$100 an Acre Only Works in Certain Counties (CFFL 382)

$100 an Acre Only Works in Certain Counties

Jack Butala: $100 an Acre Only Works in Certain Counties. 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:                               Hello.

Jack Butala:                            Welcome to our show today, in this episode, Jill and I talk about $100 an acre. Where it works, and where it doesn’t work. It gets thrown around a lot in our whole environment.

Jill DeWit:                               Too much sometimes.

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

Jill DeWit:                               Okay, so Nat asked, where and how do you disclose no access? Do you say for example, land locked, or no easement, or no access what specifically?

Jack Butala:                            This is a great question too. Just like yesterday’s.

Jill DeWit:                               First of all, I probably wouldn’t be buying some of them if they’re really are in that situation. I got to go back to that.

Jack Butala:                            This brings up a fantastic question right, we have the four A’s. That’s how we decide whether to buy property. When a signed offer comes back, we run it through, basically run it through the four A test. Access, which were going to talk about in a second, acreage, more is usually better, attribute, like it’s on a water front or a mountain view, and-

Jill DeWit:                               Affordability.

Jack Butala:                            Affordability, cheaper is better. This is access, so, access comes up every single day in this business, and it will for the rest of your career. There’s physical access and legal access, and then there’s no freaking access. Helicopter access.

Jill DeWit:                               That’s hilarious.

Jack Butala:                            We don’t even buy those properties anymore. I see some of our members on LandPin, there posting their property and it’s got helicopter access, is what I call. They do okay.

Jill DeWit:                               Beautiful cliff side property.

Jack Butala:                            Look, I’ll tell you, that’s a whole specialization in and of itself. The historical, all you’ve ever heard from seasoned real estate people on bigger pockets or anywhere else, yeah, you’re buying that property so cheap because it doesn’t have any access then. The fact is this, there are a tremendous amount of people out there who want property with no access.

Jill DeWit:                               True.

Jack Butala:                            What they don’t want, what no one wants, is to be lied to.

Jill DeWit:                               Exactly.

Jack Butala:                            If you know it has no access, then say, here’s the maps, here’s all the stuff and the description. I never checked on access at all, looks to me like there’s none, but before you buy this property, really take a good look at access. We never looked into it, we’re in the business of buying and selling property. Everything I know is on this posting.

Jill DeWit:                               Right.

Jack Butala:                            It’s a decision on what you want to specialize in, there’s a time a long time ago early in my career, where I bought property like that all the time. I said, I don’t know if it has access here’s all the maps, you decide.

Jill DeWit:                               Right. Which is being honest.

Jack Butala:                            Which is one of the ways that we became wholesalers, it was just easier to do that with people who are in the industry, and then they can decide for themselves. That’s what LandPin really is.

Jill DeWit:                               Right.

Jack Butala:                            LandPin.Com is where we sell, where our members sell their property.

Jill DeWit:                               Mm-hmm (affirmative).

Jack Butala:                            For free.

Jill DeWit:                               Exactly.

Jack Butala:                            Do we call it landlocked? I never use that word, in fact I won’t say it again.

Jill DeWit:                               Yeah, it’s like-

Jack Butala:                            Do we call it no easement.

Jill DeWit:                               No.

Jack Butala:                            No access or any of that stuff, uh uh.

Jill DeWit:                               Yeah, put that right in the title and let’s see how the response you get.

Jack Butala:                            I mean you can say stuff like, if you really are interested in never being found again, because there’s a lot of people that-

Jill DeWit:                               It’s true.

Jack Butala:                            A lot of end user buyers.

Jill DeWit:                               I’m eating my words here you’re right.

Jack Butala:                            That are interested in getting lost.

Jill DeWit:                               That’s very true. Well, think about the discussion you and I had the other day. You were just giving me this whole long discussion about, you know we could be making our own water, we could be doing, I mean all the things. Making our own fuel, with solar everything.

Jack Butala:                            This is my hobby right now.

Jill DeWit:                               Yes, you reminded me.

Jack Butala:                            I’ll sit here and talk about this for an hour.

Jill DeWit:                               Living off the grid and having fuel, and water, and power, and everything you possibly need is not crazy.

Jack Butala:                            Jill and I are kicking around the idea, this is a little bit off topic, but we will get back there. Kicking the idea around of getting the people, like solar panel manufacturers and these big companies, and get everybody together, and sponsor wise, building a house on a piece of property that we own, filming the whole thing. You can truly, now the way technology is, live off the grid.

