What is Really Possible Flipping Land (LA 1193)

What is Really Possible Flipping Land (LA 1193)

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 I’m Jill DeWit, broadcasting from sunny, Southern California.

Steven Butala:
Today Jill and I talk about what’s really possible flipping land.

Jill DeWit:
Oh my goodness.

Steven Butala:
Here’s a spoiler alert.

Jill DeWit:
Yep.

Steven Butala:
It’s just about literally infinite.

Jill DeWit:
I know.

Steven Butala:
Not literally infinite. It can get huge, fast.

Jill DeWit:
This time. You know what? This is… since we started doing deals together in the last X years, this is probably some of the best deals I’ve ever seen.

Steven Butala:
Me too. It’s the best deals I’ve ever seen in my whole, entire career. We will clear, after tax between five and 10 million bucks in the next 36 months. That’s what’s possible.

Jill DeWit:
Yep. Well now you gave it away.

Steven Butala:
That’s with us and all these other companies that we have.

Jill DeWit:
But wait. We’ll talk more.

Steven Butala:
But do you need that much? No.

Jill DeWit:
No.

Steven Butala:
What’s important is you establish a system and practice at this stuff if you’re brand new. And learn, because it’s a great environment to learn.

Jill DeWit:
Exactly.

Steven Butala:
It’s more fun to learn how to fish in a pond that’s just packed full of fish, where you just throw the thing in there and reel it in and throw it back and reel it in and throw it back and reel it in.

Steven Butala:
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 DeWit:
Jaycee wrote, “Hello. I’ve been listening to Steve and Jill’s podcast nonstop since discovering Land Academy.”

Steven Butala:
That’s too bad.

Jill DeWit:
That’s 20 however many hours or weeks you’ll never get back, Jaycee. I love it. “I noticed that in the past couple of weeks, Steve and Jill have been talking about acquiring as much land as possible.” Yep. “In the current economic downturn.” Correct. “I haven’t heard much comment about how well sales are going.” There’s a reason why. I assume that-

Steven Butala:
Is there?

Jill DeWit:
Yeah, because there’s not much to talk about. That’s my whole point. “I assume they know their purchases will eventually sell, so they’re not concerned with how fast, however being new to this and being concerned with cashflow issues, I’m wondering how long I should expect to sit on a property? A properly priced new land acquisition, like one to 10 acres. I know this varies by location and in a huge host of other factors, but in general, for those have been… who have favorite counties in which they have been buying and selling prior to the downturn, how much of an increase/decrease in buying are you doing and how much of an increase/decrease in sales frequency are you seeing your counties compared to pre-downturn? Thank you.”

Jill DeWit:
Well I could just go back to the… I’m just thinking about the podcast that we did a couple of weeks ago with Aaron and Liz English. North of us here. They have two businesses. One’s a nursery and one is this. And Aaron said, “Well, I guess we’ll sleep next year. Or I’ll sleep in a few years. Sleep is not important now because both businesses are on fire.”

Jill DeWit:
The reason I’m not bringing up sales so much right now because I’m buying them so cheap. It’s like, this is just nuts. And they are selling. What are the sweet spots, I think you’re asking? There’s a point where it’s just like a house. We all know the middle income market’s going to move faster than the luxury market. So dreaming up whatever product it is. It’s kind of the same with land. There is a thing North of X thousands or X million, where you may see a little bit of a slower turnaround. I’m not in those markets right now. I’m really focused on the hot ones. Everything I’m doing is just moving. Anything I pick up… I’m going to give numbers. You’re looking at me.

Steven Butala:
Yeah.

Jill DeWit:
Okay. You’re looking at me funny. I’m like, “What’s that look? Am I in trouble again?”

Steven Butala:
No, Jill’s finally awake. It’s good.

Jill DeWit:
Thanks a lot. That’s good. Anything I pick up that I can buy and sell. How about I say, my sales price is between, I’m going to say $10000 to $150000, easy, quick, fast sales. I’m not worried, period. What would you like to add?

Steven Butala:
When you look back on your life, there’s usually a few moments where you look back and you say, “Wow. You know, that worked out great.” It usually does not involve a wedding. One of those moments for me was when Jill and I, and it happened on accident, became business partners.

Jill DeWit:
Thank you.

Steven Butala:
You know, we were social partners first. And so what ended up happening-

Jill DeWit:
Social partners. That’s code for something else?

