When to Partner on a Deal (LA 773)

Transcript:

Steven Butala:                   Steve and Jill here.

Jill DeWit:                            Hi.

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 gorgeous Southern California.

Steven Butala:                   Today, Jill and I talk about when, or when not to partner on a deal. This never goes away.

Jill DeWit:                            That's true.

Steven Butala:                   No matter how large your organization gets, your real estate company, every single time I do a deal that's larger than 100 grand now, we have that talk. I mean, Jill and I are partners. Some version of this is going to happen for your whole career.

Jill DeWit:                            It's true.

Steven Butala:                   Jill and I, obviously we partner every single deal.

Jill DeWit:                            That's true.

Steven Butala:                   Sometimes we buy property, and put them in one of Jill's companies. Sometimes we put it into one of my companies. We have companies together. Depending on where we want the liability to fall, but then sometimes we don't put up the money.

Jill DeWit:                            That's true.

Steven Butala:                   Probably about on ... I don't know, 50% of the larger deals.

Jill DeWit:                            Right.

Steven Butala:                   We don't put the money up.

Jill DeWit:                            Exactly, and so we're doing partnerships.

Steven Butala:                   Somebody else does, and we split it. Yeah.

Jill DeWit:                            I think this is really timely too, because a lot of our members are at that point. Well, a lot of our members get there, but they have a really good mailer, too.

Steven Butala:                   Yeah. They run out of money.

Jill DeWit:                            Yeah, that's it. This actually comes up a lot. And this is what I think takes up the majority of our deal board in our online community. It's the thing in the backend for our members, where they can partner on deals, and find deals, and share deals and-

Steven Butala:                   It's a huge benefit to Land Academy that-

Jill DeWit:                            It's so cool. Just having access to each other-

Steven Butala:                   We never talk about it-

Jill DeWit:                            Yeah. So we talk about it-

Steven Butala:                   Let's talk about it today.

Jill DeWit:                            On the one-off, so now we'll talk it about on the show. Thank you.

Steven Butala:                   Before we get into it, though, let's take a question posted by one of our members on the Land Investors online community. It's free.

Jill DeWit:                            Veronica asks, "I've been studying since January, and sent out my first mailers mid-May. My focus has been Tennessee, and the county I picked apparently has a lot of price differences within the county. After talking with a local realtor and looking at sold comps, I overpriced two properties from sellers I'm in contact with."

Steven Butala:                   That's okay. Jill's going to have a lot to say about this. Because I overprice. I do the mailers in our organization, and I overprice stuff sometimes.

Jill DeWit:                            Yeah, sometimes that happens. That's okay.