The Mystery of Assessed Value (LA 1495)
Transcript:
Steven Butala:
Steve and Jill here.
Jill DeWit:
Hello.
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 sweet Scottsdale, Arizona.
Steven Butala:
Today, Jill and I talk about the mystery of assessed value.
Jill DeWit:
God, this comes up often.
Steven Butala:
Yes. Why do you think it comes up so often?
Jill DeWit:
It's a thing. Well, because people need to have some way to value property. And when they're doing pricing and they're buying and they're selling, right. So we often go, "Well, what does the assessor say? Where can I find some numbers?" And the number that jumps up first, it's like, "I'm staring at it. I'm staring at the data. It's the assessed value." So that must be real, right? So it's always real, right?
Steven Butala:
I'll tell you what I think about this in a minute.
Jill DeWit:
Oh okay. Thank you.
Steven 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 if you're already a member, please join us on discord. It's an amazing tool. And I get a lot of our questions, like the question that Jill's about to read, from landinvestors.com. And I see older, seasoned, amazingly successful members, piping in hard on landinvestors.com, but not discord. And I'm about to call him myself.
Jill DeWit:
What does that mean?
Steven Butala:
There's some older established people that have been with us for five years that don't know about discord.
Jill DeWit:
Oh, okay. You're about beating that dead horse now, by the way. So I think we got it.
Steven Butala:
This is such an invaluable tool.
Jill DeWit:
Okay, thanks. Jason wrote, "I have a deal that I have a seller willing to sell and a buyer ready to buy." Nice. "The buyer wants to go through title of his expense. My first thought is to do a notary close, get the land deeded to me and record it. And then...", Sorry, I lost the question.
Steven Butala:
Oh, I'm sorry.
Jill DeWit:
You're fine.
Steven Butala:
That was my fault.
Jill DeWit:
You got it. "And then go to the title company with the deed in hand and then sell to the buyer." I get it, and do title insurance then. That's what Jason's talking about. "So I disclosed this to the seller and he says, he's an investigator. And he asked..."
Steven Butala:
He's an investor.
Jill DeWit:
Oh, excuse me. Anyway, "...and he asked, 'Well, why don't I just assign the contract and then collect the assignment fee versus the double close?' I don't know why not, so, I wanted to ask the group. We all live in a different city across Texas. So I don't know if the assignment may be too messy for the seller, that I've already said I would just send a check for the notary close. Pros versus cons on the double close versus the assignment." So I'm going to go first, sir.
Steven Butala:
Actually, you can just go.
Jill DeWit:
You know what's funny? This has come up a couple of times in Clubhouse.
Steven Butala:
Jill loves Clubhouse.
Jill DeWit:
I do, just as much as you love discord. And it's interesting, but anyway,
Steven Butala:
Jill has her new baby and it's called Clubhouse. And she feeds it and pays tons of attention..
Jill DeWit:
So do you, Mr... Yes. Anyway, it's not about me right now. So this has come up because a lot of people do this successfully. And it's kind of like it's given the wholesaling term a bad name. So you've got to be real careful here. So let me back up and just explain. So there's a couple ways to do this. So you bought a property, you're under contract, whatever it is to buy it, and you start shopping it around to some of your buyers and you find out, "Yeah, I want to buy it." And you're like, "Huh, okay, wait a minute. He's ready to go. And the seller's ready to go. I can just take a piece in the middle." That's what he's talking about doing an assignme...