LandPin is Open for Business (CFFL 506)
Transcript:
Jack Butala: Jack Butala with Jill DeWit.
Jill DeWit: Hey there.
Jack Butala: Welcome to our show today. In this episode, Jill and I talk about landpin and how it's open for business. Been a long time, Jill, and a lot of work.
Jill DeWit: Right.
Jack Butala: But it came out great.
Jill DeWit: Yep.
Jack Butala: Before we get in to it, let's take a question posted by one of our members on the landinvestors.com online community. It's free.
Jill DeWit: Okay. Patrick and Jessica ask, "Hi all, we are a week out from posting our properties in a few areas, and have heard nothing. I know we need to be patient, and continue to expand our areas of marketing, but what is the standard time to sell a property. I am sure it depends on so many things, where you post, the demand in the area, your pricing, etc. I'm wondering at what point some of you dramatically lower your price?" I can't talk today. "Are we looking at weeks, months, time to sell? What is a reasonable goal? Thanks much."
Jack Butala: So, I look at ... I gauge all of this by, with money. It's not really about the property, or just moving stuff around. And I call it cash in, cash out. So, when you write the check, or however you purchase a property, that's cash out. And when do you get your cash back, times whatever. Hopefully a positive multiple. For us, it's times two.
And I look back on all the properties we've ever sold, and even recently this is true, it's about 30 days. So, you know, to directly answer your question. That's reasonable goal. If you've done everything right in our program, if you purchased it for 20, 30, 40% of what you really think it's worth, and you're trying to double your money, then that's really what should happen.
Here's a few things that I think could get in the way of that. You purchased a property in an area where there's just tons, and tons, and tons, of properties for sale. I'll reel off, just for fun, in the lower priced asset business we're all in, I'll reel off a few subdivisions that I would avoid: Deming, New Mexico is packed with half acre properties that everybody seems to own one, on the planet; there's a few subdivisions in southern Arizona that I would avoid now, because there's just so, there's 10s of thousands of properties in these subdivisions.
But, in general, if you stick with acreage, like most of our members do, you're going to do great. Everybody loves acreage. And now, I think yesterday, we talked about somebody with an infill lot goal. Those are great. You know, you should cash in and cash out of those.
Jill DeWit: It's always nervous ... You're always nervous your first few properties. And I understand that. And it's funny, because, don't, don't lower your prices. As long as you priced it right, I mean, as long ... I mean, Patrick and Jessica, have the inside track, so you know how to buy it right? You know the ball park. You know how to price it to sell. And you know that you're under ... If you did it like we really, really tell you, and suggest, which is, it's already priced way below anything else out there, you just need to get it out there now.
That's the next thing, is just market the heck out of the thing. And the people will come to you. It's so ... I can't tell you how many times, that we've had this conversation with people, and they ... And it finally sells, like the next day it sells, and then two days later they get a call from a guy who would have paid more.
Jack Butala: Yeah. Yeah.
Jill DeWit: So, we're like, don't go knocking your price off yet, you just barely begun to let everybody know.