Good Acquisitions Solve Slow Sales (LA 849)
Good Acquisitions Solve Slow Sales (LA 849)
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 how acquisitions solve slow sales.
Jill DeWit: Oh my gosh.
Steven Butala: This is a topic that we’ve talked about in the past.
Jill DeWit: Yep.
Steven Butala: Like several topics, but people keep asking about it.
Jill DeWit: Well, it’s so funny, because I tell people … They ask this question, “Why do you guys not talk about sales that much?” I’m like, “Well, we do.” We all have a system for it. But there’s a reason why we don’t get hung up on them, and this is it. So, I’m happy to go into it more.
Steven Butala: Good. Do we looking like we’re emceeing a parade?
Jill DeWit: We kind of do today. You mean with our colors?
Steven Butala: No.
Jill DeWit: Or just what we’re looking at right now?
Steven Butala: Like, this whole thing’s set up like we’re talking about a parade.
Jill DeWit: Do you know what would be funny? I’m gonna put a big thing of roses right here, because that way, like, where’s the camera? Here we go. If we had roses here, and roses all around us, it would be like we were doing the Rose Parade, that we were emceeing a parade.
Steven Butala: Oh my gosh.
Jill DeWit: That would be kind of cool.
Steven Butala: You know, when the Rose Parade happens, we could do it.
Jill DeWit: I think that would be cool.
Steven Butala: Because we’re coming to the end … Are we in the middle or the end of football season right now?
Jill DeWit: Towards the … Well, middle end. How about two-thirds?
Steven Butala: Okay, two-thirds.
Jill DeWit: Okay.
Steven Butala: Jill wants to get out of here real fast. She’s done.
Jill DeWit: Are we nine and one?
Steven Butala: We haven’t even started the show yet, and she wants to leave.
Jill DeWit: Nine and one? Eight and one. Nine and one? Shoot. I can’t remember if we’re nine and one or eight and one, but I know it’s only one.
Steven Butala: The Rams?
Jill DeWit: Yup. They just beat Seattle yesterday, in Seattle, by the way.
Steven Butala: Tell us all why you want to get out of the …
Jill DeWit: Oh, I just have-
Steven Butala: What are you gonna do for the rest of the day?
Jill DeWit: It’s a gorgeous day. I want to get out and get on my bike.
Steven Butala: Oh, that’s not true.
Jill DeWit: It’s just beautiful, and it’s sunny.
Steven Butala: That’s not what you told me before the show.
Jill DeWit: It’s beautiful. It’s …
Steven Butala: They’re filming a …
Jill DeWit: I have two things going on right now. Should I share them?
Steven Butala: Yeah.
Jill DeWit: Okay. Well, one of them is, well, happy Veteran’s Day. It is Veteran’s Day. Everybody’s out having fun. It’s gorgeous. Believe it or not, even though there’s fires going on around us. You couldn’t tell, where we live. You know?
Steven Butala: Yeah.
Jill DeWit: Down to the beach. It’s a beautiful, sunny day. A high of like 75 or 77, or something.
Steven Butala: Forest fires.
Jill DeWit: Yeah. There were fires going on up north of us. [inaudible 00:02:08] see the smoke. But it is a big deal, and it is very serious, and I am-
Steven Butala: Serious.
Jill DeWit: … very sad, and very sorry.
Steven Butala: Malibu is evacuated.
Jill DeWit: I know. It’s just crazy. Then, so that’s going on. It’s Veteran’s Day, so I want to say thank you to our veterans. I’ll just say it now, that we are offering a special for today only. It’s 20% off for Veteran’s Day. So, if you are thinking about … If you’re listening to this right now, you have until tonight. You’re ready for that little thing to push you over the edge. Well, here it is. It’s 20% off of our program. The coupon code is VET20. V-E-T 20. If you go to landacademy.com, click join, you will see about it there.
Jill DeWit: The third thing is, yeah, they’re filming on our beach, so I kind of want to go for our purposes. You know, we do video and audio, and so I want to go check out that. I’m a huge fan of Kristin Bell, and it’s … Shoot. I can’t think of the name right now.
Steven Butala: Veronica Mars.
