Buying Ranches in High End Markets
Jack Butala: Buying Ranches in High End Markets. Leave us your feedback for this podcast on iTunes and get the free ebook at landacademy.com, you don't even have to read it. Thanks for listening.
Jack Butala: Jack Butala with Jill DeWit.
Jill DeWit: Howdy. Happy Friday.
Jack Butala: Happy Friday, exactly. Welcome to our show. In this episode, Jill and I talk about buying ranches in high end markets, one of our favorite topics at the moment.
Jill DeWit: Yee-haw. I'm going to go cowgirl on this show. Yee-haw.
Jack Butala: This is a way to print money. First, let's take a question posted by one of our members on LandAcademy.com, our online community. It's free.
Jill DeWit: I'm sorry. Your little excitement there just got me all excited. All good. Matt asked, "I have heard or read somewhere that becoming a real estate agent ..."
Jack Butala: What the heck?
Jill DeWit: This is good. Let me back up because I'm giggling here.
Jack Butala: I'm glad. I'm glad this came up. Go ahead.
Jill DeWit: Thank you, Matt. This is a good question. "I heard or read somewhere that becoming a real estate agent was somehow detrimental to this land investing business."
Jack Butala: Dentrimental?
Jill DeWit: Detrimental. "If one takes a real estate test and becomes a licensed agent, how does this affect the business?"
Jack Butala: Go ahead.
Jill DeWit: Well, let me start by saying I have gone through all the courses. I have taken and passed the test.
Jack Butala: Me, too. So have I.
Jill DeWit: However, I never activated my license so here's my, and I think you share this with me, thoughts on this. Talk about a great education. If you really want to learn some great things about this whole business and a lot of good information, take the courses. It was what, I don't know, a couple years ago it was 600 bucks and 60 hours or 80 hours. I don't remember. 90 hours. Something like that. You can do it in weeks or months, whatever. Great, great information to do that. Here's the thing. As a licensed agent, it brings a whole bunch of rules and regulations and different things that you have to ... Actually, there's an extra cost, too. You have to have a broker and you've got to hang your license somewhere, but there's all kinds of rules and regulations and things that you have to jump through and ... Is the word notified, Jack? I'm trying to think.
Jack Butala: Notice.
Jill DeWit: ... notice that you have to do.
Jack Butala: ... and disclosures.
Jill DeWit: Yes.
Jack Butala: I'll talk about it in a second.
Jill DeWit: Here's why we don't need to do this. Because if I'm going to be doing this for somebody else and I'm representing that person, that's a whole different ball game. But we're not. I'm acting, I'm buying real estate for me and my company. I'm not representing a third person, so I don't need to do that. It's all legal and up front and honest and when I sell it, it's me selling it to that person.
Jack Butala: Exactly. Here's why in the universe you are required to get a real estate license. You are required if you represent somebody in a purchase or sale of real property, right? You're not the purchaser or the seller, but you are representing the Smith family in purchasing a house, or you're representing the Jones family in selling their house. That's why. And you're required by law, and it's severe. If you do this without a license it's pretty severe. That's why you get a real estate license. You are not required to get a license to buy or sell property in any number as the owner or the investor or in a partnership. What do we do here? We buy property for ourselves and we sell it and we do tons of it every week. You do not need a license to do this. It's a huge misconception. I don't know where it comes from. I think that this younger generation just thinks you've got to get a license because hairstylists and barbers and stuff have to get a licen...