Land Buyers There are Wholesale & End Users (CFFL 339)

Land Buyers There are Wholesale & End Users

Jack Butala: Land Buyers There are Wholesale & End Users. Leave us your feedback for this podcast on iTunes and 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: Welcome to our show today. In this episode, Jill and I talk about land buyers. There’s wholesale and end users, totally different people and totally different transactions. This is a good show actually.

Jill DeWit: I know, I’m excited.

Jack Butala: Before we get started, let’s try take a question posted by one of our … Let’s try!

Jill DeWit: Let’s try.

Jack Butala: Let’s try to read today. Posted by one of our members on landacademy.com, our online community. It’s free.

Jill DeWit: Mm-hmm (affirmative). Well, I’m going to try.

Jack Butala: Let’s try to read together.

Jill DeWit: Okay, good. Claire asked, “I have a buyer for my property who wants to give the property as a gift. Is it legal to deed the property to someone who is not involved in the transaction at all or do I need to deed it to the buyer who would then take care of transferring the deed to the giftee?” Oh, pick me, pick me.

Jack Butala: Go ahead, yeah.

Jill DeWit: Okay. Absolutely, Claire, I would do this all day long. My buyer says, and it’s probably in an email that we’ve had this conversation or something that they said it in there, so I have it in writing that I wanted to put in this name. No problem at all with that. That’s totally cool and legitimate. Here’s a funny thing, too. I hope I’m not stepping on your toes, Jack, but technically, I could put … That person doesn’t even need to have to know because maybe it is a gift, maybe it’s seriously … It’s a Christmas present. Have Jack and I done that for different people for gifts and things like that, giving them property? Yes, all day long!

Jack Butala: We give property to our friends’ children as …

Jill DeWit: It’s a graduation gift.

Jack Butala: Yeah, graduation present.

Jill DeWit: We’ve done that and stuff like that, and they think it’s the coolest thing. We’ve had past employees that really worked hard and did a great job for us and they went on to do different things. One of our parting gifts was, “Hey, this one’s yours,” and they’re like, “Really? I don’t even … My car’s not even paid off!” Remember that one? It was cool, and they’re so excited to have it.

Technically, you can deed a property to anybody, have it recorded in their name, and they will first find out … I wouldn’t do this to somebody, but it’s totally legitimate legal that when the tax bill arrives, they have a property that they own kind of thing.

Jack Butala: Here’s a couple of points. A deed is not a contract. It’s a conveyance document. Jill and I, by the way, have separate companies, multiple separate companies, and often I’ll buy property or whatever cash situation certain companies are in, my companies might have more money, hers might have less or she might have more property, I might have less. We all kind of work together and very often, money will come out of a bank account that, let’s say, I control to buy her property or vice versa. That’s the legal equivalent to what we’re talking about here.

The second thing is I want to bring this contract point up. It’s a conveyance document. It only requires one signature, not two, so the grantor, which is the seller … The seller conveys the document, so I could convey to you, Claire, a piece of property without your knowledge.

Jill DeWit: Mm-hmm (affirmative).

Jack Butala: The only … Jill alluded to it. I want to make a deal out of it because Jill alluded to it, but I’ll finish the thought. That’s a big deal. This is what happened to me one time. I sold a bunch of property to a guy in the northeastern part of the country. The property we’re looking at in New Mexico, and he didn’t understand what I just said. I conveyed the property, so this guy spent two weeks of his life learning how to sign my name. He deed a bunch of property to himself. I don’t even know if I ever told you this story.

Jill DeWit: Oh, I do remember this.

Jack Butala: Well, luckily, we had owned a ton of the property in New Mexico in this one county, a ton of it, so we were all friendly with the seller. I mean, all friendly with the people at the county and they recognized it as a fraudulent scenario because the envelopes that it was coming in were all different. They notified me, and they undid it fortunately, but you know, it’s not … I’m not saying if you’re new at this, don’t worry about this. This stuff never happens.

Jill DeWit: Right.

