Use Data for a Flip per Month Even with Full Time Job (CFFL 310)
Jack Butala: Use Data for a Flip per Month Even with Full Time Job. 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: Hello.
Jack Butala: Welcome to our show today. In this episode, Jill and I talk about how to use data for a flip per month even with a full time job. Our most successful people are smart enough to not quit their job until they’re super sure. They do 1 profitable land flip a month. Make about 10 grand a month for an extra 100 grand a year. After a couple of years, they say you know what, I know what I’m doing. This is going to be my job.
Great show today, Jill. Before we get started, let’s share something interesting about what happened to us lately.
Jill DeWit: We’re so, so silly at times. Jack and I are always coming up with little phrases and little code things. I was going to talk about our nice way the other day of ISR and ESR. Jack do you want to explain? Jack came up with this whole term.
Jack Butala: I love when you shock me like this.
Jill DeWit: He came up with this, it’s almost like a condition if you will. It’s like for psychology books. He came up with an ISR and a ESR. I gave it the initials.
Jack Butala: ISR is internal spousal rage. ESR is external spousal rage. You know like irritable bowel syndrome or restless leg syndrome.
Jill DeWit: Exactly.
Jack Butala: You clearly have ESR today.
Jill DeWit: Yeah, exactly. You know what that’s what I should do. Can your ESR by an ISR and just kind of keep it to yourself.
Jack Butala: Everybody thinks that it’s all peaches and cream with Jack and Jill. We have our moments.
Jill DeWit: I know. That’s so funny. Because we were talking about … We were out to dinner with some people last weekend, and they were asking us, gosh you guys just have it all together. I’m like you should of seen the ESR that went on in the car on the way here.
Jack Butala: The truth is the person that we were explaining this to is a A list celebrity that had a very publicized breakup, divorce with her husband. She was asking us, what’s the deal? It’s all just acting.
Jill DeWit: No, it’s not. You’re so … It’s not! You are so no, but it was really cute. She’s looking across the table at us, and we’re all hugging and lovey and everything. She’s like, I want that.
Jack Butala: The truth is that Jill’s incredibly inpatient.
Jill DeWit: Thanks.
Jack Butala: I’m, you know, very angry inside.
Jill DeWit: Here’s what happens. It’s ISR until a certain point, and then it bubbles out into ESR. I apologize.
Jack Butala: There’s so many medical things you could, you know, examples you could have. HIV, you know full blown AIDs. It all starts with ESR.
Jill DeWit: What the heck? Where did you get that example. What?
Jack Butala: No, it’s just like, you know. When things progress.
Jill DeWit: Oh my gosh.
Jack Butala: When a medical condition progresses into a full blown different situation, that’s when it becomes ESR.
Jill DeWit: Yes. Yeah, now it’s on the outside of your body like a scab. Everybody can see something’s wrong. You’re walking around with an open wound. Now we want to stay away.
Jack Butala: Jeez. Scab and open wound. If you haven’t turned off your radio yet, now’s a good time.
Jill DeWit: That’s right. Yuck. All right.
Jack Butala: Let’s take a question posted by one of members on successplan.com. Our free online community.
Jill DeWit: See that was like the other day when I … We were how many minutes into dinner and I had to say my cheeks hurt. It was good. Those are the best, best dinner parties. We had a big group. We had like 8 or 9 people. It was about 3 minutes in, we knew we had a good group because we could not stop laughing it was so good. Okay. All right.
Mike asks, what’s the best way to determine if a property has county water or electricity with no homes nearby. I got one.
Jack Butala: We’re going to have to really mix a lot of assumptions on this. I mean, I don’t understand the question here.
Jill DeWit: Yes. I’m going to guess Mike’s looking at some rural property. We never go out and look at them really. Let’s be honest.
Jack Butala: Never, ever go look at the real estate that you’re going to buy.
Jill DeWit: Yeah, that’s true. Do not fall in love with it by the way. That’s the last thing you want to do.
Jack Butala: I can hear the attorney’s filing lawsuits right now.
Jill DeWit: Exactly. Stamp.
Jack Butala: Let me help, Jill. We don’t look at property, because we’ve been doing this for how many years. The vast majority of the property that we buy, over the years I’ve seen it. Yeah. As a new person, you seriously want to go look at the property or hire somebody to go out there and look at it. Take pictures. Go ahead. I’ll just walk around you with a clipboard.
