Talking to House Sellers (JJ 637)

Transcript:

Jack Butala:                         Jack and Jill here.

Jill DeWit:                            Hi.

Jack Butala:                         Welcome to the Jack Jill Show, entertaining real estate investment advice. I'm Jack Butala.

Jill DeWit:                            And I'm Jill DeWit, broadcasting from sunny Southern California.

Jack Butala:                         Today, Jill and I talk about talking to house sellers, let's say, versus to land sellers. There are some pretty substantial differences, don't you think, Jill?

Jill DeWit:                            Well, wait, wait, wait, wait, wait. You don't like to talk except for this show, so I've got to know who this is direct ... This is obviously do as I say, not as I do.

Jack Butala:                         So no. We-

Jill DeWit:                            How many house sellers have you talked to recently, Jack?

Jack Butala:                         Actually a couple.

Jill DeWit:                            Okay.

Jack Butala:                         Not-

Jill DeWit:                            By default?

Jack Butala:                         Maybe less than 10, and it's not because-

Jill DeWit:                            It's because-

Jack Butala:                         It's just because I want to learn.

Jill DeWit:                            Oh, okay. I was just going to say-

Jack Butala:                         And because we're really cranking up our house effort.

Jill DeWit:                            That'd be funny if, like ... I don't know, ask Jack. Here, let's give you Jack's number. Could you imagine if you're the front line?

Jack Butala:                         I would do that. Like, if I said, "All right, Thursday is talking to house seller day."

Jill DeWit:                            Yeah, but no.

Jack Butala:                         Then I could do it. But if it was just on the fly-

Jill DeWit:                            They want to talk Sunday night.

Jack Butala:                         Yeah, I know.

Jill DeWit:                            They want to talk Wednesday morning.

Jack Butala:                         Oh my gosh.

Jill DeWit:                            And they want to talk and talk and talk.

Jack Butala:                         You're right.

Jill DeWit:                            Okay.

Jack Butala:                         Hey, thanks for bringing me back to reality.

Jill DeWit:                            Sorry. That's what I thought this was about. I'm like, "Where is he going with this? I can't wait to hear."

Jack Butala:                         Before we get into this topic, let's take a question posted by one of our members on the jackjill.com online community. It's free.

Jill DeWit:                            Okay. Jason L. asks, "Hello, everyone. I had a potential buyer just call me. I did what Jack said and made a few Craigslist posts in the county I sent letters to. Buyers called me, and we chatted for a long time. He's an OTR trucker who-"

Jack Butala:                         Over the road.

Jill DeWit:                            Okay, thank you, "who wants property to settle down and start his family on. I really liked his story and I wanted to help him. He divulged to me his whole financial situation. I have a parcel of land that I can offer him. My question is, how long would you take out a terms deal? I can sell him the land for $80 to $100,000, but it would take 20 years to pay it off. Something will happen within that time, and I will probably have to foreclose. I'm trying to talk him into a cheaper property, but I do not want to have ... I do not have that acreage for sale yet. The mailer just went out today. What is the maximum years you would take out a terms deal? Would it have to factor in the down payment amount, the monthly payment, total profit for the deal?