Flip Acreage then Finance Smaller Lots

Jack Butala: Flip Acreage then Finance Smaller Lots. Every Single month we give away a property for free. It's super simple to qualify. Two simple steps. Leave us your feedback for this podcast on iTunes and number two, get the free ebook at landacademy.com, you don't even have to read it. Thanks for listening.

J. Butala: Jack Butala with Jill DeWit.

J. DeWit: Howdy. Happy Friday!

J. Butala: Yeah, I was going to say the same thing! Welcome to the show. What a crazy week.

In this episode, Jill and I talk about flip acreage for the cash, and then finance the smaller deals out to establish that income stream. Cool show, man. This is a good little peep to our basic roadmap.

Before we get to it, first lets take a question posted by one of our members on the LandAcademy.com online community- it's free!

J. DeWit: Okay. Luke ...

J. Butala: Luke, Luke, Luke!

J. DeWit: Luke, Luke, Luke! It sounds like we have 80 Lukes.

J. Butala: We have two vocal Lukes for me.

J. DeWit: Luke asked, "When pulling data, is there a difference between land that is labeled as vacant in county data, versus land that is 0% improvement value? If not, why not just select all the property types in 0% improvement value?" What a smart question!

J. Butala: This is a PhD level question ...

J. DeWit: Yes!

J. Butala: ... and I know it's a ...

J. DeWit: I know who it is too!

J. Butala: ... the newer Luke. And that's a great question, I'm going answer it in detail, probably to the point where Jill's bored.

J. DeWit: I have a magazine right here somewhere, hold on.

J. Butala: So when you go to pull data out of RealQuest, which is part of our membership subscription, RealQuest Pro, he's exactly right.

I'm going to answer the first question, what is the difference between vacant property, that's the use, so there's uses of property- vacant property, single family residential, agriculture, heavy industrial, cemetery, hospital, there's tons of zoning/use types in any given county. So he's asking what's the deal? Why I just pick all the vacant property that ... he's asking vacant county data versus land with a percentage on it.

So the second part of this is that zero improvement value means this: there's no assessed value for any improvement on the property. This could be in the middle of town, right in the smack middle of an urban area, there could a completely unimproved property and the improvement value is zero. Doesn't have to be a structure, improvement value could mean the sewers are hooked up to it, or there's a slab on it for a mobile, that's improvement value and it's going to be assessed that way if the assessor finds out about it. Which is, by the way, why you have to pull permits. That's the reason the county really wants to pull permits, one of the main reasons is so they tax it properly.

So, why not just say all types with with zero improvement value? You can, and some people do. You're going to send a lot of mail out that you know people are just going to crumble up and throw away, and that's the reason. You want to surgically strike, you want to spend the smallest amount of money on postage to get the greatest yield. And for us, I have a thing with industrial property, we never buy it. I never even send a letter to it. So I take all the industrial property out, I take all the cemeteries out, I take all the hospitals out, so that's the reason. It might be zoned for healthcare facility, but have 0% value, you don't send that person a letter. You're just wasting 50 cents or whatever it costs, 48 cents.

Go ahead Jill.

J. DeWit: I say, think about who your buyer is, that's the real thing. Most of what we're doing, we're buying for someone who's going to use it for a retirement, for cabin, it's some kind of recreational use usually. Or full time living. So think about your buyer. Now, if you're really out there buying for a hospital or an airport,