Setup a Release or Take Down Multi Unit Deals (CFFL 332)

Setup a Release or Take Down Multi Unit Deals Jack Butala: Setup a Release or Take Down Multi Unit Deals. Leave us your feedback for this podcast on iTunes and 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 how to set up a release or sometimes it's called a take down on multi-unit deals. One of my favorite types of most profitable deals to do in our business. Before we get into it, let's take a question posted by one of our members on LandAcademy.com, our online community. It's free. Jill DeWit: Cool. David asks, what is a patented claim title? Is this a homestead title? Is there any value to it when I resell it? I have a big parcel under contract to buy that has a patent deed. It's been in this guy's family since it was homesteaded in 1900. This is amazing, how many times this comes up. I talk to these people and they're like, well I've owned it since ... My family's owned it since 1930 something. I'm like, wow. You can go back and do your title work, you're doing your due diligence and you can pull it up and go, "Yep, he's right." It's really cool. Jack Butala: I have to be incredibly honest here, I had to look this up because I really didn't know this strict definition. I've only seen it a few times too. It's from a land grant. He's exactly right. I believe that the source of it is that he's the first person to actually buy it from the family who homesteaded it. I can read the legal definition but I think really what he's asking me is should I be concerned about this? Is it okay to buy it? If it's a large deal, and I'm sure it is because land grants and patents ... When property got homesteaded, I did a whole blog on this actually quite some time ago, when property got homesteaded it was either given to or it was deeded in exchange for money, very small amount, like 5 cents an acre, or in exchange for the promise that you're going to actually work the land, be a farmer. They didn't land grant or homestead 5 acres. They land granted or homesteaded thousands and thousands of acres or 640 acres or whatever, so chances are this is a pretty large deal. You should be going through title. What's our rule? Jill DeWit: Five thousand bucks. Jack Butala: If you're buying a property for more than 5000 dollars you should generally go through title. I brought this up on a recent membership call we had recently and they said, it's too expensive. I can't afford the 800 bucks and there's not enough spread to make any money. My answer immediately is, that's silly because if you're buying it the way that we all do in our group at 20 to 40 percent of wholesale value, there's totally that much room in it, and title insurance makes it more marketable. My answer straight up here, David, is yes, that patented claim is homesteaded from the research that I did and I really highly suggest, almost demand, that you would go through title on it. It's a good situation to be in. I'm not sure I ever purchased a property from the original homestead entity. Jill DeWit: I don't think I have either. Just that they've had it for years. I'm just thinking from a title agent perspective, they're probably familiar with these and I would think this would be like what we're thinking is like gold. There's not much research to do, you know what I mean? It's not like it's changed hands 20 times. It only changed hands twice. Jack Butala: This is the most insurable situation there probably is. You're buying it from the original owner. It's like buying a car from the original owner. Like a classic car though, like a Model T from the 1910s or 20s. Jill DeWit: Right. Jack Butala: Sweet. Jill DeWit: Yeah, I think that's awesome. Jack Butala: I'm going to reach out to him. I want to see how this goes. This is the ...