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House Deals Made as Easy as Land Deals (LA 1680)

Transcript:

Steven Jack Butala:Steve and Jill here.

Jill K DeWit:Hello.

Steven Jack Butala:Welcome to the House Academy Show. Entertaining real estate investment talk. I'm Steven Jack Butala.

Jill K DeWit:And I'm Jill DeWit, broadcasting from the valley of the sun.

Steven Jack Butala:Today, jill and I talk about house deals, made as easy as land deals. Is there really, such a thing?

Jill K DeWit:Yep. You know what's funny? I'll share one story with you now. And then I have another story for in a minute. Well, first of all, happy Career Path Day, for those of you who are with us and joining us in Career Path, today is day one day. One of the rest of your life.

Steven Jack Butala:Jeez, that's cheesy.

Jill K DeWit:I know, isn't it.

Steven Jack Butala:Something's probably cheesy.

Jill K DeWit:It's stupid. I know.

Steven Jack Butala:Who else walked up to me and said, you are cheesy. Some people have said a lot of stuff to me.

Jill K DeWit:I'll do it.

Steven Jack Butala:A lot of crazy stuff to me, but not you're cheesy and fake and this doesn't work.

Jill K DeWit:Well, I never say you're fake, but sometimes I say goofy. I do. I did call Aaron a goofball the other day. So anyway, it was funny, because this whole show is, house deals made as easy as land deals. So last week, and I was talking to one of the attendees who's in Career Path with us, starting today. He was talking about how, two or three years ago, I think that they were three years in now. He's adding land to his portfolio, but they were doing all houses. Started year one doing one house, year two was six houses. And then year three was 145 houses. Well, here's what the difference was. And the money was so much better. But year one, they were doing it all wrong. They were doing the renovations themselves.

Steven Jack Butala:Yeah.

Jill K DeWit:And they got one done. Year two, he and his partner got six done, because again, they're doing renovations. And then they realized, why are we doing this. Year three, they transitioned to what we're about to talk about today. And they're like, "I'm not doing any renovations. I'm buying it, selling it quickly, and moving on", kind of thing. And that's how they went from six to 145. He's like, "And this year we want to do 250 or something like that." And it's a small crew, but they've got it.

Steven Jack Butala:Yep.

Jill K DeWit:It's good.

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, and don't forget to subscribe, seriously. Subscribe on the Land Academy, YouTube channel and comment on the shows you like.

Jill K DeWit:Luke wrote, "If I have a signed purchase agreement and the owner gets a better offer in the mail for other land buyer. Do I have any recourse?" I think we covered this question last week.

Steven Jack Butala:I think we did too.

Jill K DeWit:So I'm just wondering, this is funny. So let me think of a different question that I can sub in here-

Steven Jack Butala:About houses.

Jill K DeWit:Real quick, that can solve our little typo.

Steven Jack Butala:God, whoever produces this podcast really needs to-

Jill K DeWit:Get their act together.

Steven Jack Butala:Yeah. Geez.

Jill K DeWit:Wonder who that is.

Steven Jack Butala:Come on, podcast producer.

Jill K DeWit:All right. Here's a house question for you. I'm going to say, Jill asks, "What would be a fair dollar amount that I should expect to get on a house flip. I understand the way you guys do it. You buy houses, you mark it up. You sell it to another investor. What dollar amount makes sense to you?

Steven Jack Butala:Between 50 and $100,000, if you're funding it yourself. Here's an example. Buy in a market that, where, it all done, it's $600,000 let's say, five to $600,000. You're buying a house for 200, because it needs a lot of work. You buy it for 200, 250, sell it for 300, 350.