How to Partner a Flip
Jack Butala: How to Partner a Flip. Every Single month we give away a property for free. It's super simple to qualify. Two simple steps. Leave us your feedback for this podcast on iTunes and number two, get the free ebook at landacademy.com, you don't even have to read it. Thanks for listening.
Jack Butala:
This is Steven Jack Butala for Land Academy. Welcome to our show. We show you how to buy property for half of what it's worth and resell it the next day. Great information and instruction from Jack, that's me.
Jill DeWit:
And inspiration from Jill, that's me.
Jack Butala:
In this episode, Jill and I talk about how to partner a flip, and why the heck would you want to partner a flip, first of all. We call it an option, and there's a bunch of other names. We'll get into that in a minute. Jill, it sounds like fun. Before we start, let's take a question posted by one of our members on successplan.com, our free online community.
Jill DeWit:
Sure. [Moniesha 00:00:43] from Charlotte asks, "I was wondering if you could share how you allocate your earning inside your business? How much do you set aside for taxes? How much do you leave in the business for new acquisition, et cetera? I thought this would be extremely helpful, in terms of, structuring a healthy business model. A lot of people asks how to make the money, but nobody asks what do with once it's made. Thanks for all your help." Great.
Jack Butala:
That's easy. Jill and I have a 91/9 partnership split. She gets 91 percent of everything that the company makes, and I make 9 percent, and that's how it rolls.
Jill DeWit:
Yep. That's perfect. That the way it should be. If you don't have it similar like this ... You started to say '91/9', I'm like, "Shoot, is that like a tax code I hadn't heard of? I know 1099. I don't know 9199."
Jack Butala:
All right, so let's start. I'm not going to make this a lengthy thing. What I think you're asking is, let's say you start with $10,000 buck. How you use it? Then, after you make $100,00 because you're doing everything right, what do you do? What is the best way to maximize, move the money around and make it work for you the best. This is what I tell everybody when we start out. By the way, if you have a question or you want to be on the show, call 800-725-8816. We'd love to have you right on the show with us live. You can't be boring though.
Jill DeWit:
Can't be boring.
Jack Butala:
Let's say $10 grand just for fun, I don't know, $1,000 to start. What you want to do is use that money toward real estate as much as possible and nothing else. What we teach in our program is to set up a few things because you're going to get real busy once you sent the mailers out. You want to set aside enough money to send out a couple thousand mailers with the offers for the property, and on all the rest of the money, with very few exceptions, you want to put into the actual real estate because what we teach is to buy a property for $500 or $1,000 dollars, or some number like that, some low number and double your money very quickly. $1,000 becomes $2,000, becomes $4, becomes $8, becomes $16, and very quickly, our members, our successful members, the ones that stick to it and follow our instructions, and going to have $50, $60, $70 thousand bucks to work with. Then you spend some time on marketing and allocate things where you think it's most appropriate.
We don't spend too much money on marketing. I'm not a big marketing budget fan. A lot of people are. If somebody's reaching you as a consumer or as a land buyer or as a podcast listener and products suck, it's because their marketing person. They're good at marketing and they suck at the show. I'm a fan of the other way around. I think you should put your money into what makes a good show and where your talent is and actual real estate that your selling and not spend it on marketing.
As far as taxed go,