Creative Deal Structuring (1521‪)‬ Land Academy Show

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.