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Making Land Transactions Too Difficult (LA 1870)

Making Land Transactions Too Difficult (LA 1870)

WP Making Land Transactions Too Difficult LA 1870

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Making Land Transactions Too Difficult (LA 1870)

Transcript:

Jill DeWit:
We didn’t do our poses by the way.

Steven Butala:
I know. Want to do it now?

Jill DeWit:
Sure.

Steven Butala:
Rolling video. Three, two.
Steve and Jill here.

Jill DeWit:
Hello.

Steven 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 the place for hot chicken.

Steven Butala:
Really?

Jill DeWit:
Do you smell that?

Steven Butala:
Nashville’s a hot chicken place?

Jill DeWit:
Mm-hmm. And you know what makes it extra hot? It’s the extra layer, the thick coating of cayenne pepper. This is one of the things that Nashville’s known for as hot chicken. So you better believe, this weekend.

Steven Butala:
Yeah.

Jill DeWit:
I am getting some hot chicken. I need to know what this all about.

Steven Butala:
I think that should start tonight.

Jill DeWit:
All right.

Steven Butala:
What do you think?

Jill DeWit:
That would be great.

Steven Butala:
Jill had a little cold, but she doesn’t have it now because-

Jill DeWit:
You know, hot chicken would probably get rid of it.

Steven Butala:
I think you had a Michigan cold.

Jill DeWit:
Maybe a Michigan or Ohio.

Steven Butala:
We can’t, well it’s probably the same thing.

Jill DeWit:
There we go.

Steven Butala:
I was constantly having cold and flu my entire childhood.

Jill DeWit:
Really?

Steven Butala:
I move to Arizona. Stopped. Completely stopped. Completely.

Jill DeWit:
Interesting. Thank you. Before we get into it, let’s take a question-

Steven Butala:
Take a question posted by one of the members, on our landinvestors.com online community. It’s free. Last year, a ton of Land Academy members came to us needing extra help, that last final extra push, to get their mailer in the mail. So many people came to us with it. We created a product called Concierge Data. Check it out at offers2owners.com. We will do your mailer for you, right up to pricing it at the very end. Hundreds of people use this product by the way.

Jill DeWit:
Love it. All right. Peter C. wrote, and then I have a response to this too.
So good morning everyone. So one second, I’m trying to hold back a sneeze. Okay, so we have a good deal with a signed purchase agreement that we just supplied to get deal funding this morning. So a timing question. Do you guys wait to set things up with the title company until after you’ve confirmed that you have funding for your deal or, do you go ahead and set things up with the title company immediately?
So Kevin, our moderator, wrote in here, “If you rush to the title company, you’ll need to get another purchase agreement signed when you get your funding partner lined up. I like to get the verbal agreement with the seller, and then get the funding partner on board. Then I have a PA, the purchase agreement, with the funding partner as buyer signed by the seller. Most funding partners would prefer I hold title in their name. Then I send it to the title company with all the contact information. I can do that in two to three days.”
You honestly, personally, I like it when they already have it in title. I think that makes me happy. And if you, on your purchase agreement, have a version of an assignee or something like that, then you don’t have to worry about it. Then I can come in as the assignee as the funder.

Steven Butala:
I completely agree with you. I don’t necessarily agree with Kevin’s way, although Kevin is very, very successful. He’s a moderator. We know Kevin really well, and he’s always in Discord all over the place. What Kevin’s way doesn’t accomplish is immediacy. So you want to tell the seller, “Yep, I’m opening escrow. Here’s the escrow number, where you are going to move forward with this transaction, and please wait to you hear from Sally Smith, the escrow agent. She should be calling you today.”
You can, and it’s much easier to do this if you have an escrow agent you’ve done a bunch of deals with, they’re going to say, “Oh yeah, that’s Jill’s deal again. She does this all the time and it’s going to be fine.”
Great question, and you can do it either way, but purchase agreements-

Jill DeWit:
Just like to lock it in.

Steven Butala:
Purchase agreements to us investors are teetering on insignificant, although you probably should have one. But if you, in the rest of the world, the real estate world, purchase agreements are this golden thing that everybody coddles. Because they’re so set up to force you to do a transaction once you sign it.
That’s just not the way we do it as investors. Real estate agent agreement is a quarter of an inch thick. Ours is a single piece of paper.

