Who in your life is worth looking after? (CFFL 0149)
Who in your life is worth looking after?
Jack Butala: Who in your life is worth looking after? 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:
This is Steven Jack Butala for Land Academy. Welcome to our Cash Flow from Land show. We show you how to buy property for half of what it’s worth and resell it the next day, free information from Jack, that’s me.
Jill DeWit:
And inspiration from Jill, that’s me.
Jack Butala:
In this episode, Jack … In this episode, Jill and I talk about who in your live is worth looking after, your wife, your kids, your dogs. Let’s see about this. Jill, great show today, before we start, let’s take a question posted by one of our members on SuccessPlant.com, our free online community.
Jill DeWit:
Cool. Jason from Fort Myers asks, I am new to the real estate investing market. I hear every salesperson talking about how amazing tax liens are and there is absolutely no risk. Clearly, there are risks involved. What’s the good, the bad, and the ugly associated with tax liens? Any information is greatly appreciated. I am here to learn and thank you for the advice.
Jack Butala:
If you have a question, or you want to be on the show, call 800-725-8816 and don’t be boring. Here’s the answer on this tax lien thing. Jill gets on me all the time too if my answer are too long because I could do a whole podcast, not just an episode, but a whole podcast on tax liens. That’s how much I love them. I love tax liens.
Here’s how it works. I’m going to explain exactly how it works, briefly and why, if you’re new to real estate investing, you should never do this. You should plan for it because about two years from now, when you’re doing great sending out mail, which is the best way that, in the beginning of your real estate career, to generate a ton of money fastest. After that, you can get into the tax lien biz because man, it’s awesome.
What happens is this. Somebody stops paying the taxes on their real estate, for whatever reason. A lot of times or mostly, in my experience, it’s because they passed away. They stop paying, for whatever reason. A lot of states, not all of them, but some of them, like Arizona issue a lien. The taxing authority issues a lien against the property. Eventually, after a huge amount of time goes by, they exercise their right to take the property back and actually own in.
In between that step, they issue a tax lien. They make it available for an unrelated third party to buy it. What happens is if Jill has a piece of property, she stops paying taxes. They issue a lien on her, her property. She doesn’t care. She doesn’t want it anyway. If they put it on the internet and I go over there and I buy the tax lien. The tax lien is the amount of taxes that are due. Let’s say it’s a thousand dollars. Then there is some fees associated so that the county can make some money and then an interest rate.
At two, Jill now has two choices. She can pay the tax lien, really pay me because I own the lien now. For that it’ll be a thousand dollars times, plus sixteen percent, so a thousand one hundred and sixty dollars or she can pay the … Then she gets the property back or she can just forget about it, at which time, I eventually can foreclose on it instead of the county and own the property.
It’s no-lose situation, just about. I’ll explain how you can lose and what the risk is in a second. It’s a no-lose situation and in Jill’s case, for me, I either get the property or I get my sixteen percent. Wall Street firms love tax liens. Here’s the problem that can happen. In some cases, especially in our land, rural land product type, the amount of taxes owed can exceed the value of the property because it’s so old.
If ten years have gone by and no one’s paid the taxes, and the taxes are a thousand dollars a year, now the taxes are ten thousand dollars to get this property back and the land is only worth four thousand, then no one is going to do anything about it. It doesn’t make any sense for me to go buy the tax lien and foreclose on it. There is some risk. You have to do some homework. You can’t just buy tax liens like a crazy person.
That’s what a lot of these Wall Street firms do. They buy them in tranches, in groups. They’re called tranches. Some are great in there and some are really … They’re not worth it. I get calls from people all the time that own groups of tax liens that because they hear a podcast or whatever and say, “I will deeply discount these if you just take them all off my hands, all of them, not just pick and choose the ones you want.”
Sound complicated? It is. I can even take it a step further. The foreclosure process is insane. It’s very, very lengthy. You usually need an attorney. You can do it yourself, but it takes a lot of organize. Man, but it can be just a fantastic way to buy property for one-tenth of what you can sell it for.
Jill DeWit:
Here’s where I say, “Now, you’re taking it too long.”
Jack Butala:
That’s it. That’s the answer. I love tax liens.
Jill DeWit:
My nails are dry. That’s how long that answer took. Just kidding. I am just kidding, you know.
Jack Butala:
You know what’s sad? I know you’re right.
Jill DeWit:
No, but that was a good one. You know what Steven. Thank you Steven AKA Jack. You could have spent a lot more time on that and you didn’t. I appreciate that.
