How to Use Private Money to Get Started in Real Estate (LA 1469)

How to Use Private Money to Get Started in Real Estate (LA 1469) Transcript: Steven Butala: Steve and Jill here. Jill DeWit: Hi. Steven Butala: Welcome to the Land Academy show, entertaining land investment talk. I'm Steven Jack Butala. Jill DeWit: And I'm Jill Dewitt broadcasting from sweet Scottsdale, Arizona. Steven Butala: Today, Jill and I talk about how to use private money to get started in real estate. Jill just sat down. This is what happens. I do all the work, hours of work and Jill sits down at one minute till the time we're supposed to record and she says, "Okay, what's the topic? And how do I look?" And I say, this is the topic and you look great. And she gives me an opinion on the topic. And she happened to like this one. It's a 50/50 shot. Jill DeWit: That's kind of funny. Steven Butala: What were just doing before you got on the show? Jill DeWit: Oh, so I was on clubhouse. I jumped into this clubhouse group. It was real estate, just kind of like a real estate one-on-one and there were people in there. Everybody's trying to find houses to like rehab and rent them out. They're trying to buy them, rent them out. By the way, they're talking about some markets like Columbus I want to say and Indianapolis and these stupid places. It's so nuts. You can buy a house for like $40,000 and rent them out for a thousand. Steven Butala: That's what my sister does in Cadillac, Michigan. Jill DeWit: It's brilliant. They're figuring out these good areas, but where they're falling down is how to buy the asset. So that's where I chimed in and let them know how to get the data and what to do. So one guy said direct mail and you better believe I jumped all over that one. Steven Butala: Yeah. I think that rental model is compelling. If you can get a good management company and you can buy a lot all at once, it's still a lot of work. In the end, I would never pull the trigger on it just because land is our thing, but my sister's got 30 or 40, 45 doors she said the last time I talked to her in Cadillac, Michigan because her husband, this is what he does full time. Jill DeWit: He's kind of the management company. Steven Butala: He is the management company and he has patience. So I don't have any patience for that. Jill DeWit: Yes. No, we do not. What do you have patience for babe? Steven Butala: Land acquisitions and resales and teaching. Jill DeWit: Even then it better go quickly. Steven Butala: That's true. 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. And if you're with us already in the Land Academy community, please join us on Discord. It's gets bigger every day and I'm getting a lot out of it for sure and I know just based on the volume that our members are really... it's a new tool for us. It doesn't cost anything. It doesn't cost us anything and it doesn't cost our members anything and it's a great way to stay in constant contact with all of us. Jill DeWit: Cool. Johanns wrote, "I've done some research about closing costs, but most resources I've found are related to buying house using a mortgage and not buying vacant land without a mortgage. So what are your typical closing costs on the buy and sell side provided that A, use a title agency when both buying and selling the property B, use an agent to sell the property. Let's say you buy a property for 30,000 and sell it for 70. My questions are, what would be your average title agency fees when buying property for 30,000? What other closing costs are there? What would be your overall expenses when buying? How much does an agency typically charge? What would be the title agency fees and other fees on the sell side? Who has to typically carry the title agency fees on the sell side? I understand that it's negotiable, but what is standard? Who typically has to carry the agent's fees?" We're getting a little too brainy here, but I'll answer them. Steven Butala: Well,