How to Create Equity from Real Estate Acquisition (CFFL 430)

How to Create Equity from Real Estate Acquisition (CFFL 430) Jack Butala:                       Jack Butala, Jill DeWitt. Jill DeWitt:                         Hi. Jack Butala:                       Welcome to our show today. In this episode Jill coughs on the air [laughter 00:00:06]. In this episode, Jill and I talk about how to create equity from a real estate acquisition. This is near and dear to my heart, and it's Friday and I cannot, honestly, cannot wait to talk about this. Jill DeWitt:                         Oh good. I'm so sorry, I didn't mean to cough in everybody's ears. Jack Butala:                       Before we get into it, lets take a question posted by one of our members on the Landinvestors.com online community, it's free. Jill DeWitt:                         Okay, Kevin ask, "I'm looking for a title company that will issue me just the title policy without having to pay escrow. I called First American Title, Chicago Title and a few others, but they all say the same thing. They tell me that in California they will only do title if escrow is involved. The property is in San Bernardino, California. Thanks in advance for the help." Well, one of our members has already chimed in, it's kind of a comment. Nat said, "Good luck, let me know if you find one. I've never heard of one that doesn't include escrow." I hear that. Jack Butala:                       So it turn out, and I agree with that too. So, we're gonna solve it, like we solve everything. We put together a website called, Titlemind.com. And it you go to that website, you will see when the launch date is. It hasn't been launched yet. But there's a count down to the website launch and, long story short, you type in the address of the state/county and APN. You put it in, just like you'd put something into Google, and somebody closes your deal and it way, way cheaper than going to First American or anything else. We have cut a deal with the National Title Company, this is the future. Jill DeWitt:                         Just going to get Title Policies. Jack Butala:                       Well you can choose ... Jill DeWitt:                         You can do both. Jack Butala:                       You can choose just to get a Title Policy, just to satisfy your own mind. You can choose to full-blown escrow with it or you can choose just escrow and no title. It's pretty cool. I wish I had this when I started. Jill DeWitt:                         Oh, I know. Jack Butala:                       Now, I'm tellin ya. How much money have we probably wasted on retail value Title Policies. Jill DeWitt:                         Exactly. Jack Butala:                       How many trees died? Jill DeWitt:                         Right. Oh my gosh. Jack Butala:                       Do you have a question or do you want to be on the show, reach out to either one of us on landinvestors.com. Today's topic, How to create equity from real estate acquisitions. Okay, I'll just have to say how much I love this. Jill DeWitt:                         Good. Jack Butala:                       So it use be that you would create equity by developing real estate. So, you'd take a piece of land, you'd put a shopping mall on top of it, and you'd lease the thing out to a bunch of retail outlets, and bang. Now you've created equity because the raw value of the land itself and the building cost, let's say just for fun, 10 million bucks. Now you have a revenue stream and the capitalization rate yields 20 million, lets say. Jill DeWitt:                         Right. Jack Butala:                       And you sell it. Jill DeWitt:                         Right. Jack Butala:                       That's the whole game. That's what real estate developers do. They develop it, lease it up and sell it on a cap rate. They've created , in that example, 10 million dollars worth of equity. I give you this for thought.