Sudden Need for Cash – Never Goes Out of Style (CFFL 385)
Sudden Need for Cash – Never Goes Out of Style
Jack Butala: Sudden Need for Cash – Never Goes Out of Style. 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 DeWitt.
Jill DeWit: Happy Friday.
Jack Butala: Welcome to our show today. In this episode, Jill and I talk about the sudden need for cash and it never goes out of style. What the heck does this have to do with real estate investing at all? Before we get into it let’s take a question posted by one of our members on landacademy.com online community. It’s free.
Jill DeWit: Okay. Michael asked, how do you use Title Pro to inspect the chain of title and make sure it’s clear? Love it.
Jack Butala: This is a question for you.
Jill DeWit: I know.
Jack Butala: Jill’s a title pro expert. Title Pro is, by the way, a tool that Land Academy members get to enjoy as part of their subscription.
Jill DeWit: Exactly. It’s included. So, here’s what you do. First of all, your first initial check should be to zip in the, so, you want to make sure that the person you are talking to is the correct person/owner of the property and can make the decisions. So, high I’m calling back. My name is, you know, Betty Smith and you, I got your letter about my 40 acres in Nevada, whatever it is. What am I going to do? I’m going to hop into Title Pro, because that’s, you can do it in RealQuest too, but either one, you’re asking about Title Pro, and what am I going to put in? I’m going to put in the APN and she should have it right there. If not, we can get it. I’m going to put in the APN and the county and bingo, it pops right up. Not only does, what it does, it takes me right and drops a pin on the property and I’m looking at it and I’m talking to her and I can hover over my little pin drop and I can see the ownership name right there and the APN.
Jack Butala: Uh-huh (affirmative).
Jill DeWit: That’s a few other details without getting too far into it. So, right now I can make sure, okay, Betty Smith? Yep. I got you right here and I’m looking at your property right now. Now, if I want to go further just so you know Michael, what, the easiest thing is right there, when you’re hovering over it you have the option to click on that property and drop it into a box and just print out a little property report and it’s about, I don’t know, eight, ten pages long and it gives you everything. So, I mean, this is seconds too. While you’re still talking to her you can have the property report, PDF, that you’re staring at and you’re looking at when she bought it, how much she bought it for, was there a lien on there, or you could start scrolling down on this property report, wo owned it before her, who owned it before her.
Jack Butala: It’s a chain of title.
Jill DeWit: It’s nice.
Jack Butala: It’s the same thing a title agent does.
Jill DeWit: Exactly, and that’s why we have Title Pro. You have all the same resources right there and that’s how you check it.
Jack Butala: It’s amazing because I’ve never, I don’t know the site like you do at all but you really can check the chain of title back a few year, what 20 or 30 or so?
Jill DeWit: Also, yeah.
Jack Butala: It’s a amazing resource.
Jill DeWit: So cool, and you can see, and then it gives you demographics. You can, if you really wanted to get into it, it gives you the GPS coordinates. It gives you, it gives you tax information and it tells you if they’re current or not current, annual taxes, what they usually run. You can see.
Jack Butala: What’s the coverage like?
Jill DeWit: You can really see mortgage. That’s where I was going, the other day I was telling you about a property I was looking at here in California and I saw a lender that recognized from years ago. I mean, you can sit back and see all kinds of stuff.
Jack Butala: Why were you look at that, Jill?
Jill DeWit: We’re looking at living and I’m looking at buying something maybe. I don’t know.
Jack Butala: You’re looking at primary residences for us?
Jill DeWit: I might be. That’s exactly it.
Jack Butala: That’s hilarious, and it’s good. Keep doing that.
Jill DeWit: Yeah. So, that’s how you use Title Pro. First, make sure you’re talking to the right person before you even go any further, and then do your homework and just a tip to Michael, because we covered this a little bit on our weekly call a week or two ago, but most title companies go back between 30 and 40 years. You don’t need to go further than that.
Jack Butala: Yeah.
Jill DeWit: That’s when they insure it. They do title insurance. They’ll go back 30 to 40 years.
Jack Butala: There’s no way to track anything. You know, this is long before computers now, 30 or 40 years ago, plus everybody’s not here, not with us.
Jill DeWit: Exactly. 1891 my grandfather exchanged a piece of gold for that property and sometimes I …
Jack Butala: You can’t insure that.
Jill DeWit: You can’t. So, anyway.
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. This is the meat of the show. A sudden need for cash never goes out of style.
Jill DeWit: I have to interject. We were driving recently and you were giving, talking to someone and this phrase came out, and I know at that moment for you Jack you had just formed it at that moment.
Jack Butala: I did. I did.
Jill DeWit: You just said, look, let me just tell you. So, the chances of, you know, just basically someone having a situation where they need cash next week is never going to go out of style and I went, that’s brilliant. I was like, pull over the car, write that down.
