What is Really Possible Flipping Land (LA 1246)
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 sunny, Southern California.
Steven Butala:
Today Jill and I talk about what's really possible flipping land.
Jill DeWit:
Oh my goodness.
Steven Butala:
Here's a spoiler alert.
Jill DeWit:
Yep.
Steven Butala:
It's just about literally infinite.
Jill DeWit:
I know.
Steven Butala:
Not literally infinite. It can get huge, fast.
Jill DeWit:
This time. You know what? This is... since we started doing deals together in the last X years, this is probably some of the best deals I've ever seen.
Steven Butala:
Me too. It's the best deals I've ever seen in my whole, entire career. We will clear, after tax between five and 10 million bucks in the next 36 months. That's what's possible.
Jill DeWit:
Yep. Well now you gave it away.
Steven Butala:
That's with us and all these other companies that we have.
Jill DeWit:
But wait. We'll talk more.
Steven Butala:
But do you need that much? No.
Jill DeWit:
No.
Steven Butala:
What's important is you establish a system and practice at this stuff if you're brand new. And learn, because it's a great environment to learn.
Jill DeWit:
Exactly.
Steven Butala:
It's more fun to learn how to fish in a pond that's just packed full of fish, where you just throw the thing in there and reel it in and throw it back and reel it in and throw it back and reel it in.
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:
Jaycee wrote, "Hello. I've been listening to Steve and Jill's podcast nonstop since discovering Land Academy."
Steven Butala:
That's too bad.
Jill DeWit:
That's 20 however many hours or weeks you'll never get back, Jaycee. I love it. "I noticed that in the past couple of weeks, Steve and Jill have been talking about acquiring as much land as possible." Yep. "In the current economic downturn." Correct. "I haven't heard much comment about how well sales are going." There's a reason why. I assume that-
Steven Butala:
Is there?
Jill DeWit:
Yeah, because there's not much to talk about. That's my whole point. "I assume they know their purchases will eventually sell, so they're not concerned with how fast, however being new to this and being concerned with cashflow issues, I'm wondering how long I should expect to sit on a property? A properly priced new land acquisition, like one to 10 acres. I know this varies by location and in a huge host of other factors, but in general, for those have been... who have favorite counties in which they have been buying and selling prior to the downturn, how much of an increase/decrease in buying are you doing and how much of an increase/decrease in sales frequency are you seeing your counties compared to pre-downturn? Thank you."
Jill DeWit:
Well I could just go back to the... I'm just thinking about the podcast that we did a couple of weeks ago with Aaron and Liz English. North of us here. They have two businesses. One's a nursery and one is this. And Aaron said, "Well, I guess we'll sleep next year. Or I'll sleep in a few years. Sleep is not important now because both businesses are on fire."
Jill DeWit:
The reason I'm not bringing up sales so much right now because I'm buying them so cheap. It's like, this is just nuts. And they are selling. What are the sweet spots, I think you're asking? There's a point where it's just like a house. We all know the middle income market's going to move faster than the luxury market. So dreaming up whatever product it is. It's kind of the same with land. There is a thing North of X thousands or X million, where you may see a little bit of a slower turnaround. I'm not in those markets right now. I'm really focused on the hot ones.