Assignment Deals - Do We Do Them? (LA 1520)

Transcript:

Jack Butala:

Steve and Jill here.

Jill Dewitt:

Hello.

Jack Butala:

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

Jill Dewitt:

And I'm Jill Dewitt broadcasting from hot and not so perfect Paradise Valley, Arizona today.

Jack Butala:

Today Jill and I talk about assignment deals. Do we do them?

Jill Dewitt:

Oh I have a lot to say.

Jack Butala:

This topic comes from a lot of questions that we're getting about assignment deals, because there's always this buzz, not so much in our group, but this buzz about assignment deals.

Jill Dewitt:

On the planet.

Jack Butala:

And why they're...

Jill Dewitt:

The planet thinks they're awesome.

Jack Butala:

How you can make a fortune. Yeah.

Jill Dewitt:

I'm here to tell you they suck.

Jack Butala:

They do suck.

Jill Dewitt:

And I'm going to tell you why. I'm going to explain what this is. I'm going to tell you all the things that can go wrong.

Jack Butala:

That's excellent.

Jill Dewitt:

And why I have chosen to go, "Nope, not doing that."

Jack Butala:

I can't wait to hear it and I bet I agree. 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. If you're already with us in the Land Academy group, join us on Discord. You won't be disappointed.

Jill Dewitt:

Which is another way that we communicate. It's like We Chat or Teams or something. What the heck is discord? That's what it is. And it's pretty cool. Scott wrote, "Question for the land veterans in a situation like this, where the property just went back to the tax authority, is it worth it to pay the former owner a few hundred bucks and get her to assign you the right of redemption and a quick claim deed. Then someone could pick it up for basically the cost of the back taxes. Sounds like there's enough meat on the bone for the extra trouble."

Jack Butala:

May I?

Jill Dewitt:

Mm-hmm (affirmative).

Jack Butala:

We do this all the time. I've been doing this for 25 years. There's all kinds of education out there about how to do this too. Do I think it should completely and totally focus on this? Absolutely not. Do I think you should focus on back tax properties only? Nope. But what happens is we send all this mail out and invariably someone calls you back. Usually on every single mailer and says, "Yeah, I'm going to let this go back anyway. I don't want this property. It's been five years. I haven't paid the taxes. Here's the APN. Well, you know the APN, you sent it to me on my letter. So knock yourself out. Maybe send me $500." Or maybe you suggest that you give them $500 to let you to undo all this mess for them, depending on how much back taxes there are, it may or may not be worth it.

Jack Butala:

It's just a math situation. If there's too much more back taxes than the properties, then you can sell it for, then it's not...

Jill Dewitt:

Then you walk away.

Jack Butala:

Right. There are people in our space, other people who have a land academy like environments, where they teach how to buy and sell land, that only focus on this. Which to think of silly. Why would you focus on just one small little part of the revenue stream? No, in the vast majority of these situations, we win, you would win as the investor because you're dealing with somebody who just doesn't care anymore. They already gave up, stopped paying the taxes and you have to solve their problem usually from a legal standpoint. The deed might be in a deceased mom's name.

Jill Dewitt:

Yeah. You got to make sure it's undoable and they're into it.

Jack Butala:

Yeah. I'm skipping along the top of this topic.

Jill Dewitt:

Because we have one right now, that's majorly hard to undo and they're not into it. It's a double thing working against us. So then you have to decide is my time worth it?

Jack Butala:

I put this in here for a reason, among many, many questions.