The Science of Flipping - Episode 160: Buyers Will Make Your Year – Real Estate Tips

Starting point is 00:00:00 Welcome to the Science of Flipping podcast. I'm your host, Justin Colby. Yo, yo, what is up, everybody? Happy New Year's. We are live right now in the Science of Flipping Academy. If you are listening to this on iTunes, if you're watching it on YouTube, make sure you get over to the Science of Flipping Academy to watch these trainings. They're live. I engage. I answer questions.

Starting point is 00:00:41 Again, welcome to the first podcast episode of the new year. It's officially December, or I'm sorry, January 2nd. And it is 2020. So we need to have 2020 vision. And so I'm excited about what I want to train on today, because this is something that I'm passionate about. And one of the things I think many of you that maybe follow me or heard of me or whatever, you may have also heard of a company called Keeley, who's a good friend of mine, Jamil's company. They've done very, very, very, very well here in the Phoenix market, which is in large part, one of the hardest markets in the nation. And what they've really been able to do is focus on what my good friend and business partner, Kent Clothier, has been talking about

Starting point is 00:01:29 for about a decade, which is reverse wholesaling, which is starting with your buyers first. It's not a new concept anymore. Again, Kent has been talking about this for the better part of a decade. Kegley has done this now for about three years consistently knocking it out of the box. And so I'm really going into this year into 2020. This has been a mission of mine. This is part of my goals. As I laid out what I wanted to accomplish is really dive in, in building a bigger, badder, more active buyers list. And so one of the things I would say is I'm not as concerned about bigger, meaning I don't need to have 200,000 people that are on my buyers list or even 40,000. I mean, I have a massive list. I want active people. And that's something I'm going to get extremely

Starting point is 00:02:17 focused on for my goals this year is having an active buyers list. And so as a matter of fact, before 2019 ended I actually went out and found a company to be able to help me with that and so I've been over the years I've been mailing to buyers and that has worked really really well and I've been networking for buyers and over 12 years now I've been able to accumulate an incredible buyers list so So that has really helped. But now I realize the game has changed. I realize people are looking different to find homes. There's the whole iBuyer world out there. I mean, there's so much changing over the last two years,

Starting point is 00:02:58 let alone five years or 10 years that I'm changing with it. I'm adjusting with it. I talked to you guys earlier about adjusting with the times. Bill Walsh, which is an incredible 49er coach in the Hall of Fame, the whole nine yards, always said the first six minutes of a football game is planned and scripted. Every minute thereafter, you have to make adjustments, and that's what I'm doing going into 2020. There are so many things that have changed

Starting point is 00:03:25 going into this year that I'm no longer relying on what got me here. I'm also adding and adjusting to what can get me to where I want to go for 2020. And so one of those things is I've taken on a Facebook marketing company to help me build my buyers list. They place ads for me with either real wholesale deals that I actually have that I want to sell and or potential like ads talking about if you're interested in buying an investment property. And I will tell you, since I started roughly two weeks ago, minus the holidays, I have 37 new buyers, active buyers to my buyers list

Starting point is 00:04:09 that I have called, talked to, and roughly nine of them are looking for seller financing. Now, why is that important? Why would I bring that up right away? The reason I bring that up right away is everyone's talking about, I need to get more deals. I need more deal volume. I need to be able to make more money. Well, one of the ways to do that, another adjustment I'm actively making is becoming extremely focused on offering creative financing or creative purchases, meaning agreements for sales, subject to lease options, all are more creative acquisition styles that allow me to buy more homes and sell them to the right buyer. Again, I think I said eight or nine of the 37 were owner financing slash seller financing. So when I talked to them, I literally had a conversation yesterday. Today's January 2nd. Yesterday was the first. It's a new year. She actually opted in to my ad and I called her right away and she talked to me about her whole process. go to a bigger home and really needs seller financing or owner financing or something in

Starting point is 00:05:26 place to be more creative because she does not have the ability to go get a big loan. And so she won't be able to get a loan. So she needs to have a loan in place, which really allows me to focus on more properties that I could create or generate and buy with seller financing in place. Take this exact buyer. Her name is Crystal as a matter of fact. And take Crystal and be able to position her into that home and do good by everybody. And that's one of my big missions this year is I want to do good by people. I want to help people and I want to make money. But if I can do all that in one transaction, it's a win. And so I bring this to light because I hired this company. This is a company that this is all they do. They're not focused on, you know, PPC and they're not focused on a hunt, you know,

Starting point is 00:06:18 other type of, uh, um, businesses. They're strictly real estate investing. They're strictly buyers. They will help you build your buyers list. They've already helped me. And the real power is that ability now to have a creative deal and have a buyer looking for that creative deal that can put down money, but doesn't have to go get a loan and can actually just inherit the seller financing. Again, out here, we tend to do more agreement for sales or subject to's. I know there's land trusts and all sorts of different stuff more commonly on the East Coast, but I mention that because that will be a game changer for you. That will be a game changer for me is focusing on your buyers list.

