Confidence You Need to Send Mail (LA 962)

Confidence You Need to Send Mail (LA 962)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Happy 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 confidence you need to send mail. This is such an important topic.

Jill DeWit:                            It is.

Steven Butala:                   I have a lot of old school stories. There are just people that … the gist of it’s this. There are people that are confident. It’s not just confidence to send the mail, that’s one thing. Anybody can kind of get over that or learn it or whatever, but it’s the confidence to make an acquisition decision.

Jill DeWit:                            Right.

Steven Butala:                   And not everybody is set up for this on the planet.

Jill DeWit:                            Some people have no confidence no matter what they do. That’s a tough one, I feel bad for them. So maybe we can talk about ways that you can build your confidence if you need to. Because I think that’s super important. Then there’s other people like we all know them, I think you and I are two of them, that we have confidence no matter what it is. I’ll be like, “All right, bring it.” We’ve done some different ventures, there’s other sub companies going on in our world that we don’t think twice about it. We may not be fully versed on it, but we know how to run companies, we know how to start companies. And so we just kind of dive in.

Jill DeWit:                            So I think we’re the other spectrum. We have a pretty healthy dose of confidence you and I.

Steven Butala:                   I’ve known you for a long time, and your confidence level amazes me, even to this day. On a daily basis, about little things. And I’m not talking about beating your chest, narcissistic wack job. I’m not talking about that. I’m talking about making little decisions like, “That’s not the logo we’re gonna use for House Academy.” Right, “I think it should actually look like this, this, this, and this.” And have it be a good decision that sticks for a long time. Or how to answer somebody’s concern about a mailer that didn’t go the way that it’s supposed to go on Land Investors, and here’s why.

Steven Butala:                   I’m not talking about like my car is better than yours.

Jill DeWit:                            Exactly.

Jill DeWit:                            Or, “Does my hair look great?”

Steven Butala:                   There’s so much false confidence.

Steven Butala:                   Yeah, especially women are subject to so much more stuff, professional women are than men. And you can just see it a mile away when it’s see through and it’s a mess, you know?

Jill DeWit:                            Thank you.

Steven Butala:                   Before we get into it, let’s put Jill’s mic in the right place first.

Jill DeWit:                            I thought it was.

Jill DeWit:                            You don’t like it? I’m good, thank you.

Steven Butala:                   It’s like this.

Jill DeWit:                            Oh, I’m good.

Steven Butala:                   And let’s take a question posted by one of our members. On the LandInvestors.com online community, it’s free.

Jill DeWit:                            It’s like you’re moving in front of my face.

Steven Butala:                   Did I mess up your mojo?

Jill DeWit:                            I thought you were moving in front of my face. This is what I thought you were doing. “Let’s fix Jill’s mic.”

Steven Butala:                   You know that’s probably what it should be.

Jill DeWit:                            I should be like this.

Steven Butala:                   Jill and I are in a constant state of, “What equipment should we use? What light should we use? Does this work? Does this work” this is show number 960 something and we still haven’t worked out like the studio and how to do this.

Jill DeWit:                            But here’s the thing, we have enough confidence we’re gonna power through anyway, even though it’s all wrong and we look horrible and our mics are goofy. We have the confidence to continue on with the show.

Steven Butala:                   Here’s what I tell myself about this show. You might as well know, it’s show number 960.

Jill DeWit:                            Right.

Jill DeWit:                            Is this a secret now?

Steven Butala:                   No, no.

Jill DeWit:                            962, thank you very much.

Steven Butala:                   The stuff that we talk about, because it’s so unique, I don’t think there’s a lot of shows that talk about this stuff and this detail and this level of sincerity.

Jill DeWit:                            Yup.

Steven Butala:                   Grossly outweighs how we look, how we present ourselves, whether or not you can actually hear the show.

Jill DeWit:                            Whether or not you’ve showered.

Steven Butala:                   So hopefully the content just outweighs all the other stuff.

Jill DeWit:                            Ignore us, but listen to what we say.

Steven Butala:                   Yeah.

Steven Butala:                   Ignore how we look, ignore how we sound, ignore the production value of this.

Jill DeWit:                            Ignore our bloodshot eyes.

Steven Butala:                   Just write this stuff down, but not all of it, maybe like 60% of it.

Jill DeWit:                            That’s true. Only the good parts. Up until this moment right now, you can ignore that whole bit.

Steven Butala:                   That’s right.

