Simplifying Your Acquisition Process (1069)

Simplifying Your Acquisition Process (1069)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Good day.

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

Jill DeWit:                            And Jill DeWitt, broadcasting from sunny Southern California.

Steven Butala:                   Today Jill and I talk about simplifying your acquisition process. Seems like a silly little topic, but who doesn’t want stuff to be more simple?

Jill DeWit:                            I agree. I want to have more of a conversation. Is that okay?

Steven Butala:                   Yeah.

Jill DeWit:                            I’m just kind of changing it up right now, because I know we talked about that, so, thank you. Yeah, who does not want things to be more simple? I agree.

Steven Butala:                   Before we get into the topic, and before I make a butthead out of myself talking about marriage and stuff like that, let’s take a question posted by one of our members on the landinvestors.com online community. It’s free.

Jill DeWit:                            All right. James asked, “I’m thinking of buying a few 40 acre parcels surrounded by BLM land. I went to check out the properties. There’s dirt paths that lead to them, but there are signs that say no motorized vehicles. Has anyone tried to get permission from the BLM to drive over these trails? Not sure if I should offer a really low price for these, or just not even do the deal.”

Steven Butala:                   Okay, so this is a great question. It’s something I’ve run into personally, not super, super recently, but I’ve also talked to some of the advanced Land Academy members, and they’ve run into it also. This is, for sure, an attribute to this property. It’s not a bad thing. It makes the properties that you’re looking at incredibly unique. So on the onset of it, especially if you’re brand new at this, you’re like, “Wait a minute, I can’t take a car into my property?” As Jill knows, and most of the … if you’ve done a few deals or have some experience, there’s people that want to buy rural, vacant land to just get away from it all in the craziest possible way. The more creative you are about satisfying what they want from a customer standpoint, the more successful you’re going to be.

Steven Butala:                   What you need to do though is contact the BLM to get like a hundred year ingress-egress rights. Hopefully the person before you, the seller, has done that. We all know working with the government’s pretty tough and frustrating. But I’ll tell you my personal experience with getting a least easement, I’m not exactly sure what the … I think it’s just ingress-egress. Least ingress-egress is ridiculously simple with the BLM and very cheap. It’s like you can get like a 99 year lease.

Jill DeWit:                            Okay. So I have a couple things to say.

Steven Butala:                   Jill’s just-

Jill DeWit:                            I’m just letting you go, and then I want to say-

Steven Butala:                   When do you not let me … just let him go. Let him go.

Jill DeWit:                            I know. I always just let you go. Let him go.

Steven Butala:                   Eventually he’ll be done.

Jill DeWit:                            Exactly. Okay. That’s all beautiful, Steven. That’s the legal way to do it. I have a couple things to say. First of all, why aren’t you just checking out the property? Isn’t it a whole lot easier to ask for forgiveness instead of permission?

Steven Butala:                   You know what, that’s the reality of it.

Jill DeWit:                            So do I really want to draw some attention to the fact that I’m even out there in the beginning? Heck no. Am I going to sneak out there and do what I need to do? Yeah. Just to check it out. Oh yes. All day. I’ll drive right past that sign. So no one knows that-

Steven Butala:                   Well, it’s a little two track trail.

Jill DeWit:                            Right. Well or that, you know, whatever. Like are we talking about on a motorcycle, are we saying?

Steven Butala:                   I don’t know. You know what, Jill’s right now that I’m thinking about this. Go ahead. Go ahead. It’s your turn to just go off.

Jill DeWit:                            Okay, thank you. I’m a fan of A, who’s going to know unless you draw attention to it, and let’s not draw attention to it.

Steven Butala:                   Yeah, don’t build a skyscraper out there.

Jill DeWit:                            Yeah. You know, we’ve sold many properties in like, you know, big properties in West Texas and I’ve had this conversation with many buyers, which is kind of a version of, “Look, if you’re not going to put a casino on there, is anyone really going to know what’s going on?” And you know, be legal obviously, don’t abuse it, but you know, you could probably do a lot and be under the radar kind of thing. So I look at it like that. So while you’re checking out the property, don’t think about it too much. And then that goes back to … Seriously, we go back and forth to this ourselves. Am I right?

Steven Butala:                   We go back and forth. Jill and I constantly, especially recently on these deals.

Jill DeWit:                            Yeah. We have constantly been going, “Wait a minute. Why are we looking into this this much?” This has never been our core thing and this is why we have bought and sold properties that are probably worth way more than we sold them for because we didn’t look into them that much and guess what? We didn’t care and our buyer won. So don’t spend too much time on it.

Steven Butala:                   Price, like he here, as he says, are getting really, really low price for these properties.

Jill DeWit:                            I would not go get this ingress-egress thing. If I know something about it, I might pass it on to the buyer and go, “Look, I did five minutes of research. Here’s what’s possible. Here’s the phone number. This is where I left it. I wish you all the best. It sounds like it’s possible. And then again, I’m pricing it this way because I’m not doing that work.”

Steven Butala:                   I mean, I would celebrate the fact that this has adjacent BLM land. I would celebrate that in the title.

Jill DeWit:                            Because no one can build on it. Great.

Steven Butala:                   You know, everybody loves to buy, have that house at the end of the block that’s on the back of a golf course or federal land or land that’s not going to be developed. And that’s what you have here. So this is a celebration situation, and it’s even better if you got a really low price.

Jill DeWit:                            Exactly. I mean, again, I like that. Tell them, tell them. I use this all the time. It’s priced this way because I’m not doing X. If you want me to go do X, I sure can, but now the price is going to change because that’s going to entail me to do a whole lot of work. I’m not kidding. And every time I tell a buyer that they go, “Oh, nevermind. Got it.” Like, if you really want me to go and hire the guy to go out and walk it and survey it and put the pretty stakes in the ground, I sure can.

Steven Butala:                   The pretty stakes?

Jill DeWit:                            Yes.

Steven Butala:                   The pretty orange steaks.

Jill DeWit:                            Yes, exactly.

Steven Butala:                   I asked somebody recently on that topic. You’d think, this is 21st century, with all the technology. I asked a very credible source, is there some type of Google Earth version of getting a survey? We can stop this site visit, take three days to get out there, put the pretty stakes in the ground. The answer is no. You still have to do a survey out there.

Jill DeWit:                            I mean, we can do pretty … It depends on what you’re going to do for it. For your buying and selling purposes, if a guy just wants to really know where his line is, and it’s 40 acres, so we’re not going to accidentally get on the neighbors, so it’s not that big of a deal. He can walk it himself. Well, you know in personal fact, we have all the GPS coordinates, so I could pretty much stand there and know I’m in the right spot.

Steven Butala:                   Yeah. I mean we’re way off topic here, but surveys, that’s if you’re going to build something.

Jill DeWit:                            Right, but that goes the same with this BLM thing. Don’t go too far.

Steven Butala:                   Surveys are always incident driven. You don’t want to ever, in my opinion, to say, “You know what? I’m going to go survey this property.” It’s just you want to do it if a lender’s asking you to do it-

Jill DeWit:                            It’s a waste of your time.

Steven Butala:                   … if somebody, like there’s a builder that’s involved that wants to see if they can put a subdivision out there. It’s not just something that you do for fun. Oh, there’s my lot line. Got it.

Jill DeWit:                            Exactly. All right.

Steven Butala:                   Today’s topic. This is one before the show says, “Look, we’ve got to keep these shows moving. There’s too much go back and forth talking.” Now we’re eight minutes into the show, we’re about to actually do it.

Jill DeWit:                            Well then we’ll do a three minutes show.

Steven Butala:                   Today’s topic, simplifying your acquisition process. This is the meat of the show. This is not a long topic for me. I love simplifying stuff. I think most guys do. And I’m not sitting around saying women want to complicate things. I’m just saying everybody loves simplification. Actually, Jill, honestly all kidding aside, that’s one of the things I love about you-

Jill DeWit:                            Thank you.

Steven Butala:                   … that’s very different from you than a lot of people I’ve known, male or female.

Jill DeWit:                            Thank you. I do want to get it done.

Steven Butala:                   You’re all about get it done. Get it done on time. Make sure it’s done right the first time. That’s a big thing with you.

Jill DeWit:                            Yeah, it is a big thing with me.

Steven Butala:                   Get it through fast. Get it done fast and then let’s go have a drink.

Jill DeWit:                            That’s exactly right.

Steven Butala:                   And that’s exactly how I am.

Jill DeWit:                            I don’t need to think about it, feel it, love on it, celebrate it. I’ll celebrate the bank account and I celebrate that stuff.

Steven Butala:                   So this was, the root of this topic came out of me working with a developer to create an incredibly efficient brand new 21st century version of our CRM. So we’ve been using an old sequel version that I had developed a long time ago. I spent a quarter of a million bucks on it.

Jill DeWit:                            Like 2005 or something.

Steven Butala:                   Yeah, technically that is 21st century. But anyway, we’re updating the whole thing in Air Table to be used and beat up and abused by our acquisition staff and sales staff. So then we can perfect it and create an additional sequel version and then probably distribute it for Land Academy members, some version of that. I’m not sure how it’s going to go yet. So these topics this week, this is acquisition week. These topics this week came out of that. And because the developer that I was working with, as always, or that I am working with, she’s on staff with us. We got our signals crossed a little bit and she created this incredibly complicated like 92 step acquisition process because I think it was just, you know, she interviewed me and said, “Well when you buy a piece of real estate, you got to do this, this, this, this, this, this.” So every single one of those tiny little things in the due diligence step became like a status, when in fact there’s really like five statuses in the whole thing.

Steven Butala:                   So don’t get caught up in that engineering left brain. You know, I sit down at my desk. Oh, that’s a new status. I turn on my computer. Oh, that’s a new status.

Jill DeWit:                            That’s a new status.

Steven Butala:                   Get coffee. That’s a status. So I know you wrote some stuff down, Jill. What would you say to somebody who’s trying to simplify their acquisition process?

Jill DeWit:                            I was going to say, it can be overwhelming in the beginning. You know, we joke about it, but it’s true. We make it look easy. We really do. And there are a lot of steps. And where I was coming at it is when I talk to people and they’re like, “Whoa, just I want to be an investor.” Okay, now I’ve got to buy a property. And then I’ve got to market property. I’ve got to sell property. And then they really just go, “There’s a lot that goes into this.” Yeah, there really is. So just talking about the acquisition process, it seems like a lot, but it’s not that bad when you really just sit down and talk about the process and the steps. So I was thinking like nail it down or break it down into real basic steps.

Jill DeWit:                            So acquisition involves really picking a county, sending out the mail, buying the property, recording the property, because that’s acquisition. I own it. We can forget about the rest right now. So then when I always think of two … So, all right. You can wrap your head around that. Then break it down even further. What’s going to go into picking the county? There’s probably 10 things maybe. And then getting the mail out and then picking the properties, doing your due diligence and buying the properties. Think about all these different steps. I’m trying to just kind of get you thinking about it and get you practice to making your own, basically your SOP, your standard operating procedures. That’s what you should be doing when you’re new as far as simplifying it.

Jill DeWit:                            And as you do this and make these steps, you’re going to make your own procedures and guess what’s going to happen? You’re going to have your own hopefully training videos and outline when you’re done, so you can train the next guy. Because hopefully when you come up from all this and you decide, you know what, I want this to be my business now. Now I’ve done 10, 20 deals, I know what I’m doing. Now I have a whole process down. Now I’m going to put somebody in place for the parts that I’m not needed or I don’t like or I’m not good at kind of thing.

Steven Butala:                   Or you’re sick of.

Jill DeWit:                            Or you’re sick of, right.

Steven Butala:                   In my case.

Jill DeWit:                            Exactly. And then later on, you’ll do like what we’re doing. Then you get it into a whole big system, like we use Air Tables. Sometimes we use [Jura 00:12:19] and then there’s other products out there that work. There’s no one fits all, one program fits all. Just whatever sings to you. Whatever you can customize and make your own that makes sense to you. Some people use spreadsheets forever. You know they’re not doing that many deals and it works for them and that’s okay.

Steven Butala:                   Of course this is all covered in an incredible amount of detail in our education programs, but here’s the overview, and I broke it down into five numbers. Number one is acquisitions. Number two is … or number one, I’m sorry, is pre-acquisition, like the mail process and all of that. Number two is actual acquisition process.

Jill DeWit:                            New opportunity is what we call it. So number one is the pre-acquisition. Number two is actually new opportunity.

Steven Butala:                   Yeah. New opportunity means, hey, this person responded and we really need to look at this as a potential candidate. Right?

Jill DeWit:                            Exactly.

Steven Butala:                   That’s number two.

Jill DeWit:                            Three, I have to think about this.

Steven Butala:                   Three is …

Jill DeWit:                            The acquisition, isn’t it?

Steven Butala:                   Purchasing it. Yes, that’s correct. Three is going through the actual acquisition process. Every deal is different. Sometimes you want to buy them just by doing a deed and do we call a notary close. Sometimes you want to go through title. If it’s houses you want to go through title on every single deal. Number five, sorry, four is sales, the actual sales process, you know engineering and sales.

Jill DeWit:                            Six is completed, or five is completed sale.

Steven Butala:                   You know, now that I’m thinking about it, three is engineering.

Jill DeWit:                            We’re getting them all mixed up.

Steven Butala:                   So number one is pre-acquisition, like the mail. Number two is the actual acquisition process, purchasing the property.

Jill DeWit:                            It’s true.

Steven Butala:                   Number three is engineering or marketing. We use those terms interchangeably internally. Number four is sales. Number five is-

Jill DeWit:                            The completed sale.

Steven Butala:                   .. the completed sale.

Jill DeWit:                            And six is-

Steven Butala:                   And then six is canceled. And so you always want to keep track of the canceled sales. What you’ll find is that for a lot of reasons, just transactions don’t work. Sometimes the people who are on the deed are deceased and you’re talking with their children and then there’s a bunch of stuff that’s got to go on before we can actually do it, and we deem that it’s not worth it. Sometimes the seller changes their mind. We change our mind. We look at the property, we were like, “Yeah,” but you don’t want to throw it away.

