Jack Thursday – Rather be Dead in Arizona than Alive in California (LA 1582)

Jack Thursday – Rather be Dead in Arizona than Alive in California (LA 1582)

Transcript:

Steven J Butala:
Steve and Jill here.

Jill DeWit:
Hello.

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 is Jack Thursday and I’d rather be dead in Arizona than alive in California.

Jill DeWit:
That was from the banana stand, Arrested Development.

Steven J Butala:
Yep.

Jill DeWit:
I love that show. Such a good show.

Steven J Butala:
Before we get into it, actually it was in reverse though, on the show.

Jill DeWit:
Okay.

Steven J Butala:
Before-

Jill DeWit:
Rather be dead in California than alive in Arizona?

Steven J Butala:
Yeah.

Jill DeWit:
Yeah. Okay, got it.

Steven J Butala:
Like a lot of states, where we’re adjacent and we’re not big fans of each other.

Steven J Butala:
Before we get into it though, 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, a Land Academy member, join us on Discord.

Jill DeWit:
Actually, I have something funny to share about that real quick. I talked to our insurance guy today, our former insurance guy in California. He informed me that he recently got … He got his certification or license or whatever, for all the states. All his people are moving too out of California. He says, “I’ve gotten Nevada, I’ve got Arizona.”

Steven J Butala:
Texas.

Jill DeWit:
“I’ve got Texas.”

Steven J Butala:
Florida.

Jill DeWit:
Exactly. He’s rolling them off. He’s like, “So I can help you in Arizona now.” And I’m like, “Oh, this is funny, I didn’t know that.” He’s like, “Yeah, because all my clients were leaving.” So anyway.

Jill DeWit:
Ty wrote, “I am new and working through the steps so take this with a grain of salt. I hired a full-time customer service specialist off Online Jobs. I made-”

Steven J Butala:
Onlinejobs.ph, for the Philippines.

Jill DeWit:
Okay, interesting. “I made sure to include data specialist in the post and I got about 20 resumes. In my post I requested a video introduction, which I understand can limit replies, but [inaudible 00:01:50] that important to find someone outgoing and personable.”

Steven J Butala:
Outstanding.

Jill DeWit:
“Took the best five and did one-on-one interviews. Hired the best of those for a one-week working interview. Made Jason team member number one,” ah, “an offer today and he accepted.”

Jill DeWit:
I am stoked at the level of communication, knowledge of data systems, ability to handle tasks without hand-holding, overall professionalism, zero accent by the way. I can not be happier, but it’s only been a week. He’ll be working my time zone too, by the way, important since I want him to answer all incoming calls and data collection.” This is huge.

Steven J Butala:
This is the best news ever.

Jill DeWit:
Wow.

Steven J Butala:
And I can tell, Ty, how you’re writing this, and I can just tell how it’s successful you’re going to be at this.

Jill DeWit:
Wow. That’s so good.

Steven J Butala:
I’m really happy for you. And I think we’ve had nothing but positive experiences with the Philippines in general.

Jill DeWit:
That’s really good.

Steven J Butala:
We have a lot of people working for us in the Philippines.

Jill DeWit:
Yeah.

Steven J Butala:
And they all report to our department heads here in the States.

Jill DeWit:
It’s really cool.

Steven J Butala:
Today’s topic, it’s Jack Thursday and I’d rather be dead in Arizona than alive in California. This is why you’re listening.

Jill DeWit:
All right. So you turned that all around, why?

Steven J Butala:
What’s the problem with California? Really, I ask myself this all the time. And I’ll start off by saying this very positively, it’s a shame what’s happened to California. It’s a shame what’s happened to Detroit. So I grew up in Detroit and I watched it deteriorate to nothing. And it’s sad to the point where I had to leave.

Steven J Butala:
I watched Los Angeles and this exact same thing happened in Los Angeles. It deteriorated to the point where I had to leave. And it’s sad because it’s gorgeous. Michigan’s gorgeous. California is amazing, it’s an amazing place. Probably the nicest, arguably the nicest weather in the entire world is Southern California.

Jill DeWit:
I’m staying quiet over here. As you can see, I’m sitting on my hands.

Steven J Butala:
For what reason, Los Angeles in particular, and Detroit, want to make everything so hard and complicated, I will never understand. It is not possible to have a business as a newcomer and live a healthy, profitable, happy life in Los Angeles. If you inherited a house that your parents own or your relatives own prior to 1976, and it’s all Prop 13, you don’t have to pay real estate taxes like the rest of us.

Jill DeWit:
You pay taxes, but it’s much lower.

Steven J Butala:
Who does that benefit?

Jill DeWit:
Look it up, it’s interesting. Yeah.

Steven J Butala:
It doesn’t benefit me, and we’re the ones who were bringing all the money to the state, people like us.

