3 Biggest Road Blocks Creating Real Estate Wealth (LA 710)

3 Biggest Road Blocks Creating Real Estate Wealth (LA 710)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Hello.

Steven Butala:                   Welcome to the Land Academy Show, entertaining land investment talk. Happy Friday. I am Steven Jack Butala.

Jill DeWit:                            And I am Jill Dewitt, broadcasting from beautiful sunny Southern California.

Steven Butala:                   It is perfect today.

Jill DeWit:                            It is.

Steven Butala:                   Today, Jill and I talk about the three biggest roadblocks in creating real estate wealth that we see. We are actually qualified to do this show.

Jill DeWit:                            We are.

Steven Butala:                   ‘Cause we see … We deal with a lot of people-

Jill DeWit:                            And we’ve had-

Steven Butala:                   At all different levels.

Jill DeWit:                            Yeah, and we’ve been there.

Steven Butala:                   Yeah.

Jill DeWit:                            That’s even better.

Steven Butala:                   And we’ve experienced all these roadblocks, and believe it or not, we experience ’em all the time.

Jill DeWit:                            Yeah.

Steven Butala:                   As far as you get, there’s still is stuff that stands in the way.

Jill DeWit:                            Totally.

Steven Butala:                   It’s the norm actually. Stuff standing in the way is a norm. Why’s that so funny?

Jill DeWit:                            I don’t know. It’s just funny.

Steven Butala:                   Before we get into why Jill’s laughing, let’s take a question posted by one of our members on LandAcademy.com online community, it’s free. Jill laughs all the time by the way.

Jill DeWit:                            I do.

Steven Butala:                   She wakes up laughing.

Jill DeWit:                            Thank you.

Steven Butala:                   It’s really-

Jill DeWit:                            Not for the reasons that you might be thinking.

Steven Butala:                   Oh my gosh.

Jill DeWit:                            No. Matt asks-

Steven Butala:                   She’s laughing at me.

Jill DeWit:                            No, I’m not. Matt asks, “I have a deal that is .11 acres near a lake-“

Steven Butala:                   I like it.

Jill DeWit:                            “I’ve got it under contract for $1,000, and I haven’t seen anything sell less than $3,500-“

Steven Butala:                   Congratulations.

Jill DeWit:                            “In the last three years with most selling for $5,000 to $7,000.” This is starting out fantastic. “This lot is a bit of a jungle though with lots of landscaping to make it build-able, I imagine. Considering the lot is only 50 feet by 100 feet, would you pass on this deal? I imagine that if it cost a lot of money to clear the lot, then it’s resale value is shot. Thanks for the advice, I’m new to the group, so sorry if I’m posting in the wrong location. I’m still figuring out the forums.” That’s cute.

Steven Butala:                   This is good.

Jill DeWit:                            Good Matt.

Steven Butala:                   So the three rules of real estate are, go ahead, location, location, location. If you have point … Notice they’re not size location, location, or location, location, size. They’re location, location, location, so I rather … Would you rather have .11 acres near a lake with a lot of foliage on it-

Jill DeWit:                            Cheap.

Steven Butala:                   Or 80 acres in the middle of the desert that you need a helicopter to get to, which one, Jill?

Jill DeWit:                            Let me think, let me think, the first one.

Steven Butala:                   Right, so I … This is a deal that I would do. I wouldn’t even … I would look at it on Google Earth and probably just do the deal.

Jill DeWit:                            Yeah, based on the numbers you just gave us, Matt, I would’ve been like, “Yup, I’m in.”

Steven Butala:                   50 by 100 feet, I’ll tell ya, where we live is not 50 by 100 feet.

Jill DeWit:                            That’s true.

Steven Butala:                   It’s a lot smaller than that. That’s our primary residents by the way, so don’t let the size fool you here, but what I would do, and I don’t wanna be overzealous about buying this property is I would look on Google Earth and see what’s around it, immediately around it. If all the other lots are 50 by 100 and a few of ’em have structures on ’em, and everybody in the area or some people in the area figured it all out, the utility piece and the whole thing, that’s a run to the bank situation. This isn’t a run to the bank situation, but this is get in our medium rotation.

