How to Find a Wholesale Money Partner Fast (LA 930)
How to Find a Wholesale Money Partner Fast (LA 930)
Transcript:
Steven Butala: Steve and Jill here.
Jill DeWit: Hola.
Steven Butala: Welcome to the Land Academy Show. Entertaining land investment talk. I never know what you’re gonna say.
Jill DeWit: Thank you.
Steven Butala: I’m Steve Butala.
Jill DeWit: And I’m Jill DeWit broadcasting from sunny southern California.
Steven Butala: Today Jill and I talk about how to find a money partner fast. A wholesale money partner fast for your real estate deal.
Jill DeWit: Isn’t that great? You know, I’m glad we’re talking about this. A lot of times that people say, “You know, Steve and Jill, they talk about the buy side. They don’t talk so much about the sell side. I know it comes easy for them but it doesn’t always come easy for me.” So I’m glad that we’re talking about selling and finding buyers. This is all really, really, really wanted and asked for information.
Steven Butala: I wrote this topic because this is what I struggled with when I started. This exact topic. I didn’t really struggle with anything else, plus or minus. Finding a good money partner, which in the end we didn’t do, I didn’t do. I chose to use the equity that I created on the last deal and put it in the next deal. And that’s one way you can do it, and it worked great for us, but it took probably four times as long as it needed to.
Jill DeWit: Right.
Steven Butala: Now we have a bunch of equity partners mainly because we started Land Academy.
Jill DeWit: Yep.
Steven Butala: We have other members. So it worked out.
Jill DeWit: Exactly.
Steven Butala: We’ll talk about some of the tools that we developed in a minute here. 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: Is this a long one?
Steven Butala: Yes.
Jill DeWit: Okay, so I watched this question being loaded in so I just want to preface you right now, listener. This is a little bit long and I’ll paraphrase where I can, but it’s really really really good, valuable information.
Steven Butala: If you’re a brand new member or you’re just kind of a lurker, which is great, this is really going to interest you because this person is a new member and he takes us through his journey of his first deal.
Jill DeWit: Exactly.
Steven Butala: If you’re already a member and you’re listening, I hope you’ve had an experience like this.
Jill DeWit: I’m pretty sure you have. Based on the comments, too, pretty sure you have. Okay, so it started back on January 23rd.
Jill DeWit: Hi. I just wanted to make a record of this moment-
Steven Butala: This person’s name is Joe Chu.
Jill DeWit: Oh yeah, Joe Chu. And it’s in Land Investors so if you wanna see it, go check it out. So starting on January 23rd.
Jill DeWit: Hi. I just wanted to make a record of this momentous milestone so that I can look back here a few years later and see where I started.
Jill DeWit: How cool is that, by the way?
Steven Butala: Yeah.
Jill DeWit: Using our community as like, to document, so you’re just gonna go, “I remember that day and how scared I was and here I am on my yacht.”
Jill DeWit: Anyway, so it says: I signed up for this educational program just about a month ago. I watched through the training, re-watched many chapters and listened to all of the 2018 [crosstalk 00:02:42] calls.
Steven Butala: Good.
Jill DeWit: Awesome! And even eavesdropped on a live call. Maybe it’s a fear of success, maybe it’s a fear of failure, but I’ve been procrastinating on my first mailer by staying busy with unproductive activities for far too long.
Jill DeWit: That happens, I understand.
Jill DeWit: I’d finally gotten over the first hurtle of making the first real move. I just finished ordering my first offers to owners mailer campaign. It feels like a heavy burden has just been lifted off my shoulders. Let go and you push the button. Or perhaps I’ve been fearing those phone calls and the fact that I will actually have to talk to other people instead of just typing on the internet. Now the fun begins, right?
Jill DeWit: So fast forward to February 6, 2019.
Jill DeWit: It’s been exactly 2 weeks since I sent my first mailer. So far I have not had any response yet. Might still be too soon. The anxiety is building up. On a side note, I did send out a second mailer one week after the first so if anything, the calls and the returned offers will be flowing in without any pause. It’s time for a third mailer.
Jill DeWit: That’s how you do it, by the way. Don’t think about it, just keep on going.
Jill DeWit: February 27th. Continuing to log my progress through this thread. The calls began to come in a couple days after the mail went out. It went just like Jack and Jill said it would. A flood of angry landowners questioning my pricing. Most were nice about it and politely asked me to remove them from my list. Only one guy used profanity in his voicemail to me. After a handful of upset landowners, my emotions got the best of me. I stopped picking up my calls for a couple of days.
Steven Butala: I understand that.
Jill DeWit: Then I recalled Jill’s training: Just kill them with kindness and start picking up the calls again and apologize for my pricing mistake.
Jill DeWit: Which is not a mistake, but that’s how you calm them down.
