Million Dollar Views (LA 841)

Million Dollar Views (LA 841)

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 DeWitt, broadcasting from sunny, southern California.

Steven Butala:                   Today Jill and I talked about million dollar views. Again all of these clichés, this week.

Jill DeWit:                            Yep.

Steven Butala:                   This is like positive cliché week.

Jill DeWit:                            Yep.

Steven Butala:                   Clichés that I think are true.

Jill DeWit:                            Yep.

Steven Butala:                   And they all have one thing in common, too, that no one ever thinks about. It’s all justifying the price of a property.

Jill DeWit:                            It is.

Steven Butala:                   Well, real estate agent, why is this property twice as much as all of the other property around it? Well, it has million dollar views.

Jill DeWit:                            Because you’re the front house. You know, that’s it. I agree.

Steven Butala:                   Hey, appraiser, are you think you’re gonna be able to appraise this? It’s twice as much as every other property in the neighborhood.

Jill DeWit:                            Mm-hmm (affirmative).

Steven Butala:                   I don’t know.

Jill DeWit:                            Exactly.

Steven Butala:                   It’s million dollar views.

Jill DeWit:                            Yep. I wish I could … Well, we’ll get into the show. I’m gonna try to do an interpretation here in a minute.

Steven Butala:                   Before we get into it, let’s take a question posted by one of our members on the landinvestors.com online community. It’s free. And as you listen to us, please drop your questions into the comments section below.

Jill DeWit:                            Walden asks, “Hey, guys, I’m in the process of automating a lot of what I do-

Steven Butala:                   Good.

Jill DeWit:                            And one area that is a sore spot for me is Excel/Google Sheets. Do you guys have any macros you could share for subdivision pricing and scrubbing.”

Steven Butala:                   This is a good question. So it doesn’t work like that. I wish it did. But I, and I think everybody else that’s listen to this, creates their own macros and creates their own …

Jill DeWit:                            System.

Steven Butala:                   Equations and spreadsheets and, you know, I think honestly most people who are good at that and it comes natural to them, it’s never finished the way an artist is like, “The painting is never finished.” So …

Jill DeWit:                            Right.

Steven Butala:                   What I would do, and we talked about this a lot at the live event, if this is something … Because this is an extremely important part of this, part of succeeding as an investor. I would find somebody else in the group who’s good at it and cut’em in on your deal somehow or start to work with them in some way. There’s gotta be something that you have that that other person doesn’t have, like what Jill and I have going on, where that’s just my forte. Data and analysis and things like that. And I’m not real interested in talking to people. I’m only interested in talking to a microphone.

Jill DeWit:                            Hold on a moment. I need to bring this question back down to everyone’s level, please, because you guys are way up here-

Steven Butala:                   All right.

Jill DeWit:                            Okay, can I please talk to the rest of the room, which is like 80% of us?

Steven Butala:                   Yes.

Jill DeWit:                            So, all right, here’s the deal. The question I see is, “Hey, I figured out I want to come in at X amount of dollars per acre. How do I quickly price and make all my spreadsheet numbers work?” And it’s gonna vary every time.

Steven Butala:                   Yeah, every time.

Jill DeWit:                            So once one person makes that formula for me, I can copy and paste it and use it. I know now I’m pricing them at $300 an acre, not $600 an acre.

Steven Butala:                   Yeah.

Jill DeWit:                            However your number is. Can someone just make some formulas like that for me, like you have done for somebody else that I’m not gonna name names. Mark. Do you remember that?

Steven Butala:                   Yeah.

Jill DeWit:                            That’s kind of funny, that one time … Anyway, do you want me to share that story? I’m not sure.

Steven Butala:                   If you want to.

Jill DeWit:                            I’m in it now. There was a while ago, I remember Mark, we were still doing work and stuff together, all of us, with Mark Podolski. And I remember him emailing you, going, “Can you just help me with this spreadsheet and make some formulas for me so I can figure out my ROI.” And do you remember-

Steven Butala:                   Yeah. ROI. I remember that.

Jill DeWit:                            Yeah. Yeah.

Steven Butala:                   It was an ROI analysis.

Jill DeWit:                            Like “So I can really assess what I’m making on these deals.” And you’re like, “Sure.” And it took you like 30 seconds and you emailed them back and I just thought that was funny.

Steven Butala:                   Yeah.

