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Jack Thusday - 5 Things You Must Know Before You Start Real Estate Investing [ReRun] (LA 1886)

Jack Thusday – 5 Things You Must Know Before You Start Real Estate Investing [ReRun] (LA 1886)

WP Jack Thusday 5 Things You Must Know Before You Start Real Estate Investing ReRun LA 1886

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Transcript:

Steven Butala:
Steve and Jill here.

Jill DeWit:
Hey.

Steven Butala:
Welcome to the Land Academy Show, entertaining land investment talk. I’m Steven Jack Butala.

Jill DeWit:
And I’m Jill DeWit, coming to you from sizzling Scottsdale, Arizona.

Steven Butala:
Today, Jill and I talk about, well, it’s Jack Thursday.

Jill DeWit:
Yeah.

Steven Butala:
It’s the five things you must know before you start real estate investing of any kind. I’m going to tailor mine a little bit to land, but it’s really just being a general real estate investor.

Jill DeWit:
Oh.

Steven Butala:
I think there’s a little bit of a misconception about what this takes.

Jill DeWit:
Oh. I can’t wait because I wrote down my own list. I had trouble coming up with five. I think I came up with four. I could have turned four into five. I thought, “Nah, I’m going to leave them condensed.”

Steven Butala:
I came up with 40, but we’ll just do the top five.

Jill DeWit:
Aha. But mine’s also just general real estate investing. Mine is not necessarily land-focused. It’s kind of anything. Honestly, mine can be any niche. Mine can be anything. Mine could be the top five things you must know to start X.

Steven Butala:
A marriage.

Jill DeWit:
Even that.

Steven Butala:
Go.

Jill DeWit:
No, I’m not going to share my list now.

Steven Butala:
Quick. Come on. Read it off.

Jill DeWit:
No. I’m not going to share my list now.

Steven Butala:
Top five things you need to be in a successful marriage. Go.

Jill DeWit:
It’s the same list. I’m going to share it in a minute.

Steven Butala:
It’s the same list?

Jill DeWit:
Oh, it’s good.

Steven Butala:
You want to get into it?

Jill DeWit:
You’re going to hear this. We’re going to do this in a minute when we get to the topic. We’re going to have you envision my list.

Steven Butala:
Right. Here’s a new title. There’s a new title, five things you need to know before you cross out, start fill in the blank.

Jill DeWit:
Start X. Oh, yeah.

Steven Butala:
Because that’s how mine is too.

Jill DeWit:
Oh, mine could be a marriage. I’m going to use it. You know, I wrote it down as real estate investing, but we’re going to sub marriage in a minute here and it’s going to be funny.

Steven Butala:
Excellent.

Jill DeWit:
It’s like Mad Libs.

Steven Butala:
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 already with us in Land Academy, join us on Discord.

Jill DeWit:
Hold, please. Before I read the question, I’d like to give one little thing too. Don’t forget, Land Academy deal funding is bigger and better and faster, and boy, do we have money. We now have limitless money available and decades of experience, you can tell, look at us, to help you get deals done. Right?

Steven Butala:
Yeah. See this gray hair?

Jill DeWit:
Lots. So go to landinvestors.com and click on the Deal Funding tab today. Thank you. All right.

Steven Butala:
Nice.

Jill DeWit:
Where was I? Danielle wrote, “I have an owner who wants to sell and has three people on the deed. All three will signed.” That is helpful. “She also asked to have three checks, one-third to each.” Fine. “She also asked that I send them each a purchase agreement.” Okay, Danielle. Now you’re pushing it with me a little bit, but okay.

Steven Butala:
Well, they’re pushing it with her.

Jill DeWit:
That’s true.

Steven Butala:
It’s not you, Danielle.

Jill DeWit:
The other two are giving Danielle a hard time. I get it. “Should I list the property for the total amount? Should I list the property for the total amount on each purchase agreement or break it up into thirds for each person’s portion? Or should I send all three a new purchase agreement, three places to sign?” I like that one. It’s not that big of a deal. You don’t even really need … I mean, depending … If you’re going through escrow, I would send the same purchase agreement out.

Steven Butala:
Well, they’re not. She’s not, because the escrow agent would handle all this.

Jill DeWit:
That’s true too. All right, so you’re buying this property from all three sisters and they clearly don’t speak any longer. I’m assuming they’re triplets now.

Steven Butala:
They’re triplets in their 80s.

