3 Simple Systems in Place Before You Send Offers (LA 960)

3 Simple Systems in Place Before You Send Offers (LA 960)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Good day.

Steven Butala:                   Welcome to the Land Academy show entertaining land investment talk I’m Steven Jack Butala.

Jill DeWit:                            And I’m Jill DeWit broadcasting from sunny southern California.

Steven Butala:                   Today jill and I talk about the three simple systems you should have in place before you send out mail. And I chose this topic because I was going through Land Investors and there’s lots and lots of discussions about … It seems to me there’s three types of discussions that go out about mailers in Land Investors. Oh my gosh I just bought 14 properties I can’t believe it. And then almost immediately you just don’t hear from them anymore ’cause they’re done with it. They learned how to do it and they’re rinsing and repeating and repeating and repeating. Those are my favorite.

Steven Butala:                   Number two is how do I sharpen my pencil? What’s the first step I don’t know what to do? And then number three is, “Hey I did all this stuff. It’s just not working like I thought.” And that’s really what this show is about, this episode. I sent out a bunch of mail, I’m getting a response it’s not the response that I thought. Let’s look at the systems that I have in place. Maybe there’s something I missed. That’s what I really … It’s technical week I guess this week.

Jill DeWit:                            I guess so. Went from back office week to technical week and that’s okay. That’s how we do-

Steven Butala:                   It’s the same thing.

Jill DeWit:                            Things.

Steven Butala:                   Before we get into it let’s take a question posted by one of our members on the LandInvestors.com online community. It’s free.

Jill DeWit:                            Sandy asks, “What makes one county better than the other county when comparing back tax history?” Love it.

Steven Butala:                   Why are you guys always saying back taxes don’t, never mail, why are you answering this question?

Jill DeWit:                            No we’re talking about back taxes.

Steven Butala:                   What does back taxes have to do with it?

Jill DeWit:                            Right. Wait a minute.

Steven Butala:                   What the hell Steve? When you’re choosing a county it’s important. It’s not imperative. It’s important to look at the back tax history of that county. Some counties like Wayne county Michigan where Detroit is there’s 20, 30, 40, 50000 properties in a back tax situation. That’s a red flag for me. That’s all I’m saying. Just take a look at it. Mojave county same situation there’s always 14, 15, 20000 back tax properties on there. Is that a red flag? Should you send your mail? Maybe, maybe not. Some counties have no back tax for … Utah for some reason is famous for having very very few back tax properties ever.

Jill DeWit:                            Right.

Steven Butala:                   So maybe it’s a cultural thing up there. I’m not sure. All I’m saying is take a look at it and make a decision so here’s an example. I mean Wayne county Michigan has all these inner-city back tax properties that are amassing it’s gonna be, it’s, in my opinion, unfixable in our lifetime for a bunch of reasons. Mojave county on the other hand has the same back tax situation that might be a good thing ’cause there’s just a lot of property that has been sold in the 60s and 70s and 80s that nobody’s just gonna do anything with it and they just let it go back so that’s a good thing.

Jill DeWit:                            And it’s a growing community. We know that.

Steven Butala:                   Yeah exactly.

Jill DeWit:                            So that’s the thing.

Steven Butala:                   Exactly, but what we want, like when comparing counties more realistically those are extremes. If you’re looking at five or eight counties let’s say in Ohio and ones got 25 back tax properties and ones got a 1000 somethings going on in that 1000 unit back tax county that is worth for you looking into.

Jill DeWit:                            Right.

Steven Butala:                   That’s what I mean.

Jill DeWit:                            Does this fall under your thing? You say check it for … What’s your thing-

Steven Butala:                   Test it for reason.

Jill DeWit:                            Test it for reason. Is that-

Steven Butala:                   Exactly.

Jill DeWit:                            Okay. That’s the whole point and Steve I know you talk about that in a lot in the first program which applies to every program.

Steven Butala:                   Yeah that’s a good point.

Jill DeWit:                            That’s what you should be testing. You’re testing it for reason here everyone. We’re not gonna give you a … This is I think what people get hung up on. Can you give me a percentage? Should it be between 30 and 60 or where should it fall? No it’s a test for reason kind of thing.

Steven Butala:                   Yeah.

Jill DeWit:                            Thank you.

Steven Butala:                   Yeah I’m trying to think of another good example like Florida.

Jill DeWit:                            I got one.

Steven Butala:                   Yeah.