Jill DeWit:                            It could be … If it’s … You don’t need clearing a spot for a cabin, clearing a spot for a tiny home, clearing a spot for an RV, all that stuff, none of that’s crazy.

Steven Butala:                   It shouldn’t even enter into your mind, and here’s why. What you’re gonna resell is a story that someone is gonna pay for and-

Jill DeWit:                            To do that.

Steven Butala:                   To do all that.

Jill DeWit:                            Exactly.

Steven Butala:                   If someone wants a perfectly cleared lot with a lake view and the whole thing, now it’s not $3,000, now it’s $30,000.

Jill DeWit:                            Exactly.

Steven Butala:                   You don’t wanna go down that path, you just wanna burn through your acquisition templates.

Jill DeWit:                            I tell people too, I’m passing the savings onto them. We could do that, and I’ve done that. Well here’s the deal, I could do all that stuff, sure, but now again, now I’m not selling it to you for $3,500, now I’m selling it to you for $12,000. Do you want that, or do you want it for $3,500, you do the work and save the money? That’s what they want.

Steven Butala:                   Would you rather buy a diamond that’s all unpolished, and has been neglected for 10 years and is the bottom of somebody’s jewelry box for $5,000, or one that’s all shiny, polished, and off of 5th Avenue in New York for $35,000, which one, Jill?

Jill DeWit:                            Exactly, it’s the same stone.

Steven Butala:                   It’s the same thing with real estate, exactly the same thing. So if somebody expects you to deliver a $35,000 product for $5,000, then move on to the next buyer.

Jill DeWit:                            Exactly, good property it sounds like, awesome.

Steven Butala:                   Jewelry anal … Everyone understands the jewelry analogy.

Jill DeWit:                            You do that for me I guess.

Steven Butala:                   Today’s topic, the three biggest roadblocks that we see people experiencing creating their own wealth in real estate. This is the meat of the show. I know Jill, before we get started, wrote down her own roadblocks, and I wrote mine down and we have separate lists, so I’d love to hear yours first.

Jill DeWit:                            You want me to go first, okay. The first roadblock that I think is comes … People come across is personal. They are either scared, they’re in their own heads, not sure they can do this, or they’re complacent in their jobs, so they think they wanna do it, but they … It’s all personal and it’s emotional, and they have to mentally get there, that’s my number one.

Steven Butala:                   That’s actually my number two. I’ll tell ya, I’ve had very bright people come to me and say and in a constructive criticism way about how we teach, have had them say to me, “It’s really hard for me to get my head around this because you guys make it sound so easy and you do it every day. So when I fail at it, it’s gonna make it three times as bad.”

Jill DeWit:                            Aw, you gotta be ready for it. That’s so … That’s a bummer, you got it and that’s a good point. We talk about this all the time. Just plan for a mistake, and then you’re not gonna be surprised, and it’s gonna be fine, you’re gonna recover and move on.

Steven Butala:                   Yeah, go into it thinkin’ that you’re gonna-

Jill DeWit:                            Yeah, you know you’re gonna screw things up. Oh my-

Steven Butala:                   You’re gonna take it two or three or four times, but the system works.

Jill DeWit:                            Can I tell you what my staff just did today? Here’s a doozy of a mistake. Oh my god, and it’s a deed thing, of course anybody who’s in this knows these things happen, somewhere along the process, somebody forgot the word trustee.

Steven Butala:                   How’s that possible?

Jill DeWit:                            And there’s a trust … I don’t know.

Steven Butala:                   You mean in copying the legal offer?

Jill DeWit:                            Yeah, no, it was … Well yeah, and it was … That’s exactly right. It was-

Steven Butala:                   That’s ridiculous.

Jill DeWit:                            They just put the names and forgot the trustee. Well here’s what happened, so the property was sold, and then it was resold.

Steven Butala:                   Oh geez.

Jill DeWit:                            Now we gotta back two transactions and redo this stuff. It’s not the end of the world, we could all fix this-

Steven Butala:                   You know what Jill?