Jill DeWit:                            Taxes too high.

Steven Butala:                   So we assign them to completed sale or canceled sale, sorry. And every couple of years, we go back in there, there’s thousands and thousands and thousands of properties because things change. Maybe we take on a paralegal or something that can undo some of these legal issues really easily for us. That’s actually happened, is happening now. So now we’re reviewing all these canceled sales that we’ve had for years and creating deals out of them. So those are the five. There’s really five.

Jill DeWit:                            That was like our whole big process.

Steven Butala:                   And then there’s little sub steps in there.

Jill DeWit:                            That’s what we’re talking about right now.

Steven Butala:                   Again, it’s beyond the scope of this form, you know, audio video form here.

Jill DeWit:                            Right. Well that was my whole point of this whole thing was those sub steps. To simplify your acquisition process, think about the big steps, break them down as sub steps, break them down even further. Next thing you know, you have a manual and you’re on your way.

Steven Butala:                   That’s it.

Jill DeWit:                            And then you have a process.

Steven Butala:                   You have to have a process.

Jill DeWit:                            You’ve got to tweak it for awhile. You might go, “Oh, I need to move that before that because I missed it here. Oops, I forgot one. I got to throw that in. I forgot to check taxes. I forgot to check this.” Whatever it is. You’ll tweak it a little bit. And after 10 or 20, you got it down and it’s not that bad.

Steven Butala:                   You good?

Jill DeWit:                            Yeah.

Steven Butala:                   We know your time is valuable. Thanks for spending some of it with us today. Join us next time for the episode called how to get over the fear of buying property.

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

Steven Butala:                   You are not alone in your real estate ambition. I love talking about acquisitions. I mean it.

Jill DeWit:                            Me too.

Steven Butala:                   That’s what this is all about.

Jill DeWit:                            I know. You’re cute. Wherever you’re watching, wherever you are listening, please subscribe and rate us there. We are Steve and Jill.

Steven Butala:                   We are Steve and Jill. Information.

Jill DeWit:                            And inspiration.

Steven Butala:                   To buy undervalued property.

 

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

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

The BuWit Family of Companies include:

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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.

Removing Risk from Your REI Career (LA 1068 – 0207)

Removing Risk from Your REI Career (LA 1068 – 0207)

Transcript:

Jack Butala:                         Jack Butala for Land Academy. Welcome to our Cash Flow From Land show. In this episode, Jill and I talk about removing risk from your REI career. Great show today, Jill. Before we start, let’s hear some funny stuff.

Jill DeWit:                            It’s interesting that I am still surprised by the things that come out of your blog sometimes, Jack. What were you checking for titles today?

Jack Butala:                         What?

Jill DeWit:                            I’m not sure those will pass the …

Jack Butala:                         My gosh.

Jill DeWit:                            Who’s in charge of when you write a blog and you title … Is there an FCC? Who’s in charge of that kind of thing? I happen to,

Jack Butala:                         You mean the boredom-

Jill DeWit:                            … catch you.

Jack Butala:                         The boredom factor?

Jill DeWit:                            No, no, no, no. I caught the … I was lucky enough to sit in on your marketing meeting today. You guys are running through some title checker thing which I thought was really cool. I was just a little surprised by how far south you two took it looking for titles is what I’m trying to say.

Jack Butala:                         What did you hear?

Jill DeWit:                            I heard things like strippers. I heard things like how horrible it is to be Italian.

Jack Butala:                         It’s not horrible to be Italian. It’s great to be Italian.

Jill DeWit:                            No, wait. Not horrible, but what was the word? Shucks, I forgot what the terminology was.

Jack Butala:                         Italian people, at times, communicate through yelling. I’m softening it for the show.

Jill DeWit:                            You were working on something like a blog title and print titles. That’s what I caught. I was just like … I can’t believe I’m still surprised by what you guys come up with.

Jack Butala:                         I’m having trouble being Italian. That was one of them.

Jill DeWit:                            There you go. It was really funny. All good.

Jack Butala:                         Yeah, that is some funny stuff that we heard today.

Jill DeWit:                            Yes.

Jack Butala:                         Boy, if I knew that was the topic, I would have some [insane 00:01:40] one-liners. Anyway, let’s take a question-

Jill DeWit:                            That’s why you don’t know what’s coming until I get to say that.

Jack Butala:                         Let’s take a question posted by one of our members on successplant.com, our free online community.

Jill DeWit:                            Okay. Kyle says, “I’m just getting started in pulling my first list from Agent Pro. For property type, do I select agricultural/rural or residential vacant land?” Do you want to back up?

Jack Butala:                         Can you take a crack at answering that?

Jill DeWit:                            Well, I would like to back up and ask, if you would, Jack, explain what he’s trying to do here for people that might be just joining in.

Jack Butala:                         Yeah. There’s lots of places to go get data. Most of them are … Well, some of them are very credible. What you want to make sure about any data that you pull is a couple of things. One that it’s fresh because properties get bought and sold all the time. If you have a database or a list … If you’re not accessing a database, chances are you have a list. A list can be old. It could be 20 years old, two years old, one year old. We don’t know. It could be from yesterday. You want fresh data. The best way to do that is to access the database.

Jack Butala:                         Number two, you want that database for all product types, not just land, to have a assessed value. It’s the way that you can really scrub your data down and send offers to the right people. This is for apartment buildings. It’s for houses. It’s for vacant land, all product types. That’s how you gauge who you’re sending a letter to and that’s, in some ways, how you priced the offer. If you don’t have assessed value, you’re really taking a stab in the dark. What you’re going to end up doing is wasting a ton of postage. A ton of money on postage. The percentage of the number of offers that are going to return that are signed so you can do the deal will dramatically go down.

Jack Butala:                         Agent Pro 24/7 is a useful tool. It’s about to be in our collection of tools in our products that we offer, but it’s not the best one out there. The one that we offer is the best one.

Jack Butala:                         Kyle here, bless his heart, is clearly very new at this. He pulled a list from Agent Pro. Congratulations. It’s step one. It wouldn’t be my first choice. Then he’s asking if he should select agriculture, rural, or as we call it ag-rural or residential vacant. In a world where there’s no such thing as dumb questions, this is a fairly green question. Well, we’ll answer it anyway. The answer is you’re just going down the wrong path. Those should be included: agricultural, rural and residential vacant land. You’re missing a dramatic number of willing sellers. In our Cash Flow From Land program, not to belabor the point, I really go over this in great detail in front of the screen and show the viewer exactly how to scrub data to get the maximum results. It’s beyond the scope of the podcast here.

Jill DeWit:                            I love it.

Jack Butala:                         I hate to get all serious.

Jill DeWit:                            I love it because it’s such a valid point. You don’t want to be sending out … We get them down to less than the price of a stamp. You don’t want to be sending out an offer that is going to the wrong people, and you’re wasting all that postage. That’s the thing, too. One important thing is I see people all the time trying to cut corners and they think they’re cutting corners by buying a cheaper product. You know what? They’re wasting their time and their money sending out more mailers into the wrong people.

Jack Butala:                         Are you really saving money?

Jill DeWit:                            You’re not saving any money.

Jack Butala:                         It really-

Jill DeWit:                            I know that because we did that and we did it all wrong.

Jack Butala:                         Yeah, Jill. What was that?

Jill DeWit:                            I can say. It’s funny. I’m like, “You know what? Hey, I don’t … ”

Jack Butala:                         It’s the equivalent of this. If you sent a letter to all of the skyscrapers in Manhattan because you didn’t know they were skyscrapers, but you’re just looking at data, and you said, “I want to buy your building for $500,” you’re just going to make a tremendous amount of people angry, and you’re going to waste postage. By far the biggest component expense to what we teach with our members is postage. You want to make darn sure that you’re scrubbing this data right.

Jill DeWit:                            Doing it right. Exactly.

Jack Butala:                         We’re all learning from it. Nobody is busting on this guy at all. We all had to start somewhere. I started way below this level. At least he knows you got to pull some numbers from a database, pull some data from the database and send them offers. That took me like eight years to figure out.

Jill DeWit:                            You didn’t even have this option back then.

Jack Butala:                         No, we didn’t.

Jill DeWit:                            That was the whole thing, too. The way it is now … You and I talk about this in general. Let’s try not to reinvent the wheel here. If you’re going to write a book or something, learn from somebody who’s written a book. Let’s not self-publish.

Jack Butala:                         Exactly.

Jill DeWit:                            That’s near and dear to me right now. I’m not going to try to reinvent it, do it and save a dollar. Who cares? If I’m going to do it, I’m going to do it right. I’m going to go to the experts and copy them.

Jack Butala:                         Well said.

Jill DeWit:                            Next. There you go. Thanks. I’ll get off my box now.

Jack Butala:                         We’re both standing on a box next to each other for a minute.

Jill DeWit:                            That’s right.

Jack Butala:                         Hey, strangely enough, Kyle’s question leads us to the actual meat of the show. If you have any questions or you want to be on the show, call 800-725-8816. Today’s topic, removing risk from your REI career, your real estate investment career. This is the meat of the show. Jill, can you think of two or three ways to immediately remove a tremendous amount of risk from your REI career?

Jill DeWit:                            My goodness.

Jack Butala:                         Cut to the chase.

Jill DeWit:                            Yes.

Jack Butala:                         Go ahead. I don’t want to put you on the spot. I can start it first, if you like.

Jill DeWit:                            One is find someone who’s in the area you want to be in who’s already figured it all out and learn from them. How’s that?

Jack Butala:                         Awesome.

Jill DeWit:                            Thank you.

Jack Butala:                         Here’s my number one rule when you’re starting out to remove risk. Find a buyer before you find a deal. This is what Jill and I do every single month. We have a buyer for houses. We wholesale houses and he says some version of this sentence, “Boy, if I had 15 houses in X, Y, Z zip code for this price, I would knock it out of the park.” We’ve all heard people say that. People who own dealerships, car dealership say the same thing, “Boy, if I had 42 4Runners, I’d sell them all this weekend.”

Jack Butala:                         That’s what we do. We make that happen for that person and they are the buyer. We go to that zip code. We send out a ton of letters to everybody. Scrub the data down, not every single person, scrub the data down so it makes sense. We do it all on behalf of one, or two, or three buyers. Now, there’s no sales to anything. We take maybe 50 or 70% of the work out of the whole thing. Never hits the MLS. The people sign it and we actually sned this buyer out to preview the transaction. Jill and I never see the houses that we buy. If our guy goes out there and says, “No, I just don’t like it,” he calls several of his friends or people that he knows in the same business to see if they do. We still make the same amount of money.

Jack Butala:                         On previous shows, we’ve talked about having an acquisition criteria. That’s it. If the deal doesn’t happen, we walk away. Move on to the next one.

Jill DeWit:                            Well, I love it, too. We know ahead of time what they’re willing to spend. They’re saying, “I need this zip code, this size house and I’m willing to spend up to X.” That’s the beauty of our data.

Jack Butala:                         Anything.

Jill DeWit:                            People don’t believe me until I get them to take a look at it.

Jack Butala:                         I know.

Jill DeWit:                            I’m telling you I can go and pull a list in this intersection within a mile radius of all the three bedroom, two bath with a lot size between this and this, and what else do you want to know? You want to know how long they’ve been there. Do you want to know if there’s any mortgage on it? Do you want to know square footage? Do you want to know-

Jack Butala:                         It’s the best data in the world.

Jill DeWit:                            It is. Do you want to lean information? Do you want to know what it sold? I can get that detailed on it. Then I can say, “You said,” which I love, “assess no higher than X.” I know I’m hitting the ones that are in my price range that somebody is going to say yes. I can send out strategic letters and I’m not wasting my time or my money.

Jack Butala:                         It’s all data-driven.

Jill DeWit:                            I’m not driving around.

Jack Butala:                         If you’re pulling from substandard data … It’s all over the internet. Go out and check the groups in Facebook and check Success Plant. There are people that have successful stories of pulling data from other sources. They say, “What are you guys talking about? I just bought 14 properties, and I sent out seven letters.” That’s great. I think that you got a great one mailer experience and that’s awesome for you. If you want to make a career out of this and make millions and millions of dollars like we have, and I’m not bragging, I’m just trying to make a point, that’s not going to work.

Jill DeWit:                            Good point. That’s a great point because you’re right. My wife and I handwrote all these letters. Great. Are you going to handwrite a thousand of them next weekend,

Jack Butala:                         Or hundreds of thousands.

Jill DeWit:                            … because now you’re going to turn up the volume? That’s not going to work.

Jack Butala:                         There’s a lot of people that say, “Man, I bought 14 properties. I made $40,000 on this whole thing. I’m done. That’s it.” I don’t work like that. If I make 40,000 bucks in a few deals, now I want to make 400 and then 4 million.

Jill DeWit:                            I know.

Jack Butala:                         It just never stops. If you’re that kind of person, our data program is for you. It’s the best data in the world.

Jill DeWit:                            I’m trying to think of other ways to remove risk. Know what you’re doing, have the right stuff.

Jack Butala:                         Start with education.

Jill DeWit:                            Yeah, be educated.

Jack Butala:                         No, start with education.

Jill DeWit:                            Have the buyers.

Jack Butala:                         The single biggest mistake I see new investors make is that they start looking at deals. I know we talked about it before. That’s the last thing you should do. First thing you should do is get educated wherever you get educated. It might be your parents. It might be a guy on the street that’s a house flipper. God forbid, it might be in a hotel room, not a hotel room, but a hotel …

Jill DeWit:                            Hello.

Jack Butala:                         Hotel, you know, where those-

Jill DeWit:                            What do you mean? Late night in a hotel room to get educated.

