Flipping Pitfalls (CFFL 573)
Transcript:
Jack: Jack and Jill here.
Jill: Hey, there.
Jack: Welcome to the show. In this episode, Jill and I talk about flipping pitfalls, but before we get into the topic, let's take a question posted by one of our members on the LandInvestors.com online community. It's free.
Jill: Okay, Peter asked, "Certain counties of Florida have a protected species of birds called a scrub jay. Lots are still buildable, but there is an environmental due of $2,200 to build. In most counties, there are many lots available with no issues. Would you pass this lot or just lower the price by X dollars to compensate for this issue?"
Jack: I would not pass on it. That's not a reason. In fact, I would buy the property, and I would sell it.
Jill: I would celebrate that, honestly.
Jack: I would sell it under the title of, if you are involved in bird watching in any way ...
Jill: This is where you want to be.
Jack: This is it, because they are protected here.
Jill: Yeah, and you have that. I wonder if it's ... 2,000. So it's a one-time fee to build.
Jack: I think it is.
Jill: Okay, good. To help, I guess, with their efforts to care for, whatever they need to do for birds to keep them.
Jack: That being said-
Jill: I think that's cool.
Jack: I think it's also, and I'm speaking for my friend Jill, also a good reason to say, "You know what, I didn't realize there was this fee here. I might have to reduce the purchase price." But that's up to you. That's how you run your business. Jill is a little bit more prone to negotiate than I am, but I'm saying this is a pretty darn good reason ... Of all the reasons, the stuff that you didn't know when you sent the letter out, and now you just found about it in your due diligence, this is a pretty good reason to come back and say we might have to reduce the price. A legitimate, ethical reason.
Jill: Exactly. The other thing is we talk about having something that differentiates your properties, and I think this is really cool. You could have hiking property, this property, and bird watching protected areas. I think it's awesome. I think we all know what Corps of Engineer property is. My parents had this great house in Dallas-
Jack: Corps of Engineer.
Jill: Uh-huh. And it was up against the Corps of Engineer land, which was awesome, because we all knew no one could build on it. So, no one could block the view, and I think that's good stuff. I think this is great, too. If it keeps some people out, too, because of that, awesome. I think it's neat. I think it's good.
Jack: I don't want to get into it on the show, but Corps of Engineers property is usually environmental testing or intentional flooding. There's stuff that is reserved ...
Jill: That's what that was.
Jack: ... so it gets used for the betterment of the world kind of thing. Or the immediate subdivision.
Jill: Mm-hmm (affirmative)
Jack: But Jill said the residual effect is no one is going to build anything on there.
Jill: Mm-hmm (affirmative)
Jack: Do you have a question or you'd like to be on the show, reach out to either one of on LandInvestors.com. Today's topic: flipping pitfalls. We talk about the stuff that's possible and good all the time. We're going to talk about some of the stuff that's pretty difficult to get over in this part of the show. Maybe. I don't know. This is Jill's show. We're going to find out.