How Many Blind Offers You Send is Tied Directly to Your Success (LA 1844)
How Many Blind Offers You Send is Tied Directly to Your Success (LA 1844)
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 Stephen Jack Butala.
Jill K DeWit:
And I’m Jill DeWitt. Broadcasting from the valley of the sun.
Steven Jack Butala:
This week we’re broadcasting from the valley of the sun. But by the time you listen to this, we are deep into the center of the country in an RV.
Jill K DeWit:
I know, I’m going to have to change it every time we record. I’m going to come up with a cute saying as to wherever we are, fill in the blank, it might be brought broadcasting from the center of the rust belt.
Steven Jack Butala:
Rust belt cracks you up. Rust belt’s been… Jill just learned the word rust belt.
Jill K DeWit:
Do you know what’s funny? Do you know what it is? I actually used soup to nuts in a sentence the other day and I didn’t know soup to nuts for a while too. That’s old school for me.
Steven Jack Butala:
People from Southern California are a very interesting bunch. Today Jill and I talk about how many blind offers you need to send and how it’s tied directly to your success. Before we get into it, let’s take a good question posted by one of our members on thelandinvestors.com online community. It’s free. I hope by now, Jill and I own and operate, successfully, a full blown commercial printing company to help you get offers in the mail. Offers2owners.com
Jill K DeWit:
Oh two. Oh, look. How cute is that? I have a cheer. O and the two and O.
Steven Jack Butala:
A cheer. What’s going to happen in this episode?
Jill K DeWit:
Oh my God. You think I’m like drunk or something?
Steven Jack Butala:
Check it out. Oh, but we send between 500,000 and a million offers a month. Check it out at offers2owners.com. Wow. Geez, Jill.
Jill K DeWit:
What? All right. Kevin wrote, “Oftentimes on the Thursday call while doing due diligence, Jack and Jill click around on the neighbor scoop and say, “I would call X, be at a builder or a neighbor et cetera.” My question is, well, how do you introduce yourself? Since they won’t have much to gain from answering your questions, how do you navigate the situation?”
Steven Jack Butala:
Let me back up and describe the situation and Jill’s going to answer that. If you get to a point where you’ve got a property that comes back, it comes back signed or you’ve renegotiated the situation, and you don’t know whether you’re going to buy or not, you’re making that final decision. So you present it on the Thursday webinar call that we have for all of our members and our answer is, you know what? I’m not sure either. It looks like a great piece of property. It looks like there’s access over here and the numbers support the acquisition so you can sell it for twice as much. But it’d be great to get an opinion from somebody who’s local. Why don’t you call a local builder, the gas station owner next door, or a local real estate agent and ask them their opinion of what they think the value is.
Jill K DeWit:
Or even not even that, it’s like, I can’t tell if this meets that. I can’t tell if the road stops here. I can’t tell how close it is to fill in the blank. I can’t tell how deep it is. So in the past, I had a situation, here’s a real example of this exact thing. We had an island and I couldn’t tell, based on the maps, when we look at the different dates on it, there could be access certain times of the year right? As the water levels go up, go down. I think there’s a bridge over here. I can’t tell there’s a bridge over here. So I was like, “I’m going to call somebody and figure out, can I even get over there without a boat?” So I did, I picked up the phone and started calling and it was good because there was a lumber company across the way.
This is a true story. So I dropped a little man on Google Earth Pro, you know what I’m talking about. You drag the guy down to there and you’re looking at the street view and I could read the phone number off the sign of the lumber company. So I could pick up the phone and call the lumber company and go, “Hey, I have a question for you. You know across the water there to you, that island over there?” “Yeah. Right over there.” “Can you get to that year round?” “Nope. Sometimes it floods. As a matter of fact, the water backs up and da, da, da, da.” You just pick up the phone and start asking questions. You don’t even have to say, “I’m thinking of buying it,” who I am, whatever. Just launch in and be nice. It’s funny what they’ll share with you.
