Empowering Your Team Without Checklists (1089)
Steven Butala: Steve and Jill here.
Jill Dewitt: Hello.
Steven Butala: Welcome to the Land Academy show, entertaining land investment talk. I’m Steven Jack Butala.
Jill Dewitt: And I’m Jill Dewitt, broadcasting from sunny Southern California.
Steven Butala: Today, Jill and I talk about empowering your team without checklists.
Jill Dewitt: This sounds boring.
Steven Butala: What the heck is he talking about now? Does it? It’s not. Here’s why. Here’s what this show is about. There’s a lot of things that you can do in this industry or as an entrepreneur or as a business owner that involve making tiny little videos, putting systems together in a spreadsheet. Here’s your little checklist. Do this, this, this, this, and this. I will tell you what, it is very short. There’s let’s say 50% of the stuff you can do, but you will always end up disappointed in some way in my opinion. We’ve been at this for a long time. We’ve been doing this for 25 years.
Jill Dewitt: I roll through life a little differently.
Steven Butala: 25 years I’ve been doing this. And the right way to do this is to have somebody kind of work with you, understand and learn how you do business and how the decisions that you make, understand your decision making process and eventually empower them to be the person who makes the checklists and makes the decisions for the people below them. You know, it’s painful. It takes a long time to train somebody and hopefully they stick around for it, but it’s there’s no other way around it. I’m going to use tax liens, foreclosures as an example when we get into the show, because that’s a very checklist driven, but in the end you still have to make decisions. 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.
Jill Dewitt: Ben asks, and I have a note in here, not a members, so that might be pertinent to the question.
Steven Butala: It’s very pertinent.
Jill Dewitt: Okay. It says, “Good afternoon. I recently sent out my first mailer and started receiving responses back. Exciting stuff. Long story short, I offered what is probably closer to 20% of what I consider the lower end of the current market value based on the limited properties for sale in this county.”
Steven Butala: So far, so good.
Jill Dewitt: “And received an email back from an investor who informed me that he owns 184 properties, 47 of which are located around the area in Arkansas that I had mailed. 39 of these 47 properties are currently listed with a real estate agent for sale. The owner was confused by my offer, likely due to how low it was and compared it to the county estimated market value, which means nothing to me.”
Steven Butala: Neither does it, it doesn’t mean that to me. It means nothing to me either. You’re not alone.
Jill Dewitt: “Well, I know that tax values of properties can vary wildly from county to county depending on the assessor. My question is on how to respond when approached of giving an offer for a large number of properties and how strictly should I adhere to my original offer? He’s interested in hearing a bulk offer for multiple properties he’s trying to sell. From the two that I’ve contacted him on, they are straightforward residential vacant land with road access, electricity, sewage, and potentially anywhere from one to five acres. The ones I offered on were one and two acre residential vacant land.”
Steven Butala: This is a very, very popular topic on Land Investors. A lot of people piped in here and here’s my two cents. I love these deals. I love when somebody comes back and says, “I got an offer on a few of my properties, but I really own 147.” I think what you’re asking is, should I make a bulk discount offer on all of them? And I think the answer is yes. Every time that we do this, Jill and I do this and it actually comes to fruition, we make a fortune. I’m talking about millions of dollars. And it’s easy to, you’ve got now 147 deals with one seller. If they’re in the same county, it’s one deed and you’re going to go out and sell this stuff probably the next two years of your life. So make a huge, huge, deep discount offer.
Jill Dewitt: Because it’s so many.
Steven Butala: You know, this guy’s in the business. So the chances of something actually happening is probably, it’s not really kind of within our business model, but for everybody else out there and not just the person who wrote this question, when it works is when you have somebody who’s just, maybe there’s a deceased spouse or just like any other property, they just don’t want to deal with it anymore.
