How One Land Academy Member Nets $75,000 per Month (LA 1251)

How One Land Academy Member Nets $75,000 per Month (LA 1251)

Transcript:

Steve and Jill here.

Hello.

Welcome to the Land Academy Show: Entertaining Land Investment Talk. I’m Steven Jack Butala.

And I’m Jill DeWit broadcasting from not so sunny Southern California.

Today Jill and I talk about how one Land Academy member nets 75000 bucks a month.

You know, I would first like to start with what we just talked about 30 seconds before we rolled. It’s a blustery day. You don’t like the sweatshirt look?

Oh, Jill, you don’t have to explain. You of all people do not have to explain one thing to like anybody on this planet-

I like my little-

Least of all-

Cozy sweatshirt.

Me.

Well, here’s the thing [crosstalk 00:00:40]

I was just asking you about what it’s all about.

Well, I’m wearing a sweatshirt because it’s a cold day, and I like to be all comfy in a sweatshirt, however, you could still say I have a butt and a waist because I’m wearing the right jeans, I hope.

You have a butt and a waist?

Yes. You can still see it. That’s the thing if you wear … What’s really bad is if you wear a long sweatshirt, or a long sweater, and then like no one can see anything. You’re like a big ball of fluff, and then like little legs stick out like leggings. That I don’t like that look, and I won’t do that look.

Like you just lose all shape?

Yes.

These are things that men have … It’s never crossed a man’s mind.

Cinder block on sticks don’t want that look. Anyway.

Oh my gosh. How we veer so far from land so quickly.

Well, you know.

Anyway. This topic today, very briefly, this is a real story, we’re not going to use any names or locations or any of that stuff, about a member that we have who was actually at the live event, and a pretty lengthy presentation about-

Oh, great. Now, you’re narrowing it down.

His business model. And the reason that I’m bringing it up today is because no ones forgotten it. It’s constantly this undertone of-

True.

“Well, I want to be like X. I need to do more like X. Member X has all this figured out.” So, I want to kind of get into this, and figure out if it’s actually a unicorn, what’s real about it, what’s unreal about it. I mean, and I’ll tell you it’s 80% positive, and we’ll talk about the positive and negatives, but we still have to do deals. It’s not like you’re choosing to do … I’ll describe his business model in great detail.

I’m sure you will.

Before we get into it let’s take a question posted by one of our members on the landinvestors.com online community. It’s free.

Aroldo … I can never pronounce this name, I’m sorry.

You got it.

Aroldo asks, “For our first mailer should we keep the letter exactly as the download on Offers2Owners? I think it’s all great especially for the sentence that says, ‘We are partners with landstay.com who have been in business for 20 plus years, and have successfully completed 10s of thousands of purchases like this one.’ I think that would help us with credibility. My gut just tells me to keep it simple and to just send it as it is to make it easy on myself. Any thoughts?”

Look at that. Well, I see one of our members on here already weighed in. Member and moderator Kevin said, “Aroldo leave it the way it is until you know enough to change for some reason. In three years I’ve only made a couple of very minor changes.”

There you go. There’s something to be said with aligning yourself. Well, A: Transparency. Number one, you never want to say it’s you if it’s not really you, and if you really are aligned with us, and partner with us, and you’re in Land Academy, which you are, that’s true too. But it helps to have that credibility for people to look you up, and see who you are. It still happens.

Now and then I get phone calls or text messengers or even social media people reach out to me from tracking members down to us, and they have said … And they see us as a credible source, and they say something like this, “Hi, you don’t know me. I got a letter from x, y, z individual. This is his company name. He says he’s a part of Land Academy. Is that true? Can I trust this person?” Of to which I do check, and make sure I do know the person, and they are in our group, and I’ve never had it not be the truth, and I’m happy to fire back with, “Heck yes. This is part of our group. I’m sure it’s a solid offer, and I wish you all the best.”

Yeah. This person is very prevalent on … They’re a new member, and they’re very prevalent on Land Investors asking a lot of questions, and working their way-

That’s good.

This is what I would recommend to any new member working their way through the steps of making sure this succeeds. And this question is one of many that he’s asking, and I think it’s a great question. It comes up every … Over the years this question has come up pretty consistently, and I know the person that runs Offers2Owners answers it all the time. The mailer template is sitting there for everyone to use, do I change it and make it my own, or do I use it exactly as it is? So, as Kevin, our moderator who’s incredibly successful, he’s an advanced member in our group said, “I haven’t changed it very much at all.”

So, I think you should approach this whole model as do it Steve and Jill’s way until I can prove it to myself, if you need to do that, and then kind of make it my own. So, I wouldn’t change too much about what we suggest in the beginning. Let’s say the first 10 deals. But if this is for you, if this is a business model that was made for you, you’re going to find out pretty fast, and you’re going to start making a few little tweaks and changes to make it your own.

It’s actually a pretty appropriate question for today because that’s what this is about. This person that we had, this member, I’ll just say it … Today’s topic how one Land Academy member net 75000 bucks a month. This is the meat of the show.

During our most recent live event we had several advanced members speak about their experiences with Land Academy, and how they’ve made it their own, and why they’re in advanced group, and the good, the bad, and all the other stuff that goes on with it. And one member in particular stood up and said something I’ve never heard any member really allude to in any way, because it’s not part of my like entrepreneurial makeup. I stopped what I was doing and listened pretty hard core. He said, “I do one deal a month, and I net between 50 and 100 thousand dollars a month. So, I make sure I make between half a million dollars and a million dollars a year, and that’s it. I’m done. I’ve been doing it for at least a year. I got to quit my job last year, and I’m moving forward, and I don’t have any intention of going from one deal a month to two deals a month. I’m done.” And that goes against every single thing I’ve ever learned in school, everything that’s in my soul about growing and being an entrepreneur, and moving forward.

But we’re still here, however months it is later, talking about it, and people still bring that up. Young members hear about this because we talked about it on the show, and because he’s a semi vocal person in our advanced group, and shows up on the Thursday calls most of the time, or at least half of the time, and he’s stuck with it. He hasn’t moved from that. And so, it just intrigues.

So, I’m going to explain how and why he does this. This is just really intriguing to people. It’s not so much intriguing to me because I know how he does it, and I get it, and this is part of what we do. We actually have a line of business that does this. It makes 75 to 100 thousand bucks per deal per month, and that’s fine, but I just can’t stop there.

I know you can’t, and that’s something that we’re working through together. I want to say it’s really you have a lot of choices. For me, is that all you want to do? There’s nothing wrong with that, and that’s for a lot of our people. It’s a lot of work whether you’re doing one big deal, or several smaller deals because those one big deals might need more involvement. There might be brokers involved because they’re bigger transactions. It might be a different property type that you’re learning about the area. It might be an in full lot where you’re dealing with finding the right buyer, and builders in the area, and you have a substantial buyers list to make those happen. It’s just whatever you choose.

So, first you choose … I look at it this way: How hard do I want to work, and how much money do I want to make? That, for me, is what … I mean, once you figure that out then you back it into I don’t want to work that hard, or I do want to work that hard. And, honestly, I think doing more smaller deals sometimes, for me, is easier because I’m not so worried about deals. I can just power through, get them in the system, not think about it, make good money.

You’re looking at me like I’m nuts.

I’m just waiting for you to end spectacularly. I don’t know. Sometimes I don’t know when it ends.

Oh, thanks. That’s a whole nother conversation.

This guy makes it sound easy-

True.

That’s my whole point to all of this. Is it a unicorn? Can it exist? Can you actually easily do this, and kind of just chill out? I think a lot of people … Or some of the motivation for people to get into this business, which is fine, is to slow down not have a boss, and manage your own time. And he’s certainly done all of those things. So have we. So have the vast majority of the people in Land Academy that are successful. But I think it gets mistaken for, “Well, his way is better and easier.” And it’s not. He’s got to probably run through five disappointments to get one good deal done. He doesn’t talk about this stuff, and neither do we. He’s got to read I don’t know how many purchase agreements, and start red lining stuff wherever he needs to, and then eventually it’s going to kill deals. I know this from experience.

So, my point is if you’re listening to this and thinking, “Well, I want to adopt this guys model.” Like so many people since the live event just know the truth. That’s my whole point. And here’s the truth: He has to go through at least five to eight deals before he lands that one that nets 75 to whatever, 50 to 100 grand. There’s going to be all these deals have the same potential issues, and you have to go through the same potential due diligence. He’s just chosen, for whatever, to hit a triple every time he’s up to bat, and then strike out probably four other times at bat.

So, I don’t want to … Ever since Jill and I started Land Academy I’m very, very cautious about trying to make this sound it was too easy, and too simple. It’s a lot of work. He’s not sitting around doing nothing. In fact, in this model I would bet, I haven’t asked him this, he’s probably dealing with a lot of not rejection, but a lot of failed deals to get to that triple.

Exactly.

I mean, you’re on the front lines every day. What do you think of this business model?

I hate passing on what I think are good deals to hang out for that, like you said,-

Me too.

The unicorn-

Me too.

That’s where I have a little bit of difficulty. So, I would just be … And that’s how we roll, I pull the trigger. If it’s a good deal I pull the trigger. I don’t think about it.

Yeah. So, I think it’s a great business model. We have a business model like that that functions pretty much. It’s not so much 75000 it’s closer to 50000 a month, and that’s fine. But I know how much work goes into it. We have full-time staff people who report to Jill to get these deals purchased and resold. And this guy doesn’t. He’s a one man show. Doesn’t even have an assistant, and that’s part of his whole deal is to keep his costs as close to zero as possible. And just really spend money on data, and mail, and then he’s a real systems guy. So, he’s got somebody else answering his phone overseas I think, or-

PATLive.

Is it PATLive?

Oh, yeah. I’m sure it’s PATLive.

And so, he’s outsourced some of that stuff, but the actual deals themselves he does them himself.

It’s a little bit scary because I remember talking to him about the money that he spends in the front end on that deal. It works out every time, but there’s a lot of money that goes into the phone calls, and the mail to get that one, and there’s more juice there. There could be more deals.

And this is my final point on it: The thing that concerns me the most about this business model … And I’m not knocking it because if there’s one person in our group who’s doing it, there’s probably 12 we don’t know about at least. I say our way is to get like we buy and sell probably at least 30 properties a month that are pretty low end properties where we double our money on the internet whether it’s through social media marketing, or Ebay, or some venue like that. And so, that’s very profitable for us, and very easy, and it’s in a system, and we go back to the same place and buy these properties that’s one of like maybe 12 places all over the country and resell them. So, at least I know there’s food on the table, and everybody’s paycheck clears. And then Jill’s got a team that does some of these higher end deals.

So, I just remember him talking about it, and I’m saying, “Wait. I could get rid of all of this, this, this, and this? I could only do this. Jill and I could sit in a room by ourselves somewhere. I could buy them, she could sell them, and we make 100 grand a month.” And then I started really thinking about how much work is involved in that, and the things you’d have to give up. So, you know what? Is this topic making sense?

Yeah. I think it is.

Everybody’s got to choose their own thing.

I agree. That’s my whole point. You have choices, and know that no way is right or wrong, no way. They each have their challenges.

Exactly.

That’s it.

Happy you could join us today. Every Monday, Wednesday, and Friday … Go ahead Jill.

Thank you. Every Monday, Wednesday, and Friday you could find us here on the Land Academy Show. For Tuesdays and Thursdays catch us over on the House Academy Show.

Tomorrow the episode on House Academy is baby boomers will sell 21 million homes in the next decades. How does this affect you?

You are not alone in your real estate ambition.

Such an interesting case study the case study for his case. Every case study like that there’s probably 15, 20, 30 other ones in our group where we could sit down and really kind of analyze how they do it and why, and then look at the consistencies of the model, and then the inconsistencies. But I bet you a dollar the consistencies would be organization, follow through, mailer consistency-

A team. Someone else answering your phone.

Systems; all the stuff that all of our education programs preach.

Right. Getting the right data. It starts even with that.

I think that trying something new, I’m going to probably eat my words five shows from now, you have to be really careful about there’s a balance between trying something wildly new, and just doing the same thing over and over again. You got to find that middle area, and it’s hard. That’s when I separate it all out into lines. So, that for the lower end property we just keep doing the same thing over and over again. For the higher end property we stay in urban areas, and keep doing the same thing over and over again, but there’s always something little over here that I’m trying that’s new. And sometimes it works, and sometimes it doesn’t. Every single time though it’s freaking expensive. It’s expensive to try stuff new.

You know what’s funny? I was just thinking what you just said a minute ago about picking something. I mean, this case has a great example of one person doing it one way, and we have another person in our group that kills it on the volume. Volume is like he’s a master there. And they both-

Exactly.

I don’t think they both went into with that goal in mind like they didn’t say, “I’m going to do one deal a month is my thing.” It just kind of happened, and it worked out to fit their lifestyles. That’s it. Don’t overthink this.

I think in all cases follow through is imperative.

Correct.

The Land Academy Show remains commercial free for you our loyal listener. So, wherever you’re watching, or wherever you’re listening please subscribe and read us there. We are Steve and Jill.

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Drive up Access is More Important Than Ever Now (LA 1241)

Drive up Access is More Important Than Ever Now (LA 1241)

Transcript:

Steven Butala:
Steve and Jill here.

Jill DeWit:
Hi.

Steven Butala:
Welcome to the Land Academy Show. Entertaining land investment talk, I’m Steven Jack Butala.

Jill DeWit:
And, I’m Jill DeWit broadcasting from sunny Southern California.

Steven Butala:
Today, Jill and I talk about how drive up access is more important than ever right now. We said it yesterday just a little bit and Jill, in perfect form, I’ve put her on the spot, tried to trick her, and in perfect form, I said, “Why? Why is this drive up access situation more important now than ever?” She said-

Jill DeWit:
Because…

Steven Butala:
Okay, go ahead.

Jill DeWit:
… we have a different group of buyers now that are looking at land.

Steven Butala:
Yep. Yep. We can back it up with personal experience, tons of personal experience right now. People are flocking to rural areas and-

Jill DeWit:
That would have never considered it before.

Steven Butala:
That’s right.

Jill DeWit:
That’s what’s so cool.

Steven Butala:
Before we 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:
Rebecca wrote, “Hi, Land Academy, I have a lot with a storage shed on it. When I send a purchase agreement, does a contract have to include any info on the shed?”

Steven Butala:
No.

Jill DeWit:
Yeah. You are-

Steven Butala:
Is it good to have stuff on the property when you buy it or a bad?

Jill DeWit:
Great.

Steven Butala:
It’s great.

Jill DeWit:
Anything on the property, aside from an old refrigerator, a stacked up thing like that, but for stuff like this, any kind of a structure we love. Even if it’s an old rundown mobile home, you get excited about those especially. Love it.

Steven Butala:
Jill and I are launching a mobile home empire this month actually, based on the recession times. We’re going to also launch, not really super soon but shortly, as part of the House Academy program, Mobile Academy. Having anything on your property that makes sense, first of all, sets it apart from everything else that’s on the Internet next to it is great. Second of all, if it’s tenantable in anyway, even a detached mobile home, it’s a really, really, really good thing.

Jill DeWit:
It shows you, well a couple of things are, the utilities are already there, shows you what’s possible, and it just stands out. We, at times, have done things to properties like that just to make them stand out.

Steven Butala:
Yeah.

Jill DeWit:
So, none of that’s crazy. I think it’s the greatest thing. So that’s great, but her question is, “Do I need to put it in the purchase agreement?” No, you don’t. It naturally conveys with the land. It’s like you hear people buying houses and then they open up the garage and there was a bunch of junk in it, and they went through and said, “Oh my gosh, there was a cool classic car in an outer shed under a tarp. Yay, I won,” kind of thing.

Steven Butala:
Yeah. I mean, that’s a perfect example. So, the car’s in the garage, probably everybody’s deceased, “Do I write it in the contract?” No, you’re going to have to go through a whole thing with the DMV. It’s a whole separate thing. If you want to get real technical about this storage shed, you should have a bill of sale, but it’s not even worth the time to do the paperwork. I would just have a conversation. Well, I wouldn’t, Jill would.

Jill DeWit:
Yeah.

Steven Butala:
Have a conversation with the seller that says, “You know, there’s a shed on the property. You’re not going to remove it, are you?” “Oh no, I don’t even know what’s in there. There could be anything in there. I have no idea, I just want to get rid of it,” that’s what they’re going to say.

Jill DeWit:
Exactly. Okay, perfect.

