Now Other Industry Leaders See the Value in Land (LA 1233)

Now Other Industry Leaders See the Value in Land (LA 1233)

Transcript:

Steven Butala:

Steve and Jill here.

Jill DeWit:

Happy Friday.

Steven Butala:

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

Jill DeWit:

And Jill DeWit, broadcasting from sunny Southern California.

Steven Butala:

Today, Jill and I talk about how other industry leaders see the value in buying land now.

Jill DeWit:

It’s funny how its now, now. Why is it now?

Steven Butala:

This is a very slippery slope, dangerous. I know that this is true, and I saw it happen through the last recession. And I think that buying a strip mall and making some money on it seems easy. It certainly seems easy to the tenants. So people in other industries think that buying and selling real estate is pretty simple. Those of us in it, I think, know how difficult it is to actually buy it and sell it. And buying land, the people that think that this is easy don’t take into consideration, it’s real easy to be a tenant in a building, maybe a 10-unit building, let’s say a strip mall, and pay all this rent and sit and have this thought, every time anybody writes a rent check they say, what if I didn’t have to write this rent check?

Steven Butala:

All these people are making all this money that own this building. They’re not doing anything. They don’t have to get up in the morning and I have to get up every morning and do all this stuff. If I didn’t have this rent check or if I was them, I would be doing great. That’s just not how it works.

Jill DeWit:

Isn’t that funny.

Steven Butala:

People that own these buildings probably own it for 35, 40 years. So there’s a lot of stuff involved. So I can’t wait to hear what you say about this but because I know you did some research on this, other industry leaders just saying now’s a good time to buy a hotel. It just cracks me up.

Jill DeWit:

Or just land, its interest. So that’s where I’m going and we’ll talk about it. It’s good.

Steven Butala:

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

Jill DeWit:

Lauren says, hello. I’ve been buying and selling all kinds of products online for a few years and it’s never done well enough to pay all my bills. I need to continue to have a job. I’ve researched land for a long time and this seems like it really can work. What advice for you do you have for someone like me? Thanks a lot.

Jill DeWit:

Yes it can work. And everyone that you’re writing to in this community, I’m sure there’s a lot I didn’t look to where they’re like a lot of comments. Okay, good. So actually can. And one of the main reasons is, what you’re, it’s not like buying something that you sell for markup for $1 or $2. We’re buying things we sell up for markup for hundreds and thousands of dollars. So it’s a whole, it can pay your rent and it can replace your job. But what should you be doing that’s, I love that you’re excited about it, looking at it like as an opportunity.

Jill DeWit:

I want you to really spend some time researching it cause it isn’t for everyone. And like Steve was just saying too, there are a lot of moving parts and it sounds like, God, this guy who owns this building owns this land, just puts, it sounds like you buy a piece of dirt, you write a check, big deal. You’d make one deed, you send it to somebody, they put a stamp on it and now you take a picture of five, I don’t know, and put it on Craigslist and walk away. There’s more to it than that. So I want you to do a lot of research. It might be weeks for you and months for somebody else and then even before you pull the trigger, I might say test the water a little bit. You know buy a piece of property and copy somebody and sell it and see how it goes. What do you want to add?

Steven Butala:

Well, I think buying and selling stuff on online, I’ve done that in the past too, with the limited success, you can do it really efficiently. You just have to really cost control your operation and get used to smaller margins if you are drop shipping stuff. The other way is to brand yourself and Joe and I have done a little bit of that although it doesn’t really apply to our success in real estate. I don’t think. If you can brand yourself and then whatever you’re buying and selling, make yourself an expert about it and become an expert so that you’re not, you don’t have to fib when you’re telling the truth about why you’re an expert at buying, selling land it’s easy for us. And we branded ourselves that way or it’s inadvertently happened for whatever reason maybe cause we have 1,233 shows.

Steven Butala:

That’s number two and then number three I think is you’re going to see incredible profit margins when you buy and sell land. Just when you average everything out and by incredible, I mean Mark it up 100% pretty regularly if you know double your money, if not more. But it’s a lot more work and there’s a lot more people involved and things go wrong all the time. Not all of the time things go wrong sometimes you have to recover from it. But if you’re buying again at 30 cent flashlight from China and reselling it for a $1.50 and you’re the expert in flashlights, it’s not such a bad gig.

Jill DeWit:

That’s true.

Steven Butala:

Today’s topic now, other industry leaders or sorry, how other industry leaders see the value in land? This is the meat of the show.

Jill DeWit:

You were right the first time. It’s now other industry leaders are seeing the value in land. Okay. This is sparked from an article that I read the other day and I pulled it up here cause I thought it was very interesting. So the article is about the Starwood CEO, Barry Sternlicht and what we’re buying now and he’s on the offense. I’m like, Hey, so are we, so was our whole community. And why is it taken now to figure this stuff out? And one of the things that just hit me first, he goes in and talks in great detail about, it’s a really good article. It’s dated April 22nd if you have time to check it out. And I’m trying to figure out was it was written on Biz Now, is the site where I get these updates. Well, I thought it was so interesting is, he’s talking about his company and how they’re really busy right now and when you think everybody’s panicking and holding back, he’s like, no, now’s the time to scoop up some good deals.

Jill DeWit:

But they’re looking at our hotels, which primarily, cause that’s what they do. That’s what they know. And he told the story about, he just recently traveled somewhere to buy a hotel and he was all set to pull the trigger because he’s not going to shrink away. He’s going, this is his business and it’s going to work. They’re making some changes. He also talked about changes they’re going to make to their industry to make it work and cut costs. But it was funny, he looked at this hotel and he said, I was about ready to buy it, but the people had just got their payment protection plan. And because they got in that infusion of money, they decided not to sell and his response is okay, moving on and just went and looked at something else.

Jill DeWit:

So the part that of the articles, I kept reading the article that was already interesting to me, but then he said this, historically, the nation has come out of these great falls. My view is when you’re buying real estate assets, well below the cost of replacement in a country like the United States, that’s kind of what we do. He goes on to say with land in some cases at no value I don’t know where he got that, then you’re going to make money because this nation is going to grow. So I don’t agree with the land and no value part. But what I liked was he’s now another person like us and another industry leader that I don’t think he really considered land for real. You know this seriously and now it’s tripping his radar, has been really doing this since you ’90s and me with you for 11 years.

Steven Butala:

I mean and the whole point of the article and there’s many, many like that is that now its time to buy undervalued assets. Wherever you see the value and wherever your expertise is. For us it happens to be buying and reselling. For him it happens to be taking value that in an asset that not a lot of people see value in. Maybe they see zero in it and maybe stock buying a bunch of dirt real cheap to buy, to put hotels on or to sell it to people who see the value like it is in this industry. When you have a special use property type like hotels, it’s not hard to do that by doing zoning. But by looking at specifically zoned properties and selling on an offer campaign.

Jill DeWit:

It’s interesting, the article didn’t say if he’s looking at buying the land to put a hotel on or just buying land to resell the land. I took it as buying the land to resell the land, but so I’m not sure what he’s looking at.

Steven Butala:

Well, he’s a Starwood executive. I’m sure his soul is hotels first.

Jill DeWit:

Right.

Steven Butala:

And if you don’t have to make a payment on the physical, Stuart was dramatically a manager of hotels, as I understand it, or math or leasing the assets, they don’t own the assets primarily. So now he’s looking at the same thing I said earlier, wow, what if I didn’t have to make this lease payment? The point is he’s looking at it as an opportunity.

Jill DeWit:

You know its funny to share some personal stuff here. I see this as diversifying because he made a comment too in the article that he’s also looking at stocks in some major companies because the prices now he’s like, he thinks we’ll never see that again. You know like some major brand name companies that aren’t going to go anywhere. And I know you talk about this a lot just with your friends. I’ve heard you guys have these discussions about things like that. And so what I was going to share is, we are personally doing this. We all know and we’re very vocal that we’ve had other companies along the way. And even before we even did Land Academy but our constant was land. No matter what we were doing, we were always buying and selling land alongside other things cause it always kept food on the table and it’s always been a great business but it’s good to diversify and have other things.

Steven Butala:

Industry leaders see huge opportunity in their lines of business and all comes back to land. Everything does in these types of times.

Jill DeWit:

I agree. Happy you could join us today. Every Monday, Wednesday, and Friday. You can find this right here on the Land Academy Show. Tuesdays and Thursdays, we are on the House Academy Show.

Steven Butala:

Next week, join us for another interesting episode on the Land Academy Show. You are not alone in your real estate ambition.

Jill DeWit:

That article, it just sometimes I feel like the light bulb goes off and I’m like, why does it take this for the light bulb to go off to some people or maybe it didn’t go off, but maybe for the person writing the article for them there. I don’t know. It got them excited. It’s what we’ve all known this forever. The Land Academy Show remains commercial free for you, our low listener, so wherever you’re watching or wherever you’re listening, please subscribe and 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.

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.

Real Time Info on Where to Invest during Virus Times (LA 1231)

Real Time Info on Where to Invest during Virus Times (LA 1231)

Transcript:

Steven Butala:

Steve and Jill here.

Jill DeWit:

Hello.

Steven Butala:

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

Jill DeWit:

And I’m Jill Dewit broadcasting from sunny Southern California.

Steven Butala:

Today. Jill and I talk about real time info and where… I’ll try it again. Real time info on where to invest during virus times.

Jill DeWit:

Where to get it.

Steven Butala:

Where to get it.

Jill DeWit:

How to get it, how to dissect it, how to understand it. What else?

Steven Butala:

How to make money and what markets to buy real estate and step by step procedures on, hey, it now is the time to buy property in Compton. Why? Here’s all the proof and the support and the whole thing. Now’s the time to buy property in West Phoenix. Why? Here’s how I get the data. Here’s how you analyze it and why. Why? Because it all happened in 2010 exactly like this and it’s going to repeat itself.

Jill DeWit:

Why don’t you just say that? Why did you give this goofy title that we’re all kind of trying to figure out what this is? Real time info on where to invest during virus times. Okay.

Steven Butala:

Guess who doesn’t write any titles at all?

Jill DeWit:

I do. You know why? Because you don’t like my titles. Let’s call a spade, a spade. If I write them, you don’t like them.

Steven Butala:

How to catch a flock of doves and how it applies to your pretty sweet, wonderful real estate.

Jill DeWit:

No. Okay. Here’s how I would have written this title. You are not alone in your lack of real time data.

Steven Butala:

That’s actually not bad.

Jill DeWit:

Thank you. Someone said something to me the other night. Derek came up with all the, you are not alone and-

Steven Butala:

They’re making fun of us.

Jill DeWit:

Oh it was good. I can’t remember what it was. I don’t know. Making normal pour drinks. It was something like that. Like mister heavy hand over here.

Steven Butala:

I remember that.

Jill DeWit:

Yeah.

Steven Butala:

It was funny, actually.

Jill DeWit:

Thank you.

Steven Butala:

It will all come to me in a minute.

Jill DeWit:

Okay.

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:

Andy wrote, “Hey you all, I’m relatively new to the game. I sent a few mailers to Arizona and New Mexico, but I’m hoping to branch out a bit here. I’ve learned about abstract states and now I’ve been reading about certain states that require trying to close a deal. Am I correct in assuming our land deals count as real estate closings and therefore 20 plus states will require this? Any guidelines on states that have costs or requirements for closing deals that a newbie should look out for? Any advice is appreciated. Thanks.”

Steven Butala:

This is a very popular topic and some incredibly intelligent reply. The reply string on this is huge, but I’ll summarize it. Yes. Your land deal is a real estate deal. It’s just as much real estate as a skyscraper in New York and the closing process is the same. It’s exactly the same. Someone buys it and they were provided the money, they it into escrow. The seller gets the money through escrow and it gets deeded and recorded at the county. There’s a lot of other due diligence and some other stuff that goes on, feasibility studies and all kinds of things, but the basic transaction is exactly the same. Exactly.

Steven Butala:

There are three ways to close a real estate deal. Number one, self close. You create the deed in Microsoft Word, you hand the deed and a blue pen-

Jill DeWit:

This is when you don’t use a title.

Steven Butala:

… to the buyer. The buyer signs it.

Jill DeWit:

You’re doing it yourself.

Steven Butala:

The buyer signs it, you hand them compensation in the form of usually a cashier’s check.

Jill DeWit:

Seller signs it and the buyer.

Steven Butala:

Yeah.

Jill DeWit:

Okay, thank you.

Steven Butala:

Thank you. Good.

Jill DeWit:

You’re welcome.

Steven Butala:

And then you get in your car because you’re the new owner. The seller now has a cashier’s check. They get into the car, go and deposit it at the bank. You get in the car as a new owner and go to the county and have it recorded. It gets stamped with a book and page number, transaction’s done. That’s the easiest and most simple way. The vast majority of people on the planet don’t believe you can do this. They think you need a real estate agent and all kinds of stuff, but everybody in this group knows that-

Jill DeWit:

Or you need to be licensed and you don’t.

Steven Butala:

Yeah. Jill and I built multi bazillion dollar careers on doing deals like this. So that’s self-close. The second way is escrow close where you do all what I just said, except it’s handled by an unrelated third party called an escrow forward slash title agent. And they act as the middle person, they collect the money, they do the paperwork, all for fees, they file the deed at the recorder in the county, and they just generally manage all this stuff. And 99.9% of the time, issue a title insurance policy guaranteeing the things that they say in that title policy about the chain of title and everything else. It’s title insurance. In case if someone down the road finds out, you don’t really own that at all, which almost never happens. And if it does happen, they’re going to tell you, we don’t guarantee that. That’s title policy close.

Steven Butala:

The third way, and the final way is to do it with a lawyer. The lawyer does everything that title agent did. Every single thing. It’s exactly the same type of transaction.

Jill DeWit:

There are two states that require it. It’s not 20.

Steven Butala:

It’s not 20. Maybe one or two. Now can you use a lawyer to close a real estate deal in any state? Yes. This has been where the confusion comes in. It’s not like that’s an escrow state, that’s a lawyer state and that’s self-close state. You can self-close in almost every single state. You can use a title agent in just about every single state. There are one or two states that require you to use a lawyer. New York is one of them. And I even heard that and you can still self-close.

Jill DeWit:

Cool.

Steven Butala:

It’s lenders that drive all this. It’s the lenders that say, “Hey, we only do lawyer deals because that’s how we’re going to lend against it.” If you’re paying cash, you can do what you want and that goes for everything in life.

Jill DeWit:

Cool. And when Steven said driving with the self-close, it’s really easy. I just want to add there. You’re not driving to the county. You’re mailing to the county or you can even do online recording. It’s really when you do self-closing, it’s getting easier and easier and better and better. And I’m excited because now some states you can have online notarizing, you can wire money, you don’t even have to do the cashier’s check. It’s so nice. And I’m hoping that’s one of the positive things that comes out of this whole virus.

Steven Butala:

This kind of question is fantastic for the Land Academy House Academy group. It’s these kinds of questions that Jill and I, because we’re so deeply vested into this business, lifelong career wise, that we just don’t see it anymore. We’re like blind to it. And so new people have questions like this and they need to be addressed. We were new too once.

Steven Butala:

This is a forum and a reason to be in this group so you can get that stuff addressed quickly, simply, direct answers just like I did and get it done.

Steven Butala:

Today’s topic, real time information on where to invest during these virus times. This is the meat of the show. I don’t think it’s so much that the title is bad. It’s just how I can’t read it.

Jill DeWit:

Okay.

Steven Butala:

It’s my punctuation.

Jill DeWit:

Oh, okay. Got it. Okay. Your brain is wired a little differently though too. Let’s just be honest and that’s okay. There’s nothing wrong with that. You’re a girl… I’m a girl, you’re a guy.

Steven Butala:

You’re a girl. That’s a Freudian slip.

Jill DeWit:

Sometimes you’re a girl, sometimes I’m the guy.

Steven Butala:

What she meant to say was I wish you were a girl.

Jill DeWit:

Sometimes I’m the girl. Sometimes you’re the guy. Could you imagine?

Steven Butala:

Where did that just go?

Jill DeWit:

Anyway.

Steven Butala:

Somebody asked me during the Thursday webinar that we have with our members, “Hey Jack, where do you get real time information so you can make…” I’m sure they have some type of stock market experience where you can see what the market did today. And so they said, “Where can you get real time information about what’s happening in market X right now? Did it go up or down? Did the listing prices go up or down today?” My answer during the webinar was, “I don’t know.”

Steven Butala:

And then I got to thinking about it because I’m a data freak like that and wouldn’t it be great to have realtime slash daily market movement. And so then I started to look into it and there are some places that have, nothing like the stock market charts that you see, nothing like that. In fact, real estate data for whatever reason is very monthly. So usually on the 10th of the month you get the previous month’s data, 10th or the 15th depending on how it’s reported. And you that through realtor.com for free or redfin.com. They have great data downloads into Excel, knock yourself out type data.

Steven Butala:

But it’s nothing like real time. So I started down the path of providing one and it’s not going to be real time per zip code or anything like that, but it’s going to make you aware of what’s happening in certain markets before the rest of the world will. And so I’m working on it.

Jill DeWit:

Where would we be seeing this data, sir?

Steven Butala:

How long were you planning that?

Jill DeWit:

Not at all. It just came right out. Because honestly this is kind of new to me.

Steven Butala:

Jill and I are going to talk about it two shows from now, on Friday. But we are watching the Land Academy show.

Jill DeWit:

Oh that’s where you’re going to be presenting this data.

Steven Butala:

That’s a lot of it. Yeah.

Jill DeWit:

Oh I thought this was a website or something you’re creating. I thought this is a whole nother… Because this is normally how he rolls. Hey there’s a new company coming up. It’s showing up on Friday. Really? Yeah. I’ve been working on it for three months. Really? Yeah. Remember that tech guy I got back. Yeah, it’s great. I got six more in the can watch. What the heck.

Steven Butala:

It’s really true.

Jill DeWit:

Hey, can your marketing guys take this on? Oh well a notice would have been nice but okay we’ll figure it out.

Steven Butala:

I wish I could deny that.

Jill DeWit:

Thank you. That’s what I got. That’s why I was confused. That’s real. The struggle is real.

Steven Butala:

Especially now because we’re all stuck… All of us are at home. I have more time to think about stuff and research.

Jill DeWit:

Oh man. Yep.

Steven Butala:

So we’re going to roll, again it’s not going to be a stock chart. We’re going to roll in data and real time information into the Jack and Jill show.

Jill DeWit:

Oh. Okay. Cool. Good. Well I look forward to that. What else are we going to roll into that?

Steven Butala:

Jill stuff.

Jill DeWit:

Oh good.

Steven Butala:

We’ll talk about that on Friday.

Jill DeWit:

Okay. Thank you. Happy you could join us today. Every Monday, Wednesday, and Friday, you can find this right here on the Land Academy show. Tuesdays and Thursdays we are on the House Academy show.

Steven Butala:

Tomorrow the episode on the House Academy show is called, Will we see a 25 to 45% house devaluation in these virus times? You’re not alone in your real estate ambition. Spoiler alert. Yes.

Jill DeWit:

Well, we’re already seeing it.

Steven Butala:

Yeah.

Jill DeWit:

All ready. I’m seeing some price drop, price drop, back on market, price drop. Seeing a lot of that with houses. I’m excited for it.

Steven Butala:

I’m excited too.

Jill DeWit:

The Land Academy show remains commercial free for you, our loyal listener. So wherever you’re watching, wherever you’re listening, please subscribe and rate us there.

Jill DeWit:

We are Steve and Jill.

Steven Butala:

Information.

Jill DeWit:

And inspiration.

Steven Butala:

To buy undervalued property.

 

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

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

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

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

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

What Does the Sales Person of the Future Look Like (LA 1229)

What Does the Sales Person of the Future Look Like (LA 1229)

Transcript:

Steven Butala:

Steve and Jill here.

