The Science of Flipping - I'm BULLISH on Real Estate | Housing Market Update 2023

Episode Date: February 1, 2023

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This economy right now, unlike the last, let's just call it five years, has created a lot of opportunity for us in real estate. A lot. More now is it a more opportune time to find people that are in pain, right? That really could use our help as real estate investors. Everyone wins in that scenario. And I highlight that for this episode because there's going to be a lot more of that opportunity. Yo, yo, welcome back to the Science of Flipping podcast. I am your host, Justin Colby.

And as always, as we start, we are giving a big shout out to MinutePages.com, our main sponsor here on the Science of Flipping. They will get you a very professional website. If you're a real estate investor, if you're a real estate agent, and you do not have a presence investor, if you're a real estate agent and you do not have a presence online, for $97 a month, you will have the most professional website there is out there. Again, go to MinutePages.com. All right, welcome back to the Science of Flipping. This episode is actually because I've been asked one question a lot, and that is, what am I doing? How am I seeing the future?

What is happening in real estate? What actions am I taking in this real estate market, right, in this economy? And so I'm getting versions of that question, but just, they're asking me basically, what do you see to be the future? What is happening right now? What am I doing to either protect myself or take advantage of opportunities or pivot? So I'm going to answer

some of this stuff for you guys right here on this episode of what I'm actively doing right now in 2023, what you guys can be doing, some opportunities you guys are going to have out there because I, for one, am very bullish on the market., I know that sounds a little crazy. Many of you guys out there listen and watch news a lot. I get it. I don't, but I can tell you, yes, inflation is real. Yes, there is a recession, but are there? I was just spending a decent amount of time with Brad Lee and he was like, yeah, you go into the Gucci store and the Louis store and the Rolex store. You can't even get in. There's lines outside the door, right? There's no watches available to buy. People are spending money.

So it is a little bit interesting. But here's the things that I'm looking at right now. Because I am bullish of this economy, this economy right now, unlike the last, let's just call it five years, has created a lot of opportunity for us in real estate. A lot more now is it a more opportune time to find people that are in pain, right? That really could use our help as real estate investors. I bring up a property I just bought as a rental for myself, which is kind of point number one, I would say in this episode that I bought it from a student. I taught and trained him how to do creative financing. He contracted the deal, sold it to me subject to. He made $8,500 as a wholesaler.

I bought a rental and get the depreciation from it. The seller was going to lose the home to foreclosure. Everyone wins in that scenario. And I highlight that for this episode because there's going to be a lot more of that opportunity. No, I do not believe there's going to be a lot more of that opportunity. No, I do not believe there's going to be a foreclosure wave. I do not going to believe that there's going to be, you know, tens of thousands, hundreds of thousands of home hitting the market. I believe the big banks are golfing with the big hedge funds. And quite literally,

when something happens, if there is a extreme event, the big banks call the big hedge funds and they say, hey, can you take 2000 doors? Because they're about to go to foreclosure. We're about to take them back on our balance sheet. And Blackstone or whoever will say, yep, sure will, right? And cut the check. So I don't believe we're going to see some catastrophic thing that we saw in 2008 at all. And to some extent, I've already started to be proven right. If you go back to any of my other videos, I've been saying this for a while that there's no big tsunami of foreclosures. There's not going to be this big meltdown. Have we experienced some correction? Yes, but I don't believe it's going to get crazy, but you're still going to have a lot of opportunity

to be able to increase your rental portfolio. The biggest mistake I've said this over and over again, the biggest mistake I have ever made in my career is not the millions I've lost in deals. It is not buying rentals from day one. That is the biggest mistake. So I will tell you, if you are out there on the periphery, listening to everyone's podcast, watching everyone's YouTube video, whatever the case may be, but you're not actively in real estate, this is your chance right now. This is the second coming of 2008. Get in the game, hire a coach, get a mentor,

get in the game and actively participate because this is gonna be your game changer. I promise you that. And I would tell you, if you aren't, you know, listen, go to justincolby.tv. There is a ton of free advice I give away there. Go subscribe to justincolby.tv. Go subscribe.

