Pick a County and Price it – the Two Ps – PP – Its a Thing Now (LA 1475)
| Pick a County and Price it – the Two Ps – PP – Its a Thing Now (LA 1475) |
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:
And I’m Jill DeWit, broadcasting from sunny Scottsdale, Arizona.
Steven Butala:
Today, Jill and I talk about how to pick a county and price it. We all call it the two Ps. It’s a thing now. It just became a thing because it was born out of a discussion in Discord about-
Jill DeWit:
I thought you were going to say disgust.
Steven Butala:
Well, maybe there is. No. On somebody’s part there might have been some disgust. It’s just one of those things where it’s so simple. We all know we have to do it, like exercising every morning, but it doesn’t happen often enough. In my case, anyway.
Jill DeWit:
Would you just pick a damn county?
Steven Butala:
That’s it.
Jill DeWit:
That’s it.
Steven Butala:
And get it priced.
Jill DeWit:
That’s it. People get hung up on that.
Steven Butala:
This’ll kick your whole career off.
Jill DeWit:
Totally. And don’t pick one that we’ve all talked about.
Steven Butala:
Well said.
Jill DeWit:
Now I’m done. We don’t have to do this episode.
Steven Butala:
Before we get into it? 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 already a member, join us on Discord.
Jill DeWit:
John wrote, “How soon should I expect to start hearing back from my mailers? The first one, 600-ish mailers, went out on March 18th.” So, this is cool. So Leonard, dear Leonard in Ireland … I’ll weigh in on this too.
Steven Butala:
Thank God.
Jill DeWit:
Dear Leonard in Ireland wrote a response that we have shared here. I’ll read that and then I’ll give you my response.
Jill DeWit:
Leonard wrote, “You should get a response in a mailer, but I typically buy one in 1500 sent. If I get a high response, it can be less than a thousand units per purchase, but you may not get a deal in only 600 units. Depends on how much the area is mailed. Great start and look forward to hearing your first deal. Not to say it doesn’t happen, I got my first deal on a 200 unit mailer.”
Jill DeWit:
Two things are going on here. I’ll let you handle the second part, which is the volume that he sent. I’ll handle, the question is, did it hit? Is anybody going to call me? This happens every single time, including to Steven and I. We’ll send out these mailers, we’re like, “When’s it going to hit? When’s it going to hit? When’s it going to hit? Did we do something wrong? Did we forget our phone number on there? Is our address wrong?” We go through all the possible scenarios. Or, “They all hate them. I did something wrong. Everybody’s shredding them right now. I’m not getting a response.” And then you watch, you wait two days and here comes a blast of response. It’s always our first reaction that we just, we’re like, “Oh no.” The calm before the storm.
Steven Butala:
I take it even more seriously than Jill. I’m like, “Ugh, I guess my career is over.”
Jill DeWit:
Yeah, “My pricing, I’m done.”
Steven Butala:
I guess all the land that’s ever going to be sold, is sold.
Jill DeWit:
Is done. That’s right. We’re done. No one’s going to do this anymore. What have we done?
Jill DeWit:
Yeah, whatever. No.
Steven Butala:
I’m just joking.
Jill DeWit:
So funny.
Steven Butala:
I used to do that a long, long, long time ago. Way before Jill. I obviously stopped doing that.
Jill DeWit:
Tell me about what you think about the volume he sent though. That’s the thing I want you to touch on real quick.
Steven Butala:
I think it’s crazy. I think Leonard was very, very nice about it.
Jill DeWit:
He was politically correct.
Steven Butala:
I’m running out of analogies to explain this. Now I’m thinking it’s might be biological, that makes somebody want to test this mailer concept. A couple of my favorite ones are, if you walked into a casino and pulled the handle on a slot machine, which I would never recommend that you would ever do ever, and then didn’t win and walked out, that would be the same thing as sending out a 600 unit mailer.
Steven Butala:
If you went out into the 10 miles out into the ocean and dropped a single line in, never turned on any of your equipment, cast it three times and said, “There’s just no more fish in the ocean,” and you didn’t catch anything and then never go fishing again, that’s what sending 600 mailers is, versus walking around the dock, talking to all the guys that came in with all kinds of fish, “Where do you go? Do you have GPS coordinates? What kind of fish finder do you use.” And really using the equipment that’s available and the word of mouth community, like in that little marina, wherever, just like Land Academy-
Jill DeWit:
This is good.
Steven Butala:
… then you’re going to go out there with the right equipment, put about 10 lines in, spend all day and bring a serious amount of fish back.
Steven Butala:
I don’t even know where this 600 unit mailer came thing … Tomorrow there’s … we’re going to air an interview with a longtime member, Matt Bailey. He says, “I know what the problem is. You guys, in the beginning, told us that we only have to send out 300 to get a property.”
Jill DeWit:
Oh, I see what they’re saying. Ding-ding. I got it. Do you want me to explain it real quick here?
