Are Land Acquisitions Seasonal (1023)
Transcript:
Steven Butala: Steve and Jill here.
Jill DeWit: Good day.
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 are land acquisitions seasonal?
Jill DeWit: Are they?
Steven Butala: I don't really think so, and I know you do.
Jill DeWit: Oh, yeah [inaudible 00:00:22] been the opposite.
Steven Butala: What?
Jill DeWit: Wait a minute. You're the one who used to think that it stopped over the holidays, and I used to have to talk you out of it.
Steven Butala: We'll talk about it in a second.
Jill DeWit: Oh, he's changed. He's come over to my side now.
Steven Butala: I think there's opportunity all the time. I don't however, I do see huge dips in land sales during holidays and stuff.
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: Jill disagrees.
Jill DeWit: We'll talk.
Steven Butala: I think houses sell like hotcakes during those... We'll figure it out.
Jill DeWit: We'll talk.
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: Marcus asks, "I offered $73,000.00-"
Steven Butala: $73,632.00.
Jill DeWit: $73,632.00, okay.
Steven Butala: $73,000.00 dollars actually.
Jill DeWit: Okay. "I need funding for 59 acres in east central Tennessee. The owner inherited the property and accepted the price on LandsofAmerica.com," the land selling website, "In the town that this parcel sits, there are 11 comps in the 50-65 acre range, and the cheapest being $125,000.00 for 58 acres. So I'm thinking there may be a way to get this done. However, near the road the property surrounds a trailer that sits on it, on its own two acres, and it appears that the owner has made a mess."
Jill DeWit: Okay, so we have a couple of things going on here. Number one, we're talking about just the offer price and what's out there available so I'm going to address that first. If the cheapest out there is $125,000.00 for the similar size, similar property, area, and you've looked everywhere and you've come up with at least 10 comps let's say and this is the cheapest of those 10, I still want to be under that one. So you need to get it at a good price that you can make enough profit and be under that.
Jill DeWit: In this situation, if you're buying it for $73,000.00 then you're not going to double your money because you're not going to be under it. But maybe you'll be happy making $30,000.00, and that would work.
Steven Butala: Like I said-
Jill DeWit: Buy it for $73,000.00, sell it for $103,000.00. You're cheaper than everybody else out there. I'm good with that.
Steven Butala: Me too.
Jill DeWit: The second thing is that the property surrounds a trailer. That's very interesting. So it's not actually on the property, but nearby, somebody made a mess. You know, how do I think about this? Not too much.
Steven Butala: I read this that somebody's making a mess on his property.
Jill DeWit: It's near the road... However, near the road. The property surrounds a trailer that sits on its own two acres-