Jill DeWit:                            It comes naturally for you, but not for everyone. And then so that’s the correct way. If you’re asking for some magic formula that’s gonna apply for every county or every property-

Steven Butala:                   Yeah.

Jill DeWit:                            Across the board. That doesn’t exist-

Steven Butala:                   So think of a-

Jill DeWit:                            And that’s where you have to spend some time and-

Steven Butala:                   Jill’s right, I mean-

Jill DeWit:                            Think about what you’re doing here.

Steven Butala:                   It’s kind of like you asking me to write a story for you.

Jill DeWit:                            Right.

Steven Butala:                   Or write your business model. I mean, I can give you the basic stuff.

Jill DeWit:                            Right.

Steven Butala:                   But we can’t … Think about a spreadsheet or a blank Microsoft Word doc. It’s just blank.

Jill DeWit:                            Right.

Steven Butala:                   But think about a database that you buy or let’s say a CRM. Stuff’s pretty much already there and you just need to learn how to use it and make it work for you.

Jill DeWit:                            Right.

Steven Butala:                   They’re very different. And they often get confused with each other. And especially this day and age, Jill and I are old enough where we know-

Jill DeWit:                            Speak for yourself. Just kidding.

Steven Butala:                   We know … We remember a time when there was no software at all.

Jill DeWit:                            Yeah.

Steven Butala:                   Or when the only software on the market was stuff you where you created yourself.

Jill DeWit:                            Yeah.

Steven Butala:                   They gave you the tools to create it. So this day and age, I think everybody kind of expects they just open software and have it just smack’em in the face and tell’em what to do.

Jill DeWit:                            Right.

Steven Butala:                   And so I think for some things, that’s appropriate, but not all things.

Jill DeWit:                            Yep.

Steven Butala:                   And when you reap huge rewards, like changing your career and making hoards of money for the rest of your life, yeah, you gotta get out of your own head.

Jill DeWit:                            Right.

Steven Butala:                   You have to get out of your comfort zone and relearn some things.

Jill DeWit:                            Right. And I like what you said, Steven. My last comment on this is if it really makes your head hurt and you know what you’re trying to accomplish and you’re just not getting there, finding someone else that’s a whiz in spreadsheets, even if they don’t necessarily understand what you’re doing, if you can have someone help you out with some things that’s not crazy. Say, “Can you just make me … I’m trying to price … ” Because here’s what we’re all trying to do at the end of the day and let me cut to the chase. What we’re all trying to do is take a list of, let’s say 2000 ownership records, condense it down, take out all the duplicates, scrub those out, right? That’s what we’re trying to do.

Jill DeWit:                            Someone who is good at Excel can help with that. They don’t need to necessarily know why, but they can help with that. And there’s videos for that. And then the other thing we’re trying to do is, “All right, now I’ve got this good list. I know they’re all kind of like properties. And they’re all just a little bit different varying sizes. I want to price them all at 298 per acre.” And you just need a formula that’s gonna run down the whole line and do that quickly, because you’re not gonna sit there with a calculator. If you do, you’re doing it wrong. You’re not going to sit there with a calculator and-

Steven Butala:                   Calculator.

Jill DeWit:                            And go that line and that line. Right. How old is [inaudible 00:06:24], anyway? Your cell phone. Anyway, and do that. Just a quick formula to run down those lines and then even to change the pricing a little bit. But a lot of that’s in chapter five.

Steven Butala:                   I’ve never met anyone in our group, in the successful people that are in our group, who hasn’t mastered Excel and data and understanding how and why it’s used and understanding the power of a mail merge. Does that mean if you don’t get that stuff, you can’t do this? No.

Jill DeWit:                            Nope.

Steven Butala:                   What it means is you need a partner.

Jill DeWit:                            Yep.

Steven Butala:                   I’ve also never met anyone in our group who is incredibly successful who doesn’t know the power of picking up the phone and finding a buyer or finding a seller, once all the data is out. And you’ve got a pool of likely buyers or sellers. That is not my thing. So I got myself a partner.

Jill DeWit:                            Yep. Thank you.

Steven Butala:                   Just know your weaknesses. And know your strengths. And because if you do some stuff over and over again that you don’t like, you’re gonna quit.

Jill DeWit:                            That’s true.

Steven Butala:                   Today’s topic. Million dollar views. This is the meat of the show.

