Post Transaction Communication (LA 1429)

Post Transaction Communication (LA 1429)

Transcript:

Stephen Jack Butala:
Steve and Jill here.

Jill DeWit:
Hi.

Stephen Jack Butala:
Welcome to the Land Academy Show. Entertaining land investment talk. I’m Stephen Jack Butala.

Jill DeWit:
And I’m Jill DeWitt broadcasting from sunny Southern California, for me.

Stephen Jack Butala:
And Arizona.

Jill DeWit:
Anyway.

Stephen Jack Butala:
Today Jill and I talk about post-transaction communication and we’re also trying out new software. So we’ll see how this goes.

Jill DeWit:
Exactly.

Stephen Jack Butala:
Sometimes it’s appropriate, I think, when the deal is all done to talk to a seller. And when a buyer buys property, it’s appropriate post transaction to talk to them too. Jill is going to tell us all about it. Although my personal opinion is that it’s not that common, but we’re going to find out from the expert. 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 and if you’re a Land Academy member, please join us on Discord, which is getting more popular by the minute. I’m happy to report.

Jill DeWit:
I saw you in there just a little while ago. Lucas wrote, after five months, 4,000 letters, and five completed assignment deals, I finally got a deal that I was able to self-fund and now it’s under contract to sell. It feels great.

Stephen Jack Butala:
It’s a beautiful way to say it’s working.

Jill DeWit:
Exactly. My offer was for a property that was already listed. The seller and I couldn’t agree on a price. However, he had a tiny parcel in a nearby county that he was also wanting to get rid of. It was so tiny that I wasn’t sure if anything could be done with it, but it was right downtown in a nice community directly off main street. City zoning allows for trailers and modular homes, so I went for it.
We agreed on a price. Closed quickly. I put it up for sale. I put up a for sale sign and it was under contract to sell within a week. Never even had time to get my posting online. Bought for $3,800 and sold for $9,000. Now I have enough cash to go back and try some deals that I missed from my first mailer. Again, I owe a debt of gratitude to this community. Your examples, keep us going. Thank you. How cool is that?

Stephen Jack Butala:
It’s kind of a mic drop posting.

Jill DeWit:
Exactly. So it wasn’t really a question. It was really like, hey, here’s my story. I love it. I’m so glad, how great is that [crosstalk 00:02:39]

Stephen Jack Butala:
Congratulations Lucas, that’s fantastic seriously. I’m very conscious now, Jill of the words that I use, because yesterday we had our Thursday webinar and some of the members reported… Our regular members reported to us that they have a side drinking game going on because it’s kind of at night, based on the words that Jill and I say probably too often. So I just said fantastic and I know that’s one of the drinking words.

Jill DeWit:
Yep. Okay. Everyone now you got us started. Now we’re going to come up with our own drinking game.

Stephen Jack Butala:
Yeah. [crosstalk 00:03:20] I mean, this airs at 3:00 PM. So I hope there is not that much drinking, but if you’re listening to this at nine o’clock, as Jill says, drink yourself silly.

Jill DeWit:
Yep. Exactly.

Stephen Jack Butala:
Today’s topic, post-transaction communication. This is the meat of the show. So like I said, in the intro, Jill, when do you think, is it appropriate? Or do you have communication right now with anybody that consistently they like to do as a friend, that you’ve done a deal with either on the buyer or the seller side.

Jill DeWit:
Yes.

Stephen Jack Butala:
You really do?

Jill DeWit:
Only one and it’s a personal transaction. That’s the only reason why.

Stephen Jack Butala:
Like a primary residence?

Jill DeWit:
Yes.

Stephen Jack Butala:
You’re not going to tell us?

Jill DeWit:
And she happens to be the lender. So right now she’s my best friend.

Stephen Jack Butala:
Oh, it’s not post-transaction or post down.

Jill DeWit:
No, but okay. Post-transaction? I’m trying to think here. I’m going to go with no, if I can’t think of anybody. I’ve had many, many, many that want to be my friend that have said come on over. Even transaction. It’s things that we’ve bought, not even that we’ve sold. Because I’m communicating with them, usually on the buy side. I’m talking to the sellers and getting the deal done. And they have wanted to have long-term friendships with me and invite you and me over for dinner and things like that. It’s very sweet. But most of the time? No.

