Why the Concept of Data is Difficult to Explain (CFFL 504)
Jack Butala: Jack Butala and Jill DeWitt.
Jill DeWit: Hi.
Jack Butala: Welcome to our show today. In this episode, Jill and I talk about why the concept of data is sometimes difficult to explain, especially if somebody’s new at this. Before you get into it … Before we get into it … Before you get into it, a freudian slip. Let’s take a question posted by one of our members on the landinvestors.com online community, it’s free.
Jill DeWit: Okay. Rod asked, “I’m looking at a bulk deal purchase in Apache County, Arizona. Seller wants $22,500 for eight properties totalling 150 acres or about $150 per acre. I do not have the money. Any advice is appreciated.”
Jack Butala: We have all been where you are, Rod.
Jill DeWit: Yep.
Jack Butala: And here’s my blanket statement to everyone in real estate, every time I meet them. No good acquisition should be left undone, especially because of money. So if it’s a great deal, you’re going to find it.
Jill DeWit: There’s money.
Jack Butala: There’s way more money out there than sense. And you’ve come to the right place because I can see here you’re a member.
Jill DeWit: We have money and not a lot of sense.
I had to say that, you know it was coming.
Jack Butala: We don’t do deals directly any longer with members because quite honestly it takes too long. That’s the real reason. Not because they’re not good deals. It just takes too long. We have bigger fish to fry from a money standpoint. Not because they’re bad deals, just because, well let’s just say it. We’re doing it with people who are new and there’s a lot of stuff that goes on.
But anyway, what you want to do is go on a deal board, if you’re not there already. We have a thing called deal board, it’s a hootsuite, picture a bulletin board, old school bulletin board for jobs and stuff. It’s kind of like that, but it’s online. And that’s where all of our members, it’s a members-only access scenario on landinvestors.com. They go in there and access the thing and do this kind of deal. So you would, in theory, you would post all the … Post the properties, post the deal, probably include the GPS coordinates so everybody can look at it, or pictures. Pictures would be even better. As much information as you possibly can and then what you really want to do if you want to get this thing done fast, is find a buyer. Because chances are somebody on deal board is going to already have a buyer anyway, so you’re going to be left with a lot of possibilities.
Maybe you mark the properties up from $22,500 to $30,000 and then that person goes and sells them to the end user for 40. There’s lots of possibilities.
This is a great question. We have all been standing right where you are, all of us.
Jill DeWit: Exactly.
Jack Butala: Even at this place in our career, Jill and I where we are. We do deals that I do not want to … I don’t want to write a $4.3 Million check for. We get a money partner, but we do the courtesy of pretty much having the property sold before we even do the deal. It’s an easier sell.
At $150 an acre, you’re going to do just fine.
Jill DeWit: Exactly. Good stuff.
Jack Butala: 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, why the concept of data is difficult to explain sometimes. It’s the meat of the show.
Jill DeWit: I love this.
Jack Butala: You know, again we come back to this co-birthday party you and I had. And trying to explain to people what data is with … And they’re very, very intelligent people, their jaws are on the floor, or on the desk. You do what? You get assessor data or data from the DMV and you write everybody an unsolicited offer? How does that work?
Jill DeWit: Think about it? Would you like to get an unsolicited, decent offer on that car that’s under a tarp in your garage taking up space? And it’s funny because the guys might go I don’t know and the wives go heck yeah.
Jack Butala: I have three boats I’d like to sell too.
Jill DeWit: That too.
Jack Butala: And it goes on and on. So it gets the wheels … People either get it or they, [crosstalk 00:04:13] and then as the wheels start turning or they look at you like, that’s just awful and I don’t get it and I don’t want to know.
Jill DeWit: Right.
Jack Butala: And that’s most of the reaction that you get.
Jill DeWit: I don’t, I haven’t had anybody say that’s awful, I just think they have to … You know it’s funny, they have to get their head around it and go, does that really work? I’m like, yeah. You know?
Jack Butala: I have a professional friend in Arizona who is a mechanical engineer and married to the former CEO of, is it Raytheon or … No, Motorolla. And they’re both retired now. So I explained this, this is several years now, ago. I explained this to her. She’s like, so what the hell is it? I said, “Yeah, we take all the assessors data.” And she just looked at me and said, “It’s all about the data.” Everything. Everything is all about data. And you know, that just obviously stuck with me.
Jill DeWit: Exactly.
Jack Butala: You know what I’m talking about, right?
Jill DeWit: I do know exactly what you’re talking about.
Jack Butala: And she’s extremely intelligent and I have a ton of respect for her. But yeah, it’s all about the data and if that doesn’t just, if that doesn’t make the light bulb go off over your head, then this isn’t for you.
Jill DeWit: Well, let’s think about this. Every single thing that’s going on in our world, I mean, they’re just … Every time you log on your computer, someone’s collecting data on you by the way. They know what you’re looking at because they’re going to target you. Here’s an interesting thing, check this out. Just today in Facebook, I got a tshirt ad popping up that was unique to me. Why? They’ve obviously got enough data on me. It involved a tshirt with the State of California on it and it had the California Flag, it’s an airplane flag.
