Jack Thursday – More Deals Less Work (LA 1492)
Jack Thursday – More Deals Less Work (LA 1492)
Transcript:
Steven J Butala:
Steve and Jill here.
Jill K DeWit:
Hello.
Steven J Butala:
Welcome to the Land Academy Show, entertaining land investment talk. I’m Steven Jack Butala.
Jill K DeWit:
And I’m Jill DeWit, broadcasting from awesome Scottsdale, Arizona
Steven J Butala:
Today, Jill and I talk about how it’s Jack Thursday, and more deals and less work is my current goal in life.
Jill K DeWit:
Yes.
Steven J Butala:
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. If you’re already a Land Academy member, please join us on Discord.
Jill K DeWit:
I’d like to back up for just a moment.
Jill K DeWit:
Shouldn’t that be everybody’s goal?
Steven J Butala:
You know-
Jill K DeWit:
It’s not just your personal goal. It happens to be mine, too.
Steven J Butala:
I know. It’s Jack Thursday, so it’s kind of about me. Jill Friday is tomorrow.
Jill K DeWit:
Oh, excuse me. Oh, it’s about you. Sorry. Oops.
Steven J Butala:
Well, I’ll give you an example where this should not be your goal. If you haven’t done your first deal yet, this doesn’t apply to you. You just need to get past that first deal. In fact, Joe Long said, get 10 deals under your belt, see if you really want to do this. But if this is now your career and you’re full-time, this would absolutely be your goal.
Jill K DeWit:
Mm-hmm (affirmative). Totally.
Jill K DeWit:
Okay, Miguel wrote, I failed my first mailer.
Jill K DeWit:
He thinks he failed his first mailer. Let’s see here.
Jill K DeWit:
I had co … Oh
Steven J Butala:
I love to throw Jill for a loop on these questions because she doesn’t read them before.
Jill K DeWit:
No, I have no idea. This is cold, in case you can’t tell. In case you did not know, this is totally unrehearsed.
Steven J Butala:
In fact, this is the most that Jill and I talk to each other the entire week.
Jill K DeWit:
This is true. Only on Thursdays.
Jill K DeWit:
I had calls sent to my Google voice number voicemail, and I missed most of the calls. Won’t happen again. I have PATLive now. No deals, no acceptance on any offers, but a few angry owners left messages. I offered 20% of the assessed land value per the data tree column just to get the mail out. Any tips from a pro are appreciated.
Jill K DeWit:
Well, [inaudible 00:02:04] without giving Miguel … Miguel kind of knows.
Steven J Butala:
No, I do.
Jill K DeWit:
We’ve got a couple of things he already figured out. You want to-
Steven J Butala:
Here’s the good news. Here’s good news, Miguel, this failure is one step closer to success. If I added up all my failures, oh my gosh.
Jill K DeWit:
Sorry, I wasn’t laughing at you. I was just giggling.
Steven J Butala:
One of my really long time friends for decades came to me and said, “Look, I’ve got this great business idea. I’m not sure where to start and I could really use your advice.” And I said, “I’m happy to help you, but I will tell you, no one can turn a dollar into 50 cents like me.” I said, of all the companies Jill and I have ever started and all the stuff I’ve ever done, the ones that we have right now are the ones that were leftover because they succeeded.
Jill K DeWit:
They made the cut.
Steven J Butala:
And they’re the most recent. All the failures and all of that, we don’t have a show about failing at companies. We have the Land Academy Show.
Steven J Butala:
Don’t get discouraged. That’s the good news. I will tell you, this questioning and the few points in here, I have to really seriously request, and please take this to heart, this is for everybody, you got to go through the steps, the Land Academy steps. You’ve got to go through the program. You have to participate in our Thursday calls. That’s how you get the most up-to-date information on the tools that we use. You have to use the Discord, and you put this in Discord which is awesome. You got to ask tons and tons of questions in all the venues that we provide, including this one. We made this one so you can learn.
Jill K DeWit:
Exactly.
Steven J Butala:
Jill has a lot to say about Google voice numbers and voicemail. Somebody needs to answer to the phone that’s going to directly translate into deals. Good deals.
Jill K DeWit:
Sounds like he already figured a lot of this out. By the time you’re writing this, Miguel, you already know, “I did that wrong. Got it. I did that wrong. Got it.” So the next one’s going to be that much better.
Steven J Butala:
I want everyone to really digest this, you should … assessed value has nothing to do with pricing. And it’s all different everywhere, over the entire country.
Steven J Butala:
You know that by now. When you use assessed value, probably 99% of the time you’re going to grossly under-price a mailer which is the most common reason why one fails. It’s just too low.
Jill K DeWit:
Exactly.
Steven J Butala:
Please know what you’re doing. Stick around on Discord. Join us on those Thursday calls. If you can’t join us on the Thursday calls, they’re all recorded and in landinvestors.com. You’ll get there.
Jill K DeWit:
Just stay at it and keep doing what you’re doing.
Steven J Butala:
Today’s topic, Jack Thursday. More deals, less work.
Steven J Butala:
Oh, this is why you’re listening. This is a direct title that was related to a conversation Jill and I had this morning while we’re kicking around the house before we started work. If you have 10 deals coming in and you’re … let’s say you have 10 acquisition candidates and you’re … Everyone has a bottleneck. Everyone. Even us. You got to remove that bottleneck so that you’re doing less work. You either have money as a resource, as a prevalent resource, or time as a prevalent resource.
Steven J Butala:
If you’re brand new, you probably have no money and a ton of time. If you’re at the point in your career like us, we have tons of money and not a lot of time. Thus, we would like to do even … put our money to work and do more deals with less work. If you’re brand new, you should be, and you’re young, good for you, you should be working 18 hours a day at this, using people’s money like ours to really leverage that. That’s a couple of weeks ago. I did a show leveraging time and leveraging money. Can’t really leverage both, that’s why it’s leverage.
Steven J Butala:
A great example is, Jill and I get lots of transaction opportunities from multiple sources. Number one is our mailers. Those are the most difficult transactions for us to complete. Here’s why. I send a bunch of mail out, which takes time. Jill answers the deals with all the stuff, which takes time. And we all agree that there’s these five properties, let’s say for sake of argument, that come in, and then we got to do the deals. We got to buy them. We got to sell them. It takes a lot of time and effort. What we should be doing and we are exploring, is assigning those deals that come in to somebody who’s got more time and not a lot of money and who’s good at this, to just take over the deal for 50% of the profit and close it. That would allow us to do way more deals with a lot less work.
Steven J Butala:
Number two, deal funding. We get deals in that way. People have … they do all the work. They find a great deal. They bring it to Jill, and Jill says, “I love this deal. Here’s all the money. Please go close the deal.” Now she’s doing way more deals with a lot less work.
Jill K DeWit:
Correct. Can I throw out one thing? It’s not always 50%, depending on what’s going on.
Steven J Butala:
Oh yeah, sure. Sorry.
Jill K DeWit:
Use that as a rule of thumb, just X percentage. It may not always be 50% depending on what the deal is, how big the deal is, what’s involved, how much I need to help with it or something like that. What I’ve contributed or you’ve contributed.
Steven J Butala:
I would have killed for that opportunity in my 20s.
Jill K DeWit:
I know.
Steven J Butala:
Nobody needs to sleep in their 20s. I didn’t have a dollar in my 20s.
Jill K DeWit:
Meaning you have the energy. That’s the point here. You have the energy. You got this. If you want to get ahead, you’re going to do it. That’s the whole thing, too. Think about the successful people, how hard they worked. The young successful people, they’ll tell you, “I slept under my desk, and that’s what I had to do to get ahead. I wasn’t a partying maniac. I would have gotten nowhere if I just did that. I had to really work at this.” And then the harder you work, then you get to sit back and go, I earned this.
