How to Decide to Buy a Property or Not

Jack Butala: How to Decide to Buy a Property or Not. 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 with Jill DeWit.

Jill DeWit: Hi.

Jack Butala: Welcome to our show. In this episode, Jill and I talk about how to decide to buy a property or not. What's the decision making process? Great show today, Jill. Let's take a question posted by one of our members on Success Plant dot com, our free online community.

Jill DeWit: Cool, all right. Bay asked "how do you explain to a potential buyer that it is only an option deal for you? Should you tell the buyer the truth or just say this is your parcel?" Good question.

Jack Butala: Excellent.

Jill DeWit: I put a note in Success Plant by the way telling her to listen to the show.

Jack Butala: Awesome, well good.

Jill DeWit: So she can get most of it. I answered the question. By the way yeah, it is our free online community so we go in there and answer stuff. I did answer the question for Bay and I also said "hey listen to the show because you'll get more detail.

Jack Butala: Jill and I were lucky enough to meet Bay in person. One of the few people, actually the members that we have do far anyways. She's just an incredibly bright, motivated person. I'm sure she's going to do great.

Jill DeWit: Oh yeah, smart, very smart.

Jack Butala: 30 seconds of background. Sometimes we encourage members, and we do it ourselves all the time, to do an option versus an outright purchase. The difference is this. Instead of actually funding the deal, let's say you got a 40 acre property you're going to buy it for 4 grand, but you're just not comfortable with that price. Maybe the seller wants 6 grand instead of 4 and it's a little out of your comfort zone, but you're pretty sure you can sell it probably at least double your money. We encourage people to do an option, and to answer Bay's question, to be incredibly up front about it and honest and say "hey seller if you're not in a hurry, you want to get this thing done within 6 months or 4 months I can get you your 6 grand but I'd like to option it. I have a marketing machine and I belong to Land Academy, 100's of thousands of yada yada yada. If you would like to sign this simple agreement that says you will not sell it for a certain amount of time, let's say 6 months, I will fund it then."

To answer your question, fund it then after you find a buyer and it's pretty easy usually if the deal's put together properly. Pretty easy to find a buyer pretty quickly, way earlier than 6 months. Always, always, always be completely up front and honest with everybody in general, but specifically with her question with the seller, about whether or not you're optioning the property. That's how you earn people's trust.

Jill DeWit: You know, I went in too and said "I personally, if they ask, I'm always, always honest, but am I going to sit and tell them the whole deal structure and the thing like that if they don't even ask? No, because often time they don't. They're disinterested in the parcel, seriously.

Jack Butala: I know, Jill. I'm not laughing at you. I agree.

Jill DeWit: They're interested ... Yeah, no, when I have a buyer they don't even know to ask, kind of thing. They're interested in the parcel and the prize and what they're going to do with it and I answer all their questions. That's what I answer. I said you know Bay, I wouldn't volunteer any stuff. You don't need to bore them with that. It's an issue, but should they ask anything, absolutely. No one's going to say "do you own it?" Kind of thing, or "what's the deal" and if somebody says yeah, well you could say it's under contract and yeah, this is the price and I'll make it happen in X days...