Jack Butala:
Who in your life is worth looking after? More importantly, why the heck would we ever have a topic like this on a how to buy real estate for half show?
Jill DeWit:
I was wondering that myself.
Jack Butala:
That’s the sappiest, craziest … What? What?
Jill DeWit:
I’m kidding. I’m kidding.
Jack Butala:
Here’s what it is. No matter what you think, you are not embarking on a better life for yourself, for your own benefit. There is always somebody else. Take it from me. I don’t want to sound like your father here. There is always somebody else. Even if that person is not real yet, they might be in your head. Maybe it’s an anticipated relationship, and the person is not really in your life yet.
Trust me on this. It’s way more fun to share success and way more supportive to share failure with somebody you care about. If they’re there right from the beginning when you are successful, boy, sharing that and celebrating it with the person that was there right from the beginning and you can laugh about the stuff, it’s way better.
What you need to do is decide who this is. Decide who it is with some serious thought. Don’t just say, “Oh, I’m married, so it’s my wife,” or give it some thought. Take a few minutes and think about it. It might be more than one person. It might be your whole family. Inform these people that you’ve decided that they’re the people that are in your life and that you’re going to go down the path doing this thing. Make sure they’re on the same page. Save yourself a lot of gripe.
People call Jill all the time and say, “Look, I really want to do this with your guys. I want to become a member. I got the money set up, the whole thing, but my wife is just killing me. She’s saying I … You got to give me something more. You got to show me that this is real.” Jill’s standard answer is, “Have your wife call me. I’ll talk to her.” My point is in doing this show if you can’t get together with the people that you think you’re going to share this with, you’re setting yourself up to fail.
That’s what this series of shows really is about. It’s about setting yourself up to succeed and keeping the people in your life close to you that want you to succeed and are supporting you because it’s not just the information. Jill and I can provide all the information. We’ve done this almost sixteen thousand times. We know what works. I know what works and what doesn’t and I can communicate it very effectively to you for a very small amount of money, the knowledge that you get from us.
If you don’t have the motivation piece and the inspirational piece that Jill provides way more than I do, that’s what these shows are about, making sure that you have fall back when some stuff goes sideways because it always does. I don’t care what you do. I have a favorite Dr. Phil saying. I’m not a huge fan of Dr. Phil. You can think what you want. I’m not plugging the guy or I’m not or unplugging him. I’m just saying he says a few things that make a lot of sense to me.
One time I heard him say this, “Every single time you get into a relationship, a new relationship, you have to ask yourself this question, what am I giving up in my life to be in this relationship?” It really stuck with me because first of all, you’re presupposing when you ask yourself that question that you’re all set. You’re set up for it. You’re a smart person. You got your stuff together. Everything is going to be just fine on your own.
Now, you’re going to let somebody else in. What are you going to give up? Are you going to give up time, resources, money? Those are the kinds of things that you have ask yourself before you get into a real estate investment career like this. We have a lot of members who are fantastically intelligent and motivated, but they’re got some people and some things in their life that are standing directly in the way. I don’t think they thought about it before they really got into it. I don’t want that to happen to you.
You’ve informed these people. They say, “Heck yes, I’m right there. I’m on your team.” You need to move forward together. No one likes surprises when it comes to life events. If you’re a woman and you’re going to surprise. Your husband goes to work every morning. You got some little kids at home. You’re going to decide you’re going to embark on this real estate career by yourself while he’s at work and you’re watching the kids.
Your plan is to surprise the guy five years later with a bunch of money and all this talent. That’s not going to go over well. You want to share it with him because when you arrive, you arrive together. Sharing makes everything more rewarding. God, I sound like your father, don’t I?
Jill DeWit:
Yes, I’m sorry. I am still in the room. It may be hard to believe. I’m just sitting here patiently waiting. I didn’t know if you were going to ask me anything. I don’t know.
Jack Butala:
Maybe this is one of those shows that never sees the light of day.
Jill DeWit:
No, no, it’s just kind of all about you, you …
Jack Butala:
What do you think here, Jill?
Jill DeWit:
This is good.
Jack Butala:
Because you are …
Jill DeWit:
Really?
Jack Butala:
You are that other person for me.
Jill DeWit:
Do I get to talk?
Jack Butala:
Yeah.
Jill DeWit:
I’m just kidding. I’m just kidding. No, I’m …
Jack Butala:
Or did I blindside you like I just told everyone not to do?
