Transcript:

Steven Jack Butala:
Jack and Jill here.

Jill K DeWit:
Hi.

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 there’s way more investment money available than good deals.

Jill K DeWit:
It’s funny, at least in our world, and I don’t know if it’s us, if it’s the people we hang out with, or what, because I’m hearing other people need to do these big funding money raises. Does this make sense?

Steven Jack Butala:
Keep going with this, because this is the root of… Just keep, I love where this thought train is going.

Jill K DeWit:
Okay. All I hear is people like, “What do you mean you have money? Everybody else is going to do these big corporate capital funding raise movements.” And it’s sparking all these new websites and new ways to do that and put accredited and non-accredited investors together to pool to get together a couple million dollars. We were on a call today. Well, we want to save it for the show? I’ll just finish this little thing. We were on a call today with an attorney and he about fell apart when he said, “Well, do you guys have any trouble coming up with the money?” We’re like, “Oh gosh no, the money’s the easy part.” And he looked at us kind of funny. So I’m like, “Is it really that hard?”

Steven Jack Butala:
Later in the week I’m going to talk about this in great detail on Jack Thursday, and what Jill’s saying is correct. But just keep this in mind, and this is what we founded. I founded Land Academy and my whole entire land investing career was built on fee-less transactions. And I don’t mean stock market fee-less where you save $0.13. I mean like, “Let’s remove all the fees out of these deals.” And when people raise capital, there’s huge, huge profit to be made from just raising capital. It may never get placed and that’s the issue.
Before we get into it, let’s take a question posted by one of our members on the land investors.com online community. It’s free.

Jill K DeWit:
Joseph asked… I saw this in Discord, this is cool. I have my first potential $1 million acquisition. I’m working on getting under contract. Up until now, I haven’t needed a due diligence phase and wording to cover me on my acquisitions because I haven’t been that big. That being said, does anyone have an all-encompassing purchase agreement/contract they would be willing to share that covers the due diligence phase, earnest money release statement, inspection periods, special situations, special stipulations, et cetera, et cetera? Or any direction on where to pay for one that someone has used personally is appreciated.

Steven Jack Butala:
So there’s a bunch of things going on in this question. First of all, congratulations for buying for a million. I hope you’re selling for three. That’s amazing. Are there any standard templated agreements for this kind of thing? No. In fact, in commercial real estate, which is where I cut my teeth on a million years ago, there are no template agreements. What we did was when a buyer of commercial real estate or potential buyer wanted to buy something, we went back and looked at purchase agreements from deals that we’ve done in the past as a office. This was before computers. And we pull the paper out of the file and kind of…

Jill K DeWit:
Copy the wording?

Steven Jack Butala:
Yeah, borrow from it, and what’s appropriate, what’s not, and use it that way. That would be the best. You do the right thing by putting this in discord and I hope somebody pipes in and provides some type of agreement. Otherwise, I would really recommend you get a good, well recommended real estate lawyer to put together an agreement. There’s no way that a title agent’s going to do it. Even a real good commercial title, there’s lots of commercial specific title agents out there, so they might have a real good solid recommendation for you on getting a lawyer.

Jill K DeWit:
That’d be easy. I would think that the right lawyer can, here you go, pay me a couple hundred bucks, add this paragraph to your thing, and then that’s all you have to do, because it covers it.

Steven Jack Butala:
Yeah, I think it’s a lot more than that.

Jill K DeWit:
Oh, okay. Or I’m looking back, have I had this situation when I’m the seller? Sure, I’ve had that, and I read it, and I understand it. So here’s the thing though, usually in those situations there’s a broker involved. And do you want to get a broker involved in this? Heck no, because now you’re going to give away that much percentage. You don’t need to do that.

Steven Jack Butala:
That was my final point. Somebody else in Discord commented to use one of those state specific real estate contracts as a gauge. Please don’t do that.

Jill K DeWit:
That’s not us.

Steven Jack Butala:
It’s not for us. It’s not for anybody really. It’s just for-

Jill K DeWit:
Could you get in trouble?

Steven Jack Butala:
No, no.

Jill K DeWit:
Okay. All right.

Steven Jack Butala:
It’s just for real estate agents and none of us are real estate agents. So those are required documents for real estate agents and brokers to use. And so there’s a lot of stuff in there that-

Jill K DeWit:
We don’t need.

Steven Jack Butala:
Liability protection. And Jill’s talking about adding a paragraph, and I love where she’s going there. Might take more than the paragraph, but it’s not going to take an inch thick of paper.

Jill K DeWit:
Right. Maybe my one page purchase agreement is now a two page purchase agreement. Fine.

Steven Jack Butala:
Or four even, that’s fine. Sure.

Jill K DeWit:
Exactly. I don’t need 40.

Steven Jack Butala:
Right.

Jill K DeWit:
Yeah, you’re right, because that opens up… Then it’s like, “Who are you?” Are you a broker? Are you an agent? Like, “No, no, I copied it.” Hold on a moment, you shouldn’t be using these forms. That’s a good point. Those really aren’t for that, for us.

Steven Jack Butala:
And a million dollar deal, just get a lawyer. You might end up paying them five or $10,000 and if they have a lot of experience, they will help you from getting in trouble.

Jill K DeWit:
Well, hold on a moment. Let’s back this up one more, finish this thought then. If I’m going to get an attorney involved, I bet I could close this deal for a couple thousand dollars and have the attorney close the whole deal for me.

