Bring Your Imagination means Untenantable (LA 848)
Bring Your Imagination means Untenantable (LA 848)
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: I’m Jill DeWit, broadcasting from sunny southern California.
Steven Butala: Today Jill and I talk about how the phrase, “Bring your imagination,” in a real estate posting really means it’s probably untenantable. It means you can’t move into it as a house, so bring your imagination.
Jill DeWit: Hilarious.
Steven Butala: All week this week is infuriating real estate cliches. I think this is Friday, right?
Jill DeWit: Yep.
Steven Butala: You’ll notice that Jill’s been wearing the same necklace all week this week.
Jill DeWit: I have.
Steven Butala: We record the show once every Thursday morning, and Jill’s real happy that this is the last show that we have to record this week.
Jill DeWit: I have to say this has been a rough week.
Steven Butala: Look at her.
Jill DeWit: I know.
Steven Butala: She’s done.
Jill DeWit: I’m tired. If you’re seeing me right now, I’m just playing with my hair. I’m like, “Whatever.” [inaudible 00:01:04] I’m tired.
Steven Butala: Anybody who’s in a relationship with one person that understands.
Jill DeWit: Hopefully you’re only in a relationship with one person.
Steven Butala: No, if you’re a young … If you’re in your early ’20, I hope you’re not in a relationship with just one person.
Jill DeWit: Okay. Okay.
Steven Butala: Male and female. You get that stuff out of your system before you find the person that you really like.
Jill DeWit: Got it. Anyway, move on. What were you going to say? It was a little bash on Jill, and that’s fine.
Steven Butala: No, that’s it. That’s all I had to say.
Jill DeWit: You did not. You started to say, “If you find yourself in this situation,” and then you stopped. You can share it.
Steven Butala: I was watching a movie, and there was a line in the movie. This person was recently divorced, and she said, “It was all over the way that he chews his food.”
Jill DeWit: Yes. Well, yeah-
Steven Butala: It was over chewing.
Jill DeWit: Yep.
Steven Butala: So if you’re in a relationship with somebody you know what I mean.
Jill DeWit: Yeah.
Steven Butala: It’s like sometimes you just have to bite the inside of your lip, and say, “I’m not going to watch him chew anymore.”
Jill DeWit: That’s was so funny, because you said that, and kind number three was in the room. You were sharing it with kid number three, and he’s like, “That’s stupid.” I looked at him, and I said, “That’s kind of true. I know people that have done that.” It’s like that was the last thing, how they chew their food. Then they were done. He’s looking at me like, “That can’t be real.” I’m like, “Yeah, no, no. It’s real. It’s very real.” It’s usually not the only thing.
Steven Butala: This is the last straw.
Jill DeWit: It was the last thing.
Steven Butala: Why is stuff like that so funny?
Jill DeWit: I know. It’s good.
Steven Butala: That’s a case for just never get married. Your woman doesn’t … All of a sudden decides she doesn’t like how you chew, so you have to give half of your stuff away. That doesn’t make any sense.
Jill DeWit: I don’t disagree with you. I didn’t say that. I don’t agree with it, but I’m just saying that kind of happens.
Steven Butala: I’m not yelling at you. I agree with you.
Jill DeWit: Thank you. Thank you.
Steven Butala: Before we get into the show’s topic, let’s take a question posted by one of our members on the LandInvestors.com online community. It’s free. As your listening, please drop your questions into the Comment section below.
Jill DeWit: Okay. JT asks, “Hey, all. My first blind offer campaign landed last week. I totally botched the pricing to the low side for like 90% of the properties. I realized what I did, so it won’t happen in the future. Luckily it was only like 300 offers.”
Steven Butala: Oh, no problem, then.
Jill DeWit: “But, I’m trying to decide if I should mail a correction or write it off and move on for now.” That’s what I’d do. “I intent to work in the county long-term, so I don’t want to inadvertently burn any bridges. Thoughts appreciated.”
Steven Butala: I would resend it, because you did it all. The data’s there. You purchased the data.
Jill DeWit: Yes, you have all the data. That’s a good idea.
Steven Butala: The spreadsheet’s done. You just scrubbed out the stuff. You’ve done 95% of the work.
Jill DeWit: Just put in new prices.
Steven Butala: If you know what the new prices is, I’d just drop it right back in the mail.
