The Science of Flipping - Success Takes Risk

Episode Date: December 20, 2021

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   

What is up, everybody? Welcome back to the Science of Flipping podcast. I am Justin Colby. Now, this episode is going to come directly from a call I had with one of my elite students, and it was all regarding risk. And so I really wanted to make an impact on you guys today because this isn't going to give you just one simple strategy to find a motivated seller, how to get more deals done, but it is going to give you more of a mindset about what it takes to be a part of the one percenters in real

estate because it does involve risk now listen if you are watching me on youtube great make sure you are subscribed and have your notifications on and give me a thumbs up if you aren't yet watching me on youtube get over there right now make sure to start subscribing and watching and give me those good old thumbs up because the youtube gods really favor videos that have a bunch of thumbs up. If you are listening on iTunes, give me a five-star review. I would greatly appreciate it because guess what? The iTunes gods give podcast favoritism than ones that have the most five-star reviews. Now, let me get straight to the point to the impact I want to make with you today. And that's

going to be a lot more in your mind than it is going to be about strategy, about being a successful real estate investor. But do believe this one thing. You need to have both. You need to have strategy and you absolutely need to have the right mindset because it will completely impact whether you are successful and become a part of this one percenter club that I and many others are a part of, or if you don't. So here's what I will say. It really involves your risk tolerance. And I don't

simply mean, you know, making foolish decisions and being super risky with your money, but having a risk tolerance to know that I need to push my chips all into this business. I need to really value the fact that I can do this and I need to believe I can do this. And if I go all in and quote unquote, burn the boats, and I don't know if I love that analogy, but that's the idea is that I'm going to make this happen and I'm going to take the proper risks associated with the right opportunities to win. You see, Jake Paul, the boxer, I'm officially just going to call him the boxer now because he just keeps showing up as a boxer and not just a YouTube star or whatnot, he has gone all in on himself. And it's really made an impact on me and so many other entrepreneurs because we see the impact he's making in an age-old business called boxing. And this little YouTube star,

this little teenager who made money going viral has now become a legit boxer, right? I don't know if he could take on Mike Tyson, but I will tell you, he has made the right risk with the right tool and strategy. And he has really made a huge impact. I would say in at least the entrepreneur space, let alone in the sporting arena. And I think the point I bring up about that is because he's a loud mouth. Well, let me do this. Take away all this shit about Jake Paul. I don't know. I was going a little bit of a tangent there. Just saw something about him. Take that shit away. Okay. So here's the deal. It takes risk and belief that your strategy is going to win. Now, could it take some money? Absolutely. And the reason why I bring up my student is because he's going all in,

right? He's not going to be making excuses. He's not going to be turning back. He quite literally said, I'm all in for a year to prove that I can get this business not just off the ground, but to be doing three to five deals every single month by the end of the year. And that's literally, as I'm recording this episode right now, he is giving himself 12 more months to get to that level, right? And so what I would say is that level of belief is the start. It's the same level of belief I had in myself when I was broke, busted, and disgusted, lost

my home to foreclosure, was living on a couch. The repo man took my car. But I had the same level of belief. The difference is my student actually has resources that I didn't have. My student has the ability to sell homes and be able to leverage that into building a business. So again, he is taking a risk. He is taking a financial risk because he is going to sell two of his rental properties that he already owns to put money into his pocket so that he can capitalize on his business venture of being a 1% real estate investor.

That's the risk he's taking. Now, I'm not gonna sit here and tell everyone to go sell their home or sell their car or sell rentals. I'm not saying that. What I am saying is there is a certain amount of risk that you have to take in this business, in yourself, for you to really actually achieve greatness. And if you're not willing to take that

risk, you are going to have a hard time achieving greatness because you're just going to end up kind of being mediocre, right? You've heard the saying with big risk is big reward. Now, again, I don't want people to be very clear. I don't want people out there being crazy, uneducatedly risky with their money or their time for that matter. But when you believe in something as much as my student does or what I did telling you now, wholesaling business, the way you know it, the way it has been defined over the last decade or so is absolutely dead. And you need to know that because the opportunities are not dead. But that's how you need to be thinking about the wholesaling business. It's not a transactional business.

