Flip per Month with Offers2Owners (CFFL 366)
Flip per Month with Offers2Owners
Jack Butala: Flip per Month with Offers2Owners. 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: Happy 2017.
Jack Butala: Oh my gosh, it is. It’s the first day.
Jill DeWit: It is.
Jack Butala: First work day I guess.
Jill DeWit: First work day.
Jack Butala: Man, that’s great. I’m all wrapped up in the topic today and I didn’t even think of that. Welcome to the show today. In this episode, Jill and I talk about a flip for month with OffersToOwners.com. It’s a website we’re just about to launch and you get the first glimpse.
Before we get into it, Jill, let’s take a question posted by one of our members. As always on the LandAcademy.com online community, it’s free.
Jill DeWit: Cool. Okay. Kathleen asked: “If an offer price is renegotiated with the seller, should you send out a revised purchase agreement reflecting the newly agreed upon price with the new deed to the mobile notary for signing, or no?”
Jack Butala: I’ll give the background or set this up for you and then you can answer but I’m pretty sure we have the same answer. We’ll see. What happens is, we all, in our group, send out a bunch of offers and some of them come back signed.
A lot of times people call back and say, “Hey, you know, I got your offer and I really do want to sell it but your price doesn’t work. I would love to get X for the property,” a different price, usually a little higher. Sometimes it works, sometimes it doesn’t but you go do a little bit of back and forth on the phone and everybody agrees.
Do you need to revise? We sent them, our group sends out, or we send out, offers to sign anyway. Do we need to send a revised one or do we initial a new one? What do you think, Jill?
Jill DeWit: I don’t think it matters at this point.
Jack Butala: Exactly.
Jill DeWit: I don’t, no.
Jack Butala: It depends on the person, you know?
Jill DeWit: Yeah. True.
Jack Butala: In general, I almost never send a new purchase agreement or a revised purchase agreement. I might, if I think the seller’s not real too interested or they don’t sound motivated, I might have them do something, let’s say initial the original offer that they have sitting there and change the price, cross it out, initial it and date it and fax it in, if they’re older, or scan it and email it in if they’re-
Jill DeWit: Right. It’s a little bit of a call to action.
Jack Butala: Yeah. Just-
Jill DeWit: A little bit more of a buy-in kind of a thing.
Jack Butala: Yeah.
Jill DeWit: That’s it.
Jack Butala: Let’s see if you’re serious, money where your mouth is kind of thing.
Jill DeWit: Mm-hmm (affirmative). Usually, it’s like a handshake. Usually, it’s like, “Okay, Mr. Smith. Okay, we all agreed on X. Yep. All right.” Then, we’re setting up the notary and then we don’t even talk about it anymore.
Jack Butala: Yeah. Exactly.
Jill DeWit: That’s usually how it goes.
Jack Butala: Exactly. I don’t recall ever sending a notary out to get an original signature on a purchase agreement for these types of assets.
Jill DeWit: You know what? That is a nice little point too. Yeah. If for any reason, like you said, Jack, that we’re going to do a revised one, it’s just like you said. I’m just going to have the guy print it out at his home and initial it and send it back, or send me some image of it back. It could even be a photocopy from his cellphone.
Jack Butala: Yeah. Okay. That’s good too.
Jill DeWit: Even just that.
Jack Butala: Right.
Jill DeWit: A lot of people will do that for me, so that’s it.
Jack Butala: Hey, if you have a question or you want to be on the show, reach out to either one of us on LandAcademy.com. Today’s topic: Flip a single flip per month with Offers to Owners. It’s a new product that we’re releasing. Before we get into this though, the meat of this show here, what time is it, Jill? Can you describe on Monday morning, exactly what’s going on here?
Jill DeWit: Okay. Here’s what’s funny too, yes-
Jack Butala: And what you’re doing to me.
Jill DeWit: Awe. Last time I checked, this is your way you love to do it anyway.
Jack Butala: It is.
Jill DeWit: Because this is normal for you.
Jack Butala: It is.
Jill DeWit: We’re usually recording when the sun’s up-
Jack Butala: I’m getting a kick out of this because you’re dragging a little bit.
Jill DeWit: Thank you. Today we’re not recording with the sun up. Today we’re recording before the sun comes up because, later on when the sun is up, is the Rose Parade. One of my annual traditions is watching the Rose Parade, drinking mimosas, having a great breakfast, on New Year’s Day.
Of course, with the Rose Parade, if anybody here other than me is silly and follows this, it’s never on a Sunday. Our football people know it because they’re not watching … They’re watching the Penn State/USC game today, which is also today. It wasn’t on the first.
Anyway, it follows the Rose Parade tradition. I love the Rose Parade and it was funny because I was out last night with my girlfriend and explaining this whole thing. She’s like, “You should just have mimosas in your hand on your show anyway,” and I’m like, “You know, you’re right.” It’s funny.
As a side note, she loved it so much, when we did our little live thing, Jack, where we had our live in the studio where people were watching us record this. We should probably … She was going, “Are you going to be in the studio? Can you do it live and I’ll watch you guys with your mimosas?” I’m like, “Awe. That’s very sweet.”
Jack Butala: It’s a good thing we’re not video live right now.
Jill DeWit: Right now.
Jack Butala: For a bunch of reasons.
Jill DeWit: Right. Good point. I think we should bring that back again and do that once in a while because that was fun. Yes. Back to what you’re saying, the sun is not up yet. It’s a little after 6:00 our time and we’re recording for today, so I can do this. Thank you, jack.
Jack Butala: No problem. We all have our priorities. Incidentally, our whole family was here over the holidays, they’re all gone now, but here’s the conversation, the brief conversation I had with number two, our number two kid: He said, “Yeah. I really don’t like sports. I never have.” I said, “Yeah. Neither have I.” “Then why do we have to watch and talk about it?” I said, “Because of your mother and she makes it cool because she’s a girl.”
Jill DeWit: Thanks.
Jack Butala: But if she was a guy, it’d be like, “Yeah. None of … It’s not cool you just sit around and watch sports,” but for some reason, if you’re a cool woman like you are-
Jill DeWit: Thank you.
Jack Butala: -it’s just cool-
Jill DeWit: Thank you.
Jack Butala: – and more interesting for some reason.
Jill DeWit: Thank you. I appreciate that.
Jack Butala: I have no idea even what sports season it is right now.
Jill DeWit: It’s all good.
Jack Butala: Today’s topic: A flip per month with OffersToOwners.com. As always, all the products that we … Here’s the nature of Offers to Owners, but, as always, all the products we release are at request of our existing customers or new customers that are coming in and they’re saying, “Man, I love your stuff,” or “I sort of like your stuff but if you did this, this and this, it would be fantastic.”
The result of that is OffersToOwners.com and I concocted it. Jill and I concocted it a couple of months ago and we’re just about ready to release it. It’s very, very, very simple. It’s the basic tools you need to get offers to owners and you need two basic sets of professional grade tools to accomplish this.
You need the access to the database, the RealQuest Pro database that we have and we all use and love and access to the pre-negotiated deal that we have with LetterStream.com, so that you can get the offer in front of the person from start to finish, all cost included, for less than the price of a stamp.
That includes, if you listen to the show at all, there’s a right way and a wrong way to do it. The absolute wrong way to do it is licking a stamp and putting it on the envelope or going with one of the most, if not the most, professional, most learned and professional bulk mail company in the industry.
If you walk through these guy’s shops, it’s amazing. It’s very quiet. They have a machine, a manufacturer’s rep machine guy on staff eight hours a day in case something goes wrong. It’s just amazing that they’re all IT guys. They’re not really printers, they’re IT guys and then some … They do the printing for Ricoh and some pretty high-end companies.
Anyway, we were lucky enough to have a personal relationship introduced to us. It’s cheaper than the price of a stamp and it goes out, usually, within 24 hours. You don’t have to do a mail merge anymore. They do all the work for you. For details, go to OffersToOwners.com. We have not launched the product yet but we will very, very, very soon. It’s ready to go. We just need to clean it up and polish it a little bit, make it presentable.
What can you accomplish with this that you can’t with Land Academy? Well, nothing, because it’s include and will be pre-released to all of our Land Academy members, existing members. It replaces the printer that we have and the data’s the same. It’s all the same data that we use anyway.
This product specifically, is for people who are interested and have a bunch of experience in real estate and just don’t really need any help, or have flipped a bunch of houses, flipped a lot of land. They’ve used data and they understand printing and bulk mail, they just don’t need to be a part of the big system. They just need to have access to the professional grade tools on an ongoing basis, like our members do, and get some offers to, usually to homeowners to purchase houses.
It’s geared toward homeowners but it’s the same data. It’s all real estate datas for all different real estate types. Can you flip a deal per month, sending 1,500 offers out? I think so. In fact, that’s the new education program we’re going to release some time in the first quarter here, all about how Jill and I flip houses and wholesale houses.
Here’s the whole key: The whole key is, find a buyer first. Find an experienced flipper that loves to clean stuff up and put it out on the MLS when they’re done and make a ton of money. Your job is to find those people and then use Offers to Owners to get offers to the owners of these properties and get them in front of the flippers. Mark them up 10,000 bucks like Jill and I do or whatever works for you.
Real excited about the product. We have a ton of people that are ready to sign up for it and it’s a real … I’m real excited about it. This is the product that I would buy, personally, if I were introduced to it.
