Neighborhood Specific Pricing

Transcript: 

Jack Butala:                       Jack, Jill here.

Jill DeWit:                           Hi.

Jack Butala:                       Welcome to the Jack, Jill Show, entertaining real estate investment advice. I'm Jack Butala.

Jill DeWit:                           And I'm Jill DeWit, broadcasting this week from sunny southern California, where college tuition is no longer free.

Jack Butala:                       College tuition used to be free?

Jill DeWit:                           I had no idea. I don't even know ... When was that, Jack? Do you know?

Jack Butala:                       It was like in the 50s and 60s when California used to be free.

Jill DeWit:                           Well, it didn't apply to me then, and that must be why I don't know that.

Jack Butala:                       It didn't apply to me either, Jill.

Jill DeWit:                           That's true. Well, no I didn't mean you.

Jack Butala:                       I think it set the stage for the California aura.

Jill DeWit:                           Gosh, USC has come along way now.

Jack Butala:                       Love it or hate it, it's here to stay.

Today Jill and I talk about neighborhood specific pricing, probably much to Jill's chagrin. Before we get into it, let's take a question posted by one of our members on the JackJill.com online community. It's free.

Jill DeWit:                           Okay. Matt R asks, "Hey gang. My first mailer hit Monday." I love how specific this is. "October 9th. Here's the lowdown so far. I mailed 1,550 letters over three different counties in three different states in the Midwest, mid south, and the south. Approximately 500 each in each of these counties."

Jack Butala:                       Nice work, Matt.

Jill DeWit:                           Love it. "County number one bombed. I way underpriced. Offered $1,000 an acre, when in hindsight it should have been $3,000 to $4,000 an acre minimum, if not more. Lot of hate calls from this one, and so far nobody is interested in selling. County number two, a few tire kickers but not much. Not even much hate. Strangely quiet. But once again, I underpriced by at least 50%."

Jack Butala:                       Oh, getting this out of the way. Good.

Jill DeWit:                           This is really good. "County number three has been successful so far. Have bought several properties, and have four to six more in the pipeline buy. There's been a lot of interested sellers, and I have buyers calling the last few days on my recently purchased properties."

Jack Butala:                       Nice.

Jill DeWit:                           "They will sell hopefully by the end of the weekend. I am buying these properties for approximately $1,000 an acre and reselling for between $3,000 and $4,000 an acre. The first sale will recoup all the start up costs from the Land Academy course, the mailer, etc." I love it.

Jack Butala:                       I'm going to just ask you to stop one second here.

Jill DeWit:                           Okay.

Jack Butala:                       I included this question for this reason. This is a textbook way to do this. He diversified his risk into three separate counties instead of one, and he's recouping all of his costs. Our whole program is designed for you as a new business owner to recoup all of your costs, all your start-up costs-

Jill DeWit:                           Set yourself up.

Jack Butala:                       And it's all profit from there on out.

Jill DeWit:                           Exactly.

Jack Butala:                       So, he's doing this perfectly. We really are not here to franchise the heck out of something and make money off of your business forever.

Jill DeWit:                           Yep.

Jack Butala:                       In fact, we're not here to make money on it at all.