Offers Academy is Not Just for Land (CFFL 341)

Offers Academy is Not Just for Land

Jack Butala: Offers Academy is Not Just for Land. 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: Welcome to Land Academy. I’m Jack Butala.

Jill DeWit: I’m Jill DeWit.

Jack Butala: We show you how to buy real estate for half of what it’s worth …

Jill DeWit: … and sell it on the Internet really fast. We are Jack and Jill and this is the Jack and Jill Show Two.

Jack Butala: We are Jack and Jill and this is the Jack and Jill Show Two. With over 15,000 completed transactions, we’re the experts at acquiring property …

Jill DeWit: … of all kinds, not just land …

Jack Butala: … for half price, and flipping them for way more.

Jill DeWit: All right. Let’s get this show started.

Jack Butala: Jack Butala with Jill DeWit.

Jill DeWit: Happy Monday.

Jack Butala: Welcome to our show today. In this episode, Jill and I talk about Offers Academy. It’s not just for land. Jill and I have been kicking this idea around for a long time. It was actually Jill’s idea.

Jill DeWit: Thanks.

Jack Butala: Before we get into it, let’s take a question posted by one of our members on the LandAcademy.com online community.

Jill DeWit: Okay. Claire asks, “I received a response from someone who got my letter. He owns eight lots, all in different states. I’m researching each one right now to come up with an offer for all. My question is, what is the best way to go about buying all of these lots? Would closing with title insurance help this?”

Jack Butala: This is a great question. Claire is one of our original members. She’s been with us for years. She’s doing really, really, really well, so congratulations on that. She’s used this program to her dramatic benefit. I’m proud of her, quite honestly. She’s got a couple little kids at home and her husband’s, I think, an engineer. She’s an engineer also, but she’s staying at home with the kids during their early years and making good use of her time. Her whole goal was to get the husband to, eventually, when the kids get school age …

Jill DeWit: … work with her and retire from the day job.

Jack Butala: Yeah, exactly.

Jill DeWit: Exactly. Mm-hmm (affirmative).

Jack Butala: I haven’t spoken with her directly recently. Have you, Jill?

Jill DeWit: No, I haven’t.

Jack Butala: I’m wondering if that’s all on track.

Jill DeWit: No, it’s kind of normal. It’s like once people get off and running and they’re busy doing deals we don’t hear from them as much. That’s partially why.

Jack Butala: Jill and I have done many deals like this. The one’s that we’ve done together, we pick and choose the properties out of the … Let’s say for the sake of argument, this is a transaction deal, eight lots. We pick the properties that we think should have title insurance, and then we would close them with a local escrow agent or escrow company there. You have a few options. What’s the easiest way? These are not the simplest types of transactions. If they’re properties that are all exceeding $5,000 per unit, I would actually close them all with separate title companies that are local. Or you could call a national company like First American. I think she’s in southern California, isn’t she?

Jill DeWit: Mm-hmm (affirmative). Northern.

Jack Butala: Yeah, so I would find a company like First American, an agent there, and I would walk in or call them and say, “These are in eight separate … Do you guys have offices in these areas and can you help us?”

Jill DeWit: Yeah, and have one person kind of overseeing it all.

Jack Butala: Yes.

Jill DeWit: Yeah, we did it in the past, too when they were smaller parcels and we bought them, we just kind of negotiated and had each transaction ready to go, each deed ready to go, had one notary doing everything at one time, and then we sent them in separately for recording and did all that on our own. I’m not sending the guy eight different packages to review and sign. “Hey, here’s the deed over here.” I just had them all ready to go at one time. You know what? These people by the way, they’re pretty smart. They’ve got eight parcels in eight different states. They’ve kept up on them. They know some things.

Jack Butala: Right.

Jill DeWit: It’s usually not hard.

Jack Butala: The title policies … Usually, when you group properties all together and they’re in one location, you get a pretty serious break on the title policy cost, a serious, serious break. In this case, I would not be surprised if they charged you the investor rate, not the retail rate but the investor rate, for each property.

Jill DeWit: Exactly.

Jack Butala: Because it takes that much work.

