The Science of Flipping - How Much Does Wholesaling Real Estate Cost?

Starting point is 00:00:00 What's up guys? Welcome back to the Science of Flipping podcast. I am your host, Justin Colby, and if you are listening to this on iTunes or Spotify or any other platform that you're simply listening, then I'd also encourage you to get over to youtube.com forward slash Justin Colby as I actually record videos to these podcasts. You can listen to it on iTunes, but you can actually watch me and all my crazy hand movements and engage with me right over there on youtube.com forward slash Justin Colby. All right, so I'm actually going to take this episode and answer a very simple question, but it's a question that's really important to the majority of you. And that is, how much does it really cost to become a real estate investing wholesaler? And it's a question that's important because a lot

Starting point is 00:01:07 of people, you know, they watch YouTube, they listen to podcasts, and they hear all the gurus and do-roos, and several of us out there are do-roos, like myself. I'm a do-roo. I do real estate, and I teach it. Several, you know, people will say, you know, well, I heard you got to do direct mail and you got to do cold calling, you got to skip trace and you need prop stream and you need, and you need, and you need. And a lot of people are like, I don't have a whole lot of money to spend on becoming a successful real estate wholesaler. And I'll tell you right now, this moment, that is okay. If you have $250 a month, you can be a successful real estate wholesaler. Now, if you have more, it only helps. I want to be clear. The more money you can spend on yourself and in your business, typically, as long as you're doing it in the right ways and in the right

Starting point is 00:02:03 strategies, it will only help you gain traction faster. You'll only go further faster. So let's break this down a little bit, right? I spend tens and tens and tens of thousands of dollars every single month finding deals, marketing, having an operation, having an office. So I spend my money, but I also do anywhere from 10 to 20 deals a month. So that's a different operation than most of you are actually trying to get started doing, or even maybe trying to get more consistent at. I'll tell you right now, the way I got my first deal as a wholesaler was just banging the phones, calling realtors.

Starting point is 00:02:44 I called 100 realtors a day. Do you know how much that cost me? Zero dollars. You guessed it. Zero dollars. I teach individuals that have less than a $500 a month budget for their marketing, and they are getting deals. There are strategies. One of them I have termed the inverse profit method. That is my own term is trademarked the whole thing. I actually know by the way, it isn't trademarked. Don't go trademark it if you're listening to this. But the point being is I created that because there is a way to make money without having to spend it. As I mentioned, most of you guys are listening to podcasts and watching YouTube videos and you're watching everyone say you got to do this and you got to do this and it all costs money.

Starting point is 00:03:27 The number one most important thing I can tell anyone to have, tool, system, strategy, the number one tool I will say someone needs is PropStream. If you go to tsofdata.com and that's T S O F data.com stands for the science of flipping and use promo code T S O F. They will give you seven days free and they will allow you to download 10,000 people list. If you just go to T S O F data.com use promo code T S O F. They will give that to you. Now, why that's so important is because that is the tool I use for comping. Now, the key here is understanding the value of homes, but also that's the same tool I use to pull lists. Not only are there really good

Starting point is 00:04:15 motivated seller lists on there, there are also buyers lists on there. And so that's really important because one of the key elements in the inverse profit method is the fact that you need to have good buyers. And if there's a list of buyers on there, then you can find them, you can skip trace them, you can call them, you can send a mail and simply get in front of those buyers so that you have better buyers than everybody else.

Starting point is 00:04:41 So that is the one tool that I say everyone must have. And after your seven days for free, they charge you, I think it's $97 a month. And that's why I say, if you have $250 or less, you can be a real estate wholesaler. You just need to put in the time. The key that I tell everybody is you're going to spend money or you're going to spend time, or like everybody is you're gonna spend money or you're gonna spend time or like me you're gonna spend both but something is gonna be spent so if you don't have the money then that you have to be spending the time to be successful now the challenge I see these days when talking to students and and people like is they actually everyone wants wants it now, right? Well, I don't have

Starting point is 00:05:25 much money, but I have, you know, time. So I want to go get a deal in 30 days. Well, that is great. And some people get that done, but the challenge is they don't have any direction on what they should be doing, right? I talk a lot about this. In fact, I just did a YouTube video about coaching, the value of coaching. And yes, I'm a coach, and this isn't a selfless plug by any means. Everyone needs coaching. If you're just getting started as a wholesaler, you need to have coaching because you've never played that game.

