Changing Your Offer Price After Purchase Agreement is Signed with Confidence (LA 1351)

Changing Your Offer Price After Purchase Agreement is Signed with Confidence (LA 1351)

Transcript:

Steven Butala:
Steve and Jill here.

Jill DeWit:
Hi.

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

Jill DeWit:
I’m Jill Dewitt, broadcasting from sunny Southern California

Steven Butala:
Today, Jill and I talk about changing your offer price after the purchase agreement’s been signed, but doing it with confidence. This is an issue that, again, this is all driven by questions that people have asked us more than once, separate people. They’re just way out of their comfort zone, sending out a purchase agreement for 20,000 bucks, the offer comes back. The five days don’t check out or for whatever reason the price needs to be adjusted because that’s what we do here. I mean, property, all the property that comes back at the price that you sent it out, some of it needs to get reduced because of the quality of the property, there’s no way you can sell that by sending out… When you send out 5,000 offers. You can’t check every property out. It doesn’t make sense time-wise.

Jill DeWit:
Right.

Steven Butala:
Some people, it’s very much out of their… And Jill is not one of these people, way out of their comfort zone to change the price.

Jill DeWit:
I do this every day. I actually live for this.

Steven Butala:
Before we get into it, this is another one of those Jill shows. So I’m going to enjoy it with you. Before we get into it, let’s take a question posted by one of our members on the landinvestors.com online community.

Jill DeWit:
Gina wrote-

Steven Butala:
It’s free. Sorry. [crosstalk 00:01:27] I threw you off, sorry.

Jill DeWit:
I’m like, “I don’t know when to start.” I don’t know. Okay. Gina wrote, “Hey, y’all my name is Gina.
I’ve been doing land investing for a few years now, and I guess I’m here to try to see if I can improve my workflow. I currently send about 2000 letters a month, but I’d like to make that close to 5,000. Any tips, tools, tricks you use to scale. I currently work a full-time job and simply don’t have time to sort through all of the sites and piece together that many records. Two thousand seems to be my max without going crazy. Any help from an experienced member, such as yourself, would be greatly appreciated.” I want to know where she’s going and getting her data because we don’t have that. I think she’s… Is she buying all data? What do you think?

Steven Butala:
It’s very clear to me, Gina, that you’re not a member. And so that’s what… And you’re a perfect member for us and I’m not selling you anything. You’re going to decide that on your own, but I’ll tell you, and I say this to you and everybody listening. There’s a right way and a wrong way to do this. And for years and years and years long before I ever met Jill, I perfected the right way to do it. I was doing it wrong. I perfected it. I was doing it wrong. And by no means, is it perfect now. There’s always room for improvement. But what Gina’s doing is going to the county. This is the old, old school way that I used to do, in the ’90s I used to do it this way because the data didn’t exist yet.
You could go to the county, and as a matter of state statute, they had to provide the tax roll for that county. So if you go to a county in Texas, you walk in and you say, “Hey, I’d like to… I know you provide the whole tax roll, all the people that own all the properties in the county. I’d like it, please.” And they would say some version of this. “That’s great, Mr. Butala, we’ll compile it for you. Come back next month. We’ll print it all out for you on a green bar piece of paper from an IBM printer that we have-

Jill DeWit:
Dot matrix.

Steven Butala:
Come back with the U-Haul, because it’s…” And I used to do that. And then input it, and send letters out. Or, and then a few years went by, I’ll use Maricopa County, the county that Phoenix is in as an example there, because they were tired of doing that for people. They put it on a CD and then it was a mess. You get the data and it’s just like a gobbledygook of mess. So, that’s what Gina is putting herself through that. And she’s doing… My hats off to her. She’s doing 2000 letters a month that way?

Jill DeWit:
I love talking to people like this because I’m like, “This is great. Number one, you understand this works. You know how to buy property. You know how to sell property. You got all this stuff figured out. You’ve got the mindset. You know there’s just these little things that we can help you with. It’s going to make your life easier.” I love that. She’s been doing it the hard way she’s going to go… It’s like the gates of heaven are going to open up, like, “Oh.”

