We Review About Twenty Properties for Every One Property We Buy (LA 1840)

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'm Jill DeWit, broadcasting from the valley of the sun.

Steven Jack Butala:

Today Jill and I talk about how we review about 20 properties for every one or two properties that we actually buy. This is pretty important. This isn't going to be the longest episode, but if you're one of those people who are like, "Geez, I really wish they would just get to the point and stop horsing around," This is that episode.

Jill K DeWit:

I love it. Let me start with this, too, by the way. I would love to say today is the last day, so you know of the awesome, awesome biggest so far in 2022 savings to join Land Academy. And not only have I got a nice chunk off, it's $1,250 off, check it out, but also, joining through midnight tonight, you also get to be... not only the savings, you are put into a drawing for a 10 acre property in Oklahoma. The details are on our website. So go to landacademy.com. And by the way, if you have any questions, always just send a note to [email protected] and my team will get back to you.

Steven Jack Butala:

Before we get into the topic, let's take a question posted by one of our members on the landinvestors.com online community. It's free.

Jill K DeWit:

Shannon wrote, "So how do we handle buying land from disgruntled family members who just want to get away from the family who owns everything surrounding it?" That's hilarious. I feel like I'm in an episode of Bloodline. Somebody wrote that?

Steven Jack Butala:

Mm-hmm.

Jill K DeWit:

Oh, okay. Got that.

Steven Jack Butala:

It's left over from...

Jill K DeWit:

Okay. Okay. So... That's kind of funny. I wouldn't care. Here's the thing, if there's no access and they're going to withhold access, that's the only problem I would see.

Steven Jack Butala:

This leads directly into what this topic is today.

Jill K DeWit:

Well, wait, wait, wait, wait, wait. Let me back... Can I finish the sentence?

Steven Jack Butala:

Sure.

Jill K DeWit:

Finish my thought here. So, properties surrounded by the whatevers and they just want to get out of it. If there's, which there can be... there has to be at some point access most... pretty much everywhere, you can't withhold access, right? They think they can, but they can't. But the whole point of this is, sure they hate the family members and they want to get away from them, but you know what? The new person coming in doesn't have that animosity with the family members. It doesn't mean that it's going to be a bad situation. So I honestly don't have a problem with this. I don't see a problem with this.

Steven Jack Butala:

So how does this come about? Actually, this is very common, not this problem, but to see multiple family members living in one area where the root of that is agricultural property and municipalities... Municipalities have always been in favor of taking a large piece of property and minor splitting it or splitting chunks off and giving it to the kids, let's say, so it-

Jill K DeWit:

Mom and dad might have set out to do that.

Steven Jack Butala:

Farmers have been doing it since farming's began. I'm going to give the back 40 to my daughter, I'm going to give this 40 acre over here to my son, they're both married to other people, they're going to farm it and we're going to be over here if they need us. And so what ends up happening is they get letters from us and everybody else in our group and sometimes it's, you know.

Jill K DeWit:

And you know what I would do, too, I'd be reaching out to the other family members at the same time, by the way, as you're buying it and you're an escrow, "Hey, do you want to sell too? I'm buying Bobby Joe's, do you, Sally Sue, want to sell yours too?"

Steven Jack Butala:

How Your Land Business Compares to Other Small Businesses (LA 1839)

Transcript:

Steven Jack Butala:

Steve and Jill here.

Jill K DeWit:

Howdy.

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 Jill and I talk about how your land business compares to other types of small businesses. And believe me, it's almost all good news, especially the way we have it set up now with the Land Academy membership group and funding and all of that stuff. So I'll go through the list here in a minute.

Jill K DeWit:

Cool.

Steven Jack Butala:

Before we get into it, let's take a question posted by one of our members on the landinvestors.com community, online community. It's free. We have, Jill and I started quite some time ago, several years ago, a full blown commercial printing company to help you get your offers to owners. In fact, that's what it's called offers2owners.com. We send out between 600,000 and a million offers on behalf of members and non-members.

Jill K DeWit:

Every month.

Steven Jack Butala:

Every single month.

Jill K DeWit:

Yeah.

Steven Jack Butala:

Check it out, offers2owners.com.

Jill K DeWit:

Cool. Now back to the question, which is coming on the teleprompter. Charlie responds. Okay, so this is a response to something else?