Jill DeWit: I really am glad we’re doing this show today because A, this is a fantastic and not crazy goal for 2017. I’m putting things, this weekend, in perspective for … Because there’s a lot of people right now, this is that time of year we’re all like, “All right. We’re rolling up our sleeves and we’re going to do some stuff different.”
This goal, a flip per month with Offers to Owners, is really an obtainable, not crazy goal for 2017. I’m glad that you’re explaining this too, Jack, because I think for some people who are looking at Land Academy and looking at Offers to Owners, they need to know the difference.
Land Academy is all about every last detail for someone who’s either new to this business or has done just a few little transactions, maybe they inherited a property, maybe they’ve been watching from the sidelines, somebody do some stuff, they think they have the answers but there’s a lot of details. That’s really Land Academy and this is going to be something that’s available/included for those members and they get the advanced release too, which I love.
Jack Butala: Yeah. If you’re saying something like this to yourself, “Yeah, yeah, yeah, Jack and Jill. I get it. You send a bunch of offers out. Some people sign them, they send them back and you close the deal. I get it. I’ve been doing houses or flipping houses for a long time. I’ve been sourcing properties through the MLS. I had a good or bad experience sending some stuff in the mail. I’m probably pretty confident I didn’t do it properly in the past and I just haven’t really done it consistently. Probably because I haven’t had the access to the grade A tools or a printer that made it real easy or it just took too long,” this takes all of that garbage out.
If you’ve flipped a few deals or if you’re a full-time investor for homes, apartments, or land, this is a great product for you. You’re going to enhance how much deal flow, dramatically enhance how much deal flow you have coming in. If you’re that far into it, you’ve already figured out a lot of this stuff, right?
Jill DeWit: Right.
Jack Butala: That’s really what this is.
Jill DeWit: Exactly.
Jack Butala: Maybe you haven’t figured out the mailing piece, the offers piece to .. Or, you’re just using the MLS to source deals, or brokers, or whatever, this is a great addition for not a lot of money.
Jill DeWit: Right.
Jack Butala: To really, positively increase your deal flow.
Jill DeWit: It’s funny. It makes me think of that time that you and I went to that meeting at that country … I don’t know if it was at a country club but it was a bunch of investors-
Jack Butala: It was a country club and that’s okay.
Jill DeWit: Okay. I didn’t know that. It was a bunch of investors and it was a power meeting kind of thing. You and I sat in the back and somebody asked him a question about finding deals. Do you remember that?
Jack Butala: Yeah. Oh, yeah. I love going to these things.
Jill DeWit: One guys, because he does these big huge … It’s all apartment buildings.
Jack Butala: That’s investment grade apartment deals.
Jill DeWit: Exactly. It was so funny because someone was asking about how they find their deals and the direct mail came up and he said, “Yeah. Well, we don’t really do that.” How did he say it? They had one good deal that came of that, so it was worth it because it was millions that they saved.
Jack Butala: No. This is what he said.
Jill DeWit: Yeah.
Jack Butala: He said, “Yeah. We usually use brokers and property managers.” He was in love with property managers, which is fine. You still have to proactively go out there and see what happens.
Jill DeWit: Right.
Jack Butala: Which, if you listen to the show at all, we’re all anti go out there and do stuff. Let it come to you but he did say this, he said, “You know, for a year, we sent out a bunch of postcards to apartment building owners,” investment grade apartment buildings but mom and pop people. He said, “Nothing really came up of it, except this one deal and granted, we bought the deal. It was a 13 cab and we made about $14-million but, you know, it’s not consistent.”
Jill DeWit: Exactly.
Jack Butala: Jill and I just started laughing in the back because it’s not consistent A, because he was doing it all wrong, he was sending postcards and B, it can be consistent if you just back into the numbers and say, “Oh. We’ll, we snagged one. How about we double our printing?” I don’t think they spent $7-million on printing.
Jill DeWit: Exactly. What I thought was so funny is that-
Jack Butala: It’s just funny.
Jill DeWit: It was profitable enough and he believed in it enough that he never turned it off but he just didn’t … He wasn’t focused there and he was missing that-
Jack Butala: Yeah and that’s okay.
Jill DeWit: -whole-
Jack Butala: A lot of people in the business there, especially older people.
Jill DeWit: Doesn’t know.
Jack Butala: I mean people over 50, that are in this business, are really used to taking calls from brokers. They’re not used to the mail piece. This product, that might not be for them. This product is for people that, they don’t cringe at the word data. They don’t cringe at the thought of-
Jill DeWit: Like the guy yesterday.
Jack Butala: -at the thought of an Excel spreadsheet. They don’t cringe. They’re like, “Whoa. Well, I know a little bit about that anyway-”
Jill DeWit: Exactly.
Jack Butala: “Maybe I can add something here.”