Jill DeWit:                            Yeah.

Steven Butala:                   In fact, you should know by now if you’re a regular listener, what to fast forward through.

Jill DeWit:                            That’s right.

Jill DeWit:                            Now you can start listening. Ready? Ready, go.

Steven Butala:                   Go ahead and read it, Jill.

Jill DeWit:                            All right.

Jill DeWit:                            Did you say it’s free, the online free-

Steven Butala:                   It’s free.

Jill DeWit:                            All right. I didn’t know if we did that part.

Jill DeWit:                            We’re answering a question from our online community, LandInvestors.com. Sally asked, “When picking a county, is it best to stick to an area I’m familiar with? Or think outside the box?”

Steven Butala:                   That’s an excellent question.

Jill DeWit:                            This is one of your top questions.

Steven Butala:                   This is just an excellent, excellent question.

Steven Butala:                   So you’re staying at a map of the United States, and you live in Indiana. And you’ve made the intelligent decision, because you’re sort of a data person, to join our group and you’ve watched all the material that we’ve put together. And you’re sitting in Indiana and you’re like, “All right, I’m ready to pick a county. I’m really familiar with the five surrounding counties from where I’m sitting, literally. And I have the time and the resources and the intelligence to do this. Should I send a mailer to Utah? Because I did all the research and there’s so much cheap property in Utah that’s for sale. Or should I stick to this little Indiana thing where I’ve lived my whole life and I know what an acre property is worth over here in this county. I know why it’s different over here in this county in Indiana.”

Steven Butala:                   Based on my little anecdote there, I don’t think that really was an anecdote, but based on my comments, what do you think you should do, Jill?

Jill DeWit:                            Oh, for when you’re first brand new?

Steven Butala:                   Yup.

Jill DeWit:                            I would pick with the area that you know.

Steven Butala:                   That’s what I think.

Jill DeWit:                            Don’t second guess yourself. Even though you know people in your community that are killing it in areas you’ve never heard of, doesn’t mean you need to jump on that bandwagon. I want you to learn this, I want you to get comfortable. I want you to build up your confidence.

Steven Butala:                   Don’t buy property just ’cause it’s cheap. We all know there’s like four or five states out west and some east where property is really, really cheap. Don’t look at your bank balance and say, “I’ve got $6,000 to spend for real estate, I can probably buy 40 properties in Arizona.”

Jill DeWit:                            Right.

Steven Butala:                   Trust me, one property in Indiana is way better than 40 properties in Arizona.

Jill DeWit:                            Right.

Steven Butala:                   Should you do both if you’re really into this? Yeah, that’s what we do all the time. We have a cheap property operation, we have an info lot operation, we have a house operation, a mobile home operation, and all of that. But the time Jill and I are old and gray, we will have released all the academies, the House Academy, the Land Academy, and it’s all just follows us around in what we’re purchasing. We’re buying a bunch of mobile homes right now in anticipation for Mobile Academy way next year.

Steven Butala:                   So Sally’s question to me is the same, “Should I buy in an area that I’m familiar with or think out of the box?” I think that’s one in the same thing.

Jill DeWit:                            Right.

Steven Butala:                   I’ll tell you what, you’re gonna have no competition in Indiana, at all. And you’re gonna be maybe the best person in this whole group, or any group for that matter, who’s qualified to know about the area.

Jill DeWit:                            Right.

Steven Butala:                   That said, maybe you get into these three or four counties in Indiana and you find out there’s no real estate. There’s some places, like Manhattan. Manhattan, New YorK, there’s just no real estate to buy. And if you do, it’s not priced the way we do it. A whole different thing.

Jill DeWit:                            Right.

Steven Butala:                   So should you think out of the box? Heck yes, but it also has to pass all the tests.

Steven Butala:                   I will tell you right now, we have a couple members in Indiana and those surrounding states that are absolutely killing it, and they live there.

Jill DeWit:                            Yup.

Steven Butala:                   We also have one member in particular who is knocking the bottom out of Tennessee and he lives in California. So, think out of the box and apply common sense.

Jill DeWit:                            Okay.

Jill DeWit:                            But you said do it in the area and think outside the box. I say start with the area that you know. To build up your confidence, understand the process, get the ball rolling. And you’re gonna find some properties in the area that you know very well, you’re gonna keep doing it. But then as you grow and you want to expand your products and things like that, what you have available to sell, different properties, and your website. Then start fining other areas and think outside the box. Is that fair to say?