Jill DeWit:
Yeah, kind of. No, you did kind of blindside me. I was just kind of watching.
Jack Butala:
Watching TV?
Jill DeWit:
Something, though. No, I agree with everything, of course. It all makes sense. There’s two things. Yes, it’s better to be on the same page because it’s so much easier if you’re working together towards the same goals. If somebody falls off the wagon, the other person, the other one is going to help them get back on and all that good thing, all those good things. Then my other point is and I say this often when I’m talking to people like that situation you described.
I say, I tell them, “Hey don’t do this until you have that significant other on the same page with you,” whether I talk to them or not. Whatever it is, they better be on the same page or it’s most likely not going to work. It is very, very important to have that. I was thinking about who it is in my life or your life that is worth looking after. You want to hear my list?
Jack Butala:
Yes, yes, yes, I do.
Jill DeWit:
I came up with a list. Here’s what I think. Steven you just described the philosophy. Now, I’m bringing it down to real stuff.
Jack Butala:
Awesome.
Jill DeWit:
Who is worth looking after at the end of the day? It’s got to be you, first of all. You got to look after you. If you don’t care of you, you’re going to fall apart. We all joke about this. You take a step back. You take a break. Other people miss you. You recharge your batteries. You come back better and stronger. You just got to do that kind of stuff. You got to take care of you.
Number two, your people, look out for you people like Steven just explained. Who is it in your life? If they’re not here yet, be ready for them. Be ready to take care of them, look after them. Then the last thing is who is worth looking after? Other good people. What if there is people that aren’t directly in your world like you have a “Relationship” with but they’re good people. Give back. That was my third …
Jack Butala:
I love it.
Jill DeWit:
… thank you, example of who is worth looking after, so you, your people, and then other good people.
Jack Butala:
This is the if [them 00:13:21] segment of the show. If you do X, then Y will happen. If you’re held back from pursuing this real estate career, investing career, because of one topic like you’re avoiding talking to people on the phone, or you’re just allergic to paperwork or there’s a few things that are just stopping you. You think it’s a good idea. You see other people do it, but you’re like, “Ah, I’m not going to do this because I really am uncomfortable talking to people on the phone.”
Believe it or not, that held me back in real estate for a long time. If you do that, if you’re held back from pursuing this real estate career because of one of these things, then remedy it. Get yourself a partner. Get an employee. Find an outsource method, but do not let this silly little things like I did for a long time stop you from doing it because very soon, way sooner than you think, you’re going to be rolling in cash. You’re going to hire out the help that you need. You get all organized and figure out the stuff that you want to do and that you don’t want to do and what you’re good.
Jill and I cut a line down the middle of all the responsibilities at all these companies we have. She does the stuff that she’s good at and that she likes. I do the stuff that I’m good at and that I like. We have a team to do that stuff that neither one of us really want to do like deeds, for example. If you …
Jill DeWit:
Deeds, why did you bring that up?
Jack Butala:
No, you know why because no one likes to do deeds. We have staff do it.
Jill DeWit:
I know.
Jack Butala:
We’ve all done it. I still have to do it because of staffing or people are out or whatever. It’s just doing paperwork. I’ve done literally thousands of deeds in my life, thousands. I’m over it.
Jill DeWit:
It’s just it’s funny. I’m glad. It’s a good thing to lighten up the show a little bit because it’s getting a little deep here. It’s funny because it’s a thing that we all go, “Ah, man, whose? Are those ready?” Even if they’re done, we got to sign them. It’s really not a big deal.
Jack Butala:
No worse whining about it.
Jill DeWit:
You know what it is. It’s like, “Ah man, do I have to go put another check in the bank? Ah, I went last week. It’s somebody else’s turn.” It’s silly because that’s really what it is, but we’re like, “Ah.”
Jack Butala:
You want to hear something funny?
Jill DeWit:
Yes.
Jack Butala:
A funny story, for years, this is before you Jill, I had a signature stamp. The person that worked directly under me had my signature stamp so all the checks that went out, stamped my signature, all the deeds that went out, stamped my signature. One day, that …
Jill DeWit:
Oh, no.
Jack Butala:
… somebody called from the bank and said, “You guys can’t do … “ This went on for years. First of all, you should never do this. I really trusted this person and rightfully so. I should have. She ended up being one of the best employees ever. You never want to have somebody have your signature stamp. She couldn’t have taken, written one check, taken everything out of the bank and gone to Jamaica. That’s how lazy I was about depositing checks and the whole thing, and going to the bank.
