How to Buy your Dream Property (CFFL 419)
How to Buy your Dream Property (CFFL 419)
Recording Location: LAT (i.e. 33.488237) (LONG i.e. -111.921540)
Jack Butala: Jack Butala with Jill DeWit.
Jill DeWit: Hey!
Jack Butala: And welcome to our show today. In this episode, Jill and I talk about how to buy your dream property.
What?!
Jill DeWit: Mm-hmm (affirmative)
Jack Butala: Before we get into it, let’s take a question posted by on of our members on the landacademy.com online community. It’s free.
Jill DeWit: Okay. Steve wrote, “If I buy this property do I need to keep the deed restriction or does this go away with a new grantee?”
This is good.
Jack Butala: You mind if I read this? Because it’s a little bit lengthy and I, I’m going to apologize in advance, but it’s so important.
Jill DeWit: Okay.
Jack Butala: Steve says, “If I buy this property, do I need to keep the deed restriction or does it go away with a new grantee?” And then this is Steve saying, “I got to reply to the mailing.”
“Hello Steve,” (this is a mailing now, what he received.) “I believe our congregation would be interested in selling this property, however, I wanted you to be aware of a deed restriction that’s been placed on it by the party that gifted the property to our church. That person is no longer living. If the property still interests you I’ll take it up at the next church council meeting.”
Here is a cut from the deed. Cut right out of the actual deed, the document itself. Dot, dot, dot, executes this deed on behalf of grantee for the sole purposes of acknowledging the church’s understanding and agreement that in consideration of this gift of the above described property from the grantor to the grantee that the grantee will not permit cropping of trees or the sale or the use of lumber for the property herein, conveyed for any purpose. It is further agreed that the property shall not be developed in any way and that all these conditions shall run with the land.
Thoughts or comments?
He’s asking us.
Jill DeWit: You want to answer separately? Or together?
Jack Butala: Who wants to go first?
Jill DeWit: I will.
Jack Butala: Go.
Jill DeWit: Can’t change it.
Jack Butala: Can’t change it. You can’t change it. You cannot change a deed restriction.
Jill DeWit: Even if they pass.
Jack Butala: It’s my understanding that you cannot change a deed restriction period.
Jill DeWit: How about on your own? Willy nilly?
Jack Butala: [inaudible 00:02:12]
Jill DeWit: Slash however. Can you go to court maybe over this?
Jack Butala: I don’t think so.
Jill DeWit: You think they would withhold it there too? Okay, but yeah, I know you can’t just go, “Yeah he died so I’m taking that out.” No.
Jack Butala: The only person who can change a deed restriction is the person who wrote it, and if they pass away it’s over. I have a lot of examples, but this is important because it’s important to really look into the condition of these properties before you buy them. It’s so infrequent that there’s problems, but obviously this one, this could be a potential problem.
So what is a deed restriction? If you own a piece of property, and you heavily believe in some cause. I’m using an example, let’s say, “Trees are living things too.” That’s your cause in life.
Jill DeWit: Perfect.
Jack Butala: Just like what this person maybe had that.
Jill DeWit: Sounds like here.
Jack Butala: This person does not want this property that they own, or anyone who ever owns it to cut the trees down. So that’s a deed restriction. You can buy it, anybody can buy it.
Jill DeWit: You can camp on it and love it.
Jack Butala: You can hug the trees.
Jill DeWit: Yes, you can. You can decorate them at Christmas time.
Jack Butala: You can’t develop it in any way.
Jill DeWit: Right.
Jack Butala: That could be construed as a lot of stuff. There’s two ways to look at this. One, good for this guy! He’s left his legacy. And the other way you can look at it is, well that’s a piece of useless property now.
Jill DeWit: I don’t know. Then I go back to, I might be okay with that.
Jack Butala: Think about Central Park in New York.
Jill DeWit: It’s gorgeous. It might be gorgeous heavily treed, wooded dreamy view for someone to camp on every weekend.
Jack Butala: Yeah.
Jill DeWit: And not develop. I think that’s okay.
Jack Butala: Like I said, there’s two ways to look at it. That’s one way, or another way is that guy wrecked the value of this property forever.
Jill DeWit: Or that.
Jack Butala: I’m just saying, I don’t care which one you believe in.
Jill DeWit: Right.
Jack Butala: I don’t even know which one I believe in, actually, I haven’t thought about it, but I tell you, here’s a good example-
Jill DeWit: I just say we think of all kinds of things. Let’s talk about our beliefs. Just kidding.
Jack Butala: Here’s a good example of a deed restriction. There’s a train park for little kids in the middle of Scottsdale, and some of the highest valued property in the state of Arizona, if no the highest. It’s 40 acres. It’s called the McCormick-Stillman Railroad Park. 40 acres for little kids to ride around on and it costs $1 to ride the train. When our kids were little we used to take them there all the time. Every three or four or five years you read in the paper, you hear on the news, that somebody bought the property and they’re going to put condos in there, and we all laugh and say, “Oh, this reporter doesn’t know what they’re talking about.”