Jill DeWit:                            This makes me happy. Do you know what? I have to just interject just real quick my personal thoughts on this topic. This is what I kind of … I live for two things. One is a view. Because I’ve gotta have the water. I’ve gotta see the water.

Steven Butala:                   I do, too, Jill.

Jill DeWit:                            There’s just something-

Steven Butala:                   I absolutely have to be water-involved in my life.

Jill DeWit:                            Something about it. And I could stare at it for hours.

Steven Butala:                   Me, too.

Jill DeWit:                            Isn’t that funny?

Steven Butala:                   Honestly.

Jill DeWit:                            I will sit-

Steven Butala:                   We’ve never actually had this conversation, you and I.

Jill DeWit:                            No, we have not. I will study the waves.

Steven Butala:                   I will, too.

Jill DeWit:                            I’m like, especially … Remember that place? Remember the time we were at this place on the pier and it was at nighttime-

Steven Butala:                   This makes my [inaudible 00:08:13]. Makes me love you more.

Jill DeWit:                            Oh, thank you very much. We were somewhere at night. We were up high, in this round bar. Do you remember this? And watching the waves come in.

Steven Butala:                   Yeah. Tony’s in Redondo Beach.

Jill DeWit:                            Well, thanks. Anyway.

Steven Butala:                   If you’ve never been, you should go.

Jill DeWit:                            Yeah. All right, so we’re sitting in Tony’s upstairs. I mean, it was upstairs. The lovely establishment that it is and boy, does that carpet need to be ripped out.

Steven Butala:                   It’s a dump.

Jill DeWit:                            Anyway.

Steven Butala:                   But it’s got million dollar views.

Jill DeWit:                            It does have million dollar views. So it’s just so darn funny. So anyway, and I’m watching the waves come in at night and I swear, this is what I think about. This ties in, I promise. I’m watching the back side of the waves, because where they break, and it looked like frosting to me. Remember I said “They look like frosting”? Just the way the smooth water was. It was a beautiful day. The way the wind was just perfect or the breeze. It was just gorgeous. So I live for that stuff. I live for the views. I don’t even have to necessarily smell it. But that makes it even better, if I’m that close to the water. But as long as I can see it, all is right in my world. And I think a lot of people have a version of that. Like mountains.

Steven Butala:                   Mm-hmm (affirmative).

Jill DeWit:                            I think a lot of people need to see mountains. They maybe don’t want to be in the snow, but they want to look up and see the snow. Sunrise. Sunset.

Steven Butala:                   Some people get off on the farmland piece of it, too.

Jill DeWit:                            Yeah.

Steven Butala:                   Just rolling crops and stuff.

Jill DeWit:                            Openness.

Steven Butala:                   Openness, yeah.

Jill DeWit:                            Exactly. Some people don’t want that. They just want to know that I can see, all the way to the horizon, I see nothing. Some people love that.

Steven Butala:                   Some people it’s a fresh water lake.

Jill DeWit:                            Mm-hmm (affirmative).

Steven Butala:                   I’ll tell you, that works for me, too. Not as much as the ocean-

Jill DeWit:                            Right.

Steven Butala:                   But I like that.

Jill DeWit:                            And you know what? For some people, it’s Central Park.

Steven Butala:                   Yeah.

Jill DeWit:                            There’s a million dollar view. Talk about … They want the city view. They wanna be … Maybe they love seeing the buildings.

Steven Butala:                   Getting … Being there right in it. Yeah.

Jill DeWit:                            In the city. Maybe they love downtown Chicago. Maybe they love that.

Steven Butala:                   Or a skyline. Right.

Jill DeWit:                            Yeah.

Steven Butala:                   You know the irony of large cities is that the large city has a skyline, but when you’re in it you can’t see it, so you have to like New York’s version, this is in New Jersey.

Jill DeWit:                            That’s true.

Steven Butala:                   So you have to live in New Jersey to see New York and get the million dollar views, which is ironic.

Jill DeWit:                            Isn’t that funny?

Steven Butala:                   I lived in Cincinnati for a long time and you have to live in Kentucky, which is half the price, just to get the Cincinnati skyline. It’s kind of ironic.

Jill DeWit:                            That’s hilarious.

