How One Land Academy Member Nets $75,000 per Month (LA 1251)
How One Land Academy Member Nets $75,000 per Month (LA 1251)
Transcript:
Steve and Jill here.
Hello.
Welcome to the Land Academy Show: Entertaining Land Investment Talk. I’m Steven Jack Butala.
And I’m Jill DeWit broadcasting from not so sunny Southern California.
Today Jill and I talk about how one Land Academy member nets 75000 bucks a month.
You know, I would first like to start with what we just talked about 30 seconds before we rolled. It’s a blustery day. You don’t like the sweatshirt look?
Oh, Jill, you don’t have to explain. You of all people do not have to explain one thing to like anybody on this planet-
I like my little-
Least of all-
Cozy sweatshirt.
Me.
Well, here’s the thing [crosstalk 00:00:40]
I was just asking you about what it’s all about.
Well, I’m wearing a sweatshirt because it’s a cold day, and I like to be all comfy in a sweatshirt, however, you could still say I have a butt and a waist because I’m wearing the right jeans, I hope.
You have a butt and a waist?
Yes. You can still see it. That’s the thing if you wear … What’s really bad is if you wear a long sweatshirt, or a long sweater, and then like no one can see anything. You’re like a big ball of fluff, and then like little legs stick out like leggings. That I don’t like that look, and I won’t do that look.
Like you just lose all shape?
Yes.
These are things that men have … It’s never crossed a man’s mind.
Cinder block on sticks don’t want that look. Anyway.
Oh my gosh. How we veer so far from land so quickly.
Well, you know.
Anyway. This topic today, very briefly, this is a real story, we’re not going to use any names or locations or any of that stuff, about a member that we have who was actually at the live event, and a pretty lengthy presentation about-
Oh, great. Now, you’re narrowing it down.
His business model. And the reason that I’m bringing it up today is because no ones forgotten it. It’s constantly this undertone of-
True.
“Well, I want to be like X. I need to do more like X. Member X has all this figured out.” So, I want to kind of get into this, and figure out if it’s actually a unicorn, what’s real about it, what’s unreal about it. I mean, and I’ll tell you it’s 80% positive, and we’ll talk about the positive and negatives, but we still have to do deals. It’s not like you’re choosing to do … I’ll describe his business model in great detail.
I’m sure you will.
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.
Aroldo … I can never pronounce this name, I’m sorry.
You got it.
Aroldo asks, “For our first mailer should we keep the letter exactly as the download on Offers2Owners? I think it’s all great especially for the sentence that says, ‘We are partners with landstay.com who have been in business for 20 plus years, and have successfully completed 10s of thousands of purchases like this one.’ I think that would help us with credibility. My gut just tells me to keep it simple and to just send it as it is to make it easy on myself. Any thoughts?”
Look at that. Well, I see one of our members on here already weighed in. Member and moderator Kevin said, “Aroldo leave it the way it is until you know enough to change for some reason. In three years I’ve only made a couple of very minor changes.”
There you go. There’s something to be said with aligning yourself. Well, A: Transparency. Number one, you never want to say it’s you if it’s not really you, and if you really are aligned with us, and partner with us, and you’re in Land Academy, which you are, that’s true too. But it helps to have that credibility for people to look you up, and see who you are. It still happens.
Now and then I get phone calls or text messengers or even social media people reach out to me from tracking members down to us, and they have said … And they see us as a credible source, and they say something like this, “Hi, you don’t know me. I got a letter from x, y, z individual. This is his company name. He says he’s a part of Land Academy. Is that true? Can I trust this person?” Of to which I do check, and make sure I do know the person, and they are in our group, and I’ve never had it not be the truth, and I’m happy to fire back with, “Heck yes. This is part of our group. I’m sure it’s a solid offer, and I wish you all the best.”
Yeah. This person is very prevalent on … They’re a new member, and they’re very prevalent on Land Investors asking a lot of questions, and working their way-
That’s good.
This is what I would recommend to any new member working their way through the steps of making sure this succeeds. And this question is one of many that he’s asking, and I think it’s a great question. It comes up every … Over the years this question has come up pretty consistently, and I know the person that runs Offers2Owners answers it all the time. The mailer template is sitting there for everyone to use, do I change it and make it my own, or do I use it exactly as it is? So, as Kevin, our moderator who’s incredibly successful, he’s an advanced member in our group said, “I haven’t changed it very much at all.”
