The Science of Flipping - How To Buy Foreclosure Homes

Episode Date: July 20, 2021

The #1 training and coaching system to launch, grow, and scale your investing business!𝐋𝐞𝐚𝐫𝐧 𝐌𝐨𝐫𝐞: http://www.thescienceofflipping.com Become a 𝐓𝐒𝐎𝐅 𝐈𝐍��𝐈𝐃𝐄𝐑 and get access to exclusive training and resources:https://insider.thescienceofflipping.com 𝐈𝐍𝐒𝐈𝐃𝐄𝐑𝐒 𝐆𝐄𝐓 𝐅𝐑𝐄𝐄 𝐀𝐂𝐂𝐄𝐒𝐒 𝐓𝐎: ✔️ Science of Flipping Academy  ✔️ All the systems and software I use in my business✔️ All the tools you need to run your business ✔️ All my Scripts, Contracts, Spreadsheets✔️ Special Discounts✔️ And Much More... 𝐇𝐚𝐯𝐞 𝐚 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧?Get immediately connected with a team member on messenger:http://split.to/tsof-messenger 𝐁𝐞𝐬𝐭 𝐑𝐞𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐅𝐨𝐫 𝐖𝐡𝐨𝐥𝐞𝐬𝐚𝐥𝐞𝐫𝐬✅ 𝐁𝐞𝐬𝐭 𝐑𝐞𝐚𝐥 𝐄𝐬𝐭𝐚𝐭𝐞 𝐒𝐨𝐟𝐭𝐰𝐚𝐫𝐞: http://bit.ly/tsofsoftware✅ 𝐁𝐞𝐬𝐭 𝐃𝐫𝐢𝐯𝐢𝐧𝐠 𝐟𝐨𝐫 𝐃𝐨𝐥𝐥𝐚𝐫𝐬 𝐀𝐩𝐩: http://bit.ly/tsofd4d✅ 𝐁𝐞𝐬𝐭 𝐒𝐤𝐢𝐩 𝐓𝐫𝐚𝐜𝐢𝐧𝐠 𝐒𝐞𝐫𝐯𝐢𝐜𝐞: http://bit.ly/tsofskiptrace✅ 𝐁𝐞𝐬𝐭 𝐓𝐞𝐱𝐭 𝐁𝐥𝐚𝐬𝐭𝐢𝐧𝐠: http://bit.ly/tsoftext✅ 𝐁𝐞𝐬𝐭 𝐃𝐢𝐫𝐞𝐜𝐭 𝐌𝐚𝐢𝐥 𝐒𝐞𝐫𝐯𝐢𝐜𝐞:: http://bit.ly/tsofmail✅ 𝐁𝐞𝐬𝐭 𝐃𝐚𝐭𝐚 𝐏𝐫𝐨𝐯𝐢𝐝𝐞𝐫: http://bit.ly/tsofdata 𝑾𝒉𝒂𝒕 𝒕𝒉𝒆 𝑷𝒓𝒐𝒔 𝑯𝒂𝒗𝒆 𝑻𝒐 𝑺𝒂𝒚 𝑨𝒃𝒐𝒖𝒕 𝑱𝒖𝒔𝒕𝒊𝒏: “Justin is one of the best trainers in this space. He really gives everything to his tribe.”– Brent Daniels (TTP) “Justin’s ability to connect with people and help them understand what he is teaching, is unparallelled”– Kent Clothier (REWW) “We have been in the trenches flipping homes in Phoenix for over a decade, he is one of the best to do it.”– Sean Terry (Flip2Freedom) 𝐀𝐛𝐨𝐮𝐭 𝐉𝐮𝐬𝐭𝐢𝐧:Justin Colby is the founder of The Science of Flipping Podcast and The Science of Flipping Coaching Program and is an active Real Estate investor having flipped over 1500 homes in multiple markets across the U.S. Justin runs an 8-figure real estate wholesaling business that closes 20+ deals each month in multiple markets across the U.S and has helped 1000s of clients learn how to become successful real estate investors. Justin subscribes to the philosophy of "Wholesaling To Wealth" and is the foundation of his coaching program which teaches you how to get started wholesaling or streamline and scale an existing wholesaling business as well as build long term wealth through wholesaling, flipping, and building a rental portfolio. Subscribe To Justin Colby:http://youtube.com/justincolby View All My Videos:https://www.youtube.com/c/JustinColby/videos  