Steven J Butala:
If somebody came to me in my 20s and said, “Watch these videos, learn all this stuff. Attend these Thursday calls and they’re going to tell you exactly how to do this. Once you find a bunch of jobs, forget about money. Your job is to find great transactions through this process that these people have. Go for it. When you find a good deal, bring it to me. I’ll pay for the whole thing and split it with you to some percentage,” I would have dropped everything and said, let’s do it.
Jill K DeWit:
This is one of the reasons we made up LandTank. We have a website called LandTank because there’s a lot of people out there that are young and finding these deals and they can’t afford to do them. They put them in LandTank and they are gobbled up by our members. They last minutes, not hours on LandTank, because there’s a lot of people that see the value here.
Jill K DeWit:
This is really the best way to … one of the best ways to really get ahead fast. Think about this, you’re doing some of your own mail, you’ve got an extra $50,000 lying around. Why would you not parse out 5,000 to 10 guys and let those 10 guys do all the work? You’re doing an hour a week. Not kidding. You’re talking to them, saying, “I looked at it too. I love it. I’ll be the bank. Open escrow. Go.” That’s your conversation. Then the next thing they can pop up and say, “By the way, watch for the … wire instructions are coming and the document’s free to review, the purchase documents from the escrow company.” Now you’re going to be in for another 30 minutes, maybe. This is a week later. That’s all done.
Jill K DeWit:
Then the person that you did the partner with, they’re out there getting the pictures, they’re getting the drones, they’re marketing the property. Now they’re going to pop up in another, I just had one in three days, pop up and go, “Just reopened escrow. We got our purchase. We got our sales price,” kind of thing, because you priced it well, kind of thing, to, “Watch for the escrow to reach back out when it’s time to close and the HUD-1. Oh, and by the way, as the manager, I will look over the huddle and that’s my job.” By the time it gets to you, you can just eyeball it, sign it, and, “We’ve got the bank stuff, so watch for the money coming back.” That’s the stuff that we’re talking about.
Steven J Butala:
Here’s the math on Jill’s deal funding. This is true with time. She does about two deals a week. There’s 50 weeks in a year. She makes about $20,000 a deal. It’s a little bit less than that, but about that. So 40,000 net dollars. Somebody’s on the other side of that transaction that’s making the same amount of money. It’s certainly not the same person, but it’s a whole slew of different people that bring us deals. 40 times five is two.
Steven J Butala:
I’m going to ask you, honestly, how many hours per deal does it take?
Jill K DeWit:
Total?
Steven J Butala:
To deal fund.
Jill K DeWit:
Less than two.
Steven J Butala:
She’s spending four hours a week making $2 million a year on deal funding.
Jill K DeWit:
There is a 4-Hour Workweek book for you.
Steven J Butala:
That’s the real version.
Jill K DeWit:
That’s the real book. Tim Ferriss and I, we got to get together. I got a better way.
Steven J Butala:
Of course, my response to all that, this is a conversation that she and I had sitting on the end of the bed a week ago, my response to that is, I don’t ever say this to her because she will throw a shoe at me.
Jill K DeWit:
Oh gosh, yes.
Steven J Butala:
Well, if we can make 2 million at this-
Jill K DeWit:
Why don’t you spend eight hours a week?
Steven J Butala:
Eight hours a week and make 4 million? But I stopped saying that a couple of years ago.
Jill K DeWit:
I will throw a shoe at you.
Steven J Butala:
She was upset.
Jill K DeWit:
To which I say here’s, again, truth time, baby, how would that change anything that you do today in your quality of life?
Steven J Butala:
No, you’re right.
Jill K DeWit:
Thank you.
Steven J Butala:
Actually, it would probably make it worse.
Jill K DeWit:
Thank you.
Steven J Butala:
We’ve got all these other companies. It’s not our only line of revenue.