Stephen Jack Butala:
That’s exactly what I thought you were going to say. I think that most of those are…there’s only a couple of benefits that a real estate agent or a broker can provide in general, I think for a land or a house deal. I’m not talking about commercial because I think that’s a whole different thing. And one of them is taking ornery sellers and ornery buyers and separating them and not allowing them to communicate until it’s over. So if they communicate at all, when it’s over.

Jill DeWit:
Did you just say ornery? Like angry ornery?

Stephen Jack Butala:
Just, you know how sellers can be or buyers can be, or you know how we can be. We can, it’s like, [crosstalk 00:05:31] especially at this point in our career where it’s like, I go into every deal saying, you know what, just give me a reason not to do this. Even though it’s really profitable. It’s like, just say the word, my finger is on the trigger.

Jill DeWit:
I personally, some of the reasons I have people staff in place is because don’t let me talk to that guy because I will get mad and we’re not going to get what we want out of it because he’s being a stinker.

Stephen Jack Butala:
We just terminated a deal. We talked about it a couple of weeks ago where we had netted half a million bucks on those properties.

Jill DeWit:
I don’t care.

Stephen Jack Butala:
And you know what, it’s not worth it.

Jill DeWit:
Nope.

Stephen Jack Butala:
It’s not worth getting yelled at and cursed at and stuff.

Jill DeWit:
Well, it’s like on our weekly member calls, when we’re talking to…everybody has a “would you do this deal” segment. They bring in some deals that you have to take a step back. And we’re usually saying your time is worth more than that. Usually it’s money-related, but it also can be just stress and hassle related that I would argue that you don’t need to do that deal that bad. That guy’s going to be a jerk and drag you through this transaction and call all the shots and make you jump or whatever it is. And it’s just like that’s not how you roll, which you shouldn’t be. I would move on to the next person.

Stephen Jack Butala:
So here’s my next question. How much communication is too much communication during the deal? Or is there such a thing?

Jill DeWit:
There is such a thing. I, as a matter of fact, I have one right now, totally serious. She called me on…see as we’re recording, it’s Friday. We spoke Monday and Tuesday. Wednesday and Thursday are email days. And now it’s Friday. I haven’t heard for her, thank goodness, because I kind of told her–back off. So, I’m the seller of this property. She’s all excited. She’s telling me her story. She’s going through a divorce and her brother is going to buy this property with her and he wants to get all involved. She came on hot, asked for a purchase agreement. I did it quickly Monday morning, sent it to her and there we sat. And then now here come the due diligence questions. And I’m like, everyone, everyone, everyone.

Stephen Jack Butala:
Good for you.

Jill DeWit:
Right? I just said here, I very politely, instead of saying Google it, which I could, which I said, I’m going to be really nice. I said, here is the phone number. Here is the people. Call the County and spend weeks and weeks and weeks, if you want to talking with them about it. And I had to two times. It took two times and then she got it. I finally said, we’re not doing anything until you’re ready. We’re not doing anything until you’re ready. You need to call them. You can go drive out there whenever you want. You can roll around on it if you want. I don’t care. So have at it. Talk to the County. Blow up their email, blow up their phone, let me know when you’re all done. And I’m actually glad that how I ended it was, I said, I’ll know you’re ready when you sign and return the purchase agreement. That’s it. And she got it the second time. She got it.

Stephen Jack Butala:
You think she’ll sign it?

Jill DeWit:
I’m not sure. I’m on the fence. She could either be an amazing pain in the ass tire kicker, which there are a lot out there or she could be legit. I’m just going to sit back and wait. But no matter what, I mean, it really wasn’t a whole lot of time. It was like a phone call here, a phone call there, a couple emails and that is it. And then I made my point that there’s nothing to talk about. Like I said, everything I told you is in the posting and here’s a phone number to call for everything else. If you’re in great. If you’re not, don’t bother.

Stephen Jack Butala:
So interesting. We’ve both been doing this for so long. You can tell right away, if somebody…there’s just so many reasons people want to call you during a transaction. And I think more than half of them are just for reassurance, either on the buyer or the seller side. And I’m not…that doesn’t work well with me.