Right this moment, this episode, it may not have as much weight as it will in maybe coming weeks or coming months as there is inevitably going to be some sort up? Welcome back to the Science of Flipping podcast. I am your host, Justin Colby. And on this episode, we want to talk about foreclosures because, listen, it has been, quite honestly, the topic of discussion for over a year and a half. Well, since COVID started, everyone has been talking about this foreclosure. It's about to happen. It's about to happen. It's gonna happen.

The market's gonna crash. Well, here we are and it hasn't. And I wanna talk to you guys about what to do about it because at some point it will be coming. So I want you guys to take advantage of that scenario. Now, if this is your first time at the podcast, I'd encourage you to start going through all my other podcasts. I have hundreds and hundreds of episodes here, and they're all about the right tools, systems, and operating procedures to be a successful real estate investor. I myself started 14 years ago,

if you don't know, and I was broke, busted, and disgusted, as I like to say, and I actually lost my home to foreclosure. So this episode has a very heartfelt side to it because quite honestly, I was a victim of the foreclosure mayhem back in 2007, 2008, and beyond. I know millions of others have been a victim of that back then as well. But here's the thing. The market now has been appreciating for 13, 14 years. And here we are at this crazy time where the value of homes that are all time high across the country, I myself am actually trying to buy a home in Miami and I can't, it is the craziest thing. I'm quite literally putting in full price offers. I'm,

I'm waiving contingencies, five day inspection period. And I get beat out by like hundreds of thousands of dollars and I'm giving them an offer at their asking price. It is insane right now. So let's talk about this because this podcast is all about how you can be the best wholesaler, flipper, and buy and hold investor possible. I'm currently doing roughly 20 wholesale deals a month in seven different states, countless different cities within those states. And I am trying to buy at least two to four rentals every single month. So how do we do this? And then why is foreclosures a good game plan?

Now, where do you find foreclosures? I would say the first place is I'd be looking for pre-foreclosures. And so if you have not yet gone over to tsofdata.com, tsofdata.com, it'll bring you to PropStream. It'll give you seven days for free on PropStream. Go to TSOFdata.com and put in promo code TSOF, and they will allow you to download up to 10,000 pre-foreclosure lists. Now, you can download 10,000 of any list, but because on this

podcast episode, we are talking about pre- foreclosures or foreclosures, I'd encourage you to consider downloading a pre foreclosure list on PropStream. And that will be completely free. In fact, you can use PropStream for seven days. It is the best platform there is in the real estate market. End of story. I use it every single day. Now with that, I would actually take that list and I go over to a batch skip tracing, go to T S O F batch.com and use promo code T S O F shocker. Um, and they'll give you actually 3 cents off or maybe even 4 cents at this point off of your skip tracing. They'll give you a discount because you're coming through my podcast. And so I would tell you do that, pull the list, go to tsofbatch.com,

skip trace it, use promo code TSOF, and then start calling them. Have conversations with people that are in pre-foreclosure. Now, what is pre-foreclosure? That's the first thing that you wanna know. For those that don't know yet, pre-foreclosure usually is the simple idea of the bank has a loan against the property,