Steven Jack Butala:

No, Charlie just-

Jill K DeWit:

Oh.

Steven Jack Butala:

You can't believe everything you read on the teleprompter.

Jill K DeWit:

Oh, okay.

Steven Jack Butala:

Charlie's got a question.

Jill K DeWit:

Okay. Charlie wrote this question. "Anybody ever had an old communications tower on their land? I'm looking at one that has a tower. It appears to be in good shape, but is not currently being used. How would you go about advertising that you have spots for lease on your tower? Or maybe that's not how it works at all?"

Steven Jack Butala:

So when people are new in this business, they have, and we picked up all of these real estate habits our whole lives, and then all of a sudden we're a Land Academy member buying and selling land and we can't help it but to apply all this stuff that we've picked up along the way.

Jill K DeWit:

Right.

Steven Jack Butala:

This, in my opinion, is a massive attribute. And so many people think that they need to clear the land and make it presentable and change it somehow. Or if there's structures on it or an antenna, that it's bad. The fact is, and everybody piped in on Discord about this, this is a ham radio operator's dream. And I would try to market this property to them.

A lot of years ago, Jill and I accidentally bought a property, because we didn't have all the tools that we are available to us now like Google Earth, that was on the side of a mountain. It was literally and some rock climbers bought it so that they could rock climb on their own land.

Jill K DeWit:

That's one of the things I always say, I want to stress is, whatever the property, I try to turn everything into a positive. You just have to accurately convey what's really going on in the property. Whether it's a serious slope or no slope at all. It's flat, grassy, perfect for fill in the blank. Or own your own rock climbing cliff kind of thing. Whatever it is, do it. Don't advertise is as, "Oh, you can build anywhere," when it's a rock climbing cliff, because you can't build on the side of that. You know what I mean? Unless you hang one of those tents on the side, but we're not even going to go there.

Because if you don't properly convey what it is, you're going to have a refund on your hands or unhappy buyers kind of thing. But this is a good example. It's a positive for somebody. Every little thing is a positive for somebody. Even a falling down, it's funny we talk about this often, a falling down mobile home, that's a positive for people.

Steven Jack Butala:

Absolutely.

Jill K DeWit:

Current Changes We Have Made in Our Land Business (LA 1838)

Transcript:

Steven Jack Butala:

Steven 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, Jill and I, talk about the current changes that we've implemented in our Land business.

Jill K DeWit:

This year.

Steven Jack Butala:

Yeah, this year. Our hope is that you may consider making these changes too.

Jill K DeWit:

Yep.

This is a continuation, or a reprise, I should say, of the live YouTube Facebook talk that I gave last week, last Wednesday, which was awesome by the way. I had so much fun. It was me sharing the things that we've been doing differently this year, because my whole point is, if I'm doing it, you should be doing it too. That's what we're going to talk about today.

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. I hope you know by now that Jill and I teach a class, an advanced class, called career path. For a small group of people, it goes about 10 sessions, two or three times a year. If this is your career, or you want it to be, check it out. Land academy forward slash career path.

Jill K DeWit:

It's our top level version of coaching. Everybody wants to have that real personal coaching experience. That's what this is.

Steven Jack Butala:

Yeah.

Jill K DeWit:

So cool. Mitchell and Heidi wrote, one of the reasons we started this Land journey was to raise money, to buy and hold vacation property in other countries we like to visit. We like to own our own CR... I don't know what that is. Yucatan will probably be the first. There are possibly... Excuse me. There are absolutely risks, but one could argue the risks like that are growing everywhere, even here and having diversified foreign holdings, especially if they can give you access to multiple passports, are a good idea. A Mexican passport for instance, was the best one to have during the height of COVID, and had access to something like 186 countries, when a US passport wouldn't be allowed entry anywhere.

That's very interesting. I haven't thought about it for something like that.

Steven Jack Butala:

This prompted me. I'll say it in a second. Go ahead, and finish it here.

Jill K DeWit:

We think there'll be some opportunities in the next few years, but this whole fourth turning thing seems to have some legs. Perhaps if governments fall, who knows what happens.

Steven Jack Butala:

I love the way that you're thinking out of the box here. I really respect it. Honestly, this prompted me. This question prompted me. This is in Discord. One of our new members. To look into getting a dual passport situation in Mexico for Jill and I. I actually have started down the path of doing that. Do I ever want to own any Mexican real estate? Absolutely not. This is my opinion, and this is why you post things in Discord to get other people's opinions. I think this is a crazy risky endeavor. I think it's something that could be a really cool hobby.

Jill K DeWit:

Owning a property?

Steven Jack Butala:

Yeah.

Jill K DeWit:

Not the passport part?

Steven Jack Butala:

No, the passport's a great idea. Brilliant idea.

Jill K DeWit:

Not the hobby part? The whole property part.

Steven Jack Butala:

Owning real estate in other countries immediately exposes you to a different legal system that I'm not familiar with. I'm pretty familiar with the American legal system, and there's a lot of recourse within that system if something goes wrong.

Jill K DeWit:

Sure.

Steven Jack Butala:

If you are wronged somehow. Owning foreign real estate, I think might be a great idea. Once you have a massive American land machine, like we do, and then you can go off, and do this maybe for yourself, or have a couple of rentals.

Jill Friday - Going up is Difficult Coming Down is a Joy (LA 1837)

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 Steven Jack Butala.

Jill K DeWit:

And I'm Jil DeWit, broadcasting from the Valley of the Sun.

Steven Jack Butala:

Today's Jill Friday. And she's going to talk about how going up is difficult, but coming down can be a joy.

Jill K DeWit:

And I stole this from you. You mentioned this as part of this series in-

Steven Jack Butala:

Health and wellness.

Jill K DeWit:

Yes, health and wellness.

Steven Jack Butala:

Like yesterday.

Jill K DeWit:

That was couple weeks ago, our own little family mantra. Like, "Okay. Here's what we're focusing on now, everybody health and wellness." When I say everybody it's the two of us here. And so you've been taking it seriously.

Steven Jack Butala:

Yes.

Jill K DeWit:

And I really appreciate that, including going to the doctors and things like that. Really focusing on it.

Steven Jack Butala:

Catching up on all that stuff.

Jill K DeWit:

I'm really glad.

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 I hope you know by now, we have revamped, fresh for 2022, parcelfact.com.

Jill K DeWit:

Yah.

Steven Jack Butala:

Used to be called neighborscoop.com. We rolled two sites, took the best of two sites that we've had, and made them one, parcelfact.com. F-A-C-T. And check it out, because it's the easiest way to do Phase 1 due diligence on land. You can do it right when you're on the phone with the seller and see if you want to buy the property or not.

Jill K DeWit:

It's amazing. There's a day pass, go check it out.

Steven Jack Butala:

Or you can join us on a Thursday call, as a guest on a Thursday webinar, where we use ParcelFact all throughout that, the webinar, to review people's transactions in our group.

Jill K DeWit:

Yep. Scott wrote, "Okay. Can someone explain to me why there even exists an affidavit of seller's gain? Why on earth? Why would I want to tell the buyer how much money I made?" I wonder what state this is.

Steven Jack Butala:

I agree with you, Scott?

Jill K DeWit:

What state is this?

Steven Jack Butala:

Every state, or most states, have an affidavit that goes behind a deed that says, "I sold this property for X to somebody."

Jill K DeWit:

It doesn't say what I bought it for though.

Steven Jack Butala:

It doesn't say what I bought it for. Why? The deed goes to the recorder when it gets sent into the county, and it gets recorded in the new person's name and the buyer's name. And that affidavit goes to the assessor. And the assessor makes a choice, "I'm going to reassess this property based on this new value." And probably the taxes on the property are going to go up, that's why.

But I agree with you, Scott. It's a lot of extra paper. It's extra stuff to do. And I think it should be on the assessor to see which properties have sold and then assess them that way. I don't think [inaudible 00:02:39]-

Jill K DeWit:

This is a lazy thing is what you're doing.

Steven Jack Butala:

Exactly.

Jill K DeWit:

Yeah. Because hello, dear assessor. You can pull the last paperwork and see what the affidavit of property value was two months ago when I bought it. And then you see the new one when I'm selling it, and do the math.

Steven Jack Butala:

And what if, as buyers, because that's what we do here, we buy property inexpensively, very, very often for less than what the seller paid years ago. Does our tax rate go down? Nope.

