Coach Seat Rash (JJ 643)

Coach Seat Rash

Transcript: 

Jack Butala:                         Jack and Jill here.

Jill DeWit:                            Hi.

Jack Butala:                         Welcome to the Jack Jill Show, entertaining real estate investment talk. I’m Jack Butala.

Jill DeWit:                            And I’m Jill DeWit broadcasting from sunny southern California.

Jack Butala:                         Today, Jill and I talk about how Jill gets a rash when she sits back in coach. Coach seat rash.

Jill DeWit:                            I made this comment while we were talking about and I shared this funny story and you’re like oh, we’re going to do a show about that. And I’m like, oh boy. So, this … when we get into the meat of the show I’ll share where this came from and why it’s funny.

Jack Butala:                         That’s how her whole life goes. We should make a show.

Jill DeWit:                            That’s exactly true. We do that all the time. Over dinner and other odd situations.

Jack Butala:                         This is a whole show for you right here. That’s what we all say.

Jill DeWit:                            This is true. Exactly.

Jack Butala:                         Before we get into the topic, let’s take a question posted by one of our members on the jackjill.com online community. It’s free.

Jill DeWit:                            Okay. I have the question and then I have one of the answers here too. This is cool.

Reed J asks, “The numbers made me buy a legally land locked property. It’s a double your money situation, although I could drastically increase the value with deeded access. Does anyone have any experience on obtaining legal access?”

Well, Jason L responded, “I am following this because my wife and I want to buy land in a specific area on water. It has been plated but the builder stopped developing in ’09. We love the area but we don’t know how to get to the property unless by boat.”

Jack Butala:                         Okay. I chose these questions for serious real estate reasons. Because we are going to talk about the rash that Jill gets as she sits in the back of the airplane.

Jill DeWit:                            Okay.

Jack Butala:                         But first, both of these things, lack of access and water access only are incredible attributes to a select few people.

Jill DeWit:                            Right.

Jack Butala:                         So you know how when you look into internet marketing the first thing they say is, “What’s different about you? I know you’re going to market something. Jack, what the heck’s different about the way that you buy and sell real estate?”

Well, we buy rural vacant land, first of all, and no one else does. So, to get really niche is almost always a really positive thing.

Jill DeWit:                            True.

Jack Butala:                         Am I saying run around and buy land locked property and celebrate? No, no. You don’t want to do that. However, what intrigued me about this question or this comment is if the numbers work, right? So obviously he’s buying some property from somebody that believes they can’t get to it which is never the case. You can always get to it.

Jill DeWit:                            That’s my point too. He does say legally landlocked. He doesn’t say physically. That, to me, says I probably looked at it on the map and found a road, which I do all the time. And then, I’m like, this is great. So I know we can get there. We got that done.

Jack Butala:                         Exactly. So, does anybody have, he’s asking, does anybody have experience obtaining legal access? So, here’s my whole point? Is that the business you want to be in? Dealing with the city, calling other people who own property, trying to get an easement, a legal easement, and then get it recorded and do all … are you a developer?

Jill DeWit:                            Spending all the time, all the money.

Jack Butala:                         Or a general contractor? Or are you a bird dog buying and selling real estate when you know you can double your money selling it the way that it is, while disclosing I might add. Disclosing that you know now it’s lack of legal access. You know about it because you looked into it.

Jill DeWit:                            Yeah, he could double his money already.

Jack Butala:                         What would you do?

Jill DeWit:                            I would not do that. I would double my money. Say, here’s the situation. Here’s the phone numbers and who to call, if he even has it already. If not, I wouldn’t even … don’t bother getting it.

Jack Butala:                         That’s what I would do.

Jill DeWit:                            And then, flip it and run.

Jack Butala:                         Because that’s the business mindset.

Jill DeWit:                            Because that’s it. I mean, that’s the whole point where you’d worry. That’s the way Jack and I are. I don’t want to maximize profit on every one property because-

Jack Butala:                         That’s it, you nailed it.

Jill DeWit:                            -the extra four hours or four days I spend on it, I could have sold a lot more property in that time. That’s the business I want to be in.

Jack Butala:                         We all grew up in a culture, for some reason, where maximizing revenue on a real estate transaction, that person wins.

Jill DeWit:                            Right.

Jack Butala:                         Oh, I got the last dollar out of the house that I sold, my parent’s house, I got the last dollar. I got the highest … I sold that property for the highest on the block. Everybody, including me, for a long time, that what I … So it takes you two years to do that. What did you really get?

