We are Land Deal Junkies (CFFL 0195)
We are Land Deal Junkies
Jack Butala: We are Land Deal Junkies. Every Single month we give away a property for free. It’s super simple to qualify. Two simple steps. Leave us your feedback for this podcast on iTunes and number two, get the free ebook at landacademy.com, you don’t even have to read it. Thanks for listening.
Jack Butala:
Jack Butala for Land Academy. Welcome to our Cash Flow From Land Show. We show you how to buy property for half of what it’s worth and resell it the very next day. Great information and instruction from Jack, that’s me.
Jill DeWit:
And inspiration from Jill, that’s me.
Jack Butala:
In this episode, Jill and I talk about maybe we’re deal junkies.
Jill DeWit:
Maybe.
Jack Butala:
Land deal junkies. Great show. Today before we start, here’s some funny stuff that happened to us recently. Hey, after gaining a little notoriety with this show, this show has done better than I ever ever imagined and it keeps going up. It’s amazing who comes out of the woodwork to say hey what’s this all about.
Jill DeWit:
Yeah.
Jack Butala:
My dad for example.
Jill DeWit:
I saw that.
Jack Butala:
Contacted me.
Jill DeWit:
That’s hilarious.
Jack Butala:
This is a, whatever, how many years into this, a lot of years. My dad decides to download, which he couldn’t do correctly by the way.
Jill DeWit:
Yeah.
Jack Butala:
No seriously. He emailed me this morning and said I can’t figure this out.
Jill DeWit:
Oh you’re kidding me.
Jack Butala:
I’m going to help him.
Jill DeWit:
That’s funny.
Jack Butala:
After all this time he decides to download the e-book and find out how to buy real estate.
Jill DeWit:
That’s hilarious.
Jack Butala:
No. It’s not just my dad too. My dad’s one- it’s funny. My dad’s like Korean War vet and he’s just older and he struggles a little bit with the computers. Although he’s not as bad. He loves Excel.
Jill DeWit:
He’s pretty good.
Jack Butala:
Total gearhead.
Jill DeWit:
He can …
Jack Butala:
People are contacting Jill and I to trade services for our education and stuff. It’s funny. It’s just-
Jill DeWit:
I thought you were talking about former employees because we’ve had them come out too. It’s kind of funny.
Jack Butala:
Yeah. Yeah.
Jill DeWit:
Like, wow, and former business partners by the way.
Jack Butala:
All that stuff. These people come out of the woodwork [crosstalk 00:01:39]
Jill DeWit:
That’s what’s really funny too. Former business partners and things. It’s good. People like hey.
Jack Butala:
It’s not like a fame thing, it’s just funny who finds you.
Jill DeWit:
Right. It really is.
Jack Butala:
My dad’s not- he’s very confused about this Jack/Steve thing too.
Jill DeWit:
Oh.
Jack Butala:
He’s like what? Anyway.
Jill DeWit:
Oh yeah. By the way.
Jack Butala:
This is a sentence I wrote to him in the email. I said I have a new found respect for all the women who have gotten married all over the world and had to change their name.
Jill DeWit:
Oh yeah.
Jack Butala:
Not change it, but just use a different one. In my case, it’s my middle name, but I just never used it before.
Jill DeWit:
Mm-hmm (affirmative)
Jack Butala:
Anyway. Let’s take a question posted by one of our members on successplant.com, our free online community.
Jill DeWit:
Okay. Roy says I have the Land Academy program, but I don’t see a contract for selling land on terms. Does anyone have a copy of it? It makes a difference. I’m selling land- if it makes a difference I’m selling land in Oregon.
Jack Butala:
Yeah. This question comes up a lot and I’m actually sure that there’s a contract in there, a terms contract, in the back of it. There’s just a ton of pictures and maps and all kinds of stuff back there. There is a copy of it.
Listen, this is the reason I chose this question over a lot of them. There are very different rules about selling property on terms state by state, sometimes even community by community and municipality specific. I give a suggestion in there. I answer this question a lot actually. Every week I answer it at least two times. Go out on the internet and go to Evergreen Note Servicing, type that into Google and there’s a lot of contracts that they have because they’re a note servicing company.
They have a lot of suggestion contracts. In fact it’s the one I based our stuff on a lot of years ago. It’s very changed since then but added and subtracted things, but that’s a great place to start. Ask them, give them a call. They have a whole sales team, they’ll talk to you all about the differences between Oregon, California, Georgia, wherever you are. It’s very important to understand that there’s different rules about how to sell property on terms.
