Beginner & Intermediate Groups of Land Academy (LA 861)

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 am Jill DeWit, broadcasting from sunny Southern California.

Steven Butala:                   Today Jill and I talk about the beginner and intermediate groups of Land Academy. You know, I was thinking before we started this that these groups kind of form themselves.

Jill DeWit:                            It's true.

Steven Butala:                   Everybody in our group was a beginner-

Jill DeWit:                            True.

Steven Butala:                   And they just moved on to the ... they just got better at it. So what could be better than that? Just like-

Jill DeWit:                            And they need different things now.

Steven Butala:                   Yeah, and so do Jill and I.

Jill DeWit:                            Yeah.

Steven Butala:                   Which is-

Jill DeWit:                            I'd love to hear in a few minutes what you need here, Steven, and what you don't need anymore.

Steven Butala:                   I'll be happy to cover that.

Jill DeWit:                            I know.

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. As you're listening, please drop your questions into the comment section below.

Jill DeWit:                            Luke asks, "I was looking through some surveys today around some land I have. I see others are buying smaller land than mine for more money. They are splitting them up five ways with a survey. They are drawing in easements to county roads. They are adding water well sites to the easements. They are drilling a water well and selling the lots. I talked to some guys doing this. They are doing well sharing contracts. They have the first one developing to pay for the pump and plumbing, etc. The second pays all the costs, 1/5, then 1/3-"

Steven Butala:                   This is brilliant.

Jill DeWit:                            "Pays all the less, the 2/3 costs are split until all the costs are split five ways." Oh, is this good? "It got me thinking, would you guys mail on this process?"

Steven Butala:                   Yeah.

Jill DeWit:                            "Either carry it out or sell the land with the plan. What pitfalls do you foresee? Do you think I can sell land contingent on a water well and then get it drilled and paid for out of title? Sell one lot to pay for the land, one to pay for the well, and then the three for profits?" I like that one the best. "The economics look good. Timely, not very long. Am I crazy?"

Steven Butala:                   No.

Jill DeWit:                            Yeah.

Steven Butala:                   This is a perfect example of now intermediate to advanced rural vacant land. What you're talking about is a development project-

Jill DeWit:                            Right.

Steven Butala:                   Albeit short timeframe and very inexpensive compared to let's say developing a commercial piece of property in an apartment building, or a strip mall, or a regional mall.

Jill DeWit:                            Yep.

Steven Butala:                   But how many people are doing this? Very few.