Jill DeWit:                               Right.

Jack Butala:                            You need like four things, right, you need food, you can grow that, you need water, you can make that from just about anything, by distilling it.

Jill DeWit:                               People don’t know that.

Jack Butala:                            I know, you need fuel, there’s ethanol which you can make yourself in your basement.

Jill DeWit:                               People don’t know that.

Jack Butala:                            There’s shelter, I think. I mean, power, you can solar power, you can wind power, the whole thing. The way technology is, getting off the grid, even if you’re like in the urban area like we are in Los Angeles is really not hard, and not expensive.

Jill DeWit:                               You could be doing it in your garage too.

Jack Butala:                            What the heck is that?

Jill DeWit:                               I’m just kidding.

Jack Butala:                            Doing what?

Jill DeWit:                               Making these things. I’m not even sure.

Jack Butala:                            Is somebody doing it in our house?

Jill DeWit:                               I don’t know. I don’t know. Just saying what’s that over there? It’s nothing, just leave the tarp.

Jack Butala:                            What the heck? Leave the tarp. When is it ever a good idea to put your head under someone else’s tarp? Never.

Jill DeWit:                               That is true. Oh boy, my only question is, are we looking to blow up something here?

Jack Butala:                            No.

Jill DeWit:                               No, okay then go for it.

Jack Butala:                            By the way, Jill is the single most patient female on the planet.

Jill DeWit:                               Oh my gosh.

Jack Butala:                            If I pulled this stuff with my mom around, oh my gosh.

Jill DeWit:                               Oh my goodness.

Jack Butala:                            I think deep down you kind of like it a little bit.

Jill DeWit:                               You know what I like about it, it makes you happy and that’s really what I like.

Jack Butala:                            That’s the nicest thing you’ve said.

Jill DeWit:                               It is, it makes you happy and it’s actually funny when I’m over at my girlfriends, you say hey, I need these items, does anyone have these, and I’m like what is he doing? It’s the funniest thing.

Jack Butala:                            You know what, it’s not a prepper thing, I don’t care about any of that. It’s not that. It’s just I want to see if I can do it. I want to prove it.

Jill DeWit:                               Yeah.

Jack Butala:                            Maybe it’s why we’re in the land business.

Jill DeWit:                               We need to be documenting this.

Jack Butala:                            Ties us back to somewhere.

Jill DeWit:                               This is back to our new, by the way we’re going to see a lot more videos coming up, we’re working on making some changes and I think we should add this to that.

Jack Butala:                            Yeah.

Jill DeWit:                               Some of these projects you’re working on, if we did a little documentary on that, it would be pretty cool.

Jack Butala:                            If you go on you tube and you just type in, off the grid. You’re going to see some really interesting people, there’s one guy, he’s got a whole show on there. Moved out of Manhattan New York, he was fed up, and moved to. Bought a piece of 40 acre property in Nevada, and he’s recording everything. He’s on there all the time. This is how I do it, this is this.

Jill DeWit:                               Love it.

Jack Butala:                            He’s sick of the people and sick of the whole establishment so to speak which I think is great.

Jill DeWit:                               They were good. You know I was going to add to this, Hey Nat, right now in our newsletter, our weekly newsletter. We’re covering different things in postings so last weeks was just talking about titling and things to title and attributes, what to put in there.

Jack Butala:                            Yeah, how to post property on the internet. It’s a whole series I think.

Jill DeWit:                               It is, and we’ve covered the first part.

Jack Butala:                            Jill remember.

Jill DeWit:                               Which was writing a title that gets everybody’s attention, makes them want your property.

Jack Butala:                            Jill started this newsletter, and I’ll tell you probably five issues ago.

Jill DeWit:                               October, I started it.

Jack Butala:                            The amount of good feedback you’re getting from everybody is amazing.

Jill DeWit:                               It is.

Jack Butala:                            The way to get on the list, the easiest way is to get the Ebook.

Jill DeWit:                               Right.

Jack Butala:                            If you go to LandAcademy and just download the free Ebook, that puts you on Jill’s radar for that whole-

Jill DeWit:                               You get my weekly newsletter.

Jack Butala:                            It’s all, it doesn’t cost anything. It’s actually pretty cool. Then I was going to wrap it up by saying this Nat. There’s a bunch of members, it’s very easy to pick out who’s extremely successful and who’s just learning. If you go to LandPin and you’ll see Luke Smith, and several other real successful members, if they have a ton of property posted on LandPin, look a their postings. They’re doing it right, and I’ll tell you one of the things that I see people do that are successful in our group, is make these screen shot videos. Flying around Google earth, it’s real simple.

