Jill Friday - Pros and Cons of Talking to Sellers for Hours (LA 1877)

Transcript:

Steven Jack Butala:

Steve and Jill here.

Jill DeWit:

Hello.

Steven Jack Butala:

Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala.

Jill DeWit:

And I'm Jill DeWit, broadcasting from Suite Eureka Springs, Arkansas.

Steven Jack Butala:

Today, it's Jill Friday and she's going to talk about the pros and cons of talking to sellers for hours.

Jill DeWit:

I don't do this.

Steven Jack Butala:

Can't say enough positive stuff about Arkansas. I can't say enough positive stuff. Anyway, go ahead.

Jill DeWit:

No, I'm talking about the topic. I don't do this and I don't condone this, but there's a version of this I'm going to talk to you about. Then you'll find more in minute.

Steven Jack Butala:

Perfect. But before Jill gets into it, let's take a question posted by one of our members on the landinvestors.com online community, it's free. And we have a site that helps you do phase 1 due diligence. In fact, it almost does all of it for you in less than 30 seconds. It's called parcelfact.com. Back in the day, you needed a mailing address, like 123 Main Street, to look up property. Well, that's just not the case anymore. We put together a database of 150 million or so properties that you can look up anywhere in the country and get the information that you need to make a really quick phase 1 due diligence decision whether or not you're going to buy when on the phone with the seller. Check it out, parcelfact.com.

Jill DeWit:

I know you said the number of the properties, but the coverage is like 98% nationwide. Is it 98, 99? I can't remember what-

Steven Jack Butala:

It's a lot higher now. Yeah.

Jill DeWit:

I think it's 99% nationwide is the a coverage. So you don't have to remember the 150 million. Just remember that part.

Steven Jack Butala:

It's almost all of them.

Jill DeWit:

Exactly. You're like, "well, what if mine's not in that 150 million?" Let me just give you the percentage. And then you're say, "I run a pretty high chance it's going to be in there." There you go. All right. So Evan wrote, "Now that the economic market seems to be experiencing a change in fundamentals causing increasing real estate inventories due to fewer buyers, are any of you considering creative deal structure instead of cash when buying and selling?

Steven Jack Butala:

Implicitly, no. Now is the time, in my opinion, more than ever to be paying cash for undervalued real estate because we're going to find more of it when inventories like this go up, more property becomes available. And it's not just inventories that are going up, as this thing continues that we're in. We're not yet calling it a recession, but I think that's what it is or we'll be, people need cash and if they have land laying around, they're not using this land. It's one of the first things they decide to sell. And so you want to pay cash for that.

You don't want to structure some complicated thing with some seller who just wants 10 grand to say, "Well, I'll pay a $1,000 now and then..." You don't want, that's a-

Jill DeWit:

They'll get a better deal.

Steven Jack Butala:

And I'm not picking on you, Evan, at all. This is wall streeting, there's a lot of appropriate times in finance to implement these concepts of high finance and Wall Street stuff. This is not one of them. This is one of the reasons I chose, and I hope Jill did too, chose this career because it's so simple. I want to buy an undervalued asset and then I have complete control over it. Who knows what the market's going to do? Maybe it's going to go down further. Maybe it's going to go up further. But if I'm buying, it's so cheap like we do on every deal, I want it and I want to own it.

Jill DeWit:

Yep. Thank you.

Steven Jack Butala:

Today's Jill Friday. She's going to talk about the pros and cons of talking with sellers for hours. This is the meat of the show.

Jill DeWit:

So I don't do this,