Steven Butala:
Then, make sure you take great pictures and tell some story about it.

Jill DeWit:
Yeah.

Steven Butala:
It’ll sell fast.

Jill DeWit:
Hang some cute curtains. It’s probably a dusty mess inside, but put some cute red checkered curtains in it and shoot some great pictures and that’s all you need.

Steven Butala:
I’ll tell you what, along these lines-

Jill DeWit:
And a new doormat, a floor mat.

Steven Butala:
If you have property, especially out West that’s got a clearing or it’s clear, it’s not crazy at all to go buy the worst, cheapest RV you can find.

Jill DeWit:
Oh.

Steven Butala:
Just make sure the zoning provides for this and make sure it’s not in a ghetto type area where it’s going to get vandalized and put it on the lot, take pictures of it, and sell it.

Jill DeWit:
Right. Yeah.

Steven Butala:
This is your answer to the virus. You’re going to sell it that week.

Jill DeWit:
It’s true.

Steven Butala:
We have never done the RV thing. We’ve done a mobile home thing. Detached mobile with no utilities or anything, just drop it on there, and it just sells that day. So, we just got to make sure the numbers make sense.

Jill DeWit:
Yeah.

Steven Butala:
You also have to explain very clearly. Not me, Jill has to explain it.

Jill DeWit:
Do you love how he does this? Sounds like I’m your assistant.

Steven Butala:
No, no, Jill. Hey, by the way, Jill has way more money than I do.

Jill DeWit:
Oh, okay. It’s so funny.

Steven Butala:
I just have a little more-

Jill DeWit:
Because I earned it.

Steven Butala:
I have a little bit more free time, that’s it.

Jill DeWit:
Yeah.

Steven Butala:
You really need to explain it. We’re all a big huge fan of telling the truth here. Just if you’re going to drop a mobile home from the sixties on a piece of property, say that. Say, “This property-”

Jill DeWit:
Say, “I’m not sure anything works, but here you go.”

Steven Butala:
Yeah. I mean, it’s detached. It’s not attached, there’s no utilities, it probably needs a septic system. I don’t really know, I don’t care.

Jill DeWit:
I found it.

Steven Butala:
Yeah, I’m just telling you.

Jill DeWit:
I found it and pulled it over.

Steven Butala:
Or an RV, same thing. We got it there, but the tanks could be full. I don’t know. That’s how bad it could be. Expect the worst when you go out there.

Jill DeWit:
That’s so funny. That is not how to get a girl.

Steven Butala:
I know.

Jill DeWit:
Expect the worst.

Steven Butala:
Yep. I say these things knowing full well that I already got the girl.

Jill DeWit:
Okay.

Steven Butala:
So, there’s a little bit of leeway, there but not a lot. If it’s three quick comments in a row from me, then she’s out. She’ll walk off the stage.

Jill DeWit:
Yep, that’s true.

Steven Butala:
Drive up access, we’re all set. Oh, no-

Jill DeWit:
Today’s topic.

Steven Butala:
Oh, today’s topic: drive up access is more important now than ever. This is the meat of the show. Why? Well, we kind of answered it in this question. If you have drive up access particularly with a state road or county road drive up access, which is all maintained and you’ve dropped something on-

Jill DeWit:
Meaning paved.

Steven Butala:
Paved, it could be a lot of places rural-

Jill DeWit:
Be real specific, if you would.

Steven Butala:
Paved is better in a lot of cases.

Jill DeWit:
Okay.

Steven Butala:
In some cases, even now, especially now, people don’t want to have that good of an access. They want to get to their property, but not everybody else. They want everybody else to not get to the property. So especially out West, there’s a lot of state and county road properties that are, I call them 55 mile an hour dirt roads, not paved.

Jill DeWit:
But, there’s not a lot of gravel.

Steven Butala:
No, you can go 55 on a dirt road, really, year-round.

Jill DeWit:
Right, and not destroy your car. In a real car.

Steven Butala:
Yeah.

Jill DeWit:
Because, I want to be specific with this. Okay, everybody has a different version of drive up access. Some people think drive up access is curves in a driveway.

Steven Butala:
Oh. Geez, not that.

Jill DeWit:
So, that’s what I want to clarify. So, the point of the show is there’s a lot of people right now that are considering rural vacant land because they want to get the heck out, right? We have virus stuff going on, and they don’t need to be in that city anymore. Now, they can, they’ve all tested it and figured it out that, “I can work for my company. They sent me home. We’re now talking long-term. Then, why am I going to pay for this mortgage? Why am I going to pay to be in the city? My kids are being homeschool right now too, by the way. We don’t have to be here. We have all these more options.”

Jill DeWit:
So, we land people are all talking to these people now and they’re going, “What’s out there?” So, what I want you to think about is they don’t have four wheel drive and you need to kind of properly paint the picture and let them know really what’s possible. I want to ask you, I want to talk with you, so drive up access to them when you say, “Sure, has drive up access,” we land people think, I even think of it sometimes it’s a dirt road. Me, drive up access is I don’t need an ATV, or I don’t necessarily need four-wheel drive. Because if I do need four-wheel drive, I let them know, “Do you have four-wheel drive and a GPS when you,” we all have GPS on our phone, but do you have four wheel drive to get out there?”

Jill DeWit:
There’s two buyers. Some will go, “Uh-oh, I don’t,” or the hunters and the people that really want to be out there are going to go, “Yes, good. That’s going to keep my mother-in-law out, it’s going to keep my friends out,” whatever. I-

Steven Butala:
Yeah. The virus, it’ll keep the virus out.

Jill DeWit:
The virus people out. I don’t want those people coming up. Heck, the mailman can’t even get to me. This is great. I’m going to get a P.O. Box because the mailman can’t find me. I love this. So, you’ve got to properly convey what it is, and jump in here.

Steven Butala:
Drive Up access means you can drive right up to it. It doesn’t mean you can drive right up to it in a Pinto.

Jill DeWit:
Right.

Steven Butala:
It’s so-

Jill DeWit:
Pinto?

Steven Butala:
In a car that famously doesn’t work in a two-wheel drive, or really in Pinto’s case, one-wheel drive.

Jill DeWit:
How about Prius? Let’s use Prius.

Steven Butala:
Okay, Prius.

Jill DeWit:
Prius. We should probably do Prius access or non-Prius access. So, that would be good.

Steven Butala:
Yeah, there’s Prius access, there’s Ford F-150 access, that’s a little bit more rough. There’s-

Jill DeWit:
Right. Polaris access.

Steven Butala:
There’s Ford F-450 access.

Jill DeWit:
Oh, okay.

Steven Butala:
That’s really rough. Then, there’s monster truck assets, which is…

Jill DeWit:
Jeep.

Steven Butala:
Yeah.

Jill DeWit:
Jeep Polaris, I’m thinking, what else?

Steven Butala:
You want it Prius access right now.

Jill DeWit:
Right, but he doesn’t have to be. I mean, I think with us, with land people, we have to just properly convey it. I would actually even put in the posting, really put it in there what you need now to get to this property because you don’t want to waste anybody’s time and you don’t want to waste your time have someone in their Prius going out there.

Steven Butala:
Yeah.

Jill DeWit:
Prius from San Francisco, going to look at this property and they can’t get to it. You want to make sure they can.

Steven Butala:
If that’s your customer for rural vacant land, you have to ask yourself some questions.

Jill DeWit:
But, it’s happening. So, what I want to say, too, is it’s not only we have these new customers, right? They don’t have four-wheel drive, but they have a bit to learn. So, I want to add too that it’s a little bit difficult for some of us right now as land people because we have to up our patience level. This is another reason why-

Steven Butala:
Well, I don’t. I don’t, you do.

Jill DeWit:
Exactly. This is another reason why we don’t allow Steven to answer the phone.

Steven Butala:
Thank you for answering the phone, by the way. Can’t thank you enough.

Jill DeWit:
You’re welcome. Steven is not allowed near the phone-

Steven Butala:
For a hundred years. For a hundred years if I said it every day, we could-

Jill DeWit:
We could have 10 phones ringing and people answering it left and right and Steven is still not allowed to touch any phones.

Steven Butala:
I couldn’t thank you enough if I said it every day for a hundred years.

Jill DeWit:
You’re welcome. Because we do have people. I’m just now thinking of this too, you might want to change your listings a little bit. Just make sure you’re in the mindset of, “Who’s my buyer right now? It used to be the majority of our buyers were wholesale people, land people, investors in our business,” right? That’s, for us, has been our customer forever. Because the other buyers, they were very few and far between. Those that did get to us, they’ve done their homework, they know their kind of seasons. Now, we’re seeing a lot of people, their minds are now open to this whole thing like I described earlier, but they don’t know what they’re getting into.

Jill DeWit:
So, it’s your job to take your postings to maybe to a little bit to the next level, because it’ll save you a lot of time. The more you put in your postings that spells out what the property’s really there, what they need to be thinking about. Instead of just saying, “No utilities,” maybe have a few suggestions in there, maybe have a few links in there, even if it’s just to the county website because it’ll save you some time from them calling you and going, “What does that mean, and how do I solve it?”

Steven Butala:
Usability is what I’m getting at here.

Jill DeWit:
Right.

Steven Butala:
For years and years and years, 25 years, we were selling property other people that are probably going to resell it, or non-use people, people who aren’t going to really use the property. Now more than ever, they’re looking at this real estate saying, “You know what? I’m going to use this. I might build on it, I might put a mobile home on it, but I am going to get out of this city,” because of what Joe said earlier, “there’s no reason for me to be here anymore. That cost of living silly.”

Jill DeWit:
Yep. Yep.

Steven Butala:
“I can go live out there for next to nothing and have a happy life and not have all this stress and make the exact same amount of money as long as I have an Internet connection.”

Jill DeWit:
You know what I just think is funny? All the people, they’re not in the cities, that have been out in the woods are now going, “Yep, told you so. Now, you wish you were with me. Right? Not had a bunch of neighbors.” For all you people who lived in downtown whatever, that thought I was nuts to be on my 20 acre branch, you’re now going, “Uh-huh, don’t you wish you had this?”

Steven Butala:
So, I grew up in Michigan, and so I obviously talked to people and we talked to people all over the country constantly, Jill and I because of Land Academy and everything else.”

Jill DeWit:
Yeah.

Steven Butala:
I’ve never not once, ever heard the sentence out of someone’s mouth, “Oh, you live in Los Angeles? Congratulations, man. I bet you love it there. I always wanted to live in L.A.”

Jill DeWit:
That’s true.

Steven Butala:
It’s exact opposite, and they’re not wrong.

Jill DeWit:
True, yep.

Steven Butala:
I can talk about these shows with confidence because I’m one of these people.

Jill DeWit:
Yeah.

Steven Butala:
I’m not sure this is worth it anymore either. All my companies are all online. What are we doing?

Jill DeWit:
That’s another show that we need to talk about as a family first.

Steven Butala:
Yeah, it’s called Couples Therapy.

Jill DeWit:
Exactly. Oh boy, I don’t want to hear, “I told you so,” again. Happy you could join us today. I won’t say I told you so to you. The Land Academy, or excuse me, you can find us right here on the Land Academy Show every Monday, Wednesday, and Friday. Tuesdays and Thursdays, we are next door on the House Academy Show.

Steven Butala:
Tomorrow, the episode on the House Academy Show is called, A Step-By-Step Instruction on how to Double Your House Money in This Environment. You are not alone in your real estate ambition.

Jill DeWit:
That’s going to be good.

Steven Butala:
Yeah.

Jill DeWit:
I like it. That’s funny. Thank you, baby, for not rubbing it in too much.

Steven Butala:
No, it’s okay.

Jill DeWit:
Okay.

Steven Butala:
You know what? No, you’ve earned it, Jill. I know you want to live here and it’s fine, and that’s the truth of it.

Jill DeWit:
You know.

Steven Butala:
But as far as forever goes, probably not.

Jill DeWit:
Things change.

Steven Butala:
This is just another kitchen conversation for you and I.

Jill DeWit:
It is, things change.

Steven Butala:
It just happened to happen in front of the camera.

Jill DeWit:
Exactly. We all know that things change, especially it’s interesting now for a lot of us, it’s not voluntary. These are forced changes, and so you have to adapt and make the best of it as we all are.

Steven Butala:
Yep.

Jill DeWit:
The Land Academy Show remains commercial-free for you, our loyal listeners. So wherever you’re watching and wherever you’re listening, please subscribe and rate us there. We are Steve and Jill.

Steven Butala:
We are Steve and Jill. Information…

Jill DeWit:
And inspiration…

Steven Butala:
… to buy undervalued property.

If you enjoyed the podcast, please review it in Apple Podcasts . Reviews are incredibly important for rankings on Apple Podcasts. My staff and I read each and every one.

If you have any questions or comments, please feel free to email me directly at steven@BuWit.com.

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

I would like to think it’s entertaining and informative and in the end profitable.

And finally, don’t forget to subscribe to the show on Apple Podcasts.

Good Investors Will Make Fortunes in the Next 24 Months (LA 1239)

Good Investors Will Make Fortunes in the Next 24 Months (LA 1239)

Transcript:

Steven Butala:
Steve 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:
And I’m Jill DeWitt, broadcasting from sunny Southern California.

Steven Butala:
Today, Jill and I talk about how good investors will make fortunes in the next 24 months.

Jill DeWit:
What else should you be doing? I’d be like this. That’s like a drop everything and run title. You know what I mean?

Steven Butala:
Mm-hmm (affirmative). Now is the time. There may never be another time in our, certainly in our lifetime, but if you’re real young you might get another shot at it, and I’m not saying you can’t make money during great times, but now it’s just kind of a perfect storm. I have some indications about why. Before we get into it, though, let’s take a question posted by one of our members on the landinvestors.com online community. It’s free.

Jill DeWit:
Roland asks, “My partner and I have a beautiful 2.5 acre property in Twentynine Palms, California, near Palm Springs, that we have listed on eBay. This is the first time we have listed on eBay. We have had two bidders so far. One seems legit based on his buyer’s history. The other, who is leading right now, has no buyer history. We’re kind of concerned. So, the question is, what scams should we look out for? Thanks, Roland.”

Jill DeWit:
I was going to add one thing too. You are not wrong in your concerns, because sometimes that happens. People do, unfortunately, are not legitimate. With a buyer’s history, they may or may not be a great buyer. They could be good but you don’t know. We have a lot of experience in this, and I’ll tell you truthfully, I have gone… and when you go into the settings and you’re setting up your eBay account, you can even restrict it ahead of time so people that have less than X amount of transactions can’t even bid, or people who have less amount of dings on their account, things like an unpaid history or they’ve already had some negative feedback, you can also restrict those buyers from your account. You have a lot of control. There’s a lot that you can choose from.

Jill DeWit:
It’s a tough one, because you don’t know who could be good, who could be bad, until you really get rolling. You don’t have a lot of history too, by the way, so let’s put the shoe on the other foot. Is that okay-

Steven Butala:
Yeah.

Jill DeWit:
Is that the right kind of a-

Steven Butala:
You’re answering the question for me.

Jill DeWit:
Okay.

Steven Butala:
Total two-way street.

Jill DeWit:
Exactly. As a buyer, I don’t really know you too, Roland, so you want to give… I’d say give him a chance. What you could do, because you’re starting out, they’re starting out. If you see two guys going for it and you do like we do. It’s one dollar, no reserve, 30-day auction, going to close on a Sunday around dinner time. Those are things that we’ve learned over the years that worked the best. I would start having a dialogue with these guys. Make sure that you say, “Hey, you’re one of the top bidders. Don’t forget when it closes. I’m going to send you an invoice. This is how the process goes just to give you an idea. Do you have any questions for me now,” things like that. Then maybe too, if you have some interaction with these buyers, both of them, it’s going to help you feel good and know that they’re real and legit.

Steven Butala:
EBay’s a double-edged sword. Jill and I have sold tens of millions of dollars of real estate on eBay. It’s only conducive for really one product type when land is concerned, so the people that buy stuff on eBay are the absolute biggest bottom fishers there ever was, ever. It’s not just for land. It’s for cars and anything else that you can find on there. It’s way, way lower, from a price standpoint and an acceptable behavior standpoint, than a lot of other venues on the internet like, let’s say, Amazon, Craigslist or offer upper… Choose one.

Jill DeWit:
This is all true.

