Good Bad Cheap Property - Leave Bad Out

Jack Butala: Good Bad Cheap Property - Leave Bad Out. 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.

Jack Butala: Jack Butala and Jill DeWitt.

Jill DeWit: Hello.

Jack Butala: Welcome to our show. In this episode Jill and I talk about the good, the bad, and the cheap property. We're going to leave the bad out. Sounds like a Western.

Jill DeWit: It does.

Jack Butala: Great show today Jill. Let's take a question before we get all into it posted by one of our members on successplan.com, our free online community.

Jill DeWit: Okay. Matt asks, "I have a free property that I'm flipping for cash, and the buyer wants to put $1,500 down now and pay the remaining $3,000 in 2 months. His down payment would cover my costs of the acquisition. However, I don't like the risk of waiting on it if he makes the rest of the payments. Has anyone had any experience with this? Is it wrong to make that down payment non-refundable to reduce my risk and wasting time? He has agreed that he can't take position until paid in full. Thanks." Jack?

Jack Butala: Yeah. I mean, this taps into a larger concept that took me a while to get over when I started, but now I love it and live by it everyday. Have an acquisition criteria. Have a sales criteria and don't veer from it too far because it starts causing a lot of work and time for everybody in your organization, you included. It sounds to me like this is out of this person, Matt's, comfort zone here or he's got a lot of questions about it. If this happened to us I would just say no. I wouldn't even talk about it and that would be the end of it. I would say, "Here's the terms of the property and if you can't afford it or don't want to do it, then that's just the way it is."

Traditionally, all the stuff that we've learned about real estate all throughout our lives, a lot of it I think is antiquated based on the Internet. What you want to do is just put a machine in place and just let the machine do the work for you. When you have to start reviewing every deal, and talking to every seller, and really doing it the old school way where you're making a deal, then the magic of the Internet and how fast you can get these deals done and processed and the whole thing, it loses its value. I don't know what Matt asked for the property, but if he wants $1,500 down and $500 a month, and this guy only wants to do it at the end of 2 months, I wouldn't even take the call personally. I think, Jill, you probably have a different answer.

Jill DeWit: Well, you know, I was actually doing the math while you were talking. I see the cash part, and the $1,500 is just going to cover it. Here's a couple things I picked up on. Matt's more than doubling his money on this by the way. He paid $1,500 or less and he's selling it for 4,500.

Jack Butala: Yeah. He's tripling his money.

Jill DeWit: I know. Exactly. I thought was really kind of cool. You know what? Jack, I love it and agree with you. Here's my thoughts. You have a criteria. It's cash. It's like, "I won't have it in 2 months." Okay, but what I would do then Matt, if you're not comfortable with this, and I get it, I would say, "Call me in 2 months. If it's still available you've got your 4,500. It's a deal. It's still here." But then you know what Matt? It's still on the market and you might have a guy come along in 1 week with the full $4,500 and all you can say to the other guy is, "Sorry. That's just how it goes."

Jack Butala: Yeah. We're at a point now. I mean Land Academy and Land Stay, Land Stay is our real land company, where if they don't click on it on the Internet, or if we don't see it wholesale bulk, which is what we usually do, or if there's any kind of talking like this,