Power in Numbers and Support (LA 853)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Hello.

Steven Butala:                   Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala.

Jill DeWit:                            And I'm Jill DeWit broadcasting from sunny southern California.

Steven Butala:                   Today, Jill and I talk about how there's power in numbers and support. Boy, that couldn't be more true. Think about caveman times. You're better in a group. Especially when there's older people teaching you how to do stuff.

Jill DeWit:                            Oh, yeah.

Steven Butala:                   Younger people with more energy. Everybody wins. It's not just a one-way street.

Jill DeWit:                            It's a circle. Yep.

Steven Butala:                   Before I get into it, let's take a question posted by one of our members on the LandInvestors.com online community. It's free. As you're listening, please drop us questions into the comment section below.

Jill DeWit:                            Okay. Walden asks, "I am building an offer application and was hoping for some input. In your experience, would you offer more if market value is more certain, i.e., like more comp data, like more completed sales data, or the opposite? I usually offer between 10 to 25% for rural vacant land, but I'm thinking more about the logic in choosing 10% over 25%."

Steven Butala:                   Man, there's so many schools of thought on this. And when you mean application, I hope you don't mean a computer program that prices property for you based on the other statistics in the actual line item. I hope that's not what you're doing. For years, people have been trying to do this, me included, and that's just not how it works, because every single market's so different.

Steven Butala:                   What you choose to do in Elko, Nevada, as a pricing scheme, is diametrically different than you would do in northern Michigan or anywhere else. I just chose those two places. Pulled them out of a hat. I hope it's not a computer application. 10 to 15 to 20% is only for rural vacant land. It's not for infill lots at all. Infill lots are all tied to the sale price of the house that you're going to build on it, and what the developer's willing to pay, and getting inside the head of a developer. A home builder, I should say.

Jill DeWit:                            I'm not a fan ...

Steven Butala:                   This is Walden. I think he's relatively new.

Jill DeWit:                            I'm not a fan of going out low, too. I don't know. I mean, I know people have done and done it successfully, but I can do just fine and probably pick up more properties pricing it at 25% and selling it doubling my money, and then I'm still way under everybody else. I'm not here to prove something.

Steven Butala:                   Yeah, there is nobody in this group that is making tons and tons of money offering five and 10% of wholesale, even, or retail.

Jill DeWit:                            Right.

Steven Butala:                   It's too low.

Jill DeWit:                            It's too low. You may be missing a lot of people.

Steven Butala:                   You're missing tons of people. And will you buy property? Absolutely.

Jill DeWit:                            Sure.

Steven Butala:                   Your mailer yield was going to go through the ceiling. It's going to take you 10,000 offers to buy one house.

Jill DeWit:                            Right. Meaning,