Tools Only Product Explained (LA 890)
Tools Only Product Explained (LA 890)
Transcript:
Steven Butala: Steven and Jill here.
Jill DeWit: Hello.
Steven Butala: Welcome to the Land Academy Show, entertaining land investment talk. I’m Steven Jack Butala.
Jill DeWit: I’m Jill DeWit broadcasting from sunny Southern California.
Steven Butala: Today, Jill and I talk about the tools only product that we’re planning on releasing-
Jill DeWit: Exactly.
Steven Butala: … soon.
Jill DeWit: I’ve secretly had one out there. People don’t even really know about it very much, but if you were just needing RealQuest Pro, it’s out there. It’s been there and it’s cheap. I don’t know if I’m going to keep it like that, but right now it’s a hundred bucks a month. If you go to OwnersData.com, I never talk about it, but we started with the tools only product a while ago and then we paused a little bit, but there’s a few things out there that you can get like that one.
Steven Butala: There’s a whole group of people who are very experienced land buyers. We’re going to get into this in the show, but there’s a lot of people that do this that I never knew about. They do one or two or three or five deals a year, and they’re very happy doing it on the side and they’re successful at it and they just need … Jill and I have negotiated incredible deals with data providers of all these products. Negotiated like licensing deals with these people. We’re licensed providers.
Jill DeWit: These are products we’ve created.
Steven Butala: We can pass on massive savings versus you’re just going in there and getting it yourself. There’s a lot of people that just need access to those tools.
Jill DeWit: Don’t forget, like I said, the ones that we created that didn’t exist-
Steven Butala: Yeah, yeah, like the Parcel Fact.
Jill DeWit: … like Parcel Fact and DeedPerfect. We have many members that are … Not members, but many people in our world that are ala carte doing different things. They might have Owner’s Data. The might do some deeds through DeedPerfect. They might be in our online community getting some information. They’re using Offers2Owners. All we’re going to do is make it even easier and better for them.
Steven Butala: They don’t need to customize servers that we typically provide for a new investor. We’ll get into it in a minute here. Before we do get into it, let’s take a question posted by one of our members on the LandInvestors.com online community. It’s free.
Jill DeWit: Victor asks, “Does anyone have an experience in selling land notes? I’m considering selling some land notes or partial notes to free up some cash for new deals. Most of my notes are around $8,000 with $150 payments. What is standard to ask from a note buyer? Any advice or past experience would be great. Thanks.” You want to start this? You just had a discussion with this. I think it was one of our live events. Didn’t you guys really talk about this? I can’t remember where it was.
Steven Butala: I have a lot of personal experience with selling land notes.
Jill DeWit: Good.
Steven Butala: Here’s how it goes. The notes have to be seasoned, meaning they have to be … It’s best if they’re performing notes for more than six months, so that $150 a month has been getting paid and it looks like it’s going to get paid in its entirety, number one. Number two, what you’re really asking is what’s the discount? Face rate is $8,000. What can I expect to sell this note for? Can I expect to sell it on a 50% discount, which will be 4,000? A lot of that depends on whether or not that land’s any good. This is why Jill and I teach this constantly. You want to buy it as cheap as you can and then you want to sell it at wholesale prices, not retail.
At retail prices, hopefully you don’t know this, but if you buy a house for full price under the MLS and you get a regular mortgage like everybody, it’s like buying a car from a dealer. It’s hard to ever get back to an equity position. Assuming that you did all the Land Academy stuff that we teach and you bought a property for let’s say 4,000 bucks, you sold it for 8,000 on terms and it’s really worth 20,000, you’re going to do great. You’re discount rate on this deal might be zero because the property’s actually worth $20,000.
Jill DeWit: Good point.
Steven Butala: Will it be zero ever? No. There’s always a discount rate because there are some risk that the person won’t pay.
Jill DeWit: Right.
Steven Butala: Where are you going with this is a very sophisticated way of buying land, selling it on terms, seasoning it a little bit, and then selling the notes. It’s a great business model. I’m glad you asked on Land Investors because we have a lot of people in our group that are doing it.
Jill DeWit: What’s funny, I find there’s a lot of people that started down that path and started going for the monthly payments kind of thing and then they’re like, this person is like, “Oh, shoot. Now I’m out of cash. It’s taken too long to build up the cash. Maybe I should do a little more cash transactions and then less terms transactions.” That’s kind of where we are and that’s why we stopped doing terms transactions because I can build up my cash so much faster with the buy it, double it, move on.
Steven Butala: Here’s the kind of notes that Jill and I get from people constantly. I start just exactly what Jill said, “Boy, you guys are really right about this cash only thing. The terms thing is …” This is an email I got recently. There’s nothing passive about selling property.
Jill DeWit: That’s so true.
Steven Butala: So true.
Jill DeWit: Good point. That’s a very good point.
