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’s Jack Thursday, and I’m going to talk about how there’s only six ways to get rich.

Jill K DeWit:
This is going to be good. I’m.-

Steven Jack Butala:
Which way.

Jill K DeWit:
Really curious.

Steven Jack Butala:
Which way do you choose? Before.-

Jill K DeWit:
Awesome.

Steven Jack Butala:
We get into it, let’s take a question posted by one of our members on the landinvestors.com online community, it’s free. Don’t forget to subscribe on the Land Academy YouTube channel and comment on the shows you liked.

Jill K DeWit:
Matt wrote, “Hi all. I’m working on pricing zip code that varies greatly in prices. Section of area that I pulled in the zip code is close to a downtown, and the other half of the zip code is in a more rural area. How do you price an area like this? If I do it just by the zip code, the addresses close to the downtown area are under priced. And the addresses further out are overpriced.”

Steven Jack Butala:
Matt, this is brilliant. If you are in Land Academy and you’re doing the dishes right now, and listening to this. Or you’re driving in a car and thinking about something else, now’s the time to stop doing that. Now’s the time to really listen to this one point I have to make very briefly. If you’re not in Land Academy…

Jill K DeWit:
Or in a safe place that you could pull over.

Steven Jack Butala:
If you’re not in Land Academy this is why there are many people in Land Academy who are successful, it’s for stuff like this. What he’s describing is, picture a zip code. There’s a big city in the zip code, there’s maybe a couple of small towns. Maybe one small town in the zip code and all kinds of real estate surrounding it. Very different price. One zip code, different priced land all over the place. This is the norm. This is not an exception. It’s always like this. There might be a not so big city. There’s always going to be strangely priced scenarios in one zip code. This is why you cannot use a pricing tool that’s automatic. You cannot say to Concierge Data, let’s say, which is our company where we do your mailers, “Thanks for doing all this and it looks great. We’re going to price it at 20% of retail and let me know when it goes out.” Huge, sometimes fatal error. There are multiple places in zip codes that have different pricing.
How do you do that? How do you deal with it? You get your mailer back, or you create the mail yourself, or you get it back from Concierge Data. And you test for reason over and over again and you sort for, just like I teach in.-

Jill K DeWit:
Land Academy.

Steven Jack Butala:
Land Academy, you sort for by APN and you look at test for reason, all of those prices to see. Not all of them, but if there’s.-

Jill K DeWit:
Right.

Steven Jack Butala:
If you’ve got a 2,000 unit mailer size and it’s one zip code, then test for every APN scenario, test 20 of them. You’re going to decide ultimately that 20% is appropriate for this area in the zip code. 18% is appropriate for this area, 32%’s appropriate for this area. These are all really large parcels that are way out of town, maybe 8%’s appropriate for that. Are those numbers hard numbers? “Oh, Jack said 8% if it’s out of town.” No, that’s not what I mean. I mean, it has to make sense so that if the property comes back and it’s signed, you want to the do.-

Jill K DeWit:
Would you buy it?

Steven Jack Butala:
The deal. It’s not overpriced or under priced.

Jill K DeWit:
Awesome.

Steven Jack Butala:
Thank you for asking that question.

Jill K DeWit:
That’s a good question. Today’s topic?

Steven Jack Butala:
Today’s topic’s Jack’s Thursday, there’s only six ways to get rich. This is why you’re listening.

Jill K DeWit:
Okay. I’m just going to be, I’m a little bit of a guest here, too. I can’t wait to hear the list. I’m not looking.

Steven Jack Butala:
This is an article that I read that stuck with me a while ago from a capital group, a private equity group, that wrote this for some reason. And I agree with it. Number one, “Marry money,” and that doesn’t mean.-

Jill K DeWit:
Well, I was, Jill.-

Steven Jack Butala:
That doesn’t mean.

Jill K DeWit:
Jill is zero for one.

Steven Jack Butala:
You know what? We don’t need to put gender on this.

Jill K DeWit:
Oh, I’m going to keep track here. I want to see which.-

Steven Jack Butala:
Zero for one.

Jill K DeWit:
Zero for one. By [inaudible 00:04:32] I’ll have zero there on that one.

Steven Jack Butala:
That doesn’t mean, don’t let your mind wander on this. This could be some great guy who marries an heiress.-

Jill K DeWit:
Well.

