Planning Your Land Business for Post Election (LA 1338)

Planning Your Land Business for Post Election (LA 1338)

Transcript:

Jack Butala:
Steve and Jill here.

Jill DeWit:
Hi.

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

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

Jack Butala:
Today Jill and I talk about planning your land business for the post election in November.

Jill DeWit:
I want to talk about what we’re doing in preparation for that and what you should be doing in preparation for that.

Jack Butala:
Right. Excellent.

Jill DeWit:
And I’ll tell you my answer is really short.

Jack Butala:
Good. Yeah actually, mine is too.

Jill DeWit:
Okay.

Jack 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:
Brian wrote: In California I have a vacant land buyer who just finished paying off the seller financing and now I want to make sure I get the next step right. A land contract was recorded with the county at the start of the sale, and now as I understand I need to record a deed of reconveyance or a full reconveyance. I believe also the grant deed needs to be recorded and the preliminary transfer of ownership with the county. Is that right? All at once or is it in some sequence? Anything else?

Jack Butala:
So there’s a lot of words in this question, and they’re very specific proper nouns, like conveyance, reconveyance, granteed, preliminary transfer of ownership to the county.
So the answer to Brian’s question really lies in why he set it up in the first place. I’ve never seen it set up like this. I’ve never actually recorded a land contract with the county, so I would start with that. I’m not saying-

Jill DeWit:
Or have we had people pay them off?

Jack Butala:
I’m not saying he’s did it wrong, I’m just saying. Yeah. I mean, this is so far as a percentage in the minority of deals that happen. I mean-

Jill DeWit:
How long was this contract, because often they’re a long time?

Jack Butala:
In all the years that we’ve had Land Investors, which is the website, no one’s ever asked this question. And here’s why, because people don’t pay these things off. If they do, it’s way early. So the right answer, and then there’s a lot of answers to this from other members, the right answer is to get a lawyer to either do, redo, or undo this. I know what I would do. I would not get a lawyer. Jill and I would sit down and I would say, “The guy paid it off. I recorded the land contract. I would somehow undo that.” I’m not exactly sure. And I would probably send this to title so he can get …
Here’s the thing. If Brian did this correctly, he’s made just tons of money on this deal. When you sell property on terms and it gets paid off over a bunch of years, the interest in all of it, I mean, it’s very, very, very profitable, so there’s a lot of profit in this deal. You want to get it done right.

Jill DeWit:
Correct.

Jack Butala:
And the chances are the person who paid this thing off, they’re going to use it. They might build on it. Who knows? So I would … You know what? Call a lawyer.

Jill DeWit:
That’s the easiest way. Let’s just leave it at that. I know that someone else in our group who is very experienced and very smart also chimed in and said, “Make it easy on yourself, call a lawyer.” And I agree with her.

Jack Butala:
Today’s topic, planning your land business for this election that’s about to happen here in November.

Jill DeWit:
Oh yeah. I have a followup thing to that real quick.

Jack Butala:
This is the meat of the show.

Jill DeWit:
Sorry. My followup thing is once you have one of these done with a lawyer and you know the steps what the lawyer did, now you can do it by yourself.

Jack Butala:
Yeah.

Jill DeWit:
So that’s it. Lawyer’s going to go, “We’re doing this form and then we’re doing this form and then we’re doing this.” Okay, now I know the steps. I don’t have to use you again.

Jack Butala:
You know, if you’re new at this you’re going to make missteps from a paperwork standpoint. It shouldn’t stop you from sending mail out or any of that stuff. All this stuff is undoable and almost all of it, the recorder’s going to say … When I started in this, I did my own deeds. This is in the ’90s. Did my own deeds, did a few of them wrong. The recorder was nice enough to call me and say, “All you’ve got to do is do a corrective deed. Go to our website. It tells you how to do it.” And I did it and it was over. Did it suck? Yeah. The paperwork part of anything is awful. This is just stuff that needs to get done. So don’t let it deter you from being a real estate investor.

Jill DeWit:
Yep. Perfect.

Jack Butala:
Today’s topic. Oh, you already went through that.

Jill DeWit:
So planning your land business for post selection.

Jack Butala:
I got interrupted.

Jill DeWit:
I did, because I had a follow-up thing. I was trying to get in there just in time, and I didn’t mean to screw up your train of thought.
So here’s what I think. What are we doing right now to plan for post election? I’m doing two things, and they’re very simple and very basic. You’re going to laugh. One is I’m watching, micro watching, parts of this country and the market and the real estate. And what am I really watching? Not so much land, I’m watching houses. Because land, because you have taught me, usually follows the houses. Although it might be six months, even a year behind-

Jack Butala:
That’s true.

Jill DeWit:
But it’ll happen. So if you see drops, it will follow. So I’m micro watching, part for personal reasons and part for business reasons. I’ve got some cash I want to put into a future primary residence candidate. That’s the truth. Or maybe not primary, but even a secondary home. Something like that. So I’m watching for those reasons, and then also for my land business.
And then the second thing that we are doing is … Okay man, now I got three steps. As I go into this I got three things. So that’s one, I’m watching the market.
Second thing that I’m doing is making sure all of my acquisitions are killer. They need to be stellar. I need to be able to buy them fast, sell them fast. I do not want to be stuck holding a bunch of stuff at a price that doesn’t work for me. So I have to buy them really, really good so I can sell them really, really good, and really fast.
The third thing that we’re doing is holding on to some cash, and that’s the thing with a lot of investors too. There’s a lot of investors right now that are getting their cash ready to be able to pull the trigger on a bunch of opportunities that we all see coming.

Jack Butala:
What historically happens after elections, regardless of who wins, this has nothing to do with who wins or loses this election, is good stuff. But when the election is over, everybody who’s in business and controls stuff takes a big, huge breath. They’re either happy about who won or you’re not, and you go about making them money.
I did a lot of research on this actually, and I came to the conclusion that nothing’s going to happen. Nothing’s going to change. There’s a huge, detailed economics driven article that came out a couple of days ago that says, what does Fannie Mae or Freddie Mac look like under candidate X and candidate Y? And it was like nothing. Nothing’s going to change. You think interest rates are going to change based on … This topic heats up a lot of people, and so I apologize in advance if I’m raising your blood pressure by having this topic, because generally Jill and I don’t talk about politics ever, and I don’t really think we are right now.

Jill DeWit:
Right.

Jack Butala:
I don’t care about this. I don’t care. I have personal feelings, but from a money standpoint I just want this crap to end however it ends, and let’s just move on.

Jill DeWit:
Well, here’s my reasoning what’s different this election, I think how I see, because it’s tied into COVID stuff.

Jack Butala:
Yeah. Okay, well that’s not what we’re talking about.

Jill DeWit:
That’s what I’m talking about. Okay, yeah. So I’m talking about this election, not every election. Every election, I’m not so concerned. I’m talking this election, because I think that there’s going to be some potential COVID slash … I think everybody’s waiting for this to be over before they do things like the whole foreclosure thing and the whole forbearance and what’s going to happen when everybody’s rent is due, that kind of a thing. There’s a lot of stuff I think that are on hold tied to this waiting for November to happen.

Jack Butala:
Yeah. I mean, this is a weirdest thing I’ve ever seen, because some of it’s COVID, some of it’s the election.

Jill DeWit:
Correct.

Jack Butala:
There’s a lot of strange, strange socioeconomic current event type stuff, and it’s like there’s a lot of stuff being thrown at a blame to being assigned and all of that. My point to this whole episode is nothing’s going to change. You just keep your head down, buy a bunch of land, resell it. Jill’s right. I think now maybe it’s probably … She’s probably right. Keep more cash on hand than you might usually, but I wouldn’t say sell everything and then just pray in November.

Jill DeWit:
Right. Yeah, don’t do that.

Jack Butala:
Pray for whatever side you’re rooting for.

Jill DeWit:
That’s true. It’s not like come November or whatever all of a sudden prices are going to dramatically increase or drop or anything like that. No. No, but I think that it’s just, for me honestly, it’s timing. I think COVID stuff and the election stuff, there’s a lot that’s going to happen between now and the end of the year. That’s really what I’m saying.

Jack Butala:
We are all tiny little drops in a massive ocean of people who profit from all kinds of things, and the people who profit from stuff aren’t going to let the bottom fall out of this.

Jill DeWit:
Right.

Jack Butala:
I don’t care who wins the election, doesn’t win the election. I don’t care if it’s rigged. I don’t care about any of that stuff. I think we can all agree with very few exceptions that we all want to do better next year than we did this year, whether it’s socially or financially. I think hopefully we all agree, we’re all going to keep buying and selling land or whatever it is that we make money on.

Jill DeWit:
Touché. That was good. I have something funny to show you [crosstalk 00:10:24].

Jack Butala:
Yes I do, for sure.

Jill DeWit:
Speaking of this and this whole period, and how we all want it to be over with. Someone put a cute little thing on social media. It says, remember when your mom said, “I’m going to hit you so hard, I’m going to slap you into next year.” I wonder if that offer is still open?
I was like, that’s so good. Yeah. I do want to go to bed and wake up and be in 2021.

Jack Butala:
Never has child abuse had some humor with it.

Jill DeWit:
Right. Exactly. Exactly. Happy you could join us today. Five days a week you can find us here on the Land Academy Show.

Jack Butala:
Next week join us for another interesting episode on Monday. You are not alone in your real estate ambition.
I can’t wait for this to be over.

Jill DeWit:
I know.

Jack Butala:
It’s the silliness of it now.

Jill DeWit:
I know. It’s funny, even the kids are kind of over it. I know in March they’re like, “Ooh, yippee ki yay. Now it’s summer vacation starting in March.” And now it’s like, “Okay, now we’re over it too.” And our school, I’m very happy that they have really upped their game this fall. They admitted their mistakes at the end of last year, and they really upped their game this year, and it’s hard on everyone, including the teachers, that they want to be in the classroom I think.

Jack Butala:
This is a terrible, terrible medical scenario for people who have preexisting conditions. It’s terrible, and my heart goes out to those people regardless of age or any of that. It’s terrible. But I’ll tell you, I just happened to be flipping through the channels last week and the Prime Minister of England was, as all these politicians are doing right now, reporting the numbers and the things that they’re doing and he said this, “I have long said and will continue to say,” because he was talking about school. The schools are open in England. “Long said that it is my policy and the policy of our whole administration that education, the longterm effects of not educating children, even for six months or a year or whatever this thing ends up being, negative implications of lack of education far outweigh the immediate medical concern.”
That’s really been my take on this from the beginning. The only thing that separates us from animals is education. We need to be educated. That’s why people hopefully listen to the show. Jill and I have channeled out the latter parts of our lives and our careers trying to educate people.

Jill DeWit:
That’s true.

Jack Butala:
Fortunately for us and for you, you do this at home.

Jill DeWit:
Exactly. I agree. Thank you for tuning in. We hope you find our content valuable and we appreciate your support. If you haven’t already, please zip over to our YouTube channel and hit the subscribe button.

Jack Butala:
And your comments and suggestions help us create the type of content you’re here for. Hitting the like button on your favorite episodes helps to support our channel’s algorithm and gage your interest for future shows.
We are Steve and Jill.

Jill DeWit:
We are Steve and Jill.

Jack Butala:
Information-

Jill DeWit:
And inspiration-

Jack Butala:
To buy undervalued property.

—————————————-

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

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https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

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

How Much Data We Actually Consume in Our Land Business (LA 1337)

How Much Data We Actually Consume in Our Land Business (LA 1337)

Transcript:

Jack Butala:
Steve and Jill here.

Jill DeWit:
Good day.

Jack 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.

Jack Butala:
Today Jill and I talk about how much data we actually consume in our land business.

Jill DeWit:
How about our lives?

Jack Butala:
Yeah, here’s a hint. It’s like every decision single decision that we make is data-driven. Every single one.

Jill DeWit:
Yeah.

Jack Butala:
Seasoned professionals in real estate that I talked to are actually pretty amazed.

Jill DeWit:
I know you do too, I just want to share how much data nuts we are, I look at data to help me to make a decision buying a car. I look at data help my decision, I know you do with schools and education for the kids.

Jack Butala:
That’s all I do.

Jill DeWit:
I know. It’s like, I can’t think of things, anything that we do even, honestly, I even think of data and resell value on jewelry. Not kidding. It’s like everything’s data-driven.

Jack Butala:
The next time you’re in Best Buy or Costco or any of that and someone’s standing, looking at something with the phone in front of themselves, look at what that person looks like.

Jill DeWit:
Why, do they look like us?

Jack Butala:
Yeah.

Jill DeWit:
Oh because they’re on there checking the rating. Yeah.

Jack Butala:
They look like a bunch of geeks. They’re looking at the ratings. They’re looking at the price. They’re doing research.

Jill DeWit:
Can I get it better on Amazon?

Jack Butala:
They’re looking at data. They’re looking at data, yeah, looking at data to make a decision. And often in Costco, specifically with electronic, Costco has very high quality electronics for very good price, some of the time, not all the time.

Jill DeWit:
You know what it is, I believe that to be true. The other thing about Costco it’s sometime limiting. They’re only have so much. That’s the thing.

Jack Butala:
Selection is very limited.

Jill DeWit:
You can’t always go there and get the video camera that you want or need.

Jack Butala:
And so, but the vast majority of everybody else, they’re all kind of squandering through there, going up and down every aisle, checking to see what the product in front of them and how it makes them feel.

Jill DeWit:
Do you know what I think is really going on?

Jack Butala:
I’m serious. It’s data versus feelings.

Jill DeWit:
I think they’re going up and down every aisle missing the days when there was a sample at the end of every aisle.

Jack Butala:
Oh, because of the COVID. That didn’t even cross my mind. I guess you can’t hand people food like that.

Jill DeWit:
Not right now you can’t.

Jack Butala:
Which is kind of silly because they do it at McDonald’s. So I don’t know what the difference is.

Jill DeWit:
It’s very interesting. I guess it’s open food. Remember the old days, go pick up the, throw a cracker in your mouth.

Jack Butala:
That’s my question of the day. What’s the difference between handing, making some samples in Costco at the end of the aisle and the person who’s handing you stuff at McDonald’s?

Jill DeWit:
It’s true because it has been proven that you can’t catch it from food. Anyway.

Jack Butala:
Watch the comments blow up at the end of the YouTube.

Jill DeWit:
Sorry. I’m confused too.

Jack 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:
Austin wrote, hello, I recently fielded a call from an owner that yielded three small contiguous lots, possibly one acre per parcel. The lots weren’t part of my original mailer, but it’s property that the owner also owned. Unfortunately, this county stumped parcel fact and neighbor scoop him. And I couldn’t find much info about the area, not even a GIS. That says something too. Okay. I did find a little bit of info on the assessor’s website. It’s X county.

Jack Butala:
No, you can say it.

Jill DeWit:
Oh, okay.

Jack Butala:
I think you should.

Jill DeWit:
Okay. Socorro County, New Mexico. Additionally, I found another land seller that has a handful of parcels. I got that. And I got a handful of parcels in the specific subdivision of, can I say RG?

Jack Butala:
Yeah.

Jill DeWit:
Okay. Rio Grande Estates. Any thoughts on how to proceed? Austin. Got it. Okay. So, the problem is said on a mailer. Can I answer this please?

Jack Butala:
Sure.

Jill DeWit:
Austin sent out a mailer. The guy calls back. Austin did everything right. One of the questions I have on my inbound call seller checklist is by the way, do you have anything else? Because sometimes there’s gold there. He might say, “Yeah, I’ve got two more over here. I thought you only wanted to buy this one. I actually own all these other parcels.” So yay, yippie ki yay, this could be awesome. So Austin uncovered a few and it’s in a county that he obviously didn’t pick and it’s obviously one that’s difficult to get information on. Even they don’t have a GIS. So that makes a lot of sense. So he’s like, okay, this other guy is doing it. Should I do it too?
So my question is, hold on a moment, first of all. I would put them aside. I don’t want you to go down a rabbit hole and start learning an area that you’re not familiar with because you could spend hours and days and have it not work out. So I don’t necessarily, just because someone else has figured it out, they may have set out to do that and put the time in to do that. And that’s great. My personal advice to you, Austin, is this, take the information, maybe spend an hour or two on it if you want, if the guy’s dying to sell them too, or it’s part of the package kind of thing then I would, but don’t spend days on it kind of thing, because I don’t want to pull away from the deals that … you don’t like my thing. You don’t like my answer.

Jack Butala:
No, it’s okay. I think there’s a way to solve this.

Jill DeWit:
Because I don’t want you to … it’s something shiny and I don’t want you to get too distracted by it. That’s the bottom line. It’s not like you can’t ever do this or do it. I’m going to push it down on my list and get back to it after I go through all my other really good ones and then decide. You have different thoughts.

Jack Butala:
The coverage, I’m going to take it up a few thousand, 20,000 feet here.

Jill DeWit:
That’s because you go high and I go low.

Jack Butala:
Right. The coverage for parcel fact and neighbor scoop, which Jill and I own by the way and developed, is fueled by an API that’s driven by CoreLogic, it’s originally for oil and gas. And Joe went to Irvine one time and convinced these oil and gas people to allow us access to the API. So we create these tools. These tools are only as good as the data that we receive from the county. And it’s not the data that we received from the county, it’s CoreLogic. And so there’s just like anything in life. There’s 3,144 counties in this country. There’s about 10 of them, maybe 15 that are so far behind from a computer standpoint, who cares why, they just are, that they can’t feed the data. Socorro County, New Mexico is one of them. If you want a list of these counties, go to the top of either one of those sites and find coverage. And there’s a map.
These are not wise states in my opinion, counties, to send mail. If your county that you’re interested in, for whatever reason is on there, you’re going to have a tough time finding property in real time. It’s not impossible. There’s a bunch of counties in North, I’ll just list them through and help everybody quickly. There’s a bunch of counties in North Dakota and a few in South Dakota that are very difficult, if not impossible to find property in. There’s certain counties in Oklahoma that are very, very tough to find property in. There’s about four or five, which is a lot as a percentage in northern New Mexico. There’s a bunch in Arkansas. East coast, not so much. It’s actually pretty good. So you want to make this part of your county mailing decision process. Socorro is not so much hard to find property, it’s just that it’s a mess internally. So you’ll get an APN and you’ll have a legal description and there’s 10 properties in there, but they’re not delineated out because the county just chose not to do it.
So I kind of spaced out a little bit while Jill was talking, but did you cover like just moving on, you want to move on in this situation?

Jill DeWit:
That’s good because I spaced out too.

Jack Butala:
What I was just saying?

Jill DeWit:
Yeah.

Jack Butala:
Do you want to move on? You can’t find the property.

Jill DeWit:
That’s part of the problem.

Jack Butala:
Then neither can your buyer.

Jill DeWit:
Yeah. So that’s the thing. I just don’t want you to waste too much time and energy. Look Austin, I’ve been in your shoes.

Jack Butala:
Yeah, me too. And it sucks.

Jill DeWit:
And I said, dog gone it. Why did I waste two full days on this stupid thing I couldn’t find. And then it ended up being a mess because somebody has dead anyway. And I forgot to ask that question, kind of thing. Like what was I thinking? It was not what I was mailing for. It was not in my property type. It’s not an area I know. And I should have focused my energy on this because I would’ve made $5,000 yesterday if I just knocked this off. That’s what I just want to caution you about.

Jack Butala:
Let me add one more point and we’ll end on a positive note here. This disgust for not being able to find property fueled why we created parcel fact and neighbor scope.

Jill DeWit:
True.

Jack Butala:
Why Joe went to Irvine and begged and pleaded to get the access to this API and why I spent hundreds of thousands of dollars, which we will probably never get back the product, developing these products so that we could find property quickly and easily. And we eventually made it, released it to the public. So I want you to imagine what Austin’s going through on this one deal, which he’s going to pass on because he can’t find it, multiply that times every day of our life, trying to go find property on a county GIS site for decades and being disappointed.

Jill DeWit:
It was hard. I love this. I love this topic because when I talk to new people, come in, they’re like, “Oh, did I miss the boat?” I’m like, “Oh my God, no.” Coming in now that we’ve developed all this stuff is such a good time. You didn’t have to learn how to push start a car, something like that.

Jack Butala:
Crank it.

Jill DeWit:
Yeah. You just get in the car now and push a button. You’re welcome.

Jack Butala:
Well said. That’s a great analogy. Today’s topic, how much data we actually consume in our land business. This is why you’re listening.
What’s the first thing you do when you’re starting your land business and you’re getting ready to send out a mailer. You try to pick a county. How do you do that? With data. You’ve got horsing around the internet. You take a look at some statistics. If you go through our education, I show you exactly what the red, green, yellow test is. Whether you’re going to buy houses or land. And you line all this stuff, this data up, and these counties or these zip codes and you match them up against each other. You match the data. You pit the data against itself. And the data tells you where to send them mail. That’s great.
Now I’ve got two zip codes or counties that I want to send mail in. How do I do it? Well, I’d go to CoreLogic or Real Quest or I go to DataTree or TitlePro, we’re licensed providers for all three. You choose, you pull down the ownership records data. There’s a huge data set in there, hundreds of millions of properties. You pull the records down data, sift through the data. You scrub the data and get a data set, ready to go, price it. How do you price it? Well, you look at data with completed sales and current sales. Get it to, 020, they take the data, put it into a mailer. The mailer goes out. The mailers come back. The people who want to sell their property. It all comes back. How do you decide whether or not you’re going to buy it? Well, you look at the data on the internet about whether or not you actually want to do that deal.
Does it have access? You look at all the data that’s provided in Real Quest, on Neighbor Scoop and Parcel Fact and wherever else. You run through your due diligence and you decide to buy it or not. Let’s say you buy it. You buy a predictable percentage of them. Probably 50 to 60% of the stuff that comes back you buy. You go to sell it. How do you do that? You pull all the neighbor’s records. You look at the data for everybody who owns property in a mile radius that’s data. Pull that data, send them a neighbor letter. 50% of the time you do that, you’re going to sell the property right then.