Jill DeWit:                            But it happens.

Steven Butala:                   You’re exactly right. That’s a perfect … Then did you get it all fixed with the correct deeds and everything?

Jill DeWit:                            Well, it’s in the process right now with the corrected deed, exactly.

Steven Butala:                   That’s a perfect example of are you gonna let somethin’ like that … Are you gonna let it break you down and bring it to your knees, and I say this to the kids all the time, “If you’re gonna get a bad grade, does it mean you’re a stupid person?”

Jill DeWit:                            No.

Steven Butala:                   “Or does it mean you just didn’t study this one time because you had something else to do and you’re not gonna do it again?”

Jill DeWit:                            It’s fine.

Steven Butala:                   Just if you have any wrongs-

Jill DeWit:                            Fix it.

Steven Butala:                   How many corrective deeds I’ve done in my career?

Jill DeWit:                            Right, thank you. That’s … It was like, what’s funny is, I want everybody to know this, this is gonna happen. This hap … The transaction was from January, this is now April. You can have things get recorded and get in the system and you think it’s goin’ through and then it hits on the last person’s desk, often the assessor, and then they go, “Oh this isn’t right.” But it went through all the other channels-

Steven Butala:                   If you’re doing your own deeds, in this business sometimes you just … It just ends up happening without using a title agent, you’re gonna make some mistakes.

Jill DeWit:                            Exactly.

Steven Butala:                   But title agents make mistakes, they make more mistakes than you do.

Jill DeWit:                            They do too.

Steven Butala:                   So that’s just, you accept it, and you laugh about it-

Jill DeWit:                            [crosstalk 00:07:57] not perfect.

Steven Butala:                   The best thing you can do is when this ends up … Did you talk to the assessor or the recorder, Jill?

Jill DeWit:                            The assessor, it was the assessor.

Steven Butala:                   So that’s even better because the assessor usually has a slight sense of humor about it.

Jill DeWit:                            Yeah.

Steven Butala:                   ‘Cause they’re seeing it a year later, or seven months later.

Jill DeWit:                            Exactly.

Steven Butala:                   The recorder, not so much with the humor.

Jill DeWit:                            They don’t even look, they just put a stamp on it and send it through.

Steven Butala:                   You just gotta pull a Jill. You gotta laugh and say, “Oh my gosh, I’m sorry, I’m droppin’ everything, I’m gonna help you. What can I do? Can I send you a cake? What would you like?”

Jill DeWit:                            How do we fix this?

Steven Butala:                   Yeah.

Jill DeWit:                            That’s it. That’s the thing-

Steven Butala:                   That’s all.

Jill DeWit:                            So one of the things about … So it’s all personal, that’s the first biggest roadblock, plan for mistakes, confidence. You gotta get confident.

Steven Butala:                   Confidence. Does that fall under your number one there?

Jill DeWit:                            No, it is in my number one, yeah-

Steven Butala:                   Me too.

Jill DeWit:                            I was just thinking about it right now.

Steven Butala:                   That’s my number two also.

Jill DeWit:                            It’s still … It’s all in your head.

Steven Butala:                   So it’s all emotion. Emotion like Tony Robin’s is famous for saying that ’cause of the single thing that trips everybody up to accomplishing whatever it is emotion.

Jill DeWit:                            Yeah, believe it.

Steven Butala:                   You just gotta get through it.

Jill DeWit:                            I believe it. It’s true, you’re right.

Steven Butala:                   You gotta put blinders on like a horse and concentrate on what you’re workin’ on that minute.

Jill DeWit:                            Exactly.

Steven Butala:                   Put it into some big system you’ve created and you’re all set.

Jill DeWit:                            Yup.

Steven Butala:                   That’s what we talk about in the Land Academy, and then all the academy programs.

Jill DeWit:                            Yup, wanna know my number two?

Steven Butala:                   Yeah.

Jill DeWit:                            Others not supportive.

Steven Butala:                   That’s my number one.

Jill DeWit:                            That happens so you … You-

Steven Butala:                   I call it life stuff.