Jill DeWit:
And they don’t speak.

Steven Butala:
Who live in different countries.

Jill DeWit:
And they haven’t in 10 years.

Steven Butala:
And speak different languages.

Jill DeWit:
Exactly.

Steven Butala:
And the property’s worth five grand, and you’re paying 2,500 for it.

Jill DeWit:
Yeah. Oh, my gosh.

Steven Butala:
And all the numbers that you have to divide are even numbers, not odd.

Jill DeWit:
So it’s going to be rounded out. Exactly.

Steven Butala:
So it goes into cents, 33 cents each.

Jill DeWit:
Someone’s going to get a penny more. It’s going to be an argument. Oh.

Steven Butala:
My first question here, all kidding aside is, is it worth it? Is all this worth it?

Jill DeWit:
Totally worth it. Big deal. It’s not that big of a deal. Okay.

Steven Butala:
Really?

Jill DeWit:
Oh gosh, yes. Assuming they’re triplets and they’re 80 and that all these things are going on, I would send the same purchase agreement out to all three of them. If you really want one, it’s not a deal-killer here, by the way. You don’t really need to have this, but to all three of them … It’s kind of a nice thing that they all agree to sell. You have it in writing. We’re not stealing it from one sister or whatever, but they’re going all sign the deed anyway, so it’s not like it’s going to be funny. Have them sign it, send it back. Yeah. And the three checks … And then you put the one price because you’re buying the property on hold for X price. They all sign their version. You put it in your pretty file because you’re probably never going to show this to anybody. And then the three checks, I think that’s the rest of it. Is there anything else you want to add?

Steven Butala:
Yeah. I wouldn’t jump through these hoops at all.

Jill DeWit:
Oh.

Steven Butala:
I mean, there’s a lot of things that can go wrong. Let’s not forget that this is what escrow’s for. Maybe one of the sisters is just like, “Oh, thanks for the money. I’m not going to sign.”

Jill DeWit:
Oh, they don’t get it until after, though.

Steven Butala:
Oh, I thought you sent out with the notary, right? So now you got three notaries.

Jill DeWit:
Well, I’m assuming they’re all going to be together in a mediator’s office.

Steven Butala:
Oh. I was assuming the worst.

Jill DeWit:
I don’t know.

Steven Butala:
One’s in Italy.

Jill DeWit:
Yeah, how are they going to sign the deed, by the way?

Steven Butala:
One’s in Italy, one’s in South Africa, and one’s in New Jersey.

Jill DeWit:
Mm-hmm (affirmative). [inaudible 00:05:21] yeah, that’s the thing too, Danielle, there’s a little more.

Steven Butala:
There’s a lot of stuff going on there.

Jill DeWit:
Yeah, we’re not going to pay it until everything’s signed on the deed as well, so we’ve got to get past that hoop. This, yeah.

Steven Butala:
Better be worth it. That’s my comment, final comment.

Jill DeWit:
You might want to … You know what, Danielle? If there’s enough skin in it, let escrow tell them how it’s going to go.

Steven Butala:
Yes. You’re right.

Jill DeWit:
If they’re going to … Instead of them telling you how it’s going to go, might be worth it to say “I’m going to pay the $1,200 or whatever it is, have escrow tell you how it’s going to go, and then you all can argue amongst yourselves.”

Steven Butala:
You’re my girl. Today’s topic, five things you must know before you start out in real estate and investing. This is why you’re listening.

Jill DeWit:
Or anything else.

Steven Butala:
Or marriage.

Jill DeWit:
Okay, so here’s what I think. I got my notes here. I have four things on here. This is going to be good. And we’re going to sub marriage. is it okay if I do this first?

Steven Butala:
Yeah. Perfect. Perfect. I love it.

Jill DeWit:
Okay. All right. We’re going to sub out marriage.

Steven Butala:
You’re not going to go through all five, right?

Jill DeWit:
I’m going to just list them. I’m not going to say … I’m just going to give you the … I have four. Should we do them all?

Steven Butala:
Oh. I think we should … No, I think you should do one and we should talk about it. And then two, we should talk about it.

Jill DeWit:
Oh, okay. Okay.

Steven Butala:
You do your one, I’ll do my one.

Jill DeWit:
Okay. Number one, whether it’s marriage or real estate investing, you need to know your limitations.

Steven Butala:
I sort of have the same thing.

