Red Green Yellow Test for Picking a County Explained (LA 1428)

Transcript:

Steven Jack Butala:

Steve and Jill here.

Jill DeWit:

Hi.

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 beautiful central Arizona.

Steven Jack Butala:

Today, Jill and I talk about the Red Green Yellow Test for picking a county explained. We don't have a lot of dart boards in our office. We don't do a lot of guessing about real estate and whether we should buy it or sell it or where we should send a mailer.

Jill DeWit:

I wouldn't mind a dart board in our office, but for a different reason. Here's what I think about what this person told me.

Steven Jack Butala:

There's some politicians I'd like to put on a dart board-

Jill DeWit:

There we go. That would be nice.

Steven Jack Butala:

... But we'll talk about that later. 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.

Jill DeWit:

Mitch wrote, "Hello. So my first mailer did not get the response I was hoping for. I mailed one acre properties in Mojave County, Arizona targeting Meadview-

Steven Jack Butala:

Meadview.

Jill DeWit:

... Meadview, and I didn't get much response. Luckily I was able to purchase three properties, but all were from the same seller. Other than that, I had only two calls come through, one being a hate call. I understand that this county is a highly competitive market, which could be the reason I didn't get much response. However, I'm concerned that my pricing was way off and this is the reason I didn't get any takers. I priced my property at $652 per acre. Now I'm getting ready to send another mailer to Santa Cruz County, Arizona targeting Rio Rico's zero to two acre properties, and I was wondering if someone could give me any advice on pricing so I can hopefully get more response."

Steven Jack Butala:

Oh, you're going to get some advice from me in a second here.

Jill DeWit:

I've been waiting for it. I'm holding back, I know. "I know this is more of an art than a science, and I need to fail to learn, but I'm worried my whole thought process on pricing is inaccurate. Thanks in advance for any advice. Mitch"

Steven Jack Butala:

Mitch, this is not personal. I'm only responding to what you're saying here to help everybody who's listening to this.

Jill DeWit:

But put your face mask on.

Steven Jack Butala:

Yeah.

Jill DeWit:

Put your helmet on.

Steven Jack Butala:

Not going to use your name. I'm just going to assume that you're just somebody. This is not personal. You cannot send a mailer out for $652 for a piece of property and expect to get anybody to respond. You just can't. Those days are gone. They were gone in 1975.

Mojave County in Arizona is the county that I chose to, as an example, in both of the programs both the Cash Flow From Land Program and then Land Academy 1.0. 2.0 is about infill lots, so I used another county and I say, all the way through the programs, please don't mail Mojave County. Please don't use this. I'm only using it as an example. It's not the place to do this. Meadview itself is becoming a subdivision of Las Vegas. In fact, Jill and I just bought a mobile home there. I don't know when. It was like three days ago. We paid 5,000 bucks for it; it's worth 40, on a one acre property in Meadview.

Santa Cruz and Rio Rico, you just stop. There's 3,144 counties in this country. There are 13 counties in Arizona. They are grossly over-mailed. The same thing with Nevada. We have these Thursday calls and I have never been so proud as the last probably five calls that we've had. People are mailing counties that I've never heard of, and they're killing it. They're killing it especially on the East coast. This goes for everybody. Stop it with Arizona. It's over... And he even bought three properties. So it's not like you're not going to buy property.