Let’s Not Jump the Gun on Your REI Career (CFFL 0268)

Let's Not Jump the Gun on Your REI Career Jack Butala: Let's Not Jump the Gun on Your REI Career. Every Single month we give away a property for free. It's super simple to qualify. Two simple steps. Leave us your feedback for this podcast on iTunes and number two, get the free ebook at landacademy.com, you don't even have to read it. Thanks for listening. Jack Butala: Jack Butala with Jill DeWit. Jill DeWit: Hello. Jack Butala: Welcome to our show today. In this episode Jill and I talk about, let's not jump the gun on your real estate investment career. Great show today, Jill. Before we get into it, let's take a question posted by one of our members on SuccessPlant.com, our free online community. Jill DeWit: Okay. John asked, "Hi everyone. I'm looking for some reassurance or home truths. I seem to be getting a few calls of interest but it's as if people aren't reading my letter. Two people have called with real interest when they ask what I want to offer I tell them it's 500 as it says on the purchase agreement and they abruptly try to end the call saying the offer's a joke, and in one case that she knew the land was worth at least 25 thousand dollars. I've looked at the assessed value of that particular land and it is only 35 hundred dollars. The other call went pretty much the same way with them saying 15 thousand dollars and the assessed value being 2 thousand dollars. I know that assessed value is really only there for tax purposes. Am I missing something or is this just disgruntled land owners think their land is worth far more than it actually is? Thanks. Jack Butala: Jill, you want to answer this? Jill DeWit: It's probably, maybe both. Are you missing something? I'm not so sure. Make sure you are looking at the right comps and you are looking at, not really the assessed value so much, because, yes, that is for tax purposes, but you want to look for the real comparable properties that are available and being offered for sale in that area because there's very often, the assessed value and what they're selling for is drastically, drastically different. Then sometimes I have had those people that they really think that their asset is priceless and I understand that. When they bought it, X was going to happen and this was going to grow and this was going to happen and they may not even be there and they think it's a beautiful, gorgeous thing and it didn't really pan out and they don't know. Sometimes there is some of that going on. Jack Butala: John, thank you for the question and kudos to you man. You got some stuff in the mail. You got some offers in the mail and you're a lot further than a lot of people are, so great work. Pricing properties is a big topic lately. Jill DeWit: Mm-hmm (affirmative), it is. Jack Butala: We talk about it on the weekly call all the time, so in our program, in the Cash Flow From Land program, I talk about how to price property in great detail, but here's the summary: If you're going to buy property in any given area, even out west here where we try to buy it for about a hundred dollars an acre and sell it for 2 or 3 or 400, actually, we don't try, we do it every day. We buy property at about 25 percent of the cheapest posted for sale property, so if lots of properties are posted for 4 grand, you want to try to buy that property for 25 percent of that, 1 thousand. First of all, you only got 2 responses that you've described here, that's actually pretty good. I hope that your mailer was large enough. We don't recommend sending out a mailer that's smaller than 15 hundred units. You don't want to ... A lot of people, their first response is when they send a mailer out is, let's just test it. We'll send a couple hundred letters out and see what happens. Jill DeWit: That's not a good test. You need more than ... More than 2 people call back by the way when you're doing it. Jack Butala: Two hundred will. Jill DeWit: Exactly. It's coming.