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Renovation Nightmares (HA 1675)

Transcript:

Steven Jack Butala:Steve and Jill here.

Jill K DeWit:Hi.

Steven Jack Butala:Welcome to the House Academy Show today. Entertaining real estate investment talk. I'm Steven Jack Butala.

Jill K DeWit:And I'm Jill DeWit, broadcasting from the Valley of the Sun.

Steven Jack Butala:Today, Jill and I talk about renovation nightmares.

Jill K DeWit:Is this not a show? This should be a show.

Steven Jack Butala:I think it might be.

Jill K DeWit:If not, it should be.

Steven Jack Butala:You mean just like a title on HGTV?

Jill K DeWit:It should be. That would be cool. Speaking of which, I have one of my notes here is the first thing I was going to share is when we have done renovations, it does give you nightmares. That's a real thing.

Steven Jack Butala:I'm going to really press [crosstalk 00:00:40].

Jill K DeWit:Documented.

Steven Jack Butala:When we get into the topic here, I'm going to give you a mathematical example of all the things you can do with an asset that really make you money, a real estate asset, and all the things that are setting yourself up to fail. It's basically a roulette situation when you renovate a house.

Jill K DeWit:Understood.

Steven Jack Butala:Before we get into it, let's take good question posted by one of our members on the landinvestors.com online community. It's free. Understood. And don't forget to subscribe on the Land Academy YouTube channel and comment on the shows you like. Where does that come from? Do you feel like you're in the military when we do this show?

Jill K DeWit:Sometimes.

Steven Jack Butala:Where do you rank?

Jill K DeWit:Yes, sir.

Steven Jack Butala:Do you rank higher or lower than me?

Jill K DeWit:Oh, I'm way lower. Pretty far down there.

Steven Jack Butala:Oh, that's strangely attractive. I don't know why. Something's wrong with me.

Jill K DeWit:Yes. Yes, sir. All right. Luke wrote, "Responding to tire kickers on Facebook is exhausting. I've developed a system that works well for selling houses with owner financing on Facebook. It could be used for land as well. So it goes like this. Ad goes up on the marketplace. Regardless of who responds via Messenger or what questions they ask, I respond with a couple paragraphs about the price, address and what the house needs, if work is needed, and then instruct them to drive to the house and call the number on the sign in the yard. When they call me at that number, I know they follow the instructions and are sitting in front of the house. Then I get them inside. Most won't even do this step and they aren't serious buyers anyway. So it doesn't matter if I piss them off." That's good.

Steven Jack Butala:This is brilliant.

Jill K DeWit:I saw this.

Steven Jack Butala:Here's why. There's an old rule in sales. Not that I should really be talking about sales at all, because that's just Jill's thing. But if you want to vet people, ask them to do something. It's a legal thing too. It's customer service more than anything.

Jill K DeWit:We do it for hiring. Yeah.

Steven Jack Butala:With customer service, if someone just calls livid about whatever you're selling or why they're your customer and why they're upset, your response can be, "I really understand that you're upset. Please do this, this and this, and we will rectify the problem for you." And virtually nobody does any of that stuff.

Jill K DeWit:I do.

Steven Jack Butala:As a customer?

Jill K DeWit:Yeah. Oh, I'll do both.

Steven Jack Butala:Well, that's because if you get mad, there's a real reason.

Jill K DeWit:That's true.

Steven Jack Butala:So I think this is brilliant. Go to the house, sit in front of there, call me on the number and I'll get you inside, and we'll talk about ... So probably that avoids probably 90% of the garbage. So I think this is brilliant, obviously because I put it on the show.

Jill K DeWit:That's awesome.

Steven Jack Butala:Today's topic, renovation nightmares.