Extraordinary Deal Funding Volume (LA 1710)
Extraordinary Deal Funding Volume (LA 1710)
Transcript:
Steven Jack Butala:
Steve and Jill here.
Jill K DeWit:
Hi.
Steven Jack Butala:
Welcome to The House Academy Show, entertaining real estate investment talk. I’m Steven Jack Butala.
Jill K DeWit:
And I’m Jill DeWit, broadcasting from the Valley of the Sun.
Steven Jack Butala:
Today, Jill and I talk about the extraordinary deal funding volume we’re experiencing.
Jill K DeWit:
It’s so good.
Steven Jack Butala:
I, for years and years said, “We’ve created Land Academy and House Academy to create business partners for ourselves.” Well, it’s happening.
Jill K DeWit:
Well, you know what’s so funny? We didn’t plan for everybody… The way it worked and doing deals together and having more money and helping people with our money was, we thought about, but the fact that other people are helping other people with their own money, I never thought about.
Steven Jack Butala:
This is one big legal syndication that we have going on here. I’ve never said a sentence like this in my life and never thought it was possible. Jill and I could get anything funded, any deal of any size. If we believed in the real estate deal and sent out mega crazy mailers, which we’re doing this year, and we will run out of money at some point that we’ve allocated to buy land, we’ll very easily get funding on the rest. And that goes for you too.
Steven Jack Butala:
As a Land Academy member, you have access to tens of millions of dollars or more if the deal’s good. I’m really proud of that. It’s a serious accomplishment. It was one of the things that I tried to set out to do with this right from the beginning. Before we get into it, let’s take a question posted by one of our members on landinvestors.com online community. It’s free. And don’t forget to subscribe on the Land Academy YouTube channel and comment on the shows you like.
Jill K DeWit:
Erin wrote, “Anyone have a suggestion for this one? I need a mailbox to get back offers, but I’m not sure what to do since I may move in the next six months from the West coast to the East coast. If I set up one on the West coast, then I guess I could forward the mail to the East coast, but it seems very inefficient and would create a lag in responding to potential deals. Any ideas on how to better do this? Piggybacking on my last question, how about a phone number? Should I try and get a local area code number for Texas, let’s say if I’m after Texas land, if no one cares what area they’re calling back as long as you have the money?” I’ll read this one response. Is it one response in here?
Steven Jack Butala:
Yeah.
Jill K DeWit:
Okay.
Steven Jack Butala:
Just one.
Jill K DeWit:
And then I’ll add to it. Member Leonard already wrote in to help Erin here, and it says, “Hi. What I typically do is keep the phone number to the same area as my mailing address. We have used local area numbers and I don’t think it makes a considerable difference. It does help if you’re calling local realtors to have a local number. Don’t overcomplicate it for yourself. We use,” this is what I was thinking anyway, “www.virtualpostmail.com, and they email us a scanned copy of any letter.” This is the best. That’s what I was going to say. “Our phone system is open phone and it’s $10 per number per month. Keep your business address forever.” There you go.
Steven Jack Butala:
This response is-
Jill K DeWit:
Perfect.
Steven Jack Butala:
– from a father and son team in Ireland.
Jill K DeWit:
Yeah. [crosstalk 00:03:16].
Steven Jack Butala:
If anybody has figured this out, it’s somebody from a different country and got a time zone that’s what, seven or eight hours different?
Jill K DeWit:
Yep. There you go. I can’t do it any better, but I was going to mention, thank you, Leonard, for putting in there the name of the company. I couldn’t think of the name of the one, but I knew they existed, where you have a physical mailing address where your mail will go. They open it, they scan it, and send it to you so it’s like real time. This is what came in today, faster than I would scan it in myself. Perfect. And then the phone number thing, there you go. Couple points. You don’t need 50 phone numbers for 50 states. You don’t need phone numbers for each county, that local.
Jill K DeWit:
I think I agree with Leonard, because we did that for years. We kept Arizona as the home base and Arizona as the home phone number, which we still have those Arizona numbers because you never want to lose these numbers or those addresses, because 10 years from now, something great might come back. But then as I expanded, there’s times I’m working in different regions that it might be better. And where if you’re going to go East coast, West coast, you do need to kind of take a step back and just think about who’s going to be opening your letter, where it’s coming from.
