Number One Set Back for Land Investors (LA 803)

Number One Set Back for Land Investors (LA 803)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Hello.

Steven Butala:                   Welcome to The Land Academy Show: Entertaining land investment talk. I’m Steven Jack Butala.

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

Steven Butala:                   Today Jill and I talk about the number one setback, as we see it, for land investors.

Jill DeWit:                            This is gonna be good.

Steven Butala:                   We intentionally did not converse before the show.

Jill DeWit:                            Exactly. I can’t wait to see if we have the same thoughts or differing.

Steven Butala:                   What do you think the chances are that we actually have the same opinion about-

Jill DeWit:                            Eighty percent.

Steven Butala:                   I think it’s a pretty good chance-

Jill DeWit:                            I think eighty percent that we’re gonna answer the same way-

Steven Butala:                   Me, too.

Jill DeWit:                            Maybe what we’re gonna do … After we do this question I think when you get to the meat of the show can we do a one, two, three blurt it out?

Steven Butala:                   Yeah.

Jill DeWit:                            Okay, good.

Steven Butala:                   Then we can maybe, like, I have like three-

Jill DeWit:                            Then you can explain yours.

Steven Butala:                   I have a super favorite one, but then-

Jill DeWit:                            You have three?-

Steven Butala:                   What’s number two and three?

Jill DeWit:                            I only came up with one, it’s the number one-

Steven Butala:                   Well, we have all kinds of time. Before we answer the question, no, before we get into the topic, let’s answer a question posted by one of our members on the landinvestors.com online community: it’s free.

Jill DeWit:                            Matt asks: “I have a property under contract for $10,000, but it’s a half a mile from electricity. This will cost $14,000 to run electricity to it. Comps are $25,000. Would the access to electricity change our offer price if the other comps all have electricity at the lot line? I know that you don’t need electricity-

Steven Butala:                   Not at all this day and age.

Jill DeWit:                            I could see how someone might even want the property to not have electricity, so fewer people are likely to be neighbors. But that logic, of course, means if you ever want to be my buyers, ha ha, I’m curious what everyone’s thoughts would be, thanks.”

Steven Butala:                   I have a question before we answer this for you.

Jill DeWit:                            Okay. For me?

Steven Butala:                   Of the 15,000 properties that you and I have purchased and sold-

Jill DeWit:                            Yes.

Steven Butala:                   Closer to 16,000 now-

Jill DeWit:                            Right.

Steven Butala:                   Do you know in even one of those properties how far it is from an electric line?

Jill DeWit:                            Negative. I do not.

Steven Butala:                   Neither do I.

Jill DeWit:                            Next topic.

Steven Butala:                   That’s your answer, Matt. Why do you know this?

Jill DeWit:                            Yeah, I wouldn’t have even called and found that out-

Steven Butala:                   Why do you even know about the electricity?

Jill DeWit:                            Yeah.

Steven Butala:                   You know what I do know about almost every single property? What I purchased it for ballpark, and what I sold it for, and how fast we sold it.

Jill DeWit:                            Right. That’s about it.

Steven Butala:                   I can look back on … I mean, this was in the ’90s and I can say I did a deal close to the Grand Canyon. I paid $175 a property, and sold it for close to $500 even.

Jill DeWit:                            Right.

Steven Butala:                   I know the acreage, I have all the names. We used to name the names by the last name of the person. I can tell you how much money I made on those deals. It’s not because I’m extraordinary by any stretch-

Jill DeWit:                            You are.

Steven Butala:                   You know what it is? I just care about the money.

Jill DeWit:                            Yeah.

Steven Butala:                   I don’t care about the real estate at all.

Jill DeWit:                            I want to convey, that’s not being shallow or whatever, that’s how you get ahead.

Steven Butala:                   Yeah.

Jill DeWit:                            If you spend your time and get too much into it, it’s gonna slow you down. You need … I tell people this often-

Steven Butala:                   I agree.

Jill DeWit:                            You need to think of these things, and I got that from you, you need to see all your property as a line item, that’s it. Don’t get hung up on the view, or the trees, or all that, because that’s just gonna slow you down. Just sell them, think of volume, turning them over, getting a good price, move on.

Steven Butala:                   If you’ve ever taken a-

Jill DeWit:                            That’s how you grow.