Steven Butala: Did you see that email?
Jill DeWit: No, I didn’t, but you’re 100% right. If you think you’re going to sit back and do nothing and not have to babysit these people or gosh, chase them after they’d missed a payment or something, you are wrong, or they might just disappear. It happens.
Steven Butala: I mean one out of 10, people might just pay and not require-
Jill DeWit: That’s a probably a good number.
Steven Butala: … any discussions or maintenance at all, but your extension rate is going to be close to 50%. Five of those people you’re going to have to repost it. Bear in mind …
Jill DeWit: That’s your business model.
Steven Butala: Whatever job you have, you’re working way harder at that job than you would at terms sales for yourself.
Jill DeWit: True.
Steven Butala: But cash sales, buy it for four, sell it for eight, now you got 8,000 and you buy two more and sell them for 16, 32, 64,000, it’s not hard to accumulate hundreds and hundreds of thousands of dollars pretty quickly just selling reasonably good pieces of property on the internet without having to go through all this stuff.
Jill DeWit: I just like too that … I think people see the terms sales as, “Well, I can sell it for 20 because it’s on payments and they’ll pay them.”
Steven Butala: Big numbers.
Jill DeWit: You know, I don’t want my buyers having that feeling in their stomach like, “Yeah, I overpaid, but it was the only I could get that car or get that land.” People do that. I’m like yeah, I know with the payments. Like a house. Come on. We all know how a mortgage works. We all know that a $150,000 house is a $300,000 house when you pay it off. I don’t like that.
Steven Butala: Or way worst actually.
Jill DeWit: Exactly.
Steven Butala: It’s like millions, millions of dollars.
Jill DeWit: I don’t like that. I like that like you said, buy it for four, sell it for eight. They’re like yay because I know they could … Which has happened to us often. That’s how Land Academy started. Our buyers would go around because we were doing it wholesale mark it up even more and sell at retail. That’s the whole thing I always started teaching all this. I feel much better about that because then everybody along the way feels like they won and they did.
Steven Butala: I was just going to say that. I mean there’s a bunch of things that you and I see differently. At the core of it, you and I have always never wavered from that.
Jill DeWit: It’s true.
Steven Butala: I want everyone to win in the transaction that I’m involved in. I want the seller to win, the buyer to win, and I want to make a little bit of money too.
Jill DeWit: You know what’s great? It makes my life so easy because no one’s mad at me. No one comes back and says, “I overpaid or this, this and this.” If anything, they’re going, “I can’t believe they sold it to me for like that,” kind of thing. I’m like, “You know what? I wish you well.”
Steven Butala: That’s why Land Academy started because everybody was constantly asking us, “How do you guys buy this so cheap and sell it so cheap? It’s really worth a lot more.” That’s how I would do a deal if I were you.
Jill DeWit: Here we are. Exactly.
Steven Butala: Here’s my point, selling a note is no different. You want the guy to win. Note buyers and that whole note business is very sophisticated. It’s a financial instrument backed by real estate. It’s cool. I like it.
Jill DeWit: You’re cool.
Steven Butala: Today’s topic, the tools only product explained. This is the meat of the show. Jill, give us the background of where this really started. Like all the way back to Rogue Pro.
Jill DeWit: Yeah. I guess it was back when we first just started doing the … We started with the RealQuest Pro. We launched in 2015, summer 2015, not knowing how this would go. It was just the Land Academy education. We just put it together and said, “Here you go.” Next thing that came along was an online community real quick.
Steven Butala: A week later, somebody said, “Well.”
Jill DeWit: It was Claire. It was Claire and I talking.
Steven Butala: A week later somebody said, Claire said …
Jill DeWit: I need to communicate with you.
Steven Butala: I have questions.
Jill DeWit: Exactly. I turned to Steven. I said, “We got to come up with something. What can we do that we could all connect a little bit and help them a little bit when they have these little questions?” He’s like, “Well, let’s just make an online community.” We knew about BiggerPockets back then, so we said, “We’ll make our own,” so we did and that blew up. That was Success Plant, which is now Land Investors.
Steven Butala: A week after that, someone said, “You talk about RealQuest, RealQuest, RealQuest. Can we just use your subscription? You guys have already been through it.”
Jill DeWit: We told them where to go get it and the bunch of us were all separately paying $250 a month, myself included, to have the access to RealQuest Pro. Then finally, we said, “Alright. We had enough people now. There’s a better cheaper way,” and we became licensed providers.
Steven Butala: That became the pattern. The pattern was well, that’s great. Thanks for teaching me all this stuff and thanks for getting a data subscription that’s awesome, but we need this, and we need this, and we need this, and how do you do a deed, and I need access to this. That’s how all these products came about. It wasn’t like we sat around and wanted to operate 22 websites.
