Land vs Rental House-One is More Profitable and Easier (CFFL 0042)

Jack Butala:                   Hey, Jack Butala here from Land Academy. Welcome to our Cash-flow From Land show. In this episode, Jill and I take a look at the details of buying two types of cash flowing investments: land, and houses. When we’re done with this show, it’ll be glaringly clear, that buying a piece of land, and selling it on terms, or for cash, is way, way, way more profitable, and easy to accomplish, than buying a house and renting it out. But, both have their place. So, if you’re thinking about buying and renting houses, I think it’s a great, fantastic idea, but consider land, maybe before or during this effort. I’m actually going to try to keep Jill awake in this show, because it’s in two parts, and this is one of our technical shows. We’ll cover the numbers portion of it, which I’ll do in the management portion of it, which Jill does incredibly well. Jill, how are you?

Jill DeWit:                            Oh, sorry, what? Huh, now what?

Jack Butala:                   That’s what I thought. Falling asleep during the intro like all of our listeners. All six of our listeners just fell asleep too.

Jill DeWit:                            That’s great. If anybody’s listening to this on their way home or commute home, yeah, keep your eyes on the road, please.

Jack Butala:                   As luck would have it.

Jill DeWit:                            Because your eyes are getting just so deep ... You know, Steven, you do have that very soothing voice sometimes, just makes some people go, honk.

Jack Butala:                   That’s the effect I have on women.

Jill DeWit:                            So that’s how you get women, you just hope you’re going to talk long enough they’re going to pass out?

Jack Butala:                   Yeah, it takes, like, three seconds. If you can’t stand our technical shows, and you just want to fast forward through it, I get it. Or if you love our technical shows, and you want to dive right into this, either way, I will tell you the name of our next show is, Flirt to Convert. Jill takes on sex appeal, to sell land.

Jill DeWit:                            Why would anyone not want to listen to this show? Granted, the next show is going to be really good.

Jack Butala:                   There’s some good stuff in here.

Jill DeWit:                            You and I always have fun, no matter what we’re talking about. I think that’s why people listen to us, because we can take the most boring subjects and make them entertaining.

Jack Butala:                   So, all right. There’s two types of cash-flowing investments. You’ve got land, and you’ve got rental houses, or houses that you buy. Both of them, you buy it, you look at it, you analyse it, you go at it the same way. You make the same decisions: should I buy land, should I flip it for cash, should I flip the house for cash, should I rent it out, or should I sell the land on terms, and collect the payment for a heck of a long time. There’s a lot of components to this. Let’s start with the first one, which I think is ridiculously overlooked, and incredibly important. Entry capability, from a money standpoint.

Jill DeWit:                            Yes.

Jack Butala:                   What the heck does that mean? How does it cost to buy a house, and how much does it cost if you’re new at this, to buy a piece of land and flip it. Buy a house and flip it, buy a piece of land and flip it. Jill, give me some raw numbers, just for fun.

Jill DeWit:                            Oh, my goodness. If you’re lucky you can buy a house for $150,000 - $200,000. Do you have that sitting around? Probably not.

Jack Butala:                   Right. You could borrow money.

Jill DeWit:                            You could, and there’s a whole other point of that, I know you’re going to discuss. Versus, I don’t know,