What Now? 20 Owners Signed My Offers! (CFFL 321)

What Now 20 Owners Signed My Offers

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What Now? 20 Owners Signed My Offers! (CFFL 321)

What Now? 20 Owners Signed My Offers!

Jack Butala: What Now? 20 Owners Signed My Offers! 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: Happy Halloween.

Jack: Ho ho. Welcome to our show today. In this episode Jill and I talk about … What now? Twenty owners signed my offers, what do I do next? It’s amazing, Jill, how many people expect it, plan it, and then it happens and it’s, “Oh my God.”

Jill: Yeah, “What just happened?”

Jack: Awesome show today actually. Hey, before we get started let’s take a question posted by one of our members on the Land Academy Membership site. It’s our free online community.

Jill: Awesome, all right. Dave asked, “I have an accepted offer for another forty acre parcel in…” Can I say the county?

Jack: Sure, if he wrote it in there.

Jill: He did. “In Costilla Colorado, at a hundred dollars an acre. Plus two years of back taxes. Putting me at roughly forty-three hundred dollars. Nine to ten thousand is a pretty quick cash resale amount …”

Jack: That’s why we’re all here Dave.

Jill: I’m kind of liking it. “But, it turns out this parcel has no road access. The seller did email me a copy of title assurance from when he bought the parcel in ’92, guaranteeing an easement. It’s not landlocked and there’s a clear path to blade a road directly to the property, from what I can tell. My question is, how much would you reduce your offer by? I don’t want to blade a road. I would rather buy cheaper and sell cheaper.”

I love this.

Jack: I do too. This is a great question. Great topic and it’s actually topical about what we’re going to talk about in the meat of the show. Everything you did was obviously perfect.

Jill: Yeah.

Jack: You chose right, scrubbed right, got it out and got an offer back signed. There’s a couple little issues with taxes and a blading situation, but this is all good. What I would do is I would probably call planning and zoning, and ask for the name for two or three guys that out there locally blade roads. I’d get a price, it’s really a lot less expensive than you think, if it’s flat. If the price is, I don’t know. It can be as cheap as a dollar an mile believe it or not. It’s really cheap. Maybe not anymore a dollar, but …

Jill: Not even hundreds, but so just a couple hundred bucks might do it.

Jack: Yeah. Five, six hundred bucks if it’s flat and there’s access, and the whole thing. I think you’re pricing this correctly. I would ask for some money off. I would actually do a little flyover and record it in Google Earth and say, “Look, this is the problem.” Use the guy’s name right in the video. Say, “Hey seller John. This is the reason I’m asking you for five hundred bucks off.” Some number.

Jill: Make a video to show him basically why you’re justifying your price. We’ve done that.

Jack: Yes. We do it all the time. An in-screen video where you’re recording talking in the computer. You’ve seen them on YouTube, millions of them.

Jill: Yeah, share it with your wife. This is the deal.

Jack: That’s what I would do. I would ask the actual road blading price. If it ends up being two, three, four thousand bucks to blade the road. It very well could be now. My numbers could be a little bit older. I still would buy the property, but now that you know that it doesn’t have any physical access but has legal access you are obligated. I really mean this truthfully. You are obligated to share it with your seller. You need to put that in the posting. Had you not dug in that far, and you really were unaware that there was no physical access, you wouldn’t be obligated to disclose it.

I’m real serious disclosure in this whole business, not just this point, but you need to disclose what you know.

Jill: Exactly.

Jack: Build your reputation.

Jill: You know what’s a downside? Okay. What if you didn’t disclose it, they come back to you and there’s a problem? You’re going to have to fix it. You want to be upfront and honest. That’s the thing. Bing upfront and honest, disclosing everything that you know. You did a great job with your homework. It means that the person who buys it is the right person, and they have all their questions answered, and they know what they’re buying.

We joke about some of our properties, like half of it was on a hill and we just said, “There’s a protective ridge and it takes up this much of it. Blah blah blah blah blah.” The guy who bought it loved it and is very very happy. He knew exactly … You know, “I can build on this much and this much is a hill.”