Jill DeWit: That’s so good. I just thought of something. The best four letter word: data. I was thinking data is not just a four letter word. We’ve got to think … We could do something funny with that because you’re right. That’s really true. When you say data, people either perk up or they go, “Uh oh.” Then, you can tell right there-
Jack Butala: That’s a really good point because that’s how I answer the question now, “What do you guys do for a living?” “Oh, we run a real estate data company.” They either walk away or they say, “What? That’s cool.”
Jill DeWit: Yeah. They-
Jack Butala: What do you think the percentages are?
Jill DeWit: I think it’s more than 50% stop right there and look at you cross-eyed because they’re trying to form the next question and they can’t. Then, I say less than 50%, maybe 30%, maybe close to 20, will go, “Uh … ” Depending on the crowd that we’re talking to also but someone will go, “All right. What is that?” They’ll ask some good follow-ups and questions.
Jack Butala: Yeah. They want more.
Jill DeWit: You can see the wheels start spinning. It’s very interesting.
Jack Butala: Yeah. I said it one time to a mutual friend that Jill and I have back in Arizona and she said, “It’s all about data.” I said, “Well, she said, ‘what are you guys doing?'” I said, “You know, we started this data … ” This was years ago. She said, “Everything’s about data.”
Jill DeWit: Yes it is.
Jack Butala: If you have access to the data and you know how to use it, it’s like fish in a barrel. That’s what this is.
Jill DeWit: Sure.
Jack Butala: I’m not saying it’s … You can’t go in blind without any education but if you have a little experience with it, this product’s awesome.
Jill DeWit: Then, up your numbers.
Jack Butala: Yep.
Jill DeWit: That’s it.
Jack Butala: 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: 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, like me, in doing this show at 6:00 AM.
Jill DeWit: It’s not that bad, is it?
Jack Butala: No. I like it.
Jill DeWit: This is-
Jack Butala: It’s funny for me to-
Jill DeWit: Isn’t this really your first choice? I think if you had a-
Jack Butala: Yeah. It’s funny for me to watch you kind of … It’s funny.
Jill DeWit: Show up with my coffee and my …
Jack Butala: You’re handling it very well, I must say.
Jill DeWit: Thank you. Thank you very much.
Jack Butala: All right. What’s the deal with the Rose Bowl Parade? They couldn’t have it with the football game because there’s a, I couldn’t tell you, horses up or something? That’s a pretty interesting story.
Jill DeWit: Oh. Basically, it’s all about the parade and the parade, years ago, the story goes something like: Never on a Sunday because they didn’t want the traffic, the parade traffic down Colorado Avenue, messing with the horses tied up for church. That’s supposedly the story behind the never on a Sunday, from years and years and years ago.
Yeah. Now, on Colorado Avenue, there’s not horses tied up for church but they still will not do the parade on a Sunday for that. They Move everything, so not only is the parade today, but the football game’s today. It’s not on the first.
Jack Butala: Oh. The football too?
Jill DeWit: Mm-hmm (affirmative).
Jack Butala: They moved the whole thing because of the parade.
Jill DeWit: Everything, because of the-
Jack Butala: Wow.
Jill DeWit: Because of that thing, so it all happens now. Today, it’s on the second because they won’t do it on Sunday.
Jack Butala: Amazing.
Jill DeWit: I know. [crosstalk 00:17:33] It’s really cold though, everybody around here, we’re in LA right now, everybody gets an extra day off work, the holiday’s observed on the second, today.
Jack Butala: Yeah. What do the kids call it? It was an unobserved holiday. Now it needs to be observed-
Jill DeWit: Yeah.
Jack Butala: -so, they don’t have to go to school
Jill DeWit: Do you know what’s funny? I think-
Jack Butala: That’s hilarious.
Jill DeWit: I can’t-
Jack Butala: I’m working right now.
Jill DeWit: I think … Even other states. I don’t know why the other state are observing it today but, I guess because everybody gets a work day off or a holiday, I always thought that was funny, but-
Jack Butala: One of the most … Well, Bill Gates has a bunch of famous sayings. I love Bill Gates. He said, “There’s no reason to take a day off in your 20s.”
Jill DeWit: Oh.
Jack Butala: I really believe that. I mean, ever.
Jill DeWit: That’s funny. Yeah, because you should be thinking ahead no matter what, even if you’re not showing up to the office. I’m sure he meant, just don’t take-
Jack Butala: It’s hard to explain that to people in their 20s because they think they’re going to live forever. They don’t think they’re going to roll out of bed when they’re 50 and their back hurts. They just think it’s like, “What are you talking about?”
Jill DeWit: What are you talking about?
Jack Butala: “I only need two hours of sleep, if I sleep at all.”
Jill DeWit: Exactly. That’s a good point.
Jack Butala: “Eating? What? I do that once a week.” Information and inspiration to buy undervalued property.
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