It is analing business. It's not a transactional business. It is an opportunity business and you need to understand how to take advantage of those opportunities. So that means when the time is right for you to take those risks, you need to be able to take those risks. I promise you this. There are plenty of buyers, there's plenty of money, and there are plenty of deals. You need to find them. So for some of you, you may not be needing to sell your rental properties to go all in and push all your chips in on this business. You might just be needing to take the risk on marketing. So instead of doing $1,000 a month or $2,000 a month, maybe you ratchet that up to $5,000, $6,000 or $7,000 a month of marketing. Maybe that's the risk you need to take. For others, like my student,

they're going to go all in. They're selling rental properties, they're capitalizing their business, and they're going all in. He said he wants to go nowhere less than $10,000 a month on marketing. That's a lot of money. There's not a lot of people willing to take that risk, but that's the risk that he's willing to take. And so this whole thing is a mindset game, right? Wholesaling and real estate investing isn't terribly difficult. Yes, you need to have the right strategies and yes, you need to have the right network. And yes, you need to have lenders if you want to flip. Yes, you need to have lenders if you want to flip. Yes, you need to have lenders if you want to buy and hold. But the business isn't terribly difficult. What is difficult is for you

or for people to take the risk that is necessary to reach the one percenters. Now, maybe you're out there like, Justin, I don't even care if I am the one percenters. I just want to replace my income. Then awesome. So what's the risk that you're going to take? Are you going to quit your job? Or maybe it's just a simple sacrifice. Are you going to stop watching Netflix or stop playing video games? Any way you cut it to be able to make a good income. And my definition of good income is definitely into the six figures, where I'd say you got to be making at least $150,000 to live a nice life these days. It doesn't matter what city you're in. If you want to live a nice life, that's the level of inflation. That's the level of where we're at now. But to get to that level, it might

take you taking on a little bit more risk than you're comfortable with. And by the way, that's what's going to get you there is stretching your comfort zone, right? Understanding this is risk and I'm outside my comfort zone and I have to make it. I don't have an option. This is going to work for me. And again, I don't love the analogy of burning your boats, but that's it. Not being able to look back and have an excuse for why it didn't work,

but to take a level of risk that you now have to make it work. It's too easy for everyone to sit on the sidelines and say, my city is too competitive or the housing prices or housing market is too high. It doesn't make any sense. It's too easy for those excuses to be made by the guys on the sidelines. But I'd urge you to get on the field. I'd urge you to say, I'm going into the game. I'm putting my helmet on. I'm putting my shoulder pads on and I'm going. And I'm going to win.

Now I'm going to end this episode because it's definitely been a little bit more motivational than most, but I'm going to end this episode by understanding this one thing. You need to take risk. You don't necessarily have to sell two rentals to do this business. You don't necessarily have to spend $10,000 on credit cards to do this business. But you need to take a certain amount of risk to push you. Because that risk, that leveling up your ability to have risk tolerance will create greater rewards. But here's what I'll leave you with.

You have to give yourself patience to achieve it. Don't try to go win the game in the first quarter or the first half. Play the whole game. Play the long game. The reason I'm emphatic with saying wholesaling in the way that you know it and the way it's been defined for the last 10 years is dead

is because everyone treated that like the transactional business. And yes, well, in definition, you are finding a seller and lining it up with a buyer and you're creating an assignment fee in the middle. By definition, that is a wholesale deal. But to create a wholesale business, to be a one percenter, it is an opportunity business and is very hard to create opportunity without having risk along with it. All right.

So listen, I know that wasn't your traditional episode that I usually rock the house with kind of more strategic real estate investing strategies. But I wanted this to be known because the call I had with my student today was really thought provoking for me to understand at what level people are playing at, to understand that he is literally willing to go all in, all in on his dream of being a multimillionaire through real estate. He's already a very successful business owner and this is his next venture. And so he is capitalizing and, and selling his rentals and taking the risk on to go all in here. And I encourage you guys

to take the same level of risk within your world, right? What is that? Look at that, because I will tell you, if you don't have that ability to say, I need to go all in, then you're likely not going to be able to achieve what you really want to achieve, which is a becoming rich financially and be becoming wealthy financially. So those are the things that you want to achieve. And if you guys just heard that sound, you know what that was? That was my little 10 month old baby girl who just came into my office. So if you guys heard her, she's a blessing to me. Anyways, I don't want to go on a tangent. I appreciate you guys. I want the best for you guys.

If you ever need anything from me, make sure you reach out to me on social media, the Justin Colby. Hit me up. Say what's up on Instagram. That's usually the best place for me. Or maybe even Facebook. You can just look up justin colby on facebook a friend request me but anyways if you need anything i'm there for you make sure you are hitting the like button if you're watching this video and make sure you're giving me a five star review if you're listening and i'll see you guys on the next podcast peace Outro Music