Jack: Believe it or not, this is real hard for people. Even seasoned commercial real estate people don’t believe this when I say it. There are tons of buyers out there that want property that has no access like this. I don’t know what their doing out there, I don’t care. They love property that doesn’t have access, so this is not a bad thing. Would I put a big red banner on the internet posting when you go to sell it? “No access!” No, but down in the bulk of the description just say, “I had a conversation with x y z. It looks to me like there’s a situation here where it’s got legal access, but no physical access. What an opportunity for the right person.” If you want to get crazy about it. Copy, scan the title policy and attach it to your posting and say, “Check it out. Got title assurance.”

Jill: Yep.

Jack: I would do this deal all day. Wouldn’t you Jill?

Jill: Oh yeah, totally. That’s a great- Sounds great. I’m in. Seriously.

Jack: Hey, if you have a question or you want to be on the show, reach out to either one of us on Land Academy’s online community at LandAcadamy.com.

Today’s show. What now? Twenty owners signed my offers. What do I do? This is the meat of the show. What a problem to have, Jill.

Jill: I know.

Jack: The reason that I brought this up, here’s a little bit of background. Jill’s going to actually answer the question after I’m done here. Like, what do you actually do when twenty people sign your offer, and you only got about three hundred bucks in the bank. The reason that I came up with this topic is because it’s very difficult to communicate to newer people in this business, if you follow all the steps.

You will get signed offers back in your mailbox two or three weeks after you send all this stuff out. It’s hard to watch people who do everything right, and this happens and their not prepared. They didn’t start the website, they didn’t prepare for sales before they sought out the acquisitions. That’s really what I wanted to point out here. Most of our members, as smart as they are, just don’t take that part of it seriously. They just want to get stuff out in the mail, see if it works, and then when it does then back peddle.

I kind of approach things like that so it’s hard for me to give advice, but there are several basic bare bones things that I think are really a good idea before you get some stuff in the mail. Get your website started, it’s not expensive at all. Get your internet presence going. When you mail these offers out their going to look you up on the internet and see if you’re legit, see if you have a company.

Jill: They’re going to check you out. They might trace you back to us. It’s kind of funny and it really helps.

Jack: We have banners like, “Certified Land Academy member.” At the request of a lot of our members, we put together a bunch of graphics that you can put on your website, our members put on their websites to add more credibility.

Jill: Yeah, and they love it. Makes the buyers feel good.

Jack: So Jill, really, what now? What do you do when twenty offers come in? You did everything right. What do you do? Let’s say you did everything right. The website’s up, the whole thing. “Oh my gosh, I don’t know how to close a deal.” I went through this right at the beginning. What do you do?

Jill: First thing, it’s like what you said. A lot of it’s just in your head. Answer the phone. Sometimes people are afraid, like, “I don’t know what to do. This is my fist deal. I don’t want to sound dumb. I don’t want to sound like I don’t know what I’m doing.” You got this. You can sit down, and this is what I did in the beginning. For our members, I share it. I have a little, like a cheat sheet of questions that I ask the people when their calling me back. Like in this scenario let’s just say you sent out the offers. There was a box on there for them to sign it and accept your offer, and send it back. Now you’ve got these in the mail, you’re starring at them, “Oh man, what do I do?” Like Jack said, careful sometimes you might have ten of them and you’re looking at your budget going, “I don’t have that much money to buy all ten.” We have ways to work around that too, but-

Jack: Right.

Jill: I would one by one call them back. Confirm all the details, first of all. Don’t spend a whole lot of time doing your due diligence yet, because you want to just confirm it all and make sure their in, and they really do agree to your price, and-

Jack: It’s a super important point. Make sure there’s a real person at the other end of that signature before you spend a lot of time and energy seeing if you want to buy the property. That initial phone call is super important [inaudible 00:08:18].

Jill: Yep. Is everybody, I mean, and you can- This is seriously how I ask. It’s so funny. In a nice way I say, “Is everybody alive and able to sign?” Then we all kind of giggle and say, “Oh, yeah. Yeah. Yeah. Burt’s in the other room, he’s watching whatever.” “Okay, good.” Kind of thing, but you need to make sure. You need to know what you’re getting into before you spend all that time.

