The Science of Flipping - [PART 2] The Most Valuable Thing You Can Do for Your Real Estate Business in 2025

Episode Date: December 6, 2024

In this follow-up to the previous episode, I dive deeper into the essential strategies for dominating the real estate market in 2025. The focus is on leveraging data, technology, and automation to identify and secure highly motivated leads, ensuring consistent deal flow and success. If you found the last episode valuable, this one is packed with actionable insights and tools you can start using right away. The #1 training and coaching system to launch, grow, and scale your investing business! 𝐋𝐞𝐚𝐫𝐧 𝐌𝐨𝐫𝐞: http://www.thescienceofflipping.com Turn cold real estate leads into engaged motivated sellers on auto-pilot using the power of A.I! 𝐋𝐞𝐚𝐫𝐧 𝐌𝐨𝐫𝐞: https://www.rocketly.ai/ Have a question? Ask me anything at https://www.askjustin.ai/ 𝐀𝐛𝐨𝐮𝐭 𝐉𝐮𝐬𝐭𝐢𝐧: After investing in real estate for over 17 years and almost 3000 deals done, Justin has created a business that generates 7 figures in active income through wholesaling and fix and flipping as well as accumulating millions of dollars of rental properties including 5 apartment buildings, 50+ single family homes, and 1 storage facility Justins longevity in real estate is due to his ability to look around the corners, adapt to changing markets, perfecting Raising private capital, and focusing on lead generation which allows him to not just wholesale and fix & flip, but also accumulate wealth through long term holds. His success in real estate led him to start The Entrepreneur DNA podcast and The Science Of Flipping podcast and education company, where he has coached and mentored thousands of aspiring and active investors over the last decade. He is a nationally recognized speaker and is on a mission to educate as many people as possible on becoming a successful dynamic real estate investor. 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) Subscribe To Justin Colby: http://youtube.com/justincolby View All My Videos: https://www.youtube.com/c/JustinColby

What is up? What is up? The Science of Flipping Family. And I am back with another solo episode because I need to do part two of the last episode. I have talked to a lot of you who have said that last episode was awesome and they were waiting for this episode. So I'm excited to deliver for you part two on what is going to crush it for

you and any real estate investor going into 2025. what is gonna crush it for you and any real estate investor going into 2025. Now, as I talked about on the last episode, everything's gonna come down to data, technology and automation. That is going to be the key. And I'm gonna start with this conversation about data. I have some resources for you,

so you're gonna wanna write these down, okay? The very first resource I have for you so you're gonna want to write these down okay the very first resource I have for you is called REI lead machine dot com REI lead machine dot com now the reason why this is probably one of the most brilliant software's that has ever come out is because within that software it will actually deliver you the highest qualified lead for motivation. Okay. Now it's not just like pulling a list for, you know, landlords or absentee homeowners. There's literally an AI bot running through and scraping data for the last 40 years of real estate transactions. And out of that, there's something like 400 million data points that they are scraping

through to figure out what has the highest likelihood of motivation from that seller. And so they call it an AI score. Now it gets ranked in three different categories, whether it's gonna be a good rental property, whether it's gonna be a good retail property, like a listing, or it's gonna be a good wholesale property. Now, for many of you, you'd probably wanna lean towards the wholesale category, right? And the only reason why is because even if you're

a fixing flipper or a landlord, you probably wanna get the deepest discount. And so the qualification for wholesale property really is like likelihood of taking the deepest discount, right? Now you take that data set and you start to market to that data set. Now REI Lead Machine is brilliant. There's three levels that you can subscribe at, but even the middle level or the highest level you can get these lists of AI ZIP codes, AI counties in the entire state if you want.

So if you have a larger marketing budget and you want to be marketing through the whole state you can absolutely do that. The key to this guys is the enriched data. It's going through 400 million data points. And when I say this, I'm talking like strange data points that it isn't about like, are they a landlord or owner occupied or have they, you know, missed a mortgage payment? Those are kind of the more traditional lists that you could have out there. Those are the ones that you could just pull from REI Lead Machine.

They also have those lists, but you want to have the best enriched data as possible. So you have the best shot at finding an actual motivated seller. So you want to start with this data point from REI Lead Machine. Now the second layer to technology, um, that I would, you know, I would encourage you guys to go to is RocketSkip. RocketSkip is another software that if you take the list from REI Lead Machine, grab the list from REI Lead Machine and you take the top, let's just say 200 scores. So the way REI Lead Machine works is it scores people up to a hundred or up to a thousand if, if a score is close to a thousand that has a high likelihood of

being a good deal. So let's say you're only going to find people who score 800 or above as a wholesale deal, 800 or above. And so let's say you pull that list in three zip codes and it produces. Let's say a hundred people. Now that is a high, uh, highly, uh, cultivated list, right? That will find a lot of motivation and you take that list and you then layer on rocket skip, which will further go into datasets like credit score,

credit availability, loans, what kind of credit cards they have out there, how many loans they have. And it goes through another round of qualifications really heavily on the property, yes, and the person. And it will spit out another score saying out of the 100 people you already feel have the best motivation, then there will be, let's just say, it'll spit out another score up to a thousand. Let's just say out of those hundred, it brings back 30 that are between 800 and a thousand. So now you have 30 of the hundred that have even higher motivation, okay? Now what I would tell you to do, and this is not gonna cost you a lot of money, right?

