The Science of Flipping - Do More Deals In 2021

Episode Date: January 4, 2021

It's 2021! Are you interested in doing more deals? Here are the things you need to do in order to make it happen.

What is up, everybody? What is up? Welcome back to another episode of the Science of Flipping podcast. I am your host, Justin Colby. And two things. If you have not yet checked out my YouTube channel, make sure to get over and check out my YouTube channel, youtube.com forward slash Justin Colby, I am dropping a video a day. Second thing, if you are not a part of the Science of Flipping Academy on Facebook group, free group, we give away incredible content there. Make sure you join the Science of Flipping Academy Facebook group in Facebook. Now, the question I'm going to pose to you on this is, is 50-50 better than 100% of nothing? Now, obviously, that's a pretty easy answer. But the challenge I am seeing time and time again from wholesalers who are talking about they haven't got a deal done is this. This is one of the key components. If you are a wholesaler and you don't have this system in your business, you need to

start to implement it right now. Today, when you are done with this episode, start to implement this. So first of all, I'm going to make some assumptions. I'm going to make the assumption that you're actively going out and finding properties, that you're actively going out and whether it's marketing, door knocking, cold calling, whatever that may be. Maybe you're using realtors, maybe you're working off the MLS, it doesn't matter. I'm making the assumption you have your own direct to seller property. And when I mean direct-to-seller, that includes the MLS, that includes working with a realtor. You don't have another investor in the middle of it. Now, the interesting thing that happened to me this week and why I'm shooting this

episode as it is, is because I spoke to someone today, or actually it was last week. It wasn't today how things how crazy life is. But he basically called me and said, Hey, I have this deal. I only have one day left on the contract. Would you be willing to find a buyer for me? I can't move it. And I looked at the deal. And there, you know, seemed to make sense. It wasn't a crazy, awesome, unbelievable deal, but it also wasn't terrible either. So I called the individual. I said, hey, great. Tell me the story about this.

One's closed. Why would you only be able to back out? Or why do you have to back out? Or why did you wait this long? Why is no buyers moved on the property? What's the story, right? And long and short of it is, he didn't have a very good buyers list. He did as much as he could. He put it on Facebook. He did his thing

that he was thinking was the best route. And I found him a buyer, but it was one day too late. One day too late between him making four grand and me making four grand. And that was discouraging. And I said to myself, why would he have waited this long? And I know why greed, I want all eight grand. He was going to make eight grand in this deal. He couldn't get it done. He finally says, Justin, can you send this out for me? I say, yes. I send out the email. My buyer confirms one day later and he had to back out of the deal. Now we were able to save the deal and everyone made a very small amount of money, but it got me thinking about this process of why are not more wholesalers, especially newbie wholesalers, leveraging some more veteran experienced wholesalers buyers list? And the answer that I come back time and time again is greed.

They want to sell it themselves and make all of the money. While I totally can appreciate that and understand that you spent your money to find the deal, that you did the work, that you negotiated, I love all that. I do it myself. I'm a huge champion for wholesalers, right? The hurdle I find is some of these newbies have to either back out of the deal, which harms the homeowner. They're no longer providing a value to the homeowner because they're backing out of the deal. Or they're having to take such a big decrease in price because they don't have a great buyers list. But they want to be able to do it all themselves. And I respect it. But I can't tell you how many times I'm doing a deal right now. As a matter of fact, here's another great supporting point to this. I'm doing a deal

right now with a buddy of mine who was in, in Phoenix and he has been doing it for 20 years. I've been doing it for 13. He is selling two lots in Scottsdale for me because my buyers were not willing or able to pull the trigger as fast as I needed them to. And he found a buyer after two days that is able to move forward. I'm still using this strategy today, even though I've done this for 13 years. There are other individuals that may have a buyer I don't have, and I'm okay with that. But when I hear or listen or even deal with, you know, someone who's been in the business for less than a year, or maybe they've been in the business for less than two years, and they're just trying to get stuff done. They want to do it all themselves.

I will always make the argument 50-50 is way better than 100% or nothing. So if we need a split eight grand, split eight grand, recoup your marketing costs and go get another deal. And that's a system that you can replicate over and over and over again many people like oh i love getting the deal but i don't want to deal with selling it so i haven't really worked on my buyers list well that's the key to this business as a wholesaler right so leveraging other individuals who may have more experience you may have a better buyers, while you may not want to do it out of the gate within the first day or two, I would tell you as a system, within the first day or two, you will know if you have a buyer. And if you don't, I would be calling these other more experienced wholesalers who have better buyers list than you and getting these deals done.

You should be making money, recouping your costs, and going and doing more deals. And so this episode was really just to make sure you guys understand, stop being a lone wolf. Stop trying to just do everything yourself. Whether it's pride, whether it's ego, whether maybe you just don't know any better, start to work with other people in your space. And I promise you this, you will make more money. That I do promise. If it's good enough for me to do it after 13 years, I promise you, it will be good enough for you to do the exact same.

Now, it's the end of the year. If you need anything at all, head over to thescienceofflipping.com, thescienceflipping.com. As you heard on my last episode, if you do want a call with me or one of my team members, have a strategy session, see how we can help. There is a form right there on thescienceflipping.com. Feel free to fill that out. It is absolutely free. We're happy to help with you.

Spend some time with you on the phone. Answer your questions. See how we can help. Besides that, guys, go check out the YouTube channel. And I hope you guys are having a great end of 2020. And I look forward to rocking it out every single day with you. Moving into 2021. Peace.