Beginner & Intermediate Groups of Land Academy (LA 861)
Beginner & Intermediate Groups of Land Academy (LA 861)
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 am Jill DeWit, broadcasting from sunny Southern California.
Steven Butala: Today Jill and I talk about the beginner and intermediate groups of Land Academy. You know, I was thinking before we started this that these groups kind of form themselves.
Jill DeWit: It’s true.
Steven Butala: Everybody in our group was a beginner-
Jill DeWit: True.
Steven Butala: And they just moved on to the … they just got better at it. So what could be better than that? Just like-
Jill DeWit: And they need different things now.
Steven Butala: Yeah, and so do Jill and I.
Jill DeWit: Yeah.
Steven Butala: Which is-
Jill DeWit: I’d love to hear in a few minutes what you need here, Steven, and what you don’t need anymore.
Steven Butala: I’ll be happy to cover that.
Jill DeWit: I know.
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. As you’re listening, please drop your questions into the comment section below.
Jill DeWit: Luke asks, “I was looking through some surveys today around some land I have. I see others are buying smaller land than mine for more money. They are splitting them up five ways with a survey. They are drawing in easements to county roads. They are adding water well sites to the easements. They are drilling a water well and selling the lots. I talked to some guys doing this. They are doing well sharing contracts. They have the first one developing to pay for the pump and plumbing, etc. The second pays all the costs, 1/5, then 1/3-”
Steven Butala: This is brilliant.
Jill DeWit: “Pays all the less, the 2/3 costs are split until all the costs are split five ways.” Oh, is this good? “It got me thinking, would you guys mail on this process?”
Steven Butala: Yeah.
Jill DeWit: “Either carry it out or sell the land with the plan. What pitfalls do you foresee? Do you think I can sell land contingent on a water well and then get it drilled and paid for out of title? Sell one lot to pay for the land, one to pay for the well, and then the three for profits?” I like that one the best. “The economics look good. Timely, not very long. Am I crazy?”
Steven Butala: No.
Jill DeWit: Yeah.
Steven Butala: This is a perfect example of now intermediate to advanced rural vacant land. What you’re talking about is a development project-
Jill DeWit: Right.
Steven Butala: Albeit short timeframe and very inexpensive compared to let’s say developing a commercial piece of property in an apartment building, or a strip mall, or a regional mall.
Jill DeWit: Yep.
Steven Butala: But how many people are doing this? Very few.
Jill DeWit: I know.
Steven Butala: So I love all of it. I would … everybody loves a completed project. Everybody. And they’re willing to dramatically pay a premium for it. Think about a renovated house where you just walk in, it’s furnished and they hand you the keys and you’re done. Everybody loves that.
Jill DeWit: Exactly.
Steven Butala: So I don’t think this is any different. I would either do one of two things: I would finish it yourself and pay for it, because you know it’s going to sell, just the same way that you know a completely renovated house it going to sell; Or I would purchase the land and complete the plan, just like you said, which happens in residential real estate all the time. You get it subdivided to go through all the paper pieces of the whole thing, and then sell it to a developer whose comfortable doing that for a premium.
Steven Butala: So I love this. The parcel splitting, this is a perfect parlay into intermediate and beginner, or beginner to intermediate-
Jill DeWit: Yeah, that’s true.
Steven Butala: What this show’s about. Splitting parcels, there’s nothing more profitable in real estate than taking a 40 acre property, buying it for $4,000.00 and splitting it up into one acre properties. Now you’re $4,000.00 into this thing, I’m oversimplifying because that’s what Jill loves.
Jill DeWit: Welcome to my world.
Steven Butala: $4,000.00 … now you’re into this thing for $4,000.00 and you’ve got 40 one acre properties that you’re going to sell for $1,000.00 each. Anybody would pay $1,000.00 for an acre.
Jill DeWit: Yeah.
Steven Butala: Jill-
Jill DeWit: Heck-
Steven Butala: You turn a $4,000.00 asset into a $40,000.00 asset.
Jill DeWit: Heck, you did all wrong.
Steven Butala: By drawing some lines.
Jill DeWit: And you it all wrong and you sell them for $500.00 each, you’ll still 40 into 20. I like that too.