Jack Butala: If you’re going to do 15 or 16,000 deals like us, maybe some stuff like this might happen, but if you’re normal like everyone else, you’re going to do two or 3,000 deals in your career, which is more than enough for the rest of your life. You’re not going to have anything like this happen.

Jill DeWit: Exactly.

Jack Butala: I’m just philosophically talking about exactly what Claire’s talking about. Unless you’re a title agent, it’s so easy and it’s so simple, and people tend to think it’s really complicated.

Jill DeWit: Right.

Jack Butala: It’s not.

Jill DeWit: Yeah, to answer your question, Claire, absolutely. Like I said, whatever the person says, “Hey, I’m giving it to my son. He’s graduating high school.” You know, whatever it is, college, whatever, we put it in his name. Yeah, heck yeah. No problem. Here you go, have a nice day.

Jack Butala: Yeah, there’s no reason for a double deed.

Jill DeWit: Right.

Jack Butala: If you have a question or you want to be on the show, reach out to Jill or I on landacademy.com.

Today’s topic, land buyers. There’s wholesale land buyers and user. We call them retail land buyers. This is the meat of the show. Jill, you’re an expert at this area. What are the basic differences, you think? What kinds of deals do you like to do, not like to do? Pros and cons of both. I mean, what do you think? I have a lot to say on this.

Jill DeWit: I know you do. I’m going to try to reel you in.

Jack Butala: All right.

Jill DeWit: Let me first describe the main differences and then we can talk about if … I’ll talk about what I like and don’t like. The wholesale buyers, traditionally, they go for a little bit … They go for less money, cheaper, and there’s no work involved. For example, if I’m selling a property wholesale to somebody else who’s also in my world, and they’re going to try and sell it, do something. Whatever I’m supplying to them, I’m giving them … I literally will email an APN, assessor’s parcel number. I’m getting a list with an assessor’s parcel number, the county, the size, and the price.

Jack Butala: Three things.

Jill DeWit: That’s really it.

Jack Butala: Four things.

Jill DeWit: Four things. That’s all they need to know. They can go look it up. They’re in this world. That’s all I need to know. Send me a property, that’s all I need.

Jack Butala: That’s the wholesale land buyer there. It’s smart as or smarter than you.

Jill DeWit: Right. That’s partially why it’s a cheaper price. I’m not doing any work, everybody. I just got it in. I did no maps. I did no marketing. I’ve done nothing at this point. First thing I’m doing is reaching out to my other wholesale people to see if they want it, and I can flip it really quick.

Jack Butala: You reduce your workload by … You cut it in half by wholesaler deals.

Jill DeWit: Exactly.

Jack Butala: What are the cons? You make less money.

Jill DeWit: Right.

Jack Butala: You’re giving up … You’re selling property for a lot … In some cases, a lot less.

Jill DeWit: Mm-hmm (affirmative).

Jack Butala: Just to make it easier and move it through the system better.

Jill DeWit: I’m okay with that.

Jack Butala: That scenario is perfect if you just are in love with acquisitions like our organization is, from the top down.

Jill DeWit: Exactly.

Jack Butala: We love acquisitions, and some people love sales.

Jill DeWit: Do you know what? I argue with the less money thing because I’m completing my transaction, so it really works out in the end.

Jack Butala: You just took it right out of my mouth. If you do more deals, and each deal you’re making less money, I know it’s a cliché, but you’re making it up in volume.

Jill DeWit: Exactly.

Jack Butala: Are you really making … You might be making less money per transaction, but are you making less money that year, let’s say?

Jill DeWit: Nope.

Jack Butala: We’re not.

Jill DeWit: Nope.

Jack Butala: I’ve done it both ways.

Jill DeWit: Exactly. Let’s talk about the other way. Do you want to hear this? All right, so the end user, yes, you can maximize profits sometimes. You can ask for more money, make it look beautiful, get a drone video. You know, really make people fall in love with property, but what does that take? A lot more work now by the way, and you have to weave through the tire kicker, there’s a lot of … Now, you’re dealing with the retail end user that walks in and they kind of want to sit in it and smell the leather and see if it looks good. You know what I mean? Do I look good in this car? There are people out there that are like that.

