The Science of Flipping - Episode 100: 100th Episode Of The Science Of Flipping

Episode Date: May 29, 2017

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Welcome to the Science of Flipping Podcast. I'm your host, Justin Colby. What is up? What is up? And welcome back to the Science of Flipping.com. I am your host, Justin Colby. And guys, we made it. We made it. We are at our 100th episode. I'm pumped. I'm absolutely pumped. It has been an amazing ride. And I just want to sit here and take a moment to thank each and every one of you loyal listeners. You have been here for the last almost four years. I've been rocking and rolling here at the scienceofflipping.com, the Science of Flipping podcast. You have made this podcast one of the top-rated podcasts on all of iTunes, not just for business, not just for investing, but of all of iTunes.

So I want to just thank you. Keep giving reviews. Keep giving star ratings. That really helps this podcast. It helps me. It helps Apple understand the value that I'm bringing to you guys. So if you could do me a favor, keep jumping on iTunes, giving me a review, write out a review, give me a five-star rating. Let more and more people know how valuable this podcast has been to you. Each and every week, I try to bring you the hotness, the fire, the systems,

the tools to help you guys get out of your own way, to help you guys implement the systems you need to reach the goals and the life that you want. I just want to take a moment and truly say thank you. I appreciate you all. It has been a hell of a ride, and we are here on the 100th episode. I am so excited for you guys. I'm so excited for the podcast. I think I'm just excited, man. This has been an incredible run. I actually just got off stage this weekend.

I was sharing the stage with my partner, Sean Terry and Kent Clothier, and so many other great people were there. Brett Tanner was there. Jesse Itzler, a billionaire, did our keynote speech. Oh, what an incredible human being Jesse Itzler is. He and I sat down and I'm hoping that I can get him on this show sooner than later. His schedule is crazy, but he said he wants to be there for you guys to make an impact for you guys. So Jesse Itzler, if you don't know who he is, he's the 100 Mile Man.

He is a billionaire. He's a co-owner of the Atlanta Hawks. He started Zico Coconut Water. He started Marquee Jets. I mean, this guy is dynamic. And so coming off a weekend like this, the energy there was unbelievable. Jesse rocked the house. Kent, Sean, myself, Brett,

and so many other great speakers just crushed it, right? And on top of it, we're here at the 100th episode of The Science of Flipping. So again, really appreciate that. Appreciate you guys constantly giving reviews, giving five-star ratings.

I really appreciate you guys. With that said, if this happens to be your first time on the Science of Flipping podcast, first time hearing it, I give you everything I can. I give you the systems, the tools, the secrets, the insight. I bring on expert business owners and investors to give you their secrets. So get over to thescienceflipping.com. I have a book. I sell this book for $14.95 on Amazon every day.

For you listeners, if you're listening to me or maybe you're watching me on YouTube, you can go to YouTube and follow me on YouTube. I do trainings there as well. I will give you my book for free. You'll have to download it. It won't be a hardcover book, but I'll give it to you. It's called The Science of Flipping.

Go to thescienceofflipping.com and just put in your information. I'll email you that book for absolutely free just to be a listener, right? And so I just want to say thank you. For those of you who've been listening and trying to figure out how to be more part of my world, I have opportunities on there if you want to possibly fill out a coaching application or maybe a mastermind application. You guys have been hearing me talk a lot about the boardroom masterminds that Sean and myself and Kent run. If you want to just put yourself in the game and see if this is

going to be a fit for you, just fill out those applications, right? They're there. You'll speak to either myself or someone on my team about whether this is a good fit or not. There's no risk. This is absolutely free, but I keep getting emails over and over again about personally coaching people or how do I become a mastermind. So again, if you're hesitant, if you're questioning it, you miss every shot you don't take, go fill out the application. You'll talk to either myself or a team member of mine and we'll figure out if it's a good fit, right?

Very easy. But I give you so much on that site. Just go to thescienceflipping.com, play around, take a look. Super awesome. With that said, guys, I actually want to get into what I'm teaching today, right? As I mentioned to you, I want to always give everything I got to you guys. And there's been this strategy that I simply have not been talking a lot about because, um, I don't know why. And, and I think kind of when I started about eight years ago, doing this strategy is something that I talked about early on in my

podcast and it's time to bring it back up. I've really been talking about wholesaling and lead generation and all that kind of great stuff. But there is a strategy out there that I actually, I don't know if I created it necessarily. I don't know if I even termed it, but I think I did by the way. And it's called whole tailing, whole tailing, not wholesaling, whole tailing. And it's kind of the cousin of wholesaling and rehabbing. You kind of mesh the two. And so the last couple of weeks I've been giving live trainings to people. I call it the 50K code. And it is all about how to wholetail. How do you find the deals? How do you double, triple, quadruple the profit margins without having to rehab it, without having to get contractors involved? How do you do more deals

