Offers Academy for Homes
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 Offers Academy for homes. If you haven’t noticed yet this week, there’s a constant theme in all of or programming.
Jill DeWit: You will notice by Friday.
Jack Butala: Before we get into it, let’s take a question posted by one of our members on landacademy.com, our online community [inaudible 00:00:25].
Jill DeWit: Alright, Luke asked, “Deals are flying. Use this-”
Jack Butala: That’s not a question, though.
Jill DeWit: Right. “Used the same data a couple times that day, and one of the times, I did not change the guarantor line.” Oops.
Jack Butala: He’s doing too many deals.
Jill DeWit: Yeah. “Changed everything else. The buyer got the recorded deed. Recorded land to a different buyer. Guess I can get the other buyer to deed it to the right person, but what about tax and other consequences? Is there an easy way to fix a goofed up recording?”
Jack Butala: Yeah. First of all, this stuff happens, because you’re not … This has happened to me. Many times it’s happened to both of us, I’m sure. It’s, because you’re not using a CRM. That’s my guess. The CRM that you may or may not be using probably does not generate a deed document for you. If you’re using Deed Perfect, which is great if you’re kind of using … Deedperfect.com is a tool that we set up for everybody to generate deeds. It’s very easy to … It’s not a CRM-based situation, but at Luke … We have very successful, multiple people named Luke in our group. You guys are all at the level, whichever Luke this, all at the level where you should be using a CRM. It should be generating a document for you.
You have a customer. You have a guarantor and guarantee. You just fill it all into the CRM and generate a document. That’s point one. Point two is just it depends on the county. Is there an easier way to fix this goofed up thing versus undoing it? I know in Arizona, you can file what’s called a corrective deed. If this is in Arizona, you’re in luck. If not, just simply call the recorder and ask them how to do it.
Jill DeWit: Exactly.
Jack Butala: They’ll tell you. You’re really helping their [corner 00:02:21] a lot, and if you handle it properly on the phone, they’re really going to thank you, because they don’t have to do it.
Jill DeWit: Exactly.
Jack Butala: Before it gets to the assessor. That’s when there’s are problems.
Jill DeWit: Yeah. Right. In a perfect world, that’s what you’re doing. You’re not now going to re-deed it from this person to that person, because now you got a little title mess that you don’t need to do. What you’re trying to do is undo the mistake with the recorder’s help, and they will tell you what you do. It’s … Yeah, we’ve been there. It happens, and it’s okay. They can pull that deed, and they can do some stuff. Going forward, the hiccup won’t show up five years from now. It’ll be gone, and you caught it in time. It’s all good.
Jack Butala: What’s your saying, Jill? There’s no roadblocks. There’s only speed bumps or something?
Jill DeWit: Yeah, it’s a speed bump.
Jack Butala: Paperwork is my least favorite part of this whole business model. If you put the right systems in place like the one I mentioned earlier, you really reduce the amount of paperwork. I’ve seen Jill angry at work maybe three times in my life, and one of … I think two of the times she was angry, because of something like this happening, and it could have been … Because the person was going too fast.
Jill DeWit: It was.
Jack Butala: That person no longer works with us.
Jill DeWit: It’s attention to detail. That’s one of my little hang ups that I have. It’s like let’s spend five minutes and look at this. Maybe get another pair of eyes to look at this, when you’re doing it. We did 14 deeds the other day.
Jack Butala: Oh, yeah?
Jill DeWit: I put a picture on Facebook to show everybody. My team’s done 14 deeds the other day, and we’re making sure … Let’s all make sure we get the right properties. Let’s all look at them again. Even when I’m assigning them and my team’s notarizing, I’m eyeballing them making sure I didn’t miss anything. I’ve spotted some. Actually, there was one that I spotted a mistake on. I go, “Did you realize you have this wrong county here? It should be this county.” They’re like, “Oops, okay. Yeah. Thanks.” It can happen.
Jack Butala: It does. You should plan on it, but it’s a good question. There’s a concept of the … To answer it directly again, there’s a concept of the corrective data out there. I know Arizona for sure has it. Then, I know I think California does not offer that type of scenario.
Jill DeWit: I don’t [inaudible 00:04:38].
Jack Butala: I think you have to undo it.
