Where to go from $10,000 per Month (CFFL 551)
Transcript:
Jack Butala: Jack Butala with Jill DeWit.
JIll DeWit: Good Day.
Jack Butala: Welcome to the show today. In this episode Jill and I talk about where do you go from $10,000 a month? Well you go to $11,000 a month. Do we even need to do a show about that or is it more important-
JIll DeWit: You go up, you go up, you go up.
Jack Butala: Before we go into it, let's take a question from one of our members on the landinvestors.com online community, it's free.
JIll DeWit: Okay, Chuck asks, "Can someone share any tips and tricks for handling deposits from a buyer to hold a property for a few days or more? Of course, we wouldn't stop marketing it, and do you tell the buyer the deposit is non-refundable if they decide not to buy, and any other stipulations regarding deposits?"
Jack Butala: What would you do here Jill? Because you deal with this end of it, way more than me.
JIll DeWit: You know, I'm not a fan.
Jack Butala: I'm not either.
JIll DeWit: I tell you Chuck, I'm really not a fan of a deposit because I don't want to take a payment and have to send it back. I don't want to worry about, then somebody else comes along and I have to say, "You gotta wait two days because this guy's thinking about it." You know I don't want to mess with it, I really just don't go there. For me, you know what, I appreciate that you're excited about it and you want to go see it. I really have to be honest with you and say this is a first come, first serve cash deal, so that's it. If you're 90% of the way there I'd say if anything is crazy, you hate it, I would obviously stand behind and refund it, if you want to buy it, or I'd say then go check it out.
I have done this more often, this is what I do. I say, "You know what, here's the deal. I know you want to go look at it and you can't go until two weeks from now. So I get that. Call me before you decide your gonna go, because if it's gone by then, I don't want you to waste a trip." That's what I'd say.
Jack Butala: Here's what I've done in the past, and it's in the past because we have people doing this for us now but, what I have done in the past is I'd say, "No I'm not gonna take a deposit, and by the way, nothing's non-refundable in this business, ever."
JIll DeWit: Correct.
Jack Butala: That's just not how we roll. All it does, all it is, is bad will. But what you really want to do, realistically, is what I've done in the past. I say, "Look, I'm gonna to give you a verbal right of first refusal, all right? So I'm gonna continue to market it. I win. You have a verbal right of first refusal. I will contact you and give you a reasonable amount of time to close the deal if you want. If and when we get an offer, another offer if somebody buys it. It's a lot harder to do if they click on it and pay with a credit card in the middle of the night, but that's the risk that they're gonna have to take with this." The net effect of this is that, and you explain it that way, the net effect of this is that, what you're doing is smoking out how serious this person is and if they just have the down payment and they don't have the rest of the money or they just can't put a pen to paper, they're just not the right buyer.
That's really what you want to smoke out. In fact, communicating with the buyer this far, to this point actually, might be too much.
JIll DeWit: Yeah, they're either in or they're out.
Jack Butala: Yeah.
JIll DeWit: I don't even want to do it the way you just said because I don't want to...