Millionaire – What You Own (CFFL 569)
Jack Butala: Jack and Jill here.
Jill DeWit: Hi.
Jack Butala: Welcome to the show. In this episode Jill and I talk about millionaire. It’s our final episode in a five-part series. This one’s specific about what do you own. Do you own a ton of real estate? Do you get a better brand of underwear?
Jill DeWit: Do you have an airplane?
Jack Butala: Yeah, we talk about it. Before we do, though, let’s take a question posted by one of our members on the landinvestors.com online community. It’s free.
Jill DeWit: Okay. Marcy asked, “I have sent out mailers in the past and am now looking to send out more. But the issue is I have more data and I’m hand writing my letters.” Uh oh. “But I’m not getting responses back.”
Jack Butala: There you go. She answered her own question.
Jill DeWit: Let me see. I’m hand writing my letters and I’m not getting responses back. Okay. “I have received return mail stating, ‘Stop sending this scam mail.'” That’s funny. “I love the idea of a hand-written letter because I feel it’s more personal. But how can I get more response with my letters? What information do you suggest that the letter or postcard contain?” Both of us are like, “Pick me! Pick me!” Go.
Jack Butala: There’s a guy in our group who started exactly where you are, Marcy, and did this exact same thing. This is about two years ago. I talked to him recently, and here’s how the conversation went. I said, “Man, I cannot believe how far you’ve come in such a quick amount of time. I really would like to share this with the whole world. What’s different about you? How did you do this so quickly?” This is what he said, “I put myself aside and what I think was right and I followed the system that you guys put together to the letter. Right down to the letter. I used the same format you guys did, I used the companies that you did, all the support companies, and I put all this pre-notion stuff and I did exactly what you said. That’s what I did.”
Jill DeWit: Even when it felt wrong.
Jack Butala: Right.
Jill DeWit: Didn’t make sense, but I did it. I know exactly who you’re talking about. I remember that show.
Jack Butala: If you want to get creative, and I am all for getting creative, I want you to get creative with two things. Where you’re sending the letters out, very, very creative with that. The more creativity, the better. Which subdivisions, which counties, and how you’re pricing it. But I do not want you to veer very far from how many letters you need to send out, whether or not there needs to be a purchase agreement involved, whether or not you’re hand writing letters, whether or not you put a cute little watermark right down the center of your letter because you think you’re going to get a better response, Cathleen.
Jill DeWit: That’s for Cathleen. This is Marcy’s question.
Jack Butala: I’ve heard from other people that hand writing envelopes is the only way to go. You know what … Go ahead, Jill.
Jill DeWit: Can I weigh in on this?
Jack Butala: Go ahead.
Jill DeWit: Here’s my thoughts.
Jack Butala: You’re never going to be able to scale this thing up if you’re writing stuff.
Jill DeWit: That was what I was going to say. Marcy, do you want to buy one property a month, or do you want to buy one property a day? If this is a hobby for you and you’re not in this for anything more than, “Yeah, you know, it’s just something I do on the side. I really enjoy it. I love talking to sellers and just spending my time getting to learn the countryside”-
Jack Butala: And carpal tunnel syndrome.
Jill DeWit: Right, and carpal tunnel, that’s a perfect one. Then keep on hand writing those letters. Because that’s all you’re going to have time for. If you’re hand writing letters, how many can you do? 10 a day? Think how much you could be doing in that 10 times a day.
Jack Butala: Even 100. We have a competitor, he’s not a competitor, someone else who teaches how to buy and sell land. It’s entirely different methodology, and he thinks that you should send-
Jill DeWit: A few a day, or a few a week.
Jack Butala: … 10 or 20 letters a day. After work, you get a little printer out and set it up on your kitchen table-
Jill DeWit: Yeah. I’m so-
Jack Butala: … and it’s very effective to buy one property, like Jill said. One a month or something.