Steven Butala: Yeah.
Jill DeWit: Then to my surprise (even though I shouldn’t be ’cause Jack and Jill said this would happen) angry calls slowed and the desperate sellers came out of the woods.
Steven Butala: Works every time.
Jill DeWit: I think I’m using this phrase wrong, but anywho. Long story short, I have an escrow to purchase 7 lots and waiting for one more offer to come in. Tips for the beginners: Answer your calls. I checked my mailbox every day. Nothing came in via USPS. All these deals came through in the phone. I’m running short of funds now, haven’t mailed out offers in a few weeks for fear of lack of funds even though I shouldn’t use this excuse because I’ve got so many resources from the script. Yep. Working nervousness, I guess. After a few sales I will have the full confidence to do as the coaches say: Keep mailing regardless.
Jill DeWit: Yes. That was beautiful.
Steven Butala: That’s exactly how it goes.
Jill DeWit: That was so good.
Steven Butala: To this day when Jill and I do a 10 or 12,000 unit mailer this is exactly how it goes.
Jill DeWit: That’s true. You do it.
Steven Butala: Exactly like this.
Jill DeWit: Yeah, Steven’s like, uh oh. Did I press them wrong? Is the phone working?
Steven Butala: And on the first mailer for us it went just like this. There’s always a moment in a mailer where we’re like, man I obviously didn’t do something right on this one.
Jill DeWit: Yep. I thought you were gonna say there’s always a moment in our marriage. I was waiting for that one where I realized, did I do something right? Did I do this right? That would be you.
Steven Butala: We can change the topic.
Jill DeWit: Oh no.
Steven Butala: Talk about did I do this right in my marriage?
Jill DeWit: No I’ll talk about that in a minute. Alright. I love it. That’s it.
Steven Butala: That’s a perfect anatomy of how a mailer goes.
Jill DeWit: And thank you Joe. It was Joe right?
Steven Butala: Yeah.
Jill DeWit: Thank you Joe and you did it right. You were scared and you hung in there.
Steven Butala: Thank you for sharing.
Jill DeWit: Thank you for sharing that and that’s why you have us, you have our community, we’re here to help you through this, and you know what? Now look, Joe, you’re 2 months behind somebody else. So those of us here helping you on the next step, you can help somebody else and say, “Just put it in the mail. I felt the same way. Just do it, do it.”
Steven Butala: When I read that, that’s very motivational for me.
Jill DeWit: Yeah. I love the butterflies.
Steven Butala: There’s so much noise out there about what is motivational and what helps. This is incredibly helpful. We didn’t edit a word of this. Not one single word did I edit. That’s exactly what you can expect.
Jill DeWit: Exactly.
Steven Butala: On your first mailer and your last mailer. I hope you never have a last mailer like us.
Jill DeWit: I get excited. I know I’m the odd one. The phone rings, I’m look ooh I wonder what this is gonna be. Maybe it’s gonna be this, maybe it’s gonna be that. I have literally no fear of picking up the phone. Bring it. Cause I do that. If they’re really pissed off, then I take it a challenge to calm them down. Like you did just perfect by saying, “Oh my gosh, I must have forgot a zero. What, I forgot two zeros? What the heck was I thinking. I was clearly…” and then you can hopefully laugh about it with them. And then after you talk to them you realize, no I priced that perfectly. They’re nuts. Which is usually how it goes.
Steven Butala: Oh yeah. If anybody’s calling you ranting about the price that you offered, they’re nuts. We all know how to price mailers.
Jill DeWit: Exactly.
Steven Butala: If you’re going through the education and all this we’re not far off on our mailer price.
Jill DeWit: Exactly.
Steven Butala: Is it retail?
Jill DeWit: Joe already knows about this ’cause he wouldn’t have eight deals right now. He knows that. He’s got a handful of poopy ones to get the eight good ones. And by the way, I don’t think he listed the numbers in there but you obviously did fantastic. If your first mailer out of the gate you bought eight. Think about those percentages.
Steven Butala: Oh, by the way, Jill and I own offer sellers. Full disclosure. I checked with the O2O people before we ran the show today, and he only did a 585-unit mailer.
Jill DeWit: Oh that’s awesome.
Steven Butala: And he generated eight properties from it. Which is amazing.
Jill DeWit: That’s crazy strike percentage.
Steven Butala: We don’t recommend that. I recommend sending out a 1500-unit mailer just to make sure you buy a couple pieces of property, so.
Jill DeWit: Well I think he’s got that figured out.
Steven Butala: Yeah, he’s got something figured out. Just for fun, here’s what’s going to happen. This happens all the time. He’s jittery, jittery, lurking, figuring it out, spends a year on it, I don’t know if it’s going to happen, posts some stuff on Land Investors, buys eight properties, resells them and we never hear from him again.