Steven Butala:                   An advanced course in like accounting, like a college level course in accounting or economics, the first thing they say is … especially in manufacturing, or a manufacturing a widget. I’m like, “Stop, stop, stop, what the hell are we manufacturing?”

Jill DeWit:                            Right.

Steven Butala:                   “Well, we’re manufacturing a widget.” “What do you mean it’s a widget? What is it? Is it an aerospace part? Are we constructing a turkey pot pie? What is it?” Every single instructor looks up and says, “We don’t care about that.”-

Jill DeWit:                            It doesn’t matter.

Steven Butala:                   We care about the fact that it cost $42 to make it-

Jill DeWit:                            Right-

Steven Butala:                   And we’re selling them for $82-

Jill DeWit:                            Right- And here’s how many customers we have and here’s our sales results and all that good stuff.

Steven Butala:                   And it costs, you know, we need an 18,000 square foot manufacturing facility and it takes, I don’t know, 42 machining events to get this widget out the door- customer ready.

Jill DeWit:                            And we’re working on making it cheaper.

Steven Butala:                   We’re working on making it cheaper, we’re increasing our marketing, and we’re making the packaging easier.

Jill DeWit:                            Right-

Steven Butala:                   Stuff like that.

Jill DeWit:                            Exactly, doesn’t matter what it is.

Steven Butala:                   We don’t care what we’re making.

Jill DeWit:                            No. That’s true. That’s it.

Steven Butala:                   We don’t care about the real estate people.

Jill DeWit:                            Yeah.

Steven Butala:                   We don’t care one bit. All you see on HGTV is real estate. They focus on the real estate and the-

Jill DeWit:                            Cause-

Steven Butala:                   And even at that, not even the land. Land is what matters.

Jill DeWit:                            Right.

Steven Butala:                   They focus on the wallpaper and the kitchen appliances.

Jill DeWit:                            Because that’s their thing. Their there for the end-user and I argue that they don’t make as much money, but they’re happy with that. They like that. We are not that way, we would rather be wholesalers, make more money, not look at it like that.

Steven Butala:                   Right.

Jill DeWit:                            Thank you.

Steven Butala:                   Wow, wait that was a dual, in stereo, rant – right there, both of us.

Jill DeWit:                            Really?

Steven Butala:                   Yeah!

Jill DeWit:                            Okay.

Steven Butala:                   Today’s topic: The number one setback… for land investors. This is the meat of the show.

Jill DeWit:                            Alright, I want to do it… can you put your-

Steven Butala:                   Three, two, one it-

Jill DeWit:                            Hang on a second, I know but I want [inaudible 00:05:24] can we put it in… two words?

Steven Butala:                   I’m thinking.

Jill DeWit:                            I can get mine-

Steven Butala:                   I can do mine in one.

Jill DeWit:                            You can do yours in one? One word?

Steven Butala:                   Uh huh.

Jill DeWit:                            Mine has an apostrophe.

Steven Butala:                   Okay.

Jill DeWit:                            All right, okay. So we’re gonna do three, two, one: over analyzing-

Steven Butala:                   Emotion.

Jill DeWit:                            Ahhh, ours are different. Okay, you go first.

Steven Butala:                   It’s exactly what Matt’s doing here. In this question. We don’t care about electricity or any of that. We don’t… the reason that people don’t succeed in this, or really anything else, is cause they’re tripping over their own feet. They’re standing in their own way, it’s in their head they don’t make enough time, they’re not organized, its… they’re all emotional about it. They’re actually thinking about… thinking-

Jill DeWit:                            Good-

Steven Butala:                   Well, over analyzing is part of it.

Jill DeWit:                            You know, it’s funny, that’s my… over analyzing is… my other thing I was gonna say is over analyzing, slash, not taking any action.

So it could be balled up in the same thing. No matter what-

Steven Butala:                   They are, they are, they’re the same thing-

Jill DeWit:                            It has nothing to do… here’s the number one thing-

Steven Butala:                   You’re right, the 80% thing was correct.

Jill DeWit:                            Thank you.