Jill DeWit:
Price it too.

Jack Butala:
Every single step of the way.

Jill DeWit:
There was one little piece too, like what sales price do I set? Data. The data tells you that too.

Jack Butala:
I’ll tell ya. That’s great guys. What doesn’t involve data? I’ll tell you exactly what.

Jill DeWit:
Hiring.

Jack Butala:
A crappy piece of real estate.

Jill DeWit:
Oh. Oh wait. Say it again. A crappy.

Jack Butala:
We talk about data. 98% of the time it can be overwhelming for certain people. There are times, this happens a lot with houses, but it also happens with land where all the data points to this is a bad ass acquisition and resale. And when you actually look at the piece of property, this is where being experienced or being in a group like this is really helpful, you look at the actual asset, the actual house that you’re going to buy, or the actual piece of property and you realized it’s a pile of crap. And you can’t resell it. There’s no data that’s going to tell you, when you standing in front of a house, it just sucks. It’s going to tell you a price per square foot. It’s a great idea. It’s going to tell you what the algorithms all say. And you can analyze and crunch this very consistently. And if you do enough deals, it’ll get absorbed. If it doesn’t work, it’ll get absorbed in that. But in the end, if you walked through a house and it smells like something you can’t get the smell out.

Jill DeWit:
Or like fatal flaw, like a cracked foundation.

Jack Butala:
Or it’s great, it’s not in a flood plain, but it’s flooded when I get there. So the data says, it’s fine, but not when I get there or whoever you send out there to look at it. Or the picture, the current drone pictures look nothing like the pulled up on Google Earth. That’s the only part of this that doesn’t involve absolute data.

Jill DeWit:
You know what’s funny about that, I was listening on someone else’s podcast a couple of weeks ago and this exactly happened to them. So like they had bought, they had auction bought a house, thinking they killed it. And they went in and it was wet everywhere. But here’s what they found out. The good news was it was … they of course panicked because like, oh no, what did I buy? But the reality was the place was so trashed and so poorly kept that whoever was there last, their way of trying to clean it up was hose the whole thing out, carpet and everything.

Jack Butala:
That’s like a single guy’s dream.

Jill DeWit:
They hosed off the whole house inside and of course it just stuck there. All the water was still there. So they could recover from it. But they were just like, Oh no, what did I buy? But you’re right. You can’t find that in the data.

Jack Butala:
When’s the last time you watched HGTV and they talked about data? Never.

Jill DeWit:
Yeah, that’s true.

Jack Butala:
Never because people and flash back to Costco again, there’s one or two weirdo guys leaning up against the wall and standing in front of some pots and pans or a bottle of vodka and looking through their phone saying, you know what? They’re going to make a decision based on data, not so much on a price or whatever. Hold on a second. Vast majority of the whole planet has no idea what the show is about. That’s why this group that we have of people are so special. That’s why if you’re going to go buy and sell real estate, there’s a lot of places you can learn. There’s a lot of different types of real estate that you can buy and sell. That’s what makes this so unique. We consume data in our land business on a minute by minute basis. Go ahead.

Jill DeWit:
You just shared a very beautiful, personal moment with all of us. I personally do not let data choose my alcohol or my pots and pans, but some of us do.

Jack Butala:
I do.

Jill DeWit:
Yeah. How are these rated? Why would I spend $150 on this? I’m not saying your way is wrong.

Jack Butala:
I know.

Jill DeWit:
I just think it’s kind of funny.

Jack Butala:
I think it’s funny too.

Jill DeWit:
I know. Thank you for sharing that. That was beautiful.

Jack Butala:
It’s not so much that it’s going to change my mind on the brand. I’ve chosen a brand. It’s like the pricing and the shipping. And does it ever, I’ve been running a little Excel list or a table in my head about whether or not it makes sense to ever go to a store again. And I think in the end, the answer is no. I did a technical paper a lot of years ago about, is it cheaper to go out to eat or is it cheaper to eat at home? I sampled all kinds of stuff. I spent a lot of time on it.

Jill DeWit:
What’s the data say?

Jack Butala:
And the conclusion is this.

Jill DeWit:
I think I know what it is.

Jack Butala:
It’s the same.

Jill DeWit:
Oh, I thought it was going to be eating out is cheaper. For two.

Jack Butala:
It about the same.

Jill DeWit:
Does it depend on the number of people?

Jack Butala:
Not really. I think if you’re feeding 25. For one or two people, it’s the same. For 25 you better, right.

Jill DeWit:
Better to eat in. That’s what I thought. Okay.

Jack Butala:
But here’s where everyone fails. And this is the whole point of the paper. No one has an empty refrigerator. No one. People still go to the grocery store and buy stuff. Even though you say, you know what, it makes more sense to go out to eat. plus the added non data benefits of, I don’t have to cook. There’s still some stuff about people who are not going to follow their own rules, or they’re going to look at that data and they’re going to say, yeah, the data says I should be mailing this county in Florida but when I was a kid, I used to go to this other county in Florida and it was a lot of fun, I’m going to mail that county. I have a feeling. I’m going to go walk into the casino today. I feel lucky. People don’t listen to the data. So knowing that it exists is the only part of it.

Jill DeWit:
Is that a poke at me?

Jack Butala:
No.

Jill DeWit:
Am I doing it wrong?

Jack Butala:
No. There was a time, and at the net effect of this was when I was done with that technical paper, I took everything out of my refrigerator and unplugged it for a couple of years.

Jill DeWit:
Look, this comes back to one thing and one thing only, this is actually a little bit off topic. I’m going to wrap it up on this. You’ve heard me say this before. It’s no secret. You’re either going to win emotionally or financially, which would you like on this time? That’s it, that’s it.

Jack Butala:
When I win financially I do win emotionally.

Jill DeWit:
That works for you. Okay. And you know what? And I feel the same way. I just bought a new car and I feel great financially and emotionally also. I picked what I wanted. I picked what I wanted emotionally, and then I got the best price financially.

Jack Butala:
So you go out on the internet and you’ve flipped through a dating site. And you’re looking at the guys and I like this guy sort of, this guy, this guy, no way, no way, no way. You’re looking at data. You’re making a data choice.

Jill DeWit:
You’re not looking at data, you’re looking at a picture. That’s emotional.

Jack Butala:
You don’t read it?

Jill DeWit:
No. Not the way you just said.

Jack Butala:
Well, no, hang on a second. Jill, hold on a second, okay? Just hold on, let me set this up.

Jill DeWit:
Okay. All right. Okay. Go ahead.

Jack Butala:
However you are trying to find a man, you’re pulling a dataset somewhere on the online. Part of it is a picture, part of it’s like, I don’t know, maybe whatever’s important to you. Whether or not they’ve been married before, whether or not they have children, how old their children are. It’s a huge data set of variables and something, hopefully it’s not just emotion, a picture that they used 13 months ago or 13 years ago. And you’re going to say, I want to go out to dinner with this guy. Men are idiots. They’re going to say, yes. They’re not even going to look you up really and consider it, most of them. You’re going to get there and you’re either going to feel great about this immediately or you’re not. Tell me where I’m wrong in any of this.

Jill DeWit:
I disagree a hundred percent.

Jack Butala:
Oh my gosh. Go ahead.

Jill DeWit:
Yep. Nope. That’s not how girls are.

Jack Butala:
This is good for men.

Jill DeWit:
No, no. We look at the picture first, come on. And then we’ll figure the other things out. Because you know why, every woman thinks they can solve it and fix it. So he doesn’t have the best job now, he will, when I’m done with him. Seriously.

Jack Butala:
Hey, how’d that go for you?

Jill DeWit:
Yeah, I know.

Jack Butala:
How’d that go?

Jill DeWit:
Seriously you.

Jack Butala:
That’s hilarious.

Jill DeWit:
That’s why I tell girls, the guy you marry or whatever it is, the guy you choose to be with, who gets the day is who’s going to be forever. You better love it, you’re not going to change him. But my point is that we don’t sit, I wish my friends looked at that, but they don’t.

Jack Butala:
That is sad.

Jill DeWit:
Oh, come on. We have a good friend right now who has often and on dated a neighbor of ours and on paper is everything wrong, but guess what? Oh, he’s hot. And they have fun together in other ways. You know I’m true. You know that’s right. You know exactly who I’m talking about. She’s blinded by body. And I’m sure men do it too. Right? I’m sure men do it too. The difference is men go, “Eh, I can deal with it. Let me go. Oh, I can fix it.”

Jack Butala:
Yeah. We’re talking about two separate things. So there’s still a data piece involved.

Jill DeWit:
Okay. Happy you could joining us today. Five days a week, you can find us here on the Land Academy Show.

Jack Butala:
Tomorrow the episode on the Land Academy Show is called planning your land business for post-election. You are not alone in your real estate ambition.
Men and women are so different.

Jill DeWit:
Very. Actually I kind of find it sweet. I find it sweet when you guys think you know what’s going on, but you don’t really know what’s going on. And I’m sure we do the same thing. Although men are much more simple. You agree with that too, don’t you?

Jack Butala:
Oh yeah.

Jill DeWit:
Okay. Thank you.

Jack Butala:
Who can debate that?

Jill DeWit:
Exactly. Thank you for tuning in. We hope you find our content valuable and we appreciate your support. If you haven’t already, please get on over to our YouTube channel and hit the subscribe button.

Jack Butala:
And your comments and suggestions help us to create the type of content that you’re here for. Hitting the like button on your favorite episodes helps to support our channels algorithm engage your interest for future shows. We are Steve and Jill.

Jill DeWit:
We are Steve and Jill.

Jack Butala:
Information.

Jill DeWit:
And inspiration.

Jack Butala:
To buy undervalued property.

—————————————-

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.

How to Structure Your Land Business (LA 1336)

How to Structure Your Land Business (LA 1336)

Transcript:

Jack Butala:
Steve and Jill here. 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.

Jack Butala:
Today, Jill and I talk about how to structure your land business because it’s business week this week.

Jill DeWit:
It is. I’m thinking of like people and roles and management. I’m sinking. You’re probably thinking numbers and I’m thinking people.

Jack Butala:
I am. Well, I’m thinking of LLC structure.

Jill DeWit:
Exactly. So we all both have some different things to share.

Jack 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:
Greg wrote not a joke this was quick, “Two lots in a county side-by-side, lots 125 and 126, but both are assessed together and have a single tax bill from the county. Any reason to think I could not sell these as separate lots without an issue? Thank you.” I’m curious if it’s one APN.

Jack Butala:
Jill just nailed it. What we’re in the business of is buying and reselling APNs, the way that a car dealer is in the business of buying and reselling VIN numbers. There’s all kinds of ways to title property with legal descriptions and there’s a million ways to buy and sell. Well, actually, you know what? There’s only one way to title and license a car. They have a form, in Arizona it’s green. What color is it here? Yellow?

Jill DeWit:
Which form?

Jack Butala:
Like the car title in California. It doesn’t matter.

Jill DeWit:
I thought it was always called a pink slip, but I don’t know if it’s pink anymore, but yeah.

Jack Butala:
And you can only put one car in the form. The DMV’s got it. And this confusion comes from the DMV because we’ve all titled cars. There’s one form. One way to do it. One VIN number on that form. There’s place to sign. There’s a place to notarize in some states and that’s it. And there’s a process to submit it and you either do it right or wrong and it’s over. With land, it’s completely the opposite. There’s a ton of different ways to do it and it’s up to the recorder to make sure that it’s correct. So you can take a thousand properties and in one case, Jill and I had a deed with 10,000 properties on it, one document with 10,000 properties and a signature page at the bottom. So what Greg is saying here is I’ve got a deed or I have a deal. The legal description says lots 125 and 126 in Garden Estates, Pinel County, Arizona, Maricopa County, APN 1234567. That’s one piece of property period. If it’s one APN, it’s one piece of property.

Jill DeWit:
Then it’s one piece of property. So to divide them up is a process. You have to go back to the county and there’s a process to split them up. And then you’re going to get assigned a separate APN to each property if they can be split as two. There might be reasons why. Sometimes they have building restrictions that you can only build on and this could be one reason that they combined them. I’ve seen this where it’s a 0.1 acre and a 0.34 or something like that, and you have to have a minimum of point whatever to build on it.
So they’ll lump them together, it just makes life easier and to build on because the 0.1’s too small. So that’s why it worked out this way. And it’s probably somebody along the way did this on purpose and combine them into one. I’m restating it in a general way, which is you can’t just willy nilly go in and do it because if you saw 125 with the same APN and you resell 126 of the same APN, now you got a problem. You sold the first guy, not the second guy. The second guy’s got nothing.

Jack Butala:
Secondly, you would never ever be able to send it through title.

Jill DeWit:
They would catch it and that’s good.

Jack Butala:
We have people in our group who have done this, sold properties just like this, parcels taken out, lot numbers out of one APN and five years go by and that person who owns it goes to sell it and it’s a big, huge disaster. I’ve heard all kinds of stories like that Jill and I do. I will also tell you this, to go back to the county and split those back up and get new APNs, you better pack a lunch. In fact, you set your calendar for probably two years. It’s going to take you two years if they do it at all.

Jill DeWit:
Right. Summer, we did Maricopa, but it was still like 90 days I want to say. It was a process 90 days to turn a half acre parcel into 2.25s kind of thing. You had to go to this board and you had to submit that and you had to get a survey out by the way and all kinds of different things.

Jack Butala:
All that stuff is very, very, very geography specific. I know in the center states where there’s a lot of agriculture, there’s these old provisions where you can ice out 40 acres into your property because you want to give it as a wedding gift to like your daughter and her new husband. So there are few places where it’s like, it’s a single piece of paper and it just happens. I don’t know offhand where those places are because I’d be doing it. If you can split property easily, it’s always better. There’s a theory. The theory in economics called the bottle the case theory, where you buy the case and you sell off the bottles and you make some money, the convenience store model. That applies to real estate too, it’s difficult to do because the people that work at the county, it’s a lot of work for them to reassign APNs and all that stuff. And then by the time it’s done, everybody got reelected so it’s a new person. There’s a lot of stuff that goes on with this.

Jill DeWit:
In a good way though, often there are counties that are some places that they like it and they appreciate it and they’re excited about it because it’s going to bring in more tax money. They can collect more taxes on 10 separate properties than one big one and they like that. But again, it’s extra work and you got to find them.

Jack Butala:
It’s extra work for people who work for the government. Think about that for a second.

Jill DeWit:
I was trying to nicely say that. I don’t know how to nicely say that.

Jack Butala:
Just like that. Yeah. Today’s topic, how to structure your land business. This is the meat of the show. Jill you had some ideas.

Jill DeWit:
Well, I was thinking it’s funny because I know you often go high and I go low. So I didn’t know how high you were going to go. I thought you were just talking about… I didn’t think about the LLC and the things like that, that I know you’re thinking of. I’m thinking of structuring my land business as in how I should run my land business meaning staffing, what’s my role, who do I hire next and things like that because those are the questions that somehow find their way to me. So I’m going to talk about structuring a land business again in the questions that come to me, which are, “Who should I hire first?” That’s often what comes on right now. Okay, great Jill and Steven.
So I did everything you said I’m two years in. I quit my job. I wish I would have done it six months ago because I would have made so much more money, but no matter what I’m sitting pretty. I have a VA right now that does some of the heavy lifting for me, but I’m the one man show and I am tapped out. I need to grow my business. So how do I structure this so everything gets done and in the way that I grow the right way? So what I would say is we kind of have this in one of our programs. You kind of did I think it was the info lots where it showed you and then transaction coordinators and then start building out your team like that. So the person you have on the side right now is kind of like your assistant.
You need more than that now. Now you need to really push yourself up. I would be thinking about getting someone in place for an acquisitions team and a sales team. I would kind of start with that and then have those. So it’s you and your little assistants helping you with your due diligence on the side. And you’ve got now a sole acquisitions person and a sole salesperson, what do they do? The acquisitions person is a person that when you say, “Yep, I did all my homework, we’re buying it.” They open escrow or they do the self close, however you’re doing it.
They do everything involved and follow all your properties all the way through the system to hand them off to the salesperson. What’s that salesperson do? They’re writing descriptions, getting photographers, they’re getting the properties posted. They are making sure they’re in social media and doing all that stuff. And I say in the beginning, pick whichever one that you feel you’re lacking in the most, someone that can bring more to the table than you can provide right here. Maybe you’re really good with title agents, but you got to have the salesperson, the sales piece which drives you batty, you hate posting property, you can’t stand it. What’s so funny?

Jack Butala:
This is good. I’m actually enjoying this.

Jill DeWit:
Okay. So that might be the position you do first and you’re going to have to train them. It’s going to be a process and it’s going to take time. I’ll tell you right now, it’s probably going to be a six months process before you find, hire, and feel like you could take your foot off the gas a little bit with that salesperson and have them moving in the right direction. And when you hire these people too, I want you to tell them right away, and this is what I do too I’ve learned this, I want you to right away start creating your standard operating procedure to train someone beneath you because if you’re doing it all right, they will eventually lead a team of other people. And in the beginning, who’s going to be their first team people are their VA’s helping them.
So let’s just say, follow me on the sales path right now because you hate all this stuff. So you’ve got one guy who’s learned how to do these things really, really well. Now they can start subbing out the little jobs. They can have a VA start putting them in all the social media places that they deem appropriate, that they identify and how they want it done because they were trained by you. And then for the acquisition person, same thing can happen. Now that kind of [inaudible 00:10:28] rule I’ll tell you, I personally don’t have VAs doing acquisition and title babysitting for me. I keep that here kind of locally and those can be part time positions though too. So my number one acquisitions, a transaction coordinator what I call her is subs out people beneath her. So she’s really only handling the problem deals or the high level dollar amount transactions that kind of a thing.
And then your job now this is freeing you up to obviously handle them picking the counties, pulling the data, getting the data. You still have your assistant over here helping you with some of the little researchy parts. You might be researching a county. You have your VA go out and collect the data for you, so you can sit back and go, “Yep. That’s what I thought. We’re mailing here, here and here. Not those six places. Those are dumb.” Nothing’s happening there kind of thing. And you do the data, you do the scrubbing. The other thing you’re going to start filling in right now too is if you haven’t already a PATLive or somebody answering the calls. So that’s kind of a third piece here that you’re going to be… I can keep going.

Jack Butala:
Go. Listen, I’m telling you. I’m serious. I think this is extremely helpful. Go ahead.

Jill DeWit:
So all of these things too, start with the area that fall down the most that you either cannot stand or you do not feel that you’re as effective as you could and should be. And maybe it’s as simple as answering the phone. Maybe every time the mailer goes out, you hate that. Start with that one kind of thing and get a PATLive and you can have your PATLive person working with the acquisitions person. So here’s a little tip. We have calls come in, get input into our system overseen by a transaction coordinator and hitting all my criteria, access somebody alive, I mean all kinds of stuff before it gets to me to make those decisions. And that’s what you should be thinking about, getting you in that position. So all that’s left is again, you’re doing the data, the scrubbing, the pricing, getting the mail out, you’re reviewing the deals when they come in, you greenlight them, you either have questions or you say, “Nope, not doing it,” and then everybody else kind of does the work for you.

Jack Butala:
Yeah. I mean, there’s no way I can improve on that. The ideal scenario is in what Jill’s referring to in our education is if you have envision a circle, which is Jill at the top, a little line coming down from the circle and then another smaller circle, that’s Jill’s main person. We’ll call it a vice president. She calls it transactional coordinator and then there’s a lot of little lines coming down from the transaction coordinator as she needs them. Some of them are title people. Some of them are photographers, some of them are on the buy side or the sell side. And so now, one of the things Jill didn’t mention is she’s got a single point of contact for everything. She picks up the phone and talks to one person. She may have off of Jill’s circle on the side, an assistant that’s opening the mail and doing some research for her, whatever.
Here’s the math on what Jill just said because a lot of people are saying, “Well, that’s great. That sounds like it cost a fortune.” It doesn’t. There’s fixed costs and variable costs. The transaction coordinator’s a fixed cost person. She’s there whether we do any real estate deals or not. Everything else, every single thing else on the bottom of that transaction coordinator is a variable cost. So if we don’t do any deals, we don’t pay anybody like a title agent. So what’s the math?
Well, we’ll use the math from yesterday. We generate $100,000 of profit a month. Jill pays somebody let’s say six 50, $60,000 a year, $70,000 a year, some number. Maybe there’s a bonus too for how many deals they do. So the math on that is probably five or $8,000 with taxes a month. So now Jill’s making $100,000 a month and paying approximately let’s just be really, really, really, really loose with it, $10,000 in wages and variable costs on a transact, $10,000 in wages and VA costs and maybe two or three or eight… maybe another 10,000 in everything else like title fees and closing costs and survey costs and all that other stuff. So now you’re making a hundred grand and you’re spending 20.

Jill DeWit:
Mm-hmm (affirmative). And that’s on the acquisition.

Jack Butala:
And if she has the right person and it doesn’t happen overnight that’s right below here, she spends two hours a day working. That’s Land Academy and House Academy.

Jill DeWit:
Sorry. So that’s perfect. That’s my acquisition person then exactly what you’re saying, now my salesperson. I’m lucky enough that my sales wing can also be engineering because there’s three parts of this business that we always talk about that Steven spelled out, acquisitions, engineering, and sales. The engineering is the maps and the description and getting everything together that you need to post a property to sell it. And those two by the way, I put those two together because I have found that I can… maybe I’m lucky, I don’t know, but I can find a salesperson that can understand the engineering part.
They kind of need to. It’s kind of like a good salesperson knows what a pretty picture is, so that’s important. So that’s why I kind of put those two into one role, but then underneath them, they have other things. So like right now my sales team, my main person, has their standard operating procedure for all these different little things, and a lot of them are covered by VAs, which are great because like you just said, another variable cost. There’s days we’re posting property, there’s days we’re not, days we’re posting 10, days we’re posting one. That’s how it goes.

Jack Butala:
That’s how Jill structures her land business.

Jill DeWit:
Yeah. That’s how I read the topic. How do you structure yours?

Jack Butala:
Mine is going to be great.

Jill DeWit:
Well, actually what’s so good about this, this is a beautiful example of how different our roles are in all of our companies. And you know what? He’s not on my side of the sheet and what he’s about to talk about, I’m not on his stuff. He lets me run it. It does great. I know what I’m doing. We’re peachy and I stay out of his world.

Jack Butala:
A lot of new people that come and say, “Well, I’ve got to start an LLC. I’m just starting this. I need to do an LLC. I’ve got to get my tax guy in place.” I don’t know where they heard that. It doesn’t matter where they heard that. Here’s the right way to do it. When you’re starting out for the first year or at least for the first 10 deals, put them in your own name. Don’t worry about tax structure. Don’t worry about anything about taxes or legal anything. Just don’t worry about it at all.
There’s a tiny, tiny little chance that if something really goes wildly wrong, but you’re doing small deals anyway so that’s not how you… What you want to do that first year or at least the first 10 or 12 deals is to learn how to do the business and then at the end of it, see if you want to continue. At that point, you need to go get an LLC and start putting this property, deeding the property under the LLC name to keep it all consolidated and then file a tax return for that LLC that leads up to your personal tax return in the form of an escort. And so that’s how from a legal standpoint and an accounting standpoint, you want to structure it. And that LLC needs to have its own bank account.

Jill DeWit:
Love it. That’s pretty darn good. In less than 20 minutes, we covered both. I’m impressed.

Jack Butala:
Yeah. And I’ll tell ya. All this stuff, Jill’s part you can’t Google it. You can only learn that stuff from a serious professional. My part about how to structure a company and LLCs, just Google it and do some research and find a source out there in addition to us to get yourself educated about some of this ancillary stuff.

Jill DeWit:
Thank you. That was beautiful. Happy you could join us today. Five days a week, you can find this right here on the Land Academy Show.

Jack Butala:
Tomorrow the episode on the Land Academy Show is called Land Business. In the land business… It’s cut off so I can’t read it. How much data do we actually consume in our land business? You are not alone in your real estate ambition.

Jill DeWit:
I thought this was all data.

Jack Butala:
It is.

Jill DeWit:
I know. That’s why I thought it was kind of a rhetorical question.

Jack Butala:
People fall over even really seasoned real estate professionals fall over. The data always tells you what to do.

Jill DeWit:
It’s true.

Jack Butala:
There’s the tiny little part of a emotion to this, but it’s very tiny.

Jill DeWit:
It’s true.

Jack Butala:
And we’ll break that all out tomorrow.

Jill DeWit:
Thank you for tuning in. We hope you find our content valuable and we appreciate your support. If you haven’t already, please zip on over to our YouTube channel and hit the subscribe button.

Jack Butala:
And your comments and suggestions help us to create the type of content you’re here for. Hitting the like button on your favorite episodes helps to support our channel’s algorithm engage your interest in the future shows. We’re Steve and Jill.

Jill DeWit:
We’re Steve and Jill.

Jack Butala:
Information.

Jill DeWit:
And inspiration-

Jack Butala:
To buy undervalued property.

—————————————-

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.

Math on Rental Property vs Buying and Reselling Land (LA 1335)

Math on Rental Property vs Buying and Reselling Land (LA 1335)

Transcript:

Jack Butala:
Steve and Jill here.

Jill DeWit:
Hi.

Jack 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.

Jack Butala:
Today, Jill and I took take a look at or talk about math on a rental property, versus buying and reselling land.

Jill DeWit:
I would like to take a moment and explain to everyone, this is business week. So if it sounds a little dry, it’s really some important business topics that we’re covering.

Jack Butala:
I love talking about this stuff, that’s the truth of it.

Jill DeWit:
That’s good. So, it’s exciting for you.

Jack Butala:
The whole premise of this topic is, we get some version of this all the time, “Hey, I’ve got a couple of hundred thousand bucks. What should I do? How can I really maximize,” the question is, how can I maximize it for my personality type? Because we have friends who have made single family, residential, rental empires, not joking. And we have friends who have apartment building empires. And everybody’s real happy and comfortable, and it all makes sense to them. And they look at us after a couple of drinks and they say, “What the hell do you guys mean you buy and sell land? To which I say, “What the hell do you guys mean? You 22 four-room apartments in Los Angeles, or four-unit apartments. That’s my nightmare.” And their nightmare is to buy rural vacant land. So, it ends up being a pretty funny conversation, almost always. But that’s what this show’s about.

Jill DeWit:
Thank you.

Jack 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:
Greg wrote, “I’m so sorry for not being a good rule follower without understanding the reasons behind things.”

Jack Butala:
Okay, stop right there. Greg, I love this. I love it. I love that you’re not a rule follower, and I love that you question everything. I think that those elements of a personality make you massively successful at whatever you’re going to try.

Jill DeWit:
I don’t usually get the same response out of you.

Jack Butala:
You people all need to start wearing a mask.

Jill DeWit:
That’s funny.

Jack Butala:
What do you mean? Why do I have to wear a mask? I’m just telling you, you have to. That’s a rule follower.

Jill DeWit:
I was with the kids in Costco the other day. Totally this. I’m like, all right. We’re weren’t sure if we were allowed to walk around and eat. They had a food cart right there. And I was actually with kid one and a friend, so I had two guys with me, and they’re starving. I’m like, “All right, we’re going to go over to Costco to hit the little food area and get some hot dogs and some drinks.” But they took all the tables out, right, because it’s all indoors in this Costco, because it’s in Seattle. I’m like, oh, okay. So, I’m not sure if we’re allowed to walk around the store eating like this. I think we are; it’s Costco. But anyway, I just turned to both of them real quick and I said, “Are we going to ask for forgiveness or permission?” They said, “Forgiveness” in unison. I said, “Nice. Let’s go get you guys some food.”

Jack Butala:
You’re a good mom.

Jill DeWit:
I am a good mom. Thank you. It’s really funny.

Jack Butala:
Can you repeat this?

Jill DeWit:
Okay, let’s go back.

Jack Butala:
Because I just love this.

Jill DeWit:
But this is how I roll anyway.

Jack Butala:
Me too.

Jill DeWit:
I’m always ask for forgiveness before permission.

Jack Butala:
Me too.

Jill DeWit:
So Greg says, “I’m so sorry for not being a good rule follower without understanding the reasons behind. Of course, I’ve heard if the owners are deceased, move on.
Well, I don’t think that applies, but okay, we’ll keep going. “If doing a self-close, agree to move on. But if going through title, I would imagine the title company would take care of these sorts of issues. And if the purchase agreement was worded so that the seller would cover any fees associated with providing clear and transferrable title, that would protect me from large attorney fees. I don’t pay until title closes. So I’m not tying up my capital. What am I missing? Under what circumstances does this not work? And is this a bad idea? Thank you so much for your experience.”

Jack Butala:
Question one he says, what am I missing? Question two, what circumstances is this a good idea or a bad idea?
So I’m going to, let’s take a couple steps back, because this is an incredibly intelligent question. And I can tell by the way you’re wording this, that you’re very, very new. So Jill and I together are going to dispel this hopefully efficiently, and so it’s easy to understand.
This is what almost always happens. Two people buy a property. Somebody dies, and hopefully the second person is alive and they’re willing to sell the property, and they’re making decisions for themselves. In a lot of cases, second person’s dead too. So this becomes this mystery of who can convey, legally convey the property so that when you get it, you’re the buyer now, you actually own it, and everything’s cool, and there’s not a cloud on the title.
And there’s a lot of variables. How it’s titled is a big deal. If it’s titled in joint tenants and that one person is still alive, you’re all set. This is the vast majority of the time where you run into problems…

Jill DeWit:
Can I follow-

Jack Butala:
And Jill, you’re an expert on this.

Jill DeWit:
The full description is, what you’re looking for is joint tenants with rights of survivorship. And that tells you exactly what it is right there. Rights of survivorship, and it could be four people, it could be two people, it could be eight people, it means that when whoever passes on, that is divided equally among who are left, and nothing special needs to happen. There’s no probate or anything like that. It’s just automatic. Sorry.

Jack Butala:
By the way, the stuff that we’re talking about here, this is not a rule following thing; this is how it is. And you don’t bend the rules on this. There’s no recorder or title agent that says, “Oh, they all died.”

Jill DeWit:
“If we file this paper, it’s okay.

Jack Butala:
Yeah, there’s no silver bullet.

Jill DeWit:
You either can or you can’t.

Jack Butala:
Right. What happens often, and I think what generates the most of these questions, is both people are dead, and the property is still in that person’s name or in the parents’ name, let’s just say. And the siblings or the person who is staring at a will that says I got all my parents’ stuff, in the will, is saying, “All right, I’m ready to do this deal. Let’s do it.”
And it’s not going to happen.

Jill DeWit:
Yeah, it’s not that easy.

Jack Butala:
The only way you can undo that… There’s a bunch of ways. It depends on the state that it’s in. This is a whole week of shows on this stuff.
But you are right about this. A good title agent is going to tell you real quick whether or not you can do this. And if we have any issues this, we do one or two things.
If Jill thinks there’s a chance, she sends it through a title agent. If there’s no chance, we do pass. And we have a database full of thousands and thousands of awesome real estate deals that we never purchased, because of these issues.

Jill DeWit:
So, I’m going to follow up this for you, Greg. So you’re looking for joint tenants. We just covered that.
You’re also looking for maybe it’s in a trust. That’s a whole different ball game. If it’s the Bob Smith Family Trust of 1994, and we’ve got the trust document showing everything, the property’s in the trust now, it’s not in Bob Smith’s name, this is a whole different scenario, too, we’re all set there. We just need the trust showing who is entitled, who is the person supposed to sign it, basically.

Jack Butala:
The executor.

Jill DeWit:
The executor, that’s what I was trying to say. That is a different scenario too.
So, there are a couple of situations. Just because somebody’s dead doesn’t mean move on. I guess that’s my point, is dig a little bit deeper, because there are a couple caveats. And Steven’s exactly right. I’ve done enough that I can eyeball it and know that “Ah, shoot, this state’s going to take a probate.” Now with COVID it’s going to take six months, when it used to take 90 days, and I don’t want to wait that long, kind of thing. And nowadays with COVID, I will tell the people, “Shucks, here’s what you’re probably going to need to do. Do you have a family attorney who helped you with some other things? Call them back and get this done. And then when it’s done and it’s in your name, then I’d love to buy it from you,” that kind of thing. And just explain it. “I don’t want to take this on, I don’t want to take this down.”
And some people do. I know a lot of members that do. They’ll say, “You know what? I’ll help this guy. Because I’m buying it at 1000 and it’s worth 50. I’ll help the guy, I’ll find him an attorney, I’ll hold the seller’s hand, I’ll pay for it, because I’m going to get the property in the end.” And they want to do those kind of deals. So, that’s another personal preference.

Jack Butala:
“So, that’s great, guys. What the hell do I do? That’s all complicated; I don’t understand anything you just said.”
Here’s what you do. Every single time you talk to a seller, you work this into your script, this sentence: “Is everybody alive and willing to sign? I’m showing on my computer screen that John and Sally Smith own this property as joint tenants with rights of survivorship.” And then if you’re probably talking to the kids or one of the parents, the seller says, “Sally Smith died in 1987. John Smith is totally alive.” Done. Okay, we can do the deal. So you do that. And that’s the good news.
If that’s not the case, the answer to the question is, no, everybody’s dead, and in their name, you have a choice right at that point.

Jill DeWit:
I’ll help everybody else out too. There’s a list of 10 things that you want to ask a seller when they first call you back. And if you want a free copy, which is true, my quick little inbound seller call sheet, you can get it for free on our website. If you want to go over to landinvestors.com, I think it’s on the left hand side. Scroll down. It says “Jill’s inbound seller call sheet.”

Jack Butala:
The title of it is what it actually is.

Jill DeWit:
It is. Go print it out, and you’ll have all the questions right then and there. Because you want to find this out. This is the kind of thing too you want to find out right away. The minute the person’s calling you, you want to find this out. You don’t want to go spend an hour looking at the property, looking at the numbers, seeing what’s possible, doing your due diligence, and then come to find out can’t buy it anyway. Great, I just wasted an hour.

Jack Butala:
Yep. You want to smoke that out real fast.

Jill DeWit:
Totally.

Jack Butala:
You can smoke out all this stuff out really fast.

Jill DeWit:
Yeah, you can. If you have that sheet, I’ll tell you right now, and I’m going to do a thing… What’s today?. Tuesday. Oh wait, it’s tomorrow. It is tomorrow. I am going to be live on YouTube and Facebook, I’m telling you right now and I’m going to do a quick little Due Diligence 101. And I’ll show you my sheet. I’ll have the sheet right there, and I’ll show you what to use to do your due diligence, the tool that I use every day, it’s a neighbor scoop, and how to navigate it.

Jack Butala:
Today’s topic, the math on rental property, versus buying and reselling land. You are not alone. Oh, this is why you’re listening.

Jill DeWit:
It’s just a coincidence that I thought about that. I’m like, “Wait a minute. Today’s Tuesday. Tomorrow’s Wednesday.”

Jack Butala:
I saw it on the calendar. I wasn’t going to say anything.

Jill DeWit:
I wasn’t going to say anything.

Jack Butala:
Why?

Jill DeWit:
I saw it on the calendar, but I don’t know what you guys do.
Oh, okay. It’s a pretend calendar. We do it just to throw you off.

Jack Butala:
I mean stuff changes every minute, as it should.

Jill DeWit:
Okay.

Jack Butala:
You’ve got a few hundred thousand dollars, or you’ve got five thousand dollars, or you’ve got zero. You want to maximize, and you know you want to be in the real estate business, then you’re probably young. If you don’t have any money, you’re young. If you’re old like me, I have a lot of money and you don’t know what to do with it, or some version of that in between.

Jill DeWit:
Who’s to say? You’re young and stupid with no money, or you’re old and stupid with a lot of money and just don’t think-

Jack Butala:
Yeah. And so much experience that you’re angry about everything.

Jill DeWit:
Exactly. Oh my gosh. Okay.

Jack Butala:
The question is, it’s a twofold question. How are you going to maximize your revenue? And then the second part of that is with your personality type. I’ve never had success with the rental business when I’m involved with the operations. I don’t have the patience for it.
What happens is this. This is a true story. True stories. And we never learn our lesson. We’ll probably do it next year. We go and buy a bunch of rental property, however that is .it’s either apartment buildings, houses, or in the case now here, it’s going to be mobile home parks, and individual mobile homes. And so you plow a bunch of money into it. Usually it’s in the form of a down payment, or you raise capital, or whatever, and you get a return.
And so when you buy rental property, you look at return on investment, internal rate of return, and things that. And if you do everything right, you’re going to be in the 20s. If you leverage it properly, you’ve got the right partners, people actually pay their rent, believe it or not, and right now a lot of people are not paying their rent, you’re going to get a 20% return. And then you’re done. Theoretically, it’s passive income. It never ends up being passive income. There’s always stuff to do. There’s always phone calls that you get. But it’s about as passive as you can get in the real estate venue, in the real estate realm.
Versus, you go and buy a piece of property. Here’s a real deal. Jill and I are buying two pieces of property in central California that are close to a small town. They’re each 20 acres I think, on a state road, for about $10,000 each. We’ll sell those properties for 50 to 60 to $70,000 each. We don’t know, some number that. So, $20,000 in, $100,000 out, $150,000 out, whatever the numbers are.
Is this a typical deal for us? Yeah. Was it a typical deal for us three years ago? No. A typical deal for us three years ago was buy for 20 and sell for 40, 60, 70. I guess that’s pretty close.
And if you know, Jill and I love acquisitions. We are acquisition people. I’ve been in some form of acquisitions since I was a young professional adult. And that will always remain. I think that the allure, what’s the real math on that? So let just answer the topic. If we do two or three deals like that, we’ve made 3 or $400,000. Let’s say we do a deal a quarter, which I think an infant can do, we’ve made 4 or $500,000 this year. A better way to say it is, if you’re doing all this stuff right, you make a hundred grand a month, you make a million dollars a year buying and selling land.

Jill DeWit:
Those are good numbers. That’s very attainable.

Jack Butala:
That’s very realistic. You’re not going to do that your first year in business. Maybe not even your second year. But if you stick with it. And now we have hundreds and hundreds of people in our group that are sending us thank you notes saying, “Yeah, you guys are right.” So, this isn’t some fluff.
You’ve got to work at it though. You own a company, you work eight hours a day, at least. In the beginning it’s a lot more than that. So, that’s the real math.
The real math on rental houses are, if you are lucky enough to have a source of capital that you don’t care about… I’ll give you the business model of a great friend of ours. This guy is a very experienced rental house manager. His wife has a brother, his brother-in-law, who sold his medical company and nets out $50 million. Doesn’t know what to do, because he’s a medical guy, he’s not a money person.
Our friend goes to the brother-in-law and says, “Hey, why don’t you set up a line of credit? I’ll go buy a bunch of houses, for cash. It takes the leverage out of it entirely.” There’s big debates about leveraging or not leveraging. Let’s just make it simple. He starts buying houses for a $100,000, and he rents them out for a thousand dollars. And he gets the portfolio up to a hundred houses. Now he’s making $100,000 dollars a month, and he’s just managing the houses. And when people move out, he rents them out. And he drives his little old 4Runner around like an old man, and pays the taxes on it, and he’s just the happiest guy ever. He makes about a million dollars a year, he and his partner.
So, which one would you rather do? And that took him three years to build that up. And you’ve got to clean the houses out. I’m oversimplifying. The houses that he’s buying are a mess. They’re old, from the 50s, in central Phoenix. The type of tenant you’re going to get, you’re going to get two or three or four tenants in there before you get the one that stays. There’s a lot of stuff involved.

Jill DeWit:
I’m laughing. I’m thinking about his horror stories. He can tell right away when people roll up, based on how their car looks and the trash in their car.

Jack Butala:
He looks in their back seat.

Jill DeWit:
Right? He does this. He’s learned to check that, to see what kind of tenant they’re going to be. Because if their car is a disaster, we got a really good idea of what’s going to happen in the house.

Jack Butala:
So, we both make the same amount of money. And Jill and I live at the beach with a cocktail in our hand just about every single afternoon. Because all we’re supposed to do is make a hundred grand a month buying and selling land? She doesn’t even need me for that.
So, that’s the math. The math is about the same on all these real estate investments. It’s just truly who you are.

Jill DeWit:
Right. That’s good. That’s a great way to say that. You summed it up perfectly. Happy you could join us today. Five days a week you can find us here on the Land Academy Show.

Jack Butala:
Tomorrow the episode on the Land Academy Show is how to structure your land business. You are not alone in your real estate ambition.
I forgot to mention there’s two components to these real estate businesses. And here’s where he might win, and we might not. There’s the income statement and the balance sheet. We covered the income statement. We both make the same amount of money. Great. He’s collecting appreciation on these assets, year over year, so his assets, on our national average houses go up 4% a year, nationally. Of course, we don’t care about national statistics, because in California they go up 11% and in Detroit they go down a negative 11%. So you’re never just four. So he’s collecting some pretty massive appreciation on a hundred houses as he goes, and he’s got something to sell at the end. There’s a pretty serious exit strategy. To which I say, and my hats off to him.
And he’s right. He’s right and I’m wrong. This is not our only business. We don’t just buy and sell. We have so much more free time. We have other companies, we have companies like Neighbor Scoop or Offers to Owners. Both companies can be, it depends on which month you look at them, can be profitable, and sellable. So we’ve chosen, because we have some tech talent, or tech patience, I should say, to build our balance sheet through other stuff, and diversify.

Jill DeWit:
That’s true. Awesome. Thank you for tuning in. We hope you find our content valuable, and we appreciate your support. If you haven’t already, please zip on over to our YouTube channel and hit that Subscribe button.

Jack Butala:
Your comments and suggestions help us to create the type of content you’re here for. Hitting the Like button helps to support our channel’s algorithm, and gauge your interest in future shows.

Jill DeWit:
We are Steve and Jill.

Jack Butala:
Information,

Jill DeWit:
and inspiration,

Jack Butala:
to buy undervalued property.

—————————————-

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.

Taxes and Your Land Business (LA 1334)

Taxes and Your Land Business (LA 1334)

Transcript:

Jack Butala:
Steve and Jill here.

Jill DeWit:
Hi.

Jack 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.

Jack Butala:
Today, jill and I talk about the fantastically interesting topic called taxes in your land business.

