The Science of Flipping - This Is The Importance of Buyers

Episode Date: July 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  

You know, if you can get the right contractor with the right material costs, flip, flip, flip, because there's money everywhere and there's nothing on the market, period. Nothing on the market. What is up, everybody? What is up? Welcome back to the podcast, The Science of Flipping. I have been rocking this podcast for years now. So if this is your first time to the podcast, welcome. This is all about real estate investing. It's all about the tools, the systems, the processes, organization on how to be an expert

real estate investor, whether that's wholesaling, rehabbing, wholetailing, buying and hold. You want to be right here at the Science of Flipping podcast to learn everything that I am using and how you can implement that in your own business. Now, here's the thing, guys. I have been away for a bit. I apologize. It was not my intention. I just have been a lot on my plate. So, welcome back. And I want to start off right away out of the gates mentioning this is an incredible time to be a wholesaler and a flipper in real estate. I know most of you guys have thought like the market is going to pop, the bubble is going to pop. We are at all time highs on values. And that's exactly why I believe

you need to be in the game right now. Now, I will say one thing about this market. And it's actually this episode is going to be all about your buyers, right? This is what I want to emphasize here. Whether you're a flipper, whether you're a wholesaler, the numbers that people are paying today, right now in all markets is completely unreasonable. And that's why you need to be in the game today. So if you are a newbie, you're in the right spot. If you're a newbie, I would go back and listen to several hundred of my previous podcasts. If you're in the right spot. If you're a newbie, I would go back and listen to several hundred of my previous podcasts. If you're a veteran, if you're in the game, if you're trying to figure out a way to scale, then listen to this episode because right now is the time for you to get as many deals under contract as possible and figure out what type of exit strategy you want to do. So this episode is all about your buyers

and the power of buyers and how your buyers can help navigate and help you actually make more money. So this morning, I actually had a great conversation with a close friend of mine. His name is Chris. He's actually been doing this for over 20 years here in Phoenix, and I've been doing it 14. So he's had a head start. And what we were just talking about is how crazy it is that right now, the values that we are seeing as wholesalers and flippers in what we're selling at is absolutely crazy. And we keep going back and forth about when is this going to stop? How are we going to actually get reasonable with pricing? And everything that I have done, all of the research I've done about the interest rates

and the markets, it doesn't seem to show any sort of letting up anytime soon. Most of you guys are thinking, well, at some point, there has to be this big foreclosure tsunami, as people have been saying, well, I can appreciate that. And at some point, I also agree. At some point, the banks and the government can't just keep cutting checks and allowing people to not pay their mortgage, there will be some sort of foreclosure. But as a moment in time, that moratorium keeps getting pushed, right? We just pushed it another 30 days. And quite honestly, I don't know if the banks have the ability to enforce the amount of foreclosures that are coming. So guess what?

I don't believe it'll happen as soon as we all believe based around everything I'm seeing. Now, listen, I'm not the wizard of Oz because quite literally, I thought the market was going to crash when COVID hit. And that was a year and three months ago, right? So obviously, there's no one that knows for sure what's going to happen. But one thing is for certain. We are in quarter two. And I believe through quarter three is an incredible time for you to be wholesaling and flipping and wholetailing. And I say that because I had another

conversation with a group of buyers who have super cheap money. Now, this is not the big hedge funds. These are just individuals that have super cheap money on a line of credit, super cheap, like less than 2% on a line of credit. And they are going out and buying and buying rental properties. They are buying, and these are just two business partners. This is not a hedge fund. They are buying properties at a rapid rate. Anything under $200,000 or less, they are buying and they're holding. And so for all of you out there, I bring this to light to help you understand.

It's about knowing your buyers. If you've listened to any of my other podcasts, or maybe actually you've watched some of my YouTube videos about these trainings, if you have not yet subscribed to my YouTube, go over there, youtube.com forward slash Justin Colby. I actually talk a lot about your buyers. You can find buyers absolutely everywhere, but you need to know what they're looking for. So I bring up these two business partners because the conversation with these two

really took a huge leap forward into my ability to spend money marketing. I knew that if I could go out and chase these homes for them, they specifically want 1990 and newer properties and they want them under $200,000. That was their big criteria. Did they have smaller criteria within there? Yeah, but they were not something that was going to hurt my ability to give them deals. If I go out and chase those deals for them, they quite literally are contracting 50 properties in Oklahoma this week because they hit those criteria. All I have to do is get in front of the homeowner and get those deals and they will buy them from me. And when I tell you that they're buying at an unreasonable price point, they are literally buying a property for $180,000 is the example that I'm going to give you guys

because it's a property that we talked about. It only rents for 1200. For you and me, for us, mom and pop, that is not a deal, guys. That's not something that I would get excited about, but they are because their debt, their debt, the under 2% interest rate is so low that they can make almost anything work. It's almost like they're just buying it cash. So here's what I would advise you guys to do. If you guys don't yet have PropStream, PropStream is an incredible tool for you guys to find buyers. Go to TSOF. TSOF stands for the science of flipping. Shocker. This is the podcast. TSOFdata.com. I'll say it again, TSOFdata.com. Sign up for a free account on PropStream. They will give you seven days for free. And on top of that, if you use promo code TSOF, the science of flipping, use that promo code TSOF, they'll give you a free

