Assessor Does the Pricing Work for You (CFFL 411)
Recording Location: LATITUDE / LONGITUDE: 33.788937, -118.410360
Jack Butala: Jack Butala with Jill DeWit.
Jill DeWit: Hello.
Jack Butala: Welcome to our show today. In this episode Jill and I talk about how the assessor does the pricing work for you. Before we get into it, let's take a question posted by one of our members, on landacademy.com the online community, it's free.
Jill DeWit: Cool. Landacademy soon to be landinvestors.com
Jack Butala: Yeah I can't wait.
Jill DeWit: So for the community cool. All right Michael A wrote, "Does anyone have a purchase agreement, they'd like to share that's more formal than the one in our program. I'd like to have a more formal agreement between my seller and myself, should the seller contest the sale sometime in the future."
Interesting. "I'm looking for a land purchase agreement, something that doesn't have inspection lingo or other stuff that pertains to houses."
We just do a one page kind of simple purchase agreement, where we sign it, they sign it, we spell out the terms, like they're going to pay us via this payment method by "X" date, then all the details on the property, like the parcel number and the description. For us it works great, and I've never had any issues, which is very interesting. I question Michael's overthinking a little bit because we again have never had any issues.
Jack Butala: Well said.
Jill DeWit: So ...
Jack Butala: I was going to put it a little differently than that.
Jill DeWit: Okay, go for it.
Jack Butala: This is being grossly over thought. A purchase agreement is only ... as I understand it the purchase agreement is only for the time between, when everybody signs the PA and then the deal gets closed. I don't think anyone goes back to the purchase agreement after the transaction is completed. Let's say something goes wrong, and we all say, "Oh my gosh you violated the purchase agreement, the terms of the purchase agreement." No, I think, I do understand his point about taking the language out about houses.
Jill DeWit: Mm-hmm (affirmative).
Jack Butala: Inspections and things like that, which is really in a large way why we developed this concept, this whole business model is taking the garbage out of real estate transactions
Jill DeWit: Mm-hmm (affirmative) You're right, that's it, that's a good point. Michael be careful you might be putting the garbage back in.
Jack Butala: Yes.
Jill DeWit: We're not realtors, we're not doing this stuff ... It's like I'm buying a car, imagine, it's the same thing as buying a car from someone off, not a dealership. I have a little agreement that I sign and I don't even have to show that to motor vehicles when I do it, but we all do a little receipt if you will-
Jack Butala: Or bill of sale.
Jill DeWit: Bill of sale, that's what I mean. Just something like that for our records, showing what we paid, should we ever need it for tax purposes or something. Then we have it, so that's kind of how we look at this and you're right Jack and even so, these signed purchase agreements, I'm never going to call someone up and go, "You flaked, you didn't pay, come on you promised, you signed this." No, if they flake? Fine, I go to the next person who had wanted to purchase the property, my buyer number two.
Jack Butala: Yeah, if you read our purchase agreement it's the one that we send out in the mailer.
Jill DeWit: Mm-hmm (affirmative).