Steven Butala:
You need to go in with an expectation that you’re dealing with maybe the worst customer there ever was, number one. Number two, they’re not going to buy a real nice [info lot 00:04:10] that you spent five grand on for [chen 00:04:12]. They’re going to buy very, very inexpensive rural vacant land. They’re going to expect an amazing customer service experience. They’re going to expect zero fees associated with the transaction.

Jill DeWit:
A crazy price, yeah.

Steven Butala:
I’m talking about 500 bucks. Five hundred to a thousand sales price is where you want to be for eBay. So, that means you have to buy it for 2- or $300 to make any real money consistently. That’s not inconceivable, especially if you buy huge bulks of property in multiple locations all at once, which is what… We’ve done this for years and years.

Jill DeWit:
Right.

Steven Butala:
The big problem with eBay is it turns a lot of people who are really intelligent off. That’s the problem… or Land Academy people. When people hear the word eBay, very intelligent people, and they say, “What? That’s what this is about, buying real cheap property for a few hundred dollars and selling it for 700 or 800 on eBay 10 or 15 times a week,” no, that’s not what this is about at all. It’s a tiny little part of it.

Jill DeWit:
Right.

Steven Butala:
Ninety-eight percent of the time we talk about data and smart stuff. This is not one of those times. This is just the eBay little portion of it.

Jill DeWit:
Yeah, if you’ve got a good property, I wouldn’t put it on eBay. If you’ve got something that’s in your inventory you just want to get rid of and you don’t care about it and maybe drive traffic to your website, then I would use eBay. Use it as a marketing tool.

Steven Butala:
I want to go out on a limb here and say, I bet you and I have sold more real estate on eBay than anyone.

Jill DeWit:
I bet that’s true. I’m sure-

Steven Butala:
I bet we’re the most qualified people to talk about this little tiny subject.

Jill DeWit:
I’m sure of that.

Steven Butala:
We don’t sell very much, if any, at all anymore for a reason. If us, we’re saying, there’s just better ways to do it, I feel very confident that that’s the case.

Jill DeWit:
You know, Roland, I would rather you have this on Facebook and doing maybe even some paid ads and getting in front of the right people.

Steven Butala:
Me too.

Jill DeWit:
Then you’re going to get a lot more Instagram. Dream it up.

Steven Butala:
Fifty percent of the people that buy property on eBay and the auction closes, and you either send them a bill or there’s automatic checkout, will pay. Fifty percent won’t. It costs 100 bucks to run an auction, so there’s a lot of stuff that goes on. There’s a lot of moving parts to it. You have to have an incredible amount of patience, so you can remove me in that. But it’s very profitable. People who do well on eBay, I’ve been to these eBay conferences, national conferences, not necessarily with real estate, but anything, have figured it out. They’ve figured out a way to create a machine.

Steven Butala:
I met a couple guys at a conference that, they sold packaging, like cardboard boxes and stuff, for other eBay sellers on eBay, and they were just printing money. I don’t want to knock it, but really what it is is you’re an online retailer who happens to sell… fill in the blank. For us, it was land. For them it was boxes. For some people it’s Beanie Babies. For some people it’s Corvettes.

Jill DeWit:
Thanks.

Steven Butala:
Today’s topic, good investors will make fortunes in the next 24 months. This is the meat of the show.

Steven Butala:
I was inspired to write this title by an article/video that Suze Orman did where she kind of just yelled at everybody. That’s what she does. She’s a branded financial planner, and she just got in front of this camera like she always does, and famously just started yelling at us saying-

Jill DeWit:
Isn’t that funny?

Steven Butala:
I’m applying it to real estate here. She said, “Now everybody’s kind of at home. We didn’t request it, but we have this chill period, let’s say-”

Jill DeWit:
Chill period.

Steven Butala:
It’s like a cooling off period.

Jill DeWit:
Paid time off. You know what it is? What do you call it when it’s your… a career decision. I worked at a company, and before they fired you, you would get a career decision day. Not kidding. It’d be a day off with pay. This is like at the very, very bitter end of the whole thing.

Steven Butala:
After you already got all the black marks on your record.

Jill DeWit:
Oh, yeah. You’re like, it’s just not improving. We’ve coached and counseled you to the fullest extent. Then this last one time, do you really want to work here, because then they could say we did everything we could. So, this is a career decision 90 days or 260 days for a lot of people.

Steven Butala:
Now is the time to make a fortune. If you’re a Land Academy member or a House Academy member already and you’re just in the middle range of, “I’m lukewarm about it, we’ve done a couple of deals,” now’s the time to do 100 deals.

Jill DeWit:
Yeah.

Steven Butala:
I couldn’t be more serious. We joke around a lot on the show just to try to make it bearable to listen to or watch. I am not joking around about this. Now is the time. There may never be, like I said earlier, another time in our life that is so conducive to this. We have record unemployment. We will have record unemployment. We will probably have record… Go ahead.

Jill DeWit:
Well, we have record an audience. The audience is huge right now too, by the way. What a great time. If everybody was doing great and it was Superbowl time, where everybody’s stuck on Superbowl, I’d say this is not the time, but right now everybody’s home, and a lot of people have money.

Steven Butala:
This virus has created an environment of fear of big cities, so any kind of heat map you look at, that’s fantastic for rural vacant land or mobile homes or any property. It’s just a universal real estate rule. The further you go out, the cheaper it is.

Jill DeWit:
Drive till you qualify.

Steven Butala:
Now everybody wants to go further out.

Jill DeWit:
Yeah.

Steven Butala:
Number three, this is like a perfect storm. Number three, there are more people now than ever that are successfully working at home. I don’t think a lot of that’s going to change, because it’s so much more affordable for employers. We’re employers in many, many companies, and we have a lot of people working for us. I never would have signed off voluntarily to send… All my greatest assets as a business owner all just went home. I don’t know what they’re doing. It scared the heck out of me, and I think probably 95% of them just passed with flying colors. They’re doing great. Their numbers are great. They’re probably happier, which means I’m happier. I see that trend continuing.

Jill DeWit:
Exactly.

Steven Butala:
And it’s more affordable. So, all of this is a perfect storm of buying rural, vacant land, or if you’re into houses, buying houses that are further out, for really inexpensive amounts of money. Then finally, and I alluded to it with recessionary unemployment, we will have… I think we do now have the largest amount of unemployment.

Jill DeWit:
Isn’t it one in five? I think I read one in five.

Steven Butala:
The Great Depression in 1929 wasn’t, not that high. We’re in the middle of it. What is it? We’re recording this on May 7th. It will air I guess next week. All those things add up to a huge, huge opportunity. Why? People need money too. So, this mail campaign scenario that we’ve developed in the Land Academy, House Academy members know all about, your yield, your mailer yield should dramatically increase. It should double at least because people just want money. Go ahead, Jill.

Jill DeWit:
And the old buyers are coming back. The old sellers, I should say, the people that told you to go jump in a lake six months ago are coming back. Now they’re like, “Ooh, maybe I should call that guy again.”

Steven Butala:
If you don’t have a specialization, you should find one and get serious about it. Put it as schedule, get the mail out, pick a location that you think make sense. If you’re in Texas and you like Texas, getting the outskirts of some of the bigger cities. I just used Texas as an example. Now’s the time to really, really specialize and really do it.

Jill DeWit:
I was going to add what we talked about the other day at the kitchen table, which is if you’re not working on something right now, you’re nuts. If you’re not using this time off opportunity to really come up with another way to put food on the table, what better use of your time?

Steven Butala:
Yeah.

Jill DeWit:
For a lot of people, they have the ideas, they have the knowledge, it’s all in their hands, they just can’t act on it.

Steven Butala:
Yeah.

Jill DeWit:
I’m just going to say you’re going to have to do whatever it takes to act on it. We were all there once. We were all afraid of making that first decision about buying that first property. So, my answer to that is buy a great property. Don’t make a wishy-washy decision. Don’t have any doubts in your head. Make sure it’s a fantastic property. How do you do that? You have a lot to choose from. Like Steven said, get the mail out there. I see a lot of people doing this right now, by the way.

Steven Butala:
So do I.

Jill DeWit:
Even in the last week, I was blown away at our-

Steven Butala:
Me too.

Jill DeWit:
We have a direct mail company called Offers 2 Owners. It’s offers and the number two owners.com, and I’m looking at the numbers of the mail that’s going out, not individually, but as a whole. I’m like, “Holy cow.” People are like, and they’re listening and they’re doing it and they’re getting properties, and that’s the best way and the easiest way to do this right.

Steven Butala:
Yep. I don’t have anything else to say. You said it the nicest way you could possibly say it. I had an old boss tell me one time, “This either happens to you by the time you’re 40 or not.” It was a guy-to-guy. I was young, really young. I don’t think that it’s by 40 by any stretch. I think now you can be 60 because of the way the internet is, but I do think that this is the sentiment from what he said applies here. You’re either going to do this right now or you’re not, and if you don’t do it right now, you’re making excuses for yourself. Jill’s just said it the nice way. I’m not going to be that nice.

Jill DeWit:
In other words, get off your rear and do it.

Steven Butala:
Yeah, get the mail out. As Luke Smith, one of our advanced members who has a show on YouTube, constantly says, “Just get the mail out. Then everything else falls into place,” because you don’t have a choice. If your phone’s blowing up, you’re going to have to pick some deals and do them.

Jill DeWit:
Exactly. Happy you could join us today. Every Monday, Wednesday and Friday we are right here on the Land Academy Show. Tuesdays and Thursdays you can find us on the House Academy Show.

Steven Butala:
Tomorrow the episode on the House Academy Show is called We Will Never Know the Very Bitter Bottom of This Recession. Why does that matter? It’s just another reason to sit around and wait to pull the trigger on something. You don’t need to know where the bottom is. It’s going down. Let’s just say that. You are not alone in your real estate ambition.

Jill DeWit:
Cool.

Steven Butala:
Yeah.

Jill DeWit:
That was good. We got our point across. I hope we got our point across.

Steven Butala:
You know what’s going on in our life right now? We’re doing a lot of real estate deals, and so that leaves a little less time and energy for Land Academy.

Jill DeWit:
Everybody should have that, to be like, “I’m doing so many deals, that leaves a little less time for family.” Just kidding. “Or eating.”

Steven Butala:
Yep, exactly.

Jill DeWit:
“Or binge-watching.” There we go. That’s good.

Jill DeWit:
The Land Academy Show remains commercial free for you, our loyal listener. So, wherever you’re watching, wherever you’re listening, please subscribe and rate us there. We are Steve and Jill.

Steven Butala:
We are Steve and Jill. Information-

Jill DeWit:
And Inspiration.

Steven Butala:
To buy undervalued property.

If you enjoyed the podcast, please review it in Apple Podcasts . Reviews are incredibly important for rankings on Apple Podcasts. My staff and I read each and every one.

If you have any questions or comments, please feel free to email me directly at steven@BuWit.com.

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

I would like to think it’s entertaining and informative and in the end profitable.

And finally, don’t forget to subscribe to the show on Apple Podcasts.

Advice Current Members Have for New Investors (LA 1148)

Advice Current Members Have for New Investors (LA 1148)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Hi.

Steven Butala:                   Welcome to the Land Academy show, entertaining land investment talk. I’m Steven Jack Butala.

Jill DeWit:                            And I’m Jill Dewitt, broadcasting from sunny Southern California.

Steven Butala:                   Today, Jill and I talk about advice current members have for new investors. Jill and I did a survey. Well Jill did a survey. I did nothing. I just learned about that there’s a survey.

Jill DeWit:                            Yeah, we do this every year by the way.

Steven Butala:                   And one of the questions is what is your best piece of advice for anyone just starting out, and more than a hundred people piped in, so which is a pretty good number. So we’re going to take some of the highlighted answers and the advice that some of our successful members have and share it.

Jill DeWit:                            It’s really good.

Steven Butala:                   Before we get into it though, let’s take a question posted by one of our members on the landinvestors.com online community. It’s free.

Jill DeWit:                            I peeked and saw this really isn’t kind of a question. This is kind of an update and I think it’s cool. And I remember you guys, Eric and Abby said, “Hi Jack and Jill. I just want to give you guys a quick update. My wife and I joined Land Academy a year or so ago and we just completed a 100 deals, 74 for cash, 26 on terms and then there’s a report here. We can go in and see what they did. We feel grateful and wanting to thank you so much for sharing this business with us. We’re also looking forward to Car Academy. Please keep up the good work. Best, Derek and Abby. Thanks you. Yeah.

Steven Butala:                   A hundred deals in a year.

Jill DeWit:                            Isn’t it amazing? This is people don’t, people look at me like I’m nuts and it comes, it’s going to come out and this, this, the surveys are reasonable results. But I’m like if you can do one, you can do 10 and if you can do 10 you can do a 100 and Abby and Erica just have proven that.

Steven Butala:                   Car Academy’s going to come out in the first quarter of 2020 and what’s taking so long as we’re building a website. so you can go in there and very simply it’s a very simple website. The backend is very complicated, but it looks simple like Google where you can say in zip code eight five two five eight I would like to know, all the information for make and a model.

Steven Butala:                   So let’s say a Honda Civic from the years, model year 2015 to 2017 and how many are there? Click the button. It says there’s 471. Do you want to download the data? Yes I do. And you download it just like a Land Academy and House Academy and you have all their information including their phone number. And so you can send them offers and you do the research. It’s very, very simple. It’s just like the other House Academy, Land Academy. You do the research on what you want to send an offer and use offers to owners to send it or call them. All the data’s there. It’s actually pretty cool. It’s just taking a while to build out the website. The education part’s not hard.

Jill DeWit:                            Thank you for that plus.

Steven Butala:                   Today’s topic, advice current members have for new investors. This is the meat of the show.

Jill DeWit:                            I love this. This makes me so happy. We do this at the end of the year and it helps us. A, figure out what training and things. I mean a, it’s, well two parts. A, we know we’re on the right track and then B, it helps us plan for the next year on what training or what new programs or what new tools or resources people need to grow their businesses.

Jill DeWit:                            And I love this question and it’s so it’s, it’s just wonderful. So let me just dive in. Okay. So the question is what’s your, flat out, what is your best piece of advice for anyone just starting out. And it was a free field. You could type in anything you wanted. And some of these are funny too. So I, I’ve got several. Once you decide to move forward, do not give up, make it work. Just start mailing and figured out as you go.

Steven Butala:                   I love that, you know, that’s, I’m a big planner. But man, I have, I believe that, the sooner you fail, the sooner you succeed. Then I, whenever we start something out new, whenever I personally start something out new, I usually start stuff new. Get in there, shake the cage, see if it passes all my tests, kick it around it, really abuse it to see if it, whatever it is. Whether it’s buying a company or buying a piece of real estate. And when it passes all my tests and it’s actually going to be viable and this is like one out of 10 times usually. Then Jill starts to hear about it and so I think that’s a good-

Jill DeWit:                            It’s true.

Steven Butala:                   A good model to use. Well it works for me anyway.

Jill DeWit:                            Thank you. Watch the videos more than once, but don’t hold off too long on the first mailer, have a good understanding, but on the job training, is the best type of training. I believe in that too.

Steven Butala:                   There’s hundreds of these, Jill’s just highlighted the ones-

Jill DeWit:                            I’m just picking up my favorites here, but you’ll start to see the theme here. Do your pricing research and get your mail out. Everything else will take care of itself.

Steven Butala:                   That’s true.

Jill DeWit:                            I love this is a different one too. If capital constrained, use deal funding. Yeah.

Steven Butala:                   If you send a mailer out and you don’t have any idea what you’re doing, but you price it right, that meant the calls and the mail is going to come back. And then you have no choice.

Jill DeWit:                            Right.

Steven Butala:                   You have to deal with it.

Jill DeWit:                            Exactly.

Steven Butala:                   You have to answer the calls and get those deals done. And again, maybe you screw it all up the first time. Who cares? Who cares?

Jill DeWit:                            Well, right here, watch the videos. Do what it says. Send loads of mails. Listen to, watch the podcast, read the forum posts. Gain confidence that this really works, and it does.

Steven Butala:                   That’s good adice.

Jill DeWit:                            This is my favorite, one of my favorites. Send mail. Do it. Pick a damn county and send mail. That’s the only way to start. lol.

Steven Butala:                   That’s true.

Jill DeWit:                            I love it. So many people overthink it. Yep. And like this one. Educate yourself and learn the process, but don’t overanalyze. Get the offers out. That’s so true. Accomplish something every day.

Steven Butala:                   That’s true.

Jill DeWit:                            Set goals to get a mailer out within one month.

