Yoga Pants Syndrome
Transcript:
Jack Butala: Jack and Jill here.
Jill DeWit: Hello.
Jack Butala: Welcome to the Jack Jill Show, entertaining real estate investment advice. I am Jack Butala.
Jill DeWit: And, I am Jill DeWit, broadcasting from sunny Southern California.
Jack Butala: Today, Jill and I talk about the yoga pants syndrome.
Jill DeWit: Oh, boy do I have a lot to say about this.
Jack Butala: Slash foreshadowing.
Jill DeWit: Where did you come up with this?
Jack Butala: Part of this is my rant. This show might be a little bit rantful, so-
Jill DeWit: I saw this title, and I'm like, "What is Jack thinking?" I am super curious-
Jack Butala: It will be a rated-G rant, but there will be a little bit of ranting.
Jill DeWit: I can't wait to hear.
Jack Butala: Everybody knows what this is, right?
Jill DeWit: I don't think they do. We're going to have to explain what this is, first.
Jack Butala: Okay, before we do that, let's take a question posted by one of our members on the jackandjill.com online community, it's free.
Jill DeWit: Okay, this one is a little lengthy. I will tell you, I have a question, and then I have an answer here. Joshua B. Wrote, "I've heard on the podcast that pricing mailers, specifically down to the subdivision is a great way to accurately price a mailer. Has there been a specific podcast or thread on how to actually go about doing this? What is the best way to identify a specific subdivision in a county? I know the information can be found in the Real Quest Data we poll, but I'm not exactly sure what I should be looking for to group like properties together, using a subdivision filter (APN schemes to look out for, like a description, etc.) any insight would be appreciated."
Well, now we have an answer here. Callie responded, "Hi, Joshua. This is how I price my offers. My process is similar to what Kevin describes ... " When I [inaudible 00:01:49], there's a bunch of conversations in here.
Jack Butala: There are lots, actually.
Jill DeWit: Yeah.
Jack Butala: And, a video.
Jill DeWit: Oh.
Jack Butala: She actually goes so far, Callie does, to put a video in there, and she shows how she prices. It's actually pretty amazing.
Jill DeWit: Aw, that was really nice. Talk about people helping people.
Jack Butala: Right.
Jill DeWit: That's really cool. All right, so, "My process is similar to what Kevin describes. When I start with a county, I will pull sales data back about a year, then I get to work in Excel. Steps: Sort the data by subdivision A to Z; Then, secondary sort dollar per acre. I create this column; Then, I subtotal by subdivision and create average dollar amount per acre for the subdivision. I will also take a look at the size of the lot for generally similar size. If you have 40's and fives-
Jack Butala: 40 acres.
Jill DeWit: "40 acres and five acres in the same subdivision, I will group them together and then get averages of those subsets."
Jack Butala: Subsets are the key here.
Jill DeWit: "At this point, I have account of sales by subdivision priced per acre, for each sale, and the average price per acre for the subdivision." Gosh, this is just so good. It's making my heart feel so good.