Every Million Costs 5 Thousand in Monthly Payment (CFFL 543)
Transcript:
Jack Butala: Jack Butala with Jill DeWitt.
Jill DeWitt: Good day.
Jack Butala: Welcome to the show today. In this episode, Jill and I talk about how every million dollars of acquisition cost costs you $5,000 in monthly payment.
Before we get into this, let's take a question posted by one of our members on a landinvestors.com online community, it's free.
Jill DeWitt: Okay.
Allen B. asks, "How is everyone managing their terms deals? Are you using platforms such as Loan Geek or Simple Money? Or are you manually keeping track of payments and sending monthly invoices? I have five properties I'm currently marketing as cash only deals ...
Jack Butala: Good for you Allen.
Jill DeWitt: Right.
Jack Butala: Awesome, man.
Jill DeWitt: ... But I've had a few buyers who want to do terms. So, I figure since the whole idea of this business is to cash flow from land, I'd better get a handle on how I'm going to manage terms deals. My mindset is, the more automated I can make the payments and statements the better ...
Jack Butala: Yeah, absolutely.
Jill DeWitt: ... What does the Land Investors collective mind have to say about this?"
Jack Butala: That's a good question.
Well so, I mean, Jill, you have historically managed our cash flow, our terms sales. What do you use? I'm pretty confident that we don't use the most sophisticated methodology out there, which is why I think I would love to just hear your unedited, undiscussed answer, the truth of it. And then I'll put my two cents in as how I think it should go.
Jill DeWitt: My team has it automated how you have directed them. Is that fair to say?
Jack Butala: A lot of years ago I spent almost a quarter of a million bucks on ... This is a long time ago ... On a relational database that handles the management of this thing. And it's by no means the best way, in any way. Stuff gets imported through a spreadsheet and a CSV file, pretty much like it's 1998. So, while there's a lot of good ... It works for us, let me put it that way.
There are other cooler, easier, simpler ways, like Loan Geek, I hear nothing but good things about Loan Geek and Simple Money. But in the end, if I were just starting out and I only have five properties, I would put it in a spreadsheet. Jill and I have created a tremendous number of helpful, I think, some of them are imperative tools to make real estate investing easier, and in the 21st century. Here's a short list of them, ParcelFact, fact.com, so you can look up a property and get the GPS boundaries, that's life changing. That was life changing even for us.
Jill DeWitt: Right.
Jack Butala: When you're on the phone, you can time in an APN ...
Jill DeWitt: And have right there.
Jack Butala: ... And have it staring at you, and you can make a decision about whether or not to buy or sell a property.
Jill DeWitt: Right.
Jack Butala: Offers2owners.com, life changing when it comes to getting offer campaigns in the mail. There's nothing cheaper, and there's nothing more geared toward exactly what we do anywhere on the internet. And it comes with a ton of free help to get that first mailer because it's a bottleneck. And there's a bunch of other ones and I'm not gonna bore you.
I'll tell you what's not on our list, and probably never will be, a way to manage payments.
Jill DeWitt: Right.
Jack Butala: Which is one of the r...