Land Business 201: Where You Should be in 2 years (LA 1330)

Land Business 201: Where You Should be in 2 years (LA 1330) Transcript: Steven Butala: Steven and Hill here. Jill DeWit: Hello. 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 sunny Southern California Steven Butala: Today, jill and I talk about land business 201, where you should be in two years. If you were with us yesterday, it was land business 101, a list of stuff you should do in the beginning. Tomorrow, it'll be 301 and 401 and so forth. So, today, Jill is going to describe to us where we all should be in two years, what should happen between that first deal, we talked about getting to that first deal yesterday, and then from two years from that point, she's going to lead us and tell us exactly how that's supposed to go. Jill DeWit: Great. Steven Butala: I bet you a dollar there won't be a lot of math and budgets in it. It'll just be like, "Well, you should feel this and then do this deal." Jill DeWit: We're going to do it together. All good. 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: David wrote, "In the training videos and equity planner, Steve says to offer 35%. In the video tonight, I thought I heard him say offer 20%, and now I am confused. What do you offer?" Steven Butala: So, I chose to include this question among tons of questions and comments on land investors for a couple of reasons. Number one, what David's referring to is when you go into a county or a zip code, you're going to establish a baseline average price for a property, what properties sell for in that geographic area. So, in a county, it might be a $1,200 an acre, and so we would offer either 20% or 35% of that, and a zip code, same thing. In a zip code, it would be, for a house, $180,000, so we offer a certain percentage of that or a certain dollar amount below that so we can buy it for cheaper and sell it for more. That's my point, number one. I will forever say this statement. There is no percentage. There's no locked-in percentage. This is your business. This is a business that you're going to start, and 20% might be incredibly appropriate in some county on the West coast where they've never seen an offer ever. This country's packed, packed, full of counties where they've never, ever seen anyone... No one's ever sent them an offer ever. The vast majority of the counties in this country are that way. If that's the case... And you can determine very quickly if that's the case or not by what's for sale there. If there's nothing for sale there, they probably never seen an offer. I would go in lower. If for whatever, and I'm not sure why you would ever do this, you're choosing a county like San Bernardino County or Mojave County, Arizona, or Costilla County, Colorado, where nine million people have sent letters because other people out there have said they're secret counties, or for whatever reason, probably 35 to 40% might get you a better response rate. But I'll say this, and here's my big picture point and really why I included this, I say all kinds of stuff. Common sense applies here. Jill DeWit: He also says, "I can't be responsible for what I say." That's one of the things he says. Steven Butala: If you were looking for a hard- Jill DeWit: I have something to add on this, too. Steven Butala: ... you're looking for a hard and fast way to print money out of an ATM machine in your basement, you are in the wrong place. Jill DeWit: I know some people that have sent out offers, say it was 20%, 25%, whatever, and they got a few great properties and they realize what the... They maybe they get into it, and they realize, "Wow, this is a great area. Things are worth more than I thought. I want more properties." I know people that have done, like say 20%, and they've gone back and remailed at 30% because everything t...