Why You Don’t Need a Purchase Agreement (CFFL 0298)
Why You Don’t Need a Purchase Agreement
Jack Butala: Why You Don’t Need a Purchase Agreement. 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: Jack Butala, with Jill DeWit.
Jill: Hi.
Jack: Welcome to our show today. In this episode Jill and I talk about why you don’t need a purchase agreement all the time. Great show today Jill. Before we get started, let’s share something funny that, or interesting, I should say, that happened to us recently.
Jill: You know, I wanted to share a really, really, really cool email that I got from somebody. I was going to point out a couple of little things in here. I love when I get these. This is interesting to me. I got to tell you, I read these, and I need to share it, so here I am sharing it. I mean, it’s just so good, the feedback that we get. This individual … I haven’t asked, so I have to kind of … can’t drop some names here, but I can share some of it though. It says: “Hey. Hi, Jill. I just wanted to drop a note of thanks to you and Jack, having joined a few weeks ago. Although I have already been running a profitable land business, my methods have been rather than systematic.”
Jack: Yeah.
Jill: Isn’t that great?
Jack: Yeah.
Jill: He says, “I’m going through everything. It’s so thoroughly done and it really does leave no stone unturned. I am smitten.”
Jack: Wow.
Jill: Isn’t that great? He said, “To offer perspective …
Jack: Smitten with you.
Jill: … I have actually been” … Thank you.
Jack: Jill smitten.
Jill: Thank you.
Jack: Dot com. Jill smitten dot com.
Jill: You’re so sweet. I have a quote here at the end I was going to save for you. My quote for you is, “This show may or may not appeal to you.” You said that …
Jack: Make fun of Jack dot com.
Jill: What you said the other day … Yeah. No, but he’s … We’re not his first go around here, but it sounds like we’re his last go around.
Jack: Awe.
Jill: It basically … His whole thing was we taught him how to web base this whole thing. He says … Here’s his ending, “Within a few weeks I intend to have a fully functioning, automated, web based selling properties. I love the idea of selling properties this way. I’m so thankful to have found you two. I look forward to tomorrow’s podcast. Laughing along with you as I gain new insights.”
Jack: Awesome. What a compliment. That’s great.
Jill: Thank you. Isn’t that cool?
Jack: It really is I mean …
Jill: Took a few pieces out of that, but …
Jack: You can’t buy that kind of stuff. Jill smitten.
Jill: You’re so funny. Thank you.
Jack: I’m going to see if that’s available.
Jill: Jill smitten dot com.
Jack: I’m serious.
Jill: The crap Jack says dot com.
Jack: I just … I got an email for somebody recently. They said, “You know, once in a while you talk about a calendar. Can you please put a calendar together that shows the path that you can take. You know, what I’m suppose to do on Saturday. What I’m suppose to do on Sunday because I got to work Monday through Friday.” and on and on, so I did. I put a calendar together and we’re going to publish it. I mean I won’t … We’re going to publish with your sales. Whenever you tell us to, but …
Jill: Okay.
Jack: I finally … I’ve been threatening to do that for quite some time. It actually turned out really cool.
Jill: Threatening.
Jack: No, a lot of people say, look, I get it. You guys are doing great. I see all these members doing it but I just need one step more. I need you to tell me. When I … All right, let’s say I start the thing on Thursday, how much time do I need? Well it takes this much time to go through the program, then this much time to learn the data, then on Saturday you start just do the mail, that kind of … Just right down to the minute.
Jill: Right.
Jack: It’s really step by step. When I really put it down like that. We do it. We take it for granted because we’ve done it for a lot of years, but I guess if somebody wrote it all down for me and said if you do this you’re going to be successful, back in the 90’s, I would’ve taken that and said heck yes I’m going to do that. You know instead of fail 92 times first.
Jill: You know what’s funny? I just look at our program as like a road map.
Jack: Yeah.
Jill: You know what I mean? The way we laid it all out and talked about, you know, let’s think about your business first. Let’s think about all these things first. How big do you want it to be? Let’s talk about that. What are your, you know, blah, blah, blah, blah.