Jill DeWit:
I’m excited.

Jack Butala:
Me too. I can’t wait to talk about taxes. No, here-

Jill DeWit:
We talk about this often, all the time. Gosh, it’s a topic that warms my heart.

Jack Butala:
The truth of it is it’s pretty necessary because if you do everything right, this is maybe the second or third or fourth most expensive line item in your expenses for your company. And with ours, it’s probably number two or three.

Jill DeWit:
True or false. If you do everything right, you’re a little bit teary eyed when tax time comes/however, that means you did well.

Jack Butala:
That’s right.

Jill DeWit:
Okay.

Jack Butala:
It’s a bittersweet situation.

Jill DeWit:
Oh, okay.

Jack 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:
This is a long one, I will warn you. Chris asks, “I’m new to the land business and looking for others to join an accountability group. Whether you just joined land Academy as I did a few days ago, or are otherwise somewhat new to the business, it’s all good. I anticipate we’ll be running into a lot of the same questions and hurdles around the same time as we do our research, get out our first mailers. Mine will go out next week. Field our first phone calls, et cetera. More answers and knowledge than we could ever ask for are here in the forums, education/podcast/ [inaudible 00:01:50] calls, et cetera. So, we’re covered there, but what we can do is provide each other some accountability and encouragement as we rack up our first success stories, not to mention learning from whatever unique talents/experience we each bring to the table. And that landed us in this business.”
And in parentheses, Chris says he’s an experienced software developer and business owner himself.

Jack Butala:
Excellent.

Jill DeWit:
That’s great.

Jack Butala:
Excellent.

Jill DeWit:
“Perhaps a biweekly networking call over Zoom and a free Slack channel to stay in touch in the meantime. Anyone interested? Please reply to this thread or send me a PM. Private message. Thanks.”

Jack Butala:
And there were about 20 people in there that replied to this almost immediately.

Jill DeWit:
I bet. This is a hot topic.

Jack Butala:
Right. So what do you think?

Jill DeWit:
I think it’s great. I think it’s something we should do and I think it’s something we are doing.

Jack Butala:
Go ahead.

Jill DeWit:
We are going to put together something for you. So in the meantime, Chris, I’m so happy. And for those of you who have created your own groups, because you know that that’s the one thing that you uniquely need. Some people do, some people don’t. It doesn’t … Nobody’s right or wrong. It’s just some people need it, and those I’m so impressed and proud about everybody that have taken this on themselves and just said, “I know I need someone making me check in and keeping me on track.” And I think this is awesome.

Jack Butala:
So do I.

Jill DeWit:
And our group has grown to the level where you have enough people, obviously, that this has become more of a thing. And so, we’re going to take it. We’re going to provide tools and resources to help you.

Jack Butala:
This falls under the category for me of what could possibly be bad about this? What’s bad about exercising? Nothing. What’s bad about more education? Nothing. So this, I think, accountability is just one of the cornerstones of succeeding at anything. And so, since we started Land Academy, I’d love to know your opinion on this too, and we’ve been doing this for five or six years now. I’ve learned a lot of stuff. Jill and I are just natural born self-starters. She can go off and I won’t talk to her about a specific topic for three or four days and come back and say, “Okay, we’ve got six properties under contract. Here’s the numbers. I think we’re going to net this. I took the money out of this bank account. And do you have anything to say about it?”
Which I think the first time I had some stuff to say about it years ago. This is years and years ago. She’s just a soft starter, period. So am I. So, I incorrectly assume everybody else is. And I think that this would be great, and we’re working through how we’re going to do … We are going to do some version of this.

Jill DeWit:
Mm-hmm (affirmative).

Jack Butala:
A couple of weeks ago or a week ago, I guess, and we’ll talk more about it on the Thursday call if you remember, the Thursday webinar. We asked everybody to tell us what … The next level of Land Academy, what they’d like out of it, and this is what came up the most. Some type of accountability group. So, we are going to … This will develop itself or we will develop some version of this pretty soon, actually.

Jill DeWit:
It’s like when you think about anything you think about … I was just thinking about education. If I was [inaudible 00:05:07] … There’s some people that you give them the semester’s work, right? So you’re in a college class. Some people, if they have the whole syllabus, it’s kind of like me, it’s kind of like I want to get through it and then goof off and read it. I kind of read ahead. I like to work ahead, have it done, so that means I can have more play time on the backside.

Jack Butala:
I’m the same way.

Jill DeWit:
That’s my motivation. That’s really the reason why.

Jack Butala:
Same personality.

Jill DeWit:
And then there’s people that they need week by week by week by week by week kind of thing. But either way, it’s good to have. I’m just thinking … So I was thinking about college courses and how people are different and it doesn’t mean you’re better or smarter or anything like that. It’s just how you roll, number one. And then some people I know personally that will fall if they don’t have these deadlines. What’s really interesting to me is that I think what you and I do, what’s different is you and I create self-imposed deadlines, and some people can’t do that.

Jack Butala:
Yeah.

Jill DeWit:
I really think that’s the difference. And if they do, they can’t stick to them. And that’s where this comes in too.

Jack Butala:
So, I was thinking about this because I’ve really spent a lot of time on this and it will come to reality.

Jill DeWit:
Mm-hmm (affirmative).

Jack Butala:
Nowhere in college is there a class called … In your senior year how to interview or how to find a job. Maybe there is now, but there certainly wasn’t when I had it. That would have been maybe the most useful class there ever was or a mandatory job fair on Tuesday.

Jill DeWit:
Why is that? We had a home ec … We talked about this today.

Jack Butala:
Yeah. Yeah.

Jill DeWit:
I had home ec where I learned how to make a dress, but no one taught me how to fill out a resume.

Jack Butala:
Yeah.

Jill DeWit:
Like, okay.

Jack Butala:
And especially at college, there should be some type of course. I think there are … I think community college is packed full of stuff like this, but I think the universities don’t do it or maybe they do now.

Jill DeWit:
I don’t know.

Jack Butala:
They should have a course like a personal financing. Personal finances.

Jill DeWit:
That would be great.

Jack Butala:
How to mortgage a house. How to get through your life. [crosstalk 00:07:12]. That’s the course. The course should be called how to get through your life.

Jill DeWit:
Why not take out a new credit card to pay off X? Don’t do that people.

Jack Butala:
All that.

Jill DeWit:
People … It’s a good one.

Jack Butala:
So that’s what this kind of is.

Jill DeWit:
Okay.

Jack Butala:
And it’s based obviously on the knowledge that we’ve developed on how to buy and sell land. It’s based on a massive amount of mistakes that Jill and I made collectively and individually to help you not make those mistakes.

Jill DeWit:
What was your latest mistake?

Jack Butala:
Oh jeez. Personally or socially?

Jill DeWit:
Oh, wait, wait, wait. I did the same. Business or social?

Jack Butala:
[crosstalk 00:07:45]. I’ll answer it.

Jill DeWit:
All right. Go ahead.

Jack Butala:
If you do too, though, after this.

Jill DeWit:
Okay.

Jack Butala:
Most recent business mistake that I made [crosstalk 00:07:54].

Jill DeWit:
[crosstalk 00:07:55] own business.

Jack Butala:
And it’s recent. No, it’s in the last few days. Is getting some extremely high level private equity people involved in this big picture mobile home thing that I’m working on to the point where they’re trying to take it over. And we’re still in the discussion stages and it’s pretty funny that … Here’s what I came out of that with. There’s an incredible amount of low level work and attention. That’s required to succeed at anything. Operation stuff and failing and succeeding and one deal at a time kind of thing. And then you get to 10 and then you get to 100.
Private equity groups in general will raise a fund, a five, two, three, four, $500 million fund and say, “Let’s go buy as many mobile home parks as we possibly can. We’re going to put the management company in place that’s very expensive, nationally recognized because that’s the easiest way to raise capital.” It’s all driven. And then let’s just kind of see what happens. And that’s just … Oh, and by the way, here’s a two inch contract that you need to sign, and if something goes wrong, we get to take your house and your kids and every other company that you own.

Jill DeWit:
Right. There’s no guarantee. No, thank you.

Jack Butala:
So, I didn’t actually get it … To answer your question directly, I didn’t let it get to the point where it could have been a mistake, but you get to a point in your life where it’s … Things are going great. And yeah. I mean, we get opportunities, Jill and I, to double our income and revenue and triple it sometimes for all kinds of stuff. Do we need to do that and complicate our lives?

Jill DeWit:
Right.

Jack Butala:
What’s the most recent business mistake you’ve made?

Jill DeWit:
You know, it’s funny. It’s a little bit of accountability. I didn’t … I have a project that I started a couple of years ago and I even paid five grand to hold myself accountable. I actually … I can’t believe I’m admitting this. It’s obviously not important to me. If things are important to you, you follow through. If they’re not important to you, they don’t follow through. But I started a project a while back and I let it … I keep pushing it down on the to do list and I need to bring it back on the to do list. So, it’s holding myself … For Land Academy, I have no trouble. I am here. I show up. I do everything. I’m here for our community.

Jack Butala:
Yeah.

Jill DeWit:
I’m here for the shows.

Jack Butala:
Me too.

Jill DeWit:
The calls. You name it. I’ll get pulled out of stuff. But my own little personal projects that I do, I push those down, and I don’t know why it sounded [inaudible 00:10:29].

Jack Butala:
That’s not good.

Jill DeWit:
I know. It’s okay. Because you know what? This other stuff brings me such joy that it …

Jack Butala:
I know. I’ll tell you. Ironically, this isn’t the topic we will get to topic here in a second.

Jill DeWit:
Yeah, exactly. Eventually.

Jack Butala:
Our last child is still in the house. He’s 17. And I incorrectly assumed that he was as much of a self starter as Jill and I are. And so, now we’re going to have to take a bunch of steps back and really … If you’re a parent, you know exactly what I’m talking about and kind of retrace our steps back and say, okay, all right. He’s not as much of a self starter as I thought. He’s kind of making some decisions that he shouldn’t be. Some of it’s COVID, some of it’s not. It doesn’t matter. It’s life. It’s lifestyle. It’s not just owning a business.

Jill DeWit:
Mm-hmm (affirmative). It’s true.

Jack Butala:
Today’s topic. Taxes and your land business. This is the meat of the show.

Jill DeWit:
Everybody’s like “Finally. Thanks.”

Jack Butala:
I know.

Jill DeWit:
Geez.

Jack Butala:
No, they just hit the fast forward button.

Jill DeWit:
Oh, that’s it.

Jack Butala:
Like when you’re watching a movie [crosstalk 00:00:11:33].

Jill DeWit:
Skim, skim, skim, skim, skim. Got it.

Jack Butala:
With an Apple product, you can plus 10 seconds on the TV, you just hit it until … Okay. Yeah. So this is the topic anyway.

Jill DeWit:
Does it sound like we’re avoiding talking about taxes? Because maybe we are.

Jack Butala:
Just like real life.

Jill DeWit:
Because nobody wants to talk about it.

Jack Butala:
I got several questions about 1031 exchanges recently. It’s kind of a topic actually also in land investors. So here’s the deal. 1031 exchange is a way to postpone paying capital gains taxes on real estate and some other types of assets. So, if I’m an accountant happily going along and Jill’s a lawyer happily going along and we buy a mobile home park and it gets improved and everything’s great and a couple years later, or a few years later, or whatever the numbers end up being, we do decide to sell it. We make a million bucks. We are very subject to capital gains. And so, we are pretty heavily taxed on that.
As an alternative, this is years … 1031 exchanges are ancient. They go way before me. They started … As an alternative, when we go to sell that and we made a million bucks on it, We can go buy a like kind of piece of property. In this case, in the simplest terms, buy another mobile home park, probably because we have so much capital now, put a little bit more money down, and then go do the same thing and on and on and on. It’s the government’s way, in a healthy way I think, to encourage us to continue to keep putting money back into real estate and money back into the market, so everybody kind of wins. That’s the theory, anyway.
The question becomes, okay, great. I just joined Land Academy. I don’t want to pay taxes … I’m buying these pieces of land anyway. I’m going to buy another one next month. And if everything goes great, I’m going to buy two the month after that. And so, I don’t want to pay taxes on it. I want a 10 … It’s called 1031ing your way up to exit is what I call it. If this is your business, and please, I need to disclaim this. Jill, you said this right before the show. We’re not accountants. I have an accounting background. Stuff changes all the time. You can’t take my word … Don’t run out there based on this information that you’re getting solely on this show and go do this stuff. Check with accountants. I hope this goes without saying. I hate when people disclaim stuff.

Jill DeWit:
But you need to.

Jack Butala:
We have to.

Jill DeWit:
Uh-huh (affirmative).

Jack Butala:
The way that Jill and I buy real estate and the way that most people who have been in this for a while buy real estate, it falls under ordinary income the same way it would if you own a convenience store. So, that’s the same type of taxation that you fall in. So, can you 1031 your way up to an exit strategy with land? Maybe if you’re a full time accountant and you’re doing this stuff on the side, but even then, I don’t think … I’m not sure. Check with your accountant. I don’t think you can. So what ends up happening … What’s the real deal with taxes in your land business?
You’re going to pay federal income tax. You are going to be taxed in an ordinary income fashion just like you own any type of company. I always use a convenience store. So, you have 50 convenience stores. They make a bunch of money. You’re going to file a tax return at the end. Just the way that you would any way out, but I’ll tell you, here’s a friendly tip. The feds love W-2 income withholding. It’s been that way since as long as I can remember. And they give you some pretty good tax advantages for it if you structured it in an LLC. So, talk to your accountant and make sure that you’re maximizing your tax benefit with W … Meaning you give yourself a paycheck when you can. All of this matters when you’re making money. None of this matters in the first probably two or three years of doing this.

Jill DeWit:
Part time or full … Part time. Until you’re full time.

Jack Butala:
Yeah. Until you’ve got an LLC, you quit your job and you’re rolling some money in and then you’ve got to really get serious about it.

Jill DeWit:
Right.

Jack Butala:
There’s several people that I’ve seen professionally throughout my career, not necessarily just with land, but in all types of businesses that let the tax tail wag the dog. They’re obsessed. I can’t pay any taxes. I’ve got to do this. I got to do this. I’m going to put my money into the stock market. There’s all endless tax advantages that you can reduce your taxation down to a minimal amount, within the limits of the law. It’s no funny business. All the rich people I know, and Jill and I know a bunch of rich people way more wealthy than us say some version of this. Pay your taxes.

Jill DeWit:
Yeah. I was going to say one thing too. I have learned … I personally experienced and then I’ve talked to people in our community that have experienced this too. Different accountants give you different feedback and it’s not necessarily state driven. I just think it’s how they interpret the rules. So, I just wanted to say, don’t go with that first accountant that you call and says this is the way it is. ABCD. I would interview a couple accountants kind of like interviewing brokers. It’s like if I want to get a broker’s opinion on a property, I’m going to call a couple of different brokers and I’m going to see two are on the same page, and then I’m going to mesh with one of them. I really want you to do that with an accountant too. I want you to interview like five accountants and there’s going to be two or three, they’re on the same page, that they are saying the same thing.
You’re like, “All right. I believe these guys to be knowledgeable.” These three are all in general consensus. This guy’s way over here and this guy’s way over here about what I should do. These three are in the general consensus of what’s the right way to run my business and file my taxes. And then I want you to pick the one that is responsive and you mesh with.

Jack Butala:
I mean, in layman terms, what she’s saying, and she’s absolutely right, is this: there are some accountants who are so incredibly conservative and they read the IRC, the Internal Revenue Code and they say, “All right. So for every state you buy a piece of property in this year, you have to file a state tax return. And just to be safe, because want to make sure we do it right, we’re going to file each state tax return on the federal level amount, because that’s how it works.” And you will tax yourself into …Out of business if you do that overnight.

Jill DeWit:
Right.

Jack Butala:
So there are some accountants that say, “You know what? Come on over here. Come over here.”

Jill DeWit:
Yeah.

Jack Butala:
You don’t have to pay any taxes. I’m going to show you how. So, you don’t want that. You don’t want either extreme of that in any way. Jill’s right.

Jill DeWit:
Thank you. Yeah. I’ve [inaudible 00:18:16] also too, I’ve talked to accountants. It’s like there’s a sweet spot. There’s a … I love … Usually like a pilot. I would like an older seasoned pilot who’s been through all kinds of stuff. An accountant, I kind of want an older seasoned accountant, but not one that’s so old that he doesn’t read all the new stuff. I don’t want … And I’ve had attorneys and accountants like this in the past that were like, “This is not going to work.” Because they’ve said, “Look, I’ve been doing it this way since 1962 and we’re not going to change it.” I’m like, “Well, you know what? Things have changed since you started this in 1962.”

Jack Butala:
Things changed last week with taxes.

Jill DeWit:
Exactly.

Jack Butala:
That’s one of these things you really need to be up on it.

Jill DeWit:
Yeah. Truth time. We are personally transitioning to a different accountant/financial planner. We’re interviewing right now and probably going to make a switch because we’ve kind of outgrown our guy. And it’s not that he’s not a … He’s a great guy. We love him and he was great. But we’re dancing in a different level of finances that are a little bit beyond his expertise.

Jack Butala:
We’ve really grown in the last couple of years, the last few years, and our tax … Just the raw tax dollars that we’re we’re spending now are massive. It’s in the seven digits. So it just needs to be looked at there’s. A lot of longterm planning. What’s missing from our tax situation is longterm planning. We take a look at everything in September, October, right about now, and make some adjustments to make sure that we hit our goals, both revenue and net income wise, by the December 31st, but there’s more to it than that now. There’s long term planning.

Jill DeWit:
Exactly. Woo. I know.

Jack Butala:
That was painful.

Jill DeWit:
That’s a tough topic, but I think it’s a good topic. I think everybody wants to know. I wish there was one … I wish there was a one size fits all, but there isn’t. I’m sure you tuned in hoping that we can say, “Do A, B, C, D, and E and you’re set.” Unfortunately, it’s not that easy.

Jack Butala:
And I’ll tell you one last thing about this topic. There’s something about this topic. There’s a few topics in the world like this in the planet. This topic, for some reason, if it ever reaches on any type of forum or it comes up once in a while on our Thursday call as a question, it just becomes this heated, massive debate about the right way to do it. And Jill nailed it. There’s no right way to do it. It’s what’s right for you. It’s just like how politics just enrage certain people. For some reason, this topic enrages certain people. And they just … We all know these people professionally and they’ll … If you go to dinner and start talking about taxes, you might as well excuse yourself.

Jill DeWit:
Or just bring up religion or bring up anything. Yeah.

Jack Butala:
It just sends some … I’ve never heard a woman getting raised over taxes, but it’s just-

Jill DeWit:
I will.

Jack Butala:
Older men for some reason. And I don’t mean mad about paying taxes. Yeah. We’re all … No one’s happy when they pay taxes I don’t think.

Jill DeWit:
Oh, dig their heels in about [crosstalk 00:21:25].

Jack Butala:
Just angry, just livid. Or, “No, you’ve got it wrong. This is how you do a 1031 exchange.” People listening to this right now are all … They’re probably throwing their stuff all around the room. Certain people. It just makes … And it’ll be on YouTube. Watch the comments on YouTube. These guys don’t know what they’re talking about. He’s got this that. It’s hilarious.

Jill DeWit:
Everybody has their own opinion.

Jack Butala:
Yeah.

Jill DeWit:
[inaudible 00:21:47].

Jack Butala:
I have been doing 1031 exchanges since 1959. I haven’t paid a dollar of taxes. First of all, if that’s true, why would you say it out loud? Because they’re going to come for you.

Jill DeWit:
Yeah. Yeah. Now they know where you live. Thank you.

Jack Butala:
I’m happy you could join us today.

Jill DeWit:
Five days a week you can find us here on the Land Academy Show.

Jack Butala:
Tomorrow, the episode on the Land Academy Show is called math on rental property versus in buying, reselling land. You are not alone in your real estate ambition. Now, that’s a fun topic.

Jill DeWit:
Are you going to have numbers for us, or is it big picture show?

Jack Butala:
Yeah. I can create numbers in my head very quickly.

Jill DeWit:
I’m just curious.

Jack Butala:
I mean, we’ve … Here’s a little prelude to it.

Jill DeWit:
Okay.

Jack Butala:
I mean, we’re going to look at spending $400,000 on a house, or 300,000. I think national average now is like 300 grand. If you’re going to spend $300,000, leveraged or not, what do you want to … How can you maximize that money in real estate? That’s what this is really about, because everybody who starts off in real estate, me included, probably Jill included, I don’t know, we’ll find out tomorrow, started with houses. It’s just what we know.

Jill DeWit:
Yeah.

Jack Butala:
We live in a house. Our parents bought and sold a house, some of us.

Jill DeWit:
We all watched it.

Jack Butala:
Yeah.

Jill DeWit:
Exactly. Thank you for tuning in. We hope you find our content valuable and we appreciate your support. If you haven’t already, please check out our YouTube channel, hit the subscribe button.

Jack Butala:
And your comments and suggestions help us to create the type of content that you’re here for. Hitting the like button helps to support our channel’s algorithm, engage your interest for future shows. We are Steve and Jill.

Jill DeWit:
We are Steve and Jill.

Jack Butala:
Information.

Jill DeWit:
And inspiration.

Jack Butala:
To buy undervalued property.

—————————————-

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.

Land Business 501: Planning for Exit (LA 1333)

Land Business 501: Planning for Exit (LA 1333)

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 DeWit, broadcasting from sunny southern California.

Steven Butala:
Today Jill and I talk about land business 501, planning for your exit.

Jill DeWit:
Yes. This is the best part, right?

Steven Butala:
Does it mean it’s over? Heck no.

Jill DeWit:
Right. Will we ever retire?

Steven Butala:
No.

Jill DeWit:
Let’s be honest. I know. I was talking to somebody about that the other day. I’m like, “It’s never going to end,” like end, end. I might not be as involved. I might be working a lot less time a week, a month, but it’ll never end.

Steven Butala:
There’s three or four ways companies exit or owners of companies exit the company. Almost in all cases, all good cases, the company goes on just without you, or you’re compensated in some way for your expertise, but we’ll cover the four … There are some people in life, this is all they do is they exit companies, like private equity groups. So we’ll compare what we do. I get this question at the live event every single year. What’s the exit on this, man, because it doesn’t make any sense? If I start buying and selling land, then the company just dies.

Jill DeWit:
Yep.

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:
Thebon, hope I said that okay, wrote, “Hi there. I’m new and recently went through all of the Land Academy materials, 1.0, 2.0 and the cast-off from the land program. And I was wondering if someone could provide more detail on how to choose a county to invest in. There’s quite a bit in there.” I’m a little confused. “I feel there was a gap which kept that topic at a very high level. Curious if you all followed a particular method in choosing your county, especially since it seems that once you choose a county, you’re pretty much committed to it for several months, if not longer. Thanks.” I don’t have any missing pieces there. What do you think this is about? Or what do the comments say?

Steven Butala:
You know, I didn’t see the comments.

Jill DeWit:
Oh.

Steven Butala:
Well I know that our two moderators jumped on this really quickly.

Jill DeWit:
And they said go back to chapter two?

Steven Butala:
Number one … Probably.

Jill DeWit:
Okay.

Steven Butala:
But I mean, I’ll clarify very easy. This is a huge leap. How to choose a county and how to price a mailer are the number one and two questions that we get. That’s why I included it in here, Jill, because … and then we just did this Tuesday webinar. This is a big topic for everyone.

Jill DeWit:
Right. It’s like it’s not that there’s not enough information in there, but for some reason I think it’s confidence.

Steven Butala:
It’s confidence, and they need confidence.

Jill DeWit:
They want a little bit of a, am I doing it right? That’s it. It’s like, I give you 10 steps and you go through the 10 steps and you still want to know, am I doing it right? You probably are. Did the cookies come out? Well, it’s true.

Steven Butala:
Did the cookies come out?

Jill DeWit:
Well, I gave you a recipe. You know what it is? I gave you a recipe and you bake them. This is a good example. I think this is what we’re doing. We gave you a recipe. You bake the cookies and you’re asking me, does it taste right? How’s that?

Steven Butala:
I think that’s perfect.

Jill DeWit:
Thank you. And my answer is, do you like them then? Then yes.

Steven Butala:
Like every single thing in buying and selling land and Land Academy and House Academy, like everything, there’s no guessing. And that’s where the disconnect is. We have this thing called the red, green, yellow test that we are extremely loud and clear about on buying houses and buying infill lots. And the disconnect is that it’s not getting used to buy rural vacant land or recreation land. It’s not. That tool, there’s some loss in translation there. What you do is you line up the four or five counties in the red, green, yellow test, pull the county data either from Redfin or realtor.com and you pit the counties against each other to see which ones come out crazy green, which ones days on market is really low, which county or two counties or three counties have the least amount of property for sale as a percentage of the universe of property that’s in that county and a few other things.
And at the end of that, you line up 10 counties against each other. Two or three of those counties, it’s going to pass the data test. Then you put the data away, and this is true for all investing. I don’t care what. If it’s stock market investing, it’s the same thing. There’s a point where you put the data away, close your eyes for a second and then go test it for reason. You go out to Google Earth or wherever it is that you go out to on the internet, take a look at it and say, “This county has this type of property. Is that what I want to buy?” I’ll give you an example. We were talking about it a couple of days ago. Maybe it was … No. Yeah. A couple of days ago. There’s a ton of property in Florida that passes the test. I don’t like Florida, so we don’t buy property there. I don’t even know why.

Jill DeWit:
I was going to add to your test, your reasoning’s perfect. So I love what you just said. Then you put your data away. Now test it for reason. See if it makes sense to you. A couple other things too is how responsive is the county? Do they have a good … Can you easily pull up all the ownership information in NeighborScoop and maybe on the County GIS, check the back taxes, whatever it is.

Steven Butala:
Are they working right now-

Jill DeWit:
Yeah. Are they open?

Steven Butala:
… during the COVID?

Jill DeWit:
Yeah. Can they report stuff for you?

Steven Butala:
Do they have a GIS site?

Jill DeWit:
Exactly. Do a couple things like that too, to go through your own list of, yeah, this is a good county. So if I send out offers and get them back, I can do what I need to do.

Steven Butala:
So I’m going to speak personally now. And I’m not-

Jill DeWit:
Truth time.

Steven Butala:
Yeah, truth time. And I’m not criticizing. This is a very good question, by the way. I’m not criticizing the person who’s asking this question at all. It’s a very valid question. The internet growth and improvement travels at the speed of sound. So it would be impossible for us as instructors to keep up with the available tools and resources that you have. So I intentionally avoid, I can’t avoid it altogether, but I intentionally avoid putting all these tools into the core education programs because two weeks after we record it, it’s going to be different. There’s no way I can keep up with it.

Jill DeWit:
It’s true.

Steven Butala:
No matter how I teach picking a county, in a few months, six months, eight months, it’s going to be different.

Jill DeWit:
Very true.

Steven Butala:
So what I want to communicate very, very clearly is we’re here to give you the basics and show you how to do this stuff, but we can’t hold your hand to the point where there’s just an ironclad way to pick a county and you are going to make money.

Jill DeWit:
And I’m not going to call everyone every time something changes and go, “Make sure you’re using this now, you’re using this now, you’re using this now.” You need to understand how to-

Steven Butala:
Think for yourself.

Jill DeWit:
Exactly.

Steven Butala:
The vast majority in this group, I’m talking about 95%, maybe 98% of the people that are regularly sending out mail-

Jill DeWit:
That’s good.

Steven Butala:
… don’t have these questions. Again, I’m not knocking it. They know how to pick a county, and probably one out of eight or nine counties that they pick or 10, it didn’t work. But they don’t, we never hear about it.

Jill DeWit:
That’s really good. Whatever we’re using right now for having your calls forwarded, whatever you’re doing, that’s going to change in six months. I’m not going to tell everybody, “Go get this phone and have this kind of a burner phone and this kind of a plan,” because there’s going to be something better and someone might show me something better too, by the way.

Steven Butala:
Right, exactly. So yes, that’s how I currently pick a county. I can guarantee how I pick a county and how I price a mailer in six months will be different. And that’s what we have the Thursday calls for.

Jill DeWit:
That’s true.

Steven Butala:
So if you’re in our group, you want to keep up to date on all this stuff, please attend our Thursday calls.

Jill DeWit:
Right.

Steven Butala:
Today’s topic, land business 501, planning for an exit. This is the meat of the show.

Jill DeWit:
This is my favorite.

Steven Butala:
Is it?

Jill DeWit:
Why not?

Steven Butala:
Number three’s my favorite.

Jill DeWit:
Oh, gosh. Number, well, no number five.

Steven Butala:
Tell us why. Tell us why.

Jill DeWit:
Because you know why? Here’s why.

Steven Butala:
This is really interesting for me.

Jill DeWit:
Okay. Because at this point in your career, you can go, “I’m going to show up. I can voluntarily show up, number one. And number two, I have the option to only work on things that I want to when I want to.” Does that make sense? It’s kind of like our acquisitions, where we’re at right now, myself and my team, even my team more than me, they’re doing a lot of the heavy lifting. I’m going in now more than you and doing the picking the deals, approving the deals, writing the checks, that kind of a thing. You get to pop in and out whenever you want or zero if you want. You could be here an hour a week. You can be here five hours a week. You can be here no hours a week for the stuff that I got going on, the projects I’m working on. And I think that’s the most fun. Right?
You get to just do whatever you want. And the best thing is too, everything is running very smoothly under your direction, based on how you, when I say you, I mean, Steven. I’m talking to Steven here. How Steven laid it out, what the criteria is and all of that.

Steven Butala:
Number five is your favorite.

Jill DeWit:
Yep.

Steven Butala:
I guess that makes sense.

Jill DeWit:
Yep.

Steven Butala:
So number 501 is not titled exit as a verb. It’s titled planning for your exit. So planning for your exit could take 20 years, but you have to have an exit. And that’s really what this episode for me is about, because I think too many people, when they start a company, they think about the $10,000 a month that it’s going to make or the 100,000 or the millions of dollars. And then they just think it’s going to go on forever. And you’re going to die one day and it’s just going to go on.

Jill DeWit:
Right, and the kids are going to jump in and know exactly what to do. And they don’t.

Steven Butala:
That’s almost never the case. So here’s a few ways that you can exit a company. And this is what private equity groups do, or companies like Coca-Cola. What’s Coca-Cola’s exit? It just goes on forever.

Jill DeWit:
It’s true.

Steven Butala:
You can exit a company by … I’ve done this before, where you have … Let’s say you want 22 million bucks. For whatever reason, that number is what you decided. $22 million in the bank. You’re going to buy and sell land until you hit $22 million in the bank and you’re going to turn off the website and turn it all off, and you’re going to go live in that property that we talked about that’s got legal access. I think it was yesterday. It’s got legal access, no physical access, because you don’t want to talk to anybody ever again. That’s a way to exit a company.

Jill DeWit:
Yeah, that’s true. I hope that’s not what you want, baby.

Steven Butala:
No.

Jill DeWit:
Okay, good.

Steven Butala:
You could sell it. Sell the company. It’s obvious. That works for a lot of product company types. Like a convenience store, you sell it, you’re done or whatever. That’s obvious.

Jill DeWit:
I never even thought about that.

Steven Butala:
You can hand-off-

Jill DeWit:
Could you imagine. I’ve just got to pause for just a second. I’m surprised we don’t have more offers to do that.

Steven Butala:
You have an I Dream of Jeannie hair things going on right now.

Jill DeWit:
Is it bad? I’m sorry.

Steven Butala:
No, I love it. Don’t touch it.

Jill DeWit:
Okay, okay.

Steven Butala:
For a lot of reasons. I really like it. Let’s do a whole show on your hair.

Jill DeWit:
Thanks. What’s an I Dream of Jeannie hairdo? Like the way it’s kind of flaw … I don’t know. Okay.

Steven Butala:
It’s up here.

Jill DeWit:
Okay. It just kind of landed that way.

Steven Butala:
My personal favorite, you can hand it off, and it’s under a partnership agreement to a mentee, you’re the mentor, or to a relative. So your kids do it. And by the way, you don’t have to have one company. Jill and I have like nine companies. We have ParcelFact. We have NeighborScoop. We have O2O. We have Land Academy. We have our core real estate businesses companies for land and houses. So you can let your favorite kid, everybody’s got a favorite kid, run one of them.

Jill DeWit:
Yep, it’s true.

Steven Butala:
See if they screw it up.

Jill DeWit:
Yeah. See how bad they screw it up.

Steven Butala:
You can take one of those companies and creatively finance it. So the guy that started Uber took it public almost immediately, raised a bunch of capital. He did all the tech piece. The thing never made a dollar. On its 10th anniversary, because this is what the SEC allows, 10 years and one day, sold his entire fortune back out into the stock market and walked away laughing. So you can creatively start a company, have it have some revenue, in his case, not even any net income at all whatsoever, not even approached profitability. And just did a bunch of acquisitions and press releases and micromanaged the stock price. And because Uber is such a daily name and the kids love it. The stock market buyers right now are little kids, they’re 22 year olds. They just propped it up. Falsely propped it up in my opinion. And the guy walked out with hoards of money for really just smoke and mirrors.
So you can create that. But you know what? Is our business type conducive for that kind of exit? Not really. But there’s ways … You just need to know about it as a business person. You can play the corporate lifecycle, like Coca-Cola. They have to grow and they have to manage your stock market. Or like Ford. You have to manage competition, keep your market share and lifecycle grow through acquisitions or new markets. In Coke’s example, they expand into new markets internationally, and so does Ford.
So there’s a lot of different ways to exit. You have to decide which one’s best for you. What you don’t want to do is just stop. And that’s the whole point of this episode. You don’t want some factor in your business situation, you don’t want to run out of money and run out of customers and run … And I see this happen all the time and that’s why I’m bringing it up. And everybody when it happens, they look around and say, “I don’t know what happened.” Well, what happened is you weren’t planning for your exit and you weren’t thinking about this stuff and micro watching it.

Jill DeWit:
It’s funny. I have talked to people that have sold off … We’ve bought chunks of property from people that were exiting this, but it was because they had another something that was offsetting their retirement.

Steven Butala:
Perfect.

Jill DeWit:
So, we have come along and bought a couple hundred pieces of property. The guy just said, “You know what? I’m out. It’s going to take too long, the way we’re going to sell these properties. Here, Jill.” And we work out a great price and I just clean out his inventory kind of thing. Because he really is out. He’s done. But again, it’s because there’s something else going on.

Steven Butala:
Maybe his pension kicked in or he had another company or something like that.

Jill DeWit:
Exactly. That’s it. It’s usually something like that. This was kind of a hobby on the side. It’s fun talking to those guys because they’ve been in it for so long.

Steven Butala:
Because you like stage five. Yeah.

Jill DeWit:
I love it. They’re like, “Yeah.” And it’s fun because it’s probably like me. It’s a little bittersweet. It’s so easy. They love it. You know what I mean? Who doesn’t love getting a phone call to buy a piece of property that you sent in an offer on 10 years ago? And they just want to dump it and you know it’s not going to take me much work because I’ve been doing this for so long, to dress it up, get it out there and make a lot of money off it. It’s addicting. It’s hard to stop that.

Steven Butala:
Totally agree.

Jill DeWit:
So, I don’t see it that I could ever lose that. I think I’m going to be 80, I’m not kidding. I’m going to probably be 80, answering the phone, closing deals. And by then my number one title agent’s going to be 120 and she’s still doing deals the same way that they did back in 1949 or whatever it was.

Steven Butala:
You may want to plan your exit on these companies that you start the same way you plan your estate. You don’t want to be blindsided one day. You just don’t want to be blindsided one day by illness, or anything that can go on in life and not have to pay too much taxes. All I’m saying is plan for it.

Jill DeWit:
Do you have any tips for that?

Steven Butala:
Yeah, have a plan.

Jill DeWit:
Oh, okay.

Steven Butala:
And make sure that, just the same way that you might put assets in a trust like real estate or all of it, just make sure you have a plan. It’s too far … All this stuff, we can talk about it, but it’s way beyond the scope of this episode.

Jill DeWit:
Okay. Thank you for tuning in. Excuse me. And happy you could join us today. Five days a week, you can find us right here on the Land Academy Show.

Steven Butala:
On Monday, join us for another interesting episode because you are not alone in your real estate ambition.

Jill DeWit:
You don’t want to go down the … which is true. I mean, I guess that is a whole nother conversation on …

Steven Butala:
I mean, think about how often some heir calls us-

Jill DeWit:
Oh, that’s true.

Steven Butala:
… and says, “I would love to sell you this property. And I love your price. It’s in my mom’s name. She passed away 10 years ago. Please solve it.”

Jill DeWit:
It happens all the time. It’s funny, because I tell that to people. I didn’t tell you this. I told it to a guy yesterday. I said, “Okay.” And we’re still talking because I might do the deal, but I wasn’t sure at his price. I don’t like his price, but I’m still rethinking it. I don’t know. Anyway, he said … I said, “Well do me a favor.” I said, “Promise me this,” because you could tell he’s older. And my assistant said that he had shared that he’s ill also. I said, “Promise me that you’ll put it in the kids’ names, something so they can transfer it easily.” And he said, “Oh honey,” he said, “I’m a bachelor. Is this a marriage proposal kind of thing?” It was really cute.

Steven Butala:
That’s hilarious, Jill.

Jill DeWit:
I was like, “Aw, that was very sweet.” So, we had a really good laugh.

Steven Butala:
That’s great. Now the guy’s going to sell you the property no matter what.

Jill DeWit:
Probably. We’re still communicating.

Steven Butala:
That’s the sting of Jill.

Jill DeWit:
It’s so funny.

Steven Butala:
She gets you to love her and then you’ll give her anything.

Jill DeWit:
Well, here’s what happened. You want to know the truth? Truth time. So my offer was 98,000. He countered at 125,000. I’m like, “It’s not too far off, but I’m not sure this is really worth it. It could be.” So we’re going back and forth. So I says, “You know what? I’m going to do a little more digging.” So I went to almost like my phase two and a half digging. I went into TitlePro 24/7. I pulled up a property report because my broker is asking me for a plat map. I’m like, “Okay, fine. I’ll get you a dumb plat map.” So I pulled the property report and then what uncovered on there, it looked like the property was sold last year for like $68,000. And I said, “Did you forget that you sold this and they took out a loan and stuff?”

Steven Butala:
Oh, shoot.

Jill DeWit:
And he’s like, “That is not correct.” I’m like, “Oh.” So I’m helping the guy right now. I gave him names. I gave him phone numbers. I could see the escrow company. I could see the lender.

Steven Butala:
Something’s wrong.

Jill DeWit:
That’s the thing. Something’s wrong there. I think the recorder attached it to his … They got the affidavit of property value or something and they put it against showing his property sold.

Steven Butala:
Or more likely he forgot he sold it if he’s that old.

Jill DeWit:
He’s not that old. He’s not that … So anyway, I called him and I said, “What do you think?” He’s like, “Oh, no.” Because he has five other properties and we talked about all of them and who’s buying this one. He’s got a deal with this guy. Anyway, there’s a very likely chance that it was a mistake on somebody else’s part, not his part, and it is still available and I’m helping the guy. So then again, my point of that is-

Steven Butala:
You have to stay up to get to the bottom of that.

Jill DeWit:
Oh yeah. Well, he’s going to do that. I gave him everything he needed. I don’t mind. This is a planning for your exit and we’re at level 500 stuff. I’m doing what I want to do. Like, please, I love you.

Steven Butala:
Oh, here we go again.

Jill DeWit:
Oh, sorry. But I’m making the call because I want to, not because I have to.

Steven Butala:
I know.

Jill DeWit:
I know that. And it’s fun for me.

Steven Butala:
I’m not. I’m just asking you questions.

Jill DeWit:
Okay, cool.

Steven Butala:
See how mad she gets?

Jill DeWit:
Yeah, well. All good. I know you’re trying to save me and I appreciate that.

Steven Butala:
No, I’m trying to do a deal.

Jill DeWit:
Oh yeah, me too. And that’s what I’m saying. If anybody’s going to get it, I’ll get it. I’ll get it at my price. Just wait. Thank you for tuning in. We hope you find our content valuable and we appreciate your support. If you haven’t already, please check out our YouTube channel and hit the subscribe button.

Steven Butala:
And your comments and suggestions help us to create the type of content you’re here for. Hitting the like button on your favorite episodes helps to support our channel’s algorithm and gauge your interest for feature shows. 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.

Jill DeWit:
I almost forgot.

—————————————-

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.

Land Business 401: Staff in Place and Partners Fund Acquisitions (LA 1332)

Land Business 401: Staff in Place and Partners Fund Acquisitions (LA 1332)

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 DeWit, broadcasting from hazy Southern California.

Steven Butala:
On fire Southern California.

Jill DeWit:
Yeah. I was going to say sunny. I’m like, shucks. I can’t really say sunny because I can’t see the sun right now. It’s crazy.

Steven Butala:
Today Jill and I talk about your land business 401. Your staff’s in place and your partners are now funding acquisitions. Why? Because you don’t have any money left if you’re doing everything right at this point in your career. You’re spending half of your time looking for new people, which is way more hard, to work for you. Way harder than it. You’re a recruiter. And number two, finding partners or using the partners that you have so that you can do more real estate deals.

Jill DeWit:
Because all your money is allocated.

Steven Butala:
How ironic is that? You do everything right, you don’t have any money.

Jill DeWit:
Right. So this is the 400 level, so all week you’ve been doing like freshmen, sophomore, junior. Congratulation, 400 level. You’re now a senior. Tomorrow’s masters level. We’ll get to that. So right now you’re taking your final classes. You’re kind of just, I look at it like I’m just learning the last little bits of information. Maybe some tweaks. Because I’m going out into the world.

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:
Mike wrote, “I have an accepted offer on a rural property and I’m trying to confirm access. If the county GIS parcel report shows a street address, can I assume there is legal access, even though the satellite view on Google maps does not show a road? I have some buyers that don’t care how difficult it is to get to the property. They just want to know they can legally get there.”

Steven Butala:
There’s a 98% chance that what you’re saying is true. Can you absolutely assume that there’s legal access if it has an address? No, but that’s a huge step in the right direction. What you want to do is take a look at a plat map that you can hopefully get from either it’s either been scanned in online or ask the county to send you one, and you’ll see on the plat map the property’s either got straight lines. Straight, single lines. Think of it like lines in a road, or it’s got dotted lines. If it has a dotted lines, those are the easements or that property that’s the real estate, actual real estate that’s been allocated. Maybe there’s no road there at all. It’s just raw land, but a road’s supposed to be there. That is the definition of legal access. In my career, I don’t want you to just take my word for it. In my career, I want you to go check. In my career I’ve never seen a property without a US post office address, if everything’s correct on that, who doesn’t have legal access.

