Millionaire - How to Stay on Top (CFFL 568)

Transcript:

Jack Butala:                         Jack and Jill here.

Jill DeWit:                            Hi.

Jack Butala:                         Welcome to the show today. This episode Jill and I talk about Millionaire How To Stay On Top. You got there times 80 what do you do to stay on top? Do you do anything? Before we get into it let's take a question posted by one of our members on the landinvesters.com online community, it's free.

Jill DeWit:                            Okay, Heather asks, I'm just starting out and I'm trying to learn the ropes and what it takes to be successful in this business. I need some advice. I want to test out a county in each state at one time to see what type of sales and feedback I receive. Have you ever tried this and do you think this would be a good idea or am I shooting myself in the foot by trying to do too many at one time?

Jack Butala:                         Heather, I love your attitude. I love testing stuff before you're actually really put boot jumping with both feet. I can tell by the way what our producer did that you're not a member in our group and most of the intelligent questions that we get are from people who are already members and this is incredibly intelligent and so I appreciate it.

I would test, I'm going to give you a couple ways I test counties because I do test counties and it's not something we talk about often enough. Just by the fact that you're asking, hey, can I just test this out a little bit just to see, is fantastic. I want you to be as creative as you can about it.

Here's a couple things you can do really quickly to test pricing on counties and it doesn't cost a dollar. Post a Craig's List posting and say that you have a couple pieces of property for sale in X,Y,Z area, you can post 10 of these things, maybe 100 if you want.

Jill DeWit:                            Okay.

Jack Butala:                         If you're in an environment like California a real urban environment there's like 20 little Craig's Lists all over the place and so you can do it and price it and see what kind of feedback you get. If you're going to do rental houses, I was famous for this back in the day, posting a fake ad that said I have a house that I have for X,Y,Z and see how many responses you get. If you see you get nothing, maybe you're priced too high or whatever, then adjust it that way it doesn't cost anything. That's one way I test counties and pricing.

I will say something about this, this works. Sending blind offers that are undervalued works in every single county in this country, why, because we have all the data. The variable is using the data correctly for one simple thing, pricing.

I think yesterday or two days ago we had a question about, what do you do in a market where it's a seller's market, where every house listing becomes an auction. Well, you get creative just like you are here. You make sure it's a cash offer or whatever like that.

It'll work no matter what you do if you price it correctly, it will work. For houses, you may have to send out 2500 units in a very rare situation you might have to send out 5,000, but you're still making 10, 20 grand on each house.

I love your idea and if you're buying land and it sounds like you are sending mailers out to every single county is only going to strengthen and diversify what you're doing, it's not going to hurt you.

Concentrating in one area is like driving for dollars and all that, that's a pile of malarkey. I think it was a great thing to do in 1971 when you didn't have the data that's available and the computers and all that, but now you really can plan, test and attack.

Jill DeWit:                            I appreciate ... You know what, Heather is probably the first person that I've ever heard come forward that's not trying to do their county or the next county over where they feel the need to drive there and touch it a...