Jill DeWit: Picking up my messes.
Jack Butala: Make sure that [crosstalk 00:05:33] what you’re saying is not going to put us in prison.
Jill DeWit: Jack’s going to be my council right now. Can’t say that. What Jill’s trying to say is …
Jack Butala: Here sign this please sir, she just talked to you.
Jill DeWit: Yeah. You’re looking at a map. How about this, let’s assume Mike is right now reviewing … He got a signed off our back. This is a common thing. Mike is now going to say, do I really want to buy this property? Now he’s looking around, going let’s see what attributes it has. Let’s where I’m going to assume. He’s looking at it, and maybe there’s no homes in the area. He’s trying to figure out, all right, if I’m going to buy it and I’m going to sell it. I kind of need to know is there electricity or not? Just so I know what I’m properly telling my person. How do I know that?
Jack Butala: I think he means the city water. Is water provided by the city, or by utility, or in the county is it provided by a utility company versus ground water. Now I get it.
Jill DeWit: Okay. Well, that’s another question. I took it differently, that’s funny. For me, you can eyeball … That’s true if there are homes in the area, you know that it’s out there and those people have figured it out.
Jack Butala: Yeah. It’s not necessarily out there and provided by the city, the county, or the taxing authority, or the utility. If there’s a ranch out there, and this happens all the time. If there’s one a half a mile away, or some reasonable difference. They’ve figured it out. Let’s say. Whether they’re doing rain water collection, or some way. That’s a good sign. I haven’t seen …
I’ve seen solar systems now totally standing off the grade completely. How do you figure it out? The answer is straight, fast answer to the question. Call the county. Ask for zoning again. The zoning person. They’ll tell you.
Jill DeWit: Exactly.
Jack Butala: A lot of these questions are just call the county, and make friends with them anyway. If you’re sending a bunch of offers out in the county, you’re going to get to know these people whether you like it or not. Jill even sends them cookies and stuff.
Jill DeWit: Yes. That’s a good idea. You know what, Mike, that’s a great point. Because once you learn about this in this county, now you know. You’ve got it. Keep track of this stuff too. We keep like a cheat sheet if you will with counties and about. We always remember what their coding fees are. Any little special things about that. This is a good thing to keep track of your xyz county in this particular area, this is the situation.
Jack Butala: Yeah.
Jill DeWit: Like Jack says too, I do get to know them. They are the best people to have in your back pocket too. Because there’s time that something might come up, and you need to pull a deed. I did something wrong in that deed. Can you not record it, Sally at xyz county and send it back to me. I goofed. Something like that. I do take care of them.
Jack Butala: Rural counties can get a little bit protective of their land at times. The last thing they want is to your name, you deeding like 15 to 20 properties a week. In some cases for us, we still do that. Not know you. They’ll sit on a recording situation for quite some time. They want to put a face to the name of your company. If you’re sending them cookies, and talking to them. Know their birthdays and stuff. Man I’ll tell you, they’ll go to bad for you.
Jill DeWit: Yeah.
Jack Butala: I don’t do it, because they don’t want to talk to me. Trust me. Everybody loves jill.com.
Jill DeWit: Thank you very much.
Jack Butala: Hey, let’s take … Sorry. If you have a question, or you want to be on the show. Reach out to either one of us on successplan.com. Today’s topic is how to use data for a flip per month, even with a full time job. As I said in the intro, some of our most successful, methodical members who are brand new at this do one deal a month. They do it just working on Sunday. They work 4 days a month sending out data. They use the tools that we have. We’ve designed all these tools to make this real easy. After a couple of years, they either works or it doesn’t for the vast majority it does. You know after making 100,000 bucks or 120 grand a year they decide this could be their full time job.
In my case, when I left, I remember when I left it was that decision. If I do this full time, my actual job is getting in the way. My job that I have is costing me money now. If I could be doing this full time, and I’m making 120, 200,000 bucks a year. I probably could leave and make half million bucks. Really get organized. Get an assistant to do the stuff that I don’t want to do. How do you do that? How do you use data to do that, Jill?
Jill DeWit: The regular way. You’re looking at me like there’s some special thing. I’m like, what are you talking about?