Jill DeWit:
Mm-hmm (affirmative)
Jack Butala:
If you have a question or you want to be on the show, call 800-725-8816. Today’s topic, are we land deal junkies?
Jill DeWit:
We are land deal junkies.
Jack Butala:
This is the meat of the show.
Jill DeWit:
It’s fun, I think. Gee, who doesn’t love buying something, doing nothing to it, making it look better, throwing it back out there …
Jack Butala:
And literally-
Jill DeWit:
Making money.
Jack Butala:
Literally get high when we buy property for half price.
Jill DeWit:
Yeah. Exactly.
Jack Butala:
I can taste the adrenaline in my mouth. I’m addicted to it. I’m not joking around and I am sure that I probably show the same withdrawal symptoms. This topic came because I was communicating with this guy on Facebook. He’s like oh yeah yeah absolutely addicted to it.
Jill DeWit:
Mm-hmm (affirmative) You know what’s funny? I get more excited, I think you do too, on the buy than the sell. I’m like, [eh 00:04:52]. I knew how it was going to go.
Jack Butala:
Yeah. I know how the sale’s going to go.
Jill DeWit:
Exactly. I never think about that part.
Jack Butala:
Neither do I.
Jill DeWit:
It’s never a problem.
Jack Butala:
I don’t get excited about sales ever.
Jill DeWit:
Yeah. Whatever. I don’t really care. How much was it? Doesn’t matter. It’s when I actually land the deal and I’m incoming and I’m buying it for X price-
Jack Butala:
Me too Jill.
Jill DeWit:
That is the most exciting part of it. That’s true. I wonder, I’m kind of curious. I would like to do a survey on that. Who gets more excited about buying and who gets more excited about selling?
Jack Butala:
I’ll put it up.
Jill DeWit:
I would. I’m very curious to see how our community, how that is.
Jack Butala:
I bet it’s 50/50. I don’t know. You know what? I bet it’s got to be geared toward- newer people are going to get more excited about cash in the bank. I would.
Jill DeWit:
That’s what I think. Yeah.
Jack Butala:
As a new person.
Jill DeWit:
Seeing a deposit come in.
Jack Butala:
Yeah.
Jill DeWit:
That’s pretty exciting watching your account go up.
Jack Butala:
You know what’s exciting too? Really exciting is you do like five deals on terms and then you just kind of forget about it.
Jill DeWit:
You do.
Jack Butala:
Then next month they’re all popping in. They pop, in for us they pop in at different times. We do if the person signs a deal and does it on the 18th of the month, it pops in the 18th of the month. It spreads it all out. We actually ask our- that’s a good point- we ask our terms people based on how they get paid and stuff what’s the best time for it to come out.
Jill DeWit:
I’m very flexible with them. I am. I do try to make it really nice. They say I always get paid on the first so can I do it on the 5th or whatever? I’m like, sure that’s cool. I just set it up on that day so it automatically happens.
You know too, you have to, speaking of a junkie, you get kind of jaded a little bit. You’re like yeah whatever. You know what I mean? Now you’re looking for a new high. When you have enough terms things coming in. It’s fun in the beginning, right, then you’re like yeah I’m over it. Now you’re looking for a new high.
Jack Butala:
I know the money’s coming in and I just don’t get high about when that money comes in.
Jill DeWit:
Right.
Jack Butala:
I know it’s coming in.
Jill DeWit:
That’s what I mean.
Jack Butala:
Every month, people drop off. It’s just a fact. They stop paying or they incommunicado and then you repost it and stuff. That’s all in a system. The real high for me is just … Man, it’s just seeing that, for me, it’s like looking in our database, in our acquisition database, seeing the stuff that gets input in there all day or every day and saying oh my gosh, that’s a stand up double right there.
Jill DeWit:
Exactly.
Jack Butala:
Then I get high about- then sometimes I pick up- I should never do this, but I pick up the phone and call the seller myself and wreck the deal.
Jill DeWit:
Yeah. That’s happened. No, no, no that’s too low. You should not sell for that. I know Jill has more money back there.
Jack Butala:
[crosstalk 00:07:22]
Jill DeWit:
I know Jill can cough up some more.
Jack Butala:
Literally did that once. I got-
Jill DeWit:
You did get in trouble.
Jack Butala:
That was not a good day for me.
Jill DeWit:
Oh my gosh. That was a long time ago. I remember that too. I had this all done, negotiated and for some reason he wanted to talk to you. I think it was a guy thing. Next thing I know the whole deal’s renegotiated for more money than I had all lined up. I’m like what did you just do.
Jack Butala:
Maybe two, maybe three times. Two or three times a year, Jill gets legitimately, really angry about something with me. I run for the hills.
