The Science of Flipping - Episode 30: Snake In The Grass | Real Estate Investing Podcast

Episode Date: April 4, 2014

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Welcome to the Science of Flipping Podcast Episode 30, guys. I'm your host, Justin Colby. Welcome back. I am so excited about what's happening in the real estate market, and I can't wait to give you this podcast because it's super important. As you can see, I'm here at my office. I think the last podcast we did was actually, I was at my home on a beautiful day with the doors open and the birds chirping, but it is back to the office. If this is your first time here at the Science of Flipping

podcast, I highly urge you to get over to our website the science of flipping calm and get our free ebook this is the ebook I think we wish we all had when we first started it is the 15 most costly mistakes you can make as a real estate investor in this market and this market is what I will be talking about today. Again, get over to the website, thescienceofflipping.com. Pick up that free e-book. It's free. Read it. It's short. It's succinct. It is exactly what you'll need so you don't make the mistakes that many investors make that myself and my business partners have made. You've get that ebook this podcast is all about creating a lifestyle by design about creating a fix and flip business with the systems and

organization in place for you to flip homes while you're on vacation flip homes on the comfort of your own couch. So often, I talk to students across the nation that feel like they're doing everything. They'll call me or email me and say, hey, can I jump on a call with you? I'm handling three or four deals, and I'm working 80 hours a week, and I can't deal with these contractors. And so when I'm teaching these students, I try to make them focus on creating systems and outsourcing in their day-to-day business because the reality is you're an investor so you can live the life you want,

so you can make more money than what you normally would in your nine-to-five. And so when I'm teaching my students, again, from all across the country, they always have the same problem and that is they feel like they're too in their business. This podcast is exactly that, trying to create the systems, the organization, time blocking, outsourcing, you name it, we review it in this podcast. If you'd like to know more about my coaching

and possibly working with me one-on-one, go ahead and email my assistant at info at thescienceofflipping.com. Again, it's info at thescienceofflipping.com. And I look forward to speaking to you further about how I can be of assistance and take you to the next level. But anyways, I'm excited about today guys because as a successful entrepreneur and a successful investor, you will start to realize a lot of opportunities get brought your way. What today's podcast is about is simply knowing the snakes

in the grass, as I like to say. A lot of people would say that wholesalers are snakes in the grass, or real estate agents are snakes in the grass, or developers are snakes, or whoever. People that are bringing you the opportunities is really what you need to be watching for. And the reason being is obviously as success gains, people see that you have success and money and notoriety and so on and so forth. And people will start bringing you opportunities that get them paid. Now remember that. Very similar to a wholesaler and or a real estate agent. When they bring you a deal, they're going to get paid on that deal. Now I want to take a

step back because I'm not calling real estate agents or wholesalers snakes in the grass. But understand that when presented a deal from someone who is going to make money of that deal they're gonna position it in a way that looks very attractive for you because if you find it attractive and you pull the trigger on that deal they will get paid now that's the whole point now they may offer a partnership opportunity. They may offer just the deal in and of itself and they are working a fee in the middle. They

may be a real estate agent where they're actually representing the seller on a transaction. So you need to really reassess the deal in and of itself and also assess who's bringing you that deal. Is it someone you know? Is it a friend? Is it a colleague? Is it your business partner? Is it a real estate agent? Is it a wholesaler? There's a million people that can bring you deals and you wanna assess who's actually bringing that deal as well as the deal in and of itself so analyzing the deal by the numbers by the location by the profitability you absolutely 100 percent have to do that but you also need to look at where's the deal coming from

who's generating that deal? Are they going to get paid on this deal? Because if so, you need to take a closer look. And I'll be the first to admit, there has been times that people very close to us has presented deals that really aren't deals. But they wanted to present it knowing that we had the bank account knowing that we had the ability knowing that we had the systems because they figured if I were to pull the trigger on that they were going to get paid and you know being a real estate investor for so long there's absolutely times

where I've gotten taken I trusted someone a little too much I thought hey they have 15 20 years experience in this department why wouldn't I trust them for their word why would I not believe everything that they're saying and even myself you know I get caught up in that and I want all of you out there to realize it can happen to the best of us, first of all. Second of all, you need to start really slowing down your decision making. Again, years ago, there's been examples where we've been taken because we trusted a little too

much. Oh, we trust that you've been doing this for 15-20 years we trust your decision this seems like the right deal you know we generally rain numbers so yeah let's let's move forward with this deal don't do that don't do that be sure you're not only analyzing the deal based on the numbers based on location based on the profitability based on the numbers based on location based on the profitability based on your return

on your investment but also analyze the person who's bringing it to you do they stand to make money from this deal if they do how quickly is it more a partner situation so they only make money when you make money is it a situation that once you close they make a fee in between possibly like a wholesaler is it a situation where once you close they start making money on a piece of the deal from closing so I sit here today guys in in is something that really just kind of hit me about all the opportunities that got brought to my table each and every day. I get something new given to me and I want you all out there, our loyal listeners, our great students to really take a step back and slow down a little bit because

you're going to get a lot of opportunities. You need to choose the right opportunities and not only analyze the deal for the deal sake but analyze who's bringing it to you is there profit in there for them and you know make a decision based on that not only the numbers but why is this person bringing it to me why don't they do it themselves they usually can't do it themselves because they don't have the money to do it themselves otherwise most't they do it themselves? They usually can't do it themselves because they don't have the money to do it themselves. Otherwise, most people would do it themselves if the deal was that good, right? So think about that. I look forward to bringing a new podcast each and every week, sometimes even twice a week. We're really ramping up

here. Our students are loving the education that we give. And my book is actually out on Amazon. So if you happen to be on Amazon, go buy Amazon. Check out my book. I think it's like $2.99 for Kindle. So I look forward to seeing you guys next week on the Science of Flipping podcast. And take a step back, move slowly, make the right decisions, and we'll see you next week. See you guys.