Jack Thursday - Tranche Your Land Deals (LA 1681)

Transcript:

Steven Jack Butala:

Steve and Jill here.

Jill K DeWit:

Hi.

Steven Jack Butala:

Welcome to the Land Academy Show. Entertaining land investment talk. I'm Stephen 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 traunching your land deals. Jill thinks for some reason, this is some highfalutin concept, but I'm not sure. I don't think I agree. It's pretty simple, actually. Buy a bunch of property.

Jill K DeWit:

I wonder how many people are Googling this exact phrase right now. What do I want to do this week? I want to traunch my land deals. This is good.

Steven Jack Butala:

Traunching is used. It's a French word. Meaning-

Jill K DeWit:

I know.

Steven Jack Butala:

Separate and gather, or it's not just separate.

Jill K DeWit:

I always thought it was more, I thought it was grouping them together more than that.

Steven Jack Butala:

Yeah. That's a little bit. The American use of the word, especially in finance, is a little bit different than the strict translation. I researched all this before I went [crosstalk 00:00:53]

Jill K DeWit:

Well, good, because like you're making me need to do the research. That's the whole point. If we have a show that I got to actually, excuse me, I need to Google this for a moment. [crosstalk 00:01:01] Make sure I'm right.

Steven Jack Butala:

You've heard people in the stock market or in finance markets traunching their portfolio and you know-

Jill K DeWit:

Bundling them up, right?

Steven Jack Butala:

Yeah. Yeah.

Jill K DeWit:

That's how I think of it like-

Steven Jack Butala:

Buying and selling in traunches, which means not just taking a certain asset and selling it. It means bundling it up, putting the good with the bad. We heard the word traunch a lot in 2010 where they were taking home loans.

Jill K DeWit:

Houses.

Steven Jack Butala:

Yeah. AAA rated home loans and bundling them with non-performing C minus loans.

Jill K DeWit:

Putting a few crappy ones in with the good ones and just kind of sliding them under the rug that way.

Steven Jack Butala:

Yeah. Well not under the rug, but here's a portfolio. Take it or leave it. There's some golden here and there's some terrible stuff.

Jill K DeWit:

Got it.

Steven Jack Butala:

Like every garage sale. Let's say.

Jill K DeWit:

Thank you for not associating it with dating.

Steven Jack Butala:

Oh my God. You could buy-

Jill K DeWit:

Or marriage.

Steven Jack Butala:

Buy partners in traunches. I think that's a felony.

Jill K DeWit:

Yeah, oh my gosh. Wow. I didn't think we were going there, but it is Jack Thursday. He can do whatever he wants.

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. Don't forget to subscribe on the Land Academy YouTube channel and comment on the shows you like.

Jill K DeWit:

Here's what's going on right now for some of you, "Mommy." This is from the back seat, "Mommy. What did Mr. Jack mean when he said that?"

Steven Jack Butala:

I hope that's not true.

Jill K DeWit:

Exactly. Somewhere.

Steven Jack Butala:

Poor kids.

Jill K DeWit:

Somewhere in the minivan, this woman is quickly turning off our show.

Steven Jack Butala:

Poor children have to... All you children. I'm sorry.

Jill K DeWit:

Who are stuck listening to this.

Steven Jack Butala:

Your parents make you listen to this.

Jill K DeWit:

This is their nap time. Fall asleep.

Steven Jack Butala:

Yeah, yeah.

Jill K DeWit:

Thank you everyone because you put my kid to sleep every afternoon at three o'clock like clockwork. That's awesome. Better than Dr. Seuss. All right. Peter wrote, "I am slowly scaling up my land business and would love to hear about the anatomy of bigger deals. I presume we all start small, usually under $10,000 purchase, and then we, or 20 to $30,000.