Jill DeWit: That’s not crazy.
Steven Butala: I will say this, don’t send a … I really, truly, do not think you should send a 300 unit mailer out. You are anybody else, by the way.
Jill DeWit: It’s true.
Steven Butala: I really think that you should increase your chances of success dramatically and send out about 1,500 units.
Jill DeWit: Right.
Steven Butala: I know I say this constantly for every 300 letters you send out, you usually buy property for rural vacant land. For every 1,000 or 1,500 you’ll buy one infill lot, and for houses, it’s around 2,500 to 3,000, although we’re changing that, lowering it as time goes on. Do yourself a favor, man. Make sure you’re successful. Send out a 1,500 unit mailer, bare minimum.
Jill DeWit: I would like JT to give it like 30 more seconds and see what can come of it. Because often, you will find that even though you think you totally botched it, you might still get one or two out of it, you know?
Steven Butala: Yeah. I just think that … Actually, JT, will you reach out to me … If you do resend this, will you please reach out to me on email, and let me know how it goes? Because, one of the questions that Jill and I get a lot are, “How often do you re-mail or send a follow-up mail to a single market?” I’ve never done ever. I don’t think you have, have you?
Jill DeWit: No.
Steven Butala: I’d love to see … I’ve heard a lot people’s … They send out follow-up post cards saying, “Hey, I just wanted to let you know I did send you an offer a couple weeks ago.”
Jill DeWit: “If you’re serious, let me know.”
Steven Butala: “Did you not get it?” I really think that that may or may not … I don’t know. I don’t know if it’s successful. I’ve heard a lot of people say it is.
Steven Butala: Today’s topic: “Bring your imagination,” in a real estate description really means the property’s probably untenantable. This is the meat of the show.
Jill DeWit: I love this.
Steven Butala: All week this week it’s infuriating real estate cliches. Why would you say, “Bring your imagination,” in a real estate listing? Because you’re covering something up.
Jill DeWit: I hope you are bringing your imagination every time.
Steven Butala: Yeah.
Jill DeWit: Like, “What could I do with this house?”
Steven Butala: If you look at the pictures, and it’s all cleaned up, and it’s priced accordingly, you don’t have to have any imagination. You just move your stuff in.
Jill DeWit: That’s true.
Steven Butala: Or if it’s a wholesale dump … and believe me, we sell wholesale dumps all the time, buy and sell them … then just say, “This property is a wholesale and needs to be renovated. Investor special.” Investor special is how we label almost all the properties we sell that are not retail.
Jill DeWit: That’s true.
Steven Butala: I don’t say, “Bring your imagination.” I assume that if you’re a flipper, a rehabber, you have a good imagination. It’s infuriating.
Jill DeWit: Well it’s all, sadly, kind of belittling. That’s it. That’s my only thing. It’s like, “I don’t need to be told that. I can figure it out. I’m an adult here, by the way. I’m buying a property. I can figure this out.” I don’t get it.
Steven Butala: It really belittles the whole real estate industry in general.
Jill DeWit: It does.
Steven Butala: If you go into LoopNet and look at office buildings in your area, do you think any of the descriptions say, “Bring your imagination”?
Jill DeWit: “Bring your imagination.” Can you imagine …
Steven Butala: It’s an office building.
Jill DeWit: That’s hilarious. Good point. Why doesn’t everyone just raise your communication with who you’re talking to. Come on. It does drive me batty, I agree.
Steven Butala: Speaking of markets, let’s take a look at … This is the statistical portion of the show [inaudible 00:07:24] this week.
Jill DeWit: Wow. I’d like to point out this is a great … That’s Heidi Klum.
Steven Butala: Isn’t that funny?
Jill DeWit: That’s a hilarious costume there that she did. That’s really wild.
Steven Butala: If you’re watching, it’s obvious. If you’re listening, I’ll read it to you.
Jill DeWit: Okay.
Steven Butala: This is the top 10 housing markets. Top 10 states predicted to have strong housing markets in 2018. Number one, Nevada. Housing forecast for Nevada suggest that the market will continue to be strong and home prices will rise. Las Vegas median home price values went up 6% over the last 12 months. Home values rose 8.6% during the most recent 12 month reporting period. The median price is approximately 285,000 bucks. “Steve, why do you constantly talking about houses?” The name of the show is called Land Academy. Here’s why.