So, the number one setback for land investors is not having enough money. It’s not-

Steven Butala:                   It’s not that-

Jill DeWit:                            Having a day job-

Steven Butala:                   It’s not the real estate, it’s not-

Jill DeWit:                            It’s not that I’m married with kids, it’s not that I have a sick parent-

Steven Butala:                   You’re so the right girl for me-

Jill DeWit:                            It has nothing to do with any of that stuff.

Steven Butala:                   I agree.

Jill DeWit:                            None of that. Not the right mentor-

Steven Butala:                   I don’t understand Excel-

Jill DeWit:                            Yes!

Steven Butala:                   None of that.

Jill DeWit:                            I don’t have a degree-

Steven Butala:                   Real estate’s confusing-

Jill DeWit:                            I don’t have a car, whatever it is. It’s all internal-

Steven Butala:                   I don’t understand computers is a big one.

Jill DeWit:                            Right-

You can get past all this stuff. So yeah, we’re saying the same thing-

Steven Butala:                   You can learn everything we just mentioned… there’s tremendous number of YouTube videos on how to figure all that out.

Jill DeWit:                            You can do it.

Steven Butala:                   The fact is, if you’re not good at this or you’re really struggling with it, or whatever you’re trying to do, it’s not that high on your priority list.

Jill DeWit:                            Right.

I agree. Yeah, you gotta get past… you gotta get past that, cause you know, you and I both, that’s one of the nice things too about Land Academy now is we have so many hundreds of members that… for every one person that says, “Oh I have this obstacle”, I say, “Well I’ve got five people that have the same one, and here’s how they overcame it” kind of thing.

I have people that couldn’t afford stuff, selling furniture and all that good stuff, and now they’ve tripled their income, their annual income-

Steven Butala:                   Right.

Jill DeWit:                            And it’s about to get even bigger.

Steven Butala:                   Oh geez-

Jill DeWit:                            Right?

Steven Butala:                   We have people in our group that make seven digits a month, doing this.

Jill DeWit:                            We have people… one of the things too, I love, is… think of… talk about a setback. I remember, not last Christmas, I think it was the Christmas before that. We had two members, same time were both laid off in the beginning of December. And they both said, “Thank goodness that we had started with Land Academy three or six months before this, because I would’ve been sweating it.”

Steven Butala:                   Yup-

Jill DeWit:                            They said, “Now I have income coming in, I’m not dead in the water.” And they’re like, “You know what? Now I’ve all this free time, I’m gonna really kill it and it’s gonna pay the bills.”

And one or both… I don’t know if they went back. I think one went back to the comfort, if you will, of a day job. He was not… I don’t know why, but the other one’s like, “This is all I needed, that was the kick I needed.”

What?

Steven Butala:                   You’re pretty passionate about this, Jill.

Jill DeWit:                            I am.

Steven Butala:                   You know what? I’d voted… I wrote this question for a reason-

Jill DeWit:                            To get me riled up?

Steven Butala:                   No… Chapter 4 in Land Academy 2.0 is all about this.

Jill DeWit:                            Yeah.

Steven Butala:                   It’s all about getting what you want.

Jill DeWit:                            Yup.

Steven Butala:                   Anything… you make the decision, life doesn’t happen to you. If you think that, you’ve already lost, stop right now.

Jill DeWit:                            Oh, I’m unlucky.

Steven Butala:                   You make stuff happen-

Jill DeWit:                            I never had a dog.

Steven Butala:                   If you want to be a billionaire, it’s easy to work backwards from that.

Jill DeWit:                            I wasn’t the favorite child.

Steven Butala:                   I don’t have enough time, that’s my-

Jill DeWit:                            Yeah-

Steven Butala:                   Classic-

Jill DeWit:                            Oh, I can’t afford it-

Steven Butala:                   I don’t have enough time is my-

Jill DeWit:                            Yeah-

Steven Butala:                   I just laugh when I hear people say that.

Jill DeWit:                            Exactly.

I understand. Did we cover that?

Steven Butala:                   I think so… I guess we really did cover it.

Jill DeWit:                            I know-

Steven Butala:                   So it’s not… It’s never real estate or technical information, or any of that stuff. That all… I think twenty years ago, honestly, this is truly… twenty years ago, everything was way harder-

Jill DeWit:                            Right.

Steven Butala:                   To learn anything, you either had to call somebody on the phone or go to the library and read about it.

