Millionaire – Define Your Next Goal – How Much is Enough (CFFL 567)
Jack Butala: Welcome to Land Academy. I’m Jack Butala.
Jill DeWit: I’m Jill DeWit.
Jack Butala: We show you how to buy real estate for half of what it’s worth.
Jill DeWit: And sell it on the internet really fast.
Jack Butala: We are Jack and Jill, and this is the Jack and Jill Show Two.
Jill DeWit: We are Jack and Jill, and this is the Jack and Jill Show Two.
Jack Butala: With over 15,000 completed transactions, we’re the experts at acquiring property.
Jill DeWit: Of all kinds, not just land.
Jack Butala: For half price, and flipping them for way more.
Jill DeWit: All right, let’s get this show started.
Jack Butala: Jack and Jill here.
Jill DeWit: Hey.
Jack Butala: Welcome to the show today. In this episode, Jill and I talk about millionaire. You know, it’s Millionaire Week. How to define … defining your next goal, and how much is enough? When do you stop? Do you ever stop? Before we get into this, let’s take a question posted by one of our members on the LandInvestors.com online community. It’s free.
Jill DeWit: Yup. I think I’m going to stop tomorrow. Just wanted to share that. I think I picked a day and it’s tomorrow.
Jack Butala: Jill, please don’t. Can you please give me two weeks notice like everybody else?
Jill DeWit: Yeah, no, sorry.
Jack Butala: Turns out we actually need you here. Like, all of us. The thing’s getting huge.
Jill DeWit: Jack, I’m tired. I think tomorrow is good, I think this is enough.
Jack Butala: You’re welcome to take weeks or months off, but I feel like we just can’t stop.
Jill DeWit: Oh, come on.
Jack Butala: Can you imagine? Oh, my God.
Jill DeWit: You got this.
Jack Butala: Can you imagine if we just stopped?
Jill DeWit: That would be funny.
Jack Butala: How many people would be like …
Jill DeWit: Do you know what, Jack? Could you …
Jack Butala: Not the show, but like our members.
Jill DeWit: You and I …
Jack Butala: You know, it would be like, what do you mean you stopped?
Jill DeWit: Away from our team, well me, you did four days, I did five days, where I was not in the office.
Jack Butala: I mean our members, not our employees. They’ll be fine.
Jill DeWit: Well I don’t even know. I mean, taking five days, I felt guilty. I felt like, I don’t know if they’re doing it, or doing well or not doing well, they’re not telling me anything. But I’m feeling a little guilty like they need us. So yeah, it is hard to stop.
Jack Butala: That’s over-related. I don’t have any of that.
Jill DeWit: You’re so silly. All right, Peter asked, when offering in high-demand areas how do you deal with a seller’s market or seller’s hold out for higher prices?
Jack Butala: So I’m going to infer a bunch of stuff here, like a high-demand area, do you think that’s like an urban area, Jill? Or do you think it’s like an area that’s received offers from multiple people?
Jill DeWit: High-demand, to me is not a lot of properties, higher prices.
Jack Butala: Like a seller’s market.
Jill DeWit: Yes.
Jack Butala: Like in a subdivision.
Jill DeWit: Bingo.
Jack Butala: That’s what I think, too. So how do you deal with the seller’s market? Oh, a seller’s market, he said it right there. Where sellers hold off for higher prices.
Jill DeWit: Yes.
Jack Butala: Well, there’s no science for that, but I’ll tell you what I would do, send more mail out. I would take that high-demand area, picture looking at a map, and you can sit there, a paper map, and draw the boundaries on where are the high-demand areas, because I can almost guarantee you, you’re going to go a little further out of those boundaries, and there’s going to be a lesser of a demand area. And then an even lesser demand area. And I would work those areas at the same time.
Jill DeWit: Isn’t that funny?
Jack Butala: But it all boils down to sending more mail out. Not to the same people, all right? Just more people, more sellers.
Jill DeWit: You can make it work, it’s up to you.
Jack Butala: That’s one of the differences between you and I and it’s a really healthy difference, is that you really want to make deals work and I just don’t care. I will just send more letters out.
Jill DeWit: “Jill, you want to help our children and I just don’t care.” Oh, boy. That’s funny. “Hey, I got them here, that’s it, man.”
Jack Butala: That’s what you said about the employees.
Jill DeWit: “Figure it out.”
Jack Butala: I don’t know what.