Jack Butala: What you do is you focus on, you send offers out, but maybe to slightly different properties. A higher acreage property in my opinion. You try to by it as inexpensively as you can. Let’s say 40 acres and up. Make sure you mark it up $10,000. We have one member who buys properties between 40 and 160 acres for $100 an acre. If it’s 40 acres, it’s 40 grand. He sells them for 14. He only marks it up $10,000. He really hyper-focuses on 1 or 2 areas, because he’s pressed for time. Larger acre properties, marks it up 10,000 bucks. He usually sells it to another whole saler, so he doesn’t have to go through the whole engineering piece. Actually, we are a customer of his. We actually buy property from him once in awhile. That’s how you use data, it’s the same data set by the way. Exact same that we provide. You just use it a little bit differently, and a little bit more compact so to speak. Speed streamlined. Go ahead.
Jill DeWit: Let’s just say basically you’re trying to slow this down, because you have your job. You don’t want to come home from your full time job and work your other full time job. That’s not really realistic, if you want to have a family after 3 months of this. You can slow down your acquisitions too. If you change nothing …
Jack Butala: Or you can get rid of your family.
Jill DeWit: Yeah. I knew this was coming. If that is your strategy. You know this could work for that too.
Jack Butala: What if they’re 24, 25 year old kids.
Jill DeWit: Then do that. You can. You can certainly do that. I say, 1 nice thing is you have a full time job, you want to flip property. You don’t want to do a ton. Pace them out. Like Jack said, now you have all these offers that came back. We actually have this on one of our websites. We have a website dedicated to people who want to sell us their property. It’s for the buy side. They can input in their all the details about the property.
One of the questions on there is how fast … Is there a rush on getting rid of this kind of thing. When you have a bunch of good properties coming in, you don’t need feel like I have to do them all right now today. You can ask your people. You know what, this meets my criteria. I’m going to do my homework. Let you know.
How fast do you need the cash basically? That’s always a good question to ask anyway. If somebody says, you know what? Yeah, that sounds right. That works for me. If we do it this summer, I’m happy. Great. You can even pace. How great is that, by the way? You can sit and actually really pace out your income and how much you’re going to spend and all that. Which is the greatest thing on the planet, I think.
Jack Butala: Well, the other thing too. What new members do, I see this all the time. During [inaudible 00:13:28] they get 10 or 15 signed offers back. They only have cash for 2 or 3. They pick the very best 1. They pick the ones that they know are going to really sell fast, or immediately without doing all the engineering. That’s the benefit of using data. The more you send out, you don’t have to do all the deals.
Jill DeWit: Exactly.
Jack Butala: Actually there’s people in our group that send them to other members in the group, because they know they’re working that area and they just mark it. They say, pay me when you sell it.
Jill DeWit: Exactly. Exactly.
Jack Butala: You have a lot of options, and not necessarily just with our group. When you’re a group of people working together, way more options than if you’re just rogue out there by yourself.
Jill DeWit: Totally.
Jack Butala: I’ve tried it both ways.
Jill DeWit: You know what? We have people in our I know they’re doing it. I know 2 guys in particular that we’re talking about. 1 guy is better set up. I don’t if he’s a firefighter, or I don’t remember what the situation is. He has a job where he has some days off during the week.
Jack Butala: That’s it. He’s a firefighter. I know who you’re talking about.
Jill DeWit: Okay, good. He’s able to answer the phones. They’ve kind of teamed up together. They both have full time jobs, they’re not ready to change that in yet. Which is what you and I always promote.
Jack Butala: Yeah, don’t quit job.
Jill DeWit: Don’t quit your day job until it’s stupid that you’re still there. You’re like, okay now this is dumb. I’m losing money because of this job. Then it makes sense. Some of our guys they partner up our people, and that makes a whole lot of sense. He can answer the phones. This guy deals with the transactions. You know, whatever it is.
Jack Butala: There’s one guy in our group, he’s just the money guy.
Jill DeWit: Yeah.
Jack Butala: He’s got a whole procedure where people submit deals to him. Not just from our groups, but from other you know, networks out great.
