Real Estate Product Type and Financial Goal Setting (LA 1045)
Real Estate Product Type and Financial Goal Setting (LA 1045)
Transcript:
Speaker 1: 00:01 Steve and Jill here. Good day.
Speaker 2: 00:03 Welcome to the Land Academy show, entertaining land investment talk. I’m Steven Jack Butala and Jill dewitt broadcasting from sunny southern California. Today Jill and I talk about real estate pro, a real estate product type and financial goal setting.
Speaker 1: 00:18 This is sounding like a real exciting show. Boy, I can’t wait
Speaker 2: 00:24 every week we have webinars for Land Academy House Academy, and for our advanced group members. And this came up in great detail last week. You know, and people were shocked because I think people’s schedule, uh, set up budgets just like I want to make a a hundred grand this year instead of really getting into an about product type and setting the gold per product type every week. How many levers it back into it. So I’ll cover it all. I know it’s Boring Gel, but it’s important.
Speaker 1: 00:55 I have to tell you, I took no notes. I’m gonna just ask questions before we get into it.
Speaker 2: 01:01 Okay, that’s perfect. Let’s take a question posted by one of our members on the landinvestors.com online community. It’s free. Is this a real name? No, I don’t think so.
Speaker 1: 01:12 Okay, but somebody put it in there like that. I copied and pasted it. Okay. Do it has in there. Wait a minute. If it was real well I haven’t, I know of there’s like, there was a, um, this is funny cases. Really good to, if you know who this is, you’re going to go, how the heck do you know that one, Jill? But from the 80s there was a actor slash dancer who did a break dancing movies and it was Adolfo Shabu Quinones. This is coming from, I can’t remember what happened yesterday. I know. I just heard cause I rivers watching. I had a couple of friends that really likes the breakdancing and I watched the movies with your friends, your friends. Like the Lord knows I can’t dance so I couldn’t do it. But anyway, it was a, it was a thing in the 80s right? For five minutes. So yeah, friends like to consume alcohol too. Don’t there. Who? My friends, my car friends do.
Speaker 1: 02:18 I have a friend who likes to watch break dancing. I’m, even though I’ve memorized it, right? The actor’s name from the 80s it’s all your friends. I’m sure it’s right. So, uh, shabu says asking for a friend. Just kidding. Okay. Who has hired a transaction coordinator? I was looking, I’ve hired good ones and not good ones. I was looking to see if anyone would mind sharing their TC job description with me. Right now I am a one man show, but I’m trying to get an idea of what I could expect. Should I locally post a job for a transaction coordinator out of the public in my, out to the public in my area. I understand that. I will train them for my own specific systems and needs, but I wanted to get a real feel for what a land investors centric transaction coordinator job description might look like. I happen to have one of those. Oh by the way, I have a lot of stuff to say. I appreciate any guidance or advice or if you wouldn’t mind emailing, emailing me one or if you know one posted online, I’d really appreciate the assist. Thanks in advance.
Speaker 2: 03:25 Do you have a job description memorized? Cause I know you guys just sent all that out.
Speaker 1: 03:29 I do not. I do not. I’m yours
Speaker 2: 03:33 cause I have a lot to say on this. This is so important. This is a great question. And it, that position of all the positions in your land business, right? This is incredibly important.
Speaker 1: 03:43 Well, some of the stuff we say alike, like you’ve only are, of course, you want to tell them who you are, what you do, and really try to properly convey that you don’t want agents. What will traditionally happen is you’ll automatically get a bunch of agents applying when they see what you’re doing. And it’s not what we,
Speaker 2: 03:57 and what’s funny about that as is real estate agents, um, across the gamut, whether they’ve only done a couple of deals or if they’re, you know, what, what I call a celebrity real estate agent. Because real estate agents loved themselves. They love to look at themselves in the mirror and dress up and, and represent people in and get in the way. Yeah. Slash represent people in their real straight Sanders transactions. So if you ask them, right, they will a very in a very, um, spoken, very well narcissistic way, tell you all about how they know how to do a deal. And I’ll tell you right now, they even don’t know how to do a deal at all. All they know how to do is convince people to buy stuff for too much money
Speaker 1: 04:35 and then shove it off on a title agent. That’s it. That’s it. So then they go back to the next one. So, and this is where the job starts. What’s so funny is this is where the job starts. The job starts at that point. Now we have the deal. We’ve got to get the deal done. That’s a transaction coordinator, not that better. Right? And so they, yeah, they, they’re going to apply and they know nothing about what to do. So, and it’s kind of fun. And I feel like it’s, what’s to too is that, um, anytime I’ve talked to agents, I have to undo so much of their mindset. So I really, if it’s possible, right? In a perfect world. You want someone who has title and escrow experience slash however, you also don’t want them to be 80 and so set in their ways.
