Millionaire – What to Expect (CFFL 565)
Millionaire – What to Expect (CFFL 565)
Transcript:
Jack Butala: Jack and Jill here.
Jill DeWit: Hey.
Jack Butala: Welcome to the show. In this episode, Jill and I talk about being a millionaire and what to expect. I don’t know from personal experience, but we’ll talk about it.
Jill DeWit: Like, what?
Jack Butala: Before we get into it, let’s take a question posted by one of our members on our LandInvestors.com online community. It’s free.
Jill DeWit: Okay. Farren asks, “We’re completing our first option deal and the bank got involved on the lender’s end.” Uh oh. “They’re a teeny bit concerned that they’re making a check out to a company that does not technically own the land. Any advice to settle the nerves in the small town bank? How would you go about handling this?”
Jack Butala: Yeah, this came up on our weekly call, I think, right?
Jill DeWit: I think it did.
Jack Butala: I answered it like this. Why is there a bank … We don’t ever deal with lenders, I mean ever, unless they’re, like, a private person.
Jill DeWit: Right.
Jack Butala: So I’m not sure … What do you think, Jill? I don’t know how a bank ever-
Jill DeWit: I’m trying to piece it together. Option deal is: I’m not putting down the money; I’m optioning the property. So I’m guessing it’s a pass-through from the buyer … you think? The buyer through Farren? The buyer’s getting the money? Or Farren’s getting the bank money?
Jack Butala: Sometimes we say run to the bank and do this deal, it’s so good. Sometimes we say turn around and run in the other direction as fast as you can from this deal. That’s my advice here.
Jill DeWit: This is true. If you’re doing an option deal and you need to have a lender involved, pass on the deal. Is that what you’re saying, Jack?
Jack Butala: Our whole business model, right from the time that you send the mail out, the blind, unsolicited offers in the mail, we scrub the data out so there’s no lenders. So lenders really, really complicate and destroy real estate success in my opinion.
Jill DeWit: Yep. Here’s one of the reasons why.
Jack Butala: Not 100% of the time. Leverage can be good, but if you’re relatively new at this or, you know … It’s just not a good idea.
Jill DeWit: Yeah.
Jack Butala: Go ahead, Jill.
Jill DeWit: Well, I mean like you said, this is one of the reasons why lenders can mess up deals. I’m not sure about … I’m still trying to wrap my head around exactly what’s going on. I wonder if Farren’s borrowing the money in the middle just to close the deal.
Jack Butala: Yeah. Something. We don’t know, I guess.
Jill DeWit: Right, and sort of double-end closing it.
Jack Butala: Let me tell you something about lenders really quickly with my experience and how I got to be this jaded.
Jill DeWit: Oh no. Please share, Jack. I want to know how you got to be this jaded in life.
Jack Butala: Talking to Bank of America, let’s say. I’m not picking on Bank of America. Any bank. Any big bank, right?
Jill DeWit: Oh, please pick on them. Have at it.
Jack Butala: And you say, “You know what, I need a mortgage on my house,” or, “I have a mortgage, but I need a new one,” or any of that stuff. And they say, “Oh my gosh, great.” Just like walking into a used car dealership, and then they can smell the money. They assign you a person who’s about 21 years old, who has no experience whatsoever, but somebody who went through [crosstalk 00:03:09]-
Jill DeWit: They’re an apprentice.
Jack Butala: -six week training course in someplace that’s got really nice weather, and they sip down their coffee and they had a nice, clean white sheets, and they learned nothing. Now they’re gonna execute a financial instrument on your behalf that will change your life. Is that what you want?
Jill DeWit: I think it makes a lot of sense. What’s the problem, Jack?
Jack Butala: Maybe she was a cheerleader.
Jill DeWit: Maybe she was.
Jack Butala: That’s all of her experience, is cheerleading, and she’s gonna execute your mortgage.
Jill DeWit: She led a very powerful squad, Jack. Don’t be knocking on those … I hear yeah.
Jack Butala: All kidding aside, it’s a very slippery, slippery scenario. I read somewhere recently that 40% of all marriages … All marriages, that’s a [inaudible 00:03:59].
Jill DeWit: Woo.
Jack Butala: 40% of all mortgages-
Jill DeWit: Mortgages, marriages.
Jack Butala: -have errors in them, like calculation errors, like what your-
Jill DeWit: Yeah, you meant marriages.
Jack Butala: Actually, 60% of all marriages are fatally [crosstalk 00:04:14].
Jill DeWit: Have errors in them. And mortgages are much safer.
