The Science of Flipping - Episode 154: How to Get Started in Real Estate

Episode Date: November 12, 2019

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Welcome to the Science of Flipping Podcast. I'm your host, Justin Colby. Yo, yo, what up, what up? Welcome back to the Science of Flipping Podcast. I am your host, Mr. Justin Colby, man. So if you are listening to this on iTunes or Stitcher or maybe you're watching it on YouTube, this is also live right now in my academy. It's called the Science of Flipping Academy. The Science of Flipping Academy in Facebook is a Facebook group. It is closed. However, if you are listening to this or watching this somewhere else, know this. You can just ask or request to join the group. We will let you in as long as you follow the rules and then you can engage with me live real time right here on the podcast. So again, this is going live right now

in the Science of Flipping Academy group, or if you're listening to this on iTunes or Stitcher or watching it on YouTube, welcome back to the Science of Flipping. I had a great weekend this weekend. It was actually late last week and into the weekend was one of my close friends, Sean Terry's event. If you were there, awesome. I'm in the room, which is awesome because the lineup he had speaking was incredible. And it was really advantageous for those newbies in the room. But one thing I wanted to kind of get back to is talking to some of the newbies. A lot of people are listening to my podcast because they are trying to scale. But I also want to address some of the newbies that are listening or watching or engaging here on Facebook and how you would, or I would get started

finding deals again, if I had to start all over or maybe if I've done one or two deals, but I'm trying to figure out how to get some consistency going. And so this is what I would focus. This is what I'm going to focus on on on this episode of the science of flipping. But the reality is, this also pertains to those that are scaling and growing. And because what I am going to be talking about and training on here does not mean someone who has built a big business should not be focusing on it. So if you are someone watching this right now, or if you are building a bigger business or whatnot, this pertains to you just as much as it does as a newbie. So I want to focus on the organization, the systemization, and the routine of what you need to be doing. And this is very much correlated with marketing. I understand as a newbie, your marketing budget is not going to be massive.

I get that. And so I will start by simply telling you the marketing strategies I would be using in today's market and through the upcoming year of 2020. These are the strategies I believe that will work in the long haul that will not fail, but you have to work them. And so then I wanted in combined kind of what I believe to be the organizational systematic way of doing these so that you can have a consistent result. Right. Because that's really what it comes down to is not just getting in front of the homeowners and the marketing side, which is great, but then building a line of consistency that you know can be effective. And so the first thing, the three marketing strategies I would be using, if I had a very limited budget, if I was going into this brand new,

would be door knocking because a vast majority of people don't door knock, would be text messaging because it is really, really cheap and cold calling because it is really, really cheap. And so the reason why I like cold calling and text messaging is because you have to skip trace the numbers either way. So you might as well utilize both ways of contacting that homeowner. And so let's start with that. Those are the three that I would be using. If you just simply stick to those, the text message service I use is $500 a month. And for the most part, you can get Mojo cells, which is the triple line dialer for $150

a month. So you're into it for 650. And then getting a list and skip tracing the list is the only other cost that you would have. And depending upon how many you have, let's just say if you pull a list of 10,000 at 10 cents, you're talking about $1,000. And then you have skip tracing. And so it can be very, very cheap and doesn't have to be every single month. And so you combine that with door knocking, skip tracing, cold calling, or I'm sorry, text messaging, cold calling. That's exactly how I would start. And one of the best ways that you can do this is simply even reaching out to realtors. Get a list of realtors. Phoenix is actually one of the markets that is hard to get a list of all the listings and get the phone numbers of the realtors. But

if you can do that, that is a great place to start. Focus on realtors. You don't need to go skip trace. Most MLSs, and I know in Texas this is doable, is you can actually pull active listings with the realtor's name and the realtor's phone number right there. You don't have to skip trace anything. I would start with that. But again, I digress. So let's talk about the three. Now, the reason why I want to take this into segments, the first segment was already done. We are going to focus on door knocking, text messaging, cold calling. But what I'll say to that is you need to make sure you are door knocking the right people. I focus primarily on pre foreclosure. The reason being is I find those to be the most financially in need.

And I don't mean that to take advantage of them. I mean that they need someone right now. They need someone to help them immediately. And if I can be of value to them, then it's a win for all parties involved. And so notice the default pre-foreclosure. That is the list. I want to be door knocking. I get that list.

I go drive them. I do it as best I can to be in pockets and areas. And so I would choose, let's say, five to ten pre-foreclosure properties every day. I would drive them. I would door knock them. When I say door knock, I don't mean just drive them, take pictures and maybe call them or skip trace them. I mean door knock them. If they are not home, obviously then you can mail them, you can text them, you can call them and continue to door knock them. And I always leave a leave behind, always leave a leave behind saying, I'm sorry,

I missed you. I was just here earlier today. If you have any interest or thought about selling your home, please give us a call. I came by as I'm looking to buy a home in the area. That's what I would be my leave behind. And so if you do not get them, you should have a leave behind, potentially direct mail them, call them and text them. This is why I like these three in combination. Now, I know I just told you to only go after five to 10 pre foreclosures a day, every day. What I think people don't understand is the routine that you need to be able to get in that has just as much importance on your success is everything else. You can call it habit. You can call it routine. I like calling it routine, like the routine of

waking up, getting a cup of coffee, going to the gym, right? Starting my day like that routine needs to be dialed in. So I think people underestimate the value of routine. And so I tend to do this in the morning. Obviously it is Phoenix. So I have my team go out in the morning. So I don't have that heat and all the excuses about the heat. Other areas you can have, you know, afternoon, maybe after work, those are good times to do this. Now, again, five to 10, if you have five to 10 that you have been able to drive while you are driving those, you are also simultaneously looking for maintenance deferred homes, homes that look like they have not taken care of the home. That is what you want to be looking for, right? And so

then you door knock those as well. And so if you chose five, five pre foreclosures, while you are driving them, door knocking them, you are also looking for maintenance deferred homes, you will then also be door knocking them. You also write down every one of these addresses, skip trace them, put them into that text message software I just talked about, put them into Mojo and start calling and texting them. Again, I've been mentioning this a lot because we've had great success and lead costs and deal costs has been crazy low with text messaging. If you don't know what company I use, I'm happy to refer them out. But then you go home and you call them and text message them. So that's why I say five to 10, because in your market,

your pre foreclosures like Phoenix is a massive market. So I might have, you know, 45 minute drives between these pre foreclosures. That's a long time. But if I am able to drive the neighborhoods also and hit the maintenance deferred homes, I do that, right? And this is every single day. So I really suggest doing this Monday through Saturday, not Monday through Friday. Saturdays is a day I think a lot of people take off. I think they feel like because they're an entrepreneur, they should enjoy their weekends. Telephone. Sorry about that. But the reality is, I think Saturdays is as beneficial

as any for you guys to be talking to homeowners, reaching out to homeowners, etc. So that's door knocking. The reason why I like cold calling and script skip tracing in combination, I have mentioned, I want to be able to bring that address back, I want to be able to skip trace it, text them and cold call the same people, the pre foreclosures, the same people, the same people that the distressed homes that are maintenance deferred, that haven't kept up the yards, haven't kept up the roof. I want to skip trace it. I want to call them and I want to text. This is why I like these three in combination. Now, I also want to take the list, the larger list of pre-foreclosures, upload them into Mojo and into the text messaging software, and I want to call them simultaneously. I want to text them, right? Text messages get 100% open ratio. This is another reason why I love them so much. And so that's just part of it. Then you can, I'm going to separate door knocking here, but then you can go after motivated lists such as probate, inheritance, divorce, code enforcement, right? Code violations,

tax liens, and you can upload those lists and you can get those from fine motivated sellers you can get those from um revo gateway you can get those from your title company list source a bunch of different areas and you can take those lists skip trace them and then upload those into uh your mojo dialer and your text messaging software every single month it keeps your cost really low and it keeps your functionality or your highest return on activity high, right? Because I just, I'm going to trademark that highest return on activity, HRN, highest return. Okay. I love it. So the reality is because now you're surrounding them.

If you do have a little bit of a budget, which some of you might, direct mail also is going to be paramount here, right? Being able to send them a mail piece, being able to call them and text them. Again, high motivated sellers, right? I'm focusing on tax liens, pre-foreclosures, probate inherited, divorce, code violations, vacant, didn't mention vacant, vacant. Those people I want to call, text, and mail. If you are able to, and it takes a little work here, but if you're able to kind of segment your list and be able to stack your list, as they say, and find people that are on multiple of those lists, like one addresses on pre foreclosure, and they're also

on tax liens. That's a really motivated seller because they're in a place of hurt. They're, you know, and again, I'm not I don't't like the, let's go get the, the, you know, I don't want to be the aggressor. Like I actually want to help. And if that person is on a pre foreclosure list and a taxing list, I want to at least see if I can help them out of their situation. That's the place I come from. That's why I've done so well over so many years. Cause when we hire and build a team, it's the same thing we teach them. We're not trying to be malicious. We're not trying to take advantage of them. We're actually trying to help them, right? They're on these lists for a reason, typically financial. We want to see if we could be the best option for them. And sometimes we are, and sometimes we aren't, right? And that's okay either way. The same thing with probate or inherited. Hey, let us have a chance

of being a great option for you. We might not be the best option for you and that's okay, but let us see if we can be the best option for you. That's how I approach every single seller, no matter what, however motivated or lack of motivation, I approach it the same way as you should. And so again, to kind of wrap up this episode, guys, and I want to encourage you to ask me questions. If you aren't watching this live, find me on Instagram, the Justin Colby. Ask me questions there. Find me on Facebook, the Justin Colby. My public profile is open. My personal one, I already have 5,000 friends.

So go to Instagram, go to Facebook, the Justin Colby. Ask me those questions there. I want to Instagram, go to Facebook, the Justin Colby, ask me those questions there. I want to be able to help. That is why I set up this group to go live with these podcasts. If there's something that wasn't addressed or you have questions regarding what I'm talking about, this is how I would get started. This is what I would be training a newbie, how to do it. And so, you know, the routine of this is paramount to me. This is where I think people don't get it, right? The actions that they're taking, they might do it once. They might do it once a week. They might do it once a month, but this is an everyday schedule and you need

to be able to schedule your day out to match this routine. So again, the three are text messaging, cold calling, and door knocking. I go after high motivated lists, which are going to be vacant, tax returns, pre-foreclosures, probate inherited, tax liens, code violations. And then while I'm door knocking, I go directly after pre-foreclosure, but then also going after the maintenance deferred list. And then I skip trace all of this and I put it in a mojo, triple line dialer and column and into my text messaging service, which is launch control, which I'll put down here and just let them know you heard from the science of flipping

and they'll hook you up. So hopefully that was good for you guys. Again, the Justin Colby on Instagram, the Justin Colby onby on facebook go there ask me a bunch of questions i want to help you guys um and if this is your first time listening get over to the science of flipping academy ask to join we will let you in and then we can engage live hopefully this helped you guys i will see you on the next podcast peace podcast. Peace.