The Science of Flipping - Maximize Every Oppurtunity

Starting point is 00:00:00 Yo, yo, what is up, everybody? What is up? Welcome back to the Science of Flipping podcast. Merry Christmas as Christmas just passed us. I'm recording this podcast episode on a Sunday right after Christmas because I want to make sure I give you the deliverables to crush it in the new year of 2022. Most of you guys know that this podcast is all about systems, strategies, tools, and everything regarding your real estate investing business, as well as great advice

Starting point is 00:00:43 regarding being an entrepreneur and business as a whole. If you are listening to this on iTunes, I would love a five-star review. If you are not yet watching this on YouTube, get over to youtube.com forward slash Justin Colby. Subscribe to my channel. I drop great fire there and you can watch all my antics on these videos. And so go subscribe and make sure you give a thumbs up to

Starting point is 00:01:07 this video. Just look me up on YouTube, Justin Colby. Now with the housekeeping out of the way, what I want to go directly at most of you who are listening is I want to punch you right in between the eyes. And what I mean by that is I'm going to bring up this subject about wholesaling is dead. It's dead. It's over. And I'm going to keep making this point because I really want to ingrain everyone. While the definition of a wholesale deal, which is find a motivated seller and find a cash buyer and put them together and collect an assignment fee. While that is defined as a wholesale deal. That is correct. Wholesaling,

Starting point is 00:01:53 as we know it, as you've been taught it over the last 10 years, is dead. And let me tell you exactly why, so that way you guys in 2022 can crush it. You see, there's the one percenters in our space of real estate investing, right? These are the people that are actively doing deals. They're making a bunch of money. They know how to acquire, right? They know how to sell, right? They know their markets. They know a lot of different things. They have money to buy flips or novations or a whole tail.

Starting point is 00:02:18 They buy rentals. They really have the business as a whole locked and loaded. And these are the one percenters myself and so many others out there. And what I want for you is if you don't believe you're a one percenter yet, then I want you to really pay attention to this. This is going to really change the way you're thinking about our business because how you approach the business is going to basically define whether you get to this one percenter real estate investor or not. So let me break it down to you. Really, there is at best,

Starting point is 00:02:52 and I'm saying at best, 3% of the leads that you come across, and I mean at best, it's likely closer to 1% to 2% are motivated sellers, okay? Motivated that your cash offer is going to get accepted at best. So if you do your normal KPIs, you would need 100 new leads each and every month to get at very best three deals. And I'm telling you that is at best. Again, it's likely closer to the one to 2%. And even then, you need to be a very good negotiator to get them to accept a quick cash close at a pretty substantial discount for you to make any type of real money, 10 grand or more. Okay. So while you or most people, I'm going to call everyone the sheep. And this is a big shout out to my boy, Sean Whalen. Love you, brother, if you're listening to this. But I don't want you to be part of the sheep

Starting point is 00:03:50 of investors out there using the formula of 80% of ARV minus repairs minus wholesale fee, and that's your number. I don't want you to be those sheep. And the reason being is because the one percenters aren't. They understand one simple thing. If you focus on the exit strategy first, it helps you acquire the property. Well, Justin, what does that mean? Well, here's the thing. If I know whether I can buy and hold this, or if I know my market that it's a better flip than it is a buy and hold, or if I know my market is something that, you know, a very low price point. And so we can just wholesale it. And it's going to be easier if I know that maybe I want to do a novation to this because really everything in the area is

Starting point is 00:04:34 getting retail. There's no discount. So I want to do a novation. If I know how my exit process is going to work, I'm going to be a better acquisition specialist. I'm going to be a better salesperson. I'm going to be a better negotiator on the front end so that I can actually go ahead and get the deal where the other sheep won't. Okay. And so here's the thing. There's 97% and it's closer to 99%. Let me tell you, there's 99% of these leads that I'm working, where you're working the one, two, or 3%. That's what I'm trying to help you guys register here. I want you guys to take advantage of 2022 because by the way,

Starting point is 00:05:15 there is absolutely no market crash coming in 2022. It just, it won't happen. I just did a podcast episode about how much money from these funds are sitting on the sideline. They're active. They still have billions more. I just did a podcast episode about how much money from these funds are sitting on the sideline. They're active. They still have billions more. I mean, it's crazy. There's no crash coming. And I hate to break it to all the doom and gloom people, but there's not. The reality is there's going to be a market that continues to appreciate. Now, is it going to appreciate as much as it did over the last couple of years? Maybe not, but it's going to appreciate because the number one factor, there's high demand

