Jack Thursday - Where to Start in Real Estate (LA 1826)

Transcript:

Steven Jack Butala:

Steve 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 am Jill DeWit, broadcasting from the Valley of the Sun.

Steven Jack Butala:

Today's Jack Thursday. I'm going to talk about where to start in real estate. And honestly, where not to start. Why?

Jill K DeWit:

It's going to be more about where not to start.

Steven Jack Butala:

Why do I know about where not to start in real estate? Because that's where I started.

Jill K DeWit:

Yeah. Oh yeah. We can tell you all this ... You know what? I swear, this is why you're here and listening, I hope. And I know for many of you, this is why you're in Land Academy.

Steven Jack Butala:

Besides the fact that you have-

Jill K DeWit:

I'd rather pay you guys and not do it, and hear all about the stuff that you failed on and what got you here today. It's so much faster and cheaper for me to just join and go with what you got figured out. Ding, ding. Yep.

Steven Jack Butala:

That and the fact that you have real low standards and we appreciate that.

Jill K DeWit:

Oh, silly.

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:

Daniel wrote, "Hey, everybody. I'm getting very close to finishing my first mailer and I am very excited about it. I'm hitting a little bit of a wall though when calculating my offer price per ..."

Steven Jack Butala:

Acre, just say.

Jill K DeWit:

Acre?

Steven Jack Butala:

It's supposed to be PPA, yeah.

Jill K DeWit:

Okay, got it. I'm going, "What is PPE?" Oh my God. Okay, price per acre. "After using web scraping software and plugging my numbers into the equations," or, "plugging the numbers into my equations, the results are a bit wild. Upon further inspection it seems that the reason is because the MLS in this area is responsible for less than 40% of all the listings here for land on Zillow, and they're not accurately representing the listings."

Steven Jack Butala:

Welcome to my world.

Jill K DeWit:

This is true. "For example, 0.002 acres is going for 30,000, while another seven acres is listed for $1,000, and so on. Nearly all of them are mislabeled." Sorry. This happens. "And without elaboration in the descriptions." Yeah, yeah. "Does anyone know a way to efficiently circumvent this dud data? For what it's worth, I have both WebHarvy and Octoparse as my web scrubbing apps. Sorry for the wall of text." That's so funny.

Steven Jack Butala:

Daniel, you are going to be amazingly successful in your real estate career.

Jill K DeWit:

Yeah.

Steven Jack Butala:

I put this on Jack Thursday for a reason. This is absolutely the norm for scraping data, the way that we teach it, and coming up with the offer prices. What you're experiencing, it's not the exception, it's the norm. You scrape all the active and sold properties in a zip code. And what you're stalling for is a retail price per acre, from which you can submit offers to all the owners in the area at a much discounted price.

So if everything's $1,000 an acre, you solve for this. What you're processing is $1,000 an acre. Then you're going to write offers for $250 an acre and few people are going to sign them, and you're going to buy the properties and sell it for $1,000 an acre, hopefully, or some number like that. That's the overview.

But follow me here, let's just do a little bit of math. In his 0.002 acre example for $30,000, that price per acre is crazy, astronomical. It's going to throw your data off. Us data people call that an exception. And so if you think of it as a bell curve, the stuff that's on each side of that bell, you got to get rid of it. And we teach this in the program,