The Science of Flipping - Episode 136: Lowest Deal Cost You Can Get – Real Estate Investing

Episode Date: January 19, 2019

document.addEventListener("DOMContentLoaded", function () { podlovePlayer("#player-5eb5ab2ff3c86", "https://thescienceofflipping.com/wp-json/podlove-web-player/shortcode/post/3012", "https://thescienceofflipping.com/wp-json/podlove-web-player/shortcode/config/default/theme/default"); }); document.addEventListener("DOMContentLoaded", function () { podlovePlayer("#player-5eb5ab2ff3d03", {"title":"Episode 136: Lowest Deal Cost You Can Get - Real Estate Investing","subtitle":null,"summary":null,"duration":"","poster":null,"chapters":"","transcripts":"","audio":[{"url":"https://audio.simplecast.com/2c2b7b54.mp3","mimeType":"audio/mpeg","title":"AUDIO/MPEG","size":0}]}, "https://thescienceofflipping.com/wp-json/podlove-web-player/shortcode/config/default/theme/default"); }); Justin talks about the lowest deal cost you can get. What strategy to use, and what system you should be using to make it easier. Get a Free Coaching Call with TSOF team. CLICK HERE TO FILL THE FORM. JOIN MASTERMIND  — APPLY NOW!!

Welcome to the Science of Flipping podcast. I'm your host, Justin Colby. Yo, yo, what is up? What is up? Welcome back to the Science of Flipping. I am your host, Justin Colby. And I just knocked out an incredible podcast right before this because I just, I'm on one. I've had a ton of coffee today. And so I want to break up some of these messages. I could have just done a really long podcast and guess what? You guys would not have made it through and you would have missed this message. So welcome to the science of flipping. For all you newbies, welcome. We have 140 plus episodes. For all you loyal listeners,

I'm here to give you tactical knowledge. The systems, the tools, the tactics I use in my business for over a decade now, flipping homes, doing deals, and focusing on marketing, driving leads. So, and if you guys want my free book, usually I end with this. If you want my free book, go to the science of flipping.com forward slash free dash book, the science of flipping.com forward slash free dash book,

get the science flipping book for absolutely free. That said, let's jump in right into marketing. The podcast, I believe if we do this right, it'll come out before this one. So if you're listening to this, you've already heard about the shift. If for some reason our podcast episodes get jumbled, then you're going to hear this first. And what it's all about is you got to remain consistent in your marketing, regardless of the economic climate, regardless of the real estate climate. With that said, people are always asking me, how do I lower my lead cost? How do I lower my deal cost? I will promise you this, door knocking is the answer. And the reason why I say that is because 99.9% of other investors

will not go door knocking. And I've actually partnered with an incredible company who will actually assist because they are app on your phone. They're an app on your phone that you can actually not only find out the information about the home, you can upload a picture and immediately from the app, be able to send them a piece of mail. You can skip trace their phone number and you can actually cold call them right then, right there from your phone. I've partnered with this company because they simply work. I don't like to put my name behind other people's stuff, but I'll tell you when I had the opportunity to actually partner with this

company, I did, right? I did. We inked the deal this last week. We sat down at lunch. We developed this partnership. And so, I'll tell you now just so you don't have to overthink it. It is go to the website marketingmentordealmachine.com. Marketingmentordealmachine.com. It is awesome. The reason why I did this is because door knocking simply works. And if you now have the tools to not only just knock on someone's door, but now you have the data in front of you about the home, when they bought it, how much they owe,

and you have the data about the homeowner, and you can call them right then and right there and skip trace them right then and right there, and you can send them a mail piece right then and right there. Now you have a huge hand up. Now here's how I door knock. So for those of you who are like, oh, Justin, I hate door knocking. I got it. You can hire this out, but here's the structure that you want to teach someone and or to yourself. You want to go find 100 to 200 homes that have deferred maintenance. Well, what is deferred maintenance? Deferred maintenance is if the roof shingles are falling off, if it looks like they haven't replaced the roof in 40 years, if the

garden is overgrown, if windows are broken, if there's rusty cars in the driveway, if you look at the home and be like, damn, no one's lived cars in the driveway, if you look at the home and be like, damn, no one's lived there for 15 years, that's deferred maintenance. Even though someone might live there right now, as you're looking at the home, go collect 100 to 200 of those properties. Basically, roughly out of every 200 properties, you should get about 1.5 deals. Those properties, you're going to use this app, take a picture of it, put it into the app. The app will then, like I've mentioned, allow you to skip trace one home at a time, live, real time, right then, right there. You also can send direct mail with the picture of the home as you're standing in front of it to the homeowner, not just the address, but the homeowner's address. Major difference there. That home might be a

