How to Value Land (CFFL 530)
Transcript:
Jack Butala: Jack Butala with Jill DeWit.
Jill DeWit: Hi.
Jack Butala: Welcome to our show today. In this episode, Jill and I talk about how to value land. That seems pretty obvious.
Jill DeWit: Yeah ... you'd think!
Jack Butala: I'll try to make it complicated though, that's for sure.
Jill DeWit: Okay, good.
Jack Butala: Before we get into it let's take a question posted by one of our members on the land investors online community, it's free.
Jill DeWit: Matt asks, "Hi everyone, I'm starting to close my deals in house and I'd like to make sure that the way I accept payment is as current as possible. I'm up to date on the podcasts and the Thursday afternoon weekly member calls. I can't tell you how many different things I've heard, ha ha. Payment systems seem to come and go. One week it sounds like a company allows real estate, the next they don't, and so on. I know that Jack and Jill are working to solve this for us, much appreciated, but what is the current state-of-the-art? If you were setting up your payment system for selling properties today how would you approach it? (I haven't setup my Land Pin account yet but I will be doing so soon)." What do you think Jack? [00:01:03] Yeah.
Jack Butala: This is a very, very valid concern, and it's a big issue. So, here's the deal. In around 2004 to 2010, everybody's happily going along collecting payments for properties and their purchase of sell and actually like payments to make payments to pay off the property with PayPal. They woke up one day around, I don't know, 2010 and said it's beyond our risk threshold and they cut us all off, all of us. They didn't give us any notice.
Jill DeWit: We were all happily sailing along-
Jack Butala: So we all scrambled and found something else ... I think it was Stripe, at the time, or Bluepay ... there's a bunch of them. There's a million ... they're called payment gateways. All of them, for whatever reason [crosstalk 00:01:48] have all agreed-
Jill DeWit: One by one ... It's not at the same time too-[crosstalk 00:01:53]
Jack Butala: It's like dominoes.
Jill DeWit: It's like one by one they go ... we're all over here, we're all happily accepting payments and the next thing they go, no ... we changed our mind. Then we go to the next guy.
Jack Butala: Yeah, it's like dominoes. So you have exactly two solutions and Jillpay is one of them, and it's working extremely hard to get this thing done. The second one, and a couple of our members have done this ... very successfully in fact ... we've done it too ... is to go to your bank, and sit down with the branch manager, or whoever is the most appropriate or highest person you can get to ... Try and make it a large branch ... and explain the situation. They will, especially if you've had a bunch of deposits over time, and they're looking at your bank account and your deposits over the last few years ... they will grant you permission to do this. They don't issue a waiver, but what they really do is say, you seem to be a standup person on this whole thing ... we're gonna let you do this. Several members have had success with that. It's not an overnight process, which is why Jill and I are solving this, with Jillpay. It all comes down to the backend processor. If you look in on the internet and find out how credit cards are processed and how many people are involved when you buy something on Amazon ... it's actually, relatively silly. The real winners are[crosstalk 00:03:14]
Jill DeWit: Like more involved than we reali...