Mistakes We Have Made in Land Investing (LA 1459)
Transcript:
Steven Butala:
Steve and Jill here.
Jill DeWit:
Hello.
Steven Butala:
Welcome to the LandAcademy show, entertaining land, investment talk. I'm Steven Jack Butala.
Jill DeWit:
And I'm Jill DeWit broadcasting from sweet Scottsdale Arizona.
Steven Butala:
Today Jill and I talk about the mistakes we've made in land investing. And man, I have made some great-
Jill DeWit:
This ought to be funny.
Steven Butala:
Biblical mistakes. You know what? I bet my mistakes are way bigger than yours.
Jill DeWit:
You know, it's funny, I have one catastrophic mistake that we make all the time, seriously. And then I have mistakes that I've just talked to people recently about, and I will share those too.
Steven Butala:
Excellent. Before we get into it though, let's take a question posted by one of our members on the landinvestors.com forum. If you're already a LandAcademy member, please make sure you check us out on Discord, one of my favorite tools actually.
Jill DeWit:
Cool. Yeah. There's two places. So you can go on landinvestors.com and chat with everybody. That's free, you don't have to be a member. Or the Discord thing he's talking about, is for members, and that's super special and fun and fast.
Steven Butala:
It's my new favorite tool.
Jill DeWit:
It's hilarious. Okay. Levi wrote, "Hi everyone. They're still in escrow now, so I don't want to count my chickens too soon, but I just snagged my first two big time deals. They'll both end up being about $15,000 to acquire, and I think they're worth about $100,000 each, retail."
Steven Butala:
That's why we're here.
Jill DeWit:
Holy moly. "I will probably list them at 65 ish."
Steven Butala:
No.
Jill DeWit:
No, no. Let Levi go. Let him go. I'm going to share, it ties in today. "And move them quickly. They're both partner funded and it's also my first time doing that as well, working with an old childhood friend."
Steven Butala:
Excellent.
Jill DeWit:
"Cross your fingers for me because if the spread works out the way I think, that'll be the most money I've ever seen in one place in my life." Aww.
Steven Butala:
That's a great story.
Jill DeWit:
That ties into the show too.
Steven Butala:
And you're never going to get rid of that childhood friend when they get a check, they're going to be standing at your door.
Jill DeWit:
Yep. So here's one of the mistakes I'll give it. It's a prelude and it ties into what Levi just said, and it's a prelude to the show today. People often go in and retail price, and then they sit there and wonder why it doesn't sell. Well, congratulations, because you're retail price, you're one of however many there are in there. You got to stand out somehow, and it's usually price. It's price and reach, that's the whole point here.
Steven Butala:
It does tap right into the show.
Jill DeWit:
And you're going to totally, Levi's going to way double his money. If he wanted to move them for 35... What's funny is Levi's getting into the territory where if you price things too cheap, that you just try to really double your money and move on. Now it's priced too cheap and people think there's something wrong with it, and that's the funniest thing.
Steven Butala:
Yeah, the good news is that there's two. So I think you have the opportunity when you have two APNs like this, or more, to sell the first one at 40,000 and sell the second one at 100. So you recoup all your money, you get another mailer out, and you let the better of the two properties just mark it up. And if it's really, truly worth 100, sell it for 90.
Jill DeWit:
Not what I do, but that's okay. I like Levi's read too, both at 65 because they're worth 100 each and then let them go.
Steven Butala:
Today's topic, mistakes we've made in land investing. This is the meat of the show.
Jill DeWit:
We obviously see differently about these things, and there's nothing wrong-
Steven Butala:
No, I was just moving if forward because we're really...