Jill DeWit:

Hello.

Steven Butala:

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

Jill DeWit:

And I’m Jill Dewit fighting back a cough and broadcasting from sunny Southern California.

Steven Butala:

Jill, fighting back a cough.

Jill DeWit:

I got to say, isn’t it kind of funny that nowadays with the Corona issue… I don’t know what to call it right now. I’ve heard so many funny sayings. But anyway, I’m afraid to cough or sneeze or do anything in public because I’m-

Steven Butala:

Or breathe.

Jill DeWit:

Or breathe too loud in public.

Steven Butala:

Breath in or out.

Jill DeWit:

Exactly. You can look at people through protective lens, but heaven forbid you touch, breathe, sneeze, blow air, fart. I don’t know. Just kidding.

Steven Butala:

Never heard you say that in the 10 years I’ve known you.

Jill DeWit:

Because girls don’t do that.

Steven Butala:

I know.

Jill DeWit:

Anyway, that’s why I was holding back a cough. I’m like panicking. We were somewhere the other day in a store with our child and he sneezed and I thought everybody was just, it was like Costco, and 20 heads turned. I couldn’t get out the wipes fast enough.

Steven Butala:

Yeah. Used to be like smoking. It seems like overnight you could smoke, you could light up a cigarette in a grocery store, wouldn’t matter, and then overnight it just seemed like, wow, you’re the devil.

Jill DeWit:

Yeah. You’re smoking. Yeah. Isn’t that true? My head pops up now if I’m on the pier and I smell smoke, I’m like, all right, who’s doing it? Who is it?

Steven Butala:

Yep. You’re going to hell.

Jill DeWit:

That’s right. And now it’s a sneeze or a cough.

Steven Butala:

I can think of a few things that people do a lot that should be classified as the smoking coughing thing.

Jill DeWit:

I love it. What is it?

Steven Butala:

We will lose 90% of our listeners. We will lose all seven listeners that we have on this show.

Jill DeWit:

Can you say it in code.

Steven Butala:

No.

Jill DeWit:

Okay. All right.

Steven Butala:

And everybody knows what I’m talking about. There are things that people do that are just ridiculous, but they seem to be okay right now. And it’s all the decade we’re in. It’s stuff that’s just okay and acceptable.

Jill DeWit:

I don’t know, so if you know, please share it with me later. You think you know people.

Steven Butala:

Every single one of them is covered multiple times in the Seinfeld sitcom.

Jill DeWit:

That’s it?

Steven Butala:

If you’ve ever been disgusted by somebody that you went on a date with and it’s totally okay for some reason, but you’re like, “Nope, it’s not okay for you to clip your toenails like that in a state park.”

Jill DeWit:

Okay.

Steven Butala:

Or you know, this is the beach and I know that you think you look good, but no, you don’t.

Jill DeWit:

Oh, I do know that one.

Steven Butala:

Stuff like that.

Jill DeWit:

Yeah, that one’s true. I am familiar with that. You know what’s funny? I missed the Seinfeld wave, isn’t that weird?

Steven Butala:

No, you didn’t. It’s totally okay.

Jill DeWit:

All right. I’ve seen it obviously and seen many of them, but not all of them.

Steven Butala:

The thing is about Seinfeld, it’s just constant references to things and so that’s the value in it. But sitting there watching this show, and I’ve only probably 10 or 15 episodes, but they’re the same episode over and over again that just deal with different stuff, dating and the silly habits that we have and things like that.

Jill DeWit:

Yeah.

Steven Butala:

You didn’t miss anything. Trust me. Today, Jill and I talk about what does a salesperson of the future look like? You know, because Jill’s a salesperson and to some degree I am too. I don’t like to admit it or talk about it, but I think it’s going to change. I think sales is so dramatically changed in the last 10 years even, with computers.

Jill DeWit:

I have some notes. Last 10 years in last 10 days.

Steven Butala:

Yeah. That’s great, Jill. I love that up to date thing.

Jill DeWit:

It just hit me. I was thinking about it today, putting down notes of what I wanted to talk about on the show and I’m like, I know what the salesperson in the future is and I’ll tell you here in a few minutes.

Steven Butala:

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

Jill DeWit:

Scott wrote, hello. I’ve been a Land Academy member since 2019 and I have received a purchase agreement from my last mailer which led to a discussion with the owner. Much to my surprise, not really, since I know this happens quite often, in parentheses, the owner mentioned that he also had 240 additional parcels in the same County.

Steven Butala:

Cha-ching.

Jill DeWit:

Right? I love these. Most are five acres with the largest being 10 acres. This is great. Just asking for advice on how to potentially proceed with this large number of parcels. The owner has been selling parcels every year and has dealt with longterm option contracts like one year with another land investor in the past. That’s a long time.

Steven Butala:

I wonder if it was me.

Jill DeWit:

I believe-

Steven Butala:

This is a made for Jack deal.

Jill DeWit:

That I could easily wholesale these parcels and make a minimum of $400 per parcel but will not be willing to bite off more than I can handle. Any thoughts are much appreciated. Sincerely, Scott.

Steven Butala:

Like anything, what you want to do first is get all the data, get all the APNs, and run an analysis and see what you’re looking at. And so I would, this is a sentence I would say with as much enthusiasm as you possibly can muster, this is about sales. Sales happen on the acquisition side, too. I would say we love these kinds of deals.

Steven Butala:

I personally have a massive constituency. I know who to sell these properties to. This is what we do for a living. We’ve done it for years. I’m part of this huge group. We do hundreds and hundreds of deals every single day. I would love, love, love to see the list of these properties and I’m extremely confident I can put something together.

Steven Butala:

Actually, probably pretty quickly. Please send me the list of APNs. I’m going to run an analysis. I’ll probably need about a day to do it and I’ll give you a call back with an offer. We do want to buy this property, it’s just now a matter of the quality of the properties and the price.

Jill DeWit:

You know what’s funny when you first start talking, I thought you were going to go with an option agreement, which I’m not really a fan of right now.

Steven Butala:

I’m not either.

Jill DeWit:

Okay. All right.

Steven Butala:

I mean we never have been.

Jill DeWit:

I don’t really discuss it… This is the Jack and Jill show how we do it differently. I don’t share what I do. If they ask what I do, what are you going to do with them? I’m like, this is my business. I’m going to roll them into my inventory and see how it goes. But I don’t really talk about my business very much. And honestly, most of the sellers that I talk to don’t really care. They just want to get rid of it and how fast they can get a check. That’s really what it’s about.

Steven Butala:

Okay. This is a great point to bring this up at. This might just become the whole show here. A person that has all this property in their inventory is a deal maker just like us. And so you want to appeal to that person’s sense of you have it times 10, Jill, I want to get a deal done. What do you mean you have this kind of thing?

Steven Butala:

You buy and sell property? You’re involved in this big group. I want you to win, too. I want you to win, so let’s try to put a deal together. I love your enthusiasm. I agree with you. The one off sellers are like, just get this out of my garage.

Jill DeWit:

I’m going with the Coronavirus 10 day plan. So that’s the whole thing. I guess the question is-

Steven Butala:

This option contract, it probably doesn’t apply here.

Jill DeWit:

Yeah, yeah. I hope he’s saying that-

Steven Butala:

With this group, we’ll raise the cash.

Jill DeWit:

Well, I hope that he’s saying he’s been doing it and it sucked because if I had a one year option agreement with somebody… It’s funny, I just signed up with a broker the other day and I said, “Look, I’m signing this.” He was open to rewriting it too. He would even do 30 days at a time. It’s just a pain in the ass to keep extending it. And I didn’t mean it like that. When I go in with a broker I’m interested in a six month relationship because I want to be over in 30 days.

Steven Butala:

So he’s not talking about doing an option on these properties.

Jill DeWit:

Okay.

Steven Butala:

He’s talking about doing a release.

Jill DeWit:

Oh, okay. Well-

Steven Butala:

[crosstalk 00:07:49] 20% of the properties on the first [crosstalk 00:07:50]-

Jill DeWit:

Well, I don’t even know if we even know that. Maybe we should just take them all down. I guess my question is on this thing, I don’t read it like that and I don’t know what the seller wants. So does the seller want cash right now because he’s going to-

Steven Butala:

Everybody does.

Jill DeWit:

Because he’s moving to Alaska and saying, “I’m going to be virus free with my family over here.” Or you know, such and such. That’s-

Steven Butala:

Who doesn’t want cash right now.

Jill DeWit:

I sound like the poopy one today.

Steven Butala:

Yeah. You do. This kind of deal excites me man, I’ve done a bunch of these. Every single deal that I’ve done where it checks all the boxes for me. Usually, one box is unchecked. Usually the deals we do are like, I love every single thing about this property except check one of the boxes might be price, might be access, there’s usually one, but at the-

Jill DeWit:

Timing.

Steven Butala:

But we still do it.

Jill DeWit:

How fast you want to do this?

Steven Butala:

Yeah.

Jill DeWit:

Yeah.

Steven Butala:

Might be seller’s attitude.

Jill DeWit:

Yeah.

Steven Butala:

If it checks all the boxes, I will gleefully write a check and add it to the other side of my balance sheet. That’s what this is. We’re just shifting cash and assets around a balance sheet and ending up with equity.

Jill DeWit:

Okay, so you’re going to be Jill today and I’m going to be Steven.

Steven Butala:

These kinds of deals really make me happy.

Jill DeWit:

This is going to be funny. Let’s see if we can continue this.

Steven Butala:

There’s always five… What he’s talking about, 240 properties. Two or three or four, four or five of those are going to be like-

Jill DeWit:

Yeah.

Steven Butala:

Probably pay for the whole deal.

Jill DeWit:

Okay, I’ll go back to Jill for a minute here. The big picture is ding-ding. Those are nice sized properties. I don’t know what County they are, but if it’s a good County that’s not flooded with available property, then you can be happy and be busy here for a year or two just selling these.

Steven Butala:

And make a million bucks. Yeah. Exactly.

