Painful Truth About Land Investing (CFFL 550)
Jack: Jack Butala with Jill DeWit.
Jack: Welcome to the show today. In this episode Jill and I talk about the painful truth about land investing.
Jill: That was a long pause.
Jack: I just do that to freak you out.
Jill: Painful truth.
Jack: Before we get into it, let’s take a question posted by one of our members on landinvestors.com online community. It’s free and hopefully we can confuse Jill more too.
Jill: I could have got a cup of coffee at that pause. That was long. Alright Joshua asks, “In the course Jack speaks about only mailing to an owner one time, even if they own more than one property on my list. When mailing such to such an individual, does anyone change the wording and only let them know if you are interested in any of their properties? If you are still only mailing to one of the properties, will you take extra time to research which property you would be most interested in?” This is a good question.
Jack: This is a great question.
Jill: “And put that AP in and pricing in your offer? Or do you just go with the first property on the list when doing the data scrub? I think about sending one total offer to the individual or possibly one offer per different lot acreage.” Okay that’s the end of the question, I know what I would say.
Jack: Go ahead Jill.
Jill: So, well here’s how I would cover that. For me, it’s about time and efficiency. I’m not going to do any research on the properties until I know if they’re even in my ballpark range. So I’m going to bother and do that. I am going to probably just pick the first one honestly and scrub the rest of them because here’s why. When and if the person reaches back out to me, one of my questions I always ask is, “Is there anything else that you have?” That covers it right there. And they’re going to go, “Well as a matter of fact.” Like this just happened to one of our members Luke. He’s like a guys got 600 acres, it was that kind of thing. Luke sent him a letter about one, and found about 600 more acres. Now they’re doing a bigger deal and they’re going to do all this great stuff.
And that’s it, that’s how you do it. Luke didn’t and I don’t ahead of time pick the prettiest one, and I really want this one. So I’m only sending in an offer for this one. But I’ll still ask about the rest of them. I don’t do that much ahead of time. And two, because what if you’re sending out 6,000 letters, because some of our people are at one time. Are you really going to go through and spend that much time. Just get them in the mail. Price them right, get them in the mail. What?
Jack: You’re cracking me up.
Jill: I am. And then see who’s serious and then look at it. Jack …
Jack: That’s great advice Jill and now I’m going to tell you actually what happens in our company.
Jill: Oh no. Oh no here it goes. That’s all pretty Jill skipping along the top way. That’s really not at all what we do. Jill is now so far removed. Just kidding.
Jack: If you’d like to know what goes on in our house.
Jill: Oh gosh.
Jack: And in our company, check out the show Darma and Greg. It’s on during the 80’s or 90’s, 80’s right?
Jill: I think it might’ve been 90’s too, because I think they tried to do …
Jack: They live in California, she’s a total hippy and her husband Greg is the corporate attorney and he just looks at her constantly going, what?
Jill: She wants ice cream for dinner, which is what I want.
Jack: She sleeps on a trampoline and stuff.
Jack: So all kidding aside, Jill was just about dead on. That’s exactly how we do it. But I’ll tell you what we used to do and this will really help so you don’t have to go through what we … Made the mistake that we have or did. We used to do two mailings for every data set. So we would do the typical mailing like everybody does, where we send one letter to one owner, scrub out all the owners that we don’t want, like the federal government or whatever. And then we would take all of the multi-property owners and separate them out, and the data’s set, and then send it out. We’d send it out to a data team that would create a letter with an attachment on it that says, I know you own 140 properties in this county, and we’d like to offer you, and we would add it all up, 140 times 1000, $140,000 for all your property.
And it was absolutely and completely ineffective and a waste of time and money. While I horsed around and made fun of my friend Jill here, she’s dead on. Don’t worry about it, send them one letter. And it’s usually the first one, and they’ll whole [sloot 00:04:23] it, and don’t waste the 50 cents on sending multiple letters to one owner. That’s the real answer Jill, good work.
Jill: Thank you.
Jack: If you have a question or you want to be on the show reach out to either one of us on landinvestors.com. It’s free. This is the meat of the show. The painful truth about land investing.
Jill: Wait, wait, wait. The painful truth, one one thousand, two one thousand, about land investing.
Jack: [inaudible 00:04:50]
Jill: The painful truth about marriage.
Jack: Oh that’d be a good show.
Jill: The painful truth about child raising.
Jack: I love this show already.
Jill: The painful truth about …
Jack: Doing a radio show with two people.
Jill: Taxes. [inaudible 00:05:08]
Jack: The painful truth about waiting for your cohost to show up to the studio.
Jack: I read a quote recently and it said men spend 30% of their life waiting for women.
Jill: That’s hilarious.