Jill DeWit:                            Right.

Steven Butala:                   And now, every single answer to every question you’ve ever had is in your pocket, right now, on your phone.

Jill DeWit:                            Exactly.

Let’s… I’d like to spend a few minutes real quick here, before we wrap this up. So, now we all identify, we all know that the number one setback is all mental. So, what are your best… let’s share our best practices and tips to get past it.

Steven Butala:                   Okay.

I have a lot.

Jill DeWit:                            I know you do.

Steven Butala:                   Go ahead, you can go first, or I’ll go first.

Jill DeWit:                            You go first.

Steven Butala:                   This is what I say and, cause I’m filming Land Academy 2.0 right now. Go to CVS or go to a drug store. Go to the office supply slash school supply section and you’re going to see notebooks for little kids that have Mickey Mouse on it, or Tinkerbell, or whatever. Buy two or three of them and make sure they are different. Make sure one of them is… the Incredible Hulk… or I don’t care, just make sure that it’s different and here’s why.

Then I want you to open the first notebook and write down what you want. And keep writing and writing and writing – the more you can write and the more you can fill that first notebook up… and the reason that I want to be silly notebook with Hulk on it or something is because, for whatever reason, and I’ve done this and I continue to do it, I remember the stuff that I put in the Mickey Mouse… like I remember the Mickey, oh yeah, that’s… I remember back… that was[inaudible 00:11:18]stuff all I wrote in the Mickey Mouse one. Stuff that I just wrote in the Incredible Hulk one, it’s a lot different and a little bit more mature and that was after I started the House Academy, or before I purchased a… XYZ movie star ranch.

Jill DeWit:                            Right.

Steven Butala:                   Gives you a context for time. The numbers are staggering if you write the stuff down and continually have a conversation with yourself about where you want to live or what you want to do or what celebrity you want to hang around with, if that’s on your list, it happens.

The numbers are staggering that if you write it down, and talk to yourself in the mirror about it… not like a weirdo, but just within reason-

Jill DeWit:                            Exactly-

Steven Butala:                   That all happens.

Jill DeWit:                            Right.

You know what’s funny about that… I don’t think you and I have ever had that conversation. But you know, this conversation about this and it’s cause I do it too, and I haven’t really thought about it-

Steven Butala:                   I know you do it-

Jill DeWit:                            You’ve probably seen it, cause I have this one right here-

Steven Butala:                   Yeah-

Jill DeWit:                            And then I have a really pretty red leather… you want to show what’s on the front of it-

Steven Butala:                   I do.

Says LannenFesters.

Jill DeWit:                            Yes, this is my… just my little daily quick little thing. And after the… you know what I do too, this is my working one, and when I’m done with pages and I’ve basically accomplished it, I rip them out and throw them away.

Steven Butala:                   Wow, you never throw it away-

Jill DeWit:                            Because I don’t need… I don’t need this, no this is like to do list kind of stuff-

Steven Butala:                   Oh, to do’s, okay.

Jill DeWit:                            It’s quick things that I have to write down. Sometimes I put them  on my phone in my calendar, but there’s other quick little things like right now I just need to-

Steven Butala:                   You know what I do?

Jill DeWit:                            Do you know, like right now, I’ll just… I’m writing down notes about the show today. I don’t need to save it. For me, it’s gonna bog me down, it’s not important to me, so I get rid of it.

But, now, so like you just said… let me finish please-

Steven Butala:                   Now-

Jill DeWit:                            I have a very pretty red special leather notebook-

Steven Butala:                   I’ve seen it-

Jill DeWit:                            like you’re talking about, and that’s only for book notes. It’s only for stuff about books. Then I have another one that’s for content for future TV shows and things like that that we have been working on and discuss and things like that.

So I have different ones like you’re talking about, and it’s funny because I just automatically do it, we’ve never really talked about it and compared notes. It’s cool-

Steven Butala:                   Yeah. Do you have revenue goals, in the next five years… I say two, five, and ten years is what I always write down.

Jill DeWit:                            That’s why I have you.

Steven Butala:                   Really?

