2019 is Your Year to Create Wealth (LA 885)

2019 is Your Year to Create Wealth (LA 885)


Steven Butrala:                 Steve and Jill here.

Jill DeWit:                            Hello.

Steven Butrala:                 Welcome to The Land Academy Show. Entertaining land investment talk, I’m Steven Jack Butrala.

Jill DeWit:                            And I’m Jill DeWit broadcasting from gorgeous, sunny, Southern California.

Steven Butrala:                 Today Jill and I talk about how 2019 is your year to create wealth or equity. It is for us.

Jill DeWit:                            Happy New Year.

Steven Butrala:                 Fortunately for us it’s not unique to 2019, but there’s always room for improvement always.

Jill DeWit:                            It’s true.

Steven Butrala:                 Always room for improvement. Jill and I were talking right before the show. There’s two ways to create wealth or equity. In my opinion, they’re interchangeable. You can either buy into it, buy something that’s immediately worth more, which is what we do. Or you can improve it like think of a television. It’s got a bunch of components and when you put them all together, separately, they’re worth a couple hundred bucks. When you put them all together, they’re worth $500. Or a house, you’ve got a house you buy for $100,000. You clean it all up, get it up to date. You’ve created some equity there, you sell it for more. I prefer the first way.

Jill DeWit:                            I understand.

Steven Butrala:                 It’s faster, and easier, and cheaper. But some people want to make their life difficult.

Jill DeWit:                            Why are you dancing along the fact that it’s New Years?

Steven Butrala:                 Oh, I forgot. I forgot.

Jill DeWit:                            Hello? I’m like, Happy New Year and you’re like all business.

Steven Butrala:                 No, I’m the kind of person who forgets my birthday too so that’s just how it is.

Jill DeWit:                            That’s right. All business, man.

Steven Butrala:                 Today’s topic, or I’m sorry. Before we get into today’s topic, let’s take a question posted by one of our members on the landinvestors.com online community. It’s free.

Jill DeWit:                            J. Hewey asks, hey guys, I’m trying to get my first mailer out. I’ve gone through most of the education material, but I just can’t find a county that makes sense. I’m following the three steps, looking at the population maps, good. Choosing counties with rural land. Using county-wise. Though this is very hit and miss, and then trying to find cops. It’s the last set that really hangs me up. I’m looking in Texas counties and all the five year income properties I’m seeing are $30,000+. It seems risky to shoot for those to start out. So I started looking at .5 to 1 acre columns and those are closer to the right range, five to $10,000. I feel just like everywhere’s much too expensive for a $500 offer, but obviously I’d rather get a bunch of irate calls and a couple of d-holes than a bunch of people dying to sell ’cause I over priced. Thanks very much for any and all wisdom offered.

Steven, take it away.

Steven Butrala:                 I’m gonna say this out loud. I think the days of $500 property, buying five acres for $500 are pretty much over, and it’s not a bad thing. It’s a great thing because those $500 properties will usually sell for 15,000, and so you made yourself $1,000. Wouldn’t you rather by a $10,000 property and sell it for 30? Those days are all ahead of us. Today’s topic is looking into the future and planning your 2019. If you do next year in 2019 or this year, I guess, 10 of those deals I just describe, you’re gonna make $200,000. 10 deals. That’s less than one a month. You’re gonna make $200,000 of property. What’s better than that? That’s creating wealth.

So these $500 business, while I get it and I talk about it in the first program, it’s a great way to cut your teeth and get to that magic do 10 deals number that Jill talks about. The best way you’re gonna do that is go to a tax auction or to buy over the country tax property, which I don’t recommend in the beginning. Or you can go to places like the state of Arkansas, or the state of Florida. Both of those states have centralized state run liquidation concepts for buying property. You can buy property from the state of Arkansas for $25 and since you brought up Texas, Texas has a statute where the first Tuesday of every month, each county has an auction. Not many counties follow it, but there’s 244 counties in Texas.

Jill DeWit:                            I know.

Steven Butrala:                 You could spend your whole career in just one part of Texas and that’s it. So everyone who’s listening to this, not just the-

Jill DeWit:                            J. Hewey.

Steven Butrala:                 The caller, the writer here with the question. Add a zero.

Jill DeWit:                            Yeah.

Steven Butrala:                 Buy $5,000 property, not 500.

Jill DeWit:                            Right.

Steven Butrala:                 That will never cease.

Jill DeWit:                            Think of it as an example.

Steven Butrala:                 It will never stop. The supply, people ask us all the time, is it over? It’s not over. It’ll never be over because tax bills are gonna come out next fall and that generates millions. Literally millions and millions of people. It reminds them of this property that they have that they have to write check for every year.

