Buyers are More Willing Than Ever to Sell (LA 1294)
Transcript:
Steven Jack Butala:
Steve and Jill here.
Jill Dewitt:
Hello.
Steven Jack Butala:
Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala.
Jill Dewitt:
And I'm Jill Dewitt broadcasting from sunny, mid-California. We're not in Southern California right now. If you're watching, you can tell it's not our normal background.
Steven Jack Butala:
San Francisco actually.
Jill Dewitt:
Yes. What would you call that? Mid? It's not Northern.
Steven Jack Butala:
I would call it mid. I was just thinking that-
Jill Dewitt:
Well, technically they say they're northern-
Steven Jack Butala:
You think it's northern California, but it's not.
Jill Dewitt:
Yeah.
Steven Jack Butala:
It's right in the middle.
Jill Dewitt:
Exactly.
Steven Jack Butala:
Before we get into it... Oh, I'm sorry. Today Jill and I talk about how buyers are more willing than ever to sell. Yeah. That's, really Steve? That sounds like you're making that up. No, it's just, it's the environment that we're in, the economic environment is dictating, it's putting a little flair under the seller's butt, but at the same time and I have to say I've never seen anything like this in my career at the same time, it's buyers are willing to buy. So, that's what's so unique about this. You can always find really willing sellers based on the geography you go, but it seems like it applies to everything right now, for land I'm talking about, not necessarily houses and buyers are pretty willing to buy within a day's drive of pretty large cities. 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 Dewitt:
Martin asks, "Does anyone have a certain criteria they look for when acquiring higher price properties? For instance, what do you look for in a county when you're trying to buy higher priced properties with your blind offers? I currently buy myself mostly sub $40,000 properties, but would be nice to move up to 100,000 plus properties. Just not sure what to look for when researching those. Any ideas from someone who actively buys higher priced land?"
Steven Jack Butala:
So, yes. May I?
Jill Dewitt:
No. What am I going to say?
Steven Jack Butala:
If you've been through an education, I'm pretty sure Martin's a member. He might not be, but anyway we all know that pricing, any type of real estate starts with what you're going to sell it, the price you're going to sell it for and then you back down from that based on where you think a logical gap is between what you're going to buy it and what you're going to sell it. So, if you think you can sell, very easily sell a property for $100,000, that's a wholesale number, property's worth let's say 150, 130 and 100,000 is the number that you want to sell it for. You need to be buying that property for around 40 to 50,000 bucks to make it worth it. So, that's the answer. So, if you're having success buying sub $40,000 properties, doubling your money, making 20 and $30,000 on it hopefully, it's the same exact thing.
You just move it up a notch for the $100,000 property. I will say this, there's fewer of those properties. The more expensive those properties get, the numbers are fewer and you want to make darn sure that the property at that price range, you have an audience and the audience is going to have to have some money. So, they should be coming out of larger cities. So, this is exactly, what you're describing is exactly what Jill and I are doing in our current mailers right now is we're buying. We are moving up. This is one of the reasons I chose this question. We're moving up this gap.
Jill Dewitt:
May I add?
Steven Jack Butala:
Of course.
Jill Dewitt:
As far as a certain criteria, am I looking for an attribute? Am I looking for now it's commercial land? Am I looking for agricultural land? No, don't even worry about it.