Speaker 1: 05:17 That’s a tough one too. Then you want them to be able to have done more than one house, like their own house deal. Um, and then and then really just have a good grasp of learning tools quickly and just understanding the process. Big Picture. And then my big thing is they have to have a uh, kind of a bulldog. I don’t know what the right word is, but just kind of a power through, get the deal done attitude because the wrong transaction coordinator is going to sit there and go, well, I’m waiting for escrow to call me and give me a closing date. That’s not what we want. Your transaction coordinator is, call the escrow agents and, and go through 10 of them, you know, as they’re picking one to get the best rate and say, I need this to close in seven days. Can you do it? Nope. Okay, thanks. Bye. I need you to just get done some days. Great. Now we have someone we can work with and go down and then make sure it gets done, manage it to completion.
Speaker 2: 06:15 So you’re a one man operation, right? You are your own transaction coordinator right now. So there is nobody more qualified yet to know what this job description is. Then you write for you. So you’re closing your own deals and probably hopefully you’re doing it for at least a year. So you’ve, and you’re getting so busy now that you need to start to replace yourself with these job by job, by job. In fact, this is the topic actually, this is the topic tomorrow. Replacing your own job description in or replacing yourself. Job description by job description. So I’ve had probably 25 I’ve been a transaction coordinator all through my twenties, um, buying commercial real estate for in various positions in places. And I’ve had since then, since 99 I bet I’ve had maybe 20 transaction coordinators. It’s some version under me that have worked for us or worked for Jill or whatever.
Speaker 2: 07:03 Yeah, Joe was my first transaction coordinator and she did such a bang up job. The only one I’ve never had to explain anything to. In fact, she explains it to me. You just seem to be born with it and I’m really, I’m not trying to get you, I’m or this is not false. I, I’ve never, I’ve yet to ever have a transaction coordinator that just picked it up like Joe, like you were born with it. I think we talked about it on the show in the past and I think you just bent it around your, your whole life between the rental houses your dad had and then that job that you got, your early twenties yeah. Yeah. You seem to know how to naturally do a deal.
Speaker 1: 07:34 I learned a couple piece. I only learned a little pieces of it, but then I just figured out I just have that. We were talking about this the other day. I won’t stop if I need, I’ll call and say, I know we need to get x done and I’ll find out how and who and who do I call and I call them. What does it take? What do you need? How can I help? How can I make this go faster just and you just figure it out.
Speaker 2: 07:55 So besides y’all, the two former careers that are fantastic transaction coordinator has is either an escrow agent and a project manager, whether it’s it or construction, excuse me, or whatever, because they’re used to dealing with a lot of stuff, staying organized spreadsheet and stuff out, or whatever software that they’re using, and really kind of call everybody on this deal and then take a break for a second. Call everybody on this deal. Is it moving forward? Is it moving forward? Is it moving forward? Most escrow agents have not as grow managers, escrow managers oversee escrow agents and they just, they don’t do anything right except oversee. Most escrow agents have a very stringent number of deals that they have to close every month, and it’s usually north of 30 so if you can get a good escrow agent closing 30 deals a month for you, yeah. You know, that’s amazing, right?
Speaker 2: 08:53 I agree. So, Hey, I’m sorry I have a lot to say on this. Important, you’re proudly going to have to go through probably 20 interviews. You’re going to have to go through probably five to eight, maybe 10 actual people that you have employed. We just had, we just had a transaction coordinator quit on us. She was perfect for the job. We really liked it mean I had, her personality was great. She just didn’t get it. She was just, she, yeah, she bless her heart, voluntarily said, I can’t keep up with you guys. You know, and Billy said, I, I don’t think I can hang you guys moved so fast. Right. And I think that was really nice of her to say that. So that was good. And to be honest with not only us, but honest with herself about what she could do. This is also a position, this is the most important position besides you and your whole company in my opinion.
Speaker 2: 09:39 So, hey, great. You consider it after a year of cutting, start the cutting them in on the deal. And I don’t think there’s any other position in the company where I think that’s appropriate, but I [inaudible] motivated and happy and with you making them a partner, so to speak, they’re going to get more deals done. They’re going to get, you know, bonus amount every month. They’ll stick with you forever. Exactly. And you’re, and they’ll close more deals for you because of that too, by the way, while they start to act as an owner because they are on the phone acting as an owner. Exactly.
Speaker 3: 10:09 Okay.
Speaker 2: 10:11 Today’s topic, real estate product type and financial goal setting. This is the meat of the show as if that the answer to that question wasn’t enough meat. Oh my gosh, that was long. This is how I looked at it.
Speaker 2: 10:27 Jill and I buy four types of real estate consistently rural vacant land, which is what the show’s usually about. Infill lots, which are properties that are in urban setting where you can build on them or you hopefully use them for some, some purpose. Usually building a house number three, uh, houses sfrs and number four, various types of commercial real estate. And in my mind, those are very separate. They’re separate customers on the buy side, separate customers on the sell side. Uh, in every situation with the exception of the commercial property, we are wholesaling it out. So for whatever reason, I separate how many mailers I’ll set cause a very different mailers situation separate the four of them. I’ll send out an SFR or house mailer, uh, every week, uh, rural vacant land mailer every week and an infill lot mailer every month. And I expect based on those mailer numbers, very predictable results.