Steven Butala:                   Yes.

Jill DeWit:                            Okay. Thank you.

Jill DeWit:                            That’s where I went with that.

Steven Butala:                   Today’s topic, confidence you need to send mail. This is the meat of the show.

Jill DeWit:                            Okay.

Jill DeWit:                            Can I go first here?

Steven Butala:                   Absolutely.

Jill DeWit:                            All right.

Jill DeWit:                            One of the things that I’ve heard the other members do, this isn’t my idea so I want to give some credit here to somebody who suggested this. To build your confidence in this whole process is really spend some time getting educated. Whether it’s from us or somebody else, spend a lot of time. Don’t just dive in. And what our members do, what this person said, “Hey, when you can first get Land Academy and get all the material, watch it all at once. Just all the way through. Just kind of to absorb it all and understand what we’re talking about and just go all the way through everything. And I mean, there’s a lot there, there’s a couple programs. Then go back and slow it down and in detail. Then re-watch them, and then you’re gonna start learning the steps and taking notes and pausing and writing and thinking and looking up.”

Jill DeWit:                            For me, first of all, that is a great way to build confidence. What is your initial …

Steven Butala:                   Do you think confidence can be taught?

Jill DeWit:                            You can’t change nature, obviously. But I do believe that you can help people build confidence. For example, this one, remember? I don’t know if it was on a Ted Talk or something, but we watched somebody do a video about before you go into a meeting, striking that pose, standing there like a superhero. Remember that?

Steven Butala:                   Yeah.

Jill DeWit:                            And like, gosh, taking some deep breaths and standing up tall. And a couple things that you can do, physical things that give you like a, “I got this.” You think I’m kidding?

Steven Butala:                   No.

Jill DeWit:                            Okay. I believe this stuff.

Steven Butala:                   This is right up your alley.

Jill DeWit:                            Okay, good.

Jill DeWit:                            So there’s little things that you can do to have confidence. Here’s another thing, before the phone rings … so you want to have confidence, you want to sound like a professional investor, it’s the very first call that comes in. How would I do that? A, I would practice some phone calls, do someone role pays. Even just with myself, talk about it. Have your friend pretend they’re a perspective seller. And doing a couple things like that, you will build confidence. And then have a good script, you’re gonna go, “Oh, I’m gonna change my script, I forgot to ask that. I’m gonna have this.” Then you’re gonna sound like you know what you’re doing.

Jill DeWit:                            You’re gonna have some confidence. Even if you change everything you say, just going into it, you know what you need to know. You have my checklist, hopefully, with all the things you should ask. That’s gonna help you with your confidence. What do you think the answer is?

Steven Butala:                   I mean, it just struck me now. I have a bunch of questions for you, and I don’t want, in any way, this to be construed as like putting you on the spot. But I’m really asking the listener.

Jill DeWit:                            You know, I’m very confident about this topic. So, Steven, feel free to ask me anything you want. I will answer.

Steven Butala:                   I mean, do you think that confidence has something to do with, “Fake it ’til you make it?” Or do you think it’s something that you need to-

Jill DeWit:                            Yeah.

Steven Butala:                   Yes?

Jill DeWit:                            I don’t like that, I don’t like that term, but I believe in-

Steven Butala:                   You think it’s something that you have to practice? And teach yourself?

Jill DeWit:                            No.

Steven Butala:                   I mean, do you have to look in the mirror and kind of practice?

Jill DeWit:                            Not for everyone. Some people have it, some people don’t. The people that don’t need to look at themselves in the mirror and practice. That’s what I believe.

Steven Butala:                   Since the early 90s, I’ve been involved in the real estate industry. And specifically in acquisitions. Starting with launching care facilities like nursing homes and assisted living facilities. This is before the internet. And I would send out faxed offers, just like we do now in the mail. Something would come back signed saying, “Heck yeah, I want to sell my nursing home facility in Nebraska.” Let’s say, to this company that you represent that is publicly traded on Wall Street and has a $200 million acquisition fund all set up. “Heck yes, I wanna do that.”

