How to Use an Equity Partner.
Transcript:
Jack Butala: Jack Butala with Jill DeWit.
Jill DeWit: Hi there.
Jack Butala: Welcome to our show today. In this episode, Jill and I talk about how to use an equity partner. I love this topic, Jill. 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.
Jill DeWit: A.K.A success plant right now if you're looking for it. Okay. Lane, this is so funny, one of ... Lane replied to a question with a funny comment here that we wanted to share, and the topic of discussion is Don't F with Johnny Cokrin, my first hate call. This is really funny.
Lane said, "I received a message today that said, 'So, you offered me ...'" This sounds like a voicemail, "' So, you offered me $3,000 for my property? If you maybe put five zeros in front of that three then maybe I'll think about it. Are you a dumb A, blank, blank?' Then, his wife said in the background, 'I think you meant put five zeros behind the three, you are the dumb A, blank, blank.'" Then, the man hung up. He said, "I wanted to send her flowers."
Jack Butala: I would have sent her flowers.
Jill DeWit: That was so funny!
Jack Butala: You never address, send her flowers.
Jill DeWit: "Put five zeros in front of that three and I'll think about it." Yeah, I'll day long. God, that is good.
Jack Butala: This just goes to show you that the worst thing that can happen when you send a ton of offers out is it get some kind of comment like this. You can't pay for this kind of entertainment. I'll pay $.49 to have somebody call me and say this kind of stuff all day long. It's funny!
Jill DeWit: Well, and here's the reality, we all think our asset is priceless. Let's be honest. I can't tell you the people I've talked to in this situation and then they find out nobody is going to pay $3,000,000 for it but they'll pay $3,000. They eventually, not all the time obviously, but they come around sometimes and they realize, "Yeah, I guess it is worth X. I thought it was worth something else."
Jack Butala: There is such thing as priceless assets, believe me. Jill has some priceless assets, trust me. So do you, listener.
Jill DeWit: Thanks.
Jack Butala: With your knowledge on how to manipulate data to send offers out, that's a priceless asset that's going to return on its investment forever. But I'll tell you what a priceless asset is not, it's not a piece of real estate. A piece of real estate is only good ... the value of that real estate is only as good as what people are willing to pay. Forget about comparison values, forget about all the stuff that your parents told you, forget it. Someone's willing to pay X for a piece of real estate? That's what it's worth. This guy is off his rocker and that's why it's so funny. His wife knows it too.
Jill DeWit: Well, you know what the bottom line? Well, the guy just doesn't want to sell. That's the thing and that's fine, and that's what a lot of it is. People will give you an astronomical price because they really don't want to sell, but if it's an astronomical offer, they would consider leaving their dream home kind of thing because they can create it again.
Jack Butala: That's right.
Jill DeWit: That's usually why they do stuff like that, and that's fine. They don't want to sell? Move on. Don't hit them with another mailer or don't beat their door, they clearly are not interested. Move on.
Jack Butala: I'll tell you what, and I'm speaking for my friend Joe here, that guy is a seller, all right?