Finance Friday with Steven, Jill & Justin (LA 923)

Transcript:

Steven Butala:                   Steven Butala here with Justin Sliva. Welcome to The Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala.

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

Steven Butala:                   Today, like every Friday, Jill and I talk with guest, Justin Sliva, about the transactions that we're doing this week, and general banter about [inaudible].

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:                            Ben asks, "I'm thinking about trying a mailer for some infill lots and just gathering data at this point. I've ran across a legal description for a residential vacant lot that seems weird to me. S10886-Whitestone, condo unit four, 1.01% common interest. Nothing has been built here, yet no improved property value. But description says it's a condo and this person owns Unit Four. So, did this person buy a condo from a builder before it was built and has a deed for a land or a piece of it? Not really sure what to make of it. Thanks."

I know what I think it is.

Steven Butala:                   Can't wait to-

Jill DeWit:                            [crosstalk]

Justin Sliva:                         Guys, tell me if I'm wrong ... I'm totally guessing here, but I feel like it's the common area in the condo that everybody owns a percentage of that their HOA pays. And that could be it.

Steven Butala:                   That's a possibility.

Justin Sliva:                         Okay.

Jill DeWit:                            I think it could be a timeshare, because of a timeshare, you can own a percentage too. Because you might own a 12th of it, because you might own a month of it, or you might own a week.

Justin Sliva:                         Yeah, so that would be 52 weeks a year, so you'd own 1/52. What would that percentage be ... it could be it as well.

Steven Butala:                   That's very viable. What it could also be is it could be land, that somebody subdivided and made it into a condo. We've all seen detached ... What looks like a house was actually a condo. And then we've also seen undivided interests/common interests ... Okay, here's the point. We're all saying some version of the same thing.