Jill Friday – Why Non-Techies Make Great Land Investors (LA 1897)

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Transcript:

Steven Jack Butala:
Jack and Jill here.

Jill K DeWit:
Hello.

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

Jill K DeWit:
I’m Jill DeWit, broadcasting from the Valley of the Sun.

Steven Jack Butala:
Today, Well, it’s still Friday, and she’s going to talk about why non-techies make great land investors.

Jill K DeWit:
Thank you. As I alluded to yesterday, because of the nature of the business that you developed years and years and years ago, the whole underlying theme of using data and mail and all kinds of technical things, we naturally track really smart, brainy PhD engineering types of people. But there’s a subset within Land Academy. I like to think that I’m partially responsible for, of those of us who don’t necessarily think that way and we smash it. And I want to talk about that today.

Steven Jack 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. Back in the day, it was almost impossible to find a piece of land without a mailing address, like 123 Main Street. Why? Because the post office didn’t assign, and has still hasn’t assigned, the vast majority of pieces of real estate in this country. They don’t need to. Nobody gets mail there. So instead, we decided to make this database of 150 million properties or so in the country, finite instead of infinite. And we put together a website called neighborscoop.com. So all you need is the state, the county, and the assessor’s parcel number to find just about any property in the entire country. And we’ve added a bunch of things to it to make it make a lot of sense for Land Academy type people as far as analyzing property to see if you want to buy it really quickly.

Jill K DeWit:
All right, back to our question, Corey wrote, “As a newbie, one topic that I’d like to see covered is what phase two due diligence looks like.” We’re going to do that next week in career path. “The weekly member calls are amazing for what? For seeing what phase one due diligence is all about. But I’ve not come across anything that breaks down some of the things we should be looking for in phase two. I believe I have a pretty good idea, but I’d love to have a podcast to reference.” It’s funny, I did a deep dive on this on a Facebook live event. I’ve done phase one and phase two due diligence thing. So if you dig in our community, you’ll find it. Okay, so let me back up. What’s phase one due diligence? That’s the thing that you spend five to 15 minutes on. Five, if you’re me, 15 minutes if you’re new, checking a property when it comes in to see if you want to buy it and see if it passes your test to move it forward in the process as an acquisition. That’s where you cover all the six A’s. And like I said, if it passes those, now you push it forward. What are the six A’s? You want me to go into that much detail here?

Steven Jack Butala:
Sure. The six A’s are really simple. It’s access. Affordability, is it cheap enough to buy? Attributes, is it cool? Other fun stuff around it, like Las Vegas, or is it in the middle of a subdivision, which is cool, too? Or is it in the middle of nowhere? Not so cool.

Jill K DeWit:
Acreage.

Steven Jack Butala:
Acreage, bigger’s better, almost always.

Jill K DeWit:
Alive.

Steven Jack Butala:
Alive, is the person that owns the property alive or do you have to undo a bunch of legal stuff?

Jill K DeWit:
And adjacent.

Steven Jack Butala:
And adjacent, what is immediately next to the property? Which leads you to phase two, due diligence.

Jill K DeWit:
So if it passes all that stuff, now you’re going to move it forward to phase two. So this could be a whole different podcast. So I’ll touch on it lightly and maybe let’s make it a whole different podcast next week.

Steven Jack Butala:
Yeah.

Jill K DeWit:
And we can deep dive a little bit more. Phase two is, it passes all those things, but I’m not quite sure if the person… I see my buyer as a hunter and I want to make sure it’s big enough. Or I’m, it looks like I’ve got physical access, but I’m not quite sure about physical and legal access. So these are things that come up in phase one that you need to do a deeper dive in phase two. So that’s what phase two is. Phase two is getting to the bottom of it. Phase two, and one of the questions that often comes up, say you’ve got all the five A’s, not a hundred percent sure on the pricing, but your initial gut is, yeah, I think it’s good. So I’m going to move it forward.
Phase two due diligence with pricing is, now I’m going to do a deep dive, I’m going to spend an hour on this. I’m going to call a couple brokers, I’m going to get their opinion on it, that’s going to answer my questions. So that’s what phase two is. Calling the county, calling a broker, doing some more deep diving on your own, something like that to make sure this is a good acquisition for you. What I don’t want you to do in phase two due… Phase one and phase two due diligence is in the course of a 40-hour work week, two hours of your time. It is not 20 hours of your time. Because if you’re spending 20 hours of your time on trying to solve something, then you probably shouldn’t be there. It’s not passing the tests and you’re looking too hard and now you’re trying to… What happens too, if you’re spending 20 hours of due diligence, phase two due diligence on a property, you’re trying to make it fit into a mold. You’re trying to like, “Oh, but I can overcome this.” That’s what you’re doing now and you shouldn’t be doing it.