Jill DeWit:                            Well that’s important too. Life stuff getting in the way, I get it, but also sometimes you don’t have the right person in your life that’s that supportive. It doesn’t really matter what idea you’re bringing to them, they’re not supportive, and it might be your fifth idea that you’ve tried and it doesn’t mean not try. That happens too.

Steven Butala:                   This is my fifth idea, at least.

Jill DeWit:                            Yeah. [inaudible 00:09:47] that funny?

Steven Butala:                   This is probably my eighth idea.

Jill DeWit:                            That’s a good point. This is not …

Steven Butala:                   And I failed at side businesses after I started real estate.

Jill DeWit:                            A lot of people, hello? That’s normal, it should be that way. If you never fail at something, I would question how hard you really tried at somethings.

Steven Butala:                   If you talk to any published author, they all say, “I’ve got like 22 books that I’m still writing, but for whatever reason, this one took off, and that’s the one you know me about. But no, I’ve got … Working on 22 other books and probably one or two of ’em only ever get published.”

Jill DeWit:                            Right. Or three of ’em suck.

Steven Butala:                   Gotta try 19 things.

Jill DeWit:                            You know what I mean? That too, they got published and they sucked.

Steven Butala:                   Right.

Jill DeWit:                            Then this one I figured it out. Whatever it was, that’s okay too.

Steven Butala:                   If it’s in your soul and your passionate about it, you’re gonna write 22 books and one of ’em people are gonna like.

Jill DeWit:                            My thing is to sometimes you have to … It’s a tough one, you have to figure out what you wanna share with other people ’cause there are people out there, no matter what, they’re just … They just aren’t supportive. Even as simple as a diet, ’cause if you’re comin, “Hey I’m gonna get in shape.” They’re, “Yeah, right. We’ve heard it all before. You’re gonna join the gym and now we’re gonna be spending an extra $50-$100 a month on gym that you’re never gonna go to.”

Steven Butala:                   Where does that come from?

Jill DeWit:                            I don’t know, but people do that.

Steven Butala:                   It really makes me mad.

Jill DeWit:                            I know, but there are people out there and they are like that. They think they’re being realistic, is what they say ’cause I’ve heard that. I’ve heard that, and you know what? It’s all gotta come from you, so what I’ve learned is I just don’t-

Steven Butala:                   That is tragic.

Jill DeWit:                            I know, and I just don’t share it with those people. I know who are my supportive people, and I share stuff with them, selective things, and some people I don’t share stuff at all ’cause I know how they’re gonna tell me, and I don’t want ’em to mess with my mojo, I got this.

Steven Butala:                   Almost anything’s possible.

Jill DeWit:                            Yeah.

Steven Butala:                   So what’s your number three?

Jill DeWit:                            My number three is, the third biggest roadblock creating real estate wealth is sometimes there’s realistic things in your way that you need to finish first, like for example, you gotta keep your day job, you’re payin’ off some debt, you’re a year away maybe, whatever it is, it’s realistic, you need … It’s not … Sometimes there’s things that you shouldn’t jump ship yet, and start something else without finishing that thing. Maybe, does that make sense?

Steven Butala:                   Yeah.

Jill DeWit:                            Maybe you’re finishing off paying for your college, maybe you’re almost done getting your PhD, or who knows what it is, I don’t know. This come along … This has come along, you’ve already invested so much in it. I would say be realistic, finish that thought or that whatever it is, then make the transition, so … ‘Cause you wanna do this right.

Steven Butala:                   That’s good advice, I wouldn’t … I would’ve … That’s really person specific and situation specific ’cause if you’re like …

Jill DeWit:                            I’m just saying, there might be something realistic that you need to do first, that’s it, and do it.

Steven Butala:                   Yeah.

Jill DeWit:                            Don’t be stupid here. Don’t make rash decisions, make smart decisions.

Steven Butala:                   My number three is once you get into it, I see people fail and I see this, the most intelligent people that I see fail at this are it’s because of follow through.

Jill DeWit:                            Why is that?

