Seller Signed & Mailed Back My Offer - What to Do

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Jack Butala:

Jack Butala here for Land Academy. Welcome to our "Cash Flow For Land" show today. In this eight part series, Jill and I talk about what to do when sellers begin to start calling you back based on the offers you sent them in direct mail. It's a thing we talk about all the time. This is episode three of eight, it's called, Seller Signed and Mailed Back My Offer, What Do You Do? Best Case Thing That Can Happen? Jill, great show today, great episode.

Jill DeWit:

Oh yeah.

Jack Butala:

Why don't we start? Let's take a question from a caller.

Jill DeWit:

Sure, okay. Scott from Denver asks, I'm unable to understand the merits of this "acquire as many properties as possible" approach when compared with the approach of purchasing just one or two properties per year or even one property every couple years or purchasing larger and nicer properties each time. Can you help me understand? This is so up your alley, Steven, I love it.

Jack Butala:

Can you believe how smart some of these listeners are?

Jill DeWit:

I know.

Jack Butala:

We have really smart people in this, even in our members, it's just ... When we started all this I didn't intend for this to ... It's good, it's refreshing.

Jill DeWit:

I would agree.

Jack Butala:

Yeah, this is right up my alley. This is actually my business philosophy and Jill and I are slightly different on this. I'm a big fan of not negotiating ... It actually parlays into the topic today. I'm a huge fan of really not negotiating the buy or the sell price. In fact, doing as little communication as possible. The result of that or the consequence or the result of that is you're probably slightly paying too much for the property and slightly selling it for too little but you're doing it way more often. It's the age old concept of, "Yeah, we're not making a ton of money on this deal or maybe as much as we can but we're making it up because we do so many more deals because of this philosophy.

In the past I've worked with people who just, they can't, they could never digest that concept. In real estate specifically because ... I'm not sure why but in real estate everybody seems to want to maximize price. Here's the question that I would ask this caller. Would you rather make $20,000 on a deal that you're flipping, a land deal that you're flipping over an eight month period or would you rather make $5,000 in a week and then move on to the next deal and make $5,000, and $5,000, and on and on and on. That's the way obviously Jill and I, you and I run our show that way. Scott from Denver, I'm sure that that answered your question. If it didn't let us know.

Jill DeWit:

I was going to say too it's I think scary holding out for that one home run deal. What if it doesn't come along? It's an interesting concept, I totally get what he's saying but gosh. Sometimes I think, to add to what you said and agree, gosh the work that goes into that you could have flipped so many other things along the process for a lot less work, a lot less time, a lot less energy, and have these same results. Even worse case scenario, same result, you know?

Jack Butala:

Yeah it's, we're doubling our money. Our business model ... We're not selling ... This isn't a 20% margin business and maybe it should be but we double our money. We buy properties. A typical deal for us, we buy a property for, I don't know, $1,000 or $2,000, Jill, and sell it for four or five. Really, really, really quickly. Then the person that buys it from us, then they make the real money.