Jack Butala: You look good in every car, Jill.

Jill DeWit: Thank you very much. That is, I think, the main difference. They’re going to take a drive out there. They really will say, “I need to drive out there. Do you want to meet me there?” I’m like, “I don’t really need to be there. I don’t need to hand you … There’s nothing to unlock. Here you go.” Remember the time I said that to somebody?

Jack Butala: Yeah.

Jill DeWit: I thought it was hilarious. They didn’t think it was funny, but they said, “Hey, we want to go out and see the property. Are you going to meet us out there?” I said, “No, I’ll just leave a key under the mat.”

Jack Butala: I don’t remember that.

Jill DeWit: He was a British guy. It was the funniest thing. He was like, “What is that?” I thought that was really funny.

Jack Butala: That’s outstanding.

Jill DeWit: He didn’t get that.

Jack Butala: Maybe they don’t have keys, and maybe they don’t have mats.

Jill DeWit: Maybe there’s not a mat. It’s just a piece of property. I don’t know, it was so funny. Anyway, that’s one of the differences. What do you think, Jack?

Jack Butala: Here’s the thing about retail sales. The amount of juice that you get from a marketing standpoint when you produce a drone video and a fully produced Internet presentation the way that it should be done, and this is what we teach … If you’re new, you should be doing this on every single property even if you do wholesale it because the draw, the SEO, the organic search, the buzz that you create, and all the social media sites, you’re celebrating it like in a press release style. That’s irreplaceable.

Jill DeWit: That’s true.

Jack Butala: You’re going to build an A-list buyer scenario, a huge, great A-list buyer scenario. That’s one of the … I hate to say it, but it’s way more often than not, we take the wholesale route. It’s not that we’re lazy. It’s just because we can do so much more deals, but brand new people need to go through the gamut of the retail sale scenario until they can get … You know, we’ve got … Our buyer list has several hundred thousand people.

Jill DeWit: Well, here’s what happens. It’s funny what you just described because I’ve heard our people doing this. They went through the whole thing. They’re all worried like, “Oh, it’s not going to sell. It’s going to sell.” Ten days have passed and they’re panicking. You know what I mean? I’m serious. They think they did it wrong. On day 12, here comes the right guy.

Jack Butala: You wake up and the credit card note, the payment’s there.

Jill DeWit: Exactly, but wait, it gets better. Day 12, someone checks out. Day 13, 14, 15, and 16, here come more buyers that probably would have paid more, and that person’s kicking themselves. They’re calling us going, “I did it wrong.” I’m like, “No! You did right, knock it off because those other five people now are in your world, and they’re going to keep watching you. Those are your new buyers too by the way. They’re kicking themselves they didn’t get that one.” Don’t worry about it. You just collected all that traffic like you just said, Jack, and it’s perfect.

Jack Butala: Exactly. The right answer’s to do both until you’re at a point where you’re just shoving property … You know, it’s just a machine, like we have it.

Jill DeWit: Mm-hmm (affirmative).

Jack Butala: I don’t even know what we buy and sell. I know exactly where to go to check, but I know how much money we’re making.

Jill DeWit: Right.

Jack Butala: I know everybody’s happy at the office.

Jill DeWit: Exactly.

Jack Butala: I know I don’t get any customer angry.

Jill DeWit: I’m happy.

Jack Butala: Here’s the other thing. Retail buyers, not wholesale buyers let’s call them, sometimes they have buyers’ remorse. There’s just a lot more maintenance. With a wholesale buyer, who then does all the retail piece of it, the sale is final. They know what they’re doing.

Jill DeWit: It’s a business for them.

Jack Butala: There’s no talking. There’s only … It’s usually one conversation, if that, because they already have your wire instructions. You send them an APN, like Jill said. We haven’t even bought the property, almost all the time. We haven’t even closed the deal yet, we send an APN over, and they say, “Oh, I’ll take all of those. Same wire instructions?” Yep. Long before the deal’s even closed.

