Securing Funding for Good Deals (997)
Steven Butala: Steve and Jill here.
Jill DeWit: Hello.
Steven Butala: Welcome to the Land Academy show. Entertaining land investment talk. I’m Steven Jack Butala.
Jill DeWit: And I’m Jill DeWit, and we are broadcasting from sunny southern California.
Steven Butala: Today, Jill and I talk about securing funding for good deals.
Jill DeWit: I love talking about money.
Steven Butala: I love talking about good deals.
Jill DeWit: Good. We’re made for each other.
Steven Butala: Yeah.
Jill DeWit: I’ll get the money, you get the deals. You think I’m kidding? That’s how we roll.
Steven Butala: No good acquisition, regardless of size, character, content, should ever go to waste. Ever.
Jill DeWit: Or cost.
Steven Butala: The biggest reason I’ve seen them go to waste is, “I just don’t have the money to do this deal right now. Hey, seller, this is a great deal. I really want to do it. Can you wait until next month because I’ve got a lot of deals that I’m doing right now, and I don’t have an extra 22,000 bucks to buy a piece of land, but I really do want to buy it, so what do you say we talk in six weeks, and I’ll let you know if I can buy it then?” That will never work.
Jill DeWit: Yeah. Or, the bigger one is, “Hey, you said you own what also, and you want to own all of that? Gosh! Shoot. That totally fits my buying criteria but, God, that’s so expensive. I don’t know if I can come up with that much money. I’ll just buy this little one. Thanks for showing me. Thanks for sharing.”
Steven Butala: Before we get into the topic, let’s take a question posted by one of our members on the landinvestors.com online community. It’s free.
Jill DeWit: Collin asks, “Why does Realtor.com report data for 1,000 counties versus it’s 3,142-” It should be 3,144 for all the counties and parishes.
Steven Butala: Why does Realtor report at 1,000 counties than really in reality, there’s 3,144 counties in the country. And, here’s why.
Jill DeWit: I’m going to write down what I think is the answer and then I’m going to see if I’m right, okay?
Steven Butala: There’s two reasons, but the real reason is this. Houses are only really in about 1,000 counties that matter. There’s so much more housing data than there is land data because that’s what everybody cares about because they have to live there. So, they have chosen-
Steven Butala: Well, Nielsen ratings has chosen those 1,000 counties. That’s the second reason. They consider those counties to be the most important and they pour all the- Realtor.com is all about houses. We use it on our show constantly to look at MLS listings for land and stuff, but I’ll be honest. That’s where they make their dough, buying and selling houses and get in the way of our deals.
Jill DeWit: Can I tell you mine?
Steven Butala: Yeah.
Jill DeWit: 100%, I think it’s MLS related.
Steven Butala: Yeah.
Jill DeWit: Because I think back-
Steven Butala: You’re absolutely right.
Jill DeWit: I think it’s still that way. Not everywhere in the country is there a dedicated MLS for that specific area. It wasn’t really needed. I’m sure there’s some areas that it’s still, maybe now not so much, but back in the day, when MLS started, there was a lot of word-of-mouth going around. That’s how you did it. Then, they started the MLS and I don’t think it caught on everywhere.
Steven Butala: That’s great, Steve. How about you answer the question? What do I do? Where do I get the data? Why does Realtor.com only report on one-third of the counties that are actually out there? Well, we answered why. Now, what do you do?
Steven Butala: You need the data. If you go to Redfin, they report by zip code everywhere in the country. You can also pull county data. They’ve a much, much more extensive- And, this is all free by the way. It’s free on Realtor and it’s free on Redfin.
Jill DeWit: Great.
Steven Butala: Extensive data reporting on Redfin for whatever reason. Problem solved 80% of the way. If you’re serious about this, like we are in this group, and many, many members in our advanced group, this is their full-time career. They have staff of people buying and selling land, you need real data. So, you go to DataTree or RealQuest or TitlePro.
Jill DeWit: Okay.
Steven Butala: We’re licensed providers of all three of those. So, depending on which group you’re in and what level you are and all that, you can- So, there’s no lack of data. There’s no better data. NASA doesn’t have better data about who owns what and how many taxes they pay than we do. It is the end of the end of the end. I can’t express that enough.
