Be a Producer Not a Consumer (LA 1484)
Be a Producer Not a Consumer (LA 1484)
Transcript:
Steven Jack Butala:
Steve and Jill here.
Jill K DeWit:
Hello.
Steven Jack Butala:
Welcome to the Land Academy Show, entertaining land investment talk. I’m Steven Jack Butala
Jill K DeWit:
And I’m Jill Dewitt, broadcasting from sweet Scottsdale, Arizona.
Steven Jack Butala:
Today Jill and I talk about how I think you really should be a producer more than a consumer, which is a ridiculous podcast topic because you’re consuming this podcast.
Jill K DeWit:
Yeah, [crosstalk 00:00:21] excited about that. I’m like, it’s interesting when you wrote that down, you’re like, “That’s a great line.” The other day, I’m like, “Where are we going to go with that?” So I do have some questions.
Steven Jack Butala:
Somebody in our land academy accountability group said, they typed this in and said, and so I really think that’s good advice for, you need to be a land investor, you need to produce.
Jill K DeWit:
Okay. I have questions. I’ll save them for the show.
Steven Jack Butala:
Before we get into it, let’s take a question posted by one of our members on our landinvestors.com online community. It’s free and if you’re already a member, please join us on discord.
Jill K DeWit:
You love the discord.
Steven Jack Butala:
I do love the discord.
Jill K DeWit:
Thank goodness that’s not a drinking game. I bet it is actually.
Steven Jack Butala:
For somebody it is.
Jill K DeWit:
Oh my gosh. It started on our Thursday call and now it’s just become a thing that we have a few keywords that we tend to maybe overuse. Like I’ve stopped saying dreamy, all of you.
Steven Jack Butala:
I have some too. Like tragic.
Jill K DeWit:
Tragic, yeah. That’s a good one.
Steven Jack Butala:
This is a tragic piece of real estate.
Jill K DeWit:
Oh yeah.
Steven Jack Butala:
And you’re approaching this in a very tragic way.
Jill K DeWit:
Exactly. Slopeyness. That’s another one. So anyway, it’s funny, it’s turn into a thing and discord is one of the words. As is Clubhouse and we’ll get to that later.
Steven Jack Butala:
Yep.
Jill K DeWit:
So Rebecca wrote, “Hi, all. Quick question I need advice on. I have a sold lot in North Carolina. It’s closing on January 8th.” This is a couple of weeks ago. “We had no idea if it was perced.” Oh my gosh.
Steven Jack Butala:
Perced is a drinking word.
Jill K DeWit:
That’s a drinking word for me. That is a trigger word for me. I’ve got to tell you right now.
Steven Jack Butala:
It is a trigger word for me, too.
Jill K DeWit:
I hate perc and any version of the word perc. So we don’t even have a percolator coffee thing. Anyway, “Buyer was told to do her due diligence and sign a contract. Seeing they’re responsible for all due diligence on the lot. The buyer never did a perc because-
Steven Jack Butala:
[crosstalk 00:02:19].
Jill K DeWit:
… because it would’ve taken too long. We’re not going to hold a lot for her that long. Neither of us, nor the buyer knew if it perced. Today, randomly, some realtor who we don’t know, just emailed us out of the blue and said, “oh, the lot does not perc.” An old client of hers ran a perc test and it failed. I don’t know who this realtor is or why she’s contacting us. Should I just close it to the buyer. Please advise, please.” You want to go first?
Steven Jack Butala:
Buck response. This is, in land investors-
Jill K DeWit:
[inaudible 00:02:50] people wrote in.
Steven Jack Butala:
Yeah, this gets great. I would not have put this in here if it’s not fantastically entertaining.
Jill K DeWit:
You’ve got lines and lines here. I see responses.
Steven Jack Butala:
There’s multiple responses, including our moderator.
Jill K DeWit:
All right. You want to read Buck and I’ll read the back half?
Steven Jack Butala:
Buck response, “sounds like sour grapes.” I couldn’t agree more. I always refer buyers to the county septic department if they have questions about getting a permit. Getting this hearsay from a questionable source, doesn’t suddenly make it your responsibility to forward to the buyer. If the county expressly told you that the lot won’t perc, then withholding that would be an issue, but that’s not what happened.
Jill K DeWit:
Exactly. It’s some random person. So Rebecca wrote, “I’ll tell you Buck…” this is good. “We were supposed to close on 12/30 and the buyer’s lender extended it to 1/8.” There was even a lender involved. Oh my gosh.
Steven Jack Butala:
That’s why this is an issue.
Jill K DeWit:
“We would have closed the lot without me even knowing that it didn’t perc.”
Steven Jack Butala:
One second.
Jill K DeWit:
“Now this random realtor e-mails me out of the blue.” Sorry.
Steven Jack Butala:
All happening because there’s a lender.
Jill K DeWit:
Yeah.
Steven Jack Butala:
None of us would… please attempt to refrain selling real estate where there’s a lender.
Jill K DeWit:
It’s okay. “I don’t know her. I have to be honest. I’m going to tell the buyer what I found out, but also let her know there’s a alternative septic systems she can get for the lot, if by chance.”