Jill DeWit:                            Well usually it’s these areas like think about New Orleans that got hit with … Usually I think of areas that got hit with horrible weather disasters or other kinds of things like Detroit. There’s things that you already know. Trust your gut. This is a test for reason thing. Or there’s gonna be places when you get into this that you’re gonna go, a light bubble will go off, you’re gonna go, “I know this is an up and coming area. I know Coeur d’Alene, Idaho everybody wants to move there or whatever it is. There’s some other areas I’ve been thinking about. I know it and I see a lot of back tax property here. I could be ahead of the wave and that’s what you’re looking for. And that’s what you should be thinking about.

Steven Butala:                   Here’s another thing if you like counties and states where there’s lots of back tax property. What you’ll find when you look it up is that the focus of the properties that has back taxes on it whether its lien or deed. It’s usually in one area. So maybe-

Jill DeWit:                            Good point.

Steven Butala:                   Maybe if you’re like me and then I would want to avoid that area so I’ll remove it from my mailer and you can tell what the APN scheme is and things like that. So there’s a lot of information you can … There’s a lot of information you can get for free very quickly by looking at what’s going on in the back tax situation in that zip code or in that county. And depending on what your personality type is and what you like to buy. What your acquisition criteria is you leave it in, you run away or you get right into it. Again, like Jill said it’s not this is how you do it.

Jill DeWit:                            Right. It’s not like 35 to 48%. Could you … so-

Steven Butala:                   If we said something like that what would happen is three counties out of the 3200 counties that there are would qualify.

Jill DeWit:                            Yeah.

Steven Butala:                   For 38 to 39%.

Jill DeWit:                            Exactly.

Steven Butala:                   And every single person on the planet would go there and would send mail.

Jill DeWit:                            That would be it. That’d be hilarious.

Steven Butala:                   You know it’s not like we’re withholding. It isn’t some number like that. It’s whatever your thing is.

Jill DeWit:                            It’s not a secret.

Steven Butala:                   Again, I keep coming back to convenient stores. Let’s say you have a convenient store in Wayne county Michigan. The stuff that you’re gonna sell out of that convenient store is very to the taste of the local people.

Jill DeWit:                            It’s true.

Steven Butala:                   If you’re in Orlando, Florida and you own a convenient store same owner. You own one in Detroit and one in Orlando, Florida. The stuff that’s gonna fly off the shelf I can guarantee you is totally different. So you can’t just, what?

Jill DeWit:                            Beautiful example. I think of Costco I didn’t mean to finish your thing, but Costco does this same thing.

Steven Butala:                   Yeah. I didn’t mean to finish your thing.

Jill DeWit:                            I didn’t mean to interrupt you. What you say?

Steven Butala:                   You know that sentence always cracks me up.

Jill DeWit:                            Which one?

Steven Butala:                   I didn’t mean to interrupt you.

Jill DeWit:                            Sorry.

Steven Butala:                   Okay. Well you did.

Jill DeWit:                            A light bulb went off. But yeah, but you’re exactly right. No I love your example ’cause we all know Costco. If you don’t know Costco does this or you should know Costco does this. This stores gonna have expensive wine, the store five miles away has cheap wine. Why? That’s cause, well that’s what the people buy. There’s no rhyme or reason. It’s just, but you have to learn it and feel it and test it.

Steven Butala:                   Did you know that 90 … Costco sales 97% of the wine in this world?

Jill DeWit:                            Yes. I did know that. I did know that.

Steven Butala:                   When you sit and really think about that the implications of that are staggering. So France has been around for a very long time producing, arguably, let’s just say Europe, not France. Arguably the best wine ever. And then here comes Costco which is I don’t think, I think Costco started in the 70s. 34 years old.

Jill DeWit:                            Right.

Steven Butala:                   They just completely and totally taken over the sells distributions scenario for an age old industry.

Jill DeWit:                            It’s amazing. Yep.

Steven Butala:                   That’s staggering.

Jill DeWit:                            It’s pretty cool.

Steven Butala:                   And upsetting when you kind of think about it. I mean good for them and good for America. I’m all for that stuff, but I don’t know maybe the channels … it doesn’t matter.

Jill DeWit:                            Okay.

Steven Butala:                   Today’s topic three simple systems to put in place before you send out offers. This is the meat of the show.

Jill DeWit:                            I imagine everyone right now is getting out a notepad.

Steven Butala:                   I would.

Jill DeWit:                            Yeah. And writing this stuff down. I happen to have a notepad. So-

Steven Butala:                   Number one. Here’s the Roman numeral outline for these things. Number one, data, and we’ll get into the details in a second. What’s number two?

Jill DeWit:                            Be ready.

