Flip Houses or Land? (LA 965)

Transcript:

Steven Butala:                   Steve and Jill, here.

Jill DeWit:                            Hello.

Steven Butala:                   Welcome to the Land Academy show, entertaining land investment talk. Get me back in the frame.

Jill DeWit:                            Yeah.

Steven Butala:                   I'm Steven Jack Butala.

Jill DeWit:                            And I'm Jill DeWit, pulling Steven closer to me today because we just look so good in blue. What am I saying? Jill DeWit, broadcasting from sunny Southern California. I got all goofed up there. That's really funny.

Steven Butala:                   Today, Jill and I talk about flipping land, or flipping houses.

Jill DeWit:                            Okay.

Steven Butala:                   It's a very basic, short topic.

Jill DeWit:                            And it's not a ... You don't ... Go ahead. I'm sorry.

Jill DeWit:                            It's not an either/or.

Steven Butala:                   Here's a spoiler alert. You should do both, and we'll tell you why. Because, it's the same thing.

Jill DeWit:                            Exactly.

Steven Butala:                   The whole thing ... Hey, if you don't want to listen to the whole show, I can summarize it for you right there. We're data people. We're expert data people in our group. That's what we strive at. The fact that we sell land, or buy land through using and manipulating data is almost, not incidental, but it's not as significant. Why not just roll it into houses. It's the same thing.

Jill DeWit:                            Exactly.

Steven Butala:                   There's a couple more steps on the due diligence side, and the sell side that we'll cover, but in a lot of ways, I think it's easier.

Jill DeWit:                            Thank you.

Steven Butala:                   We'll get into the details-

Jill DeWit:                            You don't need me now, do you? I'll see ya.

Steven Butala:                   Hey, before we get into it though, let's take a question posted by one of our members on the landinvestors.com online community. It's free. Before Jill starts, I have to warn you, this is a very long question. It's very technical about RealQuest, and Kevin, our longtime moderator ... Thank you, thank you, thank you, Kevin. We all thank you. Answers it perfectly at the end. Go ahead, Jill.

Jill DeWit:                            Okay. I'm getting ready for it here. Matt asks, "Hey, everyone. I have a market where I looked at all the for sale properties, and determined that they're all very consistently between 4.4 to 5 acres, to five acre lots, i.e., $20,000 to $30,000."

Steven Butala:                   The acquisition price, $4000 to $5000 per acre.

Jill DeWit:                            Okay, thank you.

Steven Butala:                   For five acre lots.

Jill DeWit:                            Okay, thank you.

Steven Butala:                   You know what, I'll ... You want me to read it?

Jill DeWit:                            Yeah, would you please?

Steven Butala:                   It's really-

Jill DeWit:                            I don't know the-

Steven Butala:                   I know what he's getting at here.

Jill DeWit:                            Okay, cool.

Steven Butala:                   Consistently between four and a half to five thousand dollars per acre, for five acre properties, i.e., $25,000 to $30,000 sale value. So he's purchasing for four to five, selling for 25 to 30. However,