What Would You Do with Limitless Capital (LA 1340)

What Would You Do with Limitless Capital (LA 1340)

Transcript:

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’m Jill DeWit broadcasting from Sunny Southern California.

Steven Butala:
Today jill and I talk about what would you do with limitless capital? Just thinking about that just makes me all warm inside.

Jill DeWit:
Makes you all warm and fuzzy. It’s like your version of hot cocoa.

Steven Butala:
Something. Something like that.

Jill DeWit:
What is it? Let’s see.

Steven Butala:
There’s a lot of people who are addicted to raising capital and that’s what they do in life. We have people in our group like that. There are some people that grossly mismanage it, to the point of insanity, like Bernie Madoff. And there’s a lot of laws and regulations surrounded by raising capital, depending on how you structure it, like debt or equity or how long you’ve had a relationship with somebody that you’re raising the capital with. So I’m going to go through all that stuff at let’s say a 20,000 foot view on it and how we do it and how it works for us and how I see us doing it actually next year.
Because next year I believe that the real estate markets are going to somewhat implode because of forbearance and you’re going to see a lot of good deals out there. And when you see a lot of good deals, you run out of money fast. You don’t want to be raising capital when all of that stuff starts to happen. You want to raise it way before. So we’ll talk about it.

Jill DeWit:
No, it’s true. It’s like we joke about starting your company. You’re opening your office, get your office, get your stationary, get all your furniture in and get all the pretty… Everybody’s just kind of sitting there and you open the doors like, “Okay, now we’re ready. Customer, number one, please come in.” You know what I mean? Could you imagine?

Steven Butala:
It’s crickets.

Jill DeWit:
Exactly. Yeah, totally.

Steven Butala:
No. Yeah, I grew up… Gee, you got to Rocky Balboa that.

Jill DeWit:
Yeah.

Steven Butala:
you need to-

Jill DeWit:
Do it all wrong.

Steven Butala:
You need to see-

Jill DeWit:
You taught me that. You’re the pro at that.

Steven Butala:
Really?

Jill DeWit:
Well, I mean, I knew it. I didn’t know the level that you do it, which is actually the best level. You come in and then there’s so much with the customers. We’re figuring this out. It’s a little bit chaotic.

Steven Butala:
It’s a mess.

Jill DeWit:
Yes.

Steven Butala:
It’s a mess. Let’s just call it a mess.

Jill DeWit:
Yes. But it’s great and then everybody kind of understands. We’re like, “Ah, we didn’t know this would work. Hold on, everybody. We’re going to fix this.”

Steven Butala:
Now it’s worth working on.

Jill DeWit:
Exactly.

Steven Butala:
If you do it the other way, it’s like, I don’t know if this is even worth working on.

Jill DeWit:
Exactly.

Steven Butala:
I’ve never understood that whole… It’s way out of my comfort zone to do like a Palo Alto startup.

Jill DeWit:
Oh yeah. That too.

Steven Butala:
A .com startup, where you raise a ton of money. You raise a ton of money, you get a CFO.

Jill DeWit:
Based on an idea.

Steven Butala:
Yeah. Based on… There’s not even a-

Jill DeWit:
A working model.

Steven Butala:
… customer. You haven’t tested the concept yet and you don’t have a customer.

Jill DeWit:
Right.

Steven Butala:
It’s just like, “You know, this app could work. It really could.” The app to manage X could really actually work. Nail salons or even Uber or Lyft. It’s like, you know what? I would have bet money those didn’t work. I don’t even think they work, actually. It was just a money raising mechanism and that’s it.

Jill DeWit:
It’s crazy right?

Steven Butala:
Before we get into it, let’s take a question posted by one of our members on The Land Investors.com online community. It’s free. This is not a misprint.

Jill DeWit:
Oh, okay. To Gin… To Cincy, I’m not sure if I’m pronouncing that correctly, wrote, I have a run to the bank deal with a deed in two brothers’ name. How do you suggest paying them? Do not want to pay them anything until they both sign the deed. The property’s located in Texas. Escrow options without title company.

Steven Butala:
Question Mark.

Jill DeWit:
Question Mark. Exactly. Do you want me to go?

Steven Butala:
Yeah.

Jill DeWit:
Okay.

Steven Butala:
I mean, you’re set. Totally set.

Jill DeWit:
Okay.

Steven Butala:
You deal with this stuff all the time.

Jill DeWit:
I will answer these one at a time. So great. Yay. Congratulations. You know you’ve got like a home run there. So what do we do? How do I suggest paying them? I ask them, do we want to put it in one name? Do you want to put both names because they could both have to sign it and go to the bank together or, I would hope that we could put it in one name and trust them and the other person would do it. So basically I ask them how they want to do it.
Number two. I don’t want to pay them anything until they both have signed the deed.

