Finance Friday with Steven Butala and Justin Sliva (LA 898)
Transcript:
Steven Butala: Steve and Justin, here. Welcome to the Land Academy show, entertaining land investment talk. I'm Steven Jack Butala with Justin Sliva, broadcasting from southern California and Dallas-Fort Worth. Today, Justin, talk about the deals we're doing on finance Friday. I'm sure you're as busy as we are.
Justin Sliva: Dude, it's been insane. It's insane.
Steven Butala: Before we take a question, just give us the raw numbers, like how many came in this week and how many are due?
Justin Sliva: Let me count them real quick. Two, five, seven, eight, 12 we green-lit.
Steven Butala: Wow.
Justin Sliva: We had 47 properties come in this week, and I have two more sitting on the desk I haven't looked at yet.
Steven Butala: That's like 25%, 20%?
Justin Sliva: Yeah. This week, we had quite a few come in that I didn't go with just because of access and what they were. It was all the same asset type. The high price was a little bit high. But, man, this is the week of waterfront properties. I'm telling you. I've got some great waterfront properties that I'm, like, stoked about. So this week has all been waterfront that looks like we've been going with, so I'm happy about that, but let's get our question going and we'll talk about that in the meat of the show.
Steven Butala: Perfect. Before we get into it, let's take a question posted by one of our members on the LandInvestors.com online community. It's free. I'm going to ask the question and Justin's probably going to answer it.
Jake asks if you have duplicate records and the best practice is to delete one and mail the other, all things being equal, are people likely to want to sell their smaller parcels or their larger ones? Since smaller parcels tend to be higher priced per acre, would it be smarter to offer the purchase bigger one? For example, I've a person who has a 31-acre property and a 137-acre property. Which one would you offer on?
The way I would do this would be to decide to offer the smaller-sized parcel, sort that column of dupes from high to low, and remove the duplications which would leave me with the smallest. Or if I want the largest, would I simply sort in the other direction?
What do you think, Justin?
Justin Sliva: I normally go and sort largest and smallest when I'm scrubbing through. So the price that they're going to get is an actual bigger value amount when they see that on their letter.
Steven Butala: A dollar amount?
Justin Sliva: Yeah, the higher dollar amount, not per acre. We think in a per acre, but if I'm somebody opening the letter, I'm thinking, "Oh, this guy's offering me $15,000 versus $7000." So that conversation's a little bit different. Then they go, "Well, I got this other one, too." Well, great. Then I'll negotiate down on that price and try to get it for the same price per acre because it's a smaller per acre amount, but it's the higher dollar value amount.
Steven Butala: Right. That's exactly what I do. I mean, you always want ... It's hard to convey this to somebody who's brand new, but the higher dollar amount, when they open that letter and there's a higher dollar amount, there's a more likely chance that they're going to respond to it the way that you want. Or let's just say respond to it.
Justin Sliva: Yeah.
Steven Butala: That's what you want. You want to provoke response.
Justin Sliva: Nah. It's perfect. The reason that is is to me, if $7000 may not change somebody's life. $15,000 may, may be that life changing event that they need that says, "Oh, wow. This actually does something for us, and now,