Jack Butala: You want to talk about destroying your life, get a mortgage and a marriage, then you’re done.
Jill DeWit: Because 60 and 40 is 100%, so you’re over.
Jack Butala: In the middle of 60 and 40 is 50, and you have about a 50% chance of either one of those working at all.
Jill DeWit: Yeah. Oh my gosh. Wow.
Jack Butala: Oh, Jill. Very [inaudible 00:04:48].
Jill DeWit: Thank you.
Jack Butala: If you have a question-
Jill DeWit: If you want us to just beat you up here about it …
Jack Butala: If you have a question or if you’d like to stop listening to this show, feel free to reach out to either one of us on LendInvestors.com. Today’s topic: Millionaire and what to expect. This [inaudible 00:05:07] show.
Jill DeWit: It’s millionaire week. Woohoo.
Jack Butala: Yeah, it’s millionaire week. Jill and I decided to lighten up a little bit, Jack. That’s what she said to me.
Jill DeWit: Yeah.
Jack Butala: “Lighten up a little bit, Jack. Let’s have some fun.” I said, “Alright. What should we talk about?”
Jill DeWit: Being a millionaire, because I’m watching more and more of them emerge.
Jack Butala: Yeah, tons.
Jill DeWit: That’s it, and they’re like, now they’re looking to us going, “Now what do I do?” I’m like, “Just do it again.”
Jack Butala: So what … I mean, if you’re not a millionaire yet, it’s probably because you haven’t sent out enough letters, but that’s not what this show’s about.
Jill DeWit: Right.
Jack Butala: In fact, I know that’s why you’re not a millionaire yet. If you are a millionaire already, you probably have sent enough letters out or you figured it out some other way, so … I bet once you cross that line, if you’re good at this stuff, you didn’t even know it when you crossed it. You look, like, “Two years ago, I probably was a millionaire,” kind of thing. But what do you expect, Jill? What advice can you give people about, let’s just say money. You know? And maybe you have this built up thing in your head, like, “Man, when I’m a millionaire,” or, “Man, when I have-”
Jill DeWit: Isn’t that funny?
Jack Butala: Or let’s just say this. “When I don’t have to go to work … Maybe I don’t even have to go to work today at my own job, the one that I created for myself in my own company.”
Jill DeWit: I think it’s funny that you don’t even really realize it when you pass the threshold, like you said. You’re like, “Oh, I guess I am. Huh.” You know? You’re like that, like you said, “It was two years ago,” kind of thing like, “Huh. That’s what that was.”
Jack Butala: I mean, if you know that it’s gonna happen, like-
Jill DeWit: “I still look the same. I still need to lose 20 pounds.”
Jack Butala: That’s what I mean.
Jill DeWit: You know? None of that’s changed.
Jack Butala: That’s really what this show’s about. Like, if you know it’s gonna happen two weeks from now or two Thursdays from now, you’ve got problems. But if it just passes you by …
Jill DeWit: Right, and you’re still going to Costco …
Jack Butala: Yeah, exactly.
Jill DeWit: Then you’ve arrived. That’s what’s great.
Jack Butala: Here’s what you can expect: Nothing’s gonna change. In fact, the chances are, you have a lot more responsibility, which is not a bad thing. This isn’t one of those sappy shows, like rich people suck and don’t worry about it, never make any money kind of thing. It’s nothing like that going on at all.
Jill DeWit: I think that most millionaires that I know have a lot of similar traits. One is, like we just talked about, they don’t realize it. They’re like, “Oh yeah, I guess I am.” Number two, they aren’t frivolous. They have medium, not fancy … They don’t drive Ferraris. They have paid off cars.
Jack Butala: I love this, where this [inaudible 00:07:45].
Jill DeWit: Yeah. They work. They still get up and go to work, pretty much usually their own business, every day, and they’re still pushing forward to make it bigger and better. They’re not stopping just because … It’s not like, “Oh, okay, I can coast now.”
Jack Butala: Yeah. “I reached the milestone. That’s it.”
Jill DeWit: You know? “I’m buying a Ferrari and that’s it. See ya.” No, they’re not doing that. So it’s very interesting.
Jack Butala: Here’s some of the best advice I can give to anyone. It’s actually in my book. It’s a whole chapter. Tomorrow morning when you wake up, you can either get better at whatever you’re doing, or you’re gonna get worse, but you cannot stay the same. That applies to this too. If you reach your financial goal, whatever it is, or you reach some goal, like, “Man, I don’t have to go to work any longer,” don’t just stop.