Steven Butala:
It’s like getting power steering.

Jill DeWit:
Like, “Wow, I didn’t know this was possible.” Exactly. Power steering and ABS. It’s just like going-

Steven Butala:
An automatic transmission.

Jill DeWit:
… going from a 1950s motorcycle to a self-driving car. It’s almost like that. You got to get in there and put where you want to go, but there’s a little more to it, but it’s so different. And I love it. Because then I feel bad because I know Gina is going to do like many people have said like, “You mean I was hitting my head against the wall. I was pulling my hair out for two years over this when I could’ve just done this.” I’m like, “Yeah, sorry. But look at the bright side, you got all the other stuff out of the way too. It’s all okay.”

Steven Butala:
I think she-

Jill DeWit:
She’s going to go from 2000 to 5,000 overnight just with that.

Steven Butala:
And then she’s going to go to 25,000.

Jill DeWit:
And, then, just having that and then setting up something like PATLive where they can answer your phones. Those are game changers.

Steven Butala:
I think she’s got all the hard stuff done. If you can drive a stick shift, you can drive an automatic. And it’s a lot harder to learn how to drive a stick than an automatic. So the good news is that she learned on a stick and she can go to an automatic and appreciate it. She’s got all that tough stuff figured out, like how to do a real estate deal, which ones are good, which ones aren’t.

Jill DeWit:
Right.

Steven Butala:
And she’s been banging her head against the wall with county data. These aggregators, these data companies that we represent, that we are licensed providers for, do all the hard work for you. So you just download it in the same format and then pound.

Jill DeWit:
Do you know what I… I have to say this, because I think it’s comical. So many people say I did it because it was free. Okay. So let’s just talk about this for a minute. So how much… Talk to me about getting the data? Well, they did charge a hundred bucks to compile data. Okay. Well, how is that free? But okay. And then they got it and I spent six hours of myself going through it and gave up, gave it to a VA and then I-

Steven Butala:
Or, 60 hours.

Jill DeWit:
Well, yeah. And then, because they gave up-

Steven Butala:
In some cases.

Jill DeWit:
And they sent it to the VA who then took six weeks to figure it out and decipher and get it back to me. I’m like, “Okay. So how has that free. The time you wasted your own energy and the money that you did really did outlay doesn’t account, doesn’t make up for just going to somebody good and downloading it and having it in oh five minutes, in the format that you need.”

Steven Butala:
Free is a disease. This-

Jill DeWit:
That’s good.

Steven Butala:
… internet. The internet provides free stuff.

Jill DeWit:
That’s really good.

Steven Butala:
And, there’s free stuff. And the pull points of free stuff… this podcast is free, is to lead a certain number of people that are consuming the free content, lead them to make a decision, to get the stuff that really is valuable and pay for it. And so if there’s any one single hurdle that I see with new people and it causes them to fail, it’s what Jill just said, is they’re just not willing to spend a hundred dollars when they can go over here and get it for free. And the free stuff that they’re getting, is going to destroy their career before it ever gets started.

Jill DeWit:
That’s the sad reality. They’re like, “Oh, this is too hard. I’m out.” Yeah. I would too.

Steven Butala:
And so, we’re raising a culture, an internet culture that just expects everything to be free. And if it’s not free, even like these apps, there’s free apps that are going to do stuff for you. And then there’s apps that cost $3 that are like infinitely better at whatever you’re trying to do. And so it’s really too bad.

Jill DeWit:
That’s true.

Steven Butala:
Today’s topic. Changing your offer price, after the purchase agreement is signed and doing it with confidence. This is the meat of the show.

Jill DeWit:
No, it’s not a dig at Gina, because I don’t think that’s where Gina is coming from. I think Gina doesn’t know.

Steven Butala:
Gina is going to kill it.

Jill DeWit:
Which is awesome. Gina probably hasn’t even-

Steven Butala:
She already is.