Steven Butala:                   So what is million dollar views mean? Again this is true cliché week. Next week is false cliché week. The property has million dollar … Wait. Again, it’s answering this question. Well, real estate agent, it’s twice as much as every other property in this market. What the hell?

Jill DeWit:                            Right.

Steven Butala:                   Well, it’s got million dollar views. So you’re gonna have to take that how you are. So what do we do as land people? We find dirt that has million dollar views. We buy it cheap.

Jill DeWit:                            Yep.

Steven Butala:                   We don’t buy because the people who own it? They may or may not know that it has million dollar views. They’ve never been there.

Jill DeWit:                            That’s true.

Steven Butala:                   And they don’t want it anymore. They just want some money.

Jill DeWit:                            That’s what’s so interesting. People-

Steven Butala:                   So get some million dollar view property.

Jill DeWit:                            Sorry, I didn’t meant to interrupt you. Some people still don’t get it.

Steven Butala:                   It happens all the time.

Jill DeWit:                            I’m sorry. I’m excited.

Steven Butala:                   That’s okay. Go ahead.

Jill DeWit:                            All right.

Steven Butala:                   It’s why people listen to this.

Jill DeWit:                            Thank you. Talk about unrehearsed.

Steven Butala:                   If it was just me. If it was just me-

Jill DeWit:                            Let’s pretend.

Steven Butala:                   We would have six … We would just … Okay, you just sit there?

Jill DeWit:                            Mm-hmm (affirmative).

Steven Butala:                   Well, I pretty much did that the whole show already. So go ahead.

Jill DeWit:                            So now it’s a good interruption. Now you like it.

Steven Butala:                   It is. I do like it.

Jill DeWit:                            All right.

Steven Butala:                   I liked it even then. I said it happens all the time and I think it’s good.

Jill DeWit:                            All right.

Steven Butala:                   I like when you interrupt me, because it’s like, “You shouldn’t wear that tie with those shoes.” It’s a good interruption.

Jill DeWit:                            Oh, okay. Now you-

Steven Butala:                   Like “Dude, you’re done. You don’t know it, but stop talking.”

Jill DeWit:                            Yeah, that was enough. That was my version of stop this. Just kidding. Now I lost my little train of thought-

Steven Butala:                   I know. I was wondering if that was gonna happen.

Jill DeWit:                            Aw, man. Was that your version of interrupting me?

Steven Butala:                   No. I didn’t do it on purpose. I really didn’t.

Jill DeWit:                            Okay. It’s fine. So-

Steven Butala:                   Buy dirt. Buy dirt. We’re super cheap. Got it.

Jill DeWit:                            Oh. That’s it.

Steven Butala:                   All right. Go.

Jill DeWit:                            So my last comment on the million dollar view is, people still don’t believe us that you can buy property that people don’t want. People don’t get. That has a million dollar view. They could care less. There are so many people out there that have more property than they know what to do with. They’ve forgotten, you know? It’s really weird, but people don’t realize that you’ll stumble across someone that has a huge portfolio and a lot of property. They just want to cash out. They don’t wanna one-off retail them all. That takes too long. They just want to get rid of’em. And there will be some nuggets in there.

Steven Butala:                   That’s it. I love portfolios.

Jill DeWit:                            I know. It’s the best.

Steven Butala:                   Well, you’ve done it again. You’ve spent another 15 minutes or so listening to the Land Academy Show. Join us next time, where we discuss “The value’s in the land, not in the house.”

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

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

Jill DeWit:                            Have I been interrupting you really? A lot today? I hope not.

Steven Butala:                   Well, it’s always. But it’s not interrupting. I really truly think we keep each other in check on this show.

Jill DeWit:                            Thank you. Hey, I wanna say something. Today’s Halloween, by the way. Ha ha ha. And you know what? If you’re thinking about joining Land Academy, because it’s Halloween, happens to be something really cool going on right now so you might wanna go toggle on over to my Facebook live show that I did earlier today, like an hour ago, and check out what I announced. Oh, and maybe maybe see me in a little bit of a costume. I had to share that. Please be sure and hit the subscribe button to stay up to date on our podcast. Like us and comment on what you’d like to see in future shows. If you’re listening on iTunes, please rate us there.

Both:                                     We are Steve and Jill.

Steven Butala:                   Information …

Jill DeWit:                            And inspiration.

Steven Butala:                   To buy undervalued property.

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