Outsource Due Diligence with InfillReports (LA 877)
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 southern southern California.
Steven Butala: Today's topic, outsourcing due diligence with inforeports.com and parcelfact.com. This is in the list of products that we provide to members and non-members to get deals done more efficiently, all in the name of having you, the investor, just be the deal maker, and not shuffle the paper around and be involved in all this stuff.
Jill DeWit: Mm-hmm (affirmative), and it's all brought to ... People come to us saying, "Boy, I wish I had help with X." "Boy, if I had a quick way to find that property." "Boy, if I knew it was buildable," doing, you know, an infill lot.
Steven Butala: Right.
Jill DeWit: It's all of that.
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: Okay. Kelly asks, "Looking to do the latest acquisition with a funding partner. Let me know if you are a funder looking for deals to do, as well. But, do not have an agreement for this. Anyone?" I'm sorry. I got myself confused in the question here. Let me ...
Steven Butala: You want me to do it?
Jill DeWit: Yes, please.
Steven Butala: "Looking to do the latest acquisition with a funding partner. Let me know if you're a funder looking to do deals, as well. But I don't have an agreement for this. Anyone have one that they can share, or send directly to me?" Question mark. "Also, when doing a purchase and funding a partner, do you allow the funder to take title?"
Jill DeWit: Thank you.
Steven Butala: Yeah. I mean, we talked about this on Monday, and Justin and I are gonna talk about it tomorrow with Plum Investments. We now fund deals with people all the time. He's got all kinds of agreements, and yes, there's one that specifically, that I've been watching it moving around the Internet, through email and on our websites. There's a [crosstalk]-
Jill DeWit: It's probably up there right now.
Steven Butala: In fact, by the time we're answering this question, we probably have a ton.
Jill DeWit: Somebody's probably shared it with you.
Steven Butala: Yeah. So, absolutely. You know, the answer's yes, to all of it. Does the funder take title? Yes. Here's how it works. So, you own part of it, and ... So, you fund a deal. You want to pay $10,000 for it. You think it's worth $30,000. So, you tell the funder. The funder says, "Yup, I agree with you. $10,000 is a great price, but I think it's worth $30,000." Everybody signs a little single piece of paper. I think it's two pieces of paper. And the funder, with your direction, closes the deal. They buy the property. They own half of it, and you own half of it, which I think is only fair.
And it goes on the title, just like that. It gets sold for $30,000. They get their $10,000 back. They get 50% of the profit margin, which in this case is 20 grand, so you take 10 and they take 10. And you have put in exactly zero dollars. Zero. And you take $10,000 out.
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: And the funder, at closing, gets $20,000. They get their original $10,000 that they lent, and their $10,000 piece.
Jill DeWit: Well, you brought the deal to the table, and that's why this makes sense.