LandFunding.com is Live (LA 1581)
LandFunding.com is Live (LA 1581)
Transcript:
Steven J Butala:
Steve and Jill here.
Jill DeWit:
Howdy.
Steven J 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 J Butala:
Today, Jill and I talk about landfunding.com and how it’s now live.
Jill DeWit:
I’m excited. This is so cool.
Steven J Butala:
You do not need money to be a successful land investor.
Jill DeWit:
What? Isn’t that amazing. So many people, that’s it. Getting into real estate of any kind, the barrier to entry for some people is like, I just don’t have the money. I guess, I can’t do it. I can’t be like those cool HGTV people. Are you cool Land Academy people.
Steven J Butala:
People ask me, why would you ever start something like Land Academy and share all these secrets, when you had this perfectly awesome scenario going, and you guys are just traveling down, making millions of dollars a month? Here’s why, limitless capital. And that’s what Land Academy has provided, not only for us, now for everyone.
Steven J Butala:
Money people come out of the woodwork, including us and fund our stuff, and so we are those people. 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 Land Academy member, please join us on Discord.
Jill DeWit:
James wrote, “I have a dilemma that I’d like to get feedback on. Try to be brief and concise. I listed a small value property with an agent about a month ago. He expects it to sell in three to six months at a net profit that I’m happy with. Much longer timeframe than I like now, but he’s an old school cowboy, who has worked vacant land in this area for decades. Ultimately, I bring him volume, then move on to the next deal, wait for the money to return, and it frees up a lot of my time since he takes on the sales and the marketing.”
Jill DeWit:
“Communications so far has been, meh, but looking over his track record, I’m inclined to believe him. Received an offer today that I’m happy to take, but was from a pre-agent listing. And I would have to get the agent to cancel the contract.” I don’t know what that is. So someone today or long-term relationship to sell more at a slower pace. Oh, I see what it was. He listed it with somebody else and now he has this guy.
Steven J Butala:
Now, he’s got the cowboy.
Jill DeWit:
So then the old guy found one. Oh, okay. Okay. “I’m not sure if I’m being patient or practical. Thank you for advance. Need to get this out of my head and get different perspectives.”
Steven J Butala:
You go first.
Jill DeWit:
Okay. Wait. So I’m trying to understand this.
Steven J Butala:
He had it listed with somebody with a beehive hairdo from the 50s and little cat eyeglasses.
Jill DeWit:
And that expired.
Steven J Butala:
That expired.
Jill DeWit:
And now he found a new guy.
Steven J Butala:
They dropped the ball. He got the right guy, the cowboy. Okay. And the beehive hairdo person produced an offer.
Jill DeWit:
Oh, well, the right thing to do is, shoot. The right thing to do is, the guy that he has a contract with now. The beehive doesn’t really have a leg to stand on. You got to do the right thing.
Steven J Butala:
I know what I would do.
Jill DeWit:
And I wouldn’t want to risk.
Steven J Butala:
I would never cut this cowboy out.
Jill DeWit:
Yeah, that’s what I’m saying. I don’t want to risk that guy, losing him.
Steven J Butala:
Yep, me too. Long-term, I choose B, long-term relationship.
Jill DeWit:
You need to talk to him and come and say, what do you guys usually do in this situation? That’s what I would say. You knew that I had it with somebody else. That contract expired. Here we are. What’s the protocol?
Steven J Butala:
I’m pretty sure if he’d just contractually read it, everyone needs to get paid.
Jill DeWit:
And then they’d probably have to split it.
Steven J Butala:
I’m sure the cowboy has to get paid because he’s got an existing listing. And every listing I’ve ever read says, no matter where-
Jill DeWit:
No matter who finds it.
Steven J Butala:
Yeah. I can go out on Facebook and find a buyer, but you’re still going to get paid.
Jill DeWit:
Right.
Steven J Butala:
So the question is with the other agent, and if you read a listing agreement, if it expires, they still get paid like six months afterward. You really have your hands tied here. You’re going to pay everybody. That’s probably what’s going to happen.
Jill DeWit:
Probably. And that’s the right thing to do. Hopefully, it’s enough profit, and you bank that into it. And then it’s a lesson learned, you know what, bummer. I picked the wrong agent the first time and I’m stuck. So here’s a note though, I have had, we’re just having it right now, happen right now, where we’ve had agents that we were on the same page. And we had them, we said, this is clearly not going how we want it to go? Do you want to get out of this too? And then they send us a document releasing us and saying, they’re out, canceling the contract. That’s what should have happened with the first agent, before you sign another one, and now you know. I’m done, if you have anymore to add.
Steven J Butala:
I only have derogatory stuff to say.
Jill DeWit:
Oh, don’t do that. That this is not Thursday. Let’s talk positive. Okay. Let’s have fun.
Steven J Butala:
All of these scenarios are flashing up in my head of dealing with real estate agents in the past. And none of them are positive. Not a single time, have I ever, ever paid a real estate agent and said, wow, that was worth it.
Jill DeWit:
I have. Oh, you know my guys.
Steven J Butala:
There’s a couple of guys that you have.
Jill DeWit:
You know my guys.
Steven J Butala:
Look, I’m not talking about you and me. I’m talking about me personally.
Jill DeWit:
Okay. Well, I have a better picker apparently for some things, not all things.
Steven J Butala:
In addition to this, never have I ever had a real estate agent contact me and say, you know what, you’re out of line. Real estate agents rock.
Jill DeWit:
Okay. Are we done?
Steven J Butala:
Never.