That’s the first thing I do. Call them all back. Say I’ve got ten, and I reach seven people. Or you started with twenty, right Jack, so we started with twenty. I called them back, I got- I’m going to be real real conservative here.

Jack: Twenty’s a real number, that’s how this came up.

Jill: That’s what I’m trying to say, so I’m going to be conservative. Twenty came back, I immediately got ten of them on the phone. I talked to the ten of them and their all alive, everybody’s able to sign, and everything looks good with them. Okay, now I’m going to take those ten and do my due diligence. Now I’m going to go back and look. Look at the property. You know, like our question today. What is the access situation? We talk about the four A’s. We haven’t brought that up. Now’s the time you’re looking at your four A’s.

Jack: Yeah, basically you want see if you’re going to buy the property. We cover all this in detail, but this is a great place to go over it.

Jill: What are the four A’s you’re looking for? Access, does it have legal and, or … physical. Affordability, well, we know that because you sent out the mail. You checked off affordability and they agreed on the price.

Jack: You put a price there anyway, right?

Jill: You know. Attribute, does it have some great attribute? Is there something great? “Wow, look at- I had no idea it’s next to that ranch, or gosh look at that stable there. Look what those people did. That’s really cool. Beautiful.”

Jack: Or legal access, but no physical access.

Jill: We covered that.

Jack: Create your own.

Jill: Oh yeah, access, create your own.

Jack: That can be an attribute, is my point.

Jill: Oh, I see what you’re saying. Got it, yeah. Create your own, that can be an attribute. Then the last is acreage. Again, you already covered that, because you did the mailer. You only mailed out the five acre properties, or the forty acre properties. Whatever this mailer is, so you’re looking for those. Now you’ve done your due diligence, and now you maybe weeded your ten down to five that you really really like. You know what? Now, I’m going to line them up. I’m going to put them one, two, three, four, and five and close the deals.

Jack: Yep.

Jill: That’s really it. Buy them, and as you’re buying them, by the way, when you did your due diligence. Now, this is one of Jack’s greatest tips to save you time. As you’re pulling up those properties, and you’re looking at maps, and you’re looking at the documents and everything. You better be saving all that stuff so when you go back to do your homework, your engineering and you create your posting to sell them, you already have a lot of the stuff right there. You don’t want to go back and go, “All right. What were the coordinates on that one again? What were the photos I looked at on that one again?” You want to save them all along, whether or not you’re going to use them down the road. Save them as you’re looking at them.

Jack: Yeah, take some screen shots as you go. On a mac the software comes with it. In our PC world we use a program called Snag It. Which is very inexpensive, but it’s incredibly effective.

Jill: Yep, so save all that and then go buy them. I’m not going to go into a whole lot of detail now. Which is basically, you’re doing this from another state or another country. I just wrote a blog about that last week, about doing this internationally.

I got to tell you, Jack. I had some great feedback. I had a guy write me back like, “Jill, I’m doing it from an RV.” I’m like, “See, there you go.”

Jack: I know. I think you said [crosstalk 00:11:44].

Jill: People think it’s crazy, but it’s not.

Jack: I got a question about doing it from China.

Jill: Yeah.

Jack: It’s yeah.

Jill: You can do it from China. You sure can.

Jack: Since I brought it up. One last point here. What do you do- I get this question a lot. Let me ask you, or I’ll answer it if you want. Let’s say you slated five thousand dollars. You move five thousand dollars around your life. You expected to get one or two offers out on your mailer, but you got twenty back. What do you do? Rich people problems. That’s what these have.

Jill: Yeah, rich people problems. You got a couple options. One is cue them up. “Look, Mr. Smith, I really want your property but I’m out of cash. Can we do this next month? Are you in a hurry?” Two, “Hey, Mr. Smith, I’m down to this much cash. I can give you this now or this next month.” Three, I can do an option, “Hey, Mr. Smith, I’m out of cash. Let me, if you’re okay with this, let me have you sign this option agreement to buy at this price in ninety days. Let me work on getting the cash to you.” What you’re going to do, is now that he signed an option agreement, you’re going to go out and try to sell it basically. That will give you the cash to go buy it.