Jill DeWit:                            Exactly.

Steven Butrala:                 So is a $500 property gone, Jill?

Jill DeWit:                            I think now it’s just an example and I think even back then it was kind of an example.

Steven Butrala:                 Here’s the other thing, you don’t have to use your own money to buy these properties. Go to Land Investors. We talked about it yesterday, got to landinvestors.com. On the top menu it says fund me. Put your property in there. We’ll let you know if we’re gonna split it with you.

Jill DeWit:                            $5,000 is not crazy.

Steven Butrala:                 5,000 is a great number.

Jill DeWit:                            It’s a great number. Buy it for five, sell it for 11. It’s worth 20. You did great. Move on. Do it again and again.

Steven Butrala:                 I shouldn’t say it’s over. $500 property is not over at all. But what you’re gonna buy-

Jill DeWit:                            But let’s not get silly.

Steven Butrala:                 Is a property that’s very, very, very small and very rural.

Jill DeWit:                            Yeah.

Steven Butrala:                 And the market for that, the buy side market for that, because of the way that the internet is, is constantly shrinking. The buy side market for an info lot for a home builder is dramatically growing.

Jill DeWit:                            Thank you. Are you done now?

Steven Butrala:                 Was that boring as hell?

Jill DeWit:                            A little bit.

Steven Butrala:                 It was, wasn’t it?

Jill DeWit:                            A little bit.

Steven Butrala:                 ‘Cause it’s new years.

Jill DeWit:                            Yeah, a little bit. I’m sorry, Steven. Are you not yourself today?

Steven Butrala:                 Is new years day a-

Jill DeWit:                            Holiday?

Steven Butrala:                 Is it like post office holiday?

Jill DeWit:                            Yeah. The parade was today.

Steven Butrala:                 Oh.

Jill DeWit:                            Yeah. Parade’s my day. This is my thing, by the way.

Steven Butrala:                 Why are we working?

Jill DeWit:                            If you want to know, ’cause you have this five day a week thing. Trust me. I didn’t pick it.

Steven Butrala:                 Talking about real estate. We shouldn’t be talking about real estate anyway. Today’s topic is called the 2019 create, this is your year to create wealth. This is the meet of the show.

Jill DeWit:                            I’ll share my day in the after show. So, okay, your year to create wealth. I love this. Please explain, again, what you were sharing with me before this show about how this ties into 2.0.

Steven Butrala:                 So 1.0, Land Academy 1.0, rural vacant land otherwise known as cashflow from land, we talk about reach. That’s the overlying concept. Reach, reach, reach. We reach the people that don’t want their land by sending letters. Once you buy it, reach the people who want to buy from you for more. Reach, it’s imperative, this concept of reach. In 2.0 we talk about equity/wealth which is what this topic’s about. Which is what, if you’re gonna tape something to your mirror in the morning or if you happen to stick a little sticky note like Jill, taped to the bottom of your monitor, computer monitor-

Jill DeWit:                            I do.

Steven Butrala:                 It needs to say equity. Once you understand reach, and you should just understand it now by me saying it, now it’s all about creating equity and there’s only two ways you can create equity. Improvement, improving an asset, the television example we talked about, or buying into something that’s worth more ’cause somebody doesn’t want it anymore. Like a garage sale.

Jill DeWit:                            Thank you.

Steven Butrala:                 We just went and bought a big diamond ring for Jill from a local family type jeweler.

Jill DeWit:                            It’s getting sized. I don’t have it right now.

Steven Butrala:                 Who was just having a blow-out sale. We bought it for less than half of, I was actually happy with the price and that never happens. I’m never happy with the prices of anything. Ever.

Jill DeWit:                            Let alone jewelry.

Steven Butrala:                 Never. It’s always too much and so I’m constantly going up the cost of everything. Yeah, let alone jewelry. Diamonds are a balance sheet item, by the way. They never go down in value.

Jill DeWit:                            That’s my argument and they do fit on a boat.

Steven Butrala:                 It’s not like buying a car.

Jill DeWit:                            Can’t go wrong.

Steven Butrala:                 It’s just awful. It almost always goes down in value.

Jill DeWit:                            Right.

Steven Butrala:                 Not always, but almost always. So there’s no replacement for buying a something cheaper, ’cause somebody doesn’t want it for cheap and then reselling it immediately. It’s totally efficient.

Jill DeWit:                            The way I look at it with equity is the way that we do it. I have equity in it the minute I buy it. ‘Cause I buy it, right? I know what it’s worth. It’s worth more. I just solved a problem for somebody, it’s really what happened. They needed the money, I needed the land, they needed out of the land, I wanted the land. However you want to word it, and I immediately have equity. I love it and that’s one of the things I love about our business. I think really it’s so basic and so simple when you think about it. You buy anything for half of what it’s worth, you can’t go wrong.

Steven Butrala:                 That’s right.

Jill DeWit:                            It really doesn’t matter what it is. It’s just that-

Steven Butrala:                 You know what the definition of an entrepreneur is? This French word entrepreneur. Do you know?

Jill DeWit:                            No, I don’t.

Steven Butrala:                 The literal translation is looking at something in a different way than everybody else looks at it. And that’s really what we’re talking about right now.

Jill DeWit:                            I didn’t know that.

Steven Butrala:                 Picture a piece of land. Just picture when you’re driving somewhere between cities and there’s just so much vacant land and there’s for sale signs and farm land and all that stuff. Think about getting out of your car and looking at a piece of their, you know that’s five acres, and buying that piece of dirt for $25,000 and selling it for 50. How much work does that really take? Now think about that actual same piece of land and putting something on it to improve it, like a truck stop. How much work and how many years that would take and all the stuff that you would have to do with the county, city and all of it.

Jill DeWit:                            Permits. I don’t even want to think about it.

Steven Butrala:                 Concrete and contractors.

Jill DeWit:                            Not just the construction part of it. The paper part of it, then.

Steven Butrala:                 Wouldn’t you just rather make $25,000 really fast and then buy 25 other pieces of property in the county on the mailer?

Jill DeWit:                            Exactly.

Steven Butrala:                 That is what you should be thinking about for 2019.

Jill DeWit:                            Yep. Exactly.

Steven Butrala:                 Yesterday we talked about how much this costs. It costs $1,000 a month to be in this whole, we don’t get 1,000, but-

Jill DeWit:                            Well you should budget for, to do the mail and everything, to do it right and send out a mailer every month. It’s good.

Steven Butrala:                 Are you willing to spend $1,000 a month for mail and data and education and all of it to do that deal I just said and do 10 more of them? If you don’t make a quarter of a million dollars flipping land next year-

Jill DeWit:                            This year.

Steven Butrala:                 Yes, 2019. It’s because you didn’t want to. It’s not because-

Jill DeWit:                            You didn’t know how.

Steven Butrala:                 Yeah.

Jill DeWit:                            Or you had access to this stuff.

Steven Butrala:                 Jill and I are writing the-

Jill DeWit:                            Or no one was there to help you.

Steven Butrala:                 Filming House Academy right now and we were talking about it a couple days ago. I’ve purchased-

Jill DeWit:                            That’s good.

Steven Butrala:                 About six guitars in my life and I cannot and will never know how to really play the guitar. It’s not ’cause I’m not capable of it. It’s just because I just haven’t put the time, and something else always comes up and I haven’t made it a priority. Quite honestly I’m too old to make something of it anyway at this point. So is it the guitar’s fault?

Jill DeWit:                            Right.

Steven Butrala:                 No. The guitar is just sitting there staring at me. It’s not the guitar’s fault.

Jill DeWit:                            That’s my Eddie Van Halen story.

Steven Butrala:                 So I say this for this to be motivational, hopefully.

Jill DeWit:                            Hopefully.

Steven Butrala:                 What’s your 2019 like?

Jill DeWit:                            I like this. I wrote your thing down. If you don’t make X amount this year, I’m gonna do something with that. It’s because you didn’t want to. That’s totally true.

Steven Butrala:                 A quarter of a million bucks for your first one or two years doing this is a really good goal. Making $20,000 per property, which is about 10, making $20,000 per property will get you to a quarter mil if you do one property a month. Which anyone can do. I don’t care if you have two jobs. If you have two jobs, two kids, and an angry wife, you can still get one real estate deal done a month.

Jill DeWit:                            Gotta throw that in there, don’t ya?

Steven Butrala:                 Especially now because you don’t have to use your own money.

Jill DeWit:                            Why do you say that? You make it sound like you have an angry wife and you don’t.

Steven Butrala:                 I have the greatest girl ever.

Jill DeWit:                            Thank you. I don’t know why that comes up so often.

Steven Butrala:                 You are not the first girl. All of them before you were angry. So that’s how I know.

Jill DeWit:                            Oh, all right. All of them.

Steven Butrala:                 All of them. It’s why they’re not sitting next to me right now.

Jill DeWit:                            Thank you. I appreciate that.

Steven Butrala:                 You’re the last girl, Jill.

Jill DeWit:                            I am the last girl.

Steven Butrala:                 Mm-hmm (affirmative).

Jill DeWit:                            Thank you.

Steven Butrala:                 I wonder what the last piece of real estate we’re gonna buy is. Is there some deal that we could do that’d be like you know what, that’s it.

Jill DeWit:                            That we would call it the last.

Steven Butrala:                 We hit it.

Jill DeWit:                            Like I’m out.

Steven Butrala:                 This is never gonna get better than this deal.

Jill DeWit:                            Could you imagine? I don’t think that’s gonna happen. I know it’s not gonna happen.

Steven Butrala:                 Doing deals like that just makes me want more.

Jill DeWit:                            It does. It’s true.

Steven Butrala:                 Jill says that about let’s call it affection. She’s like, when I get a lot of affection from you, it just makes me want more.

Jill DeWit:                            What were we calling it? Floor play.

Steven Butrala:                 Floor play, yes.

Jill DeWit:                            [inaudible 00:14:06] of a floor play. Yeah, yeah. That’s right.

Steven Butrala:                 One of our members had to explain some stuff we were talking about.

Jill DeWit:                            That sounded a lot like floor play.

Steven Butrala:                 Yeah it’s just getting down on the floor and playing.

Jill DeWit:                            That’s right, exactly.

Steven Butrala:                 They had to explain it to their kids. That’s what floor play is.

Jill DeWit:                            They were listening to this with people. So it became floor play. So we talk about floor play on this show.

Steven Butrala:                 That’s some classic stuff.

Jill DeWit:                            That was really good.

Steven Butrala:                 Our members are not only talented in buying and selling real estate. They’re talented with other things, too. Like explaining their way out of stuff to their children.

Jill DeWit:                            Yes they are. We have a good bunch. It’s too easy for me when I talk to people thinking about, well look, it’s us. I’m just gonna say, I had no idea how well we’d convey us and we would actually get a really solid, strong group of people like us.

Steven Butrala:                 Had no idea this was going to happen at all.

Jill DeWit:                            I know.

Steven Butrala:                 With Land Academy.

Jill DeWit:                            We have an awesome, helpful group. Our whole community is so darn helpful and supportive and we know how to laugh at each other and have fun and laugh all the way to the bank.

Steven Butrala:                 Yeah. That’s why we’re here, to make money.

Jill DeWit:                            That’s true.

Steven Butrala:                 Let’s be real clear about it.

Jill DeWit:                            It’s not a non-profit.

Steven Butrala:                 I was just talking about that with somebody recently. I don’t know who it was. Let’s be super, super clear. We’re here to make money.

Jill DeWit:                            All of us.

Steven Butrala:                 It was one of our staff members.

Jill DeWit:                            Yeah.

Steven Butrala:                 We’re not here to be creative.

Jill DeWit:                            This is why our members are good too. They want to make money. We’re solving it for them.

Steven Butrala:                 That’s it. We’re not here to be famous.

Jill DeWit:                            It helps them make more money. Done.

Steven Butrala:                 We’re not here to be really well liked or get approval because we had-

Jill DeWit:                            Emotional baggage.

Steven Butrala:                 Yeah. That’s not why we’re here. We’re here to make money.

Jill DeWit:                            It’s not because Steven never had a dog.

Steven Butrala:                 I had a dog once and it was not a good dog.

Jill DeWit:                            I’m sorry. See? It’s emotional baggage.

Steven Butrala:                 This dog had issues. I think it was too inbred.

Jill DeWit:                            Are you having a good new years?

Steven Butrala:                 Yeah.

Jill DeWit:                            Okay. Let’s go have some fun now.

Steven Butrala:                 Okay.

Jill DeWit:                            Okay.

Steven Butrala:                 Well you know what? We’re gonna go over on time here.

Jill DeWit:                            Okay. All right.

Steven Butrala:                 We didn’t even talk about new years resolutions. Do you have any? Or do you even believe in that?

Jill DeWit:                            I do believe in that.

Steven Butrala:                 You don’t need to lose any weight, that’s for sure.

Jill DeWit:                            Thank you. Wow. Ding ding.

Steven Butrala:                 Floor play.

Jill DeWit:                            That was nice. Got that right in there. Thank you, I appreciate that. New years resolutions. I say them every year. It’s funny, I usually go above and beyond, especially lately. The last three years, man, we go above and beyond. Whatever I set out to do, what just happened? Some of the new sights and things we were gonna do this year, we went so far beyond, I’m like-

Steven Butrala:                 You mean personal stuff, not business stuff. That all happens anyway.