Jill DeWit:
You know what’s interesting? Can we talk about this now?

Steven J Butala:
Yeah.

Jill DeWit:
I was just thinking about that and your points are not incorrect. I was born and raised there, I still love it terribly. And-

Steven J Butala:
I love it terribly too.

Jill DeWit:
Yes.

Steven J Butala:
I can’t do business there.

Jill DeWit:
They do make it hard, which is true. I’m like, “God, why is this so hard?” You got to jump through these hoops, jump through that hoops.

Jill DeWit:
And the fact that people don’t believe this, but let me tell you it’s true, they go door-to-door in office buildings to see who is there, to make sure you’re on their list and they’re getting money from you.

Steven J Butala:
And properly taxed.

Jill DeWit:
And you have all the right … Whatever they want. It’s really crazy.

Steven J Butala:
We filed our last tax return in California this year.

Jill DeWit:
I kind of wasn’t done with my story.

Steven J Butala:
Oh, sorry. Oh, go ahead.

Jill DeWit:
So my point was, it’s interesting how much they … They’re the only state that I know of, that they have the staff that they have to go after and track down people and collect the money, and make sure every square inch is accounted for. And I was thinking, why are they that way? And I wonder, honestly, if the taxes that they’re not getting from Prop 13 has something to do with that, because … Hold, just let me finish, because I agree.

Jill DeWit:
Where we were living in Hermosa Beach there was a large percentage of people all around South Bay that were there for years and decades. They either got their mom and dad’s house, mom and dad are still alive. Our neighbors would tell us, “We rent this house in the summer for one week, six grand.” And she’s like, “I can’t believe it. And guess what our taxes are for the whole year? Six grand.” I’m like, “Sheesh.” So everything else is gravy.

Steven J Butala:
Ours was 60.

Jill DeWit:
Anyway. My point is, there’s a huge imbalance. And I know that people can’t afford for it to revert to what it would be right now and today. I know-

Steven J Butala:
Well, how about-

Jill DeWit:
Hold on a moment.

Steven J Butala:
You take the Prop … Go ahead, Jill.

Jill DeWit:
And it was sad as they started to do the … They tried to undo Prop 13 last fall while we were still there, and starting with commercial properties. It didn’t pass.

Steven J Butala:
Didn’t pass.

Jill DeWit:
I thought it was going to pass. I really did. I thought that was really interesting that people would say, “You know what? They can afford to do it.” But that didn’t pass either.

Jill DeWit:
So I do see that’s a discrepancy. I just, I don’t know, I think they’ve gotten it into this sad way of doing business and everybody’s used to it, and it stinks. It is true. So many things there take so many extra forms, so many more steps. The process is horrible.

Jill DeWit:
So the beautiful thing is, when you are in another state like Texas, Arizona, there’s places like, “This is all you need. Yep, you’re done. Have a nice day.” “What do you mean I don’t have to do all this extra stuff?” They’re like, “No, no, you’re good. Here’s your license. You’re good to go.” Wow, this is great.

Steven J Butala:
That’s the problem with property taxes. That’s a tiny little chip-

Jill DeWit:
right.

Steven J Butala:
… in their whole iceberg of the real problem, with Los Angeles specifically.

Jill DeWit:
People are used to it.

Steven J Butala:
The real problem with LA is the people.

Jill DeWit:
I don’t think people really want to-

Steven J Butala:
The real problem-

Jill DeWit:
… [crosstalk 00:08:00] trying to make the hard life hard for each other.

Steven J Butala:
The real problem with Detroit is the people. They’ve made it this way. They continually, systemically hire people to represent them at the state and the local level that are complete idiots. And don’t care about the actual wellbeing of the state, from a financial standpoint and every other way. They’re inept.

Steven J Butala:
They care about the lowest common denominator for some reason. And when has the lowest common denominator of anything worked out?

Jill DeWit:
I’m a fan of giving everyone-

Steven J Butala:
You know what? I’m not even close to being done on this topic.

Jill DeWit:
Okay, you’re good. All right. No, it’s fine.

Steven J Butala:
And what makes it worse … Detroit does not have this problem. What makes it worse is, if you talk to somebody in Los Angeles who grew up there, Jill’s from Orange County so I can say this.

Jill DeWit:
Oh.

Steven J Butala:
They had the believe that it’s the center of the universe. “Why would you ever leave here? Are you kidding me? This is it. This is the greatest place there ever was.”

Steven J Butala:
No, it’s not. It’s not at all. No one helps anybody. No one’s nice. Everybody walks straight out into the middle of the street, expecting everyone to stop according to where they’re walking. And that’s just the culture there. I don’t want any part of that.

Jill DeWit:
I’m not saying anything. I’m sitting on my hands again.

Steven J Butala:
Yeah. I choose to live in a place where we all help each other and take personal responsibility for ourselves and our wellbeing and our families. And not blame somebody else for anything that’s good or bad.