Jill DeWit: Right. I was going to add too, between like Realtor, you want to look at them all and don’t make one of them your go-to and that’s it.
Steven Butala: That’s right
Jill DeWit: Because I’ve noticed this. I was just looking at a property the other day and I looked. It was one that we had sold. It had already been reported and updated on Zillow, but it was not at the sale, which was two or three weeks ago. It had not been updated on Realtor.com yet.
Jill DeWit: I thought, “Well, that was interesting.” Zillow has it. Realtor hasn’t. Then, Redfin was even further behind. Redfin only showed three transactions and the one when we bought it was in there, but going back further, was not in there. You really need to look at them all and use them all, for houses, primarily.
Steven Butala: You buy a piece of real estate, and you send it in for recording, it gets recorded that minute and you get a book and page number so you know that’s it. The deal’s done. In some cases, it takes as a long as a year for that data to go to the assessor. So, Zillow, Trulia, Redfin, Realtor.com, are all good sources of data. So is Black Knight, TitlePro and everything else.
Steven Butala: Some of them pull assessor data. Oh my God! It’s a year old. Some of them pull county recording data. Oh my God! It’s totally fresh, but unlooked at. Or, some of them pull from the MLS. More-and-more, what we’re seeing, and this is the case with DataTree, is they’re pulling it from lots of different sources. It’s just an API.
Steven Butala: So, you can just as easily pull from one API or seven APIs. It’s seven times as expensive, but you’re going to get darn good data. This is what separates Jill and I and this whole group in general. Not just us, but some of our members. Good data is imperative to sending out mailers that people sign and send back. We could go buy a list from China that’s 14 years old and just-
Jill DeWit: For a dollar.
Steven Butala: John and Sally Smith. We don’t know if they have a mortgage on the property. We don’t know anything about it.
Jill DeWit: We don’t know if they still own it. They may not still own it.
Steven Butala: Like everything, there’s the right way to do it. The right professional. At the end, take it seriously way and then there’s the, “Let’s just see if it works way.” That’s what I call it. Let’s go on a first date and see how it goes.
Jill DeWit: Oh, that’s great. Today’s topic is secure funding for good deals. This is the meat of the show.
Steven Butala: Oh my God. You stepped in like bam!
Jill DeWit: Yes, I did. New subject. Exactly. All right. I love this topic, and I asked to talk about this topic because it still comes up especially now that we have members that are progressing in their careers. They nailed and buying them for $1,000, $5,000, even $15,000 and $20,000, but that next little hurdle of $50,000 is a little bit daunting and sometimes they look at their own expenses and feel like that needs to be the level what they can afford.
Jill DeWit: I want you to know, I don’t want you to stop there because that’s all the money you have. You’ve done these deals. You know how it goes. You’re in this market. You’re seeing these buyers. You know that there’s people out there that you’re watching. I mean, you’re watching your peers and they’re buying things for $20,000 or $30,000 or $40,000 or $50,000 and selling them for twice that.
Jill DeWit: You’re like, “Aww, shucks. I put all my eggs in one basket.” This is a big deal. You know what? If you don’t have the funds, totally fine. You can secure the funds and no the matter, the size, or the dollar amount. That is my point.
Steven Butala: Here’s the truth of it, and Jill’s right. There are people on landinvestors.com and now on houseacademy.com, the forum, who are doing back alley deals. I couldn’t be more proud of that. That is the very nucleus and spirit of being an entrepreneur. Hey, I just got a deal in. A guy doesn’t want to sign my offer for $8,000, but he really wants to- He’ll sell it to me for $14,000. I know it’s worth $50,000. I don’t have that money, but I don’t want to lose the deal.
Steven Butala: Hey, everybody. I’m brand new to the group. I have this deal. Does anybody have the dough because I’m sure it’s going to sell very quickly on the MLS. It’s that kind of quality of a deal. Those kinds of things go on in our group, all of our groups, all the time. That’s really what this title is all about.
Jill DeWit: Exactly.
Steven Butala: You should never, never pass on a deal.
Jill DeWit: It’s always out there. People will sometimes even think, “Oh, where am I going to come up with the money.” If it’s that good of a deal, it’s there. There will be somebody.
