How to get Acquisition Funding from Justin Sliva (LA 868)
Transcript:
Steven Butala: Steve and Justin here. Welcome to the Land Academy show entertaining land investment talk. I'm Steven Jack Butala broadcasting from sunny southern California. Today we talk about how to get acquisition funding with Justin and we also we're gonna throw in the definition of just because she says yes, doesn't necessarily mean yes.
Steven Butala: And what do we mean by that? I was just talking to Justin before the show and a lot of people contact him and ask him to partnership deals which is really his main business. Aside from doing his own deals which he does a ton of.
Justin Sliva: Yep.
Steven Butala: Every month he funds other people's acquisitions that are good, splits the margin with them. And he says a lot of people are coming to him especially really brand new people really excited about a transaction. They're kind of seeing something in the deal that's not there. Like do you have a recent example maybe?
Justin Sliva: Yeah we had, here recently we were in a small county out in Texas and one of the guys brought his first, it was his first mailer, his first yes and it was 40 acres for say $4200 or something like that. And you know he's excited, he's like, "This shit really works. Stuff really works." Sorry about that.
Steven Butala: It's all right.
Justin Sliva: "Stuff really works." And then you're like, "Yeah it does. We told you that." And we go through the deal and soon as I pull it up on ParcelFact there's just, there's no road. And I'm like, "Well how do you get to the property?" He says, "Well it says it has easement." I said, "Well literally you can't drive to the property it's got, the topography there's beautiful. Beautiful land it'd be perfect to go hike, go camp, maybe go hunt on, but you can't drive a car there so how are you gonna actually go enjoy it if you're the end user?" So you know that excited part she said yes.
Justin Sliva: You know they wrote me yes, yes they want to sell me the property. You know make sure it meets your contingencies. You don't have to buy it if she says yes to it so ...
Steven Butala: I struggled you know people ask me you know what did I struggle with when I started in the 90s? I call it seeing something in the deal that's just not there.
Justin Sliva: Yep.
Steven Butala: I wanted to work so bad and you want to get that first deal done maybe the first year you're trying to like justify not working at your regular job anymore and make enough and just start, you don't want to make bad decisions.
Justin Sliva: Yeah.
Steven Butala: That's another reason to call this guy 'cause he'll look at the deal and tell you. Like you saved this guy.
Justin Sliva: Yeah.
Steven Butala: You saved him losing a bunch of money.
Justin Sliva: And had I been in his shoes my, first deal we bought a couple of those properties. I knew exactly-
Steven Butala: We all have.
Justin Sliva: I took the lumps for him. So I was like you know just move on. And within 30 seconds he looks at me and say, "Are you sure?" And I'm like, "Yeah just go." And that's the good part about partnering with somebody or doing those joint ventures you get to pick up on that wisdom. Now is that something that cost him? No it was free. We had a conversation about it. We moved forward and he was gonna be better off with that, but you now the three deals I lost money on in my investment history were deals that I didn't follow that basic thing that y'all taught, the access. It looked-