Good Bad Ugly About Land Sales on Terms (LA 1427)
Transcript:
Steven J. Butala:
Steve and Jill here.
Jill DeWit:
Hello.
Steven J. Butala:
Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala.
Jill DeWit:
And I'm Jill DeWit broadcasting from awesome Central Arizona.
Steven J. Butala:
Today, Jill and I talk about the good, the bad and the ugly. About land sales on terms. You can sell a property for cash, buy for $50 sell it for $100 or you can sell it on terms, buy for $50, $10,000 down, $1000 a month until you pay it off.
Jill DeWit:
Right.
Steven J. Butala:
Who doesn't want to have more money in their bank account? Who doesn't want to talk less on the phone and listen to [inaudible 00:00:40] get to know your tenant.
Jill DeWit:
We'll talk all about that and more.
Steven J. Butala:
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 and if you're already a Land Academy member, please join us on Discord.
Jill DeWit:
Greg wrote, this is a long one, bear with me. "Hi everyone. Love to get your feedback on this one. I have a desert junk property in New Mexico, bought it for $1,600, six months ago and it's not selling. I'm about to unload it at $3,200 to a fellow and I haven't signed any papers yet."
Steven J. Butala:
I don't know how that's losing or failing, but okay.
Jill DeWit:
I know. And that's not junk to me.
Steven J. Butala:
We don't use that word.
Jill DeWit:
Exactly. "A couple of days ago, a guy called me claiming to be an attorney and offered to buy this parcel from me for $2,000. Claimed to have tracked me down from the previous seller. I told him I wanted $3,800 and he proceeded to tell me that this property was subject to a quite a title that he and his family were working on. Something about it being sold incorrectly 50 years ago."
Steven J. Butala:
Lies.
Jill DeWit:
Wow. That mean?
Steven J. Butala:
All lies, [inaudible 00:01:48].
Jill DeWit:
Yeah. "I thought that was strange that he offered to buy it, combined with a quiet title information. I gave him my address and told him he was welcome to send any claim or action my way, but I haven't received anything yet. It's only been a couple of days."
Steven J. Butala:
This is the last you'll ever hear of this.
Jill DeWit:
"So my question is, should I say something to this guy who now wants to buy it, should I say nothing since I've seen nothing in writing, or should I not sell it and sit on until I hear something from the quiet title guy? I don't want to mess. I'm thinking to just sit on it, low value, not a finance problem for me, instead of risking a sale and an unhappy customer. Happy to hear your advice, Greg." I know what I'd do.
Steven J. Butala:
Go.
Jill DeWit:
Ignore the call. It's amazing that he even found you and tracked your number and everything. I don't believe it too.
Steven J. Butala:
I'd chill for about a week.
Jill DeWit:
Okay.
Steven J. Butala:
And I wouldn't... And then I might... I would actually research. With resources that we have at Land Academy, you can go look at the chain of title.
Jill DeWit:
Sure.
Steven J. Butala:
Here's the thing about New Mexico-
Jill DeWit:
Do your homework and make sure.
Steven J. Butala:
Specifically New Mexico. Long before I met Jill. I was on the auction circuit in my car, in my SUV, six months a year. And I spent a lot of time in New Mexico going to auctions and buying property and selling it on the internet. And every third auction that I would go to in New Mexico, someone would stand up right before the auction and give us a big, long speech about how we're terrible Americans and we stole all this property from Mexico. And how dare we buy any land in New Mexico. That's what this is related to. This is some kind of meeting that either native Americans or Latinos have organized and there's to call them land owners and something like that.