Jack: And then I really sat down with a spreadsheet and figured it out and I think it’s accurate. I have to say you’re pretty good about it though.
Jill: Thank you.
Jack: You get ready pretty quick.
Jill: Hey hold on a moment. Do you remember there were a couple days last week that I was waiting for you actually.
Jack: Yeah I do actually.
Jill: Okay thank you.
Jack: And I think you do that on purpose.
Jill: I do do that on purpose. I do do … So yes there are times that I know that it’s wheels up, I know what it was, it was boat related. You had a wheels up time, this is how Jack rolls. This is my life. Wheels up 7:30, so you better believe I was up so flipping early it’s not even funny so I could be standing there at 7:10 with my coffee and my purse in the driveway waiting just because I don’t want to get busted and miss that 7:30 wheels up.
Jack: You make me sound like an ogre.
Jill: No, it’s fun, it’s like what you do to the kids. And if you haven’t done this to your children everyone, you need to do this at least once. You need to have wheels up time when it’s time to go to school. And you know what, you better be ready to leave them at home. Because we all know what’s going to happen. And if you leave them at home one time, you won’t have to do it again.
Jack: We’ve done it with all three kids.
Jill: Yeah, it’s beautiful.
Jack: It works.
Jill: It’s actually kind of fun, when they see you driving off and they’re running out the driveway and you just want to look, and you just go, sorry guess you’re going to miss today. And they don’t do that again.
Jack: I was having a conversation with number three recently, and he said, “This girl in school,” he’s 14. “Everything was great, we were talking and everything for weeks, and now she won’t talk to me or look at me.”
Jill: Oh no.
Jack: And I said, “Yeah that’s about it.” And he said, “Well what about mom? She’s not like that.” I said, “I know, because she’s a tom boy and she’s actually like a normal person. She’s not like a crazy female.”
Jill: Thank you.
Jack: I said, “It’s kind of wrecked because you’re never going to find a woman like this.” And he’s like, “Really?” I said, “Yeah it’s pretty much over.”
Jill: Thank you.
Jack: There’s no girl like this ever, and anywhere out there. Trust me, I’ve tried. That’s exactly how it went, exactly.
Jill: Thank you very much, I appreciate that.
Jack: I told him the best hope, I said, “Tell me the names of the three tom boys in your school, or two.” He gave me their names, I said, “Those are the girls you want to hang out with.” He said okay.
Jill: Very cool I love it.
Jack: What was this show about again?
Jill: Oh my gosh, the painful truth about land investing and so …
Jack: Here’s why I chose … This is a Jack title, you can tell.
Jack: Because Jill wouldn’t put the word painful in anything, she’d just walk away rather than deal with it.
Jack: So somebody went out on pick our pockets and said, Jack and Jill, while they do x, y and z is real positive, they make it sound really easy. It’s not as easy as they make it sound. Well here’s the painful truth about land investing listener. It is easy for us. For whatever reason, we were born to do this. Maybe that’s not the case with you. Maybe it’s really hard for you and painful. Maybe you hate computers, data, spreadsheets. You have talking with people on the phone like I do. Maybe it’s just not easy for you and it’s not for you at all. That’s the painful truth. Maybe working at Walmart’s better for you. That’s fine. That’s the painful truth about investing.
Jill: Good point baby. You’re afraid to put your money out there, you’re afraid to take a risk. You’re afraid to push the button and send the mailers and you’re afraid to answer the phone.
Jack: This takes time and planning and patience with computers and data and listening and follow through. And organization and all the stuff that a normal business takes to succeed. So if it’s painful for you, it’s not painful for me I’ll tell you right now. Especially because I have Jill. All the painful stuff that truly is painful about investing and owning a company, Jill takes off my hands. And she happens to like that end of it. The people part of it.
Jill: Last sign up dinner we were having family dinner and we were talking about our new venture that we’re working on. And I talked about … This ties into this. So I was talking about, what was I trying to say? There should be, not a screening process.
Jack: A qualifier.
Jill: Yeah some kind of qualifier, some kind of … I can’t think of the right term I want to say now, but I was telling our number three kid.
Jack: The application process.
Jill: Yeah, there’s an exact term and I’ll think of it two shows from now, I will think of it.
Jack: I’ll talk about the kids again. [inaudible 00:09:53].
Jill: It’s like a level of you got to make the cut kind of thing. So we have a new thing that we’re working on and Jack will share about that later. But my whole point was getting into land investing or any investing, whatever you’re doing. Like for this, what we’re doing, it takes two things. Let’s be honest, it takes money and balls, that’s exactly what I said. And kid number three looked at you and said, did she? Yeah, she said balls.
Jack: Twice now on the air.
