5 Best Places to Sell Land Online (LA 1009)
5 Best Places to Sell Land Online (LA 1009)
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 five best places to sell land online.
Jill DeWit: I wonder how different our lists are going to be.
Steven Butala: I wonder, too. I do know this for sure…
Jill DeWit: What?
Steven Butala: They’ve changed over the years, the places to sell land, and they’ll change over the next few years.
Jill DeWit: You know, just like everything.
Steven Butala: Yeah.
Jill DeWit: I swear, that’s like the number one thing that’s on my mind all the time, is that whatever it is, it’s going to change tomorrow. And if you can’t roll with the punches… I don’t care what business you’re in… you’re not going to make it.
Steven Butala: You know, I ask myself, honestly ask myself that all the time. Like, am I changing enough?
Jill DeWit: I am. My hair’s darker.
Steven Butala: Am I changing enough? Am I eating too much?
Jill DeWit: Am I changing enough? Am I-
Steven Butala: Am I exercising enough?
Jill DeWit: Well, you know what? Am I wearing the same shirt? Am I changing enough? That’s good.
Steven Butala: Am I drinking too much?
Jill DeWit: Well, you have 10 of these, so it’s okay.
Steven Butala: It’s an endless list of, “I wonder if this is going to be okay?”
Jill DeWit: I think you’re doing-
Steven Butala: Are we doing enough deals? Do you do this stuff?
Jill DeWit: No. I don’t.
Steven Butala: You don’t?
Jill DeWit: No. I do not have this conversation with myself.
Steven Butala: I do it all the time.
Jill DeWit: But that’s a good thing.
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, and I’ll tell you this: It’s multi… There’s a lot of questions in there, and he numbers them for us.
Jill DeWit: All right. Be ready?
Steven Butala: We should answer them as we go.
Jill DeWit: Okay. All right. Steven K. asks, “I’m gearing up to mail to lots with mobile homes, but I need to nail down how to price, as information I’ve heard on podcasts and Thursday online meetings has left me with some holes in knowledge of that. So, number one, if the home is newer, do you add value to the lot? I know in 1976, an alder cannot be financed through HUD, so generally they are without value. But if newer, I would think most owners expect a value to be given that includes the home.”
Steven Butala: Like with every single mailer, this is no exception. You can’t please everybody. Like throwing a hook in the water, you can’t expect the lure that you’re going to use is going to work on every single type of fish.
Jill DeWit: Right.
Steven Butala: So, while you’re fishing for bass, with the lure or whatever bait you’re using, there’s a lot of other fish down there that are just going to swim right by. Here’s how I mail mobile homes, and I say it right in the mailer: “We would like to buy your property, your mobile home lot. The price is for the real estate, the land.” Our data set doesn’t include how great or not great the actual mobile home itself is, or the age. Which is true. We don’t have mobile home data. It’s personal property. It’s not real property. So, I simply explain to them in one or two sentences that this is an offer to buy the land. It’s shocking, the response that you’re going to get. Go ahead, Jill.
Jill DeWit: Number two, “Do you price an infill lot like 10 to 12.5% of what builders are selling new homes for, even though utilities are typically already in?”
Steven Butala: If it’s an infill lot for mobile homes, and I think that’s what you’re asking…
Jill DeWit: Right.
Steven Butala: That’s about right.
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: For example, in Arizona, the mobile home properties that we buy are between $5,000 and $10,000, which I think is a generous offer. We probably could get away with paying less.
Jill DeWit: Right.
Steven Butala: But it’s based on the new replacement cost sale price that we know we can get.
Jill DeWit: Thank you. Three, “Does the lot size, and whether they’re located in a park where the lots are not leased have a big impact?”
Steven Butala: Yeah, a massive impact, in fact. I’ve never sent a mailer, and not sure I will anytime soon, for owned A separate APN properties in a mobile home park. There’s a chance we could do that, but that’s not how we do it. There’s enough to go around where we do this, to send mailers on like neighborhoods of mobile homes.
