What Would You Do with Limitless Capital (LA 1340)
Transcript:
Steven Butala:
Steve and Jill here.
Jill DeWit:
Howdy.
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 would you do with limitless capital? Just thinking about that just makes me all warm inside.
Jill DeWit:
Makes you all warm and fuzzy. It's like your version of hot cocoa.
Steven Butala:
Something. Something like that.
Jill DeWit:
What is it? Let's see.
Steven Butala:
There's a lot of people who are addicted to raising capital and that's what they do in life. We have people in our group like that. There are some people that grossly mismanage it, to the point of insanity, like Bernie Madoff. And there's a lot of laws and regulations surrounded by raising capital, depending on how you structure it, like debt or equity or how long you've had a relationship with somebody that you're raising the capital with. So I'm going to go through all that stuff at let's say a 20,000 foot view on it and how we do it and how it works for us and how I see us doing it actually next year.
Because next year I believe that the real estate markets are going to somewhat implode because of forbearance and you're going to see a lot of good deals out there. And when you see a lot of good deals, you run out of money fast. You don't want to be raising capital when all of that stuff starts to happen. You want to raise it way before. So we'll talk about it.
Jill DeWit:
No, it's true. It's like we joke about starting your company. You're opening your office, get your office, get your stationary, get all your furniture in and get all the pretty... Everybody's just kind of sitting there and you open the doors like, "Okay, now we're ready. Customer, number one, please come in." You know what I mean? Could you imagine?
Steven Butala:
It's crickets.
Jill DeWit:
Exactly. Yeah, totally.
Steven Butala:
No. Yeah, I grew up... Gee, you got to Rocky Balboa that.
Jill DeWit:
Yeah.
Steven Butala:
you need to-
Jill DeWit:
Do it all wrong.
Steven Butala:
You need to see-
Jill DeWit:
You taught me that. You're the pro at that.
Steven Butala:
Really?
Jill DeWit:
Well, I mean, I knew it. I didn't know the level that you do it, which is actually the best level. You come in and then there's so much with the customers. We're figuring this out. It's a little bit chaotic.
Steven Butala:
It's a mess.
Jill DeWit:
Yes.
Steven Butala:
It's a mess. Let's just call it a mess.
Jill DeWit:
Yes. But it's great and then everybody kind of understands. We're like, "Ah, we didn't know this would work. Hold on, everybody. We're going to fix this."
Steven Butala:
Now it's worth working on.
Jill DeWit:
Exactly.
Steven Butala:
If you do it the other way, it's like, I don't know if this is even worth working on.
Jill DeWit:
Exactly.
Steven Butala:
I've never understood that whole... It's way out of my comfort zone to do like a Palo Alto startup.
Jill DeWit:
Oh yeah. That too.
Steven Butala:
A .com startup, where you raise a ton of money. You raise a ton of money, you get a CFO.
Jill DeWit:
Based on an idea.
Steven Butala:
Yeah. Based on... There's not even a-
Jill DeWit:
A working model.
Steven Butala:
... customer. You haven't tested the concept yet and you don't have a customer.
Jill DeWit:
Right.
Steven Butala:
It's just like, "You know, this app could work. It really could." The app to manage X could really actually work. Nail salons or even Uber or Lyft. It's like, you know what? I would have bet money those didn't work. I don't even think they work, actually. It was just a money raising mechanism and that's it.
Jill DeWit:
It's crazy right?
Steven Butala:
Before we get into it, let's take a question posted by one of our members on The Land Investors.com online community. It's free. This is not a misprint.