Relationship Between Real Estate and Paper (LA 1356)
Transcript:
Steven Jack Butala:
Steve and Jill here.
Jill DeWit:
Hi.
Steven Jack Butala:
Welcome to the Land Academy show, entertaining land investment talk. I'm Steven Jack Butala.
Jill DeWit:
And I'm Jill DeWit, coming to you from dreamy Park City, Utah.
Steven Jack Butala:
Today, Jill and I talk about the relationship between real estate and paper. Really, I talk about it. Jill said, "I don't know what this is. Can you please do it?" And I said yes.
Jill DeWit:
And just for all y'all who are a little concerned, we're not moving. We haven't moved, by the way. We're taking a little break from the beach, and a little change of scenery, which is always good.
Steven Jack Butala:
Take a break from California and all this silly stuff that's going on there. All the stuff you've heard about California in the news is true.
Jill DeWit:
Oh my gosh.
Steven Jack Butala:
We haven't been here a day and the people that we've talked to, we say, "Yeah, we're here from California." They say some version of, "Oh, I'm sorry."
Jill DeWit:
"We read."
Steven Jack Butala:
"I read this thing in the news. Is this really happening?" Oh yeah, it's happening.
Jill DeWit:
Yeah. It's real. The struggle is real.
Steven Jack Butala:
Before we get into it, let's take a question posted by one of our members on the landinvestors.com online community. It's free.
Jill DeWit:
Luke wrote, "Hey guys, newbie here, so bear with me. I've been brainstorming, and I just want to run this by folks who may have been in the same boat. I'm fortunate enough to be working with a financial partner to set on this journey so we can get out of the rat race into retirement." He has set aside some funds. "Let's just say, for the sake of this thread, about $15,000. My question is, given the excellent access to deals on landstay.com, which is our site, should we go buy a few deals around $2000 to $4,000?" I have a lot to say about this.
Steven Jack Butala:
I knew you would do it. I picked this question for you. I'm serious.
Jill DeWit:
All right, "And then resell it for quite a bit more for an instant return and create more cash to work with, or should we hyper-focus on mailing several counties after some due diligence that is laid out in the course, or focus on one solitary county with a more ramped up mailer?" I'm going to get part A, you're going to get part B on this one. "I'm sure this scenario has been discussed before, but I want to get a fresh perspective. My temptation is to go buy a couple of deals with the cash and get great returns right out of the gate. Thanks for the advice in advance." Okay. First of all, your plan A is not nuts. I know a lot of people, a lot of members that did that, especially in the beginning, bought cheap stuff from us because they knew how we buy and sell.
Because I'm interested in just wholesale billing and wholesale selling. So you could mark it up, still make some money, and learn the process. So I like that. I really do like that. That's not crazy. Please read them all. Read everything, because I sometimes have things that I forget about that I throw back in there. So I want you to read all, make sure you're aware of all the situations and the taxes. If it looks really, really, really cheap I may have discounted it because of the tax situation. So it's still...
Steven Jack Butala:
Check the back taxes on all those properties.
Jill DeWit:
Check the back taxes, right. But I put it in there, so you'll know that it's not really this much money, it's this plus this. But it's still way below what you know you can do, and then sell it. And whoever buys it from you is going to be happy. So I guess my whole point of that is, though, that's not nuts. Especially if you're really worried about learning to sell, I like that. Getting to learn, how do I sell? How do I post a property, get the photographers? How do I make them look good, write the descriptions?