Millionaire - Pay it Forward (CFFL 566)

Transcript:

Jack Butala:                         Jack and Jill here.

Jill DeWit:                            Hey.

Jack Butala:                         Welcome to the show today. In this episode, Jill and I talk about millionaire and paying it forward.

Jill DeWit:                            Yeah.

Jack Butala:                         Giving some of it back. This comes in so many forms. Before we get into it, lets take a question posted by one of our members on the [landinvestors.com 00:00:17] online community. It's free.

Jill DeWit:                            Yeah. Richard asks, "Hey, after your purchase agreements have expired, do you try to negotiate with interested sellers for a lower purchase price, and how much less do you offer?"

Jack Butala:                         This is such a good question. I don't think there's anybody more qualified on the planet than Jill to answer this question. She loves being in this situation.

Jill DeWit:                            Oh, thanks. It just happens. So, I love it when they write back. But later on, years later on, sure. First, I'm just going to explain ... What we're talking about is we've sent out offers. When we send out our offers to who we have identified as our target sellers, we give them a timeline to act on. Maybe it's 30 days, maybe it's 60 days, maybe it's 90 days, it's kind of personal preference, basically, because we're sending them a real cash offer. Like, "Hey, we're interested in buying your asset, AKA property, for X. We're pending our review, and if you are interested, sign it here and send it back. We pay cash, this is the price, and this is good for," let's just say, "60 days," if you will. Because I don't want them to come back to me after six years and things have a lot changed. So, you need to have a date in there.

Here's what really happens, is sometimes people ... A lot of people act on it right away, but there are people that file it away for a rainy day. They may not be ready right now, but they file it away. And then, next thing that happens is years go by and sometimes it's that person, and they go, "Wait a minute, we need some cash right now. Hold on a moment. Remember that guy that sent us an offer?" And they're going back to the file. That happens. Or maybe something happened to that person, and the kids are finding it. Because things happen. Kids are looking through the file going through Dad's assets, and here's a letter, somebody wanted to buy it, because they don't want it. This is why they're reaching out to us years later.

So what do we do? I do review the property at that point. What's interesting is, it can go up but oftentimes, depending on when I sent the offer, the property might be worth less. So, can you renegotiate with a lower price? Yes. But I'm not trying to say, "Well, I would have given you 5,000 then, now I'm only going to give you two." No, I'm not going to do that to the person. I really sit down and review the property, and see what it's worth now, today. And they get that. So that's what it is. You re-review, see if you still want it, and then offer what is a good offer at today's market with what you can do with it.

And what's interesting is, a lot of stuff, I found, some of the properties that I was wanting to buy five, six years ago are kind of small.

Jack Butala:                         Yeah.

Jill DeWit:                            Have you had that, Jack? And some of the deals-

Jack Butala:                         It's [inaudible 00:03:13]. Well said.

Jill DeWit:                            Yeah. My-

Jack Butala:                         Over time your acquisition criteria changes.

Jill DeWit:                            Yeah. So some of things like, "Gosh, shucks. That's great. It's still worth $1,000, but I'm not doing deals like that anymore." And I don't really need to do a deal like that, and now doing deals of $100,000.