Jill DeWit:
… figured it out yet all the great tools and things that we have. So without even helping her change her way she’s running her business, just having access to these tools is going to be… She’s going to quadruple what she’s doing right now.

Steven Butala:
If Gina was a lumberjack, she’d be using an ax to cut down trees and what she needs is a chainsaw. And that’s what Land Academy is.

Jill DeWit:
That’s good. That’s a very interesting analogy. I like it.

Steven Butala:
No, you just like lumberjacks.

Jill DeWit:
That, too.

Steven Butala:
Oh, I thought you were going to talk about this.

Jill DeWit:
Did you already get the topic? Did you say… Yes, you did. Sorry. Okay. So, let me describe the scenario here. This is what we’re talking about. We send out all these offers. One lands in Mr. Smith’s hands. It’s for $25,000. Mr. Smith is excited. Mr. Smith needs $25,000. He could care less. He hasn’t seen it in 30 years. It was inherited. Whatever the story is. Mr. Smith signs the offer letter, sends it back. It makes its way to me to review the deal and move forward. I sit down, I look at the deal and I go, “Oh-oh. Boy, did we go in a little high on this one?” And, the point is, we didn’t know, based on the acreage, based on the area, it was a good offer.

Steven Butala:
Maybe Jill’s business partner mispriced the mailer.

Jill DeWit:
Or that. Sometimes mistakes happen. It doesn’t matter why. The point is I wouldn’t pay 25. I wouldn’t even pay 20. I’d pay like 10, preferably five. So now the question is, and this is where a lot… and this gets to me, too. A lot of our members have come to me separately, going, “Help me. How do you do this? How do you do this?” So I’m going to try to help you right now. So you need to come back to the seller, because you don’t want to throw it away. It’s a good property. So let’s just say, it’s a good property. What are the problems? It’s got legal access. It’s not off the highway. It’s not drive right up to it. I can see a dirt road. It’s a nice size, man. Let’s just say it’s 20 acres, something like that. I love it. It’s in a great area. I know what things are selling for there. I’ve got all the stuff lined up, but the problem is slope. I’ll tell you it’s slope and it’s a little too far out. There’s no one around there doing anything.

Steven Butala:
So this is brilliant, by the way. This is a fantastic real world example.

Jill DeWit:
It is a real example that I’m giving, exact, thank you. So it’s slope. It’s a little far out there, and so what do you do? So number one, before you call the seller, I want you to have it in your head what you want to get out of the phone call. I think a lot of people don’t do this. And write it down. I want you to write it down on paper, on your computer. This is my max offer. I want you to give yourself a little bit of a leeway because depending how the conversation goes, you might hit that max. He might say, here, he might take this price. Five or 10. Let’s just say that. Five or 10. He’s somewhere… That’s what you’re willing to pay. And even up to 10, you feel great, you know?
So write it down, practice this. You’re the pro here. You’re calling back. You’re the owner. This is your company. This is what you do all day. And if you have to practice with somebody even in front of the mirror, I don’t know, record yourself. I would even just do that. If you have no one around that you could bounce it off of and say, “How did that feel? How do I sound?” Just record yourself and play it back. I’m sure you will get a lot out of that.

Steven Butala:
You want to role play?

Jill DeWit:
We can at the end.

Steven Butala:
Okay.