Jill DeWit:
What’s your number one?

Steven Butala:
Which is bring something to the table.

Jill DeWit:
Yeah. Marriage or real estate investing.

Steven Butala:
Yeah. Here’s some examples in real estate, and you decide if it’s … applies to marriage too. There’s all kinds of things you can bring to the table in either one of those situations.

Steven Butala:
For real estate investing, you might be bringing a tremendous amount of money and a lack of interest in actually learning to do anything. “I just want to fund other people’s deals.” “Great. Come on in. You’re welcome.” Or you might be bringing the exact opposite, an incredible amount and desire and a lust to make a ton of money and do well for yourself and your family, but you don’t have any money. That’s okay. We’ll match you up with the money guy. But bring something to the table.

Jill DeWit:
You might be a dating nerd.

Steven Butala:
Yeah. A great knowledge of data.

Jill DeWit:
Yeah. It’s a good thing.

Steven Butala:
Here’s what won’t work. If you bring nothing to the table and you sit there and you say, “Well, you guys need to teach me how to do it.”

Jill DeWit:
Mm-hmm (affirmative). Bring it on. Feed me, feed me.

Steven Butala:
Yeah. I’m not going to take responsibility for this.

Jill DeWit:
Make my phone ring.

Steven Butala:
Yeah. I mean, I’m not … That’s why I paid you. I paid you for this education. I’m not going to take responsibility for being successful. That’s your job. That’s not going to work in a marriage or in real estate investing. Can you imagine telling your spouse, “Well, I’m here. We walk down the aisle.”

Jill DeWit:
Yeah. Bring it.

Steven Butala:
Good luck on making this marriage successful. I’m just going to stand stand over here.

Jill DeWit:
I’ll be over on the couch. What’s for dinner? I’m on the couch and what’s for dinner? Oh, my gosh. Okay.

Steven Butala:
Hope you like McDonald’s.

Jill DeWit:
Yeah. There we go.

Steven Butala:
I hope you like an inner city dumpy little apartment and McDonald’s because I ain’t going to work.

Jill DeWit:
Oh, my gosh. All right. Number two, whether it’s real estate investing or marriage, I put you need to know what motivates you to push past those obstacles.

Steven Butala:
That’s good, Jill.

Jill DeWit:
Thank you. I really took a step back. I’m trying to think … There’s one thing to know about to be ahead of the game and know what I want to do and know my niche and all that stuff. This is before you’re even going to do that. I want to be a real estate investor. I need to really think about this. You know what? Part of this came from this talk that we had this morning with someone in our world who has become a really good broker, but he’s at a turning point in his career, basically, and he came to us and it turned into parenting advice, seriously.

Steven Butala:
It did, actually. It really did.

Jill DeWit:
It really turned into that, and talking to him about you don’t need us. You just need to make a decision on what you want to do kind of thing. So you need to know. I looked at it like that. Before you start anything, you got to know what motivates you. There’s going to be obstacles. Things are going to come up. Things are going to break. Are you going just throw your computer across the room and say, “I can’t do this,” and just walk away? No.

Steven Butala:
No.

Jill DeWit:
So you got to figure all that out. What’s your second one?

Steven Butala:
Along those lines. If you’re a broker, an agent, and you’re listening to this show, congratulations, you’re special, because you don’t want to be a broker for the rest of your life. You want to be an owner.

Jill DeWit:
Oh, yeah.

Steven Butala:
What motivates you from being a successful broker to a successful owner? As an owner, you make your own decisions. Do I want to buy this property? Yes or no? Do I want, versus I got this property, “Hey clients, do you want to buy this property, yes or no?” And you know what their answer is going to be? I’ll tell you right now. “I don’t know. Maybe.”

Jill DeWit:
Why?

Steven Butala:
“Well, when would you know? Because the seller’s waiting for an answer.” “I’ll check with my boss.” And this goes on for months and months and you never have control of the deal, and you lose a ton of really good transactions because you didn’t step up and be an owner and say, “You know what? “They have a bunch of money and I’ll be partners with them and own it.” And so the vast majority of brokers and agents I’ve ever met can’t make that transition mentally.

Steven Butala:
My number two is what you need to know to get into this industry, or to have a successful marriage, it’s not fast. It’s not fun. It’s not easy. It’s not going to be simple or short. It’s a lot of work and it takes a lot of patience.

