How to Buy Land for Less Than its Worth (LA 1184) - a podcast by Steven Butala & Jill DeWit

How to Buy Land for Less Than its Worth (LA 1184)

Transcript: Steven Butala:

Steve and Jill here.

Jill DeWit:

Hello.

Steven Butala:

Welcome to the House Academy Show this time. Entertaining real estate investment talk. I'm Steven Jack Butala.

Jill DeWit:

And I'm Jill Dewitt, broadcasting from sunny Southern California.

Steven Butala:

Today, Jill and I talk about how to buy a house for less than it's worth and then obviously sell it for more.

Jill DeWit:

Isn't that what everybody wants to do?

Steven Butala:

I don't believe that everyone wants to do that, for some reason. I used to believe.

Jill DeWit:

Wait-

Steven Butala:

No, hold on. I used to believe that people were born understanding how to do a real estate deal and the value of it. And after we started House Academy and Land Academy, I don't believe that's the case anymore.

Jill DeWit:

That doesn't mean that they... No, I hear you. We think that they should know how to do that and they don't. We get that, but I would hope that they'd want to. It's funny, everybody wants to go into these transactions and try to get it for the best price they can, the buy side. But then when they want to sell it, they're ruthless and they want to reset the market and say, "I'm going to sell it for X." And they brag about that. It doesn't make any sense. How about-

Steven Butala:

There's all kinds of crazy stuff.

Jill DeWit:

You buy it right and you sell it right and you feel good about it on both ends?

Steven Butala:

How about you establish a consistent and profitable way to buy and sell a specific product type in one or two or three maybe markets and retire young? Instead of trying to be a hero, like you just described.

Jill DeWit:

Oh, what do you mean? Like buying it right and selling it right? Which part's the hero part?

Steven Butala:

Establish a procedure. Like "I typically buy houses for 30% less than what I actually think I can resell it for the next day. I don't want to do a lot of work because I really enjoy sitting in front of computer." And on and on and on, you establish a procedure-

Jill DeWit:

"And I'm going to sell it for 15% less than what it is in its current position." That's what I mean.

Steven Butala:

"I need to net 25,000 bucks."

Jill DeWit:

That's what I mean. Not, "I want to buy it for let's say 20% less and I want to sell it for 20% more." That's what I feel like people walk around doing and that's just no fun.

Steven Butala:

"I need to net 25,000 bucks. This year I want to do 12 of these things once a month, maybe because I have a full time job or some other stuff to do. But yeah, I'm very, very interested in making $200,000, $300,000 on the side."

Jill DeWit:

I understand.

Steven Butala:

"And the next year maybe I do two a month, make half a million bucks and then I'm on my way."

Jill DeWit:

That works for me.

Steven Butala:

So the question is, how do I do that with houses?

Jill DeWit:

We'll talk about that in the show.

Steven Butala:

Before we get into it... We will answer that question, but let's take a question posted by one of our members on thehouseacademy.com online community. It's free.

Jill DeWit:

Billy wrote, "Trying to get my LLC/S Corp going and I'm trying to figure out which in general is the best structure for land investing." I'm assuming we're house investing here. Any recommendations?

Steven Butala:

There's a tremendous amount of helpful feedback from the community on this. So, I'm just going to give you my advice, but if you're at this point in your career, please go on to landinvestors.com and look this up. Look up LLC. Just keyword search it and you'll see this come up. There's probably 10 people that had a lot to say about it...

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