Real Estate Investment Rules to Live By
Transcript:
Jack Butala: Jack and Jill here.
Jill DeWit: Hi.
Jack Butala: Welcome to the Jack and Jill Show. Real estate investment talk is what we do here. I'm Jack Butala.
Jill DeWit: I'm Jill DeWit and we are broadcasting from sunny Southern California.
Jack Butala: Today, Jill and I talk about real estate investment rules we both live by and surprisingly they're not the same rules.
Jill DeWit: That's not surprising. Why is that surprising?
Jack Butala: That's the whole point. That's my whole point to the whole thing.
Jill DeWit: I make up my own rules.
Jack Butala: What works, I know. You actually do.
Jill DeWit: I do. There's not a lot of them.
Jack Butala: I pretty much just follow what's in my calender and it seems to work out for both of us. Before we get into it let's take a question posted by one of our members on the Jackjill.com online community. It's free.
Jill DeWit: Okay. In this one it looks like we have the question and we have an answer. So, I'm going to go through the whole thing here. So, C.E., I have the initials, asks, question for all you experienced folks out there. Does the model scale up for counties where the land is worth more? I assume it would but most of the successful stories I hear are in the southwest. If others are seeing success with scaling up please share some of your experiences and then Jeff A replies, I'm not sure about everyone else here but from my experience the more expensive the parcel the longer it takes to sale but the more profitable, unless you sell on terms. I have bought and sold in the southwest, northeast, and south and they have all sold. As long as you purchase at the right price and you have a strategy before you purchase you can also do an option contract on the more expensive parcels. Just an idea. I was, he did a great job.
Jack Butala: I mean, is there anything else to add to that, really?
Jill DeWit: No. I mean it's really ...
Jack Butala: Thank you, Jeff.
Jill DeWit: Yeah, I think his, his experience is what we and most of our community have experienced. Which is, you know it's kind of what, just think about it. I mean, not as, just think about anything in a price range. There's going to be less people at the half million and up you know, price range then there are at the hundred thousand dollars and below price range.
Jack Butala: It's absolutely brilliant, Jeff.
Jill DeWit: That's kind of it. You know? So ...
Jack Butala: There are less people who buy Porches and more people who buy Chevy's because of the price point.
Jill DeWit: Yeah.
Jack Butala: I don't know for sure but I would assume there's a little bit more profit margin in the higher priced stuff.
Jill DeWit: Right.
Jack Butala: That goes with clothes, everything. So, the answer is heck yes. Does it work? It always works.
Jill DeWit: Uh-huh (affirmative).
Jack Butala: I personally like higher priced property.
Jill DeWit: Right.
Jack Butala: You know, we cut our teeth and built a huge business on lower priced southwest property and we talk about it a lot and that's what, people, because it's cheaper, like Jill just said people start out that way. It's a great place to practice and start out,