Jill DeWit: Yeah. You’re about to go dark. Congratulations!
Steven Butala: Yep. He’s gonna go off into massive success and he’ll just listen to the Thursday calls we do. Maybe he’ll pipe in a little bit, but with the vast majority… how do I know this? Well, Steve, if you never hear from them again how do you know they’re successful? Because we just sent out, it takes an hour survey, to all of our members to see…
Jill DeWit: Which is a fantastic in-depth survey to all of our members.
Steven Butala: And we had like 60 or 70% of the active members respond to it.
Jill DeWit: Yeah it was wonderful.
Steven Butala: And they told us oh yeah we’re killing it.
Jill DeWit: And 1/3 of those have already left their jobs. They left their day jobs and they shared it with us, so.
Steven Butala: Staggering numbers.
Jill DeWit: It’s crazy. So how many more don’t talk to us, that was your point I think too. I’m too busy to do a survey sometimes. I do once in awhile. But something important to me I will.
Steven Butala: The other thing that I know is that I watched the numbers on who listens to and watches our Thursday call and the vast majority of people in our group log on to that call.
Jill DeWit: I know.
Steven Butala: They don’t say much. Everybody asks questions which is fine. But they’re there to hear the experiences that other people who are talking- it tells me it’s working.
Jill DeWit: Totally.
Steven Butala: When you run a lifestyle thing like this, I just learned recently that’s what we have. We have a lifestyle subscription company.
Jill DeWit: We do?
Steven Butala: Yeah that’s what it’s called. I had no idea.
Jill DeWit: Really?
Steven Butala: Yeah.
Jill DeWit: Based on what.
Steven Butala: I don’t know. That’s what people call it.
Jill DeWit: Huh.
Steven Butala: When you run a company like this correctly, which is what we try to do, you need to get feedback from everybody who’s involved in it whether it’s working or not.
Jill DeWit: Right.
Steven Butala: So that’s what we try to do. We’re constantly trying to get feedback to see if people are happy, if it’s working, and stuff we can add. I asked myself, is it harder to run a lifestyle company like this? Or is it harder to buy and sell real estate?
Jill DeWit: Sounds like a magazine. I’m gonna start using that a dinner party. You know, that’s good, I’m going to confuse even more people. This is great information. I’m always struggling with telling people what I do ’cause 99% of the time they want to talk to me. I’m like, darn it shoot. You know, the other day I called a woman about a studio space and she asked me about our business so I said, well just go to this website and you can see us. And right away she said, “If this doesn’t work out, I want to talk to you.”
Steven Butala: Really?
Jill DeWit: I’m like, okay, here we go again. She’s telling me all about being up at night and looking at property and I’m like oh no. But anyway, I’m gonna start doing that.
Jill DeWit: So what do you do?
Jill DeWit: I run a lifestyle company. Lifestyle subscription company.
Steven Butala: Subscription lifestyle company.
Jill DeWit: Yeah. What’s that? Oh I can’t go into that now, but, you know.
Steven Butala: I mean depending on age they’re not going to know what this is.
Jill DeWit: No.
Steven Butala: I didn’t even know we had one of those things. We’re just setting up tools to do deals.
Jill DeWit: Thank you. By the way, should we get to the meat of this show?
Steven Butala: Yeah.
Jill DeWit: Okay.
Steven Butala: Today’s topic: How to find a wholesale money partner fast. This is the meat of the show. This is way easier than everybody thinks and it centers around one simple concept and if you’re a note-taker this is what you want to write down. This is the takeaway from the show.
Jill DeWit: Ready. I’m taking notes.
Steven Butala: You have the power to purchase undervalued real estate. If that’s the case, and you feel that you’ve gone through the education and you’ve done a few deals, you understand that kind of euphoria like, you know what? I can control my life now. Everything else is gonna fall into place. I’m not saying kick your heels up and watch football. I’m saying that’s the nucleus for everything so if you have a good deal, an honest, well-priced, undervalued deal, money’s gonna find you. Especially in this group.
Jill DeWit: It’s true.
Steven Butala: Jill and I have set up all kinds of tools to make sure that’s the case. The most recent of which is Land Tank. T-A-N-K. It’s like Shark Tank for land. You post a great deal on there, other people in the group who have hoards of money that are just watching want to partner with you, so they click on it, it’s as simple as that. You two get together and purchase the property. You as the locator of the property, the manager, have to put not $1 in. The partner, the investor – investor and manager are the two rolls, that’s what they’re called – funds the whole thing.
Jill DeWit: That’s what we do with our deal funding. Some of the members, I think, do a little bit different thing and it’s totally up to you, by the way. When you post and you find something in Land Tank, do whatever you want.
Steven Butala: If it doesn’t work for us it’ll work for somebody else. There’s probably 5 or 6 ways you can get funded. But, here’s the whole thing, can’t be a bad deal. It’s gotta be a good deal.
Jill DeWit: It’s gotta be a good deal. I think of, to get a good money partner you need a reliable buyer pool. That’s really what it is. I was thinking about that. A lot of people post things on social media, like I have this deal. Is anyone gonna work with me? I’m not so sure about that way. I’ve never actually acted on one so I really don’t know, and I’ve never really talked to one that they’ve done at all successfully of unsuccessfully. I’d love to know if anybody’s done that. But no matter what, to have a wholesale money partner, you need a reliable group of people. So that’s where we come in. And I always look at either a well-established company or a community like ours, like you just said. And that’s on Land Tank or you can ever go to our Land Investors and we’ll do the deals too for our Land Academy deal funding. I’m literally wiring money for deals for our people.
Steven Butala: I just saw two properties go through Land Tank that are, one’s $75,000 and one’s $50,000 for great pieces of developable real estate. And the manager on there who’s a very outspoken, loud in a good way, person who’s in our group. They’ll triple their money.
Jill DeWit: Exactly.
Steven Butala: So that’s how you use that. And those are the kinds of deals that we like to do. Does that mean that there aren’t other money people in our group that would love to do $5,000 deals and turn them into $10,000? No they are all selling there too.
Jill DeWit: Exactly.
Steven Butala: Here’s my point and then we can move on. As long as the deal’s good, there’s gonna be somebody in our group that wants to fund it for you.
Jill DeWit: Exactly.
Steven Butala: You just have to approach it the same way you approach finding sellers. You just can’t give up.
Jill DeWit: My other thing is too, to find a good partner who really wants to do it with you, it’s gotta be a good enough deal that you’d be doing it by yourself, you just literally don’t have the money. Or you’re doing something a different way. And I think that’s what leads in to tomorrow’s show is why you started this. Tomorrow’s show is the velocity of money. So you might be allocating your money in certain areas to increase the velocity of money, which we’re going to go into tomorrow. You could afford it but you’re choosing not to for a reason and you’re going to outsource it and split the profit because there’s a reason for it. And I get that.
Steven Butala: There’s two inevitable things that are going to happen, and you need to prepare yourself. This is actually a chapter in Land Academy 2.0. The sooner you prepare yourself for it, the better, ’cause a lot of people get hung up on it and I don’t want that to happen to you.
Steven Butala: #1 – You’re gonna run out of money. It happens to Jill and I even.
Jill DeWit: Exactly.
Steven Butala: Do we spend all of our money on it? No, years ago we put a certain amount of money into a bank account and created a company and then we just never take any money out. The bank balance goes up and down and up and just keeps accumulating money. You pay some taxes on it, it keeps going up and down and up and down and up and down. We have lots of different revenue sources so that’s kind of a luxury for us. We allocate on X amount of dollars out, invested out there at a certain amount of time. So almost every month we run out of money.
Jill DeWit: But then it goes up again. Like, oh I gotta go buy some stuff.
Steven Butala: You know what we do? We don’t let the deals go to waste. We bring in our money guys.
Jill DeWit: Yeah if I can’t do it, that’s a good point, I’m not gonna go and like sell something to make ends meet. Then I will bring somebody else with me. We’re not gonna let no good deals go to waste. That’s what you should always be thinking and always saying and that’s your line.
Steven Butala: And the second thing is, you will experience slow sales. It’s a version of what I just described. If you’re doing everything right, there’s this constant push to, well if I could just sell this property and get revenue out of it, money out of it, equity out of it, I could buy this next one that’s in the queue. And so you have to very early on address slow sales. The best way can you can address slow sales is by making sure you have an internet presence, what Jill said earlier, make sure you have a good solid buyer’s group that are professional people in the business, in the place where you’re buying and selling houses or land or whatever, and make sure it’s expanding.
Jill DeWit: Yep.
Steven Butala: So, address those things early on and they won’t be a huge problem but they still will exist. A lot of people just think they fail, like oh my god I ran out of money. Oh man I’ve owned this property for a month and a half that Steve and Jill only said is supposed to take 3 weeks. It just happens.
Jill DeWit: It happens.
Steven Butala: Well you’ve done it again, you spent another 15 minutes or so listening to the Land Academy Show. Join us next time where Jill and I talk about the velocity of money.
Jill DeWit: 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. You’re cutting me off there.
Jill DeWit: You have a lot to say these couple days. It’s good, I’m glad.
Steven Butala: I do. I don’t know why. I wonder.
Jill DeWit: I don’t know. I’m excited. Wherever you are watching, wherever you are listening, please rate us there. We are Steve and Jill
Steven Butala: Information-
Jill DeWit: And inspiration-
Steven Butala: To buy undervalued property.
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