How to Record a Deed (CFFL 0235)
How to Record a Deed
Jack Butala: How to Record a Deed. 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 with Jill DeWit.
Jill DeWit: Hi!
Jack Butala: This is our show. Welcome to it.
In this episode, Jill and I talk about how to record a deed. Doesn’t get any more simple than that, this kind of show. Good show, anyway. Let’s take a question posted by one of our members on SuccessPlans.com, our free online community.
Jill DeWit: Cool. Actually I stole this question from another real estate environment that you are involved in, you and I are involved in, because this question just kind of … When I read it, you’ll see why.
Jack Butala: Okay.
Jill DeWit: I saw this question, and I’m like, “I’ve got to help this person.”
Jack Butala: I’m reading ahead.
Jill DeWit: Yeah, you are reading ahead. I know it’s funny because I emailed myself this question.
Jack Butala: Prepare. This is Jill’s peeve.
Jill DeWit: This is so good.
Jack Butala: Maybe her pet peeve-
Jill DeWit: Oh my gosh.
Jack Butala: But a high ranking peeve.
Jill DeWit: I’m tooling around, just kind of looking at what’s going on, what people are talking about, and, “Hey, how can I help?” This question jumped out at me, and I haven’t replied to them yet online, but I’m like, “Oh, no, no.” Here you go. Blank on another communications site wrote (and the initials are BP), “I have been driving for dollars in southern California.”
Jill DeWit: It’s hilarious. Okay. Red flag, red flag. There’s two. “Finding some houses that I will be mailing to you.” Red flag number three. “I’m looking to find the owner’s address.”
Jack Butala: Four.
Jill DeWit: There’s a red flag four. Yes. “I think I’m doing it wrong.”
Jack Butala: Yeah!
Jill DeWit: I’m sure you are. Five. This is …
Jack Butala: This is fun!
Jill DeWit: I know, this …
Jack Butala: Usually we have to be politically correct.
Jill DeWit: Yeah, no, not this one.
Jack Butala: Plus this guy’s not a member, so we can just roast him.
Jill DeWit: Oh my gosh.
Jack Butala: Did you change his name?
Jill DeWit: No, I did not. That is this guy’s name. Okay. “I attached a link.” I didn’t look that up yet. “I attached a link to an example house.” What is that? Like a picture from his cell phone? That’s six.
Jack Butala: You know that’s exactly what it is.
Jill DeWit: Oh my gosh.
Jack Butala: It’s a house that’s fallen down.
Jill DeWit: Oh my god.
Jack Butala: Why are houses that are falling down better deals [inaudible 00:02:05]? Keep going.
Jill DeWit: “Is this the proper website to look for a mail address if it’s an absentee owner?”
Jack Butala: Oh my god. Where do people get their stuff?
Jill DeWit: Bing! Eight. “Can someone give me some advice on the research phase of Driving for Dollars? Thank you so much.”
Jack Butala: Yes, someone is me.
Jill DeWit: Oh my god. Well, the research is stop it!
Jack Butala: This is what you don’t do. This is how you fail.
Jill DeWit: Do I repeat the whole thing?
Jack Butala: How to fail.
Jill DeWit: How to fail by this-
Jack Butala: How to fail, and then unfortunately a lot of people do this. They fail, and then they go. They’re out of the business.
Jill DeWit: Yeah.
Jack Butala: That’s why it’s so tragic.
Jill DeWit: You’re right.
Jack Butala: Failing itself is not tragic, it’s awesome.
Jill DeWit: Right.
Jack Butala: This guy failed, so hopefully he’s going to pick himself back up and listen to this, and he’s going to do it right.
Jill DeWit: Yeah, he might not recover. You’re right.
Jack Butala: Usually there’s one or two things that are going on that’s wrong. This is like nine.
Jill DeWit: Yup.
Jack Butala: Do not get in your car and Drive for Dollars. It is inefficient. It’s a waste of time, energy, and money, and all of it. You’re going to go look at 25 houses or some, 25 or 30 pieces of land, and what you’re looking for is not the right thing. You’re not looking for a substandard property, all right? Real estate has very little to do with why you’re successful at this. Why you’re successful is that you’re good at manipulating data and negotiating. You’re good at data and you’re good at sending offers and you’re good at machine like processing of property. The actual property itself is secondary.
