Organizational Skill 80 Technical Skill 20 (HA 1181)
Transcript: 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 Jill DeWit, broadcasting from sunny Southern California.
Steven Butala:
Today, Jill and I talk about organization of skill at 80%, technical skill at 20%. Jill just said, “I disagree with your numbers.”
Jill DeWit:
I have different numbers.
Steven Butala:
I said, “Doesn’t surprise me.” Before we-
Jill DeWit:
Well-
Steven Butala:
… we get into it… Oh, okay, go ahead.
Jill DeWit:
Well, no, and what’s this whole thing about? So organizational, so you’re talking about to run a successful business, just get through life?
Steven Butala:
All right, here’s an example-
Jill DeWit:
What does-
Steven Butala:
… since you asked.
Jill DeWit:
80, 20, why do I care about this?
Steven Butala:
Since you asked, let’s say you’re the greatest guitarist there ever was, and you look the part and you’re ready to be a rock star. You got all the technical skill you could ever imagine. In fact, some people might even say top 25 guitars in the planet, and you’re 22. You got a good head on your shoulders. I’ll tell you what’s never going to happen: You being a rock star. It’s not about the skill. It’s about getting organized, getting in front of the right people, marketing yourself, and getting organized and setting tiny little goals for yourself and putting stuff in a calendar. It goes… I just picked out a rock star for… It doesn’t matter if you’re a surgeon. It doesn’t matter if you’re a chef. I, constantly, even at my age, run into people who think that they’re, because they’re good at what they do, that it’s just all going to fall in place.
Steven Butala:
It’s shocking to me, and it’s all walks of life, every nationality, every gender, all of it, every age. It’s just still… Jill and I have friends who still believe that this stuff’s going to happen to them because they’re good at it. That has very little to do with being successful at anything.
Jill DeWit:
Okay, well, I will have more to add to this in the few.
Steven Butala:
Before we get into it, let’s take a question posted by one of our members on landinvestors.com online community. It’s free.
Jill DeWit:
Mike wrote, “Hi, everyone. First post. I’m new here and have no experience buying land before, but I’ve been selling expensive products online for several years.”
Steven Butala:
That’s fantastic, by the way.
Jill DeWit:
“I’ve sent out about 2,700 rural vacant land mailers so far to three different counties. My first mailer was sent eight days ago, so I haven’t gotten any calls yet. I want to move on to another county for rural vacant land, but I’m having some concerns about the new-to-sold listing ratio. It’s about 150%, which is typically a bad sign.” Let me back up to see. That means that more properties are going on the, or less property are going in the market than are selling, so it’s the inventory’s growing. You don’t want that. You want the inventory and getting smaller. “I downloaded the Redfin data for this county’s land and with the sold listings from the last year. I was able to zero in on two specific zip-”
Steven Butala:
Excellent.
Jill DeWit:
” …codes within the county that I want to send mail to because of the prices differences among the-”
Steven Butala:
Excellent.
Jill DeWit:
” … county. I feel like I can work around the 150% of the new-to-sold percentage by making the following assumptions.”
Steven Butala:
Want me to read the rest while you sneeze?
Jill DeWit:
I’m okay. “One, if I look at pricing for those specific zip codes, for all the two to four-acre properties, there are 60 and 80 listings given on Redfin. This seems to be enough data.”
Steven Butala:
That’s-
Jill DeWit:
“Two-”
Steven Butala:
… way too properties listed for sale by the way.
Jill DeWit:
” …if I sold it by price per acre-”
Steven Butala:
Sort by.
Jill DeWit:
” … if I sort by,” excuse me, “price per acre, there’s a better new-to-sold ratio, like less than 100% for the top 20 lowest price-per-acre properties in each zip. I can know everything else if I base my mailer off this price breaker. Three: Even if there’s less than a stellar new-to-sold ratio, I can still move property quickly given I acquire it for around 20% of retail and sell it for 50%.”
Steven Butala:
Okay, hold on a second, so number three, he nailed it. If you’re priced cheaper than everybody, and there’s still a new-to-sold issue potential issue in the market in that zip code, you can get over that. Here’s my concern. New-to-sold is not supposed to be looked at on its own. You could have the most fantastic new-to-sold ratio, but your days on market are 140, and you’re going to have some real problems with the mailer.
Steven Butala:
That said, taking that another step further, you could have fantastic new-to-sold ratio and 15-days-on-market average in a market, but I’ll tell you what, if you have 42% of the property that the universe or property in that zip code or that county is listed for sale, you’re going to fail. You need to look… and I really appreciate this. This person, Mike, is going to… Mike… I’m answering the questions for everybody else, not you, because I already know how you’re approaching this. You’re going to be fantastically successful, but this is the episode moment where you stopped what you’re doing and listen.
Steven Butala:
You have to look at all three statistics. New list-to-sold, days on market, and actual percentage of properties in the universe of properties that are for sale right now. New list-to-sold, you want it to be about one to one. Every property that gets listed in the market that month gets sold. That’s one-to-one ratio. That’s what you’re shooting for. [inaudible 00:05:26] lowers better.
Steven Butala:
Number two, days on market lowers better. Anything below 30, closer to 15, is better. Then third, the number of properties that are actually posted for sale as a percentage of the universe of properties, so we’ve got 5,000 properties in that zip code, you want way less than 1% or 1% or lower to be listed. I appreciate your obsession bringing up yesterday’s show on the sold ratio, but it’s really only 33% of the deal.
Jill DeWit:
May I continue?
Steven Butala:
Yeah, sorry, I had to get that out-
Jill DeWit:
It’s okay.
Steven Butala:
… because I want him to succeed.
Jill DeWit:
Yeah. “I’m going to send the mailer anyway, but I’d like to hear if anyone does something similar since it will take me a month or so to know if I’m missing something. I didn’t do the zip code approach from my other mailers, and they were much more of a shotgun approach. Thanks.” It’d be fun to see-
Steven Butala:
We answered it.
Jill DeWit:
… how it goes. What’s funny is I was going to say, you mentioned that you’re going to do really… if you send out a mailer, and there’s a lot of property for sale, and here you come, you’re going to get a lot of response. By the way, be ready for that, so… because they know.
Steven Butala:
I think I answered it.
Jill DeWit:
You did.
Steven Butala:
Today’s topic, organizational skills at 80% of what you need to do, technical skill at about 20%. This is the meat of the show. Taking my rockstar or incredibly talented guitarist example to another level, let’s look at it from a real estate perspective standpoint. The technical skills that you need to buy in some real estate, in my opinion, are going to take about two weeks to learn. I mean, and I think that’s average. I think there’s some people in our group, and I put myself in that-
Jill DeWit:
I think two weeks is speed. To learn what we do?
Steven Butala:
Let’s say two months.
Jill DeWit:
Okay, phew. I was going to say-
Steven Butala:
Two months to get the technical skill down. You either know how to answer the phone or you don’t. You either know how to… You just have the technical skill to look at a piece of real estate and say, “You know what, I’m looking at three pieces of real estate. This one’s probably the best. I have the best shot at this one.” That’s technical skill, and that’s what our programs are for.
Steven Butala:
What’s much more difficult to teach in a program environment, which is one of the reasons we have this podcast because I think it takes a lot of just soaking it with the fire hose on the topic, is organizational skills and confidence and all the stuff that I think is really, really overlooked and super, super important to being successful.
Jill DeWit:
Thank you. Thank you. We’ve talked about this earlier. It doesn’t matter how much you know. We’ve had people that have been in our group for a long time, people that they know the stuff. It’s just you got to do it. That’s it. When you’re ready, and I can jump in, I want to give you my numbers.
Steven Butala:
I want you to jump in.
Jill DeWit:
I obviously did not title this show because I would’ve had the different numbers. I don’t think organization is even… No offense. Organization-
Steven Butala:
None taken.
Jill DeWit:
… is important, but I think what you mean… and I hear you. I think we’re on the same page. Organization is having your calendar organized. You could still be very, very organized and have the technical skill and not have the stupid inspiration and motivation to get out of bed and do it. That’s where I see it. I think that’s 60. You have to have that inspiration, the motivation. That’s 60% of it. That’s going to push you to do the 20% organization to benefit from the 20% of technical or wonderful skill ability that you have.
Jill DeWit:
You may just be the most incredible storyteller on the planet, and everybody loves getting your Christmas letters, whatever it is. There’s a novel in you, and until you get… and you could be motivated and do great, or not motivated, but very organized at your work. You could be a wonderful engineer, never miss a deadline, so you’ve got an organization down. You’ve got this wonderful skill over here, but man, until you get off your butt and do it, that doesn’t matter. That novel’s going to stay right here.
Steven Butala:
I mean, we’ve all met people where… It happens a lot with cooking. We go to somebody’s house, and they cook and something and it’s like, “Man, I mean, you need to open a restaurant.” You know what? They laugh. Usually, they laugh, especially if it’s your mom or your grandmother. “What are you talking about at restaurant? All I want to do is feed you people and make you happy.”
Jill DeWit:
That’s true.
Steven Butala:
The-
Jill DeWit:
And that’s okay.
Steven Butala:
Yeah, it’s great. They got the technical skill licked, what Jill said, they don’t have any motivation and interest at all in taking it to any other level than right there, so you’re right, it’s that fire inside of you that’s like, “I got to let the world know about this.” I see that with writers too. Every once in a while, you write some stuff that somebody read, and it’s like, “Wow, you really need to just stop what you’re doing and write a novel. You’re a fantastic, natural writer,” and they look at you little cross-eyed, like, “I was writing for myself. I wasn’t really writing for anyone else.”
Jill DeWit:
Those are the best.
Steven Butala:
When it comes to real estate or any type of moneymaking endeavor, I see everybody doing it. They’re focusing on this mechanical skill, and they’re not focusing on getting it done or making sure that they’re staying sufficiently motivated, or maybe they weren’t motivated in the first place. They shouldn’t have gotten into it in the first place-
Jill DeWit:
Well, let me back it up-
Steven Butala:
… because if they’re not good at that and not sufficiently motivated, and they have the greatest technical skill, whatever they try next, same thing.
Jill DeWit:
Well, I see more so there’s a fear that gets in the way. That’s really what I see. People come in, they’re excited, they’re getting on the calls. They appear to be motivated. They’re doing all the stuff. They’re communicating in our group. They got the education. They’re looking at things, but then they’re looking at it again, and then they’re over analyzing and analyzing. They analyze stuff so much that they never pick a zip code and never get the mail out. There, I think that there’s also one thing you have to just kind of be aware of is there’s often little fears that creep up, and you got to figure out what they are and address them, or that’s what stopping the motivation, traditionally. It doesn’t matter about the organization and the technical part.
Steven Butala:
I was talking to a buddy of mine last weekend, and I said, “I’m in the worst shape of my life ever, like ever since I’ve ever been that I can remember,” and this is a former Marine, like decorated officer Marine, and he said, “Me too.” I said, “I’ll tell you, the only way that I’ll ever get in shape ever, the only thing that has worked for me ever is not dieting or getting on a treadmill in the morning or anything. It’s joining some type of boot camp environment where I know it’s going to be like 90 days or some number, 45 days, going there every morning or whenever they tell me, every morning, every other morning getting yelled at.”
Steven Butala:
I need to get yelled at like a little child about how I’m failing, and then all right, fine, I’ve got 43 days, then I’ve got 40 days, and immersing myself in that environment. That’s the only way anything’s going to get done because… and so I don’t know what the correlation is for some… For somebody out there, this is the way that they’re buying and selling real estate or having a successful career. They have to immerse themselves into it. For whatever reason, I have the self-control and the discipline to immerse myself in something like buying and selling real estate, but not getting in shape.
Jill DeWit:
Interesting.
Steven Butala:
So Mrs. Inspiration, what’s my problem?
Jill DeWit:
Well, you’re, but you-
Steven Butala:
I’ll pay you $45 for this.
Jill DeWit:
But you know what’s so funny. Yeah. Great. Thanks. That’s not my going rate.
Steven Butala:
What is it?
Jill DeWit:
No, it’s more than that.
Steven Butala:
Okay.
Jill DeWit:
Okay. Anyway. No, what’s funny is you… I don’t want to-
Steven Butala:
Just bring it.
Jill DeWit:
All right.
Steven Butala:
Bring it.
Jill DeWit:
There’s something holding you back-
Steven Butala:
You can’t-
Jill DeWit:
… because we talk-
Steven Butala:
You can’t-
Jill DeWit:
… every time you-
Steven Butala:
You can’t hurt my feelings.
Jill DeWit:
Well, every time you and I… I’ll tell you. Every time we’ve done this, makes me want to write it out. We talked about bringing our own personal trainer and in the mornings and working with us, and I said, “Yes, yes, yes, and yes,” and you said, “I’ll take over it.” I said, “Great,” but something’s holding you back on that, and I don’t know why.
Steven Butala:
Okay, princess, why don’t you call it and make the call because-
Jill DeWit:
No.
Steven Butala:
… I’ll show up for that. See?
Jill DeWit:
No, my point is you… I don’t have the-
Steven Butala:
See, you don’t want to do it.
Jill DeWit:
No, I will do it, but I don’t want to do the work and set it up. I’m actually too flipping pissy right now-
Steven Butala:
Oh, my god.
Jill DeWit:
… and I know you are too, but you know what?
Steven Butala:
No, I’m not too busy to call… you know. I’m not too busy to call-
Jill DeWit:
Do you know what else though?
Steven Butala:
… the hulk and tell him to show up at our house.