Steven Jack Butala:
That’s right. It’s five acres.
Jill K DeWit:
It’s 5.28 acres, walk to another corner.
Steven Jack Butala:
Yes.
Jill K DeWit:
I cannot believe that there are no areas that will perc on this slot with houses around it. Always something, Happy New Year. That’s hilarious. All right. And then Kevin, the moderator, wrote… is just the last one?
Steven Jack Butala:
Mm-hmm (affirmative).
Jill K DeWit:
Oh no, it’s more.
Steven Jack Butala:
No this is great.
Jill K DeWit:
Wow.
Steven Jack Butala:
This topic, I know it’s taking a long time, this perc topic makes Jill and I nuts.
Jill K DeWit:
Yeah.
Steven Jack Butala:
I will tell you, we’re in Arizona. We buy tons of property in Arizona, all the time. I don’t know if there’s any harder, from a soil standpoint, place in this entire country to build stuff and to get lots level and grading and all of it. There’s granite everywhere. I have never, ever discussed a perc test with anyone buyer seller, realtor, lender in my entire career of almost 16,000 real estate deals.
Jill K DeWit:
We’re trying to make this an entertaining podcast and it’s [crosstalk 00:05:11]-
Steven Jack Butala:
What the hell? Go ahead.
Jill K DeWit:
Okay. Today’s podcast is just reading letters. Come on. Let’s speed this up. I’m going to say, okay. So we have two more. One’s our moderator Kevin, and one is Lori Phillips. So Kevin wrote, “Rebecca. You know what? The information is completely useless coming from a realtor. Some realtors really dislike investors.” Boy, that’s true. “And believe me, they believe incorrectly that we’re doing something illegal. They could just be trying to throw a wrench in the works.” But what proof do we have? You know what I mean?
Steven Jack Butala:
I agree with you.
Jill K DeWit:
“You have an agreement with a buyer that stipulates that the buyers to complete their own due diligence. That was all legit. I think that the presence of houses in the surrounding area is a strong indication that the lot will perc. Shut up and let it close.”
Steven Jack Butala:
Thank you, Kevin.
Jill K DeWit:
That’s me too, man. And then finally, the last comment is this from Laurie. “Hi Rebecca. I’ve had both realtors and neighbors at my properties tell me crazy stuff in effort to manipulate things in their favor. They do not ever provide unsolicited negative input out of the goodness of their dark devious hearts. When it comes to any kind of tests, I tell the buyer to talk to the county. I don’t want to give him the wrong info. Even if it’s something the previous owner told me, such as it has a working septic. If I was the buyer, I sure wouldn’t make a decision based on something the seller heard from a stranger that heard it from someone else. Consider the realtor may be saying this because he wants to buy it himself.”
Steven Jack Butala:
Yep.
Jill K DeWit:
“And then when he buys, builds a house your buyer got scared away because hearsay, it’s going to be more than a little mad. This won’t be the last time someone throws a snake in the table during one of your deals. It’s our responsibility to share the facts. I don’t waste time doing someone else’s homework. Best, Laurie.”
Jill K DeWit:
It’s just the weirdest thing. There’s something weird about that. It’s like a car driving down the street going, they’ve had six recalls over dah, dah, dah. I’m like, I’m not going to turn around and take the car back. I’m going to go do my research and go, that guy’s full of it.
Steven Jack Butala:
I should mention that a perc test is a soil test to see if water can be absorbed.
Jill K DeWit:
And it has to absorb within in certain minutes slash hours, has to absorb X amount of gallons.
Steven Jack Butala:
And it only applies to when you need a septic, not city sewer.
Jill K DeWit:
And correct me if I’m wrong, it’s an individual that goes out there and does that.
Steven Jack Butala:
Yeah.
Jill K DeWit:
It’s not like they have a big machine and it takes up an acre-
Steven Jack Butala:
They sit there with a stop watch.
Jill K DeWit:
… and they have to do 8 [inaudible 00:07:45]. So that’s my whole point too.
Steven Jack Butala:
It could be completely and totally manipulated one way or the other.
Jill K DeWit:
Right.
Steven Jack Butala:
It’s the opinion of somebody who’s probably got less education than you do.
Jill K DeWit:
I was going to say something else, but I don’t want to make anybody else mad. So yeah. Walk to another corner. If it didn’t.
Steven Jack Butala:
Five acres is huge. If you’ve ever walked the perimeter of five acres, you better pack a lunch.
Jill K DeWit:
That’s hilarious. It’s just weird. Why would somebody randomly, out of the blue send an email like that, that you don’t even know? I wouldn’t trust it for that factor too. If it was somebody I was working with or the area like, “Hey, by the way, I’m trying to help you out here. It’s going to come back.” And I knew them. But still I’d have to go out and do my own homework. It’s like, I’m not going to raise red flags for nothing.
Steven Jack Butala:
Why, why Jack? Did you put all of this in here in this podcast?
Jill K DeWit:
Please tell us why.
Steven Jack Butala:
Usually it’s a simple question, with a simple answer and then maybe some banter. Because this perc test topic drives both of us nuts and it drives everybody nuts. And so here’s the takeaway from all of that. Don’t believe anybody. If you get a perc test back, I don’t know why you would, like Lori said, I’m not sure why you would ever do one anyway.