Steven Butala:
Amen.

Jill DeWit:
That’s the right way to do this also. So I will do two things. Number one, you could have the deed and the payment go from… My first choice is they’re together in the same room. Let’s just start with that by the way. If you can get them together and this is great because the holiday’s coming up. I use… all the time, like, “Are you guys getting together for Thanksgiving?” I’m not kidding. It’s kind of far out right now, but it’s a common thing that I can say, “I’ll have the notary come on Friday and that’s because all the family’s together. We can get it all done.” That’s a really good way to get this accomplished.
Otherwise you could do, have the deed go to one and then go to the other one and send a check with the second one through the notary, that when they’re both signed and complete, then you hand over the payment at that time. That’s usually what I would do in something like this now.
And then also escrow options without title, good luck.

Steven Butala:
That’s not possible.

Jill DeWit:
Mm-mm (negative). It’s technically a thing. It’s technically can be doing it but no title company is going to do that because they make the money on the title policy. That’s why they don’t do those.

Steven Butala:
I gave up looking for doing escrow without a title policy years ago.

Jill DeWit:
Right.

Steven Butala:
And you know what? Maybe it’s about time to revisit it because I ended up at dead end after dead end.

Jill DeWit:
We created a company that did that a while back. It was called Title Mind, but we shut it down because we were overwhelmed.

Steven Butala:
Yeah.

Jill DeWit:
It was so much. And it wasn’t as profitable as it needed to be, for the work that was involved.

Steven Butala:
Well, what ended up happening is on Title IX, really quickly, is that it was a great service and the person that we had running it was born to do it. And her name was Jen and it was an awesome service. We used it ourselves all the time. Again, we’d roll out a product to the public that we used ourselves. And what ended up happening is people would send us their hardest deals, that they couldn’t get done, instead of sending it out… The idea was have them outsource the entire thing through us and pay us X and our staff X, to get all their deals done. But they just gave us the ones that were virtually impossible to do.

Jill DeWit:
Exactly. It was hilarious.

Steven Butala:
So the thing is with this question, you want to get the deal done and you want to get it done fast because time kills deals. And right now, specifically right now, there’s a lot. It’s escrow days are increasing, not decreasing because it’s so busy. So you don’t want to let a deal like this slip through your fingers.

Jill DeWit:
And I’m sure, as long as they’re speaking and on the same page, obviously they are because they both agreed to sell the property, there’s no problem with saying, “Hey, the money comes at the second signing.” No problem, if it’s going to be two different signings. No one’s going to argue that because you can’t do anything with the one signature. You have to have both signatures.

Steven Butala:
What we’ve done in the past and I’m not recommending that you do this on every deal, only for deals that are crazy, crazy profitable, serious home runs, you do the deal like Jill’s suggestion, suggesting where you send them the deed, there’s a cashier’s check. The whole thing happens and now the property’s in your name and they have the money. You want to make sure they’re on the hook, so now you can open escrow and take 30 to 60 days to get it done, so you can get a title policy and all that. Because these higher value properties, this is probably what this person’s talking about, need to have a title policy so that the end user can build on it or lend against it or whatever. So keep that in mind.
Today’s topic, what would you do with limitless capital? This is why you’re listening.

Jill DeWit:
Do a lot of property shopping.

Steven Butala:
Let me paint a picture for you. This is what happens with new people and it’s exactly what not to do. And it’s exactly what I did in the beginning, incorrectly. I looked at my checking account. I said, “There’s $8,000 in there.” So I sent out a mailer targeting $8,000 property or $5,000 property or $3,000 property because that’s all the money I had. And guess what happened? That’s what I got. I started buying those properties and happily went along the way, building this tiny little fortune that Jill and I have.
What if I, or anybody who starts out says, “You know what,” fictitiously, “I have $40 million in my bank account.” What kind of mail am I going to send out now? And what you’re going to send out is crazy profitable, unbelievable deals. And you’re going to find them, just like you find the little ones, you find the big ones too. No matter how big it gets, someone’s going to get a letter that you sent and they’re going to open it and say, “You know what? I do want to sell this office building, or this farm land or whatever it is,” as large as it is.
And so they’re going to call you back and say, 14 million bucks sounds fine. And it’s worth 20. You know you can sell it next week for $20 million. So just because you don’t have the money, doesn’t mean the deal stops there. What you do is get in the business of raising capital. And we have many people who have caught onto this. I don’t think a single one of them is still with us because they got too rich, too fast on this whole concept.