Jill DeWit: Four, “Does title elimination, and how that may impact assessed value, have any bearing in the offers and negotiations?”
Steven Butala: I don’t know what that means. Do you? Title elimination?
Jill DeWit: Elimination, and how they may impact the assessed value, if titles… [crosstalk 00:04:22]-
Steven Butala: Oh, you mean the title of the mobile home itself?
Jill DeWit: Maybe. I’m not sure.
Steven Butala: I’m not sure what that means. It means we’re both failing here.
Jill DeWit: Exactly. This would be a great… If we’re not getting number four, we get all the other ones… We’re not getting number four. Bring it up on Thursday, and we’ll address it.
Steven Butala: Yeah, that’s perfect.
Jill DeWit: Five, “Since House Academy is also using a simple, one-page purchase agreement… ” The two-page offer thing that goes out campaign, but it’s a one-page offer purchase agreement, “… contract, I would also guess, is it the same thing being used for mobiles?”
Steven Butala: It’s a two-page… Like Jill just alluded to-
Jill DeWit: Yeah.
Steven Butala: It’s a two-page mailer. The first page is kind of a cover letter that says, bang. It says, “Hey, Mrs. Jones. We would like to buy property for $8,000,” or whatever, “and we got your name as a matter of public record.”
Jill DeWit: “Here’s who we are.”
Steven Butala: Yeah, “Here’s who we are.” And then the second page is an actual purchase agreement. So, for House Academy, Land Academy, mobiles, and even apartments, it’s all the same. The content of that cover letter is different. Like I said, you’ve got to tailor some stuff for mobile homes.
Jill DeWit: Yup. I was going to say too, I’ve noticed some one-pagers coming in, and I’m not feeling it. And how I noticed it is I’m getting them in the mail, for people to buy our properties. And it just doesn’t have the same effect. It’s just a purchase agreement. And I swear, it takes some of the professionalism and some of the explanation out of it, by not doing that first, nice introductory, with your address on it, maybe a letterhead, and it’s signed. Like, “Hi. Here’s who I am. Here’s how to find me. Here’s my backstory. You know, how long I’ve been in the industry.” Something like that which goes, “Oh, okay. All right. This is who you are, sending me a letter.” Now I go to page two, and, “Oh. Oh, here’s your offer for me, with a purchase agreement.” That just makes so much sense. I just want to bring that up.
Steven Butala: When you start out in this business, you have to be very money-conscious. In fact, if you’re in the 25th year of this business, like we are, you have to be money-conscious.
Jill DeWit: Still.
Steven Butala: But I will tell you right now, there’s a lot of places to save money. Mail’s not one of them.
Jill DeWit: Right.
Steven Butala: It’s so compelling to sit here and think about sending out postcards, because they’re so much cheaper. It doesn’t work.
Jill DeWit: Right.
Steven Butala: It does not work the way sending a mailer out. We have designed 020 so that that two-page mailer, that we have a tremendous amount of consistent, predictable success with, is the same price as a one-page mailer. So, you’re not saving any money.
Jill DeWit: Yeah.
Steven Butala: So why would you send out a one-page mailer? Why would you get creative with this, in the beginning of your career?
Jill DeWit: And when, by the way, I want to say-
Steven Butala: When we know this is what works?
Jill DeWit: … when it’s down to like around 55 cents, it’s a no-brainer.
Steven Butala: Yeah.
Jill DeWit: You can’t lick a stamp for that.
Steven Butala: No. No. It’s not going to be cheaper.
Jill DeWit: And pay for the paper? And pay for the ink? And pay for the envelope? No way.
Steven Butala: You know, the reason we can do this so cheap is because we have a bulk mail license, and a tremendous amount of staff, and all kinds of money coming in for doing real estate deals. So, take advantage of it. These one-page mailers are either because people are lazy, or they’re using a printer, or they’re learning from somewhere else, and it’s trying to save money.
