Title and Escrow Companies Actually Want Your Business Again (LA 1900)

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

Steven Jack Butala:
Today, Jill and I talk about how title and escrow companies actually want your business again.

Jill K DeWit:
I think they’ve always wanted our business, but it sure felt like they didn’t for a while when they were overwhelmed and maybe not as responsive as they could be, or certainly not as fast as they could be. So things are changing and I’m going to share a lot about that today.

Steven Jack Butala:
Before we get into the topic, let’s take a question posted by one of our members on the landinvestors.com online community. It’s free.

Jill K DeWit:
By the way, did you know we have a lot of people needing help getting their blind offer campaigns into the mail? Some, it’s just a simple mail merge. Some, it’s downloading, scrubbing, and pulling comps to accurately price those offers and get them in the mail. So we created a company, I didn’t realize this was in here, so I’m just kind of ad libbing it myself. We created our own company and it’s Concierge Data. You want to talk a little bit more about that?

Steven Jack Butala:
Concierge Data serves as your outsource to getting offer campaigns in the mail.

Jill K DeWit:
Right.

Steven Jack Butala:
Whether you’ve done hundreds and hundreds of mailers and you’re just tired of it and need to outsource it or you’re brand new, it’s the same exact people. And it’s our people that have been doing our mailers, Jill and I, for years. We’re just making them available to you.

Jill K DeWit:
Exactly.

Steven Jack Butala:
It’s an extension of offers to owners, so check it out. Support at offers, the number two, owners.com.

Jill K DeWit:
Eric wrote, “My first mailer finally hit today. Woo hoo. Four responses. Okay, three were very angry curse outs from property owners who felt like I personally tried to offend them, demanded to be taken off my list while refusing to give me any more details about their name or addresses, making removing them really from my list kind of difficult, LOL.” I get that. “And in a direct contrast, one very nice older gentleman who bought his property in 1979 and has done nothing with it since happy to sell it to me at the price I offered. What a wild day.”

Steven Jack Butala:
This is exactly what happens in real life.

Jill K DeWit:
Yeah.

Steven Jack Butala:
Exactly. So if this is something that appeals to you, then Land Academy is for you. Four people respond, three people are livid, one person wants to sell. Now I’m making 30, $40,000 and the person that I’m actually buying the property from is happy.

Jill K DeWit:
Yeah.

Steven Jack Butala:
You’re solving a problem and you are happy and the person that you sell it to is happy.

Jill K DeWit:
Yeah.

Steven Jack Butala:
There are a shocking number of people that aren’t prepared for this, and that for some reason don’t understand that. And honestly, geez, how many phone calls have we received? Millions of letters sent out. It’s still shocking to me and a lot of people probably, I don’t know, maybe you too, how mad people get about and really upset about sending offers to, “I’d like to buy your property and this is what I think it’s worth.”

Jill K DeWit:
Right. It is kind of comical. I wonder if they do this with everything else because think about the real estate agents that troll for listings and they put things even on your door. Do they chase them to the curb? Think I’m kidding?

Steven Jack Butala:
I mean, I appreciate this direct approach. “I’d like to buy your property and I’d like to pay you $32,000 for it.”

Jill K DeWit:
Yeah.

Steven Jack Butala:
My response would be, “No thanks.”

Jill K DeWit:
Remember pre-COVID?

Steven Jack Butala:
I wish you the best.

Jill K DeWit:
Pre-COVID Driving For Dollars for a lot of people meant knocking on doors. No, I’m not kidding.

Steven Jack Butala:
Yeah.

Jill K DeWit:
And I always thought, “What a waste of time, what I could do.” You spend eight hours knocking on doors. If you’re lucky, you have one conversation with somebody and they probably don’t want to sell. Or at least if they want to sell, it’s their make me move number kind of thing. I’m like, “What I could do in eight hours is different.” So I’m actually curious. I’m going to have to do some recon on this. Did Driving For Dollars come back post-COVID? Has everyone figured out that wasn’t the most efficient? Or are they back driving around knocking on doors?

Steven Jack Butala:
Oh, I think it’s gone forever.

Jill K DeWit:
You think? Oh, okay.

Steven Jack Butala:
Yeah, I really do.

Jill K DeWit:
All right.

Steven Jack Butala:
And COVID was not to totally responsible for that, but in part. It’s just so inefficient.

Jill K DeWit:
Right.

Steven Jack Butala:
All it takes is a couple people like us to talk about how inefficient it is. Anything that doesn’t have to do with computers these days, it’s going to be pretty inefficient.

Jill K DeWit:
Right.

Steven Jack Butala:
Today’s topic, title and escrow companies actually want your business again. This is the meat of the show.

Jill K DeWit:
So here’s the scoop here. If you’ve been in the business like I have, we have, for a bit now let’s just say.

Steven Jack Butala:
It’s a nice way to say it.