Jill DeWit: That’s it. Veronica Mars. I guess they’re bringing the show back. I didn’t really see it in the past, but I’m gonna go check it out, because they’re filming right by our house today.
Steven Butala: We got a notice on our door. It’s, “Don’t be alarmed.”
Jill DeWit: Exactly. “If you can’t find parking for your guests, this is why.”
Steven Butala: So because of all that, this show just is boring for Jill.
Jill DeWit: Oh, you’re so silly. No.
Steven Butala: Before we get into the topic, let’s take a question posted by one of our members on the landinvestors.com online community. It’s free, and as you’re listening to us, please drop your questions into the comments section below on YouTube.
Jill DeWit: Joe asks, “I’m selling a property with financing in Pennsylvania. I spoke with an attorney, and he recommended I not record anything at the county until the property is paid in full. That way, if they stop paying, I don’t have to go through a foreclosure.”
Steven Butala: Hold on to that attorney.
Jill DeWit: I love it. Exactly. “I wanted to use a loan servicing company, but it seems as though they will only get involved if I have something recorded at the county. Anyone have any sort of experience with this sort of thing?” Well, I do.
Steven Butala: Yeah, just keep moving through the list of loan servicing companies, and you’ll find one.
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: They change their rules all the time. Go ahead.
Jill DeWit: Or, use our auto payment system. It’s not like a loan servicing company. You still have to take care of your own documents. But, you know, making sure you send out the right end of year statements and things like that. But if you want to make it really, really easy, you can go to use our Heartland Payment Systems. You can find it off our websites. That, you could set up like auto pay, so you don’t need a servicing thing. You just kind of work it out on your own.
Steven Butala: Yeah. You know, everybody who’s used a loan servicing company once or twice just doesn’t use it anymore.
Jill DeWit: Exactly.
Steven Butala: Because of what Jill’s saying. They only do like two or three things. They set up the contracts for you, and they’re gonna request that you give them the contracts that you use anyway. That takes a half hour, maybe.
Jill DeWit: Right.
Steven Butala: They’re gonna set the person up on auto pay, and they’re gonna put them into a system, a software system, where it shows every month how much principal and interest they’re paying, and then they send out the 1099s at the end of the year, the 1099-S.
Jill DeWit: Right.
Steven Butala: All of which if you’re brand new, it sounds complicated. “Oh my gosh. Yes. I’m actually gonna run out and get a loan servicing company, because I don’t want to deal with it.” But they really don’t do that much.
Jill DeWit: Right. Once you figure it out, it’s easy.
Steven Butala: But, I would if you’re brand new.
Jill DeWit: Yeah.
Steven Butala: That’s how you learn. So, I would actually … There’s a company that … Evergreen. Evergreen Loan Servicing Company, Jill and I used years ago. I know they’re still around. People still tell me that there’s good stuff. So, but it sounds like … Ask your attorney. I think your attorney just gave some great advice, which doesn’t always happen with lawyers.
Jill DeWit: Exactly.
Steven Butala: Today’s topic? Good acquisition solves slow sales. This is the meat of the show. This is one of the top 10 questions, or top 10 topics we get requested. You know, because people that are in the business, they’re concerned. They have a lot of concerns before they send the mail out, like, “Oh my gosh. What’s gonna happen. Can I ever sell this property?” To which my answer is always, you know, “If you buy it right, you’re not gonna have any issues selling it at all.”
Jill DeWit: It’s true.
Steven Butala: I mean, you can’t buy it and then never tell anybody you ever bought it.
Jill DeWit: Exactly.
Steven Butala: You still have to put it out there on the Internet, and talk to the other people in our group about it, and things like that. But, yeah. If you buy it right, you’re gonna do great. You know, what I’ve seen lately is a trend in our group, for some reason, is everybody buys it right. That’s been consistent since the beginning. But I see people wanting to sell it for retail prices.
Jill DeWit: I was gonna say that, too. It was either last week or the week before, in a member call. Someone said, “You know, I know I can double my money tomorrow, but I think I’m gonna hold out and do it three and four times.” I’m like, hold on a moment.
Jill DeWit: Dude, this is exactly what you’re saying. Good acquisitions, they obviously bought it right. They can double their money and sell it fast. They know that, because it’s still under everybody else’s prices, like you’re saying. Do we need to get that greedy?