Jill DeWit: We have the buyer ready to go.

Jack Butala: Leave the cash in there.

Jill DeWit: The buyer’s just ready.

Jack Butala: Literally, the cash is our bank. That’s how much we trust each other. It’s hard to … When you’re at a point like us, it’s real hard to go the other way for an extra maybe 50%, I don’t know. 30 to 50% of the price.

Jill DeWit: Yeah.

Jack Butala: Plus, you know what the thing is too, Jill? We didn’t talk about this. We’re cash buyers. You and I are cash people. How many rental houses have you and I purchased? We were into it for three months, and I say something like this, “You know, it’s going to take us 900 months if we continue to rent this property.”

Jill DeWit: Oh, I know, versus just get out.

Jack Butala: Versus just selling it because we bought it so well. What do you say we just sell it? Okay, yeah, let’s do that.

Jill DeWit: It’s easier.

Jack Butala: We’re just cash people. It’s in our blood.

Jill DeWit: Yeah, get in, get out.

Jack Butala: A lot of retail sales.

Jill DeWit: We’re the day traders of property.

Jack Butala: I know. I’ve been saying it for years.

Jill DeWit: That’s it. We day trade. Now that you mention it.

Jack Butala: The other thing too is that if your a terms person, then there’s a lot. It’s like if you love the idea of just building an arsenal of income streams, separate little unique income streams, then you’re a retail person on terms.

Jill DeWit: Right.

Jack Butala: Some of our most successful … Well, our single most successful members, there’s probably about 40 or 50 of them, they do both. They do all of what we’re talking about. Depending on the property, sometimes they’ll wholesale, sometimes they’ll retail it. Sometimes for cash, sometimes for terms, and that’s the real answer.

Jill DeWit: What I like is I’m in the position … What we do is we really are a wholesale seller. However, I will sell to anybody, but the person that calls me … I don’t take the calls now, but when I did, I explained that this is our model. I’m not going to hold your hand, you know, in a very nice way, “Hey, I’m really a wholesaler.” I don’t usually do that much work. I’m not going to dress it up. No, I’m not going to go out and steak it for you or meet you there and have coffee or whatever with you. That’s not what I’m going to do. However, that’s why you’re getting it at this price.

Jack Butala: Right.

Jill DeWit: They go, “Oh!” The right person goes, “Oh, I get it. All right, I’ll call you back. I’m going to talk to my wife.”

Jack Butala: That’s right, and that’s the key. Now, you smoked out the right person.

Jill DeWit: Yep.

Jack Butala: The wrong person would say, “Well, I need more maintenance than that. I need more attention.”

Jill DeWit: How much does a well cost? Are they nice neighbors?

Jack Butala: You need to sit here and talk to me about this. I’m having a feeling. My feelings are not right where they should be. Okay, thank you.

Jill DeWit: I really thought the trees would be a little bit taller.

Jack Butala: There’s a seller, his name’s Mark. Call him. You sound perfect together.

Jill DeWit: Who, me? Ew.

Jack Butala: No, that’s to the seller.

Jill DeWit: That’s where we say, “Hey, we’ve got a guy for you.” No.

Jack Butala: You didn’t understand my joke.

Jill DeWit: I got it now. It took me a minute. It was out there. I got it though.

Jack Butala: Join us in another episode where Jack and Jill discuss how to use information, that’s my part.

Jill DeWit: Inspiration and holding everyone’s hand, that’s my part.

Jack Butala: Never get what you want.

Jill DeWit: We use it almost every day with our staff to buy property for half of what it’s worth and sell it immediately.

Jack Butala: You’re not alone in your aggravation. Good show.

Jill DeWit: Yep. I think we explained that. It’s very different, and it’s …

Jack Butala: You know what we didn’t say?

Jill DeWit: What?

Jack Butala: It would have the show really short.

Jill DeWit: What?

Jack Butala: The sales price. It’s just automatic.

Jill DeWit: Yeah.

Jack Butala: The sales price sells these properties. We all make our money when we buy it, not when we sell it.

Jill DeWit: True.