Steven Butala:
Yeah, sure.
Jill DeWit:
It’s because of the yield. We went back and looked at, you send out 1500 units, you’re probably going to buy three to five, whatever it is. People deconstructed that and said, I only have enough money to buy one, I have enough money to buy two, so I’m only going to send out that much mail.
Jill DeWit:
I just got it.
Steven Butala:
And they followed it up by this. If you’re buying really inexpensive desert property where the owners have no intention of visiting it, they just purchased it for whatever reason or inherited it, that 300 unit, he said he tested it, that 300 unit number works. If you’re going to buy property for 500 and sell it for a thousand or 1500 in the desert, out west, specifically, southwest, there’s a chance that three to 600 might work.
Jill DeWit:
I understand.
Steven Butala:
If you’re out buying $50,000 property, which is what we buy … in the group we’re trying buy for now 30 to 50 and sell for a hundred, 120, you got to get some mail out. In fact, I would say it might, for that level, it might be 3000 to one.
Jill DeWit:
I get it now. That’s funny.
Steven Butala:
This question will go on for infamy.
Jill DeWit:
I just thought of something. I got to run this by you. This concept just came to my head. There’s some people that are from other groups that have a secret county list. They’re all mailing everybody in the secret county list. I wonder if part of the concept is to barrage these poor sellers until they finally sell because they can’t take the mail.
Steven Butala:
Just punish them with mail?
Jill DeWit:
Yeah, exactly.
Steven Butala:
That would work on me.
Jill DeWit:
I know. You’d be like, “Screw it. The next offer that comes in, I’m going to sell it because I’m sick of getting these offers.” Could you imagine?
Steven Butala:
They’re never going to use it anyway and I know it’s worth more.
Jill DeWit:
Wouldn’t that be funny?
Steven Butala:
I would get worn down like that.
Jill DeWit:
It just dawned on me. Maybe that’s somebody else’s concept, “I want the good stuff.”
Steven Butala:
Men are predisposed to get worn down by things like mailers-
Jill DeWit:
What?
Steven Butala:
… and Pepsi commercials, beer commercials during a football game. And sometimes-
Jill DeWit:
Car commercials.
Steven Butala:
… women too.
Jill DeWit:
Thanks a lot.
Steven Butala:
Today’s topic, pick a county and price it. The two Ps. It’s a thing now. This is why you’re listening.
Steven Butala:
Well, we kind of answered that in the question. That was a strategic on my part, to put that question in this topic. None of this is going to start or end or be profitable or enjoyable at all, unless, just think of one thing, you just need to pick a county and price it. The worst thing that’s going to happen to you, the absolute worst thing, is you’re going to … maybe you’re going to price it too high or too low, you’re not going to get the response that you want. Great. You learned, and go do it again.
Steven Butala:
There’s a guy, a couple of guys in our group that I’m helping. They’re on their third mailer and now they hit it. They found that fishing hole. They were very, very, very concerned. You start to have doubt in yourself, like, “Well, all these people on Discord are doing it and Land Academy and these guys are getting rich over here.” It’s like, “I’m on 6,000 units. Maybe I’m not smart enough.” That’s just not the case. If you’ve made it that far and you’ve done a mailer and you price it and all that, you just need a little bit of practice. That’s it.
Jill DeWit:
Isn’t that funny? I hadn’t even thought of that mindset. It used to be just you and me. You and me walking around and talking about, it’s impossible, when we were just building Land Academy. We didn’t have this community. Now we have this huge community of people that are successfully doing this. We don’t have to explain that anymore, but now it could have the opposite.
Steven Butala:
Took that of the list.
Jill DeWit:
Now it could have the opposite effect, like, what if I’m not as smart as these people? These hundreds that are over here. Maybe I can’t do this.
Steven Butala:
Taps into a fear of failure thing.
Steven Butala:
I really truly mean this, if you’ve made it to the point where you’re getting mailers out, you’re going to hit it. You just, you might need some extra help. There’s no shame in that. That’s why there’s groups like Land Academy. Every time anybody reaches out on Land Investors or Discord on these Thursday calls that we do, “I need some help with X, Y, Z,” we help them.
Steven Butala:
It might not be me personally. Sometimes it is me personally, but we’ve got the moderator for both of those forums right now. Kevin Farrell, who we interviewed, I think last week, that aired last week, has his own consulting company that we help them with, to review mailers and discuss counties and all that. If you made it this far and you’re just concerned, you can’t pick the county or you can’t price the county that you’ve picked, or you just need another set of eyes … You don’t get a trophy for doing this alone. That’s why you join a community. Reach out to people everywhere. Everybody will help you. It’s like an RV park. One person’s broken down, everybody just comes out of the woodwork to help.
Jill DeWit:
They’ve got the tools.
Steven Butala:
The tools and the mentality, and they’ve probably already been there.