Jill DeWit:
Sure, sure. Then, I also want you to have your facts. You’re calling this person back, offering a different price based on what? You need to tell him what it is that you’re basing it off on, and mine is slope. It’s clearly four wheel drive and it’s going to be iffy, and that kind of a thing. So in this situation, I actually had some information, well, let me give you the real world. So I didn’t… I hadn’t talked to this guy yet, but I knew what I was going to do, but that’s why I say have your price between five and 10. So when I called the seller back, the conversation went like this. “Have you seen the property?” I’m starting to set him up for where this is going. “When was the last time you were there?”
“Oh, gosh, it’s been years.” “What did you do with it?” “I used to go there and hunt.” I said, “Okay. So you can get in and out?” “Yeah.” Well, I come off this road and I’m looking at the map. I have Google Earth open and I have NeighborScoop open and I’m looking at it so I can see the legal access and the physical access. He’s like, “Yeah, what I used to do is I’d stop here. And then we’d get on four wheel drives like ATVs and go the rest of the way.” I’m like, “Got it.” So then as we’re talking, I said, through the conversation, I’m like, “Okay, you already told me access is iffy, got to get on an ATV back then. Who knows what it’s like now?” “Yeah. You’re right.” “Did you ever spend the night there?” “No, I didn’t camp there.” I thought that was interesting because I’m like… What’s so funny?

Steven Butala:
This is brilliant. You’re just setting him up-

Jill DeWit:
I did, well-

Steven Butala:
Setting him up. You should have been a litigator.

Jill DeWit:
Thanks. Sorry. This is all. Yeah, this is all. This is like just fresh in my mind. I just did this the other day. So I said, “Did you camp there?” “No.” I said, “All right. So we don’t really know of a flat spot.” That’s where I was going with this too. I said, “I’m having trouble with the access and the slope here, but it’s a beautiful property.” I gave him a pat on the back. I can see… I asked about, was it ever logged, any trees off of it? “Nope. Nope. Nope.” “Okay, good, because it looks real lush and full and pretty to me too. So, I’m good with that, but I can’t see what anybody can do with it except go there like you did on a day hunting trip. And that’s not enough for me to spend this much.”

Steven Butala:
Oh, my gosh. You’re a genius.

Jill DeWit:
Thank you.

Steven Butala:
Jill, you are a freaking genius. You’re the best business partner I could ever hope for. That is just brilliant. And I’m not exaggerating. Go ahead. I want to hear the end of the story. Now we don’t need to role play.

Jill DeWit:
So, well it’s funny, because the story’s not over. I’m actually still waiting for him to call me back is where it is. But I want to just teach you my stuff, because sometimes they call you back. Sometimes they don’t. So, I laid all this out. I even, this one I didn’t need to, but at times I throw in some market research like, “Hey, I know the property two properties over sold for this much in anchor. And it has a cabin. This one over here is beautiful. It’s got streams and a well.” I can point out I’ve done that too, so they kind of know. And you know, I’m not making this stuff up. And I really think that they know that. I know this gentleman knows that I’m, that I’m truthful and honest.
And so I gave… I set this all up. I said, “So basically, the end is for those reasons, I wouldn’t pay more than five or 10,000, period. And I said, “Look, I’ll give you 10,000 now. And if you want it next week, we could even do it that fast.” That’s what you need to do. And then wait for his response. His response was, “Oh, no.” I said, “Okay. What’s up?” “I don’t need the money.”

Steven Butala:
Okay. That’s fair.

Jill DeWit:
That’s the thing. “I don’t need the money.”

Steven Butala:
That’s good, actually.

Jill DeWit:
That was exactly his reason. I didn’t need to beat a up or I don’t want to negotiate. I wrote down my five or 10,000. I wasn’t going to go over 10. I gave him the 10, because he gave me new information about the hunting and the ATV that I didn’t know, that he told me that I can get up there.
I’m like, “All right.” And, I believe him.

Steven Butala:
So do I. And that’s not necessarily a bad thing.

Jill DeWit:
Correct. Correct. Exactly. So, the right buyer’s going to love it. So what I did, I said, “All right, well, promise me this. Please save my letter.” I said two things. “Number one, please save my letter, because you know, in six months from now, if you’re… $10,000 might sound good.” He’s like, “Yeah, you’re right.” I said, “And, number two…” I could tell he was older. I didn’t say this. But I said, “Number two, I see it’s just in your name. Will you promise me you’re going to set this up for the kids.” And this is truthful.

Steven Butala:
You’re a genius.