they have a lien against the property. They have a lien against the property that people are not performing on that agreed upon a lien and contract. And so the bank is going to go through the foreclosure process. They're not paying their mortgage. The bank is looking to foreclose on them. Now those people still might have equity. It doesn't mean that they're going to be in a short sale scenario, which is a totally different episode and subject matter altogether. So now you might be able to get them an offer that they can actually still be able to take, not short the bank, just accept the offer and potentially even put money into their pocket. Now it is scenario by scenario, case by case, but it is a reality because of what I said just a couple

minutes ago, which is quite literally, we're at a state of the real estate market where there's so much appreciation, there's so much equity. It is very hard to think someone hasn't been paying their mortgage for so long that they actually have no more equity left. I mean, it would be just years, right? Just last 12 months alone, Phoenix, Arizona, just Phoenix, appreciated 25%, 25%. I mean, that's outrageous. A $200,000 home just gained 50% equity in one year.

So you are going to go down the path where people are gonna be upset at you because they feel victimized and, oh, you're picking on me. Well, you're actually trying to be a value to them by having this conversation, right? And so that would be the first place I go. And you don't want to have the conversation like this. You don't want to say, hey, Mr. Seller, seems like you're broke, busted, and disgusted. I heard that from Justin Colby on his podcast. You should probably sell to me because you need to. Probably not the right thing to say. Now, what could be the right thing to say? Well, here's what we say. We say, hey, Mr. Seller, I'm looking to buy an investment property in the general area. Are you thinking

about it or do you know anyone thinking about selling their home? That's what I say. I don't, I don't highlight the fact that they may be going through a foreclosure process. I don't highlight the fact that they may be missing their mortgage because that's a lot of pain. And I don't yet want to bring the pain up, not in the point of like sticking a hot poker into the pain. At some point, if they are interested in selling, that conversation comes up and I will need to know how many months behind on the mortgage they are and what their total payoff is. All of that will come out of a simple conversation with the seller so that you know and they know what the actual payoff will be. Again, there's so much equity. These homeowners might be able to

actually still put a check in their pocket at the sale of this property. Now, this is great if you're a wholesaler, it's great if you're a flipper, and it's even great if you are someone who's buying and holding for a rental property because homeowners typically keep care of their home better than anyone else. And so you're likely going to go on a property that doesn't need a massive, massive rehab, but depending upon the age of the home and in the condition it could. And so I would tell you, that's the best way. Now, can you find some of these properties on the MLS? Yes. But I think most everyone here who is in the game realizes that the MLS right now is not the best place to find great deals. Can it work? 100%. I have friends that still buy homes, investment

properties specifically that they flip and keep as rentals on the MLS, but it's not your best use of energy time as a moment in time, but it does still work. And then lastly, the foreclosure process brings you to the courthouse steps. Now here in Phoenix, that happens every single day. I know in other parts of the country, it happens once a week. And then in other parts of the country, it happens once a month and it can happen at different locations. Here in Phoenix, I've bought hundreds quite literally down at the courthouse steps. That's where they hold it. Other places hold them in different places. I would tell you, do your own research, but that is a great place to find foreclosed properties. The hurdle here as a moment in time is there's not a lot of people going

through foreclosures as there's been a foreclosure moratorium. So right this moment, this episode, it may not have as much weight as it will in maybe coming weeks or coming months as there is inevitably going to be some sort of major fallout from all these people not paying their mortgage. So hopefully this helped you guys yet. I have a lot of trainings, free trainings, totally free on my YouTube channel. If you're listening to this, I would highly encourage you go to my YouTube, which is youtube.com forward slash Justin Colby. I have a ton of free video trainings right there to help you grow your business. And as always, if you have any

interest in me coaching you directly, then I'd encourage you to go to the science flipping.com and fill out a simple application. I'll have some of my advisors talk with you about if I'm a right coach for you and we can take it from there. So hopefully you guys liked this episode. If you did show me some love, give me a five-star rating and write an incredible review because obviously it is incredible. And I'll see you guys over on my YouTube channel, youtube.com forward slash Justin Colby. Talk to you guys on the next episode. Peace. peace