Jack Butala: Boy, they have your number.
Jill DeWit: Right? It’s like do you enjoy flying in California? I go, obviously they picked me on purpose. Not only that, I’m sure every single ad is tailored for that person, you know what I mean? You know, anybody who flies, this one’s getting a Hawaii one, this one’s getting a Arizona one, maybe a Florida one. You know what I mean? I’m like oh that was brilliant.
Jack Butala: Do you live in Southern California and have poor taste in men and need a support group?
Jill DeWit: I’m on that list. No! No, no, no. I don’t have poor taste in men. I have great taste in men.
Jack Butala: Thank you.
Jill DeWit: Welcome.
Jack Butala: I wasn’t fishing for a compliment. Anyway.
Jill DeWit: Oh, you got one.
Jack Butala: I just read in Wired magazine about three months ago that 85% of the data that’s out there is uncollected. So really, the data is limitless, right?
Jill DeWit: Yeah, we’ve only begun to scratch the surface is what you’re saying?
Jack Butala: Yeah, we’re not even, I mean just healthcare alone and the data that’s going on in your body right now and how much you should be and could be collecting to really extend your life or make a better life, feel better let’s say. It’s endless. And I love it, I love data companies, I love data-driven companies, specifically.
Jill DeWit: Wow, I was just watching … You know what, God this is so timely. I was just the other night we were out to dinner by the way and I didn’t want to tell you this but I was actually looking over your head at the TV.
Jack Butala: Yeah, it’s that poor taste in men support group.
Jill DeWit: No, but it was a sports …
Jack Butala: I was clearly boring the hell out of you.
Jill DeWit: No, I just got distracted, I’m sorry. But it was interesting because it was a sports channel and it was clearly like an infomercial or something. And they had a guy who had a thing around his midsection. It was collecting data, collecting his heart rate, collecting … Trying to gauge his stress level and all kinds of stuff. And he was an athlete. And I was like this is cool stuff, so this just ties into what you’re saying about physical data and what we can do with it.
Jack Butala: I mean, if you sit and daydream … By the way, daydreaming is how all companies start. When you talk about a football line, a guy, an NFL player on the line collecting all that data at certain, like in a huddle, when certain plays are run and then how to just improve it by one inch, what the linesman does when certain plays are run. Based on historical data, because we’ve already run the plays and practiced standing games, that’s so powerful.
Jill DeWit: Exactly.
Jack Butala: So the title is, why is it difficult to explain? Because it is virtually limitless.
Jill DeWit: For some people it’s nebulous too. It’s … that word can be used to describe a lot of things.
Jack Butala: Data?
Jill DeWit: Yeah.
Jack Butala: Yeah. So why has it become so popular now? Well, it’s because of computers because we can capture and then manipulate all of this stuff and very soon here we’re going to see quantum computers which are made for assessing … Capturing and assessing mega data, big data. Jill, I have a friend who’s got a … He got that degree in college, in big data. And he’s not a data person, ironically. He’s a business person, but…
Jill DeWit: I’m not sure who he is.
Jack Butala: His name is Pricar and he listens to the show.
Jill DeWit: Oh yeah.
Jack Butala: Hey, thanks for coming by the way.
Jill DeWit: Yeah!
Jack Butala: Extremely intelligent person.
Jill DeWit: Very.
Jack Butala: Lots of respect.
Jill DeWit: Lots of fun.
Jack Butala: So I can sit and talk about this all day.
Jill DeWit: I know you can. Data’s your thing. You are a data person and I love that. You’ve taught me that and I get it.
Jack Butala: Yeah. And we’ll leave it at that.
Jill DeWit: Exactly.
Jack Butala: Happy data mining.
Jill DeWit: You know, you can only talk so long about data.
Jack Butala: Join us in another episode where Jack and Jill discuss how to use information, that’s me.
Jill DeWit: And inspiration and try to keep everybody going here. That’s me.
Jack Butala: 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’re not alone in your data ambition. Exactly.
Jill DeWit: Right. I hope that wasn’t too dry. I was excited about the topic and then I’m like, It’s … It is hard to explain. It’s there and I like what you said, we need to get over it too. People, there’s just we’re all on somebody’s list for something. I mean, like the Facebook ad that popped up that had my number. You have the same thing too in your Amazon check out cart, Jack. There’s so many classic car parts and things that pop up for you because you glanced at something. And that’s okay.
Jack Butala: It’s collecting our meta data and some of it’s wanted and some of it’s not. And we have a lot more power over this than we all think.
Jill DeWit: Right.
Jack Butala: And it starts with these cell phones. I still have friends that don’t have cell phones for this reason.
Jill DeWit: Right.
Jack Butala: They have other people answering their … They have an answering service or whatever. Maybe it’s Jill live.
Jill DeWit: Maybe it is.
Jack Butala: Information and inspiration to buy under valued property.
If you have any questions or comments, please feel free to email me directly at jack@LandAcademy.com.
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