How to be a Full Time Investor on Part Time Hours (CFFL 420)

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

Jack Butala:                       Jack Butala with Jill DeWit.

Jill DeWit:                           Hi there.

Jack Butala:                       Welcome to our show today, this Friday. In this episode, Jill and I talk about how to be a full-time investor on part-time hours. All these shows this week are Jill's brain children. Before we get into this one, though, let's take a question posted by one of our members on a landinvestors.com online community. It's free.

Jill DeWit:                           Matt wrote and asked: "I have a few properties that I put through a title company coming to me tomorrow. Few questions for those more experienced with title policies." Awesome. Oh this is a good question. "One, how do you advertise these properties differently than properties that you don't put through title. Two, how much more is a title policy actually worth? Say I bought 15 acres for a couple grand. And would list or sell it for $15,000 to $18,000 without a title policy. Could I sell it for $20,000 to $25,000 with one? Thanks in advance."

Jack, you want to start?

Jack Butala:                       A slight 10 seconds of background. There's two ways to buy property. Directly through recording the deed yourself. Two guys in a coffee shop put a deal together on a napkin. And the second way is through title or through, if you're in the eastern part of the country, with a lawyer. Title was designed to avoid using lawyers, but that's a whole different topic. There's those two ways.

Matt, here, decided to buy properties through title. And what he's asking is are they A, more valuable somehow and B, how do you sell them if so? If they're more valuable, how do you advertise the fact that you did it so you can get more money? That's really what I think he's getting at. And we do this all the time. In fact, our rule is if we pay more than five grand, in general, we put it through title, as you stated here. We have title close the deal for us.

We have a slot right in Land Pin where you can download or upload your PDF for your title policies so that everyone can read it and see it and know that you did it, full disclosure. That makes it more valuable. Does it make it more valuable? Yeah. Does it make them $20,000 more valuable? I'm not sure. I will tell you that if there's somebody that's serious about buying real estate, vacant property for whatever reason, and they're looking at your property and six other properties around the area, and you got a nice presentation put together with a full title policy and they can see that you bought it a month ago or a week ago and justify the price and it's priced right, they're going to buy yours.

Jill DeWit:                           That's what I think. You can't mark it up another 25% because of that.

Jack Butala:                       Right. A lot of times people, if they really know what they're doing, they'll just say, "I know you didn't buy it on title, but I would like to buy it so we're going to go back and do it together."

Jill DeWit:                           Get the title.

Jack Butala:                       Yeah.

Jill DeWit:                           And that's okay.

Jack Butala:                       And that's fine. We do that all the time and we ask them to pay for it. But I love the idea of attaching a file to your posting with a PDF of the whole file so they can read it.

Jill DeWit:                           I think it's the greatest thing on the planet, I agree. I love that. And put it up top. We put it in the description sometimes, "purchased with title insurance," so people know right away. Or at least at the very top line. Because that's a nice, important piece. And that's, like Jack says, that's something that yours will stand out.

Jack Butala:                       You know what Carfax is?