Jill DeWit: But here’s my fear. Let me finish this, please, Jack. People see through this stuff. That’s my thing. If you’re going to send me, look, come on, the stupid yellow letters where it looks like it’s hand written and you think you accomplished something because it’s hand written, we all see right through that. We all know what that is. If you put a dollar in there, we all see right through that.
Jack Butala: Oh, I hate that.
Jill DeWit: Every little gimmick you do. When you send me a gimmick, now I don’t trust you. Immediately it’s like you’re a used car salesman. I now have something against you. Honestly, if you send me a dollar I might not even believe it’s a real dollar and throw it away because I don’t trust you. This is weird. That’s what you have going against you versus a really professional, “I’m running a business here, and I’m interested in your property. My business is interested in your property. If you’re interested in selling it, please contact us back or sign this and send it back. Great. If you’re not,” we all know they throw it away. Big deal.
The big thing is, too, the time and the money, I just had a really nice long conversation a week or two ago with a doctor. I can’t remember what state he was in, but he and his wife had spent a lot of time, and I think I talked about this a couple weeks ago too. I pointed out, “Gosh, you only have so much time to spend on this. You’re wasting a lot of time hand writing letters. You don’t know if the addresses are going to be correct or not. When you-”
Jack Butala: There’s no way …
Jill DeWit: The money.
Jack Butala: You can’t run a mail merge. The whole reason this works, and please look this up on YouTube or whatever, is because we utilize a technology between Microsoft Excel and Microsoft Word to run what’s called a mail merge so that what you’re hand writing is all in a template and then a variable, like the price, so you can literally send out 10,000 offers in an hour.
Jill DeWit: And make them look like they’re unique and personal to that person. Maybe that’s part of it. You know what, Jack, you might be right. There might be people that know that it is that easy to make it … Like, I want to make it to Mr. Smith and I want him to know I’m offering this price on this-
Jack Butala: Yeah, she just doesn’t know that that’s possible.
Jill DeWit: … property. Yeah, we can totally make it look like that and get out 2,000 at one time, not 20 at one time.
Jack Butala: Or 2 million.
Jill DeWit: Exactly. It’s cheap and efficient, and that’s a better use of your time. The point is, get them out there. Now, the motivated sellers, the people that respond, that’s the use of your time, going, “All right, now, they like my offer price. Now do I really want to buy it? Now I need to go do my homework and see what it’s all about, what are the taxes owed on it, if any,” whatever. That’s how you should be spending your time.
Jack Butala: This is a business that we’re in, and this is how you should think to be successful. You want to send out 20,000 mailers. I’m not saying you should do this right out of the box, but we have members that do this and this is how Jill and I do it. I’m going to send 20,000 mailers out. I’m going to spend almost a week pricing. I’ve already chosen a place, and the whole thing. 20,000 mailers costs about $11,000 to send out, ballpark. Oh my God, $11,000, Jack? I don’t have that money. If you don’t have that money, then please don’t do this.
Of those 20,000 mailers that we’re going to send out, we’re going to buy about 10 properties. These are housing numbers now. For land, it’s a lot more. But I can almost take it to the bank that we’re going to buy 10 properties. If they’re in certain markets, we’re going to net about $10,000 per property, sometimes a lot more, most often a tremendous more. 10 properties, $10,000 bucks, is 100 grand.
I spent $11,000 to make $100,000. I never went to go see a property. I never signed my name. All I did was concentrate on pricing and making sure that when people call back the phone’s getting answered and when they go check us out on the internet they have a good experience. Like, “Yeah, these people aren’t crooks.” There’s no real mystery to this. Where people get really hung up is they don’t take what I just said seriously. They think they have a better way.
Jill DeWit: Yeah, you’re right.
Jack Butala: They think that writing letters, I don’t have to spend $11,000. Jack, I only want to spend $500. Does it work? Does it work? Please, please tell me it works. Please tell me. It doesn’t work. It doesn’t work if you write your own thing out.
Jill DeWit: It’s a hobby, if you really want to work on your penmanship and carpal tunnel.