Jill DeWit:

That’s the point here. If you need the funds, we all know it’s out there. Boy is it out there. People are calling me.

Steven Butala:

My checkbook’s open for this kind of stuff.

Jill DeWit:

Yeah.

Steven Butala:

Today’s topic. What does a salesperson in the future look like? Well, apparently what did they look like 10 years ago and 10 days ago? This is the meat of the show.

Jill DeWit:

You like my saying?

Steven Butala:

I did, I just repeated it sort of.

Jill DeWit:

Okay, good. We were talking yesterday when came up with this topic and I’m just like, what’s going to happen? I was thinking like, okay, look, all this crazy stuff that’s going on right now. What’s going to happen? What’s going to happen to salespeople? They’re not going to be needed. It’s so interesting.

Jill DeWit:

And what’s funny is about like us personally, I’ve had that job. I’ve cold called to… Anyone who’s been in this business knows you do 80, 100 calls a day, outbound calls. That’s a lot of work. It’s not so much fun. And I’m thinking right now, I’m like, okay, things are changing. And first of all, what am I selling? So many things, so many industries and so many things that are going to change. We’re all going to be rewriting our job descriptions and maybe our companies and where we’re going with this.

Jill DeWit:

Are people needed? Here’s my big point to this whole thing. I want to talk about it with you. As I’m putting down notes and thinking about what’s happening and what’s coming, and what are we going to sell? Your best salesperson right now is nothing but an online marketer.

Jill DeWit:

Think about that for a minute.

Steven Butala:

Really.

Jill DeWit:

Because I’m not really sure a huge sales team is needed. So for example, we’re doing it right now anyway. We’ve always been that way. We buy property, make it look really good on the internet, put it out there, have a button to check out and pay. I don’t need a sales person. I don’t need a team. I need a person to write a beautiful description and take great pictures and put it all together.

Jill DeWit:

So that’s where I think this is going. Everything that I’m doing online, like I’m not talking to people, isn’t that funny? I’m not getting any calls. I don’t know about anybody else, too, but no one’s calling me to buy anything. But they sure are hitting me with emails all day long. I’m getting nothing but ads, and emails and thing. It’s all online marketing. Nobody wants to talk.

Steven Butala:

Can I ask you a bunch of questions?

Jill DeWit:

Yeah.

Steven Butala:

I think we’re just saying sales here, but there’s lots of different types of sales. Here’s a failing type of sales, regardless of how great you are. You have a flashlight that you can buy for 30 cents that you want to sell for a $1.50 on Amazon. And so the only way you’re going to get any attention or sell that flashlight at all to any degree of success is through making sure you’re at the top of the search function on Amazon.

Steven Butala:

So that’s not sales-

Jill DeWit:

That’s marketing.

Steven Butala:

I would even call that like online tech savvy.

Jill DeWit:

Well, here’s where I’m going with this.

Steven Butala:

There’s lots of different… The sales we do all happen in the acquisitions because you have the greatest property and it’s the cheapest and it’s going to rise to the top in that search that they do online. So what Jill said, I’m backing up what you’re saying, it becomes online marketing.

Jill DeWit:

Yeah. And here’s my thing too. I just think about everybody in our industry, and I come back to realtors too. What’s going to be needed of them in the future? Because I don’t really need them to do a walk through with me anymore. I can do a virtual walkthrough. The seller can walk me through on a live video chat.

Steven Butala:

Realtors are only surviving on this fictitious, it’s an urban legend or urban myth that they’re needed to complete a deal.

Jill DeWit:

Right.

Steven Butala:

They only make their money-

Jill DeWit:

And they’re required to hold your hand through the paperwork, which most of them don’t know the paperwork themselves.

Steven Butala:

I mean at some point, I was thinking about this a couple of days ago. You know how you go into realtor.com and you get all the information that you want about let’s say where you live, see how prices are, line your house up against the houses that are next door, all that stuff. And then there’s a picture of somebody who uses too much hairspray right there. It’s Sally Smith.

Steven Butala:

It’s a picture that she’s using from 22 years ago by the way. She doesn’t look like anything like that in person. What if that was an escrow agent?

Jill DeWit:

Oh, I think it’d be great.

Steven Butala:

Man, me too.

Jill DeWit:

It should be.

Steven Butala:

And it was like you just click on it and you say, “Yeah, I do want to buy this house and here’s the escrow agent. She’s going to close the deal for you.”

Jill DeWit:

That’s a good idea, combine the two jobs into one.

Steven Butala:

She’s going to close a deal for you and here’s a list of the top three lenders that love this neighborhood and here’s the appraisers that they use.

Jill DeWit:

Didn’t that use-

Steven Butala:

And then you’d save 6% on the deal.

Jill DeWit:

Didn’t that used to be the way, by the way? I thought that there used to be a very strong relationship between real estate agents and title agents.

Steven Butala:

And mortgage brokers.

Jill DeWit:

Right.

Steven Butala:

Yes. It used to be like a-

Jill DeWit:

They would all know each other.

Steven Butala:

A trinity of things. Yeah.

Jill DeWit:

You would do for me, I would hand it to my person. They do my deals and we’d all work together and they would help each other. Someone would hear about a deal, say like, “Oh call Susie, she’s the real estate agent. She’ll show it you it to you. And then when you’re ready to close, I’ll take care of that.”

Steven Butala:

I did a primary residence deal a long time ago, speaking of 10 years ago, and the real estate agent that did the deal to this day, probably one of the best real estate agents I’ve ever dealt with. You know who I’m talking about? She said-

Jill DeWit:

AB.

Steven Butala:

Yep. She said, “Don’t worry about the [inaudible 00:15:15] at all. I’ve got a person that’s magical about this and I’ll get a term sheet to you in an hour and the only variables really going to be interest rate because this is what happens and that interest rates going to be dictated by your credit score and a couple other things.” And she did.

Jill DeWit:

That’s exactly how it should go.

Steven Butala:

And I said, how can I beat this? This is service. Now, I’m like, okay, there’s some value here.

Jill DeWit:

That’s true. Yeah.

Steven Butala:

We got off on a real estate agent tangent really, because that’s like an example of sales that’s just-

Jill DeWit:

In our industry-

Steven Butala:

Antiquated and it was over 10 years ago.

Jill DeWit:

Right. I’m seriously just think about all the retail, we’re not retail, but I’m just thinking about salespeople. That’s where I think that they are, I’m not seeing them coming back.

Steven Butala:

The harder you have to sell something, the worst the product can stand on its own two feet.

Jill DeWit:

Oh I got something to say about that.

Steven Butala:

This is kind of your show. I’m filling here. I’m just a filler.

Jill DeWit:

Oh good. Thank you. Then you’re bringing up good ideas. So, that’s so funny because one of the things that anybody who knows us and knows our community, we don’t sell. We share because that’s not-

Steven Butala:

We share.

Jill DeWit:

We share what we do and hopefully we weed out and only get the right people in, which is IE professional top level investors. That’s our goal. Because we want to do deals with them. But our thing is we’re doing deals.

Steven Butala:

As a commercial real estate broker, which is how all this mess started a lot of years ago and the real early ’90s. I had an older guy come to me, there was a lot of guys, it’s a full commission job, so there’s 10 people clamoring to just get real estate deals done in Detroit in one of the worst recessions there was. So it was a mess.

Steven Butala:

And there’s one guy at the end who’s constantly selling real estate. And he never listed anything and it was all apartment buildings. And I’m like, I went and I walked in, I said, “Can I ask you a bunch of questions?” He’s like, “Absolutely.” A lot older than me. I said, “What’s the deal here? Like you never get a listing.” He’s like, “Because I have a list of all the people who own the apartment buildings in the Metro area. They’re going to buy this properties from each other. They just don’t know what’s for sale.”

Steven Butala:

And he said, “But here’s the key,” and this is the whole takeaway, I obviously, remembered it for the rest of my life. He’s like, “These deals come to me all the time. This landlord says, I need to sell this. Can you sell it for me?” And he said, “I don’t do it very often. I only do it in the deals that I believe in.”

Jill DeWit:

Right.

Steven Butala:

You have to believe in what you’re selling.

Jill DeWit:

Exactly.

Steven Butala:

If it’s not obvious that Jill and I believe in buying and selling land this way, after show number, whatever, this is 1,229 and all the people in our group that are just raving positive about it with the results. We’re into this, I believe in this.

Steven Butala:

I believe in rural vacant land. I believe in all kinds of land as a real estate vehicle to get filthy, stinking rich on the Pacific ocean. And it’s only going to get better, and that’s not the only benefit making money. I dig it. I love land and I love houses if they’re priced right when you’re actually getting away with something. When you’re buying, it’s cheaper than everybody else did because of data. So I love that whole component of it.

Steven Butala:

I’m very passionate about it and I’ve never wavered from that.

Jill DeWit:

Well said.

Steven Butala:

If I had to go sell ballpoint pens right now, door to door. I’m going to fail at it, the first minute because I don’t believe in it. I don’t believe the pen that I’m selling is better. I think door to door is stupid, there’s no pride in that.

Jill DeWit:

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

Steven Butala:

Tomorrow, the episode on the House Academy Show is called not killing your spouse while building a business together. You are not alone in your real estate ambition.

Jill DeWit:

I’d like to take some credit for that topic.

Steven Butala:

I think I just stole that show from you.

Jill DeWit:

As we’re brainstorming the other day, so yes, thank you. The Land Academy Show remains commercial free for you, our loyal listener. So wherever you’re watching, wherever you’re listening, please subscribe and rate us there. We are Steve and Jill.

Steven Butala:

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.

Be Careful What You Wish For Its Coming (LA 1228)

Be Careful What You Wish For Its Coming (LA 1228)

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.

Why Cash is King Now More Than Ever (LA 1226)

Why Cash is King Now More Than Ever (LA 1226)

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.

Selling Land Online in 1994 vs 2020 (LA 1224)

Selling Land Online in 1994 vs 2020 (LA 1224)

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.

