The Science of Flipping - Episode 51 – Free Seller Leads | Real Estate Investing Podcast

Episode Date: October 24, 2014

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Welcome to the Science of Flipping Podcast. I'm your host, Justin Colby. What is up, guys? Welcome to the Science of Flipping Podcast. I am your host, Justin Colby, and this is episode 51. Today is a cloudy, gloomy, borderline rainy day here in Scottsdale, Arizona. So I love it. I'm actually from the Bay Area. So when I wake up early in the morning, I go to the gym and get back and get my work day started. It's actually nice to be able to open the windows, get some fresh air because the temperature is somewhat cool. By no means is it cold, but it is somewhat cool because it is very cloudy and gloomy today and I absolutely love it. I would love nothing more than a huge rainstorm. So anyways, today is a beautiful

day. I have the windows open in our office. I can hear the birds chirping. I am ready to rock today. So welcome to the Science of Flipping podcast. This is episode 51. And I just got back from Charlotte, North Carolina. As most of you know, I travel across this beautiful country working with consulting and coaching students and consulting clients. I bring on other investors and I coach them to get to the next level. And I happen to have a high-end, high-level coaching student out in Charlotte, North Carolina. And so I was out

there and it is a beautiful, beautiful place. The city is absolutely immaculate. And so as a matter of fact, if you are interested in working with me directly on a coaching level or a consulting level, I'm happy to answer any of your questions and see if we could be a good fit. So if you want to email me directly, just go ahead and email info at thescienceofflipping.com. Info at thescienceofflipping.com. And I'm happy to jump on a call with you and figure out whether it's something that would be a good fit for us. I do consult and coach high level investors. So if you are interested in taking your game to the next level, please shoot me an email and I'm happy to see if that would be a good fit.

So anyways, I was in Charlotte and it's a beautiful place and I was working with this client who is kind of just starting out a little bit and he has experience in real estate but really wants this to be his big kind of retirement plan. And so one of the things that I always do with all clients is we are able to find leads via the internet. And one of the things that I wanted to talk to you guys today about on this podcast, and I'm going to make it short and sweet, is simply what type of individuals do you want to have on your team that could possibly bring you leads? Because what happened and what reminded me to do this podcast for you guys is we were actually able to find a CPA in Charlotte who actually brought my student two deals and possibly a third deal. The reason why this CPA was able to

do it is because oftentimes CPAs are connected. A lot of times CPAs can be the executor of a will. And so if something's going through probate, the CPA is the one that makes the decision on whether they can sell that home or not or for what price because he is or she is the executor of that will. And so the first person I'm bringing up are the CPAs. You might want to go search out certain CPAs the same way you would search out real estate agents, contractors, anyone that you want in your team, you search them out the same way. You have Google. You have referrals. You have people that you know who know CPAs. And the easiest way to go about this is, hi, my name is Justin.

I'm a local investor. I'm not sure whether this would have anything to do with you or not, but I know I've worked with other CPAs that have had properties that they need to sell for their clients. Whether you are an executor of a will or maybe you know one of your clients need to sell some properties, I wanted you to know that I'm out here, that I'm a resource for you. I'm a cash investor. I traditionally buy, fix, and flip homes. However, I also look at rental properties as well as if it doesn't really fit for me, I work with a lot of different investors who maybe that home can fit for. So I want to make sure that you know I am a resource for you. If you ever have a client who needs to sell their home for tax reasons or needs to buy a rental for tax reasons or any of that kind of stuff, I'm very active here and I want to make sure that you know I'm around in case something like that happens or God forsake it, you ever have a client who passes and you become an executor of the will. No, I'm here.

I buy cash. I buy quick. It's very easy on the sellers. So just wanted to introduce myself. And that's it. You know, and a lot of times the CPAs will say, you know, well, they're going to give you one or two responses. You know, that doesn't really happen to me in my business. I'll keep your information. but the reality is my clients don't really do this, you know, or I haven't had many pass or, you know, I don't tend to work with their real estate portfolio. Okay, no big deal. Or you're going to have the example of what we found in Carolina where absolutely they go through these type of things where people pass and they're the executor of the will and or their clients need to sell homes. I know this one CPA that we were out in Charlotte with, he was showing us a home that he was the executor of the will. At the same time,

he said, hey, there's another property I could show you. It actually is owned by my sister and myself because we inherited it. We don't really know what to do with it. I think, quite frankly, if I gave my sister a cash offer, I think we would take it. It's probably a pretty low price point because it's not in the best of areas. So we ended up driving over to that property as well, taking a look at it. The area wasn't half bad really, but the home itself was pretty rough and was going to take a lot of work. But he said, hey, if you want to give us, you know, I would definitely accept a $15,000 offer. I mean, that's a one five, $15,000 offer. I mean, that's a one five $15,000 offer. I think my sister would accept it. And you know, the home could be yours. So we started running numbers and what the comps were in the area and what type of rent you could get in that area. And we started going through that process

