Transcript:

Steven Jack Butala:

Jack and Jill here.

Jill K DeWit:

Hello.

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 how there's only six ways to get rich.

Jill K DeWit:

This is going to be good. I'm.-

Steven Jack Butala:

Which way.

Jill K DeWit:

Really curious.

Steven Jack Butala:

Which way do you choose? Before.-

Jill K DeWit:

Awesome.

Steven Jack Butala:

We get into it, let's take a question posted by one of our members on the landinvestors.com online community, it's free. Don't forget to subscribe on the Land Academy YouTube channel and comment on the shows you liked.

Jill K DeWit:

Matt wrote, "Hi all. I'm working on pricing zip code that varies greatly in prices. Section of area that I pulled in the zip code is close to a downtown, and the other half of the zip code is in a more rural area. How do you price an area like this? If I do it just by the zip code, the addresses close to the downtown area are under priced. And the addresses further out are overpriced."

Steven Jack Butala:

Matt, this is brilliant. If you are in Land Academy and you're doing the dishes right now, and listening to this. Or you're driving in a car and thinking about something else, now's the time to stop doing that. Now's the time to really listen to this one point I have to make very briefly. If you're not in Land Academy...

Jill K DeWit:

Or in a safe place that you could pull over.

Steven Jack Butala:

If you're not in Land Academy this is why there are many people in Land Academy who are successful, it's for stuff like this. What he's describing is, picture a zip code. There's a big city in the zip code, there's maybe a couple of small towns. Maybe one small town in the zip code and all kinds of real estate surrounding it. Very different price. One zip code, different priced land all over the place. This is the norm. This is not an exception. It's always like this. There might be a not so big city. There's always going to be strangely priced scenarios in one zip code. This is why you cannot use a pricing tool that's automatic. You cannot say to Concierge Data, let's say, which is our company where we do your mailers, "Thanks for doing all this and it looks great. We're going to price it at 20% of retail and let me know when it goes out." Huge, sometimes fatal error. There are multiple places in zip codes that have different pricing.

How do you do that? How do you deal with it? You get your mailer back, or you create the mail yourself, or you get it back from Concierge Data. And you test for reason over and over again and you sort for, just like I teach in.-

Jill K DeWit:

Land Academy.

Steven Jack Butala:

Land Academy, you sort for by APN and you look at test for reason, all of those prices to see. Not all of them, but if there's.-

Jill K DeWit:

Right.

Steven Jack Butala:

If you've got a 2,000 unit mailer size and it's one zip code, then test for every APN scenario, test 20 of them. You're going to decide ultimately that 20% is appropriate for this area in the zip code. 18% is appropriate for this area, 32%'s appropriate for this area. These are all really large parcels that are way out of town, maybe 8%'s appropriate for that. Are those numbers hard numbers? "Oh, Jack said 8% if it's out of town." No, that's not what I mean. I mean, it has to make sense so that if the property comes back and it's signed, you want to the do.-

Jill K DeWit:

Would you buy it?

Steven Jack Butala:

The deal. It's not overpriced or under priced.

Jill K DeWit:

Awesome.

Steven Jack Butala:

Thank you for asking that question.

Jill K DeWit:

That's a good question. Today's topic?

Steven Jack Butala:

Today's topic's Jack's Thursday, there's only six ways to get rich. This is why you're listening.

Jill K DeWit:

Okay.