Jill DeWit:
Tell me when I can talk.

Steven J Butala:
That’s it.

Jill DeWit:
You can find good and bad people everywhere, that’s a fact. But I do have to say this. I agree with you on part of the … This is really going to be a … People are going to love this show or hate this show. Hope you’re fast-forwarding this right now.

Jill DeWit:
But I do agree with that, the fact that … What I was going to say was, I believe in giving everyone the benefit of the doubt until they prove me wrong.

Jill DeWit:
For example, our governor, I went in … Not my former governor in California. I went in with good high hopes until he not only was he lying, he was caught lying and doing things like that. And going against the, “Do as I say, not as I do,” kind of thing, with the whole COVID and all kinds of other things. I’m like, “And now you blew it with me.”

Steven J Butala:
Nobody’s accountable.

Jill DeWit:
Then I … One more.

Steven J Butala:
He destroyed San Francisco as the mayor.

Jill DeWit:
I’m not done. I’m not done. The second one is that the ding dong in LA County who decided that all these minor offenses, we’re not even going to charge people of, that was like-

Steven J Butala:
Representing the lowest common denominator.

Jill DeWit:
That makes you scared. Like, “Hey, if it’s under $1,000 we’re not even going to do anything. Steal away.” What the heck? And there’s so many other wrongdoings people can do that no one’s going to be held accountable for them. Ooh, it’s bad, and scary.

Steven J Butala:
Wow, Jack, I thought this was show was supposed to be about land.

Jill DeWit:
Yeah, what is this about?

Steven J Butala:
Here’s the problem. Jill and I did a ton of real estate deals in California, past tense.

Jill DeWit:
And LA County.

Steven J Butala:
Past tense. And they tax us now on the exit. The entire state, just like Canada.

Jill DeWit:
That’s a good point.

Steven J Butala:
All the real estate values are going down just like they do in Detroit. And I expect and predict that eventually you’re going to be able to buy a house in Los Angeles for five or $6,000, off the MLS, like you can in Detroit.

Jill DeWit:
Really?

Steven J Butala:
Yeah.

Jill DeWit:
Oh. All right. I don’t believe that, but okay.

Steven J Butala:
I do.

Jill DeWit:
I don’t think that will happen. It’ll be interesting to see, but anyway. I like the big-

Steven J Butala:
If you Google how many people have left the state of California last year-

Jill DeWit:
That’s true.

Steven J Butala:
… since COVID actually. Everything was fine until COVID.

Jill DeWit:
That’s true.

Steven J Butala:
Everything was fine.

Jill DeWit:
We could handle it. It was pretty much, there was enough positive and good people. People didn’t flip their lids like they did, so I get it. But I guess my point is, it’s good to understand what’s going on in these other areas so you know what you’re getting into-

Steven J Butala:
That’s right.

Jill DeWit:
… as a land buyer.

Steven J Butala:
That’s exactly right, Jill.

Jill DeWit:
You need to understand their mindset. So that’s why I’m a fan too, sometimes we have some … We have very unique, specific mailers we’ll do in certain areas.

Jill DeWit:
You know what? I’m going to, maybe not answer the phone, but I’m going to listen to some of those calls when they come in. Because you tell us a lot about the community, how smart they are, what they know about their properties, just how they roll. Are they easy to deal with? Do I want to do deals there?

Jill DeWit:
Because there’s plenty of states, not California by the way, that I’m not a fan of doing deals with. The community, they’re not real receptive and I’m good. And, or the state’s doesn’t have their act together for different things and that’s okay. You learn. Are you done?

Steven J Butala:
Mm-hmm (affirmative).

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

Steven J Butala:
Tomorrow is Jill Friday, and she’s going to talk about showing up for work.

Jill DeWit:
And I promise it will not be a rant.

Steven J Butala:
You are not alone in your real estate ambition.

Jill DeWit:
Yeah.

Steven J Butala:
I promise-

Jill DeWit:
Oh-oh.

Steven J Butala:
… that the numbers on Jill Friday will be lower than the numbers on Jack Thursday.

Jill DeWit:
All right.

Steven J Butala:
They want the rant.

Jill DeWit:
Okay. All right. I’m going to go with you on that. I think that’s kind of funny.

Steven J Butala:
You can show them the clubhouse stuff.

Jill DeWit:
It’s okay.

Steven J Butala:
In the end, we all benefit.

Jill DeWit:
It’s okay. You got it. Hey, by the way, please be sure you check out our YouTube channel. If you like what you’re seeing and like what you’re hearing, please check out YouTube, hit the Subscribe button and please be sure to comment on the shows that you love. We are Steve and Jill.

Steven J Butala:
We are Steve and Jill. Information-

Jill DeWit:
And inspiration-

Steven J Butala:
To buy undervalued property.

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