Haight is Not a Mailer Success Gauge
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 how Haight is not a mailer success gage. What the heck does that mean?
Jill DeWit: I know, thinks it’s so funny. We’ll talk about that.
Jack Butala: Before we get into it, let’s take a question posted by one of our members on TheLandAcademy.com online community. It’s free.
Jill DeWit: Okay. Kevin asked, “I am sending in a deed for recording, and did not specify a sales price in the deed, just says, ‘Good and valuable consideration’.” Which is perfect. “My county charges a small fee for every hundred dollars over five hundred dollars for recording the deed.” Very normal. “Do I need to send the county of my purchase agreement with the seller when I send in the deed for recording, to verify the sales price?”
Jack Butala: Do you want to take this Jill?
Jill DeWit: I think it’s a perfect idea, and I would.
Jack Butala: I have a diametrically opposite opinion.
Jill DeWit: Oh, really?
Jack Butala: Yep.
Jill DeWit: Okay, so this county clearly does not have their own little addendum that they attach, like-
Jack Butala: Yeah they do, he’s missing it.
Jill DeWit: Oh, he doesn’t have the affidavit of property value?
Jack Butala: That’s my [get 00:01:09]. Well so-
Jill DeWit: We don’t know what county it is, or what state.
Jack Butala: -that’s one of the reasons you should use Deed Perfect.
Jill DeWit: This is true.
Jack Butala: By the way. No we don’t, but the vast majority of states require an addendum attached to the deed. They require it.
Jill DeWit: Well, you know what?
Jack Butala: Because the assessor needs separate information from the recorder.
Jill DeWit: You know what? Let me back up. I would not … You’re right, I would not include the purchase agreement, but I would state, “I bought it for $500.00. Here’s your $2.50 for the $500.00 fee.” Is what it is.
Jack Butala: There’s like three or four points to make in this question, and it’s a fantastic question. I’m-
Jill DeWit: Yeah.
Jack Butala: We have a bunch of Kevin’s, but I know who … I know which one this is.
Jill DeWit: I … You know what Jack, I really do think that there are some countries, and I think I could be wrong, but I want to say, it’s like a documentary transfer tax.
Jack Butala: Yeah. California, exactly that.
Jill DeWit: Right, and, I might be wrong, but, I don’t remember them always having the associated affidavit. Maybe they do, because that’s how they verify it.
Jack Butala: California is a perfect example. You have to file it PCO. PCO is an acronym for change of ownership, or records.
Jill DeWit: Property change of Ownership.
Jack Butala: Yeah. In there is the price.
Jill DeWit: Change of record, or [inaudible 00:02:17].
Jack Butala: They ask you, “Is it interrelated?” It’s all the stuff that the assessor needs to reassess the property on the change of ownership. One of the things is price. That’s how they … Then you have a transfer tax in California, too. It’s very small. It’s like, it’s cents sometimes.
Jill DeWit: Right, .65 cents for per every-
Jack Butala: Like thousand, I think.
Jill DeWit: Something like that.
Jack Butala: Thousand dollars of transaction value. The only way you can do that, and disclose it properly, is with by disclosing the price.
Jill DeWit: Do you know-
Jack Butala: Here’s another point, the “Good Invaluable Consideration” language in deeds, it dates back to a very, very … When people were exchange property, for barter. They were, you know … I’ve seen deeds that say, “For love, and other good invaluable consideration”, like you can deed 40 acres to your daughter. That was very common. The consideration there was love, or the exchange value.
You do not want to, ever, put the transaction value in there. I’ve seen people do that.
Jill DeWit: Oh, not on the actual deed.
Jack Butala: Sometimes they say one, one dollar-
Jill DeWit: Yeah, don’t put that on there.
Jack Butala: -and/or good invaluable consideration. That’s how you want to do that. Or if you leave the dollar out, that’s fine. Some people mistake that, and say, “For $65,000.00 of property.”
Jill DeWit: Yeah, you don’t put that on the deed. That never goes on the deed.
Jack Butala: They might kick that back.
Jill DeWit: Well, you know what’s going to add to the best thing that I always tell folks, is, especially in a new county you’ve never worked with before, this would have been a perfect example, to pick up the phone and call them. This is what I used to do in the past. I used to create, like a little cheat sheet, that I had, and I’ve shared that with my staff, and it has since grown, because every county might have a little bit different thing.
It’s great to have a little cheat sheet. Every time you’re using that county, just go to it real quick. I have dates in there, that I put that when I spoke to Laura, at the county, on, you know, the end of 2016, let’s just say, it was the … You had to include this form, that form, and if there were any different things about the deeds, make sure to font, size, and anything special, make sure, have a check for this, because … If you … This area has an HOA, be sure you do that. Just have a good cheat sheet, so that …
What I would say Kevin, is, I would pick up the phone, call the county and say, “Hi. I’m about to send in a deed to be recorded. It’s a two page deed, and I’m enclosing a check for $17.25”, whatever, “Cause I looked it up, and it said that that’s the recording fee, because I have a two pages, because an extra buck for the page”, or something, I don’t know. “Am I missing anything?”
They will say, “Do you have this?” Or, “Do you have that?” Or, “Don’t forget about the tax, and don’t forget about …” “Oh, okay. Thank you.” Then that’s how you find out. That’s what I would do. Right then and there.
Jack Butala: It serves a lot of purposes, as you may guess. We’ve talked about it on the show before. Jill is personal, she makes personal relationships. You want that recorder, especially if it’s a small county, you want to be super good friends with them. You’re going to need some stuff from them at some point. You want them to have your phone, person phone number, and all that. I would not even consider recording a piece of property in any county, for maybe the first five or ten deals that you do there, without really-
Jill DeWit: Getting to know.
Jack Butala: -getting to know the-
Jill DeWit: Make sure you know it, right?
Jack Butala: -the recorder personally.
Jill DeWit: What I would do, too. This is what I used to do Kevin, is I would write them a little note, “Hey, per my conversation with Betty the other day, here’s my deed, and here’s the check made out as she told me. Gosh, and if there’s any questions, or I miss anything, here’s my phone number.”
I can’t tell you how many times that they have called. If I … You know, hey, we all make mistakes, no big deal. You thought you included something, but you forgot the separate check for a dollar, because they had to send a copy of it somewhere.
Jack Butala: Exactly.
Jill DeWit: Whatever. No big deal. I know it’s so nice to still say, “Hi, this is Betty. Hey Kevin, I know you forgot that whatever thing, I’m just going to keep it on my desk, and you just mail me a check for $1.00 today, I know it’s silly, but i have to have a separate check for that. Then when I get it, you know, next week, I’ll push it on through.”
“Oh, my God. Thank you so much for not sending the whole thing back, and all of that, and delaying it.” That’s what you want.
Jack Butala: Yesterday’s show was all about backtaxlists.com, and what that sites all about. This is one of the things that will be addressed. There will be a sample county deed attached as a PDF to every single county in the country.
Jill DeWit: Cool.
Jack Butala: So that they can see the format, if there format’s correct, if it’s good invaluable consideration.
Jill DeWit: Our members already have these anyway.
Jack Butala: I know.
Jill DeWit: That’s what they do in our program.
Jack Butala: Well they do in … Well they have them … Yes, they do, but not for every single state.
Jill DeWit: No, but …
Jack Butala: A lot of states.
Jill DeWit: It’s true. The ones that are, that we’ve … The ones that we’ve done a lot of transactions on, we included those for everyone.
Jack Butala: Right. This was a great question, Kevin. Thank you.
Jill DeWit: Also, as a member … As a member, if he really wants to see a deed in every single state, all he’s got to do is going in DeedPerfect, and fill out a dummy deed, because they’re free to our members-
Jack Butala: Right.
Jill DeWit: -and do one for every state.
Jack Butala: Oh my gosh, Jill. That’s correct.
Jill DeWit: Yeah. It’s right there.
Jack Butala: You’re exactly right.
Jill DeWit: Thank you very much. There’s a reason why I’m here. Gee, who knew? That’s kind of funny. You know, Jack, you made this great product, did you know what else it does?
Jack Butala: DeedPerfect is like the ugly duckling.
Jill DeWit: I know, you never talk about it. I’m like-
Jack Butala: I don’t know why.
Jill DeWit: -I sit there and go, that there’s one of the greatest products.
Jack Butala: Do you know why?
Jill DeWit: Our staff uses that-
Jack Butala: Because I don’t like doing deeds.
Jill DeWit: I know you don’t like doing deeds.
Jack Butala: That’s what it is.