Jill DeWit: Mm-hmm (affirmative). They’re all different.

Jack Butala: Right.

Jill DeWit: The owner is the only thing that’s the constant.

Jack Butala: Right. The current owner, right?

Jill DeWit: At least we know … the current owner, exactly. Who knows? He might’ve owned this one for two years and that one for 20. They’ve got to do their work.

Jack Butala: Exactly. If you have a question or you would like to be on the show, reach out to either one of us on LandAcademy.com. Today’s topic: Offers Academy is not just for land. Jill had a brilliant, brilliant idea about three months ago. This is the meat of the show. Tell us, Jill. Tell us about your idea.

Jill DeWit: No, I just … I’m going to interview you this time.

Jack Butala: Oh, you are? Okay.

Jill DeWit: Yes I am, because I helped with the name, but the vision is all you. I want to ask you a little bit here if you would explain your vision on Offers Academy [crosstalk 00:05:01].

Jack Butala: Okay.

Jill DeWit: Jack, please tell us, what is Offers Academy?

Jack Butala: It’s an idea right now. If you actually go to our website … I’m not plugging our website. I’m really not. But if you go to our site, the idea is extremely clear on the sight in our membership plan scenario. The idea is … and this is tested … is to expand Land Academy, the concept, right? The concept of our whole Land Academy is this: get good data. Get super good data, current data. In our case, it’s RealQuest. RealQuest purchases, on a monthly basis or even more frequently, purchases data from each of the county assessors all over the country. They allow access to it for investors like us and our members. Get some great data. Check. Get some offers in the mail. Scrub it real well. Choose the people that you want to, or that you think, are maybe showing the signs of selling their property. Take those out of the big, huge database and get them into a mail merge format and get offers to them, literal offers to the actual property owners, so that they can sign under the bottom and send it back.

We tested it. At various parts of my career we’ve tested this, and with other things, like cars. You know? There’s a lot of people right now, that woke up this morning and said, “Man, I’d love to just get rid of this car pretty inexpensively. I wish somebody could come and get it.”

Jill DeWit: What’s different about Offers Academy than Land Academy?

Jack Butala: We’re going to teach. We are theoretically going to the way we teach people who want to purchase land how to buy cars. It’s an Offers Academy, how to offer data-base driven stuff, how to make offers to people who have valuable assets for less than they’re probably worth, less than the actual asset is worth today.

Jill DeWit: Cool. All right. Who’s it for? Who is Offers Academy for?

Jack Butala: Okay, so it could be for … Well, Land Academy is for land investors.

Jill DeWit: Right.

Jack Butala: Offers Academy would be for anybody who would like to purchase assets less than their current value and resell them. We’ve used cars here as an example, and I’ll cover other types of assets. Let’s say a used car dealer … A used car dealer might benefit from purchasing undervalued cars and then if they’ve got a …

Jill DeWit: “Might.” I love when you say “might.” It’s so funny.

Jack Butala: If you listen to the show regularly, you know that Jill and I use the exact same database, RealQuest, to purchase houses and wholesale them out without ever … We don’t ever go look at the house.

Jill DeWit: Right. We’ve done that but we don’t move walls or do any of that anymore.

Jack Butala: Right. Yes. We’re not the flipper. The flippers are our buyers.

Jill DeWit: Our customers.

Jack Butala: They go look at the properties. They, for whatever reason and I’ll never understand it, they do not want to learn how to use data. They’re not interested in, for whatever reason.

Jill DeWit: Isn’t that funny? Now we mark it up and they’re happy with that because they make so much money off it in the end, everybody wins.

Jack Butala: They just check it off their list. I was thinking about this a couple days ago. They look at it just like we’re contractors. They have a plumber. They have an electrician, when they renovate the house. Now they have deal flow and we’re the contractor.

Jill DeWit: That’s very true.

Jack Butala: Just like with a regular contractor, up front they know how much it’s going to cost and they build it all in to make sure that there’s enough money at the end of it to continue to use us.

Jill DeWit: Exactly. Cool. When is Offers Academy going to be available?

Jack Butala: We are kicking around the idea of releasing it in the first quarter of 2017. Cars and houses are not the only … as long as you have a very good, solid data source. That’s the whole key to this.