Jill DeWit:
Thank you for saying legitimately.
Jack Butala:
It’s not a joke. You don’t want to be around- and she’s always right. When you get to that point it’s like, man I know that this is- I know I’m- she’s not a nag or anything. She doesn’t sweat the small stuff, but when she gets miffed. That was one of those times, and rightfully so. I changed a deal, like undermined her authority. It was not good.
Jill DeWit:
No.
Jack Butala:
Anyway.
Jill DeWit:
Not good.
Jack Butala:
This is the Technical Two. Two minutes of property investment advice from our 15 year, 15,000 deal experience. I like Technical Two more than ten.
Jill DeWit:
Thank you. I do too.
Jack Butala:
Don’t use all the tools in your tool box. All right. You got a tool box. Even ladies, you got a junk drawer somewhere full of tools and stuff. You don’t use all your tools on one thing. To hang a picture you don’t use all the tools, you use the ones you need and that’s it. It’s the same thing here. We make sure you have a ton of stuff at your disposal to use it when you need it, but you don’t need to use all of them on one deal.
I see a lot of people, and it’s associated with analysis paralysis. Didn’t you say you had a drum machine when you were a kid [crosstalk 00:09:04] or something like that?
Jill DeWit:
You know it’s so funny that’s exactly what I thought about, the same thing. Yes. Way back when I thought I was going to be in a band with my girlfriend, my roommate and I. We had all the cool Yamaha DX7 keyboards and we had all this stuff and then we got this drum box, this drum machine. We called it drummer in a box.
Anyway, it had all these cool sounds on there. The hand clapping, all the different things. It was so darn cool. What did we decide? We wrote this song and we had every last single- we wanted to put every last single sound in that one song and it sounded so dumb. We’re like what are we doing. We had to reel it back in. You can’t … You don’t use all of the noises and the things that you have at you. It’s too much. Yeah. It was really funny.
Jack Butala:
If you ever listened to really very talented and respected rock music and you listen to guitar solos and stuff. They’re always extremely simple. The capability of these guys is unbelievable as musicians, but they don’t show it off. They save it for their bass man, for a jam session that’s never going to get recorded. It’s important to just stick to the whole thing and get the deal done.
Jill DeWit:
Yeah.
Jack Butala:
The reason I said this is because I’ve been guilty of this of over using stuff and over selling and over everything. Over promising.
Jill DeWit:
Mm-hmm (affirmative) oh yeah. Oh yeah.
Jack Butala:
Hey if you have a-
Jill DeWit:
I hope our staff’s listening right now. That was kind of an apology. Take it. Take it quick.
Jack Butala:
You have a question or you want to be on the show, call 800-725-8816. Jill do you have some inspiration for us?
Jill DeWit:
Are you hung up, this ties to our Technical Two by the way, are you hung up thinking about step 37?
Jack Butala:
Jeez that’s perfect for this show.
Jill DeWit:
This comes up so often that I don’t want anyone to feel bad, I just want to make you aware of it. Don’t think about step 37 or 42 or 96 when you’re really on step 3. This ties into your don’t use all the tools. I watch and hear and talk to a lot of people that are like, what about this, but what about that, what if this happens, what if that happens? I’m like, then you know what we’ll deal with it if and when it happens.
What’s really funny is when I tell people, let me tell you this. Jack and I now, Jack more than me, who’s got 15 to 16,000 deals going on under our belt, experience, and this hasn’t come up yet. Pretty safe to say it probably won’t come up on your first deal. Again if it does, I’ll help you. We’ll help you.
Jack Butala:
My favorite one is, there’s two favorites. My first one is can you give me some advice on setting up an LLC?
Jill DeWit:
Right.
Jack Butala:
Brand new in the business.
Jill DeWit:
Yes.
Jack Butala:
My advice is this. Don’t do it. Forget it. Let’s get some stuff in the mail, do a few deals with your own personal name, and then we’ll talk about that.
Jill DeWit:
Yep.
Jack Butala:
That LLC thing is just- I don’t know who got-
Jill DeWit:
It is.
Jack Butala:
Somebody sent the message that stuck with people.
Jill DeWit:
Exactly. I thought that too.
Jack Butala:
Forget it. [crosstalk 00:12:21]
Jill DeWit:
I say, let’s get some money coming in first and then we’ll think about those other things.
Jack Butala:
Hey you know what? You might get through this and do a bunch of deals and say you know what I’m not interested in doing this at all. It’s not what I thought.
Jill DeWit:
That’s true.
Jack Butala:
Then you wasted all this time and money and all that.