Jill DeWit:                               Right.

Jack Butala:                            That’ll, you can talk about access right in there. You can say, I’m not sure, but there’s a road over here, there’s a road over here, and there’s a trail right here, and it seems to me like you could get to the property, but legal access I don’t know, check it out.

Jill DeWit:                               Mm-hmm (affirmative). That’s why it’s priced this way.

Jack Butala:                            I mean, you’re increasing the percentages of selling that property pretty quickly. Exactly Jill, good point.

Jill DeWit:                               That’s what I tell people.

Jack Butala:                            If you have a customer who expects everything, good customer service, rock bottom prices, and a perfect drive up property, get rid of that customer. It just doesn’t happen.

Jill DeWit:                               No. This is why we’re here.

Jack Butala:                            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, $100 an acre only works in certain counties. Well how the heck did this come up?

Jill DeWit:                               This is one of my pet peeves. I’m really, this is slowly creeping it’s way up to driving for dollars with me.

Jack Butala:                            Let me start off by saying the sentence and if you only want to retain one sentence from this whole show, retain this one please. This concept that we have, about sending offers to owners for real estate works in every single county in this country. Every single one, every single Parrish, every single district, every single one, and every city, including for sake of argument Manhattan New York.

Well what’s the variable then? The variable is the offer price, and how you gauge it. I use $100 an acre as an example, because we have been buying property for $100 an acre for quite some time, all over the western United States.

Jill DeWit:                               Mm-hmm (affirmative).

Jack Butala:                            If you send a bunch of offers out, in Manhattan New York, for $100 an acre, you’re going to get some real angry people, and you’re not going to buy any property, forget about the angry people.

Jill DeWit:                               Mm-hmm (affirmative).

Jack Butala:                            The variable, is price per property, or price per square foot, when you buy houses, or price per acre. $100 an acre works in the middle of the dessert. It works great, it works fantastically well. We did 15,000 properties, whatever 13,000 properties like that. It doesn’t work when you’re buying houses and it doesn’t work when you’re buying farm land. It certainly doesn’t work with urban end fill lots.

Jill DeWit:                               Exactly.

Jack Butala:                            There’s a very select few people that think that, none of them are in our group. I get, they say well I sent a mailer out for $100 an acre, and Toledo Ohio and I didn’t get anything.

Jill DeWit:                               Yeah.

Jack Butala:                            I just wanted to drive that home.

Jill DeWit:                               Right, I see people getting hung up here, and I just want to make, that’s the whole point of this show is you got to price it up price it down based on, do we buy things less than $100 an acre, sometimes. Do I see our members doing that? Sometimes. I really do, but it’s all variable.

You want to do this right, because you don’t want to waste your time and you don’t want to waste your money. That’s the whole thing, you don’t want to, you can’t be this generic.

Jack Butala:                            It cost $.49 to send an offer. Do you really want to just send a bunch of offers somewhere where you’re pretty sure nobody’s going to sign them, just to see?

Jill DeWit:                               Mm-hmm (affirmative).

Jack Butala:                            This lead to the bigger question, all right smart guy, you’re speaking to me. All right smart guy, great $100 an acre doesn’t work in Toledo Ohio, well what does?

Jill DeWit:                               Right.

Jack Butala:                            Well, maybe you should become a member.

Jill DeWit:                               Exactly, and we’ll show you.

Jack Butala:                            I think we have about 38 spots left, and then we’re shutting it down.

Jill DeWit:                               Then I mean let’s be honest, we’re working on this, teaching more in depth. You already are, about certain areas in Toledo will be higher property value, and some are lower property value based on the APN scheme.

Jack Butala:                            That’s great exactly Jill, and we’re doing a show on this soon I think, about how to use the assessed value. Why it’s imperative to use the assessed value as a gauge. You never want to send offers out at the assessed value. You use it as a relative gauge to other things in the county. Keep listening, I mean in the shows next week.

Jill DeWit:                               Thursday.

Jack Butala:                            Is it Thursday?

Jill DeWit:                               It’s Thursday.

Jack Butala:                            Excellent, we’ll talk about that topic then but my point is, I use $100 an acre all through the programs in education and I want to be super clear that this works everywhere. $100 an acre doesn’t work everywhere.

Jill DeWit:                               You know, I’m trying to figure out why people get hung up on that, and I hope it’s not laziness.

Jack Butala:                            That’s what it is.

Jill DeWit:                               Okay.

Jack Butala:                            I’m just going to say. I was going to say apathy, but lazy is good.

Jill DeWit:                               All right, call a spade a spade. I’m just going to do $100 an acre, I’m not even going to think about it, I’m going to blindly send these out and just see what happens. Don’t do that. Spend 20 more minutes or even 2 hours on a Sunday afternoon. Whatever it takes get into it like Jack says, you have all the data right there, what?

Jack Butala:                            No, you’re right.

Jill DeWit:                               Oh.

Jack Butala:                            I was thinking, I’ll say it in a minute.

Jill DeWit:                               Okay.

Jack Butala:                            I’m making myself laugh.

Jill DeWit:                               Oh gosh, oh no. Spend a little more time, and look at some of the completed sales, there’s lots of things out there that will help you figure out pricing and offers.

Jack Butala:                            You really have to study this, this is not. Well, he said $100 an acre, I’m going to send it out. You need to spend hours researching this. People sign up for it now everyday.

Jill DeWit:                               Right.

Jack Butala:                            We have a system about a very sophisticated system about well where did that person come from. That’s what Jill and I, every time somebody signs up, where did … This is what we’re finding now, they looked into this, and touched us, or we’ve touched them somehow, like months ago.

Jill DeWit:                               Right.

Jack Butala:                            They really researched this.

Jill DeWit:                               Right, they’re used to research good point. Light bulb, you’re right that’s part of why our group is so good, because they’re used to research. By the time they got to us, and they’re in our group, they still have been watching and listening and researching and doing their homework, and checking us out, and checking our people out, checking.

Jack Butala:                            This is why we don’t have live events in a hotel somewhere.

Jill DeWit:                               Brilliant.

Jack Butala:                            We will have live events, but we don’t have sales events lets say.

Jill DeWit:                               No it’s not like that.

Jack Butala:                            We have information events.

Jill DeWit:                               Educational.

Jack Butala:                            We don’t want anyone. Please don’t make a flippant decision about this.

Jill DeWit:                               Right.

Jack Butala:                            It takes, you know if you’re the type of person that has to research everything six times and you’re really annoyed that people in your life with stuff that’s in the garage, and the tarps that you might have.

Jill DeWit:                               Then you’re perfect for us. Then you’re in the right place.

Jack Butala:                            You question the establishment, you’re sick of your job.

Jill DeWit:                               You’re fed up.

Jack Butala:                            You say statements like this. Oil is a conspiracy, or I’m not advocating that or not advocating that, but at least you’re thinking about it.

Jill DeWit:                               Exactly, there’s got to be a better way.

Jack Butala:                            There’s got to be a better way. Then you’ll fit in great here.

Jill DeWit:                               Yeah. Oh my gosh. Oh no, don’t go political, don’t go political.

Jack Butala:                            I would never.

Jill DeWit:                               Okay good.

Jack Butala:                            Do you, Jill you speak with a lot of people all the time. You can gauge right away.

Jill DeWit:                               Oh yeah.

Jack Butala:                            Can you gauge right away who’s going to do well?

Jill DeWit:                               I can.

Jack Butala:                            Tell us, I’d love to hear this.

Jill DeWit:                               Based by the questions they ask really, and just if they’ve done their homework. I haven’t got those calls in a long time, but I used to awhile back where I’d get calls from people right away that they’d just found us, and they’re like, please tell me what this is all about, and I’m like really, if I have explain to you the whole big picture because you haven’t spent a little more time you’re not my person. You might be but you’re just not ready right now, please go do some homework.

You and I have figured it out now, and there’s what, 3. You and I have, do I have time to do this?

Jack Butala:                            Yeah.

Jill DeWit:                               I actually shared this with a few people here recently too, and couple new members because they fit. They fit this mold and you and I figured out a couple things. Number one, the people that come to us have some real estate experience. They have some background, maybe they were in it themselves.

Jack Butala:                            They had a disastrous flip, that’s my favorite, disastrous house flip.

Jill DeWit:                               They lost their shirts, but they know there’s money to be made. That wasn’t it. The second thing is, there not afraid to data. You got to be able to get on the computer.

Jack Butala:                            Spreadsheets.