So, I think you should approach this whole model as do it Steve and Jill’s way until I can prove it to myself, if you need to do that, and then kind of make it my own. So, I wouldn’t change too much about what we suggest in the beginning. Let’s say the first 10 deals. But if this is for you, if this is a business model that was made for you, you’re going to find out pretty fast, and you’re going to start making a few little tweaks and changes to make it your own.
It’s actually a pretty appropriate question for today because that’s what this is about. This person that we had, this member, I’ll just say it … Today’s topic how one Land Academy member net 75000 bucks a month. This is the meat of the show.
During our most recent live event we had several advanced members speak about their experiences with Land Academy, and how they’ve made it their own, and why they’re in advanced group, and the good, the bad, and all the other stuff that goes on with it. And one member in particular stood up and said something I’ve never heard any member really allude to in any way, because it’s not part of my like entrepreneurial makeup. I stopped what I was doing and listened pretty hard core. He said, “I do one deal a month, and I net between 50 and 100 thousand dollars a month. So, I make sure I make between half a million dollars and a million dollars a year, and that’s it. I’m done. I’ve been doing it for at least a year. I got to quit my job last year, and I’m moving forward, and I don’t have any intention of going from one deal a month to two deals a month. I’m done.” And that goes against every single thing I’ve ever learned in school, everything that’s in my soul about growing and being an entrepreneur, and moving forward.
But we’re still here, however months it is later, talking about it, and people still bring that up. Young members hear about this because we talked about it on the show, and because he’s a semi vocal person in our advanced group, and shows up on the Thursday calls most of the time, or at least half of the time, and he’s stuck with it. He hasn’t moved from that. And so, it just intrigues.
So, I’m going to explain how and why he does this. This is just really intriguing to people. It’s not so much intriguing to me because I know how he does it, and I get it, and this is part of what we do. We actually have a line of business that does this. It makes 75 to 100 thousand bucks per deal per month, and that’s fine, but I just can’t stop there.
I know you can’t, and that’s something that we’re working through together. I want to say it’s really you have a lot of choices. For me, is that all you want to do? There’s nothing wrong with that, and that’s for a lot of our people. It’s a lot of work whether you’re doing one big deal, or several smaller deals because those one big deals might need more involvement. There might be brokers involved because they’re bigger transactions. It might be a different property type that you’re learning about the area. It might be an in full lot where you’re dealing with finding the right buyer, and builders in the area, and you have a substantial buyers list to make those happen. It’s just whatever you choose.
So, first you choose … I look at it this way: How hard do I want to work, and how much money do I want to make? That, for me, is what … I mean, once you figure that out then you back it into I don’t want to work that hard, or I do want to work that hard. And, honestly, I think doing more smaller deals sometimes, for me, is easier because I’m not so worried about deals. I can just power through, get them in the system, not think about it, make good money.
You’re looking at me like I’m nuts.
I’m just waiting for you to end spectacularly. I don’t know. Sometimes I don’t know when it ends.
Oh, thanks. That’s a whole nother conversation.
This guy makes it sound easy-
True.
That’s my whole point to all of this. Is it a unicorn? Can it exist? Can you actually easily do this, and kind of just chill out? I think a lot of people … Or some of the motivation for people to get into this business, which is fine, is to slow down not have a boss, and manage your own time. And he’s certainly done all of those things. So have we. So have the vast majority of the people in Land Academy that are successful. But I think it gets mistaken for, “Well, his way is better and easier.” And it’s not. He’s got to probably run through five disappointments to get one good deal done. He doesn’t talk about this stuff, and neither do we. He’s got to read I don’t know how many purchase agreements, and start red lining stuff wherever he needs to, and then eventually it’s going to kill deals. I know this from experience.
So, my point is if you’re listening to this and thinking, “Well, I want to adopt this guys model.” Like so many people since the live event just know the truth. That’s my whole point. And here’s the truth: He has to go through at least five to eight deals before he lands that one that nets 75 to whatever, 50 to 100 grand. There’s going to be all these deals have the same potential issues, and you have to go through the same potential due diligence. He’s just chosen, for whatever, to hit a triple every time he’s up to bat, and then strike out probably four other times at bat.
So, I don’t want to … Ever since Jill and I started Land Academy I’m very, very cautious about trying to make this sound it was too easy, and too simple. It’s a lot of work. He’s not sitting around doing nothing. In fact, in this model I would bet, I haven’t asked him this, he’s probably dealing with a lot of not rejection, but a lot of failed deals to get to that triple.
Exactly.
I mean, you’re on the front lines every day. What do you think of this business model?
I hate passing on what I think are good deals to hang out for that, like you said,-
Me too.
The unicorn-
Me too.
That’s where I have a little bit of difficulty. So, I would just be … And that’s how we roll, I pull the trigger. If it’s a good deal I pull the trigger. I don’t think about it.
Yeah. So, I think it’s a great business model. We have a business model like that that functions pretty much. It’s not so much 75000 it’s closer to 50000 a month, and that’s fine. But I know how much work goes into it. We have full-time staff people who report to Jill to get these deals purchased and resold. And this guy doesn’t. He’s a one man show. Doesn’t even have an assistant, and that’s part of his whole deal is to keep his costs as close to zero as possible. And just really spend money on data, and mail, and then he’s a real systems guy. So, he’s got somebody else answering his phone overseas I think, or-
PATLive.
Is it PATLive?
Oh, yeah. I’m sure it’s PATLive.
And so, he’s outsourced some of that stuff, but the actual deals themselves he does them himself.
It’s a little bit scary because I remember talking to him about the money that he spends in the front end on that deal. It works out every time, but there’s a lot of money that goes into the phone calls, and the mail to get that one, and there’s more juice there. There could be more deals.
And this is my final point on it: The thing that concerns me the most about this business model … And I’m not knocking it because if there’s one person in our group who’s doing it, there’s probably 12 we don’t know about at least. I say our way is to get like we buy and sell probably at least 30 properties a month that are pretty low end properties where we double our money on the internet whether it’s through social media marketing, or Ebay, or some venue like that. And so, that’s very profitable for us, and very easy, and it’s in a system, and we go back to the same place and buy these properties that’s one of like maybe 12 places all over the country and resell them. So, at least I know there’s food on the table, and everybody’s paycheck clears. And then Jill’s got a team that does some of these higher end deals.
So, I just remember him talking about it, and I’m saying, “Wait. I could get rid of all of this, this, this, and this? I could only do this. Jill and I could sit in a room by ourselves somewhere. I could buy them, she could sell them, and we make 100 grand a month.” And then I started really thinking about how much work is involved in that, and the things you’d have to give up. So, you know what? Is this topic making sense?
Yeah. I think it is.
Everybody’s got to choose their own thing.
I agree. That’s my whole point. You have choices, and know that no way is right or wrong, no way. They each have their challenges.
Exactly.
That’s it.
Happy you could join us today. Every Monday, Wednesday, and Friday … Go ahead Jill.
Thank you. Every Monday, Wednesday, and Friday you could find us here on the Land Academy Show. For Tuesdays and Thursdays catch us over on the House Academy Show.
Tomorrow the episode on House Academy is baby boomers will sell 21 million homes in the next decades. How does this affect you?
You are not alone in your real estate ambition.
Such an interesting case study the case study for his case. Every case study like that there’s probably 15, 20, 30 other ones in our group where we could sit down and really kind of analyze how they do it and why, and then look at the consistencies of the model, and then the inconsistencies. But I bet you a dollar the consistencies would be organization, follow through, mailer consistency-
A team. Someone else answering your phone.
Systems; all the stuff that all of our education programs preach.
Right. Getting the right data. It starts even with that.
I think that trying something new, I’m going to probably eat my words five shows from now, you have to be really careful about there’s a balance between trying something wildly new, and just doing the same thing over and over again. You got to find that middle area, and it’s hard. That’s when I separate it all out into lines. So, that for the lower end property we just keep doing the same thing over and over again. For the higher end property we stay in urban areas, and keep doing the same thing over and over again, but there’s always something little over here that I’m trying that’s new. And sometimes it works, and sometimes it doesn’t. Every single time though it’s freaking expensive. It’s expensive to try stuff new.
You know what’s funny? I was just thinking what you just said a minute ago about picking something. I mean, this case has a great example of one person doing it one way, and we have another person in our group that kills it on the volume. Volume is like he’s a master there. And they both-
Exactly.
I don’t think they both went into with that goal in mind like they didn’t say, “I’m going to do one deal a month is my thing.” It just kind of happened, and it worked out to fit their lifestyles. That’s it. Don’t overthink this.
I think in all cases follow through is imperative.
Correct.
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