Starting point is 00:05:57 It'd be like me going over and playing cricket, right? I don't know how to play cricket. So I would want to get coached to play cricket, especially if I wanted't know how to play cricket. So I would want to get coached to be play cricket, especially if I wanted to be an expert cricket player. Okay. Now this is a funny analogy. It was the first thing that came to my head, but that's the idea is if it's not me, and hopefully it is mean, if you are interested in me coaching you go to the science of flipping.com, fill out a simple application. Some of my success advisors will contact you and see if I'm the right fit.

Starting point is 00:06:28 And I would love to coach you. I'd love to get you to where you wanna go. But even if it's not me, you need somebody. Someone needs to show you the path. Someone needs to give you the recipe on how to become successful. And so you don't need a lot of money. You know, I just said, if you had under $250 a month, could you be a successful wholesaler? Yes. Now, when you do start

Starting point is 00:06:53 doing deals, then yeah, you might want to put a little bit more money into marketing and start putting some gas on the whole thing, right? Become better at getting more deals done. But you don't need a lot of money to do deals. I would tell you as a moment in time, I'm doing roughly 10 deals a month, sometimes a little less, sometimes a little more without spending a single dollar in marketing, not one. And if I can do it, you can do it. I just know the system. I know the path. I know the strategy, right? And that's where coaching comes in, right? But I'll say all of that to simply say, you, no matter what,

Starting point is 00:07:30 no matter what your finances are, if you are committed, you will succeed. If you are patient, you will succeed. If you're determined, you will succeed. And if you have the right blueprint, you will succeed. As I was just mentioning and kind of got lost in my own thought, a lot of people want something done right now. I need my first deal in 30 days. And then if it doesn't happen, they give up, they quit or whatever, or they change their

Starting point is 00:07:58 strategy. They change doing what they need to be doing. Consistency and persistence is going to be key. You can't give up. I tell my students all the time, the only way you fail is if you give up. Otherwise, I got you. So to be a successful wholesaler, you just need to make sure you have some of the intangibles, right? Which is the persistence, which is the patience, not enough values given to patience, which is the strategy, which is the determination, the ability to fail and get back up. I can't tell you how many times after 14 years I have failed. I have failed over and over again, right? And Michael Jordan has this really great meme out there somewhere about all the shots he missed, about all the games he lost, but all the times he failed. And it's a lot.

Starting point is 00:08:49 Like, you're like, wow. If you really look at it, you're actually quite shocked about all those times. But then he just kept going, right? And that's the idea. It's just like Michael Jordan. I've failed plenty. And you will fail. But you just need to get back up and keep going. The only thing that

Starting point is 00:09:05 stops us as real estate investors or in general, entrepreneurs in general, is just giving up and stopping. And so I would encourage you, if you're passionate about this, you like this, then get in the game. Put on your helmet, put on your shoulder pad, get in the game. You do not, I do 10 deals a month without a dollar in marketing not a dollar if I can do it You can do it. That is a fact And so hopefully if you are watching this on YouTube You've already smashed that like button and you have subscribed if you have not and you're over on iTunes then get over to YouTube Smash the like button subscribe to my channel youtube.com forward slash

Starting point is 00:09:41 Justin Colby and I look forward to seeing you guys on the next podcast peace

The Science of Flipping - How Much Does Wholesaling Real Estate Cost?

There aren't comments yet for this episode. Click on any sentence in the transcript to leave a comment.