Steven Butala:                   Maybe one week.

Jill DeWit:                            Read the forums, write down questions. Perfect. Stay focused. Just do it. I knew zero of real estate two years ago. One year only with Land Academy and just constantly learned every day and make the leap and do it. Just follow the system. Don’t try to change it and just get offers out. Use the Land Academy community and experience investors for advice.

Steven Butala:                   Heck yes.

Jill DeWit:                            That’s huge. Who has that? I mean that’s what’s so nice and it’s free. I mean you can go on our online community right now on landinvestors.com and ask any question you want.

Steven Butala:                   There’s bigger pockets too. Biggerpockets.com. If you don’t know about that, it’s a, it’s a large-

Jill DeWit:                            Great for houses.

Steven Butala:                   Landinvestors.com yeah.

Jill DeWit:                            Listen to as many podcasts and episodes as you can. Take notes, start making an outline of what it will take to go from having no properties to selling your first one. Add each step that will need to happen and watch the videos related to that step and then when you feel like you could handle that, handle it, send them, send the offers. I love it. It’s your business. If you’re not sure how to start, learn from others, podcasts, forums, etc cetera. But do something to get started aside from learning. Do something every day.

Steven Butala:                   This is a business.

Jill DeWit:                            Yeah.

Steven Butala:                   You know, you could buy a convenience store.

Jill DeWit:                            It’s true.

Steven Butala:                   Or he could do this.

Jill DeWit:                            Right. Send mail, send mail, send mail. This is so good. I’ve told this, I’ve told this to so many people that have asked me, including current members, I’ve recommended if you follow the program, do exactly what it says. There’s absolutely no way you can fail. That is a powerful statement. Only a lack of trying or personal excuses prevent you from making money using this program. That great. These are anonymous. By the way. This survey is totally anonymous, so we don’t know who this is, who wrote these things. So, and that’s why I think too, we get real answers. People can really speak freeware freely and I love it. Great.

Steven Butala:                   There’s a lot of people, especially like you listen to this podcasts and we answer questions, obviously, on every episode. And so people like one a couple of days ago was, a, hey, you know, you guys ever consider sending out emails instead of mail? What the hell is that?

Jill DeWit:                            Right. I know.

Steven Butala:                   This is exactly what this person just said. Really the for the first time out, get a deal done, my way, trust, trust me on this.

Jill DeWit:                            It’s true.

Steven Butala:                   Get a deal done my way, and then get as creative as you’d like.

Jill DeWit:                            Once, once you learn, complete the program, go on every Land Academy weekly call, watch a ton of their podcasts. Start. Mail Trust. The process is exactly as Steven and Jill describe it so you’ll have proof of concept in no time after you mail. It’s a numbers game. Send mail.

Steven Butala:                   It’s a numbers game.

Jill DeWit:                            Yep. Just do exactly what the course says and send out mail. Stop asking questions.

Steven Butala:                   See a trend here?

Jill DeWit:                            You don’t know this business model yet. The course works, sit down, shut up and do what it says. That’s what he said.

Steven Butala:                   How do you know it’s a he?

Jill DeWit:                            Oh, that’s true. I don’t know if it’s a guy or a girl. But I think it’s awesome. I like this one too. This is not a hobby. Make a plan and hit your goals. There will be setbacks. Make sure there are way more successes than setbacks.

Steven Butala:                   All right. Here’s some fun, non-highlighted ones. Ready. Fire. Aim. Don’t worry about it. Your homework. Do your homework and follow the program…. Know your why. I, wow that’s good advice too. Focus on one thing. Read the fine print. What’s read the fine print?

Jill DeWit:                            I don’t know. I think that’s funny.

Steven Butala:                   I think that’s somebody’s joke.

Jill DeWit:                            Yeah.

Steven Butala:                   Just start. Just dive in. Be patient and diligent and believe in yourself. That’s probably a woman.

Jill DeWit:                            Why do you say that?

Steven Butala:                   Because they don’t have patience. Patience is not part of this. Barreling through it. Like a, you know, a hundred miles an hour as part of this. Just do it.

Jill DeWit:                            Just fricking mail it already. At least for me, I wish I had started sooner. I want to know everything. Well I don’t, and it’s okay. I’m learning along the way. Buyers and sellers are understanding if you’re honest and yeah, be honest and transparent.

Steven Butala:                   That’s really good advice.

Jill DeWit:                            Thank you. That was good. Somebody really listened to me on that one.

Steven Butala:                   Patience and consistent effort.

Jill DeWit:                            Send mails early as possible.

Steven Butala:                   Do you think this patience? This never considered, I never considered that. That’s two people now that has said patience.

Jill DeWit:                            Well sweetheart, that’s my day is filled with patience.

Steven Butala:                   I mean there’s a lot of moving parts to this.

Jill DeWit:                            There are. But you got to be, because you know there’s, there’s a lot of things you’ve got to figure out. I mean, it’s not just, I mean, you’re picking and counting. There’s a lot that goes into that. You’re pricing it that a lot that goes into that. It goes out in the mail. You got to think about the calls coming in, gotta be writing for them. Picking and then selecting the right ones to buy and then posting it for sale. That’s you could, there’s a lot of little things. We have a total roadmap for you, obviously, and help you and we’re here to help you literally, you know, we’re here all. We’re not going to let you fall that far all the way. But you’ve got to have patience and get through some stuff. Some of the stuff doesn’t come easy to everybody. I think that’s where the patients comes in.

Steven Butala:                   There’s a lot of moving parts. It takes a while to learn. But you know, I don’t think this, this requires patience. There’s a lot of, it’s, you know, it’s probably complicated for somebody who’s brand new. I don’t know.

Jill DeWit:                            But you know what, every time I say that we are, we are pleasantly surprised. We know people that were brand new, they didn’t know Excel and they’re in the advanced group. So I’ve stopped questioning and I, and I never really did. But if you, if you’ve got the motivation, you can, you can do anything.

Steven Butala:                   Buy as much as you can. Say yes to every deal and get outside money if you need to complete the transactions. Everything sells eventually and it’s best to make 25% of a bunch of deals rather than 0% of none. If that makes sense, also take time to get a professional web presence.

Jill DeWit:                            So many people have blank-

Steven Butala:                   Poopy.

Jill DeWit:                            Poopy websites. That’s kind of funny. Stick with it. Dedication.

Steven Butala:                   Find a mentor. This is good stuff Jill.

Jill DeWit:                            It’s really good. So I hope you get, you get, you get the, you get the gist of it here. It’s really, Hey, and you know, that was one of the things we talked about I think a week ago on one of our shows. When we talked about the results. The majority of the people did dive in. Like we suggest get a mailer out within the first month or the first like 60 days and that’s huge.

Steven Butala:                   There it is-

Jill DeWit:                            Once you get going.

Steven Butala:                   We have a little bit of time left. Here’s another question. If you’ve completed a deal, how long did it take for you to complete your first deal. Within a week? 0%. Within the first month? 16%. One to three months? 55%. Three to six months? 17% Six to 12 months? 4%. In a year plus? 6%. The vast majority of the people, did it, vast majority, in the first one to three months. So what does that tell you? You got to get a mailer out. You have to get a mailer out, hopefully like the third week. We have really successful members get it out the first week.

Jill DeWit:                            Well, I have to say too, by the way, how many, look how many were comfortable enough like ready to go?

Steven Butala:                   Right.

Jill DeWit:                            It’s great. I love this stuff. This makes me happy.

Steven Butala:                   Here’s the, this is pertains to exactly what I just said. If you sent a mailer out, how quickly did you send out your first mailer after signing up? Within the first week? 7%. Within the first month? 47%. One to three months? 33%. And then it dramatically goes down. We could do this all day.

Jill DeWit:                            We could. I think we’ve made our point.

Steven Butala:                   The point is send some mail out.

Jill DeWit:                            Yeah. And, and, and it, it’s unanimous. This is 2020. Congratulations. We’re all here. We’re here. We’re here to help you. Happy You could join us today. Every Monday, Wednesday and Friday. You can find us right here on the Land Academy show. Tuesdays and Thursdays, zip on over to catch us on the House Academy show.

Steven Butala:                   You are not alone in your real estate ambition. I missed the line.

Jill DeWit:                            You did great. No one’s going to notice. The Land Academy show remains commercial-free for you, our loyal listener. So wherever you’re watching, wherever you’re listening, please subscribe and rate us there.

Both:                                     We are Steve and Jill.

Steven Butala:                   Information.

Jill DeWit:                            And inspiration.

Steven Butala:                   To buy undervalued property.

 

If you enjoyed the podcast, please review it in Apple Podcasts . Reviews are incredibly important for rankings on Apple Podcasts. My staff and I read each and every one.

If you have any questions or comments, please feel free to email me directly at steven@BuWit.com.

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

I would like to think it’s entertaining and informative and in the end profitable.

And finally, don’t forget to subscribe to the show on Apple Podcasts.

Investors Newsletter – Volume 6

It’s September already?

If you’re like us, the month change came as a HUGE reminder that we’re getting close to 2020! Now is a great time to reflect on where you are in your year, reassess your goals, and most importantly – send out mail!

I know we sound like a broken record, but so much has happened in the past month and we have so much great information to share here, including new templates and things to help you on your journey to financial freedom.

Read it, bookmark it, share it (please, share it!) and feel free to let us know if you have any feedback, content suggestions, or questions!

Read More

Run to the Bank Notary Close Title Insurance Afterward (LA 1063)

Run to the Bank Notary Close Title Insurance Afterward (LA 1063)

Transcript:

Steven Butala’:                  Steve and Jill here.

Jill DeWit:                            Happy Friday.

Steven Butala’:                  Welcome to the Land Academy Show, entertaining land investment talk. I’m Steven Jack Butala.

Jill DeWit:                            And I am Jill DeWit, broadcasting from gorgeous, sunny southern California.

Steven Butala’:                  Today, Jill and I talk about a run to the bank, notary close, and then going to get title insurance afterward, after the property’s in your name.

Jill DeWit:                            This sounds so weird, but you can do this.

Steven Butala’:                  And it’s not-

Jill DeWit:                            It’s okay.

Steven Butala’:                  Yeah, it’s not complicated.

Jill DeWit:                            Right.

Steven Butala’:                  It’s just a step-by-step process, and it accomplishes one of the most important things in a real estate transaction that you could ever hope for, which is speed.

Jill DeWit:                            Yup. Also, just getting it done.

Steven Butala’:                  Time kills deals.

Jill DeWit:                            Yes, it does. Sometimes you have to be scrappy.

Steven Butala’:                  Especially with certain personality types. Certain personality types, meaning sellers, really need to get things done quickly. They need money and there’s a lot of different reasons, but it’s a such a good property. It needs title insurance.

Jill DeWit:                            Right.

Steven Butala’:                  This is a little product that Jill and I together devised. I’m not afraid to say it over a pretty nice bottle of wine.

Jill DeWit:                            Thanks.

Steven Butala’:                  Before we 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:                            About that bottle of wine, by the way, just pause, I’m not so into wine anymore. But you know what? I’m developing a good taste for this tequila.

Steven Butala’:                  Oh my gosh, Jill.

Jill DeWit:                            I’m not kidding. I never-

Steven Butala’:                  You’re my dream girl.

Jill DeWit:                            Oh really? But I’ve been learning. We have a new neighbor who has a strong affection for good tequila. And I thought all tequila was bad, because we all have bad experiences and bad hangovers and bad party situations and doing stupid shots of tequila. Well, I didn’t know until recently you don’t have to drink all tequila that way. I didn’t know you could put a nice ice in a nice glass, pour tequila in there and just enjoy it and sip it.

Steven Butala’:                  Yeah.

Jill DeWit:                            And I like the caramel-y ones. I’m here to tell you I’m not a smokey tequila one. I’m learning that too. How funny and why I love that. This is my version of being … I can’t be a wine snob, but I can like tequila.

Steven Butala’:                  Here’s the new name of this show.

Jill DeWit:                            Uh-oh (negative)

Steven Butala’:                  Jill goes to a tequila tasting.

Jill DeWit:                            That’s right. That is the new name of the show.

Steven Butala’:                  Gets carried home.

Jill DeWit:                            Thank you.

Steven Butala’:                  Steve carries her home.

Jill DeWit:                            That was good. Okay. Alright, so back to the question. Robert wrote, “I purchase a parcel in the Joshua Tree area last year. The previous owner had purchased a parcel from a tax deed sale. I sold the parcel double what I bought it for a short while later.”

Steven Butala’:                  We do this all the time. Exactly this situation.

Jill DeWit:                            Yep. A few months later after the sale, the person who bought the parcel from me asked if he could have the previous owner sign a notarized affidavit so that he can get title insurance. The question is, do I need do this? I would prefer not to bother with the previous owner, but I would if you all agree I should.” And that looks like some of our members … I know we’re going to have our own opinion here in a second, but-

Steven Butala’:                  Kevin nails it here.

Jill DeWit:                            Kevin-

Steven Butala’:                  Kevin our moderator.

Jill DeWit:                            Our moderator already re-wrote in and gave him a really good answer. Kevin wrote, “Rob, this happens sometimes in the property that we self close as resold. The title company can request the affidavit, and I let them handle it. I think it looks more official, et cetera, when it comes straight from the title company.” I agree. “I would avoid doing their legwork for them.” There’s another good reason. “Provide them the contact information and let them do the rest. Good luck on this.” And that’s perfect. That’s exactly right. That’s how we do it.

Steven Butala’:                  Somebody buys a property at a tax sale, they sell it to you, good for them, mark it up a little bits, resell it for twice what you paid. Good for you. The person you sell it to, even better. Sell it to somebody else for probably retail value and that person expects title insurance, which I understand. The title agent, if they’re good, is going to send you a tiny little packet, probably requires two, maybe three signatures, that just says, essentially if you really read it because we get these probably once a month … You can imagine on almost 16,000 properties we get stuff from 2004.

Jill DeWit:                            All the time, right.

Steven Butala’:                  And if you really read the fine print, and I have, what it says is you are signing this affidavit agreeing that you own the property and that you own this company that owns the property during this time. So, I’m not a big sign without reading person at all. I read everything, and that is well within my risk threshold to sign.

Jill DeWit:                            Just I promise I owned it from the day to this date, and that’s me done.

Steven Butala’:                  As you’ll see in a second this, this question is very tied to this topic. Today’s topic, run to the bank, notary close, and then get title insurance afterward. This is the meat of the show. Big smile on her face when I read her this title and what I really thought it meant. Jill, like this going on right now, you want to fill us in?

Jill DeWit:                            Yeah. So, basically long story short, have a seller come to me. And she needs the cash. And I looked up the property, and we agreed on the price and everything’s good to go. So, I’m doing my due diligence and bless her heart, I found out she owns two properties she didn’t even know. And again, she needs the cash. So normal circumstances, she’s in a hurry, her husband passed on, I’ll tell you right now. And she’s actually ill herself, and I really want to help her out. That’s why she’s reaching out because of the service we’re providing. And I will follow through and I will pay her cash and I’ll get it to her quickly cause she really needs it. So, I looked at the property, did all my homework. It was like several calls of the county too just to confirm. I need to make sure because on the deed … I’ll get into deed … Well, let me give you the big picture, then I’ll get into the details.

Jill DeWit:                            So anyway, she needs a close. I found the other property. I called her, let her know that I’m happy to buy both. I’ll double the price, because that’s who I am. She’s like bless you, child kind of thing. That’s really kind of it, because she’s really elderly. And I said, “All right, we’re going to do it on Friday.” By the time it airs it’s like today, and we’re going to get it done right away. Pay her the cash. Now, behind the scenes, what’s really going on is I want to title insurance, because these are really good properties that I would normally want to run them through escrow and spend the time and get title insurance. So when I go to sell them, I’m good to go.

Jill DeWit:                            But you know what? I made a commitment to her, and she really needs the money. So I’m following through with what I am doing, and it’s taken a little more time, a little more work and it’s going to cost me more in the end. But I’m falling through, again, with my commitment to her and making it easy. So, we’re doing our own self close on these properties. Then, I’m going to go … Once it’s all done, I’ll go back and open up a official title, escrow, and get a policy issued on both properties.

Steven Butala’:                  And so what will end up probably happening is that when we seek this title policy out, the affidavit that we were talking about earlier in the question there, that will get sent to this to our seller, and she’ll sign it.

Jill DeWit:                            Sign one more time.

