Where to Get Money for Your Land Acquisitions (CFFL 507)
Jack Butala: Jack Butala with Jill DeWit.
Jill DeWit: Hi.
Jack Butala: Welcome to our show today. In this episode, Jill and I talk about where to get money for your land acquisitions. This is very popular topic these days. We’ve decided to address it online.
Jill DeWit: Love it.
Jack Butala: Before we get into it though, let’s take a question. Posted by one of our members on the LandInvestors.com online community. It’s free.
Jill DeWit: Okay. So this is really good. This is from one of our members that have been with us for a while and I just love this. The ti … He put it in Land Investors, and the title of the post is, “Town of 200, Land is basically free if you can find it.” I love this.
Jack Butala: Well aren’t … This is fantastic.
Jill DeWit: Isn’t this great. He has a photo by the way, so as I describe this, you can imagine the photo that he posted with this.
Jack Butala: What does it look like?
Jill DeWit: It looks … It’s a … You’ll … Let me read it here and you’ll get it.
Jack Butala: Okay.
Jill DeWit: “Got a deal for a couple hundred properties scattered all over the place. Looking them up to see this collector likes these little towns. The one in the picture is an example. One handicap parking spot, and one regular parking spot at the post office.”
Jack Butala: So he must’ve gone there.
Jill DeWit: I bet parking is never a problem there. There’s two parking spots over by the post office and there are no cars. That’s the image that you see. It’s so cool. “The town is population of 202.”
Jack Butala: These people are salivating listening to this right now. They’re dying to get out of a big city.
Jill DeWit: Not 2,000, 200,000. No, it’s 202 people. That’s it. I’m sure they’d change it often. “The town, the lot is in the town, but I can’t tell exactly where. I probably have to order a map from the county on each one of these eclectic properties. It’ll be interesting to see how long it takes to sell them, for how much.”
Jack Butala: That’s a big word for you.
Jill DeWit: Right? Yeah.
“Pricing them is like throwing darts blindfolded. I think I will do some kind of formula. What do you guys use in your formula to price them so you don’t have to research each property? I just don’t have the time.” That’s Luke’s comment. I’m thinking some kind of conveyor belt approach that starts with high prices and lowers over time to find the market.
Jack Butala: That’s it.
Jill DeWit: That’s a good plan, so.
Jack Butala: Good answer. Good first answer. So here’s the thing. We teach … When you’re new at this, there’s a formula, right? You go out on a land watch and you start with what properties … This is how you price property, if you’re new. You go on a land watch inlay environment, you see what’s being sold. What’s been on the market for not a lot of time, and it’s getting offers, or it’s getting purchased, and then you work backwards from there on your acquisition price.
We usually say in the beginning, you should price it at about 40% for a rural, vacant land. For houses, it’s way different. For other assets, people write dissertations on how to price real estate. For this asset site, this seems to work for our members and it’s been working for us, for a real long time. However, once in a while you find property like Luke’s got here, and this happens to be my favorite type of property. There isn’t just no … There’s no comparison values. There’s no one has property for sale, it’s a very, very unique, so you just don’t know what to do. Well it turns out people love this kind of property when there are consumers buying it, and I didn’t realize this until a few years ago.
I’ve been doing this forever and I didn’t realize it and it happened on accident like a lot of things. Jill and I bought a portfolio of properties from a guy who passed away, and the kids were cleaning out their estate, and we got properties all over the country and a couple of them were in there that in counties that I would never send mail to. Those properties, man, they cause massive flurry of interest from buyers. Remember that?
Jill DeWit: That’s true. Yeah I do.
Jack Butala: It was like two years ago.
Jill DeWit: I do.
Jack Butala: Well it sounds like Luke just stumbled on a situation like this, and you’re going to find out that they’re worth way, way more than you think. And it’s just because they’re super unique. Happens in the classic car market all the time. If you have a car or a piece of art that is very, very unique, even if you think it’s a pile of junk, even if it is a pile of junk in the car markets, you’re gonna sell it for a lot more than what you paid.
So how to price it? I love the conveyor belt approach. Start way higher than you actually really think it’s worth.
Jill DeWit: I love it. I love properties like this too. Some people think it’s a bad thing if I can’t find any comps. Why is it a bad thing? It means you have a really unique property. This is really, really good. The last thing I want is somewhere I go and there’s so many comps that there’s thousands of them out there-
Jack Butala: That’s right.
Jill DeWit: Of the same property like that’s something for me that I don’t want it. ‘Cause there’s too many, I’m not gonna wanna, I don’t need to get in that. No I’d rather have a unique property and it’s just really cool, and I love too … I love when my website has properties scattered all over the place, so I’m attracting different buyers from all over. And I just think that’s the coolest thing.
