What is Marketable Title
Jack Butala: What is Marketable Title. Every Single month we give away a property for free. It's super simple to qualify. Two simple steps. Leave us your feedback for this podcast on iTunes and number two, get the free ebook at landacademy.com, you don't even have to read it. Thanks for listening.
Jack Butala: Hey, Jack Butala with Jill DeWit.
Jill DeWit: Hi.
Jack Butala: Welcome to our show today. In this episode, Jill and I talk about what is marketable title. Great show today, Jill. Let's take a question posted by one of our members on SuccessPlant.com, our free online community.
Jill DeWit: Okay. Ariel wrote, "Hi, all. Finally closed two properties from our first mailing with one more to close. Now the fun part - selling and getting paid. When it comes to selling, we have two types of buyers, as Jill explains: the end user and the other investors. It sounds like selling to other investors is a simpler, much quicker transaction, which I understand as wholesaling the property, whereas selling to an end user can be a longer transaction with more guiding the buyer through the sale. Is this a retail sale and when selling retail, is there a difference in pricing? If my understanding of retailing the property's correct, I'd be willing to invest extra energy to maximize my return while the volume of deals is low."
Jack Butala: Jill, you are so way more qualified than me to answer this question. I will give my two cents, though, at the end.
Jill DeWit: Okay. Awesome, Ariel. Talk about well-thought out and putting all the little pieces in here to get all the answers. I love it. Let me chip away at this. First of all, the selling. Yes, you have two options, you're right. You can wholesale it to another investor, which like we talk about how we do all the time where it's almost now to the point we just send out a list with parcel information and a price and my buyers go, "I want this one, that one, this one, that one." We don't really talk about it. They know the area and all that good stuff. Yeah, I don't have to do any work. There's nothing involved in there. Bingo. That is wholesaling. You are right.
Now the other one is yeah, the end user. That's where you're making it look different and appealing. You need to make it look great because this person is not an investor. They don't know the area. They don't know that property. They don't really maybe even know what an assessor's parcel number is, the APN. They know there's an address and if it's a property, they don't understand why it's not an address. There's lots of little things. You're going to do more to it in pictures and, yeah, probably might be a longer process and you might be a little more hand-holding. As you put in your GPS coordinates so they can go look at it because they might want to drive out and look at it and stand on it because they're the end user. They're buying this from you because they want their cabin there or whatever it is they want to put there; their tiny house there. That is a retail sale. You are correct. Now can I mark it up and price it differently? Heck yeah. That's what I do.
Jack Butala: Way different prices.
Jill DeWit: Totally. You're going to even price it differently whether you're going to cash sell it to the end user at retail, or you're going to sell it on terms or payments. That's a whole other thing, too. You're going to mark it up even more if they're going to make payments on it. You're doing great. All of that really is just personal preference. How do you want it to go? Jack and I choose to flip them, be wholesalers, flip it, move on, and let the next person do that work, so they'll still make a great profit on it and everybody wins. Jack, what do you want to add?
Jack Butala: Yeah, this is good for you, by-the-way. Bought a couple of properties. That's awesome and I'm sure you're going to sell them quickly. I take a pretty hard look at all of our members and see who's selli...