Jill DeWit: That’s good. I love it when you that to yourself. When you talk to yourself like you’re an unrelated third-party, “Steve, what is going on?” I never do that.
Steven Butala: Because, that’s what I’ve always wanted to say to my college professors. It’s like, “Dude, what the hell is that tirade you’re just going off on? I mean, come on, it’s nothing to do with what we’re talking about.”
Jill DeWit: I’ve never done that. I’ve never talked about myself like that. Well, I’ve never done it out loud. In my head, I’ve said, “Jill, get it together,” but I’ve never out loud like you do, “Steve, what is the point here?” It’s [inaudible 00:08:54] hilarious.
Steven Butala: Doesn’t it make you feel better when you just said that?
Jill DeWit: No. It feels weird.
Steven Butala: You’re like, “Gee, Steve, what the hell?”
Jill DeWit: It’s more fun with you, not me. I think it’s weird. It’s funny.
Steven Butala: When you send out … First of all, this is a hot housing market, okay? We all know Nevada is hot.
Jill DeWit: Yeah. Literally.
Steven Butala: Nevada, and Florida, and Texas, and Arizona are probably this hot five. Anyway, we’ll find out here in a second. When you go to price an infill lot mailer, you’re sending it out … usually it’s 10% to 15% of what you are going to wholesale the property for to a builder. 10% to 15% of 285,000 is 30 grand. You’re going to buy it for 30 to 35,000 and sell it for about 50 to a builder. That’s going to make his day and yours. That’s why I’m reading this list.
Jill DeWit: Thank you.
Steven Butala: Texas, number two. Let’s see, steady-
Jill DeWit: Dallas. Yep. Dallas-
Steven Butala: A steady flow of profitable companies continue to relocate.
Jill DeWit: That’s what I said.
Steven Butala: Exactly right, Jill. That’s what you said yesterday.
Jill DeWit: Well, shucks, we just watched Toyota leave here, and Lexus, and go to Texas.
Steven Butala: $340,000 in north Texas is the median home price. That’s outstanding. Outstanding market to do this in.
Jill DeWit: Yep.
Steven Butala: Florida, number three. Oceanside living.
Jill DeWit: Again, no state income tax. Isn’t that interesting, too, that all three of those states-
Steven Butala: All three of these are no state income tax.
Jill DeWit: … no state income tax. Ding, ding.
Steven Butala: Median price is 275. Florida’s always been a great market to buy any type of land.
Jill DeWit: Right.
Steven Butala: The whole East Coast dreams of retiring to Florida. Why? I don’t understand, but because we have California in our country. But Florida’s a great place to … It’s cheap and very, very, affordable, and the weather’s good. All that stuff. California-
Jill DeWit: I love that we’re number four. That’s kind of cool. Housing is strong.
Steven Butala: For example, the median home price has increased $100,000 in San Francisco over the one year.
Jill DeWit: Check this out. This is a really interesting article. I like what they said, ” Those with top credit scores have a competitive advantage over the competition when it comes to securing a mortgage.” I thought it was saying that we, overall, have high scores in California, for a second.
Steven Butala: That’s what I thought.
Jill DeWit: I’m like, “That would be kind of cool.” Stockton.
Steven Butala: Stockton’s predicted to … housing to grow 4.6%. The median house in Stockton price is 385,000. It’s a great place to do this.
Jill DeWit: That’s wonderful.
Steven Butala: Fantastic place to buy and sell infill lots.
Jill DeWit: See, this is the part I just read, the San Francisco thing, is you read that last line.
Steven Butala: Yeah.
Jill DeWit: That’s interesting.
Steven Butala: I just read it. I read it earlier.
Jill DeWit: Okay. Thank you.
Steven Butala: Number five, Utah. That’s really surprising. The median home price is 360,000.
Jill DeWit: Oh, that’s doesn’t surprise me at all. Think about Utah and the … I think that Utah is gorgeous.
Steven Butala: Yeah.
Jill DeWit: I mean, there’s so-
Steven Butala: It does really underrated.
Jill DeWit: It really is.
Steven Butala: It doesn’t get a fair shake.
Jill DeWit: It really is. It’s kind of an under the radar place. When I think of Utah nowadays, I think of it like we all thought about Seattle. We used to pooh-pooh on Seattle and Washington state, because it’s so cold and rainy, kind of thing.