Jill DeWit: I’ve had deeds get totally flat out lost. Like I can almost show the … I have tracking information, and they still get lost. It’s not perfect. Things are going to happen. I’ve had to go back to the seller and say, “Hey, I’m sending you another one. Can we do this again, please?”
Jack Butala: It’s really funny, because you get to know which post offices around the country are really efficient and which ones aren’t, because I know for a fact that …
Jill DeWit: It’s very true.
Jack Butala: Post offices in Chicago’s got some problems.
Jill DeWit: I know one in southern California near us that has problems, because I see it on Facebook all the time. I actually from there I’ll have things taken to a different area.
Jack Butala: For a long time we just used GPS, but it got so expensive. That was before … It was just … The post office made it really, really easy.
Jill DeWit: Cheap and easy to do their tracking and all that. Yeah.
Jack Butala: And you can bulk do mail and stuff like … UPS has its own software. It allows you to really kick out a lot of mail at once pretty efficiently.
Jill DeWit: USPS you’re saying. Yeah.
Jack Butala: No, UPS.
Jill DeWit: Both do now.
Jack Butala: No, but that was … It was the only solution …
Jill DeWit: That’s true.
Jack Butala: … For years and years and years. The post office, now, has made it …
Jill DeWit: Now you can do a batch.
Jack Butala: … [inaudible 00:05:49]. Yeah.
Jill DeWit: Yeah, we do that.
Jack Butala: Batch it out real easy, and it’s way more economical. If it wasn’t, we wouldn’t do it.
Jill DeWit: It sounds like our show’s about the post office.
Jack Butala: What is this show about?
Jill DeWit: It’s not about the post office. I know.
Jack Butala: Hey, if you have any questions or you want to be on our show, please reach out to either one of us on landacademy.com.
Today’s topic, this is the meat of the show, Offers Academy for Houses. It’s not just for land. Here’s how it works. Step one is you make sure that you have the tools in place to buy undervalued assets. It could be land, could be houses, could be cars, could be a lot of stuff. Tools in place. What are the tools? The two major tools are this. Access to a database not a mailing list, number one. The second tool you need is an extremely efficient and inexpensive, economical, bulk mail printer. Never want to lick a stamp.
Now, you got the access to those tools. Step two, find a buyer. You never want to send a mailer out for anything unless you really know how you’re going to sell it. What your exit strategy is, let’s say, on the asset. For houses, find a buyer. Is that step two, Jill?
Jill DeWit: Yes, it is.
Jack Butala: Okay. I asked you a question right when you’re taking a drink of coffee.
Jill DeWit: I know. Exactly.
Jack Butala: I’m sorry.
Jill DeWit: No, it’s funny. I’m like the assistant over here. Yes, sir. You’re on step two.
Jack Butala: Oh, my gosh.
Jill DeWit: No, it’s just kind of funny.
Jack Butala: You were never my assistant.
Jill DeWit: I’m just teasing. It’s funny. What step am I on?
Jack’s Assistan: Two.
Jill DeWit: Thanks.
Jack Butala: That’s strangely attractive to me for some reason. Thinking of you as an assistant just for a second.
Jill DeWit: Oh, no. I am … No, I do not have my hair in a bun, and I’m not going to start doing that.
Jack Butala: [Could get 00:07:44] some little glasses.
Jill DeWit: I do have some little glasses, but I don’t wear them very often.
Jack Butala: Maybe a plaid skirt.
Jill DeWit: I have some good plaids, but I don’t wear them.
Jack’s Assistan: Here we go. This is where it all goes sideways. Okay, thank you.
Jack Butala: Step two is I lost my train of thought. What is … Find a buyer.
Jack’s Assistan: Uh huh.
Jill DeWit: Good thing your assistant’s taking notes.
Jack Butala: Oh, my gosh. This is really … You got to stop this right now.
Jill DeWit: Okay.
Jack Butala: Step two is find a buyer. In a case of homes, this is how Jill and I do it, are houses, single family residences. We have, now a friend, but a long time home flipper in the area in Arizona, and he tells us exactly what he wants and where he wants it. He says, “In the 8525X area code, I would love to have three of these houses that are about a certain square footage, a certain age, and for this amount per square foot. I can absolutely easily pay this amount per square foot … Pay you guys.” We send him [mailer 00:08:42] out. Why he does not do this himself, I will never understand, but we covered that in yesterday’s show a little bit.
