Jack Thursday - 5 Things I Refuse to Spend Money On (LA 1761)

Transcript:

Steven Jack Butala:

Steve and Jill here.

Jill K DeWit:

Howdy.

Steven Jack Butala:

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's Jack Thursday and I'm going to talk about five things I refuse to spend money on. I should have called it, refuse to spend too much money on. Some of these are really unavoidable.

Jill K DeWit:

I got some that are just automatic, I can think of.

Steven Jack 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 don't forget to subscribe on the Land Academy YouTube channel. Comment on the shows you like.

Jill K DeWit:

Dave wrote, "I've got the VP of Business Development for a large senior living community asking me to birddog suitable land for them. Anyone ever indulge something like this by actually sending a mailer in an area with buying criteria that might be different than what you would normally do otherwise? The risk seems pretty obvious, but the upside could be pretty big. I'm thinking. What do you all think?"

Steven Jack Butala:

I started my career on this very thing, in the very early '90s, buying and selling long-term care facilities and associated companies, and land even, to people who already own long term care companies. So I responded to this person in great length in Discord, and I said, "Yeah, I would do it. However, here's a few things that I learned that you really need to do before you get too excited about it."

Steven Jack Butala:

If it's a nonprofit group, we've done this, Jill and I have done this for people, apartment owners, in Los Angeles with mild success. And I only say mild because mild, not extreme success, because Jill and I got really frustrated with the amount of time that. Just know that it's a client. When you're buying property on behalf of yourself, you can make a decision really quickly.

Jill K DeWit:

Yep.

Steven Jack Butala:

When you're buying property on behalf of anyone else, especially if it's an organization and there's multiple people making a decision.

Jill K DeWit:

They've got to love all over it and feel it and I can't take it.

Steven Jack Butala:

So, mild success, But if you're really, really young and you're super ambitious, you can get a mailer out. I'll tell you what's great about senior living or any specific use type property like this, maybe properties for subdivisions. These people live and die by these acquisitions so they have to make a decision. So you got that going for you. Number two, they're very specifically zoned. So you can do a mailer, in an entire state, if you've got real good data, assessor data, for that specific zoning, like people who want trailer parks. That's specifically zoned. RV parks, very specific zoning. Self storage and on and on and on. So when you find a client that's on a real aggressive acquisition schedule, it's not hard to put those things together.

Steven Jack Butala:

If they're for-profit group, you need to find out who's making the decision and you need to sign a contract that says, "You're going to pay me 2% of whatever you buy, whatever I send you. And I'm not going to represent you in this transaction in any manner, because I'm not a licensed real estate agent."

Steven Jack Butala:

If it's a nonprofit group, and I did the majority of work myself long time ago for nonprofits, you really need to put a suit on and go to the next board meeting and find out, take their pulse about how thirsty they are for doing acquisitions. Because nonprofits all say they are. They want to expand and do better and spread their mission and the whole thing. But when it comes to reality, the vast majority of the time is that they just don't have the [foreign language 00:03:26] to do what a for profit company does...