Jill DeWit:
Because somebody helped them. I use this a lot.
Steven Butala:
Tell me about it. Show me a person that says they’ve never had a problem with their RV, and I’ll show you a huge liar.
Jill DeWit:
These are the two hardest things. If you can just get over these obstacles, and they’re mental, that’s all it is, is zero gain on a property. When you take a step back, you look at a county map … I happen to have one. I have a beautiful metal … I bought it at a art show one time. It’s big. It goes on my wall and it’s every single county in the whole country. When you step back and when you look at that, 3144 counties and parishes, that’s overwhelming. I can see why you’re like, “Whoa, where do I start?” But you know that you have the tools. We teach you where to go. We teach you what triggers to look for. That’s my whole point, too.
Jill DeWit:
It’s hard. I understand getting over that mindset, like, “Now I’ve picked my counties. I’ve learned how to do the red, yellow, green test so I pick the three of the top 15,” or however many I put together, “I lined them up with each other and these three jumped right out, so I know I’m golden there. Now I got to price them.” That’s a whole nother mental hurdle obstacle that I think people have to get over, but just do it. If you do it wrong, you priced too high, so what? We can recover. You price too low, that’s even easier. You can recover. Don’t worry about it.
Jill DeWit:
You just have to mentally [inaudible 00:11:47] these … whatever you want to call them. Issues, roadblocks, obstacles, tasks. It’s a task. It’s just part of the process. Move on and you’re going to be fine. Everything else is going to fall into place.
Steven Butala:
Here’s what you don’t want to do. Every single class I’ve ever taken, starting from kindergarten all the way through college, there’s one person in this class that’s just like this, “I don’t need to read the textbook or really listen to what the teacher’s saying. I’m just going to ask questions all the way through the entire process, for me.” If you join Land Academy and 10 minutes later you’re out on these forums saying, “I’m ready now. How do I price the mailer? Steve said it in episode number 1475 I should ask for help.”
Jill DeWit:
That would be funny, “Could someone do it for me? Can you give me a video? Can you walk me through this? Are you available tomorrow?”
Steven Butala:
You said it, woman. That’s exactly what happens, and that’s not what you want. What you want to do is go through the education-
Jill DeWit:
Learn.
Steven Butala:
… maybe twice, maybe three times, sometimes four. I hear that some of the more successful people said, like Matt said this, “I watched the videos 17 times until I actually understood it.” Matt Bailey in tomorrow.
Steven Butala:
You need to learn the education. Go make a couple of sandwiches and put yourself in a dark room for however many days it takes to really absorb this until it clicks. Like math. I never understood math all the way through math. Just keep trying and trying and trying until it clicks. Or use the resources out on the internet for YouTube or whatever else. Then when you can produce the red, green, yellow test, Jill went over this really quickly but I’m repeating it slowly because it’s so important, when you can produce what we call a deliverable, a red, green, yellow support for, let’s say, a county in-
Jill DeWit:
Texas.
Steven Butala:
… North Dakota or Texas or whatever. I’m trying to get creative about this and not just use the same ones. You can say these eight counties in North Dakota, these two actually seem to support through the red, green, yellow tests. So I pull the data and I price it just like it’s … show us, but I’m just … I don’t want to pull the trigger because I need someone to look at it. That’s when you reach out for help. You don’t just join and say, “Hey, I’m here. I’m here with my tiara on.”
Jill DeWit:
Yep. There we go.
Jill DeWit:
Happy you could join us today. Five days a week, you can find us right here on the Land Academy show.
Steven Butala:
Tomorrow, the episode of the Land Academy show is called, An Interview With Longtime Member, Matt Bailey. I’ll tell you, it’s just he and I so we get down into the tactical part of this. His forte is staffing and scaling. He’s been with us for four years.
Steven Butala:
I never heard his name until the interview and he says right in the interview, he says, “I’m one of those guys that you always talk about, where you just never heard of me. I got into the program and made it really, really work. I’m trying to … working my way through my W2 situation,” and all that, to get rid of all that. It was just a pleasure to talk to the guy. Everybody loves success. It’s a half hour success story, is what it is.
Steven Butala:
You are not alone in your real estate ambition.
Jill DeWit:
Thank you.
Jill DeWit:
I look forward to listening to it.
Steven Butala:
Where were you that you couldn’t do it? When Jill’s not in front of this camera, there’s a damn good reason.
Jill DeWit:
Other projects. There’s a lot of other projects.
Steven Butala:
You’re just going to leave it at that.
Jill DeWit:
Exactly. Totally.
Jill DeWit:
If you are interested in learning more about us and what we do, check out landacademy.com or houseacademy.com. We provide the education, tools, and support you need to be flipping property like the pros.
Jill DeWit:
We are Steve and Jill.
Steven Butala:
We are Steve and Jill. Information …
Jill DeWit:
And inspiration …
Steven Butala:
To buy undervalued property.
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