Monday Deal Review Acres in New Mexico
Jack Butala: Monday Deal Review Acres in New Mexico. 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 DeWitt.
Jill DeWit: Hello.
Jack Butala: Welcome to our show. In this episode, Jill and I talk about our Monday Deal Review. We’re taking a look at a Big deal in New Mexico and thought we’d share some of the details and our thoughts on it. Great show today, Jill, let’s take a question posted by one of our members on successplant.com, our free online community.
Jill DeWit: Okay, Kyria asked, “I have a couple of questions. I ordered the package a week ago and I’m anxiously”-
Jack Butala: Our package?
Jill DeWit: Mm-hmm (affirmative). “Awaiting delivery. Meanwhile I posted two Craigslist ads per Jack’s instructions on the free eBook. Now a couple of hours of later,” I love this, “I’ve had two phones calls.” This is so good. “One is a guy that has 13 acres to sell. Since I haven’t yet received my DVDs, what do I tell him? What is my buying criteria. The other is from a lady who thought I was selling land.” This is good. “She was calling on behalf of your dad, so I’ll reach out to him and put him on my buyer’s list if he wants, which brings me to my next question. How do I keep track of all the information I will be getting, buyer, sellers, et cetera. I do us Insightly, but I need more than just that. Do I just use spreadsheets. Does anyone have a free system to organize all this stuff. Thanks in advance.”
Jack Butala: You’re a pro at this as a career salesperson, Jill. Can you talk to us briefly about the value of a CRM and how to organize taking calls and doing the other stuff?
Jill DeWit: Well, that is Insightly. So, yeah, and there’s a bunch of different ones. You know, it’s so interesting. There’s so many different ways of organizing your customers and managing all the inbound and outbound calls. I’ve come to this realization that I think that there’s Insightly, there’s Sales Force, there’s new stuff coming out with Microsoft, I can’t remember what their thing is, there’s so many, and I’m into that-
Jack Butala: Soft Dynamics.
Jill DeWit: That buying one I’m into now, there’s so much there.
Jack Butala: Par BI.
Jill DeWit: Yeah, that’s it. There’s so many things out there. You know what Kyria? I would not use a spreadsheet at the end of the day. If you’re just starting out it’s okay to get your thoughts together and have some spreadsheets for buyers and sellers and things like that. I’m good with that as a beginning, but once you get rolling here, that’s going to be a mess and you’re going to need to have that input into something else, so don’t get too there. Figure out which one works best for you and you need to, you’re going to have to develop your own system. I thought that there was one end all, be all for our product type to be honest with you and I found out there isn’t.
Jack Butala: Well, there is. It’s the one we use.
Jill DeWit: Well, what I like and what other people like, though are sometimes different things. That’s okay for just managing the customers. The best thing I can say, this is what of the things I love about Success Plant, is all the ongoing discussions about this and what so and so is using and why they like it and all that good stuff and all the different things. Jack?
Jack Butala: Yeah, so the important thing to remember, this is a fantastic question, it’s one we get a lot on our weekly call, especially from new people. The thing to know about CRMs, nearly all of them is that whatever you input in there, let’s say you start inputting, you have these two people, you put them in there, now you’re 20 people, 30 people, 40 people and you outgrow it, which happens all the time, you can download all that data. They’re transferable. Download all that data and put it back into the new one that you use. Most CRMs are industry specific and I had one developed about either years ago, a custom one developed that we use on a server and we’re in the process of web enabling it. That’s custom to our business. You know, you kick in, it goes from the mailer, from the mailer piece, you send out a letter, all the way to when you buy the property and everything between.
When you close on the property and it gets posted on a website, it’s very, very, very cool. Everybody’s been asking us about this because we talk about it on the show and on the calls, so I’m having it web enabled right now and it’ll be part of our program.
Jill DeWit: That’s the end, it’s true.
Jack Butala: Do not wait for us. I would seriously just travel down the Insightly path. There’s some in between programs like Sopodio and Act and a bunch of other programs and Sale Force, that really are a Band-Aid. You need-
Jill DeWit: They’re all a Band-Aid. It’s hard to manage the customers in one sight and it’s hard to manage the transactions and then merge the two and that’s why we’ve had to do our own stuff.
Jack Butala: We will make the available. I’m actually pretty excited about that.
Jill DeWit: Yeah, because what I use Sales Force for, we know this is really interesting, is I don’t use Sales Force for the land company. I use our other product.
Jack Butala: Yeah, exactly. Jill for whatever reason, she’s very well versed in Sales Force, just because I didn’t want to argue about it with her. Frankly, it was a battle that I lost.