Steven Butala: Yeah.
Jill DeWit: That’s it. I don’t necessarily … I mean, I understand if you want to hold on to it, like Steven’s saying. Go for retail. You know? I’m sure there’s people out there that want to do that. But then again, dealing … Here’s where I get in. I don’t really want to deal with the retail buyer. I’d rather deal with the get out quick. You know, the wholesale buyer.
Steven Butala: Yeah. There’s several things that’ll stop you from getting to where you want to go, to scale your business to where you just work for yourself, you no longer have a job, and this is one of them. Maximizing price, sale price, on any given asset. Nothing will slow you down more than that. Very few things will slow you down more than that. You’ll sit there for months and own a piece of property, and you’ll get your price eventually.
Jill DeWit: Yeah.
Steven Butala: But how many deals could you have done, where you just doubled your money?
Jill DeWit: Exactly.
Steven Butala: You know, in between that time?
Jill DeWit: Yup.
Steven Butala: So, buy it cheap, sell it cheap, get to the next deal, and do it over and over and over again, and watch your bank balance grow.
Jill DeWit: Exactly.
Steven Butala: Anything that stops you from doing what I just said … Maximizing value, all kinds of life events … You have to get rid of that stuff. You have to get it out of your life. It’s very hard, mentally. Believe me, I understand. It’s hard for people, because we’ve been taught this our whole lives. From our parents, and idiot real estate agents, and everybody that’s in the real estate industry. “Oh, you left a bunch of money. You’re an idiot. You left a bunch of money on the table.”
Jill DeWit: Oh, true. That crazy …
Steven Butala: “Are you kidding me? You could have got X for that asset. What are you doing?”
Jill DeWit: I know.
Steven Butala: Don’t listen to them.
Jill DeWit: I know.
Steven Butala: Double your money, get out of there, buy two more. Double your money, get out of there, buy four more. Double your money. Eight, 16, 24. You know, 16, 32.
Jill DeWit: Yup. You know, and I was just thinking about slow sales. When do I ever see or hear about slow sales? It’s usually just those two things. One, they paid too much, then it’s hard to sell. I understand that. Because now you’re asking too much. That ties into this, obviously. And the the other thing is … I want to just kind of hit it home, and talk about it a little bit more … It’s reach.
Steven Butala: Mm-hmm (affirmative).
Jill DeWit: Like Steven was just alluding to, if you have slow sales, either it’s priced too high, and/or you’re not putting it out there in front of the right person. Because if you have it in a system … Which is what we talk about. Let’s not get crazy. Let’s make it easy on ourselves. Have a nice … I felt kind of jacked up, so I’m trying to slow down. Can you tell here? I felt like I was sounding like I just drank, like, eight cups of coffee. Which I didn’t, but I was kind of all jacked up, because it’s such a great day today. Anyway-
Steven Butala: I think it’s fine.
Jill DeWit: Oh, good. Okay.
Steven Butala: Is that code for, like, “Steve, you’re jacked up”?
Jill DeWit: No. You’re all mellow.
Steven Butala: Oh, okay.
Jill DeWit: I feel like that’s why I’m trying to mellow out a little bit. Because I feel like you’re mellow and calm, and you’ve got the radio voice going, and I’m like a little Tasmanian Devil over here. That’s what I feel like I sound like.
Steven Butala: Oh.
Jill DeWit: So, going 90 miles an hour. But, in an effort to be calm in your sales process, you should really have a good … What am I trying to say? System. And you should be posting it on your website, and every single social media thing that you have. Putting it out on other land selling sites. You know, if you’re not doing this, you might experience slow sales. And we don’t want that. So, that’s-
Steven Butala: It’s a race.
Jill DeWit: To sell?
Steven Butala: It’s a race to turn deals, and double your money on each deal for cash.
Jill DeWit: Yeah. That’s my favorite.
Steven Butala: This isn’t casual.
Jill DeWit: That great?
Steven Butala: Yeah, I mean you could offset your mortgage, I guess.
Jill DeWit: Isn’t that funny?
Steven Butala: But why would you do that?
