Splitting Parcels 101 (LA 782)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Hi!

Steven 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 sunny southern California.

Steven Butala:                   Today Jill and I talk about splitting parcels 101 all week this week. It's just how to improve your property or property improvement. Should you do it, shouldn't you do it. If you have to, splitting, for my money, is the best way to dramatically increase how much money you're making.

I'll go through the math in this episode and the process and why it's so incredibly valuable.

Jill DeWit:                            About when to do it, when not to do that.

Steven Butala:                   Yeah.

Jill DeWit:                            Okay, good.

Steven Butala:                   The whole deal.

Jill DeWit:                            Cool. I look at it this way too. What I love about splitting parcels, people always say, oh, they're not making anymore land. Hold on, hold on. You can add an APN.

Steven Butala:                   I love that. Hey, buy land. They're not making it anymore.

Jill DeWit:                            Watch me.

Steven Butala:                   Hey, get a new cliché.

Jill DeWit:                            Exactly. Watch me turn that.

Steven Butala:                   Watch Jill generate money-

Jill DeWit:                            Watch me-

Steven Butala:                   By making more land.

Jill DeWit:                            Make more land, and I'm not talking the Dutch way, like really making land, which they are doing, but it's a different way.

Steven Butala:                   Exactly.

Before we get into this though, let's take a question posted by one of our members on the Landinvestors.com online community. It's free.

Jill DeWit:                            Mike asks, hi all, what does it mean if the parcel owner listed on the county website is a title company? Do they own it or are they holding it for someone like a trust, etc? Would these be good to send an offer letter to? Thanks.

Steven Butala:                   Great question.

Jill DeWit:                            Awesome question.

Steven Butala:                   This is a Master's degrees, maybe PhD level question.

Jill DeWit:                            Exactly.

Steven Butala:                   Why the heck would a title company like First American Title, if you've, why would they own property? If you've ever processed data and sent a mailer out, this happens all the time. You always scrub through the data just to see where there's weird ownership because you don't want to waste time and money sending a letter to the city of Maricopa or-

Jill DeWit:                            The fire department or a church, well not church, yes, but fire department-

Steven Butala:                   Or hospital or any municipality or, in there is like, there is always questionable ones like what the heck is this? Should I send this or not?

Title companies are, they fall into that gray area, so here's the deal. When people buy property or they own it and they sell it on terms in the deed of trust way, which we don't recommend, they have to go or should go through a title company, and the title company creates the documents, does the whole thing. They create a deed of trust which puts a lien and a trustee on a prop...