Jill: I did. But I think it’s true. This is the painful truth. It comes easy to us and it really is easy to us. We’re not trying to sugar coat it. It really is easy to us. And it’s not going to be easy for everybody. There are a lot of moving parts, but it’s not crazy hard.
Jack: It’s not hard at all.
Jill: And you can do it. But you’ve got to have … that’s the painful truth, you’ve got to have …
Jack: It’s not hard at all. It’s business, and here’s the truth. It’s not hard at all but it’s a lot of work.
Jill: It is.
Jack: And it takes a lot of time. It’s a full time job.
Jill: It is. You think you could just spend a half hour picking a county? No way.
Jack: That’s right Jill. Keep going.
Jill: You should spend a whole day picking a county.
Jack: At least, a neighborhood. To this day it takes me a week, almost a week to price [inaudible 00:11:06] properly.
Jill: Right, you want to do it right.
Jack: So the point of this show, is to motivate and entertain. The point of this show is not to give you a step by step textbook manual on exactly how to do this, that’s what the programs and the education that we provide are for.
Jill: Right. Mm-hmm (affirmative)-
Jack: And boy do we provide the tools. All of them. We provide all the tools to make you successful. And they’re not to help you be successful. But they’re not free. That’s the other thing. It costs a little bit of money to open your doors. Not a lot.
Jill: It’s like anything, you have to show up and you have to do some thinking. It makes me angry that people think that, oh you know it’s like, I can’t think of a good example.
Jack: I’m miffed like this. I love it.
Jill: If you think that I’m going to hold 250 people’s personal hands and babysit, I’m sorry.
Jack: Wow, look at the rant.
Jill: No I’m sorry, but it’s like anything. If you’re trying to teach someone how … Say you’re an author, a well established, published author, and you’re trying to teach other people how to write a book. There’s a part where you have to cut it off and say, I can’t write your book for you. You have to write your own book. Here’s a blueprint, here’s your deadlines, here’s what we do to get it published. You need to pick graphics. But there’s a point where you have to go, it’s in your hands. And you can’t personally do it for them, you know what I mean. So I think that’s a painful truth about this. Jack and I have and will continue to help you as much as we can, but I can’t price every offer for you, and I can’t answer the phone for you, and I can’t say, buy this one, not that one.
At some point you’ve got to take that step.
Jack: Eddie Van Halen’s guitar. If Eddie Van Halen gives you a 45 minutes lesson on how to play the guitar, and this is the first time you’ve ever picked up a guitar.
Jack: And then you wake up the next day and you say, I can’t play the guitar. It’s Eddie Van Halen’s fault, that was a terrible 45 minute lesson.
Jill: Can you imagine?
Jack: That’s hilarious.
Jill: Eddie Van Halen, what a loser, couldn’t teach me how to play the guitar. He’s a phony, it’s so not true. This is so not true.
Jack: So here’s the painful truth about land investing. Jill and I are multi-millionaires because of land investing. And maybe you’re not. There’s people in our group who are multi-millionaires and they started with us after failing at flipping houses, are now multi-millionaires. That’s the painful truth. There’s even more people in our group who have never purchased and sold a property, why? Right? Both those two people are standing right next to each other looking at Jill and I. What’s the difference between those two? I’ll tell you the difference. The one followed through and one didn’t. They had access to the exact same tools, and the exact same information. And they just didn’t stick to it. They didn’t actually get stuff in the mail. They found some point in the whole chain to success, the path to success, where there’s a bottle neck. And instead of saying I’m going to barrel through this and get through it like Jill would, what they said was, it’s too hard.
I don’t understand it, or I don’t believe in myself is probably really what’s going on.
Jack: I don’t believe in myself, or my wife said I can’t do it. Or some BS answer. I can’t swear on this show. It’s like we can’t on a Thursday call.
Jill: You know what this is a result of right now. It’s a result of you and I having a Rush Limbaugh talk last night.
Jack: That’s right. So here’s the thing, I don’t care about politics, but Rush Limbaugh is actually hard to listen to for me. Like Fox News is and all that. And I’m not knocking right or left. I do not care about politics, right, left, I don’t care who’s in office or anything else. Truly I do not care. But Rush Limbaugh happens to have the number one top rated talk show, not rated, listened to talk show on the planet, and has been for like 20 years straight. So I decided for the first time to listen to his show. Just to see why, and the content’s hard to listen to. Any political content, right or left is hard to listen to.
But that guy, he’s compelling. How he says stuff and what he says is very compelling.
Jack: And he’s angry. No let’s just say passionate. Alright perfect, well said Jill.
Jack: Jill and I are passionate about this. I love seeing people succeed. I don’t want people to fail at this.