Jack Butala:                         Those late night TV things where you have to spend $5,000 to get … If that’s what you want to do, that’s fine. Get educated first. Don’t start looking at deals. You’re going to make a bunch of mistakes like the person in Success Plant that was asking this question. It’s a little scary. I’d spend four, five, eight months getting seriously … Imagine if a surgeon did this.

Jill DeWit:                            I know. Well, you know-

Jack Butala:                         What if you’re a surgeon. I’m going to try a surgery on your face first. Then I’m going to learn that way.

Jill DeWit:                            Do you know what’s funny? Like you said, it’s not,

Jack Butala:                         Face surgery.

Jill DeWit:                            … impossible. It’s not crazy,

Jack Butala:                         Face surgery.

Jill DeWit:                            … hard but you need … There are moving parts. You could waste months trying to figure out one moving part versus just aligning with the right educator.

Jack Butala:                         And money.

Jill DeWit:                            And money. That’s what I’m saying. Your time is money. My time is money.

Jack Butala:                         Postages, it can get expensive. You don’t want to shotgun this. You want to rifle it.

Jill DeWit:                            Exactly. Not only that, like you said, we’re doing that, too. You shotgun it and you have everybody calling you on the planet. You don’t want that.

Jack Butala:                         Right.

Jill DeWit:                            I think we just covered eight things.

Jack Butala:                         It’s bleeding right into my Technical Two. This is the Technical Two, two minutes of property investment advice from our 15-year, 15,000 deal transaction experience. Find a buyer before you find a seller.

Jill DeWit:                            Heavy.

Jack Butala:                         It’s less than two minutes, less than 15 seconds. If you have a question, you want to be on the show, call 800-725-8816. Jill, do you have some inspiration for us?

Jill DeWit:                            I do. Never sell yourself short. That is a good reminder for everyone. I don’t care who you are, even at our level because we were both reminded that today by our marketing person. I thought that’s just something great to share with everyone. Don’t think you’re not … Maybe you don’t have the funds to be at whatever level that you are, it’s okay. Don’t sell yourself short. Go for it. If you want to be, I don’t know, flipping apartment buildings, something like that, just because you don’t have the money in your back account right now doesn’t mean you can’t do this, and figure it out, and find a buyer like Jack said. Then go find a property and make it happen. Yeah, go ahead.

Jack Butala:                         Jill, listen. I love it. Sometimes these inspirational things can be silly and sometimes they’re super awesome. This one, in my opinion, happens to be super awesome.

Jill DeWit:                            Thank you.

Jack Butala:                         The biggest deterrent from people pursuing all those stuff that they want to pursue is money. I’m here to tell you, if you’re waiting for money to do something like this, you’re going to wait forever. There’s way more money out there than talent. If you develop a skill, like we have and like we teach our members how, to finding undervalued, go see undervalued real estate of any type, there will be people with money standing in line once they find out you have that talent. Develop the talent to find undervalued property. Use the methods that we do with mailing and stuff and knock yourself out. You’re going to kill it.

Jill DeWit:                            Exactly.

Jack Butala:                         Everybody has to get over that first deal. Shoot for the unknown.

Jill DeWit:                            Exactly.

Jack Butala:                         Right now, this very minute, there are X number of people who own apartment buildings and a certain percentage of them have had it. Maybe a tenant made them nuts. Maybe they’re going through three evictions on a 13-unit building somewhere. Maybe they passed away today, and the kids don’t want anything to do with the apartment building business, and they just want to cash out of it. If they were all standing there with your offer in their hands, your offer that’s half of what the thing is worth, several of them are going to sign it, and send it back, call you and do the deal. That’s just the fact of it.

Jill DeWit:                            It is.

Jack Butala:                         You don’t need any money. If you have an offer for a property that’s worth half, how hard do you think it’s going to … [inaudible 00:16:17] Craigslist- [crosstalk 00:16:17]

Jill DeWit:                            [crosstalk 00:16:17] You’ll find it. Two phone calls.

Jack Butala:                         If you own an apartment building, this is how I’ll write the ad. If you own an apartment building, I got a deal and I can’t close it because I don’t have the money but it’s a smoking deal. The property is worth twice what I have negotiated, please give me a call. I’d love to turn the deal over to you for 10,000 bucks. Your phone will light on fire.

Jill DeWit:                            All over the country. Yeah, totally.

Jack Butala:                         Don’t let money stop you. Well said, Jill.

Jill DeWit:                            Thank you.

Jack Butala:                         I twisted that all around. What was the advice?

Jill DeWit:                            It was never sell yourself short.

Jack Butala:                         Shoot for the moon or something else.

Jill DeWit:                            You’re so funny. I usually title things … You usually title things in a … Don’t do this. I will say, “Yes, do this.” I’d make the positive spin. This time I did the the negative and you did the positive. It’s funny. Today, that’s weird, I’m glass half empty and your glass full, I guess, today.

Jack Butala:                         How can that be?

Jill DeWit:                            I don’t know. That’s really, really weird.

Jack Butala:                         It wasn’t like that all week.

Jill DeWit:                            You’re rubbing off on me. Maybe that’s it. I know what it was. You know what it was. It’s our conversation today and we were told, “Go ahead, have an opinion.” I’m like, “I’ll have an opinion.”

Jack Butala:                         My gosh. Yeah, we’ll tell the story soon. Hey, join us in another episode where Jack and Jill discuss how to use information.

Jill DeWit:                            And inspiration.

Jack Butala:                         To get just about anything you want.

Jill DeWit:                            We use it everyday to buy property for half of what’s it worth and sell it immediately.

Jack Butala:                         Get there first. Good inspirational stuff, Jill.

Jill DeWit:                            Thanks. I just came up with that. I thought you were just talking to me. I’m just talking. I didn’t know … I just said, “That was really good, Jill.” “Thanks.” That was it. I’m done.

Jack Butala:                         Welcome to our podcast. Here’s this thing we have called a podcast that we do everyday.

Jill DeWit:                            I didn’t know it was still going.

Jack Butala:                         The format hasn’t changed for about a year.

Jill DeWit:                            Nice. Well, then I thought we were due for a tweak and that was it.

Jack Butala:                         You know what? Maybe that’s a sign that we are due for a tweak.

Jill DeWit:                            Maybe. I was just confused.

Jack Butala:                         I’ll give you a tweak.

Jill DeWit:                            Thanks. No, that was funny when-

Jack Butala:                         Thanks.

Jill DeWit:                            That person told us today.

Jack Butala:                         Surgery face.

Jill DeWit:                            Surgery face. All right, success pants.

Jack Butala:                         I was saying surgery face, not your face.

Jill DeWit:                            I’m going to say, “Who are you calling surgery face?”

Jack Butala:                         All through the show and our listeners heard it, but you didn’t and that’s what makes me laugh.

Jill DeWit:                            Actually I did hear you. It was one of those moments where I’m used to you, Jack. Whether you’re a husband, wife, partners, whatever, business partners, you tune out the other person at times because you know exactly what they’re saying and you’re choosing not to … I didn’t want to feed the bear or whatever the term is.

Jack Butala:                         You know what my mom used to say?

Jill DeWit:                            What?

Jack Butala:                         Don’t encourage him.

Jill DeWit:                            That’s it. That’s exactly what I was doing. I was choosing not to encourage that behavior and pretending I don’t know it.

Jack Butala:                         You know when you do that, I just bring it up in the after talk anyway.

Jill DeWit:                            That’s nice. Thank you. You know what? Watch. I’m going to do it to you in the next episode. I’m going to be quietly whispering something about makeup or something silly. I’ll bring up something really [inaudible 00:19:22].

Jack Butala:                         Something totally girly like window treatments.

Jill DeWit:                            I’m going shoe shopping later. Don’t tell him. You know what I’ll do? You know what I’m going to do? I’m going to use this time to announce I really overspent for something, and say it under my breath, and then I can say, “I told you.”

Jack Butala:                         You know what? I’m going to tell you a secret. When you go shopping and overspend, my life is awesome. I don’t care about the money at all.

Jill DeWit:                            I know.

Jack Butala:                         I grumble about it a little bit probably out of habit from what my parents used to do. I could care less about overspending. I don’t care. If it just makes you happy for like three days,

Jill DeWit:                            Thanks.

Jack Butala:                         … that’s what I care about.

Jill DeWit:                            Thanks.

Jack Butala:                         Jack and Jill, information and inspiration. Let’s go buy some property.

 

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

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

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

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

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

Best Time to Start In Real Estate Investing (LA 1067- 445)

Best Time to Start In Real Estate Investing (LA 1067- 445)

Transcript:

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

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

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

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

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

Cash in and Out of First Deal in 45 Days (LA 1066 – 405)

Cash in and Out of First Deal in 45 Days (LA 1066 – 405)

Transcript:

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

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

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

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

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

Leave Your Land Alone (LA 1065 – 785)

Leave Your Land Alone (LA 1065 – 785)

Transcript:

Steven Butala:                   … Jill here.

Jill DeWit:                            Hi.

Steven Butala:                   Sorry, hi, Steve & Jill. 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 leaving your land alone. We’ve been talking about her all week.

Jill DeWit:                            There’s a lot of things I’d like to … just leave it alone. I feel like I say it a lot.

Steven Butala:                   Yeah, why do we as people have to mess with stuff, you know?

Jill DeWit:                            That’s true, and get our hands all up in everything. Leave it alone.

Steven Butala:                   I bet that’s been going on since the beginning of time.

Jill DeWit:                            I’m sure it has.

Steven Butala:                   I more than anybody love the concept of messing with stuff to improve it, or constantly moving forward, or you know-

Jill DeWit:                            It’s true.

Steven Butala:                   For me it’s all data driving. Finding better ways to analyze data to make decisions and stuff.

Jill DeWit:                            That’s true.

Steven Butala:                   But actually physically changing a property, like a contractor does or a developer does, and I understand all that, too. The world needs people like that, for sure.

Jill DeWit:                            There’s a ton-

Steven Butala:                   I’m just not one of those people and I think if you’re gonna maximize money, you know, for us at this level, there’s no better way for us to maximize money than what we do.

Jill DeWit:                            I agree.

Steven Butala:                   You know-

Jill DeWit:                            I was gonna say, the whole point to me about leaving it alone is you already won, so why mess with it? You bought it at the right price, that’s when you know. You should buy these assets knowing that if I do nothing, it’s just gonna be fine.

Steven Butala:                   We’re all in the business of creating equity, right? You know what, before we get into it, lets take a question from one of the members in the Land Ambassadors online community, it’s free.

Jill DeWit:                            Brandon asks, “In our last mailer campaign, I suppose some properties zoned for multi-family were included and someone just signed an offer and sent it back-”

Steven Butala:                   Good.

Jill DeWit:                            “… to buy their multi-family zoned vacant land in a city for 8 grand.”

Steven Butala:                   That’s what we’re in the business here for.

Jill DeWit:                            What?

Steven Butala:                   I love how this is going.

Jill DeWit:                            “The property across the street, also vacant, is asking $50,000. The market in this area is fairly hot and we’ve sold property in this subdivision before, but not multi-family.”

Steven Butala:                   This is good stuff.

Jill DeWit:                            “However, the town is currently embroiled in a lawsuit against the city or department of water resources over the prohibition of drilling new wells. I’m quite certain, though, based on city planning maps, that this property has access to public water lines. I’ve called the water company several times in the past, but they’re never helpful with vacant land.” No kidding.

Jill DeWit:                            “They won’t tell me if they service a particular area. Only if they service an address that already has a house on it. So my question is, is this a run to the bank situation?”

Steven Butala:                   Yes.

Jill DeWit:                            “Or are there troubles buying multi-family zoned vacant land? Oh, and I almost forgot to mention that across the street and two parcels over, there’s already a thriving apartment complex constructed. Also, SFR land in the area is asking $18,000 to $20,000 and up. So what would you guys do?”

Steven Butala:                   I would run to the bank.

Jill DeWit:                            Totally.

Steven Butala:                   You know, I don’t know what to say. I understand and respect your quest for, like I said, getting to know the facts and the information, but I wouldn’t have taken it this far. I would have ran to the bank and purchased the property.

Jill DeWit:                            Well, I like, you know, what we say is put in the posting in good faith what you already know. So in good faith you could say, “Here’s what I know about every parcel around there. I can’t get a definitive answer about this. So you just need to know, it looks good but I can’t guarantee it.”

Steven Butala:                   Yeah.

Jill DeWit:                            That’s really the kind of, that’s what you’re saying. “And I can’t definitively say you can’t do it.” It’s awesome. It’s a great situation.

Steven Butala:                   Water. Water’s always a huge topic, especially out west. And chances are this is out west or there wouldn’t be any issues. Water and new hookups, all of that stuff. I’m not educated enough to know about it, but I’ll tell you, I do know talking to municipalities about things like this can be really frustrating and I think that if you stuck to our actual Land Academy 1.0 / Cash Flow From Land concept and you buy for $8 and sell it for $16 and double your money, I think that’s gonna happen in a week. And just with disclosing 100% of the truth, which is, “I called the water company and I don’t know, they couldn’t get any answers. And everything else, I don’t know anything about it.” But this is a hell of a deal.

Jill DeWit:                            Right. Love it.

Steven Butala:                   Today’s topic: leave your land alone. Don’t call about the water rights. This is the meat of the show.

Jill DeWit:                            That’s hilarious.

Steven Butala:                   Half kidding there.

Jill DeWit:                            Don’t pick up the phone and do it. Hold back. Leave it alone. Leave it alone. Don’t even look. Don’t look at it, just leave your land alone. Don’t look at it. Don’t make a single call. Don’t research exactly what … more about the zoning to see what else is possible and if you can really keep an [inaudible 00:05:18] on there 365 days a year, because I’ve had this, or you have to move it every other month. Something silly like that. Leave it alone. Now we’re done.