Jill DeWit:
And for those of you who are members and you want to know, “Where can I get that quickly?” I jump into TitlePro, so just so everybody knows, as a Land Academy member, you have access to TitlePro 24/7, which is AgentPro 24/7, but expanded for title agents so it has everything you could possibly want in there, and I can go in and I can pull. I just did one today, a property report, and I get all kinds of information. More than what I want, but there’s usually plat maps in there too.

Steven Butala:
It’s a great question.

Jill DeWit:
Thank you.

Steven Butala:
That’s a, I know you’re going to be successful, probably already successful question.

Jill DeWit:
Thinking ahead about it. It’s important, and I like that. Those are some of the … Isn’t that funny? That brings up a good topic too. You think that, who would want a property that I can’t get there? But there’s so many people that love that. This is a perfect example. They want legal access to know that they’re not going to be breaking any laws, but they love the thought of, “I don’t want my neighbor rolling up. I don’t want it to be paved.”

Steven Butala:
Nobody knows where I am.

Jill DeWit:
You know, I love the four wheel drive part of it here, and I can be lost on my land.

Steven Butala:
I don’t think there’s ever been a time that I’ve been alive where it’s more attractive to get lost.

Jill DeWit:
That’s so true. I learned a long time ago, never assume. Just because it doesn’t appeal to me doesn’t mean it’s not going to appeal to somebody else. You never know.

Steven Butala:
Just right. There are tons and tons and tons of people out there who want to buy property that you can’t get to, and there’s a ton of reasons for that. To let your mind wander.

Jill DeWit:
Oh my goodness.

Steven Butala:
Today’s topic, land business 401. Your staff’s in place and your partners are funding acquisitions. What’s that look like? This is why you’re listening.

Jill DeWit:
What’s that look like to you?

Steven Butala:
Well, I’ll tell you. The euphoria is over and now you pretty much know what your workweek looks like. Yesterday or in your last, in your 301 phase, you were working on your business, not in your business. That all worked, and what you were doing from an efficiency standpoint, staring in the mirror like I asked you to, it worked. It’s efficient. Now, it’s like, “Great. I’m making tons of money every month. The machine is in place. I’ve got some staff in place. What if I took this module and repeated it right over here? So now I need some more staff. I need to even be a better recruiter.”
I’ve never been able to successful outsource recruiting. It’s something you have to do yourself. And, I’m always out of money. No matter how much money I throw into this thing, I spend it, because the acquisitions are so good. And so at this point, you’re looking at things like, “In my inventory I have a value of land and a value of cash, and it’s going like this. Cash is coming in. Cash is going out. Land is coming in. Land is coming out.” And at some point by this time in your career, a few times you will have had to pass on good acquisitions that you would have bought anyway, because you don’t have the money left because you spent it all that month.
You never want that to happen again, so you need to align yourself with partners, and that’s what Land Academy is for. Jill and I just got off of an interview. Somebody interviewed us, and we’re going to be on their show, and-

Jill DeWit:
Sean Pan.

Steven Butala:
Yeah, Sean Pan is his name.

Jill DeWit:
Sean Pan.

Steven Butala:
And you know, Land Academy in the end for Jill and I was to create business partners for ourselves, and that’s manifested itself in all kinds of different strange ways. Some are funding partners. Some are partners in mobile home stuff, and it’s worked out great for us, so aside from the satisfaction of getting people into the business and everything else. So partners. I can’t imagine a situation where you get … You know, I feel bad for this young generation for a lot of reasons, and one of them is-

Jill DeWit:
Stuck with phones in their hands and-

Steven Butala:
You hear about Mark Zuckerberg and guys like Elon Musk, and they’re such heroes to young people. And the fact is, and they had this like, nomadic cowboy thing about them. It’s just one guy. He’s a bajillionaire. He’s sitting in a house like Bill Gates. Not necessarily Bill Gates, because Bill Gates has been and is loud about his partnerships.

Jill DeWit:
Right.

Steven Butala:
Believe me, these guys have tons of business partners. They have the original crew that they started with before they went public, and they just never, they get no media attention. There’s no cowboy. No one’s ever really done well by themselves, so please, you need partners.

Jill DeWit:
I want to know more about what other ways you feel bad for this younger generation. I want to circle back around to that for a second. So, here’s what I heard. Their heroes are not accurate heroes. Is that what it is? Batman had Robin.

Steven Butala:
Oh, keep going there.

Jill DeWit:
Thank you. The Lone Ranger had Tonto. Who else? Wonder Woman … Had a lasso. I don’t know.

Steven Butala:
I don’t know if it’s really honestly generation specific. I mean, I think that-

Jill DeWit:
Why do you say that? I’m just curious.

Steven Butala:
My generation, their heroes were sports figures. They weren’t necessarily business people. My business heroes were people in my neighborhood that were just crushing.

Jill DeWit:
That’s it.

Steven Butala:
They were usually my friends’ parents. Who were your heroes?

Jill DeWit:
That’s what I was going to say. My heroes were, this is good. I like this question. No one’s ever asked me this. It’s kind of funny. I never really thought about it, but I’m sure my heroes were people that I knew of that, because of where they lived. Usually it’s what they had. Like, “I want a house like that.” Like growing up, I grew up in Garden Grove, and Nellie Gail. I had learned about Nellie Gail in Laguna Hills, like, “Oh.” You know? That was like, “Wow, those people arrived.” So that would have been like, “What do they do?” And it was 99% of the time real estate kind of thing.

Steven Butala:
Oh really?

Jill DeWit:
Yeah. Especially in Southern California. That’s exactly. That’s pretty much what it was kind of thing, so those were my heroes.

Steven Butala:
The tragedy in having a hero like Jeff Bezos or, I hear Mark Zuckerberg more than anything for some reason. Not so much anymore, not Elon Musk, is that it’s like having Michael Jordan be your hero or Kobe Bryant. You know, those guys are … Or Wayne Gretzky. They’re not just professional. They’re at the tip top of maybe the best hockey player in the world. Maybe the best IPO.

Jill DeWit:
They’re the elite of the elite. It’s hard to-

Steven Butala:
Maybe Tesla was maybe the most successful IPO there ever was, ever, and so it’s so out of touch. It’s not a normal person. It’s not your friend’s dad, or that person who owns a house at the end of the block that your dad knows.

Jill DeWit:
Right.

Steven Butala:
It’s like, you’re never going to do that. I’m just sorry. The chances of you doing the next Facebook are so small. However, the chances of you buying a piece of real estate and reselling it for twice as much as you paid next month are incredibly good, and so there just becomes this unrealistic thing of what an entrepreneur is. Jill and I taught a class.

Jill DeWit:
It’s interesting.

Steven Butala:
I asked everybody, “Who’s an example of an entrepreneur?” And they all said one of those three people. That’s the furthest thing from an entrepreneur that they should, and I did everything I could to dispel that to that class. You know who an entrepreneur is to me? Am I freaking out?

Jill DeWit:
No, I was like, it’s okay. Don’t take it personally, sweetie. I’m lightening the mood.

Steven Butala:
Oh, sorry.

Jill DeWit:
No, you’re okay.

Steven Butala:
I think somebody who is a great example of just a grassroots entrepreneur pays cash for a duplex, lives on one side, and leases out the other one and everything’s free. That’s what an entrepreneur really is. Now all their bills are paid. Their wife’s hopefully happy, or whatever the situation is. They don’t have to have a job because the basic stuff’s done, and they can go on and do land Academy without a ton of pressure, or they can start a convenience store chain or whatever. Getting so far off topic here, but I feel bad. This generation has so much stuff to sift through and so much misinformation.

Jill DeWit:
That’s the problem.

Steven Butala:
Start to finish, fake news everywhere. I just read a whole article.

Jill DeWit:
Social media junk.

Steven Butala:
Listen to this. I just read a whole article. I got duped.

Jill DeWit:
Duped?

Steven Butala:
Duped.

Jill DeWit:
What’s duped?

Steven Butala:
I got fooled.

Jill DeWit:
Duped. Okay.

Steven Butala:
I read an article. The title was Disneyland’s Moving from California to Texas.

Jill DeWit:
I saw that too.

Steven Butala:
Did you? I read all the way through the whole thing, and they said, “Oh, by the way, this is an advertisement for this company that spoofs news.” And you know, I love my phone, so I didn’t throw it into the ocean. So that’s just an outrage. They stole my time, and I did what I was supposed to do on that and marked it as spam and all that. It’s interesting you got the same newsfeeds.

Jill DeWit:
I saw that too. Well, I get Disneyland for obvious reasons.

Steven Butala:
Oh yeah.

Jill DeWit:
Of course I should get it.

Steven Butala:
Sure.

Jill DeWit:
I like to go there. It’s weird that you got it. That’s more … For you, it popped up as another business going out of state.

Steven Butala:
Partnerships are absolutely necessary, and changing directions quickly on the fly is necessary. I mean, there’s a lot of grassroots stuff that this generation, even when I stand in front of them and explain it, they’re like, “You’re just an old man. You don’t get it.” Like, “You don’t understand the Internet of how this works,” which is ridiculous because I was around when it was created and there every step of the way. So, it’s not about me. I don’t care. I don’t take that personally. I just wish that everybody would stop saying Mark Zuckerberg is an entrepreneur. He’s not.

Jill DeWit:
Well, give me some other … Okay, so the people that you know.

Steven Butala:
You know who’s an entrepreneur? Jack Bosch.

Jill DeWit:
Cool.

Steven Butala:
Comes from another country.

Jill DeWit:
That’s true.

Steven Butala:
Doesn’t speak the language.

Jill DeWit:
That’s good.

Steven Butala:
Marries a woman from South America, doesn’t speak German. Does a bunch of real estate deals, and launches his career to become independently wealthy inside of five or eight years from being a full blown immigrant on a work visa.

Jill DeWit:
That’s very nice of you.

Steven Butala:
That is an entrepreneur. Or somebody, you know, Jill and I, through this COVID, Jill found a person who does her hair and her nails and stuff, and she comes to the house and I was talking to her and she does my hair now, obviously. And she said, “Yeah, this is it now. I’m never going to go back and work in the salon. I charge double. I only work for people who are willing to pay for it.”

Jill DeWit:
“It’s now my own business. I have my own website.”

Steven Butala:
That’s an entrepreneur. She’s putting food on the table. She adjusted, and she could take that, who knows? She could have 50 trucks full of people going out and doing hair and nails, and it’s very realistic and possible. I think the real tragedy in saying, “I want to be Elon Musk” is no, it’s never going to happen, and what’s never going to happen also is that you’re not going to buy and sell real estate. You’re shooting so high.

Jill DeWit:
Too high.

Steven Butala:
Yeah.

Jill DeWit:
Why do you say you can’t buy and sell real estate though? How does that tie in with this statement?

Steven Butala:
Maybe I misspoke. You should be buying and selling real estate. It’s stopping you. If you’re all starry-eyed about Elon Musk or anything else like that, you’re not going to join a group like this and buy and sell land and actually make a couple million bucks a month a few years from now.

Jill DeWit:
Well, okay. I would …

Steven Butala:
Do you think that it motivates people?

Jill DeWit:
I don’t know. It feels like it’s something you had to get off your chest.

Steven Butala:
I guess I did.

Jill DeWit:
Okay. Well, because I think our group, I don’t know anybody in our community that’s like that.

Steven Butala:
Exactly.

Jill DeWit:
Okay. Thank you.

Steven Butala:
I don’t think our group.

Jill DeWit:
Okay, that’s what I’m wondering. I’m like, where are you going with this?

Steven Butala:
Our group [crosstalk 00:15:18] regardless of age or anything, or any background at all. The people in our group made it.

Jill DeWit:
Right.

Steven Butala:
They get it.

Jill DeWit:
They’re here, doing the work, putting in the time, and back to the topic. Back to the topic.

Steven Butala:
Sorry.

Jill DeWit:
Your land business 401. You know, this is where you should be now. You got through the startup. We talked about the two years thing on Tuesday. Yesterday, we talked about being a specialized pro. What niche are you in? How’s it going now? You’re at level four which is, hey, things are running smoothly and you got other people funding deals for you because you got that much deal flow going on, as you should, and maybe you’re funding deals for other people too, as you should. That’s all because then they’re doing the work and making money for you also, so then tomorrow, I’m excited for tomorrow’s show and I’ll leave that for you to say.

Steven Butala:
Well, we’re at the-

Jill DeWit:
Wait, wait. This is the part where if it’s running smoothly too by the way, you could be thinking ahead if you still want to do some other different types, and/or you just don’t want to go to work on Tuesday.

Steven Butala:
Yes, that’s true.

Jill DeWit:
Thank you. I had to get that out.

Steven Butala:
You know, our staff is maxed out.

Jill DeWit:
Yeah.

Steven Butala:
I’ll be the first, and I know it, and they know it, and I’m paying them extra, and we’re quickly trying to either find them assistants to work with them and helping them hire for that, or we were setting up a whole separate module and having them train. So it’s a great place to be in. We are very, very fortunate to have a person at the tip top of all these companies that is very, she behaves like an owner, and he’s making decisions like an owner. That’s how I know I’m really in stage five.

Jill DeWit:
Well, we’ll talk about that more tomorrow. Happy you could join us today. Five days a week you can find us here on the Land Academy Show.

Steven Butala:
Tomorrow the episode on the Land Academy Show is called Land Business 501, Planning for Your Exit. You are not alone in your real estate ambition.

Jill DeWit:
That was me giving you like a stage presence.

Steven Butala:
I know. What is that?

Jill DeWit:
Like, “And here it is.” Because I kept alluding to what tomorrow is and I’m excited for tomorrow. I’m like, “Here it is. You’ve been waiting to hear what it is.” That’s why I was making a hand gesture. For those of you who are not seeing me I was making a hand gesture. Yay!

Steven Butala:
The most fun is stage three.

Jill DeWit:
Stage three is the most fun for you?

Steven Butala:
Just trying to lighten this up. I can tell.

Jill DeWit:
I don’t know. You’re just kind of like … Four, I think at this level it should be fun and you like, got mad about it, which is not bad. That’s how you roll. I understand.

Steven Butala:
Sorry.

Jill DeWit:
No, no, no.

Steven Butala:
I didn’t get mad about stage four.

Jill DeWit:
That’s just how you roll. That’s okay.

Steven Butala:
I didn’t get mad about anything.

Jill DeWit:
Okay, cool.

Steven Butala:
Hey, I hate to see people have just pie in the sky dreams-

Jill DeWit:
I understand.

Steven Butala:
With no real plan to execute and move toward that. That’s all it is.

Jill DeWit:
Right. I know you’re right.

Steven Butala:
And it really actually upsets me.

Jill DeWit:
I want to save people.

Steven Butala:
Yeah, me too.

Jill DeWit:
I get it. Thank you for tuning in. We hope you find our content valuable and we appreciate your support. If you haven’t already, please check out our YouTube channel. Hit the subscribe button.

Steven Butala:
And your comments and suggestions help us to create the type of content you’re here for and hitting the like button on your favorite episodes is helpful for us to support our channel’s algorithm and gauge your interest for future shows. 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 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.

Land Business 301: You are a Specialized Pro (LA 1331)

Land Business 301: You are a Specialized Pro (LA 1331)

Transcript:

Steven Butala:
Steven and Jill here.

Jill DeWit:
Howdy.

Steven Butala:
Welcome to The Land Academy Show, entertaining land investment talk.

Jill DeWit:
Why are we talking like that?

Steven Butala:
Just being a hippie for a second.

Jill DeWit:
Oh.

Steven Butala:
I’m Steven Jack Butala.

Jill DeWit:
Oh, I didn’t know where [inaudible 00:00:13] What are we doing here? And I’m Jill DeWitt, broadcasting from sunny smooth jazz, Southern California.

Steven Butala:
There’s nothing sunny about California today.

Jill DeWit:
No, it’s not.

Steven Butala:
In fact it’s…
It’s almost literally on fire. I’ve just read, worst on record. [crosstalk 00:00:33]

Jill DeWit:
Well, did you see the-

Steven Butala:
As a state. Worst fires.

Jill DeWit:
Not just us. It’s the whole West coast.

Steven Butala:
Yeah.

Jill DeWit:
I was looking all the way up to- [crosstalk 00:00:39].

Steven Butala:
Oregon.

Jill DeWit:
Washington, parts of Oregon, parts of Idaho. It’s-

Steven Butala:
It’s like the world’s ending.

Jill DeWit:
I know.

Steven Butala:
I half expect to see zombies around the corner.

Jill DeWit:
It’s really weird. Oh my gosh. And by the way, to make it even worse, our humidity here. I think I’ve never seen it, it’s 96%. So if you’re watching this on YouTube and you could probably literally see my hair getting frizzier by the moment…

Steven Butala:
You know what Jill? I’ve been meaning to talk to you about that.

Jill DeWit:
Exactly.

Steven Butala:
Men don’t even know any of this stuff.

Jill DeWit:
Can you imagine? I’m going to put a baseball hat on and I’m going to put my hair in a ponytail in about five minutes. It’s like, “What the heck?”

Steven Butala:
When I was younger, I used to think a hundred percent humidity was water. It’s not.

Jill DeWit:
Rain.

Steven Butala:
Yeah.

Jill DeWit:
Yeah.

Steven Butala:
It’s nothing to do with that.

Jill DeWit:
It’s hilarious.

Steven Butala:
Today, Jill and I talk about land business 301. You’re a specialized pro. This is where I start to have a lot of fun. At any company, at any.. and stage. When you’ve left stage two, these land business things that came up are not… Came up with this week, the 301, 401. This is not specific to the land business at all. It’s all businesses have cycles. Every single one.

Jill DeWit:
This is also the point where he gets interested in children. Babies not so much, toddlers no way.

Steven Butala:
That’s true.

Jill DeWit:
Uh-huh (affirmative), It’s not until the third phase, before they’re ding-dongs and they’re on their way out the door.

Steven Butala:
Before they’re teenage ding-dongs?

Jill DeWit:
Exactly.

Steven Butala:
Oh yeah, this is when they [crosstalk 00:02:19].

Jill DeWit:
And they can’t get out, they can’t wake up.

Steven Butala:
They don’t eat anything. They tell you, “Yeah. I’d rather have chicken today.”

Jill DeWit:
You’re like, “This one’s fun for you. You’d like this.” Like, “Yeah, dad. I do want to go on the boat. Yeah, dad, I do want to do this with you.” This part.

Steven Butala:
Or let’s light something on fire.

Jill DeWit:
“Yeah, dad, that’s so great… Yeah, dad said this is a good idea.” No.

Steven Butala:
Between seven and 15/14.

Jill DeWit:
Uh-huh (affirmative). Exactly. This is your favorite age [crosstalk 00:02:46].

Steven Butala:
It’s an absolute blast.

Jill DeWit:
And you are Superman in their eyes.

Steven Butala:
Well, yeah. I mean, for probably two of those years. Until sixth grade.

Jill DeWit:
Okay.

Steven Butala:
It’s just fun. It’s fun to do stupid stuff. The reason we have children is to see their reactions to doing stuff the first time. When they’re little they eat a French fry the first… I remember. [crosstalk 00:03:08].

Jill DeWit:
Is that why we have children?

Steven Butala:
The kid’s bite on the French fry for the first time, it’s like their world is just the greatest. For those few minutes it’s like, these are French fries.

Jill DeWit:
I forgot. Why did we have children?

Steven Butala:
Playing catch from baseball and stuff.

Jill DeWit:
It was peer pressure for me.

Steven Butala:
And sports.

Jill DeWit:
Just kidding.

Steven Butala:
Okay. What are the real benefits of getting all of this at the start? You can just say the truth about everything.

Jill DeWit:
Yeah.

Steven Butala:
It’s really fun.

Jill DeWit:
Yeah. I’m sure the people around us with little kids don’t like, and we’re like, “Your turn. See ya.”

Steven Butala:
I zip it. I don’t even talk to people with little tiny kids. It’s like I’m afraid of them, afraid of that.

Jill DeWit:
Oh, that’s good

Steven Butala:
Today, Jill and I talk about… But I already said this.

Jill DeWit:
You did.

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:
Okay. Is this really her name?

Steven Butala:
Yeah.

Jill DeWit:
Okay. Gigi wrote, “Hello. I have been following the Land Academy podcast for a while and I’m wondering if anyone does buying and selling in the Northeast US, like Massachusetts, Vermont, Maine, New Hampshire, Rhode Island. I would like to see if I can do the Northeast because I’m a registered civil PE Engineer.” Civil physical engineer, I guess?

Steven Butala:
Probably. I’m not sure either Jill.

Jill DeWit:
“And I run my own civil engineering company and I’m very familiar with these States, both about regulations and sub surface.”

Steven Butala:
You just perfectly set up for this.

Jill DeWit:
“I remember either in one of the PDFs or the videos, it says that the Northeast is not recommended. So I wondered if anybody from Land Academy ventured out there. Thanks. Gigi.”

Steven Butala:
I can’t imagine why or how either one of us could have ever said that the Northeast is not good to do this.

Jill DeWit:
Right.

Steven Butala:
That didn’t come out of our mouths or anyone from this organization. I’m extremely confident. So-

Jill DeWit:
Maybe it was New York, one time. We may mean New Yorkers because of the-

Steven Butala:
And that’s not true anymore. Because of the loiter thing.

Jill DeWit:
Exactly, now we don’t care. Yeah.