Jill DeWit: Right. That is the key.

Jack Butala: If you buy a list on the Internet, let’s say … I don’t know. What’s a good example of how this probably wouldn’t work?

Jill DeWit: How about this? People have lists of email addresses.

Jack Butala: Yeah, perfect.

Jill DeWit: Just say you buy a list of email addresses. You don’t know how old it is. You really don’t know what their interests are. You just have a name and an email address. That’s about it. You don’t have all of the pertinent information.

Jack Butala: Right. Exactly. And it’s not fresh. That’s the real challenge with this.

Jill DeWit: You have no idea.

Jack Butala: There’s a lot of people on the Internet, on FaceBook and on our online community that, they come to us frustrated. You can see it a mile away. It’s because they’re not using fresh data. They’re trying to save money by using old data.

Jill DeWit: I know. It’s so funny, the times that I sit there and I go, “Okay, let’s talk about it. Where did you get it? What did you spend? How many weeks did you do this stuff?” Then, when I go and we add it all up, it’s way more money and way more time and energy in the end than just going right to the source and getting the good stuff.

Jack Butala: Right. Data’s 50% of it. The other half is getting offers in the mail properly. Again, when people come to us and they’re frustrated, it’s one of those two things. They’re not using the right data or they’re licking a stamp.

Jill DeWit: Exactly.

Jack Butala: Licking a stamp is … We have direct competitors for land that teach this. Lick a stamp at your kitchen table on Sunday night. You’re missing all kinds of … First of all, it’s the single most expensive way to do this. If you’re going to send a lot of offers out, you want it to be as cheap as possible and as easy as possible and professional. There’s software that these bulk mail printer companies use to make sure that these offers effectively go out. They get rewarded by the Post Office price-wise for doing it properly. They make the Post Office’s life easier. That’s one of those situations where it is a silver bullet. There’s nothing good about licking a stamp and nothing bad about using bulk mail.

Jill DeWit: I just feel like time. Let’s just think about this. If you’re going to do this right and it’s not a hobby, you’re not sending 10 a month or 10 a week. You’re sending a couple thousand a month.

Jack Butala: Right.

Jill DeWit: Are you going to really sit … Think about how much time it’s going to take you sitting around your dining room table licking envelopes and stamps to send out a couple thousand a month.

Jack Butala: That’s right.

Jill DeWit: You should be looking at the deals. You should be reviewing the deals. You should be finding the right county. That’s the brainy part of it. Anybody can do the stuff and you should be hiring that out.

Jack Butala: Exactly. You know, let’s just use houses for our example. It’s a giant waste of time to look at an asset.

Jill DeWit: Right.

Jack Butala: You should never leave your desk.

Jill DeWit: Right.

Jack Butala: This is what we teach. I think, again, people come to us frustrated because somebody else told them, “You need to go drive for dollars.”

Jill DeWit: Right.

Jack Butala: What a giant waste of time.

Jill DeWit: Oh, exactly.

Jack Butala: You want to get the person who you’re going to sell it to. In every case, too, you have to get the buyer first. If a buyer comes to you and says, “I only want 2007 to 2009 4Runners. I sell those immediately on my lot.” Let’s say you send a mailer out. What’s a data source, by the way, of that? It’s the actual national DMV database. There’s a company out there that provides that. We will provide that when we release that program. You want the dealer to go out and make the decision about whether or not they’re going to buy the car.

Jill DeWit: Exactly.

Jack Butala: It’s got to be somebody you have a relationship and that you trust and that you want to tell them you’re only marking it up 1,000 bucks. It still needs to be a smoking deal for you.

Jill DeWit: Right.

Jack Butala: You need to make whatever you’re going to make on top of that.

Jill DeWit: Exactly.

Jack Butala: It’s not rocket science. It’s a blast.

Jill DeWit: I know!

Jack Butala: It’s like … I don’t know. You know that feeling that you get when … I don’t know, whatever you’re hobby is … You go to a store and whatever your hobby is … for me it’s playing the drums … and the drum set you’ve been dreaming about is 80% off.

Jill DeWit: Right.

