Land Investors Show 700 (LI 700)

Land Investors Show 700 (LI 700)


Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Happy Show 700.

Steven Butala:                   Welcome to the Land Investors Show, Show 700. Entertaining land investment talk. I’m Steven Jack Butala.

Jill DeWit:                            And I am Jill DeWit, Show #700, broadcasting from sunny Southern California. I can’t believe it’s 700.

Steven Butala:                   Today Jill and I talk about this Land Investor Show, Episode #700. Jill and I had a little misty moment right before we turned the microphones on. I truly can’t believe.

Jill DeWit:                            Remember the times that I wanted to quit on Show #48, #148, #62, #91, #312 … Just Kidding.

Steven Butala:                   #999. #698.

Jill DeWit:                            Yeah, that’s right. Laugh, Jill. And today I’m here for this show.

Steven Butala:                   It’s horrible.

Jill DeWit:                            I can’t wait to say how this all started, how I became-

Steven Butala:                   The whole thing was-

Jill DeWit:                            Part of it.

Steven Butala:                   My idea, and we’ll get to it in a minute.

Jill DeWit:                            Yes.

Steven Butala:                   But let’s take a question first, posted by one of our members on the online community. It’s free.

Jill DeWit:                            All right. I haven’t seen a question from this person in a while, and it’s really nice to see. So, hello Michelle. Michelle asks, “After two months on Ebay-

Steven Butala:                   Two rounds.

Jill DeWit:                            “Two rounds,” excuse me, “On Ebay, I finally got my first terms deal. It’s a .26 acre lot in Cocoa, Florida, seven miles away from Cocoa Beach. I bought it on a tax [inaudible 00:01:24] auction for $3,390.00. I sold it on terms for $10,000.00 with 5% interest. Down payment, $1,052.00-“

Steven Butala:                   I love all these numbers. It’s awesome.

Jill DeWit:                            Thank you so much, Michelle.

Steven Butala:                   It’s real.

Jill DeWit:                            “Monthly payments of $168.86-“

Steven Butala:                   Nice.

Jill DeWit:                            “For 60 months. If I get tile insurance before they pay it off, which costs $2,000.00, I’ll still be at $4,000.00 profit. The buyer asked this question: “Can we go by a standard amortization chart? That way, if I pay a chunk over the amount owed, it will be easy to calculate exactly where we are in regards to the payoff amount, as well as the amount of interest owed.” I’m looking for some feedback on amortization.”

Steven Butala:                   Here’s the answer. When you take out a mortgage, what he’s referring to is a standard amortization schedule. Every payment has principle and interest in it. A standard amortization schedule looks like an X. One of the lines of X’s is principle, one of the lines is interest. If you take your arms and make an X, your left arm is the interest, and your right arm is the … I’m sorry, the other way.

                                                Your right arm is the interest, and your left arm is the principle. So, the more payments that you make, like in this case, payment #50, let’s say, has a tremendous amount of principle in it and very little interest. But the first payments that you’re making … This is just like a house or a car.

                                                The first payments you’re making are almost all interest. It’s a sneaky, terrible, awful way that finance companies and banks schedule stuff. That’s why new cars, you’re always under water with your car. If it was straight line amortization where a $500.00 was right from the get-go $250.00 a month in principle, and $250.00 in interest, the world would be a better place.

Jill DeWit:                            I agree.

Steven Butala:                   I have to say this. I have to interject my-

Jill DeWit:                            I agree. So, it’s $100.00 of-

Steven Butala:                   But the bank sets it up-

Jill DeWit:                            Principle-

Steven Butala:                   Surprise, surprise-

Jill DeWit:                            $400.00 of interest.

Steven Butala:                   The bank sets it up so they win.

Jill DeWit:                            Yeah.

Steven Butala:                   So what this guy is asking is can we just do a regular amortization schedule. I think the X version of the amortization schedule instead of the straight line so that when you pay it out … Here’s the good news though, even with the bank situation.

                                                If you pay off, if you write a second check that month … Your payment is $500.00, it’s subject to that principle X interest concept I just said, but if you write another $500.00 check, it goes 100% to paying down the principle. So, you’re really rewarded for making a higher payment than what’s in the actual schedule. Is this awful and complicated?

Jill DeWit:                            It is, but you know what I would do in the end? Just answer the question. I’d say heck yeah.

Steven Butala:                   I would say yes, too. To answer the question. But you need to know this, especially if you’re a young person. You need to know that the cards are stacked against you in regular loan amortization schedule.

Jill DeWit:                            Stacked against you as a buyer or a seller?

Steven Butala:                   Stacked against you as a buyer-

Jill DeWit:                            Thank you.

Steven Butala:                   Or, as a person who buys a car or a house on terms [crosstalk 00:04:34].

Jill DeWit:                            Which is funny, and the buyer’s the one that’s asking for it.

Steven Butala:                   Yeah, I’m not sure the buyer really actually knows.

Jill DeWit:                            Right. Because it’s-

Steven Butala:                   I mean … And this is what I mean. We do it just because that’s how you do stuff. When we sell on terms, which is not that often, it almost always they pay off early, or they just skate. It’s usually one of the two. I don’t ever see … We don’t too often see a loan actually going out as scheduled.

Jill DeWit:                            Can I say something? I’m looking at these numbers real quick here. So here’s the deal … Say 130, 160 … I mean, in the first 12 months, he’s going to have all his money back. I kind of don’t care how we do it, you know what I mean?

Steven Butala:                   That’s right.

Jill DeWit:                            And then the rest is gravy.

Steven Butala:                   That’s true. Actually, Michelle is winning here huge. But I’ll tell you, making $4,000.00 over five years on a property that you brought for $4,000.00 or 33, 400 wouldn’t pass my test. I’m telling you right now. I’d take that property and sell it for eight grand and forget it.

Jill DeWit:                            Oh, that’s true.

Steven Butala:                   It looks like it’s a good piece of property, too. Seven miles from the beach, and stuff.

Jill DeWit:                            Mm-hmm (affirmative). I think that’s great.

Steven Butala:                   That’s my take on that. Today’s topic: Our Land Investor show, #700. Jill and I are probably going to [inaudible 00:05:43] … Well, Jill is going to cry with-

Jill DeWit:                            With what?

Steven Butala:                   When does it end?

Jill DeWit:                            Pain?

Steven Butala:                   I’m going to be-

Jill DeWit:                            No, I’m just kidding.

Steven Butala:                   I’m going to cry with pride.

Jill DeWit:                            You mean I gotta do 701 tomorrow?

Steven Butala:                   Yes, we are actually.

Jill DeWit:                            Oh my gosh. Oh no, I thought this was the end. You know what?

Steven Butala:                   Most people think that, too.

Jill DeWit:                            When you came to me with this idea, Dear Jack, in 2015, who knew it would be 2018, and I’m still sitting here next to you?

Steven Butala:                   I know.

Jill DeWit:                            I was just supposed to be-

Steven Butala:                   It’s hilarious.

Jill DeWit:                            A fill-in.

Steven Butala:                   Who knew that we’d still be together.

Jill DeWit:                            Exactly. Anybody would be laughing, ever. I know, I’m just kidding. But seriously, I was a fill-in. Will you please explain how this-

Steven Butala:                   When we started this show … Actually, if you go out on iTunes, you can still … The original show is out there. I think there’s 20 or 30 episodes-

Jill DeWit:                            Before this show.

Steven Butala:                   Before this one, yeah.

Jill DeWit:                            What did they call it? Do you even remember?

Steven Butala:                   Something about land. I don’t know.

Jill DeWit:                            Something about land. There’s Something About Mary. There’s Something About Land.

Steven Butala:                   Originally, I was scheduled to have guests, and we had a bunch of guests in the early show, early version of the show, but they were constantly not showing up. So, Jill would fit in because I was bent on having … Back then, seven shows a week.

Jill DeWit:                            Yeah.

Steven Butala:                   Now, it’s five shows.

Jill DeWit:                            That’s right.

Steven Butala:                   So, Jill would fit in, and there would be a slew of guests we would have and all of our members, people that were listening would say, “Bring back Jill. It’s way more fun when you guys do it that way.” So I said to myself, “Man, not scheduling guests, taking that out of my life, I’m not going to miss that.”