What this guy’s doing is driving around, looking for a fallen down house. Somebody told him for whatever reason that getting the owner’s address at the county’s a good idea, which it’s not. Then mailing it, and hopefully checking to see if it’s an absentee owner because then – this is all wrong- that absentee owners for whatever reason are more likely to take a undervalued offer. Now he’s wasted a ton of time. This is what you do instead.
Jill, I’d love to hear your opinion on this when we’re done, when I’m done ranting.
Pick a neighborhood out that you like, where ever you’re driving around. Get out of the car, go back in your house or your office, then that same neighborhood, look it up on DataToDoorstep, RealQuest, or whatever. You’re going to waste your time if you’re not using that product, trust me. There’s only a couple more out there, and they’re substandard.
Send everybody in that neighborhood an offer. Every single person. Don’t just … Forget about back tax property, forget about absentee owners. I know you’ve heard it from all different … Just send everybody an offer, and somebody is going to sign it and send it back. Don’t send them a postcard that says, “I would like to talk to you about buying your house,” because they’re going to call you and do that. They’re going to do exactly what you said, call you and talk about buying your house. Then you’re going to end up hearing about their Aunt Sally and why they paid too much for the house, and they bought it during the downturn, and now you’ve wasted an hour learning about Aunt Sally. Send them a written offer with a time frame to close like we’ve been teaching for a million years, and some people are going to get upset and they’re going to call you and you’re going to hang up, or you’re going to tell them a beautiful story, change their mind around, and some people are going to sign the thing and send it right back, and you’re going to buy it for half of what it’s worth, and you never left your coffee table.
Jill DeWit: Mm-hmm (affirmative).
Jack Butala: Who teaches this stuff, Jill?
Jill DeWit: I don’t know. I just think it’s 19 whatever, and people don’t realize that there’s a better way. It’s like this guy’s using a phone book, and he doesn’t know you can Google a phone number. That’s kind of how I feel when this whole Driving for Dollars. It’s so outdated.
Jack Butala: Why is property that’s fallen down, and houses, a better deal than if it’s not. It’s not!
Jill DeWit: Right. I don’t want to touch those. Do you really want that?
Jack Butala: Why would you just … What you’re after is a great deal. You’re not after a fallen down house.
Jill DeWit: Right.
Jack Butala: Maybe one of the people that got the offer, they just had a death in the family, they need a ton of money, and they need it next week, and they have the greatest house on the block. That’s what you’re smoking out
Jill DeWit: Right, and they don’t have time to list it for sale. They don’t want to talk to a realtor. Whatever it is, that’s not their thing.
Jack Butala: Maybe they … This happens a lot to Jill and I. Maybe their house is so dirty inside and they want to sell it, but they don’t want to clean it up and hire a realtor and go through all that. They would rather just get a check from us. It’s as simple as that. They don’t want to list their house and have to leave on Sunday when a real estate agent’s going to hold it open. They’d rather just get the check and leave, because they got a job in Boston.
Jill DeWit: Exactly.
Jack Butala: That’s what you’re looking for. You’re not looking for a fallen down house. How many times do we have to say it?
Jill DeWit: Well, and the whole thing too. How many times have you and I … The times that those fallen down houses, there’s a reason it’s sitting there abandoned. It may be in a trust mess, and that’s why nobody’s touching it.
Jack Butala: Yeah, right? Why?
Jill DeWit: It’s sitting there for a year.
Jack Butala: You seek out problematic properties.
Jill DeWit: Do you want to get involved in that? Heck no. Why wouldn’t you buy the house next door? Hello? They don’t like it because, whatever it is.
Jack Butala: Same thing with the back tax list. Everybody teaches it. Well, get a back tax list from accounting and send everybody an offer. Well, what you’re doing is sending offers to problematic property.
Jill DeWit: Right.
Jack Butala: You’d better be close to an attorney to figure out some of the estate stuff that goes on. Why not just send it to all the awesome property and look for the person that’s moving to Boston?
Jill DeWit: Exactly.
Jack Butala: We’ve only been doing it for 15,000 properties in 16
Jill DeWit: Yeah, so we’re not really sure. We’re only still testing it now.
Jack Butala: You know what, let’s go Drive for Dollars tomorrow.