Jack Butala: It’s that same feeling.

Jill DeWit: You know what’s so funny? I’m just sitting here thinking about, you know, what do you really want to do? Where do you want to be in this business? Could you imagine if Donald Trump was still answering phone calls, you know?

Jack Butala: Yeah, good example.

Jill DeWit: Let’s just imagine. Let’s see, what level of investor do you want to be? Are you going to be a mom and pop and only live by one property a month for the rest of your life?

Jack Butala: Yeah. Well said, Jill.

Jill DeWit: Then lick some stamps and make it a hobby. Or do you want to make some money here and quit your day job? Or just, at least have the college paid for the and the mortgage paid for and be able to make some different decisions?

Jack Butala: Let’s say you’re a car dealer. Do you want to never have to worry about acquisitions again?

Jill DeWit: Exactly. Or do you want to have to go to an auction every weekend and walk around the lot and look for that one and prayer when you open the hood that it’s not as bad as you think it is. You know what I mean? It could be. Let’s be honest.

Jack Butala: Yeah. You’re exactly right, Jill.

Jill DeWit: It’s so true. Instead of knowing exactly what you want and having the person with it that doesn’t want it anymore calling you up, saying, “Will you take this off my hands? Take this car. Take this …,” dream it up, whatever it is.

Jack Butala: In the past I’ve done this with cars, in the very distant past. We’re going to crank it back up just to test it so we can talk about it on the show and stuff. This all came back to us because after Land Academy was up and running, and obviously our land business is still thriving, Jill got us a vacation rental for a month by using this methodology. She picked out, what, five or 10 or 15 …

Jill DeWit: It was like 10..

Jack Butala: … extremely expensive houses in southern California right on the ocean, right on the ocean, and sent them offers just to test it.

Jill DeWit: Yeah, it was like 10% of what they were asking. I’m like, “Look, I know it’s vacant.”

Jack Butala: 10%. 90% off.

Jill DeWit: “I know it’s vacant. Is it going to sit there vacant or do you want to get some money for it this month?”

Jack Butala: It worked.

Jill DeWit: That was it. They’re like, “Okay.” I was very honest. “You’re not the only one I’ve reached out to.” It’s kind of like dating. We joked about that. You know? Answer quick.

Jack Butala: That’s why we have to totally credit Jill. Then I got started thinking, “What?” This could work.

Jill DeWit: Yeah, that was so funny.

Jack Butala: Then we did test it. I tested it for boats. I got the Coast Guard database and sent a bunch of offers out for extremely expensive, large power yachts. I did not execute the deal, but I brought it right to the end. We talked about it two months ago on the show.

Jill DeWit: Yeah, and the whole thing was, too … A lot of it was, “Here’s who we are.” You know, ” … everything that we do in our offers. Here’s our cover page telling who we are. We’re legitimate. Check us out. Look at our website. Look at what we’re doing. Now you know that we’re not messing around. We’re real people at a real company. Now here’s our cash offer. You can have cash next week.” That was my thing with the person, too, that was kind of funny but when I did that VRBO thing and we were testing that. I mean, I paid for it that night. She’s like, “You know what? I’m in.” We never even spoke. She sent me … it was like a PayPal invoice. I paid it immediately. Done.

Jack Butala: Exactly. Well said, Jill. There’s a lot of things that we’ve perfected over the years, since the 90s, about buying land that apply to this and why it’s so effective. You’re not really looking for an asset. Real estate is incidental. The quality of the asset is not really what you should be focusing on. That’s why Offers2Owners frustrates me so much. You should be focusing on … not Offers2Owners, excuse me. Driving for Dollars.

Jill DeWit: Oh, yeah.

Jack Butala: That’s why Driving for Dollars frustrates me so much, because it’s shifting your focus off of being a great acquisitions person and shifting it onto worrying about the asset and what’s under the sink and under the hood, just like you said. There’s a lot of ways to not make this work, you know. The greatest data in the world isn’t going to help if you send out postcards.

Jill DeWit: Right.

