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 trial running your taxes before December.
Jill K DeWit:
Do you know how nice it is to have you?
Steven Jack Butala:
That's very nice to hear.
Jill K DeWit:
Yeah, especially when it comes to stuff like this. If you didn't get taxes, we would be in big trouble.
Steven Jack Butala:
Taxes are our most expensive cost is cost of goods sold, the price of the land. Our second is possibly...
Jill K DeWit:
Staff.
Steven Jack Butala:
... Labor or staff, but that's not because of our land businesses.
Jill K DeWit:
You expect that.
Steven Jack Butala:
It's because of Land Academy.
Jill K DeWit:
It's true.
Steven Jack Butala:
Our second largest income statement amount, dollar amount, in our land business is taxes, so it's got to be managed and manipulated. Manipulated meaning just reviewed and... Well, I mean manipulated, within the limits of the law and ethics.
Jill K DeWit:
Managed.
Steven Jack Butala:
Managed. The same way that you manage your acquisitions and how much they cost.
Jill K DeWit:
Right.
Steven Jack Butala:
Before we get into it, let's take a question posted up by one of our members on the landinvestors.com online community. It's free, and please don't forget to subscribe on the Land Academy YouTube channel. Comment on the shows you like.
Jill K DeWit:
Joseph wrote, "I have a developer looking to sell a commercial parcel, 3.7 acres, that's anchored by a Super target, Petco and Wells Fargo. Anyone have any experience with this? With an anchor, does this heavily reduce its selling ability? It's been listed for two years, but with no price, so that makes it even harder to gauge a value."
What the heck?
Steven Jack Butala:
Well, there's a few things.
Jill K DeWit:
So, we sent out an offer, so let me back up here. Let me see if I'm right here. It sounds like you sent out an offer. The guy says, "Yeah I want to sell it. Here it is. Do you want to buy it?"
So, that's the point where you have to say, do you want to buy it? And then the whole no price thing. I'm like, well you made an offer, so that's the price. It's either yes or it's no.
Steven Jack Butala:
There's a few things going on here. This is Jill's nightmare deal. Jill would just say no. She would.
Jill K DeWit:
And it's been on the MLS or on lists, whatever.
Steven Jack Butala:
This is 180 degrees different on the other side of-
Jill K DeWit:
LoopNet.
Steven Jack Butala:
Of regular Land Academy deal.
Jill K DeWit:
Not doing it.
Steven Jack Butala:
I had to chuckle when I read this, we have to talk about it now and clear it all up. An anchor tenant, an anchor in a boat as it goes down in the water and it holds everything down, an anchor tenant quite opposite, in the opposite is the best thing that a landlord could ever have. And so you've got Sally's beauty box in a strip mall, Sally's beauty box and you've got maybe a little grocery store next to a Walmart and your Walmart's that anchor tenant. And everybody's going to that Walmart in and out all day passing the beauty box and passing all these little stores that might be, that's the greatest thing a landlord could ever ask for. That landlord will keep all those other retail spaces open because of the draw from that anchor tenant. So when someone says, I have an anchor tenant in this building or this facility.
Jill K DeWit:
It's great.
Steven Jack Butala:
They're banging their chest and they're clinking their glasses. I got an anchor tenant. So anchor tenants are great. What ends up happening is a lot of strip mall or regional malls or there's always left over land. That's what this deal is. And it's not that it's land that's unusable,