Steven Butala:
That’s as nice as I could say it.

Jill DeWit:
We were social partners. I’m sorry, I’m going to use that next time. “So how do you guys know each other? Well, we were social partners first.”

Steven Butala:
Well, what ended up for me is that I was in the business already. I was doing a lot of… I was doing everything with a bunch of employees and half of the stuff, I hated.

Jill DeWit:
We swapped pillows.

Steven Butala:
And so Jill comes along and it just magically the stuff that I hated turned out to be the stuff she loves, which is sales. And so it quadrupled what I was doing already. And to her, it was just second nature. It’s second nature for Jill to pick up the phone. It’s second nature for her to post property everywhere, or instruct our team now how to do it. This person’s asking about, “Okay, you guys talk about acquisitions all the time.” In fact, I say that in all of our programs. 90% of our education, when it comes for the real estate education, is all about acquisitions. Why? Because sales have involve exactly two things. Pricing it right. Which means you have to buy it right, so it’s really acquisitions. And posting it everywhere and having a dynamic personality, like Jill, pounding on the phone and saying, “Yeah, of course you want to buy this property from me.” Not, “Yeah. It’s a piece of property.”

Jill DeWit:
I was going to say, yeah let’s be honest. I mean, there is more to it. It’s not just one… it’s not just a bunch of pretty pictures.

Steven Butala:
Well that’s how I look at… I look at sales like get away, get away.

Jill DeWit:
I know, because you don’t like it.

Steven Butala:
But you bring this, breed this new thing of life into it. Sales better be part of your plan. For people like me I got away with it because I was buying it so cheap. For a long time and I did really well. Then it was times four with her.

Jill DeWit:
Yeah, because it could have gone faster. It could’ve gone easier. It could have even meant a higher outcome too. To be honest with you on the sales part of it, what’s so easy, the easiest thing I can say for you is all the things that you know, and all the things that you’ve learned from the program, just add in remembering the excitement that you felt when you bought it. That’s it. And I always go back to that and I tell my team that. I’m telling you and the planet that, when the person calls or the person emails you, however they reach out to you with ever question, kind of remember, “Oh my God, yeah. That’s someone with the… had that gorgeous view, ding, ding.” And it’s going to come out in everything that you do. It’s just going to… and that’s how they feel. And that’s why they just go so fast. I love it. We’re having a huge, to finalize the question, what’s going on now is it’s going faster and easier.

Steven Butala:
On both sides, acquisitions and sales. People are freaked out, they want to live in the country.

Jill DeWit:
Thank you, Jaycee. That’s a good question too.

Steven Butala:
Today’s topic, what’s really possible flipping land. This is the meat of the show.

Jill DeWit:
Wow.

Steven Butala:
I just was pulling questions off of landinvestors.com to record today, and I remember this thing I wrote called the 24 Month Millionaire. This is a lot of years ago. We had the show at the time. I think it was audio only, it wasn’t video. And so I said, “You know what? This is so popular that I probably should write a book.” And I never, but the structure’s all there. And here’s the whole thing. Because this is what’s really possible flipping land. There was a time in my land career, before Jill where all I would buy, because we were real short staff, coming off of the last recession. I looked back at all the deals we did. And I’m like, “Jill’s just looked at her watch. She’s like, ‘Oh, I wonder how long this is going to take?'”

Jill DeWit:
Oh you’re so funny.

Steven Butala:
Tell me you didn’t.

Jill DeWit:
Yeah I did. Actually I did… I love my watch. I have a really good, new watch. I’ll talk about that later. I’ll do that-

Steven Butala:
No, let’s see. You know what? Now’s the time for this.

Jill DeWit:
I should do this.

Steven Butala:
Because these are land people, they’re going to love this stuff.

Jill DeWit:
They are land people. You guys are going to love what I got guys. Guys, I got-

Steven Butala:
It’s a Garmin watch.

Jill DeWit:
I got the Garmin watch.

Steven Butala:
The GPS.

Jill DeWit:
When we’re going out looking, which we never go look at properties, but just, we did the other weekend. I mean, if you travel around, a lot of people do travel and look it off properties. I can put GPS coordinates in my watch and it’ll take me right there. I can track my elevation. I can track my route. I can do all kinds of fun stuff. I’m just in love with my toy.