There's a ton of advice there for you to get going into this space. With that being said, the other things that I am seeing as opportunities out there besides just rentals, and by the way, one other point I would just wanted to bring up to that. I swear every week I don't pay attention to news, but I do have social media. So you see headlines, whether it's Google, Amazon, Facebook, Intel, you name the name Salesforce. I swear every week there's some massive company having a mass layoff right 10,000

people plus each time so that's going to create a lot of financial pain right now and we as real estate investors have the opportunity to help those individuals and that is why i highlight the rental i bought that homeowner would have had a foreclosure on the record. I was able to step in, keep their loan in place, catch up their loan, get it back to current, and then everyone wins in that scenario. There's gonna be a lot of that. So I'd encourage you, if you haven't been coached on how to create creative finance deals,

whether a sub two or a wrap or a note, novation or otherwise, you need to be coached on that. You can find me anywhere. You can hit me up on Instagram, thejustincolby, and let me know you're interested in coaching. I'm happy to do that. So again, this is an opportunity for all of us. The other thing that I see as an opportunity

is there's a lot of people out there that have a lot of equity in their homes, right? They have a lot of money sitting in the bank account. They have dead 401ks, IRAs, dead. Like literally it's just sitting there losing money. And there's a lot of ways to make money in this time, right? I say that because quite literally, I have a fund. It's a real estate investment fund. If you're interested actually in being investor in the fund, I would love to hear from you. Just go over to the Justin Colby on Instagram, the Justin Colby, send me a message, say I'm interested in being an investor in your fund. I'd love to have a conversation,

see where that goes. But the reason why I bring that up is because quite literally last week, I got a letter from my lender. I bought my home last year in October in Miami. And I have so much equity from not just the down payment, but from the appreciation that we've experienced over the year. They're offering me like a $400,000 HELOC, right? $400,000 in a HELOC. So I called them and you know, it's obviously a little bit of a marketing thing and I could get the money, but it's not as, not as pretty as they make it out to sound, right? So I'm contemplating, but here's why I'm contemplating it. Because even in my fund, I can go make a higher return in my fund than the HELOC's interest. So think about that.

The equity sitting in my home is just sitting here. It's just dead money sitting in a house, not doing anything, not helping me or my family at all. But based around the interest rate of the HELOC and based around what my fund is actually giving investors actively, I can arbitrage the two and be in more real estate deals and have more money flowing in and out

and making more personal money than I had previously. So I bring that to say, there's a lot of equity in people's homes. There's a lot of dead money out there, meaning like 401ks, you know, old retirement plans that the money's just sitting there. There's a lot of people that have money in the savings account, which is crazy to me. Right. And so there's a lot, whether it's my fund or other funds or, you know, listen, um, one of my good friends, Chris Noggle does, um, whole life insurance policies. I have several of those. I put money into it. It continues to compound interest and grow. There's a lot. And I mean a lot of opportunity that is around us right now. And too often the

news is bogarting our attention and taking away the attention from actually the opportunity. They just wanna talk about how scary things are. So I'd encourage you, first of all, feel free to reach out to me, thejustincolby on Instagram. And by the way, there's a lot of fake accounts out there. Let me just make this clear.

There's a lot. I mean, it's bad. If you guys follow me and you get a message talking about cryptocurrency or selling crypto or whatever the heck, that is not me. Okay. That is not me. Delete the account, report the account, do not follow it. You know, my account has something as I record this episode, something like 94,000 followers on Instagram. That is me and reach out to me, right? I want to talk to you guys, right? If you are interested in the fund, that is me and reach out to me, right? I want to talk to you guys, right? If you are interested in the fund, that is an opportunity, but there's a lot of this

opportunity that's going on right now. And people just aren't financially literate. They don't have a coach. They don't have someone telling them this stuff, right? So quite literally last week, I called my bank. And like I said, I'm going to kind of look at the path. It was a marketing letter. So it got my intrigue, but it's the same bank I have my loan with so I'm kind of like there may not be two it may be worth it is my point But there's things that you guys can do their strategies you guys can make buying rentals Investing in things like a fund that can give you a return, you know The the going into a whole life insurance policy that can give you a return, you know, the going into a whole life insurance policy that can give you compound interest. You just need to know what the opportunities are.

It is not as bleak as what the news is going to make it sound. But what I'm doing, I'm playing the real estate game heavily. Like I said, I have a fund. I'm buying rentals. I'm flipping and wholesaling actively across the nation. So if you guys are interested in any of that, just reach out to me. I would love to talk to you about any and all of what I've talked about here on this episode. But I am very bullish on what's happening right now. I hope you guys are too. I think it takes a little mental training

for you guys to understand all the opportunities that are out there, but that's why I'm here. That's why I do this episode. That's why I do this podcast. Again, go to justincolby.tv. Make sure you subscribe. Drop a five-star review on this podcast. iTunes loves that.

And then hit me up on Instagram, thejustincolby, and we'll chat. Peace.