Jill DeWit:
All right, then-
Steven Butala:
That’s it. Three times a week.
Jill DeWit:
Okay, so we’re going to rock, paper, scissors this because neither of us wants to make the call [crosstalk 00:14:13].
Steven Butala:
I’ll do it. You know why I haven’t done this?
Jill DeWit:
I don’t want to do the work. I-
Steven Butala:
Because the only reason I haven’t done this-
Jill DeWit:
… don’t want to find the guy and interview him.
Steven Butala:
… is because I’m going to find somebody who’s going to half murder me.
Jill DeWit:
That’s fine.
Steven Butala:
Are you okay with that because-
Jill DeWit:
Yes, because I don’t know if you ever heard, they’re going to train me the way I want to be trained. A good trainer doesn’t have one way of doing it. They’re going to go, “Steven, what works for you? Great. Jill, what works for you? Great. Let’s go.”
Steven Butala:
[crosstalk 00:14:33]. I mean, we can do it, but I will make that call.
Jill DeWit:
I want you to.
Steven Butala:
Okay.
Jill DeWit:
Excuse us while we have our own little family meeting here.
Steven Butala:
We’re doing it on camera too.
Jill DeWit:
I know we are.
Steven Butala:
I can’t-
Jill DeWit:
I’m serious.
Steven Butala:
… back down now.
Jill DeWit:
Because here’s my thing. I am sick and tired of interviewing, no offense, but I seem-
Steven Butala:
Sick and tired of what?
Jill DeWit:
Interviewing. A lot of the interviewing seems to fall on me, for most of the roles in our fall on me, so when you volunteered to interview for this position, I said, “kick ass. Yes, please.” Sorry-
Steven Butala:
Done.
Jill DeWit:
… said that. It would really make me happy if you did it, and if they’re standing here on our patio at 6:00 a.m. Monday through Friday, fine, I’ll be there. I’ll do it.
Steven Butala:
All right, Jill.
Jill DeWit:
I know that they’re going to train you-
Steven Butala:
Shake on it on the show.
Jill DeWit:
I will, and they’re going to train you your way, which is that’s the way it should be, and they’re going to train me in the way I want to be trained. Whatever works for you because you’re pickier about this, I think, than I am too.
Steven Butala:
All right.
Jill DeWit:
So I want you to pick it. That’s my other reason that I don’t want to make the call because whoever I have show up, you’re going to go, “Really?”
Steven Butala:
That’s exactly what’s going to happen.
Jill DeWit:
See? That’s why I can’t do it.
Steven Butala:
We need somebody who’s… I need somebody with a mallet.
Jill DeWit:
So please do-
Steven Butala:
I need Thor.
Jill DeWit:
Please do that. Thank you for letting us use your time today to work out our own. You know what’s going to be funny now. Now everybody watching, you’re going to be like, “All right, we need to see this. We need to see results.”
Steven Butala:
I know. That’s what’s sad.
Jill DeWit:
All right.
Steven Butala:
I have to follow through now.
Jill DeWit:
Yeah, you do. This is a really, really good. Happy you could join us today. Every Monday, Wednesday, and Friday, you can find us right here on the Land Academy Show. Tuesdays and Thursdays, catch us on the House Academy Show.
Steven Butala:
Tomorrow, the episode on the House Academy Show is called Finding the Perfect Zip Code: A Step-by-Step Walkthrough by Me. You are not alone in your real estate ambition.
Jill DeWit:
Okay, I’m serious.
Steven Butala:
I think this is what we need. You know what? This is perfect for this topic. I don’t think you’re wasting anybody’s time.
Jill DeWit:
Thank you.
Steven Butala:
We’re sitting here saying, “You know what, for whatever reason-”
Jill DeWit:
We’re falling down on this.
Steven Butala:
” … we don’t struggle, you and I, with getting up in the morning,” and I mean literally our feets hit the ground with our feet running when it comes to business and starting new companies and money stuff and working with each other and all of that and running a family. I enjoy it 98% of the time, but I can’t get a trainer in here.
Jill DeWit:
You haven’t tried. It’s that you can’t.
Steven Butala:
That’s what I’m saying. It’s what you said in the show. It’s just not a natural thing to do, so I’m going to force myself to do it.
Jill DeWit:
I love it.
Steven Butala:
And I apparently you’re going to come along.
Jill DeWit:
I am. I want to. The Land Academy Show remains commercial-free for you, our loyal listener, so wherever you’re watching, wherever you are listening, please subscribe and rate us there.
Both:
We’re Steve and Jill.
Steven Butala:
Information.
Jill DeWit:
And inspiration.
Steven Butala:
To buy undervalued property.
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