Jill DeWit: You picked it, you picked it. That’s what’s so funny.
Jack Butala: She uses Sale Force.
Jill DeWit: He says that now, but he’s the one that picked it.
Jack Butala: Once we decide, hey, we’re going to buy a piece of property, whether it’s on the inbound buy it or sell it on the end, then it gets into our system, so that’s what we’re doing new modules on the whole thing. By the time it’s done and please don’t wait for it, because I won’t be next week, that’s for sure, it’s going to be cool.
Jill DeWit: My main thing is Kyria, whatever you go with, I’m glad that you’re thinking about this now and you want to be organized.
Jack Butala: Me, too. That’s right, Jill. That’s the takeaway.
Jill DeWit: Do you know what’s so funny?
Jack Butala: Pieces of paper everywhere.
Jill DeWit: Right, that and I know it still happens. I know that there are people out there that have a thousand sticky notes all over their desks, like oh, wait a minute, if I can just find that one sticky note with this seller and I can put with this sticky note with this buyer, there’s a transaction right there. That’s not how you do it. So, I’m glad … You know what, even if you’re just taping it together with Insightly right now and it’s kind of working-
Jack Butala: It’s better than nothing.
Jill DeWit: -That’s better than sticky notes and a spread sheet, you’re okay and we’re all going to get the solution here together really, really soon. Good question.
Jack Butala: Today’s topic, Monday Deal Review. On Mondays Jill and I talk about some of the deals that we’re doing. We, for whatever reason, are getting a lot of properties in, acreage properties in New Mexico and one thing that I’ve learned over the years is that acreage properties in certain states versus acreage properties in other states are way more valuable or less valuable as the case may be and it all ties back to pure supply and demand. For some reason, these are real examples, finding large acreage properties in Nevada, in northern Utah, and in some cases Arizona, they’re not as in high demand as let’s say acreage in New Mexico and every acreage property that I’ve ever purchased in New Mexico has sold probably I even close the deal and we are looking at tons of property. Some of them are extremely large acreage properties that we are considering subdividing. Some of them are even five acres to eight acres. It’s very, very valuable. There’s ranchers. New Mexico has a much different culture. Mexico, honestly, is one of the most overlooked beautiful places I’ve ever been and no one just thinks about it for some reason.
They think about Arizona and California and the whole thing, but New Mexico is beautiful. Snow is there. You get all the seasons. It’s kind of desert-y, too. They get all the benefit from that. Rio Grande goes right through the middle of the damn state. It’s really cool. I love it. Jill’s has some really extremely good experience with acreage deals right outside of the Albuquerque area and north, too. The further north you go, you had 40 acres in northern Arizona and you’d buy it, they way we do it for 3 or $4,000. Boy, you’re going to sell it for 20 or 30 or 40 grand cash.
Jill DeWit: You know what else makes a difference to me, too, is the ease of transferability and how the county works and how everybody’s all synced together and we’ve done so many properties that, some with HOA, some without HOAs and everybody works really well together. It makes a difference versus if I’m working on a property back east. It seems like a lot of back east properties. It’s very, very formal, hard to get and there’s a really strict checklist of things you’ve got to do and not everybody’s on the same page.
Jack Butala: I call it area code discrimination.
Jill DeWit: Maybe.
Jack Butala: Like they see our 480, 602, 818, they see that and they’re like, they’re on the west coast, they’re having-
Jill DeWit: These hippies, these hippies want to do this.
Jack Butala: They can’t be serious about anything. We’re back here doing all the work and they’re horsing around.
Jill DeWit: We’re holding up the country with what we’re doing and they’re out there goofing off.
Jack Butala: Really Matilda? Really Matilda in Ohio? Are you? Are you doing that much more work than me. I don’t think so.
Jill DeWit: Right. That is so funny. It’s true. I guess it’s good to talk about. Do you have a particular deal you want to share anything on?
Jack Butala: Yeah, there’s a guy I’m talking to in New Mexico and the county of New Mexico’s got 22 40-acre properties I think. They’re all connected. He subdivided them a long time ago. The whole thing checks out. You check everything, the owner, whole thing. It all checks out perfectly or we’ve agreed on a price at $100 an acre. We will see that. I know exactly who’s going to but it, exactly, the whole deal for probably $200 to $250 an acre, so we’ll double our money. When you add it all up, it’s hundreds of thousands of dollars. Then I know this person they will see it on terms, the whole sale to them. They’ll sell it on terms and sell it for 20 and 30 or $40,000, $200 a month at a time. Yeah.
Jill DeWit: Everybody wins.