Jill DeWit: So here’s my thought. So you could do two things, Jack’s is, so go to a little bit different area. If it’s a seller’s market right here in this APN scheme, in the 101 APN scheme, move to the 102 and the 103 areas, it’s right next door and you can do just fine. And it’s still going to be a hot market. Someone has to have to drive two more miles, and they’ll probably do that. So, kind of what you’re saying, Jack?
Jack Butala: Here’s a story. Jill had a photo shoot yesterday, and the makeup person, the person that did her makeup, said, “Wait a minute, what do you guys do?” “We do this, we send a bunch of letters out, we buy a bunch of houses, we buy a bunch of land.” And she’s like, “You know? I saved up enough money to buy a rental house for cash, and I went in. There was a property on MLS, and I bought it. I submitted an offer, and it was a multiple-offer situation, it was an auction. And she said, “My offer was for less, but it was for cash.”
Jill DeWit: And it was up against some investors. They were not doing cash.
Jack Butala: And she bought it. They said ultimately they gave to her, just because it was a cash deal. It’s not just, if you’re in a place where it’s a seller’s market, make yourself stand out. Make something different about it, like waive the contingencies.
Jill DeWit: Jack, you’re coming over to my side! Making it work.
Jack Butala: Making it work. There’s nothing like, cash is king. We’ve all heard that a million times.
Jill DeWit: Let me run this by you, too. Well, here’s a thought, Peter. So let’s just say it’s a buyer’s market properties, so properties are getting … Oh, seller’s market. So properties are obviously getting snatched up quickly, right? So what if you offer a little more and you take a little less, but it sells in days, not weeks or months. Well, I like that, too. I would not have a problem being in a seller’s market, where I’m like, you know what? I offered a couple thousand dollars more but, oh my gosh, it sold so darn fast. I offered $2,000 more and I made $2,000 less, but so what? I cleared $25,000 in two hours. I’m good with that.
Jack Butala: And I didn’t have to clean out the basement.
Jill DeWit: Right. I did nothing to the property. I did nothing.
Jack Butala: That’s a huge thing. So when you waive contingency, if you ever talk to a realtor they all say, “You’re going to waive contingencies? What if there’s mold?” Do you think I’ll go to a mold class?
Jill DeWit: Apparently. And it needs a new roof.
Jack Butala: What if it needs … Well, I’m paying half of what the property’s worth. I really don’t care.
Jill DeWit: I can take care of that.
Jack Butala: They look at you cross-eyed. This is what I really think they think. “You’re disrespecting the system.”
Jill DeWit: I’m good with that.
Jack Butala: “You’re bucking the way that we’ve been doing this for a lot of years. You have no respect. You need to get the inspector in here. You have to satisfy your lender.” And you feel my middle finger going up? That’s what I think of that.
Jill DeWit: I hear you. I think that even before they get to that point, I get people that don’t even know this is even possible, which is, to me, amazing.
Jack Butala: That’s right.
Jill DeWit: It’s like someone believing that the only right, legal way to buy a car is to go through a dealer. “Don’t ever buy a car off Craigslist, that’s illegal, you can’t do that.” We all know that that’s not true. So people look at property that way, and I go, what the heck? It’s the same thing.
Jack Butala: Like milk is good for you. Governments and huge companies have spent a tremendous amount, billions and billions of dollars, in media time and sending messages falsely. So this is not a show about conspiracy, it’s not. Trust me, though, milk is not good for you. It’s good for cows. You do not need to buy a car from a dealer. It’s not the best thing to do.
Jill DeWit: Right.
Jack Butala: And you don’t need to buy a house from a real estate agent.
Jill DeWit: Exactly.
Jack Butala: Fastest way … this is Millionaire Week. Fastest way to get to a million bucks or 10 million or 50 million is to really rethink these things that we’ve all been taught for quite some time. Here’s another one. And the makeup girl brought this up yesterday. “You should get a mortgage because it’s good for your tax situation.”
Jill DeWit: Yeah.
Jack Butala: That cracks me up as a former accounting professional.
Jill DeWit: Well you know what? I was proud of her because she said she figured that out.
Jack Butala: Three or four hundred thousand dollar house, you’re going to save, I don’t know, $800. So yeah, is there a better tax situation? Yes. But here is how to cut to the chase so you can dramatically reduce your taxes forever. Start a company and start running money through it. And I don’t mean to illegally, I mean buying and selling real estate, buying and selling lollipops, I don’t care. There’s a lot of ways that you can dramatically reduce your taxes over just a W-2 paycheck situation. That’s where owning a house potentially can help you.
You know what, the whole world wants you to get married, so you get a marriage deduction.
Jill DeWit: Right. Have kids.
Jack Butala: File jointly. Now you’re head of the household.