Jill DeWit:                            Exactly. Good point. Oh yeah.

Jack Butala:                         If you’re in the real estate business like us, you could have turned 50 properties in that time if you would have sold it for $20,000 less than the actual market value.

Jill DeWit:                            Dude, we all … I have a family member doing this right now, hanging out for price. And now we’re going on, it’s already been six months. Okay, six months of payments on a property because you’re holding out for price. At what point do you realize, wait a minute, the profit I’m … the money I make because I held out for this price, I lost because it took me a year to sell it. Hello, do the math. I don’t understand. Why do people not do math?

Jack Butala:                         I don’t think it’s math. I just think it’s … No one’s ever said what we just said.

Jill DeWit:                            Yeah. A $2,000 mortgage times 12 months is $24,000. Okay, let’s think about this. And you’re holding out to make $20,000 more on the asking price. Did you make any money? No, we waited there and you lost money.

Jack Butala:                         Even if you own the asset free and clear, I would argue, just get it done.

Jill DeWit:                            Right. That’s even more of a reason to get it done.

Jack Butala:                         There’s always more … especially if you’re in a group like this where you’re very capable of buying inexpensive property and then selling it.

Jill DeWit:                            Right.

Jack Butala:                         So, let somebody else do that.

Jill DeWit:                            So, then this guy was really … I don’t know if it was a response but what Jason said about buying on water. I think it was more like, hey I’m asking a question too because I want something like that. How do you?

Jack Butala:                         So, the response was, “I’m following this because my wife and I want to buy land in a specific area on the water. It’s plated but the developer stopped in ’09.”

So, it’s undeveloped land that’s been subdivided. Then, you can only get a boat to it according to this.

Jill DeWit:                            Because they to go that far.

Jack Butala:                         They must think this is the greatest piece of property there ever was. And I’m not blowing smoke here. There are people who would love to only be able to get go a piece of property by boat.

Jill DeWit:                            That’s pretty cool. There’s a lot of fishermen, campers.

Jack Butala:                         Yeah, they don’t want to be found.

Jill DeWit:                            You know what, I’ve owned property in particular in Oregon that I had …

Jack Butala:                         Really, remember that?

Jill DeWit:                            And they loved it. It was the coolest thing on the planet. There was a bridge, maybe. I remember that. Like very south of it, we were very confused about the access. But you can get there by boat and they thought that was the bomb.

Jack Butala:                         You can work anywhere with the internet the way that it is. You can build a little shack.

Jill DeWit:                            I like that.

Jack Butala:                         Me too.

Jill DeWit:                            There’s one for you and me personally. We have a vacation destination that we brag about because you can only get there by boat. You cannot get there any other way. There’s no airport.

Jack Butala:                         It’s the same thing.

Jill DeWit:                            There’s no road. And it’s in deep Mexico, and we love this place. And we want it to stay that way.

Jack Butala:                         Right. Please don’t say the name of it.

Jill DeWit:                            I won’t say it.

Jack Butala:                         I love that little island.

Jill DeWit:                            I know, it’s not even an island. It’s a piece of the …

Jack Butala:                         Is it a peninsula?

Jill DeWit:                            It’s a piece of it but you just can’t get to it because the jungles and stuff are just so deep. There’s just no other way.

Jack Butala:                         Today’s topic, coach seat rash. I just like saying it.

Jill DeWit:                            Oh my gosh.

Jack Butala:                         This is the meat of the show.

Jill DeWit:                            So, I heard this lie, or somebody was saying something years ago. We were having a discussion. I was talking to this individual about it. And it hit me, they were trying to talk about … We were trying to plan a trip or something and I said, “Wait a minute, wait a minute. Are you basically just trying to say that the seats in coach give you a rash?” And the person went, “Yes!” And I’m like, really, oh boy. What a snob. You know? Or whatever it was. It was so darn funny.

Well, fast forward to now and now I understand what that means. I really do. You reach a point in your life and this topic’s not really about flying first class all the time, although that’s important.

Jack Butala:                         It’s not for me either. Good, go ahead.

Jill DeWit:                            It’s about getting to a point in your life where you just don’t mess with those details. You’re not going to spend the time or the money to … or try to save a little bit of money to inconvenience yourself for something. It’s not worth it. It’s really not.

Jack Butala:                         Do you rationalize it or is this over now? Like when you book a ticket and you know, because we haven’t flown coach in I don’t know.

