Outsource Funding with Plum Investment (LA 875)
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 sunny southern California.
Steven Butala: Today Jill and I talk about outsourcing, funding your deals with Plum Investment. You know what, right before the show, Jill said, "This should be a show with Justin." Justin Sliva who does the show on Friday with me called Finance Friday, 'cause he is Plum Investment. And I said, "No, no. Wait a second. What the show is really about is how a member of ours, after about a year or so and getting good experience and really succeeding at this, stepped up and provided a product that we are not innately interested in providing for a lot of reasons, but it makes us stronger as a group."
The real win for us is that if we get more members, we get a bigger intelligent community of people who are doing deals so we can do deals with them. And he wins because he provides financing and makes a little dough on that. So, it's more of a discussion between Jill and I, and listeners without Justin himself, which we'll talk about, Justin will join us on Friday to celebrate that.
Jill DeWit: Exactly.
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.
Jill DeWit: Steven asks, "Have any of you used an escrow for a reduced fee to just review the documents and generate a preliminary title report for the buyer on a terms deal where the title will not change until the land contract terms are met and the parties are okay transferring funds directly? So, no escrow service needed for that function." That is brilliant.
Steven Butala: I love the concept. But I'm not so sure an escrow person is who you want. What you want is maybe a paralegal who's done a bunch of deals. There's a lot of paralegals who become paralegals before they're attorneys and they have no experience at all. So, excuse me, what you want is probably to hire a law firm and you're gonna get sticker shock over this, but it's a great question and I love the concept because you want to get everything done right, but the unfortunate answer is yes you can do it, it's going to be expensive, and the first time you do it, by the way, you need to look over their shoulder every step of the way and learn, because it's gonna be eventually you who's gonna do it.
Or you could use that escrow, 'cause escrow companies do terms deals all the time. They're just not land contract deals. They're deed of trust deals like a mortgage, and I don't want to get too complicated here, but that's not really how you want to do a terms deal. However, I can't express this enough, having a second set of eyes to look over this stuff is brilliant.
Jill DeWit: Never crazy.
Steven Butala: Today's topic, outsourcing funding with Plum Investment. This is the meat of the show.
Jill DeWit: I see this as filling a huge need that ... kind of the missing piece.
Steven Butala: Me too.
Jill DeWit: Let me back up. Land academy ... I wrote it down as kind of like there's five pieces. You want to do this business, number one, you need to have the knowledge. Well, check. Land Academy came along, we covered that. Number two, you gotta have access to the data. Well, check. We got that. Then we've gotta have mail, gotta get the data out to offers. Well, we created offers to owners. Check, we have that. Next you gotta have ... all the tools and things around doing due diligence and closing the deal. Well,