Jill Dewitt: I just think they could be retired. They could be burning out. There’s so many people in our business that have been doing it like us for a long time and they’re at the end. They’re like, “I sold everything and this is what’s left, 147. I’m ready to get rid of them. I’m cleaning out the garage kind of thing because we’re going to move into the assisted living facility.” It’s just like that with this. So, I love your thing. So what we … Can I jump in?
Steven Butala: Well just let me finish this. Should you stick to your original offer? Yes. You shouldn’t adjust for this person, just like you wouldn’t adjust … I mean if you do, adjust 10% and that’s it. Go ahead, Jill.
Jill Dewitt: The original offer might even go down now that you know that there’s more.
Steven Butala: Yeah, not up.
Jill Dewitt: So what should happen is you should get a list from the person of what they own and hopefully what they’re asking price is, know where they are. And then I would go through, and we’ve done this before. I have a big spreadsheet with 147 lines on it and kind of quickly, I don’t want you to spend a month on this because that’s a waste your time. Quickly go through and just kind of say, all right. And you’ll start seeing the themes, like the APN scheme, and you’ll kind of know those are kind of worth this. These are kind of worth that. Get what your offers were going to be and then don’t give it to him like that by the way. You never want to send it back to him showing 1200 for that one, 1,800 from that one. You don’t want to ever do it like that because you don’t have to see how you’re pricing it.
Jill Dewitt: You only want him to get excited about your big number and what if your big number is $450,000? Let’s just throw something out there and then I’ll cover that in just a second. That’s what he’ll get excited about. Then if he … and you’re going to know that, “Okay, wow, I’m getting all these for $450,000. I know I can sell them all with my numbers. Probably make 1.2, 1.5 and be busy for awhile. This is great. Well shoot, Jill, I don’t have $450,000.” Well, you could either do a couple of things. One is find one person through deal funding, you know, Land Academy deal funding or Land Tank to help you take down the whole thing at once or ask the seller for a release, if it’s okay if I jump that in now, and I’m going to talk about that for just a second.
Steven Butala: You can talk about it. It’s really complicated with us.
Jill Dewitt: But yeah, you could … I’ll just say, I’m not going to give you the details, but you could work it out where you’re acquiring whatever you can afford per month until it’s all spent, until it’s all purchased. So, there you go.
Steven Butala: These deals are a massive opportunity for all of us in this community to really … In every deal, every portfolio of anything, not just land, there’s really good stuff and really not good stuff. Every portfolio. So what I try to do, number one is I never price portfolios like this per acre because a one acre property, the price per acre is going to be much, much higher than a 40 acre property in any environment. Does that make sense?
Jill Dewitt: Mm-hmmm (affirmative).
Steven Butala: So what you want to do is-
Jill Dewitt: Per acre.
Steven Butala: … you never want to price it per acre. You want to price it per lot if you have to and Jill’s exactly right. In the end you just want to say, “You know what? This whole portfolio to me is worth $287,582 and 42 cents and I’m not really going to share with you how I came up with that. If you want to check, I can make it happen fast.” And so then now you’re staring at in a spreadsheet of 147 APNs, some of them you’re going to make a hundred grand on. Some of them you might break even on, and divide that number by 147. That’s how I look at it.
Jill Dewitt: Exactly. Exactly. Love it.
Steven Butala: Today’s topic, empowering your team without checklists. This is the meat of the show.
Jill Dewitt: So when you started to talk about in the earlier, this is not the direction I thought you were going to go.
Steven Butala: You know what? I love when this happens. Like what did you think the show was about?
Jill Dewitt: I thought was-
Steven Butala: Because chances are that’s what everybody else thinks it’s about.
Jill Dewitt: So it’s empowering your team without checklists. I’m like, “Well does that mean that they know how to operate without a checklist?” Seriously. That’s what I thought this was. So I thought, “All right, the whole place,” follow me on this one. So here’s the Jill version of this. Some people can operate without a checklist. It depends on the person obviously. Some people like me, you could hand me a deed or hand me an acquisition and say, “Get this done and sold.” Okay. And I’m like-
Steven Butala: That’s what this show’s about.