Steven Butala: That’s all fiction.
Jill DeWit: Totally. I think they did that on purpose to keep the rest of us out. That’s my theory. It’s gorgeous.
Steven Butala: Number six, North Carolina. Driven by the amount of people relocating from other states, and there’s a lot of land.
Jill DeWit: Huge.
Steven Butala: I’ve done a bunch of deals in North Carolina.
Jill DeWit: Well, you got B of A there. There’s a lot of airline hubs there. There’s a lot of opportunity there.
Steven Butala: Charlotte is among the fastest growing … capitalized on the popularity of mixed use developments.
Jill DeWit: Downtown there is gorgeous, by the way. It’s clean and pretty. They got an expansion football team down there now, and stuff.
Steven Butala: Median home price is 325. Outstanding place to do this. Colorado. Nothing bad about Colorado ever.
Jill DeWit: Yeah.
Steven Butala: I don’t [inaudible 00:12:55] there’s anything bad to say about Colorado.
Jill DeWit: No, Colorado’s great.
Steven Butala: 3.1% average growth rate.
Jill DeWit: I would beg to differ. I have to ask this here. [inaudible 00:13:04] says that we in California, especially southern California, are a bunch of hippies. I think there’s more hippies in Colorado.
Steven Butala: Yeah. Exactly.
Jill DeWit: Thank you.
Steven Butala: I don’t see an average home price. Tennessee is number eight. No surprise there. $358,000 average home price.
Jill DeWit: Nashville’s awesome.
Steven Butala: Days on market are super, super low. In 2.0, we talk about analyzing zip codes and pitting them against each other, so you can see which ones, statistically, is the hottest market. And that’s where you want to buy land. This would be like the first step. I would say, “Okay, great. The Nashville area’s a great place to do this.” Then I would download all the zip code data for the Nashville area, and pit the zip codes against each other. Then specifically find out which one to mail.
Jill DeWit: That’s good.
Steven Butala: Number nine, Oklahoma. No big …
Jill DeWit: Surprise.
Steven Butala: … surprise there.
Jill DeWit: But that is interesting.
Steven Butala: Home prices average $99,000.
Jill DeWit: Yeah.
Steven Butala: State-wide median home prices is 116,000. That tells me it’s too low. I mean, you can do it, and you can make money, but you’re going to make $2 to $5,000 a property which is not to shake a stick at, but why?
Jill DeWit: Yeah.
Steven Butala: It’s better to make 80,000. And Georgia. Georgia and Mississippi have always … and Alabama, that part of the country. Louisiana … has shocked my why anyone would live there at all.
Jill DeWit: In Georgia?
Steven Butala: Yeah.
Jill DeWit: Oh. R.E.M. Georgia.
Steven Butala: I mean, rock bands come out of Georgia, I guess. I don’t know. That’s the only thing I know about it.
Jill DeWit: Plantations. Agriculture. Maybe that’s the big thing there. I don’t know. I’m trying to think. Well, Atlanta. Atlanta. Atlanta is a big city. Think about … Wasn’t Delta … so, I’m sure there’s a lot of good, big … that I’m not thinking of right now off the top of my head … businesses in Atlanta, I am sure.
Steven Butala: Median home price is 220.
Jill DeWit: Thing about Georgia, though, they seem to get beat up lately. I think of Georgia like Louisiana, because obviously, I mean weather-wise. I think about those things that … I don’t know if everybody else does, but I do … to where I’m going to relocate. It’s a tough one. I have to think about the weather, and the climate, and the storms, and the tornadoes, and the that.
Steven Butala: Well, you’ve done it again. You spent another 15 minutes or so listening to the Land Academy show. Join us next time where we discuss another interesting episode, and we answer your questions posted on our online community, LandInvestors.com. It’s free.
Jill DeWit: You are not alone in your real estate ambition.
Steven Butala: I can’t read.
Jill DeWit: That’s okay. I like that. You did great. It’s good to shake it up now and then.
Steven Butala: You going to change your necklace next week?
Jill DeWit: Maybe I will, maybe I won’t. Please be sure and hit the Subscribe button to stay up-to-date on our podcasts. Like us and comment on what you would like to see in future shows. If you are listening on iTunes, please rate us there. We are Steve and Jill …
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