Jill DeWit:                            Yeah yeah. Honestly-

Steven Butala:                   This is like a conversation-

Jill DeWit:                            Yeah, I don’t think about the revenue goals-

Steven Butala:                   Oh, I do-

Jill DeWit:                            Because you, cause you-

Steven Butala:                   Everything’s gotta number associated with me-

Jill DeWit:                            Well, that’s why, cause I don’t need to do double the work. Seriously.

Steven Butala:                   Uh huh.

Jill DeWit:                            You’re on top of that and-

Steven Butala:                   What are your goals then, if there’s no money… what is it like?

Jill DeWit:                            Personal goals. Finishing several books. Finishing one slash more than one-

Steven Butala:                   You mean as an author?

Jill DeWit:                            Exactly. Books. I’ve started several. I’m working on several.

Steven Butala:                   You know, those don’t even… because I write so much-

Jill DeWit:                            It’s personal.

Steven Butala:                   I’m writing the e-book for the House Academy right now, and the revised… I write it all at the same time, I don’t know why.

Jill DeWit:                            Right.

Steven Butala:                   Those never hit my notebook, because I just know I’m gonna do it.

Jill DeWit:                            Right.

Steven Butala:                   And I know when I’m gonna do it, because it’s in my calendar already.

Jill DeWit:                            I understand-

Steven Butala:                   The things that hit my notebooks are-

Jill DeWit:                            Yeah, what’s in yours?

Steven Butala:                   When am I gonna get a 75 foot Nordhavn yacht?

Jill DeWit:                            When is that?

Steven Butala:                   Like what year? And it’s late 2019, early 2020.

Jill DeWit:                            Cool.

Steven Butala:                   And it’ll happen. And I’m intentionally not… we could go buy it right now, but there’s a few things that I want to do first to reward myself, so that’s not associated with money.

Jill DeWit:                            Right.

Steven Butala:                   That’s just… I’ll actually probably have enough time to enjoy it, or take it where it needs to go.

Jill DeWit:                            Understood.

Steven Butala:                   There’s a bunch of stuff for next year, in there that’s gonna happen. It’s just shocking, it’s shocking to me how much this stuff actually happens when you’re writing it down and you just… I’m sitting here telling you right now it’s gonna happen.

I’m very confident, I will maybe buy one more car in the rest of my life.

Jill DeWit:                            Alright.

Steven Butala:                   And I actually know what kind of car it is.

Jill DeWit:                            Do you want to share it?

Steven Butala:                   Yeah, I want… when that Mercedes SL changes body styles.

Jill DeWit:                            Okay.

Steven Butala:                   Which is probably two, maybe three years from now.

Jill DeWit:                            Okay.

Steven Butala:                   And I won’t buy it then, I’ll buy it ten years from now.

Jill DeWit:                            Okay.

Steven Butala:                   And I’ll buy it new cause I’ve never bought a new car. Ever.

Jill DeWit:                            Okay.

Steven Butala:                   What do you want?

Jill DeWit:                            I don’t know. I’m good-

Steven Butala:                   I want the kids, the kids are cooked, they’re out of the oven.

Jill DeWit:                            Yeah.

Steven Butala:                   We’re good there.

Jill DeWit:                            We’re good.

I think we’re good-

Steven Butala:                   Third one’s still got a little bit to go but-

Jill DeWit:                            Yeah-

Steven Butala:                   He’s just showing great signs of everything.

Jill DeWit:                            We’re good.

Tell you what, we’ve got off-topic-

Steven Butala:                   Oh.

Jill DeWit:                            and we have other shows to do-

Steven Butala:                   Oh sure.

Jill DeWit:                            Other things to do, I’m glad that you enjoyed this social time.

[laughter]

Well, you’ve done it again. Steven has wasted another 15 minutes. We’ve all… anyway-

Steven Butala:                   Join us next time, where we discuss how to market rural vacant land, by reviewing one of our member’s websites called lando.com.

Jill DeWit:                            And we answer your questions posted on landinvestors.com. It’s our online community and it’s free.

Steven Butala:                   You’re not alone in your real estate ambition.

Yeah man.

Jill DeWit:                            Yeah, you were just kind of out there, I feel like you’re just kinda-

Steven Butala:                   Thank you for stopping me-

Jill DeWit:                            You’re welcome.

Steven Butala:                   I’d have gone on for a while probably-

Jill DeWit:                            It’s all right.

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