Step two is find a buyer and find out what he wants. Find out what … I guess that’s step three. Find a buyer and find out what’s going to make that guy’s day where he’s going to … There’s a bunch of things that need to happen with this buyer for you to qualify them, and this is not just for houses. This is for cars and boats and land and everything. Make sure they have a ton of money or access to a ton of money. In this case, this guy has a single person that he works with who is a hard money lender, and he has virtually unlimited capital, because they have so much history.
Jill DeWit: Is that part of three or four, because I have one as a tools, two as the buyer, three clarify the asset criteria?
Jack Butala: Good. Yeah, that’s part of it. The asset criteria … Step three is all of that. Clarify the asset criteria and qualify the buyer. Let’s make step two qualify. Find a qualified buyer.
Jill DeWit: Okay. Got it.
Jack Butala: Step three is asset clarification. Excellent.
Jill DeWit: Now, we’re on four.
Jack Butala: Step four is make the offer. It’s get the data. Now you have access to the tools. Scrub down the data like we teach. This is imperative that you do this properly, because if you do it wrong, you won’t get a response to the mailer, and you can waste a bunch of time and money.
Jill DeWit: Right.
Jack Butala: Scrub the data and get the thing in the mail using a bulk mail printer.
Jill DeWit: Got it. Make and send offer is what I wrote down.
Jack Butala: Yep. Send offer. That’s four steps, right?
Jill DeWit: Yep.
Jack Butala: Now, you’re going to get a bunch of responses. You’re going to put the deal together. You’re the conductor of the transaction. You are not the worker. You don’t go look at the houses ever. You have a buyer that that’s what they love to do. You call the buyer or email them or however you orchestrate it to say, “Look, I have … At 123 Main St. I have this house. They responded. They signed the offer. They want to do the deal. Okay? When can you go look at it? Please, actually try to go look at it today. I can happy to set the appointment. I can put you guys together.” Then, you get the thumbs up or thumbs down from the buyer. Who’s your buddy? He says, “Heck yes, I want to do this deal,” or, No way.”
You have a couple choices there. Jill and I walk away. We probably shouldn’t.
Jill DeWit: Like what?
Jack Butala: You have a couple choices. If you get the thumbs down from your buyer, you have a couple choices. You can walk away, which is probably what we do and we probably shouldn’t, or you can then go out and try to find another person to buy it. Typically, in this case …
Jill DeWit: Throw the deal out to the universe. It’s not crazy.
Jack Butala: Our buddy Dennis is his name, has these hard money guys. He primarily uses one, and if he doesn’t want to do the deal, he’ll send it to his hard money guys, and they’ll find … Because hard money guys have 25, 30, 40, 50 people that they loan money to. He usually finds a deal for them, if he doesn’t want to do it, but the chances … I mean probably 90% of the properties that we send to him, he does. He does … He just … We have a working relationship, and they’re so darn cheap.
Jill DeWit: You just buy it right. That’s the bottom line. It’s hard to walk away …
Jack Butala: It’s so cheap.
Jill DeWit: … When you buy them right like that.
Jack Butala: Yeah. A couple of times you just-
Jill DeWit: You can make anything work almost.
Jack Butala: A couple of times he just painted the damn thing. Painted the-
Jill DeWit: Paint carpet.
Jack Butala: He cle- Yeah. Paint and carpet and cleaned it up and made it smell again.
Jill DeWit: Exactly.
Jack Butala: Change the light bulbs.
Jill DeWit: Exactly. They don’t need much sometimes. You’re right.
Jack Butala: With that four or five step process … I guess five is close the deal.
Jill DeWit: Five, I have the conduct the transaction.
Jack Butala: Okay, great. Okay, good. That’ll work.
Jill DeWit: There you go.
Jack Butala: That’s a five step process.
Jill DeWit: Correct. Ding. You are right.
Jack Butala: Thank you.
Jill DeWit: You get an A.
Jack Butala: Thank you bun-wearing, not little glasses assistant.
Jill DeWit: That’s right. I’m not … I’m the teacher’s assistant.
Jack Butala: Do you have a clip board?
