Planning for Inevitable Real Estate Recessions (LA 750)
Transcript:
Steven Butala: Steve and Jill here.
Jill DeWit: Hello.
Steven Butala: Welcome to the Land Academy Show, entertaining land investment talk, we hope. I'm Steven Jack Butala.
Jill DeWit: I love that, "We hope it's entertaining." And, I'm Jill DeWit broadcasting from sunny Southern California.
Steven Butala: Today Jill and I talk about planning for the inevitable real estate recessions, plural.
Jill DeWit: Like, how many are we planning for?
Steven Butala: All of them.
Jill DeWit: Oh.
Steven Butala: This is some good stuff.
Jill DeWit: Do you mean because of different areas? You mean different decades?
Steven Butala: Different decades, so it happens between every 12 and 15 years, really tied to investment ... availability of capital, more than anything, and predatory lending.
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: There's all kinds of ways that you can see into the crystal ball, and a lot of them have to do with tracking really large home builders. It's really simple stuff, if you just put it in your calendar to look at it every week, spend five minutes, you can see the downturn coming.
Jill DeWit: Such an interesting time right now, because the unemployment rate is so low, so people obviously have money, they have jobs, so that's why the interest rates just went up. Is this trigger A of 10, trigger one of 10?
Steven Butala: Yeah. There are more jobs now than there are-
Jill DeWit: There-
Steven Butala: Go ahead.
Jill DeWit: Yeah, there are more available jobs than there are unemployed people.
Steven Butala: Right, that's the first time that's happened in our lifetime ... in my lifetime.
Jill DeWit: Exactly, so it's harder to hire.
Steven Butala: Yeah.
Jill DeWit: The people that don't have jobs, there's a reason why they don't have a job.
Steven Butala: Right, but we actually have to do a show here.
Jill DeWit: Oh, yes.
Steven Butala: Before we actually get into it let's take a question posted by one of our members on the landacademy.com online community, it's free.
Jill DeWit: Tim asked: "I'm located outside of the USA. Should I set-up a virtual mailbox in the USA for sellers to mail the signed acceptance letter of my offer, or do you think they will mail to my location in Canada? I want to remove all the barriers that could prevent customers from accepting my offer. However, I'm not sure if using a virtual mailbox presents any other issues down the road for this type of business. I would appreciate if you would provide any direction. Thanks."
Steven Butala: Yeah, so I covered this in the first Land Academy education program, and we, also, ... Jill and I have live events, which we don't probably talk about enough.
Jill DeWit: We do this year now.
Steven Butala: This is how to set-up your whole entire business, not just this little part of it. I cover all that. To directly answer your question, we have a mailbox. We have a virtual mailbox, and here's why: because we have sent letters. I've been sending ... millions and millions of letters have gone out-
Jill DeWit: Since the '90s.
Steven Butala: Since, the early 2000s ... Man, we still get some of those signed letters back fro...