Preppers Have Now Been Verified They Need Land (LA 1211)
Preppers Have Now Been Verified They Need Land (LA 1211)
Transcript:
Steven Butala:
Steven and Jill here.
Jill DeWit:
Hello.
Steven Butala:
Welcome to the Land Academy Show. I had to check. I didn’t know.
Jill DeWit:
Thank you.
Steven Butala:
Welcome to Land Academy Show, entertaining land investment talk. I’m Steven Jack Butala.
Jill DeWit:
And Jill Dewitt broadcasting from sunny Southern California.
Steven Butala:
Today, Jill and I talk about how all the preppers on this planet, because of this virus have been verified. They’re doing a, “I told you so,” dance.
Jill DeWit:
What does verified mean?
Steven Butala:
I told you there was going to be a worldwide economic meltdown.
Jill DeWit:
Like they’re standing up and-
Steven Butala:
They’re standing up saying, “Yeah, I knew all about this. You guys were all going about your merry way buying expensive jewelry and cars, and I knew that I was digging a hole. See, I was right. You were wrong.” Why do we care? Because they all need more land. It turns out we buy and sell land, lots of it and rural land. It’s all good news for us.
Steven Butala:
More importantly, it’s not so much the I told you so people, it’s the people that were thinking about doing some prepping and never pulled the trigger. Now they’ve got-
Jill DeWit:
The closet preppers.
Steven Butala:
Yeah. Now they’re about to-
Jill DeWit:
Could you imagine?
Steven Butala:
… let themselves out of their own cage.
Jill DeWit:
What does a closet prepper look like?
Steven Butala:
I don’t know. I don’t know what a preppers… I think preppers come in all forms.
Jill DeWit:
I think that there’s a lot of canned food, artillery.
Steven Butala:
Are they in a flannel shirt?
Jill DeWit:
Could be that. I don’t really think about what they wear, but I think about more about if they do their own water, maybe they make their own moonshine. What else?
Steven Butala:
Keep going. I like this.
Jill DeWit:
They’ve been living off the land. It’s so funny. As a matter of fact, we think this is really cool. We were on a, believe it or not, a birthday party Zoom event the other night, which we thought at first this was like, what are we doing? Why are we logging in? It was our friend Marcy’s birthday and she’s like, “Hey, I’m going to do a quick Zoom toast will you guys join me?” We were like, “Okay, this is weird.” And then we joined and we were on there for three hours. All of us laughing. It was the funniest thing. I felt like we were all out together. So if you’ve not done it, do it. It’s a crackup.
Jill DeWit:
Anyway, one of the guys happens to be in Bel Air and has this beautiful sprawling home and on the side of his hill, he’s already been growing his own food and he’s like, “Man, no big deal. This is what we’re eating.” And he took his computer and his camera outside and was showing us on the Zoom thing. Here’s my garden, here’s where this is, that is, I’m like, “This is brilliant.”
Steven Butala:
A few years ago the scientific community announced that a synthetic photosynthesis, you know how plants convert light into food for themselves is 100% efficient, not even 99%. And what it means is that you can grow food indoors now safely. So it’s not crazy to just bury a bunch of containers and grow your own food, make your own water. It’s really easy to make your own water and on and on and on.
Jill DeWit:
I concur. Before we get into it though, let’s take a question posted by one of our members on the Land Investors online community. It’s free.
Steven Butala:
Thank you Jill.
Jill DeWit:
You’re welcome.
Steven Butala:
I missed my line.
Jill DeWit:
It’s okay. That’s why I’m here. Case wrote, “Hi everyone. I’ve used Jack and Jill’s method to successfully buy and sell smaller tracks between two and 16 acres, but I’m wanting to buy a larger track between 100 and 200 acres for my personal use, and was wondering if the standard offer of between 25 and 35% of comps is reasonable for these larger purchases. Just thinking about it from a numbers perspective, if I were to offer 35% of the comps for a property with a retail value of $400,000. So that’s like, okay, $2,000 an acre times 200 acres equals $4,000-
Steven Butala:
400,000.