Jill K DeWit:

Oh yeah. Hey, by the way, I got something to share with you that's kind of interesting before we jump into the topic, because it's happening right now today. We have a property listed with a Whitetail property guy. It's a deal funding property, and the buyer who buys ... He has an oil and gas company,

Jack Thursday - Your Attitude is the Only Thing You Can Control (LA 1836)

Transcript:

Steven Jack Butala:

Steven and Jill here.

Jill K DeWit:

Hi.

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 your attitude is really in the end the only thing that you can control. I've been researching-

Jill K DeWit:

I don't know why that makes me giggle, but it kind of does.

Steven Jack Butala:

I'm now at the point in my life right now where everything's pretty good. The money's good. I think we have a forever house. Our last child is just about, is this week, actually, tomorrow being dropped off at college.

Jill K DeWit:

On his head.

Steven Jack Butala:

I've gone into what I call-

Jill K DeWit:

I would slow down and push him out.

Steven Jack Butala:

I've gone into what I call a health and wellness mode. I've been researching why people live a long time and if they do. There's all kinds of documentaries and stuff all about this. I've came across this topic and wanted to talk about it on Jack Thursday.

Jill K DeWit:

And, I know this is serious and I appreciate that.

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 please don't forget to subscribe on the Land Academy YouTube channel and comment on the shows you like. If you go to YouTube, we have all kinds of stuff on there in addition to this show.

Jill K DeWit:

Including my live broadcaster from yesterday.

Steven Jack Butala:

Yes.

Jill K DeWit:

You can check that out if you missed it. Charlie wrote, "Dropping off some wisdom here like always. Back to that paid for rental house. What's the reason you're parking your money in real estate versus a bank where it would be more liquid if you needed it? I know the start is a tax question, but money sitting idle in a bank account isn't taxable either, right?"

Steven Jack Butala:

Yeah. This is in response to a long string about where to put your money in discord among our members. Have you ever driven down the street in a subdivision? Maybe you live there or it's a subdivision close by and you see a piece of vacant land that's totally buildable. And, there's no for sale sign on it, and it's never been built on. It's been vacant for as long as you can remember, as long as you've lived there. Here's what that's all about. And, this is what a paid for rental house is all about too, which Jill and I have both of these types of investments.

Number one, that property's going up in value way the hell more than any bank account that you're going to have. If you had a hundred grand in the bank, it's going to be worth $105,000 in a few years. If you have a vacant piece of property in a pretty solid area, it's going to be worth a lot more than $105,000. That's so number one, it's a pure appreciation for doing nothing. Number two, you can lend against it. If you need money on a rental house or a piece of property, you can lend against it really, really easily with the stroke of a pen. It is liquid.

And, number three, and I think this is the most important point. We have three children. We own assets with each of them. Jill might owns an asset or two and it's in joint tenants with each of our children and me too. Why? Because if I pass away that property immediately becomes, the owner is one of our children, whoever's involved in it. Not multiple children, for a lot of reasons, which Jill and I separately-

Jill K DeWit:

That's the last thing we want to do is-

Steven Jack Butala:

So they can't fight.

Jill K DeWit:

Invoke a family squabble.

Steven Jack Butala:

It's a non-taxable event. I buy piece of property, and I deed it to myself as a joint tenant with one of our kids. I pass away.

Jason Roberts Land Academy Member Interview (LA 1835)

Transcript:

If you enjoyed the podcast, please review it in Apple Podcasts . Reviews are incredibly important for rankings on Apple Podcasts. My staff and I read each and every one.

If you have any questions or comments, please feel free to email me directly at [email protected].

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

I would like to think it’s entertaining and informative and in the end profitable.

And finally, don’t forget to subscribe to the show on Apple Podcasts.

Re-Entering the Work Force with Land Academy (LA 1834)

Transcript:

If you enjoyed the podcast, please review it in Apple Podcasts . Reviews are incredibly important for rankings on Apple Podcasts. My staff and I read each and every one.

If you have any questions or comments, please feel free to email me directly at [email protected].

The BuWit Family of Companies include:

https://BuWit.com

https://offers2owners.com

https://landinvestors.com

https://landacademy.com

https://landpin.com

https://parcelfact.com

https://countywise.com

https://deedperfect.com

https://ownersdata.com

https://houseacademy.com

I would like to think it’s entertaining and informative and in the end profitable.

And finally, don’t forget to subscribe to the show on Apple Podcasts.

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'm Jill DeWit, broadcasting from the Valley of the Sun.

