The Science of Flipping - Increase Your Marketing Budget For Free

Episode Date: January 12, 2021

Increase Your Marketing Budget For Free

What is up? What is up, everybody? Welcome back to the Science of Flipping podcast. I am your host, Justin Colby, and it is a beautiful day today. I hope this finds you well. If this happens to be the first time you have reached this channel, this podcast, then just know that this is all things real estate investing. I'm going to be talking about tools, systems, strategies, processes, and everything in between to make sure that you have a very profitable real estate investing business, including creating an ATM type of business that ultimately could lead to massive wealth. Most people have a challenge to increase their marketing budget to get more deals done, specifically in the wholesale model. I want to jump into that here on this episode. But before I get into that episode or this episode, I want you guys all to go in and check out my YouTube channel, youtube.com forward slash Justin Colby. I drop daily videos right there on YouTube. Go to YouTube forward slash Justin Colby. All those episodes or all those videos,

I should say, are all about business, real estate, and entrepreneurship. You will get a ton from those videos. Now, let's talk about the exciting strategy of creating an ATM business that brings in free money so that you can put that money into your marketing to get more deals. Now I've talked to thousands, if not tens of thousands of investors across the nation. And more often than not, the number one challenge I hear is that they can't increase their marketing budget. They may only have $500 a month or $1,000 a month. Well, I'm here to tell you and teach you how to actually execute on a business. I'm currently running right now doing 10 to 20 deals a month that I do not pay for any marketing and I roll in those profits into increasing my marketing budget. Now, it isn't

terribly creative. You've probably heard me talk about it on other episodes. You likely have even seen it on my YouTube channel or heard people talk about it. However, it is very real and very easy to execute. Essentially what I do and what you should be doing is co-wholesaling with other investors. You need to be focusing on your buyers list. Your buyers list will be everything in this model. If you have a great buyers list, you will be able to move properties others can't. Now, as you are working on your buyers list, you are also reaching out to agents and investors alike saying, Hey, if, if they're an investor, I have buyers looking to buy more deals than I can possibly provide them. Would you mind if I sent your property out to my buyers? Uh, they would love me. You get the deal that you,

you know, you sell the deal you want want and i'll just take a small fee in the deal so that is a kind of reframing of co-wholesaling where a lot of people mark the property up i don't do that i keep it at the same price as the other wholesaler and then i just take a small fee in the middle now that is probably the most volumous, if that's even a word, volumous. I do the most volume of deals is what I'm trying to say there through that model. However, I also leverage heavily agents who bring me deals that are off market that they really can't list. Now, if you really think about this, agents are also trying to find their own business. They're trying to find their own listings. So they're out there marketing, they're out there canvassing, and, you know, they're coming across

certain sellers that do want to sell, but may not be the perfect listing for the agent. And so what I do is I talk to them about, hey, you know, bring me into this deal. I'll make sure you get paid a commission here, uh, upwards to all 3% that you're looking for as long as I can buy it. And so, you know, one deal I'll give you as a kind of a testimony of, of what we just closed was a mom that, uh, had an autistic son and she needed to get her son into the right school system. And that school system was not where her house was. She needed to get a new house in the school system. She had the new house all picked out. She could not sell her home fast enough. The agent came to me and simply said, would you be able to close on this in seven days? If so, then you'll have yourself a nice deal

because the, the, the owner and the mother is essentially desperate for her son to get in the school system. I said, let me take a look. We made the offer. The seller took it. She thought we were a godsend. The agent got a full commission on it and we were able to get the home and wholesale it all within seven days for a $10,000 wholesale fee. And that is how you take that $10,000 and you roll that right into marketing. Now, I know you're thinking, well, that seems really easy. And guess what? It is. It's just, you have to be absolutely consistent at reaching out to realtors or investors alike and trying to get deals that are off market. Now, this is something we do every day in our business. And that's why we have the volume and success that we have.

But if you're out there thinking like, I need to get more marketing, do more deals, this is the strategy. This is what you need to be doing. Now, you also could make a good amount of money. I mean, we do very well in this model. And this could be your entire model. Maybe you don't go put money into marketing and maybe put it in your bank account. And that's totally fine too. I am just, you know, the principle I am talking about makes a lot of money. So if you want to do a bigger business and do more deals and find bigger,

better deals, and maybe start into flipping and potentially keeping some, this is a great free way to do that. So again, if you're making 20 or 30 or $40,000 a month, like we are in this model, then I would tell you, it's up to you. I think you take a chunk of that and you start spending it. Spend 10 grand a month on marketing, put 10 grand a month in your pocket. And then everything that you do from that marketing spend, let's say that you go and do a $30,000 wholesale fee. Well, it was free. You didn't take any money out of your own pocket to go get that deal or spend on marketing. It came from the free deals you were doing. I treat this business like that is my ATM that just prints money for me. And that money then gets to go back into the business and create more money. It is, in my opinion, probably the most

beautiful business model of all time. And if you leverage that with one of my past podcasts, talking about how to be a happy landlord, you will really see that like you create the cash and then you can create wealth in a very, very short amount of time. So again, if this is your first time here, welcome, go to the science of flipping.com. A lot of free resources there. In fact, you can even jump on the phone with me or any of my teammates to see if we can answer further your questions. The science of flipping dot com. A ton of free resources. But again, check out my YouTube channel.

Daily videos. No one's doing that anymore, man. I'm just here to give. So daily podcast, daily videos. I'm here to give. I hope you're well. And we will talk to you on the next episode. Peace.