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Jack: Jack Butala with Jill DeWit.

Jill: Hi.

Jack: Welcome to our show, today. In this episode, Jill and I talk about house [inaudible 00:00:06], house flipping versus land flipping and some of the differences and pros and cons. Here's a hint: they're both good. Before we get to it, let's take a question, posted by one of our members on Land Academy's free online community.

Jill: Cool. How do I get to that free online community?

Jack: LandAcademy.com.

Jill: Okay, Chris asked, "What is the significance of capping the assessed value so low?" Chris is obviously in our world, so he knows to ask this question. "Is it not worth it to mail to the higher assessed properties?"

Jack: One of the shows we did this week was called Mailer Yield. I think it was yesterday. What mailers yield better results?

Jill: Right.

Jack: Maybe it was Wednesday.

Jill: Mm-hmm (affirmative).

Jack: Happy Friday, by the way.

Jill: Thank you. Happy Friday.

Jack: The significance ... What we teach for beginning people is to take the bottom 20% of the assessed value this. Imagine this. Imagine a county, maybe the county that you live in. Now take all the property in that county, every single property, take out all the commercial real estate. Take out all the houses. Take out all the government owned land. Picture it in your head. Now you're left with vacant property, vacant, unimproved property. Now take all the properties out that aren't five acres, or let's just say we're going to send a mailer in that county of all the vacant property that's between five and eight acres.

Jill: Okay.

Jack: All right. Now, take the bottom ... They have an assessed value between a million dollars and ten dollars. You want the bottom 20% only, because you want to send letters out that are undervalue, really under value, like 40% of what they're worth, maybe less, so the strike percentage on that lower value property's going to be better. Does that make sense?

Jill: Yeah.

Jack: This is imperative. If you do not do this, the first time out, and you don't hit your numbers, like we talk about. For every hundred vacant properties that you send out, your going to buy one. For every 2,000 offers you send on houses, you're going to buy one. You will not achieve those percentages if you don't do it in the bottom 20% of assessed value.

Jill: Right. Well, like Jack said, you gave a range. You know, am I going to send an offer to someone with a property with a half a million assessed value? No, and offering a couple thousand? That's not realistic. You're being realistic, too.

Jack: Five acres in the middle of a city, that's completely unimproved is assessed way differently than five acres in a very rural area.

Jill: Exactly.

Jack: You want the five acres in the rural area in the beginning. The second part of his question is, "Is it not worth is to mail higher assessed value properties?" Heck, yes. Go ahead anddo that. Your strike percentage is going to be less. I've even done this on accident before ...

Jill: It's true.

Jack: ... and we bought property.

Jill: Yeah, I mean it's true. I have bought property for ... Gosh, the guy paid twenty-something thousand for it, tried to sell it for forty-something thousand for it. I bought it for $1,900. I mean, come on.

Jack: That's right. I bought huge acreage properties in really urban areas at our prices.

Jill: Accidentally.

Jack: When you're a little bit more established in your career, and your real comfortable with the mechanics of buying property and the whole thing, absolutely, start going over to some of the ... Go after some of those kahunas.

Jill: Well,