Jill DeWit: Right.
Jack Butala: And what do you save, like $1,200?
Jill DeWit: Well, you have kids, there some money there, get some tax credits there. Let’s see, oh, and your mother-in-law moves in, there’s another mouth to feed. You get some credits there. Oh, we got a mortgage.
Jack Butala: Congratulations.
Jill DeWit: Oh, don’t forget the student loans.
Jack Butala: Congratulations, you’re up to your neck. And you’re hocked up in debt. You have to go to work so you can’t be out on the street committing a crime.
Jill DeWit: What the heck?
Jack Butala: So now you’re a citizen, you’re a perfect, model person in society, and that’s what everybody wants. My middle finger has been up this whole time.
Jill DeWit: How did Peter’s seller’s market thing go to this place?
Jack Butala: Peter Sellers?
Jill DeWit: No, Peter’s seller’s market. Not Peter Sellers.
Jack Butala: Oh, I don’t know. Jesus. I’m sorry. We’re like nine steps away from what we’re supposed to be talking about.
Jill DeWit: Exactly. We have a script? What the heck? There’s a show topic?
Jack Butala: If you have a question that you’d like to hear on the show, reach out to either one of us on LandInvesters.com, try it again. Today’s topic, to find your goal, and how much is enough? Is there a such thing? This is what my friend Jill said recently, “Is there a such thing as being too thin or having too much money?”
Jill DeWit: That’s funny.
Jack Butala: I can’t talk about the first one, but I can tell you that too much money is a bad idea, and here’s why. I don’t care what anyone says to you, and this is the meat of the show. The first time you start to make a tremendous amount of money, and you’re checking your bank balance, and you’re surprising yourself that there’s tons of money coming in, it’s very natural to start to think the rules don’t apply to you.
Jill DeWit: Sorry, I thought about you driving the other day. Actually, it was me driving the other day. Because I’m so sorry.
Jack Butala: Well, just forget about it. The rules don’t apply to Jill on the road.
Jill DeWit: I am so sorry. I didn’t mean to laugh at that moment, but that just really struck me because you’re right. You can get cocky really fast, and you can’t do that.
Jack Butala: You know why I do get off track on this show?
Jill DeWit: Right.
Jack Butala: Because of you.
Jill DeWit: Oh no, I just did it.
Jack Butala: Why are we talking about driving?
Jill DeWit: Because I do that. When you said the rules don’t apply to me, I use those exact words when I’m making an illegal U-turn. And every child has said, “What was that?” And I’m like, “I’m exempt.” I learned that from my dad.
Jack Butala: Whenever I meet people that don’t know Jill, that have been friends with me and then they meet Jill, this is how I introduce her. “This is my friend Jill, and I’m the actual voice of reason in this relationship.” And they all say the same thing, “Oh my God, you’re doomed.” Because both of us are no stranger to paving our own way.
Jill DeWit: Oh gosh.
Jack Butala: Let’s put it that way.
Jill DeWit: And then I think the next question is, how are you both not in jail somewhere in Mexico? Right?
Jack Butala: That’s actually a pretty good question.
Jill DeWit: Exactly. Because then it’s like, just don’t get caught. Just teasing.
Jack Butala: So how much is enough, Jill? Is there a dollar amount? Is it a lifestyle that you’re shooting for? What is it? Because I know what it is for me, and I know what my next goal is.
Jill DeWit: Gosh. You know? Do I have a limit? Is that what you’re asking me?
Jack Butala: Yeah, I mean, do you have a number in mind that you’re like, “Okay, that’s it, I’m putting my two weeks in”? How much is enough?
Jill DeWit: No. You know, when I can’t do it anymore, then it’s enough. When I really physically can’t do it, I’ll stop.
Jack Butala: Me too.
Jill DeWit: You and I talked about that the other day, and as long as we have our wits about us, what if I can’t do this and I’m just tired or something? I’m still going to be doing something, I’m going to be writing more books or, I’ll be doing something like that. I can’t imagine stopping. Can you, Jack? What’s for you?
Jack Butala: No. So what ends up happening, and I learned this from accounting, is you start to put, we’re at long passes, but you put stuff in buckets. You have a savings bucket, you have a play money bucket, you have assets that are not liquid bucket like classic cars, you make sure the kids’ college funds are all where they need to be, or overfunded, let’s say. You have legacy buckets to make sure the kids have enough, that you’re leaving your kids something.
Jill DeWit: Right.
Jack Butala: All this happens after you have no debt. And I have numbers associated with each of those buckets, but I’ll tell you the truth, they change. So do I sit around and say, in 24 months, if this bucket’s got X and this bucket’s got Y, it changes. There’s always a bigger boat you can buy, always.