Jill DeWit:
So, I entertain like one or two phone calls. I’m totally set up prepared for that. Like you just said, making sure we’re here. We’re going to follow through. Is everything as stated? Because they just found it online. I mean, that’s the bottom line too. This one is on the MLS. So they found the MLS. They want to call and make sure, is it still available? Are you who you say you are? How would this transaction go down? Like that is not on the MLS. So I totally entertain that, but we don’t need really much more than that. Once we have that conversation, I clearly state, this is everything I’ve got. I clearly state, I’m not going to meet you there. Knock yourself out. I have a lot of interest. I’m not going to…when you’re ready, then we’ll talk. And then that’s it. But so yeah, I don’t. If there is too many phone calls, that is just a huge red flag. And that’s where I’m going with this person, so that they’re teetering on too much communication and I’m like, you’re not real.

Stephen Jack Butala:
You and I are buying a primary residence right now. And the amount of conversation and communication that’s going on in that deal, I think is grossly over the line.

Jill DeWit:
Totally.

Stephen Jack Butala:
Because we put a previous property under contract, which fell out of contract for inspection reasons. And there was no communication with that. Everything was fine. So I think…do you think it’s the personalities involved?

Jill DeWit:
Yes. Because I know it’s not us.

Stephen Jack Butala:
Yeah. We’re not…we’re the constant. You’re right. They’re the variable.

Jill DeWit:
I wonder…one of them…well, I’ll tell you for sure, I think one of them really was wanting to be our friend and I think that is really sweet. Actually, when I say our, I mean my friend. So I actually am kind of making a friend in this transaction. So, that’s really cute. But no, it’s funny. You’re right. We’re the constant, they’re the variables. So some people just pick up the phone. I don’t know if it’s age or gender or how they were trained, but some people like to have a lot of communication. I’m even learning that a little bit right now with a new employee that we have that reports directly to me. She’s trying to figure out and test the water with me. She’s not really understanding. Because I’ll go dark for three days. I’m like, you know what you’re supposed to work on, you don’t need me, kind of thing. We’ll email and we have stuff that we communicate online and that’s it.

Stephen Jack Butala:
I’m a huge fan of communicating. I know exactly what you’re talking about. Communicating through the calendar. Like this is an event, even if it’s a reminder, here’s everything you need to know. And that’s about it.

Jill DeWit:
Right? Exactly.

Stephen Jack Butala:
We’ve gotten this far. I think over-communication kills a lot of stuff, including relationships.

Jill DeWit:
Are you explaining to the masses why you’re sitting in one state and I’m sitting in another?

Stephen Jack Butala:
No. I don’t know. Is there something you want to tell me?

Jill DeWit:
No.

Stephen Jack Butala:
We’re communicating right now? It seems fine. I don’t know. You never really know.

Jill DeWit:
I will say this. It’s good to be missed.

Stephen Jack Butala:
Well are you missed?

Jill DeWit:
I am. Well, no, I miss you.

Stephen Jack Butala:
Oh, okay. I miss you too.

Jill DeWit:
That is what I’m saying. I hope you miss me. I’m not quite sure.

Stephen Jack Butala:
I think that’s a great place to end this.

Jill DeWit:
Okay.

Stephen Jack Butala:
Of course, I miss you.

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

Stephen Jack Butala:
Tomorrow the episode on the Land Academy Show is called “What is an HOA and Why Does it Matter in Land Investing?” You are not alone in your real estate ambition. Homeowners association or land owners association is what a [inaudible 00:14:14] stands for.

Jill DeWit:
Her POA. I’ve seen that one too.

Stephen Jack Butala:
Oh yeah.

Jill DeWit:
Property owners association. So, there’s a lot. We’ll explain.

Stephen Jack Butala:
Here’s a hint, they’re just as evil in land as they are in houses. Isn’t it interesting? Certain personalities love them. Most people just can’t stand it. We’ll talk about it tomorrow, I guess.

Jill DeWit:
If you need access to any sort of ownership or property details, including owner phone numbers and FEMA flood overlays, check out NeighborScoop.com created by investors–that’s us–for investors–that’s you. We are Steve and Jill. [crosstalk 00:14:56] Good enough.

Stephen Jack Butala:
Try it. Let’s try it again.

Jill DeWit:
Okay.

Stephen Jack Butala:
This is practice for the software.

Jill DeWit:
Okay. One, two, three. We are Steve and Jill [crosstalk 00:15:06]

Stephen Jack Butala:
You hesitate. Let me go. Ready?

Jill DeWit:
Okay.

Stephen Jack Butala:
We are Steve and Jill. Information and inspiration to buy undervalued property. [crosstalk 00:15:17]

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