3 Types of Land Investment Deal Buckets (LA 1734)

Transcript:

Steven Jack Butala:

Steve and Jill here.

Jill K DeWit:

Hi.

Steven Jack Butala:

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

Jill K DeWit:

And I'm Jill DeWit, broadcasting from the valley of the sun.

Steven Jack Butala:

Today Jill and I talk about the three types of land investment deal buckets that we kind of live by.

Jill K DeWit:

Yep. I think it's interesting that ... These change by the way. You're one, two, and three different kind of buckets that you're working with, and properties, and prices. It's going to change and evolve.

If you know us, you've learned that over the years if, and heaven forbid you've been watching us and following us for the seven years we've been doing this. But we-

Steven Jack Butala:

Yeah that's [crosstalk 00:00:38]

Jill K DeWit:

- are getting really good at eating our words. We at one time were going to do a whole separate podcast on poor broker agent bashing, and now we love them. So when you hear us talk about these buckets, know there's an ebb and a flow, and things change. And there's no wrong way.

Steven Jack Butala:

I named them buckets for a reason, and we'll get into it in detail here in a minute. The buckets themselves, the holder, never change. The stuff that goes inside changes.

Jill K DeWit:

I thought becoming a parent and eating my words there was enough. But oh no, there's age and experience eating of words that goes on. I'm sure that when we're 80 I'm going to go, "Oh we are so wrong," and we're going to be eating our words again.

Steven Jack Butala:

Yeah. It's not the opposite actually, it's like the older we get the more I don't think I'm smart. I get like not-

Jill K DeWit:

You get stupid again?

Steven Jack Butala:

- I get less intelligent and less knowledgeable about ... I think most people get older and they get real set in their ways, and say "this is it." For some reason, I'm going the other way.

Jill K DeWit:

That's true. That's very true.

Steven Jack Butala:

Before we get into it, let's take a question posted by one of our Land Investor members on our online community. It's free. Did you know that we have a full blown, operational commercial printing company called offers2owners.com. Jill and I set this company up several years ago to specifically mail out our blind offer campaigns. We started sharing it with our members -

Jill K DeWit:

And the public.

Steven Jack Butala:

- and some non-members, yeah, a couple years ago. Today we mail out between 700,000 and 800,000 offers a month on their behalf. Give them a call, 800-725-8816, or [email protected].

Jill K DeWit:

It's offers, and the number two, and then owners.com.

Erin wrote, "How do you know if a property's an infill lot?"

Steven Jack Butala:

Here's how. It's actually quite simple. It's a very good, simple question. An infill lot has properties ... You know what an infill lot is going to be used for. How do you know that? Because the stuff that's around it or adjacent to it, hopefully adjacent to it, is developed that way. And it's almost always houses.

It might be, in some cases, a strip mall. But it's an infill lot, and not a piece of real vacant land. Or we don't know exactly how it's going to be developed because it's really far out from any type of urban center. If it's within an urban center or close to it, and there's houses all around it, you know it's going to be used to build another house. That's an infill lot, it's being infilled.

Jill K DeWit:

Like it's in a subdivision.

Steven Jack Butala:

Yeah, it's a great example. 98 percent of them are in subdivisions. An incomplete subdivision and there's a lot that needs to have a house on it just like next door.

Jill K DeWit:

Mm-hmm (affirmative), thank you.

Steven Jack Butala:

Real easy to value. Real easy to sell. You sell it to the person who ... The developers who built all the other houses aro...