Jill DeWit: Our staff loves it.
Jack Butala: If you don’t like doing deeds, listener, go do them on DeedPerfect.
Jill DeWit: Do it on DeedPerfect. It does it for you.
Jack Butala: Man. I wish I had that, a whole lot of years ago.
Jill DeWit: Don’t you? Me, too. I wish you would have made that for me a long time ago. Man. Oh, it would have been so much, so nice, so funny.
Jack Butala: If you have a questions, or you’d like to be on the show, reach out to either one of us on landacademy.com.
Jill DeWit: I have to add that this is one of those times, Jack, that you and I say all the time, like, if we only had us, years ago, how much quicker, and faster, how more successful we would be, if we had someone like us that could pick up the phone-
Jack Butala: I know.
Jill DeWit: -and call, ask these questions. We had nobody. We had to figure this out.
Jack Butala: Hey, the take away from this, is call the recorder and get to know that person, and use DeedPerfect.
Jill DeWit: Yeah, and even-
Jack Butala: Because we remember-
Jill DeWit: -this show. Jack, just like the topic of the show. I wish I had this person, that I could listen to a show like this, and learn about what we’re going to talk about.
Jack Butala: Yeah, the good invaluable consideration thing, I learned that the hard way.
Jill DeWit: Yeah. I’ve done that too. I remember when I first started doing deeds, you’re like, “Why does it have the amount on there?” I’m like, “Well, it said $10.00, so I made it, now I made it $1,010.00.” You’re like, “No, no, no, no. Just supposed to say $10.00.” I’m like, “I didn’t know that. Okay.”
Jack Butala: That’s exactly how that went.
Jill DeWit: Yeah.
Jack Butala: “Oh no, sweetheart. We … This is how you do it.”
“Oh, thank you so much.”
Jill DeWit: That’s exactly right.
Jack Butala: There was no arguing.
Jill DeWit: No, because we were … Because we were … That was when we were back then.
Jack Butala: I think some stuff got thrown around the office that day.
Jill DeWit: No.
Jack Butala: I remember that.
Jill DeWit: You used to be … No, that’s not true. You’re good. On to the topic.
Jack Butala: Today’s topic: Haight, like Haight-Ashburry in San Francisco, is not a mailer success gage. This whole show was created, it was my creation, because I had a consultant call on Wednesday with a member. They said, “I’m trying to do this mailer. I’m trying to send offers to all these owners.” This was a specific county. “But I’m really trying to make it so that there’s absolutely … No one calls me. Not one single person calls me, or reaches out to me with the Haight.”
What he was trying to do was avoid someone calling him saying, “Listen, who the heck do you think you are, offering $4,000 for my four million dollar property?” Hate is a part of this, you know, and I think, like basketball players, you got to get four fouls, right? You’re allowed five fouls in a basketball game. If you don’t get four fouls by the fourth quarter, you’re not trying hard enough. That’s what I think. Go ahead.
Jill DeWit: I think some members … I hate to say this, because we have some … We have all extremes in our world. I think some members like it, because they think it’s a bit of a home run.
Jack Butala: I think it’s hilarious.
Jill DeWit: Yeah, because they-
Jack Butala: I personally think it’s one of the funniest things ever.
Jill DeWit: Well, I think that they say, “If I send out some … If I get some good valuable haight, hey these are obviously some rocking low offers.” Here’s my thing, like they’re really low offers, and they know that if anybody does sign it, it’s probably a smoking deal.
Okay, I get that. I totally get that. However, our goal is to send out respectable offers. That’s one of the thing that I really convey when I talk to new people
Jack Butala: Respectful, yeah.
Jill DeWit: Yeah. I’m not-
Jack Butala: Show some respect, exactly Jill.
Jill DeWit: I’m not going to say, “Hey, I’ll give you a dollar. Why don’t you just give it to me, it’s not worth anything, anyway?” I’ve heard other people say that. That is now how we roll. No, I’m trying to make a respectable offer, it’s a wholesale offer, “Hey, I’m the Costco here.” Kind of thing. “I’m buying in bulk.” You know, and that’s my pricing, and I’m not going to dress it up fancy, and put it in the front window. No, it’s going to be rolled in my inventory, and it’s just going to sell when it sells, you know, kind of thing.
