The Deals We are Doing Right Now (LA 1014)
Transcript:
Steven Butala: Steve and Jill, here.
Jill DeWit: Hi.
Steven Butala: Welcome to the Land Academy show, entertaining land investment talk. I'm Steven Jack Butala.
Jill DeWit: And I'm Jill DeWit. Broadcasting from sunny southern California.
Steven Butala: Today, Jill and I talk about the deals we are doing right now.
Jill DeWit: That's nice.[crosstalk 00:00:15]
Steven Butala: It's a little bit different today. I'm going to basically interview Jill-
Jill DeWit: Wow.
Steven Butala: About the transactions that we're doing, and planning on doing.
Jill DeWit: Cool. I was just going to say its nice cause it's now July! We're over the, for those of you who don't know this, it's a thing called June Gloom. It's real. The struggle is real. You know.
Steven Butala: I think the technical term is marine layer, but we'll go with that.
Jill DeWit: June Gloom, we call it June Gloom, and it's over now.
Steven Butala: Oh it's we. It's we. See, I'm still not a Californian.
Jill DeWit: That's not what your ID says.
Jill DeWit: What does your ID say?
Steven Butala: It says Arizona.
Jill DeWit: Uh-oh.
Steven Butala: So does my tax return.
Jill DeWit: Uh-huh. Okay.
Steven Butala: Before we get into it, lets take a question posted by one of our members on the landinvestors.com online community. It's free.
Jill DeWit: Abhinav asks, “Hi Guys. My understanding of the consideration amount on the deed was that it's the same as the sales price. But, I keep seeing deeds with consideration amounts as ten dollars, which is obviously not the sales price. What am I missing?"
Steven Butala: This is, uh.
Jill DeWit: Abhinav, you are correct.
Steven Butala: We haven't answered this question in quite some time, and it defies common sense, so it's a good question.
Jill DeWit: It is.
Steven Butala: Every deed that I've ever seen, whether it's any type of deed; grant deed, quick claim deed, warranty deed. Starts off like this, “for good invaluable consideration of, ten dollars or one dollar or some nominal amount, usually ten or one for some reason,"
Jill DeWit: Mm-hmm (affirmative).
Steven Butala: “We the grantors, Steve and Jill Company, grant to you, the grantee, new buyer, the following property.” And then there's a legal description.
Steven Butala: So what is this business with the one dollar, ten dollar scenario? If you go way, way back, and I researched this a long time ago to answer this question several years ago, people used to convey property back in the day. Back in like homesteading times. For good invaluable consideration of anything. It could be like love for my child.
Jill DeWit: Mm-hmm (affirmative)
Steven Butala: So, that's just stock. And I've actually, way back in the day, made the mistake of putting the sale price in the actual deed. So I think it's something that maybe we've all done or thought about doing, or wondered, but this is a great question.
Jill DeWit: It is.
Steven Butala: Just leave it the way it is.
Jill DeWit: Yep. [crosstalk 00:02:29] Copy it exactly.
Steven Butala: And when in question about any of these deeds, and how to do a deed, I take the Jill route.