Vacant House Down the Block
Transcript:
Jack Butala: Jack and Jill here.
Jill DeWit: Hello.
Jack Butala: Welcome to the Jack Jill show, entertaining real estate investment talk. I'm Jack Butala.
Jill DeWit: And I'm Jill DeWit broadcasting from sunny Southern California.
Jack Butala: Today, Jill and I talk about that vacant house down the block. What a time-waster.
Jill DeWit: Oh my gosh.
Jack Butala: Is it a time-waster?
Jill DeWit: Oh my gosh.
Jack Butala: Or is it the greatest real estate deal just waiting to happen to launch your career in famousness?
Jill DeWit: Well think about our street even, we could be, right now within a one-mile radius, even a 100-yard radius right now, there's several properties that fit this criteria that they're vacant for a reason everyone.
Jack Butala: Spoiler alert, it's the biggest waste of time there ever was.
Jill DeWit: Yep. Well that's it. Show's over.
Jack Butala: Let's take a question before Jill and I debate and get into it. From one of our members on the jackjill.com online community, it's free.
Jill DeWit: Okay, Joe M. asks, "Hi everyone. After a successful first year trying out the land investing business, I'm hoping to scale up. Jack often says that the most experienced members of the group have scaled up from the $1,000 profit properties to $10,000 profit properties or higher. I would like to sell my properties for cash, and so, I'd like to find the balance between time on market and profit per deal. Has anyone experienced where the tipping price point might be for cash buyers? Obviously, fewer and fewer people can buy for the cash, buy for cash the higher you go. I'd like to hear from people's experiences where that might fall off. I made up these numbers, but for example, $5,000 selling price for a $10,000 market value flies off the shelves."
"$10,000 to $20,000 market value sells very fairly quickly as well, but $20,000 to $30,000 takes a long, long time. Most cash buyers are $10,000 or below. These are [co-en-co 00:01:59] or something along those lines. Please reference your selling price and your determined market value. Thanks in advance for your time and consideration on this question." And then Trevor, one of our members, actually already wrote a reply here. So Trevor says, "Yes, the cheaper the property, the more buyers. $10,000 is a pretty good number for most folks to pay via credit card. If you are truly ready to scale up, I highly suggest you find hot areas that you know."
Jack Butala: He's nailed it.
Jill DeWit: Mm-hmm (affirmative). Seriously, get off the cheap crap in the Southwest.
Jack Butala: Absolutely, Trevor.
Jill DeWit: "If you have been doing it, if you've been doing it, why not start in your own backyard? I highly suggest meet with a lot of folks in an area, get a feeling for the days on market and the exact areas that are flying off the shelves and then start there. I have held $1,000 five-acre parcels in the desert for months, and I sold $156,000 properties in 90 days. So who knows?"
Jack Butala: This an incredibly intelligent question.
Jill DeWit: Awesome.
Jack Butala: And Joe, you're destined to really, really do well, just because ... the way that you're looking at this. So, you can't put it in a box just based on numbers. Imagine me saying that, Jill. I would love to put everything in a box based on numbers, but unfortunately, that's not how the world is.