Why Land Sells So Cheap During Trying Times (LA 1214)
Why Land Sells So Cheap During Trying Times (LA 1214)
Transcript:
Steven Butala:
Steve and Jill here.
Jill DeWit:
Good day.
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. Excuse me. Jill and I talk about why land sells so cheap during these trying times?
Jill DeWit:
How are you today?
Steven Butala:
I’m okay today.
Jill DeWit:
Okay. Your voice is a little deeper than normal, which I find really cool.
Steven Butala:
Oh, really?
Jill DeWit:
I find that attractive.
Steven Butala:
Wow.
Jill DeWit:
It’s like when chicks have that, you know, smokers, Demi Moore voice. You got a little of that. I’m here to tell you he’s not sick.
Steven Butala:
I honestly didn’t know that I could attract you.
Jill DeWit:
Oh, why do you think I’m sitting here.
Steven Butala:
I don’t know.
Jill DeWit:
Oh, my God. No.
Steven Butala:
How does it work for girls? You know what?
Jill DeWit:
Could you imagine?
Steven Butala:
We’re going to talk about Land in a second.
Jill DeWit:
Yeah.
Steven Butala:
How does it work?
Jill DeWit:
No, I’m not here at all because of this empire we built.
Steven Butala:
So we’ve been together for a long time.
Jill DeWit:
Yes.
Steven Butala:
Like something as silly as just showing up on this little set and my voice, it really attracts you.
Jill DeWit:
Yes.
Steven Butala:
I want to hear all about this because I know how to buy cheap land.
Jill DeWit:
Oh yeah, that’s true. Well, that’s sexy too. But yeah, no, you do. It’s, it’s good. Yeah. There’s things like, okay, I don’t want to gross anybody out now, but there’s, you know how it is, certain attributes and physical things that you go, huh, that’s cute. That’s my guy.
Steven Butala:
Once or twice a day. You do some something that just makes me like, just want to just kiss you on the lips hard, like in a movie.
Jill DeWit:
Thank you.
Steven Butala:
Yesterday it was, because we’re recording this really early today, so it hasn’t happened yet today. Is my point.
Jill DeWit:
Okay.
Steven Butala:
Yesterday it was just making a title agent cry.
Jill DeWit:
Oh I’m not proud of that one. But I think the point is-
Steven Butala:
She needed it. She deserved it.
Jill DeWit:
Yeah, I stood up for myself. That was the point. And you were really proud of me for that.
Steven Butala:
Honey, it wasn’t even like, it wasn’t standing up for yourself because you do that all the time anyway. It was just like you were right and just not going to take it.
Jill DeWit:
I couldn’t, I got to the end. I’m like, this is not right. This is not fair.
Steven Butala:
I think that since we’re talking about it-
Jill DeWit:
Yeah.
Steven Butala:
This whole world is upside down right now.
Jill DeWit:
Yes.
Steven Butala:
And it’s not okay to just not do what you’re supposed to do.
Jill DeWit:
I agree.
Steven Butala:
You got to show up as a parent. You’ve got to show up as a spouse. You got to show up as a land investor or whatever.
Jill DeWit:
I agree. Or the title agent.
Steven Butala:
I don’t know that just because you’re doing it from home and not like in your desk somewhere in a cube or whatever, it’s not okay.
Jill DeWit:
Exactly. Thank you.
Steven Butala:
The other thing is Jill, like you can take the ball to the one yard line, but there’s some times.
Jill DeWit:
Oh.
Steven Butala:
sometimes you just need to knock on my door and say, “Is this okay?” And I always say yes. Like I’ve never, do I ever say no to you? Ever? Like ever?
Jill DeWit:
Oh yeah, you do.
Steven Butala:
I want to hear it. Let’s tell everybody.
Jill DeWit:
No, it’s okay.
Steven Butala:
Please. I want to know when I say no.
Jill DeWit:
No. It’s all right. This is not Jack and Jill counseling today. That’s another show. All right.