Are We Real Estate Sheep (LA 1223)

Are We Real Estate Sheep (LA 1179)

Transcript:

Steven Butala:

Steve and Jill here.

Jill Dewitt:

Hello.

Steven Butala:

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

Jill Dewitt:

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

Steven Butala:

Today, Jill and I talk about are we real estate sheep?

Jill Dewitt:

I hope not. I know we’re not.

Steven Butala:

Do we just sit around and watch the news and let them tell us what to do? Let them tell us when we can go back to work or let them tell us what prices we can buy? Do we let real estate agents control our deals? Why is this any different? 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. I’m going to enjoy this.

Jill Dewitt:

See the inside of my lip? I Was bleeding a little bit there, holding back. Just kidding.

Steven Butala:

Oh, we’ll get to it.

Jill Dewitt:

Okay. Brandon, probably the same Brandon, wrote, “I finally got my first property through title and escrow. Title/escrow. I priced it at about 70% of the market, $20,000, and the market is $30,000’ish. Just wondering how long people wait on moving the price down to sell faster?” Okay, all right. He’s bought it, he put it up for sale. Okay, now we got it. You put up for sale at 70% of market value out there. Good deal. So everything else is selling around 30,000, Brandon priced his land property at $20,000. This all sounds good. So, now he’s going, “How long do I wait until I mark it down?” Not too fast, hold on. “I currently advertised on LandPin, Zillow, Craigslist, Instagram Boost, Facebook groups and Facebook Posts Boost.

Jill Dewitt:

I am getting interest, but nothing to even get excited about. One person visited the site and that was the best prospect. $18,000 is my double profit line. I bought it for nine. Because I made a mistake and underestimated the closing costs, it should’ve been closer to $16 or 17,000.” No problem.

Steven Butala:

You didn’t make a mistake.

Jill Dewitt:

No, yeah. “I just want to make sure I get out sooner than later and I don’t want to get caught with this property during a full real estate downturn. Thank you.” Well, first of all, don’t mark it down too fast because we’ve all talked to people who have these situations where, especially on our member calls, it comes up like, man, I just sold to the guy on Saturday, and then on Monday I had a full price offer. I had two of them or something like that. It’s like, yeah, that happens. Don’t worry about it. Move on. It’s okay.

Jill Dewitt:

And then, also, I question sometimes if you price it too low, that often triggers some things where people are going to go, “Why is it so low?” Even though you and I know it’s just as good at that $30,000 property, but I priced mine for $18, they’re going to go, why is that $12,000 less than everything else? What’s wrong with it? So you don’t want to send that message. The best thing you can do is just reach and reach and reach and now it should be even easier, which is great because a number of people that are online today versus six weeks ago is what? 60% more? That’s a lot of people.

Steven Butala:

Here’s what to remember during these times, and this is for houses and for land and for people who own manufacturing companies, and just about anybody who’s successful. These downturns, people want bargains. They’re looking for bargains, so if you present your property like it’s a bargain and it’s maybe a bargain caused by this virus or whatever else, it’s, you know, recession dejour. I don’t care what causes it next time or whatever. Last time the housing market caused the housing market, the recession, actually, which is really interesting because the housing market is a result of a healthcare problem worldwide now.

Steven Butala:

Last time the housing market caused the real estate recession, and so it’s very different. Anyway, that’s a different show. If you, Brandon, post your property and the title says, this is a super special price because we’re in a super special situation, you will sell it. That’s your new market. Your market is there are people, very wealthy people, cash wealthy, that are waiting to buy manufacturing companies right now at half price, houses at half price, huge pieces of land. If they perceive that it’s half price, all you got to do is buy it cheaper and sell it to them. You should find a group, a small, little group of people whatever market you’re in, and sell property to them because here’s what they don’t know, and you know how to send out mail and how to get real estate. You buy real estate for whatever reason.

Steven Butala:

I can say this with huge confidence. I’m qualified to say it and I’ll never understand it. Very wealthy people who have a lot of money to spend on devalued assets are so lazy and unwilling to learn how to send out mail, and they’re unwilling to hire somebody like Atlanta Academy or a house Academy member or people like us to pay to do it for them. They want the deal dumped in their lap, and they want to feel like it’s a lot cheaper than they could have got it four months ago.

Steven Butala:

We’ll be having this episode three years from now and we’re going to be saying, wow, it’s even cheaper than it was last month. So you’re doing everything right. Don’t give in. What I would do, and this is for you, Brandon, and everybody is find a small little group of people that have hoards of money in your market They probably already own a lot of real estate so they’re in. They’ve owned a set of LLCs or one or two LLCs. They already own houses or land in this area that you’re working. They’re going to buy your property.

Jill Dewitt:

Perfect. Thank you.

Steven Butala:

Today’s topic, are we real estate sheep? This is the meat of the show. Can people tell you what to do? Do you run your life based on the news events? No. You’re a Land Academy member. You never have. Do you listen to your wife? No. You do what you need to do.

Jill Dewitt:

I was waiting for that one, too. That’s what I was waiting for. Oh yes, sweetheart. What would you like me to do?

Steven Butala:

Do you listen to me? Never.

Jill Dewitt:

Hell, no.

Steven Butala:

We’re not sheep here.

Jill Dewitt:

Nope.

Steven Butala:

A few weeks from now or a month, maybe, hopefully less, we’re going to wake up in the morning and someone on the TV is going to say, Oh, I think it’s over. You can go out and, well, you can’t. You can go to the beach today. We’re going to let you go to the beach today. We’re not going to let you go to the restaurants yet.

Jill Dewitt:

Right. That’s true.

Steven Butala:

And then a week later you can only go to these restaurants and not these restaurants.

Jill Dewitt:

Right. You can sit two tables apart, and then one table apart and then.

Steven Butala:

I don’t know about you. People can’t tell me to do stuff like that. So am I going to go out and get arrested? No, but I’m just saying there’s an element of this that … Jill and I have tons of stories when this whole thing started about people telling us, specifically telling us, you guys are not standing six feet apart. Who said six feet’s good? Why isn’t it five feet? Why isn’t it twelve feet?

Jill Dewitt:

I agree. I personally have an issues with, come on. Are we really going to go out there and swim out and try to get the surfers in Malibu because they’re too close together accidentally? Trust me. They’re not trying to be on top of each other. If something happens. It’s nuts. Anyway.

Steven Butala:

Are we sheep? We’re not sheep. You wouldn’t be listening to this show or interested in buying and selling real estate or already doing it successfully if you were sheep. You do the same thing that you do with your boss. You listen to what the idiot says, you do half of it. You make it look like you’re a superstar and under your breath and to your coworkers just say, what a freaking idiot that guy is. It’s the same thing that’s going on now.

Jill Dewitt:

I don’t do that.

Steven Butala:

Not when we had jobs. Question everything is what I’m saying, and and half of this is probably true. Maybe less than half. Make sure that you win, though. You’re not sheep. You have to win, just like we have to win. Buy real estate super cheap and resell it. Use this to your advantage.

Jill Dewitt:

I have a question. Well that’s beautiful, Steven, but I was thinking this. This is why I thought the topic was going to be about real estate sheep. Letting the market tell us what we should buy and sell at. That’s where I was wondering you were going with that.

Steven Butala:

Oh, I would love for you to parlay it into that. That’s great.

Jill Dewitt:

That’s what I want to know because that’s not what we do. A lot of people follow that stuff and I think they’re nuts, and I hope that they look at things differently now and question everything. I still go buy the bottom line is the property is worth what someone’s willing to pay. I don’t care what an assessor says or the real estate agent.

Steven Butala:

What’s your reaction? You listener. Watcher. When an escrow agent says, Oh good, we just opened escrow. I need these following documents from you. I see you have an LLC. Here’s a list of stuff that I need. I need your articles of incorporation. I need a letter of good standing. I need a note from your mom, and I need a piece of your favorite pair of jeans. What do you say?

Steven Butala:

You know, this is a rated G show, so I can’t make the hand gesture that I typically make during the live events and on the on the Wednesday and Thursday calls. No. What you say is, excuse me, 800 year old escrow agent. You must be over the age of 90 because this is just not how you do real estate deal anymore. And by the way, I’m sure that you’re asking me for the stuff you’re going to prorate the taxes wrong because the last 42 people before you did it wrong, too.

Steven Butala:

No, you’d question everything. You’re not a sheep. You’re not going to let some escrow agent tell you what to do and what documents you need or don’t need. Same thing with real estate agents. The real estate agent will sabotage a deal faster than anybody possible if you let them. They’re going to make us sign it an inch worth of documents that have nothing to do with your real estate deal because you don’t have a lender. It’s your rules, not their rules. Am I ranting too much here?

Jill Dewitt:

No. I was writing down the bleep time so you don’t have to go back. This is helping you out.

Steven Butala:

I think I’ll cut it together.

Jill Dewitt:

Okay. That was funny.

Steven Butala:

This is a rant because they can’t tell us what to do. They can’t tell us that a virus is going to stop us from doing anything. So, yeah. Are we all staying at home? Okay, great. Fortunately for us, the people that are listening to this, we’re not going to be clobbered over the head. They’re not telling us that we can’t make money because that’s really what they’re telling most of the world. Most of the world who have to go to a location to work, I feel for them. They’re being told they can’t make money. That’s the most emasculating thing for a man that there ever was, is to be told by somebody on TV that they can’t provide for their family.

Steven Butala:

It’s terrible. Don’t be sheep. We’re not sheep.

Jill Dewitt:

I’m letting this be your show. You have a lot to say and it’s good.

Steven Butala:

It really makes me angry. It’s not lack of compassion for people who contract this thing and ultimately it causes a mortal damage. It’s not lack of compassion there. I do have a lot of compassion for that, but I really wonder how far off, by the end of this thing is, the regular flu numbers are going to be from just the data, how far off it’s going to be. I hope it doesn’t get completely out of control and there’s Zombies. I hope that doesn’t happen, but I just think that it’s really a lot more damage than it could.

