There are Con Artists All Around You (LA 1062)
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 Dewitt, broadcasting from sunny Southern California.
Steven Butala: Today, Jill and I talk about how there are con artists all around you. And here's the show that Jill and I talked about right before we started.
Jill DeWit: Yep.
Steven Butala: This has that potential to be so negative and we won't let that happen.
Jill DeWit: Because that's not who we are.
Steven Butala: We're going to just give you our take on our industry and the land industry and the education industry and we're going to laugh about it. And it's not negative.
Jill DeWit: Nope. But we want you to be aware.
Steven Butala: Yeah.
Jill DeWit: And we're going to talk about that.
Steven Butala: A couple of days ago, we had an interview with Travis Jenkins.
Jill DeWit: Yesterday.
Steven Butala: Yeah. Yeah. Yesterday. And he flat out said, I don't know if it was in the after show or in the actual show, he said, "I think that you guys have an obligation to do the show like this to really, because you're the ones who have the experience at all of it." So we'll get into it in a second, but-
Jill DeWit: I forgot that part.
Steven Butala: It was a good compliment.
Jill DeWit: It was nice.
Steven Butala: And this is my way of relieving my obligation to Travis Jenkins.
Jill DeWit: Nice.
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.
Jill DeWit: Jim W. wrote, "Hi, all. I've been selling lower-cost properties on terms without title. I'm closing my first larger sale with title and they are preparing a payoff deed to be recorded. I have heard we do not want to use a deed of trust as then you need to go through foreclosure to recover property if there's any default. Is anyone familiar with a payoff deed and what is necessary if the buyer defaults? Thanks, James." This is all your thing.
Steven Butala: A payoff deed? So he's exactly exactly right. What he's going down the path of doing a deed of trust. There's two ways to sell property on terms with with seller financing. A deed of trust, which is very similar to how you would buy a house. The property gets recorded in your name. There's a mortgage on it, and they have a lien. So in the case of a deed of trust here with land, it's the exact same thing. That property goes into the new buyer's name and you, the seller, are essentially acting as the bank and in between you is a trustee. And the deed of trust outlines all of this. In fact, it's just like a car title. They're actually on the actual deed so that when the property gets all paid off years from now, that pay off deed, just like you get a new title to your car, the Toyota Financial or whatever's on there gets removed and would get removed as a seller and you get a pay off deed.
Steven Butala: That's the mechanics of it. The other way is a land contract where I'm a seller. I sell a property to Jill. We sign a contract, the deed, property stays in my name until she pays it off. Then I deed it to her. And that way if you're out of compliance, if she's out of compliance in any way during the course of the deal, there's terms and conditions in there and procedures about what happens.