Jill DeWit:
I know, that’s funny.

Steven Butala:
And so, if you come to us as a real estate agent, everybody’s, this is a great, because this is-

Jill DeWit:
Ties into the show.

Steven Butala:
We’re talking about making land transactions too difficult.

Jill DeWit:
[inaudible 00:04:16] to just start the show and tie it in.

Steven Butala:
Today’s topic, making land transactions too difficult. This is the meat of the show.

Jill DeWit:
Brilliant.

Steven Butala:
A purchase agreement needs to be one page, to buy and sell a piece of real estate, not a quarter of an inch. “Well Jack, how did they become a quarter of an inch?” A bunch of lawyers got involved, at the state level, because case after case of lawsuits, and lawsuits, and upon lawsuits, for certain things, made a contract-

Jill DeWit:
Like lead-based paint.

Steven Butala:
A quarter of an inch thick.
The vast majority of the stuff doesn’t apply. There’s all kinds of financing contingencies. Doesn’t apply to us, we don’t get financing, so-

Jill DeWit:
Right.

Steven Butala:
That’s one great beginning example of making stuff too hard. What this show’s really about, in my opinion, is relatively intelligent people, who maybe have a little dash of OCD, or some related mental problem, I know about this because I might, may or may not be one of those people, can make things too difficult.
I’m going to tell a very quick story about how I got into the land business, and it’s this very exact reason. When I got out of school, I was a commercial real estate agent, full commission commercial real estate agent, and I decided to specialize because nobody was doing it, in long term care facilities like nursing homes and assisted living facilities, and I ended up… It ended up being a great decision.
I made a ton of money on, learned a lot, and ultimately graduated myself from some of the most complicated real estate transactions there ever was buying and selling a post-acute hospital. To some of the simplest real estate transactions there ever was. Buying and selling land with one agreement. There’s me the buyer, there’s the seller, there’s a purchase agreement and there’s the title company. There’s no financing, there’s no real estate agents, there’s no lender, there’s no inspector. You take out all of that stuff. And that came out of me… Buying and selling a post-acute hospital takes a year. You’ve got to get the federal government’s approval, the state approval, There’s all kinds of payors. And on and on and on and on. So this topic is near and dear to my heart because, it’s, look, the simplest answer is almost always the right answer. And so we were talking on the advanced call, a couple of days ago, about a specific transaction that a person was doing and they wanted to get everybody else’s opinion, and he had a great solution. And I was happy with that.
I’m like, “Wow, that’s a fantastic way to do this deal.”

Jill DeWit:
Right.

Steven Butala:
And there are a few other people that piped in and said, “Well, have you considered doing this?” So everybody’s agreed. The sellers agreed. The price is great. He’s shared the spread with us, it’s a easy six digit profit margin deal for him. The seller’s happy, he had a few contingencies, and then other people in the group piped in and started saying, “Well, have you considered doing it this way? Have you considered doing it this way?” And, to which I kind of just turned the mic off and said to Jill, “I don’t get it.”

Jill DeWit:
Yeah.

Steven Butala:
Why are we complicating this?

Jill DeWit:
That was the whole point. Everybody was adding. Adding layers upon layers of extra work. I’m like, “Why are they doing it?” So I thought about this before this show. I said, “Why-”

Steven Butala:
You actually planned?

Jill DeWit:
“…does this happen?”

Steven Butala:
You did some research?

Jill DeWit:
I do on every show, Thank you. I thought, I’m like, “Why does this come up?” And I was thinking, yeah, two things. One is that you reminded me, it’s just our personality. And two is I really, this is my other thing, I think this is more prevalent, that they’re just used to doing houses or something like that and there’s just… Or that’s all they know. That’s all they know.
Maybe they’ve never even bought and sold a house as an investor, but they’ve done it for themselves. And they know, if I don’t sit down and take an hour to sign, then that’s not right. What do you mean it’s one page? So the point of it is, for me today is, I err on the other side. I try hard to take things out. I try hard, when I talk to my sellers, to not complicate things. I tell them whatever it is, I’m going to take care of it. We don’t need… And if you have any questions, let me know. And any forms that you get, you don’t understand, call me. And when they do, call me and go, “Why am I doing that?”