Steven Jack Butala:

Today, Jill and I talk about reentering the workforce with Land Academy.

Jill K DeWit:

I have some good examples of this. It's really cool that people have found this as a niche for them. Having been away from work for maybe it's COVID reasons, maybe it's family reasons, maybe somebody got sick reasons, maybe laid off reasons, who knows. There's all kinds of reasons.

Steven Jack Butala:

Child raising.

Jill K DeWit:

Yeah, child raising reasons that people like say, "Okay, I need to start bringing in some money. I'm online looking for stuff." While they're looking for jobs, maybe they're looking for this and we pop up. And so I have some great examples to share about people that have successfully jumped in Land Academy. And this is their life now and they're doing really well.

Steven Jack Butala:

Before Jill gets into this topic because it's clearly the Jill show today.

Jill K DeWit:

Thanks.

Steven Jack Butala:

Let's take a question posted by one of our members on the landinvestors.com online community. It's free. Hopefully by now, you know that we have a full blown commercial printing company called Offers 2 Owners. Jill and I set it up a lot of years ago out of frustration, for our use of other commercial printing comedies and they just didn't understand mail merges. They just did not understand us, so we solved it by starting our own. We send out between 700,000 and a million offers a month on behalf of mostly members.

Jill K DeWit:

Check out offers, the number two owners.com. And I want to add a little thing here. Don't forget, tomorrow's a big day. Tomorrow, Wednesday August 24th at 2:00 PM Pacific Time, you can find me live on Facebook and YouTube. So go check out the Land Academy Facebook page or the Land Academy YouTube channel. And you can find me there, hope to see you. Steven wrote, "Anyone ever have a seller not want to sell because of the tax burden? The offer price is around $60,000. Any creative work around?

Steven Jack Butala:

So there's a lot of people that responded to this in discord. There's lots of ways to work around this and this should not be a reason for a seller to not sell the product.

Jill K DeWit:

Like I can't sell it because I'm going to pay all these taxes?

Steven Jack Butala:

Yeah.

Jill K DeWit:

It's going to mess me up.

Steven Jack Butala:

Boy, there's a ten thirty one exchange option. There's selling it on terms to you option. And if they go sell it on terms and you know it's worth a hundred grand, you resell it and just pay it off at that time. You could co-sell this property, so you could go to this seller and say, "I'm going to sell. Who resell this anyway? Let's do a deal for 60,000 bucks when I sell the property for a 100 or 90 or whatever the number is, what do you say, I kick in about 10,000 bucks on top of that $60,000?"

Jill K DeWit:

To pay for you this tax?

Steven Jack Butala:

To pay for your tax liability.

Your Contribution to Land Academy is Not Based on How Many Deals You've Completed (LA 1833)

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'm Jill DeWit, broadcasting from the valley of the sun.

Steven Jack Butala:

Today, Jill and I talk about your contribution, how your contribution to Land Academy, it's not really based on how many deals you've completed.

Jill K DeWit:

You know what's funny? People think like, oh, oh, I really can't weigh in on this or I don't think you want my opinion or no, you don't want me on the podcast yet because I've only done X number of deals and it might even be 40, kind of thing. But we're going to talk more about it. No, we want to hear about that.

Steven Jack Butala:

Later this week, we're interviewing a career path graduate.

Jill K DeWit:

Who's not done a lot of deals.

Steven Jack Butala:

For an alumni, he's done zero. He's bought a lot and they are in the process of selling and closing on the deals, but he's still bringing a ton.

Jill K DeWit:

Yeah. There's still some great value there.

Steven Jack Butala:

Yeah.

Jill K DeWit:

Yeah.

Steven Jack Butala:

You know, he's owned, there's all kinds of other great stuff, like he's owned. You'll see on Wednesday, he's...

Jill K DeWit:

And we'll talk about it in the show here.

Steven Jack Butala:

He's owned a business for 30 years.

Jill K DeWit:

Yep.

Steven Jack Butala:

All that experience being poured into his land career.

Before we get into it, let's take a question posted by one of our members on a landinvestors.com online community. It's free. And Jill has a good announcement for a live webinar that she's doing.

Jill K DeWit:

Yeah. Here's what I want you to know today. It's Monday. Okay. Two days from now, Wednesday, August 24th, 2022, 2:00 Pacific Time, you can catch me live on Facebook and YouTube. It's going to be called Catching up with Land Academy. And it's all about changes we've made this year in 2022 and why it's a great time to start your land investing career.