Jill K DeWit:
Because if you’re mailing to an awesome, sweet, cozy area in the South, getting it from a Wall Street-looking address and phone number might not be well-received. But somewhere south of there, even outside of there, who knows. It could be even upstate New York might be okay or Midwest, something like that. What? You act like you’re sitting on your hands. Here he comes. Go.
Steven Jack Butala:
Look, I don’t have any-
Jill K DeWit:
You can disagree.
Steven Jack Butala:
I don’t have any empirical data on this. I just know personally, when I get a phone number that’s 818, which is LA, or 212, which is-
Jill K DeWit:
That’s what I was kind of going with.
Steven Jack Butala:
– Manhattan, I’m not talking to anybody from any of those places. I’m just not. And I don’t mean to pick on those.
Jill K DeWit:
Nevermind you’d lived there.
Steven Jack Butala:
They’re too big. Yeah, both places. I’ve lived in both of those places.
Jill K DeWit:
Yep. I was that guy. No, no.
Steven Jack Butala:
I’m just not sure if you own a bunch of property in Texas that you want to really be talking to somebody who’s got a Manhattan, New York phone number.
Jill K DeWit:
I thought that’s what I was saying.
Steven Jack Butala:
Well, there’s-
Jill K DeWit:
I was taking too long. Sorry.
Steven Jack Butala:
There’s serious, serious members in here that make a ton of money, and they all disagree with me on that.
Jill K DeWit:
Oh.
Steven Jack Butala:
They all say, “You know what?” Just like what the Irish people said. “It doesn’t matter.”
Jill K DeWit:
“Pick one.”
Steven Jack Butala:
“It’s really okay.” It’s so inexpensive to get another phone number.
Jill K DeWit:
Do you know what would be funny?
Steven Jack Butala:
The mailing address, I think you should keep the same, but I really do think that you need to have a phone number that’s where the land is.
Jill K DeWit:
I think we find a Google, to Google and see where the nicest people in the country live. I’m kidding.
Steven Jack Butala:
Where do you think that is?
Jill K DeWit:
I’m going to go with maybe it’s sweet Nashville. I don’t know. Maybe where all the country music comes from. Maybe it’s Nashville. So maybe that’s where you say, “You know what? I’m going to make Nashville my hometown, and I’m going to figure out, I’m going to adopt that accent.”
Steven Jack Butala:
I really wonder. I’m sure there’s been studies on this. I’m extremely pleased with Arizona. Moving back to Arizona from LA, it’s night and day.
Jill K DeWit:
Mm-hmm (affirmative). Yeah, but you have the yuppie Scottsdale thing. I don’t know if that’s still so much now. We can work it. Which, by the way, Scottsdale’s become… What do they say? “In Scottsdale, it’s the west most western town,” is what they say. And speaking of which, there’s a whole article in the paper the other day about how much from Yellowstone and the horse riding and stuff, which really goes on real here in Scottsdale.
Steven Jack Butala:
Sure. Well, the Arabian Horse Show, as we’re recording this, the Arabian Horse Show is all this week. It’s an international horse event.
Jill K DeWit:
So you could be a cowboy from Scottsdale.
Steven Jack Butala:
Yep.
Jill K DeWit:
There you go. I’m going to go with that one.
Steven Jack Butala:
I’m going to research this after this show is done. Oh, Steve, maybe you should have done it before the show, where the nicest people are really. I bet it’s the deep South.
Jill K DeWit:
I am curious. I bet I could Google that. I think it’s probably in the South. I’m going to go with not Kentucky, not Louisiana, not Georgia.
Steven Jack Butala:
Really?
Jill K DeWit:
No. Maybe South Carolina. Think about a state that’s not on our radar because they’re just so nice, helping out their neighbors.
Steven Jack Butala:
It’s not Vermont, I’ll tell you that. It’s not Detroit.
Jill K DeWit:
It is not California or Washington or Oregon.
