The Science of Flipping - Unmotivated Sellers

Starting point is 00:00:00 Yo, yo, what is up, everybody? Welcome back to the Science of Flipping podcast. I am Justin Colby, and if you're watching this on YouTube, you see I got the money green behind me. It's money green season. We are ending the 2021 year right, closing very strong here in December. And this episode is going to be talking about future pacing you into 2022, what you want to achieve, why you haven't achieved it, and basically how to line that up for you so you can achieve it in 2022. So this episode is going to be really powerful. If you are listening to this on iTunes, I appreciate it. I appreciate all the love you

Starting point is 00:00:50 give me on iTunes. Make sure you give me a five-star review there on iTunes. And if you haven't yet, I'm telling you, you got to watch these videos. I'm going to drop more and more videos right there on YouTube. Go to youtube.com and then just look me up, Justin Colby. Subscribe to my channel. Throw me a like on the video if you are watching this. The YouTube gods love that. And so let's talk about something that I think was really powerful. As many of you guys know, I read a ton. And so one of the things that I've read, I didn't read it recently, but it's really kind of top of mind here, is Steve Jobs' biography. And it was really long, but really, really impactful for me. One of the things, and I wrote it down, and if you're watching this on YouTube, you can see I keep looking down.

Starting point is 00:01:41 Because I wanted to say this correctly. We are going into 2022, and the real estate market is hotter than ever. There's never been more deals being done. There's money everywhere, but there's also major challenges for most of you, which is not being able to find a deal. And one thing I want to impress upon you, one thing that Steve Jobs lived his life around and motivated people around is don't be afraid, you can do it. Don't be afraid, you can do it. And even his partners, and there's basically like a term that they called it, like the Jobs distortion field or distorted reality, something like that. But it really impacts me because that's really a lot of my secret to my success. You know, going into 2022, I have some pretty massive goals, right?

Starting point is 00:02:31 And I'm not afraid of them. I'm just going to go achieve them. And am I going to have challenges and mistakes? And am I going to fail at times? Absolutely. A hundred percent. It's going to happen just like you will. But one thing I know to be true is you can't have fear. The one thing that has always made my students so successful is by taking action. The students that actually send me pictures of their check and are getting deals done and giving me testimonials, it's because they're actually taking action. And that's what I want from you. Many of you guys listening to me or watching me on YouTube, you're not my students. And that's okay. I want you to be my student.

Starting point is 00:03:07 I want to impact your real estate investing business. I want you to realize you can do two, three, four, five, 10 deals a month. I want you to know that. And if you have interest in that, awesome. Reach out to me on social media somewhere. Let me know you have interest in being a student of mine. Awesome. Just the Justin Colby. But that being said, going into 2022,

Starting point is 00:03:27 you need to not be afraid and just do it. And obviously the Nike slogan comes up with the just do it, but you can do it. And here's what I will say the biggest challenge for 2021 looking backwards. The biggest challenge for us in the real estate investing world was sellers not being motivated, right? The real estate economy has been booming for over a decade now. Quite literally since the recession, it has been appreciating each and every year, right? Some years more than others, but each and every year it's been appreciating. So it's been booming. We are now seeing all time highs across the board. We've never seen this historically in real estate. We're seeing record low interest rates. We're

Starting point is 00:04:13 seeing people who kind of, again, can't really afford to buy a home, but they're being able to afford to buy a home because the interest rates are so low and they're really requiring very little down, 5% down. So things are looking great for the real estate industry, specifically if you're a great realtor. But what about us investors? Well, one thing I can tell you is I've really refined my business over the year of 2021 because of this. Before I was so, I guess what would you say? I was so, my belief system was so much that I needed to be, you know, so honed into my one market Phoenix that I didn't believe national pay-per-click advertising could work on Google. Well, it turns out I tried it and guess what?

Starting point is 00:04:59 It does work. And I believed I could do it and we actually made it happen. And now we're pouring gas on that model. I didn't believe I could take cold calling outside of Phoenix. And so I started cold calling in different markets. And guess what? That worked, right? And now I'm going to be opening up more states in cold calling, not just markets. And so 2022 is really going to be a big, big, big year for all of us. I don't believe the market is going to be crashing. So I want you to stop right there. I believe the market is going to continue to appreciate. I do believe it may appreciate at a slower rate, but appreciate

Starting point is 00:05:39 nonetheless. But the challenge that we'll all be having and will continue to have is this idea of sellers not wanting to take a discount. Well, guess what? That's where I and the one percenters, and I say this in a generic way, but the one percenters in our space of real estate investing, the people that really make real money, that are really actively doing deals, that are doing a good volume and being very profitable, they know the one thing. The one thing is that you need to be going after the 99% of homeowners that are not motivated. And you need to figure out not only your acquisition strategy, but your exit strategy around them. And if you can do that, you're going to get 10, 20 deals a month easy. You're not just going to be focused on the wholesaling transactional

Starting point is 00:06:30 business. You're going to be thinking long-term. You're going to be thinking rentals, Airbnbs. You know, you're going to be thinking, how do I get mailbox money and not have to own this home and not have to be a landlord? That's what you're gonna be thinking. And if you can create those opportunities in 2022, it sounds funny, 2022, you're gonna be making a whole lot of money. Creating the opportunity, maximizing the opportunity of a deal, that's not a deal if you're a cash offer.