Steven Butala:                   Yeah set yourself up to receive the imbalance flow of the stuff that’s gonna happen. And then number three.

Jill DeWit:                            Act.

Steven Butala:                   Yeah be ready to act.

Jill DeWit:                            Mm-hmm (affirmative).

Steven Butala:                   You know really put yourself we’ll get into in a second.

Jill DeWit:                            Yep.

Steven Butala:                   Number one data go ahead Jill.

Jill DeWit:                            Okay this is one of the things that you need to spend time on. You need to spend a weekend on. You don’t skimp here.

Steven Butala:                   At least.

Jill DeWit:                            Exactly. Pulling the data, scrubbing the data, learning the data, comparing it to things like we just talked about with the question and accurately pricing the data. Did I say that slow enough? Did I emphasize it enough? Pricing the data is very-

Steven Butala:                   When you become a Land Academy member and you get your log in ID for RealQuest Pro and Title Pro. You should go in and for the first time in RealQuest go in there, not so much in Title Pro, but in RealQuest and you should fall out of your chair about what’s available. I remember like it was yesterday.

Jill DeWit:                            Me too.

Steven Butala:                   Going in the first day going into RealQuest and then recently probably two years ago in a data tree, data trees coming to House Academy. You don’t get it with Land Academy for a bunch of reasons. I spent hours and hours and hours not thinking about sending out a mailer or looking at or trying to follow a program or any of that. Just mesmerized.

Jill DeWit:                            Right.

Steven Butala:                   Amazed that I could look up my house and all the information that I own all the information about that I didn’t even know as a house owner and then at that time when we got it I owned all this other real estate ’cause I was buying it at auctions [inaudible 00:09:57] 90s. Just with my jaw on the desk going, “I can’t believe. This is so powerful. This data is so powerful on what I can do. I’m gonna spend the rest of my life buying real estate.” And here I am what? 30 years later. 25 years later doing things. So if you don’t have that I don’t know what this generation. This generations used to data sources like this. Maybe.

Jill DeWit:                            I don’t think they are. I don’t think a lot of people still … they know it goes on. They know that there’s data going on and when they look at social media and they realize, “How am I getting that ad right now? How do they know that I need to buy a hot tub?” Whatever it is you know kind of thing and all of a sudden now hot tub, you’ve never had hot tubs in your email and in your social media now all of a sudden it’s all over the place. We all know that there’s data and things going around that happen.

Jill DeWit:                            So ’cause your demographic is ready for a hot tub. You know kind of thing. And here they come. But I don’t think that everyone so used to using the data, understanding the data and I even see that, I mean, in my, with our marketing team the things that come in the email and the courses and the things that are out there it’s still I think relatively new and underutilized what we have.

Steven Butala:                   So my point is when you have this data unbelievable data source at your finger tips and it should just blow your mind.

Jill DeWit:                            That’s what happened to me.

Steven Butala:                   And you should, the wheels should start turning about how to utilize it and manipulate it in the form of a mailer and visualize people opening the stuff on their coffee table saying yeah. I’ve never used this piece of property. I’m never gonna use it.

Jill DeWit:                            Right.

Steven Butala:                   $800 sure I’ll sell it.

Jill DeWit:                            Exactly.

Steven Butala:                   Or however it manifests itself the data part of this is imperative. If it doesn’t mesmerize you, if it makes you angry. If it frustrates you, if you look at it like, so what there’s such a learning curve on this.

Jill DeWit:                            It’s a name and an address.

Steven Butala:                   I don’t know. It doesn’t interest me. This isn’t for you.

Jill DeWit:                            Yeah. You do need to understand-

Steven Butala:                   That’s why there’s so few people in this group that we have.

Jill DeWit:                            That’s true.

Steven Butala:                   We don’t have 1000s and 1000s of members like a lot of investment groups like this.

Jill DeWit:                            And we talk about that you know we use-

Steven Butala:                   We just have a few 100.

Jill DeWit:                            You know what because I just had an email the other day my team was just kind of doing it. We have a daily email recap and my team member said, “you know I talked to two people yesterday. One was a great fit. Great fit. They’re gonna join us by the end of the month. They’re getting something lined up.” The other person they said not a good fit and that’s it. And that’s part of why we’re here and why we’re doing this show I think we’re doing our best to accurately and honestly share with you and describe what we do so you know exactly what you’re getting into to be successful. ‘Cause if you’re not like, you just said and thank you for saying that, if data makes you run and you never opened Excel and never plan to open Excel this is not for you.

Steven Butala:                   That’s right.