Jill DeWit: But should you?
Jack Butala: But should you go nuts about it?
Jill DeWit: No.
Jack Butala: I don’t know. There’s a lot of psychological theories about that, about where you set your buckets is where you going to go.
Jill DeWit: Right.
Jack Butala: Like, I do not have any interest in, I’ll use boat analogies here, any interest in having a 500 foot mega yacht. I mean, ever.
Jill DeWit: Yeah. Do you know what’s funny about that? So here’s the thing.
Jack Butala: But 120 foot one, that’s going to happen. That’s happening.
Jill DeWit: Right. So here’s what I’ve noticed, when there’s things that you want, and I understand that, you know, a lot of people have different things, like, ” I want to own this, I’ve always wanted X,” and then you get there, and it’s like, “You know, I changed my mind, it’s not that important.”
Jack Butala: That’s what this week’s about. This whole week we’re going to use your Karmann Ghia.
Jill DeWit: I was just going to preach on that exactly.
Jack Butala: You have to tell the story.
Jill DeWit: Yes.
Jack Butala: This whole week is about taking the mystery out of having a ton of money. That’s what this is about.
Jill DeWit: Exactly, and what to expect because you’re on your way. I hope you’re on your way, or you’re there, and you’re either there or you can relate with this, or you’re on your way, and I hope you are, or you’re just really bored. Just kidding, I’m just joking. So, anyway.
Jack Butala: There’s a good chance of that.
Jill DeWit: You know, that’s true.
Jack Butala: You’re not alone. You’re not alone in your boredom.
Jill DeWit: Yes.
Jack Butala: There’s four or five other people listening to this right now.
Jill DeWit: Yes.
Jack Butala: They’re just as bored. They can’t reach the knob.
Jill DeWit: Yes. Okay, so here’s the story. Right before my birthday, my birthday is in July, July 5th as a matter of fact. So right before my birthday, I saw this really cute white Karmann Ghia with a black top right by our office, and I hadn’t seen it before. I’m like, oh my gosh. So I felt compelled to leave a note on the person’s car, going, “If you are in any way interested in selling this car, call me.” And a couple hours later, I get a text message, which was really nice, saying, “Thank you so much, I really appreciate, you’re not the first one that’s done this,” and I’m like, “I’m sure.”
And, “I love this car, I’m not interested in selling it.” I’m like, “All right, I get it. Well, if you change your mind, let me know.” He was like, “Yeah, I know. There’s a few things I’m going to do to it, I love this car too.” So I explained this story to Jack, so Jack, bless his heart, looking for a birthday present for me, gets on it and starts finding cars around. In neighboring states where he could go get me a Karmann Ghia.
Jack Butala: Convertible.
Jill DeWit: And even better, in better shape.
Jack Butala: Late 60s, early 70s.
Jill DeWit: A little more money.
Jack Butala: Very specific color.
Jill DeWit: But just ready to go.
Jack Butala: Less than five grand.
Jill DeWit: Right, and I’m like about to pull the trigger.
Jack Butala: It checked all the boxes.
Jill DeWit: It did. And he almost pulled it, you really, you had calls in to people that it was about to happen, and it was on my birthday that you said, “Alright, I got to tell you. Here’s what’s coming.” And I think he just wanted to one more time run it by me, and I said, “Oh my gosh, that’s so great. Can I think about it?” Remember? And I spent the day, and I’m like, “You know what, sweetheart? I kind of changed my mind.” You know, it could be a project, but I really have enough on my plate right now.
Jack Butala: And we have enough cars.
Jill DeWit: I got a little excited, I got a little emotional, I’m a girl, we do that. And then when I really thought about it, I said, you know what? A I appreciate it, I felt bad because you put so much work into it. You’re were really trying to make me happy, and it was so sweet.
Jack Butala: That’s like a vacation for me, looking for a classic car.
Jill DeWit: Yeah, okay, thank you. And you had friends of ours lined up to go pull the trigger, and help, and get it here, and ship it, and I’m like, “Yeah.”
Jack Butala: To finish the story …
Jill DeWit: I said no.
Jack Butala: We ended up at a jewelry store.
Jill DeWit: Yeah, that’s true.
Jack Butala: Paying for diamond rings and stuff. Which is fine, and you were smiling the whole time.
Jill DeWit: I was.
Jack Butala: That’s all that matters.
Jill DeWit: Thank you. But the point was, you think you want it, and then you’re right there staring at it and you’re going, you know what? I don’t want it after all, things have changed.