Jack Butala: Exactly.
Jill DeWit: So, it’s good.
Jack Butala: You have a question, or you want to be on the show, reach out to either one of us on LandInvestors.com. Hey, this Luke by the way, this guy, before we get into it, he’s a very vocal, and very active member, and he’s on … He’s often with us-
Jill DeWit: On a week call.
Jack Butala: On our Thursday call.
Jill DeWit: Yeah.
Jack Butala: So anyone. If you go to our website, LandInvestors.com or Land Academy, or any of them. We have an open call on Thursday at 3:00 Pacific Time and you can jump on, it’s a Zoom call, and we talk with Luke. We talk about the deals we’re doing on any given topic, so it’s actually a lot of fun, and it’s getting huge. I just had increase our Zoom.
Jill DeWit: I know.
Jack Butala: How much it cost to televise the whole thing.
Jill DeWit: Exactly. It’s a limited number too, so you want to be there and be ready and get in there quick. It’s free, you can do it from your cell phone.
Jack Butala: You can ask us anything.
Jill DeWit: I know there’s a lot of our people. I love our members that are literally, probably like hiding under desk on their cell phone, so they can be on the call.
Jack Butala: Exactly. And then, it’s on Youtube the next day on Friday. So if you can’t make the call, just go over to our Youtube channel and listen to it there. That’s getting ridiculously popular.
Jill DeWit: Yup.
Jack Butala: It scares me actually.
Jill DeWit: Yup.
Jack Butala: We met with some members last night. Or what was it, two nights ago?
Jill DeWit: Right.
Jack Butala: And they were just telling us like thank you and you know it’s so hard for me. I can’t grasp this, Jill.
Jill DeWit: Oh, the show?
Jack Butala: No, just people are thanking us.
Jill DeWit: People like you?
Jack Butala: Yes, it’s hard for me to [inaudible 00:06:19]
Jill DeWit: So hard to pronounce? What are you saying?
Jack Butala: In my personal life, people-
Jill DeWit: By golly, I like you.
Jack Butala: Oh my gosh. 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, where to get money for your land acquisitions. This is the meat of the show. Jill, where do you get money?
Jill DeWit: You. Well, I’m out. That’s it, that’s all I got.
Jack Butala: There’s a famous line that was once famous to me, in a sitcom, where these two women are talking to each other. They’re best friends and the one woman says, “Alice, where do you go? What happens when you run out of money? What do you do?” And she looks at her and says, ” I go to the bank and get more.”
Jill DeWit: Yeah. There we go.
Jack Butala: Unfortunately for the rest of us, it just doesn’t work that way.
Jill DeWit: No.
Jack Butala: So where, Jill? What do you think? This is a topic that’s coming up, and here’s why it’s coming up, because the program kicks butt. And so there’s a ton of people out there doing what we say, and they go out there and buy, they’re finding incredible real estate deals, and they run out of money because they’re running to the bank doing these deals.
Jill DeWit: Right. Well I know where you’re going with this show, and let … And I won’t steal your thunder.
Jack Butala: No, no. Steal it.
Jill DeWit: But I will say what I’ve been doing until that point, which is ’cause I know stuff’s coming. But I had a guy just the other day, we’re talking on the phone and basically he was a money guy. That was a big pitcher and it’s our community. I keep telling him they’re there. Just put it out there. You need to put it out there that you have more deals than you know what to do with. Here are the details on the deals, and I need money to make this happen. I know what I could buy it for, I know what I can sell it for. That is … You need to be very vocal about that so, and this guy was trying to give me money and I said, “Thank you, thank you, thank you. I’m good.” But I did tell him flat out, I said, “There’s nothing stopping you.” He said, “Well, what if I just,” ‘Cause he didn’t want you do the work.
That’s the thing. There’s plenty people out there, they have all the money, they don’t want to do the work. They don’t want to do the research, they’re not interested, but they are interested in the ROY. So I get that. So I said, “You know what? There’s nothing stopping you.” His name is Ray. “From going online and on LandInvestors.com and putting it out there. I won’t stop you. You know, you guys are grownups. That from saying, ‘Hey guys I’ve been following this group. I know what you’re all about. I get it. I talked to Jill. I have some money and I want to help in you know, get some acquisitions done. Help you complete some deals.'” So that’s where we’ve been going and we have a deal board that our members have been doing this back and forth ’cause it happens all the time. That we have members that come up with more deals than they have.
