Why Successful People Hide (LA 882)
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: I'm Jill DeWit, broadcasting from sunny Southern California.
Steven Butala: Today, Jill and I talk about why successful people hide.
Jill DeWit: This is an interesting topic.
Steven Butala: I have to admit, there are some topics that I write for myself. Most of them I write in an attempt to be helpful. This one's for myself.
Jill DeWit: Oh, no. All right. You've been warned.
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: John P. asks, "Hi, guys. You talked about the $10,000 thing on the weekly call last week. What is it exactly and why would it work for someone like me?"
Steven Butala: You want to hear mine first?
Jill DeWit: I do.
Steven Butala: The $10,000 thing, as what we're calling it, I don't know in the end what it's going to be called, but Joe Martin during one of our live events got this crazy idea that we all in put 10,000 bucks into a bank account and raise whatever, I don't know, 10 or 15 people put in, that ends up being 150 to $200,000.
Jill DeWit: Right.
Steven Butala: We incorporate. We're all partners on deal. Each of us as deals come up use that money as capital to purchase property and then we just go about our business and resell it like we always would individually. We don't collectively work on mail. We don't collectively work on sales. We just use the dough, and we all have to agree whether or not we want to do the acquisition. It's all via text. When the money ends up at the million dollar mark, you put the money back in. You keep half for yourself on the proceeds of the deal and then you put half of the money back into the pot. When it ends up being a million dollars, we do a bunch of disbursements and do it all over again.
That's the $10,000 thing. There's a lot of legal implications to that. You certainly can understand why we wouldn't want to do that with somebody who's brand new in the group. But seasoned people who have a track record of doing deals, certainly like Jill and I and like Joe and many, many other people that are probably doing ... Well, I know they're doing much better financially than we are buying and selling land on a monthly basis. I love to fund some of that stuff. The whole point is not to make money for the seed money people like us. The whole point is to allow people that are relatively advanced access through a bunch of dough to do great, great deals.
50 to $80,000 deals where the sale price is immediately $250,000. Keep have of that. Put half of the seed money back in and just keep going back to the well. That's this $10,000 thing. I'm not sure who asked this question? John. I don't know where you are or even if you're in our group, but it's reserved right now for the advanced people. It hasn't happened yet. My lawyers are still drawing up the agreements in Arizona. Some version of it is going to happen for sure. We just don't know. I want to make sure that it's legal and I want to make sure that the outcome is what everybody expects. We have so many deals coming in and out of this group that you get 10 people in a room, everybody's going to have 10 opinions.
Jill DeWit: Exactly.
Steven Butala: These are 10 entrepreneurs who are very strong-willed and bright. We just want to do it right. I'm actually excited to talk about it.