Jill DeWit:
It’s true.

Steven Butala:
I don’t need to finish this story. Those are two opposite extremes, the $5,000 option and the $20 million option. What really happens with land is this. You have $8,000 in your checking account but you start sending out mail at 80,000, $100,000 and you call people like us or in our group or us specifically for deal funding and you say, “I got this $80,000 property under contract. I’m extremely confident. Wholesale, it’s worth 200. I don’t have the dough. Can you guys fund me?” And that’s it. He had limitless capital.
My point is this. You do have limitless capital. You have limitless capital. What’s missing is not the capital. What’s missing are the awesome transactions. The incredibly profitable deals. I’ve long said this sentence, I’ll say it again. There’s way more money out there than talent. So if you’re sitting here listening to this somewhere, just like I was sitting around in my apartment 25 years ago, saying, “What am I going to do with the rest of my life? I don’t have any money.” And I had a terrible job and nobody likes me because I didn’t meet Jill yet.

Jill DeWit:
Thank you.

Steven Butala:
All you got to do is send a bunch of mail out and get real organized and focused. And if you find any version of a good real estate deal, especially now, this entire group is packed full loaded people. Have a bunch of money. A lot of cases, way, way more money than Jill and I have. They’re not going to let a acquisition, a good acquisition go to waste.

Jill DeWit:
Yep.

Steven Butala:
A lot of people think that being wealthy is looking at their checking account and saying, “I have $10 million in the bank.” That has nothing to do with it.

Jill DeWit:
Mm-mm (negative).

Steven Butala:
It’s all stock options and access to capital and back-end financing. A lot of it’s private equity. So all these people that make the Wall Street Journal and these millennials just love Elon Musk and Jeff Bezos. They just love them. I’ll never understand it. They’re addicted to these personalities and all those guys don’t have any money. They have hoards and hoards and hoards-

Jill DeWit:
It’s true.

Steven Butala:
… of assets. Namely in the form of stock and stock options for companies that they took public. And so you better believe that if a great deal comes across their nose, for whatever reason and everybody else from us to Jeff Bezos, everybody in between, can gather a bunch of money pretty quickly for a deal that they can get behind.

Jill DeWit:
Yep.

Steven Butala:
Financially.

Jill DeWit:
That was exactly my I had two points. One is how do I start? And it’s one deal at a time-

Steven Butala:
Oh, that’s good Jill.

Jill DeWit:
… like you just said. The deal speaks for itself. It’s got to be that good of a deal. It doesn’t matter who you are, what your experience level is. You come to somebody like us, or anybody who can afford to do this and say, “I got this deal. We can’t let this go to waste.” Once we look up at the deal and go, “Oh my God, he’s right,” done. We’re done. And we’re all going to do this together.
And then my second point was, how do you get to our level where it’s like, the phone calls are easier. People take your calls. It’s like they’re watching for your calls almost. It’s called history. You prove yourself. You do deal after deal after deal. Keep doing these things. Word will get out. Trust me. And then people, when you call, they’ll answer. You call me I’ll answer.
I’ve got a few people that we… I do deal funding. This is something that we do, period. And it doesn’t matter if you’re a member of Land Academy or not. I don’t care because no good deal should go to waste. So you submit it to us and I look at the deal, we’re doing it.

Steven Butala:
It’s got to be a great deal.

Jill DeWit:
That’s it. And I’ve got a few people too, that it’s like they’ve proven themselves. So when they come to me, I’m taking their call and it’s great because we built up this reputation. Now there’s a few things that I double-check as we go into it but I don’t go through nearly the process that I do with somebody new because I want to make sure, which is, everybody does this. And that’s just how you do it. Just keep on, keep doing it.
And it’s great because it’s not your money. Like you said, and I love that. That’s one of the beauties of our community, what we built up, the level that we’re at and what we can take down. I’m so happy to be able to report to people coming into Land Academy, you don’t have to your own money to fund your deals. Finding the right deals, we’re going to fund them. And that’s like we created. We even created… We share it with our group.
Because there’s so many deals that come up with all of us. We’ve gotten so good at sending out the mailers and finding these deals. Most of our community or people are running out of money. So we’ve made LandTank and we made HouseTank. Those are two places that you, as a member can post your properties and someone will go fund them for you within our group.

Steven Butala:
Every single deal, where I get a notice that somebody posts something on LandTank or HouseTank, by the time that I click through… We own the website. By the time I get in there and look at it, it’s gone.

Jill DeWit:
She was grabbed quickly. It’s funny. It’s awesome. Thank you for tuning in.

Steven Butala:
Hold on. I have one more point here.

