This is episode number 2085 and we’re talking about prepping for the 2022 real estate market adjustment. This is step 2 of step 5 all this week. Jill and I are talking about it. Specifically, we’re talking about securing a source of equity as your source of capital because you’re going to need a ton of money to buy and resell assets next year.

Yes, we are prepping for 2025.

What did I say?

2022.  

That’s why there are two of us.

I want to make sure you’re not listening. You know what? We’ve been on the air that long, and you could say, “Wrong episode.” This is just a really quick catch-up. You’re not nuts. You are in the right place. It is 2025. This is 2024 right now as we’re recording this. In case anyone’s confused, I’m here.

In 2026, we’ll probably still be on the air and you can go back and say, “Those guys were totally wrong. They thought all this stuff was going to happen in 2025 and it was just peaches and cream. Everything went great.” I don’t think so.

Everything triples in value and everyone could afford all of it. Gas is $8 a gallon. No biggie and bread is now $42 and we got this.

I have to intervene here because you just opened this door.

No, sorry.

Half the world wants their property to go up in value and half the world wants affordable housing. It’s always half. After world wants all the property to rent for $400 or $500 a month. The people who are renting the property to you want their properties to triple every year in value.

It’s crazy.

If you would like to start a riot in a neighborhood bar, talk about these topics.

It doesn’t matter what town you’re in, right?

Prepping For The 2025 Real Estate Market Adjustment

This week, all week, as I said, we’re prepping for the 2025 real estate price adjustment and reduction and trying to help you get set up to make some dough. Each week on the show, we answer a question from our Land Academy member Discord forum and we take a deep dive into land-related topics by popular request. Let’s take a question.

Michael wrote, “I’m scrubbing a mailer and find that there are over 400 properties with a no mailing address for the owner. When I spot-checked the properties in ParcelFact, there was a mailing address, which is weird because I thought ParcelFact would get this data from DataTree. Usually, there are a few missing addresses, but this county is about 20% of all the properties. Has anyone come across this before? Has anyone figured out an automated way to add the mailing addresses back in?” Shucks.

Here’s the deal. There’s a very strong possibility you’re pulling data from DataTree in Idaho or Ohio. Idaho specifically has a tremendous amount of missing mailing addresses. Idaho is also a do not contact, do not mail state. For some reason, it’s always been like this my entire career. Since I’ve been pulling data, I’ve been disappointed and ultimately have moved on from ever sending mail to Idaho for this exact reason. I don’t know why the assessor’s there. They don’t want to provide ownership data. Is it against the law? Probably. It is how it is. I would just move on if I were you.

It’s funny. ParcelFact actually is a different data source. My other thoughts are, “I want to make sure, Michael, you’re checking all the columns.” Be tucked in there.

It’s not.

It’s not, never mind.

ParcelFact is a site that Jill and I created.

Excuse me.

Do you know why? Out of frustration, I’m like, I want to know.

Back off, you are not the data lady. I understand.

If Jill ever came to me and said after I hung up the phone with the seller, which would never happen, this is a fictitious scenario.

You’d imagine. You did great, babe. You should answer the phone now.

She would say, “What the hell did you do to that seller?” I would say some version of, “I don’t care, Jill. I don’t know. If I hurt that seller’s feelings, it’s just not my thing anyway.” That’s really what this data tells me.

I know what you’re saying. It’s just kind of crazy.

Out of pure frustration, I have dug around in both of those states, and the data sets are all over the place, no matter the source. I cannot get what I want. It’s not tucked in there.

No, it’s funny though, is we have it in ParcelFact. It exists.

Parcel Fact is a site that Joe and I created a lot of years ago, probably in the teens, 2018 or 2019, as a way for us and now all of the Land Academy members to complete due diligence really quickly. Get all the basic stuff that you need to decide whether or not you’re going to buy a piece of land within reason.

It’s up in the public too.

It’s still pretty spotty. The reason that you probably think that parcel fact in Idaho and Ohio does really well is because no one’s looking it up because no one sends mail to either one of those places because of the lack of data. Data Tree is unrelated, it’s the first American title subsidiary and it’s a data aggregator that we have or license providers of. Just keep going. Michael, that’s a great question. It’s a fantastic concern. You’re going to do great with this. Our topic, we’re preparing for the 2025 inevitable market adjustment for pricing. We’re specifically talking about securing equity as a source of capital before you go out and find a bunch of real estate to buy.