Steven Butala:
You take, before Jill and it was a two man operation. Me and my assistant. And I would buy a 40 acre property, send a bunch of mail out, just like we do now. Buy a 40 acre property for four grand in one of four states. And then resell it on the internet for eight. And then I would take that eight and buy two. Then it became 16, 32.

Steven Butala:
You do the math. You have a million bucks in the bank around month 12 or 13, if you can sell. Depending on how fast you can sell them and how… you’re only dealing with one product, so it’s not hard. And Jill and I do this over and over and over again. Not necessarily with just 40 acre properties. The product types dramatically change. But you still can do it with that. If you just focused on that. Right now, we’re buying drive-up access, escape, virus escape properties. And they’re a lot more profitable, dollar wise and percentage wise. We do a ton of deals. What I’m saying is, what’s possible-

Jill DeWit:
You too can be 6000 feet away from somebody else. From a person.

Steven Butala:
What I’m saying is, what’s possible in flipping land is, it’s just limitless. Compared to other types of real estate, you never really have to leave your desk if you have the system all in place. It’s all about putting systems in place and doing some math and getting a partner. Whether they’re another person in the group that lives in a different state or in our situation, we happened to live together. Getting a partner to do stuff that you don’t want to do. Not in the beginning. You’re going to have to suffer through that for a couple of years, at least. But it’s limitless.

Jill DeWit:
I’m glad you brought up the 24 Month Millionaire because that was a good thing that you wrote. It’s in the dashboard, I think for Land Academy members to go look. You wrote about it and then you put it, you’ve actually put in a spreadsheet, which is really great for people to sit there and calculate it. What this is is, “All right in 24 months, where do I want to be? Do I want to have one million or do I want to have three million?”

Jill DeWit:
Fine. And then you work it backwards. “Okay, this is the number of deals I have to do.” Then you can tweak it to whatever your threshold is. Like, “I’m only comfortable doing deals up to this dollar amount.” Fine. Then you got to do more deals. If you’re comfortable or that dollar amount, maybe your sweet spot’s $100000. All right, now you’re doing less deals. And you just work it backwards.

Jill DeWit:
Especially if you’re doing… if you set out, and we know people that do it. Say, “I am not doing a deal unless I make $100000 a deal.” It might be one a month and that’s all your efforts. Well, congratulations. You’re going to have however many, $2.5 million almost in 24 months, if that is your plan. And it’s not crazy. I love it. What’s happening right now, what’s really possible flipping land, I just wrote down my three little notes are OMG purchase prices. That’s what I’m looking at. I’m like, “What just happened?”

Steven Butala:
That’s unique to right now.

Jill DeWit:
Yeah. I’m getting… and I’m telling everybody, “Please, go into it like you’re… ” Every deal I’m going into it like I’m trying to make this deal fail. I’m going to throw out some ridiculous offer price. And if they say it, oh you better believe. It’s a home run time. It’s a grand slam, home run kind of thing. I got to get this deal. I know what’s possible with this.

Jill DeWit:
If you’re… it’s great too. There’s so much social media, not just on our Land Investors online community, but if you go into social media and look at all of our stuff. We have a couple of Facebook groups. They’re really easy to find. And see the numbers that our people are posting. It’s great. And it’s awesome. And they’re… it’s so sweet. They’re showing checks. They’re taking pictures of checks going to the bank and they’re showing pictures of their bank deposit amounts. It’s just fantastic. All I have to say to, if you’re like, “Alright, really?” If you’re really still wondering, I say try one. And don’t rush. What I want you to do right now is don’t rush into anything. Don’t pick your first deal. Really spend some time on it.

Steven Butala:
Go on a couple of dates, man.

Jill DeWit:
You know, right. Go for the home run. Go on a couple of dates. You’re cute.

Steven Butala:
Believe it or not, flipping land seems like this tiny little niche. Well, there’s a lot, a million little subsets of that niche even. I see new people. There are specifically some people right now in our group that joined, that they’re getting real distracted. I just mentioned that 40 acre model. That’s an example of really setting out, looking at one size of property, doing a very specific mailer, albeit four States for size and a revenue thing there.

Steven Butala:
Everybody in the advanced land group as one kind of business model. The most popular one is as follows. I want to do one deal a month. This is a real story from a real person. I only ever wanted to do one deal a month. It’s going to be a hell of a deal. I’m going to do 12 deals a year, not 13, not 10. I’m going to do 12 deals a year and I need to make $100000 a deal.

