3 Biggest Roadblocks to Success in Land Investment (LA 1804)
Transcript:
Steven Jack Butala:
Steve and Jill here.
Jill K DeWit:
Hi.
Steven Jack Butala:
Welcome to the Land Academy Show, entertaining land, investment talk. I'm Steven Jack Butala.
Jill K DeWit:
And I'm Jill K DeWit. Broadcasting from sunny Southern California. Haven't said that in a while.
Steven Jack Butala:
It just rolls of the tongue, doesn't it?
Jill K DeWit:
It does. Actually, I still have to think about it. I'm used to the valley of the sun now, but we'll get it.
Steven Jack Butala:
Today, Jill and I talk about the three biggest roadblocks to success in land investment as I think the members see it, not necessarily how I see it.
Jill K DeWit:
I would like to pause and note, if you're watching this, you see a different background, we're not our usual thing and we're certainly not at the beach where you're used to see the bikes going by behind us. So we are in a sweet Airbnb for the whole month of July, so that's what's going on.
Steven Jack Butala:
The audio video production will suffer because of that, but I think our attitudes are a lot better.
Jill K DeWit:
That's true. Good point.
Steven Jack Butala:
Before I get into it, let's take a question posted by one of our members on the landinvestors.com online community. It's free. And I hope you know that we have a full blown operational commercial printing company called Offers, the number two, owners.com. Jill and I set it up a bunch of years ago out of our own frustration of trying to get our own mailers out with a regular non-specialized commercial printing company. If you'd like more information, it's the cheapest to best places to send a mailer. Trust me, check out support@offers, the number two, owners.com or just go to the website.
Jill K DeWit:
Jaylen wrote, "I hope everyone had a great 4th of July. Is there anyone in here that's working with commercial vacant land. I'm getting ready to send in a mailer and I have a couple questions about it.
Steven Jack Butala:
I'm just going to basically talk about it. I know, Jaylen, a lot of people piped in. Here's how I handle commercial vacant land. We keep it in our mailers. If I decide to send a zip code, a mailer out to a zip code, I certainly keep in every land type that's in there at all, commercial, industrial, there's all, most of the places we send mailers, different types of commercial property. So there's two schools of thought here. You have to figure out which one's best for you. If you just look up commercial real estate or segregated out, segregate commercial property from everything else, let's say, we just talked about this in the advanced call a couple days ago, what you're going to find is very small numbers. So you might have a really populated county or zip code, and you're going to I just want to look at commercial property and you're going to see that it's the numbers are 5% of the actual number of properties in the entire data set.
So number one, that can be an advantage or a disadvantage. The advantage is this, small numbers like that, you can price it individually, you can apply a lot of methodology to pricing, but it's generally doable by hand. So I can look at every single property and price it and say, "Oh yeah, it's worth $250,000, I'm going to offer 25% of that." Go to the next one. "It's worth $350,000, I'm going to offer 25% of that." And on and on and on. There's a lot more data on commercial vacant land than there is on just regular, rural vacant land. The bad news is you're now about to send out a 500 unit mailer, what do you think about that?
Jill K DeWit:
Well, this sucks. I need more phone calls than that. So do it times 10, please.
Steven Jack Butala:
The best of both worlds is find about 10 places, 10 zip codes, or 20 zip codes to send a commercial real estate mailer, spend some time pricing it, and whoever's going to answer your phone, well, in your case it's probably going to be you because I know you'...