Jack Butala: I mean, that’s why we send offers out. That’s what we’re looking for. We’re looking for that situation. We’re looking for someone who has a sudden need for cash. That’s never going to change. People they’re asking me about, this is what, on the other end of the phone, this is what the question was. What happens when there’s a recession like we had last time? What happens when lenders stop lending, and you know, we had a terrible downturn this last one, and I’m here to tell you listener that’s going to happen again. Probably about eight years from now. There’s going to be a, not, it won’t be like the last time where it crushes the European continent, economically, literally, but there will be a pretty substantial slowdown and a huge price adjustment. That’s just the way the American economy works.
Jill DeWit: Right.
Jack Butala: Like it or hate it, that’s what’s happens, and you can pretty much set your watch by it. It’s between nine and 14 years and I think we’re in just six or seven now, or eight. So, but I’ll tell you even then, then more than now in a recession there’s a sudden need, people need cash. So, if they have these assets and they’re staring at your letter that you sent four years ago or your offer they’re in a, there is a chance that they might look through the folder and say, you know that guy did, I remember that guy sent me six thousand dollar offer for that thing. Yeah. I need some money now.
Jill DeWit: They remember it.
Jack Butala: That’s why sending these offers out is so much better. They just stick around forever. You know? So, what you’re looking for and it’s, there’s a lot of triggers that make people sell property. For the record, the biggest one is death you know. An heir is just going through an estate and selling property. So, but this one too, I just need some money.
Jill DeWit: We’re not even, well the thing is too, we’re not looking for that. It’s not like we’re sitting there reading the obituaries and sending out offers.
Jack Butala: Yeah, that’s awful.
Jill DeWit: So, which is really kind of, so I want to make sure that you know that we don’t know that person’s situation until they call us back and we’re like, we just know that you sent, like Jack said this is all numbers. You’re going to send x amount of offers, there’s going to be x percentage in there that needs money. Period. It could be a dog.
Jack Butala: It’s very predictable.
Jill DeWit: It could be somebody’s sick. I’m not kidding. You wouldn’t believe the situations that we’ve heard of people needing cash. All kinds of situations. Kids going to college. I need this college money to send them on their way. I mean, and not necessarily bad. They’re often good. We’re not going to retire there anymore. We really have no need for this. Period.
Jack Butala: Uh-huh (affirmative). My favorite is still the most heartfelt. It’s not my favorite. It’s not. It’s a terrible situation but there was just the way it was handled so good. A woman called me and said my mother was diagnosed with x, y, z and I would, I’m going to accept your offer and then, because I want to take her on vacation, and she did.
Jill DeWit: Exactly.
Jack Butala: They went to Hawaii for like a month and I got this heartfelt letter like six months afterward that said, you know, thank you so much that for doing this, like we could’ve never done this. My mom, you know, this was wonderful and you know, it makes me weepy about it now. So, it’s not a sudden need for cash. It’s just a way to, it’s an exit for a lot of people.
Jill DeWit: True. Yeah, that’s another situation. There’s so many people out there close to retirement, in retirement, whatever, they didn’t use this asset. They all thought they were going to move there and they never did and they are, by the way, I’ll tell you they’re happily paying their taxes. They don’t know that you can not pay your taxes you know and keep them current. They are happily paying their taxes, so that’s one of my other, you don’t want to just isolate those people. People current on taxes need cash too.
Jack Butala: There’s a lot of points you can take out of this but this is why I wrote this title. You have a choice tomorrow morning as a real estate acquisition person, which is what you’re becoming or what, if you’re listening to this show you’re thinking about doing it, you have two choices when you wake up tomorrow morning. You can go out and look for deals. That’s what everybody in the industry does. They get in their car, they look for, literally drive for dollars. That’s what they call it, and look for property.
Or they make a bunch of cold calls on the telephone like it’s 1958 to people who own property, see if they want to sell, or they call their broker, look through the, they get the MLS and they look through there. Right? So, now they’re actively doing a bunch of stuff tomorrow morning trying to find deals or, this is option number two. You can real smart about it like us and our group and you can proactively send a bunch of mail out. It takes about as much time to send 10,000 offers out as it does a hundred. Takes about three hours if you know what you’re doing and then let the people who want to do the deals at, on your terms and at your price call you back.
Jill DeWit: Bingo.
Jack Butala: Why would you choose A?
Jill DeWit: Exactly. I don’t know.
Jack Butala: It’s so silly.
Jill DeWit: Isn’t it amazing? It’s like, I think it’s, I don’t know. I always think of the people who think they get a trophy because they worked 12 hours today.
Jack Butala: Yeah. Michigan is filled with people like that.
Jill DeWit: Yeah. That’s not a, I don’t think that’s a good thing at all.
Jack Butala: I can say that because I’m from Michigan.
