How Many Offers Should You Really Be Sending per Month (ReAir LA 1453)
How Many Offers Should You Really Be Sending per Month (ReAir LA 1453)
Transcript:
Steven Butala:
Steve and Jill here.
Jill DeWit:
Hello.
Steven Butala:
Welcome to the Land Academy Show. Happy Friday. Entertaining land investment talk. I’m Steven Jack Butala.
Jill DeWit:
And I’m Jill DeWit, broadcasting from sunny southern Scottsdale, Arizona.
Steven Butala:
Today, Jill and I talk about how many offers should you really be sending a month. And yesterday we agreed that-
Jill DeWit:
We’ll do three levels, whether you’re brand new, whether you’re intermediate or just an average in this business and then your advanced/pro, what you should be sending. And like I said, we separately wrote down our numbers and we’ll share them with you in a few minutes.
Steven Butala:
But 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 a Land Academy member already, join us on Discord. I really mean that. If you’re a Land Academy member already, this Discord thing was one of the best things that ever happened to this group. It’s just real-time advice. Hey, should I be buying this property or not? Hey, I need a lawyer in Atlanta. It’s pretty cool stuff.
Jill DeWit:
It is. Austin wrote, “Hello. After reading a recent post, I came across an affidavit of disclosure. I looked it up and it looks like Arizona may require this document when transacting land. For my Arizona transactions so far, I’ve conveyed the property to my buyers with a special warranty deed and an affidavit of property value. Am I doing the right thing or do I need to include this additional document to be above board? Thanks, Austin.”
Steven Butala:
You’re doing every single thing right. For Arizona, it just happens to be called an affidavit of property value. There’s a lot of other … By the way, this is all you need to buy property, two documents, the deed, and let’s just call it an addendum because it’s called different stuff in different states. It’s called a P-Corp in Colorado. What do they call it in California?
Jill DeWit:
I can’t remember.
Steven Butala:
The reason for this document is so that the assessor and the treasurer get a copy of it. Actually, I’m sorry. One goes to the recorder, the deed, and the affidavit never gets recorded. It gets walked over or sent to the assessor to notify the assessor that a transaction happened and so that it gets reassessed, most of the time, for the next year’s tax rates, which gets communicated to the treasurer.
Jill DeWit:
Based on what you paid for the property.
Steven Butala:
Right. In some states, they don’t do it at all. They used to not do it in New Mexico. I haven’t done a deal there in a while, which was just slam that stuff out. You could do a deed in five seconds. But they require something now. Today’s topic … Oh, you want to answer this?
Jill DeWit:
No, no, we’re good. Yeah.
Steven Butala:
Usually I just sit and listen to you.
Jill DeWit:
I’ll be over here. Just let me know if you need anything.
Steven Butala:
Today’s topics, how many offers should you really be sending per month? This is the meat of the show.
Jill DeWit:
This is your inventory. This is why you are in business. This I would argue is the number one thing. You can’t buy any property to sell any property to make any money if you don’t have any deals coming in, and you don’t have any deals coming in if you don’t send out any mail. So this is crucial. And I see people often make mistakes and it’s one easy little fix. They’re sending too little. You can’t send 100 a week. You can’t hand-write them. Actually today, by the time this airs it’ll be last week, I’m going to talk on Clubhouse about the difference between the number of deals that we get sending direct mail versus driving for dollars, even pre COVID. Let’s just say pre COVID, you can go knock on anybody’s door, introduce yourself, hand them a card. And you’re trying … This is what a lot of people used to do with us, how they would find deals, and get sellers that way.
Jill DeWit:
How many can you reach in one day? Think about it. You’ve got your best running shoes on.
Steven Butala:
50? 50?
Jill DeWit:
You packed your lunch. Yeah, maybe. Maybe not how many doors you knocked on, how many people have you actually talked to?
Steven Butala:
Oh, zero.
Jill DeWit:
How people opened the doors? How many gave you the time of day? And how many are really serious? If you were lucky-
Steven Butala:
That’s a good way to get shot actually.
Jill DeWit:
If you’re lucky, you got one or two good conversations, and all you’re doing is laying the foundation for someday if you decide to sell, please call me. I’m a good guy and I love this neighborhood. That’s really all you’re doing. But wow. And what we could do in hours in blast is a very big difference. Okay. So let’s go. What did you say? And also say per month, is that okay?
Steven Butala:
Yeah. If you’re brand new at this, like this is the first episode you’ve ever listened to, we’re not going to go over the benefits of why mail works. Just go back into the library of podcasts and look at why mail works, because we could spend a week talking about how incredibly amazing and why sending out a blind offer campaign and how we do it is beneficial.
Jill DeWit:
Right. Okay. So beginner, how many a month? How many a month?
Steven Butala:
1500.
Jill DeWit:
Me too. Love it. Intermediate?
Steven Butala:
3000 to 10,000.
Jill DeWit:
Oh, good. I’m right in there because I said 5,000. All right. Now I’m advanced. I’m a pro. This is my business. I have a team.
Steven Butala:
30,000 plus.
Jill DeWit:
Oh, I said 10,000 plus.
Steven Butala:
That’s okay.
Jill DeWit:
Okay. Because you’re doing like 10,000 a week.
Steven Butala:
By the way, if it’s priced correctly and you’re doing it correctly, for every 1500 you send out, you should buy a property. And I mean, buy a property where you double your money quickly.
Jill DeWit:
That’s the bottom. Often yield is going to be higher.
Steven Butala:
That’s the way bottom. That’s the worst case.