Steven Butala:
I’m going to go look at every single property. I’m going to walk every single property. I’m going to work with a local real estate agent. I’m happily going to pay that person 10% to sell the property and represent me the way I think I should be represented. In fact, I’m going to use that real estate agent to help me, tell me where to send mail the next time. I’m going to enjoy my life. I’m going to work for like five hours a week. And that’s what he does. And he makes a million and a half dollars a year. Is his way better than my 24 Month Millionaire way? No. I mean, for him it is. For me, I can’t do that. I can’t sit still. I got to make more money than that. We’ve got to start companies. There’s all kinds of crazy stuff that goes on. I drive everybody nuts in my whole life.

Jill DeWit:
That’s what happens. Once you get the taste of it and you get going and you’re like, “Well then, shoot. I can do two a month. All right now I can do four month. Whoops.”

Steven Butala:
But you know what he doesn’t do? I see a lot of new people do this and I did this when I was new. He’ll get a call from somebody that received a mailer that says I’m a buyer. I own a ton of property. And thanks for sending me a letter. I would like to… I really would like to set up a system. Bap, bap, bap, bap, bap, bap, bap, bap, bap. And you know what he says? “No thanks. Not interested. Good luck.” He does one thing. Picks up the phone, buys property real cheap, shoves it to the real estate agent.

Jill DeWit:
Thank you.

Steven Butala:
You can’t… you have to stay focused. What’s really possible in flipping land is the point. Anything’s possible, but you have to be so focused and organized. That’s the real variable. The real estate’s not the variable.

Jill DeWit:
That’s true. Happy you could join us today. Every Monday, Wednesday, and Friday, you could find us on The Land Academy Show, which is where we are now. Tuesdays and Thursdays, we’re over on The House Academy Show.

Steven Butala:
Tomorrow the episode on The House Academy Show is called five datasets or offer campaigns work. You are not alone in your real estate ambition. Tell us about this watch.

Jill DeWit:
I love my watch.

Steven Butala:
So it’s Garmin. You know, the company that makes the GPS units. It ties into your phone and it’s amazing apps. It’s limitless.

Jill DeWit:
Well, it ties into my phone. It ties into if I have a separate GPS unit. I can set up ways to communicate if I’m somewhere. You could… it’s just insane. I love it. I’m just, I’m not even a week into it and I’m still learning all this stuff. Look, I’ve got my altimeter here, in case you needed to know.

Steven Butala:
What is our altitude?

Jill DeWit:
47 feet.

Steven Butala:
It seems like it’d be less.

Jill DeWit:
It seems like it would but based on where we are and stuff. But it’s also… okay let me tell you why. This altimeter is going based on map. Where I’m sitting right now on basically a sectional map. Now, if I really wanted to have it calculate and do the GPS thing, I’ve got to get the… I have to pay for satellite, which I could. And it’ll make it really-

Steven Butala:
So the center of the section we’re in is probably 47 feet.

Jill DeWit:
Actually the spot. Technically this spot. When the map was created, this spot was at 47 feet above sea level. I could recalibrate that if I want to, but I haven’t dug into my watch that far yet. So that’s that. What else do you want to know? My steps today? I’ve got the weather.

Steven Butala:
Well I just see the results.

Jill DeWit:
Barometric pressure.

Steven Butala:
Because believe it, the tech had one. In the group, she’s the technical… she’s a pilot. So she’s got… there’s screws loose up there.

Jill DeWit:
You’re the data guy, but I love this stuff.

Steven Butala:
But I’ll tell you, we went to go look at a piece of property. A pretty rural piece of property. And she did something with her watch and it like it, it made a video of where we went. It was really cool. All the pictures we took along the way. The video stopped. What’s the name of that app?

Jill DeWit:
Relive.

Steven Butala:
Relive. R-E-L-I-V-E. Check it out.

Jill DeWit:
I think I put it on social media. If not, I will. I’ll make more. I don’t know if that was… that was my first test. It’ll get better. I promise. I’ll make some more good stuff, it’s cool. The Land Academy Show remains commercial free for you our loyal listeners. So wherever you’re watching, wherever you’re listening, please subscribe and rate us there. We are Steve and Jill.

Steven Butala:
We are Steve and Jill. Information.

Jill DeWit:
And inspiration.

Steven Butala:
To buy undervalued property.

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