Is Your Property Deal Good Enough? (LA 1264)

Is Your Property Deal Good Enough? (LA 1264)

Steven Butala:
Steve and Jill here.

Jill DeWit:
Howdy.

Steven Butala:
Welcome to the Land Academy Show, entertaining land investment talk. I’m Steven Jack Butala.

Jill DeWit:
And I am Jill DeWit, broadcasting from sunny Southern California.

Steven Butala:
Today, Jill and I asked this question. When is your deal good enough?

Jill DeWit:
Let me back up. Here’s the reason we’re talking about this. I’m getting a lot of crappy deals sent to me for deal funding. So we launched into a whole long discussion about what the heck is going on. So I thought, we thought, let’s make this a show today and just make sure we’re all doing the right thing in looking at deals and picking the good ones, and what should you be looking for.

Steven Butala:
This whole week, really the underlying theme here, the unwritten theme is I don’t get it, and I mean me. I don’t get what’s… There’s a theme going on in our group. It’s all… It’s not our group. It’s people that are… They are people that try to do this without being educated.

Jill DeWit:
Right well, and-

Steven Butala:
But that’s the thing here.

Jill DeWit:
That’s just to say, it’s like doing this halfway.

Steven Butala:
Yeah, halfway. That’s it, that’s a nice way to say it.

Jill DeWit:
If you’re going to go at this halfway, you’re going to get halfway results. And don’t get mad at anybody else with at your halfway results. So that’s the truth, right?

Steven Butala:
I couldn’t. That’s a nice way to say it.

Jill DeWit:
Could you imagine?

Steven Butala:
That’s the mom way.

Jill DeWit:
I’m going to go with this relationship halfway. Let’s see how it goes.

Steven Butala:
I’ve tried that.

Jill DeWit:
Yeah. That’s hilarious. How’d that work out?

Steven Butala:
I’m still sitting here.

Jill DeWit:
Oh. Not with me?

Steven Butala:
No. No, I was just-

Jill DeWit:
You didn’t do it with me halfway. Or this is you halfway?

Steven Butala:
No. Lately, I like-

Jill DeWit:
Wow. What’s you a 100%. Because halfway is pretty good.

Steven Butala:
Lately, I’m saying stuff, sentences like this to myself when no one is around. “You know, it can’t be that bad, because look where I am right now. Look at my life. Look at the situation. Look at Jill and the kids and we live on the ocean.” Then I go right back to, “Nope, this isn’t working.”

Jill DeWit:
Oh, I’m sorry. I’m thinking of the things right now I want to do halfway, like parenting.

Steven Butala:
Oh that’s a [crosstalk 00:02:14].

Jill DeWit:
I’d like the parent halfway. I’d like to diet half way.

Steven Butala:
Keep going.

Jill DeWit:
I’d like to run my household halfway, just kind of whatever. Let’s see, what else?

Steven Butala:
I like being in a relationship halfway. It’s perfect.

Jill DeWit:
Now, now, halfway… Oh, come on.

Steven Butala:
I’d like it.

Jill DeWit:
Okay.

Steven Butala:
Because it would never work.

Jill DeWit:
Here’s the things that I do take seriously, fun, goofing off, vacations, time away from the house. I take that very seriously. I do that a 100%.

Steven Butala:
Before we get into it though, let’s take a question posted by one of our members on the landinvestors.com online community. It’s free.

Jill DeWit:
Eraldo says, and I have a comment here, because I saw, Eraldo, your post online. He has a whiteboard and he put, “First deal done.”

Steven Butala:
Oh good.

Jill DeWit:
He got his first sale and I’m like, “Yeah.”

Steven Butala:
Great. Excellent.

Jill DeWit:
So, I want to say, keep that up on social media, by the way, and keep updating your deals. I can’t wait to see how it goes. I think I said a little-

Steven Butala:
Makes us proud.

Jill DeWit:
It does.

Steven Butala:
Makes us feel like, “Wow, we are actually helping people.” Because Jill and I aren’t here to … This is not a profit center for us. Real profit center is that 7 million deals that Jill’s doing right now. That’s the real magic.

Jill DeWit:
Yes.

Steven Butala:
The Land Academy…

Jill DeWit:
Like my podcast even.

Steven Butala:
… group is to enhance our deal making transactions and to help you learn. It’s our way to give back. So it really wouldn’t. It’s simple little, “Hey, I got my first deal done.” on social media just really goes a long way. I don’t want to get all misty eyed about it, but that’s the truth.

