The Science of Flipping - How to Open A Virtual Real Estate Market

Episode Date: December 14, 2020

Ever wondered what it'd be like to open your business in another market far away from yours? Is it easy? Is it difficult? How do I see the houses or learn the market? I got all of that covered for you here!

Yo, yo, what's up, everybody? Welcome back to the Science of Flipping podcast. I am your host, Justin Colby, and this show is all about the tools, systems, strategies, implementations, processes you can implement into your business right away and start executing to build a very successful real estate investing company. If you have not yet been over to the science of flipping.com, please feel free to go over there. There's a ton of free resources at the science of flipping.com. And if you have not yet watched each and every daily video on YouTube, get to the YouTube channel, youtube.com forward slash Justin Colby, start watching those videos as well. With that said, let's talk about opening up a new virtual market. I have a client, a student of mine who is going to open up a virtual market where he

doesn't know anyone. He has no connections and he wanted to know the general gist of what he needs to be looking for in the sense of people, personnel, properties, and otherwise marketing. And so within this short podcast, I'm going to do my best to teach you what I was able to teach him and he is off and running. And so the first thing is you do not need to go build a team out in a new market. I am doing virtual wholesaling in Oklahoma City right now as I'm recording this, and I do not have a team. I took my team here locally, and if you are a solopreneur, you will be doing this, and I started networking virtually through Facebook groups. I then also networked virtually through meetup.com. There are plenty of meetup groups in these markets. And I just started asking around. Now, because this isn't a visual episode,

you're not able to see what I do in these groups. But essentially, I'm looking for both buyers and wholesalers in that market. Now, why do I want both? That's because I want to make sure that, A, I can wholesale to good buyers, but also I want wholesalers when I do have a deal and let's just say my buyers list doesn't move on those deals, I want to make sure there are also other people I can tap on to potentially try to get it sold

and split some profits because I want to make sure I'm monetizing every single deal that I get, even if I'm not up and have the biggest, baddest buyers list yet. I want to make sure that I have a relationship with someone so that they can sell my deal. So I'm networking with both in these groups. I'm being fully transparent. I'm telling them I'm doing direct to seller marketing. I'm looking to, you know, buy and sell homes specifically, mostly in the wholesale space. However, if a good deal does come across, we will buy it and wholetail it. And then I want to make sure that I'm finding buyers that are looking in the areas, right? Depending upon where my marketing will be, buyers are looking in those areas. And then as far as the wholesalers, I want to make sure that they are also doing direct to homeowner marketing because I don't want them to be daisy chaining my stuff when I'm out of market, right? So I want them to be, you know, their reputation. I want them to have a great reputation. I want to know more about their business. I want them to be, you know, their, their reputation. I want them to have a great reputation. I want to know more about their business. I want to know that they've been doing

this for some time, because again, what I will ultimately be doing is I'm going to be leveraging their buyers list. Right. And, and I hope not to have to do that often. I hope I build a great buyers list myself, but as I just mentioned, I'm, I'm more than happy to, you know, give someone three, four, $5,000 to sell a deal where I could potentially make five, six, seven, $8,000, right? I don't tend to do a 50-50 split if it's absolutely, you know, I will do it if I have to, I guess is the best way to say that. But I don't always, with that. I would say, hey, if you area, we do a lot of fee-based stuff. So I'm happy to give you a $2,000 or $3,000 fee to get it sold, etc. Now, here's the other thing

that I would say is when you start to build your buyers list, you can also have similar conversations with those direct wholesalers and say, hey, my buyers are hounding me for more properties. I've done a great job building my buyers list, but is there any deals that you have that I potentially could sell for two or $3,000 flat fee to my buyers? Because my buyers are hounding me now. And if you're willing to do that, then I will send your deals to them. So now you have, you know, the best of all worlds, right? You have an opportunity to start co wholesaling, which is free, right? But then you also have your buyers that you're continuing to build.

And you have wholesalers that you could potentially leverage if your buyers list is not moving on your deal yet. Now, what I told my student in the advice I'm giving you, if you can start out by co-wholesaling out of the gates, always going to be preferred because there's no cost. If you do have a marketing budget, I would always encourage you to be jumping into cold calling first and or text messaging or doing both simultaneously. It is the fastest way to get people on the phone. It is the best way you can actually get deals done. So I'm always going to say that should be your leading marketing strategy in any new market. It will teach you the

market the fastest. And lastly, and again, I was able to have quite a long conversation with my student and whatnot. But lastly, I would tell you is you need to make a volume of offers, right? If you are bringing in 30 leads, you need to be making 10 offers and you should be able to get one deal out of those 10 offers, right? And that's something that a lot of people don't track is they just know, they just say, Oh, my leads aren't great, or I can't find deals. And then I just asked one simple question, which is how many actual real emailed or docu signed or mailed offers did you give? And almost always, no one knows the answer or the number is drastically too low. And for those that don't

know the answer is because they know that it's going to be lower than I'm going to tell them. And then I'm just going to say, well, you're not making enough offers. When you go into a market, make a lot of offers, be okay with, you know, having to fall out of 50% of your offers. That's okay because you're not yet intimate with that market. And that's going to be natural until you really dial in that market and you're able to understand the market better, price points that buyers are buying, having a better buyers list in that market, et cetera. So again, 30 leads come in your door, 10 offers out of the 10 offers, one deal. That's your quota. That's what you got to go do.

And then the secret is to actually take action. Take massive action. This is why people win in our space. This is why when I give advice and I have all my students, they're able to win and have great businesses moving forward is because I force them to take action. I hold them accountable to take action, just like I need to hold you accountable to take action. If you do want to potentially talk about being a student of mine, I'd love to do that.

Just go to thescienceflipping.com. Go to the business strategy session. I personally will jump on a call with you, figure out if you'd be a good fit or we would be a good fit together. And we can move forward from there. But I will say this. Everyone who is a successful student is ready to take action. They're tired of being mediocre. They're tired of not having the income that they deserve. Those are great fits. And those are the people that win. That's how you win at this business. leave it this. Tony Robbins says, people overestimate what you can do in one year and underestimate what you can do in 10. That is never more true than in the real estate space. Make sure you have some patience, fortitude, persistence. It will only do you well.

Again, guys, if you have not yet watched all my videos over on YouTube, go to youtube.com for slash Justin Colby. Otherwise, head over to the science of flipping.com. You have plenty of free resources as well as you can sign up for a free business strategy session. Love to jump on a call with you guys. Hope this helped and peace out until another podcast later.