Steven Butala:
I had a very detailed conversation with a person, a senior manager of all of our companies. We have one person at the top that runs all of our companies that don’t buy and sell land or real estate, Jill runs those companies. About this topic, and she said, “There is a rumor that’s just circulating around this company.” This is a word she used, “Rumor. That this only works in the Southwest because you guys talk about it so much.”

Jill DeWit:
That’s so interesting.

Steven Butala:
That really miffs me true. [crosstalk 00:05:52].

Jill DeWit:
It’s so not true.

Steven Butala:
So I would like to dispel that

Jill DeWit:
I’m buying heavily in the Southeast right now and I would happily… Well, we talked about Michigan property.

Steven Butala:
Everybody. This is a very hot topic in Land Lnvestors. So a lot of people popped in and they all said what I’m about to say.

Jill DeWit:
Okay.

Steven Butala:
This works everywhere, in every single county and parish, every single one in this country. There are some huge differences in buying property in the Northeast versus the Southwest. And they’re all good. For instance, there’s fewer properties in Vermont to actually purchase, obviously it’s a smaller state. And the way that it was subdivided was as you went, subdivision, the state grew up with the real estate rules. The country and the state grew up at the same time with real estate rules. And the topography is weird and it freezes, so there’s a lot of differences, but it’s very profitable to buy these properties.
Are you going to buy them for a hundred dollars an acre in, let’s say, Vermont? No. And I think that’s where the confusion comes. I think there’s a huge amount of people that would love to buy property for $500 for some reason and sell it for 1,200. And I founded the company on those numbers. So that’s just not the play there. The play is getting property that someone wants to retire from, let’s say, New York city or something like that, or not retire but just to have a second home or whatever. Vermont’s very attractive. Vermont and New Hampshire, albeit extremely different States politically, the only thing they have in common actually is the fact that they’re adjacent to each other, are fantastic places to do this. Are you going to buy them for 100 bucks an acre? No. Is Maine different than Vermont? Completely. I bought a ton of 40 acre properties in Maine one time and did really well. Really, I’m intentionally going slow here and not laughing and horsing around with Jill, because I need to send this message that you can do this in any county.

Jill DeWit:
Mm-hmm (affirmative). I was going to say, when you just brought up those numbers, I’m buying right now at $1,000 an acre because you can sell them for three to 4,000 an acre, that’s great numbers.

Steven Butala:
Exactly. Yes, you can do this in the Northeast. You can do it in the Southeast. Jill’s made a whole portfolio in the Southeast right now. You can do this in Florida. I think this comes from… I don’t like Florida, I don’t like it. And so I think there’s [crosstalk 00:08:21] 50 reasons

Jill DeWit:
It’s a deep seeded childhood. It’s nothing about any of… It has nothing to do with our land business at all.

Steven Butala:
And in case [crosstalk 00:08:28].

Jill DeWit:
It’s, “Just don’t like…” And that’s okay.

Steven Butala:
In case you haven’t noticed, we’re very opinionated on this show, it’s our show. So it doesn’t mean… Hordes of people in our group are making tons of money buying and selling land in Florida. Talk about a lot of property to buy, geez.

Jill DeWit:
Here’s a good one. I love living. And I’m born and raised in Southern California, I love living in Southern California. Am I really aggressively trying to buy land in Southern California? No.

Steven Butala:
No, I-

Jill DeWit:
I can do much better in other places.

Steven Butala:
Yes. And there’s… We’re spread out all over the country right now. So if we say we don’t like Florida, it’s not because there’s not a great place to make money.

Jill DeWit:
Right.

Steven Butala:
By the way, waterfront property is never going to go out of style, and there’s nothing but water in Florida, that’s not frozen water. So…

Jill DeWit:
It’s great.

Steven Butala:
I should be more clear about this.

Jill DeWit:
Thank you for sharing.

Steven Butala:
Today’s topic, land business 301. You’re a specialized pro. This is the beginning of the show.

Jill DeWit:
That’s so funny.

Steven Butala:
For some reason I had to be on YouTube yesterday. I didn’t tell you this.

Jill DeWit:
Okay. Uh-oh.

Steven Butala:
And I was in the back end of it, into our channel because we’re posting… We’re doing some stuff on eBay again and we’re doing videos. So I was in the back end and I could see all the Land Academy Show in a spreadsheet form. And it’s a new interface from the last time I was in there, and I could see the comments on every… How many comments that were on each show, each episode, and how many thumbs up and thumbs down there are as a percentage. And I’m like, “What?” I had no idea how much activity there was, [crosstalk 00:10:11] comments wise and thumbs up and thumbs down. I lost a good half hour sifting through that stuff yesterday, just really chuckling.

Jill DeWit:
Any fun takeaways? Anything you want to share?

Steven Butala:
Well, there’s a few fun stuff. We did a show awhile ago called You Either Love or Hate Your Mask.

Jill DeWit:
Oh. I forgot.

Steven Butala:
I, like you, don’t remember the shows we did last week.

Jill DeWit:
Exactly.

Steven Butala:
So there’s a lot of people that had a lot of stuff to say about that.

Jill DeWit:
[inaudible 00:10:37].

Steven Butala:
Pretty much the sentiment was, “How about you guys to stick to what you know.”

Jill DeWit:
That’s funny. Let’s just keep your personal stuff out of this, shall we?. That’s pretty funny.

Steven Butala:
There’s a couple in there. There’s one show.

Jill DeWit:
That’s really funny.

Steven Butala:
And I hope you take this the right way. Somebody said-

Jill DeWit:
Oh no.

Steven Butala:
“Jill, can you just let Steve talk? He’s actually talking about real estate.”

Jill DeWit:
Oh.

Steven Butala:
And then the flip side was true. Somebody said to me, “Why don’t you just let her talk?” I guess we over-talk each other.

Jill DeWit:
Never.
[crosstalk 00:11:19] I’m sure that’s true right now.

Steven Butala:
Anyway, if you want to [inaudible 00:11:23], just put your thick skin suit on and go into the back of our channel one day and just spend, I don’t know, don’t get lost in there. Jill gets upset sometimes, not upset, but she takes it a little bit more to heart about what people have comments on.

Jill DeWit:
It’s probably better if I don’t look [crosstalk 00:11:39].

Steven Butala:
And you know what’s interesting? It’s only YouTube. So if you go look at where all our podcast is posted, everywhere, iTunes, Stitcher, Spotify, all of it, iHeartRadio, it’s nothing but positive stuff.

Jill DeWit:
Interesting.

Steven Butala:
So they don’t like how we look. That’s what I’ve determined.

Jill DeWit:
Aha.

Steven Butala:
They just want to hear us.

Jill DeWit:
Wait. Oh, I hear what you’re saying. The people on YouTube who can see us have a lot to say.

Steven Butala:
Yes.

Jill DeWit:
Okay.

Steven Butala:
There’s something about that… No, I’m just kidding around. There’s something about YouTube that people just let it rip.

Jill DeWit:
It’s like Reddit.

Steven Butala:
Yeah. [crosstalk 00:12:15] It’s just an opinion now.

Jill DeWit:
Is Reddit even still around?

Steven Butala:
Oh yeah.

Jill DeWit:
I think it is. I mean, I know it’s around. Because I was looking the other day, I was… Googled us on something, and I was looking at something and we popped up there. I’m like, “Well, that’s interesting.” But isn’t it… I never heard anybody talking about it anymore. I’m going to drop that in a dinner party. I’m going to say that sometime, like, “I don’t know but my number one source is Reddit and here’s why.”

Steven Butala:
Oh my gosh. [crosstalk 00:12:37].

Jill DeWit:
Could you imagine.

Steven Butala:
Can make sure I’m close by when you do that.

Jill DeWit:
Yeah, I’m going to do that.

Steven Butala:
I’ll film it.

Jill DeWit:
Our friends will be like, “What the heck?”

Steven Butala:
Or my space or something.

Jill DeWit:
Yeah.
That’s good. Okay.

Steven Butala:
All right. So…

Jill DeWit:
Back to this, land business 301. Do want me to go first? Here’s what… I’m going to give you a couple quick things and get the ball rolling.

Steven Butala:
Sound good.

Jill DeWit:
All right. You’re a specialized pro. 301, you’re in it now. You’re in your junior year of college, congratulations. You are now taking classes and doing things that apply to your major and you are looking toward the next level. So by now, you either have a niche or are testing niches, or are looking at niches because something has sung to you. Whether it’s a certain product type, whether it’s the way you buy and sell, whether it’s through a broker or that kind of transaction, maybe going through escrow, maybe it’s a dollar amount. You’ve probably figured out some groove here, I think.
Also by this level, your 300 level, you’ve got a team and it might just be two of you. It might be you and a VA, or it might be you and a bunch of VAs. It might be you and PATLive, and you and someone who posts things, something like that. If you’re doing volume here, I expect you’ve got a team, something in place helping you doing this. You probably have quit your job or you’re about to hit the button… you’re about to send in your two weeks notice, this is what I think. And I think that you’re looking at… I think you probably have quit your job at this level. That’s really where I’m at, I think, and you’re looking at expanding now too. Take it away.

Steven Butala:
I think that you have figured this out and you are at… Yesterday, my big point was budget to actual. You’re consistently hitting budget to actual now and you’re pushing the limits of it to the point where now you either have that all critical first employee, that first full time W2 employee, or you’re really thinking about getting that person in. And that employee is either an assistant to you, to go and do all the stuff that you don’t want to do, and that’s a very personal decision. Or you need an acquisition assistant or a sales assistant or something like that. Or you’re comfortable running a team of VAs from the Philippines, which many of our members do. If you have questions about that, please go on Land Investors, they’ll point in the right direction.
We have a specific group of people in the Philippines that are really in tune with the Land Business. We put them in business, Jill and I, literally, and so they know… If you say, “Hey, I need you to answer my phone,” they have a product for that. It’s not like some other company where you have to teach them how to do it or educate them. So now you should be saying to yourself sentences like, “I know how to make a hundred grand a month, how do I make a million?” Or, “I love the Adirondacks, I need to expand into Florida. Florida’s my second favorite market for these reasons.”
Confidence, you don’t even think about it anymore. And how to get stuff done from a calendar standpoint, and a timing standpoint, and an organization standpoint, and your workspace, and your LLC and all of that, is all done. You now are like planning for your retire… This is your business and you’re going to plan for it. And you need to really start to expand your business into houses and into other types of land niches, which I mentioned yesterday, and get super serious about it. Or you can do it again, like this guy in our group that just does one deal a month and makes a hard grand on it, makes sure he does. He does a ton of work up front, looks at a ton of deals and that’s all he wants to do, make a million bucks a year.
Whatever it is, you really are leaning back in your chair saying, “I get it. I get what these people are about.” You should be thinking things like this, it takes me about 45 minutes to an hour to scrub data out of Data Tree, or I need to write myself a macro or hire somebody on Fiverr or wherever you hire people to do specific projects like this, Upwork, to make that job easier for yourself, or outsource it. There’s that in the programs, in both Land Academy and House Academy program, there’s an org chart that I have for this level in your business. And you should be at the tip top of the org chart, making the decisions about where to send mail. You should be primarily making two decisions in the entire process, where to send mail and how to price it, that’s one. And two, then everybody goes to work and then the deal’s going to a CRM and they’re ready for you to decide whether or not to do the deal.
So you prep the pricing and the counties or zip codes that you send mail in number one, and then down the chart, should I do the deal? Yes or no? Yes, at this price. No, I don’t want to do with the deal at all, it doesn’t have access or whatever. And that’s it. You should be working on your business, not in your business any longer.

Jill DeWit:
I was talking to somebody about this recently, too. You brought up a good point where we’re talking about… He was thinking about ways to pick new counties and I was talking about the equity planner, indirectly talking about the equity, I didn’t bring it up, actually. But I said, “Make yourself a chart. And instead of you sitting down and picking these areas, you can hire out people separately to fill in the blanks. How many properties are available? What’s the average price per acre? What’s the days on market?” Well, a lot of stuff you download, you show how to do it directly from realtor, but if you want to do it in just land specific and things like that, there’s just a lot of little things that you can, like you just said, outsource, make your life easier and… Because your time’s valuable. That’s where I’m at. I’m trying to think, what’s the most important thing right now? I’m a specialized pro.

Steven Butala:
You should be thinking in terms of efficiency.

Jill DeWit:
That’s it. And your time is so valuable. You’re now at the point where you might turn down deals because they’re too small for you anymore. Or I don’t buy those $100 things anymore, that’s great [inaudible 00:19:22]. And they’re like, “I’ll give it to you.” And you’re like, “I don’t want it.” [Crosstalk 00:19:24]

Steven Butala:
Or I hate Florida. I know I can make tons of money in Florida. I get it, there’s… Buy everything, every test that I run says, “Florida is an awesome place to buy and sell land.” I’m not saying this is true, I’m just saying it as an example. And then I look in the mirror and say, “You know what? I don’t like Florida.”

Jill DeWit:
Yeah. I don’t connect with those people, who cares what it is. It could be something, “I don’t understand them. I’m from New York and the way they talk or I’m from here and they go so fast.” It could even be little things like that. And, “Who doesn’t really matter.” Or, “Every family vacation they’re sucked,” that’s fine too. And you know that there’s plenty of other counties in the country and you can lovingly say, “You guys can have that.” That’s what I do often. It’s so funny on our Thursday calls people are bringing up areas and counties and things that we’d never heard of. And I’m looking at these numbers, I’m like, “Good for you. I’m not going to race over there and do that. I got my own stuff going on over here. I’m really proud that you have this going on over there.”

Steven Butala:
Somebody told me, professionally, said… I had this conversation a lot of years ago. I was in the longterm care business. And the guy said, he was way my senior, it’s Bill Allen actually.

Jill DeWit:
Way my senior.

Steven Butala:
Way my senior on the food chain and from an age standpoint. And he said, “All businesses, all of them, always turn into something else.” So, let’s say you bought and sold a piece of property and it was an accident, there were two adjacent properties and one of them had a pad for a formal mobile home on it. And you decide to put a mobile home on there and you sell it for 10 times more than your paid. This is a true story, our true story. Maybe that launches you into this full blown career as a specialized pro into putting mobile homes on formal mobile home property.
And by the way, you don’t have to start over. We’re in the 301 episode of this week. We’re buying and selling mobile home pads and putting stuff on there right now. I didn’t start at 101. I started at 501, because I already know all this stuff. So it just became a thing for me. I skipped all the phases and went straight to five. I’m in this business because I have all the money, I have Jill, we have a CRM set up, we have employees all set up. You’d be crazy not to take advantage of the infrastructure that you set up and the knowledge that you learned and just take it to the next step in whatever else makes sense.

Jill DeWit:
It’s true.

Steven Butala:
It’s economies of scale and efficiency. So you need to be thinking in efficiency. I don’t know how it works for, well…

Jill DeWit:
Were you going to say girls?

Steven Butala:
No. I was going to say people who aren’t accountants, is what I was going to say. [crosstalk 00:22:04].

Jill DeWit:
Well, that would be me too.

Steven Butala:
Because I constantly catch myself. Accountants and engineers have similar mental health issues. Everything’s efficient, it’s Jill’s nightmare. Everything’s got to be efficient, it doesn’t matter what it looks like. You guys never cleaned the surface, any surface, in any kitchen that you’ve ever been in. And that’s just, that’s the efficiency.

Jill DeWit:
I’m not arguing with anything at all right now. I’m just letting you run.

Steven Butala:
So when I say special, the title of this is You’re a Specialized Pro. Yeah, you’re a specialized pro at not only buying and selling land. You’re a specialized pro at running a business and growing a business from nothing, that says a lot. You’d be nuts not to expand, especially if you’re super young, expand the hell out of that. And I’m not talking about buying a restaurant, that’s not what I’m talking about. I’m talking about databased mailers that generate a different product.

Jill DeWit:
Or even something in the business that you’re really good at that you could help other people do better.

Steven Butala:
Maybe in a crazy twist of events, we have one member, I don’t know if they’re with us anymore, who came into this as a licensed real estate agent, did a bunch of mailers, started doing deals and realized that she could get listings this way.

Jill DeWit:
Oh yeah.

Steven Butala:
That’s how she gets listings for land and houses and stuff, now that’s what she does. She doesn’t buy… That’s just where her soul is and she’s killing it with that data-driven skill that they learned at Land Academy

Jill DeWit:
Is that funny? We have people too that have come in from… They found us. We have had timber people that found us because it’s a better way to buy timber. So they do some flipping, but it’s really all about the timber, that’s their primary goal. They’re like, “Now I know how to buy timber and the land that it’s on, that much cheaper and better and faster.”

Steven Butala:
Yeah.

Jill DeWit:
That’s the whole reason they’re here.

Steven Butala:
If you really deconstruct all this, what this is. So in any real estate, or in private equity, or buying and selling companies, it’s critical to have deal flow, it’s your lifeline, it’s step one for everything. So what this really is, this mailer concept that I came up with a lot of years ago, is ensuring your deal flow. It’s taking brokers and stuff that have all kinds of motivation for the reason they’re going to send you a deal out of the picture. It purifies deal flow. And so, you can apply that to buying self storage. We have a husband and wife on the East Coast that buy self storage. That’s all they do is self storage now, and they learnt by buying land. So it’s exciting. I love stage three.

Jill DeWit:
Me too. Happy you could join us today. Five days a week can find this right here on the Land Academy Show.

Steven Butala:
[Somehow 00:24:49] the episode on the Land Academy show is called Land Business 401, surprise, surprise. Your staff’s in place and now you don’t spend your own money anymore. Your partners are going to fund your acquisitions, you are not alone in your real estate ambition. This is fun, it’s fun. The latter stages of anything are fun.

Jill DeWit:
Always fun, because the hard work over. [crosstalk 00:25:11].

Steven Butala:
Yeah, the success.

Jill DeWit:
The pain, the suffering, the crying, the late nights, the no sleep, the sleeping under your desk.

Steven Butala:
[crosstalk 00:25:17] That just rolled off your tongue.

Jill DeWit:
Rolled right off. Oh my gosh. Two desks, where you’ve flip your chair around. Been there, done that. Lived it, breathed it, this office, that office. What are we doing today?

Steven Butala:
Sorry. You know what stage four is often for?

Jill DeWit:
What?

Steven Butala:
If you wake up once in a while. I’m not going to work today.

Jill DeWit:
Oh, that is kind of nice. Yeah, [crosstalk 00:25:41] stage four or stage five. You can start doing that in stage four.

Steven Butala:
You can start doing it.

Jill DeWit:
Yeah.

Steven Butala:
You got to make sure it doesn’t affect your revenue though.

Jill DeWit:
Exactly. I know that’s one of your favorite things about our level. This is true. Truth time! Here’s Jack on a Monday at 10:00 AM, “No work’s getting done today.” I’m like, “Done, fine.”

Steven Butala:
Oh yeah. It’s [crosstalk 00:26:06] real hard to convince Jill.

Jill DeWit:
Exactly. I’m like, “I knew you were going to say that. I’m getting ready, where are we going for lunch?” Thank you for tuning in. We hope you find our content valuable and we do appreciate your support. If you haven’t already please check out our YouTube channel and hit the subscribe button.

Steven Butala:
And your comments and suggestions help us create the type of content that you’re here for. Hitting the like button on your favorite episodes helps to support our channel’s algorithm engage your interest on future shows.
[crosstalk 00:26:35] We are Steven and Jill information-

Jill DeWit:
And inspiration-

Steven Butala:
to buy undervalued property.

—————————————-

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.

Land Business 201: Where You Should be in 2 years (LA 1330)

Land Business 201: Where You Should be in 2 years (LA 1330)

Transcript:

Steven Butala:
Steven and Hill 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 land business 201, where you should be in two years. If you were with us yesterday, it was land business 101, a list of stuff you should do in the beginning. Tomorrow, it’ll be 301 and 401 and so forth. So, today, Jill is going to describe to us where we all should be in two years, what should happen between that first deal, we talked about getting to that first deal yesterday, and then from two years from that point, she’s going to lead us and tell us exactly how that’s supposed to go.

Jill DeWit:
Great.

Steven Butala:
I bet you a dollar there won’t be a lot of math and budgets in it. It’ll just be like, “Well, you should feel this and then do this deal.”

Jill DeWit:
We’re going to do it together. All good.

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:
David wrote, “In the training videos and equity planner, Steve says to offer 35%. In the video tonight, I thought I heard him say offer 20%, and now I am confused. What do you offer?”

Steven Butala:
So, I chose to include this question among tons of questions and comments on land investors for a couple of reasons. Number one, what David’s referring to is when you go into a county or a zip code, you’re going to establish a baseline average price for a property, what properties sell for in that geographic area. So, in a county, it might be a $1,200 an acre, and so we would offer either 20% or 35% of that, and a zip code, same thing. In a zip code, it would be, for a house, $180,000, so we offer a certain percentage of that or a certain dollar amount below that so we can buy it for cheaper and sell it for more. That’s my point, number one.
I will forever say this statement. There is no percentage. There’s no locked-in percentage. This is your business. This is a business that you’re going to start, and 20% might be incredibly appropriate in some county on the West coast where they’ve never seen an offer ever. This country’s packed, packed, full of counties where they’ve never, ever seen anyone… No one’s ever sent them an offer ever. The vast majority of the counties in this country are that way. If that’s the case… And you can determine very quickly if that’s the case or not by what’s for sale there. If there’s nothing for sale there, they probably never seen an offer. I would go in lower.
If for whatever, and I’m not sure why you would ever do this, you’re choosing a county like San Bernardino County or Mojave County, Arizona, or Costilla County, Colorado, where nine million people have sent letters because other people out there have said they’re secret counties, or for whatever reason, probably 35 to 40% might get you a better response rate. But I’ll say this, and here’s my big picture point and really why I included this, I say all kinds of stuff. Common sense applies here.