Jill DeWit:                            I wish you best. I know there’s plenty of other things out there that you could do that are awesome entrepreneur or whatever you want to own your own business kind of ideas great. But man we’re data people.

Steven Butala:                   Or get yourself a partner like I’m the data person she’s new. I’m information she’s inspiration.

Jill DeWit:                            Still got to understand what we’re doing.

Steven Butala:                   Yeah.

Jill DeWit:                            It’s better to have-

Steven Butala:                   Or understand the value of it.

Jill DeWit:                            I still want you to really get it a little bit. So thank you.

Steven Butala:                   So there’s the data importance piece and the pricing piece.

Jill DeWit:                            Right.

Steven Butala:                   You have to understand and all that information’s in the program and so even if it’s not and you still are struggling with it or you want a second pair of eyes there’s all kinds of resources at Land Investors and there’s consulting that you can do with Jill and I.

Jill DeWit:                            With us.

Steven Butala:                   To kind of bless the thing.

Jill DeWit:                            Exactly.

Steven Butala:                   I still do consulting calls with people that have been in the group for five years.

Jill DeWit:                            I know.

Steven Butala:                   Still they call me and say, “You know I’m thinking about doing this mailer.” It’s for mobile homes or something, yeah ’cause their land biz is killing it or maybe they just call. Seriously, sometimes they just call to talk.

Jill DeWit:                            Yeah.

Steven Butala:                   So there’s that huge resource so that’s data.

Jill DeWit:                            Ready for number two? Being ready and we mean be ready for the calls. Be ready with your website. Be ready on your social media, your online presence. Do you want to expand on that?

Steven Butala:                   Well it’s 1500 or 2000 offers blind offers are gonna go out in the mail that you’ve toiled over to make sure that those people who are gonna receive it and the price tag that they’re gonna receive it for is gonna make them respond. So guess what they’re gonna respond.

Jill DeWit:                            Yep.

Steven Butala:                   I will tell you this and I see a lot of people make this mistake a lot. You have to answer your phone. And I don’t mean you.

Jill DeWit:                            Yep.

Steven Butala:                   I mean somebody.

Jill DeWit:                            Exactly.

Steven Butala:                   It can’t go to voicemail and it can’t be like a Google voice or any of that. Get yourself-

Jill DeWit:                            Or the great answering machine. Whatever.

Steven Butala:                   We have a 20% off thing at PATLive and 100’s of our members are with PATLive. When you call and say, “I’m with Land Academy.” They’re gonna say, “Oh yeah, yeah. We got it. We help Luke Smith over here. We help this. So how would you like to do it? This is how we do it for other people.” They’re gonna set you all up or if your die hard crazy person and you want to make sure this is gonna work answer your own phone.

Jill DeWit:                            It’s true.

Steven Butala:                   There’s a lot of people, retired people in our group that are very very successful. That have a lot of time on theirs hands more than people like us. They answer their own phone and they kill it.

Jill DeWit:                            Exactly.

Steven Butala:                   They kill it ’cause it’s a lot of retired people that sell property. They can identify with that.

Jill DeWit:                            Think how powerful that is when you call someone and you’re talking to the owner and they can’t make a decision right then and there it’s not and so if you can do it that’s my first choice. And when you’re starting out that’s my first choice. And then when you move on and you can hire someone then do that, but in the mean time PATLive like you said. Just having a live body at the other end of the phone makes such a difference you got to be ready for it.

Steven Butala:                   The other thing is the website.

Jill DeWit:                            Yeah.

Steven Butala:                   As soon as they get the letter they’re gonna look you up. They’re gonna look you up personally and they’re gonna look up the name of your company.

Jill DeWit:                            And your social media accounts and your LinkedIn.

Steven Butala:                   To see if you’re for real.

Jill DeWit:                            Mm-hmm (affirmative). You want to be a real person.

Steven Butala:                   So if you skip that step you don’t set up even if it’s just a single page website with you and your dog.

Jill DeWit:                            Right.

Steven Butala:                   If you skip that step it will dramatically reduce the performance of your mailer.

Jill DeWit:                            True.

Steven Butala:                   If you don’t answer your phone or have PATLive answer it dramatically reduce the percentage or the performance of that mailer.

Jill DeWit:                            Correct. Perfect.

Steven Butala:                   Those are the two big things I see people really, for whatever reason, just leave out.

Jill DeWit:                            And it’s not like it’s just it should be kind of … I hate to say common sense but you need to think about that. That’s so.

Steven Butala:                   That’s number two.

Jill DeWit:                            Number three act. Be ready, have money. Have a plan. Like you said a few minutes ago you said, “When you send out these offers …” I’m quoting you right now I hope that’s okay.

Steven Butala:                   Yeah sure.

Jill DeWit:                            Right before the show he said, “I see people sending out these offers and then not thinking far enough ahead that hey two weeks from now I’m gonna be buying some property.

Steven Butala:                   Three weeks.

Jill DeWit:                            Whatever it is. I need to be ready and have money in place and have a plan and be ready to … How I’m gonna market these properties. How I’m gonna pull the trigger and buy them. Am I gonna self close? Am I ready with all the steps? Do I know what to do or I’m gonna go through a title agency? Do I have a title agency lined up ready to do that? Do I know what due diligence I need to do when I’m making a decision on these properties? All of that.

Steven Butala:                   Really and that’s all important, but what I really meant by stage three is have the confidence and the … Have the confidence to make a decision. Here’s what I did in the beginning. ’cause you sent the mail out. Right? You’re staring at the data set and then the letters all went out somebody’s gonna call you or send you … And they’re gonna sign a thing at the price that you offered.

Jill DeWit:                            Right.

Steven Butala:                   So look at your data set ’cause three weeks is a long time or two weeks when you’re waiting for the response to come back. Pick like randomly pick like 20 or 30 or 40 lines in that data set, pull ’em up on ParcelFact, look at the price that you sent the offer out. In fact you should do this before you even send the mailer out.

Jill DeWit:                            Spot check.

Steven Butala:                   Test it for reason, spot check.

Jill DeWit:                            Right.

Steven Butala:                   And if it comes back would you buy it? And in that 20 unit data set let’s say some are not gonna have access, some are gonna make you fall out of your chair they’re so great. Hopefully that one comes back first. And some are gonna be, “I have some more questions is it in a flood plain?” So practice.

Jill DeWit:                            Yep.

Steven Butala:                   But what you don’t want to do is this and I don’t see a lot of people doing this anymore, in fact the show after tomorrow, tomorrow is an interview with Dallas.

Jill DeWit:                            Yeah.

Steven Butala:                   The show on I think it’s on Thursday it’s called confidence. So what I see people doing is saying, “Okay great it worked. It came back. Should I do this deal?”

Jill DeWit:                            Exactly. And we’re gonna talk a little bit about that I’m excited.

Steven Butala:                   Yeah. So just be ready for it.

Jill DeWit:                            Yep.

Steven Butala:                   You don’t want it to all work perfectly ’cause you spent some dough on the mailer and the whole thing and then no.

Jill DeWit:                            Have a plan.

Steven Butala:                   Yeah I’m not even talking about being prepared for due diligence that’s all common sense. I’m just saying have the juevos to act on a decision or to kill it.

Jill DeWit:                            There you go and don’t look back.

Steven Butala:                   Actually I’m gonna save that for Thursday ’cause I have a lot to say about that. Join us next time when Jill and I talk about how to buy a … What is? I’ll try to read it. Jill can you read it?

Jill DeWit:                            Sure. So well you’ve done it again. You’ve wasted another … I don’t know 19 or so minutes listening to the Land Academy show. Please join us next time where Steven and I interview a member, Dallas Walden, on how Land Academy improved her already existing land business. And we answer your questions posted on our online community LandInvestors.com. It is free. You got this part?

Steven Butala:                   You are not alone in your real estate ambition. This is what happens to Jill and I all the time.

Jill DeWit:                            I got you.

Steven Butala:                   Click. I’m just an idiot about-

Jill DeWit:                            Cover me. Cover me.

Steven Butala:                   Normal stuff.

Jill DeWit:                            I do that too.

Steven Butala:                   Like normal regular stuff I’m an idiot about it, but then we own these multi-million dollar companies and I’m very comfortable with that.

Jill DeWit:                            Hey, hey Steven.

Steven Butala:                   But I can’t read a teleprompter.

Jill DeWit:                            Hey Steven what temperature do you wash darks in? Do you know? Maybe not?

Steven Butala:                   Yeah cold.

Jill DeWit:                            Oh good. I was gonna laugh.

Steven Butala:                   I went to college.

Jill DeWit:                            I know a lot of college graduates that don’t know hot, warm and cold. Hey wherever you are watching or wherever you are listening please subscribe and rate us there. We are Steve and Jill.

Steven Butala:                   We are Steve and Jill. Information.

Jill DeWit:                            And inspiration.

Steven Butala:                   To buy undervalued property. What are you really good at Jill?

Jill DeWit:                            A lot of things.

 

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