Steven Butala:

And you know, here’s a truth. I also think the politicians are in a bad spot. I don’t care if you’re right or left. I don’t care about right or left at all. Any politician’s in a tough spot. They’re looking at themselves in the mirror saying, “I don’t necessarily believe that we need to shut the world down economically, but I have a choice here as a politician I can stand up and say we’re not going to do it but it’s political suicide.” That’s the end of their career because no matter how you slice it, there’s lack of compassion.

Steven Butala:

It comes off as you just don’t care. You care about money more than people.

Jill Dewitt:

When making sure they can put food on the table is caring about people.

Steven Butala:

I agree, Jill. I mean, Jill and I are in this. She’s letting me dig my grave here.

Jill Dewitt:

Mm-hmm (affirmative).

Steven Butala:

But the truth is we’re pretty much on the same page about this. All I’m saying is this.

Jill Dewitt:

Question everything. I like it. We’ll leave it at that.

Steven Butala:

Question everything. Don’t be sheep. Question real estate agents. Question all of it. Question lenders. we’re in a very unique situation because I keep reading, and I’ve never been in a situation where lenders are going to stop lending. That happened a little bit last time. Not like this. Unemployment’s at 30%.

Jill Dewitt:

Here’s what I think. For my ending thing, I think the cream is going to rise to the top. The number of people that are now out of work and unemployed and looking for work, I’ll tell you right now, we’ve actually hired a few positions. I got some rock stars and they’re showing up. It’s really only the good people that show up and are trying to do this and that’s who I want. So I’m kind of excited about how this is shaking things up a little bit. I’m really sad for for, I don’t want any business to not make it, but if you, how do I not be, I’m trying to really be nice about this.

Steven Butala:

I’ve always said this and I always will. There’s no real environment that I’m aware of where less choices are better. The more choices you have about everything, it’s not a right or left thing, I don’t care. The more choices we have the better, and right now they’re taking a lot of choices away. They’re taking a lot of our choices away. We’re very lucky.

Steven Butala:

The people who are listening and watching this, the vast majority I’m sure are lucky because we have already set down a path of making our own lives and chose to be responsible for ourselves and push out things like real estate agents and people that you don’t need or bosses or you know, paychecks. We’ve already made a choice to do that, so we’re going to survive this. There’s a ton of people that that can’t and won’t. They’re not bad or good, it’s just they don’t have a choice and that’s not good.

Jill Dewitt:

Happy you could join us today. The Land Academy show remains commercial-free. Oops. Excuse me. Happy you could join us today. Every Monday, Wednesday, and Friday you can find us here on the Land Academy Show. Tuesdays and Thursdays we are over on the House Academy Show.

Steven Butala:

Next week, join us on the Academy Show for another interesting episode. You are not alone in your real estate ambition. It wasn’t too much. Think it was too much?

Jill Dewitt:

Both our ratings will tell. I’m just kidding.

Steven Butala:

No, I don’t think you are. I mean, everybody’s got a lot to say about this. Plus everybody’s cooped up.

Jill Dewitt:

We’re all on edge. You know what? Honestly, I want to hear everyone’s opinion. I really do. I hope everybody’s just starts saying what they feel more often, and I think this is good with the don’t be sheep kind of thing. It doesn’t matter if I agree with it or not. You’re entitled to your opinion.

Steven Butala:

That’s right.

Jill Dewitt:

And that’s it.

Steven Butala:

Don’t let anybody push you around.

Jill Dewitt:

Exactly. We should all respect each other and work together and move forward together.

Steven Butala:

Just because they’re saying it on TV doesn’t mean it’s real.

Jill Dewitt:

The land Academy Show remains commercial free for you, our loyal listeners. So wherever you’re watching, wherever you are listening, please subscribe and rate us there.

Steven Butala:

We are Steve and Jill.

Jill Dewitt:

We are Steve and Jill.

Steven Butala:

Information.

Jill Dewitt:

And inspiration.

Jill Dewitt:

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.

Why Land Academy Members Don’t Give Up (LA 1221)

Why Land Academy Members Don’t Give Up (LA 1221)

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.

Real Estate in 2020 Post Virus (LA 1219)

Real Estate in 2020 Post Virus (LA 1219)

Transcript:

Steven Butala:

Steve and Jill here. Welcome to the Land Academy Show, entertaining land investment talk. I’m Steven Jack Butala.

Jill Dewitt:

And I’m Jill Dewitt, broadcasting from cool breezy, rainy Southern California today.

Steven Butala:

Today, Jill and I talk about real estate in 2020 post virus.

Jill Dewitt:

We all want to know.

Steven Butala:

What are we heading into? What’s happening? Yeah, we all want to know what’s happening now. I took a real deep dive into the data that’s provided by lots of different agencies. It’s amazing how much data’s available and how we can use it. That’s what the show is all about. How we can use it to see what’s going to happen in the future, to buy and sell real estate, not to lose money to make money.

Jill Dewitt:

What’s interesting is I think it’s already happening and we’re already seeing it. We already know and it’s so funny because we can predict, we can kind of safely predict a lot people are with real estate. We’re already seeing it and I have some examples here in a minute, but we can’t predict and we can’t say anything else. Like people, everyone wanted to know, when can I go outside again? Let’s point about that. Let’s call a spade a spade. And no one will really answer that. Our president won’t answer. People won’t answer it. They’re afraid to say, but they all say that it’s not going to be a flip of a switch. They all kind of agree that it’s going to be some gradual thing, but anyway. We have some good answers.

Steven Butala:

Why do they get to decide anyway?

Jill Dewitt:

Good point.

Steven Butala:

This whole week we’re going to cover some stuff like this. Jill and I were, we were on a, I hope you’re doing this too. We had these Zoom calls with our friends and so, and we, it ultimately ends up being a discussion about what the hell is this all about anyway. Like I’m sure you’re having, and what I learned recently is that Jill and I are on the same page about a lot of stuff when it comes to current events and politics and all of it. Like really seriously, pretty close.

Jill Dewitt:

It’s true.

Steven Butala:

We try not to ever talk about this because we like each other and we want to keep it that way. Well, it turns out some couples are really, it’s polarized.

Jill Dewitt:

Yeah, like don’t bring them up because it starts an immediate fight. That’s true.

Steven Butala:

So all this week we’re going to address some of the silly stuff. How can you not? How can you sit and talk about real estate and not talk about what’s going on behind us, which is nothing. There’s nothing going on behind us outside.

Jill Dewitt:

I got to say, I should’ve taken a picture. Steven pointed out a squirrel. I have never seen a squirrel on our back wall behind us and I’m like, what? I should have taken a picture, it was hilarious.

Steven Butala:

There’s weeds starting to grow in the cracks on the strand here in California and it’s like a zombie movie.

Jill Dewitt:

What happened? It’s so weird.

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 Dewitt:

Ben, asks, “Good morning. Has anyone found a correlation from experience between the number of years someone has on a property and their willingness to sell? I have a lot of people on my mailers that just acquired the property within the last year and are not interested in selling. I’m looking at the idea of trying to filter out new owners. Thanks.”

Steven Butala:

This is on landinvestors.com it’s a free forum that Jill and I put together a lot of years ago. So you can just go on there and say your piece. When it comes to land and real estate investing in general, it turned out to be really popular. So on this question like lots, there’s a bunch of responses and they all are some version of what I’m going to say. Just send out the freaking mail. If you’re, I understand that efficiency is important for everything. I probably in a really unhealthy way pray to the efficiency God, to the point where Jill, it probably makes Jill nauseous.

Jill Dewitt:

Yes, it does.

Steven Butala:

And I want a great real estate yield as much as anybody in the group. But it’s very important just to send out the mail.

Jill Dewitt:

I have to say, we’re talking 65 cents here everyone. Do you really want 65 cents to keep you from getting that deal? You know, that you didn’t do it, because we think it, let’s talk about it. I mean 10 cents for the data, check and roughly 55 cents to get the offer out because everything else you’re doing is all the same. Whether you’re doing a thousand or 10,000 units, you’re scrubbing and doing all that stuff the same. Am I my right?

Steven Butala:

You’re right.

Jill Dewitt:

Okay. Am I stepping on your toes?

Steven Butala:

Not at all. Go ahead.

Jill Dewitt:

Okay. So, I’m like, 65 cents for the 10 that you might or the hundred that you might, I mean, for $65 I’d rather have the extra a hundred in there and not scrub them out and miss that deal because I’ve seen, you never know. Someone could have bought it yesterday and I’m sorry, but life happened. Somebody, someone bought it, someone bought something in January. I’m telling you right now. It’s happening right now today and then the virus hit. They lost their job. If you scrub those out, you’re missing those deals.

Steven Butala:

Especially now. So there are all kinds of ways at the end of your data scrub, everybody who’s ever done a data scrub, they go through this at the end. All right, I think I’m done. It looks done. I didn’t, I took this out. I have a checklist here. I went through my checklist, done, done, done, done, done, done. Maybe I could save three to 8% I can scrub them out because I know they’re not going to respond. Here’s a good example. Do you scrub every, in every dataset for land, there’s an owner that’s called the United States of America or some crazy stuff like the city of Los Angeles. Are they going to respond to your mailer? No. Get those out of there.

Steven Butala:

I talk about that in the program, but should I take it a step further because I’m a little cuckoo and say, I think it’d be better … Now you’re thinking and you’re going about to react on something that’s not data-driven at all. It’s just a theory or a feeling that maybe people who bought property in the last seven years, they’re not as likely, like Jill said, they’re not as likely. Maybe that’s true, but what if one of them is like, you just nailed it. So really, 65 cents to see. So that’s been my millions and millions and millions of letters that Jill and I have sent out.

Steven Butala:

There’s all kinds of ways you can scrub and maybe save 10%. Is it worth it? No. You want, you’re making a 10 to 20 to a hundred thousand dollars a deal. Why take the chance? So yes Ben, could you potentially over time win from a statistic and an efficiency standpoint, you would, yeah. Just the same way, if you play enough blackjack hands, all you need to do is win 51% and you’re going to win.

Jill Dewitt:

Thank you.