Jill DeWit:
Yeah, that’s the way bottom.
Steven Butala:
I did a 1500 mailer recently and we’ve got like 12 properties under contract. It was really surgical strike specific. But we also offered a lot. How about for houses? Do we look at my numbers?
Jill DeWit:
Oh, I didn’t know we were doing houses. Oh, this is good. Okay. So for houses, I’ll tell you right now, I’m going to say three times as much.
Steven Butala:
That’s about right.
Jill DeWit:
Times three.
Steven Butala:
5,000 for new. 15,000 to 50,000, that’s three times. And 50,000 plus.
Jill DeWit:
There we go.
Steven Butala:
And you should be targeting housing markets where it’s more of a dollars game than it is a percentage game for land. You should probably try to target making 90 to $100,000 a property. So for one out of every 5,000 letters that you send out, you buy a house where you’re going to make 100 grand.
Jill DeWit:
Let’s back up. Those are LA prices. Let’s give some Arizona prices. I’m not going to make 100 grand on a $250,000 house.
Steven Butala:
We just made $100,000 in Leisure World, $95,000 gross.
Jill DeWit:
Okay. Let me back up. Let me give some real world numbers too. You’re doing nothing wrong if you make $30,000 on a house.
Steven Butala:
Yeah. Net, net, net, net, net after, if there’s real estate agents involved after all of that stuff.
Jill DeWit:
Thank you.
Steven Butala:
So I’m saying the spread between the price that you buy it for and the price that you sell it for should be about $90,000 plus. And in markets like right now, in downtown Phoenix or in the real low DOM areas in Arizona, we’re just picking on Arizona, it’s going to be hard. It’s going to be very hard to accomplish that. That’s why I always preface by saying this. These numbers work. These yield numbers I just gave, one for 1,500 and one for 5,000, if you picked a good area and you priced it correctly.
Jill DeWit:
And you’re answering the phones.
Steven Butala:
Old town Scottsdale is a terrible place to send mail. There’s a good chance … This is why you should be a member of Land Academy, House Academy, because well, I’ll save you some time and money.
Jill DeWit:
That’s hilarious.
Steven Butala:
It’s just too busy. There’s too many people, too many rehabbers.
Jill DeWit:
So what do you think is the number one reason people are not sending out mail?
Steven Butala:
They’re afraid of making them stick.
Jill DeWit:
Love it.
Steven Butala:
Number one, Land Academy solves that, House Academy. And number two, they’re deathly afraid of answering the phone.
Jill DeWit:
Yeah. I hear that a lot. They’re like-
Steven Butala:
That’s solvable by getting a partner.
Jill DeWit:
If I send them mail, then they’re going to call me. Yeah, that’s exactly right. That’s really what should happen. What do I do? Well, know your stuff. Have that checklist out. I shared. It’s free. You can get it on our stuff. Print it out. Have it on your desk. That’s even what I do with new employees. And make sure they ask all the right questions. So then when they get the purchase agreement back and I have all the questions answered, I can review the deal. That’s the thing.
Steven Butala:
And if you, any questions-
Jill DeWit:
And after a few phone calls, you already will sound like a pro.
Steven Butala:
Reach out to other members. If you’re a member already, please reach out. Use the Discord tool. It’s amazing the amount of people … This is just a really good group, but it’s packed full of standup people that want to help.
Jill DeWit:
I think we inadvertently started that way. I think our giving, the way we give back, I just talked about this, I was on somebody else’s Clubhouse now. I was on somebody else’s, it was a seven figure sales venue where people are talking to people about coaching them.
Steven Butala:
Oh my gosh, you could teach that class.
Jill DeWit:
Right?
Steven Butala:
You are seven figures sales.
Jill DeWit:
Thank you. I know that. Well that’s what I kind of said. They’re like, “Who are you?” Because I have a couple of companies that are doing that. Oh shoot, I’m sorry. It made me lose my train of thought there. Oh well, I’ll get back to it.
Steven Butala:
Well, what we were talking about is we’re the people, we set the stage, we set the tone for giving back and creating this helping environment.
Jill DeWit:
That was it.
Steven Butala:
Not a competitive market environment.
Jill DeWit:
Okay. I was explaining how to get started and get rolling in anything, you give stuff away for free. You build up. And it’s relationships. And what we gave away and started in this community was a lot of us and a lot of our time, we still do, and our energy and answers. We don’t hold back. So, you were talking about how great our people are. I think it’s because we’re all that way. I’m sure of it.
Steven Butala:
Me too.
Jill DeWit:
Happy you could join us today. Five days a week, you can find us right here on the Land Academy Show.
Steven Butala:
Join us next week for another interesting episode. You are not alone in your real estate ambition.
Jill DeWit:
Hilarious. Talk about short-term memory.
Steven Butala:
We send a lot of mail out.
Jill DeWit:
Yeah. That’s it. That solves it. That solves everything.
Steven Butala:
When you get to the point where you’re getting daily deals in, it’s a good feeling. You should be running around the first year of your career, trying to figure out how you’re going to do this many deals. And it should look like just a hot mess, really.
Jill DeWit:
That’s awesome. Thanks for tuning in. We hope you find our content valuable and we really do appreciate your support. If you haven’t already, please check out our YouTube channel, hit the subscribe button, and give us feedback on the shows you love. We are Steve and Jill.
Steven Butala:
We are Steve and Jill. Information.
Jill DeWit:
And inspiration.
Steven Butala:
To buy undervalued property.
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