Steven Jack Butala:
I went skiing in Killington, Vermont one time. I lived in New York, close to New York. I went skiing to Killington one time up in Vermont, and I got there and I checked into this hotel, and the guy that owned the hotel was standing there and I said, “I need a room.” He said, “Great. That’ll be X.” I don’t remember how much money it was. It was a lot at the time. It was triple, double or triple what I expected to pay. And I said, “Wow, okay,” and that’s all he needed to hear. He just closed the thing and that was it, and I couldn’t stay at the hotel.
Jill K DeWit:
Oh!
Steven Jack Butala:
And he said, “We wait all year for this. You’re not staying here,” and he slammed the thing in my face.
Jill K DeWit:
All right. Here’s what we’re going to do. I wrote it down. The nicest people in the country. After this show, we will research that and we will report back to you tomorrow.
Steven Jack Butala:
Yes. Perfect.
Jill K DeWit:
And I’m going to give you the nicest, and we’re going to look up the meanest.
Steven Jack Butala:
Oh my God. We didn’t even do the show yet.
Jill K DeWit:
I know. This is more fun.
Steven Jack Butala:
Today’s topic, extraordinary deal funding volume. This is the meat of the show.
Jill K DeWit:
I think this is funnier. Okay. Well, we kind of talked about it. Here’s what’s happening. People are snatching up deals before I can do my due diligence.
Steven Jack Butala:
We [inaudible 00:09:06].
Jill K DeWit:
It’s great.
Steven Jack Butala:
The rules of unintended consequences apply to Land Academy.
Jill K DeWit:
Yeah.
Steven Jack Butala:
People are in there. We have people in our group now that are just money people, and they’re private lenders and they’re lending. There is no deal that will not get done in this environment.
Jill K DeWit:
If it’s a good deal
Steven Jack Butala:
If it can stand on its own.
Jill K DeWit:
Yep. It’s amazing to me. It’s true. We are like, “I’ll fund that deal” on our Thursday call, and next thing you know, it’s like, “Oh, no thanks. I already got it.” What the heck? It’s good.
Steven Jack Butala:
Jill and I are funding an agricultural deal. This is what we wanted to happen.
Jill K DeWit:
Right.
Steven Jack Butala:
We wanted to help people who know how to find great deals, help them financially.
Jill K DeWit:
Right.
Steven Jack Butala:
And I couldn’t be happier.
Jill K DeWit:
Yeah. I don’t know why. We could have started it earlier, but we didn’t, but that’s okay. We’re here now.
Steven Jack Butala:
It’s okay. Yeah, sure, sure.
Jill K DeWit:
I know. You know where to do it. What are we talking about? All right. Here’s what we’re talking about. If you found a deal, it used to be you were limited to what you could afford, so you would send out mail based on what you could afford. “Okay, I have $10,000 to spend on property. Do I want to do one deal for $10,000 or I want to send out a bunch of offers to buy 10 $1,000 properties kind of thing, because that’s my budget?” Not a problem anymore. We want you to send out what you’re comfortable sending out, because you just need to uncover that great deal. The money’s here, whether it’s us or another member. This community is packed full of people with dough.
Jill K DeWit:
The key is this. Number one, if you are a Land Academy member, it automatically takes a lot of pressure off for the deal funder, because they know how you think. They know how you found the deal. There’s a lot of worry. You’re automatically going into it with a different mindset. Like, this is probably going to be good. This is mail. This is not something someone found trolling the MLS, because that’s not what we do. And then number two, you want to make sure it passes your test. Please don’t use the community as a sounding board for every single offer you get back. You want to do and learn to do your own due diligence. And when it passes all your us and you’re like, “Shucks. I’m either going to put this in Discord, I’m going to ask Jack and Jill, or I’m going to sell my wife’s car,” when you’re staring-
Steven Jack Butala:
Yeah. That’s right.
Jill K DeWit:
– those are your three options to get the deal funded [crosstalk 00:11:31]… Mm-hmm (affirmative).
Steven Jack Butala:
God, what would happen if I sold your car?
Jill K DeWit:
Oh! I just bought you a car.
Steven Jack Butala:
I know.
Jill K DeWit:
I didn’t buy you a car. We got a car together, but yeah. Oh! Yeah.
Steven Jack Butala:
Jill’s in love with her car.
