How to Sell and Record the Same Day (LA 1020)
How to Sell and Record the Same Day (LA 1020)
Transcript:
Steven Butala: Steve and Jill here.
Jill DeWit: Hi.
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 how to buy, I’m sorry, how to sell and record the same day.
Jill DeWit: What does that mean?
Steven Butala: Go ahead.
Jill DeWit: Can you explain what that is?
Steven Butala: Sure.
Jill DeWit: Okay.
Steven Butala: So in every real estate transaction, you purchase a property and then you have to get it recorded at the county. You do some marketing, you resell the property to the new buyer and you have to record it at the county. It just… I think it goes without saying, the faster that this process happens, the better. So what Joe’s done and, and what we do now almost regularly because of, I think electronic recordings… Is that what this is about?
Jill DeWit: Yes, it is. How are we doing here today?
Steven Butala: Exactly.
Jill DeWit: Let’s take a moment. Before we talk about this for just a second. How are you?
Steven Butala: I’m great.
Jill DeWit: Okay, good.
Steven Butala: What does that mean?
Jill DeWit: Well, you wrote the topic and you’re checking in with me. I’m just making fun. It’s good.
Steven Butala: I, you know, the whole, actually, the deeper meaning to this is that the faster the real estate deal, the better.
Jill DeWit: Yeah, definitely it is.
Steven Butala: To get all philosophical about it, the velocity of money is very much alive and well and at work churning real estate deals. But there’s a lot of details that are involved when you’re doing this deal, like recording the same day. Some of the backend administrative stuff is really what can drag a deal out, not so much the robet, supply and demand.
Jill DeWit: Let’s talk about, let’s do the question.
Steven Butala: Yeah. Okay. Sounds good.
Jill DeWit: All right.
Steven Butala: Let’s take a question posted by one of our members on the landinvestors.com online community. It’s free.
Jill DeWit: Daniel asked, “What flat rate MLS providers have you heard ever… Have you used that were a value to your land sales? I’ve heard of the following from other land investors. We have brokerdirectmls.com. I like them. Congress rail with t.com. I like them also, please share your experience.”
Jill DeWit: Okay, so what this is is in land sales when… Depending on the price point, you may or may not want to do this. So let me just start with that. What it is, is putting your property in the MLS. Back in the day, you used to have to list it with a broker or a realtor or some kind of agent to get access to get into the MLS. And then they would, part of the deal is automatically they get a piece of the action, they get a commission.
Jill DeWit: So that would obviously if you have a $2,000 property, a couple of things would make it not cost worthy. One, they don’t want to do it because on the commission on a $2,000 property is not much. And B, you only have a $2,000 property. You don’t want to give up part of your commission from what you’re selling. If you bought it for 500 and you’re selling it for 2000 and you have to give 600 to an agent or something, whatever they think is worthy of doing this, it didn’t make a lot of sense right there because profits. So what this is now, nowadays they’re a bunch of brokers out there and it’s very… It’s legal and it’s so cost effective that they just say, hey, you know what, I’ll provide you my services of giving you access to the MLS, through me, for a flat rate.
Jill DeWit: And what that means is they’re not marketing it. They’re not gonna promote it. They’re not going to sell it. And I’m going to answer the phone for you either. It’s all you. All they’re doing is saying here, I’ll give you the form, you fill this out, like I would be doing myself and I will get it transferred in the MLS for you. And it’s great. And so I love Broker Direct MLS is a great service. And also we’ve used them many times and I’ve, I would start there with Congress Realty cause they’re… Well you can look between the two. They vary based on the state, based on the coverage, based on the access that they have negotiated on the MLS pricing in those different states and areas. So that’s where you’ll see difference in prices. But between the two…
Steven Butala: No, it’s okay. The difference, there’s a pretty serious difference between the two. First of all, it’s geography based. Congress Realty has really only the western part of the country. Broker Direct MLS, in addition to getting a property in the MLS for fixed price, syndicates it everywhere. It’s bland and farm Land Watch there’s a ton of places where they’ll post your property for you.
Jill DeWit: Congress does that too.
Steven Butala: Oh do they?
Jill DeWit: So yeah. How it works is like Congress is one of the places that Broker Direct might sub the work out to. So Broker Direct really works with all these different little guys and it’s just the one that we happen to know really well.
Steven Butala: I mean it’s like… what does it cost? Like $200?
Jill DeWit: Anywhere from $99 to $400 is what I’ve seen.
Steven Butala: Okay.
Jill DeWit: So you need to… And you can go look and check it out real quick before you decide to know if it makes sense.
Steven Butala: Here’s what’s great about getting your property into the MLS in general. The way that we buy and sell property in our group, houses, land, whatever. It’s almost always the cheapest property. So if you’re like me, you’re going to go on the Internet and then you buy anything. You look for the cheapest thing first just to see. In some cases the most expensive first, but you sort by price for sure. There’s some huge innate value. When someone’s looking for a piece of land somewhere, as a potential buyer, do they sort by price and you come to the top? I mean, we all know the value of being on the first page of Google. It’s the same situation, although you’re not getting charged for it here.
Jill DeWit: Right. I just like, I love the MLS myself because for certain properties, especially the higher dollar amounts and bigger acreage, that’s where people are traditionally looking. They will still go look on the MLS for those properties and you need to be there and show up for them to find you.
Steven Butala: Exactly. Today’s topic, how to sell and record the same day. This is the meat of the show.
Steven Butala: Go ahead.
Jill DeWit: Okay. So what we’re talking about is… And it’s funny, people don’t realize how easy and how simple this is. It’s many counties are coming online and having online recording so you can literally have someone check out. You could wake up in the morning, see someone has checked out online for your property and they’ve, and if you did it, you know correctly, you have it all where they can fill in how they want the deed prepared so you could have the deed done and recorded online in the same day. Everybody wins. Your seller wins because they love like wow, now I own it. It’s done.
Steven Butala: Yeah.
Jill DeWit: And you win because it’s not a long drawn out process too. You’re not literally printing it out. You are printing out a deed and signing it but then you’re scanning it, uploading it and just goes straight to the county. You don’t have to mail it in and wait for them to do their… Take their time to record it. Because we know some of them can take a little time.
Steven Butala: The industry standard, the real estate industry standard for possession, real estate possession they believe anyway. And there’s… You can debate this. When you own a piece of property, the moment you purchase… That you own a piece of property is the moment that it gets recorded, those things are synonymous. Is that actually true in reality? Probably not, but that’s what everybody believes. That’s what all lawyers believe and real estate agents and buyers and sellers. So it’s really cool. And what is recorded mean? It means that the property has been assigned by the county, a book and a page number. Back in the day before computers, you would walk into a county and you would see all these books and books and books and three ring binders. And what they are is recorded deeds with a book and a page number.
Steven Butala: So it could be look 372, page 716. And that’s where the deed is for the property that you want. So they still use that terminology, a book and a page number. It’s just all electronic now. And it’s a sticker with the barcode that they slap right on the deed. So that can all happen moments. I mean I actually… When we bought that townhouse that we have in Scottsdale, I went to the closing myself. It was one of the probably last physical clothing I’ve ever been to. I was actually shocked. The title agent had the keys in her hand. The agent dropped off… The real estate agent had the keys in her hand-
Jill DeWit: To drive up to the recorder?
Steven Butala: Hold on. The title agent had her keys in her hand and she said, “hold on one second.” And she said, “Bang.” She printed out a sticker and put it on my deed and said, “you now own it.” It was truly amazing.
Jill DeWit: Okay. Because not all of them are that up to date.
Steven Butala: Usually when everything went… Back in the day when everything was done, to get a book and a page number, you had to get a career.
Jill DeWit: Yeah.
Steven Butala: And they would take all the documents from their title office down to the county and it get recorded and then they would come back. So, it would happen in days, not in seconds.
Jill DeWit: What were the keys in the hand? That’s what was, that’s the keys in the hand for?
Steven Butala: Real estate agent dropped off the keys to the place.
Jill DeWit: Oh.
Steven Butala: To the title agent.
Jill DeWit: Keys in the hand to hand you the keys.
Steven Butala: And she wouldn’t give me the keys until she had a book and page number.
Jill DeWit: Oh I thought keys in the hand cause she’s like I’m going to run this down to the county myself. All right. Or then I thought when you said no, that’s not what that meant. That I thought, oh keys in hand like okay are you done cause we’re getting a drink. That was my other thought process.
Steven Butala: How did drinks get into this?
Jill DeWit: Cause we’re done. Celebrate. That’s what I thought. Don’t you do that?
Steven Butala: Yes I drink.
Jill DeWit: Okay. Don’t tell me this is not true. Question: Do you or do you not still celebrate like the old fashioned way celebrate some real estate transactions?
Steven Butala: Yes I do.
Jill DeWit: Thank you. That’s what I thought with keys in hand.
Steven Butala: I absolutely do. That was not a celebratory acquisition.
Jill DeWit: I didn’t say church key in hand. That would have been good.
Steven Butala: You know, it’s funny that you asked me about that because you were there when I celebrate.
Jill DeWit: No, I do. I’m gonna ask, I’m gonna start asking that. What kind of keys? Help me to tell… Were they bulk keys and nail.
Steven Butala: You know what? Actually, two years from now, maybe less. The word key is going to be obsolete.
Jill DeWit: Right?
Steven Butala: I don’t have any more keys. Do you?
Jill DeWit: Shucks, no I don’t because I follow you around.
Steven Butala: You don’t have a car?
Jill DeWit: I don’t have a car key. It’s a little thing that’s sticks in my purse and I just get in the car and push a button.
Steven Butala: Exactly.
Jill DeWit: You’re right, there’s not going to be keys. This is going to be really weird.
Steven Butala: Hey, we know your time’s valuable. Thanks for spending some of it with us today. Anyway, join us next time for an episode with member, JT Olmsted and how he shares his Land Academy success stories.
Jill DeWit: Yes. And we answer your questions post that our online community found at Landinvestors.com. It is free.
Steven Butala: You are not alone in your real estate ambition.
Jill DeWit: That was good.
Steven Butala: All right. We’re getting the hang of this.
Jill DeWit: I think so.
Steven Butala: We’re getting the hang of this outdoor studio thing.
Jill DeWit: I forgot to give a very, very, very, very, very valuable announcement yesterday, so I’m going to do it right now today and it may have already happened. We’re, oh no, actually it’s come up in about two hours now that I think about it. We’re going to be live on Facebook today. It’s going to be a very… Kind of business like yet very in formidable. What’s the right term?
Steven Butala: Informative.
Jill DeWit: Informative. So check us out. Join the topic today is… This is the first I’m reading it too, by the way. I didn’t know what the topic was. Our team just hand it to me. Join Steven Jack Butala and Jill Dewitt from Land Academy as they discuss how to get started flipping land and houses and they will also be, we will also be covering parcel fact using parcel fact 2.0 and due diligence. Boy, they’re throwing a lot in there, that’s going to be good. So that’s today. Facebook Live, I think it’s like five o’clock Pacific Time. Go check out Land Academy Facebook page and you’ll find the details there.
Steven Butala: This is the first time I’ve heard of… I’ve been aware… Been made aware that I’m going to be involved in the live event.
Jill DeWit: Surprise.
Steven Butala: Good meeting, Jill.
Jill DeWit: You’re welcome. I do it like this, and you can’t say no. Wherever you’re watching, 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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