Jill DeWit: I’m the teacher’s aide. I’m the TA.
Jack Butala: You know TA stands for something else?
Jill DeWit: I do know that. I thought that would go into it. I worked that in there very nicely. It’s good.
Jack Butala: Oh, my God, Jill. This would be no fun without you. You know that?
Jill DeWit: Thank you. There you go.
Jack Butala: I really mean that.
Jill DeWit: Could you imagine you sit here with like our-
Jack Butala: No.
Jill DeWit: We should do … It’d be hilarious.
Jack Butala: I don’t know how these guys have these shows by themselves.
Jill DeWit: Right. Oh, my God. I got to tell you I watch these people on Facebook, and it’s painful for … This is painful. I can’t do it. I cannot watch some of these guys. There was a guy today that did like a four hour webinar. I’m not kidding. I got the email like, “Here’s the replay, if you want to watch it. It’s four hours.” I’m like what went on for four hours?
Jack Butala: What? We’re not two years into this now, and I thought I was nuts, before I … I thought I was just loco.
Jill DeWit: Yeah, where you going with this?
Jack Butala: Like ADD. I don’t have any time for … I can’t … I do things too quickly. I don’t communicate right. No, it turns out that this personality … The personality of our membership group is the same crazy as me.
Jill DeWit: Okay.
Jack Butala: They don’t want to read anything.
Jill DeWit: I was wondering. I’m like where are you going with this?
Jack Butala: They don’t want anything to take any amount of time. They just want to-
Jill DeWit: True. Throw some … Put the right money on the right … It’s put the … It’s not throw some money at it. It’s put the right money into the right things. Then, spit out a quality transaction.
Jack Butala: They want to constantly double your money.
Jill DeWit: Right. Oh, my God. That’s …
Jack Butala: You wake up and jump out of the bed, because it’s so much fun.
Jill DeWit: Then, you have this high.
Jack Butala: Yeah.
Jill DeWit: It’s like a nonstop acquisition high.
Jack Butala: Right.
Jill DeWit: Is what it is. Yep.
Jack Butala: I’m not crazy after all.
Jill DeWit: You are not. Who said you’re crazy?
Jack Butala: I did. I self-described.
Jill DeWit: Oh, okay. Self-diagnosed.
Jack Butala: Exactly. We should have a show like that and diagnose each other.
Jill DeWit: Oh, no. I don’t want to know what you’d say about me.
Jack Butala: We have some friends, Jill and I, and they said this sentence to me one time. This was a lot of years ago, when their kids were little. “Let’s diagnose our kids,” because they’re in that profession. I said, “What? Why would you look for problems in your children?” Let’s not diagnose anything.
Jill DeWit: Especially not ourselves.
Jack Butala: No.
Jill DeWit: Yeah, I don’t know we should do that show. That would not go … That would get … Nobody would listen.
Jack Butala: I get what a diagnosis is. If you have a serious illness, you need to be diagnosed and treated properly, but searching for problems is not a diagnosis.
Jill DeWit: Exactly.
Jack Butala: What the heck are we talking about?
Jill DeWit: I don’t know. Do you want me to recap the five things?
Jack Butala: Yeah, that’d be great.
Jill DeWit: Okay. Here’s how Offers Academy for Homes works. Number one, tools, which is data and mailer.
Jack Butala: Get the tools.
Jill DeWit: Number two, find the buyer and qualify the buyer. That is a good point. Let’s just make sure, because your buddy that you drink with after work at five o’clock in the bar that says, “Hey, I’m in. I can come up with some money.”
Jack Butala: No, no, no.
Jill DeWit: That’s not the buyer.
Jack Butala: Thank you, Jill.
Jill DeWit: It’s not your brother-in-law.
Jack Butala: Thank you.
Jill DeWit: It’s not your father-in-law.
Jack Butala: That’s so important.
Jill DeWit: It’s not any of those people.
Jack Butala: That’s right.
Jill DeWit: It’s a real, legitimate buyer that you have found.
Jack Butala: There’s some pretty cool ways for houses, specifically, you can find buyers. The biggest way that we’ve expanded it … The best way is through Craigslist. You can see, or even … I’m getting crazy on you if I’m going to say this You can see which houses are renovated.