Jill Dewitt: And I might do it wrong by the way.
Steven Butala: That’s exactly what it’s about.
Jill Dewitt: I’m brand new, let’s just say that, but I’ll figure it out. And especially with, this is Land Academy. I know how to go back. I can watch a video on how to buy, watch a video how to get it through, get it recorded. I can watch a video on how to post it. I can watch a video on how to sell it, all of that. So I can do that. So it depends on the person. So I also said it like, it depends on the job title, which is really the person. And then also depends on their responsibilities. But again, at the end of the day, it really depends on the person.
Steven Butala: We have people that work for us who can’t do anything without a checklist. They can’t think for themselves. And there’s a place for those people. That’s why they’re still with us. But in the end, they’re not going to get promoted the way that they should. This business requires a lot of creativity and free thinking and putting systems in place and then empowering people to have the creativity and the freedom to use the tools that you’re providing to get stuff done. And so, earlier I said, I’ll use foreclosing on a tax lien as an example, although that’s not our primary business at all. There’s a lot of little micro steps that have to be followed from a statute standpoint to buy property from a county, buy a tax lien from a county and then go through the foreclosure process. It’s actually a lawsuit.
Steven Butala: And so that’s very checklist driven, but to make the decision about there’s tens of thousands, hundreds and hundreds of thousands of these things that are posted, that are available in many, many states. More than half the states are tax lien states. So to get to the point where you’re intelligently choosing which tax lien to foreclose on, that takes a lot of artistic view. And you know, there’s some people that can walk into a house and immediately see where they’re going to renovate it. I’m going to move all these walls out of here. We’re going to do this, we’re going to do this. And they see it in their head immediately. That’s what I’m talking about. There are several people that, more people than not that can’t see that creativity at all. So my whole point to doing this whole show is that in the end you need to have more people like Jill and less people like a paralegal following the rules.
Jill Dewitt: Thank you.
Steven Butala: And the best way to do that, and the earliest you can do this is to get somebody, have them sit right next to you for a year and watch what you do until the point where they can actually start to make their own decisions. And you know, this is exactly what happened to Jill and I-
Jill Dewitt: Exactly.
Steven Butala: … when we joined forces. Jill would watch what I was doing for … It didn’t take long. It seemed like it was weeks, not years. And then she went off and did it better than me, and she continues to be that way. So that’s what you want.
Jill Dewitt: Thank you.
Steven Butala: Join us next time for the episode called the mystery of Omar and offers to owners.
Jill Dewitt: And we answer your questions posted on our online community found at landinvestors.com. It is free.
Steven Butala: You are not alone in your real estate ambition.
Jill Dewitt: That was good.
Steven Butala: You didn’t have a lot to say about that for some reason. Usually you do.
Jill Dewitt: Because it’s really people. I tell ya.
Steven Butala: It’s people, man.
Jill Dewitt: It really comes down to people. It’s not about the process. It’s not about the system. It’s not about the CRM. It’s not about how to queue it up for them. It’s not about how pretty the property is or the price or anything like that. It’s the people.
Steven Butala: And I have to tell ya, I am very bad at judging whether or not people are good at that after talking to them for let’s say an hour. I guess I’m gullible. Are you good at judging people’s character about, you know, because I’ve been sold a bill of goods on what people are capable of for a long time. Until you get in there, they’re like, you can’t give them a test. I’m talking about the hiring process. People will say anything in an interview to get a job.
Jill Dewitt: That’s true.
Steven Butala: Anything.
Jill Dewitt: That’s a tough one. It’s really, you know, there’s no perfect scenario I think. We all make mistakes in hiring based on what people tell us. Yep. By the way, the Land Academy daily show remains commercial free for you, our loyal listener. So wherever you’re watching, wherever you are listening, please subscribe and rate us there. We are Steve and Jill.
Steven Butala: We are Steve and Jill. Information.
Jill Dewitt: And inspiration.
Steven Butala: To buy undervalued property.
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