Jill DeWit: I think so. I think maybe at about … You know what Jack? I think once we hit our 20,000 transactions, then I might be comfortable.
Jack Butala: You know what? I should test … I’m not going to do this, but how long would it take to Drive for Dollars to buy a property how he’s describing?
Jill DeWit: We should do that.
Jack Butala: I mean I bet it would take a month. No, it would take longer than that.
Jill DeWit: You know what? Shoot, you know what? Wait a minute. I almost want to reach out to this guy and say, “Let’s play this.”
Jack Butala: This isn’t even what the show’s about.
Jill DeWit: I know, but I kind of want to reach out to him and go, “Hey Blake, let me know how this goes. I’m really curious. Tell me how long it takes you to make this whole thing happen. I’m going to be six months.”
Jack Butala: Ask any of our members how long it takes to get a signed offer for half of what a property’s worth, and this is what they’ll tell you. Go on SuccessPlans.com, get a user name, it’s all free, and ask this question. “How long does it take to buy your first property?” They’re going to tell you this: “Well, it took me a weekend to learn all this stuff because I had to watch Jack and Jill on this silly DVD thing, and then it took me about three more days to figure out how to analyze the data, get it to them, send it to the offer, those guys make that pretty easy. Then I sent [inaudible 00:08:58] sent some stuff out in the mail, sent some offers out in the mail, just like they tell you.”
Jill DeWit: That took half a day, right?
Jack Butala: Now they’re two weeks into this, and the offers are in the mail. You wait two weeks, because the Postal Service … The cheapest way to do it is slow. Now you’re a month in, all in, and you’ve got a signed offer on your kitchen table. 30 days.
Jill DeWit: How many hours did you put in?
Jack Butala: The program’s 10 hours, learning after that probably 2 to 4 … I bet probably 24 hours total, ball park.
Jill DeWit: Thank you. I’m good with that.
Jack Butala: We could do it in a weekend, easy. You could get offers out in the mail. If you had not started your real estate career, you are 24 hours away, if you’re organized and you can keep your children away from you and all your life stuff away from you, you are 24 hours away from having offers out in the mail, and probably about 2 weeks away from buying property for half price.
Jill DeWit: Yeah.
Jack Butala: Do I sound like a salesman? I don’t want to. That’s not my point here. This pisses me off, quite honestly.
Jill DeWit: Thank you.
Jack Butala: I hate to see people truly-
Jill DeWit: Wasting time.
Jack Butala: Wasting time and money.
Jill DeWit: Doing it wrong.
Jack Butala: This guy, he’s going to fail.
Jill DeWit: I know.
Jack Butala: He’s going to say, “Well real estate investing sucks,” and it doesn’t. Real estate investing is awesome. That’s what’s upsetting.
Jill DeWit: I agree.
Jack Butala: I’m really glad you chose this question.
Jill DeWit: Thank you.
Jack Butala: I think it’s going to help a lot of people.
Jill DeWit: By the way, I changed none of that. That was all 100% verbatim cut and paste. The whole southern California and everything like that, I’m just cracking up. I just think it’s great.
Jack Butala: I see you’re writing down stuff for social media quotes. Here’s a quote out of this.
Jill DeWit: Ready.
Jack Butala: “I think I’m doing it wrong. Hey guys, I’ve been Driving for Dollars and I think I’m doing it wrong.”
Jill DeWit: There’s really nothing right about it. That’s so good.
Jack Butala: Blake, we’re not busting on you, dude. You’re not alone. The vast majority of people that come to us here at LandAcademy have experienced something just like that, and they heard maybe an episode, or they read some stuff about how everybody teaches a 1979 version of real estate investing still. I don’t know. Why not just teach the right stuff?
Jill DeWit: That’s where I’m at.
Jack Butala: People succeed, and then …
Jill DeWit: Why does nobody quit? Can you imagine? It’s like I’d be sitting in … Imagine you’re a kid sitting in a classroom, and it’s a science classroom, and they’re still teaching science from 50 years ago, and you’re kind of going, “You know we actually have phones that do that now?” It’s like they never caught up.
Jack Butala: Still [inaudible 00:11:29]
Jill DeWit: They’re still teaching a phone is always plugged into the wall.