Jill DeWit:
Thank you. Please don’t. You’ve already cried twice today. I don’t need a third one. And it wasn’t me.

Steven Butala:
And they’re not happy tears.

Jill DeWit:
Yeah. Uh huh. Ah boy. Okay. Back to the question he says, “Hi guys, I’m about to send more mail to the same county. I sent mail to five to six and a half acres. And I’m now sending 6.51 to 20 acres.” That’s great by the way. Pause. You find an area. You get to know it. You like it. This is working out great. Let me get more in this area. It’s going perfect.

Steven Butala:
I filled some water out of that well. Should I go back to the same well, and see if there’s more water?

Jill DeWit:
Yeah. My question is, “Should I remove owners who’ve been mailed before on my previous mailings. I’m not worried about the time consumption because that’ll take me maybe five minutes. So that’s not an issue. Just the fact that they didn’t reply or did reply with a negative response. Should we just mail them again?”

Steven Butala:
There’s exactly two ways to look at this. Number one, I don’t really care, I’m going to send them out more mail. Or number two, I’m going to take some time out of my day. Get real organized. When I get a call back from somebody that says, “Hey, take me off your list. I am not interested selling this property or the 482 other properties that I own. Just take me off, please.” That’s an invitation, for me, to ask again.

Jill DeWit:
Oh, got it.

Steven Butala:
So you can either, just use your own discretion. There’s everybody, there’s a lot of comments about this. All the way down through from other members on LandInvestors.

Jill DeWit:
Yeah.

Steven Butala:
I personally would send them more mail.

Jill DeWit:
That’s like I… I don’t care getting those calls.

Steven Butala:
Yeah.

Jill DeWit:
If I get another call, I could just pretend like, “Oops, somebody is losing a job over this one.”

Steven Butala:
And that’s how I respond. That’s how we have historically responded.

Jill DeWit:
Which they’re not.

Steven Butala:
… I have historically responded to that. “You know what, I’m so sorry that we clearly sent you a letter in error.” And I will, if it happens two or three times, we have a master list of people who don’t, really don’t want to be contacted anymore. And we don’t want to spend, waste 50 cents on it anyway.

Jill DeWit:
Right.

Steven Butala:
So it depends. We’re working in a county right now, two counties right now, we’re having massive success and you better believe that they’re going to get some more mail from me.

Jill DeWit:
Yeah. It’s good.

Steven Butala:
Today’s topic is, is your deal good enough? This is the meat of the show.

Jill DeWit:
I could make 20 points, but I’m going to make three.

Steven Butala:
And I’m going to listen to Jill because I don’t want to cry anymore today.

Jill DeWit:
And it’s definitely not you, obviously.

Steven Butala:
No, I obviously have a lot to say about this too.

Jill DeWit:
I know. So here’s the whole, here’s main point number one. And again, I’ll make it short with three. Is your deal good enough? Are you doubling your money? Let’s all start with that. Is it that good of a deal? If you can’t clearly double your money in the land deal, you’re probably not doing it right? Unless, no, I really can’t go there. Because even my bigger deals, even in the hundreds of thousands of dollars, I’m still doubling my money. So I don’t have an unless.

Steven Butala:
The last big deal we did was times five.

Jill DeWit:
Right. So I’m really frustrated by that. And so here’s what’s happening. So what people are doing is that’s point number one. Number two is, is your deal good enough? Stop wasting your time. You should be doubling your money. Don’t waste your time trying to make it work. And don’t waste your time… just going to call a spade, a spade, sending it to someone. Here’s what I see happening. People find deals. They think they’re great. Like the home runs, I get them all day long. Oh, I see it. I get it. Whatever. This one there’s kind of a gray area. Hey, you know what I’m going to do. I’m going to waste somebody else’s time too. And see if they see it.

Steven Butala:
What’s she saying is sending it to us as that deal funding candidate.

Jill DeWit:
That’s what I’m saying. They’re sending it to us like, “Hmm, let’s see if their team sees something in this that I don’t see to help me decide.” Well, now your waste… If you didn’t see it, I’m not going to see it. You were right on the first time. And we don’t want to waste anybody’s time. Sending it to me takes time, me replying to you takes time. Me getting unhappy wastes time. Steven hearing about it wastes time.

Steven Butala:
Then she breaks the vodka out and that going to take, that takes four hours.

Jill DeWit:
And it’s like, that wastes time. So yeah. So, and my point number three is if you are trying to decide, is my deal good enough, then you know what I want you to do, or you’re not sure about it, you’re afraid, then go smaller. Here’s my little tip.

Steven Butala:
Wow.

Jill DeWit:
So I was about this. I’m like, “So people are buying for 50 selling for $120,000. Right?” Which is beautiful. Buy for 30,000. But there’s lot of people that are like, “Ah, I’m not even feeling good about that.” So you know what you guys buy for three. If you’re really not comfortable, and you’re really not sure about your skill level yet, I understand that.

Steven Butala:
I don’t.

Jill DeWit:
Why-

Steven Butala:
That’s what this whole topic is about for me when you’re done, that’s what I’m going to talk about.

Jill DeWit:
Okay. Well, my tip is, if you-

Steven Butala:
I don’t understand their wishy washy.

Jill DeWit:
Well, this is a way to get out of it. This is a way for me that I can see to solve it. Start small, build up, but don’t, and some people stay small. They like that. I personally don’t, but we have lots of members that are doing… I can think of one in particular that he keeps trying to break out of the small deals. And he’s so good at the small deals. And the volume, he kind of keeps doing the small deals. Buy for 3000, sell for 10,000. And do a couple of week.

Steven Butala:
There’s a, especially in the House Academy, in the house realm of flipping or wholesaling or renovating and all of that, there are a lot of novice people who, maybe because of HGTV, they go into it and they think they don’t need an education. They think they don’t. They think it’s, “Oh yeah, they did it on TV.” In a 22 minute episode, they took a fallen down house that they bought for $5,000 in Indiana, and sold it for 180,000 after they renovated it. And oh, there’s the math. It cost this to do it. It’s all fiction. It’s just television. This isn’t TV. This is for real. So here’s a question you have to ask yourself really, really seriously, go off by yourself for a weekend. Don’t ask your wife, don’t talk to your children or your parents. Ask yourself this question.

Steven Butala:
What’s it going to take for me to get confidence to do this, to buy and sell land successfully. What’s it really going to take? And there should be 50 answers and then you can choose the best two or three for you. Maybe one of them is experience. Well, I’m very okay with the fact that I’m going to screw up a few deals in the beginning. This just might be for you. I don’t know, screw up a few deals in the beginning. I know it’s going to cost me some money. I’m going to make some mistakes. And the more the more deals that I do, the more competence I’ll get and the better at this I’ll get. Or the more successful I’ll be financially, that’s one option.

Steven Butala:
Or you can say, you know what, I’m never going to be good at this. Just like I’m never going to be a brain surgeon. And I don’t really truly have what it takes or what everybody’s telling me that it takes, which is a core intense desire to manipulate data for positive and consistent outcomes. That’s what this is all about.

Steven Butala:
So is a deal good enough? When that deal pops back up, first of all, you should have an incredible amount of confidence in the mail that you sent out. Jill has a lot of confidence in the mail that I send out. So when a property comes back and it’s signed at $22,532.28, in her soul, she doesn’t even have the talk with herself anymore. In her soul, she knows it’s probably, there’s like a 98% chance, it’s ready to go that way.

Jill DeWit:
Correct.

Steven Butala:
So she’s got confidence in me. I have confidence in her. I have confidence in myself in how I price these mailers, where I send mail, and on and on and on. That didn’t happen overnight. And for a lot of people, it never happens.

Jill DeWit:
Right.

Steven Butala:
For a lot of reasons. Life gets in the way, a lack of interest. I’m very, very interested, in my soul, in fixing up old cars. I don’t do it anymore because I’ve failed at it so many times.

Jill DeWit:
Thank you, sweetheart. Thank you. That was another relationship. That was one of those half trying relationships.

Steven Butala:
So if I asked myself about fixing old cars, if I went away, like I just suggested and sat there and said, “What’s it going to take for you to be very successful at fixing up old cars?” And here would be my answer. “I’m going to bring in a guy who knows way more about it than I do as a partner. I’m going to be the money guy.” I know what sells, it’s the same relationship that Jill and I have. I’m going to do the data part of that and the acquisition part of it. But I’m going to bring in somebody, as an operator or a mechanic or a renovator, that’s better at it than me.

Steven Butala:
Is it deal good enough? It should jump out at you. There’s brand new people in our group that are doing, they’re sending mail out two or three weeks in, getting massive responses and emailing us and saying, “Thank you.” So there has to be some level of a knack here. Jill’s going to, am I going to get in trouble for this after the mic’s turned off?

Jill DeWit:
No, why? I’ve got nothing. I’m not that [crosstalk 00:13:41] positive.

Steven Butala:
Jill and I are not trying to sell you anything.

Jill DeWit:
Why would you think I’d get mad?