Jill DeWit: Yeah. You know around town who they are, if you just pay attention.
Jack Butala: If you look in the [inaudible 00:16:09], there’s a totally remodeled house for sale. Then, if you look it up on the data set that we have in RealQuest, the ones that we provide at Offers Academy, you can look the person up, and you can find out … Let’s say it’s Jack Johnson. If it’s not in the LLC, it’s going to be Jack Johnson. You can find him pretty easy. If it is in an LLC, send him a letter. That’s what it’s for.
Jill DeWit: Okay. Tools, the buyer-
Jack Butala: Or if you want to find out famous people who owns stuff … Jill does this all the time.
Jill DeWit: Actually, I don’t. My staff does it. We were talking about so and so. They’re like … I’m like, “I wonder where so and so lives.” My staff goes, “You know you can look that up.” I said, “Oh, yeah. You’re right.”
Jack Butala: If you have our tools, you can look up … This is the way that the person who trained us on it … This is the most recent tool we have not on RealQuest, because we are the trainers on RealQuest. She said, “Look up,” … You could tell how old she was. She said, “Look up,” … Who was it?
Jill DeWit: Goldie.
Jack Butala: “Goldie Hawn, and find out what she and Kurt Russell own. Do a national search,” and we did.
Jill DeWit: That’s hilarious.
Jack Butala: It’s like wow. We didn’t stop there. All our people like our teen idols, when we were kids. All the people in the rock bands, we find out where they all live.
Jill DeWit: That’s hilarious. What they own.
Jack Butala: Jill gets all giddy.
Jill DeWit: It’s so funny. This is why we have ours in LLCs. [inaudible 00:17:28] has our name on it. It’s all good. Okay. The tools. The buyer. Clarify the asset criteria.
Jack Butala: Number three.
Jill DeWit: Number three. Number four, send out the offers.
Jack Butala: Properly.
Jill DeWit: Number five, conduct the transaction.
Jack Butala: Yeah.
Jill DeWit: Cool.
Jack Butala: There’s right and wrong ways to do all of those things. We leave no stone unturned in all of this. We’ve made all the mistakes. We talk about the right way not the wrong way. We are packed full of people joining our groups who report back to us and say, “Oh, that’s the right way, because I’ve been doing it wrong, because somebody else told me how to do it two years ago, and I was wondering why it didn’t work.” Here’s a hint. Never send out postcards ever. It might work, and it might not. If you do it our way, it’s going to work. It’s like never walk into a casino and win the first hand of whatever you’re playing, because then you just have false hope for the rest of ever.
If you have a question or you want to be on the show, reach out to either one of us on landacademy.com.
Jill DeWit: Join us in another episode, where Jack and I discuss how to use information that’s him. Inspiration, that’s me to get just about anything you want.
Jack Butala: We use it every day to buy property for half of what it’s worth and sell it off immediately.
Jill DeWit: You are not alone in your anything ambition.
Jack Butala: I’ll learn how to read a script eventually.
Jill DeWit: That’s okay. Getting used to it. It’s all good.
Jack Butala: Good save, by the way.
Jill DeWit: Thank you. You’re welcome.
Jack Butala: She had this memorized.
Jill DeWit: Thank you. I … Yeah.
Jack Butala: I should have this memorized.
Jill DeWit: I know you do.
Jack Butala: You know what it is?
Jill DeWit: You just get side-
Jack Butala: First of all, it’s this plaid skirt thing.
Jill DeWit: You’re excited.
Jack Butala: I can’t think straight, now. Second of all, I’m so darn excited about expanding Land Academy. It’s not just for land.
Jill DeWit: Exactly. It’s not just for breakfast anymore.
Jack Butala: [crosstalk 00:19:20] I know. I was thinking about that. It’s not your father’s [inaudible 00:19:23].
Jill DeWit: Was that a campaign? Oh, I don’t remember that one.
Jack Butala: Yeah. Very successful.
Jill DeWit: That’s fun- you’re older than me. That’s why. [inaudible 00:19:30]
Jack Butala: Yeah, I am.
Jill DeWit: You are older than me.
Jack Butala: Information and inspiration to buy undervalued assets.
If you have any questions or comments, please feel free to email me directly at jack@LandAcademy.com.
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.