Steven Butala:

Don’t do it is my point. Just get the mail out there. If you go to the string at LandInvestors it’s funny, everybody’s like, Oh my gosh, just send it out.

Jill Dewitt:

I’m going to add because we haven’t talked about some of our stuff in a while, but the whole reason we have landinvestors.com is because we were struggling in bigger pockets. So if you’re listening, and a lot of you know what bigger pockets is. It’s a great catchall for all kinds of real estate. We have no affiliation, nothing like that with bigger pockets. But we would use it two years ago. Like, gosh, I really need more than just a land thread that I started. I really need more about it. So we made our own and that’s where we are today.

Steven Butala:

You know what I was just thinking?

Jill Dewitt:

Now, it’s huge. No, I can’t, I can’t. So if you’re doing anything with land, which you probably are because you’re listening here, I defy you to not find an answer to a question in there because now after what, six years old almost now and how many, and it’s free. So there’s people that are not members, but they’re just land pros that are in there and have been in there for years. There’s so much information. So sorry.

Steven Butala:

I was just thinking that if you’ve watched any news on TV lately, and I hope you haven’t, but if you have like on a daily talk show or anything, everybody’s at home and so they’re all, it’s just funny for me to watch because we’ve been producing this show forever. Like I know about, just enough to be dangerous about lights and camera frames per second and a bunch of stats like that. And it’s funny as heck to watch like an international anchor, go home and do their, especially when they’re talking with other people and just do it on a MacBook pro. It cracks me up and it’s all delayed. And so, hey, if anyone’s listening out there get some professional equipment, it doesn’t cost a lot.

Jill Dewitt:

Where did this come from?

Steven Butala:

It just cracks me up, because …

Jill Dewitt:

Okay. Where did that come from?

Steven Butala:

I don’t know.

Jill Dewitt:

All right.

Steven Butala:

I don’t know because I just thought …

Jill Dewitt:

It’s on your mind.

Steven Butala:

I think stuff, our stuff, everybody’s a little cooks right now, including me. Today’s topic, real estate in 2020 post virus. This is the meat of the show. I figured I’d do, Jill and I would kind of present some actual data from March because it’s April now. It’s almost the middle of April and usually real estate data is on a 30 to 45 day lag. Meaning we get all the March data in April, late April or May, which is actually pretty extraordinary. It used to be in accounting, I remember closing the books out. It’d be like 90 days and so you’d get the numbers for three months earlier.

Steven Butala:

Because of the magic of the internet and things like realtor.com and redfin.com they all live and die by data. They can see almost in real time who’s looking at what, how many people are listing things. It’s really easy for them to track it from a computer web perspective and they’re nice enough to share it. Jill and I make a half career about complaining about real estate agents, but I’ll tell you, the associations that run these real estate environments and the data part of it, they’re really, really liberal in and open about sharing all the data with us.

Jill Dewitt:

Because other people are paying for it.

Steven Butala:

My point is, and this is … Yeah, we’re not. The underlying theme in all of this is that I’m going to throw out a bunch of stats here in a few minutes and it’s all down. But my underlying theme in all of this, not just this show, but the universe of Land Academy House Academy is positive. These things are, the worlds, the real estate world’s about to fall apart. I can save you, if you don’t want to listen to any past further on this show, that’s what this is about. It’s about to fall apart and the late March data indicates that. And so that’s why we’re here. Now’s the time to make your move in real estate.

Jill Dewitt:

I agree.

Steven Butala:

So I think you had a bunch of stuff to say about this.

Jill Dewitt:

I was going to say, so here’s my thing about this whole topic. So the state of real estate basically post virus 2020. I’m already seeing it and if you’re not, you know what? I know you are. If you’re in any kind of a real estate forum or you follow articles, anything like that, I know you’re seeing it too. The deals that are falling through are staggering. I just read last week about TGI Fridays and this huge billion dollar deal that got halted because they’re not going to proceed like they originally intended. Now post virus, they’re already pulling the plug. I’ve seen so many homes. This is my, the one that really hits me in the face. I can’t go onto Realtor or Redfin. I get all these email updates, because you searched … We all get those.

Jill Dewitt:

It pops in all the things and I’m sure you’re seeing it too, back on market, back on market, back on market. And I go back and I look and I dig into the bottom. I look through to see how long it was on the market before. And a lot of them were contingent. I mean they were in escrow and here they are. They fell through, they’re back on the market. So what does this tell us and what does it tell me? Hold on your hat. It’s really going to be a buyer’s market is what this is going to mean because people are going to be like, there’s going to be so much inventory because they’re coming back. Deals are falling through, people that thought they could afford them and their jobs have changed. Their lives have changed. That’s great for us. So, how do we respond to that? Do you want me to, do you want to jump in at any point here?

Steven Butala:

No.

Jill Dewitt:

Okay.

Steven Butala:

I’m just looking, I’m over looking over your shoulder at your notes.

Jill Dewitt:

Okay.

Steven Butala:

Jill puts little smiley faces and exclamation points.

Jill Dewitt:

I do.

Steven Butala:

In her own notes to herself.

Jill Dewitt:

I do, I underline things. I use caps. I do, here are my notes. What does it say? Deals falling through. Covered TGI Friday’s. Covered tons of back on market. Equals buyers and market. That’s us. And then I put an arrow for us. What do we do? I put in all caps with two underlines. We only buy the best.

Steven Butala:

The world’s falling apart and Jill wakes up happy still. Cracks me up.

Jill Dewitt:

Well because there are deals.

Steven Butala:

Does anything ever get you down in your life, I mean ever?

Jill Dewitt:

Sure, it really revolves around teenagers or traffic.

Steven Butala:

I mean, other than me.

Jill Dewitt:

No, I said teenagers and traffic.

Steven Butala:

Traffic bugs you?

Jill Dewitt:

Sometimes.

Steven Butala:

You handle it pretty well.

Jill Dewitt:

Thank you. I mean it’s not great. I don’t like having to, here’s the thing, one of the great joys when I left Southern California years ago and we moved to Arizona was, wow, I don’t have to budget a minimum of 45 minutes to get everywhere and or find a parking place. I can actually get in my car, drive somewhere, have it take less than 45 minutes and park right near the door. Now we’re back in California and it’s, we’re backed to that. Slash however, right now we’re in the middle of the virus thing. Traffic’s pretty light. So, that part’s good.

Steven Butala:

I just read a little article about air quality. Like the grid worldwide have the best air quality we’ve ever had since …

Jill Dewitt:

Southern California?

Steven Butala:

No, the world. Like Rome, places that are famous for terrible air quality. All of India, it has the best air quality they’ve ever measured since they’ve been measuring air quality. So there is a silver lining.

Jill Dewitt:

Imagine what it would be like if we really tried? Anyway, that’s a whole nother, that’s another show for another, it’s another topic for another show on another channel.

Steven Butala:

With different people.

Jill Dewitt:

Exactly.

Steven Butala:

With different hosts.

Jill Dewitt:

That’s perfect. So I’m already seeing it and it’s so … Those of you who are in our community know it and you believe it and you’re feeling it too. But it’s, and it’s funny because I’m sharing stuff in social media and I put a post out last week where I said, “Hey, here’s just an example of a deal on I’m doing.” And people who are not in our world are like, this can’t be true. And then blow it as four other members saying, here’s what I did and here’s what I did and they’re better than my deals. And I’m like, it’s not nuts.

Steven Butala:

No, it’s real.

Jill Dewitt:

It’s really happening.

Steven Butala:

This isn’t theory.

Jill Dewitt:

Right.

Steven Butala:

The show and this group is not like, hey, let’s see if they can watch our show. Let’s try and get some hits. This is real.

Jill Dewitt:

And they make up numbers.

Steven Butala:

This is real. The ocean behind us, it’s real.

Jill Dewitt:

Yeah, so all I want you to take away from this from me is, hold on, again, hold onto your hat. It’s going to be more of a buyer’s market and that means we can really just pick the best ones. I want you to buy them at the point like I had to buy it. It was so cheap. It’s not even my thing, but I had to buy it because I know what’s possible here and I’m going to have triple my money on it.

Steven Butala:

Here’s some real, here’s some real data and then we’ll move on. And all the sources of this data are from a real stats that I collected, spent a bunch of time on it actually. Collecting stats from both realtor.com and redfin.com because they have the most prevalent MLS statistics out there. And a ton of this data, look, we’re all in the land business, so, “Oh my God, Steve, why are you talking about real estate data? We’re just land. All we care …” Houses and commercial real estate and all of that really dictate what happens with land. And it’s impossible, nearly impossible to get land data because no one cares. You know the reason that you’re Land Academy members is because you get it, we get it. We know that there are tons of money to make on unwanted land. As a percentage, unwanted land is a much higher percentage than houses and buildings, commercial buildings. So that’s a given.

Steven Butala:

So we’re collecting all this real estate data now because it does trickle down to land. So as far as inventory goes, March the March has decreased six plus percent since last year. What does that mean? Less people are listing their houses. Less people are listing stuff for sale. They’re hunkering down. Nationally the inventory decreased by 15% year over year. In larger markets, like Phoenix, big markets, it’s up to 17%. Again, it just means people are not listing their property for sale. Whoever they are, building owners, land owners, house owners.

Steven Butala:

The volume again, I’ll skip that stat. It’s the same thing. Week ending March 28th the volume of newly listed properties, this is the end of March now. So all these stats I just mentioned were just for March. Again, we’re lucky enough to get data from these website sources because they can see it in almost real time. The week ending March 28th, the last week of March, the new list of, newly listed property has decreased 34%. 34%, that’s insane. And we don’t have a full month’s worth of data yet. April, May and June, if it continues to go down 34% each of those times. I mean in approaches like 20 or 30% of the regularly listed volume on the MLS nationally.

Jill Dewitt:

Well I have some questions.

Steven Butala:

This all point to this. It’s going, it’s coming.

Jill Dewitt:

Well I have some questions.

Steven Butala:

And it’s positively coming.