Jill DeWit:
And I said, “Because right now, if anything happened to you, it’s only in your name. It’s not a trust. Kids would have a mess getting this property in their hands.
Can you just set it up for the kids, legally, so they can transfer it and have something to do with it later on.” Because I think that’s what he thinks. I said, he doesn’t need the money. He’s probably going to hang onto it for the kids. When, if you really are going to do that, set up the kids, kind of thing.

Steven Butala:
You should teach a class.

Jill DeWit:
Thank you.

Steven Butala:
Oh wait, you are right now.

Jill DeWit:
I kind of am. So we hung up the phone. I felt good. I was confident. I gave him my highest offer that I was willing to do. And I pointed out all the reasons why I stood behind my offer. You know this man is thinking about this today, tomorrow, next month, $10,000 is going to sound better. And, there’s a really good chance he’s going to call me back. And if he doesn’t, that’s okay. I’m okay with that, too. This was not a property, and I want to point this out too, that I was dying to have. And you know what? I told him this, “I’m not going to live or die…” I don’t know if I told this guy or the other guy, but I say this often, “My career is not hung up on this property.”

Steven Butala:
On your dirt.

Jill DeWit:
Exactly. And you can say that in a nice way that doesn’t offend people, but really lets them know. “I got a lot of property I’m working on. I’m happy to give you $10,000. If not, that’s okay. I’m not going to bug you.” And let them-

Steven Butala:
I have a few things to add. You know, aside from the fact the obvious where the vast majority of the time, Jill does this it works, and we buy the property for the price that she wants it. The other point is that there’s a chance that he has received offers in the past or may receive offers in the future. Who do you think he’s going to call back, somebody who’s like this, like Jill’s little speech there, who’s respectful, answers the phone, gives good reasons. Or some guy who’s like, “Hey, I want to buy your property for 15,000 bucks, man. Give me a call.” And that’s typically what’s… And then they don’t answer the phone on the way back.
So the unspoken reality of how Jill is approaching this is truly sales. She’s selling herself and it works. And so when he is ready to call her, and if he’s got… He’s staring at three offers in a file somewhere, he’s going to remember Jill. I guarantee it. It made a huge impression on me, a lifelong one, and we have a show about it. So my point is, implement that if you can. Make it a memorable phone call.

Jill DeWit:
You know, it’s so funny. Maybe I’ve just been in sales so long I don’t even see it that way. And maybe you do-

Steven Butala:
How do you see it?

Jill DeWit:
I don’t see it that way. I see-

Steven Butala:
It’s extraordinary, Jill.

Jill DeWit:
Well, I just see it as-

Steven Butala:
I’m here to tell you.

Jill DeWit:
Because I’m legitimately offering my experience and information to him and I’ll walk. I’m not doing this to be funny. I really will walk. So what happens in our system? I mark it “Canceled due to price,” and it goes off my list. And if he calls back, great. If he doesn’t, that’s fine. I’m not going to re-mail him, re-call him, bug him in 90 days. I really do have that much deal flow. I don’t need to. And if you’re doing it right and you’re doing it like we do, so do you.

Steven Butala:
Well done.

Jill DeWit:
Thank you.

Steven Butala:
There’s no way I can improve on that. I used to have Jill’s job. That’s the truth of it. Jill and I joined forces around 10 or 11 years ago. And before that I had a decade or a decade and a half of doing this on my own with employees. And I was happy to give this job up after listening to her on the phone, just the first couple of times, I’m like, there’s no way I can improve on this. I’m going to go focus on data. And so if you’re… Again, we interviewed somebody yesterday, it’ll air next week. She has a partner and her partner is her Jill. She’s the data person. So you might be the Jill. Get yourself a Jack. You’re going to do a lot. You’ll save yourself a lot of angst. And I had to do it for 15 years by myself.

Jill DeWit:
Thanks. Happy you could join us today. Five days a week, you can find this right here on the Land Academy Show

Steven Butala:
Tomorrow, the episode on the Land Academy Show is called the future of real estate data is now, and it’s in real time. You are not alone in your real estate ambition-

Jill DeWit:
Your long pauses-

Steven Butala:
You’re extraordinary.