Jill DeWit:                            Mm-hmm (affirmative).

Steven Butala:                   That’s how it just became this … It was first the cash flow from Land Show, then it went to the Jack and Jill Show for a while, and it’s now back to the Land Investor Show, which is where it will stay.

Jill DeWit:                            Thank you. If we do something else-

Steven Butala:                   We will be releasing a House Academy Show later this year in addition to this.

Jill DeWit:                            Exactly.

Steven Butala:                   Where we’ll talk about the house version of things, and we’ll leave this show to the land version of things.

Jill DeWit:                            Love it. I just remember you coming to me and my first line was, “What’s a podcast?” Part of it was, funny is I didn’t know what a podcast was because I didn’t commute. We were totally working solely from home back then. So, I’m like, “People get in a car and listen to stuff?” I didn’t know what this was.

                                                It was fun. I remember doing some … We did some video ones where it was kind of like we would record audio and video at the same time, and then you would post them in different places. Didn’t we do that with this?

Steven Butala:                   Yeah, and it failed.

Jill DeWit:                            Yeah.

Steven Butala:                   It turns out people … They want a podcast. They want to listen to it. They don’t want to see it. It eats up their memory in their phone and all that-

Jill DeWit:                            Oh, that’s right.

Steven Butala:                   [inaudible 00:08:34].

Jill DeWit:                            Well, then there wasn’t as many places to listen to. I think, back then, wasn’t it … Really iTunes-

Steven Butala:                   It’s still really iTunes.

Jill DeWit:                            Right, and then we have Stitcher-

Steven Butala:                   Google.

Jill DeWit:                            And all the other places now, but there weren’t as many places to post-

Steven Butala:                   IHeartRadio … We recently got on IHeartRadio, and that’s been really good for us.

Jill DeWit:                            Mm-hmm (affirmative).

Steven Butala:                   But the thick of it is this, I never … Anytime you start something like this, there’s always unintended consequences. Some of them are good, and some of them are bad. My whole point here is I honestly believe I have learned more from listening to the reactions that people have to this show than I ever would have learned just sitting here buy and selling land.

Jill DeWit:                            Mm-hmm (affirmative).

Steven Butala:                   Really, I’ve gotten more out of this, I think, than a lot of the members/listeners.

Jill DeWit:                            Right.

Steven Butala:                   So, it’s a two way street. When we started it, I only ever intended it to be this kind of public service announcement that … Because in real estate, land gets overlooked. If you talk to any seasoned real estate person at all, including my blood relatives, “What is it with you and land?”

Jill DeWit:                            [inaudible 00:09:45]

Steven Butala:                   That’s what everybody says to me. “Can you just get off the land, please?”

Jill DeWit:                            I know.

Steven Butala:                   “Get off that topic.” It’s a tiny little minuscule to what really goes on in real estate. Maybe they’re not wrong, but it really works for us.

Jill DeWit:                            Yeah. I agree.

Steven Butala:                   Are you raising your hand?

Jill DeWit:                            No, I’m sorry. No, I agree. I’m trying to think of some of the funny things over the course of this whole period.

Steven Butala:                   One of the funny things that happened over the last several years is the varying opinions that we get. Early on, Jill and I used to do a lot of … Not a lot, but several live events. We’d get this opinion where people would say, “You know what? Could you guys just stick to talking about real estate deals? Because that’s what I really need to know because I’m a real estate investor.” Then, immediately this person standing behind him would say, “Can you guys just lighten up a little bit and have a little bit more fun, and be a little more entertaining?”

Jill DeWit:                            That’s funny. That’s true.

Steven Butala:                   They seemed to be in two camps. Like, let’s have more fun, and let’s be more serious. So, that’s why there’s two of us, because I’m more serious.

Jill DeWit:                            Mm-hmm (affirmative).

Steven Butala:                   Jill is here to horse around. Jill is here to bring it back to middle school.

Jill DeWit:                            Thank you. That’s my part. I’m just thinking of the times … Remember it was like a year and half ago, maybe it was, I don’t remember. We were recording, we tried to record on location at some times? That was hilarious. I’m just thinking about all the things that we did, all the things that we tried. You know, it’s kind of like Land Academy.

