Transcript:

Steven Jack Butala:

Jack and Jill here.

Jill K DeWit:

Hi.

Steven Jack Butala:

Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala.

Jill K DeWit:

And I'm Jill Dewitt, broadcasting from the Valley of the Sun.

Steven Jack Butala:

Today Jill and I talk about getting rich in 2023.

Jill K DeWit:

Yay.

Steven Jack Butala:

Who doesn't want to talk about getting rich?

Jill K DeWit:

I'm just saying happy 2023. I'm excited. Aren't you excited?

Steven Jack Butala:

I'm excited about rich.

Jill K DeWit:

I love starting a new year. It's great. I'm really excited. Oh, I know you have a lot... This is all on your side of the sheet-

Steven Jack Butala:

Not really? Do you have a lack of enjoyment and fulfillment for getting rich?

Are you at a loss for words about making money?

Jill K DeWit:

You know what? I'm over it. It's overrated. Just kidding. Who flipping cares?

Steven Jack Butala:

I actually had somebody to say that to me one time, really long time ago. I don't know, this was like in high school when we were all sitting around talking with somebody's parents and they said, "Yeah, making a lot of money has really been a letdown in my life. There's a lot of other things-"

Jill K DeWit:

"It's only money. We'll make more." Just kidding.

Steven Jack Butala:

It's silly.

Jill K DeWit:

I know it's true.

Steven Jack 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.

Jill K DeWit:

Kim wrote, "I'm looking for advice on offer percentages for higher value properties. So I offered $85,000 for a 20 acre property. The seller wants $203,000 and comps are between $340,000 and $400,000 for this size / area in the last few months. I typically stick to 40% of comps as my absolute highest offer price to keep me in check when I call sellers back. For higher priced properties, am I right in remembering that a percent of comps may increase? For example, do I shift my highest percent up to 45 or 50% or more?"

I think they go down.

Steven Jack Butala:

Well yea-

Jill K DeWit:

For a bigger size.

Steven Jack Butala:

That's a good question.

Jill K DeWit:

Yeah.

Steven Jack Butala:

This is so... It's personal.

Jill K DeWit:

Yeah.

Steven Jack Butala:

In general, we're all used to doubling our money on just about every deal. In most cases, the deals that we do. I'm not bragging, I'm just saying how it is. Largely because of Jill's real specific acquisition criteria. It's more than that. So for larger properties, some people go for a dollar amount, like on houses. When we buy houses, we have to make $100,000. We might spend 300 to sell it for 400. And again, that's certainly not doubling our money at all, but it's a different deal. For land, we like to double, sometimes triple the money.

Jill K DeWit:

Mm-hmm.

Steven Jack Butala:

It's up to you.

Jill K DeWit:

I don't know. You know what my whole thing is, Kim? I need wiggle room in case anything goes sideways.

Steven Jack Butala:

Yeah.

Jill K DeWit:

So the numbers that... Can I see the numbers again? We're at 200 to sell for 340 to 400. Okay. That's not nuts. That's really-

Steven Jack Butala:

I love your 85 though.

Jill K DeWit:

No I know. 85 was awesome then you can't go wrong.

Steven Jack Butala:

Yeah.

Jill K DeWit:

So can you meet them in the middle? That's a very normal thing where you make an offer, they counter, we meet in the middle, whatever it is kind of thing. So that would be my first goal. But otherwise, I mean, how good do you feel About 340 to 400? If you screw it all up and you sold for 300 and you paid 203, are you okay with that? I'm okay with that.

Steven Jack Butala:

Yeah-

Jill K DeWit:

As long as it goes fast and I can't lose and I really want it to go fast because I'm tying up $200,000. Because if I'm tying $200,000 for a year, that's a no bueno for me.

Steven Jack Butala:

Yeah, me too.

Jill K DeWit: