Outsource Due Diligence with InfillReports (LA 877)
Outsource Due Diligence with InfillReports (LA 877)
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 southern southern California.
Steven Butala: Today’s topic, outsourcing due diligence with inforeports.com and parcelfact.com. This is in the list of products that we provide to members and non-members to get deals done more efficiently, all in the name of having you, the investor, just be the deal maker, and not shuffle the paper around and be involved in all this stuff.
Jill DeWit: Mm-hmm (affirmative), and it’s all brought to … People come to us saying, “Boy, I wish I had help with X.” “Boy, if I had a quick way to find that property.” “Boy, if I knew it was buildable,” doing, you know, an infill lot.
Steven Butala: Right.
Jill DeWit: It’s all of that.
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.
Jill DeWit: Okay. Kelly asks, “Looking to do the latest acquisition with a funding partner. Let me know if you are a funder looking for deals to do, as well. But, do not have an agreement for this. Anyone?” I’m sorry. I got myself confused in the question here. Let me …
Steven Butala: You want me to do it?
Jill DeWit: Yes, please.
Steven Butala: “Looking to do the latest acquisition with a funding partner. Let me know if you’re a funder looking to do deals, as well. But I don’t have an agreement for this. Anyone have one that they can share, or send directly to me?” Question mark. “Also, when doing a purchase and funding a partner, do you allow the funder to take title?”
Jill DeWit: Thank you.
Steven Butala: Yeah. I mean, we talked about this on Monday, and Justin and I are gonna talk about it tomorrow with Plum Investments. We now fund deals with people all the time. He’s got all kinds of agreements, and yes, there’s one that specifically, that I’ve been watching it moving around the Internet, through email and on our websites. There’s a [crosstalk]-
Jill DeWit: It’s probably up there right now.
Steven Butala: In fact, by the time we’re answering this question, we probably have a ton.
Jill DeWit: Somebody’s probably shared it with you.
Steven Butala: Yeah. So, absolutely. You know, the answer’s yes, to all of it. Does the funder take title? Yes. Here’s how it works. So, you own part of it, and … So, you fund a deal. You want to pay $10,000 for it. You think it’s worth $30,000. So, you tell the funder. The funder says, “Yup, I agree with you. $10,000 is a great price, but I think it’s worth $30,000.” Everybody signs a little single piece of paper. I think it’s two pieces of paper. And the funder, with your direction, closes the deal. They buy the property. They own half of it, and you own half of it, which I think is only fair.
And it goes on the title, just like that. It gets sold for $30,000. They get their $10,000 back. They get 50% of the profit margin, which in this case is 20 grand, so you take 10 and they take 10. And you have put in exactly zero dollars. Zero. And you take $10,000 out.
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: And the funder, at closing, gets $20,000. They get their original $10,000 that they lent, and their $10,000 piece.
Jill DeWit: Well, you brought the deal to the table, and that’s why this makes sense. Sure, you put some money in marketing. You put in some money in data. You put some money in the mail. You’ve took some time on the phone call. That’s what you bring to the table, and that’s why everybody wins.
Steven Butala: Yeah, you [crosstalk]-
Jill DeWit: You deserve the 50%.
Steven Butala: You do 10 of those, you put 100 grand in the bank, gross, and you didn’t put a dollar into the acquisition.
Jill DeWit: Right.
Steven Butala: You only ever spent money on marketing, on mail and stuff. So, like Jill likes to say, “Add a zero to that.” Add a zero to every deal. Now you put not $100,000 in the bank, you put a million dollars in the bank.
Jill DeWit: Right.
Steven Butala: For the same amount of marketing money, which is tiny.
Jill DeWit: Exactly. Thank you.
Steven Butala: Today’s topic? Due diligence. Outsourcing through diligence with InfoReports and parcelfact.com. This is the meat of the show. If you haven’t been on parcelfact.com, you must be a brand new listener, because we’ve had ParcelFact for a couple of years now, with rave reviews. It’s free to members. It’s 100 bucks a month to non-members. And it allows you to put state, county, and APN, [inaudible] parcel number, into the website, and get the coordinates of the property.
Jill DeWit: I have to say something. We have not promoted this, but we provided a new product recently where you can do, for one day-
Steven Butala: A five dollar pass.
Jill DeWit: Five dollars.
Steven Butala: Unlimited.
Jill DeWit: Unlimited downloads in one day. And I’m watching that get used a lot.
Steven Butala: I’m watching that, too.
Jill DeWit: It’s really awesome.
Steven Butala: I’ve been watching that. [crosstalk].
Jill DeWit: It’s funny. I’m watching people do a day, one day, and another day, and another day, and another day. I’m sure they’re saying to themselves, which I would too, “After 20 days, I should just pay the 100 bucks, you know, and not think about it.”
Steven Butala: Yeah.
Jill DeWit: Then it makes … You know? But that’s okay. But for some people, they’re like, “You know, I only have time to look up properties … I do all my property review on Sundays, and I’m gonna save them all up for Sunday.” That’s fine. You could do that, too. But anyway, that little five dollar thing that we threw out there has been a huge-
Steven Butala: Yeah. Spend five bucks, and actually see what it’s all about.
Jill DeWit: Yeah.
Steven Butala: Because it’s truly amazing, the information. You get ownership, zoning taxes, a ton of stuff. It’s a huge value for the very small amount of money, and it’s obviously free for members.
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: Inforeports.com … I keep saying this. Where was it in 2004?
Jill DeWit: Right.
Steven Butala: The thing about buying info lots … And any land, really, but info lots specifically … is, what can I use it for? You know? What I can use it for, based on zoning and utility location, and all kinds of other stuff. Grading. It’s how much I can sell it for, consequently how much I can buy it for.
Jill DeWit: Right.
Steven Butala: So, we’ve been doing due diligence, and talking to planning and zoning, but kind of like shooting in the dark a little bit for a long time about land use. This takes all the mystery out of that.
Jill DeWit: It’s true.
Steven Butala: So it’s not, it shouldn’t … The big comments that we’ve gotten, right when we launched it, which is only I guess a month ago … “Wow, that’s expensive. Why do I need that?” You know, it’s the same thing we got when we launched TitleMine.
Jill DeWit: Yeah.
Steven Butala: It’s not that … It does two things. Number one, you can outsource your due diligence. You can get a report back on a piece of property, and you can say, “This is the greatest thing I’ve ever seen.”
Jill DeWit: Yup.
Steven Butala: And then, it changes how much you’re gonna sell it for.
Jill DeWit: Yup.
Steven Butala: If you can use the property, and it’s buildable immediately, you can almost … I can tell you right now. And the builder does not have to do anything to it, except show up with supplies and file for a permit. I mean, you’re gonna, it-
Jill DeWit: The value.
Steven Butala: The value’s gonna go through the roof on that property.
Jill DeWit: I’d say that for me, what was a game changer, go and check it out. Go. I would really encourage you to go to inforeports.com, and download the PDF of the sample. There’s one property that’s there, so you can see what’s there.
Steven Butala: There’s three.
Jill DeWit: Well, I know there’s different ones, but go for the mack daddy. Or look at them all. I don’t care. But the mack daddy one, which is 13 pages, I want to say? It’s phenomenal. When you see, like, “Oh, wow.” What knowledge, and what’s available to you … And then you’re gonna go, “All right, I see the value for this.” And then, this is what I would do. Then I would go … But it’s not for my $500 properties, obviously. That’s not what this is really meant to be. Because you don’t want to spend $1,000 or $1,500 pulling this report. But, man. Anything above a certain price range, I’m doing it for all of them.
Because, like you just said, it changes the value of the property. Same way we all figured out a long time ago, I can buy and sell five dollar properties. I’m very comfortable with that, doing my own due diligence and not having title. Slash, however … if I go through the motions, and I get a title report, and I attach that to the property, and I’m selling this land with title … Even on eBay. I’m not kidding. You know, because wherever you’re putting … We put them out there everywhere. Wherever they find me, it doesn’t matter. But the property, with title report? That just ups the value of the land, and this does the same thing. You would do the same thing. You would want this. Where, wherever they find you, and they’re looking at that property, there should be a link there that they can open up, and see the report that you pulled on the property. That’s gonna A, justify the price, and B, they’re gonna go, “This is the greatest thing ever.”
Steven Butala: If you’re serious about this, you have to check out inforeports.com.
Jill DeWit: Yeah.
Steven Butala: We use it on every single deal.
Jill DeWit: Large deals. It’s for not just info lots. Even though we’re calling it InfoReports, it’s any land. If you’re buying 10 acres out in wherever, you need to check this. You want to know exactly what you’re getting into.
Steven Butala: Exactly.
Jill DeWit: So, it’s amazing.
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 for Finance Friday. This is Steven Butala. That’s me. And Justin [Sliva].
Jill DeWit: That’s not you. And that’s not me.
Steven Butala: That’s not me?
Jill DeWit: No, and it’s not me. Justin’s not me. It’s you, and Justin’s not me … 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: That’s kind of a short show. Because we covered it?
Steven Butala: Well, the real truth is that we’re running behind today.
Jill DeWit: Oh.
Steven Butala: You know it, and I know it.
Jill DeWit: I didn’t know that’s why you were doing that. That’s hilarious.
Steven Butala: That’s exactly why.
Jill DeWit: I thought it was just a good stopping point, and you just went, “And, we’re done.” That’s good. That’s so funny.
Steven Butala: It was a good stopping point, too.
Jill DeWit: Okay. Well, wherever you’re watching, or wherever you are listening, please rate us there. It really makes a difference. 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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