Steven Butala: So this is a very dramatic example. In reality, please don’t run out and do this because you can’t. There’s a lot of things that really will stop you from doing this. The county will not let you do that. But I’ll tell you what’s very, very realistic, taking a 40 acre property for $4,000.00 that you purchased, and splitting it five ways.
Jill DeWit: Right.
Steven Butala: A couple of five acre properties, maybe a 10 and some two and half, two and a half kind of thing like that-
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: If that adds up to 40, I don’t think it does, but anyway-
Jill DeWit: That’s okay.
Steven Butala: That’s very realistic splitting properties five ways-
Jill DeWit: Right.
Steven Butala: Which is what Luke just talked about.
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: So splitting property, here’s the great thing about this too, as Jill is reading this question, this is Luke Smith. We all know Luke.
Jill DeWit: Yeah.
Steven Butala: To make a tremendous amount of money, you don’t have to do that many deals. If you do three, four or five projects like this, you’re going to make probably a million bucks.
Jill DeWit: Yeah.
Steven Butala: So that’s kind of the topics that we had at our last group, our last live event.
Jill DeWit: That’s true.
Steven Butala: You want to carry yourself doing 100 deals a year, or do you want to do five deals, and just chill about it and make-
Jill DeWit: Exactly.
Steven Butala: The same amount of money?
Jill DeWit: Oh, I know what I’d pick.
Steven Butala: Me too. Do you have anything?
Jill DeWit: No. Oh gosh no.
Steven Butala: Today’s topic: The Beginner and Intermediate Groups of Land Academy. This is the meat of the show. Go ahead, Jill.
Jill DeWit: Well you know, like you alluded to, it’s kind of gone that way. Everyone was once a beginner, right? Our whole group we had how many beginners, and now it’s like shaking sand through a sifter. We have the intermediate people coming to the top and then of course we always have new people coming in. Not that everybody stays down here, but some people do stay down here. They’re not quite ready to … everybody progresses at different levels, I guess.
Jill DeWit: Anyway, now we’re at the point where we’re starting to divide up. We’re going to do different members calls … actually, I’m meeting on that today, just so you know-
Steven Butala: Good.
Jill DeWit: Because we’re going to get that email to go out with the invites of who is going to be invited to that.
Steven Butala: We have a Thursday member call that we’ve been doing for years, and years, and years. Jill and I, because people are requesting it, are separating the calls into two.
Jill DeWit: Right.
Steven Butala: For people who are in the beginning stages of their investment career, and people who have now advanced to doing different deals.
Jill DeWit: And talking about subdividing, and they really are doing subdividing-
Steven Butala: Yeah.
Jill DeWit: Versus a person that just comes in and just joins Land Academy and says, “Here, wait a minute, wait a minute. Am I scrubbing this correctly? Did I put this together correctly? Did I look at that county correctly?” That kind of a thing. So a little more beginner, is a difference. So thank you.
Steven Butala: In general, Jill’s going to manage the beginners-
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: And I am going to partake in and probably direct our advanced group.
Jill DeWit: Mm-hmm (affirmative). I love it.
Steven Butala: Let’s call it intermediate.
Jill DeWit: Okay.
Steven Butala: It’s not advanced.
Jill DeWit: Yeah, because the advanced is a whole other group.
Steven Butala: Our advanced group are people that are just now still obviously involved in our group because the data’s so cheap and because the mail is so cheap with Offers2Owners, but they’re not real vocal any longer because they’re off making half a million bucks a month, so-
Jill DeWit: It’s true.
Steven Butala: That’s a different group, but we’ll get to that.
Jill DeWit: Yeah.
Steven Butala: Get to that in the future.
Jill DeWit: Exactly. So what’s coming for me? I want to talk about what’s coming … or do you want to finish up what’s coming for your intermediate group, and then I’ll talk about my beginner group?
Steven Butala: I would love to start with the beginner.
Jill DeWit: Okay. So here’s what’s coming with my beginner group. I’m goin to create a meeting on it with my team today to define it thoroughly, but I’m going to come up with a Land Academy Lite, because I’ve realized there are many people who get it, obviously, they see it, they’re watching these people, and they hear us and know that this works, but they want to kind of put their foot in first, not dive in. I’m going to create a product for them to kind of test it.