Jill DeWit:
Oh, I’m sorry.

Steven Butala:
Because I love this topic.

Jill DeWit:
Oh, okay. I’m sorry. I didn’t mean to cut you off.

Steven Butala:
If you take anybody who owns, let’s say more than three kind of assets in any market, it might be land. And this is any market. If they own three separate parcels of farmland in Iowa, if they own three strip malls in Los Angeles, three small apartment buildings or large apartment buildings in Wisconsin, any market, I don’t care where it is, they’re in that business and they live and die by the next deal. They’re constantly looking for next deals, whether it’s consciously or subconsciously. And if you find their contact information and call them and say this sentence, “Mr. Smith, I know you own these three apartment buildings right in this area. I have another one. I’m talking with the seller or I have it under contract to buy. You seem like a very, very logical person to buy this or fund it with me or be my partner on it because I’m telling you, I’m paying less for this than you did yours.” Because you can see all the data, especially in commercial real estate. What do you think that guy is going to do?
I don’t care what he’s doing at that moment. He’s going to drop what he’s doing and call you and say, “Yeah, I would love to buy a building with you, if it is what you say.”

Jill DeWit:
Mm-hmm (affirmative).

Steven Butala:
And I’m talking about at the tip top of the universe of real estate owners, this is what they do. They live and die by acquisitions and in some cases, divestitures. And it works for companies the same way. I bought and sold companies early on and realized real estate was easier and most cases, more profitable and less volatile.
So get your confidence is what I’m saying. Just focus on getting good deals and forget about the money and you’re going to have more money than you know what to do with.

Jill DeWit:
That’s perfect. Happy you could join us today. Five days a week, you can find us on The Land Academy Show.

Steven Butala:
Tomorrow, the episode on The Land Academy Show is called Buying Land With Emotion is a Fast Track to Failure. You are not alone in your real estate ambition. That’s a Jill topic.

Jill DeWit:
Yeah, it is. What’s great is you would think that as a woman, that that would happen.

Steven Butala:
You’d think that.

Jill DeWit:
You would think that but I’m actually shockingly good. I do see it as a line item and there’s a reason why we don’t drive out there and stand on the property.

Steven Butala:
There’s a time for emotion in your life but in business, there’s no time for it.

Jill DeWit:
Exactly.

Steven Butala:
I’m going to say it now and I’ll probably say it during the show tomorrow. Tony Robbins is famous for saying the single one thing that will destroy your life and keep you down is emotion. If you just go do what you’re supposed to do every day and then at 8:30 at night, you can go be emotional with whoever you want between 8:30 and 10:30… He didn’t say that. That’s my quote.

Jill DeWit:
That’s hilarious.

Steven Butala:
You’re going to do great.

Jill DeWit:
We should try that. That’s really good. Here’s what we’re going to do. We’re going to be like business boring mantra all through the day and then every night at 8:00, we’ll open a bottle of wine and cry.

Steven Butala:
I was thinking positive emotion, not negative. I don’t equate emotion with the negative.

Jill DeWit:
I can’t believe I had to do that today. I can’t believe this person doesn’t get it.

Steven Butala:
That’s funny because I see emotion-

Jill DeWit:
How many times-

Steven Butala:
… as positive.

Jill DeWit:
Oh, that’s funny. I thought… That’s good you see it as positive.

Steven Butala:
Yeah.

Jill DeWit:
Oh, that’s-

Steven Butala:
Any kind of emotion, positive or negative.

Jill DeWit:
How?

Steven Butala:
It’s just any emotion’s not okay.

Jill DeWit:
Oh.

Steven Butala:
When you’re doing a deal.

Jill DeWit:
Emotion in front of a customer, if it’s positive is not good. Like “Yes!” Like wait for the phone to hang up. Wait for them to be off before you go like, “Yeah, I got this!”

Steven Butala:
And it’s not entertainment. I mean emotion. You need entertainment. The sellers, you need entertainment.

Jill DeWit:
That’s true. Sellers are entertainment. Thank you for tuning in. We hope you find our content valuable and we appreciate your support. If you have not already, please zip over to YouTube, check out our channel and hit the subscribe button.

Steven Butala:
She means it. And your comments and suggestions help us to create the content you’re here for. Hitting the like button helps to support our channel’s algorithm, engage your interest for future shows. We are Steve and Jill information-

Jill DeWit:
… and inspiration-

Steven Butala:
… to buy undervalued property.

—————————————-

If you have any questions or comments, please feel free to email me directly at steven@BuWit.com.

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

I would like to think it’s entertaining and informative and in the end profitable.

And finally, don’t forget to subscribe to the show on Apple Podcasts.