Steven Butala:
It’s exactly what this is.
Jill DeWit:
No.
Steven Butala:
All right.
Jill DeWit:
Okay.
Steven Butala:
Before we get into it, we already did, really?
Jill DeWit:
Kind of.
Steven Butala:
Let’s take a question posted by one of our members on the LandInvestors.com online community. It’s free.
Jill DeWit:
All right. Looks like a question with an answer here already.
Steven Butala:
The answer is kind of like, I put it in there for us, but it’s just a question.
Jill DeWit:
Oh, okay. Got it. Palani asks, Are you able to target a city or zip code in the dataset? I know you can do in Agent Pro 24/7 but I can’t find it in CoreLogic, which is Real Quest Pro. Any help would be so awesome.
Steven Butala:
So this is a kind of question that the answer is yes you can do anything with the data, anything. It takes sitting down and probably spending maybe a whole day. Now you have the time.
Jill DeWit:
That’s true.
Steven Butala:
The answer’s yes, Palani, you can target a zip code in a dataset.
Jill DeWit:
Yeah, it may be set up differently is what you’re trying to say. And they have different categories and different columns, but you can absolutely get in there and do the same thing with all three of them. So remember as a member you have CoreLogic, you have Agent Pro and you have Data Tree and all of them provide the same thing. They just delivered it in a different format.
Steven Butala:
And that’s the reason that Jill and I chose to be licensed providers for all three because there’s positive ways to look at data and negative ways through all three tools. And you can find whatever you want. If the assessor dataset from the County has it, it’s there.
Jill DeWit:
Yeah.
Steven Butala:
I think what you’re struggling with, and I’m not picking on you, I think a lot of people struggle with this. It’s the reason that I put this question in here is because data in this business is not something that, there’s not an easy button.
Jill DeWit:
That’s what I was just going to say. You’re like, I know I can go here and they have these pre formatted columns and I just pushed the button. Well that’s great. Slash however you’re pushing the button and you’re only getting the 10 things that they determined are the exact 10 things that you should have.
Steven Butala:
That’s exactly right, Jill.
Jill DeWit:
And so we prefer to give you everything and let you customize it to whatever you want. So maybe you want to search a zip code and you want to search 2.1 to 4.9 acres and you want to do this zoning and you want to add this category, all these little nuances we gave you everything. So you just have to dig. Not dig, but you just have to spend some time and get to know it.
Steven Butala:
Incidentally, these data companies, Real Quest and now Data Tree, Real Quest was the first one. Incidentally, these companies all were designed to be used on the intranet. Like I closed local area network, a closed land for title agents to uncover stuff, to try to find anything wrong with a clouded title with its [inaudible 00:06:32] title.
Steven Butala:
So that they could either close a deal or not close a deal. And so somebody in the early ’90s realized that this data is very important to people like us and it important to more specifically like oil and gas companies. So they’re set up that way. They’re set up to be… It’s difficult.
Jill DeWit:
Some of them are archaic.
Steven Butala:
If you look at-
Jill DeWit:
[crosstalk 00:06:59] look archaic.
Steven Butala:
If you look at Real Quest or even Data Tree and what it takes to actually go through and explore the data, it’s not for a regular person. It’s for us.
Jill DeWit:
It’s for us.
Steven Butala:
It’s for the people who understand data and and realize when you get out the other side, you have like magic.
Jill DeWit:
Here’s the good news. You don’t have to go to the assessor’s office and go flip through papers like the old days. So you’ve got it all at your fingertips. Just spend little time.
Steven Butala:
Today’s topic, why land sells so cheap during trying times? This is the meat of the show.
Jill DeWit:
I have three answers.
Steven Butala:
I have one answer.
Jill DeWit:
You have one answer?
Steven Butala:
Mm-hmm (affirmative).
Jill DeWit:
Okay.
Steven Butala:
Yours are better. I’m sure.
Jill DeWit:
Since you only have one. Do you want to give your one and then I’ll list my three?