Jill K DeWit:
Right.
Steven Jack Butala:
The only real reason would be is because of lenders making you do it, which I sort of understand, but then don’t get a lender. And if it doesn’t come back the way you want it, get another one from another person.
Jill K DeWit:
It’s kind of like accountants, honestly. And different tax people and lawyers.
Steven Jack Butala:
Today’s topic, be a producer, not a consumer. This is the meat of the show. During our accountability group last week, somebody said “Type this in.” I don’t know if it was accountability group or the Thursday webinar. I’m not sure. They said “be a producer, not a consumer” in response to something that somebody said. And I think that the sentiment of that sentence is so important. Because I had this conversation with myself five years ago, before we started the show and before we started Land Academy. I almost felt obligated to… Jill and I spent years and years, and we’ve been working together for over a decade. I’ve been doing this since the early nineties and it’s almost like-
Jill K DeWit:
It feels like five minutes. It’s been that long?
Steven Jack Butala:
Thanks.
Jill K DeWit:
You’re welcome. It’s really like, whew. That’s a time. Yeah. It’s been awhile.
Steven Jack Butala:
Listen we’re coming up, next week it’ll be 1500 shows. 1500 episodes of this silly podcast.
Jill K DeWit:
Yeah.
Steven Jack Butala:
I almost felt obligated. I’m standing and staring at myself in the mirror saying I got to-
Jill K DeWit:
Spread the knowledge.
Steven Jack Butala:
… you’ve done fantastically well, financially and we get to choose our life now. And it’s like, I got to share this with people.
Jill K DeWit:
What does Gary say? There’s something about the knowledge tree and-
Steven Jack Butala:
Oh yeah. Share the tribal knowledge.
Jill K DeWit:
That’s it. I kind of like that.
Steven Jack Butala:
We have a friend, Gary, who’s a lot older than us and-
Jill K DeWit:
Yeah.
Steven Jack Butala:
… he’s very eager to-
Jill K DeWit:
Share the tribal knowledge.
Steven Jack Butala:
Yeah.
Jill K DeWit:
I think it’s good. So why did you put this in here? Do you just want to share that you felt you had a calling?
Steven Jack Butala:
Yeah. Well, enough about me. Here’s my point. There’s a lot of people who are probably listened to the show and are thinking, I probably should do something different with my career. And I’m not saying you should join Land Academy at all. I’m just saying, if you’re on the fence about it, don’t be on the fence about it. I would really just try to be a producer, not a consumer. Produce your own career.
Jill K DeWit:
That’s pretty big. I’m trying to think here. Don’t be on the fence about it. Like commit?
Steven Jack Butala:
I think it’s very easy, this day and age more than any other time that I’m familiar with, to really sit in front of a screen. We all have 10 screens going on at the same time.
Jill K DeWit:
True.
Steven Jack Butala:
And consume what’s somebody else’s already produced.
Jill K DeWit:
Oh.
Steven Jack Butala:
[crosstalk 00:11:52] because I know that you’re consuming this right now. What I’m saying is, I’m not saying, go start your own podcast. That’s ridiculous. I wouldn’t wish that on anyone. What I’m saying is, I’d go buy some real estate if you’re thinking about it. Be a producer, not a consumer.
Jill K DeWit:
That’s deep, that’s deep. I was thinking about Land Academy. When we started Land Academy. That’s what I thought you were going with this and that, at least that’s how I see it.
Steven Jack Butala:
Well, I mean, that’s certainly true with Land Academy, but that was only after decades of failing at stuff and learning, and experience and all of that.
Jill K DeWit:
Mm-hmm (affirmative).
Steven Jack Butala:
In my case, decades. In Jill’s case, last recent decade.
Jill K DeWit:
Five minutes. Happy you could join us today. Five days a week, you can find us right here on the Land Academy Show.
Steven Jack Butala:
Tomorrow the episode on the Land Academy Show is called the story of two broker opinions. You are not alone in your real estate ambition. Yet another topic that came out of-
Jill K DeWit:
Our Thursday-
Steven Jack Butala:
Yeah, the Thursday webinar.
Jill K DeWit:
Mm-hmm (affirmative).
Steven Jack Butala:
If you’re a member, you got to check this Thursday webinar out. We’ve done almost 500 of them now. They go two, three hours, we review everybody’s deals.
Jill K DeWit:
It’s pretty awesome.
Steven Jack Butala:
It’s become a cult meeting.
Jill K DeWit:
Yeah.
Steven Jack Butala:
And it’s a blast. I love it.
Jill K DeWit:
Yeah, it’s fun. Hey, by the way, if you need access to any sort of ownership or property details, including owner phone numbers and FEMA flood map overlays, check neighborscoop.com. Created by investors, that’s us, for investors like you.
Steven Jack Butala:
We’re Steve and Jill.
Jill K DeWit:
We’re Steve and Jill.
Steven Jack Butala:
Information-
Jill K DeWit:
Inspiration-
Steven Jack Butala:
… to buy undervalued property.
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