No One Knows Your Deals Better Than Us (LA 902)

No One Knows Your Deals Better Than Us (LA 902)

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 no one knows your deals better than us. And I mean that literally.

Jill DeWit:                            We’ll explain that in detail in a moment.

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:                            Rick asks, “At … ” I love this.

Steven Butala:                   So do I.

Jill DeWit:                            “19 minutes and 27 seconds in to Chapter 8 of the Land Academy, 2015 version video, Steven is going through his deal statistics form, which contains a line item labeled addendum needed with a question mark. He mentioned that addendum is required by a lot of states and counties, but doesn’t go into much detail about such an addendum’s nature or purpose. Could anyone explain what this is about or perhaps share an online resource I could review? Later in the video, I noticed that Jill said, on a recording of a phone call with a notary public, that she needed to have an affidavit of property value included amongst the purchase document. Would this be analogous-

Steven Butala:                   Analogous.

Jill DeWit:                            … analogous to the addendum-

Steven Butala:                   Yes.

Jill DeWit:                            … that Steven mentioned?”

Steven Butala:                   Yes. It’s exactly the same thing.

Jill DeWit:                            Perfect.

Steven Butala:                   I’ll explain why. Some counties and states require an addendum to a deed so that it notifies the assessor that the transaction, the property was sold during that year.

Jill DeWit:                            Right.

Steven Butala:                   So the deed goes to recorder, it gets recorded in the new person’s name, and this addendum of property value, it’s called all kinds of different stuff in different states, goes to the assessor. And then the assessor, it triggers the assessor, that property go into a separate stack, so to speak, to be reassessed.

Jill DeWit:                            Right.

Steven Butala:                   When properties go up, properties, you know, all property values generally go up as time goes on and so they get reassessed.

Jill DeWit:                            Exactly.

Steven Butala:                   Taxes go up, too, according to the sale value.

Jill DeWit:                            Especially when it’s triggered by a sale. Now they know, like, “Oh, people want this. Something’s gonna happen.”

Steven Butala:                   Yeah.

Jill DeWit:                            Traditionally, they think something’s gonna happen and that’s why they want to know it and track and maybe do something about it. Maybe charge more taxes.

Steven Butala:                   So is there a list somewhere of all those how the states handle this? No. How we personally handle it, when we go to a new state, if we’re doing our own deals, which we don’t very much do anymore. We use escrow. If you’re doing it by escrow, it doesn’t matter. They’re gonna do it for you. But all you have to do is call the recorder and say, “Hey, do I just-

Jill DeWit:                            What else do I need?

Steven Butala:                   … I got the deed ready to go here. Do you guys have an addendum like California does? Do you use an addendum in New Mexico?”

Jill DeWit:                            Yep. And that’s what Rick was referring to in the first version of Land Academy. We have recorded phone calls of me calling the county-

Steven Butala:                   Yeah.

Jill DeWit:                            And asking some of those questions, like, “Hi, I’m getting ready to send this in. I have this, this, this, and this. My check’s made out to this.”

Steven Butala:                   Yes.

Jill DeWit:                            “Am I missing anything?”

Steven Butala:                   Yes.

Jill DeWit:                            And that’s what you want to do, especially when you’re starting out and getting to know that county and that area. It’s a super … ‘Cause you don’t want to send it all in and have’em reject it and send it all back.

Steven Butala:                   Send it all back.

Jill DeWit:                            Because your check was off for a $1.10 because you forgot something-

Steven Butala:                   Which happens.

Jill DeWit:                            ‘Cause there’s two pages and not one. Something like that.

Steven Butala:                   Yep.

Jill DeWit:                            So it’s so easy to just pick up the phone and call and make sure. And that’s how you know you’re okay. And then all the documents, you know, are online and you can just ask. I’ve asked’em on the phone, “Where can I find that?” And they’ll walk you right through, too. “Go to our … See the quarter … Click here, click here. All right. There’s the PDF. Download it, fill it out. That’s what I need.” “Okay, thanks.” It’s that easy.

Steven Butala:                   Today’s topic: Nobody knows your deals better than us. This is the meat of the show. The reason that I came up with this topic was based on something that a member, a property that was submitted to us for deal funding, which we accepted and what I’m seeing, we’re like in day 21 of this new funding program, and what I’m seeing is, people, very experienced members, submitting fantastic deals to us, which we’re approving, but I’m adding stuff. I’m saying, “You know, I don’t think you’re asking enough … When we go to resell this property, you go to resell it, I don’t think you’re asking enough.” And then I justify it by saying, “And here’s why.” And back it up with data that I pull. And it’s not that I have any more access to tools than anybody else in our membership group. I’ve just been doing this for a long time.

Jill DeWit:                            It’s experience.

Steven Butala:                   I know what’s gonna happen.

Jill DeWit:                            You do.

Steven Butala:                   You know? And you don’t want to leave … It comes down to this. There’s some properties-

Jill DeWit:                            Yeah.

Steven Butala:                   … that you intentionally know are going to be for sale for a while.

Jill DeWit:                            Right.

Steven Butala:                   Especially if you’re finding a retail type buyer.

Jill DeWit:                            Right.

Steven Butala:                   But it’s worth it. Is it worth it to make an extra $100,000 on a transaction for the next 60 days?

Jill DeWit:                            Right.

Steven Butala:                   I think so. So … Or is it worth it to split it up into three properties? Is it worth … We’re buying a piece of property that’s an agriculture in nature property and the person who’s gonna buy it is the one who’s working the land adjacent to it.

