Diversify Risk with Multiple Lines of Revenue (LA 860)

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:                            I'm Jill DeWit broadcasting from sunny Southern California.

Steven Butala:                   Today Jill and I talk about diversifying your risk with multiple lines of revenue.

Jill DeWit:                            We do that.

Steven Butala:                   I know, yeah. We've been doing that for years, so just the thought of it makes me happy.

Jill DeWit:                            Can you diversify risk with children somehow? Is there a-

Steven Butala:                   No.

Jill DeWit:                            ... plan? Darn.

Steven Butala:                   That's all pure luck I'm convinced.

Jill DeWit:                            Oh, okay.

Steven Butala:                   I think you have more control over successfully raising a dog than you do a child.

Jill DeWit:                            That is probably true. That's very funny.

Steven Butala:                   That so quickly got off of real estate.

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

Jill DeWit:                            Victor asks, "Does anyone have an experience selling land notes? I'm considering selling some land notes or person notes to free up some cash for new deals. Most of my notes are around $8,000 with $150 payments. What is standard to ask from a note buyer? Any advice or past experience would be great. Thanks." I love, by the way, some of these questions how people are just kind of thinking bigger. It's not just that online community is not just about land, but all kinds of other business things that you need to know. As a matter of fact, he's talking about a note. It could be a note for a dentist bill or something. You know what I mean?

Steven Butala:                   Yeah.

Jill DeWit:                            There's all kinds of notes and a lot of this stuff applies.

Steven Butala:                   Let's define what a note is essentially. That's a perfect place to start. If you're brand new, you may not know, but there's this whole ... If you're into real estate investment or any type of financial investment, it's more of a financial investment backed by real estate than anything else, then you know all about this. There's this crazy world out there and it all is rooted in the association with paper and real estate. There's all kinds of paper and things that can go right and wrong with the paper part of the real estate. When you look at the piece of real estate, it looks fine.

Steven Butala:                   All kinds of things that can be going on in the backend, ownership problems, clouds on title, people aren't paying their mortgage, maybe that was a bad market in the place, legal issues. There's lots of paper in the real estate. What this person has very intelligently done is bought a piece of real estate hopefully for very little, sold it to somebody on terms and they're making payments. They created a note. Let's just call it a mortgage note. This person is using the property somehow making monthly payments. After about six months or so, you have a financial instrument that you can do stuff with.