Jack Butala: Will you buy some stuff if you send out postcards? Heck, yes. There’s people all over bigger pockets, in our online community, they reach out to us, Jill and I, all the time and say, “You guys are nuts! I bought an old list off the Internet for 32 cents. I licked some stamps on postcards, wrote them, and I bought a piece of property.” Well, congratulations. Your hobby’s off to the right start.

Jill DeWit: Exactly.

Jack Butala: If you’re serious about this, get some good data, outsource your printing, and send offers with a dollar amount right in there. You nailed it. Cash value, get your cash out there and say … You’re looking for a situation. You’re not looking for an asset.

Jill DeWit: Right.

Jack Butala: You’re looking for somebody who their husband is mad about the car that’s been in the garage for four years.

Jill DeWit: Under a tarp.

Jack Butala: Yeah. The project that never got off the ground.

Jill DeWit: Exactly. It’s a classic car and he’s happy to get rid of it for cash.

Jack Butala: That’s the situation you’re looking for. I’m excited.

Jill DeWit: Good. I know. Me, too.

Jack Butala: I never thought Land Academy would be this popular and this successful and honestly, I get off on it. We talked about Claire earlier. I loved that. I never knew how much I would love teaching. Teaching’s probably not the right word. I don’t know what to use, but just being part of a community that is just having so much success. I want it to be bigger, that’s all.

Jill DeWit: Exactly.

Jack Butala: Land Academy, you’ll notice that all of our membership levels are now capped. The number of people that we will accept into our community, we’re rapidly approaching that. I don’t want to just endlessly allow people to be involved in this, you know?

Jill DeWit: Right. You want the right people.

Jack Butala: I don’t want to create a competitive situation. It’s not competitive at all right now. I don’t want that to happen. We’ll move onto cars. That’s limitless. Houses are limitless.

Jill DeWit: Exactly.

Jack Butala: Does that answer your question?

Jill DeWit: Yes. Thank you.

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

Jill DeWit: … and inspiration, that’s me …

Jack Butala: … to get just about anything you want.

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

Jack Butala: You are not alone in your acquisition ambition. How’s that?

Jill DeWit: I love it.

Jack Butala: [inaudible 00:18:57], Jill?

Jill DeWit: Yeah. Offer ambition …

Jack Butala: Offer ambition!

Jill DeWit: Yeah, whatever it is.

Jack Butala: Just ambition.

Jill DeWit: That’s true.

Jack Butala: We don’t want to be everything to everyone. That’s not what this is about at all. I hope that’s not coming off that way.

Jill DeWit: No. It’s just expanding what we already know and we do really well. Why wouldn’t we? That’s the bottom line. We’re already doing it right. We tested it. It works. Our people have tested it. It works. The way we convey it, the way you convey it, tested, works.

Jack Butala: This is all based on requests from current members. You know? I didn’t go out and dream this stuff up.

Jill DeWit: Right.

Jack Butala: We talk about it. Just like today. We talk about it on the show and then people reach out to us that commented on it. They call us and they tell me, “Man, I’d love to know more about that.” The auto, I mentioned it in the show like, I don’t know, like a year ago, because I’ve done it way in the past. It’s generated a lot of interest.

Jill DeWit: I was just thinking on our weekly calls we’ve talked … because we have people in our world that are in the boating, Coast Guard community and we’ve talked about it with them on our weekly calls with our members.

Jack Butala: Yeah, isn’t there a woman in Alaska that’s seriously flipping some land up there?

Jill DeWit: Mm-hmm (affirmative). Right.

Jack Butala: In our group.

Jill DeWit: Is she definitely Alaska? We’re talking about the same person.

Jack Butala: Yeah. She’s in the Coast Guard and she’s really excited about the boat piece.

Jill DeWit: Exactly.

Jack Butala: It’s cool. Information and inspiration to buy undervalued assets. We are Jack and Jill and this was the Cash Flow From Land Show.

Jill DeWit: We are Jack and Jill and this was the Cash Flow From Land Show.

Jack Butala: We are the experts at acquiring property …

Jill DeWit: … of all kinds, not just land …

Jack Butala: … for half price just so we can flip it for way more …

Jill DeWit: … and really fast. Thanks for listening. You are not alone in your real estate ambition.

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