Set Your Net Income Per Deal Parameters (CFFL 454)
Jack Butala: Jack Butala with [inaudible 00:00:01].
Jill DeWit: Hi, there. I was trying to slow you down.
Jack Butala: Why?
Jill DeWit: I don't know. Sometimes I can barely say hello, and you're like, "Moving on."
Jack Butala: Welcome to our show today. This episode is just like life. In this episode,-
Jill DeWit: We also-
Jack Butala: ... Jill and I talk about setting your net income per deal parameters. I figured we do a whole show on this because we talk about it a lot. We talk about it, and it's time to get into it in detail.
Jill DeWit: Okay.
Jack Butala: Let's take a question posted by one of our members on landinvestors.com online community. It's free.
Jill DeWit: Okay. Michael asked, "After a recent mailing, I have a seller who wants to see me his property."
Jack Butala: Yeah.
Jill DeWit: That's the goal. "After doing my research, I found out that the property was sold with a deed of trust 20 years ago."
Jack Butala: Yeah.
Jill DeWit: "The owner said that they have the deed, or maybe just a copy. After further investigation, it looks like the previous seller sold the property on terms, and then sold the note to a retired couple. It was the retired couples' duty to notify the county with a release of deed when the note was paid off. The retired couple is now in their 80s, and they live in Arizona with no working phone number."
Jack Butala: Oh my God. Good for them.
Jill DeWit: Oh, this is great. "How do I-
Jack Butala: I would love to have a non working phone.
Jill DeWit: ... cleared up. Should I only buy this property by going through a title company?"
Jack Butala: Yeah.
Jill DeWit: Yeah, that's the easiest way, too.
Jack Butala: Yes.
Jill DeWit: If it's that good.
Jack Butala: Even then, they're gonna-
Jill DeWit: That's what I'm saying.
Jack Butala: So, turns out that title agents and title companies in general, they have thresholds for stuff, too. And if they get into it and find out it's just beyond their threshold to insure it, they won't close the deal.
Jill DeWit: What's so funny about title companies, too, I think their threshold is really short. Because they'll dump deals really fast. I'm like, "Wait, why are we not doing this?" They're like, "Oh, because he wouldn't return my calls." All right. Well, then let's try another way. You know.
Jack Butala: This sounds [crosstalk 00:01:57].
Jill DeWit: Hello.
Jack Butala: This property sounds like it may have multiple liens on it that are unresolved.
Jill DeWit: With this note-
Jack Butala: Yeah.
Jill DeWit: ... and this stuff, too. So, this is one that even now, I may or may not do it. It depends on the spread because if I can't make enough money on this one, I'm not doing it. It's already, right now, a headache.
Jack Butala: Yeah. Quiet title action might be appropriate here.
Jill DeWit: If it's appropriate.
Jack Butala: Yeah.
Jill DeWit: I'm not sure.
Jack Butala: The other thing, too, is that this is a great way to negotiate the pric...