The Science of Flipping - Episode 149: Need more deals? Real Estate Tips

Episode Date: August 23, 2019

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Welcome to the Science of Flipping podcast. I'm your host, Justin Colby. Yo, yo, welcome back to another episode of the science of flipping. And if this is your first time hearing my podcast on iTunes, or maybe you're watching this on YouTube or see it somewhere on social media, Facebook, Instagram, wherever, understand I am here to give you the systems, the tools, the metrics, the KPIs, the strategies to create a business that you want to create. Not all real estate businesses are the same. Some people wholesale, some people rehab, some people buy and hold, some people do all three. Some people buy notes. So this is not only just myself, but other entrepreneurs, real estate investors, business owners that have been incredibly successful. So if this is the first

time you have reached this podcast, make sure to go to my social media. You will find a ton of stuff there. Go to the Justin Colby on Instagram, the Justin Colby on Facebook and the, or I'm sorry, and Justin Colby VP on YouTube, because I give away a ton of content and including live coaching calls that I want to give to you guys. But you have to be a part of my Science of Flipping Academy closed group. If you want to get on live with me in a closed group, make sure you go and request to join the Science of Flipping Academy. I have to approve you. There's obviously guidelines and rules in terms of, you know, we want the right people in the group, but I give away a ton of free gifts. I give away tickets to big events. You name it,

that's where you want to be. The Science of Flipping Academy. Go suggest it. Send me a message on social media. Go try to join it. Obviously, it's closed, so we have to approve you, but get over to Facebook under the Science of Flipping Academy. And today's Sunday, guys, and the reason why I wanted to shoot this podcast today is because a couple things. I had a coaching call with a private client of mine, and one of the things that I really was adamant about was his level of making offers. And it's unbelievable to me that whether you're just a rookie getting into the game, or maybe you're a experienced veteran, and you're still looking to get more

deals. I've literally had conversations with people that have been in this business four, five, six, seven, eight years. And I'll say, well, how many offers a week are you making? And they will literally their replies are sometimes one to 10. And I say, well, don't you think you should make more offers? And they always say yes. And then I say, well, how do you think you're going to do that? And I allow them to kind of get their wheels turning on, you know, where they can find more deals. But let me give you some of those answers, right?

Because again, regardless of being a newbie and or being a veteran, the name of the game is creating marketing leads and then making offers. You only can make the shots you take, right? And so for me, my perspective is I always want more shots on goal. I want to take every shot. And the only way to do that is by actually making the offer. And I'm not talking about giving a verbal offer.

That is not what I'm saying. I'm saying a physically written offer, handed over to the homeowner or mailed to the homeowner or DocuSign to the homeowner. Because what happens with the psychology of the homeowner is now it's real. This isn't just, you know, well, I have this person interested in selling. This is like, oh man, Justin wants to buy my home. Right? And so I use, obviously the main strategy that I use to get deals is off market deals, direct mail, pay-per-click advertising, bandit signs, cold calling, PPC, networking. What am I forgetting here? Oh, voicemail drops. Those are my main ways of

getting deals. That's being said, I still work with realtors and buy properties and I still work with other investors. And so this episode has two points that I want to make here. One, how many offers are you making? And if you're not making 10 to 15 offers a week, then you're never going to increase your deal flow. And if you're a newbie, you'll never get your first deal. Like you need to be making massive amount of offers. So physically write them, physically mail them, docu-sign them, what have you. But where can you increase the lead flow so that you even can make those offers, right? So that's step two. Well, for those of you that are marketing, for those of you that are doing direct mail, PPC, cold calling, then obviously

every lead that comes your way, you potentially can make an offer. And I would highly suggest making more offers for every single lead. I mean, this is going to be a whole different episode or podcast is talking about the iBuyers, Opendoor, Offerpad, Zillow, Redfin getting in the game. Very, very difficult to compete when you're in markets that they're in like Phoenix and other markets, right? But that means the best way to do it is make offers on as many leads as a viable lead. Meaning just because they call you back from your direct mail piece doesn't mean it's a viable lead. You need to go through your qualifying questions to get there. But if they are viable and they want to sell within six months, 12 months, hand them an offer, make it real and continue that conversation even if they don't want to sell in the next two weeks or 30 days, right?

So for the off market, my argument, my point will be make more offers for every single lead that comes in. Then where I think a lot of the veterans get caught up is that they don't want to work with realtors or they don't want to work with other investors. I think it's a massive, massive mistake. For the majority of my career, I've always worked with other investors. I don't look at them as competition. I look at them as ways to get more deals done. Even if I'm splitting profits with somebody, or even if someone buys my deal and re-wholesales it for another fee on top of mine, I'm okay with all of that. I will also help wholesale other people's deals. And in fact, today, it's Sunday morning right now, and this is why I really wanted to be able to get this

message out. I had a wholesaler text me saying, hey, would you be interested in this property? I just got it back from the agent. It's not listed, but there's an agent kind of being a conduit to the homeowner. And I said, yes, I would. And I underwrote it. I pulled up my calculator. I underwrote the property. I said, I'd be very interested.

