Diversifying Your Real Estate Investment Company (LA 748)
Transcript:
Steven Butala: Steve and Jill here.
Jill DeWit: Hi.
Steven Butala: Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala ...
Jill DeWit: ... and I am Jill DeWit, broadcasting from sunny Southern California.
Steven Butala: Today, Jill and I talk about diversifying your real estate investment company; why it's so important to keep growing, but then branching out into doing your things. And the real reason is, as much as you really think it, that things are going to change, there's always somebody who figures something out that's younger, and more aggressive, and willing to replace you, or attempt to replace you. It's just the way human nature is. So, if you have six, or seven, or 10, or 12 lines of income coming in in all different markets around the country, it's just that your chances of-
Jill DeWit: Safe.
Steven Butala: ... success are so much higher.
Jill DeWit: Exactly. And if one thing goes sideways, or one area, who knows? You have 11 others to carry.
Steven Butala: And here's the good news. I mean, like we said yesterday, if you can buy rural vacant land inexpensively and resell it, I mean, the world's your oyster. You can do it with houses, then. You can do it with info-lots. You can do it with apartment buildings, or lots.
Jill DeWit: Big ranches.
Steven Butala: Or ranches! Yeah. So, that's the good news. You've figured the first one's the hardest.
Jill DeWit: Yep.
Steven Butala: Before we get into it, though, let's take a question posted by one of our members on thelandacademy.com online community. It's free; and, before Jill reads the question, I'm going to share a sentence that Jill said to me right before we started recording. "Can you tone down the negative relationship stuff? It's not as funny as you think."
You know what that makes me want to do?
Jill DeWit: Tune it up-
Steven Butala: ... Kick it up three notches, yeah.
Jill DeWit: Oh, that's not good. That's really not good to relate ... Let me give you some relationship advice. Don't do that.
Steven Butala: Because I love you, I will not talk about the negative aspects of a relationship this entire episode.
Jill DeWit: Save it for the Steve Bashes show.
Steven Butala: Oh, we need a Steve Bash show!
Jill DeWit: Yeah. Then you can save it for that. That would be fine.
Steven Butala: All right. That's great.
Jill DeWit: I'm okay. You can do that anytime you want, and I won't be here.
Okay. Brandon asks, "Hey! Haven't been on in a while," meaning in our online community. "Super busy with that last mailer hitting. I sent out 1,600 mailer-slash-units, and I got six hate voicemails, four counter-offers that might be reasonable, four-"
Steven Butala: Jeez!
Jill DeWit: "... signed agreements that died during due diligence, and eight accepted purchase agreements. I have picked the two I liked best, and I am closing soon. Hope to make 300% ROI on terms with them. So far, so good. The rest, I can't buy. I don't have any more cash! Thought I would offer up the contracts. I want $500 each. I have looked at each, and estimated what I think they are worth, but take that with a grain of salt. I'm still new. If I'm way off, please help me know,