So this isn't some big marketing budget. Then I would tell you is to have a rocketly CRM. Now, why that is imperative is this is where the technology and the AI and automation comes in. Because you can put this list of 30 people into the Rocket League CRM. You still can put the list of 70 people, but you can put them through a communication automation funnel that can automatically start communicating with these homeowners via email,

direct mail, text messages, and you can actually start calling them right through the CRM itself, Rocket Lee CRM. So now let's just say you take the 30 people and I'm going to call those 30 people. That's what I would highly encourage you to do. The other 70, maybe you start some of the automation to encourage further communication with those other 70. But the 30 that they were a part of the REI lead machine data, then they were a part of the rocket skip data and then you have rocket Lee CRM and then you've found the 30 that

have the highest level of manicured data that you basically are saying these people are selling period hands down. We just got to figure out if we can get to the right number. I'm personally going to tell you to call them. I'm going to call them. Right. Those are the people that you genuinely want to call. And so the rest you can still put through this automation.

In fact, the rest you can call too. The other 70 you can absolutely be calling. You can send them email. You can door knock them. You can do whatever you need to be doing. But what is gonna make the difference between the successful in 2025 versus the getting some deals done, maybe getting by,

is leaning into enriched data, technology and automation. Okay, and I'll say that again. The difference between the people who create ultimate success and have consistent deal flow is they're going to be focusing on enriched data, getting all the data sets to show that these people are going to be highly motivated. Then leaning on technology and automation to continue funneling in communication, to continue funneling follow-up, to automate offers, and being able to have a sales team that can reach out to the right people. Many people use cold calling as a strategy.

I love cold calling. It has always been a part of our business. I built a cold call floor in Phoenix years ago. The challenge you have with something like that is you're getting random leads that sort of kind of maybe wanna sell. Now, by the way, I'm not saying you can't get deals. I still get deals and many of the best of the best still get deals from cold calling. I'm not saying you can't get deals. I still get deals and many of the best of the best

still get deals from coal calling. I'm not suggesting you can't. But when you take the approach of super shotgun wide and just hope that you can come up with people that have some motivation versus niching down into a subset of people that through quite literal data from data says they says the likelihood of them selling is 880 or 800, depending upon how you want to look at the numbers, times better

that they're going to be selling in a very short window of time. Why would you spend all this time and money targeting the entire state when you can target these hundred people and even then, why would you spend all this money and time targeting the hundred when you're really going to subset 30 out of the hundred? So I'm not taking away from going wide because in some senses, I still go wide. For example, I have TV commercials running. That's a very wide audience for the state of Alabama, right. I'm it's called Justin buys Bama.com. You can check out the website. Very wide.

Right. And I get a lot of leads that are not perfect leads that essentially are dead leads because they're in rural areas that I don't really care about. Or, you know, they're not really that motivated. Right. Um, but they're interested, they're not motivated. They're curious. They're not serious.

Right. But they're interested, they're not motivated, they're curious, they're not serious, right? So what I'm telling you is those that take what I'm saying right now today to be serious and to have those systems, then to have REI Lead Machine and RocketSkip and Rocketly CRM and to combine all of that and refine the data and then refine the process of how you reach out to them and to be able to say, okay, the first round of calls is me. The next I'm going to go into some level of automation through emails and text messages and communication and nurture and follow up, including direct mail, all of which you can do from Rocket League CRM.

And I would tell you guys that level will consistently create one, two, three, four, five deals a month depending upon how wide you go. If you have a big state, if you have a big area or maybe you're doing it in multiple states, it'll create a deal consistency, right? And the last thing I'll bring up right here on this episode and the three software's I'm talking about is REI Lead Machine, RocketSkip and Rocketleaf CRM. The last thing I'll bring up is those that are going to do really, really well going to 2025 are going to ultimately be a full tool belt, right?

They're going to have multiple tools in their tool belt. They're not going to be a one-trick pony. They're not going to be consistently offering cash offers, 70% of ARV minus wholesale fee minus rehab. They're not just gonna have that simple, straightforward approach. They're gonna be looking at the potential of the deal and they're gonna be asking themselves, what is the best potential of this deal?

Is it a fix and flip or is it a buy and hold for the long term? Is it a buy and hold for the short term? Is it a buy and hold for the short term? Cause maybe it's on a lake or maybe near the ocean. How are we going to look at the deal? And when you do that, you can take those leads that are highly, highly motivated. And although they may not offer or accept a cash offer that you're going to give them, you can absolutely structure some sort of creative finance deal.

Depending upon the scenario could be a sub two, could be a contract for deed, could be buying the deed, could be a wrap deal. It could be a seller finance note, right? So you could create anything you want as long as you have the skill set to do that. And that would be the last layer of those that are going to really win in 2025 is understanding or having someone help them with deal structuring. Being a deal architect will ultimately win the day through 2025 because I believe the

2025 year will not be as economically rewarding is what I believe people think it will be just because Donald Trump went into office and this has nothing to do with him or Kamala just saying it just doesn't mean somehow he's going to snap his fingers and all the economic issues that we have seen are going to go away interest rates are going to drop drastically housing is going to become affordable this is not going to happen not. Interest rates are going to drop drastically. Housing is going to become affordable. This is not going to happen. Not overnight at least.

Do I believe Trump will make a major impact on a lot of the economy? 100%. But if you understand how to work the real estate space and be a deal architect, in combination with this data enrichment, in combination with the tech in, in nurture and follow up, you are going to be a killer in 2025. If this information was helpful to you and you think someone else needs to hear it,

make sure you share with at least two of your friends. Also, if you have not heard of REI Live, go to REILive.co. It is going to be the game changer for all of you in 2025. See you on the next episode. Peace.