Jill DeWit: Have you noticed in our group, by the way, too, we talk about that. I think in our group we’re more talking about … We don’t talk about how much profit you made on a deal. It’s how many deals have you done.
Steven Butala: Yeah. Yeah, you’re exactly right, Jill.
Jill DeWit: [inaudible 00:11:15]. So, everyone is understanding and adopting our philosophy, and it’s just so much easier, too. I tell people all the time. Say you have $10,000 to invest, and you’re just starting out. Buy 10 $1,000 properties. Do them fast. If you goof up one, that’s okay.
Steven Butala: It doesn’t matter.
Jill DeWit: The other nine will cover for it.
Steven Butala: And you won’t, anyway.
Jill DeWit: It’s okay. You’ll be great.
Steven Butala: Yeah.
Jill DeWit: Then first is if you buy one property, and all your eggs are in one basket, and you’re staring at that one property … You know, that’s nutty.
Steven Butala: Yup. Just get that one deal done.
Jill DeWit: Yeah.
Steven Butala: If you have 10 deals done … Here’s the stages. Get that first deal done. It doesn’t matter how messy it is. Forget about everything. Just get past that one deal, bought and sold. Don’t care about the numbers.
Jill DeWit: Right.
Steven Butala: Even if you lose money, at least you’re gonna learn. Which no one ever does. I mean, not no one, but somebody does.
Jill DeWit: Right.
Steven Butala: Then it’s a race to 10 deals, to see if you really want to do this. Because there are some people that are like, “You know, this is just not my thing.” Some people, it just sings to them. They’re usually professional people, that have … Just, like this is the answer: “I can’t stand reporting to this idiot boss anymore. I can’t stand wearing this suit anymore. I thought I liked mechanical engineering. I don’t. I thought I liked being a pilot. Yeah, it’s great, but I still work for somebody.” And all of those delusions of when you were younger, about these careers. You really find out that it comes down to one thing: I have a boss, and he’s an idiot. Forget about the fact that it’s awesome to fly an airplane, and it’s great to be a mechanical engineer and build bridges or whatever. But the fact is, you’ve got deadlines and stuff, so you want to work for yourself. You’ve already figured that out.
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: So now you’ve got the tenth deal, you’re working on the eleventh deal, and you’ve realized this is what you want. This is what you want to do. So, the next step is to get people in place to do the deals for you. Get people in place to do the deals for you, and make sure you have enough money. Those two things. Make sure you’re seeking outsource financing, so you can grow as fast as the … Everybody should be, in our group, and everybody considering this should have no issues purchasing real estate. They should have issues with how fast they’re selling it, and if you’re buying it cheap enough, the systems will sell it for you.
Steven Butala: And they should be constantly running out of money. You should always have more deals than you have money. A lot of people feel really bad about it, like, “Oh, man. If I just had more money.” All you have to do is seek that out. There’s many, many people in our group who have tons of money, that are only here to lend money. Not lend. Become partners on deals. So, those are the three steps. Then from there, we usually never hear from you again, because you’re off being rich somewhere.
Jill DeWit: Exactly. Exactly.
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 experienced recession advice, where I talk about having … Well, I have a lot of advice about getting stung in a recession, [crosstalk 00:14:17]-
Jill DeWit: You have a lot of advice about a lot of things.
Steven Butala: Yeah, I know.
Jill DeWit: Let’s just call a spade a spade, Steven … And we answer your questions posted on our online community, landinvestors.com. It’s free.
Steven Butala: You are not alone in your real estate ambition.
Jill DeWit: Did we cover that?
Steven Butala: I think we covered it well.
Jill DeWit: I think we did, too.
Steven Butala: Despite all the distractions that were happening in this studio while that was happening-
Jill DeWit: There was a lot of distractions going on.
Steven Butala: … I think I kept it together.
Jill DeWit: You did. You kept it together. One of us has to. Thank you.
Steven Butala: I think I carried you, quite honestly.
Jill DeWit: Hey. 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. And if you’re listening on iTunes, please rate us there. We are Steve and Jill.
Steven Butala: We are Steve and Jill. Information …
Jill DeWit: And inspiration …
Steven Butala: To buy undervalued property.
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