Steven Jack Butala:

We've made a ton.

Jill K DeWit:

So if you're not a member or even if you are a member and you want to just show up and give me some love, you're going to want to be there. And I have a special announcement coming that day. That, hmm, let's just say, if you're not a member, this is for you, really for you. So I'll have some great stuff I'm giving away.

Steven Jack Butala:

We're constantly making improvements, but this year in particular, we've made a lot of improvements to :and Academy itself.

Jill K DeWit:

Yep.

Steven Jack Butala:

Because in response to this new economic environment we're in and how we're going to buy and how we're buying property really very, very inexpensively. We always buy it inexpensively, but now's a great time to get some huge margins.

Jill K DeWit:

2022 changes.

Steven Jack Butala:

Yeah.

Jill K DeWit:

Exactly. And things we've noticed. Also, where is it again? I'm going to tell you. So Wednesday 8/24, two days from now, 2:00 Pacific Time. Go to the Land Academy Facebook page or Land Academy Facebook page or YouTube channel. I have to say that right.

Okay. Scott wrote, "Here's a question that has been bouncing around in my head for a while. If you get a purchase agreement back on a really good deal and due diligence is good, does anyone in the group have them sign a different contract with a deposit or to make the contract ironclad? Or does everyone just move forward with the purchase agreement, which has no consideration included? So it's unenforceable and they can bail if they get a better one."

I'm going to argue that even if you take, even if you do some money down, it's still unenforceable and they can bail, because that has happened. So I move forward with the standard agreement. That's what we do.

Steven Jack Butala:

Jill Friday - It's Too Easy to Get Excited about a Deal and Miss Red Flags (LA 1832)

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 Steven Jack Butala.

Jill K DeWit:

And I'm Jill DeWit broadcasting from the Valley of the Sun.

Steven Jack Butala:

Today's Jill Friday, she's going to talk about, it's too easy to get excited about a deal, and miss the red flags.

Jill K DeWit:

Kind of like dating, "He asked me out, I'm so excited. We went out to dinner, he didn't open a door for me, he ordered before I got there. He-"

Steven Jack Butala:

"He asked me for money."

Jill K DeWit:

"Asked me for money." That's so true. That's awesome. But the point is, "I gave him a hotbox, it's what he needed, he asked me on a second date, isn't this great? What do you mean there's a problem?"

Steven Jack Butala:

There's a guy version of this.

Jill K DeWit:

This is true, this is a true story. A dear friend of ours, I'm sure she does not listen to this, so I'm safe sharing this, we're not going to say names.

Steven Jack Butala:

Of course not.

Jill K DeWit:

Did multiple blind dates in a day, I don't know what she was doing, but she had two or three coffee dates in one day, and she was telling about the guy in the middle, that by the time she got there, he was sitting down, drinking his own coffee, never once offered to buy her a cup of coffee. She finally took it upon herself to say, "I'm going to go get a cup of coffee." And she, because she's the sweet thing, she just said, "Would you like another cup of coffee?" To which he said, "Yeah, sure." So she went and got her own coffee and brought him back to coffee, what does that say about that guy? And yes, that was the last time they communicated. She did not miss that as a red flag, and that's a huge red flag, it was funny, anyway.

Steven Jack Butala:

You know what happens to guys?

Jill K DeWit:

Oh, bring it.

Steven Jack Butala:

They, for whatever reason, starts to date a girl, and all their guy friends are like, "Dude, listen-"

Jill K DeWit:

Oh.

Steven Jack Butala:

"That girl's a mess, she treats you like crap." And his response is, "What are you talking about? We always have fun." And they're just blinded by the whole thing, and so fast forward 30 to 60 days later-

Jill K DeWit:

I thought you said years.

Steven Jack Butala:

Yeah, it could be years.

Jill K DeWit:

Yeah.

Steven Jack Butala:

Just a fire ball disaster-

Jill K DeWit:

Right.

Steven Jack Butala:

And it's all blown up, and he's like, "Yeah, you guys were right." I've been on both sides of that. I've been the victim of it, and the person saying, "Dude..."

Jill K DeWit:

Yeah, "You've got to see what we're seeing."

Steven Jack Butala:

All of this, it happens with real estate deals-

Jill K DeWit:

True.

