Price Precision Effect and How it Works for Us (LA 1280)

Transcript:

Jack Butala:

Steve and Jill here.

Jill DeWit:

Howdy.

Jack Butala:

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

Jill DeWit:

And I'm Jill Dewitt, broadcasting from sunny Southern California.

Jack Butala:

Today, Jill and I talk about The Price Precision Effect and how it works for us. This is exactly what Jill said to me right before we turned on the microphone, "Why do we have to talk about the stuff that's dry? I'm on my walk right now," as she's speaking for the listener.

Jill DeWit:

The listener, right.

Jack Butala:

I'm on my walk right now.

Jill DeWit:

I'm looking for a little bit of entertainment, please.

Jack Butala:

"Can you please just not talk about all this technical stuff, doom and gloom, and stop talking about this virus."

Jill DeWit:

Yes. Yeah.

Jack Butala:

"Stop talking about all these ... People are out there. Everyone just wants to chill out," to which I say, "I completely disagree." I think-

Jill DeWit:

Okay. All right. Please let us know.

Jack Butala:

I think we ... yeah, let us know which one.

Jill DeWit:

Please let us know which you prefer, Team Jack or Team Jill.

Jack Butala:

I think there's-

Jill DeWit:

Well, there's a little bit of both anyway.

Jack Butala:

I think there's a huge, huge opportunity for people. If you're listening to this show, you're obviously interested in making, generating some money from real estate or just some version of that.

Jill DeWit:

It's not entertainment. Steven has just made that crystal clear. If you want to be entertained, have fun, this is not the show for you. Thanks.

Jack Butala:

[crosstalk 00:01:26]

Jill DeWit:

If you want to fall asleep, if you would like me to read The Wall Street Journal, just kidding.

Jack Butala:

Wow.

Jill DeWit:

I'm just kidding.

Jack Butala:

We could do that.

Jill DeWit:

I know we could. And I know you'd be good at that. I mean, in a good way.

Jack Butala:

Believe it or not, this is my way of compromising.

Jill DeWit:

Oh, thanks.

Jack Butala:

I'm bending way toward-

Jill DeWit:

Okay. I'll do my best to save you.

Jack Butala:

Before we get into it-

Jill DeWit:

Not you. Listener you.

Jack Butala:

... let's take a question posted by one of our members on thelandacademy.com online community. It's free.

Jill DeWit:

Okay, so Rick wrote, "Hi. I'd like to acquire 11 properties in X subdivision," interesting number-

Jack Butala:

He said the subdivision. I took it out.

Jill DeWit:

I know. "In a-

Jack Butala:

In a subdivision.

Jill DeWit:

... In a subdivision, about," but he's got a specific subdivision picked out, which is very interesting, "about 20 acres each as a set. I can do the work. I'm looking for a cash partner. I need to acquire them all or nothing. In terms of greenery, I want seven that look nice." This is very interesting.

Jack Butala:

That's why I cleared it.

Jill DeWit:

"In green, in satellite images, and then I'll take four that are not very green." So funny. "I would like-"

Jack Butala:

Green meaning it has trees is what he means. Not green like in your wallet.

Jill DeWit:

It's green in those images, right? "And I'll take four that look kind of, eh," so, okay. "I've sold some properties in this county recently at about $800 an acre. The buyer was happy so I really have a good feeling about this. Would someone like ... I would like someone to let me know how much they're willing to pay to acquire all of them as a money partner. According to my research, cheap properties in this area go for about $1,000 per acre on LandWatch." So he sold them for about 800. There's a total of basically 250 acres in this subdivision, I'm guessing.

Jack Butala:

Jill's going to continue on here, but I have to say this, you are doing everything right. This is a classic example of how to just catapult your land career.

Jill DeWit:

"I don't want to blow the deal with the seller by making an offer that's to...