Starting point is 00:05:50 and no supply. That's it. People need to live somewhere with rents increasing, with interest rates staying low, there's going to be more people buying at high prices. So with taking that into account, you need to go into 2022 aggressive and understanding this one thing. Wholesaling is dead because the way you define it, the way it's been taught for a decade or more is this find a motivated seller and line them up with a cash buyer. And then you yourself can get an assignment fee. Well, I just brought up hedge funds. Why aren't you

Starting point is 00:06:26 thinking about the hedge funds? I do in, I don't know, 20 to 30 deals a year, specifically selling them to hedge funds. So how do I do so many deals and how do I make so much money? It's because I think with the exit strategy first, and this light bulb went on as an educator for me that I need to really start empowering you guys to understand what I understand Just recently like I quite literally have been teaching wholesaling for the better part of eight years And this is the first time that I realize You guys are doing it wrong. You've been taught wrong You need to think more about how you look at the the opportunity not the transaction you guys were thinking transactionally or

Starting point is 00:07:04 uh You're thinking transactionally or you're thinking transactionally. You need to be thinking opportunity. Now, one big thing that I've been heavily talking about is buying rentals, buying rentals, buying rentals. And there's a lot of you commenting, Justin, the market's at an all-time high. Justin, why would you buy when it's at the all-time high? Well, first of all, it's not going down anytime soon. So I'm not going to just wait. For those of you that have made those comments, I bet you've been waiting for years to buy rentals. And I'm buying rentals, and I'm making rent, and I'm gaining appreciation. And guess what the banks love? They love seeing that equity, right? So now they're

Starting point is 00:07:36 lending me more. I can buy more rentals. Anyways, I digress. The reality is you need to be looking at the exit strategy, not thinking so transactional, because if you look at the exit strategy, it creates more opportunity. And if you can maximize each and every single one of these opportunities, you yourself will become a one percenter. But if you don't think the way I think, if you don't move the way I move, if you don't execute the way I execute, because you're thinking of 80% of ARV minus rehab, minus wholesale fee, and that's your offer, then I'm going to win all the time. You might do okay. You might get five, 10 deals a year. You might make a nice little six-figure income, but if you want to achieve, you're not

Starting point is 00:08:17 going to get there because you don't think the way I think. You don't have the structure and the plan in place on every single opportunity. You see, I don't actually focus on motivated sellers per se. Yes, there's a list of absentee homeowners that I do like. And the reason being is a lot of people don't want to be landlords anymore. And guess what? I do. So I'm taking advantage of that opportunity. But besides that, all the other leads that come through my PPC and my cold calling, you're throwing it away. You're calling it a dead deal and I'm leveraging the opportunity. I'm maximizing each and every opportunity because I think of five simple things. Can my network buy this deal? Can I make money working my network? Is it the right market? Do

Starting point is 00:09:02 I know the market? Is it a good novation market? Is it a good flip market? Is it a good buy and hold market? Do I know the market? Do I understand what exit strategy I'm going to use on the property? What am I going to do? Can I do it in that market? Can I be virtual and do this? Because there's a whole remote flipping process that I go through. And then lastly, how do I pour gas on this bad boy? How do I systemize it for my team? So it runs at a much higher level than most. And if I focus on that and I focus on training my team, which is the last scalability part. And then I focus on being able to do that in a remote way with the three others, which is my network, my market analysis, as well as my

Starting point is 00:09:46 exit strategy, I'm going to win every time. And I'm going to crush it in 2022. And I want you to crush it in 2022. But you got to stop thinking transactionally. You got to think the way I think about opportunity and maximizing each and every opportunity. You have these five pillars that I run my entire business off of. My network, market, what market and the analysis of each and every market, the exit strategy I'm going to use, can I do it remotely? And then how do I scale and build out a larger business to do more deals and create more profit? And if you focus on that, you're also going to win in 2022. And that's what I want for you. So stop thinking transactionally, stop thinking about wholesaling the way you knew it. Think about opportunity, maximizing opportunity

Starting point is 00:10:29 and becoming a one percenter because that's what us one percenters do. So hopefully this encourages you, fires you up, makes you think a little bit different. Maybe you're not achieving what you want. And I would tell you in large part is this very thing. This is why you were not getting as many deals is because you were not getting as many deals is because you only focus on the motivated sellers while I'm focusing on everything else. And guess how many motivated sellers, right? Guess, you know, you guys get it.

Starting point is 00:10:55 So with that said, guys, I appreciate you. I love you. Happy holidays. Go crush it this last week of 2021 and then let's take over 2022. Again, if you're not subscribed to my YouTube channel, go to YouTube, look up Justin Colby, subscribe, throw me a thumbs up, like, and make sure you're following me on all social media. I will see you guys on the next episode.

Starting point is 00:11:16 Peace. Thanks for watching!

The Science of Flipping - Maximize Every Oppurtunity

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