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 Dewitt, broadcasting from sunny Southern California .

Steven Butala:

Today, Jill and I talk about the types of blind offers to send and the types not to send.

Jill DeWit:

Oh, I have a list. Believe you me.

Steven Butala:

This is one of those topics that just gets a little passionate about, and I love it.

Jill DeWit:

Well, only because we've done it all. I mean, I can honestly say, we haven't been doing this... Well, you, because you're much older than me, since the '90s, and tested every possible thing. There's a reason why we got to this point. The reason why we're successful, is the reason why our community is successful, and we all have the secret, and I'm happy to share it.

Steven Butala:

Awesome.

Jill DeWit:

For $10,000. Just kidding, I want to share it right now today.

Steven Butala:

Before we get into it, let's take a question posted by one of our members on the landinvestors.com online community. It's free, and if you're a Land Academy member, please join us on Discord.

Jill DeWit:

James wrote, "I'm in one of the states with a lot of rural lands and with thousands of lakes." Well, how lucky are you, James? You're bragging a little bit, and I think that's awesome.

Steven Butala:

You can brag, but those lakes are frozen, right now.

Jill DeWit:

Oh, well, there is that.

Steven Butala:

I'm from a place like that.

Jill DeWit:

Okay. "I ran the red, yellow, green test, and many of the counties look like good spots to mail. My problem is, it's hard to find any good average for the pricing, because of all the lakes. On a coastal lake are often higher priced, where a half mile to mile away are much cheaper. I was thinking I need to use in-fill lot pricing, but even on the zip code level, there's a lot of price variability. Do I have to price APN by APN? Or is there a way to price to get me in the ball park of a decent sized area?" This such a good question, because this is stuff that we talked about in the show yesterday. That's a common thing here, if you're doing an area like where we're sitting in Southern California. Ocean front and on the west side of PCH is a whole different pricing point versus one mile or even half mile or even yards away.

Steven Butala:

James, this is a question I asked myself, even today. I'm working a certain, very specific area in a specific state right now, and I looked at and studied and studied and studied pricing variances based on attribute, that's really what the issue is. And the red, green, yellow test, was designed to solve that for you. So, even in a rural area, if you take each zip code, if you're lucky enough to get the data and drop it into the red, green, yellow test, you're going to see where property is selling, and where it's not. So the theory is, property that's close to the lakes and cheap or cheaper, will sell faster. And then, so you can price that that way, so that's one way to look at it. And then if that's the case, and it almost always is, it's pure supply and demand, pricing and supply and demand go together.

Steven Butala:

Then you can extrapolate that and run the data sets that way, based on what you find from a zip code standpoint. But zip codes don't often comply with, let's say, shoreline, so what do you do? You have to pretty much run an APN scenario, and I just did it. All of this is more theory than reality. The fact is, if you stick 42 fishing lines in the water versus three, you're going to catch more fish and some of the fish that you catch are going to be small, and you're going to throw them back, because you don't want them. Some of the fish are going to be awesome, you're going to keep it. And some of the fish are going to be, you're going to shake your head and say, "This might be a record for this lake, for the biggest catch of all time,