Speaker 2: 11:22 By the way, I’ll get to that in a second. I expect, uh, acquisition and consequently a sale dollar yield on my mailer. So I start with that mailer and I know for every 300 or so mailers I sent off for rural vacant land, we’re going to buy a property. And I know that we generally make about 5,000. If I look back all the way to the 90s, we make about $5,000 a deal. Net, it’s a little bit higher now cause they’re a little bit more choosy. So great. I have complete control over my environment. Now let’s move on to houses. That’s done. I can, I can send, well, let’s go back for a second. I can send for every 300. If I send out 300 and we’re going to do 10 deals at $5,000, we’re going to make 50 grand. She generally make about $50,000 a week, uh, selling, buying and selling a rural vacant land if you’re doing it right.
Speaker 2: 12:13 And we pretty come pretty close to that with infill lots. It’s way more sparse or there’s a lot more stuff involved for about every 1800 or so mailers, we send out a month, we buy a property. So we try to buy one or two of those a month. They’re a little bit more complicated. There’s a lot of things that go on per tests and everything. So that’s a separate product type and that’s how we do it. And for houses, we are ever increasing that now. Yeah. Especially right now, houses are about between 1500 and 3000 units. We buy a house and we make between 25 and 50,000 bucks per house. So that’s been our focus, uh, to really ramp that up. And you know, for whatever reason, I’m seeing a lot of new people just lop it all together and they start with how much money they want to make. And that’s not good. If you start with all the math and break it all down, just how I did it, you’re gonna make more money than you’ll, you sit around and say, I’m gonna make $100,000 a month. It’s, you have to back it into how many mailers you’re going to send out. Right. And what product types you want to focus on and the systems you have in place. Like we just talked about a transaction coordinator. Yeah. None of that’s going to be possible unless you have a great transaction coordinator and it’s probably you. Okay,
Speaker 1: 13:31 well, commercial, I’m just sitting here, commercial real estate is the best show ever. I’m loving this one. Can we do everything? I show up a little bit at the beginning. It’s kind of hang out and smile and nod. Oh Gosh man. It is a lot. You go coming off of vacation, I guess. Yeah. I had this all plant up inside cause we were doing, everyone was having too much fun. We, boy, we can’t tell at all. It’s like everybody’s like, don’t, don’t say a word. Do not interrupt him. I’m telling Ya, don’t even raise your hand or think about asking a question.
Speaker 2: 14:15 Commercial real estate, you should have a buyer, uh, all lined up. Like you should have a guy that’s got, I dunno, 20 or 30 or 40 small apartment buildings in a little community somewhere and he wants more. And so now you’re sending out a mailer for that person specifically and you’re gonna ask him how many acquisitions he can handle in you’re gonna back into the mailer that way. So we have over the years, uh, collected and then satisfied. And consequently they, they’ve gone away a lot of different types of commercial real estate people. And we’re actually in the process of developing a database right now that involves like, it contains like the acquisition manager for McDonald’s or the acquisition manager for Shea homes so that we can send out real intense specific mailers in sell properties to these people. We’ll sell them out so that’s a whole different thing. Um, most of you know we have Land Academy that tell it tells you exactly how to do it. House Academy, which tells you exactly how to do it for houses and we have yet to put together a commercial academy commercial property academy. If we ever do, I’m not sure, right? Jill’s getting a little tired of all this stuff. Honestly, she just wants to do deals. Why can’t we just do deal? Steve just want to buy and sell real estate. Why do we have to do with Land Academy and film everything?
Speaker 1: 15:34 I am a deal junkie. I’m a self prescribe deal junkie. I just liked that but really when we buy them, that’s the best part. Do you have anything to add here before we know your time’s valuable? Thanks for spending some of it. Thanks for letting me bore you today. Join us next time for the episode called replacing yourself by job description and we answer your questions posted on our online community found@landinvestors.com it is free. You are not alone in your real estate ambition. That was quite a spiel. I broke a sweat. Yeah, you just went, went and that was good. It has to be valuable. That was very good. Yet you got somebody, I’m sure two people got a lot out. Just kidding. And they’re both in tears. Just took our former transaction revenue where if we make people cry and this like, there’s just like a good deal. I hope not to. I hope not. We have a call it the other day I remember calling. I was, I could kind of tell it was a little bit frustrating, but they were asking about inputting numbers and I said, don’t worry about it. We’ll get you there. We really do want you to succeed. And I really tried to make, make them feel okay. We’ll get them there. Wherever you’re watching, wherever you’re listening, please subscribe and rate us. There we are, Steve and Jill. Information inspiration to buy undervalued property.
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