Jack Butala: If that exact deal was in Nevada or Utah, northern Utah, we would buy it for 2 to $3,000 and sell if for cash for probably $6,000, hopefully double our money, maybe not so much. My whole point in this is that acreage and prices are different all over the country and cultures are different, that’s it.
Jill DeWit: I’m glad that we’re talking about this because this does come up a lot and I wait for the calls, people think, don’t I offer the same thing for everywhere. Mm-hmm (negative), no. You really don’t, so take a step back and make sure your offer is in line with the area. Some might be less than $100 and acre that you can safely offer and some are going to be $500 an acre and you’re still way under.
Jack Butala: Yeah, where do you think it’s less than 100?
Jill DeWit: I’ve had them.
Jack Butala: West Texas maybe?
Jill DeWit: Yeah. It’s true.
Jack Butala: I’m not talking about you. You regularly do that, but I don’t think-
Jill DeWit: Oh, what general areas?
Jack Butala: I don’t think I have ever sent out a mailer for less than 100 and acre, ever.
Jill DeWit: We have negotiated that later on when they call back.
Jack Butala: Right.
Jill DeWit: Yes.
Jack Butala: This is the technical two. Two minutes of property investment advice from our 15-year, 15,000 transaction experience. Not all states are created equally. Prices are different from state to state. You really have to spend, the more time you spend up front analyzing pricing properties on the way out when you’re sending out offers, the higher your returns going to be. I know it makes your brain hurt, like what is he talking about, I don’t know anything about data, it’s really truly not that hard. There’s four or five or six, maybe seven steps total and you send yourself out a great mailer. $100 an acre gets thrown around a lot out west here and in certain places it works great, but in certain places it just won’t work at all, so you really got to analyze the data, choose the right people to send it to, that’s the whole beauty to our product data to doorstep is all the tools to help you do that.
Jill DeWit: Can I add to that?
Jack Butala: Yeah.
Jill DeWit: I’m so glad that you brought that up because I hear that with some of our new members and it’s not that you still can’t do this on a Sunday afternoon, just as you’re analyzing your data, please plan an extra 30 minutes to spend a little bit of time looking around on line at comparable properties and what they’re priced at before you do your merge and have our offer price in there. You might be dead on. You might not be, but just get a little bit of an extra feel.
Jack Butala: Here’s what Jill means. Five acres in northern Arizona probably sells for 3 or $4,000, which means you should be offering less than $1,000 per acre or per property. In Michigan, way different situation. It sells for a lot more than that, 10, 12, 15, maybe $20,000, which means you should offer more … You should offer about 25%-ish of what the lowest comparable listed price is.
Jill DeWit: Mm-hmm (affirmative).
Jack Butala: If it’s selling for $3,000, $4,000, you offer $1,000. If it’s selling for $10,000, you offer $2,500. This is a gauge. This has been my experience. I can only tell you what works for us.
Jill DeWit: If you’re not sure why Jack and I are using that lowest price comparable property out there, as our whatever checklist, our gauge, is because I want to be able to double my money and be under that. That is how I know my property’s going to sell the fastest.
Jack Butala: You want your property that’s posted all over the internet to be the cheapest one, so when people sort for price, you come up first and then you want to pay when you buy that property, half of what that number is. It ends up being 25% or one-quarter.
Jill DeWit: You almost want people to question it going, wait a minute, why is this so cheap. It comes up a lot. It does come up a lot.
Jack Butala: What’s wrong with the property?
Jill DeWit: Yeah, why is this so cheap. It’s just how I buy it. If you don’t like, move on. No, hold on a moment, that’s not what I said. All right then .
Jack Butala: You keep talking, the price is going to go up.
Jill DeWit: Yeah, I can mark it up.
Jack Butala: I have a real story about that.
Jill DeWit: We’ve had that. Shucks, remember we had members on calls say that said, “Okay, fine, then I’ll mark it up, does that make you feel better?” Well, no.
Jack Butala: If you have ten more sentences in you, the price can go up.
Jill DeWit: Yeah, exactly. I told a guy that. You know, it’s funny, I did that even just recently, one of the ones that the guy just checked out. It was a different guy, but we were talking about and he was almost like, “So, I looked around and I found it.” I said, “You know what, you’re right, I think this is priced wrong.” Seriously. I’m totally serious. I did, I’m like, “You know what, thank you for bringing that to my attention because you’re probably right, I think I am priced too low. So you’re either going to take it now at this price or we’re going to hang up and you’re going to watch us in a week and it’s going to be priced differently.”
Jack Butala: That’s the longest technical two-
Jill DeWit: I’m totally serious I’ve done that. Hilarious.
Jack Butala: If you have any questions or you want to be on the show, call 800-725-8816. Inspiration by Jill.
Jill DeWit: I’ll make it short. Don’t-
Jack Butala: This is the best part of the show.
Jill DeWit: Oh, it’s okay. Don’t let your business run your life. Make sure you have your priorities in the right order. I want to make sure. It’s easy, trust me. It is easy to get all fired up about something like what we’re doing. It’s super easy. One good transaction, you’re like oh, my gosh, now I’m just going to forget it. I’m not even going to show up to work now. Hold one, don’t do that yet.
Jack Butala: That sounds like a blast, though.
Jill DeWit: Right? People do that.
Jack Butala: I’m guilty of that.
Jill DeWit: Don’t get ahead of yourself there and don’t let it run your life. Make sure, because you’ll get burnt out. You’ll make bad decisions and you’ll get burnt out. That’s my thing and I don’t want that to happen. What? You just gave me a look.
Jack Butala: It just reminds me of-
Jill DeWit: What was that look?
Jack Butala: My grandmother used to have a saying.
Jill DeWit: Uh-oh.
Jack Butala: It was all boys and one girl. Her grandchildren, it was like nine or ten boys and one girl so she would always say to us, don’t let these girls choose you, you choose these girls.
Jill DeWit: What?
Jack Butala: When you get a girlfriend, you make sure you choose that girl, she doesn’t choose you and I don’t know why that mattered to her, but I heard her say $1,000 times-
Jill DeWit: I have never heard that. So, don’t let your business run you, Jill says. You run the business.
Jack Butala: That’s right. That’s hilarious. That’s a whole other topic about the girl thing. I want to talk about that one more on another show. It’s the same things with girls, though. They should say the boy doesn’t choose me, I choose the boy. It’s a person thing. It’s not a gender thing. Not so she-man. If it was all girls, she would have said the same thing.
Jill DeWit: Would she?
Jack Butala: I think so. She had big wooden, God love her, she had a wooden spoon, a big thick wooden spoon. I think it was 170 years old. She was Italian, first generation Italian.
Jill DeWit: It was like a passed down generation to generation spoon.
Jack Butala: I think it was weapon. It’s just all boys Jill.
Jill DeWit: She would stand there and threaten you with the spoon?
Jack Butala: She had to hit us once in a while, one of us in particular, not me.
Jill DeWit: I’m sorry.
Jack Butala: No, don’t be.
Jill DeWit: Did this just bring up something sad, I’m so sorry.
Jack Butala: No, no, heck no. She didn’t kill us with it. She just, boys are animals.
Jill DeWit: Jack’s therapy session with Jill.
Jack Butala: Boys gets together, it’s just a-
Jill DeWit: The spoon made me cry.
Jack Butala: -gang mentality. That sets in you, she has to use a spoon once in a while.
Jill DeWit: Jill’s inspiration turned into a wooden spoon therapy session. Here’s another thing.
Jack Butala: I’ll take the spoon over her telling my grandfather that we’re behaving that way any day. She knew that, too.
Jill DeWit: Got it. Just like Jack’s grandma and the wooden spoon, don’t let that wooden spoon or your business run your life.
Jack Butala: Join us in another episode where I’m sure I’m not going to bring up my grandparents and discuss how we use information, that’s me.
Jill DeWit: Inspiration, I always try to bring it back in, that’s me.
Jack Butala: To get just about anything you want.
Jill DeWit: We use it every day to buy property, not just in New Mexico, but all over, for half of what it’s worth and sell it immediately.
Jack Butala: You are not alone in your real estate ambition.
Jill DeWit: What in the grandma and the wooden spoon? I’m really, I’m like sorry, did I bring up something bad?
Jack Butala: No, I love that she had the wooden spoon.
Jill DeWit: Actually, you brought it up now that I think about it. It’s kind of weird.
Jack Butala: It was not about the wooden spoon. It was about don’t let these girls choose you. It was just her advice.
Jill DeWit: It’s very interesting.
Jack Butala: I was just talking, I just had a image of the spoon. It’s fine. It’s not a bad thing.
Jill DeWit: Okay, so let me ask you this. Did you through all your life and all your choices in women, always follow that advice.
Jack Butala: I did.
Jill DeWit: Did you now?
Jack Butala: I would think with you it was mutual, though. I really think we had a mutual, it was very-
Jill DeWit: It was a mind connection. It was something, I don’t know.
If you have any questions or comments, please feel free to email me directly at jack@LandAcademy.com.
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