Steven Butala’:                  And because Jill’s being so nice about this … You know, you have a choice when you get these affidavits. You can put them in the shredder. You can say, “I sold the property.” It’s what we were talking about yesterday. There’s crooks all around you. You don’t have to … You can choose to be not a stand up guy and shove that stuff in the shredder. You already made your money. You doubled your money on a piece of property. That’s extraordinary. And you only put yourself at slightly more risk by signing this thing, so everything that you would ever really truly be taught in Wall Street Business School is you have nothing to gain to sign this document except doing the right thing and being a good standup person. And so she will sign this because probably Jill’s established her trust to the point where Jill’s asked her to do it, and she’s got a cashier’s check.

Jill DeWit:                            Right. What’s interesting that people don’t realize is that you can do it this way. And this is one of the reasons that you would. Maybe it’s like run to the bank situation too. She needs her money more than I need to acquire the property. She’s not going anywhere. There’s some special circumstances. I had to jump figure out some of the title issues and make some extra calls. There’s some special things that I’ve got to do that I know how to do. So, it’s not problem for us to do it this way. But a lot of people, they might like go, “Holy cow.” You get these calls, and then I need to go buy this property right now before this guy changes his mind.

Steven Butala’:                  Yeah.

Jill DeWit:                            That would be a reason that you do this too. You know it’s a property that you would do all your dull and due diligence. You feel really good about the ownership. You don’t think there’s anything unusual going on. You can verify it all. So, you might really quickly do your own self close and then go back. That’s what a lot of people do. And then get tile insurance later on. The thing about the title insurance is these two particular properties, they are set up to be built on someday. Do I think that my buyer is going to be that kind of a person right out of the gate? I do not. Most of my buyers, we still do primarily wholesale, so most of my buyers are not the end user. I price them that way. I want them to make even more money. It’s great. But it will make the property more valuable, when I’m all done when I put it out there for sale, it has title insurance. That’s the reason why.

Steven Butala’:                  Oh, way, way, way more valuable. Probably twice as much, twice as valuable.

Jill DeWit:                            Right.

Steven Butala’:                  I would say close to that.

Jill DeWit:                            Exactly. So, I’m buying these two properties. I’ll tell you my numbers right now. I’m buying each total for $4,000. So, I will probably sell them for probably $10-12,000 each. You think lower? Eight?

Steven Butala’:                  No, I think they’re … One property in particular is worth $80,000 wholesale.

Jill DeWit:                            Well, my 10 to 12 is pretty good then.

Steven Butala’:                  No, it’s 80,000 wholesale.

Jill DeWit:                            I don’t know about that. Okay. Okay. I didn’t like that. If you think so, I get it.

Steven Butala’:                  Yeah, I’ll support that if you’d like.

Jill DeWit:                            Okay. Anyway-

Steven Butala’:                  I have to ask you, how did you come up with that number?

Jill DeWit:                            My offer price?

Steven Butala’:                  No, I came up with the offer price number.

Jill DeWit:                            Well, I backed it into your … the way you usually price things.

Steven Butala’:                  Yeah. I was just jumping up and down and when these came in.

Jill DeWit:                            Oh, okay. I was just jumping up and down to sell them for …Ii knew 10 to 12 easy, because I know the area.

Steven Butala’:                  10 to 12 each?

Jill DeWit:                            Yes.

Steven Butala’:                  All right, so … All right, so-

Jill DeWit:                            We’ll talk.

Steven Butala’:                  I think we’re good.

Jill DeWit:                            Excuse me while we have a business discussion.

Steven Butala’:                  We got to wholesale these out to our existing group, I think, and net 30-40,000 and feel great about the fact that they’re easily worth 80, probably wholesale on top of that. And I’d walk away happy.

Jill DeWit:                            Okay. You know what? This should be a show.

Steven Butala’:                  This is a show.

Jill DeWit:                            No, seriously. It is a show. I’m just saying, here’s what we should do another time for a show. You and I should both sit down together and look at a property and talk about it, about what we think we are going do with it, what we’re going to sell it for, why, justify it, look at our numbers. That’s a show.

Steven Butala’:                  I’m taking notes right now.

Jill DeWit:                            I think that would fun.

Steven Butala’:                  Once these are purchased, we should do it in this venue.

Jill DeWit:                            That would be good.

Steven Butala’:                  Hey, we know your time is valuable. Thanks for spending some of it with us today anyway. Join us next time for another interesting episode.

Jill DeWit:                            And we answer your questions posted on our online community found at land investors.com. It is free.

Steven Butala’:                  You are not alone in your real estate ambition.

Jill DeWit:                            We could do that.

Steven Butala’:                  Every time a mailer goes out that’s a regular mailer for this, for what we do for this type of product, which was a regular mailer for this, I expect a tremendous amount of anger and hate. And then I expect someone who says, “You know what? I got to close this deal today.” And couple of people, not one, but maybe three to five people that are in this situation where they’re like, “Yeah, your timing is perfect. I just want to get out [inaudible 00:12:07]. Just let me know.” And then there’s a few negotiation deals. It’s really consistent. And this mailer’s been … we hit our numbers perfectly.

Jill DeWit:                            Yep. It is-

Steven Butala’:                  Are you happy with it?

Jill DeWit:                            I’m very happy. Wherever you’re watching or wherever you are listening, please subscribe and rate us there.

Steven Butala’:                  We are Steve and Jill.

Jill DeWit:                            We are Steve and Jill.

Steven Butala’:                  Information.

Jill DeWit:                            And inspiration.

Steven Butala’:                  To buy undervalued property.

 

If you enjoyed the podcast, please review it in Apple Podcasts . Reviews are incredibly important for rankings on Apple Podcasts. My staff and I read each and every one.

If you have any questions or comments, please feel free to email me directly at steven@BuWit.com.

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

I would like to think it’s entertaining and informative and in the end profitable.

And finally, don’t forget to subscribe to the show on Apple Podcasts.

There are Con Artists All Around You (LA 1062)

There are Con Artists All Around You (LA 1062)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Hi.

Steven Butala:                   Welcome to the Land Academy Show, entertaining land investment talk. I’m Steven Jack Butala.

Jill DeWit:                            And I’m Jill Dewitt, broadcasting from sunny Southern California.

Steven Butala:                   Today, Jill and I talk about how there are con artists all around you. And here’s the show that Jill and I talked about right before we started.

Jill DeWit:                            Yep.

Steven Butala:                   This has that potential to be so negative and we won’t let that happen.

Jill DeWit:                            Because that’s not who we are.

Steven Butala:                   We’re going to just give you our take on our industry and the land industry and the education industry and we’re going to laugh about it. And it’s not negative.

Jill DeWit:                            Nope. But we want you to be aware.

Steven Butala:                   Yeah.

Jill DeWit:                            And we’re going to talk about that.

Steven Butala:                   A couple of days ago, we had an interview with Travis Jenkins.

Jill DeWit:                            Yesterday.

Steven Butala:                   Yeah. Yeah. Yesterday. And he flat out said, I don’t know if it was in the after show or in the actual show, he said, “I think that you guys have an obligation to do the show like this to really, because you’re the ones who have the experience at all of it.” So we’ll get into it in a second, but-

Jill DeWit:                            I forgot that part.

Steven Butala:                   It was a good compliment.

Jill DeWit:                            It was nice.

Steven Butala:                   And this is my way of relieving my obligation to Travis Jenkins.

Jill DeWit:                            Nice.

Steven Butala:                   Before we 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:                            Jim W. wrote, “Hi, all. I’ve been selling lower-cost properties on terms without title. I’m closing my first larger sale with title and they are preparing a payoff deed to be recorded. I have heard we do not want to use a deed of trust as then you need to go through foreclosure to recover property if there’s any default. Is anyone familiar with a payoff deed and what is necessary if the buyer defaults? Thanks, James.” This is all your thing.

Steven Butala:                   A payoff deed? So he’s exactly exactly right. What he’s going down the path of doing a deed of trust. There’s two ways to sell property on terms with with seller financing. A deed of trust, which is very similar to how you would buy a house. The property gets recorded in your name. There’s a mortgage on it, and they have a lien. So in the case of a deed of trust here with land, it’s the exact same thing. That property goes into the new buyer’s name and you, the seller, are essentially acting as the bank and in between you is a trustee. And the deed of trust outlines all of this. In fact, it’s just like a car title. They’re actually on the actual deed so that when the property gets all paid off years from now, that pay off deed, just like you get a new title to your car, the Toyota Financial or whatever’s on there gets removed and would get removed as a seller and you get a pay off deed.

Steven Butala:                   That’s the mechanics of it. The other way is a land contract where I’m a seller. I sell a property to Jill. We sign a contract, the deed, property stays in my name until she pays it off. Then I deed it to her. And that way if you’re out of compliance, if she’s out of compliance in any way during the course of the deal, there’s terms and conditions in there and procedures about what happens. And essentially it’s if she’s 30 days late-

Jill DeWit:                            Whatever you outline.

Steven Butala:                   … for any reason, it’s over. I own the property and it’s all done. So you have to be real careful. If you’re listening to this, please pay attention to this. Every state and some jurisdictions like counties have rules about this and they have very, very strong opinions and a lot of cases they have case law to back up these opinions. So what I just described may work in some states, but what I described may not be appropriate at all. These are just the basic concepts of the two types of ways to deed property to people and provide seller financing. So please check your-

Jill DeWit:                            Check your state.

Steven Butala:                   And the contracts. Some states even go so far as to say you need to use this contract.

Jill DeWit:                            We prefer the latter and and we would only do them in the states that accept the latter because on the first part, right, you like that, which is true. Well, because the first part, if there’s so much to undo, that’s the whole thing.

Steven Butala:                   It’s expensive.

Jill DeWit:                            It really is. And I’ll tell you, truth be told, this is why we do not do this really at all anymore. I’d rather buy for cash, sell for cash, than have to babysit payments. Because it’s true. There’s a lot that goes into it. It sounds great. A lot of people like it because they feel they can sell property faster and higher. And probably, yes, at some point, you get in the end more money, but I’d rather have it double my cash right now and move on. I don’t need to wait three years to triple my investment at a hundred dollars a month and babysit the deal because there’s always something. “Oh, it’s Christmas. Can I move my date? Oh, I lost my job.” It’s a lot of work.

Steven Butala:                   It’s not passive by any stretch.

Jill DeWit:                            This is true. Yeah, there isn’t anything passive about it.

Steven Butala:                   I mean, here’s some Steve and Joel reality. Here’s some reality checks on this, on term sales. The default rate for rural vacant land is between 50 and 75%, sometimes 95%, in certain cases. The difference between rural vacant land and infill lots is that there’s an intended use and like we said it earlier in the week, the use of this property has already been mapped out. So people usually, when they buy property on terms, they go use it and so that they want to pay it off.

Jill DeWit:                            Right.

Steven Butala:                   People who buy rural vacant land for all different types of reasons on terms might lose interest in the whole thing in six months and you don’t want to get stuck holding… To have to spend… To foreclose on a property through a trust deed is on a low end, 1200. On the high end, 35 to $5,500. So in a lot of cases that’s more than the whole property’s worth.

Jill DeWit:                            And a lot of steps and a lot of work.

Steven Butala:                   Yeah.

Jill DeWit:                            Thank you.

Steven Butala:                   Yeah, that’s the whole deal. Stick to cash in the beginning. We could have just said that in the beginning.

Jill DeWit:                            This is true.

Steven Butala:                   Today’s topic. There are con artists all around you. This is the meat of the show. In this space that Jill and I have put ourselves into, for better or for worse, educating people about how to buy and sell real estate, there’s just a lot of crooks. And you have a choice. I’m making this as positive as possible and I would encourage you heavily to do this. What separates us and just about everybody else that I’m aware of it in this space is our experience and our education and our commitment to doing a daily show and our advice. And the fact that we do every single Thursday, multiple webinars for our members and on and on and on.

Jill DeWit:                            Transactions.

Steven Butala:                   And the services that we provide and the 16,000 deals that we’ve done should tell you, and I’m not selling anything here, that we’re serious about this. And we’re here to stay. I mean, we’re on episode 1100 almost now. And we have just as many weekly webinars. We started doing it in 2015. I think we missed one week, one or two weeks because of holidays. So there are other people who take this concept unfortunately and make it not legit. And in every case that I’ve seen this happen and it never ends up being a real threat to us, by any stretch, or our members. Because the type of members that we have see right through this stuff, anyway.

Jill DeWit:                            Good point.

Steven Butala:                   But what it ends up doing is for newer people, who really need the most help in a lot of different ways, confuses them.

Jill DeWit:                            It’s true.

Steven Butala:                   And in the worst case thing that can happen is they start down the… New people might start down this path, get some bad information or some information that from people that are just doing it halfheartedly and it ends their career because they don’t have a good experience with their first few deals. Or they get sold some stuff that’s too expensive, not land but education and all of it. So there are con artists all around you. And it’s not just this industry. It’s every single industry.

Jill DeWit:                            Everywhere. Exactly.

Steven Butala:                   I bet you a dollar wherever you work, you could sit there. If you really sit there, sit around and think about who’s basically a crook that I work with. Who’s a great person and who’s a crook?

Jill DeWit:                            This is true. Exactly. Exactly. And we’re only bringing it up because we’ve had a recent, a reminder to be on our toes about this and we just wanted to bring it to your attention. So I was going to say, be aware, like you just said, Steven. We all know where… You all kind of know. You have a sense. And like I said, it came to us recently and I thought I saw it, but I missed it, man. So I’m going back to my own instincts and trusting my gut a little bit more. I want you to trust your gut. And not just, just even in transactions, I’m even talking dealing with buyers, dealing with sellers. Everything. No matter what you’re doing, please trust your gut. You’ve got to do this. Do your homework. Take action before it’s too late. Don’t squash it down. I really want you to-

Steven Butala:                   Don’t see something that’s not there.

Jill DeWit:                            Yes, exactly.

Steven Butala:                   Women are famous for having this sixth sense about, no, something’s off, man.

Jill DeWit:                            Exactly.

Steven Butala:                   Men are famous for the exact opposite. Let’s just barrel through it and see what happens at the other end.

Jill DeWit:                            Right.

Steven Butala:                   And then it’s all ends in a fiery ball of tragedy. And the woman that’s standing next to him is going…

Jill DeWit:                            I tried to tell you.

Steven Butala:                   This didn’t feel right for me from the beginning. How many times you ever heard that sentence?

Jill DeWit:                            Right.

Steven Butala:                   This didn’t feel right for me from the beginning. And even men have it and they just try to see something that’s not there, both in real estate deals and then in dealing with various business partners and things like that. So just tread cautiously. Ask yourself a lot of questions. In a perfect world, if I were, I’ll tell you, here’s an example. Way earlier in my career, way before Land Academy was even a thought, I took almost a week long seminar on tax lien foreclosures in Las Vegas. It was very expensive, extremely expensive.

Steven Butala:                   It’s the only time I’ve ever kind of taken any online education that way. And the reason that I chose to do it and chose this guy, he’s a former owner of taxellis.com, was because I did, I don’t know, two or three months of research. I listened to, he had a show. He wrote a very, very intelligent blog as a writer. It was incredibly intelligent. And had crazy, crazy amount of experience. He had an airplane collection, which didn’t hurt anything, because he’s a serious pilot. So that’s lends itself some credibility. And he did tons and tons and tons of deals. His first name was John. I don’t remember. So I’d go to the seminar by myself.

Steven Butala:                   There’s probably 10 or 15 people in there. It’s not.. Just like our live events. I think there’s what, 20 or 30 people at our live events? It’s not a stadium full of people and I learned so much. I would’ve paid twice or what I… So that’s how Jill and I have set Land Academy up. We want you to feel like you are-

Jill DeWit:                            It is. Part of a tight community.

Steven Butala:                   It’s like I got so much value for my money, it’s silly. It’s silly. I would’ve paid twice as much for that. If that’s what you think at the end of all this, then I did my job.

Jill DeWit:                            Yep.

Steven Butala:                   And that’s how seriously I take this.

Jill DeWit:                            I agree. Thank you. My other thing I was going to say, my last point is, don’t be that person. And you might find yourself staring at a deal that you kind of scratch your head going, huh, I could probably get away with this. Or someone might bring you something that’s a little bit borderline, in your gut, let’s just say it, unethical. Don’t. Please don’t do that. Don’t be that person. I look at every deal, every transaction that way and there’s things that we flat out, we will not do. We will not. I’ll make half the money and do the right thing. We mean it when we say it, too, with our team. We’re like, “All right, everybody. We’re always going to do the right thing. Even if it cost more, whatever it is.”

