Rational Growth and Cash Flow in the Land Business (LA 1644)

Transcript:

Steven Jack Butala:

Steve and Jill here.

Jill DeWit:

Good day.

Steven Jack 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 the Valley of the Sun.

Steven Jack Butala:

Today, Jill and I talk about rational growth and cashflow in your land business.

Jill DeWit:

What if I don't want rational? I think I want through the roof growth.

Steven Jack Butala:

Well, that's one of the reasons you're the girl for me.

Jill DeWit:

There's nothing rational about anything that I do, is there?Actually, that's a whole nother show.

Steven Jack Butala:

Yesterday, we answered a question from a person who said, "I just sent out a thousand mailers. I got five calls back after about two weeks." And you can go back and listen to the question, and the first 10, five calls or whatever were from people that-

Jill DeWit:

Not interested.

Steven Jack Butala:

... We call it the hate. Just get me off the list. So this person, for whatever reason, that is within their comfort zone to send out a thousand mailers.

Jill DeWit:

Our comfort zone is 20,000.

Steven Jack Butala:

20 to 80.

Jill DeWit:

I know. At a time. He just lets them rip, by the way. I don't even know they're coming.

Steven Jack Butala:

Would I do that my first week in the business? No.

Jill DeWit:

Nope.

Steven Jack Butala:

So, that's what we're going to talk about here. Before we get into it, let's take a question posted by one of our members on the landinvestors.com online community. It's free. And don't forget to subscribe on the Land Academy Channel on YouTube and comment on the shows you like.

Jill DeWit:

Luke wrote, "I think it's going to be interesting to start a poll for everyone's average deal timeline from start to finish, meaning from the seller's signature to the end of the buyer's wire hitting the bank. Seems it's been longer with the corona backing up everyone, combined with forbearance ending, to jumpstart more investors buying homes." Is this home related or land related or anything related?

Steven Jack Butala:

It's land. And I know ... This is Luke, right?

Jill DeWit:

Yeah. Which Luke is it?

Steven Jack Butala:

It's not the Luke you know.

Jill DeWit:

Okay. Got it. All right. So, it's funny because I still have it all over the place. I have deals still where I put a sign in the ground and you go out and take pictures, and you have your photographer. If you're not doing this, please do this. You're in the process of buying the property. So while you're buying the property, you're already getting the photographer out there. So A, you get eyes on it by the way. Get your drone stuff done and you have everything ready to go. So when you own it, man, you can start marketing it right away. So one of the things that we also do too is put a stupid sign in the ground, as silly as this is. And I get calls and I'll sell property with a sign on the ground. I never even get to post a property for sale. So it's kind of all over the map.

Steven Jack Butala:

So let's apply some deconstructive logic here. Jill covered the sales part, as she always does.

Jill DeWit:

Thank you. That's all I know. I'm sorry. This is all I know.

Steven Jack Butala:

In every deal, there's constants and variables. So let's very quickly take a look at the variables. Variables are all about you. Well, I'm going to assume you bought it for a great price, because that's what we do here, in a great area that has been vetted through the red, green, yellow test and the whole darn thing. So, you know it's going to sell quickly, and it is. So now you've taken out all the stress of 100% of it. Here's the constants.

Jill DeWit:

Constant. That's a tough word.

Steven Jack Butala:

The constants, S-T-A-N-T-S, I think. The issue is freaking title agent. That's the problem. Because we've had title agents ...