Are We Real Estate Sheep (LA 1179)
Transcript:
Steven Butala:
Steve and Jill here.
Jill Dewitt:
Hello.
Steven Butala:
Welcome to the Land Academy Show, entertaining real estate investment talk. I'm Steven Jack Butala.
Jill Dewitt:
And I'm Jill Dewitt broadcasting from sunny Southern California.
Steven Butala:
Today, Jill and I talk about are we real estate sheep?
Jill Dewitt:
I hope not. I know we're not.
Steven Butala:
Do we just sit around and watch the news and let them tell us what to do? Let them tell us when we can go back to work or let them tell us what prices we can buy? Do we let real estate agents control our deals? Why is this any different? 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. I'm going to enjoy this.
Jill Dewitt:
See the inside of my lip? I Was bleeding a little bit there, holding back. Just kidding.
Steven Butala:
Oh, we'll get to it.
Jill Dewitt:
Okay. Brandon, probably the same Brandon, wrote, "I finally got my first property through title and escrow. Title/escrow. I priced it at about 70% of the market, $20,000, and the market is $30,000'ish. Just wondering how long people wait on moving the price down to sell faster?" Okay, all right. He's bought it, he put it up for sale. Okay, now we got it. You put up for sale at 70% of market value out there. Good deal. So everything else is selling around 30,000, Brandon priced his land property at $20,000. This all sounds good. So, now he's going, "How long do I wait until I mark it down?" Not too fast, hold on. "I currently advertised on LandPin, Zillow, Craigslist, Instagram Boost, Facebook groups and Facebook Posts Boost.
Jill Dewitt:
I am getting interest, but nothing to even get excited about. One person visited the site and that was the best prospect. $18,000 is my double profit line. I bought it for nine. Because I made a mistake and underestimated the closing costs, it should've been closer to $16 or 17,000." No problem.
Steven Butala:
You didn't make a mistake.
Jill Dewitt:
No, yeah. "I just want to make sure I get out sooner than later and I don't want to get caught with this property during a full real estate downturn. Thank you." Well, first of all, don't mark it down too fast because we've all talked to people who have these situations where, especially on our member calls, it comes up like, man, I just sold to the guy on Saturday, and then on Monday I had a full price offer. I had two of them or something like that. It's like, yeah, that happens. Don't worry about it. Move on. It's okay.
Jill Dewitt:
And then, also, I question sometimes if you price it too low, that often triggers some things where people are going to go, "Why is it so low?" Even though you and I know it's just as good at that $30,000 property, but I priced mine for $18, they're going to go, why is that $12,000 less than everything else? What's wrong with it? So you don't want to send that message. The best thing you can do is just reach and reach and reach and now it should be even easier, which is great because a number of people that are online today versus six weeks ago is what? 60% more? That's a lot of people.
Steven Butala:
Here's what to remember during these times, and this is for houses and for land and for people who own manufacturing companies, and just about anybody who's successful. These downturns, people want bargains. They're looking for bargains, so if you present your property like it's a bargain and it's maybe a bargain caused by this virus or whatever else, it's, you know, recession dejour. I don't care what causes it next time or whatever. Last time the housing market caused the housing market, the recession, actually, which is really interesting because the housing market is a result of a healthcare problem worldwide now.
Steven Butala:
Last time the housing market caused the real estate recession, and so it's very different. Anyway,