Steven Butala:                   Here’s some red flags for me. This is just me. Other people do fantastic. They build a career on this. When someone asks me for money, “Hey, you want to put 50,000 bucks into this?” It sends out a massive red flag for me.

Jill DeWit:                            Right.

Steven Butala:                   Here’s the way around it. And here’s what Jill and I do all the time. “Hey, I’ve got this great property. Here’s the APN. I’ve got it under contract for this. I know we can sell it for Y, but I’d love your opinion, Steve. Do you want to invest in it with me? It’s just a one time deal. If it works, maybe we’ll do some other deals together.” So now I have control over the deal and they’re not blindly asking me for money, which for some reason it just sends me to the moon and everybody’s role’s defined. Maybe I’m the money person. Maybe they’re the manager on the deal. Maybe it’s the opposite. And so I’ve done a lot of deals on both sides that way and it seems to work out great. Do you have any immediate red flags when people come to you?

Jill DeWit:                            Well, yeah, I do. A lot of it is just kind of that. I need to see a deal. I need to really see a deal. Yeah, like you just said, don’t come to me like, “Hey, I need X amount. Don’t worry about it.” Well, I am going to worry about it.

Steven Butala:                   Here’s another really good example where there’s a guy in our group who is an accomplished Los Angeles County employee. And he has a tremendous amount of experience in the zoning and all kinds of stuff in there. So he came to us and said, “I’ve got several clients who are trying to find this property type.” So now I’m really sitting up straight and listening because he’s got a ton of experience. He’s actually got some real clients and he needs our expertise to locate properties that are very strategic. And he’s got it all spelled out in a spreadsheet and he wants to split it 50/50 and together we’re better.

Jill DeWit:                            Bingo.

Steven Butala:                   And so we’re immediately better and we both are set up to succeed based on what we bring to the table. He brings something that’s so unique to the table and I’d like to think we do, too. And it’s all based in experience.

Jill DeWit:                            Exactly.

Steven Butala:                   So we have several lines of business like this, and now’s not the time to bring it up, with members who have proven themselves-

Jill DeWit:                            It’s true.

Steven Butala:                   … and it’s cash flowing and they’re happy and we’re happy and they’re using their resources. We’re using ours. And in every case they brought something to the table where they’re already better at it than we are.

Jill DeWit:                            Right.

Steven Butala:                   And I’d like to think we did on our end, too. That’s not a red flag situation.

Jill DeWit:                            I would, for me, I’m going to end it on this. Our group is 99.999% awesome, trustworthy, fantastic. And I feel great about them.

Steven Butala:                   Yep. Next, we’re going to introduce-

Jill DeWit:                            And I’m very lucky.

Steven Butala:                   Yeah. I’m proud. I’m proud to be the ringleader.

Jill DeWit:                            Yeah.

Steven Butala:                   Next week, we’re going to do a show about the typical Land Academy member profile and I can’t wait. We’re going to interview some of our staff because they’re on the front lines. And I have a lot of questions. Some of the questions I have are like even with brand new members, what’s the difference in their personality type? And I think it’d be really interesting.

Jill DeWit:                            That’s a good show.

Steven Butala:                   Hey, we know your time’s valuable. Thanks for spending some of it with us today. Join us next time for an episode called Run to the Bank, Notary Close, and Then Get Title Insurance Afterward.

Jill DeWit:                            Interesting. And we answer your questions posted on our online community found at landinvestors.com. It is free.

Steven Butala:                   You are not alone in your real estate ambition. That crazy title that I came up with there. We’re going to talk about it tomorrow is based on an actual deal that Jill is doing that’s closing. Well, it’ll be closed by the time this airs, for sure.

Jill DeWit:                            Yep.

Steven Butala:                   It’s a really, really interesting deal. This doesn’t happen to us very often, but once in a while we do deals that are… This deal happens to be very financially feasible for us, but it also is really helping to seller out and it’s ensuring that… It’s just a little bit unorthodox the way we’re doing this deal, but we’ll share all the details. I find these deals extremely interesting.

Jill DeWit:                            Exactly. Wherever you’re watching, wherever you are listening, please subscribe and rate us there.

Steven Butala:                   We are Steve and Jill.

Jill DeWit:                            We are Steve and Jill.

Steven Butala:                   Information.

Jill DeWit:                            And inspiration.

Steven Butala:                   To buy undervalued property.

 

If you enjoyed the podcast, please review it in Apple Podcasts . Reviews are incredibly important for rankings on Apple Podcasts. My staff and I read each and every one.

If you have any questions or comments, please feel free to email me directly at steven@BuWit.com.

The BuWit Family of Companies include:

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https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

I would like to think it’s entertaining and informative and in the end profitable.

And finally, don’t forget to subscribe to the show on Apple Podcasts.

Member Travis Jenkins Land Academy Success Stories (LA 1061)

Member Travis Jenkins Land Academy Success Stories (LA 1061)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Hi.

Steven Butala:                   Welcome to The Land Academy Show, entertaining land investment talk. I’m Steven Jack Butala-

Jill DeWit:                            And I’m Jill DeWit, broadcasting from sunny Southern California.

Steven Butala:                   Today, we have member extraordinaire Travis Jenkins from I think Dallas, Travis?

Travis Jenkins:                   Houston.

Steven Butala:                   Houston, okay [crosstalk 00:00:18]. Travis is and has been our number one O2O Offers 2 Owners user and taken The Land Academy Program, in my opinion, to places that Jill and I have taken and really has used it as Jill and I intended for it to be used at like an institutional business level since the beginning. Travis, most of the questions that I have for you today center around that exact concept.

Travis Jenkins:                   Welcome, by the way. Thank you.

Steven Butala:                   We had the good fortune to have a little bit of a pre-show discussion, but when you joined Land Academy, did intend to use it as a super user and send out the level of mail that you’re sending out? Did you intend for this to be this successful for you?

Travis Jenkins:                   I hoped so. I saw the potential of the business, and I’ve been studying business models for several years and I used to teach business. I’m going to give you a very indirect answer. The goal was, yes. From a business standpoint, there is a value triangle and I saw that there is… this is one of the few business models where you can fulfill all three sides of a value triangle, which is quick, fast, and cheap.

Jill DeWit:                            Love it.

Travis Jenkins:                   Most times, you can either do it quick… I said quick and fast, so quality, fast, and cheap, that’s actually what it is, so you can either do it fast with quality and it’s not going to be cheap, or any of those other two sides. When you can fulfill all three of those sides, it puts you in a different stratosphere as far as a business is concerned. I owned a construction company, and so we sold value so we didn’t sell to the cheap home improvement remodeling, we sold to the quality-minded people, which meant we were not cheap, right?

Jill DeWit:                            Right.

Travis Jenkins:                   We always fulfilled those two parts of that triangle, and so that precluded us from slowing down during tough economic times because people with money still was doing remodeling. They were still doing remodeling. It’s just a way of looking at a business model. I saw that early on. I also systemized my business to where I didn’t have to work in it, and it may sound like I’m brilliant with it and I come up with that on my own [crosstalk 00:03:35]-

Steven Butala:                   You don’t sound brilliant. Don’t worry.

Travis Jenkins:                   Thank you for that, but I have to tell you that these ideas and these discoveries come from losing everything. I had built a very successful business, and then I lost somebody in my family and it took a very dramatic turn to where I wasn’t able to be present in the business the way I should. We were doing seven figures a month, and so that business wouldn’t operate or couldn’t operate the way that it needed to operate without me being present. Ultimately, I tried to get it back on track. Couldn’t, lost everything, and so went from being affluent, self-made, and I started out with nothing, so I made it on my own the first time. I thought it was the end of the world for me, and it was for a brief period of time.

Travis Jenkins:                   My discovery or my real growth came when I made it back, and then I had clarity that success in business is actually a very flawed process. It’s if you’re not making mistakes, you’re not trying hard enough, and so on a deeper level, I knew that. My real business acumen came when I had to make it. It took me 15 years to reach a level of affluence. After I lost it I built it back in 15 months-

Jill DeWit:                            Wow.

Travis Jenkins:                   And it’s not because I’m special, it’s because of a mentality and also the people that I surrounded myself with. I still had those connections. I still had the people that were willing to follow me for over a decade, and so I built on those things. I give you that background to say I’ve had my rear handed to me and that’s where my skills came from. My high level of assessing of what’s going on, of tracking, of KPIs, of all of those other things, and then I started mentoring. I built back a multi-million-dollar business and I built another one after that. Then, I started mentoring business owners because I really come to the conclusion that I only fit around other business people. If someone is not a business owner, they typically bore me because they have nothing to say that interests me.

Steven Butala:                   It’s such a different mindset, especially if they’re high up in a corporation. It just takes a totally different view of how things go.

Travis Jenkins:                   I didn’t agree with the victimhood mindset. I don’t agree with “Thank God it’s Friday”. Practically anything they say is absurd to me, and so I just started mentoring people and I thought, “Well, I love helping business owners”, and then I started mentoring high-level business owners. That’s kind of how I’ve got to a point where I moved from working in the business working on the business. That freedom to not work in the business anymore, one day I just said… I had the nicest office. I said, “Take my office.” My wife at the time is like, “What?” I said, “Take my office. I don’t need it anymore.”

Travis Jenkins:                   I just quit coming in, and through [crosstalk 00:07:48] systemization, I just had an awakening to where I was there and people asked me questions because I was there. I just systemized everything. I started writing out flowcharts. “This is how we turn the lights on. This is how we open the shop in the morning. This is how we do this.” For a little while, people would call and ask me and I’d say, “Look at the SOP. Look at the SOP.”

Steven Butala:                   We have nine lines of revenue right now, and I came to the realization about a year ago that when I show up in the office, I think we make less money, we’re less effective, and I just wasn’t providing operations value anymore, so now I run what we call, or what I call anyway, the think tank. I’m three or four or five months out front with these new products, and I agree with you on a personal note.

Steven Butala:                   This is the third time for me personally getting wealthy, and the first time was just terrible that I didn’t lose it all, but man, I’ll tell you, it took a punch to the gut. The second time, I knew I could get back on my feet again, but that first time that that happens to you, that’ll make a man out of you. It’s a tough thing to go through, but it was necessary for me, too, for some reason. I don’t know, I’m not sure why, but I totally identify with what you’re saying.

Travis Jenkins:                   You think it’s the end of the world because you [crosstalk 00:09:14]-

Steven Butala:                   Your identity is wrapped up in it.

Travis Jenkins:                   In order to be really, really good at it, you need to take it personal. Some people say it’s not personal, no, it is personal. It is personal. I eat, breathe, and sleep this stuff.

Steven Butala:                   So do we.

Travis Jenkins:                   The acumen level has to be there, and so acumen normally doesn’t come without you getting your rear kicked.

Steven Butala:                   How many properties are you buying? Can you give us some raw numbers? How much mail are you sending out a month? How many properties are you buying? What’s a typical deal look like for you? Then, where do you see it all in six months? I know how fast you’re growing.

Travis Jenkins:                   Well, I’ll throw around some numbers here and try to track as many things as possible. We did a little over 22,000 mailings in the month of August. I didn’t know that we were the number one when we were with O2O. That’s good to know. We’ve done 124,000 mail-outs. I don’t really track the response rate. I do in every other type business, and I don’t in this one because the sales lead gets better on the acquisition side, gets better with time, and so that… it’s always improving. The ROI on mailing is off the charts, so there’s no need for me to worry about that.

Travis Jenkins:                   The last six months has been us just trying to get out of our own way. It’s trying to set up staff members, SOPs, best practices. We moved from Trello to Airtable. Lost… major things fell through the cracks, deals, all kinds of stuff, and so it’s like driving a hundred miles an hour with your hair on fire. It’s a lot of fun, it’s very stressful, and it’s scary at times, but a good life.

Steven Butala:                   Jill and I, once the mail goes out, and this happens every month, we get some deals back in. Some of them rise to the top because they’re so amazing that we forget about tracking the statistics. This happened on Friday, it’s Monday now, but we get this property in and the woman didn’t know that she owned the property adjacent to it, and so Jill tacked on another couple of grand on the acquisition price because she [crosstalk 00:12:20]-

Travis Jenkins:                   She is so happy [crosstalk 00:12:20]-

Steven Butala:                   Because she rolls that way. We’ve created $350,000 of value this month so far, it’s like the 26th, so I stopped tracking the success rate after that happens also.

Jill DeWit:                            Travis knows, it’s because I’ll get calls… I still get calls from 2005. You can’t track that. I just found the letter and they’re so happy.

Travis Jenkins:                   I find myself… I’ve joined… there’s a call that I show up on sometimes. It’s an advanced call and sometimes I’m geeking out on stuff that everybody already knows there, but I can’t help but wonder if everybody understands how profound this lead generation source is to generate. I started Google when Google was brand new. We had pretty much perfected radio and TV in tracking conversions through unique phone numbers and stuff. I have a lineage. I’ve been in business for 28 years and so I was in business way before the internet and so the amount of time and effort that goes into generating this amount of leads on other platforms is off the charts and most people don’t realize it. I used to spend 130,000 a month on radio and TV alone-

Jill DeWit:                            Wow.

Travis Jenkins:                   And so we dominated in the home improvement industry. I spent a fraction of that on these leads, literally a fraction, and those leads are very fickle. They start going bad, they’re like fruit. I mentioned this to you guys. They have a lifespan of a day or two and if you don’t get ahold of them… We’re very focused on getting back with these people, asking the questions, all of those things. You don’t have those barriers in this business, and that’s a very, very big deal. This business allows people with a lower level of business acumen to get into it.

Jill DeWit:                            That’s a great point.

Steven Butala:                   What I love about this business model is that as a teenager and in my early 20s, I was always around manufacturing, which is such a fixed cost-oriented business. You got to plow in so much dough before you even get off the ground at all. What I love about this business is it’s almost a hundred percent variable cost. If for whatever reason you don’t want to send some mail out next month and you don’t want to buy some real estate next month, let’s say you want to go to Tahiti, I don’t care whatever your reasons are, I can’t think of a reason why you wouldn’t do it, but you can turn it on and off, and as you know, you can do this out of your back bedroom really effectively.

Steven Butala:                   It sounds kind of weird when you say it, but you have complete and total control over how much money you make and it’s predictable and consistent. I don’t want to sound like a commercial, but if there was a better business, I would buy it. I would be involved in it.

Travis Jenkins:                   I second that. The decades it took me to set up a business that runs without me, a couple of decades, so this business, there’s four stages of competence and I had to be in the fourth stage of competence of business within that industry and within business before I would let a business run without me or work remote. This business model, you can be in the early stages of competence, stage three, and work remote or collapse the overhead down. There’s just so many moveable things with this business model that a lot of people and don’t understand.

Travis Jenkins:                   The four stages is unconsciously competent, incompetent, which means you don’t know what you don’t know, consciously competent, and I’m sure you guys know this already, is you now know what it is you don’t know. Three is unconsciously competent, you know how to do something, you don’t know how to teach it. Then, stage four is consciously competent. You know how to do it and yo know how to teach it.

Travis Jenkins:                   You don’t need to be able to teach this business model to other people to start prospering and to start making the type of money that it took me eight years to make off of my business. I could go on and on and on about the many different benefits of this business model, but I completely agree with you. There’s just not anything out there that can hold a candle to it, and so that’s one of the reasons why I saw it for what it was early on. Just like I saw Google coming.

Travis Jenkins:                   I was on an airplane when I read about it in a magazine, and as soon as I landed I called my wife and I said, “You’re not going to believe this. We can capture customers in the buying cycle. They have their wallets out.” She was like, “Oh, that’s great, hon.” I said, “No, you don’t understand.” I had my laptop and I sat up a campaign and so we had tracking numbers back then. We used a specific phone number and that would tell me where that lead came from. The next day I had two leads from Google and I knew… this was that type of thing. When I saw the business model, I saw the potential there for what could happen. Bless you.

Jill DeWit:                            Thank you.

Travis Jenkins:                   I completely agree with you. It’s not a commercial, it’s a fact.

Jill DeWit:                            It’s true.

Steven Butala:                   I have business epiphanies all the time I charge into whatever room Jill is in [crosstalk 00:18:34]-

Jill DeWit:                            That’s true.