because for $15,000, even if you put in, you know, $40,000 to fix the home up, you can rent that for $750, $800 a month, and that could be a good cash flow property for someone. So there's a valid deal there. In fact, we actually ended up offering $12,000 just to see if we could get a little bit lower. And so the idea here is CPAs oftentimes can be a great lead source for you to find property, whether it be, um, a good property fix and flip a good rental or otherwise, or great wholesale deal that you can sell off to someone else. You become a resource for that CPA. Um, and you show them that you know what you're doing and that every time they give you a deal,

you complete it as you said you would, they're going to keep giving you those deals. And then word spreads around through the CPAs. And next thing you know, he introduces you to his buddy, Johnny CPA, and you create that relationship as well. So CPAs can be a great person connection for you to find deals. Another one will be probate lawyers for obvious reasons. They are the lawyers that handle the homes that go through probate. So obviously probate lawyers will be great. It takes some time to build a relationship with probate lawyers as well as everybody. Probate lawyers tend to be a little bit more so than most because they're handling the real estate of the family and they need to make sure they trust you. But they are very, very good connections. And if

you get in with one of them, it can be an absolute goldmine. So it is absolutely imperative that you reach out to probate lawyers. Again, where do I find probate lawyers? Well, you have Google, right? You have Google. You can ask other lawyers you know. You can ask CPAs that you know. Ask around where you might find a probate lawyer. Otherwise, obviously, you can search them up on Google. Another great relationship is a financial planner. Financial planners are individuals that handle a lot of the, not accounting, but the financial plan of individuals that have money. Now, that could simply mean they show them four or five ways to invest their money. It could simply mean they make sure that they're investing in real estate and stocks and bonds. They basically build a portfolio for

that individual so that their money can be safe and not all their eggs in one basket. So financial planners can be very good people to make a connection with. And again, all of the scenarios would be the same. Obviously, this financial planner wouldn't know you, you wouldn't know the financial planner. So you have to make sure that you are building a rapport with these individuals. You need to make sure that they know who you are, what you do, and how you could benefit them and how you could benefit your client. Now, most of these three type of individuals, CPAs, financial planners, and probate attorneys, usually will not take any type of payment in these transactions. And I say usually because sometimes they absolutely will. So these three

individuals, and sometimes they're bigger companies, are great people to go after to talk about who you are, what you do, and how you could be a benefit to them as well as their clients. Again, how are you a benefit? You are a cash investor. You close quick. There are no fees for the seller. There are no commissions. There are no closing costs. There are no repair fees. I buy homes as is where is. As a matter of fact, if your client is looking to buy a home, I come across many homes each

and every week that I potentially could send to your client as a good investment, right? That would be something more for a CPA or financial planner where they're looking at the numbers and saying, okay, my client needs to be more diverse. They might need to pick up a couple rentals. So when you're talking to these CPAs, when you're talking to the financial planners, that could be a great way for you to have some buyers on top of everything else. So not only can you use these relationships to find deals,

you can use these relationships to sell deals as well. So make sure you go out and actively actively seek out probate lawyers. Divorce lawyers is another great one that I didn't bring up here, but divorce lawyers. Listen, again, you're going to have to build a trust with that lawyer. They're going to have to understand who you are, what you do, and how you can be a benefit. But if you do build a good rapport, a good trust with that lawyer, unfortunately people are going through divorce each and every day and a lot of the stickiness in the middle is what to do with the real estate. And again, if you can build that relationship with that divorce lawyer, they will likely send you over a deal that their client needs to sell now.

They don't need to sell it in 30 days or 90 days or at the end of the year. They need to sell now so we can finish out this divorce paperwork and close out this file. So there's a fourth avenue that I would actively pursue to find deals. And again, some of these might actually end up being a cash buyer for you, such as the financial planner or the CPA. Again, these are four great avenues. Make sure you're going out actively searching these people out. Make sure you have your pitch together.

Make sure you understand what you're going to say to them and how you can benefit them. That's what I got for you guys today. There's another great avenue to find deals that is free and that you can use each and every day in your business. I am your host, Justin Colby, and again, if you are considering taking on a coach or wanting some more coaching to help you get to that next level,

email me personally at info at thescienceofflipping.com, and I will make sure to personally reach back out to you and set up a phone call. That's all I got for you guys today. I'm out of here. Peace.