Steven Butala:                   We are all here, all of us, unless there’s something really strange about you, we’re all here to create equity. How do you create equity? This is philosophical financial stuff now. You create equity by a, buying something for less than it’s worth. If you buy, I’m gonna use the caller. I keep saying caller. The question asker, I’m gonna use their example. They’re buying a piece of property for $8,000. It’s worth $50 and they’re gonna sell it for $16. They have created $8,000 worth of equity, just by signing a piece of paper and then signing a piece of paper again on the sell side. Or several pieces of paper. You know what I mean.

Jill DeWit:                            Yes.

Steven Butala:                   There’s another way to create equity by making improvements or creating something. Here’s an obscure example. This is actually, these are true examples. Did you know that a television in general is basically worth the sum of its parts? The sum of its raw material parts. There’s very, very, very little markup or equity created when you construct a television. I don’t know why, that’s just the way it is.

Steven Butala:                   When you construct a car, the kind that everybody drives, not like a high end car. You create about, the manufacturer takes raw materials and they create about, through the whole process, $10,000 worth of equity. You can either create equity by improving the raw material, improving the land, putting a structure on it, sub-dividing it, doing some stuff to it.

Jill DeWit:                            Right.

Steven Butala:                   Or you can just buy it cheap. Those are the two ways. There’s not any more ways than that creating equity. Which one do you want? Which one’s easier? Which one’s less time consuming? Which one’s more data driven?

Jill DeWit:                            Which one doesn’t need a factory and all that?

Steven Butala:                   For us, and most of our members if not all of them, we all believe in using data to get, and manipulating data, to find sellers who don’t want this stuff anyway.

Jill DeWit:                            Right.

Steven Butala:                   We’re not selling them any, we’re not selling them, trying to make them make a decision they don’t want to make. There’s no hard selling in this at all. Sell the property for this, this is what we’re willing to pay, sign here. Otherwise, we’re all good.

Jill DeWit:                            That’s right. Move on. No big deal.

Steven Butala:                   And there’s very consistent, predictable results. I’ve been doing this for years and years and millions and millions of offers we’ve sent. And we continue to send offers every single week. And the numbers do not fluctuate that much. Which one do you wanna do? Do you wanna leave your land alone or do you wanna go through the process of creating equity the other way?

Jill DeWit:                            Right.

Steven Butala:                   You have two choices. If you have a job, all you’re doing is doing this for someone else right now. No matter how small your job is or how high up you are, you’re helping somebody else create equity and they’re paying you for it in the form of a salary.

Jill DeWit:                            That’s true.

Steven Butala:                   So I woke up to this a lot of years ago and said, “You know, I’m just not interested-”

Jill DeWit:                            I haven’t looked at it that way.

Steven Butala:                   “… in creating equity for someone else any longer.”

Jill DeWit:                            That’s very true.

Steven Butala:                   I’d like to create it for myself.

Jill DeWit:                            Well, even if you’re in the service industry, whatever you do, maybe you’re … I don’t know, maybe you’re an accountant. You’re doing the paperwork and you’re good at it. You’re better than everybody, you’re better than me learning it myself to do my own books, for example, and I’m willing to pay for that. So that’s the equity, right? And I’m talking like you work for somebody in an accounting firm. The firm is making money having all these people do all the work and marking it up-

Steven Butala:                   Sure.

Jill DeWit:                            … obviously, and that’s the equity.

Steven Butala:                   Yeah.

Jill DeWit:                            Is that a good example? You looked at me like I’m-

Steven Butala:                   Yeah, I mean I would argue the service company, accounting is a service company for … let’s say the accounting company, their clients are manufacturers. They design airplane parts, you know, they’re just now … they’re employed by an airplane manufacturer, part manufacturer, to create equity for the … they’re just getting paid to help that person create equity.

Jill DeWit:                            Right. Exactly.

Steven Butala:                   It’s a little bit of a second tier relationship, but yeah, you’re right.

Jill DeWit:                            Okay.

Steven Butala:                   Like a restaurant, a pizza restaurant. You talked about it yesterday.

Jill DeWit:                            Yes.

Steven Butala:                   This, you know, what are the ingredients in a pizza? It’s gotta be maybe a dollar, right? Maybe two dollars, and you’re selling it for $14 or $25, whatever.

Jill DeWit:                            Right.

Steven Butala:                   I mean, you’re creating equity that way. You’re improving those raw ingredients to make a final product. I know this is philosophical.

Jill DeWit:                            Right.

Steven Butala:                   But it’s important to understand, because I think a tremendous amount of time and resources and I’m gonna get green here for a second. All the problems that happen with labor and carbon footprints and landfills and inefficiency, all come from the second part. The second part of creating equity. Is this boring yet?

Jill DeWit:                            No, I’m hanging in there. I wonder, you know what’s so funny?

Steven Butala:                   How bad is it really?

Jill DeWit:                            Well, it’s funny. I’m sure, this is what’s great. This is the value of what we’re doing right now with the audio and the video, so people listening know that, “Guy, Jill’s kind of quiet there.” And people watching it are going, “Where is her mind going right now?” Can you all tell that like my eyes are glossing over, I’m staring at the camera and I have this smile on my face like I’m paying attention, but if you look real deep into my eyes-

Steven Butala:                   There’s nothing there.

Jill DeWit:                            There’s nothing.

Steven Butala:                   You’re thinking about the beach, aren’t you now?

Jill DeWit:                            I’m thinking about pizza for lunch.

Steven Butala:                   Wow, that sounds good doesn’t it?

Jill DeWit:                            Yeah. That’s kind of where I went, and so then we … back to your pizza example.

Steven Butala:                   Oh, man.

Jill DeWit:                            Oh gosh, sorry.

Steven Butala:                   So, and you know, the world is packed full of people that have to see what they’re creating and touch it and make the pizza. They just see what’s in front of them and they make stuff. And I understand that. Go ahead.

Jill DeWit:                            I have a good point. This is so interesting. I was watching a documentary, or something I was reading on, I don’t remember what. Maybe it was … I’m always reading and looking at new stuff on growing your business and things like that, and I was just, this whole discussion about people who can’t grow their business. And it made me think of the pizza story. It was talking about a woman who had a bakery. She was so excited, she opened this bakery, but she couldn’t shift from being the sole baker and touching it all and making it all go out perfect from her shop to grow her business and even imagine having two stores and three stores and four stores, which she could.

Steven Butala:                   Totally different talents.

Jill DeWit:                            But she couldn’t, she had to touch it.

Steven Butala:                   Yeah.

Jill DeWit:                            She couldn’t make that transition.

Steven Butala:                   That’s a bakery, by the way, that you wanna go to.

Jill DeWit:                            Oh, yeah, because it’s awesome.

Steven Butala:                   You don’t wanna own it or any of that stuff.

Jill DeWit:                            Well, hold on a moment though. Here’s my other thing-

Steven Butala:                   As a customer.

Jill DeWit:                            Three, I don’t know, by three years in it’s not gonna be as good as it was on day one, because the woman’s burnt out now. If she’s the one opening up the bakery every morning at 4:00 AM, you can’t do that. You will work yourself to the whatever. I just, made me think of that.

Steven Butala:                   Yeah.

Jill DeWit:                            That’s … sorry.

Steven Butala:                   No, it’s okay. For my money, the other element here is time, right? Let’s say-

Jill DeWit:                            That’s good.

Steven Butala:                   You have two choices with a piece of property. You can sell it. Immediately re-sell it for less or you can sit around and create equity by improving it for way more time and way more money, so which one do you wanna do?

Jill DeWit:                            Exactly.

Steven Butala:                   And what’s also involved in that decision is risk. What are you gonna run into? What are the unknown issues that you’re gonna run into by-

Jill DeWit:                            Good point.

Steven Butala:                   … connecting to the city water? Tons. In this day and age, you don’t just … in this country, you can’t just do stuff without, you gotta approval from everybody.

Jill DeWit:                            Right.

Steven Butala:                   Everybody wants to be paid, and it never goes how you think it’s gonna go.

Jill DeWit:                            Right.

Steven Butala:                   You know how, reselling land, if you listen to more than 20 minutes of any episode of these shows, you know how much of a curmudgeon I am, and a naysayer I am about all of, just stuff that goes on. There’s constantly stuff that gets in your way of creating equity. But if you buy an asset and just immediately resell it, it almost goes … I have to say, we’ve done what, almost 16,000 deals right now up to this point.

Jill DeWit:                            That’s us, that’s not our community.

Steven Butala:                   And we buy … oh, our community.

Jill DeWit:                            I don’t even wanna know, but I’m just saying, I wanna make sure it’s clear it’s-

Steven Butala:                   They do that many in a month.

Jill DeWit:                            Exactly.

Steven Butala:                   And I have to say, we have had, I can probably count on two hands the problems that we’ve actually had in any of those deals.

Jill DeWit:                            Because we kept it simple.

Steven Butala:                   Yeah.

Jill DeWit:                            Keep it simple, stupid.

Steven Butala:                   Just leave it alone. Leave your land alone.

Jill DeWit:                            Can you imagine? I have a question. Can I ask a question?

Steven Butala:                   Leave your land alone. Yeah.

Jill DeWit:                            How fast would we have been out of business if we decided on every piece of rural vacant land that we purchase that we would put in a road and a well and get power out there? Could you-

Steven Butala:                   We would be out of business on the first deal.

Jill DeWit:                            Thank you, that’s my point. I’m done.

Steven Butala:                   I mean, I don’t know how else to follow that up.

Jill DeWit:                            Could you imagine?

Steven Butala:                   I mean, that’s in the simplest terms, that’s it. Just leave it alone.

Jill DeWit:                            Exactly. It’s for the end user to do what they want with.

Steven Butala:                   That’s their job.

Jill DeWit:                            Exactly.

Steven Butala:                   You know, also, could you imagine if where live, none of that was there?

Jill DeWit:                            Right.

Steven Butala:                   You would never wanna live there.

Jill DeWit:                            Exactly.

Steven Butala:                   Buying stuff and reselling it, or buying a company. That’s for another topic. Buying a company that buys stuff and reselling it as the owner, where you don’t work there, I’m actually writing a book called Acquisitions. There’s no way to make money faster than buying a company and never working there, but improving the backend stuff. The data piece, the computers. Not the actual whatever they do, make pizzas or make airplane parts or whatever, everything in between. That’s off topic for a whole different time.

Jill DeWit:                            I understand.

Steven Butala:                   Creating equity. You wanna find the most efficient way to create equity, and I’ll end it like that.

Jill DeWit:                            Leave your land alone.

Steven Butala:                   Well, you’ve done it again. You spent another 15 or 20 minutes listening to and watching the Land Academy show. Join us next time for other interesting episodes and we’ll answer all your questions. In the mean time, if you post them on landinvestors.com, it’s free. You are not alone in your real estate ambition.

Steven Butala:                   It’s too much philosophy.

Jill DeWit:                            Yeah, that was good, though.

Steven Butala:                   Was it?

Jill DeWit:                            No, I think that was good. I think you made your point. I mean, we hope we made our point. I’m sure we made our point.

Steven Butala:                   Yeah, I’m sure of it, too.

Jill DeWit:                            I think by now you know what we’re all about. Share the fun by subscribing at iTunes or wherever you are listening or watching on YouTube and while you’re at it, please rate us there. We are Steve & Jill.

Steven Butala:                   Information-

Jill DeWit:                            … and inspiration-

Steven Butala:                   … to buy undervalued property.

 

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

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Does this Property Make me Look Fat? (LA 1064 – 681)

Does this Property Make me Look Fat? (LA 1064 – 681)

Transcript:

Jack Butala:                         Jack and Jill here.

Jill DeWit:                            Hi.

Jack Butala:                         Welcome to the Jack Jill show, entertaining real estate investment talk. I’m jack Butala.

Jill DeWit:                            I am Jill DeWit, broadcasting back now in sunny southern California.

Jack Butala:                         Today Jill and I talk about, does this property make me look fat?

Jill DeWit:                            This is going to be good. I have a lot to say about this.

Jack Butala:                         It’s so nice to be back from Arizona.

Jill DeWit:                            Yeah, how many emails did you get?

Jack Butala:                         Oh my goodness. We semi-intentionally missed recording a few shows last week. I wanted to see what happened.

Jill DeWit:                            With intent. You know, that’s one of the things we tell the kids when they’re going to get in trouble or not. Did they screw up on accident, or was there intent there? Ours was kind of not really accidental. There was an intent. We were busy, man.

Jack Butala:                         I’m happy to say, I guess we were missed.

Jill DeWit:                            That was kind of cool. It was a good little test.

Jack Butala:                         I got all kinds of emails like, “Are you guys going off the air? What the heck happened? What’s wrong with your podcast?”

Jill DeWit:                            That’s not the way to do it too, but I’m sure people do that. You know it’s funny, because I go look at new podcast shows or I think they’re new podcast shows, and I find some, I go looking, I’m like, “Wow, look at this,” and then I look at the dates and I realize, oh, they’re last one was six months ago.

Jack Butala:                         It’s over.

Jill DeWit:                            I’m like, “Well, that didn’t work.”

Jack Butala:                         The truth is, Jill knows, we were in Scottsdale buying and selling houses for our new program called House Academy, and man, did it work.

Jill DeWit:                            That was so fun, super fun.

Jack Butala:                         It’s really a topic for a whole episode, but can you give us the highlights here? Did you think we would buy and sell a house that fast?

Jill DeWit:                            Yeah.

Jack Butala:                         You did?

Jill DeWit:                            Yeah. This is one of those things, Jack, you and I are so different, which is great, part of why we’re so good together. When it comes to stuff like this, you’re a little bit of a glass half empty and I’m a glass half full. I’m like, “Oh, no worries. I know we got this. I know it’s priced right. I know who we are. I know how valuable the asset is. We got this.”

Jack Butala:                         I did a bunch of analysis on how three specific zip codes perform in a little section of central Scottsdale, Arizona, sent everybody who did not have a mortgage, their mortgage is paid off, a cash offer for a certain amount. I priced it and we ended up buying three houses.

