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SFR vs Multitenant Investments (LA 1660)

Transcript:

Steven Jack Butala:Steve and Jill here.

Jill DeWit:Hi.

Steven Jack Butala:Welcome to the Land Academy Show, entertaining land and 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, we're going to talk about houses versus-

Jill DeWit:It's really the House Academy Show.

Steven Jack Butala:Oh, yeah. It's the House Academy Show today.

Jill DeWit:Yeah.

Steven Jack Butala:Houses versus apartment buildings. The name of the show is SFRs versus multi-tenant investments.

Jill DeWit:Mm-hmm (affirmative). Before we get into it, I have a question. Do you use all your luggage for hauling things other than clothing? Because that's what seems to happen to all of our luggage. I had to hold on, physically hold back my one good rollaboard because he wanted to fill it up with stuff.

Steven Jack Butala:Ammunition's really heavy, and the easiest thing to haul it around in that I found is suitcases.

Jill DeWit:The very nice Travelpro luggage that I have. And he tries to take them all. I'm like, "You can have them all, but you got to leave me one." I am not going to travel on a trip and have my clothes, have gun powder on my clothing when I unpack my suitcase.

Steven Jack Butala:It turns out men and women are real different.

Jill DeWit:Yep, exactly.

Steven Jack Butala: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 our Land Academy YouTube channel and comment on the shows you like.

Jill DeWit:Amy wrote, "Has anyone run into an issue with Redfin not having matches for zip codes in a county? Doing the Red Yellow Green Test. I wasn't sure if there's an alternative. I'm new to this." This is you.

Steven Jack Butala:People, especially really young people, believe that the internet sometimes is like a God-given right, like utility companies, like you turn the tap and the water comes out. It's a public service.

Jill DeWit:This should work. I just spent $1,200 on the 13 Pro, and I don't have 5G at this moment.

Steven Jack Butala:The internet is a collection of independent businesses, like Land Academy or LandStay, and we're here to make money. And so Redfin's no different. Redfin chooses who they do business with based on where a lot of real estate deals go down.

Jill DeWit:Like where the money is.

Steven Jack Butala:Which are cities. They're in bigger cities. The bigger the city, the bigger the real estate deals. We're in volume of real estate deals. Redfin has made a strategic decision, and I don't disagree with them at all, that they're just not going to have contracts with certain MLSs that are rural because they don't care. And that's fine.

Jill DeWit:They can do that.

Steven Jack Butala:Realtor.com is run by the National Association of Realtors and they have 100% coverage of the entire country. Zillow, 100% coverage from what I can see. Redfin has just got, I don't know, it's probably 60 or 70%, but it turns out we buy and sell rural vacant land a lot. So Redfin is not... Although they have the greatest data there ever was, they don't have 100% coverage. I don't know how else to say it.

Jill DeWit:No, that was fine. That was good.

Steven Jack Butala:Today's topic, SFR versus multi-tenant investments. This is the meat of the show. Here's the deal with commercial real estate. Here's how you make money in commercial real estate.

Jill DeWit:Okay, I'm going to settle in now.

Steven Jack Butala:You buy a piece of property. I don't care if it's an apartment building, a skyscraper, a trailer park. Doesn't matter. It's got tenants, and they pay every month, and you go about your merry way. It's a terrible return on investment if you line it up against any company, like a manufacturing company or a company like Land Academy. It's just not a good...