Jack Butala: Do you have to spend $11,000? No.
Jill DeWit: It’s kind of funny, the whole carpal tunnel thing I didn’t even think about till you brought that up. That’s really funny. That should be the title of a show.
Jack Butala: You want all the secrets of [crosstalk 00:08:50]?
Jill DeWit: Your offer’s not carpal tunnel.
Jack Butala: You don’t need to listen to the rest of the shows. You don’t need to buy our education. All you need to know is what I just said. You can get involved with us and you can ensure your success, virtually ensure your success, getting involved with all of our stuff. Or you can, Marcy, continue doing what you’re doing and hope for the best.
Jill DeWit: No, and I like what you said about Luke, which is you got to get out of your own head. This is one of those pre-conceived things, like, “I got this.”
Jack Butala: It was Tory, but okay.
Jill DeWit: Oh. I thought it was Luke. Luke said the same thing, though.
Jack Butala: Oh, did he?
Jill DeWit: Yeah. I’m totally serious.
Jack Butala: I didn’t know that.
Jill DeWit: Yep, he did. He said, “I just said, I had all these thoughts and I had to just ignore them,” so yeah.
Jack Butala: [inaudible 00:09:32] is real creative, and he’s killing it. Yeah, the time to get creative is after you’ve got the basic stuff down. If you want to be a professional baseball player, you can’t get ultra creative about your stance when you’re in the batter’s box. You can add some flair to it after you’ve pounded out a bunch of home runs in your career, or whatever it is that you’re going for. But in the beginning, the basics are the same. If 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, the final edition of millionaire, the fifth edition. What should you own? What are the habits of your millionaire? Do you collect Lladro statues? Does that make you a millionaire?
Jill DeWit: Where’d you get Lladro?
Jack Butala: Oh, Lladro. Sorry.
Jill DeWit: Yeah, yeah. That’s good.
Jack Butala: Do you collect real estate? Ding ding. Jill and I were on a very large boat recently with a bunch of people, and I asked the captain, “Who owns these boats? It’s ridiculous.” He said, “They’re all in real estate,” and I said, “Oh. Thank you.”
Jill DeWit: Exactly. That’s really darn funny.
Jack Butala: This is in the middle of Hollywood. I thought he was going to say, “Oh, this is Steven Spielberg’s boat. This guy’s an actor over here.” No, no. They all in real estate.
Jill DeWit: I was like, “That’s funny. That’s what we do,” and the guy’s like, “Ding ding.” Then he has dollar signs in his eyes looking at us. It was hilarious.
Jack Butala: This is the meat of the show. Like every episode, I have a lot to say.
Jill DeWit: Oh my gosh.
Jack Butala: First, I’m going to tell a story, the story of, if you don’t know it, of Ben Affleck and Matt Damon. They’re actors. I hope you know who they are. Jason Bourne.
Jill DeWit: Was that for me?
Jack Butala: No.
Jill DeWit: I’m sorry. Okay.
Jack Butala: No, I know you know who they are. It’s for the listener.
Jill DeWit: Thank you.
Jack Butala: These two kids get together one day in a bar in Boston. They have three nickels between them and they write a script called Good Will Hunting. They pull a Rocky Balboa/Sylvester Stallone. They send it to somebody in Hollywood and they say, “Look, we know this script is great, whatever. There’s no way we’re going to sell the script unless we’re in the movie.” This is exactly what Sylvester Stallone did with Rocky. After getting rejected 17 million times, somebody decides to gamble on them and it worked out for them. It worked the best. They made the movie. If you haven’t seen it, it’s a great movie. They were on their way as being actors in Hollywood.
After 10 movies or so, now they’ve just got money pouring in. Where do they live? I saw an interview, and the interviewer said just that, “Now that you’ve got all this money pouring in and this is going on, what’s it all about?” Matt Damon says, “Well, the first thing I did was got rid of every single thing that I own. Every single thing. I live in a hotel, and if I need something like a toothbrush, because I don’t own a toothbrush, I call down and they give it to me.” That stuck with me, obviously, forever.
