How to Hack Your Time Management (CFFL 494)

Transcript:

Jack:                      Jack with Jill.

Jill:                          Hey.

Jack:                      Welcome to our show today. In this episode Jill and I talk about how to hack your time management. What the heck is he going to talk about with this? Before we get into it, let's take a question posted by one of our members on landinvestors.com online community. It's free.

Jill:                          Okay. Matt asked risks ... Oh, this is the topic of it, of this thread, which is with a question. Risks associated with letting people build an owner financed properties. Okay, so here's the question. I have a number of folks who have purchased properties from me that are coming back and asking me if they can make improvements on the properties before they pay off your loan to me.

Jack:                      Congratulations, by the way Matt. You're doing everything right. If they want to build on a property that you sold them you're doing something right.

Jill:                          Mm-hmm (affirmative).

Jack:                      Go ahead, Jill.

Jill:                          Okay. I have it on all my contract that they cannot not make improvements on it until the loan is fully paid back and they have the deed for the property in hand. Some people are coming back and just wanting to clear the property of underbrush, some want to add a slave for their our RV, and others want to clear the property and build a home on it so they can move there. What risk a, I incurring if I allow folks I have on terms to do these things?

Jack:                      Can I go first?

Jill:                          Yeah.

Jack:                      I can't say this ... I'm going to say it for more times probably before we're done answering this question. Congratulations for the types of property and the deals that you are doing where they want to build on it and they're visiting the property, and I love it, and they're thanking you, and they're calling you. You are doing every single thing right. The flip side of that is they go out, and see it and they hate it, and they want their money back. All right. So, that's a problem. You don't have a problem here. You have a fantastic situation for several reasons. What risks are you incurring? None, in my opinion. And I mean none. The only thing they can go wrong here is that they dump on the land, right? They put some, I don't know, a refrigerator with Freon in it or some messy environmental scenario but that's the only bad thing. So, now that we got the bad stuff out of the way, how do you win here? Let's say they don't pay the loan off. Now you own all the improvements that whatever they did to it, you own it.

Jill:                          Mm-hmm (affirmative). I love it. I'd love to have a slab on it that somebody did to drive their RV up on it. So I think that's the coolest thing on the planet.

Jack:                      The more time they spend there, the more stuff that they do and they like it or whatever happens the higher possibility that they're going to pay the loan off. In fact, I would even venture to say this, and I've done this in the past with great success, "Oh, you know what Mr. Smith? If you really want to build a house, you want to clear the brush, an RV and you're going to use a property like you really intended, what do you say we cut a deal?"

Jill:                          I was going to say the same thing. Yeah.

Jack:                      How about I give you a 25% off if you just pay it off.

Jill:                          Yep ,if you can afford to do that, then you can afford to do this.

Jack:                      What do you say we just re-cut the deal and now you make 10 equal payments of $1000? All right, in 10 months and I'll deed it to you. Or something like that.

Jill:                          Exactly.

Jack:                      If you have an owner that...