Jack: Yeah.
Jill: That’s what I love about it and I think people like is that we even talk about all right, now let’s … Now that we figured that out here are the 10 things you need to have done before you go to the next thing because like we always say we did it all wrong. We’re here to help you do it right this time. You know, we’re here to save you.
Jack: Right.
Jill: Good. Very cool. What are we doing again?
Jack: What’s the show about?
Jill: I don’t know. Wait, did we even talk about our question?
Jack: No we didn’t. Let’s take a question. I got all sidetracked because I got Jill smitten.
Jill: Thank you.
Jack: Let’s take a question posted by one of our members on Success Plant dot com, our free online community.
Jill: Okay. Adam asks, “How do you feel about buying” … Oh this is one of my favorite, favorite, favorite questions.
Jack: Oh my gosh yeah.
Jill: I love this. “How do you feel about buying and selling land in a bad area? How do you even find this out during my due diligence? Should I avoid these areas at all costs? Are most rural areas in this niche like this? Or is this something you completely … Ignore and completely and buyer beware?”
I don’t even know what he means by bad area.
Jack: Right.
Jill: That is the funniest thing.
Jack: I think I know, but the answers yeah.
Jill: Is it like Breaking Bad?
Jack: Yeah, I think that’s what he means.
Jill: Well he … Some people say bad is just so far out there bad.
Jack: Well, I’ll tell you … I’ll put this in perspective.
Jill: Okay.
Jack: When I moved to Arizona in 1994, for the first time, I asked somebody where the bad neighbor was. I want to see it. They said oh it’s right here on this block, this block, and this block. Take a drive down there but make … Be really careful. Roll your windows up.
Jill: Whatever.
Jack: I went down there and laughed because I’m from Detroit. They don’t know a bad area out here. You know that’s … Detroit’s got some bad areas that I … You just would never go there. Ever. For any reason. What a bad area is to one … It’s just like you said on our earlier show, I think earlier this week, one person loves … What the hell is that?
One person loves … Jill you cracked. Now we have to video this. We have to show the video.
Jill: I’ll tell you in a sec. I’ll tell you in a second.
Jack: You’re not 12 years old you know that? You are 12 years old.
Jill: I try … Oh my gosh. All right [inaudible 00:06:10] you want to finish your sentence?
Jack: Jill just stuck her index finger into the camera and … Do it again.
Jill: I don’t want …
Jack: I was looking out the window trying to have an intelligent convers- … This is how our life goes.
Jill: It’s so … [inaudible 00:06:27] I’m looking at your art. We’re in separate states, so I’m trying to figure out where the camera is by running my finger on the top …
Jack: Yeah that’s where it is.
Jill: … So the camera’s.
Jack: You got it.
Jill: Now I know. I didn’t know where the camera was. I was confused.
Jack: Wow.
Jill: It’s not in it’s normal spot.
Jack: If you are a regular listener, and watcher I guess now because I’m going to have to post the video on this …
Jill: No.
Jack: … You need to ask your … You need to raise your standards.
Jill: Oh boy. This show may or may not appeal to you.
Jack: I think that you can do better. I think you could find some better entertainment than this.
Jill: Oh my gosh. I so … I totally [inaudible 00:07:15] just having to glance back. There’s a finger your face.
Jack: So you guys don’t have any fun at work then? No, no not at all.
Jill: Yeah, no. Okay.
Jack: Look, there’s bad areas and good areas. It’s … In a rural, I’ve never seen a rural area that’s bad, so I don’t know what this persons talking about. Adam, I think that some just told you a story. A lot of times people call the county or maybe we call the county and they say oh my gosh you can’t believe what goes on out there. It’s just one incident 8 years ago. Don’t take that stuff seriously. You’re going to be fine.
I’ll tell you what you don’t want to do. Buy inner city lots, like in a Rustbelt, like in Detroit. You know, for a lot and then expect to sell it the next day. You got to be really careful with that. I think that’s a bad area. There’s usually really high taxes and there could be structures on there. All kinds of trouble.