Jack: But the truth is, you’ve got to dig in. Like anything. So find out, you know it would be great if you were into this at all. Have a real conversation with yourself with a yellow pad of paper in front of you, and draw a line down the middle. I do this all the time. Draw a line down the middle and say, we’re going into x, y and z. What’s going to suck about it, and what’s going to be great about it. And make sure the stuff that sucks about it, you have your head around it.
Jill: Mm-hmm (affirmative)-
Jack: Make sure you can afford it. That’s the other thing that happens a lot.
Jill: I agree.
Jack: People get into this and they don’t have any money.
Jill: Yeah they uncover … Yeah I’ve seen that a lot, you’re right. They uncover a whole lot of acquisitions, but they don’t have the funds for, which I know you’re going to solve that.
Jack: Land [crug 00:16:30] fund will be released within 30 days, probably a lot sooner. And that’s going to solve that problem, where you can truly get into this with no money, and there’s money people standing behind you. Because no good acquisition opportunity should go to waste. That’s my motto.
Jack: So that’s the painful truth about land investing, and the rest of it. I think we covered it. Did you get it off your chest?
Jill: I think I did. Let me make my notes, good, it’s not crazy hard, stop kidding yourself, yeah okay we’re all good.
Jack: Stop kidding yourself.
Jill: That was my other note I wrote.
Jack: You’re not as good looking as you think you are.
Jill: No. No.
Jack: Well you are Jill, that’s what I said.
Jill: The painful truth is you know what, the painful truth for me is it doesn’t come easy for everyone, but if you’re determined, you can do it. Because I’ve seen plenty of people push through it and be successful and come out on the other side and go, oh wow. And then they’re running.
Jack: There’s about 10 members that I know about in our group. I know there’s more that I don’t know about who every time I talk to them or communicate with them in any way, they just won’t stop. They don’t stop for anything. They don’t hear rejection in the back of their head like normal people. They just barrel through it with confidence.
Jill: You know what I want to add to this one little thing. I learned this about myself a long time ago when I was like a child. And my parents pointed it out, which was … They’re like, Jill you just do not understand the work no, do you? And I don’t. And when someone tells me I don’t know, it’s obviously, it’s definitely nature not nurture on this one.
Jack: I can definitely relate to that.
Jill: I’ll tell you, if you tell me I can’t do something, oh boy watch me go. I’m going to go, alright game on.
Jack: I know, I’ve seen it.
Jill: So don’t tell me, oh that’s not for you, you’re not possible to do that. Oh I will. Now that doesn’t mean singing and ballet. I won’t even go there, we know that. But business things and stuff like that, oh you can’t get that deal done, oh you think so? Watch this.
Jack: A long time ago I walked into Jill’s office and she was on the phone with somebody and this is what I heard. Right when I walked in. “Just hand the phone to the bank teller.”
Jill: I did? I did that. I forgot about that. And it was so funny because our assistants, it was Skyler at the time. Skyler’s looking at me with his mouth wide open going, “Holy cow.”
Jack: I couldn’t figure out how to wire my … He wants to buy a piece of property and Jill just wouldn’t stop.
Jill: I stayed on the phone with a guy while he drove to the bank, walked in the bank and then he’s trying to do the whole routing thing, and I’m like, just hand the phone over. And so the bank teller and I got it done.
Jack: I have to truly, honestly say I would not have gone to that length to get that person to buy that piece of real estate.
Jill: Dude, that transaction was going to happen.
Jack: I miss those days.
Jill: That was so funny. Those were good times in our little office by the lake.
Jack: Do you want to see the next episode, where we discuss where to go from $10,000 a month. Cash [inaudible 00:19:51] from land.
Jill: And we answer Chuck’s question about handling deposits and deposit refunds, this will be good.
Jack: You are not alone in your real estate ambition. That’s hilarious Jill.
Jill: I forgot about that. I’ll never forget Skyler looking at me like, how did you do that? I’m like, I just told him what’s going to happen. And that’s what we did. He wanted to buy the property, couldn’t figure it out, I’m like, we’re going to do it right now. Go to the bank.
Jack: I’ve got a million stories like that, I should write them all down.
Jill: So funny.
Jack: Because you crack me up.
Jill: I am work around Jill.
Jack: That’s it. Can’t say no.
Jill: That’s right.
Jack: Jill’s Indian name is “Can’t say no.”
Jill: “Can’t say no,” and “Don’t know what no means.”
Jack: Like dances with wolves, no, can’t say no.
Jill: Exactly. You did that to me the other night. You want to do x, I said okay. No it wasn’t that.
Jack: End the show now.
Jill: Hey you like our show, please subscribe. If you like our show and you’d like more of this please subscribe and rate us on iTunes or wherever you are listening.
Jack: 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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