Steven Butala:
What’s this lead-based paint?

Jill DeWit:
Right? Or why am I… I’m like, I know, trust me, it doesn’t make any sense either. This particular agent wants to include the COVID clause that you and I are signing, that we’re not going to sue anybody over COVID. Never mind you and I are never going to meet, and you and I are not going to stand on the property at the same time and be within six feet of each other too, but we need both to sign the COVID thing and they’re like, “Okay, got it.”
Just little things like that. It just… It angers me a little bit that people don’t take a step back, and really look at the big picture, and only do what is necessary, and just some people like to throw… Maybe it’s two, I have a third reason. Maybe they just want to feel more important. Maybe the bigger the stack, and the more that’s going on, they just feel like they accomplished a bunch of stuff, I don’t know.

Steven Butala:
Oh, that’s true.

Jill DeWit:
Okay.

Steven Butala:
Let’s take a few steps even further back. Why can something so easy be so profitable? People get hung up on that.

Jill DeWit:
Oh, I should have worked for it.

Steven Butala:
Here’s the type of… Yes.

Jill DeWit:
Oh, if I’m 80 grand I should work for it. No, not necessarily.

Steven Butala:
Here’s the type of personality that has this-

Jill DeWit:
That’s brilliant.

Steven Butala:
… internalizes, this type of stuff. Software engineers might work two years, on one portion, of a new app or software that comes out, and get paid for it hopefully.

Jill DeWit:
Oh.

Steven Butala:
This takes three weeks. And to make that much money. And all you did was sign your name a few times, and chose the right escrow agent. And sent the right mailer out.

Jill DeWit:
Noted.

Steven Butala:
So something that’s this profitable should be harder. And so people subconsciously make it harder.

Jill DeWit:
That makes a lot of sense. I can see that. I guess there’s a lot of reasons why.

Steven Butala:
Jill’s personality type, and I’m not joking or being facetious, is not that type of person. Jill goes into everything saying, “Well wait a minute, it’s this easy?” Well I’m going to even make it easier, and I’m going to do two of them. And so, an accountant, or an engineer, like my personality type’s like, “Wait a second. Let’s make sure that it’s all… All the I’s are dotted and the T’s crossed. I don’t want to make it complicated, but I am going to read all this stuff and go through it.”
And so you got to decide who you are. Then there’s, my final point is, and really, this is really important, you don’t want to skip along the top, and let everybody else do the work, the escrow agent, and just sign everything really quickly and say, “I don’t care what it says, I’m signing it.”

Jill DeWit:
Sure.

Steven Butala:
And, you don’t want to do that. You need to learn how to do this, especially when you’re new. And read everything, and get into Discord, and ask everybody all kinds of questions. That’s why your a Land Academy member.

Jill DeWit:
Right.

Steven Butala:
Because there’s a ton of us that have been right where you are. So you have to ask yourself who you are. But making this real complicated will end in a brick wall. Making it too easy, brick wall. So. But make it, as you go.

Jill DeWit:
Thank you.

Steven Butala:
Easier is better.

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

Steven Butala:
Tomorrow’s Jack Thursday. And I’m going to talk about why hope, is not a business model. You are not alone, in your real estate ambition.

Jill DeWit:
I love that by the way. I can’t wait to talk about that. I have some stuff to say.

Steven Butala:
Good.

Jill DeWit:
Hey, thanks for tuning in. Hey, and make sure you connect with us on Clubhouse. We are there on the first and third Thursday of every month at, I believe it is one o’clock Pacific Time.
But you know what? Check it for yourself. Go to Clubhouse, find the Land Investing group. That’s us. Follow the group. Find Jack. Find myself. Follow us. And then you will know for sure because you will see the schedule. But it is the first and third Thursday of every month, and join us. It’s like a live radio broadcast. You get to raise your hand, ask us questions, it’s pretty darn fun. This one now loves it.

Steven Butala:
Yeah, It’s like having your own radio show.

Jill DeWit:
Yep.

Steven Butala:
It’s really good to have. This is one-way communication into the camera. It’s great to have two-way communication.

Jill DeWit:
Exactly. We are Jack and Jill.

Steven Butala:
Information.

Jill DeWit:
And inspiration
To buy undervalued property.
Out.

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