Steven Butala:
Property sells cheap during trying times for the same reason that property sells cheap during a highfalutin, crazy times.
Jill DeWit:
What is it?
Steven Butala:
People need money.
Jill DeWit:
Oh, that’s one of mine. That’s hilarious. All right. You’re ready for my three?
Steven Butala:
This is fun today with you. If you’re listening to this-
Jill DeWit:
You’re like on a different planet today.
Steven Butala:
Yeah. I am. I’ve been cooped up in the house for like a couple weeks now. More than that. And I realized this morning for the first time, I think really, it’s going to be fine. We’re going to get through it. And I don’t think it’s actually going to change our lifestyle, not us specifically, but everybody. I just don’t think it’s going to change.
Jill DeWit:
I hope you’re right.
Steven Butala:
I think we’re going to be better. I think that this is just another thing you got to get through in life. You know?
Jill DeWit:
Right. I agree.
Steven Butala:
Like having a teenager-
Jill DeWit:
Or a husband. Just got to get through it. Like today, like this show. Just got to get through it. Yep. All right. Can we go to my three now?
Steven Butala:
I’ll save it for tomorrow, yeah.
Jill DeWit:
All right, here’s my three. So why is land so cheap during trying times? Not these trying times, but all trying times, well I have three reasons. One, I do think one of them is panic. When there’s a situation like this, people panic, and they look around and going, what do I really need? They want to get collect cash or whatever it is, liquidity and so they can make a move depending on what’s going to happen. And they look around and what do I need? I don’t need that land over there and this guy is offering to buy it from me, done, done and done.
Jill DeWit:
And sweetie, then they start looking around going, do you really need all that jewelry? Do you really need all that? Whatever, you know? I’m sure there’s stuff that’s going on like that. And I haven’t spent time on it. I should. I bet there’s some great deals on Offer Up and eBay.
Steven Butala:
There’s great deals on Offer Up.
Jill DeWit:
That’s it. For people right [crosstalk 00:09:59]-
Steven Butala:
I’ve been scouring that.
Jill DeWit:
There you go. Like I’m going to actually go look at it now. It’s probably some nice watches and things. I’m not kidding that you could contactless free purchase.
Steven Butala:
I have some questions about panicked because I’m not a panicky person.
Jill DeWit:
I know you’re not, neither am I and that’s good.
Steven Butala:
I know you’re not.
Jill DeWit:
We’re good.
Steven Butala:
So what happens when people panic? Like, because I would think-
Jill DeWit:
They make bad decisions.
Steven Butala:
Well I would think if you’re in a panic and your a regular person, you wouldn’t make any decisions. Like you would just sit down-
Jill DeWit:
Freeze.
Steven Butala:
Yeah.
Jill DeWit:
And like just sit there and throw your hands up.
Steven Butala:
I’m really asking you.
Jill DeWit:
No. Well I’m sure there’s a version of that. I think some people panic and you’re right. They just freeze and do nothing. They’re just stuck on the couch going, well that’s it. It’s over. Bring it.
Steven Butala:
We have to know that there’s a percentage-
Jill DeWit:
I’m going to get it.
Steven Butala:
A percentage of people are doing that.
Jill DeWit:
True.
Steven Butala:
And then another percentage I guess are selling their jewelry.
Jill DeWit:
Yeah. They’re just like making bad decisions and that’s what I think. I think there’s the two fold.
Steven Butala:
Can I ask you a personal question?
Jill DeWit:
Absolutely.
Steven Butala:
Is there something that some event that would happen that would cause you to panic? Because I don’t have one.
Jill DeWit:
I’m trying to think. No, I think because I’ve learned over the years, nothing good comes from that. Like-
Steven Butala:
Yeah.
Jill DeWit:
I learned a long time ago you can have your phone off and have dinner because if there’s an emergency it’s not going to probably change. The situation is not going to change that gravely while you’re having dinner kind of thing. And then another one is, I really think a lot of it for me was maybe my dad and being a pilot and a checklist for everything. Everything’s a checklist. And then I learned to fly. There’s a checklist. Engine fire has a checklist.