Jill DeWit: It will be a lower cost intro level. It will not have the same education and everything. It’s going to be a scaled down, just kind of what you need to know to really test this and see if this is right for you to flip a couple of deals product, and that’s what we’re going to come out with in the beginning … probably the first quarter of 2019. So we will have Land Academy Lite, and it’s going to be awesome.
Jill DeWit: It’s going to be a stepping stone, obviously, to the real Land Academy. So it’s a great place for you to start, figure this out. Maybe you’re low on funds. This is good for people … I have a lot of people that come to us and they say, “Oh my gosh, I’m in. I’m all in. I get it. But shucks, I don’t have the money to do what I want to do yet.” This is a good little place for them too to start, because they can start getting in and getting to the backend pro area of our online community and really see what’s going on and understand a little bit more.
Jill DeWit: It’s kind of just sneaking in a little bit, look in the back of it. It’s like a way to … you know what it is? It’s a way to kind of look in the room and see what’s going on and have a little-
Steven Butala: It’s a test drive.
Jill DeWit: It is. And then when you’re ready financially or professionally, ready to dive in, it’s going to be an easy transition to official Land Academy. From there, comes your group.
Steven Butala: I mean here’s why I green lighted Land Academy Lite, throwing all kidding aside, multiple people have reached out to us through multiple venues who are either in a group or thinking about getting in a group, and they said some version of this: “I’m just intimated. I’m intimidated about asking questions. It’s hard for me to ask a very basic question when I know it’s a basic question-”
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: “To people who are making half a million dollars a month-”
Jill DeWit: Right.
Steven Butala: “Or turning very large commercial land deals,” like the people are in our group. After that happened, I don’t know it happened a few times. It’s been happening for months now, because I don’t want to exclude those people.
Jill DeWit: I know.
Steven Butala: No, they need to have their questions answered.
Jill DeWit: Mm-hmm (affirmative), well and vice versa we have the opposite, right? Yeah.
Steven Butala: And they need to have their questions answered by somebody whose patient and understanding, and that’s Jill.
Jill DeWit: I said, “Steven, those are all the words that I use to describe you. What do you mean?”
Steven Butala: Here’s the thing, Jill and I started Land Academy not to make money. Finally, it’s actually making a little money after years. We started Land Academy to create business partners for ourself, which it worked.
Jill DeWit: Yeah.
Steven Butala: For the first time in the last few months, we’ve been doing deals with some of our members, and now we’re doing partnerships on other companies and stuff like that. It’s working great. That’s why I green lighted that. So I think this is a great thing-
Jill DeWit: I do too.
Steven Butala: And there’s no way we can turn our backs in any way-
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: On the new people because they’re going to be our future partners too.
Jill DeWit: Yep. Oh, gosh yes. You know, yeah, don’t be afraid of Land Academy Lite, by the way. In a perfect world you’re going to spend, I don’t know, maybe three to six months in Land Academy Lite. That’s all you need, man. You either are in or you’re out. You either get it or you do. It’s for you, or it’s not.
Steven Butala: Yeah. Yeah.
Jill DeWit: You like it or you don’t.
Steven Butala: Or you have enough time to do it or you don’t-
Jill DeWit: Well something like that.
Steven Butala: It’s any of that.
Jill DeWit: Exactly. This is what this is for. Then you’re like “All right.” Some people may go quicker. They may go, “All right,” and I full expect this. There are some really smart people out there that are probably going to jump into Land Academy and be there for 30 days and go, “Okay, I need more.”
Steven Butala: Yep.
Jill DeWit: And you know what? That’s great. We’re going to move you right up.
Steven Butala: So what-
Jill DeWit: And then eventually you’re going to spend however many quick time there and you’re going go, “Yeah and I want … not for me. I’m going to move right up.” By the way, you don’t have to jump in and go through this progression. This is all just something we’re doing. So if you’re ready for Land Academy, you jump right in. People right now, you get 1.0 and 2.0, so it’s kind of an intermediate thing that’s happening right now.
Steven Butala: Yeah.
Jill DeWit: So it’s there available for you. And then soon … I know that. We have people that are, I’m sure, listen to the sure, watch what we do every day, and they’re waiting for this top, top, top thing for you because that’s who they are. They’re running a [inaudible 00:12:39], and they’re going to jump into-
Steven Butala: Well said.