Steven Jack Butala:
Phase two due diligence in a single word for me is use. I’m going to confirm. So pass all my phase one, now I’m going to confirm it in phase two due diligence. Can the property be used effectively how I want it to be used? It’s surrounded all around houses. It’s an [inaudible 00:05:47] lot. Well, can I use this property effectively to build a house on it? Effectively, meaning I don’t have to massively adjust grading or there’s not wet or all of that. So it’s just confirming use. You know, wet’s not necessarily, it’s not bad at all if you’re going to sell it as duck hunting property, and on and on and on. It’s all-

Jill K DeWit:
That’s another. That’s exactly good example of what things that we do in phase two.

Steven Jack Butala:
It’s use, yeah.

Jill K DeWit:
Phase two, yeah, souse, maybe the money, maybe dig a little more into the wetland situation. I need to get some eyes on it. That’s another one, doing slope. All of those things are phase two.

Steven Jack Butala:
Today’s Jill Friday, she’s going to talk about why non-techies make great land investors. This is the meat of the show.

Jill K DeWit:
Okay. I’m not a data nerd, no offense.

Steven Jack Butala:
None taken.

Jill K DeWit:
I’m not a spreadsheet-

Steven Jack Butala:
I was born this way.

Jill K DeWit:
Geek. No offense. I’m not a spreadsheet PhD, but you know what? I do just fine. And if it were… I wouldn’t be as good. Well, let me tell you, actually, I would be as good because I would find you. So here’s the deal. If you’re coming into this because you, of the two of us, you identify most with me, and there’s something there, and you’re like, “I don’t know if I can do this because I don’t have a Jack,” well, you can find a Jack. So here’s what I want you to think about and here’s why I’m doing this talk today. Non-techies make great land investors because A, we may not have those exact skills, but I think we do a pretty good job of taking a step back, assessing the big picture and knowing how to, what holes we need to fill, kind of thing. That’s number one.
And I think, two, we’re good at setting goals to fill those holes. So for example, I’m a Jill. You’re a me, you’re like, “I could talk on the phone all day long. I can’t get this data out, but I heard you guys have a concierge that’s going to solve my problems.” Ding ding. You didn’t even have to take on a partner by the way. You just solved your problem. That’s a really good example of how you are an effective land investor in this business. Number two, we have other skills. We have, as you know, we’re so good at fill in the blank. For me it’s talk on the phone. I love selling. All those things are really valuable skills. And anybody who is a techie will say that I need you. I need that. It’s hard for me to do my job. And there’s some people in Land Academy, they’re really techy, really good. They use Pat Live and they can get, that’s how they get their phones answered.
But even when they call them back, they’re not as effective. They’re not as good as having somebody that can really talk to these sellers and get on their level because… And maybe they’re just, they don’t want to talk on the phone at all. There’s a lot of people that just are so good with numbers and they can type and they communicate that way. But gosh, picking up the phone, they’re lost. And they’re missing out on deals. So that’s another skill that we have and that we’re really good at.
And then my third thing is with why I think non-techies make great land investors is we don’t… We’re not going to get bogged down on trying to create perfect data. I see an experience, you know what I’m talking about, many very smart PhD-level and real PhD-people that take data to a new level and they can get lost in it. Sometimes it holds them up from getting the mail out because it’s going to be perfect, man. I am going to spend a month on this and it’s going to be beautiful and perfect. And then in that month, what I could have got out in the mail and what deals I could have done and conversations I could have had. And what if I did do it wrong and I screwed it up? But you know what, I was able to talk my way through it and get on the same page with this person, and I realized I offered 5,000 too much, dollars too much. And I got this person and we’re on the same page. And I tell them nicely, “I goofed, I can’t pay that much, but I can pay this.” And I forged this relationship because of how I talk and communicate with and build a relationship with a seller. So I got what I wanted. I’m off and running.