Jill DeWit:
Okay, let’s go to the show. It’s a good topic.
Steven J Butala:
Instead, what they say is, yeah, you’re right. I’m a real estate agent, but you’re right.
Jill DeWit:
I’m trying to save us all. I really am trying.
Steven J Butala:
Today’s topic is landfunding.com is live. This is the meat of the show.
Jill DeWit:
Okay. Here’s the scoop. Sure. We started this about, what is this? Boy, a little over a year and a half ago. We started doing land funding quietly. We called it deal funding. You had to go on one site, find the little thing at the top. There’s a little menu item, and there you go. I think we started it for Land Academy members. And we thought, you know what? We really mean, no good deals should go to waste. So Hey, if somebody that’s not Land Academy member, needs money too, we’ll do your deal. But we didn’t really promote it, it was just a thing running in the background.
Jill DeWit:
Well, it has blown up and so many other people in our community too, are doing it. And to help everyone, we created a site called land tank and house tank. So people who need money can go there, put their deals up. Maybe they don’t know someone by the way, and just put it up and just see who is up for grabs. But you know what, it sure is nicer to know who you’re dealing with. Not just, who’s going to give me the money, kind of thing. So we have developed landfunding.com and who are the people? It’s us. It’s not me in a community and this people and that people, it’s us. It really is.
Steven J Butala:
It’s our checkbook.
Jill DeWit:
Yeah. And you have our years of experience, our 16,000 almost … And it’s not deals. It’s not like Land Academy deals. It’s our personal deals that we can go to. That’s the experience that we bring to the table. And there’s no points, there’s no background check. There’s no nothing, it’s just, show me you got a good deal and show me what your game plan is, and I’ll open up my checkbook and write a check.
Steven J Butala:
Here’s the mechanics of it. And there’s three separate products, but it all starts with one thing. You send out a bunch of mail, you answer your phone and you get a great transaction under contract. Then here’s three types of choices you have if you seek out deal funding. Number one, we pay you a finder’s fee of some number, I’m not exactly sure what it’s going to be, but here’s what we’ve discussed so far.
Steven J Butala:
The greater dollar amount of 10% of the sell price, not the buy price, the sell price or $10,000, whatever number is greater to you. And then you wash your hands of it. We take it over and you get paid. That’s called finder’s fee. Number two, and this is how we’ve done the vast majority of our transactions, if not all of them so far. We split the profit margin by 50%. So you bring us a great deal. It costs $80,000. We write a check for $80,000, including all the closing costs and all that stuff. And you go market it. We wash our hands of it. We’re just the bank. You go market it. You sell it. You find a buyer, you turn the property back into cash. And then we split the profit margin to some agreed upon percent.
Steven J Butala:
Number three, which is what I call reverse deal funding, and it’s very similar to a finder’s fee, where you find a great deal, get it under contract. You turn it over to us, and we split the profit margin. We handle the deal, you’re done. You outsource that entire sales side of the business to us. And when we turn it back into cash, we split the percentage on some number. Why three products?
Jill DeWit:
Yeah, why three products?
Steven J Butala:
Because deals are different. Some deals are great. Some deals are mediocre. Some deals are like, we’re going to do it, but it’s going to be a lot of work. It’s going to take a long time to sell it, but I know we’re going to make money. So depending on how we see the deal and we look at every single deal. Jill and I look personally at every deal that comes in. And we have had success all three ways.
Jill DeWit:
Thank you. Well, I’m thinking about like, you know what? We’re ramping up for it. All right. Now my head’s go with, I got to hire for this, I got got to hire for that. So it’s going to be awesome. The big picture is, we mean it, no good deal should go to waste. And I want a good deal. This is not to be poopy, but this is not like, hey, I’m just going to see if they like it because I’m not sure. I want you to know that, yeah, I feel so good about this. I’d be selling my car right now, but I don’t want to sell my car because I need it. Then that’s when you-
Steven J Butala:
A lot of it depends on you, too. One of the three products that we have, it depends on you. If you have a tremendous amount of experience and you bring us a deal and you need a hundred grand because you spent all your available capital that month, but you know you’re going to sell it and we love the deal. And we like you and you’ve done 50 transactions and you’ve been in our group for two years, and you’re going to handle the whole thing. We’re not going to take a huge percentage on that. We’re just going to write the check for you and let you run with it. If you’re brand spanking new and you’ve got an amazing deal that comes in, then we’re going to probably do it the reverse way.
Jill 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, well, it’s Jack Thursday. I would rather be dead in Arizona, than alive in California. You are not alone in your real estate ambition. They requested this. They requested it.
Jill DeWit:
I know.
Steven J Butala:
I didn’t make this up.
Jill DeWit:
I know.
Steven J Butala:
Where’d you go, Jill?
Jill DeWit:
I’m actually working, by the way. Oh, what is today? Today’s Wednesday. Do you know what’s going to happen tomorrow? Just so you know, tomorrow, Thursday, and every Thursday, you can find us on Clubhouse. What’s Clubhouse, you say? Not only is it on Apple, but it’s now beta testing, at least the last time I looked the other day, it was beta testing available to everybody on Android.
Jill DeWit:
So watch your email because we send out every week, an invite to get you in. I don’t even think they have a wait list anymore. I don’t think you need an invite, but it used to be. Either way, watch your email. Join us on Clubhouse. Go to the Land Investing Club. And we’d love to chat with you there
Steve and Jill in unison:
We are Steve and Jill.
Steven J Butala:
Information-
Jill DeWit:
And inspiration-
Steven J Butala:
To buy undervalued property.
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