Being A Real Estate Agent Is Not A Career (CFFL 537)

Transcript:

Jack Butala:                         Jack Butala with Jill DeWit.

Jill DeWit:                            Hi.

Jack Butala:                         Welcome to the show today. In this episode, Jill and I talk about being a real estate agent and how it's not really a career.

Jill DeWit:                            We're gonna tick off a lot of people.

Jack Butala:                         It wouldn't be the first time or the last time. 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:                            Okay. Chris asked, "I'm looking at a county surplus auction inventory list." That's a mouthful. "And researching land I want to bid on. One of the property's descriptions from the county auction book reads, 'Vacant lot. Subject to apparent encroachment by structure. Half of a house.'" Seriously. You can't make this stuff up. I didn't say that. He wrote that, and they're right. So, Chris goes on to add, "I looked up the parcel number and the lot for auction or the pin number in this auction and the lot. Is a garage half of the house?"

Jack Butala:                         Good for you doing your research.

Jill DeWit:                            Is the garage half of the house? Got it.

Jack Butala:                         I see this kind of stuff all the time.

Jill DeWit:                            "The other half of the house taxes are owned by the county." Oh my gosh. At what point do we ... I would've run a long time ago, but anyway.

Jack Butala:                         Yeah, but no. This is good. I'm really glad that he asked this question, and I'm glad our producer chose it for us.

Jill DeWit:                            Right. "The other half of the house's taxes are owned by the county, but that portion is not up for surplus auction this year. It's a tax lien state. I dug even a bit deeper on the other half, and the taxes have been sold and taken back to the county twice over the past seven years. The caveat? This is a beautiful infill lot right on a golf course. I did drive by the lot."

Jack Butala:                         Wow.

Jill DeWit:                            "Do you have any experience with this type of question? My specific questions are ..." It keeps going. I was gonna say, "One, do I run?" No. "One, if I purchase the land with half a house encroaching and the county owns the other half, will I be able to sell my half?"

Jack Butala:                         Yes.

Jill DeWit:                            "Two, will I essentially own half a house?"

Jack Butala:                         Yes.

Jill DeWit:                            "Three, the property is a prime lot and there will be other more seasoned bidders at the auction. Should I run screaming and cross this one off my bidding list?"

Jack Butala:                         Yes.

Jill DeWit:                            "Retail is around $22,000 for the comps and the bidding starts at $600. Four, or just go for it and ask questions later?"

Jack Butala:                         No.

Jill DeWit:                            "I.e., hire a lawyer after I purchase." It's hilarious. "I suspect the answer is a combination of the above. But I welcome any direction. Thanks in advance."

Jack Butala:                         First of all, Chris-

Jill DeWit:                            It's hilarious Chris.

Jack Butala:                         ... you are exactly who we want in our group. You have done every single thing right. When you go to an auction, I mean it, and you've asked all the right questions, you've done your research, you even went and looked at the property; which I have to say most of the time, I've never done. So, kudos to you. This deal is too complicated no matter how profitable.

Jill DeWit:                            Right.