Grow Your Wealth by Buying Related Companies (LA 755)
Transcript:
Steven Butala: Steve and Jill here.
Jill DeWit: Hi.
Steven 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 beautiful South Lake Tahoe, we've been here all week.
Steven Butala: Today Jill and I talk about growing your wealth by buying related companies, related to real estate and online sales potentially. We're going to go through a few companies that we've purchased that worked out great for us, and we're going to go through a few that are no longer in operation for a lot of reasons.
Jill DeWit: And ones that you've talked about that I've pleasantly reminded you "Do we really want to go there?"
Steven Butala: Before we get into it, let's take a question posted by one of our members on the landacademy.com online community. It's free.
Jill DeWit: Ariel asks: "I've been looking at listings to get a feel for prices in some California counties. Looking for lower priced areas and smaller parcels for an offer of $500,000, could be 10 to 20% of resale value. I'm finding parcels that meet this are small and way out of in southern California desert areas, which seems like there is a lack of attributes. Can offers as low as $500,000 work in areas that I see are listed at much higher prices? What's been your highest resell value for an offer this low? Thanks for your help."
Steven Butala: This is a great question, Ariel.
Jill DeWit: I love it.
Steven Butala: I mean it. There are a lot of people that come into our group, and for whatever reason they receive this message from me, and I do the best I can do undo this message, for some reason they get this. You can buy property anywhere for $500, because people just sign the offers, they just want $500, and they don't really care about their $350,000 [inaudible 00:01:47] lot in Hollywood. That couldn't be further from the truth.
Jill DeWit: Right.
Steven Butala: It's just not. You're wasting their time, you're wasting your time and money on postage, and, no. Can you buy $500 to a $1,000 quarter-acre lots in California City? Maybe. But do you really want to?
You want to buy a $1,000 lot and resell it on the internet for $1,500 constantly? It's a long road to retirement. Does it work? Possibly. Once in a great while you're gonna get somebody who signs it and sends it, and everything works, and, yeah, and you do well. But, you would do much, much, much better, and I say this truthfully ... I use $500 in the example in chapter five in the first Land Academy program, and I think that's where this message gets convoluted. That's for practicing, just do a few deals like that just so you can understand the process, and make sure it's something you want to do, make sure you can handle some of the backlash or the hate that you get from some angry sellers, because it all happens, and everybody needs to be aware of it. Jill doesn't let me talk about it on the show too much.
Jill DeWit: Oh, it's fine. It's not that big of a deal.
Steven Butala: But once you're done ... The most successful people in our group buy 30, 40, 50, $60,000 properties and sell them for $120,000.
Jill DeWit: Or even a $1,000 property, or even like a couple thousand dollar property-
Steven Butala: Like $5,000.
Jill DeWit: Yeah, let's say $3,000, $4,000, sell it for $12,000, those are great things people do all day long. I don't ... I guess ... yeah. I think you're getting a little-
Steven Butala: It's too low-