The Science of Flipping - Episode 79: Strategic Partnerships

Episode Date: January 6, 2017

document.addEventListener("DOMContentLoaded", function () { podlovePlayer("#player-5eb5ab315f007", "https://thescienceofflipping.com/wp-json/podlove-web-player/shortcode/post/805", "https://thescienceofflipping.com/wp-json/podlove-web-player/shortcode/config/default/theme/default"); }); <p> document.addEventListener("DOMContentLoaded", function () { podlovePlayer("#player-5eb5ab315f0b2", {"title":"Episode 79: Strategic Partnerships","subtitle":null,"summary":null,"duration":"","poster":null,"chapters":"","transcripts":"","audio":[{"url":"https://audio.simplecast.com/49615.mp3","mimeType":"audio/mpeg","title":"AUDIO/MPEG","size":0}]}, "https://thescienceofflipping.com/wp-json/podlove-web-player/shortcode/config/default/theme/default"); }); <br /> How do you know you’ve leveraged a partnership the best way for both parties? Combining strengths to overcome weaknesses can make several companies strong and sustainable. In this episode of The Science of Flipping, Justin and Kent discuss leveraging networking into partnerships that can accomplish so much more than ever imagined. Seek out a strategic partnership. Engage that partnership successfully. Keep that strategic partnership going into the future sustainably. Recognize the right relationships that give results. http://alliancewithkent.com http://thescienceofflipping.com

Welcome to the Science of Flipping podcast. I'm your host, Justin Colby. Hey guys, welcome back to the Science of Flipping. I am your host, Justin Colby, and right alongside of me is my co-host, Mr. Kent Clothier. What's going on brother? What is up? What is up? Man everything it's been a great month we've made a heavy push and dude let's talk about a little something that I missed out on before we even get into this episode which was the uh extreme freedom event that you rocked it at. Tell me a little bit about that. Yeah you missed it sorry. Cool Cool. Good talk. Nailed it. Guys, that was that.

No, dude, it was awesome. We had Sean Terry, myself, Patrick Precourt. Normally, you would be there, but I know you had a wedding and many other members of Sean's team and the Real Estate Worldwide team and then basically 350 real estate investors from all over the country all got together and were hanging out this past weekend in Glendale, Arizona, right next to the Cardinal Stadium, the Renaissance Hotel there. And dude, we crushed it, bro. It was unbelievable. I mean, how cool it was with so many people in the room that were just genuinely excited to learn about real estate investing, and more importantly, how to run a

successful business, how to create a successful life, how to tie it all together, how to create active income, how to create passive income, how to do syndication, and how to do all these cool things in real estate. I mean, I could not have been more pleased. At the end of the day, there was just great energy in the room. People were really getting a lot of value. People were really providing a lot of value. Frank Cava was there. He did great. Joe McCall was there.

Alex Youngblood was there. It was just a really, really cool experience. I was glad that we got to be a part of it, and I was glad that so many people got so much value out of it. I mean, it was truly one of those where you're like, man, I'm just really grateful that I was here to witness this. Yeah. No, that's awesome. I know being there last year and being a part of those events, it's really impactful. And I think you shared a story with me personally that I think it would be great for everyone to hear is just the ability to change your life through what we're able to help people do, right? And to take someone who, and it's your really story, so I'll let you say it.

Well, no. I mean, basically, I think what you're referring to is when people, it's really simple and easy to basically shit on somebody else's dream, right? It takes no discipline to do that. And the Internet is filled with the trolls out there that love to do that to people. They are the very bane of my existence. I love the fact that they sit around and do nothing with their lives and troll people on the internet and basically bully them on the internet and belittle them for chasing their dreams and trying to do something with their lives while they sit on their ass and do nothing. And it just kills me,

right, that people have the nerve and the audacity to do that. So it's very nice to get into a room and get reminded of just how powerful it is when you arm people with not only great information, but great technology, and then the wisdom and insight and motivation and inspiration to actually jump, right? To have enough faith in themselves and faith in the process to jump. Because as an entrepreneur, that's what we do. We have to jump. You cannot get there without some leap of faith, with some step into the abyss where you're scared to death. It just has to happen.