Steven Butala:                   And I explain it just like that and she says, “That’s great. Why don’t you just crack open a beer and sit down and calm down and try not to have a heart attack because it’s going to happen again in two hours from now?”

Jill DeWit:                            Exactly. It’s true.

Travis Jenkins:                   You need to start texting me with those ideas [crosstalk 00:18:51]-

Jill DeWit:                            I will [crosstalk 00:18:51]-

Steven Butala:                   Yes.

Jill DeWit:                            I will tell him that.

Steven Butala:                   Yeah, we should take it out on each other, Travis [crosstalk 00:18:54].

Jill DeWit:                            Exactly.

Travis Jenkins:                   I get it, I get it. You need somebody to disappear off the end with those things. My strength and weakness is I’m myopic at times. I will drill into something and I will stay on it and stay on it, and I’m a right brainer, so I train myself to do that. Most right brainers don’t want to do things like that. I completely understand where you’re coming from.

Travis Jenkins:                   Getting back to your question earlier, we’re stabilizing at right around 150 a month in revenue. We’re very, very close to jumping to those next levels of 250, 350 a month-

Jill DeWit:                            Awesome.

Travis Jenkins:                   I fully expect and I’ve told you this before, I expect that we’ll be at a million a month hopefully within the next six to eight months.

Jill DeWit:                            Love it.

Travis Jenkins:                   Again, there’s no throughput issues in my construction company if we sold $5 million worth of… or 2 million tomorrow. I couldn’t produce a million tomorrow, or 2 million or 5 million. I can sell a million or 2 million tomorrow without having a crew of 40, right?

Steven Butala:                   Yeah.

Travis Jenkins:                   There’s no throughput issues. That’s another benefit of that business model. It’s very easy to scale as long as you are willing to ante and part of the ante is sending mail.

Steven Butala:                   Our biggest challenge from day one to yesterday, our biggest challenge is staffing.

Jill DeWit:                            Totally.

Steven Butala:                   Do you share that concept? Or what’s your biggest challenge let’s say?

Travis Jenkins:                   It depends on what you mean by staffing. We’ve got some really good people finding… Everybody is remote, and so we really like that. That when you hire people remote, it makes it easier to find the best of the best because most people want to work from home and so I don’t care what you’re doing as long as you’re effective with your time. It allows us to go into different areas. It’s just opened things up whenever you hire remote, and I’ve done that across other businesses and so that’s kind of where I’ve gotten that awareness from.

Steven Butala:                   I’m going to take that as a piece of advice, actually. I just wrote it down. We have some of our best people… are remote, but they started in the office with us, so maybe we’ll try that on this next road [crosstalk 00:22:03]-

Jill DeWit:                            I think so, too. Exactly.

Steven Butala:                   We need to hire like five people right now. That’s exactly what I’m going to spend my day on after this.

Travis Jenkins:                   We’re very, very candid, very blunt up front. We say, “Listen, this is a great opportunity. We’re willing to put you in a position to where you make good money, you have freedom, all of these other things, but we’re going to hold you accountable.” Time theft, might as well be stealing something from my house, right?

Jill DeWit:                            Yep.

Travis Jenkins:                   Stealing time, you steal money. We don’t deal with thieves, and misrepresenting something. We lay those things out. We’ve very candid about that during the interview process.

Jill DeWit:                            Yes. I [crosstalk 00:22:54]-

Travis Jenkins:                   People that are concerned about that flinch during the interview process and that’s our litmus test. We get them out right then.

Jill DeWit:                            We just had a transaction coordinator that I was that way. I was very upfront and honest with her about it. I don’t think she took me seriously and at week three very nicely said, “I can’t keep up with guys.”

Steven Butala:                   She couldn’t take it.

Jill DeWit:                            She resigned, and it was all good terms. It was very sweet, she just said, “I didn’t know you guys were serious.” I’m like, “Yeah. That’s how we roll.” Just the volume, she wasn’t really ready for it, and it worked out fine, but I’m with you. Even like with all of our members, we do that, too. We want to let them know up front that, “Hey, if you’re afraid of a spreadsheet, if you can’t answer the phone, there’s all kinds of little things that you need to be [crosstalk 00:23:49]-

Steven Butala:                   It’s not going to work.

Jill DeWit:                            Ready for. I want you to know what you’re getting into.”

Steven Butala:                   Is there a personality type, Travis, that you look for when you hire?

Travis Jenkins:                   From like a Kolbe standpoint?

Steven Butala:                   Yeah.

Travis Jenkins:                   No, I used to do the personality test and so I’m really leaning more towards… Almost all the staff members are women because they’re much better at multitasking [crosstalk 00:24:20]-

Steven Butala:                   Jill, we just had this conversation this weekend? The best people I’ve ever had and even now [crosstalk 00:24:25]-

Jill DeWit:                            Well [crosstalk 00:24:26]-

Travis Jenkins:                   I know that’s not very PC. I couldn’t give two you know what about PC anyways, so the fact is women are just… they can set the ego aside. Our prospects would rather hear a female voice in my opinion. They’re just a better team member for what we’re doing here, and so I almost hired a guy for some analytical stuff, just coding and other things, but pretty much I… Also finding someone that needs a job rather than wants a job is critical to me. People that say they’re high paced and they want a job tend to flake whenever they’re pressed on, whereas if they need to show up and they have that drive, and so those are the things that we’re looking for.

Travis Jenkins:                   The interview is a full contact. We’re either going to scare you by talking to you, or they’re going to be excited. Part of where my construction business went so far awry is we become this gigantic, commercial entity that doesn’t say what it thinks and everything meant to be fluffy and doesn’t hurt people’s feelings. When you’re very candid about your passion, your integrity, your business model, all of those other things, it either attracts them or repels them. That was a big lesson for me is I quit doing what got me there and starting doing what I thought needed to be done rather than being more candid and just forthcoming about the whole thing.

Steven Butala:                   We do an interview with a member just about every week and it’s not often that I actually like take notes and learn, so that’s what I’ve been doing this whole time. I’m with you [crosstalk 00:27:02]-

Travis Jenkins:                   I love [crosstalk 00:27:02]-

Steven Butala:                   We’re going to change our hiring practices because of this.

Travis Jenkins:                   When you say problems with staff, does that mean investing time with them only for them to flake a little bit later?

Steven Butala:                   No, quite candidly, on my personal end, for whatever reason, and we’re allowing this, it’s not them, they feed us a bunch of lines about what they’re capable of, and then we find out after it’s a little bit late that they’re just not capable or interested at all in what they actually said they can do. They just wanted to get a job. Now, we’ve got this whole thing where there’s a trial period and all of that because undoing and doing W-2, it’s just there’s a lot of stuff to it. I really like this. This scare tactic thing, you’re either going to be intrigued by how hard we come at you or, you’re absolutely right, or it’s going to scare the hell out of you, so I’m going to try that.

Travis Jenkins:                   I like it. I like it. It’s kind of the way my father was, is he would bump into you, and it took me years to figure this out. He’d bumped into you just to kind of check your temperature and see who’s in there. You can see when it’s a “hell yes” for somebody, and you can see when it’s a “hell no” for them, and that’s okay, too, you know?

Jill DeWit:                            Mm-hmm (affirmative).

Steven Butala:                   Using this as a specific example with this last transaction coordinator, she wasn’t afraid of anything upfront.

Jill DeWit:                            No she wasn’t.

Steven Butala:                   I was still trying to figure out where we went wrong there.

Jill DeWit:                            I think that she was really good at learning one system at a time, not six at a time, and that’s where it went and needing to go that fast.

Steven Butala:                   I mistaken [crosstalk 00:28:51]-

Jill DeWit:                            Ramp up quickly [crosstalk 00:28:51]-

Steven Butala:                   I believe, and I’ve done this my whole life for some reason, I just believe that real estate transactions should be like you’re born with it. It’s like drinking a glass of water. When I met Jill, I never explained anything to her [crosstalk 00:29:04]-

Jill DeWit:                            I think [crosstalk 00:29:04]-

Steven Butala:                   The first day, she just… This is before YouTube and stuff, and I just think everybody is innately like that and it’s just not the case at all.

Jill DeWit:                            I know.

Steven Butala:                   People aren’t used to a high level of training and that just annoys the hell out of me, quite honestly.

Travis Jenkins:                   Well, I think what you’re referring to is Jill’s just naturally inquisitive, right?

Jill DeWit:                            Yeah.

Travis Jenkins:                   I think that that’s part of the formula of success. I’m naturally inquisitive. I want to know why.

Jill DeWit:                            THat’s what [crosstalk 00:29:35] Jill is.

Travis Jenkins:                   I don’t have an agenda. I don’t need… I’m not trying to make a fake relationship with somebody over here. Why do you park like that? Why do you do that? Do you always order that? You’re just naturally inquisitive, right?

Jill DeWit:                            Yeah.

Travis Jenkins:                   I think that’s a great trait for somebody that is going to be successful is they had a desire to understand, and so that [crosstalk 00:30:04]-

Steven Butala:                   Professional career is one big research session. That’s all I really actually do for a living is research and implement.

Travis Jenkins:                   Well, and so you’re the left brainer of the group, Jill is the right, right?

Jill DeWit:                            Mm-hmm (affirmative).

Travis Jenkins:                   You’ll find that any businessperson, if they haven’t found their counterbalance, they had to learn to develop that other side because you started out mostly one side or the other. For me, I’m a natural right brainer, and so early on I thought other salesmen were half-heartedly trying when they couldn’t sell as much volume as me. I took personal offense to it because I’m like, “Why are you only selling 50,000 a month? What’s wrong with you?”

Jill DeWit:                            Exactly. Shouldn’t be that hard.

Travis Jenkins:                   No [crosstalk 00:31:06]-

Jill DeWit:                            Us-

Travis Jenkins:                   Right, right, and so even me and two of my other guys could… three of us could outsell 21 reps, and it’s just the Pareto principle, 80-20, right?

Steven Butala:                   Yeah.

Travis Jenkins:                   It’s the 80-20, and so those guys wanted to be salesmen. They’re not naturally salesmen. There was a competence issue. There was a confidence. There was a whole lot of other things going on with that.

Steven Butala:                   Could you teach a sales course today? If someone said, “Hey-

Jill DeWit:                            Sure.

Steven Butala:                   “Here’s a microphone, stand up in front of this room and just”… could you do a whole sales course-

Jill DeWit:                            Yeah [crosstalk 00:31:47]-

Steven Butala:                   For like two hours?

Jill DeWit:                            People have been asking me to do that, too, even in books and things. That’s one of the things that comes up. Heck yeah.

Steven Butala:                   That’s great.

Travis Jenkins:                   Well, somebody that naturally has the talent, once you’re taught tactics you can become lethal. Once I learned closes, once I learned tiebacks using their own words against them, all of those things, you’re not going to convince somebody to do something that they don’t want to do-

Jill DeWit:                            Exactly.

Travis Jenkins:                   But you can close them using their own words.

Steven Butala:                   That’s [crosstalk 00:32:27] what Jill does.

Travis Jenkins:                   Right [crosstalk 00:32:29]-

Steven Butala:                   I know this because I’m married to her.

Travis Jenkins:                   Right. She’ll circle back to something you said a few days ago.

Jill DeWit:                            Oh yeah.

Travis Jenkins:                   “You said yourself you were tired of XYZ”, right?

Jill DeWit:                            Exactly. Talk to [inaudible 00:32:41] for you.

Steven Butala:                   Jill came home yesterday, it was Sunday.

Jill DeWit:                            Uh-oh, here we go.

Steven Butala:                   She showed me… she went to a jewelry store [crosstalk 00:32:47]-

Jill DeWit:                            I did.

Steven Butala:                   With her girlfriend. She showed me a picture on her phone of a ring [crosstalk 00:32:51]-

Jill DeWit:                            I did.

Steven Butala:                   And she said, “What do you think of this ring?”

Jill DeWit:                            Or then what did I do this morning? I woke up and I said, “Don’t buy me anything, by the way. I don’t need any more rings.” He was already going, “Where’s the store? What do I do?” I’m like, “No, no. I really was just kind of [crosstalk 00:33:02]-

Steven Butala:                   Guess what I’m going to go do later?

Jill DeWit:                            No, no. I was just showing it to him. I don’t [crosstalk 00:33:05] need another ring.

Steven Butala:                   That’s not [crosstalk 00:33:08]-

Jill DeWit:                            He’s on the path to his car [crosstalk 00:33:09]-

Steven Butala:                   If that’s not sales at it’s most perfect moment [crosstalk 00:33:13]-

Jill DeWit:                            I didn’t even know [crosstalk 00:33:13]-

Steven Butala:                   I don’t know what is.

Jill DeWit:                            I wasn’t really trying to, I just like-

Steven Butala:                   Yes you were.

Jill DeWit:                            But I don’t need [crosstalk 00:33:17]-

Steven Butala:                   Absolutely you were.

Jill DeWit:                            I don’t need it.

Steven Butala:                   Let’s just call a spade a spade now.

Travis Jenkins:                   What happens is once you learn persuasion, the art of persuasion, once you become so good at it, it just becomes part of your DNA.

Steven Butala:                   It’s subconscious [crosstalk 00:33:30]-

Jill DeWit:                            Oh, no-

Steven Butala:                   Totally. I don’t even think she… it’s [crosstalk 00:33:32] totally subconscious.

Jill DeWit:                            You don’t know it.

Travis Jenkins:                   I mean [crosstalk 00:33:35]… That’s just the way… you’re born with the natural gifts, but once you learn those other tactics and strategies… Our salesperson is Dana and so I would listen to her and so after the calls I would critique her. People would call in and counter and she would not get an agreement from them. Most people want to be in alignment with their own integrity. We may be asking $30,000 for a piece of property and so they would say, “Give me $25,000.” She would come to me and say, “Would you accept $25,000?” I said, “No”, and we didn’t sell the property. Then, I said, “Now, next time negotiate with him. Same scenario, we’re selling it for 30. He says 25, now phrase it like this. Say, ‘I can’t do 25, but if I go to Travis and I get him to agree to 28, do I have a deal with you today?'”

Travis Jenkins:                   He thinks about it, “Yes.” Okay, now, I’m going to put myself on the line for you here. Let me go do that. Now, he’s given buy-in to his offer, and so that is a way that you tie him back to his own word, right?

Jill DeWit:                            Uh-huh.

Travis Jenkins:                   Now, when you’re calling him back, if he isn’t ready to pay that $28,000, then she’s been empowered to say, “Now, wait a minute, David, you told me that you were willing to pay $28,000. I went and put myself on the line, got an agreement to this.” Normally, you don’t even have to do that. You just call back or she calls back and says, “Good news, you’re approved. How do you want to pay?” Right?

Steven Butala:                   “You’re approved”, I like it. “You’re approved [crosstalk 00:35:48]-

Travis Jenkins:                   Yeah, and so she is basically went to bat for him. If you don’t do that, people will flake on you. They’ll say, “Okay, okay, thank you for letting me know that.” Well, you can hold them accountable for their words. I hear people and I’ve heard on some of the calls and I even forget the context it was in… I think there’s a misperception that people believe that sales strategies can convince someone to buy, and sales strategies don’t convince someone to buy, it compels them to buy, right? They were already going to buy [crosstalk 00:36:28]. They’re going to buy from somebody.

Steven Butala:                   That’s right.

Jill DeWit:                            Exactly.

Travis Jenkins:                   Your tactic has compelled them to buy from you, and so that’s just one of the many pieces of the puzzle of sales, of business, of all of the things that we’re kind of talking about here.

Jill DeWit:                            Exactly.

Steven Butala:                   There’s no place that that is more true than actually on Land Academy And House Academy membership because everybody finds us. They’re already looking for some solution and they’re usually business owners like you, other business owners. They’re looking for a better product to buy and sell and that has greater efficiency and less fixed cost and all of that and we just… my whole business model for Land Academy and House Academy itself is just to provide so much free information that you have to do it. I guess that’s the way… it just sells itself. I hate to say that because it sounds like a weird sentence but it really does.

Steven Butala:                   Well, if it doesn’t make sense to you, then that’s fine, but if it does, it does, and you’re a perfect example. You’re exactly the type of person that we want in our group, exactly, which is one of the reasons I wanted to have the interview with you.

Travis Jenkins:                   Well, I think people are either going to get it or they’re not.

Jill DeWit:                            Exactly.

Travis Jenkins:                   It’s just end of story.

