Cash Deals Make More Money over Terms (LA 722)
Transcript:
Steven Butala: Steve and Jill here.
Jill DeWit: Hello.
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 beautiful, sunny, Southern California.
Steven Butala: Not so sunny today.
Jill DeWit: Right.
Steven Butala: Today Jill and I talk about cash deals actually make more money over terms. That redefines arithmetic.
Jill DeWit: It's true.
Steven Butala: It has to do with the velocity of money.
Jill DeWit: I love it.
Steven Butala: So if ... Well I'll talk about it later. Before we get into it, let's take a question posted by one of our members. On thelandacademy.com, online community, it's free.
Jill DeWit: Okay, Matt asks: "I have heard that the state of Arizona limits, has limits to how many properties one can buy or sell in a year. I think they said it's six-"
Steven Butala: Wrong.
Jill DeWit: "I'm not sure if this pertains to certain counties. Is this true?-"
Steven Butala: Nope.
Jill DeWit: "Do any other states have this limitation?-"
Steven Butala: Yes.
Jill DeWit: "Perhaps I misunderstood. Or it could be bogus, not sure that's why I'm asking the experts. Thank you. Of course if this is true I would assume that I could purchase six in my name, six in my LLC, and create other LLC's when needed. Thanks."
Steven Butala: Thank you, Matt, for asking this question. This is masters degree, maybe PhD level question and I'm happy to answer it. Arizona has something called bulk sales act. It's directly in response to in the fifties and sixties, groups of people buying a bunch of property, huge acres of property, sub dividing it because there were no rules back then, and then advertising in a magazine. And cold calling people in eastern part of the country, and selling them bogus ... selling them property five and six and ten times.
So, it gives us a bad name in this industry.
Jill DeWit: It's true. There was a whole scam back then.
Steven Butala: There was a movie about it. What is that movie called?
Jill DeWit: I can't remember. But yeah, they would have-
Steven Butala: Glengarry Glen Ross, that's it.
Jill DeWit: They would have signs up, they oh yeah, it was just-
Steven Butala: Rio Rico. If you haven't seen, if you're in the land business you gotta see Glengarry Glen Ross. These salesmen sit in a room in the fifties and just scam people out of their dough.
Jill DeWit: I know.
Steven Butala: So, Arizona's answer back then was to pass a law called bulk sales law. So, and it says you have to file a public report-
Jill DeWit: Right.
Steven Butala: Anybody can file a public report on property that they own if you're gonna sell a single property in a sub division. I'm gonna get tons of mail on this because that law is not clear. What a sub-division is, it's not clear. But, what they say is if you have, I don't know, 25 properties in a subdivision you have to sell them off in sixes. If you only own one there, like lets say you own a house for instance, you don't have to file a public report when you sell your house do you?
Jill DeWit: Right.