Jill Dewitt:

Okay. You’re, because this goes against my whole thing because I’m seeing things go back on the market. That doesn’t mean that they’re new, but they’re back on the market. I have a theory though. Follow me on this one. I really firmly in my gut, this is not based on numbers.

Steven Butala:

That’s the difference between Jill and I.

Jill Dewitt:

But come on, there’s a lot of people out there right now that would love to sell their house. Especially right now. Don’t you think?

Steven Butala:

I think there’s enough, as a national percentage, there’s a lot of people. Yeah.

Jill Dewitt:

Okay.

Steven Butala:

There’s more people than there was two months ago.

Jill Dewitt:

Okay. Hold on a moment. I honestly think that part of this number and why the numbers are down is because real estate agents are feeling like their hands are tied and they don’t know what to do. You don’t think that’s true?

Steven Butala:

No. I think this is, these are national numbers I’m throwing out. On this … Let me, hold on a second.

Jill Dewitt:

I’m really curious here on what… We’re going to have a little discussion.

Steven Butala:

Nationally, people are saying, you know what? First of all, somebody said on the television, I don’t have to pay my mortgage and I don’t have to pay my rent. I’m not going to move. I’m not going to list my property. So, that’s national. What we’re looking for as Land Academy House Academy members as a tiny, tiny little fraction of 1% of the people when we send the mail out that say, Oh my God, I do want $150,000 check. So, that has nothing to do with this. These are just national trends.

Jill Dewitt:

Okay.

Steven Butala:

It’s not a personal thing.

Jill Dewitt:

I know.

Steven Butala:

These national trends, we can use to our advantage the next time we send mail out.

Jill Dewitt:

Well here’s what I’m going with on this. So I think that what you’re seeing now is going to change obviously this summer.

Steven Butala:

Yeah it’s going to be worse.

Jill Dewitt:

I’m not sure I agree.

Steven Butala:

And I’ll get to that in a second. 34% unemployment, no one’s ever, that’s what we’re approaching.

Jill Dewitt:

I know that.

Steven Butala:

It’s not that they want to sell or don’t want to sell. The house is going to be for sale.

Jill Dewitt:

That’s what I’m saying. Okay.

Steven Butala:

They don’t have any choice.

Jill Dewitt:

Okay. Now we’re on the same page.

Steven Butala:

Are they going to list it? Probably not. They’re probably going to walk away.

Jill Dewitt:

Okay. Now we’re on the same page because it still comes back to, I see a lot of opportunity coming for us.

Steven Butala:

That’s what I think. We agree on that, for sure.

Jill Dewitt:

Well, good. Okay. Well you’re saying …

Steven Butala:

All these statistics are negative, but they’re positive for what we do for a living.

Jill Dewitt:

Okay, well it made me … The way you were going with that, I thought you were saying seller’s market. I’m like, hmm, I’m don’t see seller’s market coming. I see buyer’s market coming. So you’re agreeing.

Steven Butala:

This is in no way a sellers market.

Jill Dewitt:

Thank you.

Steven Butala:

And it won’t be for the rest of the year.

Jill Dewitt:

Because you know why? Because you’re talking about inventory is going down.

Steven Butala:

Yeah. People aren’t listing their property.

Jill Dewitt:

Okay. For now.

Steven Butala:

New listings have declined by 17% year over year in March. 17% of new listings. That’s staggering. 5% or 3% is a massive change. 17% is shattering. It’s industry shattering. The metropolitan areas that saw the biggest declines in inventory or new listings were surprise, surprise, Metro Mesa, Phoenix, Mesa, Scottsdale. New listings in March went down 42%. they were cut in half.

Jill Dewitt:

I believe it.

Steven Butala:

That is just … If you’re … Everybody in our group is some version of a data person, unless you have a data person as a partner, that just stops me in my tracks. 42% of the properties. For Milwaukee, 36% less listings. San Diego, 33% less listings. That gets me thinking. And then Minneapolis, St. Paul, Wisconsin, Minnesota, 3.6% up. So that could be statistics or that could be, who knows why. More people listed, that could be a plant closed or something. We don’t know.

Jill Dewitt:

Right.

Steven Butala:

Sales, nationally, a home sold in 60 days in March. That’s four days better than March of last year. What does that tell you? That tells me people are saying, you know what? I’m going to accept this offer. My house is listed. I’m going to cut my, I wanted $25,000 more. I’m going to take this thing and let’s get out of it.

Jill Dewitt:

Yep. I’m experiencing that with land.

Steven Butala:

All positive. Yeah.

Jill Dewitt:

Definitely with land.

Steven Butala:

That’s a real good stat for all of us to watch.

Jill Dewitt:

Yep. Okay, what would you pay? I just want to get rid of. That’s what I’m experiencing.

Steven Butala:

Prices, something we’re all, live and die by pricing. Median listing price grew by 3.8% March over March of last year. $320,000 bucks for SFRs. In February, it was 3.9. How can that possibly be Steve? On one hand you’re telling me there’s way less this things. On the other hand, you’re telling me prices are going up.

Jill Dewitt:

Know what that is? That’s not, they’re asking more money for their house. That could be more expensive homes are coming on the market. That’s all it is. We’re seeing more $500,000 houses than $100,000 houses. That’s it.

Steven Butala:

You read my mind.

Jill Dewitt:

Thank you.

Steven Butala:

We do agree.

Jill Dewitt:

I do agree. Which again, is another good sign.

Steven Butala:

Listing prices in the largest metro group by 5.7%. Here’s why, and 6% year over year. And here’s why. There are a lot of people beat their chest in these expensive housing markets that are out there and they’re all in metro areas. They’re not, there’s not, very few rural markets that are beat your chest, I’m proud of my house price.

Steven Butala:

Those people are panicking. Those are the people that move every two or three years. They’re not in the real estate business. They make a few hundred thousand dollars. They move, they make a few hundred thousand dollars. Well that’s the definition of a bubble and so all of us that are listening to this and are in this industry are about to buy those houses for half price. Makes me really, really happy.

Jill Dewitt:

I agree.

Steven Butala:

The 45 Metro markets that are still year over year gains in their median list prices, Pittsburgh, 17%. Philly, 14%. Memphis, 12%. and the steepest declines are Dallas, Minneapolis and Houston. And here’s the final statistic and it’s my favorite. In March, this is all of March, 15% of the active listings in this country saw price reduction. If this all doesn’t spell to you, opportunity, this isn’t the group for you. It’s not, then maybe it’s not the time for you. You don’t understand data. I don’t care. If this disgusts you. This is why I bring this up. Jill is going to kick me under the desk right now.

Jill Dewitt:

I don’t do that.

Steven Butala:

Jill and I have been posting a lot of stuff on social media about success stories, buying property. We were going to buy for 20,000 and we reduced it to 5,000 they accepted our offer. Now we’re going to resell it. And so there’s a lot of people that have a lot of negative stuff to say about that. They don’t believe us. We’re going to go to hell. All kinds of things. Here’s the fact. This is an incredible opportunity. Am I saying kick somebody when they’re down? Absolutely not. Have no compassion? No. I have compassion. We have all have compassion. Markets go up and down. If you buy a chunk of stock for half of what it was worth last month, do you think, is it unethical? Do you worry about the shareholders that might have purchased it more than you?

Jill Dewitt:

How they’re financially going to make it now that their stock went down. Wouldn’t that be hilarious?

Steven Butala:

It’s the same thing.

Jill Dewitt:

Well, I can’t, could you imagine? I’m sorry. I can’t possibly buy a Ford at that price because how are you guys going to put food on your table? No, no, no. I need to give you at least this much a share.

Steven Butala:

And I bet you a dollar, 95 percent of the people or some very large number, majority of our group anyway, or the people that are listening have been on the other side of that. I know we have, we’ve had to grossly sell property. Residences, primary residences, during this last downturn had to dump our expensive house in paradise Valley, Arizona. For way less than we had into it. Hundreds and hundreds of thousands of dollars of a loss. So we could go pay cash in a townhouse and wait it out.

Jill Dewitt:

You just move forward. Do what you have to do and move forward.

Steven Butala:

That’s it.

Jill Dewitt:

That’s it.

Steven Butala:

That’s it Jill.

Jill Dewitt:

Thank you. I was going to say one more thing too about the state of this industry because I’m kind of excited about this. This is going to be a really obviously a long show, which is, I’m so curious, this should be another topic I want to dive into, but we’re all getting more and more used to dealing with online with social distancing and not going out of our house. I really think it’s going to make the way we’ve been doing our business since you started this in the nineties more prevalent, more attractive and even easier.

Steven Butala:

Yeah. I mean, work from home, you mean work from home. Is that what you mean?

Jill Dewitt:

Well buying and selling property online. People used to think we’re nuts. Now it’s like, now we’re doing all kinds of things that we never thought we could do, buy and sell online.

Steven Butala:

Yep. Well said. I didn’t think about that.

Jill Dewitt:

Thank you. We should have, that’ll be another show. Happy you could join us today. Every Monday, Wednesday and Friday, you could find this right here on the Land Academy Show. Tuesdays and Thursdays, we are next door on the House Academy Show.

Steven Butala:

Tomorrow the episode on the house Academy show is called how to half your offer price on the phone by Jill. You are not alone in your real estate ambition. Guy calls back, says, yep, that offer you guys sent me two years ago.

Jill Dewitt:

I’ll take it.

Steven Butala:

For $38,000 bucks. Turns out that was a great idea. And I got around to looking at it and thinking about it and I do want to sell my property for $38,000 and Jill says.

Jill Dewitt:

Well, I’ll one up that. I’m going to share it tomorrow. I’m going to one up it there too.

Steven Butala:

We’ll do it tomorrow.

Jill Dewitt:

How about we’re in escrow, about to close. I hate to be that guy, but I didn’t want to do the deal. So we can talk about that too. The Land Academy Show remains commercial-free for you, our loyal listeners. So wherever you’re watching, wherever you are listening, please subscribe and meet us there. We are Steve and Jill.

Steven Butala:

Information.

Jill Dewitt:

And Inspiration.

Steven Butala:

To buy undervalued property.

 

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