Jack Butala: Hey, for you young people out there, there used to be these phones that you plugged into the wall. You know what? You don’t have to worry about that, because yours is in your pocket. There’s a whole lesson right there.
Jill DeWit: Thank you.
Jack Butala: Hey, Driving for Dollars people, there used to be this thing called Driving for Dollars, but you don’t have to worry about that any more.
Jill DeWit: Exactly.
Jack Butala: There’s this new thing called data manipulation and assessor data, and you can get it and do it and in 24 hours have 17 million offers. I’m not exaggerating. You could put 10 to 40,000, maybe 50,000 offers in the mail 24 hours from now, and expect about being super conservative, a 1% purchase rate. Every 100 offers you send out, you’re going to buy 1 to 5% of the ones that go out, if you do it right for land. For houses, it’s about 1 out of 1,000 to 2,000 letters. I’m talking about scraping the bottom. That’s not trying to get 4% off. You’re trying to buy it for 40 to 60% of what you can sell it for the next day.
Jill DeWit: Awesome.
Jack Butala: You don’t get in your car. You don’t need a car. If you don’t have a car, don’t worry.
Jill DeWit: Good point. You don’t need a car if you [inaudible 00:12:55]
Jack Butala: It’s not like dating a girl. Remember like when you’re a kid, you’re like, “That girl would never … I don’t have a car. That girl’s not going to go out with me.”
Jill DeWit: If you don’t have a car, or don’t have a cool car. What if you have an awful car?
Jack Butala: Did you ever date a guy with a real bad car?
Jill DeWit: No.
Jack Butala: Besides me.
Jill DeWit: You know what’s really funny? This is totally off topic. Your first car, I think your first car is similar to my first boyfriend’s car, which was a black VW bug.
Jack Butala: Yeah, my first car was a ’73 Super Beetle.
Jill DeWit: That’s cool.
Jack Butala: Semi-automatic. It had no clutch. It had the stick shift, but there’s no clutch. You look down there, it’s not there.
Jill DeWit: How do you shift?
Jack Butala: You just shift like … You put your foot on the gas. I’ve always wondered why all cars aren’t like this. Somebody could probably tell me. All manual transmissions-
Jill DeWit: Wait, was there a regular stick, or was it on the-
Jack Butala: Yeah.
Jill DeWit: It wasn’t on the tree, because I know what that is.
Jack Butala: It was just like a regular stick shift. Any other car that’s got a stick shift, everything’s the same. You just press the gas, you run through the first gear, and you change it. You put it into second.
Jill DeWit: Hmm. What’s the point of a clutch then?
Jack Butala: That’s what I … If someone could tell me, I’d like to know.
Jill DeWit: You know what? We always talked about being Car Talk. We officially are now Car Talk.
Jack Butala: I just bought a motorcycle. Here’s another thing about clutches. I just bought a motorcycle. It has what’s called … I didn’t even know this existed. A CVT transmission, Continuous something Transmission, like Continuous Velocity, I don’t know. There’s no clutch there, and there’s no transmission. You don’t even change. They took it all away. It just knows.
Jill DeWit: I didn’t even realize that. It’s shifting automatically?
Jack Butala: Yeah, there’s lots of gears. I don’t know how many gears it has. It just knows where you are in the whole thing, and it’s fast, man. You know how with an automatic transmission, there’s no shifting, you can still hear it and feel it shift?
Jill DeWit: Uh huh.
Jack Butala: You know which gear you’re in if you listen. This CVT, it’s just smooth. It’s continuous.
Jill DeWit: Huh. Interesting.
Jack Butala: You stop at a light, it does something, and it’s all back in first gear or whatever. I’m talking about something I don’t know anything about.
Jill DeWit: So you don’t feel? You don’t feel like a shifting happening? It’s just that’s it?
Jack Butala: You don’t feel it at all.
Jill DeWit: Huh.
Jack Butala: Like on a scooter.
Jill DeWit: You know what, I’m sitting on the back, and I’m clearly not paying attention.
Jack Butala: You know like on a 50 cc scooter, there is no transmission? It’s all just one gear?
Jill DeWit: Right, because it’s all VREEER!
Jack Butala: That’s what it’s like.
Jill DeWit: It’s like a lawnmower.