Like I said, you want to have a good respectable offer. Our not trying to hit anybody where it hurts. You’re not trying to take advantage of them. You’re not trying to be a jerk.
Jack Butala: Exactly.
Jill DeWit: Thank you. You wrote down my word. Thank you. Jack just typed Respectful. Thank you. I try to do that in everything I do.
Jack Butala: I know, and you do a great job.
Jill DeWit: Thank you very much. As do you.
Jack Butala: My point is, you’re never going to do a mailer … I mean, you could do a mailer. You could offer twice what you think the property is worth retail.
Jill DeWit: Oh, and everybody will sign it.
Jack Butala: Send a mailer out like that, and you will get no hate whatsoever. In fact, I would argue, probably, I would argue somebody would have a problem with it. It’s just the way that nature is.
Jill DeWit: Oh, yes. Somebody’s going to say-
Jack Butala: There’s always one or two people-
Jill DeWit: -quite wasting me five minutes of opening the mail. Who cares? Yeah.
Jack Butala: There’s a Facebook group, that we have no formal affiliation to, but it’s just a lot of people that … It’s not even our membership base, it’s just people that do this for a living. They … Once in a while, they have the stuff recorded, and they put it on there, like the MP3 file.
Jill DeWit: Oh, that’s funny.
Jack Butala: It’s just people going … They go nuts.
Jill DeWit: It’s hilarious.
Jack Butala: My favorite … I have said this in a distant past. My favorite response … My favorite question a lot of years ago, when I was doing my own deals, was a woman who called and she said, “Who raised you?”
Jill DeWit: It’s so funny. It’s so … You know, I say just expect it. Be cool. Be patient. It’s not a big deal. The same person that’s calling you, and that’s not happy with your offer, is the same person that was yelling at the guy, who charged to rotate his tires, and he didn’t agree with the price.
Jack Butala: Yes.
Jill DeWit: You know, it’s the same … There’s always people out there.
Jack Butala: There’s always a couple people.
Jill DeWit: There’s … Heck, it was me and CVS the other day, over the whole insurance thing.
Jack Butala: I mean, we all get, we all have our moments.
Jill DeWit: I usually don’t get mad. I try so hard not to get mad. I know our members know that, so they know, like, what happened a couple, with the whole land-watch debacle. Anyway, if I get mad, it’s a good reason. There’s a really good reason I’m getting mad.
Jack Butala: Right.
Jill DeWit: Thank you.
Jack Butala: You’re going to get some hate. You don’t want 500 calls on an 800 unit mailer.
Jill DeWit: Correct.
Jack Butala: But, you’re going to get some expletives left on your voice mail. In fact, a lot of people, what they do, very effectively, we do this too, is we have someone else answer the phone. Like an answering service.
Jill DeWit: Like our staff.
Jack Butala: Then they read … Well, yeah, in our case, it’s our staff, but, if you’re just starting out, if you get an answering service, and they read a scripted answering service. You can read the scripts real quick. You don’t have to listen to … You know, it’s a lot faster than listening.
Jill DeWit: Right.
Jack Butala: My attorney told me this one time. I’ve always wondered why-
Jill DeWit: Uh-oh.
Jack Butala: -the court recorders, they are in the back typing, you know?
Jill DeWit: Yeah.
Jack Butala: I’m like, it’s 2017. I asked our attorney, Ken, I’m like, “What do you think they could, you know-”
Jill DeWit: Hello, there’s a way they-
Jack Butala: -there’s a microphone-
Jill DeWit: -I could talk into my pen, a microphone.
Jack Butala: He said this, “If you ever try to listen to a court case, I mean audio listen. It takes hours, and hours, and hours.” He said you could read a court case, or read a transcript from a court case, in about 30 seconds.
Jill DeWit: True.
Jack Butala: You read a lot faster than you can listen. That’s why they do it.
Jill DeWit: Why don’t they just have the audio turned into a-
Jack Butala: They could. I don’t know. That was his answer, and it actually made a lot of sense to me.
Jill DeWit: They …
Jack Butala: You can do the same thing. My point …
Jill DeWit: They can say, “Strike that.” They can strike that on the audio.
Jack Butala: Yeah. Okay, smarty, all right. No Steve you’re wrong.
Jill DeWit: No, I’m just trying to think of a reason. I’m supporting your argument here.
