Unpacking The Landlord Model: What You Need To Know

https://youtu.be/LcfpDWdL4Ms Ever wondered if the landlord model is the right path to real estate riches? Become a savvy real estate investor! In episode 2080 of The Land Academy Show, Steven Jack Butala and Jill DeWit explore the landlord model, weighing its pros and cons to help you decide if it's the right investment strategy. They analyze real-world case studies, including their own, to reveal the pitfalls and truths of generating passive income through rentals. Discover why single-family homes may not be the cash cows you expect and explore more profitable options like multi-unit buildings and triple net leases. Tune in to learn how to avoid common landlord headaches and maximize your returns in the real estate market. Listen to the podcast here Unpacking The Landlord Model: What You Need To Know This is episode number 2080. As promised, we’ll talk about analyzing the landlord real estate model. It’s probably one of the most popular ways for new people or anyone to make a bunch of real estate. We'll look at a personal case study that Jill and I have and some of our friends’ case studies. Where can you take this if you are organized and have the right personality type to be a landlord? Not many people do. Everybody starts out thinking they're going to be a great landlord but nearly everyone I know hates it.Everybody starts out thinking they will be a great landlord, but nearly everyone hates it.Share on X“I'm going to be twenty-something in college. I'm going to buy the house and rent out all the rooms. It's all going to be easy and great. No one's going to miss a payment. Nothing's going to get broken.”“No one has pets.”“No one's going to have a party.” That's good.Land Pricing StrategiesWe talked about your career choices in real estate. You have a lot of choices. Each day on the show, we answer a question from our Land Academy member Discord forum and take a deep dive into land-related topics by popular request. Jill, let's take a question.Jared wrote, “Pricing question for you, rock stars. It's been noted many times in the past that the general pricing discount guidance of 20% to 30% of retail doesn't hold for particularly large or valuable properties. I know it's not an exact science but at what acreage/retail value would you start moving closer to 50% of retail as has been previously suggested?”Thank you, Jared. We're not picking on you but Jill and I have an internal saying that I'll share with you. All conversations lead to pricing. We don't say it fondly. Here's a big overview. You're going to establish what we call a retail price per acre in a ZIP code, county, or whatever you choose. It might be $1,000 an acre. That's what's listed for sale and that's what's sold. It's a finite, accurate, no opinion, and no emotion figure.If you look at everything that's priced for sale and sold, and you come up with a number like $1,000 an acre, what we have done with a huge amount of consistent success, both Jill and I, and people who take this seriously in Land Academy, has sent out mailers for $200 to $300 an acre. That's 20% to 30% of retail, exactly like you said, with success. For some reason, and I'm not picking on you, that's not enough. We've been doing this for years. That simple explanation of what I said is not enough. Why is it not enough? Why do we perpetually and continually talk about more detail than what I said?There are always new people in the group and they're always learning. We're always changing it. There are always new and better ways to do everything. There are always new tools or perceived tools to make it easier. People are hoping for an easy button and exact science. “I know it's not an exact science but can you give me the percentage?” You negated what you said.You have to feel your way through it, unfortunately. Every market is different. It's silly but true. There's so much that goes into it. You have to look at what's active and what's happening in selling in this area...