Steven Butala:
Just because it’s not a, I could be a little more positive.

Jill DeWit:
Oh, Oh, I’m used to this. I must be so used to it I didn’t even notice.

Steven Butala:
Oh, Jill, you’ve come to the dark side.

Jill DeWit:
Oh no.

Steven Butala:
You’re on the dark side.

Jill DeWit:
Is he bitching? I missed it.

Steven Butala:
Oh, she’s not listening at all. That’s what’s going on.

Jill DeWit:
Yeah, that’s it. Or that.

Steven Butala:
It’s so glaringly obvious when we get properties back. And every morning I go through our CRM and I reviewed the properties that come in. And it’s just so obvious in NeighborScoop or House ParcelFact, whatever you’re using, which ones are like, oh my gosh, yes.

Steven Butala:
If you’ve ever seen our, taken part of our Thursday webinar, we review everybody’s deals. For two hours. It’s just obvious to everyone, I think that that deal should be the deal.

Jill DeWit:
I hope.

Steven Butala:
That’s a fantastic deal. You should run to the bank and get that deal done. So by, I don’t know, maybe some people are just born doing math, are very, very good at all types of math and equations and things. I don’t know. Well, I do know.

Jill DeWit:
Yeah, you do. You know. Thank you. Happy you could join us today. Every Monday, Wednesday, and Friday, we are 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 Five Ways to Finance Deals. You are not alone in your real estate ambition.

Jill DeWit:
Yeah. I didn’t notice. It didn’t seem that did not seem overly…

Steven Butala:
Negative?

Jill DeWit:
Yeah.

Steven Butala:
Oh good. It’s either, I think you’re a little jaded.

Jill DeWit:
I think I’m numb.

Steven Butala:
I’m really serious. I mean, there’s only, you know what you’re good at. I know what I’m good at.

Jill DeWit:
I have never-

Steven Butala:
I’m very comfortable with the stuff that I’m terrible at. And I avoid doing it.

Jill DeWit:
I think that some of these people are like I invested all this money and this energy in this mail, I have to make X amount of deals out of it. Instead of just saying “These are the good ones. Who cares about the bad ones.” Send more mail and move on.

Steven Butala:
I’m going to deliver this message all week. This is Monday. This is a lot of work. This is a career change. It’s not a hobby. It’s not a, what do the kids call it now a side gig. Everyone loves that.

Jill DeWit:
Oh, side hustle.

Steven Butala:
Side hustle. That’s it.

Jill DeWit:
I hate it. I hate that. I heard that today.

Steven Butala:
Everybody loves to hear side hustle.

Jill DeWit:
I hate side hustle. I think it’s dumb.

Steven Butala:
I don’t know where that comes from. It’s what Jill said. That just screams halfway to me. This is a career for you, and your family, and maybe your children, and possibly your siblings, and on and on and on to make, to get rich. So it’s worth spending time on. It’s worth learning how to do it correctly. It’s worth failing at over and over again. I made that decision a long time ago. I left extremely lucrative investment banking situation to take a huge chance. And of course it paid out. And everybody that’s in our advanced group has a story like that. Well, I just walked away from $180,000 a year to see if this is going to work.

Jill DeWit:
So you know what this reminds me of? We just had this discussion with our kid. We’re like, “You know what? We probably walk around making you look, think that we don’t have to work that hard and things just come naturally to us and it’s easy. And the answer is we busted it to get to this point.”

Steven Butala:
And still do.

Jill DeWit:
And still do. We just, you just don’t see us go off in our separate corners. Our kid doesn’t because he’s half asleep half the time. But anyway, that’s a whole nother story. We’re in our offices, busting it working. Still. So yeah, if it looks easy and we laugh a lot, well, we’ve got to this point, but we still work really, really hard. And you should too.

Steven Butala:
I know we’re way over on time.

Jill DeWit:
I know.

Steven Butala:
You should stare at it at a deal that came back, if you’ve wrote an offer for five or eight or 10 or $20,000, pops up on NeighborScoop or ParcelFact, and you should look at it and within a minute you should say, “Wow.”

Jill DeWit:
Yeah.

Steven Butala:
“This is something else. I got to get this deal done and fast.” Like call the person back right there. Or hopefully they’re on the phone still.

Jill DeWit:
And then you know it’s good enough.

Steven Butala:
Yeah. It should be just a gut feeling.

Jill DeWit:
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Steven Butala:
We are Steve and Jill. Information-

Jill DeWit:
… and inspiration-

Steven Butala:
… to buy undervalued property.

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