Jack Butala: So all the stuff that you build up in your head, could be a lifelong build up, like having a ton of money, or having children, or getting married. Now, I’m not joking about this, those are the top three in my opinion, after talking to a lot of people and doing research for this book that I’m writing. They are massive, they are never what you expect. They are never, ever what you’d expect. They have, just like everything else, they have really awesome highs and awesome lows, but it’s just like everything else. If you line up three products that you bought, you watch three commercials, you go to the store, you buy them, one of them works, the other two, eh. One of them probably fails. That’s just what having a ton of money is like.
You hear these stories about these athletes who are really young, they’re in their 20s, early 20s, blowing through money because they have this thing built in their head, or I don’t know where they learned it, probably television, that if your paycheck’s $80,000, you spend $90,000.
Jill DeWit: I honestly think, I was just thinking about this, is I think they go a little crazy. I think some people …
Jack Butala: I would’ve gone crazy at that age.
Jill DeWit: It doesn’t … they don’t know how to handle it.
Jack Butala: Absolutely.
Jill DeWit: And we’ve all seen, especially those teen pop stars, I don’t know what the new term is for it, I sound old now, but man, if I was on the Disney Channel and I went from being a nobody in 4th grade to being a megastar in 10th grade, I might go a little nuts, too. And that’s hard to handle.
Jack Butala: Will Smith had a hit record in high school, and he filed bankruptcy, like, two years later, and then he was in trouble with the IRS. So he created an acting career, literally, he created an acting career on The Fresh Prince of Bel-Air to pay the IRS.
Jill DeWit: To dig himself out?
Jack Butala: Yeah.
Jill DeWit: That’s good.
Jack Butala: So people go nuts.
Jill DeWit: What was the hit song? I don’t even remember?
Jack Butala: I don’t know.
Jill DeWit: That’s so funny. So how much is enough? Only you can decide?
Jack Butala: And it moves a little bit. But you should, back to my boat example, before we talked about Karmann Ghias, there’s a pretty wide variance between a 500 foot yacht and a hundred foot yacht, but yeah, but stay in the neighborhood, is what I’m saying. Don’t veer from it too far.
Jill DeWit: It’s okay to want some things and have them, right?
Jack Butala: Absolutely.
Jill DeWit: All right.
Jack Butala: As long as you’re giving back, like we talked about yesterday, and some other stuff’s going on.
Jill DeWit: Yeah, don’t skip the kids’ college education to buy a Bentley.
Jack Butala: Have a goal. Have goals. It’s imperative. You should sit, if you don’t have goals, or even if you do, get out the pad and paper as often as you can. Even hopefully with your spouse and say …
Jill DeWit: Definitely with your spouse.
Jack Butala: This is our next goal. All kidding aside, this is our next goal. Is this your goal too? And if she says or he says, “Heck no, I just want to go to Japan,” then you might have a problem.
Jill DeWit: Maybe you can do both.
Jack Butala: Yeah.
Jill DeWit: I want to add, this is one thing that you and I do and I think is important in this situation, you ask me, “Tell me what you really, really want,” and we talk about that. We both share what we really, really want to make sure …
Jack Butala: How to get it. Let’s take a few steps.
Jill DeWit: We’re not discounting the other person’s dreams or goals or whatever, because you’re in this together.
Jack Butala: Exactly.
Jill DeWit: So thank you, Jack.
Jack Butala: Join us in the next episode where we discuss millionaire, and how to stay on top.
Jill DeWit: And we answer Heather’s question about testing counties for new investors.
Jack Butala: Excellent, testing counties, I love it. People don’t talk about that enough.
Jill DeWit: It’s going to be good.
Jack Butala: You are not alone in your real estate ambition. Good show, Jill.
Jill DeWit: Thank you.
Jack Butala: Funny stories.
Jill DeWit: I know, I like that, Story Time with Jack and Jill. We haven’t done that in a while.
Jack Butala: Really, it’s story time with Jill.
Jill DeWit: Thanks. Hey, you like our show? Please subscribe and rate us on iTunes or wherever you are listening.
Jack Butala: Information and inspirations are by undervalued property.
Jill DeWit: We are Jack and Jill and this was the Cash Flow from Land Show.
Jack Butala: We’re the experts at acquiring property …
Jill DeWit: Of all kinds, not just land …
Jack Butala: For half price just so we can flip it for way more …
Jill DeWit: And really fast. Thanks for listening. You are not alone in your real estate ambition.
If you have any questions or comments, please feel free to email me directly at jack@LandAcademy.com.
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