Disconnect Between Seasoned Real Estate Professionals and Blind Offers (LA 1297)

Disconnect Between Seasoned Real Estate Professionals and Blind Offers (LA 1297) Transcript: Steven Jack Butala: Steven, Jill here. Jill DeWit: Hey. Steven Jack 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 the sunny Northern California still. Steven Jack Butala: Today jill and I talk about the disconnect between seasoned real estate professionals and sending out blind offers. If you listened to the show yesterday, I kind of alluded to this fact. There are a lot of seasoned real estate people that have their way of doing things, which involves locating properties in the MLS, talking, talking, talking, talking, talking, talking, negotiating, talking, talking, talking, convincing, sending old bottles of whiskey, and all kinds of old school stuff. When you explain it and then they've had success at that. When you explain, "Oh no, we should send out 15,000 offers and..." Jill DeWit: Finding out somebody passed someone, getting to build relationships. That's some of my favorite. Steven Jack Butala: When you say, "Oh, we're going to send out 15,000 offers and buy five pieces of property and make $50,000 each," that just makes their head spin and makes them a little angry. Jill DeWit: It is a little angry. Steven Jack Butala: What they're angry about is the fact that they don't know anything about computers and data. Jill DeWit: They don't know how to do it. Steven Jack Butala: They're not upset with the concept or anything. It's passed them by. I get that. Not really. Before we get into it though, let's take a question posted by one of our members on thelandacademy.landinvestors- Jill DeWit: Thank you. Steven Jack Butala: ... .com online community. It's free. Jill DeWit: Thank you very much. Mohad wrote, "Hello. I am new in land investment. I'm not sure what measurement/calculation I need to do... I need to put price in my blank offer. Any advice, please? Did I read that right? Is that what you- Steven Jack Butala: He's asking, and I think a lot of people who listen to this show and aren't part of this group have this question. What he's asking is, "How do I calculate what to offer? You guys are constantly talking about sending out blind offers. I get it. How do I calculate it?" And here's what you do. You take a look at a property that you have deemed is worth $100,000 retail. You're going to sell it for 70 to $80,000 wholesale because you want to sell it fast. You need to purchase that property for half of that. So $80,000, you offer 40 which ends up being between 20 and 40% of what the property is worth retail. Your first rule of order in a spreadsheet full of pieces of real estate is to establish in every single line item what you think that land is worth. There's easier ways and there's hard ways to do it. If this intrigues you, what I'm talking about, you're a Land Academy member candidate. If you're listening to this and you're already a member, you've since long passed this. And you probably started down this path with us because you were interested in this. This is a very root, basic 101 question. "Hey, how do I price an offer?" Jill DeWit: Hey, wait. How many for the third option, which is, "And if you hear this and this makes absolutely no sense, or sounds like absolutely just too much darn work, this might not be for you." Steven Jack Butala: Yeah. Good. Well said, Jill. I have a lot to say about that. Jill DeWit: I had to get the third one out there. Steven Jack Butala: I have a lot to say about that, necessary it's so foreign to me. Jill DeWit: I know. It's okay. Steven Jack Butala: What do you think that's all about? Jill DeWit: It makes their head hurt. They can't. You know why? I think they see it as one, big overwhelming project instead of sitting back and going, "Okay, let me break this into chunks. Okay, so I have to first pick a county and I got to make sure it checks this box,