Jill DeWit:                            It’s awesome.

Jack Butala:                         The first one sold. The other two are not sold because we don’t want to put them on the market. We’ve built the buyer list of flippers, renovators, and we’re just working it through and it’s working out great so far. I’m surprised. I mean, I really am. Maybe it’s our experience level too, I don’t know.

Jill DeWit:                            Can I share a tip? I had no idea this was going to work.

Jack Butala:                         Yeah.

Jill DeWit:                            You and I, I don’t know whose idea it was, “Hey, let’s have an open house,” like right?

Jack Butala:                         It was my idea.

Jill DeWit:                            Okay. Here we are getting signs and balloons and cookies and water …

Jack Butala:                         Which is right out of 1957, by the way.

Jill DeWit:                            Totally. Well, that also went along with, “Hey, let’s put it in the MLS,” everybody, here’s … I would like to share a couple tips if I may.

Jack Butala:                         Absolutely.

Jill DeWit:                            One is, everyone on the planet wants an off-market deal, but no one knows how to find it outside of the MLS, so true. When we send out these emails or we’re calling and letting people know, “Hey, by the way, you want an off-market deal?” For some reason, I don’t know, they didn’t take it seriously or something like that. The minute we put it in the MLS now everybody’s like all excited. I’m like, “Really, really? You’re the same guy who told me 10 minutes ago you don’t want, whatever. Okay, fine.” We learned that one and we found a great company that’ll just, no commissions.

Jack Butala:                         A flat fee MLS listing.

Jill DeWit:                            They just put it in there for us and we do the deal.

Jack Butala:                         The whole thing was like $250. [crosstalk 00:03:40]

Jill DeWit:                            It was awesome. That was great tip number one, and we put in there right away, like, we’re having an open house. We just decided, “You know what? We’re going to test this. Everybody’s kind of old school. Let’s call a spade a spade.” We went old school on this.

Jack Butala:                         Well, my thinking behind the open house was, instead of scheduling walk throughs all over the place, let’s just say, “Hey, the thing’s going to be open between,” what did we do, “12:00 and 3:00. The owners are going to be there between 12:00 and 3:00 on Friday. Stop by, bring whatever you need to do. Bring what you need to bring to make a decision there,” and it worked.

Jill DeWit:                            It was awesome. Yeah, so we walked away, I’m so glad that we did that, Jack. That’s one of the things that I’m thinking, in every new market that we go into with this, I think it’s not crazy for you and I at least to hold one that we’re there in the beginning and gather phone numbers and meet people, because that’s what we’re doing. Really what we ended up with is waling away with 20 awesome, solid flippers.

Jack Butala:                         And a full price all cash offer.

Jill DeWit:                            Right, and all the phone numbers and contacts that we need that they’re like, “Okay, what else do you have? What else do you have? I missed this one, what else do you have?” I’m like, “All right, you’re on my list. I got you.” That was really cool.

Jack Butala:                         In fact, when you look at where the offer came from, it didn’t come from that open house, but what we got from that open house was a collection of buyers that have now put their orders in for exactly what they want.

Jill DeWit:                            We did have offers from the open house, that’s the whole thing, but they weren’t as high as the one [inaudible 00:05:12].

Jack Butala:                         All told, I think 12 offers on the first house, which is pretty amazing.

Jill DeWit:                            They weren’t as good as the one, there’s always one that slides in there. You know what it is? It’s just like land, Jack.

Jack Butala:                         Yeah.

Jill DeWit:                            It’s just like land.

Jack Butala:                         It’s real estate deals.

Jill DeWit:                            It’s the ones that don’t ask any questions, next thing you know an offer pops in. There you go. You never talk to the person at all.

Jack Butala:                         Exactly.

Jill DeWit:                            Just like land. Thank you.

Jack Butala:                         It’s nice to be back in California and back doing the show.

Jill DeWit:                            It is.

Jack Butala:                         Before we get into the actual topic of the show, let’s take a question posted by one of our members on the jackjill.com online community, it’s free.

Jill DeWit:                            We have a topic?

Jack Butala:                         We do.

Jill DeWit:                            This is going to be a long show.

Jack Butala:                         The topic is, you know what it is.

Jill DeWit:                            I’m kidding, I am totally joking. Okay, Matt asks, “Hi everyone. I’ve got a potential buyer who sent me the following: I need your telephone number so I can direct you to my real estate agent who processes through my loan company that we pay you off.” What? Oh my gosh.

Jack Butala:                         I know where this is going.

Jill DeWit:                            “I’m looking for a cash buyer. The selling price is $12,000. I’m selling with a title company so they handle all the funds. Is there anything that I need in advance to ensure that this buyer can follow through? Can I get some form of proof of loan availability? They are paying title costs, so if they have a proof of loan for $12,000 and closing ends around $13,000, would that mess things up?”

Jack Butala:                         Yeah.

Jill DeWit:                            “Will is [inaudible 00:06:41] slow down the transaction as we wait for funding? Does anyone have experience with this, or should I just say, ‘Sorry, I’m looking for a cash buyer.'”

Jack Butala:                         Oh, he answered his own question.

Jill DeWit:                            He did.

Jack Butala:                         You should say, “Sorry, I’m looking for a cash buyer.”

Jill DeWit:                            I’m sorry, I’m not going to talk to your real estate agent.

Jack Butala:                         Here’s why. You can’t. Lenders will almost always not lend on rural vacant land. It’s not an asset that they want to be involved in. I mean, unless you have a private lender, it’s a very different situation.

Jill DeWit:                            Like, your uncle.

Jack Butala:                         Yeah, like your uncle or your Jill. If you have your Jill, because you’re ready to lay some money up, that kind of thing.

Jill DeWit:                            Thank you, oh, thank you.

Jack Butala:                         In vacant land there’s no real estate agents, it’s just a buyer and a seller and Microsoft Word.

Jill DeWit:                            In a perfect world, there’s never even needing a phone number. They go online, they check out, so that’s the whole thing too. You know what man, what we’re setting up, and I know Jack was about to go there. I don’t mean to steal your thunder here.

Jack Butala:                         No, no. There’s no thunder in this question, actually.

Jill DeWit:                            You know, $12,000 is not too much money for the right buyer to find your property on your website, add it to his checkout cart, and put it on a credit card. Then you wake up in the morning and it’s done and paid.

Jack Butala:                         It happens to Jill and I all the time, just like that.

Jill DeWit:                            Thank you.

Jack Butala:                         Some people, depending on … This actually leads into our topic. Some people think $1,200 is a lot of money, some people $12,000, $120, $12 million, $120 million and on and on. Some people probably could put $100 million on their credit card if they needed to.

Jill DeWit:                            Right.

Jack Butala:                         If you’re reaching the right people with the right piece of real estate, they might see that. It’s unlikely, but $120 is no brainer for most people.

Jill DeWit:                            Right. This does tie into our topic.

Jack Butala:                         Today’s topic: does this property make me look fat? This is the meat of the show. The heck does that mean, Jill?

Jill DeWit:                            Well, this came from a show, gosh, now many moons ago. Just kidding. What we were talking about, there’s always something out there for somebody. We were talking about, what are you? Are you a house person? Are you a land person? Are you an infill lot person? We were just talking to an employee today, she’s like, “I got this guy, but they’re apartment people.” Great, I mean, what is your property type? There’s something for everybody.

Jill DeWit:                            Do I look good in stripes? Does this make me look fat? That’s where that came from. Does this house make me look fat? Get a bigger doorway, just kidding, a joke. This ties into a little bit of Matt’s question, and man, you know, I know a lot of our members too, many members that, when they were starting out they were just like, dumbfounded by this. Like, “You’ve got to be kidding me, someone will pay $12,000 and not even go look at it and not even have to talk to you?” I’m like, “Yep. You’re right.” Then six months in or not even that, they’re like, “Well, you’re right, nevermind.” I say, “Thank you.” It’s true.

Jack Butala:                         I’m not sure what you mean. Sometimes, Jill, all the thought is in Jill’s head for about 12 minutes, and then right at the end the last thing that she’s thinking comes out verbally.

Jill DeWit:                            All right, so I’m sure our listeners got it, so let me circle back around for you, Jack.

Jack Butala:                         Yep, just for me, please.

Jill DeWit:                            Exactly. My point was, the number of members that come to us and they think that this concept is nuts, they can’t even fathom someone would spend more than $10,000, even more than $1,000 on something sight unseen, I mean just, other than what they’ve seen online, and buy it. They don’t get it.

Jack Butala:                         Right.

Jill DeWit:                            Then later on, like I am a pro at this. I try not to do it, but it always happens. You know, there’s always going to be something where you’re eating your words. Then later on they’re eating their words a little bit going, “Oh, nevermind. Got it.” Now does that make sense?

Jack Butala:                         Yes, completely.

Jill DeWit:                            Okay, good.

Jack Butala:                         Really, this is another way of saying you really want to choose a specialization. If you look good in black and you don’t look fat in black, and you like rural infill lots with utilities at the lot line, you know, this is what you want.

Jill DeWit:                            What about your dating type? What about blonde or brunette?

Jack Butala:                         Same thing.

Jill DeWit:                            Blonde or brunette, do you want heavily treed or no trees? Don’t even go there on that one, Jack.

Jack Butala:                         Where is your mind? What’s up with you? Oh my gosh.

Jill DeWit:                            We should think of some other crazy comparisons that you can go, “Huh.”

Jack Butala:                         Are you a pickup truck kind of person or a sports car kind of person?

Jill DeWit:                            Yeah, that’s a good one.

Jack Butala:                         Or a sedan.

Jill DeWit:                            Do you want paved or a dirt road?

Jack Butala:                         Right. Do you want to be found out there or not?

Jill DeWit:                            Right. Access or no access? Versus legal access.

Jack Butala:                         Flats or pumps, which one makes you look fat? You know, some people need to hear this from a man, so it’s going to be me.

Jill DeWit:                            Uh oh, is this directed at me?

Jack Butala:                         No, not at you at all, but it’s possible to look fat in pumps.

Jill DeWit:                            Yes, if you have cankles.

Jack Butala:                         I’m not going to say anything else. I’m just saying, if you wear really thin shoes and you’re a certain type of person, it’s not going to improve anything.

Jill DeWit:                            If your feet go over the side …

Jack Butala:                         Oh my gosh, Jill.

Jill DeWit:                            Just kidding. Why is that bad?

Jack Butala:                         I don’t know. You just don’t have to paint a picture that much. Leave something to the imagination.

Jill DeWit:                            I’m sorry. Well, this is a podcast. I’m trying to help everyone envision, they can’t see.

Jack Butala:                         All kidding aside, the meat of the show really is, choose a property type that really makes sense to you and make it work. You’re right, today we were absolutely talking with somebody who has several logical buyers for apartments, and they’re not into apartments so they’re not …

Jill DeWit:                            They’re having trouble with that.

Jack Butala:                         Yeah.

Jill DeWit:                            They were having a little bit of trouble wrapping their head around it. Like, “Where do I even start,” because it’s not their thing.

Jack Butala:                         Right.

Jill DeWit:                            You know what? You’re right. If you recognize this is going to be an uphill battle, then you have two choices. One is, go to what you do know, which is really what we talked about. Well, “Let’s start with what you’re good at. What area you know, what you’re really good at.” That’s a logical path. The other side is, it’s not like you can’t be an apartment expert if you want to be one, just recognize it’s going to maybe take you a little bit longer and just do it.

Jack Butala:                         Sure, or live off what you can on what you know, and make that transition or add it in or roll it in. You know, roll some Levi’s into your Wranglers collection.

Jill DeWit:                            There should be no Wranglers.

Jack Butala:                         I know, you have a Wranglers thing.

Jill DeWit:                            I know.

Jack Butala:                         Like, a Lee jean thing.

Jill DeWit:                            You know what? Here, I’m going to say this. Here I am eating my words. Because I’m a California person, we don’t do Wranglers. If I lived in Austin, I might feel differently.

Jack Butala:                         You know, they have no seam on the inside, so if you …

Jill DeWit:                            How do you know that?

Jack Butala:                         Lee jeans and Wranglers for sure are for cowboys because there’s no seam on the inside, so that you can ride a horse.

Jill DeWit:                            I did not know that. Really?

Jack Butala:                         Yep.

Jill DeWit:                            That’s hilarious. I did not … That’s very interesting.

Jack Butala:                         That everybody’s real busy looking to see how their bottom looks like in jeans and they bypass these little …

Jill DeWit:                            That’s, to me, what’s more important. It really is better to look good than to see how they’re going to do on a horse.

Jack Butala:                         Well, you’ve done it again. You spent another 15 minutes listening to the Jack Jill show. Join us tomorrow where we discuss the definition of real estate investment advice.

Jill DeWit:                            Uh oh, and we answer your questions. Should you have one, post it on jackjill.com, our online community. Please go there, it’s free.

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

Jill DeWit:                            If we’re defining real estate investment advice, aren’t we defining ourselves?

Jack Butala:                         No, you know, there’s some very specific questions that I’m getting. Tomorrow I’ll really define them and really, really answer them. Like, “How the heck do I get started?” I get that all the time. We haven’t talked about those core 15 or so questions that we get. I’ll probably just keep it to three or four or five, we’ll see what happens. There’s some basic, basic things that, even people that have done a few deals already that are kind of missing. Here’s why I came up with it, because this is deal number, what, 16,000-plus for us, this first House Academy program property. I learned a ton, I know you did too. We’ve talked about it a lot. That’s part of it.

Jill DeWit:                            It’s true. Some of it’s, too, every time you go into a new market there’s a little difference. Different people and different financial situations, different spending, there’s just so much out there.

Jack Butala:                         Exactly.

Jill DeWit:                            Okay, I got it. I’m so glad to hear that that’s what it’s about, because I really thought I was going to have to, like, dig deep and share some soulful moments.

Jack Butala:                         You mean like, “Does this make me look fat?”