Jill: You know that’s got to be a good game. How do … What do you call a bad area and what do I? You know what I mean?
Jack: Yeah.
Jill: And what do I call a bad area? I’m sure that the area that I love people might say that … I mean it’s crowded. This is a bad area.
Jack: Yeah.
Jill: So what? There’s a beach.
Jack: Yeah that’s how I feel. That’s one of the many reasons that you and I hang out with each other. We have a very clear opinion on that.
Jill: Kid number 2, you know, like this traffic sucks. This is awful.
Jack: He’s right about that.
Jill: You know kind of things, so he would describe LA, he would describe all of LA as a bad area, so there you go. You have …
Jack: Because of the traffic?
Jill: Yes. Just the traffic, but nevermind the kids loves riding his bike up and down the beach, so you know it’s okay. It’s not a bad area, but you know what I mean.
Jack: If you have a question or you want to be on the show reach out to either one of us on Success Plant dot com.
Today’s topic is why you don’t need a purchase agreement.
Jill: What?!
Jack: Sometimes.
Jill: Sorry.
Jack: Sometimes you don’t need a purchase agreement believe it or not. Oh my gosh. You know if I didn’t know you better I would think that you … Maybe you’re a little tipsy from the night before.
Jill: I’m actually not. I haven’t had anything. I promise. [inaudible 00:09:28]
Jack: I’ll tell you. Our whole business model is grab some data, send a bunch of offers out that are below market value, and several people, certain percentage of them call you back or they send the stuff back signed, and you do the deal.
Should you do a purchase agreement? Not always. What percentage of the time, do you know, when you actually did it Jill, did you do a purchase agreement? Because I’ll tell you mine’s like 10 or 15 percent. Maybe less.
Jill: I just, you know …
Jack: First of all what you send in the mail is a purchase agreement.
Jill: That’s what I was going to say. I never do a purchase agreement in that situation. Unless they ask for it for some reason.
Jack: Me too.
Jill: Which I can’t remember anybody asking for it. If they did ask for it I sure would, because it’s no big deal. It’s a 1 page thing where I’m just kind of laying out again, hey we agreed on this price for this property and this is how the payments going to come and this is what kind of deed we’re doing. You know that kind of thing. That’s it.
Jack: If you send a purchase agreement, like we do out to somebody, for let’s say it’s 1,000 bucks for 5 acres in Northern Arizona, I don’t know. Or you know 2,000 dollars for Northern Michigan property and it’s a couple of acres and the seller calls back. His name’s John Smith and says, “Oh my gosh I’m so glad you guys sent this perfect thing. I need a bunch of money to do X, Y, and Z. What do I do next? I’d like to close this deal with you.” Well John, you sign it, fax it or email it back to us and we’ll get it going. Okay, thank you so much. Do you need to do an extra purchase agreement? No. You want to strike when the iron’s hot. You don’t want to add paperwork. That’s one of the beauties. You don’t report to a lender. You don’t need a … When you buy and sell a house there’s a million people involved. When you do this there’s you and the buyer and the seller and that’s it.
Jill: Exactly.
Jack: Purchase agreements are like … I don’t know who created a purchase agreement Jill. It’s just a letter of understanding is really what it is.
Jill: Right.
Jack: There’s so many things that you do with a handshake that you don’t put in writing. Maybe sometimes it’s good and or it’s bad. I love the handshake rule. That’s what this is.
Jill: I think of a purchase agreement people are used to having a receipt. When you buy a car, even if you do a Craigslist car, you know they always write, even that …
Jack: Or a bill of sale or something.
Jill: Right, like a bill of sale. I think that people automatically think you have to have that piece of paper like a bill of sale and that’s why they do it. Even though they may never use it.
Jack: See how weird that is on the other end? How weird is it?
Jill: That is kind of funny now. Now I’m getting a finger back in my face. It’s hilarious.
