The Science of Flipping - Episode 39: Think Tank Thursday – Confidence Through Preparation | Real Estate Investing Podcast

Episode Date: June 27, 2014

document.addEventListener("DOMContentLoaded", function () { podlovePlayer("#player-5eb5ab3202b35", "https://thescienceofflipping.com/wp-json/podlove-web-player/shortcode/post/580", "https://thescienceofflipping.com/wp-json/podlove-web-player/shortcode/config/default/theme/default"); }); <p>[podlovevideo src=”http://thescienceofflipping.com/audio/Thinktank.mp4″ type=”video/mp4″ duration=”” title=”Real Estate Investing Podcast – Episode 35 | #1 Private Lender”]<br /> Justin Colby gives you a great Think Tank Thursday. For investors who are just getting started to investors that still feel shaking when meeting with sellers, Justin Colby reviews that your confidence comes from your preparation. He gives specific example on what you can do to prepare when looking at where you want to invest as well as what you need to know before you meet with a seller.

All right, guys. Welcome to Think Tank Thursday. It is June 26th. I'm Justin Colby. I'm the founder of thescienceofflipping.com as well as the podcast, The Science of Flipping. I just want to welcome you again to Think Tank Thursday. Really, really every time whether it's a podcast whether it's a Google hangout whether you find it on YouTube or you actually are on my podcast the science of flipping each and everything you see of me or if you hear that I give whether you're listening to something or seeing me speak it's all revolving around making sure that you are educated on what it takes to be a successful real estate investor.

And that I give you each and everything that we use in our business so that you can be a real estate investor who lives the life that we all want to live, right? That we can be on vacation, that we can invest in real estate from the comfort of our own couch. So I'm excited that you guys are here. Again, it is June 26th. This is a Think Tank Thursday. And so I want to really get right into the subject that we are going to be talking about which is how you gain confidence no matter what you're doing okay in what I would argue whether your real estate investor or otherwise really you want to be preparing more so than anything else because you really gain confidence through preparation. The reason why I bring that up today is because I have a lot of students from around the country who will talk to me about their lack of taking action or maybe they were scared to do something

or they haven't yet gone and met with a seller so they have all this anxiety and fear and anxiousness that is inside of them and what I want to really hit on today is I'm gonna be very specific when talking about real estate investing but you can watch this on Google Hangouts or YouTube or this will most likely be on my podcast. You can watch this and really attribute this to anything in your business, guys. So this is Think Tank Thursday.

If this is your first time hearing or seeing me, get over to the Science of Flipping. Get your free e-book. We have an e-book on there about all the 15 mistakes that you can make in real estate investing in this market. And if you are actually interested in working closer with me or my team, please shoot us an email at info at thescienceofflipping.com. Info at thescienceofflipping.com. That way my personal assistant can directly email you back and see how we can be a bigger help to you in your business so let's get going

on confidence through preparation and one of the things that I just recently had a student call me and she was very nervous about seeing, she had like three appointments to go see these properties. And so I started asking her questions regarding the neighborhood of the properties, did she have ARV, what type of tools did she try to find comps with, and she kind of stuttered a little bit. And I could tell some of her lack of confidence was around the fact that she

didn't have a lot of preparation in before going seeing the seller. Really what I did is I set out a great game plan for her to have a set of confidence so when she's speaking to the seller, she's able to speak to them confidently and educatedly so that she comes off confident because there's nothing worse than going into any type of situation specifically with the seller where you don't have a sense of confidence. You lack that confidence. They can read that you lack that confidence and it doesn't help the situation. So I want to list for you guys today several things that I think you need to have or you need to prepare for and have knowledge of before you go start real estate investing,

meeting with a seller, what have you. You really need to set your preparation at a very high level. I can tell you my own experience is that that is what really helped us propel us into the amount of success is we started preparing a lot more. We started getting more education. We started learning a lot more, which helped propel us into the amount of success that we had today. Some of the things that you really want to start knowing more about when dealing with going and meeting a seller or even starting investing is you really want to know what is out there. Where are you looking to invest? What zip codes are good zip codes for you to invest in and why? Well, most predominantly, the reason why it would be a good zip code for you to invest in is location, location, location,

