Finance Friday with Steven, Jill & Justin (LA 938)

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 Butala.

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

Steven Butala:                   Today Jill and I talk about, talk with our guest Justin [inaudible 00:00:17] just like we do on every Friday about the transactions we're doing this week. Welcome, Justin.

Justin:                                   Hey. How's it going.

Steven Butala:                   Good. What's been going on this week?

Justin:                                   Oh man. It's been a busy week. We had the live event last weekend and great turnout there. It was, y'all came and spoke at it a little bit. To resume, we had some complications with the wireless but it was great feedback. 33 people total so it's huge, good time.

Steven Butala:                   Awesome.

Jill DeWit:                            What was the reason that people were there? Were they, did they need to get over a hurdle?

Justin:                                   Yeah. It was a big mix. We had some people that had just kind of read our E book and y'all's E book and then just didn't really know what to do next for land investing and happened to reach out as we were getting this ready. Two people that were wanting to get to talk to us, 35 year land appraiser and sub divider. We had the [inaudible 00:01:07] there, they came, father and son. Trevor, we all know Trevor. So his dad came in and they spent the morning with us and went over some case studies on appraising and the sub dividing.

Justin:                                   So it was a good mix. And that was one of the things of putting that together, was the worry of, do you add value for every person there? You don't wanna speak too high over people's heads to not having enough information. But it turned out really, really good. We got a bunch of people over the analysis paralysis that they have when they get, when you're looking at all the data and you're going, "What do I do with this?" And we got them over that and how to pick counties and states really fast and kind of, one of the things that I took back from that, it was like, 'Hey, I price for margin." And we've always talked about how I shop, is just margin, margin. This is what I wanna pay for acre and this is what I'm gonna offer. I want it to sell so I don't wanna offer and I worry about the spread there.

Justin:                                   So went through and did the whole country yesterday morning and for margin and priced every county in the whole country to see what margins were there. 115 counties in the country matched the margins I want and so that's something I'm starting to work through. I've mailed three counties yesterday. I've got another two on the desktop that I'm finalizing the pricing on. I'll probably get those out today or tomorrow.

Steven Butala:                   So what data did you make those decisions based on?

Justin:                                   Just the active market that's out there. So say if somebody wants to buy something, they wanna sell 15 hundred dollar an acre property. You're gonna offer a lot less than that, 25, 30, 35 percent of that. So the math is really easy if you take 15 hundred bucks an acre times 20 acres is 30 thousand dollars. So you just shop everything is 20 acre to 20 acre, under 30 thousand dollars by state and then it spits out property. And then you just look at the counties and say, "Okay, this county has potential." And go from there. It's super rudimentary. It's not super scientific. But it gets you a list, gives you a direction to start working in.

Steven Butala:                   It'll work.

Justin:                                   Yeah.