When can I go see it? And we scheduled a time on can I go see it? And we scheduled a time on Tuesday to go see it. I already know based around what the wholesaler sent me the property at, meaning, could you buy this home? Here's where I have it. The wholesaler was honest with me, right? He said, I have it at this number. Could you buy the home? And I looked at my calendar and I said, yeah, I can buy that home. There is margin in there for me to buy the home and I looked at my calendar there I said yeah I can buy that home there is margin in there for me to buy that home and so that is another wholesaler wholesaling me a home and there's too many of us as far as investors that like we just don't want to work with the other investor we feel like they're competition but either you could wholesale their home you

could buy their home or vice versa they could wholesale your home or they could buy their home or vice versa. They could wholesale your home or they could buy your home. I think the biggest change that has happened, and there's been a lot, by the way, over the last 12 months, 24 months, but a lot of the wholesalers now are also flippers and vice versa. A lot of the flippers now are also wholesalers because there's become a need for capital, for cashflow, for quick cash. And so it's really important for you to don't, I would say, don't prejudge your buyers list just because they're a wholesaler. Doesn't mean not to put them on your buyers list because there are now wholesalers that are flippers because they need bigger pops. And now there's also flippers that are wholesalers. So don't prejudge your buyers list, but ask them how, what they're looking for, right? Like I've

wholesaled the last five or six years, but I'm doing more flips now than I'm doing wholesaling in a very specific market in San Diego. And so it's a very interesting model that you have to always be networking and talk about all the time, but be networking with the right people. Now, along with that are agents. And this is, this is a kind of a passion project of mine. I talk about all the time, but be networking with the right people. Now, along with that are agents. And this is, this is a kind of a passion project of mine. I want to, you know, with whatever spare time I have, figure out a way to make investors and agents work better together. And the reason being is because I think we'll make, all make more money, will help more homeowners in their time of need and, and do more business and make more money, right? And so,

you know, I work with agents on a specific way. Agents can also be viewed as wholesalers. They're the first one to the lead. They're the first one to the wholesaler. And so my point to the agent is, hey, Mr. Agent, before you even list it, let me know you're going to list it. Give me the address and ask me where I could be as an offer on the property. Let me make my offer. It's going to be that I'm not going to, you know, I'm not of the opinion of trying to put in an offer that I know will get accepted and then try to beat up the homeowner and renegotiate after it gets an escrow. I do not like that and not play that game. So I'm going to make you an offer that I know is something we can move forward on. And the reality is if you really take a different lens on that, the agent is the wholesaler. They're getting an off market property

that you don't have. And conversely, there's listings that aren't moving. There's listings that, you know, depending upon your point of like, it's been on the market for 282 days. We'll make the offer because they might be at a breaking point. Like they need to sell now. Now they will take the lower price because they've been on the market for too long. They lost their job. Whatever example may have happened. Those are the offers that you want to be making. And so two ways I work with realtors, I want them to come to me prior to listing, right? Give me the address. I'll give you the offer. But then also I want to be able to find properties that may be listed too long in the MLS and or just hit the MLS and or price drop on the MLS. And I just create a drip for myself and I call the agent and say,

hey, I'm interested in this property, right? So I go through, I introduce myself. I'm interested. Why hasn't it sold? What is the issue? I would like to put in an offer and I'd like you to represent me. Now they're getting two sides of the deal. And if I'm rehabbing it, I'll even incentivize them to list my rehab. And so again, if you really think about this business right now, we're competing with the open doors, the offer pads, the Zillows, the Redfins, and you need to be making more offers. I don't care how long you've been in the business. You need more offers.

Conversely, you need more lead flow. And if your marketing isn't doing it, direct mail, cold calling, band signs, PBC, you name it, then you need to be working with other investors and realtors. And you just heard how to do that. So that was something that was top of mind. It's Sunday morning. I'm going to go off an incredible Sunday now with my fiance and some friends on a lake. I hope this message found you well. Again, if you want a ton of free, cool stuff, if you want the top knowledge, the top education, get into the Science Flipping Academy. It's free.

It is absolutely free, but it's closed. I only want the right people in. And so go over to the Science Flip Academy group. I want you to try to join. I will then allow you in as long as I feel like you're going to have a couple questions to answer. But I'm going to be giving top level education. I'm going to be giving free weekly calls on there. It is going to be a massive, massive place for real estate investors to go. But I just don't want anyone and everyone. I want the right people in the group and that's you. So go ahead, hit me up. By the way, follow me on social media, the Justin Colby Instagram, the Justin Colby on Facebook and Justin Colby VP on YouTube. Hopefully it's fine for you guys as well. See you on the next episode. Peace.