I worked with somebody a long time ago, and she came into some money. I think she inherited it. Not a lot, like, I don’t know, 40 or 50,000 dollars. You know what she did? She said, “You know what? I don’t have to work this year.” So she didn’t, and she did a bunch of stuff that she wanted to do. She was a nurse, so she can … People in a profession like that can get-
Jill DeWit: [crosstalk 00:08:58] come back and get a job right away.
Jack Butala: Yeah, or next week.
Jill DeWit: That’s a little more secure.
Jack Butala: Not even next week, next shift.
Jill DeWit: Right. Would you recommend this or not recommend that?
Jack Butala: No. Not for my personality, and I know for yours, for sure, Jill, or with any of the kids, I would sit them down and say that’s … exactly. If you want to work the rest of your life, that’s exactly what you should do. If you want to build something, build a legacy or build whatever you’re trying to build, which I think most of the people who listen to this show want to build something, don’t just quit, take a break.
Jill DeWit: No, but you just touched on something that was really good, Jack. Some people, that’s all they want, and maybe that was her. There are … I’m not putting anybody down, but there are a lot of people that they can’t step aside and imagine not having paid-for benefits, you know, they want that security of two vacations a year, benefits are covered, dental included, you know, and they’re happy just having their job. There are people that want a job, and I respect that.
Jack Butala: Oh, me too. No disrespect, absolutely.
Jill DeWit: Maybe that was that nurse, and for her, it just freed her up to take one big, long, kick-ass … Oh, right, I can’t say that. Kick-blank vacation for a year, and that’s what she did. Then she’s gonna come back and get back into her nursing job, because she really enjoys it anyway, and that’s all she’s ever wanted to do. She knows that she can retire at X age and move into a nursing home and whatever, you know? Maybe that’s it for her.
Jack Butala: Right, and that’s fine. But that’s not how we operate here.
Jill DeWit: No. Then there’s the weirdos like us. I’ve been using that term a lot with my staff. Instead of saying, “Tell that idiot,” I just said, “Tell that weirdo.”
Jack Butala: What do you mean? You have issues with customers?
Jill DeWit: Oh, no. Never. What? No.
Jack Butala: You mean everybody who wants to sell us a piece of property is just fine?
Jill DeWit: Oh, easy. Oh man, and all the buyers, and every person I encounter.
Jack Butala: That’s good. That’s good to know.
Jill DeWit: No, obviously, yeah, but I’ve adopted the term weirdo right now, and everybody goes, “Yeah, that’s code for not good.”
Jack Butala: Bill Gates said, “I don’t see any reason why anyone in their 20s would ever take a vacation,” and I agree with that.
Jill DeWit: Yeah.
Jack Butala: Really, I do. So what do you expect? You expect nothing. That’s what I think. You expect to work harder. You should expect to feel a sense of freedom and accomplishment, which I think are incredibly important things to me, and a sense of building something.
Jill DeWit: Yeah. I was gonna … I like your freedom and accomplishment, because I was gonna say that that’s one thing that I’ve experienced, is sleeping well at night.
Jack Butala: Yeah.
Jill DeWit: Even though there’s a lot more responsibility, there’s more employees, we have more staff, we’re getting more office space, you know, we’re expanding. We’re introducing new products. But you know what? All of that doesn’t worry me. It further … We have more lines of business in everything, even though it brings more responsibility, it makes me even more comfortable. So I’m good.
Jack Butala: That’s why we fight. You know what, Jill? That’s why we do well together.
Jill DeWit: Oh, we fight? Because we fight well together? No.
Jack Butala: No. That is why we fight, why we do this every day, because in the end, like the long-term end, we have the same goal. That’s exactly what I want, multiple lines of [inaudible 00:12:51]. Multiple safety nets is what I call them sometimes, and in the end, a sense of huge accomplishment, which is what I think our show tomorrow is called. Pay It Forward.
Jill DeWit: Mm-hmm (affirmative). I love it. Thank you, Jack.
Jack Butala: Join us for the next episode, where it’s How to Behave When You Become a Millionaire week, and all week we discuss what to expect when you cross that line.
Jill DeWit: Nice, and we answer Richard’s question about purchase agreement expirations.
Jack Butala: You are not alone in your real estate ambition.
Jill DeWit: Good show. That was fun. I liked that.
Jack Butala: Me too. I think it’s a good topic. It’ll be a fun week.
Jill DeWit: Exactly. Hey, like our show? Please subscribe and rate us on iTunes or wherever you’re listening.
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