Jill DeWit: I’d never heard this story, even from you, which is very interesting to me.
Jack Butala: What should you own when you start hitting these milestones in your life? Take it from me, you should own less and less and less stuff. If you do own it, please make sure you don’t have any debt on it.
Jill DeWit: I was just thinking about Jill’s mementos.
Jack Butala: Okay, I would love for you to share that story. I own so little, the smallest amount of stuff anybody on the planet could own.
Jill DeWit: Well, you’re ahead of me in that.
Jack Butala: You can tell the Jill’s mementos, please. Bear in mind, this show’s not really about us. It’s about helping.
Jill DeWit: That’s true. Sorry. Okay. I know, but … My Jill’s mementos story is I really have pared everything way, way down. You’re right, Jack. I have one car. You have two, well, three vehicles. I have one. But I am on this plan. What do you really need? I guess that’s it. What do you want? What do you need? I understand there’s a few things that we all try to hang on to, and that’s where Jill’s mementos come in.
Jack Butala: Do you need a new dresser?
Jill DeWit: Do I need a new dresser? No.
Jack Butala: Not you, not you.
Jill DeWit: Oh.
Jack Butala: Do you really? Does anybody need a new dresser really? How about a new vacuum cleaner?
Jill DeWit: Right. What’s wrong with the one that’s there?
Jack Butala: Do you need a vacuum cleaner?
Jill DeWit: I know. Just because it’s the cool latest and greatest. I have three tubs, and they’re labeled Jill’s mementos.
Jack Butala: I read a book. Okay, go ahead.
Jill DeWit: No, and it’s mostly photographs and I need to condense it. Hey, if you have a few things like that I want to tell you it’s okay. That’s it. Nevermind.
Jack Butala: I read a book a few years ago about this topic, and it was along the lines of the Millionaire Next Door. It was more about saving money and the decisions that you make with a regular job and when you’re 60 you retire. It wasn’t that book, but it was like that. The guy said, and he’s right, the number one thing that you can do that will screw yourself up financially in your life is change stuff. Then he went on and said a lot of examples like this. Instead of getting a new car, repair your old one. Instead of getting a new house, pay off the one that you have. Moving is tremendously expensive. Anybody who’s ever moved a couple times in one year, you know how expensive and time consuming it is, and traumatic for everybody involved.
So just don’t make a lot of changes. He doesn’t say don’t take risks. He said don’t change stuff, and he’s right. How much does it cost to really go clothes shopping? It’s silly how much it costs, and it’s not that you spend money on new clothes. You’re taking your head out of what you’re really supposed to be focused on. Maybe what you’re supposed to be focused on is your kid’s baseball game that day. Shopping itself is ridiculous. If you [inaudible 00:15:27] a couple hours a week and you want to treat yourself because you’re into that, I get that. Now it’s leisure time. It’s not actually shopping. But change and material stuff will sink the ship. That’s my whole point to the show here.
Jill DeWit: Do you think that motivates some people?
Jack Butala: Shopping?
Jill DeWit: Just stuff.
Jack Butala: Like, “I want to get a Ferrari”?
Jill DeWit: Yeah. I don’t know. Even if you give yourself a little reward that it motivates you to keep on going?
Jack Butala: If your little reward is a expensive piece of chocolate, I think that’s outstanding.
Jill DeWit: I don’t know.
Jack Butala: Here’s the real deal for me personally. I have never suffered financially. There’s only been a couple of times in my life where I’m like, “Man, this is a mess.” I’ve never really wanted or saw the value in, and I was not raised this way, in material possessions. Do I have some stuff, like some quirky stuff that would probably seem crazy to most people? Yeah. I have a 50-year-old car that I’ll never part with. But I paid half for that.