Starting point is 00:07:04 If you're using Kent Clothier software, find cash buyers now, awesome. I've been using that for the better part of a decade. The whole time he's had it, I've been using it. This right now to me is my adjustment. They focus on Facebook. It is where people live these days that whatever the stats are, some crazy percentage of people's day is on Facebook, Instagram, social media.

Starting point is 00:07:22 I realize that, I'm adjusting to it and I'm going after where people, where their eyeballs are. Right. And so yes, there's a cost. Yes, there's a spend, but I'll tell you right this moment, he's not looking to bring on 200 more clients. Um, I talked to him that I was going to mention him and his service. He said, absolutely. But you know, I could bring on another five clients right now before my bandwidth is tapped and I'm hiring currently. So if you want them, I will let you know who they are and I will make that introduction. And just come through me,

Starting point is 00:07:58 direct message me wherever you hear this. Find me on social media, the Justin Colby on Instagram, the Justin Colby on Facebook. Be a part of the Science Flipping Academy. Just send me a direct message, and I will happily make the introduction. They are not looking to take on a lot of clients as they're in the growth phase. So they want to perform on the clients. They're incredibly customer service-oriented. Phillip is the owner's name.

Starting point is 00:08:25 He's awesome. I pretty much have talked to him almost every day for two weeks. I'm getting extremely focused on buyers and buyers are going to help you navigate more deals and especially your ability to do seller financing, creative deals, agreement for sales, subject tos. This will be your game changer. I know it will be mine.

Starting point is 00:08:44 And so I'm excited about it. You need to focus on that. Again, if you're using Ken's system, great. I have been using that system for 12 years. It is direct mail. You get the cash buyers, you send them mail, you skip trace them, you call them. Perfect. This is in addition to that and or in replace of that, however you want to treat it. This is going to be the game changer for me this year. I will open up the opportunities. The more buyers I have that are creative seller finance buyers, maybe they're landlord buyers, right? We have an ad that's being run right now about more rental properties. I'm going to get more landlord buyers. So those properties that are

Starting point is 00:09:20 not great fix and flips are actually going to be great rental properties for those buyers. So I don't need to worry about 80% of ARV minus rehab minus, well, this person isn't likely going to go do a big rehab. They're not going to worry about the flip and the profit. So I can offer 90%. How much more valuable is my offer when I'm offering 90% because I know my end buyer is just going to hold it and

Starting point is 00:09:45 they're not going to do a big rehab. They don't need to make a big profit on the back end. How much more am I going to win? This is really powerful stuff, guys. This is like game changing. That's why I said, that's why I titled it. The key to your success will be your buyers. You need to focus on this. I don't care what market you're in. Facebook is everywhere. This is why I'm choosing Facebook. Phillip has created an incredible company. It is awesome. And I really encourage you guys to reach out to me. I will personally make the introduction because it is a service. So it's not like a product or anything. It's a service that they

Starting point is 00:10:21 will do for you. But this will be your game changer. You need to continue doing that. If you don't have a marketing budget, if you don't have ability to spend on your buyers list, you need to be networking. You need to be going to every RIA meeting, every meetup group, every lunch and learn at title companies. Meeting with realtors is a great idea because they themselves now are investors and they have buyers. So I really encourage you guys to focus on that this year, because if you have great buyers, it allows you to differentiate how you're going to acquire homes. And if you're going up against a traditional wholesaler, whose only offering is a fix and flip type of offering, let's say 80% of ARV minus rehab minus wholesale fee, and you can get to 90%, you're going to

Starting point is 00:11:12 crush it because you know you can get to 90 because you know what your buyers are willing to pay. So hopefully this guy finds you guys well. Again, if you aren't a part of the Science Flipping Academy in Facebook, go search us out go find us just type in science of flipping academy in the search bar ask to be um uh admitted we are going to admit you we want to help you out this is where we can engage live this is real live stuff you see all of the content first um and it's very engaging. People are in here asking questions, doing good, offering help. So get in here. If you guys are not following me on social media,

Starting point is 00:11:52 the Justin Colby on Instagram, the Justin Colby on Facebook, as well as Justin Colby VP on YouTube. YouTube's going to have all my video content. So I'm going to go for a big push on just pushing out content this year. So follow me. Hopefully this is all helpful to you guys. I wish you guys all the best happiness, love, health, and a lot of money in 2020. I'll see you guys on the other side. Peace.

The Science of Flipping - Episode 160: Buyers Will Make Your Year – Real Estate Tips

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