Jill DeWit: You know what? This is so good we haven’t talked about this in a while. You’re right. Every single thing that we’ve done has been because of a request of our members and many members saying, “I need help with X.” Alright. We can do this. We made DeedPerfect. Even as clunky as it is, it’s a good site to get some quick deeds out. We still use it today.
Steven Butala: We used it yesterday on a deal.
Jill DeWit: Exactly.
Steven Butala: It works.
Jill DeWit: If you need to tweak the letter or use a different letter, whatever, you got the gist of it. It spits out a deed for you. You know what you’re doing. Now, the mapping. My biggest one is Parcel Fact. That is for me been the game changer with these tools.
Steven Butala: I use Parcel Fact like I use Google.
Jill DeWit: Yeah.
Steven Butala: I’m in there all day everyday in my own website solving my problems. I mean that’s amazing.
Jill DeWit: Yup. We have a $5 a day thing going on. It’s five bucks a day or $100 a month. You don’t have to think about it. A lot of people are using it just ala carte. Here’s what we’re doing. Because of the need, we’re seeing all these separate little ala carte … I just had someone the other day checkout $98 for a deed and all these little things. We’re going to put together kind of a bundle if you will. It’s not for the regular members. This is for people that that’s all they need. They’re seasoned investors. They really don’t need to talk to us. They don’t need any support. They don’t want to be on our calls. They’re way beyond that. It’s just a cheaper way for them to get access.
Steven Butala: It’s a cheaper way to get them to have access to the licensed products that we have. That’s it. They don’t need any customer service.
Jill DeWit: Correct.
Steven Butala: They don’t need any education.
Jill DeWit: Right.
Steven Butala: It’s certainly for people who … They’re already pros.
Jill DeWit: Exactly.
Steven Butala: It’s just way easier to get access to RealQuest and some of the other products that we have-
Jill DeWit: Right.
Steven Butala: … this way.
Jill DeWit: I will say too, this is not going to be for new investors. That’s not who this is for because I don’t want … A couple things. Number one, it’s not going to include everything in the toolbox if you will. It’s going to be a little bit different. As our regular community, because I always take care of you guys first, this is our people, they will have the most of everything. If you’re in Land Academy, you always get the best of all.
Steven Butala: Here’s why, here’s why, if you learn how to buy and sell land through the Land Academy methodology, you’re learning the right way. This has been two years now and people are just constantly sending us gift baskets and telling us, “Thanks. This really is the right way to do this.”
Jill DeWit: Exactly.
Steven Butala: Even people that came to us pretty seasoned from other people’s groups are saying, “You know what? There is a lot of holes in this other way to do this over here, but you guys really filled the holes and provided the tools.” There’s no replacement for the actual education, and this goes for House Academy that we’re going to launch here soon too.
Jill DeWit: Well, I even noticed too that other people in the real estate investment world are getting … I’m starting to see people comment on social media and things like, “Yeah. Driving for dollars is stupid.” I’m like hello. We’ve been saying that for how long?
Steven Butala: The whole time.
Jill DeWit: Right? That’s just one example of the right way and the not right way. Some people still think that’s the way to go. It’s not the way to go.
Steven Butala: Or buying back tax property is the only way to do this. Really a bad way actually.
Jill DeWit: That’s a hard way. That’s a problem way. This is not for new investors. This is just something for a whole different group. What I expect actually, here’s what I expect to happen because this has happened, there are so many really experienced investors that have stumbled across us and they have got out program and said, “Oh my gosh. It helped my business.” I mean that’s it. Lots of people that were already investing, doing it just fine slowly, but this made it so much better.
Steven Butala: What this is not is a cheap way to get involved in the Land Academy group and utilize all the stuff that we’ve created and avoid paying that for the education. That’s the real conversation Jill and I had right before this episode.
Jill DeWit: It’s true.
Steven Butala: That’s the message we want to convey and I don’t know how to do it any better than how I just did it.
Jill DeWit: I think you did it perfectly. You did great.
Steven Butala: Well, you’ve done it again. You spent another 15 minutes or so listening to the Land Academy Show. Join us next time where we talk about there’s just no time like the present to do whatever you’re going to do in 2019.
Jill DeWit: Love it. We answer your questions. Post it on our online community LandInvestors.com. It’s free.
Steven Butala: You are not alone in your real estate ambition. That went a lot better than I thought.
Jill DeWit: Yeah.
Steven Butala: This product, while we have the bones of it, Jill and I, we just … All the details aren’t worked out.
Jill DeWit: Exactly.
Steven Butala: People need to know what we’re working on.
Jill DeWit: Totally. I’m glad that we brought that up and thank you. Wherever you’re watching or listening, please rate us there.
Both: We are Steve and Jill.
Steven Butala: Information-
Jill DeWit: And inspiration.
Steven Butala: … to buy undervalued property.
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