Jill DeWit: Let me run this by you, because I want you to think about this, please, Jack. I think that’s a mindset. I don’t think that’s a fact. Because you were not hounded. Your dad was not like Donald Trump’s dad, who handed you a big chunk of money so you never had to think about it. You really made your own way. But you see it as you never suffered financially. I see it as that’s a mindset. Nobody set you up.
Jack Butala: I never suffered financially because I never really wanted anything.
Jill DeWit: But, whatever it was, you’ve always known how to live within your means.
Jack Butala: Yeah, that’s true.
Jill DeWit: You know what I mean? You were always pushing forward. I’m trying to give you a compliment.
Jack Butala: Thank you.
Jill DeWit: I just thought that was a very interesting comment for you to make, because it sounds like you say, “Oh, I never suffered financially,” which makes me think, like, “Well, I’m a trust fund kid,” and we all know you’re not.
Jack Butala: No.
Jill DeWit: I think that’s what the … You’re not a trust fund kid.
Jack Butala: I put myself through college. I paid for my own college-
Jill DeWit: That’s what I mean.
Jack Butala: … in the late ’80s. This is not about-
Jill DeWit: Some people see that as suffering. Some people see that as suffering, though.
Jack Butala: Shut up. Really?
Jill DeWit: Yes.
Jack Butala: That’s a feather in my cap.
Jill DeWit: Come on. People paying for their own stuff nowadays, like, “Oh, I had to save up and buy my own car. That was hard.” I mean, come on.
Jack Butala: That’s crazy talk.
Jill DeWit: People see things differently. Maybe they don’t see it as suffering, but they certainly weren’t handed it and they see it as a lot of work, where you see it as that was the way it’s supposed to be. You know what I mean?
Jack Butala: Mm-hmm (affirmative).
Jill DeWit: You didn’t know any other way, and I think that’s great. So I just wanted to compliment you on that.
Jack Butala: Thank you, Jill.
Jill DeWit: You are very welcome.
Jack Butala: I know some stuff motivates you.
Jill DeWit: Yeah.
Jack Butala: Material possessions. I have to tell you, of all the women on the planet, I think maybe you’re the best with money ever.
Jill DeWit: Thank you.
Jack Butala: I’m serious. There’s a compliment for you. But I do know we have set together, and we do have, milestones, financial milestones where you and I have specifically gone and bought some jewelry that you’ve always wanted. Brand new jewelry, paid too much for it. We know we’re going in, paying too much for this, but it’s a reward. I don’t think that there’s any issue with that.
Jill DeWit: No. Thank you.
Jack Butala: If you do it every week, there’s a huge problem.
Jill DeWit: Right. You’re going into debt or whatever something, now we got some problems. But like a reward, because you know what, that might motivate you, because there’s a few things like that that motivate me.
Jack Butala: I thought this topic was show-worthy and I thought it was worthy enough to close on it, close the whole millionaire week concept on it because I really believe that people because of television, for a lot of reasons, believe that having a lot of money means you have cooler stuff, you have better brands of cars or clothes or whatever. Once you cross the line and you keep crossing it and raising the bar, I’m telling you it just becomes really silly, all of it.
Jill DeWit: I think that you have to really look inside yourself and do what you personally want to do or don’t want to do and own what you want to own. It’s like no one’s going to look at you differently because you drive X car. So don’t think that you need that.
Jack Butala: Only you are. You’re going to look at yourself differently. That’s it.
Jill DeWit: Right. What you own has to be really personal to you. For Jack, and I appreciate that, he’s like, “I don’t want that, I don’t want that, I don’t want this.” I’ve been trying to buy you an expensive watch but you don’t want one.
Jack Butala: No, I don’t want anything like that.
Jill DeWit: I do like expensive watches, but it’s personal to me and not to you, and that’s okay. Right?
Jack Butala: Yeah.