Steven Butala:                   Yep.

Jill DeWit:                            We could almost do a podcast Academy, but we’re not. Please don’t-

Steven Butala:                   No, no, no.

Jill DeWit:                            Jack, I’m looking at you like don’t go there.

Steven Butala:                   Nope.

Jill DeWit:                            But we-

Steven Butala:                   I am not-

Jill DeWit:                            We have tried-

Steven Butala:                   No stretch at an expert at this.

Jill DeWit:                            Videos, we’ve tried in the studio. Oh my gosh, I wonder how many people are listing right now have been with us for the whole time.

Steven Butala:                   Yeah.

Jill DeWit:                            Because we’ve done in the studio, professional studios, gone to other studios, we tried to do the call in thing and that never worked because it’s hard to time that, so we dropped that one. We still, at some point, were probably [inaudible 00:11:35] that … We’re not willing to invest the time in that yet.

Steven Butala:                   It was the Jack and Jill Show for a while.

Jill DeWit:                            Yeah.

Steven Butala:                   It turns out-

Jill DeWit:                            Different.

Steven Butala:                   People want to hear us talk about land deals.

Jill DeWit:                            Yeah.

Steven Butala:                   And land investing.

Jill DeWit:                            Yeah.

Steven Butala:                   Like we said earlier, we will have a House Academy podcast separately, but it just seems like people are in one camp or the other, and that’s okay.

Jill DeWit:                            I have learned a lot, too. You know, these questions that they ask … You know what I learned? I learned, wow we know a lot. I remember coming into this … Seriously, it was still kind of funny. When we started our online community, right, I’m like, “Okay, we’re going to be answering and helping people.”

                                                We did, because we couldn’t possibly one off answer … We found ourselves by email answering the same question many different times in many different ways. I thought, “Okay, there’s got to be a better way to share this information than one person at a time.”

                                                So that’s where our online community grew from. Even the show. This is our way of sharing this information with more than one person at one time.

Steven Butala:                   Well said. I totally agree. I mean, it is an incredibly efficient way to reach a lot of people and answer kind of what’s on everybody’s mind.

Jill DeWit:                            Right.

Steven Butala:                   And it’s fun.

Jill DeWit:                            It is.

Steven Butala:                   I’ve said this for years, it’s a great way for me to avoid doing any real work.

Jill DeWit:                            Yes, it is. I totally agree. So, really, how many shows do you think we’re going to do? If we’re on 700 now, I mean shoot, we’re going to be like … In a year we’ll be 1,000.

Steven Butala:                   Every day, every week, I have this thought at some point: Should we go to a weekly show where we just record one hour-long show and pack in a ton of advice, or should we continue to go on with the daily scenario, 15 or 20 minutes every day. And you know the answer.

Jill DeWit:                            That’s why we’re still here.

Steven Butala:                   Yeah.

Jill DeWit:                            Five days a week.

Steven Butala:                   I really think if I were a listener, I would want to check in with us often like this.

Jill DeWit:                            Exactly. I like checking in with you, Jack.

Steven Butala:                   She was waiting to say that.

Jill DeWit:                            I know.

Steven Butala:                   She was just waiting on que.

Jill DeWit:                            I know. You know what I think is funny? All of our friends kept saying, especially early on, look at us now. “What the heck do you guys have to talk about five days a week on a show?” And we never run out of stuff. There’s always new stuff.

Steven Butala:                   Our listeners might disagree.

Jill DeWit:                            Oh, well. That’s true. But you know what I mean? There’s always … What’s great, things change. Online recording, I mean, there’s going to be more exciting and newer ways to do what we do, marketing things change, the best ways to post property are going to change. We talked about going into the houses, that’s going to change some for us. I know there’s a lot of people that are here listening to the show right now that are dying to do the house version-

Steven Butala:                   House Academy.

Jill DeWit:                            Of this.

Steven Butala:                   Yep.

Jill DeWit:                            Because they really want to learn that. Then there’s also a percentage that really wants to do the mobile version of this, so we talk about them off and on as it pertains to our land business, but we’re going to be able to really focus solely on really that … What’s unique and different about doing it for houses and doing it for mobiles.