Jill DeWit:                            No, like, “Jill, why are you here today?”

Jack Butala:                         What the hell does that mean?

Jill DeWit:                            It’s like, you know what it is? It’s like, I don’t want to explain myself. It’s like when you get in trouble and we have to sit down and talk about it. I really don’t want to talk about. I thought we were going to have to talk about our feelings, and I don’t want to talk about my feelings.

Jack Butala:                         Sweetheart, I do not want to talk about my feelings. Trust me.

Jill DeWit:                            Oh, thank you. Now I will show up tomorrow. Thanks, Jack. Hey, share the fun by subscribing on iTunes or wherever you’re listing. While you’re at it, please rate us there. We are Jack and Jill.

Jack Butala:                         We are Jack and Jill, information …

Jill DeWit:                            And inspiration.

Jack Butala:                         To buy undervalued property.

 

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

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

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

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

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

When to Negotiate with Land Sellers NEVER (LA 1053)

When to Negotiate with Land Sellers NEVER (LA 1053)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Hi.

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

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

Steven Butala:                   Today Jill and I talk about when to negotiate with the land seller? Never.

Jill DeWit:                            Right. Well, I remember we were talking when we were in the kitchen writing our topics, and I don’t remember even why this came up, but I’m thinking this is important. Everybody thinks that we should negotiate. You should be good at negotiating. You should read negotiating books. I’m like, why?

Steven Butala:                   Even when you’re this far along in your career, I catch myself not taking my own advice, and this is one of the things that I find people in our staff doing and I do it myself. I negotiate too much instead of just saying, “You know, that’s it.”

Jill DeWit:                            Not going to happen.

Steven Butala:                   Jill’s famous for saying, “I love this asset at $22,000, but at $28,000 I hate it.” Love it at 22, hate it at 28. It’s up to you, Seller.

Jill DeWit:                            By the way, this is going to come into play later on today when we have a meeting about a certain asset that I don’t like the price, and you’re trying to make it, you want to negotiate. I don’t want to negotiate. I want to move on.

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:                            T Kyle asks, My first mailer went out on July 13th, 1500 letters to two different counties. Here’s the response. This is so good. He got one “You’re a loser” email in quotes. “You’re a loser,” got seven or eight “Take me off your list” calls, three counter offers that were way too high, one yes, but I priced way too high so I had to decline, two acceptable counter offers but the sellers ghosted me, and one negotiated sale that I will be closing on this week, hopefully will net me $10,000 in profit. That is so cool. That’s this quick little down and dirty recap.

Steven Butala:                   Exactly what you can expect. It sounds like he may be even priced it a little bit too high his first shot around, he or she. So do you think people go into this with the realistic expectation of what’s going to happen in a mailer? Do you think we-

Jill DeWit:                            Yes.

Steven Butala:                   I’ll turn it back around on us. Do we prepare them for what’s really going to happen?

Jill DeWit:                            Yes.

Steven Butala:                   Because this is it, I think. This is an incredibly accurate recap. And I bet this is about a week old at least.

Jill DeWit:                            Right.

Steven Butala:                   So this is probably times eight, so hopefully he’s got four or five other $10,000 net properties in there, which is the type of mailer that happens to us.

Jill DeWit:                            That’s a good response for a 1500 unit mailer. That’s a good response of a week’s worth of activity. After three weeks it’s a lot more and he’s probably got a handful of deals now. So I think it’s great. And I do think that we do, that’s why we’re here. I feel like that’s my job. And that’s the whole thing about Land Academy. We are here to properly convey what this is. I don’t want to tell you this is easy. Everybody can do it. Piece of cake, whatever. No, I really want you to know what you’re getting into because the right people will come into this with the right attitude and the right expectations and kill it.

Steven Butala:                   Exactly.

Jill DeWit:                            I don’t want a lot of members that are just floundering. We have a really tight group of people doing really, really, really well.

Steven Butala:                   Exactly.

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

Steven Butala:                   Today’s topic, when to negotiate with land sellers? Never. This is the meat of the show.

Steven Butala:                   Do you really mean never? You wrote this topic.

Jill DeWit:                            I did.

Steven Butala:                   Usually I write the topics. Jill wrote this one.

Jill DeWit:                            Let me tell you my points.

Steven Butala:                   Do you mean never, never, never, or do you mean the vast majority of the time, never?

Jill DeWit:                            Well, if you had to ask me flat out negotiate or not negotiate, my answer would be do not negotiate.

Steven Butala:                   Me too.

Jill DeWit:                            So here’s what I mean. Here’s why. Number one, in this business, negotiating rarely works out in your favor. Why? It ends up being a time killer. You’re there negotiating with yourself, which is ridiculous, or you’re negotiating with them. They don’t even know what they’re asking for. They’re just trying to get more money out of the deal, which I understand. And if they’re in the mindset that they’re not serious about selling, they want to negotiate for the best price, I find that they’re thinking about it. They’re not really here to sell and I don’t want to waste my time.

Steven Butala:                   By now we all can understand why leveraging your time and leveraging money in your favor is so valuable. If you don’t, just go out and Google it because it’s a very basic Business 101 type thing where the further you get along in business, the more resources you have access to use, the more you can actually intelligently leverage your time and your resources and your money. So follow me on this. You send out, I’m going to make these numbers real round. These numbers are not real, but the concept’s real. You send out a thousand-unit mailer and you get after all the stuff, three properties back for every 300 you send out. With rural vacant land, you generally buy one property. So you send a thousand out and you’re staring at three properties that you think are pretty acceptable.

Steven Butala:                   You know in your soul one of them is great. In your soul, you know it: the way it’s signed, the property, how it looks, that you priced it right, everything’s perfect. Now you have these two others that are just kind of eating at you like, “Should I do these deals? They look good, they’re in the same kind of neighborhood, but if I only could get them for XYZ. I should go back to the seller and I should get these properties for a few thousand dollars less, then I could feel just as good about it as I do the first one.” That’s option one. Or you can send out 3000 letters instead of 1000 and get three properties that are just going to sleep like a baby at night knowing what’s going to happen with them. Which one would you rather do, and which one’s more efficient, and time efficient and money efficient?

Steven Butala:                   Here’s the math. I mean, a thousand mailers was going to cost you about $1,500 to send out start to finish, and you should be making between $5000 and $10,000 a property. So there’s just a no-brainer there. So now when you really do the math and the analysis about tripling your mailer size or quadrupling your mailer size to get those really low hanging fruit deals, it makes complete sense. So there’s lots of stuff that you have to unlearn when you start real estate, because your parents taught you or you’ve just been exposed to all … Negotiation, I mean, somebody should write a book about why negotiation is dumb. If you go to any bazaar anywhere out of this country or any place, it’s ingrained in their culture to negotiate prices and negotiate. And-

Jill DeWit:                            Some cultures, right.

Steven Butala:                   Like a bazaar or anywhere I think-

Jill DeWit:                            Well, a yard sale. Let’s just call it a spade. Say a yard sale.

Steven Butala:                   In some countries you’d go in and-

Jill DeWit:                            Craigslist.

Steven Butala:                   Even in a grocery store or an open air market, you’re really negotiating price for food.

Jill DeWit:                            Right. It really drives me nuts, by the way.

Steven Butala:                   I don’t think it’s efficient or fun, by the way.

Jill DeWit:                            Mm-hmm (affirmative), it’s so true. It’s like any used car if you’ve ever bought or sold a used car, we all know how it goes. You’re always going to mark it up because you know you’re going to mark it down. That person just has to feel like they’re getting something. And are they really? No, because you deliberately marked it up because you knew you were going to mark it town. So nobody’s really winning. Why don’t we just put it out there? But I love all your points and I agree with too, because I wrote down it’s just better to send out more mail and get more of those really, really good deals.

Jill DeWit:                            I do have one caveat to this whole conversation that I have done and I still kind of believe in. So you send out these offers. Some comes back and let’s just say it’s a wonderful, wonderful property. I mean, I was listening to somebody that day talk about a property that they bought, one of their first home runs that they paid $4,500 for it and they sold it for $45,000. So this is not crazy. So imagine that.

Steven Butala:                   This is a beautiful story.

Jill DeWit:                            Right, so thank you. So imagine that $4,500 property comes back and the person says to you, “I need $5,000 to pay off this credit card. That’s what’s holding me back.” And you say no, and you walk. Okay, so $4,500, you know it’s worth $45,000. Are you really going to let that $500 stand between you and this deal? For me, no. And have I done that? Yes. I have had people say, “I have a vet bill. I almost lost my cat.” I’m not kidding. This is true and-

Steven Butala:                   This is a real story?

Jill DeWit:                            It is a real story. “And I need to pay this bill if you can.” It was something little like, “If you could throw an extra $200 in here that would cover the bill, and I’ll sell it and it’s great.” And I’m like, well little things like that, $200? It got the deal done. And I know there’s plenty of skin in the game, I would do that. So that’s my, it’s not negotiating. It’s me going, can I afford to do that? And then yes. And is it going to get the deal done quickly? All the stars are in alignment on everything else? Yes. Am I in love with the property? Yes.

Steven Butala:                   I would file that under the heading repricing.

Jill DeWit:                            Okay, okay.

Steven Butala:                   Because here’s what that’s not. And Jill I completely agree with you, completely. That’s just a reprice based on a personal circumstance. And we built our whole real estate company, these companies on personal circumstances where they’re just going to sell the property because of a personal circumstance, not because they really wanted to sell it, they just don’t care. But negotiation is this: You send an offer, the number’s right on there. We’ll give you $4,500 for the property. They come back and say, “No, at $15,000.” And you go back and say, Oh man, I know it’s worth $45,000. How about $6,000? No, no, how about $12,000? How about $9000? How about $10,000? How about $9,500? And then everybody says something like this: “Are you happy?”

Steven Butala:                   “No. Are you happy?”

Steven Butala:                   “No. Good, we have a deal.” How many times have you heard that in your life? It’s the most ridiculous thing I’ve ever heard, ever.

Jill DeWit:                            I hate it.

Steven Butala:                   I can’t stand it.

Jill DeWit:                            It gives me goosebumps-

Steven Butala:                   Me too.

Jill DeWit:                            It makes me mad.

Steven Butala:                   Me too, Jill.

Jill DeWit:                            Oh, I hate that situation, yeah.

Steven Butala:                   And then it’s just like I got to spray myself off with Lysol because you just feel slimy and terrible. And they’re all unhappy because they didn’t necessarily get the-

Jill DeWit:                            Bad taste in your mouth.

Steven Butala:                   Yeah, and a lot of times the stuff just falls out anyway. Some people go dark.

Jill DeWit:                            That’s-

Steven Butala:                   There’s just a lot of issues that happen with negotiation, versus “I really need to pay my vet bill.” That’s a accurate, a goodwill repricing is exactly what I would call that.

Jill DeWit:                            By the way, the description you described just now is my number one point. It rarely works out when you do negotiate it, and it ends up being a whole waste of time back and forth. I’m doing a deal right now, a big large commercial land deal. The guy came in with this offer and he was expecting me to counter and you know what? I’m done with it. We’re making five times what we put into it, so I’m okay. He doesn’t know that. So I said okay. The only thing I asked for was I countered with a quicker closing time and a non-refundable deposit, I mean, those little things. And I think the buyer is so excited because I didn’t counter with a price. I’m like, “You know what? No, I’ll take it. Here’s what we’re going to do.” I’m sure he’s happy, I’m happy, and it’s not back and forth. That’s it.

Steven Butala:                   Here’s another thing, and I speak for all men, there’s a big chest beating scenario with getting a good price on stuff. I let go of that a lot of years ago. I had to be the guy in the room who paid the least amount for the car that they drive and all that, and it was just kind of this trophy that’s associated with getting a great financial deal and that’s over now, because you’re really looking at how much time you spend on it and why you’re hanging your hat on it, it’s all not good. What’s really good is a healthy repricing if it needs to happen.

Jill DeWit:                            I agree.

Steven Butala:                   Maybe the back and forth is maybe twice, but when it becomes this massive … If you’re negotiating to negotiate because that’s the culture you’re sitting in or that’s what you think has to happen, that’s not a good reason.

Jill DeWit:                            What I hear with our members and you never want to be in this situation, is when a seller says, “Can you do any better?” And with no number. You don’t want to be in that situation.

Steven Butala:                   I walk away from it.

Jill DeWit:                            And that happens a lot because you never know what they’re asking. You need to know-

Steven Butala:                   They don’t know.

Jill DeWit:                            Yeah, they may not know. You need to know. You need to say, “What’s it going to take to get the deal done?” Let them give you a number, and then you say yes or you say no. And often, most of the time I say no. I’m going to say no. Unless it’s like that little old lady at $200 is going to make it, I’ll say yes, but when it’s a $4,500 deal and he wants $25,000 I’ll say, “No, have a nice day.”

Steven Butala:                   Yeah, totally.

Jill DeWit:                            And I really mean it and I walk because you know what? I got more mail to open and more calls to take.

Steven Butala:                   Half the time they come back six months later and say okay.

Jill DeWit:                            Yeah, it’s true. It is really true.

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

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

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

Jill DeWit:                            It’s Friday.

Steven Butala:                   It is Friday. That felt pretty good.

Jill DeWit:                            Yeah, I’m glad.

Steven Butala:                   I like our stance on this.

Jill DeWit:                            I agree.

Steven Butala:                   You and I actually really agree on this topic.

Jill DeWit:                            We agree on a lot.

Steven Butala:                   It doesn’t feel like that.

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

Both:                                     We are Steve and Jill.

Steven Butala:                   Information-

Jill DeWit:                            And inspiration-

Steven Butala:                   To buy undervalued property.

 

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

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

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

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

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

Best Decisions You Can Make in Land Business (LA 1052)

Best Decisions You Can Make in Land Business (LA 1052)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Hi.

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

Jill DeWit:                            And Jill DeWitt, broadcasting from sunny Southern California.

