Are We Real Estate Sheep (LA 1223)
Are We Real Estate Sheep (LA 1179)
Transcript:
Steven Butala:
Steve and Jill here.
Jill Dewitt:
Hello.
Steven Butala:
Welcome to the Land Academy Show, entertaining real estate 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 are we real estate sheep?
Jill Dewitt:
I hope not. I know we’re not.
Steven Butala:
Do we just sit around and watch the news and let them tell us what to do? Let them tell us when we can go back to work or let them tell us what prices we can buy? Do we let real estate agents control our deals? Why is this any different? 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. I’m going to enjoy this.
Jill Dewitt:
See the inside of my lip? I Was bleeding a little bit there, holding back. Just kidding.
Steven Butala:
Oh, we’ll get to it.
Jill Dewitt:
Okay. Brandon, probably the same Brandon, wrote, “I finally got my first property through title and escrow. Title/escrow. I priced it at about 70% of the market, $20,000, and the market is $30,000’ish. Just wondering how long people wait on moving the price down to sell faster?” Okay, all right. He’s bought it, he put it up for sale. Okay, now we got it. You put up for sale at 70% of market value out there. Good deal. So everything else is selling around 30,000, Brandon priced his land property at $20,000. This all sounds good. So, now he’s going, “How long do I wait until I mark it down?” Not too fast, hold on. “I currently advertised on LandPin, Zillow, Craigslist, Instagram Boost, Facebook groups and Facebook Posts Boost.
Jill Dewitt:
I am getting interest, but nothing to even get excited about. One person visited the site and that was the best prospect. $18,000 is my double profit line. I bought it for nine. Because I made a mistake and underestimated the closing costs, it should’ve been closer to $16 or 17,000.” No problem.
Steven Butala:
You didn’t make a mistake.
Jill Dewitt:
No, yeah. “I just want to make sure I get out sooner than later and I don’t want to get caught with this property during a full real estate downturn. Thank you.” Well, first of all, don’t mark it down too fast because we’ve all talked to people who have these situations where, especially on our member calls, it comes up like, man, I just sold to the guy on Saturday, and then on Monday I had a full price offer. I had two of them or something like that. It’s like, yeah, that happens. Don’t worry about it. Move on. It’s okay.
Jill Dewitt:
And then, also, I question sometimes if you price it too low, that often triggers some things where people are going to go, “Why is it so low?” Even though you and I know it’s just as good at that $30,000 property, but I priced mine for $18, they’re going to go, why is that $12,000 less than everything else? What’s wrong with it? So you don’t want to send that message. The best thing you can do is just reach and reach and reach and now it should be even easier, which is great because a number of people that are online today versus six weeks ago is what? 60% more? That’s a lot of people.
Steven Butala:
Here’s what to remember during these times, and this is for houses and for land and for people who own manufacturing companies, and just about anybody who’s successful. These downturns, people want bargains. They’re looking for bargains, so if you present your property like it’s a bargain and it’s maybe a bargain caused by this virus or whatever else, it’s, you know, recession dejour. I don’t care what causes it next time or whatever. Last time the housing market caused the housing market, the recession, actually, which is really interesting because the housing market is a result of a healthcare problem worldwide now.
Steven Butala:
Last time the housing market caused the real estate recession, and so it’s very different. Anyway, that’s a different show. If you, Brandon, post your property and the title says, this is a super special price because we’re in a super special situation, you will sell it. That’s your new market. Your market is there are people, very wealthy people, cash wealthy, that are waiting to buy manufacturing companies right now at half price, houses at half price, huge pieces of land. If they perceive that it’s half price, all you got to do is buy it cheaper and sell it to them. You should find a group, a small, little group of people whatever market you’re in, and sell property to them because here’s what they don’t know, and you know how to send out mail and how to get real estate. You buy real estate for whatever reason.
Steven Butala:
I can say this with huge confidence. I’m qualified to say it and I’ll never understand it. Very wealthy people who have a lot of money to spend on devalued assets are so lazy and unwilling to learn how to send out mail, and they’re unwilling to hire somebody like Atlanta Academy or a house Academy member or people like us to pay to do it for them. They want the deal dumped in their lap, and they want to feel like it’s a lot cheaper than they could have got it four months ago.
Steven Butala:
We’ll be having this episode three years from now and we’re going to be saying, wow, it’s even cheaper than it was last month. So you’re doing everything right. Don’t give in. What I would do, and this is for you, Brandon, and everybody is find a small little group of people that have hoards of money in your market They probably already own a lot of real estate so they’re in. They’ve owned a set of LLCs or one or two LLCs. They already own houses or land in this area that you’re working. They’re going to buy your property.