Jack Butala: It’s so cheap, and we’re still doubling our money.

Jill DeWit: Yep.

Jack Butala: It’s just too easy to send a list, a big long list of APNs just to people that we’ve been selling property to for years and get a ridiculous … Double our money with no headaches at all.

Jill DeWit: Right, like why would I deliberately punish myself by spending four hours on the phone with the wrong person? It’s funny. You can tell, and I tell everybody after. I learn from the pro, that was you, Jack. After the second or third phone call, you’re like, “Oh, this is not the person. I’m not taking those calls anymore. Have a nice day.”

Jack Butala: I mean, I deliberately did not bring out my three phone call rule.

Jill DeWit: Thank you.

Jack Butala: If I have to talk to … Well, I’m going to bring it up now. If I have to talk to anybody three times, there’s something wrong.

Jill DeWit: Mm-hmm (affirmative).

Jack Butala: I’m doing something wrong maybe. They’re doing something wrong. They’re not the right person.

Jill DeWit: They’re not serious.

Jack Butala: Maybe I posted the property incorrectly, so they don’t have enough information and they really do need to ask legitimate questions.

Jill DeWit: True.

Jack Butala: Zoning and stuff. I didn’t do enough homework to post it properly.

Jill DeWit: Perfect example.

Jack Butala: You know, that’s why I always advocate if you’re going to go retail to do a Google earth flyover video inside your computer screen with a … Mac comes with software to do this, and Windows, we use Snagit, which I love, where you’re just saying, “Hey, this is how you get to the property. Follow me down this road. Look at these mountain’s views.” You’re really introducing the property to somebody who can then make a extremely good decision about what they’re getting.

Jill DeWit: Save yourself some work.

Jack Butala: Yeah.

Jill DeWit: That’s the key.

Jack Butala: Yeah, spend five minutes on a video screen doing a Google … Then put it on YouTube.

Jill DeWit: If they call you, they didn’t read everything, so we’re not real thrilled about them there or they’re not the right person. You put as much information as you can like you just said, Jack. That’s awesome because it does help people and it weeds them out.

Jack Butala: This stuff always sells. For people who are brand new at this. They’re always worried about it. I get it. They’re just new at it. It’s something new, and I can totally get that. I would rather have it sell, if you’re going to do a retail deal, I would rather wait an extra month and sell to the right person than just really go jump through hoops for somebody who just … It’s really difficult.

Jill DeWit: Exactly.

Jack Butala: We did a deal … We’ve done a lot of deals. There’s a deal that I remember that you and I did a few years ago with some properties in Texas, and the guy called and said, “I just need to move some money around.”

Jill DeWit: Right, yeah.

Jack Butala: That was … Since then, that’s been kind of my staple.

Jill DeWit: Mm-hmm (affirmative).

Jack Butala: You just need a bunch of deals in that area. They’re all 40 acre properties or bigger.

Jill DeWit: Mm-hmm (affirmative).

Jack Butala: Man, what a difference. There’s dreamers and there’s people that say, “Here’s your wired information change since the last time.” That’s the question you want.

Jill DeWit: Exactly.

Jack Butala: It’s all good though. I don’t mean to paint a negative picture.

Jill DeWit: No.

Jack Butala: I hope it’s not. There’s sales in everything, right?

Jill DeWit: You know what, Jack, here’s what you just did. What you and I just did is properly convey to our community here what these customers are like. Our customers want to know what the property is like. We’re properly conveying to you what you’re going to be into if you’re in this world and you’re in this business.

Jack Butala: Okay, good.

Jill DeWit: I think we did everything right.

Jack Butala: I’m glad to hear you say that.

Jill DeWit: Thank you, Jack.

Jack Butala: Sometimes you go the peaches and cream route, and sometimes I go the curmudgeon route. If the planets are aligned, we meet in the middle.

Jill DeWit: We meet in the middle.

Jack Butala: Yeah, and it’s regular boring.

Jill DeWit: Nice. If only everyday was like this.

Jack Butala: Information and inspiration to buy under value property.

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