Jill DeWit: Dude, I want to, shoot, I’m taking off after this.
Jack Butala: I love that about you Jill.
Jill DeWit: Thank you. I’m done.
Jack Butala: Work real hard for a few hours. That’s where we are in life.
Jill DeWit: Yeah. Or one 20 minute show. Whichever. Pick one. I’m out. Can we hurry it up please?
Jack Butala: This show is the greatest way to avoid work there ever was.
Jill DeWit: Yeah, it is. We are helping. We’re doing a lot right here. We’re contributing a lot of content and helping a lot of people.
Jack Butala: We really are.
Jill DeWit: Thank you. That’s how I see it. I am working but I’m just having fun during my work. So …
Jack Butala: What’s going on this weekend?
Jill DeWit: That’s a very good question. I don’t know. Finally it’s stop raining in California. Thank goodness. Gee, whiz.
Jack Butala: Did we get through this whole show already? Did we make our point?
Jill DeWit: I guess we did. I don’t know. We’ll hear about it later if we didn’t. So, you know, you know I was just thinking about something. I was, I go through and I read the iTunes comments and I, we used to bring that up now and then and we haven’t brought it up in a while. So, hey, bring free to please leave us a comment in iTunes. I haven’t seen any lately, probably because we weren’t reminding people. So, please leave us comments because we love those. We do read those.
Jack Butala: Even if they’re like one word. Here’s some suggestions.
Jill DeWit: Uh-oh.
Jack Butala: Yuck. Or …
Jill DeWit: She’s hot.
Jack Butala: What? Boy, that’s good.
Jill DeWit: Make it two words. Jill’s hot.
Jack Butala: Jill, fill in the blank.
Jill DeWit: Oh, my gosh.
Jack Butala: Three words. Go.
Jill DeWit: Three words? This show rocks.
Jack Butala: Bunch of malarkey.
Jill DeWit: Waist of time.
Jack Butala: Know your limits.
Jill DeWit: Rather drive for dollars.
Jack Butala: Make it stop.
Jill DeWit: Nothing else on.
Jack Butala: Oh, Jill. This is classic.
Jill DeWit: Better than, fill in the blank.
Jack Butala: Oh my gosh.
Jill DeWit: Okay. Good. Oh boy. This is our Friday afternoon silliness.
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.
Jill DeWit: Join us on another episode where Jack and Jill discuss how to use information, that’s Jack, and inspiration, that’s me, to get just about anything you want.
Jack Butala: We use it everyday to buy property for half of what it’s worth and sell it immediately.
Jill DeWit: You are not alone in your real estate silliness, fun, awesome ambition.
Jack Butala: It’s so hard to convey some of the simplest stuff in life. You know?
Jill DeWit: I know.
Jack Butala: Like, why would you want to get up and go look for deals when they just get up and open the mail?
Jill DeWit: Exactly. It’s so much easier. You know, and I, yeah I mean really, I mean, we …
Jack Butala: I don’t think people believe it.
Jill DeWit: Gosh, I kind of want to do a side by side, I wish I had thought of this or at the time to do this. I’d love to do a side by side test like, okay ready, go. 30 days with traditional, like a realtor, like a house flipper, I would love to do this. How many deals did you come up with in 30 days and how many days we can come up with in 30 days, it would be like astronomical different. Like, they’d be like, what the heck are you doing? I’m like, we’re just doing what we talk about. It’s not crazy.
Jack Butala: There’s a guy in our group that I talked to recently. He’s making, I mean, he’s very pressed for time and he just, he called me to thank me and he’s making, he made 400 thousand dollars in his first 12 months of doing this and he was completely non vocal. He was not in Success Plant and he was calling me to thank me. He’s like, I’m making arrangements now to, you know, changing my life around with my job and the whole thing and …
Jill DeWit: Now I can. I can make different decisions now. That’s what it’s all about.
Jack Butala: Right.
Jill DeWit: That is so good.
Jack Butala: It’s amazing.
Jill DeWit: That’s so good.
Jack Butala: It’s just, you get out of it what you put into it. Which is not the, you know, you could leverage your time. which is not the case with driving for dollars. There’s an absolute cap. Or whatever else. Getting listings the traditional way, real estate listings or whatever, there’s a cap on the amount of time that you can spend doing it that way. It’s just not possible.
Jill DeWit: You’re right. You’re never going to get more deals as a one man show.
Jack Butala: You don’t get out of it what you put into it that way.
Jill DeWit: It’s true. That’s very true.
Jack Butala: This way you get out of it what you put into it.
Jill DeWit: Yeah, it’s right.
Jack Butala: It’s leverage-able.
Jill DeWit: I can easily scale up and send 10,000 out today or I’m going to send 10,000 or 1,000? I don’t know. Same amount of time. There you go.
Jack Butala: Information and inspiration to buy undervalued property. Awesome weekend.
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