Steven Butala:                   You know everything, when you have a business, I don’t care what kind of business it is, it always changes and you have to keep up with the change. You can’t just kind of hang your head on one concept and just write it until it’s done. I incorrectly thought this a long time ago, as a young person.

                                                That’s what this show is. We changed the show as our company changes, as we get into different things and we find new ways to make money. And some of it works and some of it doesn’t. You know, the truth is, the as a radio mass production scenario, or what we were trying to go with there, it turns out Jill and I would rather be real estate investors than talk show hosts.

Jill DeWit:                            Yeah.

Steven Butala:                   So we had a couple of really, really great opportunities that would have required the vast majority of our time.

Jill DeWit:                            Right.

Steven Butala:                   We turned them down in the end.

Jill DeWit:                            Exactly.

Steven Butala:                   Because we’re just Steve and Jill.

Jill DeWit:                            I know.

Steven Butala:                   People who buy real estate. Regular people who buy real estate, and because we’ve been doing it for so long, we do it pretty well.

Jill DeWit:                            Exactly.

Steven Butala:                   That’s really what this show is all about, and that’s why I think we have so many listeners. We have a lot of listeners.

Jill DeWit:                            Yeah.

Steven Butala:                   The first time we did this show, I looked it up and we had eight listeners. We did. I have a screenshot of it.

Jill DeWit:                            That’s true, I kind of remember you going, “Oh look, we hit 100.”

Steven Butala:                   We have millions and millions of downloads now.

Jill DeWit:                            Yeah. That’s very true. That’s good. You’re right. We are still here every day, trying new things, helping people, saving people. We’ve talked about everything from land to staffing, to whatever I’m sure … People who have been listening to this over the years have heard of employees come and employees go. That didn’t work out-

Steven Butala:                   We will be here.

Jill DeWit:                            So … But yeah, what’s the constant? Us. Where we’ve been sitting has changed. What we’re doing has changed.

Steven Butala:                   Dramatically changed.

Jill DeWit:                            Yeah. A lot of those things have changed.

Steven Butala:                   All of our equipment’s changed.

Jill DeWit:                            That’s true.

Steven Butala:                   Well, you’ve done it again. You’ve spent another, I don’t know, 15 or 17 minutes with us here. Join us tomorrow for another interesting episode of The Land Investor Show.

Jill DeWit:                            Are you going to make me do a Show #701? Oh boy.

Steven Butala:                   I am.

Jill DeWit:                            Okay, and we’re going to answer-

Steven Butala:                   I’m not going to make you do anything.

Jill DeWit:                            I know. And-

Steven Butala:                   But the show is better with you here, Jill.

Jill DeWit:                            Thank you. I will agree. And we’re going to answer your questions posted on our free online community. Go find it at

Steven Butala:                   You are not alone in your real estate ambition. That whole show was like one big long after talk.

Jill DeWit:                            It really was. Really? Are we really?

Steven Butala:                   Most of the time we talk about real estate and land.

Jill DeWit:                            Do you know what’s funny?

Steven Butala:                   We needed a little break.

Jill DeWit:                            I get so into the zone of this show. We’re just doing shows, doing shows. I looked up and I’m like, “Whoa. 700 is coming up.”

Steven Butala:                   [inaudible 00:17:31], Jill.

Jill DeWit:                            I didn’t even-

Steven Butala:                   It snuck up on you.

Jill DeWit:                            I wasn’t even paying attention.

Steven Butala:                   Yeah.

Jill DeWit:                            I remember when … Was it 500? I think it was Show 500, it was really nice. One of our … Even one of our staff members sent us an awesome champagne gift basket on Show 500, and then we were going, “Oh, that is so nice.” And I’m like, “That went by fast.”

Steven Butala:                   Right.

Jill DeWit:                            Wow. Here we are.

Steven Butala:                   A lot of content.

Jill DeWit:                            I know. What the heck do we have to talk about so much? It’s hilarious. Anyway, share the fun by subscribing on iTunes, or wherever you’re listening. While you’re at it, please rate us there.

Steve and Jill:                     We are Steve and Jill.

Steven Butala:                   Information.

Jill DeWit:                            And inspiration.

Steven Butala:                   To buy undervalued property.

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