right? That's what everyone would argue. So what does that mean? You know, you want to have school systems around there. You want to have shopping malls around there. But you might also want to have a high rental rate around there because that might be good area for you to find rental properties in. You might want to see how many cash transactions are in that area, right? Because the more you know about cash transactions, the more you understand there's other investors in this area. If there's other investors in this area, this is probably likely a very good area for you to be investing in. You want to know what the rent rate is in this area. You want to know what low listing prices would be, right? So what market value is? What's the low end of the

market value? What is the high end of the market value? And when looking at that, whether you're using RealtyTrack, whether you're using Redfin, whether you're using Zillow, Trulia, MLS, when looking at the low market value and then also looking at the high market value, you need to be trying to figure out what an average number would be. Again, it goes back to your preparation when you're either getting started in investing and or you currently are an investor but you get so nervous and caught up with certain things it goes back to your knowledge in preparation the same way it would for a test right so a lot of times I relate school to to real estate investing because the more prepared you are for a test,

the less likely you are going to be nervous about that test. Well, the same would be said for maybe meeting a seller and being nervous about whether you were going to get that contract or not, whether you were going to be able to wholesale that deal or get the seller to sign your contract. Well, the more prepared you are about the area, the market, the low comps, the high comps, why are the high comps selling, the days on market, how long things have been on the market for, the more information you have about that, the more confident you are going to be going into that seller's home and giving them a price that both works for you and works for them. Being able to have the script down, preparing what you're going to say to them, making sure you have three or four comps with you when you're going to walk into a seller's home.

Make sure you have several contracts that you're going to be able to give the seller. All of these things really help you with your confidence when going in and meeting with the seller. Right? You know, having certain contractors or team members that you can rely on when giving evaluations for what the rehab cost would be. Right? All these things really help you gain a sense of confidence

when you are dealing with a seller and or when just simply getting into real estate investing. This is really where preparation is going to give you the confidence to move forward. And that's really what I wanted to focus on for all real estate investors, no matter whether you're just starting or maybe you've done a couple of deals but you get extremely nervous or you feel like you butcher deals because you don't know how to answer certain questions, you need to focus on what would those questions be? So when the seller simply says, well why is your price this low? Or how many deals have you done in this neighborhood?

You need to already have that as a canned answer. You already need to be prepared to do that. So a lot of times I give students the tip, and I know it sounds silly, but a lot of times I'll tell them to prepare. Write something out and walk around your house preparing this, saying it over and over. Already write down what type of questions would the seller be giving you so that you can rebut those questions, right? So that you already have an answer. And so it's really key to have that prepared before meeting with a seller or before choosing to go into a certain circumstance in real estate investing or choosing a certain area. So again, guys, this has been your think tank Thursday. I think the key to all of your confidence, whether dealing with sellers or just getting started in real estate,

will be your preparation and understanding. But I want to give you one last word of advice. I do not want you to have paralysis by analysis, meaning you're scared to take action because you don't feel like you know everything. More often than not, it's more important to simply take action than it is to know absolutely everything there is to know before you take action. Because then you never actually get anywhere. You're so caught up in all this preparation that you don't actually take any action. So today's Think Tank Thursday is really about talking about preparation leading to your confidence to take action, but I want to put a little asterisk behind that and I want to

make sure you actually take action, right? Get all that preparation down, and then go do it. Don't sit here and think you're not prepared enough. Go out there, know you have everything you need, and go take action. And that's what we got for Think Tank Thursday, guys. So again, if you want to talk directly to me, shoot an email over to info at thescienceofflipping. If you're listening to me on my podcast on iTunes, it's thescienceofflipping, or if you are just simply watching this on YouTube, we're here to help. We want to continue

to give you Think Tank Thursdays and all of these incredible podcasts and all this information for free. So get out there, prepare, and then take action with confidence so that you're able to get that deal. I've been your host, Justin Colby, and we will see you on the next Think Tank Thursday.