Jill DeWit:
That’s hilarious.
Jack Butala:
Getting cashiers checks.
Jill DeWit:
Exactly, isn’t that silly? It’s funny. That’s good.
Jack Butala:
If you have a question or you want to be on the show, call 800-725-8816. I bet Jill has something inspirational to share with us today.
Jill DeWit:
It just ties into this whole topic when I sit and I think of what I want to talk about and share with whatever subject you come up with. Really, it’s just who helps you everyday? Not just worth looking after, but who is really helping you everyday? Think about it. Is it your spouse? It may not be your spouse.
Jack Butala:
Your spouse might be standing in your way.
Jill DeWit:
I know. For me, Steven, it’s you, clearly. You make me coffee all the time. You bring me coffee. It’s a little thing that helps …
Jack Butala:
You bring me scotch.
Jill DeWit:
… me everyday.
Jack Butala:
It helps, me, too.
Jill DeWit:
I bring you scotch. There you go. That’s right. Oh my gosh, I guess it’s just who help. Think about who helps you everyday, really helps you and what little thing it is. It’s a good little inspiration like, “Oh my God,” because they wouldn’t be doing that for you if you weren’t bringing something to them.
Jack Butala:
That’s right.
Jill DeWit:
Maybe it’s a mentor or a colleague. God, that person is always my, this ex-assistant. Every time I asked for something, she’s on it. Why? Why? Why? What is it about me? You’re nice and you treat him like …
Jack Butala:
You’re fair.
Jill DeWit:
You’re fair and you’re respectful. You don’t yell at him and boss him around, whatever, just a nice thing. It’s a good little inspiration thing to think about it. You’re doing something right because they’re doing something for you, too.
Jack Butala:
Excellent.
Jill DeWit:
More importantly, you keep going on that up spiral. You and I talk about that. It’s great to if they’re going to … You know what. They’re going to be so nice to me, so I’m going to do this. The next you know they’re doing something even nicer. What a great problem to have.
Jack Butala:
Managing people and sharing the profits and the successes and stuff is part of this. It’s a huge part of it because we have members. This is what happens with our members. They send a thousand letters out, fifteen hundred letters, the first time. A bunch of them come back as deals. They get their feet wet. They learn how. One of the first things they learn is that wait a minute. If I sent fifteen hundred of these out, what the heck would happen if I sent fifteen thousand or a hundred and fifty thousand?
You’re going to get the same numbers back. If you’re buying one to five percent, of the letters that you‘ve sent out, you’re buying a property, if you’re going to buy one to five percent of the properties that you send a hundred and fifty thousand letters out, there’s no way you can handle that yourself. You need to bring some people in. That’s part of this.
You got to decide early on who do you want to be involved or who are you going to let in? Like the Dr. Phil thing, who are you going to let in on this great thing that you’re doing? Who is going to stand in your way? There is always going to be a few of each. That’s my point. Join us in another episode where Jack and Jill discuss how to use information that’s me …
Jill DeWit:
And inspirational, that’s me.
Jack Butala:
… to get just about anything you want for half price. We use it everyday to buy property for half and sell it immediately. Good show, Jill, a little too philosophical you think, too soft? Are there people out there saying, “Please just tell us how to do this then. Please tell us how to send letters out. I’m ready. I want to do it.”
Jill DeWit:
It was a little deep.
Jack Butala:
What do you say to those people like that?
Jill DeWit:
Just so funny because that’s like, you know what I mean. It’s just kind of deep. I don’t know. I hope that they were ready for deep.
Jack Butala:
Our next show is called “Why Real Estate Is the Most Popular Way to Create Wealth.”
Jill DeWit:
All right, good, that won’t be deep.
Jack Butala:
That’s going to be it’s about real estate and buying …
Jill DeWit:
It’s going to be fun.
Jack Butala:
… buying cheap land and houses and stuff.
Jill DeWit:
Awesome. We do that very well. I won.
Jack Butala:
We have to have these types of shows, though, even if it’s just for us because we feel good about it because we can’t talk about land every single time.
Jill DeWit:
It’s funny.
Jack Butala:
Or flipping houses.
Jill DeWit:
It’s true. It’s all part of the big picture. It really is. It all goes together. There’s an emotional, financial, however you want to title these things, so pieces.
Jack Butala:
Let’s go buy some property for half price today and sell it, Jack and Jill information and inspiration.
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