Our Biggest Land Flipping Bottlenecks in 2021 (LA 1541)
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:
And I'm Jill DeWit, broadcasting from scorching Scottsdale, Arizona.
Steven Butala:
Today, Jill and I talk about our biggest land flipping bottlenecks this year in 2021.
Jill DeWit:
I got two.
Steven Butala:
Yes, we're not perfect.
Jill DeWit:
I got two. I'm sure there's 20.
Steven Butala:
I have two also.
Jill DeWit:
Like, you know, you ask an unrelated third party, they're like, "Oh, all right. Oh honey, sit down."
Steven Butala:
I'll tell you, we just started Career Path, the second Career Path. So everybody's baring all. Like, this is what I want, this is what I do right and this is what I do wrong. And while we're doing that, I'm looking at myself going, wow, we don't have any of these issues, but these are our issues. So it's really helpful in a group like that to hear what other people's issues are.
Jill DeWit:
Like an AA meeting?
Steven Butala:
Yeah, just like that. Or Weight Watchers, yeah.
Jill DeWit:
Yeah. It's really helpful in a closed environment where we can all share personal things.
Steven Butala:
Before we get into it though, let's take a question posted by one of our members on the landinvestors.com online community. It's free. And if you're already a member, join us on Discord.
Jill DeWit:
That's how I'm going to lead the next Career Path meeting. I'm going to say, "Everyone, this is a safe space."
Steven Butala:
Taylor has a story here. It's a little bit lengthy, but trust me, worth it.
Jill DeWit:
Okay, cool. All right. Taylor wrote, "I wanted to share my latest deal that was in a flood zone." So if I can shed some light on buying flood zone properties.
Steven Butala:
Thank you, so I don't have to do this.
Jill DeWit:
"I had a seller reach out to me after receiving one of my offers on a seven acre property. The seller informed me that he would sell at $35,000 and not a penny less. I began my due diligence and found the entire property is in a flood sound. However, there are mobile/RV parks and houses throughout the surrounding area all within the same flood zone. I researched and found the flood elevation is just above the surface of the property. I decided to purchase at the seller's asking price, knowing it was higher than I would have liked, but knew there was a market for this property. After closing, the seller contacted me, thanking us for the purchase at his asking price because of medical bills stacking up from a health issue he was dealing with. The seller went on to tell me that several investors had inquired about this property, but all of them passed or tried to lower the price due to the flood zone. I listed the property a week later and sold it within five days for $72,500. The buyer had been looking for property for over a year just like this one."
Jill DeWit:
Two lessons to take note of here. Number one, not all flood zones are bad.
Steven Butala:
Totally.
Jill DeWit:
Just look at Phoenix, your famous one. Just because a property is in a flood zone does not mean the property won't sell.
Steven Butala:
Absolutely.
Jill DeWit:
Make sure to cover your due diligence, know what's developed around the area, know the restrictions on what you can and cannot do with the property and make sure to know where the flood elevation is. Number two, sellers and buyers both have problems that they're looking to resolve. Take the time to look into these deals and see what you can do to help. You never know. It may be profitable and beneficial for you as well.
Steven Butala:
Well said. Great story.
Jill DeWit:
That was great.
Steven Butala:
The entire city of Phoenix is in a flood zone. If you look it up on NeighborScoop and click the flood button at the end, complete entire-
Jill DeWit:
You're like, what? Oh no, move.
Steven Butala: