Wholesale Houses and Land
Jack Butala: Wholesale Houses and Land. Leave us your feedback for this podcast on iTunes and get the free ebook at landacademy.com, you don't even have to read it. Thanks for listening.
Jack Butala: Jack Butala with Jill DeWit.
Jill DeWit: Hi.
Jack Butala: Welcome to our show this Wednesday. In this episode, Jill and I talk about wholesaling houses and land. How do we do it? What's the meat of it? Let's get down right to the basic stuff and some of the ways that people do really well and some of the mistakes we see. Before we get into it in tremendous amount of detail, Jill, let's take a question posted by one of our members on landacademy.com online community. It's free.
Jill DeWit: Okay. Kathleen asked, "What do you do when subdivisions never put in the roads? There are some county roads somewhat close by, but not leading to the parcel I'm looking at. There are also some well worn out dirt or gravel paths that are obviously being used, but not labeled on any county map or GE." I'm not sure what that is. "Or something leading to the parcel. I have a bunch of possible parcel purchases in this area, but many are in the situation. When does a parcel truly have no access?"
Jack Butala: All right, so there's a few questions in here. I'm going to answer if that's all right with you?
Jill DeWit: Yeah.
Jack Butala: There's a few questions in this whole statement and Kathleen, thank you. This is in true to form. As always, it's a very intelligent, well thought out question. There are two types of subdivisions. Basically, two types of subdivisions in this country. Number one, picture this situation. There's a farmer who has a couple thousand acres, or a rancher. He's got ten kids or three kids. They all get married, he wants to start to parcel out those properties. He splits it all up into forty acre properties and gives some to one kid, another kid and goes down to the county and gets all separate [APNs 00:01:45] and breaks it all out. Perfectly normal, happens all the time quite honestly. Then the kids end up, after years go by, not having any interest. Now the property's left and it's kind of cut up. This type of subdivision, in general, is what Kathleen's talking about.
There's no real roads or access and it was never meant to be that way. It was only meant to be ranched or farmed. Before subdivision regulations were happening at all in the 50's and 60's, people like us were allowed to go do this and break it even down further. Down to quarter acre properties or whatever you thought without any regulations. Without putting roads in or anything. There's a lot of different names for these types of subdivisions, which I'm not going to go into, but they're out there and they're all ... People own them and sometimes Jill and I even target those subdivisions quite honestly. West of the Mississippi, I actually know most of them by name.
Jill DeWit: It's true.
Jack Butala: There's that type of subdivision and then the second type is the one where you live. Whether you live in a house or an apartment or wherever. It's been subdivided through what's called entitlements and then you make a commitment as a subdivider or the developer to put in roads and utilities and really improve the property and develop it. Those are the types of assets we generally don't get involved in at land academy. We get involved with the former. Why? Because there's a chance to buy them so inexpensively. All right, so those are subdivisions.
What really is access? Well, there's two kinds. Legal access and physical access and they're pretty self-explanatory. When you look at a plat map and there's dotted lines and there's roads and it's all platted easem...