Steven Butala:
So you know how I said earlier, there’s like one or two things you do every day. I just want to kiss you on the lips. This is just one of those things right now.
Jill DeWit:
Thank you.
Steven Butala:
Checklist Jill.
Jill DeWit:
Thank you. That’s it. But you have to kind of, sometimes people have to train themselves, to go, all right, everybody stop. What’s the checklist for this? So we all make really good smart decisions, but not everybody does that or they haven’t developed that.
Steven Butala:
Yeah. And we should forget about buying and selling land. We should clone you. If we could clone you, we would be wealthy.
Jill DeWit:
Thank you. Thank you. But that’s one panic. So I think number two, I think, why is land so cheap right now? Well, to the obvious, like you said, they do need the money. There’s something going on. Well, they lost their job. They need the money. That’s kind of it. Or maybe they didn’t lose their job and they’re trying to build up a nest egg just to be safe. Then they-
Steven Butala:
This whole business model is based on a garage sale.
Jill DeWit:
Yeah.
Steven Butala:
At some point someone makes a decision, they have a bunch of land, they just don’t want it anymore. At some point, someone makes a decision to open their garage, put all their stuff out and just sell it for whatever offer. It’s not about price anymore. And so same thing with houses in all of it.
Steven Butala:
So our job is to reach these people at the right time. And that’s what we do with direct mail. This is show number what? 1200 or something.
Jill DeWit:
I don’t know.
Steven Butala:
Some number like that.
Jill DeWit:
Yeah, it’s true.
Steven Butala:
People ask us all the time, Jill and I, our friends. How the hell can you guys talk about buy and sell land?
Jill DeWit:
What do you have to talk about so much?
Steven Butala:
How can you possibly talk about this every day for a half hour?
Jill DeWit:
Exactly. Do you know what my third one is?
Steven Butala:
I’m sorry. I thought you were done, go ahead.
Jill DeWit:
[crosstalk 00:13:52] Okay. No, I wasn’t. Okay.
Steven Butala:
Go ahead.
Jill DeWit:
So my third one is, okay, so why is land cheap during trying times, one’s panic, twos, need the money and three is they simply don’t see the value. They think, so this is again, it’s why is it so cheap? Not why they’re selling, but why are they selling it so cheap? They don’t think it’s worth anything. Even especially now.They don’t see that, which is true, I can’t stand in line in the grocery store and say, “Hey, I’ll trade you two acres for your grocery cart.”
Steven Butala:
Jill. Where did that come from?
Jill DeWit:
I personally would take that deal and they don’t see that. I will wheel over my grocery cart and I will take your two acres. Could you imagine? We could be doing crazy stuff like that. I will give you, maybe that’s it. I will go grocery shopping for you and get you… You think I’m kidding?
Jill DeWit:
I will go to Sam’s club tomorrow. Get you load up and get you $1,000 worth of whatever you want in Sam’s Club, whether it’s toilet, paper towels, water, food, whatever. Put it on your porch. Walk away and you just hand me and I’ll take the deed that you leave out for me under the mat.
Steven Butala:
That’s the second time in the day that I want to kiss you on the lips like in a movie.
Jill DeWit:
Thank you. This is my new business model. Groceries for land. All right. We’re redoing our mailer. Instead of money, we’re going to barter. What would you like? That would work.
Steven Butala:
It would absolutely work. It would absolutely work.
Jill DeWit:
Yeah. There you go. You know what, actually we should crack open the safe. I don’t know if you want us to give up some silver or something, but for the right price I will give some… I’m going to make it my or the of me. It’s not going to be a big, maybe it is one big silver bar, but it’s for land, a big piece of land, but they don’t see the value. I think people’s decisions get goofed up in these times.
Steven Butala:
Reeling this back in on value.
Jill DeWit:
I love my business model.
Steven Butala:
I do too. I think you should try it.
Jill DeWit:
Yes.
Steven Butala:
How do you think people, regular people, people who have a job or whatever, perceive the value of their property? Whether it’s their personal house or whatever. Like they wake up today like I know what I do and I know it’s not normal. Like I obsess. Like if I have downtime, if I’m sitting in line somewhere ever, like in Costco, I don’t care what, I’m going to get on my phone, I’m going to look at real estate values where I’m standing. That’s just what I do. It’s my hobby. It’s my life. I don’t do it-
Jill DeWit:
You’re right with the obsess.
Steven Butala:
Somebody gets a letter about a piece of land that they never saw. Maybe they inherited or whatever. Do they care what the value is? How do they value that asset? Do they care?
Jill DeWit:
Yeah.
Steven Butala:
I’ve always wondered this.
Jill DeWit:
Do you know how they value it? Based on what their next door neighbor just sold their house for. That’s what they know.
Steven Butala:
Sally and John split up and Sally just sold a house for-
Jill DeWit:
And she got $500,000.
Steven Butala:
500,000?
Jill DeWit:
Yeah. So [crosstalk 00:16:52]-
Steven Butala:
So mines worth [crosstalk 00:16:56]-
Jill DeWit:
No, but I got a pool. So now mines worth 600,000.
Steven Butala:
So it’s stupid stuff like that. It’s like attributes. It’s like her sink sucks and my sinks better.
Jill DeWit:
Yeah. Because I just redid my kitchen so mine’s definitely worth more.
Steven Butala:
That’s ridiculous.
Jill DeWit:
I know.
Steven Butala:
Jill, does it really happen?
Jill DeWit:
Haven’t you heard people say that? You have to have heard people say that.
Steven Butala:
You silenced me.
Jill DeWit:
Oh, okay. I’ve heard many people say that.
Steven Butala:
Does it really go like that?
Jill DeWit:
Yeah. Well because you know what, because I’m talking to them. Especially like LA County, I know what the one next door went for and I know I’m zoned this, so I should get Y.
Steven Butala:
So forget looking at data or empirical data for actually looking at it like an adult.
Jill DeWit:
Correct.
Steven Butala:
And a person who graduated from high school with regular freaking math skills.
Jill DeWit:
And they hang on to the one number that they heard a couple of years ago. Because I just had that too.
Steven Butala:
Are you serious.
Jill DeWit:
I’m not kidding. I’ll tell you right now, for real, we sent an offer in LA County to buy a house for $650,000, right? So the woman emailed me back and said, “No, no, no, no, no. This is my parents’ house. We won’t take anything for less for 1.2.” So I go looking and all the comps I can find are $800,000. I’m like, where’s she getting this 1.2 number? Was this two years ago in the peak of it? And she’s hanging onto that number.
Jill DeWit:
I mean that’s legitimate real numbers that she gave me. I’m like, there’s no reality. And that’s the hard part is like there’s no way I’m going to convince her. She’s stuck on that 1.2 number. So congratulations mom and dad, you’re going to die in that house because I don’t think you’re ever going to get 1.2.
Steven Butala:
Let’s bear in mind that I used to have your job. So Jill and I joined forces around what, 10 or 12 years ago. So my reaction to the whole thing was do you want to sell it or not? I don’t care about your story or how you got the number you’re either going to sign it or you’re not. And I’m sure that I lost probably half the deals that I could have actually purchased. Because I didn’t embrace this or allow this kind of conversation.
Jill DeWit:
That’s okay. I still love you.
Steven Butala:
I’m not down on myself. It worked great.
Jill DeWit:
No, it’s totally fine.
Steven Butala:
I’m just saying how people come up… So I guess what I’m gathering is if somebody’s got a 40 acre property, if they live in Massachusetts and they have 40 acres in Nevada, they probably don’t have any sync emotion.
Jill DeWit:
They look at that differently. That’s a good point. So you want to end it on this?
Steven Butala:
I don’t want to end it. I think this is fascinating for me.
Jill DeWit:
Oh really? Please go along. Is this okay?