Jill K DeWit:
Okay. Yes, that would be bad. My point is though, the deal’s so good, you’re weighing, “If I sold her car, I could fund the deal and buy her a better car. She might be okay with it.”
Steven Jack Butala:
I don’t think so.
Jill K DeWit:
I know.
Steven Jack Butala:
I don’t think-
Jill K DeWit:
Not for me, but I’m just saying in general.
Steven Jack Butala:
No, I think you’re actually one of the women who could get your head around that.
Jill K DeWit:
Oh, I could.
Steven Jack Butala:
I think there’s not a lot of women that would…
Jill K DeWit:
I could.
Steven Jack Butala:
Okay.
Jill K DeWit:
I’d be okay. You know what?
Steven Jack Butala:
Let’s not make this about-
Jill K DeWit:
Now that we’re talking about it-
Steven Jack Butala:
Let’s not make this about women.
Jill K DeWit:
No, I just saw you talking about me and my car. Now you’re talking about it. I think we answered the question. Back to the car. I could.
Steven Jack Butala:
It’s tens of millions of dollars.
Jill K DeWit:
It’s a lot.
Steven Jack Butala:
The last time I checked, it was like 50 or $60 million of money that’s just available for land deals, and that’s not the extraordinary ones.
Jill K DeWit:
Yeah. Don’t be afraid. We used to joke about adding a zero. It’s real. I want you to add a zero. Make your $1000 offers $10,000 as fast as you are comfortable, really quick.
Steven Jack Butala:
Right.
Jill K DeWit:
And then watch yourself do these $10,000 deals. And next, you’re going to start making them $100,000 deals, and it’s a great place to be. You have people with open checkbooks like me standing by, and then before you know it, you’re going to have your own little cash reserve and you’re going to be doing it for other people.
Steven Jack Butala:
That’s why you’re here.
Jill K DeWit:
And then watch that grow. And it’s houses or land, by the way, that we’re talking about, land right now. Houses are even easier, I got to say.
Steven Jack Butala:
Houses are easier to finance than land.
Jill K DeWit:
Uh-huh (affirmative). Houses are easier, because everyone can wrap their head around… It’s easier for people for some reason to… Maybe because we have more data. That’s the facts. We still have more house data than we have land data. So because of that, you can really accurately see days on market in the zip code, in this square footage with a pool, fill in the blank.
Steven Jack Butala:
Yeah, that’s right.
Jill K DeWit:
So getting those deals funded are no problem at all.
Steven Jack Butala:
People understand houses. People don’t understand land. I much prefer doing a land deal over a house deal, like times 10.
Jill K DeWit:
Me too.
Steven Jack Butala:
I know you do.
Jill K DeWit:
Isn’t that funny? We gravitate towards that, but houses are definitely [crosstalk 00:14:03].
Steven Jack Butala:
They’re just easier to finance.
Jill K DeWit:
Mm-hmm (affirmative). Happy you could join us today. Five days a week, you can find us here on The Land and House Academy Show.
Steven Jack Butala:
Tomorrow is Jack Thursday, and I’m going to do an episode called Numbers. You are not alone in your real estate ambition.
Jill K DeWit:
Was that a show? Was there a show called Numbers?
Steven Jack Butala:
Yeah.
Jill K DeWit:
Okay, good.
Steven Jack Butala:
Great show, actually.
Jill K DeWit:
I like that guy. The guy, the main actor, kind of like you with dark, curly hair.
Steven Jack Butala:
Northern Exposure, he is an FBI agent.
Jill K DeWit:
He was also in some Christmas movies with Tim Allen.
Steven Jack Butala:
Right.
Jill K DeWit:
Yeah, where he was the head elf. That’s it. Thanks for tuning in. We would love to connect with you on Clubhouse. Yes. You heard it here. We are on Clubhouse on the first and third Thursday of every month. I never remember the time. I want you to go find our club, so go to Clubhouse, find the Land Investing Club, follow it, follow us, and you will get notified. We’re Steve and Jill.
Steven Jack Butala:
We’re Steve and Jill. Information-
Jill K DeWit:
And inspiration-
Steven Jack Butala:
– to buy undervalued property.
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