Jill DeWit:
He also says, “I can’t be responsible for what I say.” That’s one of the things he says.

Steven Butala:
If you were looking for a hard-

Jill DeWit:
I have something to add on this, too.

Steven Butala:
… you’re looking for a hard and fast way to print money out of an ATM machine in your basement, you are in the wrong place.

Jill DeWit:
I know some people that have sent out offers, say it was 20%, 25%, whatever, and they got a few great properties and they realize what the… They maybe they get into it, and they realize, “Wow, this is a great area. Things are worth more than I thought. I want more properties.” I know people that have done, like say 20%, and they’ve gone back and remailed at 30% because everything that they got their hands on sold so fast that they went back and made even higher offers to scoop up more property. So, I just want to say that’s another example of this is an ebb and flow, you’re going to change. There’s properties that you’re going to send at 20% or 25 or 30, whatever it is, and you’re going to go, “I wouldn’t pay 5% for that one, or 10%,” you’re going to come back and even tell the guy, “Look, I’ll take it off your hands, but here’s my number. And it’s really low because there’s something going on.” So, there’s no, like you said, there’s no hard and fast rule.

Steven Butala:
On any of this, and it’s not just pricing. Common sense really applies. If you talk to three convenience store owners in the same market, they’re going to have different prices for everything for a bunch of reasons, especially the ones who’ve been there for awhile. They’re going to say, “Yeah, I mean, I can get away with selling milk for six bucks and it flies off the shelf. There’s just a lot of people who buy milk in this neighborhood, but I can’t give away cigarettes,” or whatever. So, the 20% and 35% has to do with geography and what Jill said, timing and all kinds of stuff. And that’s not just pricing, that’s tons and tons of stuff in this business and, really, any business. you have to have an open mind, and you have to adapt and overcome, like the Marine Corps, or it’s not… Again, you don’t just stamp this stuff out. Which is why there’s so much profit. If it was just stamp it out, when you buy and sell house, you know you’re going to make… There’s various finite situations.

Jill DeWit:
Price per square foot.

Steven Butala:
I’m just talking about land here. Yeah.

Jill DeWit:
Like price per square foot’s pretty darn close.

Steven Butala:
Yeah. You know [inaudible 00:05:44].

Jill DeWit:
Within a 30 day period, you know what’s going to happen.

Steven Butala:
You’re not going to offer 20% of what a house is worth. You’re going to get laughed out of the neighborhood. That’s my point. But [inaudible 00:05:57] land business 201, where you should be in two years. This is why you’re listening.

Jill DeWit:
You just caught yourself. You’re like, “Whoops, going into dead horse mode.”

Steven Butala:
Dead horse. Don’t beat a dead horse.

Jill DeWit:
Beating a dead horse. You were starting to go into that mode. You caught yourself. Good one. Good job. I’m proud of you. That’s usually my job. Actually, no, it wasn’t. Well, I’m famous for… Well, hopefully it’s not this way anymore, but I used to be so bad about beating the dead horse, number one, and then, two, really putting my foot in my mouth. I was pretty good at that one. You can tell me. On a scale of one to 10, how am I doing?

Steven Butala:
You haven’t mixed a cliche in quite some time.

Jill DeWit:
No. Actually, that’s another problem.

Steven Butala:
My all-time cliche mix that Jill’s ever said is the Duracell rabbit. Every marketer who’s ever worked on an Energizer bunny campaign just fell out of their… They quit their job. They’ve spent billions of dollars branding the Energizer bunny, and she comes up with the Duracell rabbit.

Jill DeWit:
Do you know what’s really funny, too? We have a really good friend who owns a restaurant here in town. Her neighbor is the Got Milk? guy. Did you know that?

Steven Butala:
Yes, I did.

Jill DeWit:
I think that’s so funny. What do you do after that?

Steven Butala:
I don’t know.

Jill DeWit:
And you just walk around saying, “I’m the Got Milk? guy and just leave it at that, like Jared the Subway thing? We all knew Jared from subway, and then we learned Jared from other ways, which weren’t so great stuff.

Steven Butala:
That’s a good question. That’s where this whole week is leading. What do you do after you won? Well, we’ll talk about that on Friday.

Jill DeWit:
Okay. Yeah. Friday is the one. Okay, good.

Steven Butala:
It’s 501.

Jill DeWit:
Okay. So, today’s where you should be in two years. Okay. So, yesterday, we talked about all… That was a laundry list. If you took notes, I would encourage you to read the transcript. That might be easier than taking notes, and you could get the excerpts out of there. And that’s on our website, by the way. We never really talk about that. If you really want to know, the transcripts from our shows are on the website, our website, so you can find that, which is over my shoulder right here. So, where should you be in two years? Well, you’re still doing it. It made the cut. You’re obviously making money. So, I hope-

Steven Butala:
And you like it.

Jill DeWit:
Exactly. And you figured a lot out. I hope that in two years you’re not working on deal number two. That’s where you should not be. So, in two years, you should be on deal… Let me think about this. I’m going to go between 50 and 100. What do you think?

Steven Butala:
So, that’s very personal. For [inaudible 00:08:41] 50 to 100 is probably light. I know it is. There are people in the advanced group who do one deal a month. They just make 100 grand doing it, and they have all the answers. And that’s it. So, it’s not so much. Again, right at the beginning of the show, I’m like, I’m all budgets and goals. At the beginning of yesterday’s show, I said, you got to have a goal, and you got to hit it. And that goal for yesterday was to do one deal, and then you graduate yourself for… Once you do that one deal, you have to sit down and have a real honest conversation with yourself about what you want to do. How many deals do you want to do? And I think for the first-

Jill DeWit:
I used to say 10.

Steven Butala:
I think for the first year, 10 deals is great.

Jill DeWit:
Well, that used to be my first thing. I used to tell people don’t make any decisions until you do 10 deals. I want you to just start and finish. I love you, but one, I think, is too light to have a… Because you’re not going to have as many things to go wrong. Do you think? [inaudible 00:09:37] 10.

Steven Butala:
I think it’s very personal. For me, all it took was that one deal, and I mean, I knew right there. But I think 10 deals is very realistic. Maybe for some people, it’s five.

Jill DeWit:
10 deals, your bank balance is different. Hopefully, nine went great, or eight went great. Two, you goofed up. You’re comfortable talking to sellers, you’re comfortable talking to buyers, you know how to post property. That’s all the stuff I want. That’s why 10 deals, you feel better.

Steven Butala:
I mean, this is a perfect example, like Jill and I have a different threshold.

Jill DeWit:
That’s true.

Steven Butala:
And we’re lifelong partners in this.

Jill DeWit:
It’s okay to disagree.

Steven Butala:
Yeah. Yeah. It’s okay to have a different goal.

Jill DeWit:
Right. All right. I’ll say where I think you should be in two years. Maybe we should even do this. And you [inaudible 00:10:23] say where you should be in two years because it might be different.

Steven Butala:
All right.

Jill DeWit:
Okay. So, I think in two years, depending on the type of deals you want to do in your balance that, of course, will dictate… Most people coming new to this right out of the gate aren’t going to come in and go, “All of my deals are buy for 50,000 and sell for 150,000, or something like that. I don’t know many people that come out like that. I think it’s more like i buy for two or 3,000, I sell for nine, and then I graduate to buy for 5,000, I sell for 12, and then I buy for 10,000. Now, it’s getting a little scary. And this is where I think you should be happening in the two years, you keep pushing the envelope. I had a consultant call with a guy yesterday in Idaho… What?

Steven Butala:
We’re just so similar when it comes to just pushing the envelope.

Jill DeWit:
Oh, yeah.

Steven Butala:
And today, we are pushing the envelope. Doing $100,000 deals, and we’re high fiving each other.

Jill DeWit:
Do you know what I find is so funny, like side note about you and I? Is you would think, as the woman, that I would be the one that says, “How big is that check are you writing? I’m not comfortable.”

Steven Butala:
It’s the opposite.

Jill DeWit:
I am reckless with the checkbook. I see it, I believe it in my soul, and I will die making it happen. I will write $125,000 check and not think about it because I know what’s going to happen. We have a rule, we have a limit up, limit down. We have our own little stop gap, if that’s right, too. We have to talk about it. There’s a certain number that we got to talk about it before that check’s getting written. Under that threshold, he’s like, “Have at it.” He can see it. He watches what I’m doing, buying and selling, so it’s nothing.
So, back to the two years. I hope you kept pushing yourself a little bit further until you’re now… I would love it, two years, you’re very comfortable buying for 10 or $15,000, at least, and selling for 30 to $50,000. And then, at the end of two years now, this is a prelude to tomorrow’s show, which is, “Now how do I want this to go?” I would also love you to test, if you haven’t yet, test doing some of the broker. You could buy $15,000 properties, easy.
Well, one of the properties that looks really good that you think you could sell for 70, get a broker involved, or even on the acquisition side, if you’re 18 months into this, you’re looking at a property and scratching your head, going, “Shucks, this a great deal. I really think this could be worth quite a bit,” get a broker’s opinion. Call three, hopefully two of them are going to get back to you, and one you’re going to love. And you’re going to test them and say, “You know what? All right…” He’s going to say something like, “I vote we market this for 80. I think we can get 65 in 30 days.” You’d be like, “Done, and I’m buying it for 15,000. I’m going to test this guy.” That’s the stuff I want you to do in two years.

Steven Butala:
It takes two years. Yesterday, we were talking about stuff your college professor said that would always stick with you. I don’t think I heard this in college, but somebody told me it takes two years to do anything. Somebody wrote a book called 10,000 Hours, I think.

Jill DeWit:
I remember that.

Steven Butala:
I think that was about soccer or something. It takes 10,000 hours to become a-

Jill DeWit:
Proficient.

Steven Butala:
… proficient or expert or… I know I’m misquoting it, but I know the book’s called 10,000 Hours. And I’ve never read it. I’ve only heard people talk about it and really [crosstalk 00:14:11].

Jill DeWit:
I think that’s five years.

Steven Butala:
Is it? Well, good. I mean, tomorrow, we’re going to talk about five years. Because it is five years.

Jill DeWit:
Again, not doing math in my head.

Steven Butala:
No, it is five years.

Jill DeWit:
Okay.

Steven Butala:
So, here. What you got after two years is a lot of practice. What you don’t want… I’m going to quote my mother, actually. Her take on education is this. To me

Jill DeWit:
Get inside. it’s late. Nothing good happens after 10:00 o’clock

Steven Butala:
That. But two years from now, it’s going to be two years from now.

Jill DeWit:
Yeah. Oh.

Steven Butala:
Jill doesn’t like that saying.

Jill DeWit:
I hate that saying, I don’t know why.

Steven Butala:
Why is that.

Jill DeWit:
Well, because I had a boss who used to tell me that, and she also said, “You can sleep when you’re dead,” and I didn’t like that one either.

Steven Butala:
I don’t understand that either.

Jill DeWit:
Okay. Thank you.

Steven Butala:
Two years from now, I mean, two years are going to go by, so how you fill that time between now and then is up to you. You can have 10 children and wreck your life.

Jill DeWit:
Not in two years.

Steven Butala:
All right. Well, you can have two children sort of wreck your life.

Jill DeWit:
Okay.

Steven Butala:
You can get married and unmarried in two years, easy. There’s a bunch of stuff you can do in the next two years, or you can buy and sell a ton of real estate and be on your way to financial independence for the rest of your life, and that’s the truth. So, practice that. By the end of two years, your fear should be entirely dissipated, and that bottleneck we talked about yesterday should be gone. You should be able to, like Jill just said, you should be pushing yourself to do bigger deals. You should be pulling up a deal on [inaudible 00:15:40], NeighborScoop, and you should be looking at it and saying, “Oh my God, yeah, I need to do this deal. I just need to make sure that X, Y, and Z… I’m on the phone with the planning and zoning right now to confirm that you can use the property the way I want it to be used and buy the deal.” Click, next review. It should be that fluid.
This is really important. By the end of your two years, or while you’re getting to your two years, after Jill’s 10 deals or one deal or whatever that number is for you, between 101 and 201, you need to have established success in your budget to actual calculation. Again, I use this guy all the time in our advanced group. He only wants to do one deal a month, and he puts his soul into that one deal. And he makes 100 grand every single month. He makes over a million dollars a year in net. So, for him, that’s his budget. Is he hitting the actual budget to actual? In his case, he is. There’s another guy in the advanced group who he just splatters it all over the place. Luke Smith. If you haven’t seen his show on YouTube, you should check it out. He’s been with us since like-

Jill DeWit:
Four years now?

Steven Butala:
He’s been with us since minute one.

Jill DeWit:
Early. Early on.

Steven Butala:
Really early on.

Jill DeWit:
Yeah.

Steven Butala:
And his style is very just splatter it. Throw it at the wall, see what sticks, and he’ll do any deal. He’ll buy up properties for $25, he’ll buy properties for $250,000. He’s got tons of partners. He’s just all over the place. So, is he hitting his budget to actual? I think some version of that’s happening. I wish somebody would’ve told me that a long time ago. You have to have a budget in everything. You have to. And it doesn’t stop there. You have to check to see where budget to actual is hitting. There are four niches in this land business that we have. I’m going to rip through them right now because, chances are-

Jill DeWit:
We’re going to talk about them tomorrow, too.

Steven Butala:
Right. Chances are, you’re just focusing on one and it’s probably rural vacant land like we focus on, but you can do in fill lots. We have a whole program on that that’s included in Land Academy. That’s number two. Number three is very, very, very inexpensive, $100 an acre desert squares. There are people that make whole careers out of that. Millions of dollars a year. And then, finally, specialization properties like properties that have been pre-zoned or civil engineered to be heavy industrial or hospital or-

Jill DeWit:
Motel.

Steven Butala:
… motel. Yeah. And there’s huge money in that, massive money in it, and it’s not that hard. So, you should either be in that already, thinking about doing a deal in that, or it should be in your plan to do a specialized mailer like that.
And then, finally, I think within that two year timeframe, geography should be heavily on your mind, if, in fact, you’re not… We have some very successful people who contact us and say… We have people calling us and saying this all the time that have been members for years. “You don’t know me at all. I joined in 2015, ’18, ’14… I mean, ’16. I took what you said. I took the first program, took it to heart, sent out mail in one county, then sent it out in another county and right next to it, and I never left. I’ve only ever been doing deals in those two counties. I sell it on terms. Now I’m into mobile homes. The whole thing over here, I’m helping these people do a subdivision.” So, that’s not my way. We like to move all over the place, but that’s just us. So, some people, and it’s usually where they live so they can drive there and there’s a social piece to it for them.
We have one person who solved access list property in Indiana, or in a few counties in Indiana, and that’s all he does. He buys ridiculously inexpensive, what people think are unusable property squares, there’s no access to it at all, and solves it because he knows everybody at the county. So, that’s like a specific little nichey thing that goes on right in some geography, you can make a career out of that. Or splitting property, too. So, those are the types of things that have to… By the end of two years, you should be having consistent money come in, probably paying yourself a salary, you should know what your specialization is, and you should be really thinking about what’s going to happen next. From an employee standpoint, I don’t know if you should have somebody working for you or not at that. What do you think?

Jill DeWit:
No, at the end of two years, I think you’re just now thinking about quitting your day job.

Steven Butala:
Okay. Good, Jill.

Jill DeWit:
That’s what I think.

Steven Butala:
I think you’re right.

Jill DeWit:
I think you tapped yourself out. That’s one thing that we feel real strongly about. Stay there until it doesn’t make sense to be there. You want to go, “Golly, now I’m losing money,” and I remember that. I remember that day and that feeling like, “Shucks, the time I spend on my day job, I could use this 40 hours, I would make so much more money.” And then I want you to stay there even longer because I want it to be no question, and I want you to put so much money in the bank that you feel so secure and you’re going to sleep really well. That’s what I want you to do.

Steven Butala:
That’s great advice, actually.

Jill DeWit:
And your wife is happy, too.

Steven Butala:
Yes.

Jill DeWit:
That’s one of the most important things. Thank you for joining us today. Happy you could be here. You can find this five days a week right here on the Land Academy Show.

Steven Butala:
Tomorrow, the episode on the Land Academy Show is, surprise, surprise, land business 301, you’re a specialized pro. You are not alone in your real estate ambition. This is fun.

Jill DeWit:
It is fun. It’s like I’m thinking back going, “Where were we..” So, we’re not the normal in two years, but I talk to people in two years, and it’s funny because… It’s interesting, I talked to a guy last week that is new Land Academy but not new to the business, and he has got himself… I think he started with somebody else based on the properties that he’s doing. He’s staying in a very few counties out west that we know really well, and all he’s done is built up term sales.

Steven Butala:
Oh, good.

Jill DeWit:
And he’s got his term sales now to about… He brings in comfortably $14,000 a month. I said, “That’s great.” He’s like, “We joined Land Academy, and I want to learn to really take it to the next level, number one. And number two, I want to go for some bigger cash transactions.” And it was so funny because he’s going from… So, he’s probably two years in. It’s him and his wife, and they have an investor when they need them. And again, he lives in Idaho. Hi, John. He was telling me the backstory and all the work that goes into it, and he’s buying them between like, I’m going to say, two and $10,000. Right? So, he’s got a lot of properties to have $14,000. So, they were doing $99 to $199 a month payments.

Steven Butala:
That’s a lot of deals.

Jill DeWit:
That’s a lot of deals.

Steven Butala:
That’s hundreds of deals.

Jill DeWit:
I said, “Oh, John, I got to tell you. What you’re about to do is a lot easier. It’s so much easier buying and selling for cash because when the deal closes, you’re done. You’re not managing this property this whole time. And the people that you speak to when you start doing these bigger deals and you go through escrow and do transactions that way, it’s a lot less.” I mean, the paperwork he’s doing right now, too, to set up the terms and the seller financing and the credit cards and all that, that’s a lot of work. I said, “It’s about to get a lot easier.’.

Steven Butala:
[inaudible 00:23:45] this is incredibly helpful, I think, for listeners. What else can you tell about this guy? Because he obviously figured it out.

Jill DeWit:
Oh, totally.

Steven Butala:
But he figured out something that we don’t even really talk about or teach that much, which is term sales.

Jill DeWit:
What he made work beautifully is the harder thing, and I’m like… What’s great is, too, I’d say, “What you’re doing right now, I say, if you want to do it our way, I’d say…” “I got $14,000 a month coming in.” Great, okay. Something crazy happens, and a large percentage of them stop paying, you can live on 10,000. Well, if you can’t live [inaudible 00:24:19] talk about that. If you can’t live on $10,000 a month right now, something’s wrong. So, you can live on $10,000 a month. All right? And pay the bills. So, you’ve got some wiggle room there. I said, “The fastest way to really build up a bank balance is cash deals. It’s like having a W2 job. That’s like a W2 job that’s paid for, everything’s paid for. Now you can really focus on this.” He’s like, “Yeah.”

Steven Butala:
So, did he ask you any questions? Or was this just a chat?

Jill DeWit:
No, it was really sweet. We laughed about it at the end because I said, “Did I get the job?” Because it was such a fun call that we did. It was a consulting call. And John had a well-thought-out planned list of serious questions for me. It was not really a conversation. It was, I answered the question, he goes, “Okay, onto the next question.” I answered the question, “Onto the next question.” [inaudible 00:25:24] I feel like I’m getting an interview here.

Steven Butala:
Did you get the job?

Jill DeWit:
He said I got the job. So, it was really good. It was so fun. I love it. And I actually liked those. It was a different consulting call for me because he planted it out so well, so thank you, John. Sometimes people are coming to these consulting calls and they don’t even really know what to ask. And it’s okay, too, because I can dig from them where they are in their career, in their land career, and then I can say, “All right, here’s what I think’s going on. Do you want to look at this, or do you want to go this direction? What seems best? And we’ll talk about it.” But he was like, “I know exactly what I want to ask you. It was really cute. It was awesome.

Steven Butala:
All right. So, I mean, the guy had a whole… I’m sorry. A whole list of… So, he planned that whole thing out?

Jill DeWit:
Oh, totally.

Steven Butala:
So, that’s how he does his business.

Jill DeWit:
Totally.

Steven Butala:
Plans it all out, executes it according to some schedule, and makes the best of 30 minutes or any given 30 or 60 minutes in his day.

Jill DeWit:
Exactly.

Steven Butala:
That’s a lot of this.

Jill DeWit:
That’s true. It was really good. I can tell he’s organized. He has to be to manage all those properties and those payments. He’s got his act together. You know what else? He’s doing his homework, and I appreciate that, too. He’s like, “Before I make this next step, I did all of this, I’m watching the program, I have these serious questions, and before I go into that.” And like I said, I really do appreciate that.

Steven Butala:
Awesome.

Jill DeWit:
Thank you for tuning in. We hope you find our content valuable, and we appreciate your support. If you haven’t already, please check out our YouTube channel and hit the subscribe button.

Steven Butala:
And your questions and comments and suggestions help us create the type of content that you’re here for. Hitting the like button helps to support our channels’ algorithm, engage your interest for future shows.

Jill DeWit:
We are Steve and Jill.

Steven Butala:
We are Steve and Jill. Information-

Jill DeWit:
And inspiration

Steven Butala:
… to buy undervalued property.

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

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https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

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