Think This All the Way Through (LA 919)
Think This All the Way Through (LA 919)
Transcript:
Steven Butal: Steve and Jill here.
Jill DeWit: Hello.
Steven Butal: 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 Butal: Today Jill and I talk about the topic think it all the way through.
Jill DeWit: I feel like I’m telling my child that. I’m telling everyone that.
Steven Butal: I know. I was thinking about that too. This is a little preachy, this topic.
Jill DeWit: It kind of is. But we’re going to tie it in.
Steven Butal: We’ll make it funny and not preachy.
Jill DeWit: We will. But we should walk around. Everything that you’re doing, especially like my team. Did you think this all the way through? Maybe that should be the topic. Did you think this all the way through?
Steven Butal: Before we get into it, let’s take a question posted by one of our members on thelandinvestors.com online community. It’s free.
Jill DeWit: Sam asks, “Hello all. I’m curious what people think about land investing in 2019. I’ve not purchased a course, but I’ve done about two weeks of research on my own.”
Steven Butal: That’s good. That’s great.
Jill DeWit: “And I think I’m ready to get started.” That’s good. “However, one thing that has been daunting me, the bulk of the information published is several years old. Since then, I’m assuming hundreds of other investors have entered the mix. Looking at the numbers just to advertise on landacademy.com,” this is for last month, “185,750 offers mailed, and 283 properties purchased is roughly a .1% success rate.” I have something to say about that too. “Has the low barrier to entry created too much competition or over fished the pond? Let me know your thoughts. Thank you.” And then we have one person that already weighed in. Is it okay if I go ahead and read that?
Steven Butal: And we have a couple responses here. But I have to say this. I would encourage you, listener, to go onto landinvestors.com. I published two responses here, and I’m going to answer the question too, so is Jill.
Jill DeWit: Right.
Steven Butal: We’re going to actually spend a couple minutes on this because it’s so important. Well, you know what, let’s hear what they say.
Jill DeWit: Okay. One of the things I want to talk personally on is we can really accurately see the data because it’s run through our company, the numbers. I know that part’s accurate. But what’s not accurate is what people actually buy and what they post, because they often sell properties and don’t post it on LandPin. So that number is lower than what is real. I just put the numbers that we have access to.
Steven Butal: If you go on any of our websites, or the vast majority of them, there’s this little thing that pops up that says, “This is the number of data that our group pulled last month.”
Jill DeWit: Right.
Steven Butal: “This is the number of units that we mailed out collectively.”
Jill DeWit: Purchased. Right.
Steven Butal: [inaudible]. And these are the estimated number of transactions that were completed. And it’s always around 1%. But it’s trailing because you don’t purchase and sell a property.
Jill DeWit: It’s true.
Steven Butal: Purchase a property in one month and … It’s overlapping.
Jill DeWit: That’s a good point.
Steven Butal: So it’s misleading, and I’m actually making some changes to that.
Jill DeWit: That’s a good point.
Steven Butal: Based on this inquiry.
Jill DeWit: Yeah. It is confusing. We have a bunch of new members that are starting in January, so they’re really sending out a lot of mail right now, which is great. It’s going to be two and three months down the road by the time they buy it, post it, and get caught up here. So you’re right, that is-
Steven Butal: Jill and I are doing commercial real estate deals now, commercial land real estate deals, so as far … we don’t do a 1 to 3% response.
Jill DeWit: That’s true.
Steven Butal: That the super successful rural, vacant land people do here.
Jill DeWit: That’s true.
Steven Butal: I don’t want to make this a big numbers thing. Actually, I really do, but I’m not going to ’cause Jill hates it and nobody likes it.
Jill DeWit: I think that was enough.
Steven Butal: Six people like it and that’s it.
Jill DeWit: That was good. That was enough. No more numbers.
Steven Butal: Just trust me.
Jill DeWit: Yeah.
Steven Butal: It totally works, and the pond is not over fished.
Jill DeWit: Okay.
Steven Butal: So let’s hear what Alex says.
Jill DeWit: So Alex responds, “It depends. If you mail counties that zillions of people mail to, you may be disappointed with either the hit rate, or the numbers involved. Ask yourself the same question about other real estate investors. Why do tons of people buy and sell slash hold houses all over the country? There’s enough for everyone, but it takes a little trial and error. Buy the Land Academy course and become a member. It’s worth it.” That’s so sweet.
Kevin weighed in and says, “Those numbers you just quoted included lower response type investments that Steve and Jill do such as homes, large ranches, and infill lots. As Luke said, still getting deals from mailed offers.” Yep. That’s so true from [crosstalk].
Steven Butal: There’s a lot you can say on this.
