3 Critical Success Points in Every Land Deal (LA 1694)
Transcript:
Steven Jack Butala:
Steve and Jill here.
Jill K DeWit:
Good day.
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 DeWit broadcasting for the Valley of the Sun.
Steven Jack Butala:
Today, Jill and I talk about the three critical success points in every land deal. If you can envision a flow chart, a chart of all little events that happen starting from when you find an area that you want to send mail to all the way to when you get that check in your hand or that wire transfer on the sale, there's all these little points in between, but there's three of them that I think are imperative and critical. And we'll talk about that.
Jill K DeWit:
Okay. I was thinking something funny-
Steven Jack Butala:
What's your interest level in land today, Jill?
Jill K DeWit:
Well, first of all, I notice have an earring and that's kind of falling out. So I want to fix that.
Steven Jack Butala:
You should do a whole show about...
Jill K DeWit:
I've got that taken care of.
Steven Jack Butala:
How interested is Jill in this really?
Jill K DeWit:
Oh my goodness. I feel so bad. I was really trying to hang in there yesterday when we were doing some... It's career path and we were, you were in a deep discussion and it's just your side of the sheet. And it's data stuff that like the back of your hand.
Jill K DeWit:
And everybody's leaning in and drooling and I'm like, "Stay awake, stay awake, stay awake." So funny. I'm like, "Don't zone out. They can probably see that." As I'm trying to. So that's not happening here, but my mind goes other places. I'll be honest.
Steven Jack Butala:
Before we get into it, let's see if this will wake Jill up.
Jill K DeWit:
Oh, good, let's take a question posted by one of our members on the landinvestors.com online community, it's free and don't forget to subscribe on the Land Academy YouTube channel and comment on this shows you like.
Jill K DeWit:
Kim wrote, is there a dollar amount for a sale? Would it make sense to involve an agent? Oh, I like this question. This is kind of a, my question. Thank you for doing this.
Steven Jack Butala:
Sure. Sure.
Jill K DeWit:
We're buying a property for $8,500 and based on comps, expect to sell it for a minimum of $25,000, maybe up to $40,000. Hey, nice numbers, Kim. This is where I would like the experience of a local agent, but I'm curious your thoughts. We plan to self close, but would need tile insurance, et cetera, on the sell side. All right, this is shaping up great. This is an awesome deal. I love these kind of a numbers-
Steven Jack Butala:
She's interested now.
Jill K DeWit:
Shucks. You could do 20 these a month. Think about that. And with the person that you hired from the show yesterday that we talked about and no, I think those are great numbers. So that's a good number. I think 25 to 40,000 number. I have brokers that will get involved and they are interested.
Jill K DeWit:
But what they will do is like, the good ones we'll have this conversation with you go look, all right, here's the deal though. I'm happy to take the deal down, but I need a minimum of X, maybe it's $4,000 or something like that because my cost costs, I have assistance. I have to get the photographs. I have a team. So if I can make a minimum of X, I'm happy to do it because my percentage would leave me with negative $10.
Jill K DeWit:
That's not going to work by the time I'm done. And I'm totally good with that. And you may need to offer that and maybe you found someone great, but they're worried about it. Commission wise, the percentage is so small. You could say, look, what is a minimum flat dollar amount that you would be interested in, that you could get?
Jill K DeWit:
And I think that's wonderful, the sweet spot, I have a relationship with these guys. So now that I bring them whatever size and they're good with it.