Steven Butala:                   And your price, we’ll talk about it, but $4 million bucks sounds okay. Sounds like it’s in the ball park. Tell me what to do next. And so what I would do is hook up the acquisition person from this Wall street company with the seller who is in rural Nebraska. All right? Very different worlds these two people are from. More than 50% of the time, the acquisition person had no confidence to make a decision about whether or not that facility, A, met the acquisition criteria that the senior people in the company set up. And B, was just so scared, didn’t have any personal confidence to actually take responsibility for the fact that, “Yup, we’re gonna buy this building and it’s operation for $4 million dollars.” The financial statements are, I believe, correct and accurate to what’s happening. Or if they’re not, I’m gonna ask ten more questions and hire some people to get interesting here and find out the real situation.

Steven Butala:                   I can get into the nitty gritty details.

Jill DeWit:                            How did they even get in that position, by the way?

Steven Butala:                   Because they went to the right school, got the right grade point average and conquered on the interview. Or they’re daddy got their job, got them the job.

Jill DeWit:                            Got it. Shucks.

Steven Butala:                   You can’t teach confidence.

Jill DeWit:                            And you’re stuck in the middle, in this situation, you were stuck in the middle going, “I know this is a good deal,” and you want to strangle the person and the guy can’t pull the trigger.

Steven Butala:                   That’s why we ended-

Jill DeWit:                            And you sourced a great deal.

Steven Butala:                   That’s why we’re here, because it was one of the most … exactly … one of the most complicated transactions to buying land. Which is one of the most simple transactions.

Jill DeWit:                            Can you imagine? Wow.

Steven Butala:                   So confidence, and I could tell you, I was very young. I can tell you if that facility is gonna work or not.

Jill DeWit:                            Right.

Steven Butala:                   And I didn’t learn that. I never sat in front of the mirror and said, “You will make it. You’re a very smart, intelligent young man.”

Jill DeWit:                            And by golly, I like you.

Steven Butala:                   “And you’re not that bad looking and probably weigh too much. But we’ll figure that out later.”

Jill DeWit:                            “You got great hair, you got great teeth. Eyes a little red.”

Steven Butala:                   All kidding aside, there’s no piece of property, no piece of property that could come across my field of vision, especially now with the tools that we have, like ParcelFact and everything else, where I can’t make a decision. And you’re like this too. Like Jill took over the whole funding operation for me. I was only involved in it for a month. And she’s like, “You’re too slow.” And she hasn’t, knock on wood, she hasn’t made a mistake yet.

Jill DeWit:                            Thank you.

Steven Butala:                   There’s always unforeseen stuff. So it’s not the confidence to make an acquisition decision, you either have that or you don’t. Part of being confident is if something goes wrong, not to freak out and just deal with it. Deal with the stuff as it comes.

Jill DeWit:                            Don’t drop it and run.

Steven Butala:                   Talk your way into it, talk your way out of it. Yeah.

Jill DeWit:                            Yeah.

Steven Butala:                   Confidence is a whole book worthy topic.

Jill DeWit:                            Yup.

Steven Butala:                   And is really funny, because we are advanced members. We have, what, 20 or a handful or advanced members. We do a call every Thursday, I guess, Thursday morning. Boy, there’s no lack of confidence in that group.

Jill DeWit:                            Right.

Steven Butala:                   And we always throw a deal up on the screen and we say, “Would you do this deal?” And you know what? Half of us say, “Yeah, we should do it.” And the other half are like, “I don’t think I’d do that deal.” And none of us are right or wrong.

Jill DeWit:                            No one is right or wrong. But we’re confident about our decisions.

Jill DeWit:                            You know what? You just brought up a good point. That’s probably one of the main things that differentiates the level, when you get to that level and you have some confidence and you know what you’re doing, why you’re buying it or why you’re not buying it and you’re making good decisions, not second guessing. That’s how you get to the advanced level, that’s how you start moving on and growing bigger and doing more deals. That’s good, that’s a great way to describe the two groups.

Steven Butala:                   I have a tremendous lack of confidence in my ability to spell words in the English language. And I don’t care so much about that that I just don’t care. I don’t do anything about it. If I did, I would sit down, probably ice out an hour before sleeping and go through a dictionary. That would probably help me build confidence on whether or not I’m spelling words correctly.

Jill DeWit:                            I have a horrible lack of confidence in my lower body.

Steven Butala:                   What the? I can’t wait to see this.

Jill DeWit:                            Actually, not my lower body. Well, in my strength, how about that? My water skiing days are over, I won’t even try. And my snow skiing days are over. I’m done.

Steven Butala:                   I can personally vouch for that.

Jill DeWit:                            I will happily go there, I will be making hot chocolate and I’ll look good in my cute outfit in the lot. But I am not getting on skis.