Jill DeWit: Exactly. That’s what a lot of our members do. They’ll do … Luke Smith’s a prime example, he’ll hit the area hard and then do no mail and sit back for six months and work those transactions. Hit it hard, six months.
Steven Butal: I’m not selling anything here at all. We don’t do this show to sell stuff.
Jill DeWit: It’s a [crosstalk].
Steven Butal: I’ll tell you the straight truth. But sending offers to owners, blind offers to owners in real estate, for any product type, in any place in this country works. It’s all about pricing.
Jill DeWit: Right.
Steven Butal: There are about 8 to 10 counties right now and it hasn’t been this way for a very long time, actually ever, that are a little bit oversaturated with mailers because of [Mark Perdowski’s] group the [Landgate] because he coined this phrase two years ago, he coined it, I’ll let you in on the secret counties.
Jill DeWit: Right.
Steven Butal: Outside of avoiding those counties, you’re gonna do fantastic. It’s real easy to ask somebody in their group what are those 10 counties. What are the secret … there’s no secret.
Jill DeWit: That’s what we all want to know, what are the secret counties ’cause that’s where we’re gonna stay away from.
Steven Butal: It’s a reverse effect.
Jill DeWit: Isn’t that funny? You guys can all have those secret counties. There are no secret counties.
Steven Butal: And they’re outside, they’re all out west, they’re all desert counties. If you choose some county in New Jersey and price it right, you’re gonna kill it.
Jill DeWit: Exactly.
Steven Butal: Gonna do fantastic. I don’t say New Jersey, I mean-
Jill DeWit: Anywhere.
Steven Butal: Yeah.
Jill DeWit: Thank you.
Steven Butal: [inaudible] topic. Think this all the way through. This is the meat of the show. This actual, I wrote this title because our number three child who’s 15 and a half-
Jill DeWit: Is making mistakes.
Steven Butal: Our number three and last child. Or not last, well yeah.
Jill DeWit: Yeah, last.
Steven Butal: Our number three.
Jill DeWit: Oh yeah.
Steven Butal: I don’t mean last, I mean-
Jill DeWit: There will be no more.
Steven Butal: What I mean is three of three.
Jill DeWit: Okay. Were you questioning this?
Steven Butal: No.
Jill DeWit: No, there will be no more.
Steven Butal: There might be listeners who say, “Well, what about number five? How about number eight? How’s that number eight?” No. There’s only number three.
Jill DeWit: That’s it. Three of three.
Steven Butal: Not to go into detail about this, but anybody who’s ever had children or nephews or nieces or extended family or even friends who have children, you know that a 15 year old just doesn’t think about stuff the way that an adult does. That’s fine. That’s part of growing up. For whatever reason, children, well we all know that children’s brains, they’re growing. And they just don’t think stuff through.
Jill DeWit: This is funny.
Steven Butal: You, as an adult, have the luxury of thinking things all the way through.
Jill DeWit: Yeah.
Steven Butal: Always.
Jill DeWit: And having some experiences to pull from so you have some idea.
Steven Butal: I always start with the very, very, very end. And work my way backwards.
Jill DeWit: Yep.
Steven Butal: That’s what that phrase really means. Jill was right, right at the beginning. God it sounds preachy. Are you gonna tell us what to do? No I’m not gonna tell you what to do. I’m just making you aware of this.
Jill DeWit: Yeah.
Steven Butal: We have a very successful, well one member right now who’s come into a tremendous amount of really recent success and he’s very vocal, I’m not gonna mention his name and we talk to him all the time. He keeps setting these goals.
Jill DeWit: Yeah.
Steven Butal: For whatever reason, he thinks it all the way through for a year, sets the goal, hits it. Next year, sets a goal, hits it.
Jill DeWit: Right. They’re annual goals.
Steven Butal: Sees it. For him, it’s an annual thing. For me, I always think out a little further.
Jill DeWit: Right.
Steven Butal: I try to. But I think I’m a lot older than him too.
Jill DeWit: I’m just trying to get through today.
Steven Butal: Jill’s trying to get through this show.
Jill DeWit: Yes. That’s really all. That happens. It’s a win, win here.
Steven Butal: So this can be the shortest show ever.
Jill DeWit: I have some stuff to say.
Steven Butal: Oh.
Jill DeWit: What the heck.
Steven Butal: My point is start with the end and go backwards. Go ahead Jill. I want some coffee [inaudible].
Jill DeWit: Please do. Have some more coffee ’cause that’s exactly what you need right now. So I didn’t give you that double dolted jolted whatever that caffeine that is, ’cause that stuff scares me. I haven’t had that yet. So I was thinking about, okay, this is also flip talk week, right? So I was tying this into thinking all the way through and flip talk week. I was thinking thinking this all the way through to me is also setting yourself up to make good decisions. Have you got this end goal? Whether it’s a three month goal or a six month goal or a year goal or a five year goal. I think that’s how you roll, you’re the five year goal. And honestly, I’m more like a … I do a lot of short term goals more than I do bigger goals. I do more three month, six months goals ’cause I’ve-
Steven Butal: Oh, really?
Jill DeWit: Uh-huh (affirmative). That’s how it makes it easiest for me, how I process it. But the other thing I was gonna say is as you’re setting these goals and you’re thinking this all the way through, I’m gonna get kind of philosophal but philos-
Steven Butal: Philosophical.
Jill DeWit: That’s it. What kind of business culture do you want?
Steven Butal: Oh.
Jill DeWit: So for me that’s part of thinking this all the way through. I’m thinking about Land Academy and I’m thinking about what we’re prepping for right now. And this is where this is coming from for me is we’re prepping for House Academy and we’re prepping for a new show. So I’ve got to really sit down, think this all the way through, and make sure I have the right people, the right tools in place and it goes the way I want it to go. That’s where the business culture for me comes in.
Steven Butal: Yep. I mean, you have to sit and think. If you’re gonna plan out a new show, for instance, that’s a great example. That’s an example near and dear to our heart.
Jill DeWit: Right.
Steven Butal: It’s not so much buying real estate, buying and selling real estate, ’cause that’s a machine for us.
Jill DeWit: Right.
Steven Butal: That’s just running in the background constantly. And we have the right people in the right place doing that. These shows, and sometimes these deals, or let’s say these mailers just take on a life of their own.
Jill DeWit: Right.
Steven Butal: Like Luke Smith, his full philosophy is if you just get tons and tons of offers into the mail, that will lead you down this path-
Jill DeWit: That’s true.
Steven Butal: Of acquisition and sales.
Jill DeWit: Well we’ve said that.
Steven Butal: That’s his thing. Other members are really surgically, from a mailer standpoint, only types of this type of property, let’s say large expensive commercial property on main roads in the Midwest.
Jill DeWit: Right.
Steven Butal: So they handle it that way and they choose that path.
Jill DeWit: Right.
Steven Butal: And they know the exit on that. That’s reselling it for a profit as fast as possible. So with a show it’s a little bit more complicated. All right. Let’s say the show goes great. You launch the show, you get everything you want. Do you really want to write a book? Do you really want to do a live event? What do you want? What’s time consuming? Where’s the best bang for the buck?
Jill DeWit: Right.
Steven Butal: So when it comes to that kind of stuff, you really have to think it through.
Jill DeWit: That’s true. Well I was thinking for our listeners, this is new, the person who wrote in the question. So he’s thinking about getting into this business. First of all, he’s got two weeks of research in. I think that’s great.
Steven Butal: Me too.
Jill DeWit: Keep going. More research the better. You don’t want to jump into this. You want to think it all the way through. You don’t want to jump in flippantly. You want to make sure this is something you understand and you can handle and you want to do it, by the way. And where do you see yourself? What’s the end goal? Why would you even be doing this? Are you doing this because you have a lot of free time? Probably not. You know, seriously.
Steven Butal: And you’re [inaudible].
Jill DeWit: So that’s part of thinking this all the way through for me.
Steven Butal: Yeah. Have you thought this relationship all the way through, Jill?
Jill DeWit: No, I have not. Again, I’m really short term. I just want to get the next 30 days. And then the next 90 days and maybe just through today.
Steven Butal: I thought it all the way through.
Jill DeWit: I’m just kidding.
Steven Butal: Guys think relationships through I think more than women do.
Jill DeWit: Oh?
Steven Butal: Women feel their way through stuff.
Jill DeWit: When do you make a decision … all right. I have a guy question.
Steven Butal: Yeah.
Jill DeWit: Side topic. So you meet someone who you think this could work long term. When do you make that decision, is it pretty quickly? You go, you know what she’s not crazy, we’ve had three dinners together, this could work. Or is it three months? Or three years?
Steven Butal: Depends on your age and all that stuff.
Jill DeWit: Oh.
Steven Butal: When you’re real young, you have really short term goals with women.
Jill DeWit: I understand, like ours.
Steven Butal: When you get a little older and you’re tired of that and you got it out of your system-
Jill DeWit: Yeah.
Steven Butal: It goes in phases. You want to know the truth about this?
Jill DeWit: Yeah. I really do.
Steven Butal: You can weed out probably 50 to 70% of all the problems that are down the road on the first date.
Jill DeWit: Really?
Steven Butal: Well maybe second. It depends on how much they’re lying.
Jill DeWit: Oh.
Steven Butal: Like at my age, I can see it in 30 seconds.
Jill DeWit: That’s good.
Steven Butal: But when you’re 25 or 30.
Jill DeWit: Yeah. That’s true.
Steven Butal: Here’s a problem and this ties into real estate. When you want something and you see yourself in a situation, you tend to start to see things that aren’t there.
Jill DeWit: Oh.
Steven Butal: You see these attributes maybe that this person has, this girl has, that just aren’t there.
Jill DeWit: True.
Steven Butal: I’m sure women do that too.
Jill DeWit: Yeah.
Steven Butal: Women probably say some version of, “Well, yeah. He’s like this, but I’m sure after about a year, I can change him.”
Jill DeWit: Yeah.
Steven Butal: “I can get this guy to come around.”
Jill DeWit: He’s a jerk, but he looks good.
Steven Butal: Or maybe-
Jill DeWit: Not you, but you know what I mean.
Steven Butal: Yeah.
Jill DeWit: Girls say stuff like that.
Steven Butal: Or I can get him to not be a jerk, if I just get in there.
Jill DeWit: Right. Oh he’ll want kids.
Steven Butal: If I get in there a little farther. Yeah.
Jill DeWit: He’ll want kids when I’m done with him. That’s my favorite.
Steven Butal: So what a guy says after you find out if she’s not crazy, after that, then there’s something to actually … then what a guy says is this, “Wow, okay, great. I hope she never changes.”
Jill DeWit: Oh no.
Steven Butal: “If she’s not crazy, I really hope that she,” you know.
Jill DeWit: That’s sweet.
Steven Butal: Just stays the … you haven’t changed since the day I met you.
Jill DeWit: Thank you.
Steven Butal: Actually you’ve gotten … it’s all good.
Jill DeWit: Thank you.
Steven Butal: It’s all positive. But women are … men and women are really different.
Jill DeWit: But I like how you tied it to real estate. Which is true because I have people right now, they’re submitting deals for me on the Land Academy deal funding site. And they’ll actually say, I had a couple last week, they said, “I hope I’m not seeing something that’s not there. So I’m trusting you to look at this and tell me.” ‘Cause that can happen sometimes. You’re so excited about a deal, you’re like, “Oh my gosh.” But you have to be really careful and make sure you do your due diligence, make sure it has all the four As and price right. ‘Cause sometimes we can tend to get so excited that we’re like, “Woops.”
Steven Butal: So excited to make enough money and make a business out of this.
Jill DeWit: True.
Steven Butal: So you can leave your job or change your situation. I understand that.
Jill DeWit: Me too.
Steven Butal: I’ve said this four or 50 times on this show, I had a big problem with that when I first started out. I was dying to get out of the job that I had.
Jill DeWit: Yeah.
Steven Butal: It wasn’t, fortunately, the first two deals I did were … I walked out with almost a million bucks. First two land deals, they’re multi-unit land deals.
Jill DeWit: Right.
Steven Butal: So I don’t know if that’s fortunate or just I don’t know. I made a good decision.
Jill DeWit: I don’t know. It’s like walking into a casino.
Steven Butal: No, it’s not.
Jill DeWit: But here we are. It worked. We got it.
Steven Butal: Well you did it again. You spent another 15 minutes or so listening to the Land Academy show. Join us next time for the episode called Wholesale versus improvement equity.
Jill DeWit: And we answer your questions posted on our online community landinvestors.com. It’s free.
Steven Butal: You are not alone in your real estate ambition.
Jill DeWit: Might have jumped on the script there.
Steven Butal: No it’s good. Tomorrow we’re gonna talk about creating equity. There’s two ways to create equity. And we get this question a lot. It’s not the first time we’ve done this topic. But as time goes on, we learn more and we need to share it. You can create equity by buying a property that’s … if you have 100,000 dollar property and you buy it for 80,000 dollars, you just created 20,000 dollars of equity for yourself.
Jill DeWit: Right.
Steven Butal: Or if you buy 100,000 dollar property and you improve it, you do some stuff to it, and it’s worth 120 grand, now you’ve created 20,000 dollars of equity. I’m oversimplifying, but that’s what tomorrow’s show about. Guess which way we like?
Jill DeWit: Exactly.
Steven Butal: Guess which way you don’t have to leave your desk at all?
Jill DeWit: Wherever you are watching or wherever you are listening, please rate us there. We are Steve and Jill.
Steven Butal: We are Steve and Jill. Information-
Jill DeWit: And inspiration-
Steven Butal: To buy undervalued property.
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