Problems We Solve for Certain Seller Types (LA 1348)

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 are here to talk about the problems we solve for certain seller types. If you've been listening to our show all week, we had an interview, a great interview, with one of our members, [Tiffany Carter 00:00:25]. She shared her why she's successful and we made four or five shows out of it. Real important topics, I got out of the interview. I learned a lot. I learned a lot about her, her success, and I think she speaks for, in a lot of ways, our membership group.

Jill DeWit:

A lot of people. Mm-hmm (affirmative). I really do-

Steven Butala:

Yeah. And maybe not just our membership group, but a lot of people who are out there buying and selling land or real estate or whatever.

Jill DeWit:

Mm-hmm (affirmative). It's true.

Steven Butala:

Before we get into it though, let's take a question posted by one of our members, on the landinvestors.com online community. It's free.

Jill DeWit:

Don't worry, I have a lot more to say. I was just saving it for the show.

Steven Butala:

Oh, I'm not worried.

Jill DeWit:

Okay. Good. All right. Matthew wrote, "So I got a mailer response last week, and a couple in X County agreed to sell me their four parcels of land...

Steven Butala:

Awesome.

Jill DeWit:

... 15 acres total for $35000. Anticipated sale price is $80000. During due diligence, everything checked out except for the land use. Under land use, one of them is marked down as residential waste." That's kind of funny. "Then further down it says the zoning is RR2-

Steven Butala:

Rural residential, two acres.

Jill DeWit:

Mm-hmm (affirmative), minimum lot. And then the others are marked down as land using agricultural livestock raising-

Steven Butala:

Excellent.

Jill DeWit:

... which is also zone RR2.

Steven Butala:

Excellent. Excellent. Excellent.

Jill DeWit:

So here's what the county database says." Want me keep going here?

Steven Butala:

You don't need to read this.

Jill DeWit:

Okay. "So basically wondering if this type of land is marketable. I spoke with the assessor. She told me basically, when they planned out the subdivision, these were given these designations, because they didn't know what to mark it as. I will send specifics to other members if you're interested. Thanks ahead of time, is really hoping to get this first deal going."

Steven Butala:

And I actually answered this in Land Investors, which I don't usually do. And here's my answer.

Jill DeWit:

Okay.

Steven Butala:

You need to price this deal. There's a lot of money in here. And I really appreciate him giving the economics, buy for 35, sell for 80. You've got to price this transaction as if that residential waste property is going to give you zero. Do I think you're going to sell the residential waste property for probably really some good amount of money? Yeah, I do. I think that it was old civic planning, let's just call it. And unless it's underwater, which you can really tell on Neighbor Scoop, or there a lot of different resources, you can see what's going on. Then I think you're going to be in great shape. The other thing you can do is whatever property it's adjacent to, sell it with it. So you have extra land to do stuff on, but maybe it necessarily can't be built on.

The planning and zoning person was very helpful.

Jill DeWit:

That was really nice, to share that. And I believe that to be true.

Steven Butala:

Yeah.

Jill DeWit:

There's all kinds of stuff. Some times that I've talked to the County and everybody's scratching their heads. I'm like, how does that make sense? They're like, yeah, I know I just work here though. I didn't get to pick it.

Steven Butala:

So I'd go back to the dataset for that County.