Starting point is 00:07:01 If you're one of the sheep trying to make cash offers like the millions of other wholesalers out there. But if you understand the acquisition strategy and lining it up with the exit strategy and how to take a deal, it's not a deal and exit it and make a check. Or maybe you take a deal and instead of becoming a landlord because you don't really love the area, you control the property. And that property is now in your control. And you're making monthly checks without having to deal with the issues of being like, if you understand that, that's how the 1%ers are doing it. And that's how I want you to understand. Don't be afraid.

Starting point is 00:07:39 You can do it. Don't be afraid. You can do it. Don't be afraid. You can do it. And that's important for me to, um, to really get you to embody Steve jobs there. Don't be afraid. You can do it. And if you ever did listen to any of that book or read any of that book, you'd realize that, you know, Apple was built around this premise of like pushing all crazy types of boundaries, right? Making people do something in a week that would normally take a month and a half to

Starting point is 00:08:11 do. And it would consistently happen. And it was because Steve Jobs motto, if you will, was don't be afraid, you can do it. And if you believe that you will achieve that, right? That sounded pretty cheesy, but it's true. If you believe it, you'll achieve it because your? That sounded pretty cheesy, but it's true. If you believe it, you'll achieve it because your belief mechanism that that cellular belief will overcome the fear, right? And so going into 2022, I want you to realize a couple different things.

Starting point is 00:08:38 One, sellers are still going to be unmotivated. The 99% of homeowners you're going to talk to are not going to have motivation to sell, right? You're looking at 1%, 2%, maybe you could probably even make an argument and stretch 3% if you want to be crazy, but 1%. So what do you do with the 99% of other homeowners that you're talking to? That's where you have to align up your exit strategy along with your acquisition strategy. And you put those together and you can be dangerous. You can be doing the deals that I'm doing. And so many of the 1% real estate investors that are crushing it, that's how you do that.

Starting point is 00:09:14 Right? But I don't focus on the 1%. Right now, most of you are. Right now, most of you, that's your strategy. What's my formula so I can make a cash offer, so I can sell it to the flipper that, you know, the two or three flippers I know? Well, guess what? Those flippers, those are expert flippers in your market. They're not going to be the people who are going to pay top dollar. So they want a discount, which means you have to give them a deeper discount.

Starting point is 00:09:37 If you don't know how to do that, you're going to ultimately be incredibly stuck, right? And I want to encourage you that you need to know more in that there is a way to work with the other 99% of homeowners. You know, listen, you know, there are always going to be people that want a million dollars for their home that's worth 300,000. You can't work with them. They're not selling, but the 99% of people who are considering selling, but they don't want to take a discount, that's what I'm talking about. Those are the ones that you need to figure out how to maximize each and every opportunity that comes to your plate. And there's really four parts of that. You have a network, so you know what buyer is going to buy something. You have private lenders,

Starting point is 00:10:21 you have agents, you have investors, you have contractors, your network's going to help, right? Understanding the market, understanding and analyzing each market that the seller's in, the house is in, understanding like clearly how that is. Is it a better flip market, buy and hold market? Is it an Airbnb market, right? Understanding, you know, that you could do it from anywhere, that quite literally you could be sitting on your couch and you can be doing this remotely, remote flipping call it and lastly is understanding your exit strategy long-term short-term flip wholesale hotel novation if you have those all laid out this is going to be a huge year for you and i'm telling you you need to believe that, right? So don't worry. You can do it. Don't be afraid. You can do it. That's the message I want to give to you guys right now. It works for Steve Jobs like

Starting point is 00:11:12 crazy, right? It has worked for me for years, right? I used to say it different ways. Your belief has to be so high that, you know, fear can't creep in. You don't mind failing. Well, Steve Jobs says it like this, you know, don't worry. You can do it. You know, don't be afraid. You can do it. So anyways, I want you to crush it in 2022. There's always, you know, this year is still going to have the unmotivated sellers.

Starting point is 00:11:39 You need to understand how to maximize those opportunities because I know I do. And I know the one percenters in our space do. If you do have any interest at all learning how to do that and you want to talk to me about it, awesome. Hit me up on social media, the Justin Colby, happy to help you. Again, give me a five-star review. Make sure you're over there subscribing to my YouTube channel and make sure you give me thumbs up on those videos. I appreciate you. There's a massive project coming through. You guys will hear about it and see it here soon. Very excited about it. But anyways, let's have a strong end of 2021. It's not over. We still got three days left. Let's go. Got to put in the work. There's no sleeping around here. So I'll talk to

Starting point is 00:12:16 you guys later. Peace. Outro Music

The Science of Flipping - Unmotivated Sellers

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