How Professional Land Investors Weigh Price vs Attributes (LA 1326) - a podcast by Steven Butala & Jill DeWit

How Professional Land Investors Weigh Price vs Attributes (LA 1326)

Transcript:



Steven Butala:

Steve and Jill here.



Jill DeWit:

Hello.



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 how professional land investors weigh price versus attributes.



Jill DeWit:

Wait, that's us.



Steven Butala:

Oh, professional land investors? Yeah.



Jill DeWit:

That's us.



Steven Butala:

The real question is spoken in just plain English. Deals come in, they have a price and they have attributes. They have a mountain view. They have two sided public paved road access. So how do you weigh that? At what point does a property have no value from a price standpoint where you just say, "You know what? I'm not buying it. I'm not buying it for $100"? Or the other side is at what point do ... It's so expensive, I can't buy it. And that happens more often. The attributes are great, everything passes my test. It's absolutely a property I want to buy, but it's too expensive.



Jill DeWit:

Because they know it and they're not hurting and are not going to sell.



Steven Butala:

You know that scale, that Wall Street scale-



Jill DeWit:

That's it.



Steven Butala:

... where it's like, you put your money on here and the old school, you put a bag of silver or whatever. And then on the other side you put-



Jill DeWit:

Dollars.



Steven Butala:

... like whatever material you were buying, like flour.



Jill DeWit:

There you go.



Steven Butala:

That's what this is.



Jill DeWit:

Diamonds. Mine would be diamonds.



Steven Butala:

Yeah, diamonds is a good one. 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:

Lucas wrote, "Hi everyone. I'm in talks with a seller, working on getting a purchase agreement signed from my first mailer. They have five contiguous parcels, but I only made offers on three. They are interested in selling all five. At this time, I want to buy all five. Can I simply instruct the seller to add the two of the parcels in handwriting to the purchase agreement they already have?"



Steven Butala:

Yes.



Jill DeWit:

"Or do I need to send them a new agreement for these other two parcels?"



Steven Butala:

May I step in here? This is a topic that comes up all the time, and I thought it was obviously worthy to put in the show. You can hand write anything on these PAs and sign it and have it initialed and just send it in, and it's going to be fine.



Jill DeWit:

Exactly. Even if you're going to open escrow, you should be set.



Steven Butala:

Here's what you never want to do. Redo the purchase agreement. It's going to take you a day. Send it in the mail. Now they have all kinds of time to think about it. You don't want to do that. And the people that do this, they aren't new and unrehearsed. It's never that. They just have OCD. They have to have stuff all perfect. And, "Oh my God, there can't be any handwriting on it." And those people aren't going to survive in this business anyway. So don't be one of those people.



Jill DeWit:

Touche. So yeah, we're covering that. Can you add it on there? Yep. Do we need to do a send one? No. Obviously, no. "I think they can add the new information to the existing offer and send it back to me and be done." Awesome. Lucas is already on the right path here.

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