Jill DeWit:
$400,000 excuse me. I would be offering $140,000. okay, so let’s say we’ve got my $400,000 number times 0.35, 35% equals $140,000. This seems like a very steep discount and I’m not sure I would have much success in finding one. Any help as to what percentage of comps you use when making offers on larger properties or any other tips for these larger properties would be greatly appreciated. Thanks.” Boy, I have an opinion too.
Steven Butala:
Go first. It’s a very, very smart question by the way.
Jill DeWit:
Doesn’t scare me at all. Who in wanting to get a check for $140,000 right now?
Steven Butala:
Yeah, or anytime for that matter, so Jill’s right. That was actually going to be my point too. People don’t respond to these offers that we send out. Price is not their first priority. Again, it’s the garage sale mentality. You don’t have a garage sale to maximize price for the broom that you put out there or anything else for that matter. You do it to get the stuff out of your house because your spouse’s yelling about it or you’re just sick of it or right now, you’re probably just bored as hell.
Steven Butala:
So you don’t care what it sells for. At the end, you’re going to take a little stack of money and go buy yourself a couple of beers, hopefully. And that’s the same thing with this real estate, believe it or not. The people that actually sign these officer are like, “Yeah, we’ve had this land forever. I just don’t care. What am I going to do? List it, go through the whole thing, wait a year, wait six months, wait a year. No.” So it’s the same thing with larger property.
Steven Butala:
I will say this, in general and it shouldn’t affect your pricing, I just want to say it because you need to be aware of it. People who own larger property in general are much more sophisticated than people who own smaller properties in general. And people who have a lot of property are more sophisticated also. That doesn’t mean they don’t run out of money too or die or have some need to pass down all their property after they pass away. And now that whoever’s got it doesn’t care. The kids don’t care. So just keep that in mind.
Steven Butala:
Right now, 35% is too high. Because of this virus, I’d go in at closer to 20 to 25%. So a $400,000 property, I’d offer a hundred grand, maybe 98 maybe 89 even.
Jill DeWit:
I got to say too, for anyone that’s just tuning in, and this sounds nuts, I’m sorry, but what do we have 16,000 transactions that we’ve done with these numbers and then we have, can’t even think, this is just our transactions. That’s what’s funny. Like, “Oh, you mean Land Academy?” No. Meaning this duo basically. More you than me, but I can say I helped with several.
Steven Butala:
As a group, we do about a thousand transactions a month.
Jill DeWit:
Right. That’s a lot too. These numbers are not nuts and it’s about to get nuttier. I’m really-
Steven Butala:
I can’t wait.
Jill DeWit:
I know. I’m excited to hear some of the deals that we and others in our community are going to close.
Steven Butala:
Today’s topic, preppers have now been verified because of these current events. They need your land. This is the meat of the show. That really is kind of the whole show. Everybody who ever is a prepper and is prepped for these events, this event is saying, “I told you so.” And everybody who’s ever thought about being a prepper, just got the confirmation that they needed and they’re not going to be caught, in their mind, they’re not going to be caught not being prepared ever again.
Jill DeWit:
Right.
Steven Butala:
There’s already stuff in the news. I hope that somebody’s binge listening to this a year from now, and I’m all wrong. There’s already news stuff in the news about, “Oh, this could pretty much be an annual thing.” There’s going to be an annual virus. There’s something that causes the world to shut down every year. And we’ll just-
Jill DeWit:
Could you imagine?
Steven Butala:
Like France, we’ll just take six weeks off every year.
Jill DeWit:
That would be horrible. Oh my gosh. Seriously.
Steven Butala:
Don’t be like France, whoever you are, even if you’re French, don’t do it.
Jill DeWit:
When do they normally do this? I don’t even know.
Steven Butala:
Europe has-
Jill DeWit:
They do take longer vacation time.
Steven Butala:
Europe has a mandated six week vacation, some countries in Europe.
Jill DeWit:
But if they move their summertime to spring, I’m good with that. But still. Okay, go ahead. I’m sorry.
Steven Butala:
No. That’s about it.
Jill DeWit:
That was it.
Steven Butala:
I think that was appropriate for you to cut me off there.
Jill DeWit:
Oh, okay. Good, before it went really south?
Steven Butala:
Yeah.
