When is it OK to Talk About Money? (CFFL 532)

When is it OK to Talk About Money? (CFFL 532)

Transcript:

Jack:                      Jack Butala with Jill DeWitt.

Jill:                          Hi

Jack:                      Welcome to the show today. In this episode, Jill and I talk about, when is okay to talk about money? And when is it not okay? More specifically, as it pertains to real estate as always.

Jill:                          Got it.

Jack:                      Before we get into it, let’s take a question posted by one of our members on the land investors dot com online community, it’s free.

Jill:                          Okay. Mike asks, “Anyone have any advice on how to manipulate improvement percent to include properties with well or septic tanks?” Has anyone ever tinkered with this?” I would love to find some properties in some of my areas with old wells I could salvage. It would double the value of the land.”

Interesting spin he’s going on here.

Jack:                      Mike, once in a while we get a brilliant question and this.

Jill:                          Yeah.

Jack:                      Congratulations, you won this month.

Jill:                          Thinking about, thinking outside of the box.

Jack:                      Here’s the thing Jill. The further we get into this Land Investors Land Academy, offers investors, offers academy thing, the more intelligent people keep joining our groups. And so this is brilliant. There’s a two part answer.

Number one, and I asked part of our staff to memorize this sentence. The data that we have in real quest pro and data tree and everywhere [inaudible 00:01:18] and all the other data sources that we provide is only as good as the assessor and the assessor’s cake eaters put in. So man, that would be great to say, “Yep, it’s got a well.”

Jill:                          Silly.

Jack:                      Like a whole separate column. If I had my way, I would say there’s a whole separate column for septic, a whole separate column for well, for well. It’s that important for rural real estate.

Jill:                          Right.

Jack:                      Unfortunately they don’t. So wouldn’t it be great though, that said, if the improvement percentage was like fifteen. Like the property’s been approved  fifteen percent and that man had had a well on it in every county. That’s dreamy data situation.

Jill:                          Wouldn’t that be great? I mean there really is a category for that on some of our data sources where you kind like check the box that you wanted to pop in. But you’re right, I mean a pretty large percentage of the time it’s not accurate information. The don’t fill it in.

Jack:                      So for the record, by the way, the first time I heard improved, “Is the property improved or not?” That was a lot of years ago. What I thought immediately was, “Does it have a house on it or construction?” and that’s not what it means. If the property has been improved in any way, like let’s say it’s part of a subdivision and there’s roads and stuff and there’s sewer hook ups at the street and all that. That’s improved property. And what it really it means is that lenders, lenders sit up in their chairs and say, “Oh, it’s improved property, I have an interest in lending you money on it now.”

Jill:                          Right.

Jack:                      I have an interest in lending you money now so that if you default I can own it. But that’s a different topic.

Jill:                          Right. Exactly.

Jack:                      So now, to answer your question Mike. Brilliant question. It would be great if you could somehow [inaudible 00:03:00] find that specialization and buy properties with a well, like a defunct well. Man, you would be off to the races on that financially. In fact, you could talk about how much money you’d make.

When is okay to talk about money?

Jill:                          That’s the [inaudible 00:03:15] of the show. You have a question or you want to reach out to either one of us on land investors dot com.

Today’s topic, “When is okay to talk about money?” To tie it in Jack [crosstalk 00:03:28]

Jack:                      What is it Jill?

Jill:                          When is it okay to talk about money? That’s a tough one. Well, there were two different rules of thumb. One is, just in life, when is it okay to talk about money, which is pretty much, it’s pretty rare. [crosstalk 00:03:44] Exactly, you don’t want to be that guy, you know what I mean? Oh, I just spent x amount on my car.

Jack:                      No, no, no.

Jill:                          Look at this watch that I just got. Do you know how much it cost me?

Jack:                      No, geeze.

Jill:                          And, oh, my husband just bought me these earrings, aren’t they great. Do you know how much they were?

