Zip Code Red Yellow Green Test for Infill Lots (LA 814)

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 sunny Southern California.

Steven Butala:                   Today, Jill and I talk about ZIP code red, yellow, and green tests that I came up with for infill lots.

Jill DeWit:                            Yes. I'm excited. I'm really excited.

Steven Butala:                   It's exactly what it sounds like. You take a ZIP code. I'm going to use Mesa, Arizona for an example. Mesa is like the second largest city in Arizona. It's a suburb of Phoenix, second to Phoenix. There's, I think, eight ZIP codes. You take the free data from Redfin, or from Realtor.com, about all the statistical completed sales, active listings, all the real estate listed data from both the assessor and the MLS, and you pit each ZIP code against each other to find out where you're going to send offers to owners, where the property's moving the fastest or the days on market are the lowest. There's a bunch of statistics. At the end, you yourself can red, green, or yellow where to send out mail so you can re-sell it fast and quickly. It removes a tremendous amount of risk on this. Jill and I have only started doing this ... I came up with this crazy scheme because I found out the data was available, this year, 2018.

Jill DeWit:                            I'm going to ask you a lot of questions when we get to the meat of the show and that, I think, will help-

Steven Butala:                   We're buying property-

Jill DeWit:                            ... fill in all the gaps.

Steven Butala:                   We're buying property left and right. It works. We have not released it to the public, but we're going to release it with Land Academy 2.0, our education program, and in January, if all goes right, House Academy. 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:                            Michael asked, "Has anyone sold multiple properties to neighbors that are not adjacent to the property that you own? I'm wondering if it's worth sending out direct mail to owners within a certain radius of my properties. Thanks and regards, Mike."

Steven Butala:                   Good question. Should you go, or should I?

Jill DeWit:                            I think that would be ... I'm going to dive right in.

Steven Butala:                   All right, good.

Jill DeWit:                            I think you'd be nuts not to, because who knows how many people three lots over have been eyeing that lot and the view, or their relatives want to be out there with them, but not that close. Close, but not too close. There's so many reasons. I don't want to steal your thunder, Steven, but-

Steven Butala:                   Well, let me give a little bit of background for a new person in real estate. When you buy a piece of property, you send out a bunch of mail offers and some come back and you buy a piece of property. The most logical candidate to sell that property to is somebody who lives real close by or owns property very close by, and I agree with Jill. Why just send it to the five or six people that are right adjacent to that lot? Choose a radius, like a mile or so, and send it out.

Jill DeWit:                            Exactly.

Steven Butala:                   You already have the data.