Tiny Houses RVs and Mobile Homes (LA 783)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Hello.

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 tiny houses and RVs and mobile homes as ways to improve your property. Should you do it or shouldn't you do it? I don't know, we're gonna talk about the pros and cons and the whole point to all of this.

Jill DeWit:                            What's involved and that stuff.

Steven Butala:                   Before we take a look ... Before we take a question posted by ... (laughs)

Jill DeWit:                            What?

Steven Butala:                   Me. Before we actually get into the topic, let's take a question posted by one of our members on the LandInvestors.com online community - it's free.

Jill DeWit:                            Rod asks, "Hello, I have one seller with several properties he wants to sell. I don't have the money to buy them all. What is the process to tie them all up in an agreement? I have heard this mentioned in podcasts and webinars. I don't remember what you call this technique. I'm not talking about an option. Besides the obvious reasons, could this be done without a title company? Is there some other way to put the land into escrow? Thanks."

Steven Butala:                   Want to do it, Jill?

Jill DeWit:                            You go ahead.

Steven Butala:                   It's called a release or at least that's what I call it. It's called a lot of different things, but I call it a release, and here's what happens. Somebody's got 100 properties, but you only wanna spend money for 10 of 'em, and it's a smokin' deal, right. It's worth going through all this stuff. So you ask the escrow agent ... Yes, you ask the escrow branch that you're working with to give you the most experienced agent in the branch, you don't wanna do this with a brand new agent. And they will write up the deal as if it's all 100 properties, they'll do one title insurance policy, cheap, cheap, cheap now, and you ask them to do 10 releases.

Jill DeWit:                            Like a month, you could spread it out however you want.

Steven Butala:                   Yeah, one a month.

Jill DeWit:                            Whatever you and this seller agree on, so, and they love it.

Steven Butala:                   And now they're "tied up" and the theory is you use those first 10 deals, the cash that you generate, so do the next release and the next release, and the next release. So, in the end you only actually have to come up for the money for the first release. I've done this a lot of times, I've done this and made millions of dollars per transaction actually.

Jill DeWit:                            Right because here's what happens, as you're buying them and as you're selling 'em, now you could actually speed up the process if you want. Maybe it's a release of 10 the first month, and then it's now we've got the cash from the first 10 and by month three let's say, the 10 that you sold in month two, or somethin' like that, now I can go, I can buy 20 at a time, and then I can buy 40 at a time and just keep and doing it that way.

Steven Butala:                   Exactly.

Jill DeWit:                            You can, yeah, you can spread this out over whatever you and the seller agree on. The escrow agent works for you, you get to call the shots and tell 'em what you want.