Steven Jack Butala:
Maybe he’s the third guy who marries Jackie Onassis.

Jill K DeWit:
Well, thank you for saying that. Thank you for not always assuming it’s a woman. Which is really funny because I just read an article a week ago about the Forbes top 10 wealthiest women. I don’t even think it was a Forbes article, I don’t remember what it was. But it was in the world and every woman had over $10 billion. The top, over half of them, they were widowed or divorced, and that’s how they got their wealth, [inaudible 00:05:14] that.

Steven Jack Butala:
Number two.-

Jill K DeWit:
It’s interesting.

Steven Jack Butala:
Inherit money.

Jill K DeWit:
Well, now I’m zero for two. None of that coming my way.-

Steven Jack Butala:
The top six ways to get rich.

Jill K DeWit:
I’m seriously not looking at the list. I hope there’s one of them that I got.

Steven Jack Butala:
Number three.-

Jill K DeWit:
I’m pretty sure there’s one.

Steven Jack Butala:
Get exceedingly lucky, which is a pretty way of saying win the lottery.

Jill K DeWit:
Zero for three.

Steven Jack Butala:
Or go to the casino and realize your dreams.

Jill K DeWit:
I’m zero for three. Keep going.-

Steven Jack Butala:
Number four, exploit a unique talent. That gets you thinking. Like…

Jill K DeWit:
Selling.

Steven Jack Butala:
Selling is a good one. Or like Houdini.

Jill K DeWit:
Ding ding.

Steven Jack Butala:
Amazing talent.

Jill K DeWit:
I wanted to see here.

Steven Jack Butala:
He got rich on it.

Jill K DeWit:
Oh, okay. That’s a maybe for me. I don’t know that’s a question mark.

Steven Jack Butala:
It’s indefinitely involved for all of us.

Jill K DeWit:
Okay, got it.

Steven Jack Butala:
You have to have some type of talent. Maybe your talent is recruiting amazing people to surround yourself with so you get wealthy.

Jill K DeWit:
I like that, the Houdini one.

Steven Jack Butala:
We’re getting closer to reality here.-

Jill K DeWit:
Okay, got it.

Steven Jack Butala:
For most of us. Number five, either own, or lead, a successful business.

Jill K DeWit:
Ding, ding, ding. I got one solid one. I was wondering where I was going to be on this list. All right.

Steven Jack Butala:
That’s for everybody here. This is a very likely impossible scenario.

Jill K DeWit:
I’m 1.5 out of five because I only gave myself a half a point on number four.

Steven Jack Butala:
I think this is the last one, right?

Jill K DeWit:
Okay. What’s number six?

Steven Jack Butala:
Number six is, spend less than you make and invest it wisely over a long period of time.

Jill K DeWit:
Oh, we kind of do that.

Steven Jack Butala:
I hate this idea.-

Jill K DeWit:
I didn’t start out that way, but.-

Steven Jack Butala:
I hate it.

Jill K DeWit:
Wait, I do part of it. I get a half point. Spend less than you make, that’s for sure, we do that.

Steven Jack Butala:
This is the whole premise behind the millionaire next door. There’s two people who, let’s say back in the day, it doesn’t apply if you’re 22 years old now, but back in the day, two people buy a house. My parents bought a house for $13,000, literally. Both of them went to college. They worked jobs that paid for that college education and everybody’s nodding their head like Jill is now. Whoever’s listening to this is, they’re nodding their heads saying, “Yep, they did that.” And nope, I’m not doing that. That’s why you’re.-

Jill K DeWit:
Exactly.

Steven Jack Butala:
Listening to the show.

Jill K DeWit:
Exactly.

Steven Jack Butala:
At the end, especially if you live in Southern California where there’s an amazing housing value increases, you buy a cheap house, you would live there for 30, 40, 50 years, raise a couple of kids. Put them through school, work the same jobs, or different jobs, in an industry. When you’re all done with it, you maybe put some money in the stock market or whatever you decided to do. Bought an extra house and rented it out. It’s a very typical scenario. You end up going into retirement age with a few million dollars. And a big hole in your heart for what would’ve been, in my case.

Jill K DeWit:
A hole in your heart?

Steven Jack Butala:
Like, “What did we do here, Edith? What did we do? How did we end up looking like this? My whole life went by.”