Then a month later it comes out, “Oh yeah, there’s a deed restriction on this property and the guy was railroad nuts and he loved little kids so he made a train park and it’s going to be a train park for forever.
Jill DeWit: Mm-hmm (affirmative)
Exactly.
Jack Butala: So, it’s deed restricted and that’s it. So.
Jill DeWit: Right. This is a good example too, the trees one. I’m glad he found that and I’m glad he knows what he’s doing.
Jack Butala: Me too.
Jill DeWit: And he paused. He paused to go huh, let me check this out. That was perfect.
Jack Butala: You know what? It might be fine if the price was right to buy that thing.
Jill DeWit: Yeah.
Jack Butala: I don’t know, just to say, “I own deed restricted property.”
Jill DeWit: I kind of-
Jack Butala: Because it can’t be anything else, ever.
Jill DeWit: I’m kind of curious about how big it is.
Jack Butala: Yeah.
Jill DeWit: It would be kind of cool to go, “I don’t care what happens around there, but this piece of land is always going to be like this. Just like this.”
Jack Butala: Like Central Park.
Jill DeWit: Yeah.
Jack Butala: I don’t know if that happened. It probably didn’t with Central Park, but if that got built up around it, it’d be really cool.
Jill DeWit: Exactly. Good.
Jack Butala: If you have a question or you want to be on the show reach out to either one of us on landinvestors.com.
Today’s topic, how to buy your dream property. My dream property is one I’d buy for 10 thousand and sell it for 20. I think Jill wrote the show with a different idea in mind. Let’s find out.
Jill DeWit: This is for the folks that come our way that say, “Hey, I don’t want to invest. I don’t want to do this, I don’t really want to flip. I don’t want to do that. Can you help me? I just want to get my cabin. I want my second home or I want my first home. I want my primary residence. I want to live over here.”
Does this work? Heck yes. So that’s it. What’s funny about this, I’m going to sneak a little something in here. Seth Williams reviewed our program recently and that’s about to come out, and I was just watching his take on it today. One of the things he said was complimenting you and I, Jack. You don’t even know this.
Jack Butala: Yeah, I don’t.
Jill DeWit: You don’t even know this. You’re like, “Where are you going?” He’s like, “Oh no.” The look on his face is like uh-oh. No, Seth gave us a really nice compliment in his review saying, “Man, the way Jack and Jill do it, if you just want that certain dream, that on little type of property that size, the acreage, the price point, they are the pros at that.”
And I’m like, “Yeah, he’s right.”
I just saw that today and I wrote this title two weeks ago. That’s true. The whole point of everything that we do is you’re reaching sellers, but you’re reaching the sellers you want with the property that you want in the county and the size. If you want to drill it down to within a mile of an intersection, we have that data to check.
Jack Butala: Yeah, you can really. You’re right, and I never looked at it that way because I apply it to trying to buy property inexpensively and reselling it. Knowing what it’s worth long before the process even begins. You could really, really look at the data that way. Creative use of this data and buy yourself a pretty darn cool house or a cool piece of land to build a house on or any of that.
Jill DeWit: How about the guy that you talked about, you talked to on a consulting call a couple days earlier this week? You said he has all these buyers that do this action thing.
Jack Butala: Yeah.
Jill DeWit: They are looking for a certain real specific property type and a real specific area because they know to come in and blade it and cut it up and all that.
Jack Butala: Yeah. That’s a perfect example. Well that’s his dream property. He’s got a slew of buyers for a lot of reasons that really try to find and buy large acreage properties, thousands and thousands of acres, and then subdivide it or parcel split it out. Get some roads in there and mark it and sell it. Sell it on terms or sell it for cash. It’s been happening since the beginning of time. The way the data is now, it’s different now- Every property type, every dream property type there’s a universal property, right? There’s a finite number. That’s what you can do with this data.
Jill DeWit: Mm-hmm (affirmative)
Here’s a funny story. Kind of what we personally have done, too. Like, I love Big Bear. Growing up here that’s always where we used to go, play in the snow in the winter time, pretty cabins, cool, real close drive. Have Jack and I sought out, kind of for me because it was fun, seeking out a San Bernardino County property, the right size, the right price. When it’s the right size and the right price, and in the right area, I’ll buy them all. Seriously. Not kidding. I’ll buy all ten of them.
Jack Butala: I know you will.
Jill DeWit: I’ll buy ten or twenty, pick out the one I want, sell the other ones, and it paid for the one I want to keep and then some. We have people that do that!
Jack Butala: We do. We have people who started careers because they bought the program just to buy on piece of property to live on and realized how easy it was.
Jill DeWit: Mm-hmm (affirmative)
I tell people that. It’s funny that you say that because there was a guy that, I don’t know if it was you that talked to him or I talked to him, some investor from way back. He keeps trying to get out of this business but he can’t.
Jack Butala: It was you.
Jill DeWit: He’s retired. He’s retired. He’s like, “I don’t really even want to do this, but when these people call me and they have these great deals I have to buy it.”
It was just so funny. He’s like, “This is not what I’m trying to do, but I’m not going to turn down some good cash.” I was like, “That’s great.”
Jack Butala: That’s hilarious, actually.
Jill DeWit: Uh huh! (affirmative)
So I hope that, do you think that that answers it? I mean we can-
Jack Butala: Yeah. I want to know what your dream property is, though. Because I thought this was like a mansion in the hills or something.
Jill DeWit: Oh, no. It’s for personal preference for everyone. What if it’s a little walk street beach house? I don’t know.
Jack Butala: Is that your dream property?
Jill DeWit: Maybe that’s my dream property.
Jack Butala: I think it is.
Jill DeWit: Okay. That’s my dream property.
Jack Butala: Well, you’d use the mapping function in real class for that, so yeah, you can absolutely.
Jill DeWit: Bingo.
Jack Butala: Go through and click the ones you want to receive offers and for how much.
Jill DeWit: Exactly. And I could sit there, by the way, and pick out the ones that don’t have a mortgage. I could put in some- here’s another thing I don’t think people realize. Not only can get down to the intersection and everything, I can pick out specifics on a property like three bedrooms, two baths, no pool. You could sit there, our data is that detailed.
Jack Butala: Well, it’s every single piece of property that’s in a county.
Jill DeWit: Mm-hmm (affirmative)
I could pick exactly what I want.
Jack Butala: So it’s all how you then see that data. There’s a lot of ways you can see it that are provided in there now. Mapping functions and things like that, but we’re always developing new ones based on requests. One of the ones that we’re working on right now, I think it’s done, I’ve used it a few times is circumference. You know, going a mile out from the center of a property.
Jill DeWit: It’s in there.
Jack Butala: Yeah, it is in there.
Jill DeWit: Mm-hmm (affirmative)
Isn’t that great?
Jack Butala: This is a million ways to dream up buying inexpensive property and then reselling it to people that are around there in the immediate area.
Jill DeWit: Mm-hmm (affirmative)
You could put in subdivisions. It’s endless. People just don’t realize it. They sit there looking at an area, like I think flippers do this. I imagine them sitting in a neighborhood going, “Wow, this is a perfect neighborhood to do a bunch of flips. If I could get the addresses to everybody in this area without a mortgage who has anything between-
Jack Butala: Isn’t that funny?
Jill DeWit: “three and five bedrooms and no pool. Because that was a nightmare the time we flipped one of those. I want this, that, that.”
Jack Butala: Done, done, and done.
Jill DeWit: And I’m like, “Great! I can have that to you in five minutes!”
Jack Butala: I know.
Jill DeWit: And they go, “What?” They don’t get it.
Jack Butala: I know.
Jill DeWit: I’m like, “Yes, give me five minutes, I’ll have that list.”
Jack Butala: This is why driving for dollars is so silly.
Jill DeWit: Right!
Jack Butala: Because you don’t ever want to buy a piece of property based on what it looks like.
Jill DeWit: Exactly.
Jack Butala: Even if it is your dream property.
Jill DeWit: Exactly.
Jack Butala: You want to have 15 or 20 or 30 or 40 choices and then pick one.
Jill DeWit: Choose from.
Jack Butala: Yesterday we did a show about why real estate agents are obsolete. That wasn’t the title, but that’s what I think of it. This is why, what we’re talking about.
Jill DeWit: Exactly.
Jack Butala: You can find any property you want to buy and you can reach the number of people if you’re a seller just using this data.
Jill DeWit: Thank you.
Jack Butala: It’s just not made to be incredibly simple yet, which is one of the things we’re working on.
Jill DeWit: Exactly.
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.
Jill DeWit: Hey, I think you’re liking my topics. I think I’m surprising you with my topics.
Jack Butala: I love your topics.
Jill DeWit: Thank you.
Jack Butala: I love your topic.
Jill DeWit: Thank you. This is why you’re so silly. Thank you. Oh, no. Oh, boy. Here it goes. Boy you hung in there for several minutes. How were you holding onto that?
Jack Butala: No. Just topic.
Jill DeWit: Thank you. You have a good looking topic too.
Jack Butala: I thought your dream property was going to be some girly thing like a little house in the hills and you can find it and the whole thing.
Jill DeWit: You know me better than that.
Jack Butala: I know. Sometimes though, you get all girly on me.
Jill DeWit: Oh, got it. Okay. I know you like it when I get girly.
Jack Butala: All right. I wake up wondering if she’s going to be girly today.
Jill DeWit: Oh, gosh!
Jack Butala: I’m going to end it on that. This desk that we’re working on she can’t kick me under here, it’s too far.
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