10,000 person download list. And in there, you can actually go into PropStream and actually download cash buyers. These are the people that you want to be talking to because these are the same people that can actually go out there and perform on buying rentals or flips. And so the more investors that you actually have conversations with and putting yourself out there, the bigger your business can scale. Again, I'll go back to what I just said about the two individuals who now just have this really cheap money. I just was introduced to them like this week. This is why I'm doing this episode is because the power of your buyers will not only get

you your first deal if you're just starting, but it will help you scale your business. End of story period. That is how you do that as a wholesaler specifically. And as a flipper, listen, if you have properties that you buy at a good value and you can rehab and you have a contractor that can actually do the work right now because they're busy as hell, and you can actually afford the rehab because the materials are crazy high, there are limitless amount of buyers right now because there's quite literally nothing on the market. So if you're a rehabber, you've been hitting it big, just make sure you're buying it right. Okay, so before I get into rehabbing, let's finish the topic here about the buyers on the wholesaling. The reality is,, the better you know, these buyers,

the more buyers you have, the more you can scale your business. Like I just mentioned, these individuals that I just met this week, I'm now going to be actively spending more money marketing, putting more resources to getting them properties because I know they will execute on them. Right now, prior to this, would I want to be buying homes that are newer than 1990? Is that what they said? I think it was 1990. Not usually because there's not a big rehab budget that homes usually not terribly maintenance deferred. And I believe that was what they quoted 1990, which is still, you know, listen, that's still 30 years old. So it's an older home, there's no doubt about it. And so what I usually target those probably not. But because of this, I've actually switched up some of my marketing to actually go after homeowners that have only

owned a home for five years or more. Meaning some of these people might be buying homes that were built in 2010. Right. And so what I would tell you is understanding this about your buyers will help you market will help you target the list. It just helps your entire business period. And so using PropStream, you can go in there, you can find cash buyers, you can actually pull a list of cash buyers. You can put it into batch skip tracing. If you go to TSOF, TSOFbatch.com, TSOFbatch.com. And again, use promo code TSOF. You can actually get a discount on the skip tracing. So they'll give you a discount on the skip tracing, three cent discount on the skip tracing.

So pull that list of buyers, skip trace it and call them. Have conversations with as many buyers as you can each and every day. And that will move your needle as a wholesale. I can't tell you how happy that this is the first podcast back because this is moving my needle in a major way. Like I'm now in six different markets actively and I'm selling in eight different states. For those of you that are actually

not just listening to this, but actually watching this on YouTube, I will actually, for those watching it on YouTube, I will show you all of the deals in all the different states that I'm actually doing deals. This is right here. Like this is a check from,

where did I get this one? This is New Mexico. We have Phoenix, Phoenix. We have Milwaukee. We have Oklahoma. I mean, I'm just doing deals in multiple states because I'm more active with my buyers. I've found more buyers that are looking for more property so I can actually scale my business even bigger and better than it's ever been before. So that is the power there. If you are a rehab flipper, man, there's only two challenges for rehab flippers right now. There's plenty of money that you can borrow, but the challenge is going to be your material cost. And the challenge is also going to be your contractors.

I'm actually buying and holding right now pretty heavily in Oklahoma City, as well as in Indiana. Well, I think I'm going to buy some triplexes in Indiana. I might not be just because of the condition. But what I'm finding is all contractors are slammed, and then the material cost. And I actually have a coaching group of elite high level students, and one of them actually owns a construction company. We were just talking about this, that, you know, his business is crazy because he has to micromanage his invoices for the materials right now, because he might bid out a job for a client. And four days later, that same again, wood or appliances or whatever spikes in price. So they have to be super careful

now bidding out jobs and having people have like a 24 hour green light so they can buy the materials at the price they need. And so he's a student in my elite program. If any of you guys are interested in me coaching you, go to the science of flipping.com, science of flipping.com, fill out a very simple application and you can talk to some of my top advisors and see if I'm a good fit for you as a coach. But that being said, guys, if you can get the right contractor with the right material costs, flip, flip, flip,

because there's money everywhere and there's nothing on the market, period. Nothing on the market. And people wanna buy homes. They need somewhere to live, right? And so I would tell you guys, buyers are everything. It will help you not just get into the space, but help you scale your business. I'm excited to get back at podcasting. For those of you listening to this, I'm also having a video version of these podcasts right over on YouTube. So go to

youtube.com forward slash Justin Colby. And you can actually watch me have this conversation with you. If you are not driving, do not do the YouTube podcast. If you are driving stick to iTunes or Spotify or wherever you're listening to this stuff. But man, I'm excited for you guys. If you need anything from me, just go to the science flipping.com ton of resources there. I have a free giveaway for those that are heavy into this, go to insider.thescienceofflipping.com free giveaway, plenty of free trainings there. I have a free giveaway for those that are heavy into this. Go to insider.thescienceofflipping.com free giveaway, plenty of free trainings there. And I hope to keep knocking out of the park for you as I have done for years. And we will see you on the next podcast. Peace.