Jack: Yeah, so if you do three, optioning, it’s a great way to no money in real estate investing. You really need to have a bunch of established credibility on the internet. You have to have a website, your pictures got to be on there, maybe include your family members, or your wife, whatever makes you look good and look honest. We’re going to assume you are good and honest. If you’re not, you can turn your computer off right now.

Jill: That’s right.

Jack: On the onset of it it can sound a little sneaky. People in my generation, I’m a little bit older. Duel escrow was a really bad word for a really long time. It’s now back in fashion. Optioning and duel escrow are synonymous, they’re the same thing. For a very long time escrow companies wouldn’t allow it. It’s back in fashion now.

Jill: Now it’s cool.

Jack: Yeah.

Jill: Now it’s what the cool kids are doing.

Jack: I’ll tell you, if you get a seller that’s my age or older that remembers problems in the late 80’s early 90’s with … I don’t want to get into it, but just establish some credit. Do yourself a favor, make sure you’re on social media and get on the computer and establish some credibility.

Jill: Mm-hmm (affirmative)- Exactly.

Jack: Use us to do it if you need to.

Jill: Yeah, totally. You’re right. That’s a good point with an option. Make sure they can look you up, and you’re legitimate. Then they’re going to feel very comfortable signing that.

Jack: Join us on another episode where Jack and Jill discuss how to use information, that’s me.

Jill: And inspiration, that me.

Jack: To get just about anything you want.

Jill: We use it everyday to buy property for half of what it’s worth and sell it immediately.

Jack: You heard it a million times by now. You are not alone in your real estate ambition. Good show, Jill.

Jill: I wish I could add a good scary Halloween, “Whaaaa-hahaha.”

Jack: Oh.

Jill: Do you have a scary, “Whaa-ha”? I don’t have one.

Jack: I could probably put one in. Oh, like in my body?

Jill: Yeah, in your body.

Jack: No, no I don’t have one.

Jill: Oh, you don’t have a scary laugh? You have a scary look. I’ve seen that one.

Jack: Yeah, it comes from being a dad. Dads have-

Jill: Whew, I hate that look. Man.

Jack: It’s out of survival mode.

Jill: You make me shake in my shoes when you give that scary look.

Jack: Never to you. You’re a bi-standard.

Jill: Oh, never to me.

Jack: The kids get it. I developed it as a … coaching soccer for toddlers.

Jill: Ah. You shoot a look.

Jack: They, you know …

Jill: Does it work with toddlers? Do they get it?

Jack: Oh my gosh, yeah. Brings them to tears. Other people’s kids-

Jill: You don’t want to make toddlers cry.

Jack: Sometimes other people’s kids have never been disciplined at all.

Jill: Oh gosh.

Jack: Then they get on the soccer field. I’ve never, ever, in my life had a parent come back and say, “You know what? I think you’re being a little hard on my kid.” Every single time there like, “Thank you so much. This just doesn’t happen enough.”

Jill: That’s hilarious. I wonder how many people saw our Halloween thing recently on our Facebook thing? Sorry if we scared anybody. If you have any little kids don’t show them that photo. Jack got excited with blood.

Jack: Jill and I dressed up as Jack and Jill, of course. We do every year. This year it was Jack and Jill murder.

Jill: Our eyes were bleeding. It was hilarious.

Jack: We went to a couple parties and there were multiple people who said, “I’m sorry, I just can’t talk to you guys any longer, because blood makes me queasy.” It looked real.

Jill: Can’t make eye contact. It did. It was good, that was fun.

Jack: What’s next year do you think?

Jill: I don’t know.

Jack: Jack and Jill what?

Jill: Zombie.

Jack: Yeah.

Jill: Jack and Jill zombie could be king of cool. I like that. Have a safe Halloween [inaudible 00:16:16].

Jack: Yeah, perfect. Information and inspiration to buy undervalued property.

If you enjoyed the podcast, please review it in iTunes . Reviews are incredibly important for rankings on iTunes. My staff and I read each and every one.

If you have any questions or comments, please feel free to email me directly at jack@LandAcademy.com.

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I would like to think it’s entertaining and informative and in the end profitable.

And finally, don’t forget to subscribe to the show on iTunes.

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PatLive introduction at no cost We will help you establish your first script and get PatLive set up on your behalf to answer your phones.
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