You know what? There was a guy one time, “So are you looking at something? Are you going to hunt over there?” I was like, “No. I’m thinking about buying something.” “Oh, that’s cool. There was this guy one time that he would go over there and man, I saw him pitch a tent and I think the guy was living there for a year. Talk about it nice life.” “Really? That’s cool.” “Yeah. I know. There’s a bridge on the south side and that’s how everybody gets over there.” “Oh, that’s awesome. Thank you very much.” Now I got what I needed.
Steven Jack Butala:
What she’s saying is use the dynamic personality inside of you. Jill’s dynamic personality lives outside of her all the time. I actually have one, believe it or not, it comes out about 2% of the time.
Jill K DeWit:
That’s true. I want to start using that now. I’m going to say, “Can you please bring your dynamic personality tonight? Because I think it’ll be way more fun for everybody involved.”
Steven Jack Butala:
It’s a lot less work for me too. That’s what she says.
Jill K DeWit:
Exactly. Yeah. We’re going out to dinner with people I like, so can you do this?
Steven Jack Butala:
I don’t have to get the critique of my behavior in the car and the way home either if I do that.
Jill K DeWit:
Yeah. Who’s this guy? Thank you very much.
Steven Jack Butala:
Today’s topic, how many blind offers you need to send and how it’s tied directly to your success. This is why you’re listening. Like I said earlier, this topic is one of those that I think it just goes without saying, but sometimes you just got to state the obvious. If you send out a thousand letters, chances are you’re going to buy a piece of real estate that fits within our methodology. If you send out 2000, you’ll buy one for sure. If you send out 3000, you’re going to buy one piece of real estate that’s pretty amazing.
Jill K DeWit:
A great one.
Steven Jack Butala:
And on and on and on. It’s directly tied to how much mail you send. If you send out 50,000 mailers, chances are you’re going to buy 10 pieces of real estate-ish. Let’s say five to 10 that are truly amazing and you’re going to sleep like a baby at night because what’s going to happen. So my argument has always been, oh and here’s the math, 50,000 mailers cost about $25,000. If you buy two pieces of property where you make $40,000 each, you spent-
Jill K DeWit:
25.
Steven Jack Butala:
25 grand to make $80,000.
Jill K DeWit:
You’re going to have more than that.
Steven Jack Butala:
You’re going to have-
Jill K DeWit:
That’s-
Steven Jack Butala:
More-
Jill K DeWit:
That’s if you did it all wrong.
Steven Jack Butala:
A more realistic example is send out 50,000, cost you $25,000, buy-
Jill K DeWit:
Buy 10.
Steven Jack Butala:
10 properties, you make $80,000 each, now you’ve made $800,000.
Jill K DeWit:
Off a $25,000 investment.
Steven Jack Butala:
That’s a realistic example for-
Jill K DeWit:
Way more.
Steven Jack Butala:
A lot of people like us or in career path or on their way. I wouldn’t recommend starting out that way. But I’m just saying, please know this. As you travel down your journey in this career, it is directly tied to consistently sending out a lot of mail. You have no choice. If you put yourself in a system where you’re sending out 10,000 mailers a month, every single month 10,000 mailers go out, you have no choice but to answer the phone and do those deals.
Jill K DeWit:
I used to talk to people about how much property they could afford. That used to be the conversation when we first launched Land Academy. We didn’t have deal funding. I wasn’t doing it. I had my own budget of money that I was spending on my own deals. Now we can fund your deals so you don’t have to think about it. So the conversation has shifted for me with new people instead of how much do you have to invest? Because let’s think about what kind of deals you can buy to how much do you have because that’s how much mail you’re going to send. That’s really how you should be thinking about it. You have $10,000 sitting aside right now that needs to go to your mail. You need to really focus on finding the deals.
Not I’m going to spend 2000 on mail and I can buy two, $4,000 properties and then try to double those. Why? Why would you? Because then you did all that work, right? The same amount of time, you’re going to buy two for four, sell them for eight. Now you’re staring at $16,000. Okay, that’s great. Slash however, if you put all that money into the mail and you went only for properties that you buy with a partner like me for $30,000, now they’re worth $70,000, huh? We’re going to get there a lot faster. So buy for 30, let’s just say, sell for 70. So we got a $40,000. We split it and you did two of them. So that’s 20,000, you made 40,000 instead of your 16 and did it all by yourself.