Steven Jack Butala:

And new people.

Jill K DeWit:

Yeah.

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 I have to tell you about parcelfact.com, without making this complicated, go to parcelfact.com F-AC-T, and it's new and improved, we recently took two sites that we own, put them together, and made one great, amazing site.

Jill K DeWit:

There's a day pass too, by the way.

Steven Jack Butala:

Yeah.

Jill K DeWit:

Check it out.

Steven Jack Butala:

Check it all out, it's pretty amazing.

Jill K DeWit:

Interesting. Do I know this person?

Steven Jack Butala:

Nope.

Jill K DeWit:

This is a little shout out to me in here. Okay. So Erin wrote, "Hey, Jill DeWit, and all my phone answering people, dare I say, I am enjoying speaking with potential sellers, at least the people who reach out to us are all pretty pleasant. A good chunk of the people calling me just want to know that there's a real, not corporate person on the other side of the phone, and I enjoy talking to these people.

Jack Thursday - 5 Things Your Father Never Told You About Real Estate (LA 1831)

Transcript:

Steven Jack Butala:

Steven 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:

I'm Jill DeWit, broadcasting from the valley of the sun.

Steven Jack Butala:

Today's Jack Thursday, and I'm going to, and it turns out Jill is also, talk about five things that your father never told you about real estate. Might not be your dad's fault. Maybe times have changed. Those guys never had the data access that we have. So, we're going to talk. There's a lot of things that have changed. I think my dad would've done very, very well in this new information type environment, where you don't have to guess. You have a lot of resources to make the decisions. Before we get into it, let's take a question posted by one of our members on thelandinvestors.com online community. It's free, and don't forget to subscribe on The Land Academy YouTube channel, and comment on the shows you like.

Jill K DeWit:

You know what's funny? My dad might not have done very well with the data. I have to say that, as you said that about your dad. Knowing my dad, my dad wasn't a data guy. Guess who his data entry person was? Me.

Steven Jack Butala:

Oh, really?

Jill K DeWit:

Me.

Steven Jack Butala:

Actually, that makes sense, Jill.

Jill K DeWit:

Me. When he got a program early on, I think I was in high school at the time. I want to say early in high school, he got a program to input his flight log, he was a pilot, and put his hours and keep track of it there. I would convert it from the flight. I'm the one that would sit and put in the computer for him. So, yeah. It's kind of funny.

Steven Jack Butala:

This is going to be a long, interesting, very telling, hopefully funny episode.

Jill K DeWit:

Exactly. Christian wrote, "I'm buying some farmland that is currently growing soybeans. The seller lives out of state and gets pushed a check once a year from the person farming, for a percentage of the crop sales. Seller says there's no written lease agreement. Does anyone know if there's anything I should be aware of when buying farmland that is being actively farmed? My plan is to let the farmer harvest the soybeans, and then tell him the property is going to be listed for sale. Anything I should include in the purchase agreement? Thanks."

Steven Jack Butala:

Oh, I have so much to say about this. This could be the greatest situation ever, or it could be a nightmare. Just like a marriage can be the greatest thing ever without a prenup, or it could be a huge nightmare, depending on how it ends, and how it all goes. Or who you're with. So, the general... Here's a conventional-

Jill K DeWit:

No comment.

Steven Jack Butala:

A conventional way to do this is, you either would have a land lease or you would have an option agreement, a revenue sharing option agreement. All in writing with notaries and all that stuff that lawyers have looked over.

Jill K DeWit:

You should have been an attorney by the way, you would make a great attorney.

Steven Jack Butala:

I know, but I would be mad every day.

Jill K DeWit:

Oh, that's true. I'm glad you're not an attorney.

Steven Jack Butala:

Exactly. I can't imagine being a lawyer and just dealing with everybody's anger all day.

Jill K DeWit:

No.

Steven Jack Butala:

Instead of all we deal with is successes here.

Jill K DeWit:

True.

Steven Jack Butala:

In our entire life, happy stuff happens.

Jill K DeWit:

That's true.

Steven Jack Butala:

So, in a perfect world, you've got this agreement and here's why I say this, not because I'm not going to get paid or any of that. Farmland and most real estate that is income generating, is valued on that income stream. So, you would value, if you've been doing this for five years, you would apply a capitalization rate, which doesn't happen as often in farmland as it does, let's say,