And so every one of us have overcome that. And so when you get in a room with a bunch of people that were scared to death 12 months ago, and they took that step, they jumped, and then they fast forward 12 months later, and they come up to you and they share with you what that meant to them and what this experience has meant to them and how suddenly they go from living out of their car to suddenly be able to provide for their family like they've never have been able to and be able to take a month-long vacation. And suddenly they're putting $10,000 and $20,000 and $30,000 in the bank every month. And there was a guy that was on stage who was talking about how he was an electrician 18 months ago. And this past year, he made $1.7 million, right? That's really-

That's nutty. That's crazy. Really, really powerful. When you get to witness that firsthand, it's just so awesome, right? And so whether it's at Sean's Extreme Freedom event or it's at our Find and Flip event, it's always exciting to get around people and to really see what's going on and to have them come up to you, very emotional. There are people walking up to us in tears and wanting to hug our neck and say, man, this actually happened for me. I could have easily listened to the trolls and the naysayers out there, but I chose not to. And I did it. And I'm so grateful that I didn't listen to them. And it's a really powerful experience to have people do that to you and share that with you. And man, you talk about gratitude. I mean, it just reminds you of why we do what we do. It's the greatest feeling on the planet. Absolutely. That's awesome, man. That's a great job, man. So, you know, I think this is really leading into what I wanted this

episode to be about between you and me, which is, you know, obviously we have an incredible strategic partnership with Sean Terry with our coaching platforms. And he invites us to his event to speak on stage. And we invite him to our events at the Find and Flip event down in San Diego to speak on stage. And it's really become an incredible strategic partnership. Right. And I use the word strategic, strategically, because there's no formal in writing contractual big thing, but there's strategic partnerships that we have together. And I think jumping into the real estate investing space and to bring this topic up on this episode is really important for a lot of people to hear that in real estate investing and in business, it's not always that you have to create this big LLC and create this partnership. And Kenton, you and I have a partnership that we've had for years and years and years, and we're just starting to kind of formalize that as of actually this week, right? And so it's important for investors to realize whether you're just starting or maybe

you're running and you're doing pretty well, but you're trying to figure out how to get and scale your business and get over this hump, that there's this idea and concept that's very real with strategic partnerships within real estate investing. And I know Kent's family in all three markets use it very well. I know Kent uses it very well and I use it very well in real estate investing. And I think sometimes as real estate investors and entrepreneurs, we get so short-sighted and we get so, you know, the word partnership a lot of times brings up this, oh, I got to create this company and this whole thing. And that's not the case, right? Not all the time, at least. You can absolutely have some strategic partnerships in your real estate investing business with realtors, hard money lenders, title companies, contractors, other wholesalers that can be considered truly

strategic partnerships to help you scale your business, right? And so that's where I wanted to kind of bring this full circle here. Yeah. Partnerships take, to your point, they take form in a lot of different ways, right? I mean, at the end of the day, as you just pointed out, it doesn't have to be anything contractual. Partnerships take, to your point, they take form in a lot of different ways, right? I mean, at the end of the day, as you just pointed out, it doesn't have to be anything contractual. Partnerships don't mean ownership. They don't mean anything like that. Partnerships can be joint ventures. Partnerships can be on a deal-by-deal basis, a transaction, a project, whatever it is.

But it is a lot easier to achieve your goals. And in a lot of cases, it's a lot easier to leverage other people and their experience and build your business and your reach through partnerships, right? Sean and I work together on his event and he works together with us on our event for one very specific reason. Our businesses are very, very complementary to each other. My strengths are his weaknesses and his strengths are my weaknesses. And so it allows us to leverage each other and get our information in the hands of more people. We have a common goal, a common mission. We are trying to create impact with people.

We're trying to show people and demonstrate to people that this can be significantly easier than they believe it to be. And so when you find somebody that's got a common goal, a common vision, and then you quickly evaluate, okay, what are their strengths and weaknesses? What are my strengths and weaknesses? Are there ways for us to, again, leverage each other and kind of get there faster together? I mean, that's what makes, at its core, what makes the beginnings of a truly good partnership.

Now, certainly in that process, you have to figure out if you can actually work together. And, you know, somebody put it on one face out there there and there's somebody else behind the scenes and under the covers. I mean, it's just not most partnerships don't work out. But I think that the faster you open yourself up to the idea that, hey, man, there are some really good people out there that I think I could work with, the faster you will get into a situation where you can do great things. Right. This is not a solo sport. And I don't know any business that is, quite frankly. I mean, Facebook would not be where it is if Mark Zuckerberg had not met Sean Parker and Sean Parker had not convinced him to come to Silicon Valley and then take Peter Thiel's money and take that investment and go turn it into more and more and more and more and more.

And now you look up and have one of the most valuable companies in the world. The exact same thing happened with Apple. Exact same things happened with partnerships between Microsoft and every company you admire, quite frankly. People don't get there on their own. You don't sit around in a garage and build your dream by yourself. It requires other people. And so those people that sit around and think to themselves, well, I cannot bring a partner on because I don't want to give up control or don't want to give this or don't want that. You got to quickly get over all that thinking and realize that there's power in numbers and there's power in leverage and being able to leverage each other. Yeah. And I want to bring this tactically in the weeds a little bit specifically to investors

about some things that I have used over the times and feel free to jump in, Kent, but over the years, I've leveraged the crap out of certain relationships. Fidelity National Title has been one of my biggest partners for so many different reasons, right? And so they do all of our escrows. So when I buy a property and I resell a property, they get it all. So in return, they're willing to help me on many different areas from providing me access to some of their preferred clientele at a very reduced price to being able to present me in front of some of their highest clientele in terms of realtors that has opened the door to a strategic partner for you and me, Kent. Brett Tanner, being one of the highest producing realtors in all of Phoenix, let alone of all of

Keller Williams, came through Fidelity. And so many other different connections have come through Fidelity and going into their lunch and learns and now speaking at their lunch and learn. So your title companies can be an incredible resource for so many different things from hard money to realtors, to contractors, to other investors, to buyers for your wholesale deals. I mean, title companies, there's no contractual anything I have with Fidelity National Title, but we leverage each other, right? I give them my escrows. They give me almost whatever I ask for without obviously just cutting me a check, but they will open up any door that I'm asking for them to open up. And that's just one. Hard money lenders have been incredible to me over the years. Not only do

they have money, okay? So if there's a deal I actually want to buy, but they've been incredible because they have brought their borrowers to me when I couldn't sell a deal. So I called a hard money lender. I said, hey, I have this deal in this zip code. Do you have borrowers in this zip code? And they said, absolutely. Let me see if any of them would be interested. And they would bring me a buyer in a zip code where maybe I didn't have a buyer. So they've been incredibly helpful helping me build my buyers list, right? Contractors have been incredibly helpful bringing me deals because they're in the real estate game.

When I say that, I mean, they're really in real estate. You know, my business is marketing and sales. I market for properties and I sell properties, right? They're really in real estate, right? They're building homes and whatnot. And so contractors have helped me get into development, right? And opportunities that I never had. That's just a couple that I'm thinking, right? Co-wholesaling and other investors has been, you know, we're closing eight deals this month, Kent. And out of the eight, four of them are coming from other investors, four of them. And it's because they basically are good on the front end in, you know, marketing and finding the deal, but they rely on us to do all of the

back end, find the buyer, get it under contract with the buyer, sell it, open a best grow, the whole nine yards. And so out of the, I think it's like $75,000 we're making by the end of Friday, 33,000 of that is through other deals that I co-wholesaled because they brought me the deal. What a great strategic partnership that is, right? That's just under what? It's about 40% of the month is because I'm co-wholesaling with other investors in my area. I mean, you really need to be thinking bigger and thinking about realtors bringing you deals. You should be talking to five realtors every single day, painting a vision, painting a picture about what you do, how you do it, and how it can help them.

Always be into it to help them what's in it for me. And if they can bring you off-market deals, you'll write them a contract. They can present it to the owner and they can make a commission. That's what's in it for them is the commission. And what's in it for you is you're getting a deal that's off-market, right? I mean mean that's a very strategic partnership that if i perform i will get deals hand over fist by realtors that will be off market deals right and there's what is that five now strategic relationships that i've built in our company that i can tell you have helped us do more deals right and and the list goes on so how so how does somebody go about let's talk about how fidelity came So how does somebody go about, let's talk about how

Fidelity came about. How does somebody go about going down that path and seeking out a strategic partner and trying to engage? Yeah. So this is going to be the tactical part, right? So agents would be a great example. Where do you think you can find agents, right? Well, first of all, title companies. I already mentioned that. Title companies have lunch and learns all the time. Find them, reach out to them, follow title companies on social media. You'll see them constantly and start networking there, right? So they will introduce you to realtors. Another great way to reach out to realtors is go to realtor.com, go to zillow.com, go to Trulia, Redfin. They will list all of the listings in the area. Simply pull the list and start calling, smiling and dialing, baby. Not the most creative, but man, it works.

And so that's a way to just start getting into in front of realtors, right? Hard money lenders, same thing. Start using Google. Leverage your title company. Google hard money, you know, Phoenix, Arizona. Real estate hard money, Phoenix, Arizona. All of a sudden, you'll get two or three. You start talking to them. You get in front of them. You go to a cup of coffee from them. None of this is rocket science. You know, it's literally you got to put in the work and some of it is grunt work. It's not always sexy and flashy, but you got to get out there and, you know, put in that work, finding other wholesalers. That's a matter of networking, right? That's a matter of going to your REIA groups,

going to your meetup groups. In fact, my meetup group is tonight. I'm at 630 and I have, I think, 33 people that have RSVP'd. And so being a part of that room and networking within those rooms, meetup.com is an incredible way to find other investors, right? It really is a matter of the way I always paint the picture, Kent, is you're going to spend money or you're going to spend time, but you're going to spend something. So for me, especially if you're just getting started, you need to be spending your time. You need to be out there grinding, right? You need to be networking with as many people as possible. And I was once told really early on in this game is not every meeting and not every relationship is going to put a check in your pocket immediately. But if you build that relationship, inevitably, you will start collecting checks. And so that's just really important for you to understand. You got to put