Jack Butala: That’s what it’s like. It never changes gears.
Jill DeWit: Huh. It goes a whole lot faster.
Jack Butala: Silly fast.
Jill DeWit: Yeah. What is this show about today? I don’t even know.
Jack Butala: Oh my gosh. You know what? We’re going to record a deed on another show. Well, how do you record a deed, Jill?
Jill DeWit: Okay. I can do this. How to Record a Deed 101. Just kidding.
Jack Butala: You know, PhD level and the 101 level of recording a deed are the same.
Jill DeWit: They are. Okay. Recording the deed is not creating the deed. You have the deed in your hand now, and now you need to record the deed. First point that’s really important, I want to make sure that you know because I’ve had this question often, is once the deed is signed, you own it. Recording is not making it legitimate or anything like that. Recording the deed is making it public knowledge. Just so you know, that’s what you’re doing.
Why are you recording a deed? You’re making it public knowledge that you own it, the county knows it’s yours, and for tax things and all that good stuff, they know where to send everything. They know it’s you.
Jack Butala: That’s really what it’s about.
Jill DeWit: Yeah.
Jack Butala: It’s about recording your name and address and associating with it, so that they can send you a tax bill.
Jill DeWit: Exactly.
Jack Butala: How do you record a deed? You just send it in to the County Recorder. The person who conveyed the property to you, they sign it. This is something that gets overlooked lots. You don’t sign the deed. The person who’s conveying it to you, the seller, signs it and then you have it in your hand, and you go record it. I could, if I wanted to, I could deed property to Jill, sign the deed, walk over to the recorder, get it recorded, and she would never know.
Jill DeWit: Mm-hmm (affirmative). Until I got a tax bill.
Jack Butala: She would get a tax bill and say, “You made a mistake!”
Jill DeWit: “What is this? Is this mine? What’s this?”
Jack Butala: “I’m not paying this.”
Jill DeWit: Yeah, no, you own it.
Jack Butala: It happens to us.
Jill DeWit: “Yeah, that person, you own it.” “Okay, thank you.” It’s kind of weird.
Jack Butala: It’s only one single signature. It’s not even a contract, I guess. It still surprises me to this day that you could like maliciously record deed property to people. I don’t think you have to have consent. I would check into that.
Jill DeWit: [inaudible 00:17:35] really do it, but no you don’t. You really don’t. It’s not like when you’re sending it in, it’s not like the recorder is calling you up going, “Hey, you know this is happening?” No, they don’t do that. Back to just the basics. You’re going to … Basically you’re sending it in to the County Recorder’s office, or you could walk it in if you really want to, if you’re close. You’re going to pay a recording feet anywhere from, gosh, $10 to $20, typically. They record it. It’s stamped and it’s dated. It might have a book and a page number on there.
Jack Butala: You’ll get a page.
Jill DeWit: A barcode, that’s how they’re coding them, and you get a copy back. You want to make sure that you do go to whatever county’s website that is before you record the deed and check the recording instructions. It will tell you, “1 page deeds cost X amount.”
Jack Butala: Every county’s different.
Jill DeWit: They’ll tell you to, “Make sure you have it looking kind of this so we have room to put our stamp on it.” You leave the upper right hand corner, they’ll have that directions on there. You’ll have an address where to send it, how much to send, and if there’s any additional things required, like for example in California it’s a P Corp, Arizona Affidavit of Property Value. They’re all …
Jack Butala: Don’t get scared by any of this. It’s really simple.
Jill DeWit: It’s just an extra form for the assessor so that they can assess the property later on.
Jack Butala: Right.
Jill DeWit: It’s really just stating who bought it, how much, what were the terms, was there anything on it, that kind of a thing. It’s just for the assessor. It’s not a big deal. It’s not like no one’s going to come after you if you did something wrong, by the way too. You’re fine. Just that additional form, you send it in, and that’s it.
Jack Butala: It’s as simple as that.
Jill DeWit: It really is.
Jack Butala: We have successfully butchered the structure of this show today.
Jill DeWit: Yes, we have.
Jack Butala: Thanks for listening.
Jill DeWit: It was fun.
Jack Butala: Before we leave, Jill, inspire us.
Jill DeWit: You know what? There’s a lot of things in life that you don’t have to do anymore.
