Where Do I get the Money and Who is Going to Teach Me (LA 1410)

Where Do I get the Money and Who is Going to Teach Me (LA 1410) Transcript: Steven Butala: Steve and Jill here. Jill DeWit: Good day. Steven Butala: Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala... Jill DeWit: And I'm Jill DeWit broadcasting from sunny Southern California. Steven Butala: Today, Jill and I talk about; where do we get the money? And who's going to teach me? Came directly out of Jill's mouth- Jill DeWit: Why? Steven Butala: ... without any editing or without any polish. Jill DeWit: Thanks. Steven Butala: It went like this, "Hey Joe, what should we talk about today?" Well, somebody just asked me, "Where do we get the money? And who's going to teach me?" Jill DeWit: Yeah. There you go. It happens a lot. I see new investors, I alluded to this a little bit yesterday on the show, new investors in multiple forums, all kinds of social media accounts and these are the two big things like, "Do I get lending? Do I get financing? Do I take a loan on my house? Do I run up my credit cards? Do I sell something? Do I sell a child? Whatever it is, where do I get the money to get this started?" I'll talk about this more, but, "Who's going to teach me?" and they just throw it out there like you're just going to say, "Who will teach me?" And there's going to be a flood of mentors. That's the funniest thing too, but we'll talk more. Steven Butala: Before we get into it, let's take a question posted by one of our members on the landinvestors.com online community. It's free. Jill DeWit: Paula says, 'Hi, all. I keep hearing investors say they won't touch a deal unless they see a potential for at least a hundred percent ROI, return on investment. Is there any reasoning to this other than just about maximizing profit within a range that will still accomplish high velocity sales, as in is this strategy directly related to my 1031 exchange in any way? Thanks." Steven Butala: No, it's not related to any 1031 exchange concept in any way. A hundred percent margin or return on investment in ROI, there's no direct association with that at all, but here's where it comes from. Very early on, I wrote a blog, ended up a little piece, a video piece on, "A 24 Month Millionaire." That's what I called it. As with everything, you do 20 of these things and one of them really stands out, well, that one stood out. I've gotten a lot of people over the years have asked me to do it again or talk about it more. So here's a total Cliff's notes version. You buy property for $4000 bucks. You sell it for eight. You buy two for $4000 and eight becomes 16, and 16 becomes 32 and if you do everything wrong under this scenario, you'll have about a million bucks in the bank profit, pure profit. Jill DeWit: Why do you say wrong? Steven Butala: Well, if you do everything wrong because in my- [crosstalk 00:02:57] Jill DeWit: Because you can't do better? Steven Butala: Yeah. No, it's just because it's so easy, I think this kind of stuff. That's what kind of desert property, which we don't talk about that much anymore because it's too easy to on a couple of deals the way Jill does these days to make a million bucks anyway. So at that return on investment, that arbitrary, it's doubling your money is where it comes from. In real estate, that's almost unheard of. Just don't do it. So the reason I included this, Paula, is because there's several people in Land Investors forum that are really, for whatever reason, I think they were bored this holiday season or something and they're just really active in it. Jill DeWit: That's true, by the way. I'm sure, "Hey, what do we usually do?" "We go to the mall." "Can't go there." "Hey, let's go to this outdoor activity." "Can't do that. That's closed too." Let's go to a movie." "Nope." That's why. Steven Butala: What it's become for me and Jill too, I'm sure I can speak for Jill is let's look at two simple deals. I buy a property for $10000. I sell it for $20000.