Jack Butala: When Jill’s mad at me, she uses my first name. “Steve, you’re wrong.”
Jill DeWit: Did I say that?
Jack Butala: No, I just said it.
Jill DeWit: Sorry.
Jack Butala: That’s why I used my name.
Jill DeWit: Oh, okay.
Jack Butala: My first name. Not Jack, my middle name.
Jill DeWit: Not Jack, exactly. I think there’s better ways to gage your results. How’s that?
Jack Butala: Yeah, this is how you gage your results, you get a bunch of signed offers back and you buy the property for less than half of what it’s worth.
Jill DeWit: That’s my better gage.
Jack Butala: That was my punch line to this whole episode, and it took me 15 minutes-
Jill DeWit: How long did it take?
Jack Butala: -and 34 seconds.
Jill DeWit: There we go. Took that long to get there. This could have been a lot shorter show.
Jack Butala: All kidding aside, there are very predictable results in all this. If you send out, do it properly, for about every … You’re going to buy 1% of rural vacant land, if you do it right. Out of every 100 letters, you should by 1/2 to one. For every 1 or 200 letters, you can pretty much take this to the bank. If you do it right, you’re going to buy a property.
Jill DeWit: Some are even higher numbers.
Jack Butala: For house … For us, it’s like 5-20.
Jill DeWit: Well, yeah, some of our people exactly.
Jack Butala: Once you get the experience, and you find a niche, like you find an area. That’s how you find an area that you really just keep, bleed the well dry.
Jill DeWit: Right.
Jack Butala: Once you find that, now you’re buying 50 properties, you know, from one owner.
Jill DeWit: Right.
Jack Butala: That happens a lot.
Jill DeWit: That’s what I was just going to say. That’s what I keep hearing. Our people keep stumbling across, more often than I realize, these just wealth of property with one person. It’s awesome.
Jack Butala: Exactly. Then, a few houses to complete the thought. For every 1,000 to 2,000 offers, you buy a house. That’s scraping the bottom from a pricing standpoint. Jill and I scraped the bottom. The bottom of the bottom, of the bottom. We have members who just are happy sending them out for 80% of what the retail value is, and they’re very, very happy, because you line up this business model against other business models from a profit margin standpoint, this is unheard of to double your money.
Jill DeWit: I know.
Jack Butala: We double our money every day.
Jill DeWit: Exactly. That’s our goal. Man, 50% is great. 20%-
Jack Butala: 20%
Jill DeWit: -in most industries is great. What is Costco’s margin? 15?
Jack Butala: They, no, they’re mark up is 15%.
Jill DeWit: Mark up is 15%.
Jack Butala: They do not mark up any … They’re cost …
Jill DeWit: Yeah, 15.
Jack Butala: They have a cost, and they mark it up, the max.
Jill DeWit: That’s like, we watched that video, it was like on YouTube video, or Netflix or something.
Jack Butala: Their whole business model is subscription. The $50.00 the membership pay, annual. Is it $50.00?
Jill DeWit: I think so. Yeah, around there.
Jack Butala: That’s their whole business model. They make billions of dollars on membership fees. Then they try not …
Jill DeWit: On that. Then everything else pays for the buildings, and all that?
Jack Butala: Yes.
Jill DeWit: Got it.
Jack Butala: Yes. That’s exactly right.
Jill DeWit: That makes sense.
Jack Butala: Labor, and everything.
Jill DeWit: Yeah, that makes sense. I love it.
Jack Butala: It’s brilliant, I think.
Jill DeWit: Good.
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: 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 real estate ambition. Yeah, I forgot to say … We used to keep a board of all the funny things that people hate. Just the letters we’ve sent back. There was one, I’ve mentioned this on a call last week. I received it for … Somebody was so upset with an offer. This was a lot of years ago. An offer that I sent, that they did a bunch of research, found out where I lived, and sent a FedEx expletive, like for once a week for like six months.
Jill DeWit: That’s great. That’s so darn funny.
Jack Butala: I love that stuff.
Jill DeWit: I think that’s hilarious. They spent that much money to get their point across, which is so silly.
Jack Butala: Yeah.
Jill DeWit: Throw it away.
Jack Butala: Yep.
Jill DeWit: If you don’t like it, I don’t care. It’s not for you, throw it away.
Jack Butala: Exactly. Information and inspiration, to buy undervalued property.
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.
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