See a Real Estate Deal for What it is (JJ 629)

See a Real Estate Deal for What it is Transcript:  Jack Butala:                         Jack and Jill here. Jill DeWitt:                          Hi. Jack Butala:                         Welcome to the Jack and Jill Show, entertaining real estate investment advice. I'm Jack Butala. Jill DeWitt:                          And I'm Jill DeWitt, broadcasting from sunny southern California. Jack Butala:                         Today, Jill and I talk about how to see a real estate deal for exactly what it is and nothing more, nothing less. Jill DeWitt:                          I've got to say, I'm really happy to be back in sunny southern California. Jack Butala:                         I have to say that too, Jill. Jill DeWitt:                          It was fun being up north. I love San Francisco and I loved spending some time in Monterey. I thought that was so- Jack Butala:                         Monterey, the redwood forest. Jill DeWitt:                          Pretty. And it was very interesting seeing some of the fire stuff on the way south. I was blown away by some of what we saw. Jack Butala:                         Every time I come back, specifically this time of year, in early January, I just love getting back to work. And that's no joke. Jill DeWitt:                          Yeah, I don't. Jack Butala:                         I always feel like it's like three days too long. Like, "Come on. Can this end already." Jill DeWitt:                          Hilarious. Jack Butala:                         And you want to stretch it out. Jill DeWitt:                          I do. That's just so funny. Jack, I love you, but you're like, "Thank goodness the holidays," that's not how you say it, but, "Thank goodness the holidays are over." And I'm like, "Oh man. Can we back it up and do that again?" Jack Butala:                         I know. Jill DeWitt:                          I know. Jack Butala:                         I want to know everybody's back at work, all our staff's here. Jill DeWitt:                          I know. Jack Butala:                         I want to see the numbers again. Jill DeWitt:                          Well, I'm not. So I couldn't tell ya. Jack Butala:                         I know you're not. Jill DeWitt:                          Yeah. Jack Butala:                         I'm sorry. Do you ever go to work? Jill DeWitt:                          I'm mentally ... You know, about February 1st, I will let you know. Jack Butala:                         Oh my gosh. Jill DeWitt:                          Oh yes. Jack Butala:                         Before we could actually get into this with what we're talking about on this show, let's take a question posted by one of our members on the JackJill.com online community. It's free. Jill DeWitt:                          Okay. Matt asks, "Hi everyone. After a successful first year trying out the land investing business, I'm hoping to scale up. Jack often says that the most experienced members of the group have scaled up from the $1000 profit properties to $10,000 profit properties or higher." Jack Butala:                         Or 40. Jill DeWitt:                          Right. "I would like to sell my properties for cash, and so I'd like to find the balance between time on the market and profit per deal. Has anyone experienced what the tipping price point might be for cash buyers?" Jack Butala:                         I have a lot to say about this at the end of the question. Jill DeWitt:                          Right. "Obviously fewer and fewer people can buy for cash the higher up you go. I'd like to hear from people's experiences where that might fall off." This is a really good question. "I made these numbers up, but for example, $5000 selling price for a $10,000 market value, property flies off the shelves. $10,000 for a $20,