Jill DeWit: Your final thing once it gets out a little bit more and probably well defined, they’re going to be like, “How much money do you guys need? I have $3 million over here to place, and I’ve been watching you for three years.”
Steven Butala: Yeah, and those people are reaching out to me.
Jill DeWit: I know.
Steven Butala: Like I said, a couple of days ago … We have a member, his name is Justin [Slyver 00:13:01], that has a finance background and he and I get along. So we’re developing … it’s based on how people invest in commercial real estate on the Internet. You know, you put in money, you watch it calculate. It’s all pre-calculated-
Jill DeWit: Right.
Steven Butala: You can watch what your money’s doing, where it’s getting invested, and why and choose to do with it however. That’s how people buy apartment buildings.
Jill DeWit: Right.
Steven Butala: That’s how people have been buying commercial real estate since the beginning of time. The difference is literally a bunch of people in a room and have a lot of dough, a small number of people with a lot of dough get in a room and say, “Let’s go create a city.”
Jill DeWit: Right.
Steven Butala: But the Internet, it’s really made that opportunity a lot more prevalent and easier to attain. There’s certain websites out there that I don’t think do such a good job-
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: But Justin and I are putting something together where you as a member have an opportunity to put a bunch of money in, or even a very little amount of money in if you want.
Jill DeWit: Right.
Steven Butala: And watch what happens with these deals as an investor, or maybe you’re great at generating deals, houses and land, mostly infill lots, large ranches and household sales-
Jill DeWit: Right.
Steven Butala: And maybe you just want to put them in there and get them funded.
Jill DeWit: Yeah.
Steven Butala: So we’re getting a huge positive response to this.
Jill DeWit: Exactly.
Steven Butala: Here’s the whole point, there’s a need for that, what I just described, and then there’s a huge need for what Jill’s calling Land Academy Lite, where it’s like, “Where do I start?”
Jill DeWit: Right.
Steven Butala: “Yeah, I want to be in that. I want do that. I want to do that,” but you go from zero to 60.
Jill DeWit: Mm-hmm (affirmative), exactly.
Steven Butala: We all want to go from zero to 60 in less than three seconds, we all do, but that’s just not how it works.
Jill DeWit: Right. It’s either time, time holds people back. For the Land Academy Lite, it’s for someone whose short on time, short on funds, or they’re still doing their initial research maybe.
Steven Butala: Need to learn.
Jill DeWit: Exactly. And it’s a great place to start.
Steven Butala: We all started there.
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: All of us. I started there.
Jill DeWit: Yep. Exactly.
Steven Butala: So I think more people win.
Jill DeWit: Thanks.
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 real estate crowdfunding.
Jill DeWit: And answer your questions posted on our online community, landinvestors.com. It’s free.
Steven Butala: You are not alone in your real estate ambition.
Steven Butala: Did you ever think it would become this?
Jill DeWit: You know?
Steven Butala: I never did.
Jill DeWit: No, I don’t think I did too. I just remember July, how many years ago? Three years ago? When we launched. I knew it was going to be good. You know what? I knew it was going to be good. I didn’t know it was going to be this good. I didn’t know that we would be doing this and sitting here right now three years later.
Steven Butala: Most people … I was thinking recently most people in our shoes at some point way before now if they started something like this would just say, “You know what? This is big enough.”
Jill DeWit: Oh yeah.
Steven Butala: “We have an education program. We charge X for it. There’s Y coming in. There’s a little bit of profit in it.” That’s all.
Jill DeWit: Yeah. “Let’s just get more people. Let’s just get more people and don’t change a thing.”
Steven Butala: “Let’s hire a sales team-”
Jill DeWit: “Just get more people,” that’s true. And do nothing.
Steven Butala: That’s not what we’re doing at all. We’re like really, truly creating some value. Additional value, and responding to what our members want.
Jill DeWit: Our business is growing and evolving based on what we’re all doing. That’s the best thing.
Steven Butala: It worked.
Jill DeWit: I’ll tell ya, Steven if it’s one thing that you don’t do, it’s sit still.
Steven Butala: Most of the time that’s good. I’m not sure all the time.
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