Steven Butala:                   Today, Jill and I talk about the best decisions you can make in your land business. You were feverishly scribbling.

Jill DeWit:                            I do.

Steven Butala:                   Sometimes she scribbles before the show. Sometimes there’s just like eh.

Jill DeWit:                            There’s a lot of thought.

Steven Butala:                   It’s the Steve show.

Jill DeWit:                            Sometimes there’s no thought. Yep. And sometimes I just say, “Yeah, I’ll interview you.”

Steven Butala:                   Kidding aside, we’ve been doing this now almost 25 years. And I tell you, there’s two or three things that I… There’s some… I can save you a bunch of time, I think. And I’m interested. We never share each other’s opinions about what the show’s about. So let’s see if they’re the same.

Jill DeWit:                            Right. It’ll be fun. I have my ideas. You have yours, so we’ll see.

Steven Butala:                   Exactly. 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:                            Kevin shares, he’s one of our moderators. I went a whole year answering my own phone. You can do it, but you have to be available. People don’t like to leave voicemails. They want to talk to a person. The best decision I’ve made in this business-

Steven Butala:                   All right. Here we go.

Jill DeWit:                            … was getting an answering service. I don’t answer any calls. They all go through the answering service. Then I call back the ones I need to speak with. Huge time saver and this came from a… This was actually a response to a question that someone was putting in. They’re like, “Hey, how important is this kind of a thing?” And that was Kevin’s response, which of course, ties into our show today. I love it and I totally agree. And I know we’re on the same page on this. In the beginning, it’s good to get a feel for it. If you can answer your own calls, answer them all. If you have a missed call, call them back and call them back fast. If you have a day job and you can’t quite can’t do it, at all, then I would try to hire that out. Even if it’s somebody that you know, inexpensively, because it’s so important to get a voice on the other end when these people get your offers and they call back. After that, they might not take your call, lose interest, and you miss some stuff.

Steven Butala:                   It’s imperative. Excuse me, it’s imperative to answer your phone. What I love about Kevin’s statement here is that he did it for a year for himself. And then he made a decision because now he understands what goes on with these calls and the types of calls that come in and the concerns that the sellers have. So he spent a year collecting information, mentally, before he tasked himself to sub it out. And I think, even now, we just hired a new transaction coordinator, which was our original boots on the ground. He is in the process of answering these calls himself, which is tedious-

Jill DeWit:                            It’s eye-opening.

Steven Butala:                   Tedious. Eye-opening is a great way to describe it. Tedious and time consuming and, at first glance, it’s this is a waste of time but-

Jill DeWit:                            Valuable.

Steven Butala:                   It’s a real solid experience.

Jill DeWit:                            It is. You need to know where these guys are coming from. When I say these guys, the sellers.

Steven Butala:                   What you never want to do is let it go to voicemail.

Jill DeWit:                            Right.

Steven Butala:                   So even if you have a full time job and you don’t have the time to answer your phone during the day, then you then you need to get a… Correct me if I’m wrong here. Get somebody to answer your phone.

Jill DeWit:                            Right.

Steven Butala:                   Whether it’s a service or not.

Jill DeWit:                            The best voicemails are going to have missed calls. People are going to hang up. They’re not that interested. They don’t think you’re that interested. They may not even think that your business is that together, if you can’t answer your phone, number one. Number two, some of these sellers are not, they’re not savvy on the phone and they get turned off by voicemails. So that’s why it’s really important to come to those calls.

Steven Butala:                   Exactly. Today’s topic, the best decisions you can make in your land business. This is the meat of the show. Go ahead.

Jill DeWit:                            You want me to go first?

Steven Butala:                   Yeah, please.

Jill DeWit:                            Okay, so I put some time into this as I always do. And I thought of like three time savers that they’re not big. They’re not huge, the concepts, but they really do save you time. So number one, some of the decisions, get quality data. Spend the money. If you think you’re going to save some money in this business and buy a used list, or even worse yet, go to the county and spend six weeks trying to analyze it and scrub it and get it into a workable format yourself because you wanted to save $100 or $200, whatever it is, that’s not the best use. So one, a really good decision is spend a little money upfront. Get solid quality data to do this business.

Jill DeWit:                            My number two is what Kevin just talked about. Someone else answering the phones. Get a service when you can. You want it, like we were just talking about. You do want to get to know it and the answer the phone a bit in the beginning. Understand the sellers. It’ll help you to hire someone to fill that role. And/or even as you, if you hire a service, it’ll help you create a good script and a good checklist of questions. The information that you need to know as the calls come in. So when it gets to you, you’ll make a decision on who you want to call back and you’ll have everything that you need. So that’s why it’s valuable. Your time is valuable right there. And then number three, I would say one of the best decisions in your land business is figuring out quickly what are the simple and tedious tasks that you do. Let’s just say maybe something as a mail merge. That, or posting properties and sub it out and maybe it’s a VA. I think those are three great things that you could do. What about you?

Steven Butala:                   I have two big picture points to make. Whether you’re 20 years in this business or you’re just, this is the first time you’ve ever listened to this. This is the sentence you want to memorize and just say it to yourself over and over again until it’s a reality. Good acquisitions solve all problems.

Jill DeWit:                            That’s good.

Steven Butala:                   Jill and I do a lot of weekly consulting for our members. And the consulting seems to be either one, they’re just about ready to do a mailer and they want me to kind of look at it and price it and make sure the stuff, it’s going to work right. Or they’re trying to undo something. They’re having a problem.

Jill DeWit:                            Right.

Steven Butala:                   And I can, oh, I add this immediately what I say to myself and to them, “If you could go back and buy this property, would you buy it?” “Oh, no. Heck, no, I wouldn’t.” So good acquisitions solve all problems, whether it’s access or attribute or price. Usually it’s access or price that are causing slow sales.

Jill DeWit:                            Right.

Steven Butala:                   So especially in the beginning, you want to make sure that you’re buying the right property and you’re buying it super cheap. That’ll solve all the problems down the road.

Jill DeWit:                            So you’re saying make a good decision, right then.

Steven Butala:                   Yeah.

Jill DeWit:                            Okay.

Steven Butala:                   And then everybody that’s involved in your organization with you and if you’re brand new, it’s just you. But in my case, then sales gets stuck with property and they’re going to come back to you and all, like, “Why?” I would rather do half the properties that I think I should do, half the acquisitions that actually come in that I think we should do, I’d rather do that and not hear it from sales. And just make their life easier and just send more mail out.

Steven Butala:                   So that’s big picture number one. Good acquisitions solve all problems. Number two, the biggest mistake I’ve ever made in my career, which we don’t make anymore at all, is underestimating the power of marketing. If you’re not marketing right now. I’ll tell you people, again with consulting, they call us and they say, “I just can’t sell this property.” And I swear, every single time I ask this question, “Well, where’s it posted?” “On Zillow.” “Well, where’s it posted?” “On Craigslist.” “Is that it?” Just put Craigslist? Just Zillow? “Yeah.” Well, if you posted it everywhere, would it sell tomorrow? Probably. So you don’t need to pay me for consulting to find out why property’s not selling. It’s either not posted everywhere or you paid too much for it. You’re asking too much. That’s it. It’s as simple as that. That’s the whole business right there.

Steven Butala:                   Those are the two things that are, say, the best decisions you can possibly make. Buy great properties, super cheap, number one. And when you do buy it, post it everywhere. I mean, like in 50 Facebook groups that have to do with whatever that property is. If it’s good prepper property, prepper groups. If it’s good rural vacant property in Arizona, there’s tons of groups for that. And you should be adding places to post properties in your operation on a weekly basis. We just started posting property probably way too late on OfferUp. We’re getting back heavily into eBay and utilizing email resources right now. And it’s proving to be incredibly successful. I don’t know what else I could add to that.

Jill DeWit:                            So, yeah, I was going to say, so you’re saying is posting it everywhere. So your two best decisions are, one, make a good decision on the buy side. Number one, if it’s not a good decision, don’t buy it. And number two, utilize marketing.

Steven Butala:                   Yeah.

Jill DeWit:                            And the thing I was going to add about marketing, which is so valuable is you should always be posting it on all your regular places, anywhere. And there should be like 20, let’s just say. At least 20 places.

Steven Butala:                   At least 20.

Jill DeWit:                            I could rattle them off right now. And then you have, I’d say, making it your goal to find like five to 10 extra. Those five to 10 extra places would be like your prepper group or your fishing group or your hunting group or the rock climbing group-

Steven Butala:                   Tiny house.

Jill DeWit:                            Or a RV group or the tiny house group or whatever it is that you see as a special niche-

Steven Butala:                   Yeah. Off the grid.

Jill DeWit:                            … for that particular property, it should be there. But in all your regular places, maybe MLS, depending on the cost, probably, but all of your eBay, your website, LandPin, all the social media, everything like that. OfferUp, Marketplace, YouTube. Everywhere should have it. I’m on Instagram, maybe even Snapchat. I don’t know. But nothing’s crazy.

Steven Butala:                   Nothing’s crazy.

Jill DeWit:                            Nothing’s crazy. You just got to reach these people and there’s always something new around the corner.

Steven Butala:                   I mean, just to put a cap on that, too, you’re going generate some response. Just like you plan for the response that you’re going to generate from a mailer on the acquisition side, well, you’re going to generate a ton of response. I failed at this, too. You’re going to generate substantial response from posting this everywhere from a marketing standpoint. And again, if you’re not standing there with the catcher’s mitt, dealing with these responses, and converting them to sales, you might as well not market. You have to be conversion minded. And it all starts with marketing. In 2000 and what is it, between nine and 11, Jill and I went through a terrible, terrible downturn in our sales and we lost a lot of staff and really had to reorganize our whole company. It didn’t sink the ship, but we were bailing water for a year and it was all based on marketing.

Jill DeWit:                            I was going to say that. Okay. I was going to turn around and go, here, let’s talk about some… We talked about the best decisions. Let’s talk about some of our worst decisions. Seriously.

Steven Butala:                   Yeah. That is the worst decision I’ve ever made.

Jill DeWit:                            I got one. One bad decision that we made was, oh, let’s hide behind the name of the company and ignore the social media thing. Like we weren’t really trying to promote anything. We put our property out there for sale the same way we had always been doing. We didn’t really roll with the times and get on board with social media and that cost us. So that was one not good decision that we made. We recovered and I know a lot of people that didn’t recover. That’s what’s kind of sad. There are a lot of people that are in our space.

Steven Butala:                   Way more did not recover than did.

Jill DeWit:                            Exactly. And that’s what’s so interesting. I think why we get so many calls from years ago, I mean, we’re the only ones that are still around and they saved our letters. So what’s another not good decision that you can think of?

Steven Butala:                   Buying an office building.

Jill DeWit:                            Oh.

Steven Butala:                   I didn’t have to think for that. It’s way beyond the scope of what we’re talking about here. But-

Jill DeWit:                            But it’s good.

Steven Butala:                   I spent $2 million on an office building that… It just ended in me writing a very large check.

Jill DeWit:                            Yeah.

Steven Butala:                   Two large checks. One on the acquisition and one on the sale. And you know what? The whole time, what did we do yesterday was called the rental trap?

Jill DeWit:                            Mm-hmm (affirmative).

Steven Butala:                   I was in the commercial rental trap.

Jill DeWit:                            Yeah. As a landlord.

Steven Butala:                   Yeah. As an owner with tenants and stuff.

Jill DeWit:                            Exactly.

Steven Butala:                   So that was a terrible decision. It was way beyond the scope of our core business, which was buying and selling real estate. All these other companies we have, this one included. Land Academy is really centered around our core effort. House Academy. Yeah. That makes sense. ParcelFact. Yep. Makes sense. Offers to Owners. Sure. Vertical integration. Office building. No.

Jill DeWit:                            That’s good. No, you’re right. Some people get distracted by that. I’m glad we’re having this conversation. Especially when you’re getting started, you’re focusing on one property type, you send out these offers. There’s always going to be one that comes back or people go, “I don’t want to sell that, but I want to sell this.” And it might be an office building and you get all excited thinking, hey, there’s an office building cheap. Maybe I should get on that. Don’t do that. You know, it’s true.

Steven Butala:                   Unless that’s your business. I mean, if you’re in the business of buying inexpensive office buildings, cleaning them up, and selling them or leasing them out or you’re in commercial-

Jill DeWit:                            That’s my point.

Steven Butala:                   Yeah.

Jill DeWit:                            My point is stick with what you’re trying to do. Don’t get distracted by something shiny. If you’re flipping a lot of large acreage farmland or whatever. You have a niche there and an office building comes along, please don’t get distracted by that. It could take away from your work, other business. Or vice versa. You’re doing office buildings, don’t get distracted by this pretty island. You know what I mean? That will slow your business down. So these are good. I love it.

Steven Butala:                   All of our companies, every single one, without exception, are data-driven or they solve some solution that Jill and I have had issues with that are maybe a bottleneck in our actual core business. So all the sites I just reeled off solve some of those problems. We’re going to launch a site before the end of the year called The Car Academy, where it could be construed like, well, why are you guys going to buy and sell cars? That’s not real estate. Well, what it is is it’s utilizing data like we utilize to buy real estate, just for a different product type. Fortunately for us, we have resources and the time and the money to bring in car experts to make sure that we’re not making bad decisions on the buy side and consequently on the sell side. But it’s all data-driven. It’s all sending blind offers to people that have a specific car that’s hot in that market. And doing all the RGY data analysis in that zip code to see what’s hot and what’s there and are there too many Corollas in this? It’s all data-driven, so it’s beautiful is what it is. I mean, I’m really, really excited, right?

Jill DeWit:                            I know you are. Hey, by the way, this is Land Academy Show.

Steven Butala:                   Oh, sorry. Here we go. This is what she pointed to. The Land Academy Show.

Jill DeWit:                            That’s right. Land Academy. It’s just this little reminder.

