Finance Friday with Steven Butala and Justin Sliva (LA 878)
Transcript:
Steven: Steven Justin here. Welcome to the Land Academy show. Entertaining land and investment talk. I'm Steven Jakiela. With Justin Sliva broadcasting from Southern California. And Justin's in Dallas Ft. Worth.
Justin: Hey, hey. How's it going today?
Steven: Justin and I introduce Finance Friday and we did it last Friday. We really actually messed it up or I messed it up. Cause it was the first episode and that's just what happens. But today I think it's for real. Justin was just telling me before the show, he's got a bunch of deals he's looking at from Land Academy members and other land investors out there. Before we get into it let's take a question Justin posted by one of the members at landinvestors.com, online community. It's free and I'll read the question and I'd love to hear your thoughts on this.
Justin: Okay.
Steven: Steven Kish asks, looking to do the latest acquisitions or my latest acquisitions with a funding partner. Let me know if you're a funder or you're looking to do deals with somebody. I don't have an agreement for this. Does anyone have one that they can share, send directly to me. Also, when doing a purchase using funding partner, do you allow the funder to take title? Any answer would be appreciated. Go ahead and run with that.
Justin: Wow, I think that's a great question. Actually, I have spoken to Steven Kish this week on a couple of properties. Yeah. So we actually looked at four his properties that he had. Some great properties. We sent him some emails back and we're still kind of figuring out the last bit of it. So normally what we do from our side is that we do take title of it because we're putting the money up. You have an investor agreement with us. It's a one page document that kind of lays out the expectations of both sides and how the splits going to be. What we're going to do with it and it's signed online. It's pretty simple, pretty easy. What property? What our expectations are and what our splits look like. Our split is fifty fifty of the prophet on the back end. We do fund all of it. We fund the closing cost and those come back out on the front side.
Steven: So, can you give us a numbers example of like oversimplification number of what a split would look like cause those are the questions I'm getting at.
Justin: Yeah. We just had a property that was actually ten thousand dollars on a dot with closing costs that are going to be ten eight. We're expecting that property to sale for about thirty two thousand to thirty five thousand. So, to keep it simple, it would be ten thousand sales for thirty thousand. We pull the ten thousand back on the front and then we split what's left over from HUD to HUD. And that will be ten thousand each way. Yeah, it's a cool little thing we have there. Some people are like, "Ah, ten thousand bucks I paid you to borrow your money" and I'm like, well, we're not a bank. If you only made five hundred bucks, we're only splitting two hundred and fifty dollars. We're kind of riding it out with you.
Steven: Boy, my answer to that is that you are welcome to go to your bank and get funding on these deals.
Justin: Yeah. I tried that. They laughed at me. And that's kind of where this came from. You know. We had some guys do some private funding. I did it outside our entity. My land is missing. It worked out pretty well and I was like, man, there's a lot of people that need that. Then we turned on it. Then we after the podcast last week, two weeks ago. Just coming out. They were getting ten to twelve requests a day on just information or properties being thrown at us. We've had forty properties this week sent to us. We've actually looked at seventeen of them really closely and agreed with four.
Steven: Wow.