Jill K DeWit:
I got to find another charity which is a good thing.
Steven J Butala:
And then we’ve got to probably get some more people involved. She’s absolutely right.
Jill K DeWit:
Let’s not be greedy.
Steven J Butala:
I walk around with dollar signs in my eyes.
Steven J Butala:
Yeah, exactly.
Jill K DeWit:
That’s a thing. That should be a show. Honestly, that should be a show. Don’t get greedy here.
Steven J Butala:
I don’t know if greedy’s the right word. Greedy is a whole other … 10 commandments, deadly sins, thing to greed, that we don’t need to go there. The question, real question is, why? At what point is there diminishing returns?
Jill K DeWit:
Oh my God.
Steven J Butala:
Do you need more money in the bank? Do you need to pay more taxes? Do your kids need more money?
Jill K DeWit:
Do you have a Lamborghini for every day of the week? No.
Steven J Butala:
That’s the unnatural part of this. It becomes a personality obsession.
Jill K DeWit:
It’s weird.
Steven J Butala:
I don’t understand this quest for billions of dollars.
Jill K DeWit:
I agree.
Steven J Butala:
I don’t understand it. There’s a huge hard limit on how much money that you need . Then it just becomes a personality disorder. It’s no longer healthy.
Jill K DeWit:
I agree.
Steven J Butala:
Do you think we’re past that?
Jill K DeWit:
What?
Steven J Butala:
Past the point of healthy?
Jill K DeWit:
No, no, no.
Steven J Butala:
I don’t think so either.
Jill K DeWit:
No, we hold each other back.
Steven J Butala:
We rolled in Land Academy because we are. We’re sharing all this.
Jill K DeWit:
Well, yeah.
Steven J Butala:
If you’re sitting in a corner somewhere in some stupid little apartment hoarding money-
Jill K DeWit:
We wouldn’t be here.
Steven J Butala:
Right.
Jill K DeWit:
No, we would have never started Land Academy if we were those people. We’d be quietly not telling anyone what we’re doing or how to do it.
Steven J Butala:
And we’d never-
Jill K DeWit:
And building a little team.
Steven J Butala:
We just shared that the numbers-
Jill K DeWit:
It’d be weird.
Steven J Butala:
Shared the numbers on deal funding. Deal funding would never happen without Land Academy.
Jill K DeWit:
We wouldn’t have made LandTank. We wouldn’t share deals with anybody. Heck no. You get it.
Jill K DeWit:
Happy you could join us today. Five days a week you can find us right here on the Land Academy show.
Steven J Butala:
Tomorrow the episode on the Land Academy show is called, Jill Friday. Best investors know their limits.
Steven J Butala:
You are not alone in your real estate ambition.
Steven J Butala:
Just a little taste of what that is, Jill, because I know it’s your topic.
Jill K DeWit:
This is coming from, again, from CareerPath. There are some really smart people in that group and really motivated people in that group and they’re doing a great job. They really are. Some of the things that we’re talking about, they know when they’re not good at something. I think that’s one of the things that makes them so great is they know, “This is a hole for me. I got to fill it.”
Jill K DeWit:
A lot of people can’t do that. They walk around thinking they’re awesome, they’re great, they’re unstoppable. No. I’m really just going to talk about … give some examples on what we talk about and how to solve these things.
Steven J Butala:
I have a million questions.
Jill K DeWit:
Oh, good. Cool.
Jill K DeWit:
Hey, you need to send out a few thousand offers to property owners like us? Check out offers2owners.com. It’s offers and the number two, owners.com. No setup fees, free mail merge, and exceptional service. We should know because it’s our company. Give offers to owners or call today.
Steven J Butala:
We are Steve and Jill.
Jill K DeWit:
We are Steve and Jill.
Steven J Butala:
Information …
Jill K DeWit:
And inspiration …
Steven J Butala:
To buy undervalued property.
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