Jill K DeWit:
Edith and Archie were rich?

Steven Jack Butala:
No, just, Edith.-

Jill K DeWit:
Oh, they weren’t rich. They didn’t know.

Steven Jack Butala:
I don’t know, the woman’s name’s Edith.

Jill K DeWit:
Oh [inaudible 00:08:46].

Steven Jack Butala:
Ethel, I don’t know.

Jill K DeWit:
You say that name that’s right where I go. I just dated myself, again, this week.-

Steven Jack Butala:
This is not appropriate for most of our personality types. You know what? I’m not sure you can do that anymore. I don’t think.-

Jill K DeWit:
I understand this.

Steven Jack Butala:
Going to college.-

Jill K DeWit:
You know what.-

Steven Jack Butala:
Costs $100,000 now. And so you’ve got student loans on that. Buying a house, houses are overvalued as compared to income. It was the variance of between income and housing prices back then. You could pull that kind of stuff off, and you still can if you’re really smart about it. But being smart about making decisions, what we’re talking about, what we talk about on this show all the time, is not conducive to this number six. Number six is, you kind of let life happen to you. “I wasn’t supposed to go to college, I went.” “I was supposed to get a job over there and I got one.”

Jill K DeWit:
You know what’s sad about number six?-

Steven Jack Butala:
It’s sad.

Jill K DeWit:
Well, you missed out on a lot. I’m really not even taking a half point for six because Lord knows I didn’t suffer in life.

Steven Jack Butala:
Suffer enough.

Jill K DeWit:
No, I know. Well, there were times I did suffer in life, that’s true. For 17 years, which we talked about the other day. I’m going, “Thank goodness we got number five.”-

Steven Jack Butala:
Number five it is.-

Jill K DeWit:
You know what? That’s Land Academy, that’s our community. That’s the thing about what we do is it’s your business. Land Academy is us showing you everything that we do, and everything that we did, to start and run and grow our business. So you can start and run and grow your own business, and be a successful entrepreneur investor like we are. That’s it.

Steven Jack Butala:
The point here is do something because.-

Jill K DeWit:
I’ll just say [Inaudible 00:10:42].

Steven Jack Butala:
The chances are you’re not going to marry money, inherit money, and you probably don’t have any unique talents like me. You’re not going to get exceedingly lucky. I’m not going to sit around and do nothing and just go to a job for 25, 35 years and thank my lucky stars.-

Jill K DeWit:
Do you know what?

Steven Jack Butala:
I’m just not going to do that.

Jill K DeWit:
I’m going to argue that there could be a seventh. I’m going to leave it on this for me. I think there could be a seven. You know what seven is? Work your blank off until you get there. That’s not in there.

Steven Jack Butala:
I mean, but give me an example of that because I don’t see real hard work paying off.

Jill K DeWit:
Go getters?

Steven Jack Butala:
Unless you’re doing it for.-

Jill K DeWit:
You don’t think so?

Steven Jack Butala:
Yourself.

Jill K DeWit:
That’s what I mean. Well, then you’re doing it from your own business.

Steven Jack Butala:
I don’t know, if you’re going to be an amazing go getter.-

Jill K DeWit:
That’s true.

Steven Jack Butala:
At General Motors.-

Jill K DeWit:
I guess that goes with number five. Working really hard and pounding the pavement, and all that stuff ties into owning and leading your own successful business. That does make sense. 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 is Jill Friday. She’s going to talk about how to motivate title agents through the holidays. You are not alone in your real estate ambition.

Jill K DeWit:
It’s that time of year. We all want to take a vacation and guess what? Deals need to get done. That’s what we’re going to talk about tomorrow. I have a lot of good tips and things for you to make sure they get done. Or maybe they don’t want to get done, we’ll talk about that, too. Maybe you want to drag your feet and have it happen in January. Might be doing that, too. Thanks for tuning in. As we mentioned before, we hope you find our content valuable and we do appreciate your support. If you haven’t already, please check out our YouTube channel and hit the subscribe button. Don’t forget if, depending on when you’re listening to this, I either am about to be live or I was live Thursday, December 15th, five o’clock Pacific time. Go to YouTube, go to Facebook and check it out. We are Jack and Jill.-

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

Jill K DeWit:
And inspiration.

Steven Jack Butala:
To my undervalued property.