Jack:                      No, I [inaudible 00:03:57]

Jill:                          You can’t do that. And it’s funny because of this. There was a woman that, that, after I wrote an article or what because it was so cute because her line was, someone asked her a really blatant money question about her business or something. [crosstalk 00:04:18] Yeah, and she said, “I’m from the south and women do not, do not discuss money. And I thought, ahh, that was classy, that was really cool.

So, that’s one topic about when to talk about money and then there’s another one, like you’re talking deals. Maybe you’re sharing some information about deals.

Jack:                      Yeah, like you have to talk about that.

Jill:                          Right.

Jack:                      Especially with a partner or an investor. Like in great detail.

Jill:                          Right.

Jack:                      I have an accounting background. That’s all we ever did was to talk about money.

Jill:                          Right. Well, then it’s like, it’s like, it’s part of the business. You need to discuss a, b, c, and d. Like you need to discuss percentage by the way. You know, I have fifty percent interest in this, I have ten percent interest in that. You do need, and when it’s business purposes you need to discuss that stuff, and that’s cool.

Jack:                      Right.

Jill:                          And sometimes I think for us too, like in our environment because we are sharing, we want to share real numbers with people because for us it’s kind of a learning educational, you know, and you know part of what we do, so we do share big numbers.

Jack:                      Right. That’s really what this talk is all about. [crosstalk 00:05:21] Cause we talk about it a lot and I don’t want it to be like inappropriate.

Jill:                          Right. So, were you [inaudible 00:05:29] so is that part of object two? Like you want everyone knows that there’s. I guess that’s it. When we share numbers there’s a reason for it. We’re not just like, “Oh, look at what we’re doing.” [crosstalk 00:05:37] Exactly.

Jack:                      Yeah. Exactly, it’s academic.

Jill:                          But, when I but, and like sharing [inaudible 00:05:45] you can buy an asset for five-hundred thousand dollars. You can mark it up fifty-thousand dollars. We all know it’s worth seven-hundred thousand dollars, everybody wins.

Jack:                      Right.

Jill:                          That is a totally perfect, perfect appropriate time to talk about money, but.

Jack:                      We did it fifteen times last week.

Jill:                          Exactly. But saying.

Jack:                      That’s probably not appropriate.

Jill:                          Saying, saying. So and so just bought a McLaren worth whatever.

Speaker 3:           Well, what do know about a McLaren?

Jill:                          I like McLarens. So, thank you very much.

Jack:                      Let’s talk about McLarens for the rest of the show.

Jill:                          There you go. Or, so, or the car that we looked at the other day that we don’t know how much it is for sure we don’t want to know how much it is for sure.

Jack:                      We walked away.

Jill:                          Yeah, we walked away. So..

Jack:                      Wisely, I [inaudible 00:06:27]

Jill:                          Yes, it was a classic car. Okay, yesterday, classic car in the corner. Jack makes me detour on the way home from where we were to look at, get out of the car, walk up to this classic car in the corner which I have to say was gorgeous and I can say it was one of the few that I kind of got excited about. It was triple black, and I’m like and so we did very wisely walk away before we learned the true value, because I don’t want to know.

Jack:                      Yeah. I mean I sat there looking at my phone and check ed the real values and I’m like, “Yeah, there’s just no way.”

Jill:                          If this is legitimate, and it’s the real deal, which it really looked like, we should walk.

Jack:                      We should run, which is what we did.

Jill:                          Exactly.

Jack:                      We ran back to our very affordable car.

Jill:                          Thank you.

Jack:                      And got it there and put the top, this is how you talk about money. Our very affordable, old.

Jill:                          Paid for.

Jack:                      Paid for, running well car. And put the top down and put my arm around Jill because she drives her car.

Jill:                          Sometimes.

Jack:                      That’s a whole topic for a show.

Jill:                          Oh no.

Jack:                      She drives her car and I drive my car.

Jill:                          “You’ve never driven my car have you?”

Jill:                          I have not driven your new car, no. Your new old car. I have not driven it.

Jill:                          That’s awesome.

Jill:                          Nor your motorcycle, I have not touched that either.

