The Science of Flipping - What To Do With The Market Changing

Episode Date: August 25, 2022

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   

and be a wholesaler, fix and flipper, as well as a buy and hold, you just need to run your numbers correctly. And if you do that, then you're gonna get deals done. You're gonna be able to make money. Hey. Hey. Hey.

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Hey. Hey. Hey. Hey. Hey. Hey. Hey. Hey. Hey. Hey. Hey. Hey. Hey. Hey. Hey. Yo, yo, what is up, everybody? Welcome back to the Science of Flipping podcast. I am your host, Justin Colby, and this episode is coming right off me speaking in front of several hundred rentalpreneur investors. These are individuals that are focusing on buying rentals in today's real estate economy. And so I have a lot to talk about, but it was an incredible event in Houston, Texas by TJ Tajani. Now, as always, these episodes are brought to you by minutepages.com. If you are

a real estate investor, whether you're flipping, whether you're wholesaling, maybe you're even buying for your portfolio, make sure you have a website that gives you credibility influence and authority in this space go to minutepages.com and get your website now at a fraction of the cost okay so i get asked the question how am i changing my business model as we are going through some little correction in the real estate market now i was able to speak at this event which is incredible there were several hundred people in the real estate market. Now, I was able to speak at this event, which is incredible. There were several hundred people in the room and it was like energy. Everyone was on point because they wanted to know what to be doing moving forward. So after I got off stage, I

answered several questions and a lot of them had to do with what markets am I in? Where am I buying? Why am I buying? And why does it make sense now as we are experiencing some of this correction well so let me answer this for you as well if you are just a wholesaler maybe you're not even buying and holding in the way i am i would encourage you to think through who your buyers are okay so this answer really is going to be the same for a wholesaler it's going to be the same for someone buying and holding and potentially even fixing flipping. My answer is essentially, I really love the Sunbelt States, right? So it goes basically all the way from North Carolina, all the way kind of down South through the country, going into parts of Texas and Nevada. But the reason why I love that

type of market is the price point. So my answer always came back to math. Every single person I said is just math. If I understand what I can buy the home for and be all into the home with, and then I can get a 1% rent ratio and have a decent cash on cash return, I like that as a rental. Now, how does this affect wholesalers?

Well, you need to know, buyers like myself, how we buy. What's our criteria? How are we changing it during some of these economic times? Are we changing it during these economic times? So for those of you that are out there actively marketing and more in the wholesale space, I would really urge you to stay into price points under $300,000. That's one thing I've preached to my students over and over again is all my students i tell them stay in 30 under the median market value meaning right now the national median market values give or take four hundred thousand dollars um well i want to be in markets that are 30 under that price point right so as i told you you know North Carolina I love it Charlotte I could buy homes for 120 hundred fifty thousand dollars as rentals that's perfect I'm looking at a fourplex in clean Texas right now for a hundred and

seventy thousand dollars that would be perfect those numbers allow you to buy and hold now is that a good number for fix and flip well that's just a different model because I'm not looking for the big margin in between in fact on some of these I might even be paying close to retail but I'm okay with that because it's for the long term and it's not for quick cash or quick pops so you need to know who are your buyers as a wholesaler what are they buying for and how are they you know looking to exit and then for all of you out there if you're trying to figure out what market you should be in whether you're trying to figure out what market you should be in,

whether you're wholesaling, flipping, buying and holding, my first and foremost is I want to be 30% under median price point. Then I want to make sure it's a good market. Is it a market that has potential for growth? Are there military bases? Are there sports teams? Is it in a place where there's going to be an economy, right? And so those are things, small things, but things that really are important to me in terms of of are there major colleges in the area? You know, because then the smartest people in the world have gone out to try to build, you know, universities, sports teams, military bases. These are places that they feel will have expansion and growth and there's a viability in terms of economy. Those are real telltale signs of why I like to be in certain markets. And then it just comes back down to math. If I can spreadsheet it and it looks like I can have a 1% rate ratio,

that's where I want to be. So if you're trying to figure out what you need to be doing, where you need to be doing it, I would really encourage you to maybe think outside the box, be a little bit more dynamic of doing it in your own backyard. You might be listening to this and you might be in San Francisco or San Diego or New York or Miami or some really expensive markets. Well, I would encourage you to get a little bit more virtual, right? Get a little more outside the box. I call it being dynamic and not being beholden to whatever your market might be telling you. Your market might be a great market for fix and flipping, but maybe not buying and holding. So now if you are a wholesaler in that market,

you're really only gonna be able to sell to the fix and flippers. Well, right now we can see that some fix and flippers are kind of being a little more short-armed. They're not being as aggressive at how much they're buying right now because they wanna make sure they can sell their current inventory that is on the market.

So long story short, I really encourage you to be somewhere in that Sunbelt. I'd really encourage you to use Privy if you aren't yet. And I'd really encourage you to just be in a place where you know your buyers are willing to buy at certain price points. The market is still moving. It is still a great time to be a wholesaler, fix and flipper, as well as a buy and hold you just need to run your numbers correctly and if you do that then you're going to get deals done you're going to be able to make money hopefully this helped that's that's my answer to the kind of the all-encompassing what am i doing how am i changing not really changing much i'm offering a little bit deeper discounts when i'm offering on these homes but essentially i'm going to stay in markets that are great for flipping and holding for myself in my portfolio. Hope this helps. Again, go to

minutepages.com for your webpage. Check it out. It is the best platform for all real estate investors to have a presence, to have authority, to have branding. Make sure to go to minutepages.com. I'll see you guys on the next episode. Oh yeah. And by the way, if you're listening to this on iTunes, give me a five-star review. iTunes really starting to pump this out more. And if you're not yet, make sure you're over at my YouTube, youtube.com forward slash Justin Colby. Make sure you like this video and make sure you subscribe. Talk soon.