Jill K DeWit:
Yes. Or even if you haven’t, you probably heard what was going on in the last six, 12 months, 18 months. COVID hit, everybody’s panicking. And the next thing you know, home prices are up, everybody’s moving, everybody’s buying. Oh my gosh, there’s all this stuff. And look at the prices going up in this area and that area. So much happening. So what was going on with that? So now, all these title companies were bogged down. Not even just a title company. Say you wanted to refinance, there was a lot of stuff going on there too. People were having a hard time getting questions answered or getting deals done kind of thing. And for us in the investment world, some of our transactions that we’re taking three weeks were taking three months to get done because you couldn’t get the title work done.
And just as agents, we’re really overwhelmed with the number of transactions. So now, as we’re watching, we all know that interest rates are up. And we are seeing too days on market go up a little bit. We’re really seeing inventory go down. There’s not as much out there. So the big picture is, there aren’t as many deals happening at this point. So is that good? Is that bad? Well, here’s what’s going on with us in our world. It’s good for us as far as these escrow companies are not have as many transactions. I bet they hired as fast as they could. I bet they really beefed up their teams, they had to to keep up.
So now what we’re experiencing is escrow and title companies are calling us, flat out calling my team saying, “Hey, do you guys have some deals you need to get done? I’m here. I’m ready. I can handle it.” So this is such a good thing for us because a couple things are coming out of it. Number one, now is a great time to, A, let’s negotiate some good rates. We can say, “Yeah. Hey, you know what? Here’s the deal. I got 10 I need to get done right now. So what kind of deal can you cut me on these investor rates?” Okay. And they’re willing to do this, A. And B, how fast can you get these done for me? They’re like, “Oh, yep. And I can do that too.” So we’re back. We’ve always pushed for, especially on the buy side because these guys are so happy to get cashed out, the caller in the question. I can really get things done and close with title in five and seven days, so it’s great. Talk about how great is that for you and for your seller.
The other thing is, some of these escrow companies are offering like, “Hey, do you want us to go and get the title commitment, get that stuff rolling, and maybe in your hands right now before you open escrow?” Imagine you have all the title work done and you can look at it and see what it is you would be buying. Have that schedule B and know all the exceptions, know about access, know about the… basically have all the title work done. So that too tells you, A, what you’re buying, and B, how fast you can close. Because then when you open escrow, it’s just a matter of let’s just get the deed done, and when can everybody sign kind of thing. It is that fast.
So that’s my second point, which is wonderful. And then my third point today is, think about what we talked about earlier this week about maybe you’re going to hire somebody. I think that was on Monday. I think that was the first one that we recorded and hiring an employee. Some of the best people you could have on your team as an investor is someone that understands escrow, understands how to work through title problems, and maybe you hire a former escrow agent. So I think that there’s going to be people out there looking for work, and that would be phenomenal.

Steven Jack Butala:
The more we get into this downturn real estate environment, the more you’re in the driver’s seat as an investor. You can control acquisition prices way more than you could in the past. You can control your vendors. You can pick and choose which title company is going to be the cheapest and the fastest and how they handle you on their phone. And you can also pick the best real estate agent because they don’t have a lot of work falling into their laps, if any. And contractors too, if you’re into that. People that go take pictures or drone shots or clear land if you’re into that kind of thing, so you have a lot of control. The potential downside is that there’s not a lot of demand on the sell side. So when you go to sell the property, you probably won’t have people clamoring to buy it the way that you should. But that’s very solvable in my opinion-

Jill K DeWit:
Make account.

Steven Jack Butala:
… by finding the people, which is not hard to do in any real market. Finding the people that are going to have a hardcore serious interest in the land that you own. And here’s a hint, it’s not a hint, here’s the answer. They already lived there. They already own real estate in that local little area, it just has to be priced right.

Jill K DeWit:
Maybe, maybe. I still think there’s movement. I still think there’s people moving around. I just think it has to be priced well.

Steven Jack Butala:
Yeah, it has to be priced right.

Jill K DeWit:
That’s the bottom line. It doesn’t matter whether they’re a mile away or a hundred miles away. You know what? You just buy great land and price it great. That’s going to sell it.

Steven Jack Butala:
Yeah. And [inaudible 00:10:26] goes out of style.

Jill K DeWit:
It does. And then having a good agent that can get the word out, and that’s another show. Happy you could join us today. Five days a week, you can find us here on the Land Academy Show.

Steven Jack Butala:
Tomorrow is Jack Thursday, and I’m going to talk about trial running your taxes before December. You are not alone in your real estate ambition.

Jill K DeWit:
That comes up a lot. How do I plan? How do I plan?

Steven Jack Butala:
You should see it in Discord.

Jill K DeWit:
I bet.

Steven Jack Butala:
We have an accounting section in Discord now and it’s packed full of, “My accountant doesn’t understand me.”

Jill K DeWit:
Oh.

Steven Jack Butala:
I’ll talk about that tomorrow.

Jill K DeWit:
Okay. Thank you for tuning in. By the way, we would love to connect with you on Clubhouse. Join Jack and I every first and third Thursday at 12:00 Pacific time in the Land Investing Club. We have a lot of fun there 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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