Role of Your Telephone in Your Land Business (LA 1699)
Transcript:
Steven Jack Butala:
Steph and Jill here.
Jill K DeWit:
Hi.
Steven Jack Butala:
Welcome to The Land Academy Show. Entertaining land investment talk. I'm Steven Jack Butala.
Jill K DeWit:
And I'm Jill DeWit, broadcasting from the Valley of the Sun.
Steven Jack Butala:
Today, jill and I talk about the role of your telephone in the land business. Well, really, Jill's going to talk about it.
Jill K DeWit:
Yeah, exactly. That's how it's going to go.
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. And don't forget to subscribe on The Land Academy YouTube channel and comment on the shows you like.
Jill K DeWit:
Jessica wrote, "Do you have a business line of credit? If so, where? And are you pleased with the service?" Well, this is interesting. Was this in discord?
Steven Jack Butala:
Yeah. It was a very popular topic and heavily responded to by other members.
Jill K DeWit:
Does anyone?
Steven Jack Butala:
Yeah,
Jill K DeWit:
Really?
Steven Jack Butala:
Yeah. A lot of people.
Jill K DeWit:
Ah.
Steven Jack Butala:
And different types of line of credit. So there's lines of credit, there's house, regular mortgage, second mortgages and all kinds of stuff. And everybody had a lot of positive stuff to say, which is why ...
Jill K DeWit:
I don't have ...
Steven Jack Butala:
Which I brought it up here.
Jill K DeWit:
We don't.
Steven Jack Butala:
This is why I brought this up because Jill and I don't believe in debt.
Jill K DeWit:
Yeah.
Steven Jack Butala:
Whenever we need to get something done, which is every single day, we use equity. And so do I have a business line of credit? No. Could we go get a multimillion dollar line of credit against ...
Jill K DeWit:
Anything?
Steven Jack Butala:
Probably just our credit scores.
Jill K DeWit:
Right.
Steven Jack Butala:
It'd be tertiary debt, just like unsecured debt, like a credit card. We choose not to do that for a lot of reasons. Mostly because both of us collectively and individual have been burned, extending too much credit, whether it's asset based or not and having things go south and then having to mop that up. And this is in the way distant past for both of us.
Jill K DeWit:
Let me know and I can share.
Steven Jack Butala:
So what I think you need to do, it's cheap as hell right now. You can get a line of credit for just 1% or 2%. So if you're crazy confident in what's going to happen in your career, that might be a good idea. It's a personal preference, but I vote no.
Jill K DeWit:
Here's my personal preference. We never have done this. So back in the day when we were huh, getting this going again, like I had acquisition funds, right? I had like a balance of our money that was set aside to buy land. And then when I was out of the acquisition funds, guess what I had to do? Hurry up and sell something so I could have the money to reinvest in something else. It just kept going and it would build up. It was great. So that's my first choice. Like you just said, I'm just not a fan of this at all.
Steven Jack Butala:
Me too.
Jill K DeWit:
If you have $10,000, then you buy stuff up to $10,000. And you need to hurry up and sell it. If you do it right next, in 30 days, you have $20,000. And in 30 more days, you have $40,000. You hurry up and move this money through.
Jill K DeWit:
Now, if you need something more than that, or you don't even have $10,000, then I would use a partner. Bring in a partner where you're doing the deal together. You're not borrowing the money. It's like you're partnering on the deal. And it all goes sideways, that person gets a deal. You don't owe them anything. You're just like, well, shoot.
Steven Jack Butala:
That's equity.
Jill K DeWit:
I don't get part of this. It's the, yeah.
Steven Jack Butala:
It's also way more expensive.
Jill K DeWit:
Yeah.
Steven Jack Butala: