How Much Money Is Needed to be an Investor (CFFL 417)

Recording Location: LAT (i.e.  33.488237)  (LONG i.e.  -111.921540)

Jack Butala:                       Jack Butala with Jill DeWit.

Jill DeWit:                           Hello there.

Jack Butala:                       Welcome to our show today. In this episode Jill and I talk about how much money is really needed to be an investor, a land investor that is.

Before we get into it, though, let's take a question posted by one of our members on the landacademy.com online community. It's free.

Jill DeWit:                           You got it. Soon to be land investors.

Jack Butala:                       Yeah.

Jill DeWit:                           This is a good one. Thank you, Jack. First person asked the question, and then the second part I'll tell one of our people weighed in and answered the question, and then Jack and I will add in on our comments. So, here we go.

Rob asked, "I'm a real estate broker, full-time, who invests on land on the side. I would be curious to hear any strategies real estate agents are using to cultivate listings from your investment mailings. As I am sure you know, I come across a lot of property that is not a good fit on the investment side because of the numbers, however, many of these properties would make nice listings. Any thoughts on turning that corner?"

Our first ... our person weighed in, Adam said, "I think it's a great idea. I have a good relationship with a realtor in one of the areas where I invest. When I talk to people and they want way, way more than I can pay, and they're admen about getting retial, I suggest they list it with a realtor and I recommend my friend. I pass the listing over to her, she helps me by taking pictures of various parcels in the county where she works. Everyone wins."

I have pretty much nothing to add.

Jack Butala:                       The reason I put all this in here is because I have nothing to add either. I think you align yourself the same way that you do with a buyer. When you wholesale houses, you align yourself with a couple of good buyers and you say, "Hey, do you want to do the deal?" They say, "Yeah." Then, you just walk away.

Jill DeWit:                           I would add one thing because this goes both ways because I have the opposite. I have not been doing what Adam does, but what I have been doing is aligning myself with a realtor who gives me listings that are too small for him.

He's often ... I'm like, "Dude, why don you want this? Why don't you buy that?" He's like, "Oh, no. It's not my thing. I don't want to do it." It's a realtor that people come to him and they want to sell retial, and he says, "That's great but I won't take your listing just because there's not enough money in it for me."

Jack Butala:                       Let me get this straight-

Jill DeWit:                           So then he gives them to me.

Jack Butala:                       I know this goes on, but it cracks me up every time you bring it up. There's real estate that he's aware of, this agent, that's priced too low for him to make any money on it-

Jill DeWit:                           As a commission, for commission.

Jack Butala:                       Does that just reek defined irony?

Jill DeWit:                           Right. He says-

Jack Butala:                       "No, no, no, it's priced too low."

Jill DeWit:                           Then he gives them to me and I'm like-

Jack Butala:                       I don't want any low-priced real estate.

Jill DeWit:                           I'm like, "Well, then ... " I'm like, "Guy, why aren't you buying these yourself?" "Oh, no. It's not my thing."

Jack Butala:                       What's his answer to that?

Jill DeWit:                           It's not his thing. Some people ... I think that it's just people are on a narrow path and that doesn't meet his criteria.