Jill DeWit:                            I have no idea why it always rolls under that, too. So personally, okay, shucks, you know what, Steven? I’m pretty darn happy. The only thing that I know that I’m bad at that I want to get better at is, this sounds cliché, too, but it’s true for me. Sometimes I don’t spend time by myself. You came in the office to me the other day, my home office was pretty much issuing a directive. This was Christmas week and you’re telling me I’m telling you to stop it right now. You need to go have some fun, get on your bike.

Steven Butrala:                 All kidding aside-

Jill DeWit:                            Tell me.

Steven Butrala:                 You work too many hours.

Jill DeWit:                            I do. So I’m gonna try-

Steven Butrala:                 You work way too many hours period and you should really set a timer or something.

Jill DeWit:                            You’re right. I’m gonna really work on that.

Steven Butrala:                 We don’t make any more money. If we worked four hours a day, we’d make the same exact amount of money as we make working probably 10 hours a day.

Jill DeWit:                            Thank you, Steven. Okay, so what’s yours?

Steven Butrala:                 Honestly, I need to calm the hell down.

Jill DeWit:                            Oh.

Steven Butrala:                 I’m too intense about some stuff that in the end just doesn’t matter. I have this buddy and he says [inaudible 00:18:02] jazzed up, he says this about himself. As soon as I start feeling jazzed up about something, I ask myself this question, is this gonna matter a year from now? The answer’s always no. Always.

Jill DeWit:                            That’s true.

Steven Butrala:                 What can you get all worked up about that’s gonna matter a year from now?

Jill DeWit:                            Most things, it’s not-

Steven Butrala:                 Anything that’s related to health, that’s the only thing.

Jill DeWit:                            Robbing a bank, maybe.

Steven Butrala:                 Yeah. Like massive repercussions for your actions, but-

Jill DeWit:                            Exactly. But other than, little things. Every little thing around the office. Something’s not set up correctly, that’s okay. We can fix it.

Steven Butrala:                 I’m constantly thinking about starting new companies, constantly. And that’s just silly because the companies that we have are extremely profitable and we know what we’re doing.

Jill DeWit:                            We’re doing great.

Steven Butrala:                 So why? Why would you start a new company if everything’s fine?

Jill DeWit:                            You heard it here, folks. Please remind us 90 days from how when you see new companies coming out. Just kidding.

Steven Butrala:                 2019 for us is massive. For Land Academy members, massive, massive improvements are coming. House Academy is coming, Owners Academy. Buy and sell vehicles through Owners Academy. Mobile Academy, mobile homes. There’s gonna be commercial real estate version.

Jill DeWit:                            Live events.

Steven Butrala:                 Yeah, massive live events. Many live events. People love live events.

Jill DeWit:                            They do. Let’s wrap it up. I want to go have some fun. Speaking of spending too much time working, I want to go have fun.

Steven Butrala:                 Have I done it again? Spent almost 20 minutes with us listening to the Land Academy Show. Join us next time where we talk about what land locked is, truthfully, a misused word in the pros and cons.

Jill DeWit:                            And we answer your questions posted in our online community, landinvestors.com. It is free.

Steven Butrala:                 You are not alone in your real estate ambition.

Jill DeWit:                            So now for the fun part. I wanna talk about new years day and I want to remind everyone that you are not alone and not left, the promo that I was running that was going to end last night on new years eve is good through today. So 1 1 19 if you want to join us, go to landacademy.com click join. At the very top you will see a thing with a promo code, half price. If you put in half price, it will make the pole program 1.0 and then 2.0 included half price and I’ll tell you right now it’s not gonna be that way after tomorrow. Actually we’re closing enrollment tomorrow, and then we’re gonna revamp our pricing ’cause we’re working on these new programs and working out new membership levels. We’ve got some great stuff.

Steven Butrala:                 So it turns out this whole thing is really helpful to the vast majority of the members that choose to join. So it works. We’re at the end of our third year? Third or fourth year. This is the end of our third full year.

Jill DeWit:                            Yeah.

Steven Butrala:                 And this has gone way better than I’d ever thought. Turns out it’s working for a lot of people. So in 2019, we’re gonna bring this home. We’re gonna really, really add some tools that we’ve been using for years, like listing gopher’s one of them and title mine.

Jill DeWit:                            Awesome. Hey, wherever you are watching or listening, please rate us there. We are Steve and Jill.

Steven Butrala:                 We are Steve and Jill information-

Jill DeWit:                            And inspiration.

Steven Butrala:                 To buy undervalued property.

If you enjoyed the podcast, please review it in iTunes . Reviews are incredibly important for rankings on iTunes. My staff and I read each and every one.

If you have any questions or comments, please feel free to email me directly at steven@BuWit.com.

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