Steven Butala:                   There’s a lot of reasons for lack of follow through.

Jill DeWit:                            Just like throw their hands up, ‘Well I can’t do this, then.’

Steven Butala:                   I think it’s a time commitment. I’ve seen some extremely bright people get into this and think that it’s gonna happen in a weekend, they’re usually younger. Maybe it’s all in their head and they don’t really wanna succeed. But I believe … I thought a lot of this, before I met you, is a bunch of crap. When honestly-

Jill DeWit:                            I know.

Steven Butala:                   With all this head stuff, but you know what?

Jill DeWit:                            So glad I came along.

Steven Butala:                   It’s true. Came along.

Jill DeWit:                            To help you-

Steven Butala:                   There’s Jill skippin’ out of the woods with her red dress on and her little basket-

Jill DeWit:                            Exactly.

Steven Butala:                   She came along.

Jill DeWit:                            With a halo on my head.

Steven Butala:                   You’re the only person I have ever heard self described halo over your head.

Jill DeWit:                            I’m here to help.

Steven Butala:                   Follow through is a massive problem for a lot of people.

Jill DeWit:                            It’s true.

Steven Butala:                   There’s a million reason why it happens, but it happens to all of us. You have to follow through, especially with that first deal.

Jill DeWit:                            Dude, it’s hard sometimes, I get it.

Steven Butala:                   Here’s what I do every day because I have issues with follow through. I’m behind on our mailers right now, that’s the truth and it’s because I get sidetracked with other crap like IT issues and staffing issues, and all kinds of stuff. So my answer to that is this, I put everything in a calendar, and I create a system for people under me, sometimes they’re overseas, sometimes they’re part of our staff to … It gets all systematized and I watch them do it. We pay three to four [inaudible 00:14:39] dollars for overseas staff to do tasks for us, and if I tell ’em to do it on Wednesday, ’cause it’s in my calendar on Wednesday, on Thursday morning it’s done, and it’s there, and I have to spend 20 minutes on it to get it into the mail. Even I fail at that follow through sometimes, and that’s just the way it is. That is the … My number three is really my number one, the biggest roadblock for me making even more money than we actually make.

Jill DeWit:                            Need to stay motivated.

Steven Butala:                   Yeah, I don’t have any motivation issues.

Jill DeWit:                            I know, I’m joking. I’m not talking about you, I’m just saying in general. Not you, life. That’s what you’re saying, follow through is-

Steven Butala:                   Motivation’s not the problem.

Jill DeWit:                            You don’t think so?

Steven Butala:                   It’s organization, it’s follow through because of lack of organization, I’m not … There’s … I haven’t, believe me, being motivated is not one of my problems.

Jill DeWit:                            Well that’s true, but again, I wasn’t talking about you, but that’s one of the ways that I describe it for other people sometimes. Other people I think follow through might be, you might think differently and you’re allowed to, you think it’s different?

Steven Butala:                   I think lack of motivations a whole … If you have … If you’re not motivated to succeed in real estate, and you’re listening to this, and you’re part of the group, or you’re not part of the group, but you’re thinkin’ about the group, then stop right now. You’re not changing your motivation, you need a psychiatrist to do that. I don’t think it’s gonna happen even after that anyway.

Jill DeWit:                            Okay.

Steven Butala:                   Motivation’s not … That’s just my opinion.

Jill DeWit:                            Okay.

Steven Butala:                   You can’t say, ‘Hey I think you’re used to …’ You put on a cheerleader hat sometimes, Jill, which is good for a lot of people around you, but if you have to cheer lead your way into motivating somebody, it’s … Once you’ve stopped cheerleading, it’s just gonna fall back down to where it was.

Jill DeWit:                            Okay.

Steven Butala:                   You don’t think so?

Jill DeWit:                            No, I guess I just look at it different. You know what? You and I are explain … It’s probably the same concept that we just explain it differently and that’s okay. You’re dissecting things and stuff like that is not how I do it-

Steven Butala:                   Right.

