How to Split Land Parcels Toward Huge Financial Success (LA 1723)

Transcript:

Steven Jack Butala:

Steve and Jill here. Welcome to the Land Academy Show, entertaining land, investment talk. I'm Steven Jack Butala.

Jill K DeWit:

And I'm Jill DeWit broadcasting from the Valley of the Sun.

Steven Jack Butala:

Today, Jill and I talk about how to split land parcels toward huge financial success.

Jill K DeWit:

This sounds like a lot at first.

Steven Jack Butala:

It is a lot.

Jill K DeWit:

I know.

Steven Jack Butala:

I like to divide the whole land business and the education process into high school and college. And so splitting property is your last year of a master's degree and your first year of a PhD.

Jill K DeWit:

Okay, that's kind of funny. And a lot of people come to us with an associate's degree or they're wrapping up their associate's, or they're thinking about their associate's and they're like, "I want to do this." Hold on everybody.

Steven Jack Butala:

I'm glad you bring that up because, and I'll tell you why they do that. Because for the same reason I originally said, "This is what I'm going to do, split property." It's that whole bottle case theory. You buy a case of beer for 12 bucks or $24. There's 24 bottles in there, and you sell it for $3 each. It's not hard to do the math that you can make $50.

Jill K DeWit:

Exactly.

Steven Jack Butala:

$50 net on a case of beer. So it's the same thing with land. You buy 40 acres for $10,000. You split it all up into one acre parcels. This is all theory. And now you've got 40 properties you can sell for $5,000 each. That's the intrigue.

Jill K DeWit:

I understand.

Steven Jack Butala:

Show me where to start, Jack. That's what they're saying. Before we get into it, let's take a question posted by one of our members on the landinvestors.com online community. It's free. And did you know that Jill and I personally instruct a handful of new and existing land academy members in a live class called Career Path? We do this every quarter. If you're buying, selling land and you think it's your career, or you think you want it to be, give us a call.

Jill K DeWit:

I would like to add, we are open right now and enrolling for session number four, and it starts April 23rd. We are doing it now on Saturdays. I'm so excited. Go to landacademy.com/careerpath and you'll find all the details there.

Steven Jack Butala:

This is not a commercial in any stretch. But I will tell you, one person a day is signing up for this. I expect that, what do we have? Typically 20 people.

Jill K DeWit:

I'm making it a commercial because it's good. Why do you always say that?

Steven Jack Butala:

I hate commercials.

Jill K DeWit:

I know.

Steven Jack Butala:

I hate selling and all that stuff. That's not what this is.

Jill K DeWit:

Okay.

Steven Jack Butala:

We're here to instruct everyone how to buy and sell land.

Jill K DeWit:

Yes, but we need to inform you.

Steven Jack Butala:

To a huge amount of success, so.

Jill K DeWit:

There you go. All right, Greg wrote, "I was wondering for those of you that send out neighbor letters first, how much time do you usually wait after sending the letters to list with a broker if you think you're not getting any interest from the neighbors?

Jill K DeWit:

I'm getting ready to close, and I guess I should get a drone video first. Send neighbor letters, post on Facebook, et cetera. And then the last step would be to list with the broker if none of that seems to get much interest. Or maybe I have it all wrong.

Jill K DeWit:

Also, when you do commit to list with a broker, you owe them commission no matter where the lead comes from. Right?" Okay. So first things first, I'm just jumping in here.

Steven Jack Butala:

I'll comment at the end if it's necessary because I know where you're going to go with this.

Jill K DeWit:

I love where you're going with this. A lot of properties are fit into this model. And I love the neighbor letter, get the drones, get the pictures,