Jill DeWit: Exactly. You know, that brings up this whole thing. Having access to this data, and knowing how to manipulate the data and get the offers out there, and getting people coming back. Is the biggest asset I think there is. Who cares the cash, whatever it is. There’s so many people out that don’t know how to do this, don’t understand it, don’t want to do it. Don’t get it. For you to be able to come up with this stuff. I mean …
Jack Butala: I had a member do this less than a year ago. Because this exact topic came out. What do I do? I don’t have any money. I love it. I find all these properties. I don’t know what to do? I said, I want you to go out on Craigslist and post this. This is what I said, post this sentence. I have a 40 acre property in xyz area that I’m purchasing for $4,000. I don’t have the money, but I don’t want this acquisition to go to waste. If you have some cash, and you’re interested in this area, I’d be happy to turn the deal over to you and let’s just call it 6 or 8 thousand dollars. Because the properties are all worth way more than that.
Jill DeWit: Right.
Jack Butala: He got flooded. Actually to build a database that’s the way to do this too.
Jill DeWit: Right.
Jack Butala: We don’t talk about that enough.
Jill DeWit: That’s true.
Jack Butala: There’s a lot of ways to do this. Like Facebook for example is packed for the little groups and subgroups that are trying to find property and don’t know how to do this of whatever reason.
Jill DeWit: Oh my goodness.
Jack Butala: I hired a virtual assistant from another country one time. Just creep Facebook and we got 40 or 50 thousand names of people all around the country that want to buy property.
Jill DeWit: You can spend, right now today 30 minutes. I’m not kidding. Isolate 10 Facebook groups that are 100% very specific to what we’re all about. Have 100,000 people within those groups.
Jack Butala: Yeah, what are your numbers up to? Are you in the millions yet?
Jill DeWit: Of these groups? Hundreds of thousands.
Jack Butala: I know that you post certain stuff on Facebook for land [inaudible 00:17:28] sales and land [inaudible 00:17:29]. Regular land company. What’s in these groups?
Jill DeWit: I haven’t had it up in awhile.
Jack Butala: The numbers have to be in the millions.
Jill DeWit: Well, the couple hundred thousand that I use regularly. How’s that? Because what we’re talking about is …
Jack Butala: You’re reaching a million people in 5 minutes.
Jill DeWit: Quickly. I mean that’s the thing.
Jack Butala: They’re opted in people.
Jill DeWit: They’re specific.
Jack Butala: Go ahead.
Jill DeWit: There are Facebook groups that are very, very specific to REI investing for … In that one group there are 23,000 opted in like you said members. Some of them are private groups. They had to be …
Jack Butala: Yeah, exactly. Have to let you in.
Jill DeWit: You had to be invited and accepted. You have to prove yourself too. That’s a whole kind of another thing. It’s just interesting to share all the stuff that’s out there that you can tap into. It’s amazing.
Jack Butala: Yep.
Jill DeWit: Thank you.
Jack Butala: Join us in another episode where Jack and Jill discuss how to use information that’s me.
Jill DeWit: An inspiration. I’m tired now. That’s me.
Jack Butala: To do just about anything you want.
Jill DeWit: We use it everyday to buy property for half of what it’s worth and sell it immediately.
Jack Butala: You are not alone in your real estate envision. I love this studio thing, man.
Jill DeWit: Me too.
Jack Butala: I’m in.
Jill DeWit: I don’t know. I kind of miss the firetruck in the background. Wait, isn’t it trash day. Shouldn’t we be hearing the trash pick up?
Jack Butala: I think there’s air conditioning in here too. I just feel spoiled.
Jill DeWit: Oh, I forgot about that.
Jack Butala: It must be silent air conditioning.
Jill DeWit: Yes, it’s really nice. Yeah, just to … We live in an area in southern California that we’re close enough to the water, that a lot of the homes … I’m sure there’s an age in there too. Ours is not like brand new. They don’t have air conditioning, because it’s just not really necessary. We’re kind of spoiled. It’s so silly, I can’t believe I’m at the point of my life and my whatever I want to say. I’m not trying to say tax bracket politically correct. I actually walk into someone else’s home, and I go, you have air conditioning. That’s kind of what I do here in California.
Jack Butala: I go sit in my car sometimes and just turn on my air conditioning and say, I’m going to be by myself.
Jill DeWit: You’re so silly. I need to go to get gas, and run some errands. It’s hilarious.
Jack Butala: Information at inspiration to buy undervalued property.
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