Everyone Needs a Place to Live (JJ 686)
Transcript:
Jack Butala: Jack Jill here.
Jill DeWitt: Hi.
Jack Butala: Welcome to the Jack Jill Show, entertaining real estate investment talk. I'm Jack Butala.
Jill DeWitt: And I am Jill DeWitt broadcasting from sunny, southern California. Normally sunny, not today.
Jack Butala: It is stormy and yucky today.
Jill DeWitt: It's like I love it.
Jack Butala: Today, Jill and I talk about, everybody needs a place to live. And what does that mean to us real estate investors? I can't wait to talk about this because something that's so simple. You can really capitalize on it as a real estate investor. Especially in land because we don't go look at the property. We don't touch the asset. We don't care.
Jill DeWitt: Does that mean we have a better perspective on it?
Jack Butala: It means that we have a way larger area to choose from as real estate investors versus the house people and your apartment people and all of that. We can cover the whole country and Canada.
Jill DeWitt: That's true.
Jack Butala: With the data that we have.
Jill DeWitt: True. So when you're talking everybody needs a place to live for this show, you're talking land still or are you going to spill into houses and cover it all?
Jack Butala: I'm going to spill.
Jill DeWitt: Okay.
Jack Butala: We're going to spill.
Jill DeWitt: You like my choice of words there?
Jack Butala: Yeah.
Jill DeWitt: Okay, thank you.
Jack Butala: Before we get into all of that, let's take a question posted by one of our members on the jackjill.com online community. It's free.
Jill DeWitt: Okay. Joe asks, "Hey everyone. So it sounds like I have a buyer who wants to offer on 160 acres in Alpine County, California. I have optioned the current owner and I have listed it for sale." Awesome.
Jack Butala: Yeah.
Jill DeWitt: "The buyer has a real estate agent which is fine since it's almost a $200,000 sale." Wow. "The agent says that she can't make an offer to anyone except the owner of record."
Jack Butala: And your agent's correct.
Jill DeWitt: "This being the gentleman who has signed the purchase option with me." Uh-huh. "So this is my question. Has anyone run into this in the past? Is there a way she needs to phrase the offer letter? Another thought was I never recorded the option with the county. Is this required? Any help from people who have successfully complete purchase option sales would be greatly appreciated."
Jack Butala: Here's the real important thing here, Joe. You cannot represent an owner of a piece of real estate in the sale or purchase of it unless you have a license. And if you've listened to any other episode on this show, we're not big not fans of real estate agents in general. So, this is not something you want to test or get around or manipulate. You want to do the right thing. There's a system set up this way for a reason. And believe me, it's to our advantage. Our advantage as unlicensed real estate investors.
So you have a couple options here. Number one, you can ante up, buy the property yourself for less than $200,000 bucks and then resale it to this person. It doesn't sound like that's an option to you, that's why you set up an option. However, if you have a contract in hand,