with less competition? And I'm telling you, it's all about wholetailing, being able to find the deals, being able to find the private money, being able to find people to lend you money to make it make sense, and be able to sell it right there on the MLS to a bigger buyer's pool. So I've been doing these live trainings,

and again, if you want to get on a live training, go to the science of flipping.com, simply download my book and I will make sure to email you the next live training I'm going to be giving again, just go to the science of living.com, download my free book. It's free. And then because of that, I will shoot you an email letting you know when the next live training is all about how to wholetail properties. But if you are here, then I want to talk a little bit more about it, right? So what is wholetailing, right? So wholesaling is something pretty common, right?

You've heard me talk about it. Maybe you listen to other podcasts that talk about wholesaling, but the idea there is you are marketing, direct mail marketing, bandit sign marketing, pay-per-click marketing to find more for sale by owners, right? Where sellers are giving you a call saying, I want to sell my home. Can you buy it? You contract it with a seller. You then find a buyer, right? And you basically assign that contract over to that buyer, or you do what's called the double close and you close your A to B transaction and then you have your buyer close the B to C transaction. That is wholesaling, right? And then you're in the middle and you collect a fee. Rehabbing, which most of you guys know, you guys watch the TV shows or maybe you're a rehabber yourself. You are doing the same thing, finding

the deal direct to the seller, but instead of just wholesaling it, you actually buy it and then you rehab it, put a lot of value into it, spend a lot more money, and then you put it on the market to sell to a end user typically, right? You're usually selling it to an end user. So this wholetailing goes right in between those. Again, your lead generation, very, very similar. However, because you're wholetailing it, you actually are going to weed out a lot of your competition because they can't take it down. They don't actually have the money to take it down.

So they actually have to figure out a way to build in enough profit. Well, you now actually can take it down because this market is on absolute fire. You can ask more for the property because you're going to end up putting it on the MLS. And what gets done when you put it on the MLS? In Phoenix, we have roughly 30,000, 40,000 realtors that have access to the MLS. So what do realtors have? Well, they have buyers, just like I have buyers for my wholesale business. They have buyers for the retail business. So now I'm putting this property,

I marketed, right, to the seller. The seller and I negotiate. I contract the property to buy. I buy it. I take it down, and I don't rehab it. I do not rehab it. I might clean it out, but that's it, right? Maybe I do a little paint and carpet.

Maybe, if need be. But all I'm doing is putting it on the MLS. I'm not doing a $20,000, $30,000, $40,000 rehab. I'm simply putting it on the MLS with my agent. I am not licensed, right? With my agent who charges me a flat fee, just a flat fee to do this. And now I have 40,000 realtors who have access to the MLS. Now they're seeing my property, right? Now my buyers list has expanded so big, right? I

couldn't even multiply it. I couldn't even give you a multiplier because at the end of the day, let's just say 40,000 agents all have five buyers. So all of a sudden you have 200,000 eyes potentially being able to look at your property. My wholesale list I think has 20,000. Now I have 200,000 and I'm guessing, I'm averaging, right? So I mean, that's 10 times the buyers list 10 times well here's the deal most people their main hesitation is raising the private money how do I do it what do I say

what's going on well at the end of the day here's what I'll tell you I've been able to raise millions and millions and millions of dollars with private money. And typically it comes from your sphere of influence. It comes from people around you already. Your friends, your family, your business partners, colleagues. Typically that's who ends up lending you your money. And it might be 10 grand. It might be 100 grand. It might be a million dollars.

But that's how it is. Now the secret is being able to be reliable, to be able to be trustworthy. I have a complete template on what I present a private lender to show them I know what I'm doing. For those of you who are just getting started, that template works the same. So instead of deals that you've done that you put in that template, you actually put deals that you could have done if you had the money to do them. That's what the template is based around, right?

So for those of you who are just getting started, this template is gold, right? And in fact, I've used Find Private Lenders Now, my business partner Kent Clothier's software, to find more lenders. In fact, I sent out 500 direct mail pieces a couple years ago. I got a 4% callback ratio, by the way, which is mind-blowing because no one gets that type of callback ratio anymore,

but you do with this. And out of that, I raised well over $8 million, right? With two different lenders, well over $8 million. I sent out 500 letters. I got a 4% callback ratio, eight million dollars right with two different lenders well over eight million dollars i sent out 500 letters i got a four percent callback ratio and i ended up getting uh well over eight million dollars out of two different lenders so between my sphere of influence people that i can show that trust me that believe in me and a cold market people who don't know me but they understand lending right because find private lenders now is all about, um, people who are actively lending on real estate now.

Um, and so they understand it. I don't have to teach them a whole lot, uh, between those two, I raised well over $8 million. So what I will tell you for those of you who are rehabbers, you have to be wholetailing period. You've already raised the money. You know how to rehab. You know how to analyze the market. You need to be wholetailing. This is a huge tool in your tool belt. You have less headaches. You don't have to deal with contractors. You don't have to deal with the city. You have to be doing this, right? For those of you who are actively wholesaling, wouldn't you like to make two times, three times, four X your profits? I mean, at the end of the day, I love wholesaling. Wholesaling and rehabbing are brilliant. I love them both. I've done them both my entire career. But this niche is a niche that is seldom talked

about. I've been doing it since 2010. If you listen to my previous podcast, if you start back from the beginning, you'll hear me talk about it. Well, now I'm going to talk about it a lot because we just bought a deal last week that I was going to make $35,000 wholesaling. I'm going to make roughly $145,000 wholetailing it. I'm not rehabbing it. I'm not doing anything special. I'm just buying it and putting it on the MLS because I know I can get that value. That's a 3X model, almost a 4X model. It's a 3X model, right? I mean, if you're

wholesaling, you need to implement this. It's not every deal. You're not going out there and wholetailing every deal, but you take a chunk of deals, right? So if you're actively wholesaling, let's say you're doing four deals a month, maybe you take one or two of those deals and wholetail them, right? If the numbers make sense. If you could double or triple or quadruple your income on that same deal, why wouldn't you, right? And if you're just getting started, you need to be able to understand that you have multiple exit strategies. If you put all your eggs in one basket, you're just cutting yourself short, right? Like if you play the stock market, you don't put all your money into one stock, most likely, nor do you put all your money just into the stock market, right? You diversify. This gives us investors, even if you're just starting an opportunity to diversify from where

you're currently at, right? What you're currently doing. If you just wholesale or just rehab, you're stuck in one boat. This gives you that opportunity. So this is, I'm literally talking to everybody. If you're just getting started, if you're wholesaling, if you're rehabbing, this is for everybody, right? And so I'm the 50 K code is what I call it. I'm doing live web classes about it. Again, if you haven't been on one of my live trainings, get on them, right? Go to the 50 K code or go to the science of, here's the best way.

Go to the science of flipping.com and just download my book. I will start emailing you when I'm giving these live trainings so you can learn it. I'm giving away all my stuff, my spreadsheets, my direct mail pieces. I'm giving you it all. The private lender packet. So at the end of the day, guys, I'm just really excited because someone finally got to me and basically said, you need to teach this more. And there's a lot of people I teach in our masterminds about this that are making a killing. And they just said, you have to put it out there. So I'm excited to talk to you about it more, guys. The key to this whole thing, everyone's hesitation with wholetailing is the private money.

I can teach you how to raise private money. In fact, I sat down with my good friend and partner, Greg Herlene, who I'm actually going to have on the show. He's a master at raising money from self-directed 401ks, Roth IRAs, and investment tools that people don't even understand how to utilize. And he is a master at it, right? And so I'm going to have him on a podcast here very soon to keep teaching you guys how to raise this money. Do not be worried about raising the money. It is actually, I don't want to say easier, but it's easier than what you think it really is. And it's because people want to get into the real estate investing world. People understand that real estate is a secure investment for the most

part. And so I want everyone on here, I'm going to talk a lot about this because people are just asking for it at this point. That's why I'm going to start talking a lot more about it and every component about it here on the podcast, because it's an incredible tool to make more and more income. And if you're already in the business, it's an incredible tool to be able to get quick checks and bigger profits without the hassles, right? So, dude, we're on the 100th episode and I'm gonna start rocking your world talking to you about Hado Hotel. I'm actually leaving here right now.

We're gonna go shoot video on the property I closed last week. I want you guys to see the video. I'll be putting it up on YouTube. If you're not following me on YouTube, Justin Colby, the Justin Colby, I'm out there. Go look me up. Subscribe to my YouTube channel. I'm going to start putting those videos out there. Guys, I'm going to keep giving you content. That's why I produce this podcast. That's why I have the YouTube channel. I'm just going to keep delivering

over and over and over again. Go to YouTube, subscribe, get to know when I'm putting out videos. Keep listening. I just want to say thank you again from the bottom of my heart I've been doing this now for four years and I keep on giving you more information more tools more secrets thank you again we made it we're at the hundredth episode get to the science of flipping.com put in your information if you want to talk to me or my team about possibly coaching or the masterminds and just see if it's a good fit, go there, fill out an application. But for now, guys, I'm signing off. Happy 100th episode.

We made it. We made it, right? All right. We'll see you next week. Peace.