Steven Jack Butala:
Every business has components, every single business. And very often all the components are dealt with and created by the person who starts the company, the startup person. I’m a startup person and I’m happy to do all of that stuff myself in the very beginning, knowing full well that once the thing gets going, it’s got its own revenue, and it’s become its own thing, which is my goal as a startup person, that I’m going to either exit out of the thing completely or I’m going to put these people in place and continue to be the owner and not really work there. That’s my comfortable space in the world, in my professional world. But what I think gets lost sometimes is that those components to any company, let’s say it’s a manufacturing company. You’ve got a person that can sell whatever you’re manufacturing, can sell it to people who need it, the components.
You have a shop manager who can actually run the shop and run the people that work in the shop that make the components. You have the people that are actually working there to make the components. It’s very, very rare on a longterm basis that that’s all one person. If it is, you can’t… You’re never going to succeed to the point where you could succeed because you can’t make all the parts that are necessary. You have to delegate and these components all have to work together. This business is no different. So Jill’s piece of this or my piece of this, they’re essential. It’s not an option to just… And we’ve had people in the past come to us and say, “Who are Jacks?” I sent out a hundred thousand letters and I expect to get 25 or 30 of them back signed. I expect to take that purchase agreement, hand it, without ever talking to the seller, hand it to the escrow agent and get the deal done. Then I’m going to take it over here, give to the real estate agent, they’re going to sell it and give me my money. This doesn’t work that way at all.
Jill’s part of this is essential and my part of this is essential. And if you’re lucky enough to be both, you’re going to get away… And I am, quite honestly both of those. But, and I got away with it for a while in that startup phase until I realized it’s just not going to work the way it should unless I find a partner who can close these deals essentially. So I would not have written the title this way, but I think it’s really, really effective the way Joe wrote the title. I just think both components are really, really essential. And if you happen to be the person who’s like, “I’m going to join Land Academy and I’m going to do this,” and you don’t want to do mailers anymore, there’s options.

Jill K DeWit:
Yep.

Steven Jack Butala:
Or if you’re like me, I’m going to join Land Academy, but I don’t want to talk on the phone. There’s options.

Jill K DeWit:
Right. Whether you outsource it or take on a partner, you have options. That’s my main point. I really wanted to get this out there because I want non-techies to know there’s a place for you here too.

Steven Jack Butala:
Well, I think you could be the leader, the ring leader.

Jill K DeWit:
That’s, there you go. Thank you for saying that.

Steven Jack Butala:
Honestly, in most cases, I think the tech person, I mean the salesperson, whatever you would call it, is the driver. I think those are the people have the dynamic personality and the ones that are seeking a better life and looking around and saying, “I’m selling all this stuff for somebody else and creating a huge amount of equity for them, not me. I can go sell over here. I just need to get a couple of Jacks involved.”

Jill K DeWit:
I couldn’t have said it any better. I’m going to leave it on that. Happy you could join us today. Five days a week you can find us here on the Land Academy Show.

Steven Jack Butala:
Join us next week for another interesting episode. You’re not alone in your real estate ambition.

Jill K DeWit:
That was perfect. Thanks for that recap.

Steven Jack Butala:
I think that honestly, I, in the past sent the message that answering the phone was optional. I mean, way in the distant past. It’s just not the case.

Jill K DeWit:
No.

Steven Jack Butala:
To get there… I might have been, we got away with it with doing real small deals, maybe, you know, in the desert. But to get the really good buy for 40, sell for a hundred, you need be on the phone.

Jill K DeWit:
Well, you know what, if you don’t answer your phone, you’re leaving money on the table.

Steven Jack Butala:
Yeah, totally.

Jill K DeWit:
That’s the bottom line.

Steven Jack Butala:
Yeah.

Jill K DeWit:
We are Jack and Jill.

Steven Jack Butala:
We are Jack and Jill. Information.

Jill K DeWit:
And inspiration.

Steven Jack Butala:
To buy undervalued property.

 

Thanks for listening, and finally, don’t forget to subscribe to the show on Apple Podcasts.

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