Creative Deal Structuring (1521) - a podcast by Steven Butala & Jill DeWit

Creative Deal Structuring (1521)
Transcript:Jack Butala:
Steve and Jill here.Jill:
Hello.Jack Butala:
Welcome to the Land Academy Show, entertaining land investment talk. I'm Steven Jack Butala.

Jill:And I'm Jill DeWitt coming to you from the job site in Paradise Valley, Arizona.

Jack Butala:If you're watching this, not listening to us, we're starting to take delivery on all kinds of stuff that's happening to this rehab house that we're in.

Jill:Yes, you're going to be watching mounds of Hickory, real wood flooring show up over my shoulder here in just a minute.

Jack Butala:Today, Jill and I talk about creative deal structuring. One of my favorite topics. Before we get into it, though, let's take a question posted by one of our members on the landinvestors.com online community it's free. And if you're already a Land Academy member, join us on Discord.

Jill:Anne Marie wrote, general newbie question here."I've been a member now for about seven weeks and I've spent many hours studying Land Academy, Land Investors, Discord, et cetera. I love hearing get the mail out from Steve and Jill. I've chosen my counties and have scraped the data of for sale and sold properties on Land&Farm, Zillow and Redfin. Is it naive of me to think I can get ahold of a good price per acre."Jack Butala:
Price per acre.Jill:
Familiar with that code. Thank you very much, sir.Jack Butala:
How are you familiar with that though?Jill:
That's awesome.

Jack Butala:BFF.

Jill:Are you familiar with some of the hand gestures I'm about to hold up?

Jack Butala:Pretty familiar with OMG.

Jill:Pretty sure. Yeah. All right. Are you familiar with BTW?

Jack Butala:By the way?

Jill:Oh, you are. Good, good. Wasn't sure.

Jack Butala:Gosh. [crosstalk 00:01:49].Jill:
Oh, my gosh. Anyway,"Is it naive of me to think I can get a good price breaker comp to price my first mailer? I've averaged out the price breaker on all three platforms and have a good average. Is it unreasonable to price it for 20% of the average value? Please confirm it is better to be under than overpriced."Oh, heck yeah.

Jill:Unlike our... What's that?

Jack Butala:I don't know.

Jill:I don't know What that is.

Jack Butala:Unlike our choices where.

Jill:Overdressed is better than underdressed. Got it."I know the market very well. People are flocking towards these areas. There are few more properties sold than compared to list it."Jill:
This is all great stuff.Jill:"I'm not sure how to check the wholesale for wholesale competition, but my state is X. I don't see a lot of the Thursday will you do this deals properties in this area? I'd love to know how to check that though, and I'd be more comfortable in negotiating up."Jill:
Okay. Can we tackle these a little bit at a time?Jack Butala:
You please answer all the questions you want. I'm going to answer the question about,"Is it reasonable?"Jill:
Well, good.Jack Butala:"At 40%"Jill:
You start with that one. I'll do the other stuff.

Jack Butala:Is it unreasonable to price it for 20% of this average value question mark. There is no way, this question comes up all the time. The question is this,"I have a great price per acre. It's $1,500. I'm real confident in my data that in this zip code for properties that are between one and five acres, they've been listed and sold for an average of $1,500."Jack Butala:
So it's real easy to get to that point. If you're new, it's time consuming, but it's not that hard. Then the question becomes,"How should I price my mailer? Should I price it at 20% of $1,500 an acre? 35%, 40%, 50% am I going to ruin my mailer at 20%? Am I going to ruin my mailer at 70%?"These are the questions that go through a new person's head, rightfully so. So they seek out an answer. I'm not saying anything negative against Ann-Marie here at all. I'm just using this as an example, because this is probably 50% of the new people that gets to the point where the sending a mailer out,...

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