Jill DeWit:
It’s true. Yeah you don’t need that. Yeah. That’s my thing. Don’t think too far ahead. Let’s get the basics down and get some money coming in and don’t worry about it. Sometimes I watch people that spend too much time worrying and agonizing about what could happen that they don’t even get one deal done and going and all that.
Jack Butala:
My number two is, how should I take title to this property and when I sell it how should I deliver title to the next person? I answer this 20 times a week. Quick claim deeds are okay, do some research though. Convey the property, this is my opinion, you talk to your attorney or whoever else, this is just my opinion.
Here’s a question I just answered this morning. The whole chain of title is a series of quick claim deeds, right back to when the county dated it in the seventies. Then it was quick claim deed after quick claim deed. I’m not going to buy this property because the guy wants to quick claim deed it to me. Is this hilarious to you or as funny as it is to me?
Jill DeWit:
That’s funny. That is funny.
Jack Butala:
My first question is how much are you paying, how much are you going to sell it for. He answered me, he said it’s a good margin. He’s going to make 3 to 4,000 bucks on it immediately. I said then take a quick claim deed, no problem, and then issue a special warranty deed. Then the blow up ensued, not from him, but everybody else that was watching that.
Jill DeWit:
Oh, because they didn’t get it?
Jack Butala:
Yeah. There’s a huge misconception about a special- the difference between a special warranty deed and a warranty deed is huge.
Jill DeWit:
Right.
Jack Butala:
A warranty deed you’re warranting the condition of the property, the title of the property, since its inception, since the seventies in this case. With a special warranty deed, you’re only warranting the condition of the property since you’ve owned it, which in this guy’s case is about half of a day. Do you own it? Yeah. You can guarantee that you actually own the property if it was conveyed.
Jill DeWit:
Mm-hmm (affirmative)
Jack Butala:
Within reason okay. I don’t want to get into a legal battle. It’s just an example of what you said. Now we’re all worried about this.
Jill DeWit:
We’re all worried about this step. [inaudible 00:14:38] it’s keeping us from getting a deal and moving on.
Jack Butala:
The other thing is if you do 50 deals and one of them’s messed up, it’s okay.
Jill DeWit:
Right.
Jack Butala:
I’ve done almost 16,000 and we’ve had very, very few issues. I can count them on one, possibly two hands. None of them were title related. None of them-
Jill DeWit:
It’s all stuff you can go back and fix.
Jack Butala:
Yeah. Or give a refund. Get the property back.
Jill DeWit:
Exactly. So what?
Jack Butala:
It’s all- yeah. It’s nothing to worry about at all.
Jill DeWit:
Thank you. That’s perfect.
Jack Butala:
The truth is this and I’ll wrap it up on this. I get real concerned about how successful- you can see who’s going to be successful and who’s not when you’re looking through Jack and Jill eyes. When people get hung up with these technical little things and it’s stopping them from making money and doing stuff, I get very concerned.
Jill DeWit:
Right.
Jack Butala:
This is not a joking matter. If you’re the kind of person that’s got to go through every single little detail and it’s stopping you from making money and decisions, you need to sit down in front of the mirror and you need to stop it quite honestly. You got to take a 35,000 foot view of this sometimes and say let’s go.
Jill DeWit:
Right.
Jack Butala:
Join us on another episode where Jack and Jill discuss how to use information, that’s me.
Jill DeWit:
And inspiration, that’s me.
Jack Butala:
To get just about anything you want.
Jill DeWit:
We use it every day to buy property for half of what it’s worth and sell it immediately.
Jack Butala:
Great show Jill.
Jill DeWit:
How about get there first? You’re just all over the place today. What the heck?
Jack Butala:
I know why.
Jill DeWit:
Why?
Jack Butala:
Later today- today is the day of our calls. These shows don’t air on the same day as when we record them, but we’re releasing them-
Jill DeWit:
Sometimes they do when we get behind.
Jack Butala:
We are releasing it. I added a product to our day to day doorstep/pro user thing. It’s not going to cost anybody anything and I can’t wait to announce it today.
Jill DeWit:
Okay.
Jack Butala:
It’s access to another database. We have number two database- number one database we already provide, it’s number two database and it’s free.
Jill DeWit:
Got it. You’re just all excited you’re not thinking …
Jack Butala:
I’m just jacked about it. Yeah. Talk about getting high.
Jill DeWit:
Right. Love it.
Jack Butala:
Just happy about it.
Jill DeWit:
I’m glad.
Jack Butala:
Jack and Jill. Information and inspiration, so let’s go buy some property.
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