Jack Butala: Oh my gosh! This is brilliant!
Jill DeWit: You like that? Thank you!
Jack Butala: Jill, this may be your most … It’s in the top five for sure. Not me. I need to say this to myself more often. Go ahead. Let me …
Jill DeWit: How about this?
Jack Butala: I’m interrupting you. Go, finish.
Jill DeWit: No, it’s okay. You know it’s funny, because we did so butcher this show. I usually have notes and a comment ready ahead to go, and I didn’t have one for this show for my inspiration, so I glanced down and I saw the Driving for Dollars. You don’t have to do that anymore. But I’m thinking in life, there’s things we don’t have to do anymore.
Jack Butala: Yeah.
Jill DeWit: There’s probably something that you’re doing right now, today, that you hate that you think you have to, but you kind of don’t.
Jack Butala: Oh my gosh, this is brilliant. I’m going to spend my whole rest of the week …
Jill DeWit: Thinking about it?
Jack Butala: Every single thing I do, I’m like, “Do I really need to do this or not?”
Jill DeWit: Yeah, just because I feel like I need to.
Jack Butala: I bet half the crap I do, it’s like just a habit.
Jill DeWit: Well, can I tell you one? If you don’t want to make the bed, you kind of don’t have to.
Jack Butala: Yeah. That kind of stuff.
Jill DeWit: If you want to take a day off, you kind of can. I mean if you want to play hookie, got a sick day, use it.
Jack Butala: If you want to have that third martini, have it.
Jill DeWit: Oh, there we go. There’s a lot of things that we walk around doing because we thing we have to. No, no, no, no, no. You don’t have. By the way, this is one of my biggies. If you find a better, faster way of doing something, but hmm, maybe it’s not the norm, so what? Do it. That’s what that four hour work week book is and all that good stuff is. Everybody, and I can’t think of that other guy that I like, but if you’ve got a better way, you can get your whatever it is done in four hours, it takes everybody eight, you didn’t do it wrong. You did it right.
Jack Butala: I had a boss say, “If you can’t get your job done in 8 hours, you’re spending 10, 20, 30 hours, not 30, but you’re spending 10, 12 hours a day, there’s something wrong. Maybe it’s a job for two people, maybe you really suck at it, or maybe you’re just wrapped up in some political crap that … You know what I mean?
Jill DeWit: Mm-hmm (affirmative). I had the opposite. I’ve had a job where … You remember this. I’d sit staring at the clock. I’m all done.
Jack Butala: That’s awful.
Jill DeWit: I’m literally done. I’ve done everything I did. Too bad my people around me are not as efficient, but I can’t leave because it’s not 4:30, so I’m sitting there staring at the clock. That’s painful.
Jack Butala: Hey, join us in another episode where Jack and Jill discuss how to use information, that’s me.
Jill DeWit: And inspiration, hopefully that’s me.
Jack Butala: You knocked it out of the park today.
Jill DeWit: Thanks.
Jack Butala: To get just about anything you want.
Jill DeWit: We use it every day to buy property for half of what it’s worth, and sell it immediately.
Jack Butala: You are not alone in your real estate ambition.
We went over our time limit. This is like four shows.
Jill DeWit: You know what, that was so fun though. We haven’t done that in a while.
Jack Butala: We haven’t ranted about Driving for Dollars.
Jill DeWit: Yeah. There were a couple things there that we really went off on, and I appreciate that. I think that was really, really good.
Jack Butala: If you want bigger pockets, we have no affiliation with them at all. It’s awful real estate advice. There’s so many people that have this same thing like, “Why isn’t this working?” I used to have a Microsoft Word file of canned responses to like, “Why isn’t this working?”, like 90 of them, and it’s just because it’s so much bad information.
Jill DeWit: Mm-hmm (affirmative). That’s true.
Jack Butala: Pick bandit signs. If you want to half fail and not totally fail, pick bandit signs. At least now it’s a passive way to generate calls instead of actively … You should never actively go out and look. Real estate agents do this every morning, and half of them fail. They actively go out and look for listings instead of using a tool like the US Post Office to go get listings.
Jill DeWit: Mm-hmm (affirmative). Exactly.
Jack Butala: To make a long show longer. Information and inspiration to buy undervalued property.
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