No One Finds New Acquisition Markets like You Do (LA 754)

No One Finds New Acquisition Markets like You Do (LA 754) Transcript: Steven Butala:                   Steve and Jill 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 gorgeous South Lake Tahoe. Steven Butala:                   Today, Jill and I talk about no one finds new acquisition markets like you do. This is so important, Jill, because what this show is really about is confidence-building. So, when people are brand-new, it's like, "Oh, I sent this mailer out. It's been out there for two weeks. I wonder if I did it wrong. If I could just ..." or they say something like this. "Oh, great, Steve and Jill have a fantastically-profitable business. Congratulations. I can't do it, because I don't know what a good acquisition market is!" Well, that's a bunch of malarkey. You absolutely know what a great ... and, if you've made it this far, and you're listening to this show, or even if you're a member, you innately know about real estate, and you already know you can make a fortune doing this. So, I bet you a dollar you know what your house is worth, or you know how much land is worth two counties over. You know a lot more than you think. That's my point. So, my point is, nobody can find new acquisition markets like you do, because you're coming to it from a unique set of eyes, and a unique concept; and I love this concept, because it's like releasing the stuff inside of you that you didn't even know was there. Jill DeWit:                            The releasing the stuff inside of you. Steven Butala:                   Oh, my gosh. You're so derogatory! Jill DeWit:                            Wow! I sorry! I know! I'm like, "Wow! I could really ... There's a lot I could do with that that I'm not going to." Steven Butala:                   Wow, let's cut her off there. Jill DeWit:                            Thank you. Steven Butala:                   Before we get into this, let's take a question posted by one of our members on thelandacademy.com online community. It's free. Jill DeWit:                            Reid asks, "Currently, I'm in the process of evaluating 2.25 acre lots-" Steven Butala:                   Quarter-acre lots. Jill DeWit:                            "... in a small, downtown, low-income area of town. I have offered to pay their back taxes of $70 and $300, respectively, to acquire their land. As I look at these properties in-depth, comps that have sold are between $11,000 and $26,000 for approximately 800 square foot San Francisco homes." Okay. Steven Butala:                   Hold on a second. The houses are selling in San Francisco for 26 grand? I'm confused. Go ahead- Jill DeWit:                            Comps? Yeah, I'm curious, too. I wonder what the specific area is. In San Francisco County? I don't even think it's- Steven Butala:                   Maybe San Francisco County. Jill DeWit:                            Is it San Francisco County? Or is that ... I think it's a different county name. Steven Butala:                   Yeah. Jill DeWit:                            "My question is as follows. If the cost per square foot for homes-" Steven Butala:                   Oh, $11,000 for foot? No, no, no. Go ahead, Jill. Jill DeWit:                            That could be. "If the cost per square foot for homes in this area-" Steven Butala:                   Oh, okay. Jill DeWit:                            "... is around $20, am I wasting my time acquiring these properties, even if they are as cheap as $70 a parcel? If I resell the property to a builder, I'm assuming it's near impossible to build a home of this size, and make a profit. If anyone has any insight on a similar situation, I would really appreciate it. Thanks." Steven Butala:                   Okay, so,