No One Knows Your Deals Better Than Us (LA 902)
Transcript:
Steven Butala: Steve and Jill here.
Jill DeWit: Hello.
Steven Butala: Welcome to The Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala.
Jill DeWit: I'm Jill DeWit, broadcasting from sunny southern California.
Steven Butala: Today Jill and I talk about how no one knows your deals better than us. And I mean that literally.
Jill DeWit: We'll explain that in detail in a moment.
Steven Butala: Before we get into the topic, let's take a question, posted by one of our members on the LandInvestors.com online community. It's free.
Jill DeWit: Rick asks, "At ... " I love this.
Steven Butala: So do I.
Jill DeWit: "19 minutes and 27 seconds in to Chapter 8 of the Land Academy, 2015 version video, Steven is going through his deal statistics form, which contains a line item labeled addendum needed with a question mark. He mentioned that addendum is required by a lot of states and counties, but doesn't go into much detail about such an addendum's nature or purpose. Could anyone explain what this is about or perhaps share an online resource I could review? Later in the video, I noticed that Jill said, on a recording of a phone call with a notary public, that she needed to have an affidavit of property value included amongst the purchase document. Would this be analogous-
Steven Butala: Analogous.
Jill DeWit: ... analogous to the addendum-
Steven Butala: Yes.
Jill DeWit: ... that Steven mentioned?"
Steven Butala: Yes. It's exactly the same thing.
Jill DeWit: Perfect.
Steven Butala: I'll explain why. Some counties and states require an addendum to a deed so that it notifies the assessor that the transaction, the property was sold during that year.
Jill DeWit: Right.
Steven Butala: So the deed goes to recorder, it gets recorded in the new person's name, and this addendum of property value, it's called all kinds of different stuff in different states, goes to the assessor. And then the assessor, it triggers the assessor, that property go into a separate stack, so to speak, to be reassessed.
Jill DeWit: Right.
Steven Butala: When properties go up, properties, you know, all property values generally go up as time goes on and so they get reassessed.
Jill DeWit: Exactly.
Steven Butala: Taxes go up, too, according to the sale value.
Jill DeWit: Especially when it's triggered by a sale. Now they know, like, "Oh, people want this. Something's gonna happen."
Steven Butala: Yeah.
Jill DeWit: Traditionally, they think something's gonna happen and that's why they want to know it and track and maybe do something about it. Maybe charge more taxes.
Steven Butala: So is there a list somewhere of all those how the states handle this? No. How we personally handle it, when we go to a new state, if we're doing our own deals, which we don't very much do anymore. We use escrow. If you're doing it by escrow, it doesn't matter. They're gonna do it for you. But all you have to do is call the recorder and say, "Hey, do I just-
Jill DeWit: What else do I need?
Steven Butala: ... I got the deed ready to go here. Do you guys have an addendum like California does? Do you use an addendum in New Mexico?"
Jill DeWit: Yep. And that's what Rick was referring to in the first version of Land Academy.