Jack and Jill Live Tomorrow in Los Angeles

Recording Location: 33.840103, – 118.391379

Jill DeWit:                           Hi.

Jack Butala:                       Welcome to our show today. In this episode Jill and I talk about Jack and Jill Live tomorrow.

Jill DeWit:                           I know, happy Tuesday.

Jack Butala:                       Yeah. Tomorrow in Los Angeles actually.

Jill DeWit:                           Yeah. Hermosa Beach even cooler.

Jack Butala:                       How much time have you put into really planning this thing?

Jill DeWit:                           A lot, a lot, this is going to be big.

Jack Butala:                       I’m excited about it, part of the Jill live thing.

Jill DeWit:                           Oh yeah, it’s going to be awesome.

Jack Butala:                       That’s great. Well I have no idea what I’m going to talk about but maybe we’ll find out on the show. Before we get into it let’s take a question posted by one of our members on landacademy.com. It’s free.

Jill DeWit:                           Okay. Steven asks this question: “When you close with a title company, and the transaction amount is the larger number, do you use transactional funding or double close to keep the buyer and seller from seeing how much you’re making? Does it matter?”

Jack Butala:                       What do you do?

Jill DeWit:                           This is a good question. You answered this the other day, I have to say, on our call and your answer was perfect because if you’re not front and honest, it probably will come out and you’d rather just be upfront and honest with it.

Jack Butala:                       Want me to to answer it again?

Jill DeWit:                           Yes.

Jack Butala:                       I’ll tell you. We do deals now. We do all types of real estate transactions but when we do a dual-closing or a double closing or depending on where you are in the country, or what your age is, it’s called different stuff. I’m a huge fan of just being incredibly transparent. Let me give you an example of a recent transaction. Jill and I are doing and have done a couple of deals, pretty large deals, in Southern California like in Santa Barbera County. They’re ranches and they’re very, very expensive. These are ballpark numbers. Buy for cash, for six to eight-hundred thousand bucks, and sell it to somebody who with intent is going to resell it. It’s still way below market value and sell it for let’s say nine hundred, all right? We make a hundred thousand bucks. The person that’s purchasing it from you through [inaudible 00:01:59], they’re going to-

Jill DeWit:                           They’re going to find out. It’s going to leak.

Jack Butala:                       I’m real upfront. If that really upsets the buyer, because let’s say the property’s worth 1.5. If that really upsets the buyer, that we’re making a hundred thousand and he’s going to make five hundred and he wants to make it all, that’s not the right person. That being said, if this person, Steven, here is brand new and he really wants to get the deal done, he may take a different approach. I used to do it much differently, a long time ago, for smaller deals.

Jill DeWit:                           Really?

Jack Butala:                       Yeah, but in this kind of transaction …

Jill DeWit:                           Because if it was a couple hundred bucks, no one’s going to care.

Jack Butala:                       For a couple thousand.

Jill DeWit:                           A couple thousand, right.

Jack Butala:                       Let’s say you’re buying a for...