You know, you run and it’s at some point, and I’ve had this back in the day, I ran out of acquisition funds, so that’s where we started doing options and things like that ’cause I didn’t have … I didn’t know where to go, and I didn’t know how easy it is to find money people.
Jack Butala: Right.
Jill DeWit: So Jack, you wanna take it?
Jack Butala: There’s way, way … Here’s the take away from the whole show. There is way more money out there than there are deals. And we ha … we are a deal factory. Land-Investors is a deal factory. So, if you are a person who is a bird-dog like us and you’re good at finding properties that are way below market, any type of real estate, then I would like you to treat it the same way you do when you try to sell a property. You post it everywhere, you rattle everybody’s cage until some bod … You find a buyer. You make it incredibly simple. For a money person to give you money on a deal by deal basis, so you can buy more and sell more. And we, Jill and I, for these really high-end land deals have money people that we use, and they love it. Once you do one deal with the money person, they just keep coming back for more.
So like everything, we’re going to launch a website soon here that solves this problem. That links deals up with money in a very, very efficient eighth grade way. It’s land. It’s shark tank for land, and it’s called Land Tank. The money people are on one side, the investors and the deal people are on the other side, and you submit a deal. Every single deal looks exactly the same to the money people, so they don’t have to be smart ’cause they’re not that smart. Money people are not that smart. They just want a return. They don’t want a lot of talking, they don’t want a lot of emotion. They want to give you a $100,000 and get $125,000 back as fast as possible without any hitch, and that’s how this website is set up.
Jill DeWit: Perfect. Exactly.
Jack Butala: And the deal people just want to submit a deal, get it funded, and get it sold. That’s what we all want.
Jill DeWit: Exactly.
Jack Butala: We don’t want a lot of hoopla.
Jill DeWit: Ain’t that funny? People … Why are there so much hoopla and talking sometimes and x, you know?
Jack Butala: Well you’re a woman, I would ask you that.
Jill DeWit: That’s funny.
Jack Butala: I can tell the way you’re laughing, it’s not that funny.
Jill DeWit: Some people. Do you know what it is? Well I think in business, some people feel like the more talking whatever, they have to earn it. I have to prove that I did all this work, I have to show stuff. No you don’t. Just spell it out there, it’s fine. It’s short and sweet-
Jack Butala: I can look you up on LinkedIn, I don’t need to know all this stuff.
Jill DeWit: Yeah, exactly. I don’t need your resume. Thank you.
Jack Butala: We’re also launching a website at the same timing in conjunction with Land Tank, called Land Crowd Fund, where you can … It’s the same kind of concept. It’s orchestrated a little bit differently for a different type of money person. But Land Tank, I think fits our needs way more than the way we’re doing it now. I talk to somebody recently ’cause we’re in here. We’re here in Los Angeles, and they said this, “You know, the way movies get made is really atrocious. It’s basically, every movie gets made and it’s just a huge result of a bunch of accidents.” It’s true.
Jill DeWit: Kinda like us.
Jack Butala: Like there’s no place to go and say, “I have this great idea for a movie. I’m going to submit it here.” And all the people … There’s no portal.
Jill DeWit: It’s true. There’s a lot of great movies out there that aren’t getting made because they can’t get to the right people.
Jack Butala: Yeah, and in fact there’s a lot of bad movies getting made ’cause of who they know.
Jill DeWit: Exactly.
Jack Butala: It’s really silly.
Jill DeWit: It is silly.
Jack Butala: It’s a bunch of heirs with too much money.
Jill DeWit: I like that.
Jack Butala: To listen to another episode, where Jack and Jill’s 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. Maybe we should do a movie portal. I’ve thought about this. Oh look at the light bulb that just went off over your head.
Jill DeWit: That’s brilliant. I’m in those meetup groups-
Jack Butala: I know you are.
Jill DeWit: I don’t think I’ve gone to one, but I see what they’re … I’ve gone to the writing ones, but the movie ones, I’m in some of those too, and I see what they’re talking about and I see the different meetups that they have on the group events and things like … They are like … They are lost.
Jack Butala: Yeah.
Jill DeWit: You know what, Jack? They have meetups like how to get your movie funded, how to write a script that’s gonna get looked at, you know, little things like that, and a lot of it is beneficial. It’s all beneficial, but they’re obviously doing it the 1970s ways still. That’s the point, and if there was a portal for that. Wow.
Jack Butala: We don’t have enough to do.
Jill DeWit: Yeah let’s add that. I’m gonna go … You know what? I’m gonna buy a whole nother role of that. We’re gonna expand into your office area now, and your team ’cause we filled up my area. So now we’re gonna fill the walls in your area with all these other ideas ’cause they’re brilliant.
Jack Butala: 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.
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