How to Buy Your Next House for Half Price (CFFL 542)

How to Buy Your Next House for Half Price (CFFL 542) Transcript: Jack Butala:                         Jack Butala with Jill DeWit. Jill DeWit:                            Hey there! Jack Butala:                         Welcome to the show today! In this episode Jill and I are going to talk about how to buy your next house for half price. Here's a hint: it's the same way we buy all the other stuff. Jill DeWit:                            Yup. Jack Butala:                         Before we get into it, let's take a question posted by one of our members. Landinvestors.com online community. It's free. Jill DeWit:                            OK. I love that he uses this name. It's not his real name, I looked, I know. But shammgod asks, if you go on landinvestors you'll find him here. He asks, "A couple of properties I've researched I've noticed have extremely low assessed values. Sometimes $20, in an area where that's not normal at all. Is this a red flag when that happens, and what would you be looking for? I realize analyzing assessed value is unnecessary, but when it's significantly different from the other properties in the area, I feel like something might be up. Overthinking? Or a good flag to follow?" Jack Butala:                         At this level there's no such thing as overthinking how to analyze data. There's overthinking, like, lots of stuff. But analyzing data, you can't overthink it. And I think that this is a fantastic question. Assessed value, like you said, has nothing to do with the actual value of the property. What you're experiencing when you see, if you have a dataset of like kind properties, in a perfect world, and the assessed values are all over the map, it's purely for this reason: the assessor, or the assessor before him, or 13 assessors ago when the county actually incorporated, made a mistake. They just overlooked that APR and so it got assessed at $20. It might be a property that's designated as a non-profit, so there's no taxes at all. 13 assessors ago a guy may have decided that the two-zero dollar value in that column in the database really meant that it was a non-profit thing. So, they get offers from me, shammgod. When I see that, I disregard it. The only reason that, in order for a property wouldn't get an offer from me when I scrub out data is, number one, it's like a government property, so the owner is not somebody who is going to respond. Like, the City of X, that's the owner. They don't get a letter from me. And the other reason is property use. I'm famous for not sending offers to industrial property. There are people in our group that that's all that they do is send offers to industrial property, and they do great. So those are the two reasons, assessed value is not one of the reasons. I hope that answers the question. Jill DeWit:                            I think it's great. Thank you, Jack. If you have a question or you want to be on the show, reach out to either of us on landinvestors.com Jack Butala:                         Today's topic: How to buy your next house for half price. This is the meat of the show. So think of going to a garage sale or to a jewelry store, even better ... Jill DeWit:                            Better. Now you have my attention. Thank you. Jack Butala:                         And you go to a jewelry store, and you see a diamond ring, and the exact same ring, two of them, side by side, or as close as can be, and one's 10 grand and one's five grand. But they're the same ring. Which one are you going to buy? Jill DeWit:                            Two of the five grands. Jack Butala:                         Two of the five grands? Jill DeWit:                            Ha ha ha ha. Jack Butala:                         So you buy two of the five thousand dollar rings ... Jill DeWit:                            That's right. Jack Butala:                         And sell one of them for ten grand.