Steven Butala: We have a place, personally. One of the alternatives that you could use is landtank.com, which is a website that we set up and we’re soon to launch House Tank here, which is like Shark Tank for Land. We also have a place on landinvestors.com where you can secure funding-
Jill DeWit: Right through us.
Steven Butala: Through us on landinvestors.com. It’s quick on deal funding or you can do the back alley way, which I’m not-
Jill DeWit: Which is fine.
Steven Butala: There’s got to be a better description than back alley.
Jill DeWit: It’s the [crosstalk 00:09:50].
Steven Butala: Yeah. There’s lots of places. All of them, and with the same result, you’re buying property now and making 50% usually margin on money you don’t have to come up with yourself.
Jill DeWit: Right. Usually, what’s great about it too, is you’ve already put in- The person who’s doing the funding, they’re excited to hear from you.
Steven Butala: Yeah.
Jill DeWit: They have money burning a hole in their pocket.
Steven Butala: You’re new blood.
Jill DeWit: By the way, you’ve already done the hard work. You already sent out the mail, secured the offer. You got the seller. You got it all queued up, ready to go. You’ve got a signed purchase agreement. Just need that last little piece and we’re like, “Oh, gosh. I don’t have to do any of that work. I just throw money over here and by the way, you know who’s going to buy it, how it’s going to sell. You’ve already got that figured out. I’m just going to cash out at the end. Done.”
Steven Butala: There are deals, believe it or not, that Jill and I can’t afford, that we do the same thing. We set these systems up for us. Now, we’re just sharing it with everybody.
Jill DeWit: Very true.
Steven Butala: There are properties that we review in southern California specifically that are well over $1,000,000-
Jill DeWit: Huge.
Steven Butala: Acquisitions, but they’re worth $4,000,000.
Jill DeWit: I mean, I’ve got the cash around.
Steven Butala: Some people in our group that loves deal like that. They only have to do two or three a year to make $2,000,000, $3,000,000, $4,000,000.
Jill DeWit: Exactly.
Steven Butala: Whatever the deal is that you come up with, regardless of the product type, there’s somebody in our group that’s willing to look at it, including us.
Jill DeWit: Exactly. Thank you.
Steven Butala: Hey, we know your time’s valuable. Thanks for spending some of it today with us.
Jill DeWit: Join us next time for an episode called The Land That Sells The Fastest. We hope to hear all about that and we’re going to answer your questions plus on our online community found on landinvestors.com. It is free.
Steven Butala: You are not alone in your real estate ambition. Real quickly, Jill. What land sells the fastest land type? Rural vacant land, infill lots, huge movie star ranches, property in the middle of nowhere, ultra, ultra cheap property that does have access. Which one?
Jill DeWit: Cheap property with access.
Steven Butala: Wow! You nailed it. Cheap property with access.
Jill DeWit: Cheap property with access.
Steven Butala: You’re exactly right.
Jill DeWit: Thank you. By the way, I want to make sure everybody knows that our mail company, which is called Offers to Owners, is going to be offering a special deal coming soon. I don’t know what it is yet, but I’ve been told that. Keep your eye on your email because we’re going to be sending out some great thing. Keep an eye out and also make sure you download our House Academy ebook, if that’s something you’re thinking about.
Jill DeWit: It’s there. It’s available. It’s free. Go to houseacademy.com. Download the ebook. It’s a good read and it’s free.
Steven Butala: This is like announcements in high school. Like, this company’s gotten so big that the hand is [inaudible 00:12:34] to say.
Jill DeWit: This is true. It’s kind of nice. It’s like on my desk.
Steven Butala: But, we still can do back alley deals.
Jill DeWit: Oh, yeah.
Steven Butala: As long as I’m in charge, there will always be back alley deals going on.
Jill DeWit: Heck, yeah. Hey, wherever you’re watching, or wherever you are listening, please subscribe and rate us there.
Steve & Jill: We are Steve and Jill.
Steven Butala: Information.
Jill DeWit: And inspiration.
Steven Butala: To buy undervalued property. Keep the spirit, man.
If you have any questions or comments, please feel free to email me directly at steven@BuWit.com.
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