Jill DeWit:                            So there’s nothing wrong with that, they’re just different. You know what? How about this, lets … We can just say it’s follow through, however it works for you, or whatever you wanna call it, you gotta figure out a way to stay on the path.

Steven Butala:                   You have to figure out, you have to put a system in place and stick with it no matter what happens, and that’s way, way harder to do. It’s a lot easier to say than to do, especially been there’s not a lot of people involved, and there’s employees that are doin’ stuff or not doin’ stuff. The truth is if we didn’t have this membership group, these membership groups now, and 19 websites to manage and all that, we’d probably be makin’ a lot more money.

Jill DeWit:                            That’s true.

Steven Butala:                   Not in life, but I mean be makin’ a lot more money buying and selling property.

Jill DeWit:                            That’s true.

Steven Butala:                   Right, in fact I know that’s the case with probably a lot few people, and a lot fewer responsibilities.

Jill DeWit:                            That’s true.

Steven Butala:                   So in a lot of ways, I’m envious of some of the people in our group where all they have to do is buy and sell real estate.

Jill DeWit:                            Right.

Steven Butala:                   In a couple of counties.

Jill DeWit:                            And we’re here to help ’em.

Steven Butala:                   We already have to film everything-

Jill DeWit:                            They can fund it if they need it-

Steven Butala:                   Record shows, they don’t have to run 16 websites. I’m a little jealous.

Jill DeWit:                            Right.

Steven Butala:                   Honestly, I really mean that.

Jill DeWit:                            But hold on, we chose this, this is what we want to do.

Steven Butala:                   Yeah.

Jill DeWit:                            Remember?

Steven Butala:                   And we can undo it too. I do remember, and we can knock the wheels off I think too.

Jill DeWit:                            I know, but I love this.

Steven Butala:                   This will happen at some point.

Jill DeWit:                            This is fun.

Steven Butala:                   Well you’ve done it again, you’ve spent another 20 minutes listening to the Land Academy Show. Join us tomorrow for another interesting episode where we talk about taking land orders online, processing acquisitions and sales online versus on the phone, and I bet you can figure out which one’s more efficient.

Jill DeWit:                            And we answer your question, should you have one, post it on our free online community found from on LandAcademy.com.

Steven Butala:                   You are not alone in your real estate ambition. This is a really interesting nebulous topic about why people don’t follow through.

Jill DeWit:                            Yeah. I’m-

Steven Butala:                   Or what the real three roadblocks are. You know we didn’t mention is, none of ’em are real estate related, none of them are-

Jill DeWit:                            That’s true.

Steven Butala:                   Lack of the quality of the concepts.

Jill DeWit:                            It’s true, or how much you know, or how smart you are, or how much money you have.

Steven Butala:                   Nobody’s walkin’ around saying, “You can’t make any money in real estate, it’s a bad idea.”

Jill DeWit:                            Wouldn’t that be hilarious?

Steven Butala:                   No.

Jill DeWit:                            Let’s make the real estate suck.

Steven Butala:                   No, you can’t, that’s over.

Jill DeWit:                            It’s only for the whatever.

Steven Butala:                   You could’ve done it in the ’80s, but not so much anymore.

Jill DeWit:                            That’s right. That’s all, the ship has sailed.

Steven Butala:                   I’ve heard people say stuff like that, like ‘Oh yeah, that’s classic.”

Jill DeWit:                            That’s good. That’s-

Steven Butala:                   I hear some people say, “Direct analysis doesn’t … That doesn’t work.”

Jill DeWit:                            Right.

Steven Butala:                   That’s … I see it in bigger pockets all the time.

Jill DeWit:                            That’s hilarious.

Steven Butala:                   That’s cracks me up.

Jill DeWit:                            It is so funny, I love it. Kay, share the fun by subscribing on iTunes, or wherever you’re listening, and while you’re at it, please rate us there. We are Steve and Jill-

Steven Butala:                   Jack and Jill. We’re actually Steve and Jill.

Jill DeWit:                            Oh good.

Steven Butala:                   Information-

Jill DeWit:                            And inspiration-

Steven Butala:                   To buy undervalued property

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