Steven Jack Butala:
I agree.

Jill K DeWit:
Faster and cheaper and he will do the verbiage that I want included.

Steven Jack Butala:
The point is this, there’s a due diligence period on a million dollar acquisition here. You don’t want it to go that fast. You want to find out what’s going on with the property and make sure that you can turn the yield that you want. So faster is not necessarily better. But spending a lot of useless time on paperwork and title policies, you want to avoid that. But you need to go through the typical term for a solid million, multimillion dollar, million dollar deal where there’s due diligence required is 60 days, and I would take that time and use it.

Jill K DeWit:
Yeah.

Steven Jack Butala:
Today’s topic, there’s way more investment money out there than good deals. This is the meat of the show.

Jill K DeWit:
I’m curious what he’s going to do with that property too. That makes a whole big difference. It’s one thing for a million dollar rainfall lot, which they exist, versus a million dollars where someone’s going to put a Circle K on it kind of thing.

Steven Jack Butala:
So not surprisingly, this is not the first time we’ve talked about this topic.

Jill K DeWit:
Money and deals?

Steven Jack Butala:
And it will not be the last time.

Jill K DeWit:
Yeah.

Steven Jack Butala:
There’s so much investment capital out there, and has been for as long as I can remember. And all everybody does that’s got all the capital is sit around and complain about why there’s just no place to put it. It’s one of those things that’s never going to change. And so I don’t know. With the internet, the internet changed everything, certainly changed real estate. You’d think there’d be a portal, which is what we’re trying to do here with Land Academy where there’s a basic type of portal where you say, “That’s what would you do this deal is. Here’s the deal, I need the money.”

Jill K DeWit:
And land funding.

Steven Jack Butala:
Jacob, and that’s what this is on Discord. Would you do the deal? The, “Would you do this deal?” portion of Discord ends up being a portal for people who have a bunch of money and people who have a great deal, and getting them together to make something happen.

Jill K DeWit:
That’s what we do. That’s Land Tank and landfunding.com too. We have a lot of different ways to do this.
The point though is there’s just so much money out there, like you were saying. I think of that every time I get spammy emails. I’m sure you get them too. People wanting to lend me money. Isn’t that amazing? Does this tie into what you’re talking about, because that’s what I think?

Steven Jack Butala:
Sure, Jill.

Jill K DeWit:
I’m like, “There’s all kinds of people out there that, throwing money at you,” which I don’t like that too, by the way. Because there’s money like we like to do it, which is secured by the asset versus someone just lending me money. I don’t know, it kind of feels like a loan shark coming at me, because I’m going to pay a percentage, I’m going to pay this, I’m going to pay that. It’s a whole different ballgame.

Steven Jack Butala:
Yep.

Jill K DeWit:
I just took your, I stole your train of thought. Please continue. I was trying to share my thoughts on it.

Steven Jack Butala:
No, I said what I was going to say.

Jill K DeWit:
Okay. Which is? Will you please recap for me?

Steven Jack Butala:
It would be great if there was a portal in which we did create, ultimately create, not to the scale that I think there’s billions and billions and probably trillions of dollars of investible capital out there for deals that have the perception or are truly lower in risk and higher in return. And that’s actually what I think most of these land deals that we do are. What was lacking was a place for everybody to get together to do them. So it’s on discord, landfunding.com in a smaller, much, much smaller way helps that happen, and Land Tank. And it was our attempt to try to make it an auction scenario, which I don’t think is the best way to handle that either. So after the third attempt, my point is, I think we got it. Discord. The, “Would you do this deal?” section of Discord, I have yet to see a deal that has gone unfunded through that venue that we’ve created. You have to be a member to capture it, but.

Jill K DeWit:
And has to be a good deal, right? That’s what I would tell-

Steven Jack Butala:
Not necessarily quite honestly.

Jill K DeWit:
Oh really?

Steven Jack Butala:
Every deal gets done. Yeah.

Jill K DeWit:
Really? Well, you know what? Everybody has a different threshold. I guess that’s true too.

Steven Jack Butala:
Yeah, that’s what it is. So every investor’s got a different threshold.

Jill K DeWit:
That’s that’s a good point. Because some investors want to double their money and you can do that in land. Some investors are happy making 20% and some investors are probably happy making five or 10%. Because depending how fast they’re going to cash out and what’s going on and the money involved, that’s good for them.

Steven Jack Butala:
Exactly.

Jill K DeWit:
I agree. That’s true. So thank you. Happy to join us today. Five days a week you can find us here on the Land Academy Show.

Steven Jack Butala:
Tomorrow the episode on the Land Academy show is called How the blockchain or how blockchains in general, I guess are going to change real estate forever. You are not alone in your real estate ambition. All this talk about blockchains, and cryptocurrency, and NFTs, and all of it will give you a gauge in our opinion on where it is, and what’s going to happen with it, and all of that tomorrow.

Jill K DeWit:
Thank you for tuning in. Hey, by the way, if you think land investing like we do might be a good fit for you, get our free e-book and it’s just been updated. It’s the pre-2023 release of the Land Academy e-book, 27 pages long and it’s awesome. I know you spent a lot, a lot, a lot of time on updating that, so go to landacademy.com. Or if you have some questions directly, to send a note to my team via support@landacademy.com.
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.