Jill DeWit:
That’s funny. Thank you. Oh, thank you very much. I don’t know why this comes naturally to me, but it just does.

Steven Butala:
I do. I think everybody’s got something that comes natural to them.

Jill DeWit:
That’s true. This is it for me.

Steven Butala:
It’s just your thing.

Jill DeWit:
Yeah. And I’m good at it. It’s funny. It’s like going to Mexico and the guys haggling with you about the silver on the corner. I’m really like, “No, no, I really don’t want it. No, I really don’t want it.” It’s kind of funny.

Steven Butala:
And as a kid, I got a job, a summer job, working for my buddy’s father’s company. And it was right when computers were on the desktop and everything was with discs, so if you wanted to run a program, there’s no hard drive. So you’d run a program, you’d take the disc, you put it in the computer, load up the program, take the disc out, because now the programs loaded in the ram, put your data disc in and go to town. And this was long before Microsoft Office. It was my Microsoft 3.1 or whatever it was before that. And we were running Lotus, and it was a large manufacturing company that was just on the fringe of being computerized. I’m a kid, whatever, 16, 17 years old with a wrinkly shirt and whatever. My hair is probably too long. And so they asked me to do this task.
They sent me to one of their… This is all coming around to Jill’s talent. And I did. I went to one of their manufacturing facilities. I helped the staff there in the front office to kind of… And everybody took notice in the corporate office and I came back and they’re like, “You got to teach us how to do that.” And so me and my buddy taught Lotus to all these people who are 20 years our senior. And they were just with their jaws dropped, because they’d never seen anything like that before. There was no YouTube that I’d go and teach myself how to do Lotus. Lotus was a spreadsheet before Excel. I was just born with this, and I’m not tooting my own horn. That’s just how it was and it really launched me. I really realized at a very young age that computers and data and stuff is just my thing. And so it really helped to boost my confidence. You didn’t learn how to do this. I am sure you were born with this sales thing.

Jill DeWit:
Thank you. I just decided I’m due. This is October. I am going to do a live Facebook training every month. It’s on YouTube and Facebook. I think this might be my topic.

Steven Butala:
Let’s have a short meeting right now.

Jill DeWit:
I’ll get more in depth on it.

Steven Butala:
So I was thinking, we’re going to do this at… Jill and I are going to do a continuing… What we’re calling around the office, continuing education, or because everybody’s asking for it. And we’re going to do it in a very organized and methodical, hopefully a helpful way. I was thinking we could call it Land Clinic. And then the topic. So we could do Land Clinic. And then whatever, some of the topics are better for me to teach. Some are better for you.

Jill DeWit:
Oh, put that in Land Clinic, and so whatever-

Steven Butala:
Oh no, do your Facebook live thing.

Jill DeWit:
Do both?

Steven Butala:
I’m just saying, call it Land Clinic. Let’s start branding that.

Jill DeWit:
Okay. Can we play with a word a little bit?

Steven Butala:
Yeah.

Jill DeWit:
Okay, good.

Steven Butala:
You don’t like clinic?

Jill DeWit:
No, it’s got a COVID flare to it.

Steven Butala:
Oh, I didn’t think about that.

Jill DeWit:
Yeah. If I’m going to a clinic, it’s not a good thing. Am I wrong? Does clinic give you a warm fuzzy feeling?

Steven Butala:
It does for me, because I come from that background and inservice is a positive thing. And clinic’s a good thing. But I understand your point.

Jill DeWit:
Okay. Sorry. Thank you so much. We are happy you are here and we hope that you enjoyed this content. I’m trying to ad lib here and not be blase’. So if you love us, please like us, show some love. However it feels good with you. Not monetarily, just like us. Subscribe. Do something. Thank you.
We are Steve and Jill.

Steven Butala:
Information-

Jill DeWit:
and inspiration-

Steven Butala:
to buy undervalued property.

—————————————-

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