Jill DeWit: That’s the thing. I guess for me, how I want to close this is do what makes sense to you. I always say what sings to you, and only you, because you’re not trying to impress anybody. Who cares what anybody else thinks? It’s what you want. You worked your butt off to get here now, and you want to be secure and your people happy. If you want some nice stuff, go get them. If you don’t, you just want a huge bank balance, do that.
Jack Butala: If you’re in a committed, meaningful, positive relationship, you don’t have anybody to impress anymore. All that’s just a lot of that … For guys, anyway. It really stops.
Jill DeWit: Really. That’s nice.
Jack Butala: I’ll tell you the worst thing you can do once you start making a pile of money, because that’s what this whole week was really about, is start sharing it with your kids. If you want to create a massive lifelong problem for your children, give them what they want. Don’t make them work for it.
Jill DeWit: That’s true.
Jack Butala: That’s a disaster. I’ve seen it happen over … I can’t count the number of friends on both hands that Jill and I have where their kids now are living with them because some version of what I just said happened.
Jill DeWit: They didn’t appreciate it-
Jack Butala: It’s not just for the material stuff.
Jill DeWit: … and it went sideways.
Jack Butala: Not just material stuff. Make your own bed, or whatever. I don’t want to sound preachy, but when you come in … I’m going to close with this. When you come into a pile of money, just don’t change. You came into it for a reason if you earned it yourself. Whatever got you there, stick to that. An expensive watch or a new car, any of that, it might be a short-term high, but in the end it just doesn’t matter. Happy wife matters, and kids that get good grades matter. That’s what I think.
Jill DeWit: Thank you, Jack.
Jack Butala: A house on the beach doesn’t kill anything.
Jill DeWit: Yeah, it doesn’t. But you know what, it’s a lifestyle.
Jack Butala: Join us in the next episode where we discuss long-term planning.
Jill DeWit: Oh.
Jack Butala: We kind of talked about that. Well, we talked about don’t own stuff. Oh, well you can collect a lot of real estate if you want to.
Jill DeWit: Oh, that’s coming. That’s going to be really good. You want that. And we answer Steven’s question about your options when a buyer contacts you after a purchase agreement has expired.
Jack Butala: You are not alone in your real estate ambition.
Jill DeWit: Okay, this week was fun. You know why? This was Jack’s version of Jill’s spiritual week. If you put millionaire in front of it, Jack will talk about anything.
Jack Butala: That’s right.
Jill DeWit: I’m going to start doing that. I’m just going to start using that. Hey, we need to have a millionaire discussion please. “Okay, I’m in.”
Jack Butala: That’s some classic stuff.
Jill DeWit: Could you imagine? I would do that. If I put that on your calendar like, “Partners meeting. Discuss millionaire options,” I could sit down and talk about anything and you would just show up to the meeting. You wouldn’t ask me any questions. You would just show up, like, “I don’t know what this is about, but I will be there.” That was good.
Jack Butala: That was a lot of fun. It’s no secret. Jill and I are starting a … We’re putting the final touches on the Jack Jill Show.
Jill DeWit: Yeah.
Jack Butala: It’s where we talk, not so much about real estate all the time, but real estate. Well, you can’t help but talk about real estate and how to buy it and how to sell it, how to do it correctly and not. But answer more nebulous, not nebulous, but what we think might be helpful.
Jill DeWit: Bigger picture.
Jack Butala: Bigger picture. That’s a perfect way to put it.
Jill DeWit: And help people in other businesses too.
Jack Butala: Sure.
Jill DeWit: Not just ours.
Jack Butala: Like marketing and how to use Google correctly and YouTube and how to sell real estate really effectively, how to collect a real good buyer’s list, a little bit more broad topics that I think will generate a little bit more laughter and entertainment also at the same time.
Jill DeWit: I love it. Hey, so back to this show. If you like this one, you’ll love the next one. Please subscribe and rate us on iTunes or wherever you’re listening.
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.
I would like to think it’s entertaining and informative and in the end profitable.
And finally, don’t forget to subscribe to the show on iTunes.