in your work. There's nothing too overly creative about that, right? It's putting in the work. No doubt. At the end of the day, guys, I mean, you have to decide where the weak areas are that you're trying to address. What's the best way to go about it? And approaching other people and partnerships, potentially partnerships, is critical. I mean, I just don't think you have the option. Again, if you think you're just going to lay around and not have to actually work for this, you are sadly, sadly mistaken. If you're going to lay around and think that it's going to be easier to sit in a room by yourself than it will be if you just go off and find the people that can help you to get

to the next level, you're crazy. I mean, think about it for a moment. Part of the reason you're here now is to leverage us. Right. Right. I mean, the the reason you're here now is to leverage us. Right. Right. Right. I mean, the entire reason you're here is because you are trying to move quickly to the head of the line and figure out how to do deals quickly. You're basically trying to learn through our wisdom, our experience, our insight, and our education. So you already understand the power of leverage because you're trying to do it right now. Absolutely. There's no doubt. And listen, at the end of the day, you guys know my story. You guys have been following and listening for a long time. I literally came from nothing, right? And I am now literally business partners with Kent, who he and his family are doing over 650 deals a year. Holy hell. Right. Because I was willing to put in the

effort. Like I can't, I tell the story all the time about how I just annoyed you to death to go have a cup of coffee with me until you finally said, fine, right, man, Jesus, buddy. All right, let's have a cup of coffee. Right. And that's what it took. And I just knew it, right? I couldn't, I wasn't going to woo Kent any other way. I didn't have money. I wasn't going to be impressing him. But I knew if I could just grind him down and just wear your ass out, dude, I could paint a vision and you could get to know me a little bit and figure out if there's something that we could do together, right?

And that's led to something really special over the last four or five years here, right? Almost six, actually, come to think of it. Amen, dude. And that's what it takes. You know, I it takes. You got to call the realtors. It's not fun. I get it. I'm not sitting here telling you, dude, it's easy. It's this thing. And every call you're going to make, you're going to make all this. No, it's not easy. They're going to tell you no. They're going to say they can't help you, right? You're going to call other investors who are unwilling to work with you, who do not have an abundance mentality, who thinks their shit doesn't stink and they're

the best. You're going to find hard money lenders that just are hardballing you and aren't willing to work. That happens, but you have to put that effort in. You have to put that grind in because it just takes one, right? It just takes one relationship. It takes one hard money lender, one title company, one agent to get your first deal or maybe to get an extra deal a month, right? We're not talking about blowing the world up and doing crazy numbers. We're talking about how do you get your first deal, right? Or how do you get an extra deal a month? You know, I'm using the example of this month. We're closing four extra deals because of our relationships with other investors. It's life-changing.

Love it, man. It's life-changing. Love it. And you're totally dead on. Yeah. Yeah. And it just goes to close the circle, man. Now we have a relationship with Sean Terry. That's incredibly powerful. And, and, and, you know, we're able to affect so many more people and impact so many more people. And, uh, it's just, you know, you got to put forth the effort and it's not always about, you know, wooing someone or being flashy and salesy. And this big thing is about being real, letting people know your vision, where you are, where you want to go, how you're going to do it. Lay it out there, right? It's

not everyone's going to pick it up, but the right person is, the right business is, the right relationship is, and you're going to be able to see some results from that. And you just got to go out there and put it out there. And ultimately, if you do that long enough, those paychecks will come, but you got to go out there and put in the work. And ultimately, if you do that long enough, those paychecks will come. But you got to go out there and put in the work. That's for sure, man. I love it, dude. Love it. Great topic. Yeah. All right. Well, listen, that's what we got today, guys. Again, we get calls, emails, private Facebook messages about mentoring or talking closer to our team about what that would look like, go to alliancewithkent.com.

Go fill out an application. Our team will get with you if you are interested in working with Kent, myself, or our team, alliancewithkent.com. Besides that, make sure also if this is your first time listening, we have a free ebook on the scienceofflipping.com. It's the 15 most costly mistakes an investor can make in today's market, right? And so that's compiled by myself and Kent and several other of our friends that are heavily invested in real estate investing. And these are the mistakes that we've made, right? These are not try to avoid. This is like, man, these are mistakes that we've made and we'll never do again. So it's absolutely free. Scienceofflipping.com, free ebook about the 15 most costly mistakes. Besides that, Kent, you got anything to leave

these guys with? Time is now, baby. Jump in. Let's go. Let's do it. Let's do it. Let's do it. All right, y'all. That's it. We're out of here. See you on the next episode. Peace. Hey, you. Yeah, you. I want to know what you think about the show. Subscribe and leave a comment. I'm making this show for you, the listener. So please tell me how I can make this better for you.