Jack:                      Nor will I talk about what I paid for any of these vehicles and how much they’re worth.

Jack:                      Exactly.

Jack:                      But [crosstalk 00:07:45] rest assured that what I paid for them, these vehicles is less than half than they’re worth.

Jill:                          Yeah

Jack:                      It’s a disease in our household. So we’re not really talking about money here.

Jill:                          Yeah, we’re [crosstalk 00:07:57] just saying.

Jill:                          This is true.

Jack:                      Buy it for less than it’s worth.

Jill:                          You don’t want to be that guy.

Jack:                      Yeah. You really don’t.

Jill:                          Isn’t it awful, we all know those people at parties too. You’re like, “Oh no, here we go again. We’re all going to here this story.”

Jack:                      I was just thinking, everywhere we live, right where we live now, I know all [inaudible 00:08:16] it’s pretty cool, I have to admit. We all know each other pretty well.

Jill:                          And the kids.

Jack:                      I have no idea, without exception.

Jill:                          It’s true.

Jack:                      I have no idea what any of these people do for a living, its never come up.

Jill:                          No. The only people, you know it’s kind of funny, we don’t talk about that, you’re right. The only people that we know of what we do are the crazy kids because they tell us about rocket launches that live across the street.

Jack:                      Oh yeah.

Jill:                          We do know those kids.

Jack:                      Oh yeah, the Space X kids.

Jill:                          Cause we know, just because it’s fun to hear about what they’re doing.

Jack:                      Yeah.

Jill:                          That’s the only reason.

Jack:                      It’s like living across the street from Animal House.

Jill:                          Yeah, oh yeah. [crosstalk 00:08:49]

Jack:                      And then, it’s quiet for a week and then on the news, Space X launched rocket.

Jill:                          Well, we’re like, “Oh, that’s where they are.”

Jack:                      And all of the kids come back from the launch. They’re done and they party for a week like they’re going to die the next week.

Jill:                          Exactly. [crosstalk 00:09:03]

Jack:                      It keeps me young. I think it upsets some of the other people.

Jill:                          The other neighbors?

Jack:                      Yeah. We’re good with that.

Jill:                          We’re good.

Jack:                      A little jealous, cause usually in the neighborhood I’m the one who’s making the most noise.

Jill:                          This is true. I heard some of your, by the way I heard your music from the [inaudible 00:09:23] the other day.

Jill:                          I did hear it. From where you were, I’m not going to say [inaudible 00:09:28] but from where I was on the campus.

Jack:                      Yeah, we have separate buildings to make sure our relationship goes as long as it can.

Jill:                          It actually really does help. Like today.

Jack:                      Like today?

Jill:                          Yep.

Jack:                      The truth is I don’t even know how much money Jill makes. Probably a lot. But I don’t know. I know it’s more than me.

Jill:                          By design.

Jack:                      Jill has a company called Jill Live that provides all our labor for all of our my companies.

Jill:                          This is true.

Jack:                      And I know how much that company [crosstalk 00:10:01] I know how much how.

Jill:                          You see the bills.

Jack:                      I pay the company.

Jill:                          Bills pay.

Jack:                      I know how much the net is. But she can’t be spending all of that.

Jill:                          No. Love it.

Jack:                      Do we want to see another episode where Jack and Jill don’t discuss money?

Jill:                          Right.

Jack:                      We just discuss information. That’s me.

Jill:                          And it’s [inaudible 00:10:15] just me.

Jack:                      You just about anything you want.

Jill:                          We use it everyday to buy property for half [inaudible 00:10:19] and then sell it immediately.

Jack:                      You’re not alone in your real estate ambition.

Jill:                          Did we cover that okay?

Jack:                      I think that went okay.

Jill:                          Okay, good.

Jack:                      It’s a little bit of an obscure topic. We’ve got some obscure topics this week.

Jill:                          It’s, it is interesting.

Jack:                      We’ll try to make up for it tomorrow.

Jill:                          Okay cool.

Jack:                     Information and inspiration to buy undervalued property.

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