Taking Your Business to the Next Level (CFFL 425)
Jack Butala: Jack Butala with Jill DeWit.
Jill DeWit: Hi.
Jack Butala: Welcome to our show this Friday. In this episode, Jill and I talk about taking your business to the next level. Before we get into it, let's take a question posted by one of our members on LandInvestors.com online community. It's free as always.
Jill DeWit: Cool. Chip asks, "Hi, land peeps." I love this. I really like that term actually. Land peeps is cute. All right. "I just received an accepted offer for $4,440 on 40 acres in Arizona. The lowest sales price comps are around $20,000 on LandWatch. My plan is to quickly flip for around $10,000.
Jack Butala: That's a good plan there.
Jill DeWit: I love where this is going. "While doing my due diligence, I found the tax assess value was only $1,200, but the market value on the assessor site was $8,000. Should I be concerned I'm overpaying? My gut tells me it's still a good deal.
Jack Butala: May I, Jill?
Jill DeWit: Yes, please.
Jack Butala: Listener, please stop what you're doing and retain this forever. The assessed value of a piece of real estate has nothing to do with its market value. Nothing, nothing, nothing, nothing, nothing. Nothing to do with its market value. At the assessed value is a fantastic way to relatively gauge what it's work next to another property in the same county, but it has nothing to do with what you can sell it for. Nothing. Chip, go with your gut. If properties in this area are selling for $20 grand and you're going to sell yours for 10 and you bought it for four, I think you're right on the exact path to this program and what this program is all about.
You can take the same math and add a zero to each number, or add two, or three, or four zeros like Jill and I do. Now you're buying it for a million, or 4 million and you're selling it for 10 million and it's really worth 20. That's how we apply this. You're off to a fantastic start. I remember when you joined it. You've been super diligent about this whole thing from start to finish. Please retain this. Forget about the assessed value. It has nothing to do with what it will sell for.
Jill DeWit: Perfect. Isn't it funny? I remember talking to people and now it's second nature to them.
Jack Butala: Yeah.
Jill DeWit: They look at me cross eyed like, "Wait a minute. A $1,000 and it's $2,000, then it's $4,000 then it's $8,000. Then it's $16,000." I give them this math when they're starting out. Like, "Just hang in there. Do this right. Start slow. You've got this. In a couple of months you're going to be looking at $35,000 in your checking account. Now you can make some different decisions." They kind of go, "Wow." Then a few months go by and that's where they are and I have to remind them, "Remember we had that conversation." They're like, "Oh my gosh, you're right." I'm like, "Yeah. Remember when you were worried about that?"
Jack Butala: Yep.
Jill DeWit: Yeah. Now it's not a big deal. They're like, "Yeah, you're right. Okay, I got this." It's so funny.
Jack Butala: Do you have a question or you want to be on the show, reach out to either one of us on LandInvestors.com. Today's topic, taking your business to the next level. For the record, full disclosure, I didn't write this title. Take it away, Jill.
Jill DeWit: I did. I brought this up because we have a lot of people in our group that are here and they're ready. I really wanted to talk to you about this, Jack. I wanted to ask you, what do you think are the indications of the people that are really ready t...