Jill Dewitt:
Perfect. Thank you.
Steven Butala:
Today’s topic, are we real estate sheep? This is the meat of the show. Can people tell you what to do? Do you run your life based on the news events? No. You’re a Land Academy member. You never have. Do you listen to your wife? No. You do what you need to do.
Jill Dewitt:
I was waiting for that one, too. That’s what I was waiting for. Oh yes, sweetheart. What would you like me to do?
Steven Butala:
Do you listen to me? Never.
Jill Dewitt:
Hell, no.
Steven Butala:
We’re not sheep here.
Jill Dewitt:
Nope.
Steven Butala:
A few weeks from now or a month, maybe, hopefully less, we’re going to wake up in the morning and someone on the TV is going to say, Oh, I think it’s over. You can go out and, well, you can’t. You can go to the beach today. We’re going to let you go to the beach today. We’re not going to let you go to the restaurants yet.
Jill Dewitt:
Right. That’s true.
Steven Butala:
And then a week later you can only go to these restaurants and not these restaurants.
Jill Dewitt:
Right. You can sit two tables apart, and then one table apart and then.
Steven Butala:
I don’t know about you. People can’t tell me to do stuff like that. So am I going to go out and get arrested? No, but I’m just saying there’s an element of this that … Jill and I have tons of stories when this whole thing started about people telling us, specifically telling us, you guys are not standing six feet apart. Who said six feet’s good? Why isn’t it five feet? Why isn’t it twelve feet?
Jill Dewitt:
I agree. I personally have an issues with, come on. Are we really going to go out there and swim out and try to get the surfers in Malibu because they’re too close together accidentally? Trust me. They’re not trying to be on top of each other. If something happens. It’s nuts. Anyway.
Steven Butala:
Are we sheep? We’re not sheep. You wouldn’t be listening to this show or interested in buying and selling real estate or already doing it successfully if you were sheep. You do the same thing that you do with your boss. You listen to what the idiot says, you do half of it. You make it look like you’re a superstar and under your breath and to your coworkers just say, what a freaking idiot that guy is. It’s the same thing that’s going on now.
Jill Dewitt:
I don’t do that.
Steven Butala:
Not when we had jobs. Question everything is what I’m saying, and and half of this is probably true. Maybe less than half. Make sure that you win, though. You’re not sheep. You have to win, just like we have to win. Buy real estate super cheap and resell it. Use this to your advantage.
Jill Dewitt:
I have a question. Well that’s beautiful, Steven, but I was thinking this. This is why I thought the topic was going to be about real estate sheep. Letting the market tell us what we should buy and sell at. That’s where I was wondering you were going with that.
Steven Butala:
Oh, I would love for you to parlay it into that. That’s great.
Jill Dewitt:
That’s what I want to know because that’s not what we do. A lot of people follow that stuff and I think they’re nuts, and I hope that they look at things differently now and question everything. I still go buy the bottom line is the property is worth what someone’s willing to pay. I don’t care what an assessor says or the real estate agent.
Steven Butala:
What’s your reaction? You listener. Watcher. When an escrow agent says, Oh good, we just opened escrow. I need these following documents from you. I see you have an LLC. Here’s a list of stuff that I need. I need your articles of incorporation. I need a letter of good standing. I need a note from your mom, and I need a piece of your favorite pair of jeans. What do you say?
Steven Butala:
You know, this is a rated G show, so I can’t make the hand gesture that I typically make during the live events and on the on the Wednesday and Thursday calls. No. What you say is, excuse me, 800 year old escrow agent. You must be over the age of 90 because this is just not how you do real estate deal anymore. And by the way, I’m sure that you’re asking me for the stuff you’re going to prorate the taxes wrong because the last 42 people before you did it wrong, too.
Steven Butala:
No, you’d question everything. You’re not a sheep. You’re not going to let some escrow agent tell you what to do and what documents you need or don’t need. Same thing with real estate agents. The real estate agent will sabotage a deal faster than anybody possible if you let them. They’re going to make us sign it an inch worth of documents that have nothing to do with your real estate deal because you don’t have a lender. It’s your rules, not their rules. Am I ranting too much here?
Jill Dewitt:
No. I was writing down the bleep time so you don’t have to go back. This is helping you out.
Steven Butala:
I think I’ll cut it together.
Jill Dewitt:
Okay. That was funny.
Steven Butala:
This is a rant because they can’t tell us what to do. They can’t tell us that a virus is going to stop us from doing anything. So, yeah. Are we all staying at home? Okay, great. Fortunately for us, the people that are listening to this, we’re not going to be clobbered over the head. They’re not telling us that we can’t make money because that’s really what they’re telling most of the world. Most of the world who have to go to a location to work, I feel for them. They’re being told they can’t make money. That’s the most emasculating thing for a man that there ever was, is to be told by somebody on TV that they can’t provide for their family.
Steven Butala:
It’s terrible. Don’t be sheep. We’re not sheep.
Jill Dewitt:
I’m letting this be your show. You have a lot to say and it’s good.
Steven Butala:
It really makes me angry. It’s not lack of compassion for people who contract this thing and ultimately it causes a mortal damage. It’s not lack of compassion there. I do have a lot of compassion for that, but I really wonder how far off, by the end of this thing is, the regular flu numbers are going to be from just the data, how far off it’s going to be. I hope it doesn’t get completely out of control and there’s Zombies. I hope that doesn’t happen, but I just think that it’s really a lot more damage than it could.
Steven Butala:
And you know, here’s a truth. I also think the politicians are in a bad spot. I don’t care if you’re right or left. I don’t care about right or left at all. Any politician’s in a tough spot. They’re looking at themselves in the mirror saying, “I don’t necessarily believe that we need to shut the world down economically, but I have a choice here as a politician I can stand up and say we’re not going to do it but it’s political suicide.” That’s the end of their career because no matter how you slice it, there’s lack of compassion.
Steven Butala:
It comes off as you just don’t care. You care about money more than people.
Jill Dewitt:
When making sure they can put food on the table is caring about people.
Steven Butala:
I agree, Jill. I mean, Jill and I are in this. She’s letting me dig my grave here.
Jill Dewitt:
Mm-hmm (affirmative).
Steven Butala:
But the truth is we’re pretty much on the same page about this. All I’m saying is this.
Jill Dewitt:
Question everything. I like it. We’ll leave it at that.
Steven Butala:
Question everything. Don’t be sheep. Question real estate agents. Question all of it. Question lenders. we’re in a very unique situation because I keep reading, and I’ve never been in a situation where lenders are going to stop lending. That happened a little bit last time. Not like this. Unemployment’s at 30%.
Jill Dewitt:
Here’s what I think. For my ending thing, I think the cream is going to rise to the top. The number of people that are now out of work and unemployed and looking for work, I’ll tell you right now, we’ve actually hired a few positions. I got some rock stars and they’re showing up. It’s really only the good people that show up and are trying to do this and that’s who I want. So I’m kind of excited about how this is shaking things up a little bit. I’m really sad for for, I don’t want any business to not make it, but if you, how do I not be, I’m trying to really be nice about this.
Steven Butala:
I’ve always said this and I always will. There’s no real environment that I’m aware of where less choices are better. The more choices you have about everything, it’s not a right or left thing, I don’t care. The more choices we have the better, and right now they’re taking a lot of choices away. They’re taking a lot of our choices away. We’re very lucky.
Steven Butala:
The people who are listening and watching this, the vast majority I’m sure are lucky because we have already set down a path of making our own lives and chose to be responsible for ourselves and push out things like real estate agents and people that you don’t need or bosses or you know, paychecks. We’ve already made a choice to do that, so we’re going to survive this. There’s a ton of people that that can’t and won’t. They’re not bad or good, it’s just they don’t have a choice and that’s not good.
Jill Dewitt:
Happy you could join us today. The Land Academy show remains commercial-free. Oops. Excuse me. Happy you could join us today. Every Monday, Wednesday, and Friday you can find us here on the Land Academy Show. Tuesdays and Thursdays we are over on the House Academy Show.
Steven Butala:
Next week, join us on the Academy Show for another interesting episode. You are not alone in your real estate ambition. It wasn’t too much. Think it was too much?
Jill Dewitt:
Both our ratings will tell. I’m just kidding.
Steven Butala:
No, I don’t think you are. I mean, everybody’s got a lot to say about this. Plus everybody’s cooped up.
Jill Dewitt:
We’re all on edge. You know what? Honestly, I want to hear everyone’s opinion. I really do. I hope everybody’s just starts saying what they feel more often, and I think this is good with the don’t be sheep kind of thing. It doesn’t matter if I agree with it or not. You’re entitled to your opinion.
Steven Butala:
That’s right.
Jill Dewitt:
And that’s it.
Steven Butala:
Don’t let anybody push you around.
Jill Dewitt:
Exactly. We should all respect each other and work together and move forward together.
Steven Butala:
Just because they’re saying it on TV doesn’t mean it’s real.
Jill Dewitt:
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.
Steven Butala:
We are Steve and Jill.
Jill Dewitt:
We are Steve and Jill.
Steven Butala:
Information.
Jill Dewitt:
And inspiration.
Jill Dewitt:
To buy undervalued property.
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