Jill DeWit:
No, it’s funny because for a long time, I’ve been involved with many individuals in the prepper community. We’ve talked about helping each other out and have helped each other out, with deals and things like that. I haven’t got into it. I need to. I’ve had people say, “Hey, we should do podcast stuff.” But we have been on a few shows I think that people are kind of closet or not closet preppers, and talked about what we do.
Steven Butala:
The truth is, Jill and I try to stay in the middle about a lot of stuff. When the cameras get turned off or during the live events, we’re not in the middle about anything. It’s shocking how similar the people that come to our events, these live events that we do.
Jill DeWit:
We all think the same. Yeah. We’re all on the same page.
Steven Butala:
Right.
Jill DeWit:
Today’s Thursday and, well it’s Wednesday as you’re listening, but we have a weekly afternoon, weekly… What am I trying to say? Land Academy and House Academy. We have two different webinars that we do every week. And it’s private and it’s closed and we all speak our minds and it’s really good. We can be way more vocal than this, but still we’re honest right now. That’s always how we’ve been. So nothing’s changed.
Steven Butala:
And it goes without saying, I think, but I’m going to say it anyway. Technology, minute by minute, week by week is advancing to the point where living off the grid and collecting rainwater, alternative septic systems, growing food underground in containers and stuff is advancing rapidly. So, this event was going to times 10 that. I think the demand for, I don’t know, you name it. Anything that’s involved with preparing for whatever happens next year, it will be escalated.
Jill DeWit:
I love it.
Steven Butala:
So do I.
Jill DeWit:
That’s a good point. I can’t believe in just in the last 10 years, the changes that we’ve overcome with land. So many people now can go out and take care of their own energy and take care of their own water and take care of whatever they need. It’s so wonderful. And there’s a whole thing right now, you know that right now, someone is creating a whole business out of this whole thing that’s going to further solve, working and living off the land and being wherever you want and having a vibrant, happy life.
Steven Butala:
If you look at the ranking for shows, television shows on Amazon or Netflix and you see the prepper shows and the tiny house shows and living off the grid shows, are all way moved up in the rank right now.
Jill DeWit:
Are they really?
Steven Butala:
Yeah.
Jill DeWit:
Oh, because there [crosstalk 00:11:27]
Steven Butala:
Yeah, because everybody’s like, “I don’t want to live in this apartment in Manhattan, New York and get SARS.”
Jill DeWit:
It’s true.
Steven Butala:
“I’ve been working from home anyway. Why am I putting myself through this?”
Jill DeWit:
It’s not SARS right now though, by the way.
Steven Butala:
It is a version of SARS.
Jill DeWit:
Okay.
Steven Butala:
I like to call it the SARS.
Jill DeWit:
I know you do.
Steven Butala:
People are clicking off their stuff right now.
Jill DeWit:
I know. I just wanted to make sure we’re respectful.
Steven Butala:
Go ahead, cut me off.
Jill DeWit:
It’s okay. You’re good. Happy you could join us today. Every Monday, Wednesday, and Friday we are right here on the Land Academy Show. Tuesdays and Thursdays, you can find us on the House Academy Show.
Steven Butala:
Tomorrow, the episode on the House Academy Show is called, Commercial Real Estate will Change Forever. You are not alone in your real estate ambition.
Steven Butala:
If you’re an employer and you have a bunch of people working in, let’s call it a cube farm, and you’re forced to send them all home and you’ve been adamantly against it. This is me, by the way. Adamantly against sending your people home for a bunch of reasons. Maybe you’re an old school weirdo like me and you’re forced to send them home now. What do you think is going to happen after this is all over and everybody’s thriving at home and doing great and they’re hitting their numbers and they’re smiling? Are you going to bear the expense of resetting up that office that you had? In some cases it’s office buildings full of people. No. I’d be happy to carve out a 100, $200,000 of monthly rent. Obviously, it doesn’t apply to us, but large corporations where everybody’s just on a computer anyway, commercial real estate is going to change forever. That’s tomorrow.
Jill DeWit:
The Land Academy Show remains commercial-free for you, our loyal listener. So wherever you’re watching, wherever you’re listening, please subscribe and rate us there.
Group:
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Steven Butala:
Information.
Jill DeWit:
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Steven Butala:
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