Jill DeWit:                            That’s it. That’s what my team does is just finding out, is this a good fit for them or not? If it’s not a good fit, then I don’t want to undo anything in six months or two months or [crosstalk 00:38:01]-

Steven Butala:                   Exactly.

Jill DeWit:                            Whatever it is and I don’t want them unhappy, so let’s just not do it. That’s why all of our… we just got properly lead them with your hiring, whatever you’re doing, even selling a property. We tell people, “You’ve got to properly convey what the property really is.” You’re selling a property, you know this. You don’t want them calling you in 90 days going, “Hey, there’s no trees. I saw trees in the photos. There are no trees.” You don’t want that.

Travis Jenkins:                   We give a 30-day money back guarantee.

Jill DeWit:                            I love it. We kind of have an [crosstalk 00:38:29]-

Steven Butala:                   We don’t advertise it, but we do. People come back years later and say, “You know, we just didn’t use it.” We’ll buy it back for a certain price.

Travis Jenkins:                   Well, for me, all I’m trying to do is just eliminate any friction from the buying processes. Some of the older folks are really worried, “This is online, I’m sending my payment”, all of that other stuff. Listen, 30-day money back guarantee. Now, we wait 30 days before we convey the property to them, obviously, where we give them the opportunity. “Listen, if you want to wait [crosstalk 00:39:03]-

Jill DeWit:                            Good idea [crosstalk 00:39:06]-

Travis Jenkins:                   “30 days [crosstalk 00:39:06]-

Steven Butala:                   That’s interesting.

Travis Jenkins:                   “You want to waive your 30-day money back guarantee, then we’ll go ahead and convey it to you right now. Here, sign this document and we’ll sign it over to you immediately.”

Jill DeWit:                            That’s good [crosstalk 00:39:16]-

Steven Butala:                   As a percentage, which one do they choose?

Travis Jenkins:                   50-50.

Steven Butala:                   Wow.

Jill DeWit:                            Wow.

Steven Butala:                   That’s really interesting.

Jill DeWit:                            I like that idea. I haven’t thought about that.

Steven Butala:                   Me too.

Jill DeWit:                            That’s a really [crosstalk 00:39:28]-

Travis Jenkins:                   We have… Most people that reserve the 30-day money back guarantee are people from out of state, and so they’re moving to Texas. It just eliminates that barrier for them in buying the property. We’ve had one person take us up on it and he just went to another property of ours.

Steven Butala:                   Jill does that [crosstalk 00:39:58]-

Jill DeWit:                            We’ve done that [crosstalk 00:39:58]-

Steven Butala:                   All the time.

Jill DeWit:                            Swap out.

Steven Butala:                   It’s great.

Travis Jenkins:                   Yeah, and so just eliminating those things like that. I think as far as the trying to bring people into your organization, the good ones are going to get drawn to you and just don’t sweat the rest.

Jill DeWit:                            Exactly.

Steven Butala:                   That’s it.

Jill DeWit:                            Exactly.

Steven Butala:                   Our membership, the retention rate is unbelievable. There’s just no other way to describe it. I think we offboard maybe one or two people a month, max. Usually it’s zero.

Jill DeWit:                            What’s funny, too, and we’ve had… I just watched it happen this month, too, but people that sometimes life happens and they kind of take a break from us, but then they come back. It’s so amazing and awesome to see members coming back because whatever was going on, they solved it or now they’re committed. I’ve had so many calls of people that said, “I didn’t take it seriously, and now I’m going to and I’m in.”

Steven Butala:                   Really [crosstalk 00:41:01] ask them, too, why they’re leaving, it’s always life. It’s not like it doesn’t work, or, “I just can’t put the time into it that I need to right now.”

Jill DeWit:                            It’s life in the way.

Travis Jenkins:                   This business model is the lubricant of live and-

Jill DeWit:                            It is.

Steven Butala:                   That’s what I think [crosstalk 00:41:15]-

Travis Jenkins:                   Come on, I mean-

Jill DeWit:                            It is. You have to [crosstalk 00:41:18] some people can’t get that, though. They have to…

Travis Jenkins:                   It’s insane. Granted, I have a construction business that runs without me, but this business… I’m working in this business on a regular basis until we get it to the level that… I enjoy the business so I don’t mind working in it, but I’ve done it… we travel all over the place. Rarely is any place we want to travel to, we’re looking at land as a business expense.

Jill DeWit:                            Exactly [crosstalk 00:41:54]-

Steven Butala:                   Us, too. It’s [crosstalk 00:41:55] all we do.

Travis Jenkins:                   As far as Uncle Sam is concerned-

Jill DeWit:                            Oh yeah-

Travis Jenkins:                   I was looking at land on the beach in Puerto Rico and a beautiful home, you name it.

Jill DeWit:                            Totally.

Travis Jenkins:                   We were looking at land everywhere and Uncle Sam is proud of me. He’s funding all of it.

Steven Butala:                   They help us out, too, that way.

Travis Jenkins:                   It’s backwards. I think what everybody doing this should do is cut the crap, quit making excuses and take imperfect action.

Jill DeWit:                            Exactly. That’s beautiful [crosstalk 00:42:38]-

Travis Jenkins:                   This [crosstalk 00:42:38]-

Steven Butala:                   That’s perfect.

Travis Jenkins:                   All of this waiting for what’s the right answer for this? How many am I going to get if I do this? Take some action. Learn. That’s what wrong with school is learning is not memorization. Wisdom is the distillation of knowledge, so you got to apply it. You have to apply it. When you apply it, wisdom comes out of that. I shared… Again, this was something too basic for the advanced people, but it’s a micro in a macro thing is the IMEAR, implement, measure, evaluate, adjust, and repeat. Implement, measure, evaluate, adjust, and repeat. That’s part of my DNA. I don’t look at that acronym on a daily basis, but that’s how we do things. The micro creates the macro, and so start doing those little things. Anything other than that is just nonsense.

Jill DeWit:                            Awesome.

Steven Butala:                   That’s outstanding advice, actually, for anybody who’s thinking about getting into this or who’s been in it and is not seeing the results that they want. We have a lot of questions like that. We used to do this program called Add A Zero, and you just answered the question completely.

Jill DeWit:                            That’s awesome.

Travis Jenkins:                   I told you before, I think this could be a billion-dollar business.

Jill DeWit:                            Oh yeah.

Steven Butala:                   We’re in the process of… we’re talking to several private equity groups right now. We’re going to start with a hundred million dollars. We’re not exactly sure how we’re going to structure it, whether it’s debt or equity, and we’re going to do a whole program with houses specifically and try to turn a hundred million dollars every 90 days, which we’re using our own money now and a couple of people in our group are funding some of the deals we do, but we’re turning… I don’t know what the limit is, let’s just put it that way. I’m not sure there is a limit. At the moment, we’re only limited by the people that are turning our deals. It’s not the deals themselves, it’s the actual transactional coordination. That is our bottleneck, which is staffing.

Travis Jenkins:                   The agents, we call them agents, and the agent handles the lead all the way up to the point of acquisition, and so we have three people doing that right now. We’re building it in a modular way so that we can drop more [crosstalk 00:45:24] and more people in.

Steven Butala:                   Excellent.

Travis Jenkins:                   We had to put a titled person in that all they did every day was call and babysit and coddle the title deals in title. Where does your agent or… What do you guys call them?

Steven Butala:                   Transaction coordinator.

Travis Jenkins:                   Where do they start and stop in the entire process for you guys?

Steven Butala:                   The transaction coordinator actually does the mail merge. They start that far from the beginning, and we’re doing this in a modular way, too, so that the actual transaction coordinator that we have now, we’ll hire the next one and train them. They do the mail. I choose the counties and I choose like let’s say the acreage and I set the price, but outside of that, they take it from there all the way to the point where the property is acquired and I approve the acquisition price at the end. Usually it’s what’s on a purchase agreement or very, very close to it, and then we’re out. All of our staff members take it from there and they’re held accountable to sell the property within 90 days, which I think is actually a lot of time, but this is both for houses and for land.

Steven Butala:                   What do you think about that model? What do you think about that, Travis?

Travis Jenkins:                   Well, I do something similar. I have a blown up map over here to the left of me of the counties, and so I spend a lot of time cogitating on where I’m going to go next. Even though I’m a right brainer, I love numbers. I have a natural tendency for numbers, and so I’ve been good at it. I’ve created a spreadsheet where I’ve kind of dialed in all of the counties, a hundred people per acre or per square mile and all these things. I do just like you. I target the counties. I do the mailers. I do the pricing. I do all of those things. Our agents handle everything up to the… even gathering, is there utilities on the property? They gather all of that information and then we have a team that promotes it that’s completely separate [crosstalk 00:47:58] because that’s a whole nother thing.

Steven Butala:                   We do, too. We separate it, too.

Travis Jenkins:                   It’s really funny. Our business models are… I know you don’t teach those aspects, those things because it can get so complicated, right?

Jill DeWit:                            Right.

Travis Jenkins:                   Depending on how fast you want to scale this. It’s simple if it’s just you and your spouse, but my model is very, very close to yours.

Jill DeWit:                            It’s true.

Travis Jenkins:                   I’m hoping that me and you can put our heads together and start doing some of the commercial acquisitions because I’m going to need to get my average dollar value turn up considerably to start hitting the numbers that I want to hit.

Steven Butala:                   That’s our answer with houses. That’s why we started House Academy because especially in California, you can buy properties… we’re buying properties at about 7 or 800,000 and selling them for just shy of a million. Trying to turn a hundred-thousand-dollar profit on each wholesale transaction, and that’s without improving the property in any way, I mean not even paint, and it’s working so that’s my answer to get to a billion to place that hundred million and just continually add to it.

Travis Jenkins:                   Well, I don’t know if this is the right setting for it, but what would keep you from applying that thinking to commercial? That’s where the big dollars come in per acre.

Steven Butala:                   I’m totally open to that. I’ll tell you what, I cut my teeth in commercial real estate back in the early ’90s and as a transaction, getting a commercial real estate property acquired successfully, there’s so much stuff involved. That hasn’t been something we’ve focused on, but it’s not something you couldn’t overcome. It takes… To buy an office building or an apartment building, it takes a good 60 to 90 days if there’s a lender involved.

Steven Butala:                   If there’s not, that’s different, and then the other thing is that, and you know this more than most, that decision to sell a piece of property from a land owner or a home owner, are most successful deals are people that, “Thank God you called. I need to get this done and out of my life.” I don’t think Class A apartment building owners are really looking at it that way. I haven’t tested it completely, but I’ll tell you, we used to buy and sell long-term care facilities, nursing home and assisted living buildings, and I don’t ever recall someone saying, “Wow, thanks for calling. I really do need to sell my skilled nursing facility today.” None of that stuff… you can overcome it all.

Travis Jenkins:                   Well, so what if we put a finer point on it and we went after unimproved raw commercial acreage?

Steven Butala:                   I love it.

Jill DeWit:                            I’m doing [crosstalk 00:51:07]-

Steven Butala:                   I love that we do have deals like that [crosstalk 00:51:09]-

Jill DeWit:                            I’m doing it right now [crosstalk 00:51:09]-

Steven Butala:                   In our inventory right now and they are from a dollars and from an ROI standpoint are top performers for commercial land because the property… one single superstar we have right now was that exact thing.

Jill DeWit:                            Exactly.

Steven Butala:                   We bought it from someone who was just like, “You know what? I’m done with this.”

Jill DeWit:                            That’s it. It’s true.

Steven Butala:                   Yeah, I’d love to do some kind of commercial land venture and [crosstalk 00:51:31]-

Jill DeWit:                            Absolutely.

Steven Butala:                   Seek it out. We’re doing a smaller version of it with Mike Marshall in our group right now in Los Angeles.

Travis Jenkins:                   Well, that’s more of what I’m talking about. I think other opportunities are going to open up with the apartments with accelerated depreciation. There’s a reason for businesses to move something out of their inventory and into another inventory, and that’s a whole another conversation, that’s a whole another business cycle, buying cycle, all of those things. Just taking a page out of what we’re doing, I look at commercial stuff now that it falls into the same category as what you’re talking about. “Oh my God, we’re $200,000 behind on taxes on this property. This is a Godsend.” I think those are the ones that we could… Well, whether it’s they’re behind on taxes or whether they want to sell it or whatever, right now we’re getting those properties just coincidental.

Steven Butala:                   That’s right.

Travis Jenkins:                   Whereas, we could be more strategic-

Steven Butala:                   Exactly.

Travis Jenkins:                   About where those are, and with our acumen, we amaze ourselves when we go back four months from what we were doing four months ago [crosstalk 00:53:04]-

Jill DeWit:                            Agree [crosstalk 00:53:04]-

Travis Jenkins:                   Because I’m looking at Dana like, “Why are we buying this thing?”

Steven Butala:                   We do the same thing.

Jill DeWit:                            Exactly.

Travis Jenkins:                   How did [crosstalk 00:53:12]-

Jill DeWit:                            Now it’s beneath us. What the heck?

Travis Jenkins:                   How did this get in here? We’re seeing new things. We constantly are talking about these different levels and then I’m thinking on new levels of mailers, of ways to go in. There are untapped markets all over the place.

Jill DeWit:                            Exactly.

Steven Butala:                   We call them [crosstalk 00:53:43] lines of business. We’re constantly opening lines of business. My personal goal is to open a new line of revenue every month until we get to a certain financial goal we have, and we’re on track. It’s working.

Jill DeWit:                            Exactly.

Travis Jenkins:                   If we took the same thought process and went after very targeted commercial property, there shouldn’t be any reason that we couldn’t generate many, many millions of dollars a month doing [crosstalk 00:54:12]-

Steven Butala:                   I agree.

Travis Jenkins:                   Just [crosstalk 00:54:12]-

Jill DeWit:                            Exactly.

Travis Jenkins:                   That alone, right?

Jill DeWit:                            Last time I checked, we have the data.

Steven Butala:                   We have the data and the capital and all of it, so there’s… we should just send a mailer out together, you and I. That’s what I think and just see what comes back.

Jill DeWit:                            Perfect.

Steven Butala:                   I think I would love to do that, like high-end commercial property, like urban commercial property.

Travis Jenkins:                   We’re regularly moving into more and more high-end areas. I’m unfazed by nasty letters or comments. We get a tickle out of it. Dana still reads some of them. I’m like, “Why are you doing that? It’s a waste of time.” All I want to know is, “Do you want to sell?”

Jill DeWit:                            Exactly.

Steven Butala:                   We accidentally hit an oil and gas area in Eastern New Mexico in this last mailer, and-

Jill DeWit:                            It’s funny.

Steven Butala:                   One guy said to Jill in a very light-hearted way, “The amount that you’re offering for my 20-acre property wouldn’t cover the cost of the porta potties [crosstalk 00:55:08]-

Jill DeWit:                            He did.

Steven Butala:                   “That we have on the property right now.”

Jill DeWit:                            It was so awesome.

Steven Butala:                   That’s how I know I priced it right.

Travis Jenkins:                   Exactly. Doesn’t offend me at all. Matter of fact, if people don’t squawk enough, I’m concerned. Right?

Jill DeWit:                            Yeah.

Travis Jenkins:                   I’m concerned, so [crosstalk 00:55:28]-

Steven Butala:                   Unfortunately, man, we’re out of time, but I will [crosstalk 00:55:32]-

Jill DeWit:                            We’ll talk more [crosstalk 00:55:33]-

Steven Butala:                   I’ll put like a basic term sheet and get it over to you on email and we should send a mailer out together. I think it would be a lot of fun. I think we have a lot to offer each other at the level where we are.

Travis Jenkins:                   Okay, yeah [crosstalk 00:55:45]-

Jill DeWit:                            That would be awesome.

Travis Jenkins:                   I agree with you. We need to kind of flesh that idea out because I’m going to have to invest in some staff members that can be dedicated to those types of things. I don’t know if we’re still rolling. Are we having a side conversation? Or did you want to [crosstalk 00:56:11]-

Steven Butala:                   I got to end it here.

Travis Jenkins:                   Okay, go ahead [crosstalk 00:56:13]-

Steven Butala:                   Then, we can…

Jill DeWit:                            Then, we’ll talk.

Steven Butala:                   Yeah.

Travis Jenkins:                   Okay, all right.

Steven Butala:                   We know your time is valuable. Thanks for spending some of it with us today anyway. Join us next time for another interesting episode-

Jill DeWit:                            And we answer your questions posted on our online community found at landinvestors.com. It is free.

Steven Butala:                   You are not alone in your real estate ambition.

 

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