Jill DeWit: Yeah. Trying to save a nickel, and…
Steven Butala: Saving money on mail or data will end your career.
Jill DeWit: I mean, it’s smart, but save the mail with the right company, that’s doing exactly what you need. I hope we’re saying the same thing.
Steven Butala: You know.
Jill DeWit: You know what you shouldn’t skimp on? Jewelry. That’s another thing.
Steven Butala: I thought you were going to say… There’s nine other things that I thought you were going to say.
Jill DeWit: Oh, what did you think I was going to say?
Steven Butala: Like, I don’t know. Like education, or…
Jill DeWit: Oh, pff. No, I’m getting right to the… Cut to the chase.
Steven Butala: You know, that’s actually true. There’s a big difference between full cut diamonds, and diamond chips-
Jill DeWit: Yeah.
Steven Butala: … that you find like at Sears, or something like that.
Jill DeWit: Exactly.
Steven Butala: And I’m not knocking Sears. I-
Jill DeWit: You’re going to get your value back.
Steven Butala: I love Sears. I’m a frequent flier there. Just not the best place to buy jewelry. That’s all.
Jill DeWit: Thank you.
Steven Butala: Today’s topic is not jewelry. Today’s topic? The five best places online to sell your land. This is the meat of the show. Take it away, Jill.
Jill DeWit: Oh, I get to go first?
Steven Butala: Yeah, because I think that… I haven’t seen your list, but I’m guessing ours are different.
Jill DeWit: Okay. And yes, I did write it down. I totally have a list here. All right. So, here’s what I think are the five… And like Steven said, this has evolved from us doing this business in the last couple years, and it’s going to evolve even more again. I just thought of one right now that’s not on my list, but we’ll see if you bring it up.
Steven Butala: Yeah.
Jill DeWit: So, when I originally sat down, here’s my first things. Number one is land selling sites.
Steven Butala: Eh. Only for rural vacant land. Go ahead.
Jill DeWit: That’s what I’m talking about. This is for land.
Steven Butala: Oh. This is just rural vacant land?
Jill DeWit: Yes.
Steven Butala: And only if you do it right.
Jill DeWit: Yes.
Steven Butala: Okay, go ahead.
Jill DeWit: Thank you. You said, “Eh.”
Steven Butala: It wasn’t on my list.
Jill DeWit: Well, that’s fine. This is my list, and I’m not going to, “Eh,” your list. I might, “Eh,” you, if you keep that up.
Steven Butala: What do you mean it’s land selling sites? Like Land Watch, Land and Farm?
Jill DeWit: Yes.
Steven Butala: Oh, yeah. Okay.
Jill DeWit: Yes.
Steven Butala: Actually, I do agree with that.
Jill DeWit: Thank you.
Steven Butala: Sorry. I didn’t understand.
Jill DeWit: Well, you didn’t let me finish.
Steven Butala: Yup. That’s right.
Jill DeWit: Okay. Here’s my number one. Land selling sites like Land Watch, Land and Farm. We have one, it’s Land Pin. I’m sure there’s going to be a new one around the corner in a month. You know, you never know. [inaudible 00:09:43] good. Number two, five best places to sell land… Land… online. Your site. Why not? You should start there. Number three, social media. When I say social media, I mean all over.
Steven Butala: Yeah.
Jill DeWit: I mean, don’t leave it out. Facebook, Instagram, Twitter, YouTube.
Steven Butala: Facebook Groups, specifically.
Jill DeWit: All those things. Groups. Facebook Marketplace. You know, every little thing. When I say YouTube, too, it’s a great place to make a video about your land. You’re going to make a video anyway showcasing your land, I hope.
Steven Butala: Yeah.
Jill DeWit: If it’s that good, you know, and put it in your posting. Have a video link. But you could also drive traffic to your land selling site on YouTube. So, that’s perfect. Number four, large online retailers, such as eBay, Craigslist, things like that. And then, number five is the MLS. Thank you.
