Start to Finish Transaction Walk-Through

Transcript: 

Jack Butala:                       Jack and Jill here.

Jill DeWit:                           Hi!

Jack Butala:                       Welcome to the show today. In this episode, Jill and I talk about a typical start to finish transaction walkthrough. From when you let that ... Send out that blind letter, all the way to put money in the bank.

Jill DeWit:                           Piece of cake.

Jack Butala:                       Before we get into it though, let's take a question posted by one of our members on a landinvestors.com online community is gree.

Jill DeWit:                           Cool. Joshua asks, "I'm doing my due diligence on a five acre property in Utah. On Google Maps and TitlePro, it looks like there is a road that runs directly through the property. There is no official name of the road shown on the maps, unlike the marked road that is south of the property. I'm not sure how I should evaluate this property and determine legal access. The road to the south of the parcel actually cuts through the neighbor's property. So, I do not believe I could consider that legal access. How would you evaluate with this?"

Jack Butala:                       Go ahead Jill. Or do you want me to?

Jill DeWit:                           You go ahead. I love it.

Jack Butala:                       Now is a good time to bring up the famous four A's.

Jill DeWit:                           Mm-hmm (affirmative).

Jack Butala:                       We evaluate every single property we purchase regardless of type, house, land, apartments, whatever. With the four A's they are acreage, more is usually better. Access, which is what this is all about. Which, it sounds to me like it has fantastic access, like you couldn't pray for better access. Affordability, in general cheaper is better for real estate. And-

Jill DeWit:                           Attribute.

Jack Butala:                       Attribute. I think this would follow, very good Jill. I think this would qualify as an attribute too. We've got a collection of 40 acre properties in Northern Arizona right now, that we're just about liquidated. And the one that went first, was the one that had a railroad going right through it. So, anything that makes your piece of property a little bit unique in that you can see it on a map or describe it, it's going to be an attribute.

Jill DeWit:                           Mm-hmm (affirmative).

Jack Butala:                       Imagine you're a buyer running through land and farm, or land watch, or land pen. And looking at all the properties for sale, and you're deciding which one. Oh, look at that one, it's got a road right through it?

Jill DeWit:                           I can get to it tomorrow?

Jack Butala:                       I can get to it tomorrow, we can put a cabin on one side, and a garage on the other.

Jill DeWit:                           Right.

Jack Butala:                       Or meth lab in this corner.

Jill DeWit:                           Park a school bus over here.

Jack Butala:                       All kidding aside, this is in general very, very positive thing. So, to talk about legal access, that's a whole different program. And you're going to have to check with the assessor and look at plat maps to see if it was a platted subdivision or if their problems has been unsubdivided. It'd be way beyond the scope of this.

But, I have to say, I try to think back if we ever turn a property down because of [crosstalk 00:02:56].

Jill DeWit:                           Because too many roads. No.

Jack Butala:                       Because it had a road going through it.

Jill DeWit:                           No. I've turned down properties because there was no road.

Jack Butala:                       Yeah. Actually, it was recently as today.

Jill DeWit:                           That's what I've done and I...