Jack: I waited for you to make a serious point and then just …
Jill: That’s really good.
Jack: … Bring it back down to kindergarten like you like it.
Jill: Thank you. Yeah, I will tell you when I do use a purchase agreement if you’re interested.
Jack: I am.
Jill: Okay.
Jack: I am interested.
Jill: I do use a purchase agreement on the other end often.
Jack: Oh. When you’re selling it.
Jill: Yes when I am selling it, actually more than 50% of the time, I do send a purchase agreement to them and I do it … That reason to let them know I’m serious. I’m agreeing to sell my property to you at this price because here’s what I do in that purchase agreement. I put in there, I state, I must have payment in full by this date and then here’s either the mailing instructions or the bank wire information, whatever it is. I use it as my … As a terms, you know, here’s what we’re going to do because you agreed on it. Just following up from our phone call kind of thing.
Jack: Right.
Jill: That’s what I do, but not on the buy side. When I’m buying it, nope. Cool.
Jack: Yeah I mean I don’t even … I mean anybody who listens to the show regularly knows that I do it differently. If someone wants to buy a piece of property please just click on it and check out.
Jill: Oh, or that. Excuse me. We do have that not. I’m sorry I’m going back … You’re right. I keep forgetting we have that now. I don’t really talk to them anymore.
Jack: We have a lot of people now too.
Jill: Yeah.
Jack: That’s the difference because we have a lot of people … You know several years ago Jill was doing … Actually doing deals.
Jill: Yeah, I haven’t done …
Jack: Now she’s just having fun.
Jill: I’m like out of touch. Duh, but you’re right. You don’t need it.
Jack: Right. Hey join us another episode where Jack and Jill discuss how to use information, that’s me.
Jill: And inspiration, when I remember, that’s me.
Jack: To get just about anything you want.
Jill: We use it every day to buy property for half of what it’s worth and sell it immediately.
Jack: You are not alone in your juvenile real estate. Jill’s juvenile real estate ambition dot com.
Jill: Thanks.
Jack: What the heck? Were you just bored?
Jill: I was really trying to figure out where the camera was. I don’t know if you saw. I was kind of … I propped it up …
Jack: Is that hidden?
Jill: Yeah it actually is. Now that I see it, now I know, but this computer is got the screen all the way to the edges, so I … It’s not at the top like you would figure … You would think, so I was running my finger along the top trying to find it. Now I know where it is. There’s a little light down there. I’m really not sure what that little is over there now too.
Jack: It probably means that the camera’s on. I have a light.
Jill: Dude! It does [inaudible 00:14:41]. Oh my gosh.
Jack: You know this is … This is going on it. We have to. All we did was talk about each other.
Jill: No we can’t.
Jack: Sure you look pretty.
Jill: Speaking of video and cameras, if you’ve not seen Snowden, you should go see Snowden.
Jack: Okay.
Jill: That was one of the things in there about … I use to laugh at you Jack when you would put tape on cameras and stuff like that on your computer. We all should be doing that.
Jack: Oh yeah?
Jill: It makes me want to do it to my cell phone. It makes me want to put a little piece of tape on my camera on my cell phone.
Jack: I do all the time.
Jill: Well I’ll tell you there’s places I don’t take my cell phone now because I’m like …
Jack: Like where?
Jill: You know, maybe while I’m getting out of the shower or something I put my cell phone right there.
Jack: Oh I see, I see. I thought you meant to the mall.
Jill: No. That’s a … No.
Jack: No, I just I assumed a lot of years ago that everything’s being filmed. I read a thing like 8 years ago and it said you’re picture is taken on an average, on a regular work day, about 44 times. Whether you’re filling gas up and the whole thing.
Jill: I would 100% agree with that.
Jack: Yeah.
Jill: Especially after seeing that movie. Because they can so easily tie you to someone. I mean that’s how they justify checking in on you.
Jack: Yeah.
Jill: Yep.
Jack: Scary man.
Jill: It is scary. You’re right.
Jack: Information and inspiration to buy undervalue property.
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