Steven Butala: You know, I honestly-
Jill DeWit: And I’m done.
Steven Butala: I can’t improve on that.
Jill DeWit: Oh.
Steven Butala: I think the whole point to this, where you’re really going to shoot yourself in the foot is focusing on one venue.
Jill DeWit: True.
Steven Butala: The other thing, too… And this is really kind of the takeaway from this whole thing… it’s very, very specific to the product type that you’re selling. Infill lots should immediately get listed on the fixed price MLS, if you’ve done all your work and they’re buildable.
Jill DeWit: Right.
Steven Butala: They’ll get snatched up in a minute. If it’s rural vacant land, you should really develop a good website, if that’s what your focus is. Use Landio, L-A-N-D-I-O, dot com. He’s a member. [Tory’s 00:11:20] a member of ours, and he’s just done a bang up, remarkable job of selling his own property on his own site.
Jill DeWit: Right.
Steven Butala: One of the things that Jill did leave out, and I’ll leave it at this, is developing your own buyer-based email list by doing an ebook or something like that.
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: We sell more property there than anywhere else, rural vacant land.
Jill DeWit: That’s a great way. I mentioned your site, but that’s a great way to drive people to your site.
Steven Butala: Yeah.
Jill DeWit: So a lot of these things, too. Like when I say social media, or eBay, Craigslist, and everything, some of these, I want the goal to be just to drive them to your site.
Steven Butala: You know, we have the luxury of developing a database, a buyer database from completed sales from back to 1999. So, we’ve got tens of thousands of people that get an email from us when we buy a property, even sometimes when we’re not even done doing the deal, and it gets pre-sold, with rural vacant land specifically. They’re resellers, and members of Land Academy, and all that stuff. That’s the best-case scenario. But Jill and I are very conscious of the fact that it takes years to develop.
Jill DeWit: Right.
Steven Butala: So, start now, but use those other venues to sell property immediately.
Jill DeWit: Exactly.
Steven Butala: MLS is really picking up steam.
Jill DeWit: It is.
Steven Butala: The last year or two years. If you listened to the Land Academy Show early on, we were just sticking our middle finger up to real estate agents and the MLS and all of it, and now we’re kind of backpedaling a little bit, and working in that system.
Jill DeWit: Right. We don’t necessarily use agents, but we use the MLS.
Steven Butala: Yeah.
Jill DeWit: And you can use a service provided by a broker and agent, like we do, and that will get you on the MLS. It’s just a flat-rate thing. You don’t pay a commission. We could talk about that more another time.
Steven Butala: Hey, we know your time is valuable. Thanks for spending some of it with us today. Join us next time for the episode called Why Land Resellers Buy From Us.
Jill DeWit: And we answer your questions posted on our online community, LandInvestors.com. It is free.
Steven Butala: You are not alone in your real estate ambition. How you doing this morning, Jill?
Jill DeWit: Okay. I gotta say, when you said, “Eh,” I thought… And you said, “Oh, but for land,” I thought, “Did he think we’re doing the House Academy Show?”
Steven Butala: No. No. The thing… I was just joking.
Jill DeWit: That’s what I thought. And then I’m going, “Am I on the right show?”
Steven Butala: You know what? It was my failed attempt at a joke.
Jill DeWit: Oh.
Steven Butala: That’s all it was.
Jill DeWit: Okay, then.
Steven Butala: It had nothing to do with the [crosstalk 00:13:32].
Jill DeWit: Good. I really had to think, going, “No, we’re doing Land Academy right now. I don’t know what’s… ” Okay, good. Hey, speaking of Land Academy, by the way. If you, or someone you know-
Steven Butala: What the heck?
Jill DeWit: …. would like to be a member of Land Academy, I’ll tell you right now, there’s a special going on for like three more days, so go check it out. LandAcademy.com. Oh, and by the way, wherever you are watching, or wherever you are listening, please subscribe and 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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