Too Much Computer Work (CFFL 448)

Jack Butala:                       Jack Butala with Jill DeWit.

Jill DeWit:                           Hi there.

Jack Butala:                       Welcome to our show today. In this episode, Jill and I talk about too much computer work. Boy, am I going to be brutally honest in this show, Jill.

Jill DeWit:                           Like you hold back? I've never heard you hold back. Oh, bring it. Let's see what's different.

Jack Butala:                       You know they don't let me swear in this show? No, nevermind.

Jill DeWit:                           Okay.

Jack Butala:                       Let's take a question posted by one of our members on the landinvestors.com online community. It's free.

Jill DeWit:                           Okay. Rick asks, "I'm working on buying an Arizona property. I'm buying low and I'd prefer to keep that exact value off the public records if possible. I figure whoever buys it from me will take a look at the records. My questions are, one, do I need to write the actual value paid on the warranty deed, and two, do I need to write the actual value paid on the affidavit of property value?"

Jack Butala:                       Go ahead Jill, you're an expert at this.

Jill DeWit:                           I am an expert on this. Okay, so number one Rick, no. On the warranty deed you do not put the value. You never put the value on the deed, ever, ever.

Jack Butala:                       Never, any circumstance.

Jill DeWit:                           It'll say a flat, like, $10 or from good and valuable consideration, something like that. Copy the verbiage on the vesting deed, the deed just before this one. I'm sure it has something like that, and that's what you want to do. You never put the exact amount on there. Now, number two, the actual value paid on the affidavit of property value, that's where you write the value, and the answer's yes. Then, you don't put in the doc prep fees, you really just put what you paid for the property, because you want it to be assessed at that rate. You want to keep the taxes down, which is really what they're going to look at, and that's why. Then the bigger picture is, the guy who's buying it from you, if he goes and looks it up, if he even knows how to A, I'd be shocked.

Jack Butala:                       Me too.

Jill DeWit:                           B, I don't really care.

Jack Butala:                       That's the big picture point here.

Jill DeWit:                           I mean, when was the last time, Rick, that you were looking to buy a car, and you went to look up what the dealer paid before you bought it? Did that really make a difference?

Jack Butala:                       No, you just love the car.

Jill DeWit:                           My guess is probably no.

Jack Butala:                       You bought the car because you love it or you need it.

Jill DeWit:                           Exactly, mm-hmm (affirmative), or you need it. We don't usually go, and by the way, if you do go to that dealer and you say, "Hey, I know you paid $2,000 less so I'm only going to give you this much money," they're going to say, "Have a nice day."

Jack Butala:                       There's the door now.

Jill DeWit:                           That's not going to work. You know, that's the thing. When you're going to sell your property, it's just not discussed. It really is, "This is what the price is." The way we do it is, sure, I bought mine really, really low, but I'm still selling it undervalued low, so my buyer does feel good about it no matter what. Now, if I was selling it way, way marked up more than what everybody else was paying, then I better have something to show for that kind of thing, or my buyer's crazy. I don't know. That's not how we roll anyway. I'm buying something half or less than half of what I think market value is. I'm marking it up a bit,