Steven Butala:                   I can vouch for that too.

Jill DeWit:                            I could work out harder, build up my strength, get the right coach, and get out there and ski like a maniac. I still could do it, but I choose not to. I don’t want to do it.

Steven Butala:                   I have no confidence in my ability to play the guitar, none.

Jill DeWit:                            This is a good game.

Steven Butala:                   But if I had six months, I had nothing else to do. I’ll tell you what, I’d be pounding some stuff out.

Jill DeWit:                            I have no confidence in singing and no voice coach will solve that.

Steven Butala:                   I can vouch for that also.

Jill DeWit:                            I can spend six years, not six months, it will not change. I will not do karaoke.

Steven Butala:                   This is a cute little way for, I guess, maybe not so cute, but I hope our point is clear.

Jill DeWit:                            Right.

Steven Butala:                   There’s confidence that you can develop, there’s confidence that you cannot develop.

Jill DeWit:                            Right.

Steven Butala:                   When I got hired at KPMG, huge accounting firm, whatever, number two, number three. Maybe in the top five for sure, top three, I was hired in as an acquisition specialist for these long term care facilities. And so I got lopped into this group, I was the only acquisition person there. And the partner above me, I reported directly to him. And it was his little group and he owned it, literally. So we were doing all kinds of stuff, there was a text specialist, there was a consulting specialist for like health care reimbursement, Medicare and Medicaid, all that stuff. Doesn’t matter, within this scope, doesn’t matter. Those people just looked at me like I was from the moon. “What do you mean you’re gonna spend $4 million dollars on a facility?” I remember this in one meeting, it was right when I started.

Steven Butala:                   And this reimbursement specialist said, “How do you know?” She kept saying that. “How do you know you should buy this facility?” These are incredibly brilliant people that all went on. I still track some of their careers. Went on to be partners of their own and do their whole thing and going to hospitals and telling them they should be reimbursing stuff this way and not this way. Like crazy intelligent. They lacked that acquisition confidence component that Jill and I, for real estate anyway, seem to have been born with.

Jill DeWit:                            Right.

Steven Butala:                   I know we’re going over on time, but you really have to ask yourself, I think it was yesterday we said, or two days ago, take 20 or 30 properties in a data set that you have, that you already sent mail out or had not sent mail out on, and assume you got a purchase agreement signed back with the offer amount that you sent. And go through the motions on ParcelFact right wherever else and ask yourself, “Would you buy it?” And if you’re sitting there saying, hopefully you’re saying, “Oh, my gosh, this property, I need to run to the bank and buy this thing.”

Jill DeWit:                            “I hope this guy sends it back.”

Steven Butala:                   This property, I’m not sure about access, but I’ll check it and I might as well check the flood plane while I’m there because it looks a little strange.

Jill DeWit:                            Right.

Steven Butala:                   Number three, this property is between two houses but the lot looks a little smaller than the regular house lots. I’ll check that out, I’ll call planning and zoning.

Jill DeWit:                            Right.

Steven Butala:                   And all those properties check the price that you sent out, does it make sense? Are you getting a smoking deal? Is it on the edge? These are real things that happen. Test them all for reason.

Jill DeWit:                            Yup.

Steven Butala:                   If you do this exercise and you’re like, “How do I know? How do I know this is a good deal?” You really need to ask yourself some questions about whether or not this is a career for you. How’s that to end on a negative note?

Jill DeWit:                            Wow.

Jill DeWit:                            Well, you’ve done it again. You spent another valuable 20 minutes of your life that you can never get back, listening to the Land Academy Show. Join us next time when Steve and I talk about how to buy our Finance Friday with Steven, and myself, and Justin.

Steven Butala:                   And the writer learns how to write.

Jill DeWit:                            And we answer your questions posted on our online community.

Steven Butala:                   I’m the writer.

Jill DeWit:                            landInvestors.com. It is free.

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

Steven Butala:                   I am the writer here.

Jill DeWit:                            It’s okay.

Jill DeWit:                            You’re all good.

Steven Butala:                   You’re covered though.

Jill DeWit:                            Thank you very much.

Jill DeWit:                            Wherever you are watching, wherever you are listening, please subscribe and rate us there.

Steven Butala:                   We are Steve and Jill.

Steven Butala:                   Information.

Jill DeWit:                            And inspiration.

Steven Butala:                   To buy under valued property.

 

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