How to Start Your Own Business and Not Fail (LA 1248)

Transcript:

Steven Butala:

Steve and Jill here.

Jill DeWit:

Happy Friday, F-R-I-D-A-Y. Sorry, I won't do that today.

Steven Butala:

Welcome to the Land Academy show, entertaining land investment talk. I'm Steven Jack Butala.

Jill DeWit:

And I'm Jill DeWit, broadcasting from sunny Southern California.

Steven Butala:

Today, jill and I talk about how to start your own business and not fail.

Jill DeWit:

I got some good stuff here.

Steven Butala:

So do I. It all comes down to one word for me, risk. And so...

Jill DeWit:

It's not on my list.

Steven Butala:

Not all people see things that are risky, so risk, everybody sees risk differently. That's really the takeaway from all of this. Well run through all types of businesses where I think there's risk and not risk, and you may see no risk and I see a ton of risk.

Jill DeWit:

This is cool. You did... Because this is just how we are. The way you look at it is all the pre-work, and I look at it like the actual day one. Now, what do we do?

Steven Butala:

exactly. So I actually have something to bring to this conversation. I was an investment banker for years, and the way that investment bankers and private equity groups look at in a value business is it's not like Shark Tank. I'll help.

Jill DeWit:

I clearly did not go to accounting school.

Steven Butala:

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 thank God you didn't.

Jill DeWit:

Which is why I have you.

Steven Butala:

Yeah, likewise.

Jill DeWit:

Thank you.

Steven Butala:

I've seen those accounting girls. That's not...

Jill DeWit:

Could you imagine? Remember I talked a couple of days ago about the people that you knew had the corporate look. That's not me. I don't have the bob haircut or my hair pulled back so tight in a bun. I can't do it

Steven Butala:

It's so serious.

Jill DeWit:

I'm wearing shorts right now. Sorry, I just accidentally scratched you. Jason wrote, "Hi guys. So I have done several self-closings and recently closed on a cheap desert property in Arizona. After selling me the property in her name, the customer tells me she has a deed in her deceased mother's name right next to it."

Steven Butala:

So, it's another property.

Jill DeWit:

Ooh. "And, she has her mother's will saying she is the executor. I told her I would look into it on how to write up this deed. This property is a $200 deal, so really no budget for a title company/attorney. There's only one other person on the will, a sister who has signed letter of authority to sell to me. Could I simply write up the deed and have her sign as executor, or possible have brothers sister quick claim their deed?" This is getting nuttier and nuttier and a little more confusing as we go, and it's making me nervous.

Steven Butala:

I'm going to answer, okay?

Jill DeWit:

Yeah. "Anyone had a similar situation in Arizona? If it's too much trouble, I will move on, but I hate to leave money on the table."

Steven Butala:

It's too much trouble. Move on. Here's the deal. This is a very com... I put this question in here. We've answered it probably 20 times over the years, but it's a very good question and it actually comes up. So if you're brand new, I don't want you to worry about it, but I want you to be aware of it. If you're a seasoned investor, listen to this. You already know what I'm going to say.

Steven Butala:

When people die, they have assets. If they don't do any type of estate planning... Most people who die have a will somewhere tucked in a drawer, and it says all my stuff goes to my daughter. Then they think they're done, and rightfully so, because no one's ever said anything different to them. That's what's in the movies and everything else. That's just not the case.

Steven Butala:

If there's a bunch of stuff in the garage, definitely, that covers it legally. If there's a car and the deceased mother,