Steven Butala:                   You know I’m going to get more mugs now that say stupid stuff.

Jill DeWit:                            I’ll change them out.

Steven Butala:                   Hey, we know your time’s valuable. Thanks for spending some of it with us today. Join us next time for the episode called When to Negotiate with Land Sellers. Never.

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

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

Jill DeWit:                            Boy, you’d never know you’re excited about that next venture that you’re working on. It’s hard to tell.

Steven Butala:                   It’s just like inside information.

Jill DeWit:                            I understand.

Steven Butala:                   That’s what I love about real estate.

Jill DeWit:                            I didn’t know there was more data. That’s just shocking to me, too.

Steven Butala:                   You can take a zip code-

Jill DeWit:                            More data for cars.

Steven Butala:                   Just like with houses in land, you can take a zip code, find out is there too much land? Is there not enough land? Are there too many houses? Not enough houses? Are they selling? Aren’t they selling. Just like cars. It’s the same thing, actually. In a lot of ways there’s more data.

Jill DeWit:                            That’s why I said. I didn’t know that, when you found that out, it’s amazing to me. Wherever you’re watching or wherever you are listening, please subscribe and rate us there.

Steve and Jill:                     We are Steve and Jill.

Steven Butala:                   Information.

Jill DeWit:                            And inspiration.

Steven Butala:                   To buy undervalued property.

 

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

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

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

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

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

The Rental Trap Defined (LA 1051)

The Rental Trap Defined (LA 1051)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Good day.

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 the rental trap defined.

Jill DeWit:                            Do you want to give the background on why we’re talking about this?

Steven Butala:                   The question that we should, the daily question is all about somebody who’s in the rental trap and trying to get out.

Jill DeWit:                            That’s going to set up the show. Okay. I didn’t know that.

Steven Butala:                   Have you ever paid rent? If you’ve ever paid too much rent, you know what the rental trap is, but we’ll talk all about it in a second and my suggestions on how to get out of it, like tomorrow.

Jill DeWit:                            Right. And as you can tell, this is all around someone talking about being an investor in our world and posting a question about being in the rental trap in our world.

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

Jill DeWit:                            And here it is. So Sean asked, “Bottom line is that I can’t make great money.”

Steven Butala:                   “The bottom line is that I make great money.”

Jill DeWit:                            Okay, “But I can’t afford to buy real estate in the city I work in. I’m stuck in the rental trap and it feels just like that a trap. I started looking to buying land and what it could do for me and I found Land Academy. I’m looking forward to starting on this land buying and selling business as soon as possible.”

Steven Butala:                   Excellent. Again, like I talked about, we’re actually filming the back, behind the scenes kind of about this podcast, and earlier Jill and I were talking about this and I said, “This is a perfect Land Academy member.”

Jill DeWit:                            Right.

Steven Butala:                   They’re doing well financially. They’re already having some success in their life, regardless of whether it’s a great job, or you own another company, but those types of people seem to be the superstars in our group.

Jill DeWit:                            Exactly.

Steven Butala:                   They’re really familiar with the nuts and bolts of how to run stuff and be successful, and they had what it takes or have what it takes to do something else. And now they’re applying all that, their personal style of how to do this with buying and selling real estate and they’re just killing it.

Jill DeWit:                            Well, and they’re simply just looking forward. They’re not just sitting there working their day job thinking, “Well, I guess this is it.” I mean, a lot of people that’s what they do. But to be sitting there taking a step back going, “All right, I’m actually doing okay. I need to be doing something else because I’m not getting ahead like I should. There’s more.”

Steven Butala:                   Right. So the rental trap, in my opinion, is this the meat of the show?

Jill DeWit:                            Go for it.

Steven Butala:                   This is the meat of the show. The rental trap, the technical definition of it is this. When you are renting and the percentage of your rent is, as a percent of your income, is more than 20%. That’s actually my recommendation. It should never be more than 20%. So how do you do this if you live in a very expensive city? Well, you have roommates. Or, “Oh, that’s great Steve, but I have a family and I have three kids and I can’t just go have roommates.” That’s why I say it’s really important to get rich before you have a family or any children.

Jill DeWit:                            Every time you say, “Well, that’s great Steve,” I’m sorry, that just makes me laugh.

Steven Butala:                   There’s a million ways you can get real creative with this rental trap thing. The good news about renting is that you can get out of it as soon as your lease ends. Find some place cheaper. Find a different city to live in. If you do have kids, all kidding aside, if you do have kids and a spouse and you’re already on your way and you’re in this rental trap situation, you have a lot of choices.

Jill DeWit:                            Right. I want to talk about this a little bit more because I feel like there’s a lot of people in our world that are listening right now that are feeling like, “All of this is great, but I could never do that.” And this is one of the reasons. I’m in a city where I have a good job, check. I’ve got a wife and kids, check. I can pay all my bills, check, but I just can’t get ahead. I’ve got to do something else. And I understand that. And you feel like, especially, I know there’s some cities that you feel like, “I will never be able to buy here.” And that’s sad. So something’s got to give. We did it. You know what’s interesting? We’ve taken steps backwards to take steps forward, and I don’t know why everyone doesn’t realize that that’s an option. And it might not be pretty, and it might not be fun, but you know what? I’m here to tell you, the right wife and kids will stay there with you, or the right husband, and whatever it is, girlfriend, boyfriend, whatever. None of it’s crazy. Do you see where I’m going with this?

Steven Butala:                   Yeah.

Jill DeWit:                            Okay.

Steven Butala:                   Yeah. I mean, I can talk about this for days.

Jill DeWit:                            Well, I’m using us as an example to you. I mean we could talk about it. We made some major changes.

Steven Butala:                   It comes down to this, and this is maybe more of a man thing than a woman thing, you got to look at yourself in the mirror and decide what you want, and decide what your limits are because we all have limits, and then figure that all out. We happen to live in a neighborhood, Jill and I, where there are no people here, none of our friends, not a single person, I don’t know a single person or couple who don’t own their own business because of how much it costs to live here. And because of Los Angeles and how Los Angeles is all set up, there are outlying places not outlying, but right in the city where, if you’re an engineer and you own a, let’s say, a machine shop for the aerospace industry, it’s less than a 15 minute drive for you if you live where we live, so run your business and run your life that way.

Steven Butala:                   So at some point, that engineer I just mentioned, did the same thing I did. At some point, looked in the mirror and said, “This is what I want. It’s going to happen and I’m going to put all the other pieces in place in my life,” like who you choose to spend your life with and the kids and all that stuff, where the kids are going to go to school. And then you just build it from there. So do you have to build an empire? No. Jill and I have a very good friend who’s in the military who said this, “There’s no way I can or ever will live where you guys live and I won’t even rent there. That’s why I’m moving back to Scottsdale.” And that is the kind of conversation that … He’s about our age and the girl that he’s with is adamantly against it, so they’re probably not going to be together forever. And I think that’s an incredibly intelligent and astute, and the guy knows himself and he’s not timid about it. And he said, “This just isn’t for me.”.

Jill DeWit:                            And that’s fair.

Steven Butala:                   That’s the conversation you have to have, rental trap or not. And let me reiterate, you should never ever pay more than 20%, as a percentage of your whole revenue, in rent or mortgage or household stuff. And that, I think, conservatively includes everything. Taxes, principal interest, taxes, insurance if you’re owning, if you’re renting all of it, plus utilities and all of it.

Jill DeWit:                            Didn’t that used to be a thing? I think it seems like when you used to apply for a rental thing that there was a percentage that every-

Steven Butala:                   It is 20.

Jill DeWit:                            Is it 20?

Steven Butala:                   Yeah.

Jill DeWit:                            Okay. That property managers would look at and landlords would look at and say, “Based on what you make, this is what you can afford and I’m not getting even going to rent to you if you can’t.”

Steven Butala:                   And more importantly, that’s what lenders look at. So when they go to give you a mortgage …

Jill DeWit:                            And see what your, yeah, that’s true. See where your debt ratio is to your income and all of that.

Steven Butala:                   Here’s more good news. If you have an internet job, like all of us have an internet job, where you’re not required to be somewhere every day, you have just tons and tons of options. Your choices are limitless about where you can live. Jill just did a bunch of research on, for different projects, satellite internet.

Jill DeWit:                            Yes.

Steven Butala:                   And you can get satellite internet connection for an RV if you have to while you’re building up your land business or whatever.

Jill DeWit:                            Exactly.

Steven Butala:                   When I was a kid, I lived in a terrible, terrible house that was like untenable with 10 guys and I think I paid my rent was like $85.

Jill DeWit:                            This is college.

Steven Butala:                   Right after that.

Jill DeWit:                            Okay. Oh, after college, okay.

Steven Butala:                   It was $85 and it included everything for a room with a guy in it. And the whole house was like Animal House.

Jill DeWit:                            You shard a room?

Steven Butala:                   Yeah.

Jill DeWit:                            How many people were in there.

Steven Butala:                   That was one of the reasons I got ahead. You know what? I got a full commission job when this is going on as a commercial real estate broker. And that’s all I could afford. I had a blast.

Jill DeWit:                            That’s funny. So you know what? This ties into this. I’m like, okay, so you’re in the rental trap. Let’s just say you think you’re in the rental trap. You have two choices. Number one, you either cut costs and like what you just described, that’s one way, or you make more money. I mean what about? Think about the people in our world that probably thought they were in a rental trap. They are in our community right now. And so what did they do? They saved up enough to get going and it may have taken them six months or a year. I know these people that have saved up, and then they spent two hours or whatever it is, got up early before they went to work and they stayed up late when they got home. And they were finding ways and using this to make extra money until they could make some different decisions. I mean, what? You don’t like that idea?

Steven Butala:                   No. That’s Jill’s way of addressing this. And Jill’s entire existence is, her problem-solving scenario is to make more money. If she wants a new diamond ring or a new dress, she’s going to make more money to pay for it.

Jill DeWit:                            That’s kind of how I do it. I’ll work harder.

Steven Butala:                   And she’s been like that since the day I met her. And my answer is to get to zero to cut costs. Cut costs, so we have less responsibility, so you can spend more time on the stuff that really matters and then really pull the stops out after it’s all happening and consistent.

Jill DeWit:                            Isn’t that funny how we are always so different? You’re like, “Well, you don’t need to drive that car.” And I’m like, “Well, I just need to work a little harder to have that car. I don’t see what the problem is.” That is so funny. Do you really need to eat today? I kind of do need to eat today and I kind of want to eat there today.

Steven Butala:                   When I hear rental trap, I hear, I’m living beyond my means. And that really concerns me a lot because now that’s not a real estate/financial issue. That’s like a in-your-head problem, like you need to have certain things in life or you’re not going to be happy. And that’s so psychiatrist. You need to talk to a psychiatrist about that.

Jill DeWit:                            For like three years. Oh, my gosh. That’s good.

Steven Butala:                   I’m glad we’re talking about this.

Jill DeWit:                            I think it’s funny how it didn’t even dawn on me until you brought it up how different we really are. Because you are the cut it back, cut it back, don’t need it, don’t worry about it, cut it back. And I’m like, “No, I can just work extra hard to get that.” And if we want to live there, okay, here’s what we’re going to do. And we’re going to make it happen. Because, for me, it has worked out every time. I work a little bit harder. I get the ball rolling and it all works out.

Steven Butala:                   You know what? For me, mine’s worked out every single time too.

Jill DeWit:                            Good.

Steven Butala:                   Seriously. I had to clear my schedule and cleared my financial situation, get it as close to zero as possible, and then really go at it, whatever it is. Make sure it’s scalable, make sure there’s a big huge prize at the end.

Jill DeWit:                            So I hear what we’re saying. Nobody’s right or wrong, they’re just different.

Steven Butala:                   Yup.

Jill DeWit:                            Okay. I can accept that.

Steven Butala:                   Exactly right. And here we are together.

Jill DeWit:                            Exactly.

Steven Butala:                   I mean here we are in this situation together, however many years later, and it all worked. And you applied yours for you and I applied, and we’re all here.

Jill DeWit:                            Well, and the whole big thing is our goals are the same, we just go about it differently.

Steven Butala:                   Yeah.

Jill DeWit:                            Done.

Steven Butala:                   What do you call it? The same big picture.

Jill DeWit:                            Yup. Same end goal.

Steven Butala:                   You and I have the same end goal, but two different ways of going about it.

Jill DeWit:                            Exactly. Yeah. Including our day-to-day.

Steven Butala:                   Hey, we know your time’s valuable. Thanks for spending some of it with us today. Join us next time for an episode called the best decisions you can make in your land business.

Jill DeWit:                            And we answer your questions. Plus in our online community, found it, landinvestors.com. It is free.

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

Jill DeWit:                            All right.

Steven Butala:                   It’s always fun to talk about our differences in a healthy, intelligent, and sometimes slightly romantic way. If we were all the same, or you were just following me around, or I was just following you around, it would be silly.

Jill DeWit:                            True.

Steven Butala:                   Or if somebody was lighting a candle before we went to bed.

Jill DeWit:                            Wouldn’t it be boring?

Steven Butala:                   Yeah.

Jill DeWit:                            I would probably be so boring. I had a boyfriend one time, this is true. Not really a boyfriend. It was just a guy that I dated. We didn’t get this far, obviously, because every single thing he was way too agreeable. I couldn’t take it. The guy had no opinion. I mean, about anything, about where we’re going to go eat, what we’re going to do. Everything was yes and sure, that sounds great, and oh, that sounds all peachy, but that got boring really, really fast.

Steven Butala:                   We don’t have an agreeable problem between us.

Jill DeWit:                            No, we really don’t. Some days I wish I had that, a little bit of that. Just kidding. I’m just kidding. Wherever you’re watching or wherever you’re listening, please subscribe and rate us there. We are Steve and Jill.

Steven Butala:                   We are Steve and Jill. Information.

Jill DeWit:                            And inspiration.

Steven Butala:                   To buy undervalued property.

 

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

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

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

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

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