Jill DeWit:                            Yeah, I don’t do that anymore.

Jack Butala:                         Do you even think about it?

Jill DeWit:                            No, I don’t.

Jack Butala:                         I don’t either.

Jill DeWit:                            You know what’s funny? I do compare first class tickets though. I go, oh first class is cheaper over here than it is over here. I look at that.

Jack Butala:                         What do you mean? On different airlines?

Jill DeWit:                            Yeah. And the ones that I have access to their clubs and stuff like that. I look at that because that’s important to me too. If I have any down time I have a place to go and work or something.

Jack Butala:                         I used to justify it. I used to say, “Well, I don’t have a car payment so …”

Jill DeWit:                            I don’t do that, no.

Jack Butala:                         I don’t anymore.

Jill DeWit:                            You know how I justify it? I earned this. That’s exactly … No, I work really hard. You do too.

Jack Butala:                         I know.

Jill DeWit:                            I worked, it’s not crazy. And like I said, it goes to other things. It’s not just about that but it is about I want to get on when I want to get on. I want to relax. I want to be comfortable. I might be working while I’m on the plane.

Jack Butala:                         I don’t want to talk to anyone.

Jill DeWit:                            That’s true. It’s nice to not talk to a lot of people and just be the first off and get where I want to go.

Jack Butala:                         Yeah.

Jill DeWit:                            That’s it. You know, so the next thing is Jack, do you want to be jet rich? I mean, what do you want to do? Or can we say that at this point?

Jack Butala:                         As long as it makes sense from a tax standpoint, I’m all for it. When you sit there and you look at the situation and you say, I know this seems extravagant to the world but I’m either going to pay the IRS in tax or I’m going to fly around in a …

Jill DeWit:                            That’s true.

Jack Butala:                         It’s doesn’t ever make sense to own a jet but to do a jet share situation, possibly. And if I sit down with the accountant and we start down that path.

Jill DeWit:                            Which we’re going to meet them again in March.

Jack Butala:                         Then I think it’s okay. But do I think it’s okay to take after tax money and personally fly first class to like Japan where it costs $35,000? No, I don’t think that’s okay. But I think if there’s a tax advantage, yes, it’s okay. I don’t care how much money you have. I think doing something like that is not a good idea.

Jill DeWit:                            I’ve got to share something funny. Well, I think I shared it recently. I don’t know if I shared the whole story on that one of our shows a while back about when I had to take that trip and missed the flight. And I had the five ducklings behind me. The first thing I did after I did the best I could and got on the next flight and I had to sit there and wait. You better believe I was on the phone with NetJets and I was on the phone with everybody at that moment going, “We’ve got to talk.” So Jack, fair warning, I’ve already started those conversations.

Jack Butala:                         I know you have.

Jill DeWit:                            Because anybody with me here, one missed flight too many and it’s not your deal. Now you’re like , “All right, this might be worth it.” And by the way, prices are coming down. It used to be …

Jack Butala:                         I know. Why is that?

Jill DeWit:                            Isn’t that interesting?

Jack Butala:                         Is it fuel?

Jill DeWit:                            It’s just changed.

Jack Butala:                         I’m shocked at how cheap it is. Like number three’s flying to Australia soon and it was $1,500 bucks round trip.

Jill DeWit:                            Exactly.

Jack Butala:                         You know, it used to cost $1,500 bucks round trip to fly to Detroit from Phoenix.

Jill DeWit:                            Oh, I remember that too. And competition. So, it changes everything. Thank you. Well, you’ve done it again, wasted another 10 or 15 minutes listening to another Jack and Jill Show. Join us tomorrow when we discuss how my personal assistant break in period. You need to hear all about that.

Jack Butala:                         And to answer your questions should you have one, post it on the jackjill.com online community.

Jill DeWit:                            You are not alone in your real estate ambition. That’s fun to talk about.

Jack Butala:                         It’s fun trading lines with you.

Jill DeWit:                            Oh, good. I like that. Can you do this last line?

Jack Butala:                         I can.

Jill DeWit:                            Okay.

Jack Butala:                         Share in the fun by subscribing on iTunes or wherever you’re listening. And while you’re at it, rate us there.

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Jill DeWit:                            We are Jack and Jill.

Jack Butala:                         Information.

Jill DeWit:                            And inspiration.

Jack Butala:                         To buy undervalued property.

 

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