I was going to say about this, if you’re in Land Academy, you can call this part done.

That’s what I was going to say. This is the shortest episode ever. If you are a member of Land Academy, that’s why we started Land Academy. Jill and I didn’t start Land Academy in 2015 or 2014 or whatever it was, so that we could collect money and make money educating people. We did it to find equity partners, and man, mission accomplished. I don’t think there’s anything we couldn’t finance with a partner in an equity format, any property.

Understanding The Importance Of Equity Financing

Basically, it’s what you’re looking for here when we talk about a source of capital not go get a loan, not get a home equity line of credit. Don’t take out a card. Don’t put all your stuff together. We’re not talking about anything like that. It’s reaching out within your community wherever you are, and looking for partners and people with dough that when you find these amazing deals, they are there and willing and available. Understand you, understand what you’re doing, and happy to fund your deal. That’s it. What I was talking about with Land Academy, we do it all the time. We do it personally and then all the members, there’s always somebody sitting on too much dough or they’ll come up with a dough for the right deal and make sure it gets funded. That’s the bottom line.

Reach out within your community to find partners and investors so that when you discover amazing deals, they are ready, willing, and happy to fund them. Share on X

Let me drive this point home. I’ll start with a little anecdote. When I was young, professional age person, the idea I had, because of course I was way smarter than everybody then, banging my chest saying, “I’m going to earn. I’m a commercial real estate broker. I’m going to make a bunch of money with commissions. I’m going to save it all and I’m going to invest it, personally invest my own money into all these deals and I’m going to get rich.”

All of that’s probably wrong. I felt bad about it while I was not making enough money. I was constantly feeling bad about my own performance. Here’s the deal. This is how it really works. You have two ways. If you could take anything from this episode, please this as the takeaway. There are exactly two ways to raise capital for you to make money in real estate. Number one, debt, which Jill just mentioned, and never do that. Never take on debt. It will eventually bite you, especially now.

Mortgage rates are so high and interest rates. Two, equity. Jill finds an amazing deal in a sea of properties, let’s say houses, that you are buying in a zip code where every property is for academic purposes, buying and selling for about $500,000. You, because you’re amazing at finding real estate like Jill is, secure a property for about $350,000, $375,000 and you’re looking at it and looking at it and you’re saying, “I cannot find anything wrong with this. This must be too good to be true.” This happens to us every week, by the way, where you say, “I have to buy this and I have to buy it today before things change.”

They change their mind or whatever.

How To Leverage Partnerships For Success

They change their mind, the market changes, whatever. You need to have a rich uncle, some version of that who says, “I’ll put the $375,000 down for you and we’ll split the profit when you resell it next week for $500,000.” That’s equity financing. You don’t go get hard money. You don’t come home and tell your wife you’re selling all the cars and stuff. Please don’t do that. It’ll put you into a tailspin and it won’t end. You will always try to be recovering from that. Equity financing or partnership-type-based financing needs to have that kind of setup and be involved in a group where you’re not selling anything. You should never have to go to your rich uncle or Jill should never have to come into somebody like me. They should all be all mentally set up.

Try and talk you into it.

They’re real estate investors anyway. They’re just looking for great deals. Real estate investors, seasoned real estate investors like Jill and I, and a ton of people in the Land Academy who are older and understand things, have had a ton of experience, and are dying for young people or new people in the industry to bring them deals.

Seasoned real estate investors who are older and knowledgeable are eager for young or new professionals in the industry to bring them deals. Share on X

Older. Let’s say experienced.

I like being old.

That makes one of us.

What is it that you don’t like being old about?

It’s a girl thing.

No, come on. You’re smarter than that.

I don’t like it. I mean, I do. Can we talk about this another time?

Prettier as you get older, Jill, and smarter and more fun to be with than all that.

Thanks. It’s not the same disguise. Thank you.

Secure your source of equity. They’re all over the place. Land Academy is a built-in source of equity.

Join our group. You got it.

Join us tomorrow. On Wednesday, we’ll talk about step three all along the lines this week of what’s going to happen in 2025 and how you can prepare for the inevitable market adjustment. We’ll talk about analyzing local markets, a.k.a. driving for dumpsters.

Thank you.

You are not alone in your real estate ambition. We are Jack and Jill, information and inspiration to buy undervalued property.