Remove All Risk in Your REI Career Sell Before Buy (CFFL 0242)

Remove All Risk in Your REI Career Sell Before Buy Jack Butala: Remove All Risk in Your REI Career Sell Before Buy. 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. In this episode, Jill and I talk about removing all the risk in your REI career. How do you do that? Well, you sell the property before you buy it, before you take the risk. Great show today, Jill. Let's take a question posted by one of our members on SuccessPlant.com, our free online community. Jill DeWit: Okay. Martin asked, "Is this a deal breaker? Uncle has a homestead and there was a cabin/shed. In Data to Doorstep, it's listed as having a frame/furnished, but in the county data, it's listed as having no value for the improvements. Thoughts?" Jack? Jack Butala: Well, heck no it's not a deal breaker. I'm not understanding the homestead piece, but I guess his uncle homesteaded it. I don't know if it's homestead proper noun, capital H. Sometimes people use homestead as like ... Jill DeWit: Good question. I copied it as it was. Jack Butala: Yeah, no, I'm glad. Sometimes people use homestead as a way to describe a type of piece of property like a plantation. I have a homestead in New Mexico, meaning a 40 acre or 1,200 acre something spread and there's a house on it. You can see it. You can picture it in your mind. You can picture a plantation in the South. The technical definition of homesteading, which is actually a verb, not a noun, or it could be a noun, I guess it's both. When the federal government ran its programs during the 1800s to generate property tax, long story short, they gave away property or sold it for literally like five cents an acre by the 40 acre properties so that people could live and sustain and sell crops and stuff. They could start a tax base to collect tax revenue and build infrastructure and roads and stuff. Wow, how's that for boring? Jill DeWit: I'm waiting. Just kidding. Now make me think of something cool. Go ahead. Jack Butala: I doubt that this guy's uncle, because he's alive, homesteaded property. I guess what he's asking is, you know, is it listed ... What we teach is don't send mailers out ... If you're going to buy land, don't send an offer to somebody who's got any value, any improved value scenario because you want to buy vacant property. If it's got improvements on it, like houses and stuff, it's just a different animal and there's an appropriate time to do that, but you usually don't get property for rock bottom prices like we like. I think that answers the question. Jill DeWit: I have a question, because it says in this one ... I'm curious too, Jack, because this could happen. We've had this happen where we send a mailer out and it doesn't have any improvements and I look on the map and there's something there. What do you think about that? Jack Butala: Well, what I think about that is they probably never pulled any permits. They probably ... Especially because a lot of this property, almost all of it, is really rural, they just put some stuff up. The county never knew about it. They never asked for permission. Maybe you don't. Maybe the rules are, in that county, you don't have to. It never hit the assessor's desk and it never got reassessed. Property gets reassessed usually because of two events. One is because it gets sold, or two because you pull a permit to put some improvements on it and then it triggers the assessor to say, "Oh, it might be worth more." That's what's happening. If it's got zero value in the column and you send a mailer out, I wouldn't worry. I mean it's just kind of like finding a thousand bucks in your suit from a year ago.