Jill DeWit:
If you expect all those things with a marriage, it won’t be short. It will be short, I should say. It will be short. The last thing you want is your divorce longer than your marriage.

Steven Butala:
You know what the most amazing and unique thing about Jill, being in a relationship with Jill, is that she needs fun like she needs oxygen.

Jill DeWit:
Uh-oh. Oh, I do. That’s true. That’s true.

Steven Butala:
She needs to go on vacations, take RV trips. Tomorrow morning really early we’re going to go to California for five days, stay in our beach house. She’s in the best mood I’ve seen her in a month.

Jill DeWit:
Oh, thanks.

Steven Butala:
She needs to have a blast.

Jill DeWit:
I do.

Steven Butala:
So the second one doesn’t apply to you. You need to have a blast.

Jill DeWit:
Okay. Thank you.

Steven Butala:
And so do I.

Jill DeWit:
I know. You do too. Thank you. All right. So number three, for me, the five things you must know before you start your real estate investment career basically, is what niche you’re going to go after first, because I need you to stay focused. What man are you … just kidding. But seriously-

Steven Butala:
I do believe … Okay, go ahead.

Jill DeWit:
You need to pick a niche. You can’t zero in like, “I want to be real estate investor, and I’m just going to take the first thing that comes to me.” Oh gosh, you need to do some research and really have it figured out what you’re going for. Things will change. It’s like going into college. You got to pick a degree, and you might get in there and go find out it sucks. But you know what? This over here is so much better. I realize I’m really good at this, and you transition and you change your major. That’s totally okay.

Steven Butala:
Change your marriage partner sometimes.

Jill DeWit:
That too. But I want you to go into it. Have a goal and a plan, because if you have no plan, you’re just constantly chasing something shiny. You’re never going to get anything done.

Steven Butala:
Good advice.

Jill DeWit:
Thank you.

Steven Butala:
My number three is you need to go into this knowing which one you are. You’re either a Jack or a Jill.

Jill DeWit:
It’s true.

Steven Butala:
In very, very rare cases, and I fall into this rare case, I can be both, but I can’t stand being a Jill, and she loves it. I don’t want that role in my real estate investment career, so what did I do? I found a partner. You go into this and maybe for a year or two, you’re going to do it by yourself. But at some point, if you want to make the real money, you can’t do this solo. You’re going to have to find a partner. Maybe it’s a different partner on every deal.

Jill DeWit:
That could be. Yeah.

Steven Butala:
Or maybe it’s your wife. But you know, just get over it. You’re either super awesome at data and really enjoy it and constantly wanting to get up in the morning and want to do it, or you’re somebody who wakes up in the morning and can’t wait to get on the phone and turn some real estate deals.

Jill DeWit:
Yeah, that’s good. All right. Number four thing you must know before you start this is who you best connect with and want to learn from.

Jill DeWit:
I see a lot of people in social media just reaching for any mentor. “Can somebody mentor me? I’ll follow your …” I don’t think that’s the right way to go around this, go at this, and you’re just going to let some mentor come to you and say, “Sure, follow me,” and you’re just going to spend a month with them or something? You don’t even know what you’re getting into. You need to spend some time, put some research in. You’ve figured out your niche. You know what you want to do. Now, you got figure out who are the top three people in that field. Follow them around a little bit on your own quietly, not talking to them. Seriously. And just figure out what the deals are doing and start to see if you can think like they do.

Jill DeWit:
You know, like, “I knew they were going to buy that. I watched this whole thing unfold. I get it.” And then you know what direction you want to go. And I’m saying this too because I hope the show sings to you, whatever property type that you’re into. It could be apartment buildings. I don’t care. Whatever you want to go for, make sure you can connect with them, communicate with them, you understand them, because you know what? We’re not for everybody. I know that. I am. He’s not. Just kidding. I’m joking.

Steven Butala:
It’s all right. You know what’s not on any of our-

Jill DeWit:
I know I’m not for everybody.

Steven Butala:
You know what’s not on any of our lists here and it won’t be? You need to have a deep knowledge of a Perc Test. You need to have a understanding of the different way people can take title.

Jill DeWit:
Oh. Yes.

Steven Butala:
None of these real estate things matter.

Jill DeWit:
Nope.

Steven Butala:
You can learn all that in our education or all over the internet or anyone’s education who’s got two functioning brain cells about real estate. You can learn all that.

Jill DeWit:
That’s easy. Yeah.