Steven Butala:
This is a house fascination.
Jill DeWit:
All right.
Steven Butala:
I’m fascinated and I’m sure that the people who are listening to this-
Jill DeWit:
But, they look at land differently.
Steven Butala:
Yeah. Go ahead.
Jill DeWit:
Isn’t that funny? They look at their house like, oh, I put all this physical work and do it. You know I laid that tile. You know what it is? I’m sure you’ve all heard this kind of thing-
Steven Butala:
So how does it work with 40 acres in Nevada though?
Jill DeWit:
They didn’t do anything to it. They don’t perceive it.
Steven Butala:
They didn’t touch it.
Jill DeWit:
They didn’t touch it.
Steven Butala:
They didn’t see it.
Jill DeWit:
But now some do. But they-
Steven Butala:
Oh my gosh, Jill.
Jill DeWit:
Hold on a moment because they-
Steven Butala:
You’re right.
Jill DeWit:
Because they think they know that the guy next door sold it to the new Amazon warehouse. So they think that they deserve that. Right? But they get it from somewhere. That’s what they heard. But they don’t see it the same as like their primary residence. Or their dreamy cabin. Have you seen the view?
Steven Butala:
Their sweat equity?
Jill DeWit:
Yes. I think so, but what’s interesting is in these trying times or any trying times, the first thing that’s going to go is, just get rid of a baby. It’s weird.
Steven Butala:
This is fascinating to me because we have friends who, and not just one set of friends, we have sets of friends who have put sweat equity into stuff and it just didn’t work.
Jill DeWit:
Right? Oh, it’s sad.
Steven Butala:
Houses, or companies, or whatever.
Jill DeWit:
Or a car.
Steven Butala:
Yeah a car’s a great example.
Jill DeWit:
A lot of people, it’s really easy to see cars like overpriced online.
Steven Butala:
You spend $100,000 cleaning up a car and it’s worth like 10.
Jill DeWit:
Yeah. It’s exactly right.
Steven Butala:
And then what? Like you hang your head and walk out of the garage and say, “I don’t know, it didn’t work.” No. You have to think about this stuff before.
Jill DeWit:
Yeah, that’s a good one.
Steven Butala:
I am not a victim to this problem.
Jill DeWit:
No you’re not.
Steven Butala:
Are you?
Jill DeWit:
I don’t think so.
Steven Butala:
I don’t think so either.
Jill DeWit:
No, no. You know, honestly, I know I’m not.
Steven Butala:
And I don’t think the people listening to this are.
Jill DeWit:
I know I’m not, because before I met you, I sold two houses and I did them quick. I mean within one was how many days? We closed in like 10 days. But each one it’s like within 24 or 36 hours there were offers, I accepted them and I was like, let’s just do it. Because I really wanted to sell. I wasn’t there to maximize price or make sure it goes to the right family and I can see their kids on the swing set. I didn’t do any of that. It’s like I did my best, I staged it well, I knew what to do. I said, all right, we’re selling, let’s do it. And that was it. I priced it hot. I had three offers to choose from each time I picked the cash one, I’m not nuts. And then that’s how we can close so fast and we’re done. So I know that’s not me. I’ve never been like that.
Steven Butala:
If this is the first show you’ve ever listened to or watched, this is not a normal show.
Jill DeWit:
It’s true.
Steven Butala:
Jill and I are having a little family meeting here.
Jill DeWit:
Thank you. But it was good. All right, 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. We are on the House Academy Show
Steven Butala:
Tomorrow, the episode on the House Academy Show is called proper deal etiquette during this virus crisis we’re in, you are not alone in your real estate ambition.
Jill DeWit:
I love it. Proper deal etiquette.
Steven Butala:
I think it should be called, get to know Jill.
Jill DeWit:
Oh.
Steven Butala:
That’s what the show’s like. And I love it.
Jill DeWit:
Okay. That’s very sweet of you. Cool. The Land Academy Show remains commercial free for you, our loyal listeners. So 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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