Jill DeWit:                               Spreadsheets, that’s something too. Number three, they have the funds to do this, I’ll be honest, mailers, cost money. Pulling the data, it’s not expensive but it does cost money. Posting your property, there’s lots involved, and you basically, acquisitions cost money. You’ve got to have some money to get the stuff in the mail and then when the offers come back you need to be able to pull the trigger, you don’t want to finance this. You want to pay cash, that’s the thing. Then the fourth which is kind of a bonus, that Jack and I have discovered, that is if you have had or do have your own business, that really helps too. You know scaling and you know a lot. You’ve figured stuff out.

Jack Butala:                            You know you have the basic concept that, you have to try until you succeed. If some stuff goes a little bit sideways, you don’t stop there. It just makes you stronger.

Jill DeWit:                               Exactly.

Jack Butala:                            Long time ago, very long time ago, Jill said this sentence to me, “Our members are asking all these questions or the new people and they’re not getting any answers and I can’t answer these questions fast enough.” She went on vacation and I created SuccessPlant.com.

Jill DeWit:                               Right.

Jack Butala:                            If you have any questions about any of this stuff, all of our members, they all talk to each other.

Jill DeWit:                               That’s true.

Jack Butala:                            They all talk to each other I’ve noticed more and more, like grassroots real people.

Jill DeWit:                               Right.

Jack Butala:                            They’re not politically correct about it and I love that.

Jill DeWit:                               Totally.

Jack Butala:                            If you’re brand new at this, or if you’re thinking about it, or even if you’re seasoned. If you just want to horse around and spend some time, that’s good. Go to SuccessPlant.com get a username and ask away.

Jill DeWit:                               Yeah.

Jack Butala:                            What the hell is this all about. $100 an acre. I’m about to send a mailer for $100 an acre in southern Ohio, is this going to work? People will pipe in.

Jill DeWit:                               Oh yeah.

Jack Butala:                            Our senior people, the people who have been around for awhile, will say please don’t waste your money.

Jill DeWit:                               Right.

Jack Butala:                            That’s not how your price it. Use SuccessPlant, I don’t care who you are, whether you’re in the group or out of the group, or not, or never have any intention of ever joining this group, which is fine. You really can get smarter.

Jill DeWit:                               Yeah.

Jack Butala:                            Get smarter and get the answers that you need from people, what’s the slogan, I wrote it. Real people doing real estate deals in real time.

Jill DeWit:                               Real time.

Jack Butala:                            That’s what’s happening on there. It’s not a plug, we don’t make any money from that. It’s just a forum.

Jill DeWit:                               Awesome. Join us on another episode, hold on one second. Join us on another episode, we discuss information, that’s Jack, and inspiration, that’s me. To get just about anything you want, we use it everyday to buy property for half of what it’s worth, and sell it immediately.

Jack Butala:                            You are not alone in your real estate ambition. I’m going to get another script reader.

Jill DeWit:                               If we turn your computer sideways, no I’m just joking. All good.

Jack Butala:                            I get all heated.

Jill DeWit:                               You do.

Jack Butala:                            I get all into the topic and I’m like, I missed it.

Jill DeWit:                               Oh that’s okay, you know what, little goof ups show that we’re real and this clearly not cut.

Jack Butala:                            See how nice is that?

Jill DeWit:                               It’s all live and we’re real people and are we going to make mistakes? Heck yeah.

Jack Butala:                            Such a good attitude Jill.

Jill DeWit:                               Thank you.

Jack Butala:                            You always have a good attitude.

Jill DeWit:                               Thank you very much.

Jack Butala:                            It counter balances my curmudgeon.

Jill DeWit:                               You’re curmudgeon. Is that a made, that’s your own little made up word.

Jack Butala:                            No it’s a real word curmudgeon.

Jill DeWit:                               Really?

Jack Butala:                            Curmudgeon is like, you know somebody who is just like, uh blah, all the time. They get out of there that’s not going to work.

Jill DeWit:                               That’s hilarious.

Jack Butala:                            You know doubting Thomas I guess.

Jill DeWit:                               Got it.

Jack Butala:                            It’s not my made up word.

Jill DeWit:                               I thought it was. I thought that was a Jack-ism, like okay.

Jack Butala:                            You’ve probably heard it 50 times in your life, but you just never let it into your pretty head.

Jill DeWit:                               I’ve only heard it from you. Nowhere else have I heard that word, and continue to never hear that word.

Jack Butala:                            Information and inspiration, to buy undervalued property.

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