With Mark away this week, Scott Todd takes the reins and leads the team into a discussion about their most recent deals. in this week’s Round Table.
Joining Scott are:
- Mike Zaino
- Erik Peterson
- Tate Litchfield
With an equal number of Mac vs. Surface users on the call, listen in as team MacSurf shares all the details surrounding their most recent deals including the returns and terms. In short:
- Erik had a 2-for-2 DOTW
- Mike sold one on terms that wasn’t too shabby and one acquisition that leaves Scott & Tate in a bidding war
- Tate went against all rules & guidelines and agreed to collect the doc fee over time
- Scott shares a case of John Doe and a land swap
This leads into a discussion on the shame of cash deals and breaking the rules… and by discussion we mean more along the lines of a razzing. But, in all seriousness, the points made shows how much flexibility we have in this business.
Flexibility on how you want to run your business. Flexibility to meet your customers needs. As Scott points out, it’s not like houses, you can’t swap out a house if your buyer decides he no longer wants that one.
Also, this week, we’re going to change up the tip of the week, mostly since there was no tip of the week! So, here are the Rules & Guidelines of Land Investing in the words of #TeamLandGeek.
Scott—With all of these kinds of rules or guidelines, that’s just all that they are. They are rules, they are guidelines, they’re not laws. And what’s cool is that we all have the flexibility to be ourselves, to be human.
Tate—At first you want to keep it as safe as possible. You don’t want to waste your time, you don’t want to waste your resources, so stick to the proven path. But ultimately, you’ve got to be flexible, we’re not banks, we’re not big corporations. We’re mom-and-pop land investors we’re working with people who want to work with mom-and-pop organizations. So be that land seller.
Mike—When someone is new to the business we don’t want them to get tripped up. If you’ve been doing the business long enough, you get a sense for who you’re dealing with, you get a sense for what’s going on. But the general rule that we create is to keep people safe from getting all the docs done and then the buyer doesn’t pay a dime. So, yes, as you become seasoned in this business you begin to recognize the ways that you can do deals that work. But in the beginning it is a safe rule to have as a guideline to keep you protected from putting yourself into a bad spot.
Erik: I am yet to break the rule over not accepting electronic payment for terms. In other words, the only way I do a deal is if I have ACH or credit card payment for the terms deal.
And, back to the razzing, the guys point out how strange it is that Mark & Scott Bossman are both away on a “trip” this week. It will be interesting to see how this all plays out next week…