Why Aren't You Rich Yet (1028)

Transcript:

Steven Butala:                   Steven 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 sunny Southern California.

Steven Butala:                   Today Jill and I talk about the topic why aren't you rich yet.

Jill DeWit:                            Did I come up with this, or you come up with this?

Steven Butala:                   I did. I went back and forth on it. I'm like you know, but we need to talk about it.

Jill DeWit:                            But, and I'm going to not soften it, but I have a spin on it that I think you'll like.

Steven Butala:                   Okay, good.

Jill DeWit:                            Okay good.

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.

Jill DeWit:                            Edgar asks, "A seller contacted me about a house that is a tear down that he inherited. Comps are all over the place, but the home isn't really worth much. The land is zoned for multifamily and I need help analyzing this. I'm almost inclined to offer $120,000 just for the land, but then again, I don't want to scare off the seller. Anyone interested, I'd be more than happy to provide the property address, et cetera. This will also be a great partnership offer, so anyone with this kind of capital would be great, and either tips and hints will be greatly appreciated." I like these.

Steven Butala:                   Edgar, I'm not picking on you, but I chose this for a reason and it's not pretty.

Jill DeWit:                            Uh oh.

Steven Butala:                   This is exactly why people fail at doing a real estate deal and they get out of this business forever, and it's tragic. Every week people come to Jill and I and they say, "hey, I got this deal," and it's all over the map. I've been approached by people that have land in Costa Rica and stuff. This deal wasn't generated from a mailer, meaning you didn't go through it. This is data week, by the way. This is the last part of data week, last episode.

Steven Butala:                   When you put a mailer together, and if you do it according to how we teach it and how we mentor it, there's a tremendous amount of brain power, and knowledge, and tools, and access to tools, and assessor data, and all kinds of stuff to ensure that you're not going to fail. That there's pricing methodologies and comparison values and all kinds of algorithmic, incredible intelligence that goes into pricing a mailer so that when somebody opens their mail on their kitchen table in the morning and they're having a cup of coffee, and it says, "Hey, I'd like to buy property in Nevada or wherever for $32,314.18." That's not an accident.

Steven Butala:                   When I hear a question like this, "Hey, my buddy called and I got this property, he inherited it, he doesn't understand, and I'm thinking about $120,000. What do you think?" That you're setting yourself up to ridiculously fail.

Jill DeWit:                            Exactly right.

Steven Butala:                   And it's insulting. It's insulting to everybody who is a professional real estate investor. They're just kind of tick, have a beer and throw a dart at the board and $120, $130, $140, $95,000, I don't know.

Jill DeWit:                            Exactly.

Steven Butala:                   Edgar, I'm not picking on you specifically, I'm just saying there's way more into it that goes into this than just picking a property and trying to see what happens.

Jill DeWit:                            Exactly.

Steven Butala:                   In fact, I would go so far as to say this, and I'm not saying it to you,