Steven Jack Butala:
If you own a convenience store or in a manufacturing company or a plumbing company and you only were open on Thursday, let’s say you decided one month, “Well we’re going to open all the time. We’re going to have the convenience store open seven days a week.” Then next month, “Ah, we’re going to just open on every Thursday, four days a month.” What’s going to happen to your sales? That’s what it’s like with sending mail.
Jill K DeWit:
That’s true.
Steven Jack Butala:
You have to send mail out consistently or you’re setting yourself up to make 10% or 5% or 1% of what’s potentially out there.
Jill K DeWit:
Right.
Steven Jack Butala:
I’m not selling anything here.
Jill K DeWit:
It’s like baiting.
Steven Jack Butala:
It’s just how to run-
Jill K DeWit:
You need to go out-
Steven Jack Butala:
How to run your company.
Jill K DeWit:
I’m so proud of my girlfriend that we talked about a couple months ago where she had three or four dates in one day. I thought that was brilliant. It’s like a revolving door at the coffee shop.
Steven Jack Butala:
Whatever happened with that?
Jill K DeWit:
Apparently nothing worked out because I think we went on-
Steven Jack Butala:
Well, she didn’t go out with enough men.
Jill K DeWit:
Maybe that’s it.
Steven Jack Butala:
Maybe she sent a 200 unit mailer and she should be sending a 2000 unit mailer.
Jill K DeWit:
That’s it. Her four in one day should have been 40 or just four in one day every day.
Steven Jack Butala:
Oh my God. That’s awful.
Jill K DeWit:
Kind of.
Steven Jack Butala:
Can you imagine?
Jill K DeWit:
How funny would that be?
Steven Jack Butala:
You’d get good at it though.
Jill K DeWit:
That’s a good Saturday Night Live skit. You know what I mean? Date after date, after date and they just get worse or something.
Steven Jack Butala:
Yeah.
Jill K DeWit:
Sorry. I crack myself up sometimes. Did you-
Steven Jack Butala:
That was all for you I guess.
Jill K DeWit:
I guess so.
Steven Jack Butala:
Send a lot of mail out really, really consistently. You’re going to love the results.
Jill K DeWit:
Happy you could join us today. Five days a week, you can find us here on the Land Academy Show.
Steven Jack Butala:
Tomorrow the episode on the Land Academy Show is called “The role of research in land investing.” You are not alone in your real estate ambition. What a luxury it is that we all have to be able to pull the phone out of your purse or your pocket and research stuff.
Jill K DeWit:
Like parcel fact?
Steven Jack Butala:
Like anything.
Jill K DeWit:
Which is great.
Steven Jack Butala:
Should I be a Land Academy member? Well, I’m going to spend eight hours researching this. Maybe there’s a better group to join. I’m going to research this. Maybe I’m going to buy a boat. Well, I’m going to look at all the reviews of all the boats for the next 10 hours and make a really informed decision. Research is a beautiful thing. If you’re my age, we never had anything like this. We would go read it in a book in the library, which is awful. It’s an awful experience if you’ve ever done it.
Jill K DeWit:
That’s true. Thank you. Thank you for tuning in. By the way, Jack and I, like I mentioned a little while ago, are fully aware that not everyone has 10, 20, a hundred grand lying around to buy land, buy your properties. So don’t worry about it. We fund many Land Academy members deals every single week through landfunding.com. Then in addition to that, hold onto your hat. Oh, I don’t even know what the number is, between somewhere, I want to get 50 to a hundred million dollars is sitting within our community to fund your deals. So there’s times that people submit deals to me and by the time I get back to them, somebody else funded it and that’s okay. It’s all good. As long as you got the deal funded. So check it out, go to support at landacademy.com or check out landfunding.com for more information. We are Jack and Jill.
Steven Jack Butala:
Information.
Jill K DeWit:
And inspiration.
Steven Jack Butala:
To buy undervalued property.
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