes, long before they actually hit the actual podcast schedule.
Jill :
Exactly iTunes.
Jack Butala:
This will air days from now, if not weeks, or months, depending on where we’re on the schedule. That’s my P.S.A. Not the regular after talk, is it Jill. Usually we swear and stuff. Not swear as such, silly.
Jill :
Exactly. Give me some … You have anything silly to share, and funny and …
Jack Butala:
No, I honestly I can’t be happier with where we’re right now. It’s going to sound sad and it’s sad to you, but we’re on vacation, but we’re working and those are my favorite types of vacations where you can work, but play, and have some fun and the weatheris good and the whole thing.
Jill :
We have this deal that when we’re wrapping up our day, we set a timer and you better be on a side walk, on your bike by X time, and it’s like, “That’s it.”
Jack Butala:
On a bike. When we done, down to Beach California, [super board 00:12:34], look it up. It’s just a wonderful little tiny beach community with everybody is on a bike having fun.
Jill :
Exactly.
Jack Butala:
Including us.
Jill :
Including us.
Jack Butala:
In the middle of week.
Jill :
Right.
Jack Butala:
Why? Because we sold a total property over the years, collecting all the payments and kicking back.
Jill :
Good point, that’s why we can do this.
Jack Butala:
On that note, I don’t know if there is a better note, let’s go buy some property.
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