The Science of Flipping - How To Pick A Virtual Real Estate Market

Episode Date: August 17, 2022

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   

I want to be in a market that is roughly 30% under the median price point. So 30% under the median price point as a moment in time is I need to be in a market that is $300,000 or less. If it is not that, then I'm not going to choose to be in that market. Yo, yo, what is up, everybody? Welcome back to the Science of Flipping podcast. I am your host, Justin Colby. And on this episode, I get asked all the time how do I pick the virtual markets that I want to be in whether I'm wholesaling flipping or even buying for my portfolio I'm gonna answer it right now on this

episode now let me take a quick moment to give a shout out to our main sponsor minute pages they are the company that i use to create credibility influence and authority in my marketplace here's the deal you are always going to be looked up online when you talk to a homeowner when you talk to an agent when you talk to anybody the first thing they do is google you if you don't have a website for your real estate investing business that is step number one must do right now minute pages calm offers you a real estate investing specific website at a fraction of the cost of what it costs to build a website. Again, go to minutepages.com. If you don't yet have a presence online,

get it now. Minutepages.com, our main sponsor. All right. So the question always becomes, how am I choosing the virtual markets to wholesale, buy rentals, or flip in? Now, my answer for a very long time was the same. and my answer still has part of that in it, but it actually has updated most recently. The first part of my answer is I first go to Privy to check what markets they're in. I do that because I want access to the MLS. The MLS is the very best way for me to analyze and comp deals so as long as privy has mls access in those markets and there's roughly 50 markets nationwide that they have mls access to then i will choose those

markets to market in to wholesale in to buy rentals in so if you go to privy TSOF privy T as in Tom S as in Sam O F as in Frank dot com and you use promo code science one you will be able to try it out for a week for a dollar now if you're serious about real estate investing I encourage you to not worry about the promo and worry about the week. It's $97 for the month, but it is the best way to choose a virtual market because it gives you access to over 50 cities and locations that you can choose, especially if you're making the decision to spend money on marketing. So now that has become my main qualifying factor. Does Privy first have access to MLS in those cities? And if it does, then I move forward with my other remaining criteria that I really look

for when choosing markets to go virtual in. The first criteria is, are there any major sports teams? That's the first criteria because there's some really smart people who have analyzed that there's an economy around a sports team. So a major baseball team, football team, basketball team, those are billion dollar companies. If they're making a decision to be in that market,

then I have to assume, based around all of the intel that they've gathered that there's a good economy there and that can likely be a good market for me to be investing in the next thing is i want to know what type of industry is there so for some cities it's going to be a motor vehicle industry for other cities it's going to be a tech industry. For other cities, it may even become a crypto industry moving forward, right? So I want to know what type of industry there. Beer brewing industry, you name it. I want to know what is there to drive further economy.

Because if there are really big companies, such as BMW moving one of their plants to develop cars in, in that market, then I would say that's probably going to drive a lot of jobs, which is going to drive an economy. And I would say that's a safe economy to be buying, wholesaling, flipping in. The next criteria I want to try to figure out is are there any military bases? Very similar type of thing. Typically military bases don't shut down. However, they have been known to shut down. So I know that there's always going to be some level of good rental economy there. Now that's important to me because even if I'm wholesaling the deal,

I want to know that there's an end buyer in place that would likely be a landlord for all of those tenants. So again, first and foremost, I have privy. I want to make sure we have MLS access so I can make sure to comp the deals the best I possibly can. MLS access is super important. Privy, TSOF.com, promo code SCIENCE1. Secondly, I wanna know if there's any major sporting teams. The more, the merrier.

So if they have all baseball, football, and basketball all in one city, even better. Then I wanna know if we have military bases there right then I want to see if there's a major college in the city and if I can get all of them Phoenix Arizona is a great market that could say all of those things there's a military base there's multiple sporting teams there's a major University all in Phoenix that is like the holy grail of something I'm saying. That is a great market to be in. Now, before we get excited and everyone goes into

Phoenix, it's also a very competitive market. Opendoor, Offerpad, and all of the hedge funds are also there. So you have a lot of the smartest people in this space also recognizing the same things. Now, in my opinion, Phoenix is priced out of a good market, meaning it's really hard to justify rentals in Phoenix proper market. The outlying markets like Maricopa, Casa Grande, all those markets, yeah, could there still be some good rentals? But Phoenix as a whole has really priced out not just the rental market, but really homeowners. And so I don't actually think Phoenix is the right market. I know you're saying, Justin, you're going against all of your criteria. I get that.

But Phoenix is an anomaly. I'm using it because it does have all of the holy grail of things that I would look for. There are a lot of markets that have this. A lot of the cities in North Carolina have this. I love Oklahoma City. Many of the cities in Florida have a lot of these same fundamentals. And lastly, and most importantly, will be as I want to be in a market that is roughly 30% under the median price point. So 30% under the median price point as a moment in time is I need to be in a market that is 300 000 or less

if it is not that then i'm not going to choose to be in that market if you're liking this information smash the like button and make sure you subscribe on youtube and if you're listening to this on itunes make sure you give me a five star review that is my criteria that's how i choose what markets to go virtual in that's why I've done so well I hope this helps you make your decision the first thing make sure you have privy so you can get make sure you have the MLS that is the first major major criteria then you have the colleges you have the military bases uh you have the sporting teams and you want to make sure you are 30 under median price point if you do all that it's a good market. You're in the game.

I would say green light. Hopefully this finds you well, and I'll see you guys on the next episode. Peace.