rental property. So, if you send it to that address, it may or may not get to the homeowner. The key in what helps in the app is it distinguishes the home or the homeowner's address versus the property address. So, it'll mail it directly to the homeowner's address versus the property address. So, it'll mail it directly to the homeowner's address, which is who you want to talk to. So, again, anywhere from 100 to 200 of these leads, they need to have some sort of factor that it looks like they had deferred maintenance, right? Again, rusted cars in the driveway, overgrown yard, windows cracked, roof falling down, you name it. Make sure to have that app on you. This is something you don't have to change your life for. The reason why this app is so great

is because you're not changing how you're doing business. This is actually part of your day. The consumer like me or you who has this application is not changing their day. You're driving the same routes you always would. If you work and you drive to work every morning and work at night and come home at night from work, take the same routes. Look for homes that have distress, have the application and send them a letter or have the application and call them. Hey, just drove by your house looking to buy a property in the neighborhood, interested to see if you're selling, right? Use one of my phone scripts that I can give you or that you have and call the

seller. So again, guys, I'll tell you time and time again, the market is shifting. It currently right now in Phoenix is shifting. Well, so how do I handle that? Well, I make sure I don't just cancel Christmas on all my marketing strategies, right? PPC is expensive. I have a cold calling team of 12. That's expensive. I have direct mail going out. That's expensive. I have ringless voicemail or I have voicemail drops. That's dropping. So now I need to say, out of all of my strategies, bandit signs, out of all of my strategies, door knocking is one of them. And the reason why is because it keeps my cost per lead and keeps my cost per deal way down.

And if I do have to start penny pinching, if I do have to figure out a way to save money, then I'm going to look at what are the most expensive marketing strategies with the smallest return on investment. So for example, right now, direct mail is a 6X model. Six. So every dollar I put in, I get six out, right? And if I look at that and I say, well, would I want to cut off direct mail or shrink the marketing budget for direct mail? The answer is hell no, right? But if I look at PPC and it's a 3X model, well, I'm making more in direct mail. So maybe I need to shrink my marketing budget for PPC. You know where I don't have to shrink my marketing budget? Door knocking. Door knocking. It's free.

I'm literally driving around. I get there's a cost for gas and I am going and looking for homes that need deferred or have deferred maintenance. I use the application. I call them. I knock on the door. The script is the same. I'm looking to buy home in your area, right? That is the same. And then engage with them. If they are not home and or don't answer the phone from the app, you can send them a piece of mail from the app. You can send them a piece of mail again, marketing mentor, deal machine.com marketing mentor, deal machine.com. Go on there, watch the video. Uh, you know, it's an incredible, incredible app. But I promise as this shift happens, stick to what keeps your lead and deal costs low. Door knocking is one of them. Yes, you do.

I'll tell you right now, probably most people already left this training because they hate door knocking. I'm going to win. I'm going to make the money then because they won't do what I'm willing to do. And if you're scared to do it, you can hire people and find people to do that. And especially if you can give them the app to do it, have them do that and give them a percentage of each deal. It's not rocket science. Just be willing to do what others aren't and you will get what other people aren't. The reason why I'm still here 10 years later, almost 11 now,

is because I've always been able to maneuver, but I've always kept in the front of my mind, it's all about how many leads, how many deals can I get going through my pipeline, right? And door knocking will always remain one. So I appreciate my partnership. The reason why I'm bringing this up is not to just sell you on this. This shit works. I'm a massive advocate of door knocking. I'm bringing this up is not to just sell you on this. This shit works. I'm a massive advocate of door knocking. I'm a massive advocate of making it easier. Yes, knock on the door, but you know, if you're scared, you can call them straight from the app or you can simply send them a piece of mail from the app, but one piece, you don't have to spend,

you don't have to send out thousands, just one, right? Send it to them three times. You can say, I want one piece of mail sent to this homeowner three times on the app. It's amazing. It's helping our team massively. Okay. So, just don't be the person that cancels Christmas through the shift. Stick to marketing. Make sure to include door knocking. Door knocking is huge. And if you have no marketing budget, and this is the first episode, if you're a beginner investor, this is your strategy. You combine that with cold calling, you're going to crush. You're going to crush. So that's it. That's our time for today. That's the episode. Again, the shift is here. This is real. If we did this right, you're seeing this or listening to this after the the most recent podcast which was all about the shift and what to do if you are not currently following me on

social media follow me i give away great content the justin colby both on facebook and instagram under the justin colby watch my youtube videos over to YouTube. Make sure to digest all my stuff and go get my free book, thescienceofflipping.com forward slash free dash book, baby. Giving away a bunch of great stuff. Get the app. It works. Peace.