Jill DeWit:                            There’s something to be said for your 20 plus years of experience.

Steven Butala:                   Yeah.

Jill DeWit:                            And knowledge in certain areas.

Steven Butala:                   16,000 deals.

Jill DeWit:                            It’s so great. What’s amazing to me, too, Steven, is that you even know areas like that right away.

Steven Butala:                   Yeah.

Jill DeWit:                            Someone’ll go, “Oh, XYZ county over here. Oh, all right. Is it this APN scheme or that APN scheme?”

Steven Butala:                   Yeah.

Jill DeWit:                            “Okay. That one. Stay away from those. That area’s great and here’s why.” I mean, it’s like so great.

Steven Butala:                   There’s one subdivision in Arizona we just got a bunch of property backed in from a deal funding person and I can tell you which section of this actual subdivision in this county is … What it’s gonna sell for and which one just never sells. We have so much experience, so nobody knows these deals that you guys are doing better than us. So even in places where we’ve never done any transactions at all, ever.

Jill DeWit:                            Right.

Steven Butala:                   Certain states we’ve never done a deal in, or a land deal, anyway. I can still look at it and say, “You know, this is where a bank branch is gonna go.”

Jill DeWit:                            Right.

Steven Butala:                   “Or this is where a car dealership probably should go, ’cause there’s six other ones over here.” And so it’s really working out beneficially for us and for our members and that’s my whole point of this.

Jill DeWit:                            Yes.

Steven Butala:                   It’s not gonna be a very long topic today.

Jill DeWit:                            Exactly. That and I love that you share that with everybody. That’s what’s so great coming in to these deals. You know, we talked about that a little bit yesterday. We’re gonna tell you, “This works great. Here’s why. Here’s what I would change. Here’s why.”

Steven Butala:                   Yeah.

Jill DeWit:                            “Here’s why this deal stinks. Here’s why.” You know, kind of thing.

Steven Butala:                   Yep.

Jill DeWit:                            And it’s fast. We don’t need a lot of time to think about it and do, you know, you just don’t.

Steven Butala:                   It’s minutes.

Jill DeWit:                            It really is. So, but you know what’s interesting, too? I mean, let’s think. You have well over 20 years. I’m right behind you, babe.

Steven Butala:                   You’ve been in some version of real estate your whole life.

Jill DeWit:                            I have. When I was a kid, I worked for-

Steven Butala:                   Right.

Jill DeWit:                            … some developers. Not really a kid, but first full time job, let’s just say. I was in it. Doing this exact thing and I always knew that I loved it.

Steven Butala:                   Yeah.

Jill DeWit:                            And it’s so good to be back. I’m really, really glad and you know it’s funny the infill lots and those. I love that. That part’s fun for me, too.

Steven Butala:                   Yeah.

Jill DeWit:                            I like those versus just the real vacant land.

Steven Butala:                   Yeah.

Jill DeWit:                            This is good stuff.

Steven Butala:                   What we’re getting in a lot now is a lot of commercial property and there’s nothing better than that. There’s no better profit.

Jill DeWit:                            Exactly.

Steven Butala:                   Than specific, I call it specific use property, like agricultural property. It’s giving me really good ideas about what Land Academy 3.0 will be eventually.

Jill DeWit:                            Got it.

Steven Butala:                   Because if we’re gonna fund it, those are the kind of deals I want to be reviewing and doing.

Jill DeWit:                            Right. Well, the other thing is these buyers are different. When you’re dealing with commercial buyers and you’re dealing with professional other investors, that’s a whole different thing than dealing with the end user. That’s one of the things I love, too.

Steven Butala:                   Yeah.

Jill DeWit:                            With these different properties and these bigger numbers and all the different locations that we’re working with. It’s fun talking to Starbucks corporate, ’cause they already have a system. It’s not a big deal.

Steven Butala:                   Yeah.

Jill DeWit:                            Versus, “Oh, I think I need to take my wife out there.” Uh-oh. Right?

Steven Butala:                   Yeah. Can I put my mole on it?

Jill DeWit:                            Are you gonna meet me there?

Steven Butala:                   I’m not knocking that. I’m just saying it feels right.

Jill DeWit:                            Yeah.

Steven Butala:                   It’s easier. And there’s just a lot more zeroes involved so everybody’s, it’s worth our time and our members’ time.

Jill DeWit:                            Exactly.

Steven Butala:                   Well, you’ve done it again. You’ve spent another 10 minutes or so listening to the Land Academy show. Join us next time for finance Friday, with Jill and I.

Jill DeWit:                            Cool. And we answer your questions posted on our online community, LandInvestors.com. It is free.

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

Jill DeWit:                            I have something to say, ’cause it’s Thursday.

Steven Butala:                   Yeah.

Jill DeWit:                            We have an announcement coming out tomorrow, so please make sure that you get our eBook. You’re on our email loop and you have our eBook, or you’re getting our emails, so you will be notified of this special, cool thing coming out tomorrow. So watch for it. It’s great and-

Steven Butala:                   I created it. It’s great.

Jill DeWit:                            Awesome. By the way, too, wherever you’re watching or wherever you are listening, please subscribe and rate us there.

Steve and Jill:                     We are Steve and Jill.

Steven Butala:                   Information.

Jill DeWit:                            And inspiration.

Steven Butala:                   To buy undervalued property.

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