Steven Butala:
That’s a real easy learning curve. But if you don’t go into this with the right head and soul and your heart’s in it like a marriage, it’s not going to work.

Steven Butala:
My number four, what you need to have before you start this is one word, personality. If you have an atrocious personality, it’s not going to work. You can be the greatest data guy in the world. You’re just not going to be able to find a partner to talk on the phone. And this is the same thing with being in a marriage, and this is really hard for some people. I don’t know why, but it is. Put on a smile if you need to. Get some new clothes.

Jill DeWit:
This is like my 70/30 thing.

Steven Butala:
Yup.

Jill DeWit:
Mm-hmm (affirmative). We’ll share that. We’ll share that later, but it’s the same thing. What’s your number five? I think I covered mine in four. That or I ran out of time, like us.

Steven Butala:
My number five is what you really need, and this separates the advanced group from … There are people that are making 50,000, 60,000, $80,000 a month, chugging along doing great, and there are people that make half-a-million dollars a month or $5 million a month, and we have all of those in our group. There are people in our group that make way more money than us and here’s what they have, an imagination.

Jill DeWit:
Mm.

Steven Butala:
And I think what goes on with an imagination in most cases is a sense of humor, like ha-ha. I mean, I just … A very good friend of mine came to me recently, a lifelong friend, and she said, “I have this great idea to start this company, and I know that you guys are pretty successful, and I’d love to run it by you. Can I buy you a drink?” And I said, “Absolutely.”

Steven Butala:
Her name’s Karen. And I said, “But before we do this, I just need you to know this, that no one can turn a dollar into 50 cents like I can faster. And so all this success that we have is only because these are the companies that are left. I don’t talk about all the failures that Jill and I have had, all the company failures that I had long before I met Jill. And so I’m not sure I’m the best person to give you guidance, but I’ll tell you this for sure. You’re going to fail at 15 of these things before you get one good real one where you can quit your job.”

Jill DeWit:
It’s true.

Steven Butala:
And that’s just how it is. Hopefully, you don’t fail at 15 marriages before you find the right one.

Jill DeWit:
Well, that happens.

Steven Butala:
But if you can’t go through that without a sense of humor and say, “Wow, we lost a ton of money on that deal. Well, let’s get back in the saddle.” It doesn’t happen to Jill and I too much anymore because we’re old enough and have wisdom enough to not veer too far from what we actually really know.

Jill DeWit:
Right.

Steven Butala:
But even last year we had some epic financial failures.

Jill DeWit:
We’d catch each other.

Steven Butala:
They didn’t involve real … Yeah.

Jill DeWit:
And it wasn’t this stuff at all.

Steven Butala:
It wasn’t real-estate related.

Jill DeWit:
We veered outside of our niche, if you will, and then we realized that was not the niche for us, but we had fun.

Steven Butala:
I’m going to flat out say this. Land Academy and the actually buying and selling land was the result of my creativity. No one was doing this. I dreamt it up one day. You know, it’s not-

Jill DeWit:
I’m giving you a hug because I’m so happy. Look where we are with you.

Steven Butala:
I know.

Jill DeWit:
Look where we are. Not just me, not we, we.

Steven Butala:
So we’ll leave it at that.

Jill DeWit:
Thank you. I didn’t mean to … I love it. Thank you very much.

Steven Butala:
I’m not bragging. You need to be creative.

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

Steven Butala:
Tomorrow, for us, fortunately, it’s Jill Friday. Where do I start in land investing? You are not alone in your real estate ambition.

Steven Butala:
“That’s great, Jack and Jill. You guys are great. Thanks very much, but this is all too much for me to take in. Where do I start? What’s the first step?” Jill’s going to tell us.

Jill DeWit:
Okay. Need to send out a few thousand offers to property owners like us? Check out offers2owners.com. It’s offers, the number two, and owners.com. No setup fees, free mail merge, and exceptional customer service. We should know. It’s our company. Give offers2owners a call today.

Steven Butala:
We are Steve and Jill.

Jill DeWit:
We are Steve and Jill.

Steven Butala:
Information-

Jill DeWit:
And inspiration.

Steven Butala:
… to buy undervalued property.

Jill DeWit:
You almost said Jack and Jill. I’ve done that too.

Steven Butala:
You know how many times I have to say it before I don’t stumble on it?

Jill DeWit:
I know. Well, apparently more than 1,501.

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