The Science of Flipping - Wholesaling Real Estate Defined

Episode Date: December 17, 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  

Yo, yo, what is up? What is up, everybody? Welcome back and welcome to this episode of the Science Flipping Podcast. Now, I'm recording this right after I had one of, well, an incredible call with a very high level student. They're already doing a decent amount of transactions this year. And we had a really honest conversation. It just really made me want to record an episode right now because it's top of mind. It's fresh in my mind and I'm fired up about this. So here you have it.

I'm coming in hot on this episode. Hopefully you guys can handle it. I'm coming in hot on this episode. Hopefully you guys can handle it. Stay with me. Now, as always, if you're listening to this on iTunes, give me a five-star review. I would love that. I appreciate it. And if you're not yet, make sure you subscribe to my YouTube channel. These are videos and I drop more videos besides this. So go look me up, Justin Colby, and subscribe to my YouTube channel because I come in with the fire each and every week. And by the way, while you're there, make sure to engage. Make sure to like my videos, comment on my videos. I'm here to help you. So with all that out of the way now,

with all the housekeeping out of the way, let's talk about what my student brought to my attention that just got a fire lit up under me. So this student, they will remain nameless. They're actively doing deals each and every month. They've transitioned more into doing more deals outside of their home market. And specifically, they're doing wholesale deals. And for whatever reason in his head, he made up this idea and thought that he brought to me, he was having some challenges and here's the challenge. And you might be having this challenge too. He was tired of wholesaling. He didn't want to wholesale any longer. I don't know if I just want to wholesale anymore. I don't know if I love wholesaling. I lost it and I didn't lose it in a

bad way, but I said, wait on hold on hold on what do you mean you are making a ton of money wholesaling and his point was yeah Justin but you know as a co you're coaching me and you're coaching me to build wealth and continue wholesaling and I just don't have the passion for wholesaling anymore I said stop immediately stop stop what you're talking about because here is what I need you to do and I'm hoping you guys can hear me loud and clear as well I need you to reframe wholesaling and I'm gonna start to make this a big part of what I talk about in all of my youtube videos podcasts social media you're gonna hear a lot of this from me because I need all of you

out there who are investors to stop talking about wholesaling in the way that it has been defined over the last, let's just say decade or so. Yes. In definition, are we technically contracting a property from a seller, finding a buyer, lining them up and assigning them and collecting a check in the middle. Is that the definition of wholesaling? Yes, it actually is. But I want you to, and I need you to remove it if you're going to find success in building wealth. Okay. Because if you're anything like me, it's great to make a lot of money and become rich. But the key and the reason we're in this industry is we want to build wealth. That's it. End of story. That's what we're trying to achieve. So if you're like me, if you're in alignment with

that, then you need to reframe how you think about wholesaling. And here's the frame you need to put in your mind and you need to believe it in your heart because it's absolutely a hundred percent true. We are in the business, the wholesaling business of creating opportunities. Stop, period, end of story, underline, bold, italicize, that's it. You are in the business to create opportunities. And for those that are in that business, we can call that wholesaling. Because here's what opportunities provide you and provide me. They provide us the opportunity to buy rentals. They provide us the opportunity to fix and flip.

They provide us the opportunity to do seller finance acquisitions. And you might wholesale them or keep them as rentals and not have to get loans. You might get the opportunity to wholesale a property. You might be able to create a whole lot of opportunities if you focus on creating the opportunity. Now I've said it before and many people say it nowadays, the wholesaling business is a marketing and sales business and it's correct. But I want you to even reframe that. I want you to reframe that definition into it's an opportunity business. Because when you do come across a seller who's looking to sell, now you have the opportunity to either make money quick

with wholesaling, make money pretty quick with a fix and flip and maybe even make more money or you get to opportunity to build wealth and that my friends is what I need you to be in alignment with that's what I need you to believe the same way I believe it let me give you a great example here we had a lead come in laugh wanted to come in it's Friday today so I I think it came in Tuesday. And actually, because I was training some of my acquisition team, I actually handled the lead. It's a lead in South Carolina on a lake. And as a conversation, I just said, hey, ma'am, I'm not certain whether as an investor, I'm going to be buying this as a portfolio for myself, because on a lake property could rent pretty well. Also could be Airbnb or maybe I might

go in and kind of do the whole TV thing and rehab, flip it and make it a flip and put it on the market. But either way, as an investor, I need to look at the property this way. So understand my offer is not going to be your retail MLS offer. And we need to find a way to meet in the middle, ma'am. I want to buy it for a dollar and you want to sell it for 10 million. Neither of those are going to work for either of us. So where do we go from here? By me asking that question, it opened up the conversation to even say, Hey, if I can get you the number you need, she, she is closing on her property, her new property, January 5th. So she's like, I'd really like to have my money from this home that I can use for this other property that way I

don't have to liquidate other things she owns his home free and clear I give you this example because then it opened the opportunity for the acquisition strategy of creative financing to come into play now all of a sudden because I'm focusing on wholesaling I now have the opportunity to Airbnb this, buy it as a long-term rental, or flip it. Oh, yeah. Or wholesale it. Guys and girls, I need you to really, really believe this. You can start to hear my tone here because I'm passionate about this one framing of the business wholesaling.

Wholesaling and flipping is transactional. While trans transactional real estate will get you rich and it will make you a lot of money if you do it right, obviously it's not going to build you wealth and you need to be in the business of getting rich and turn that richness, that money into building wealth. And you need to think this way. If you're anything like me, the biggest mistake I've ever made is I didn't start building wealth earlier. And I want you not to make that mistake.

So reframe this whole wholesaling. I don't like wholesaling. I don't know if I wanna focus on wholesaling. Stop, stop the nonsense. Focus on creating opportunities for yourself. And yes, if we need to put a label on it and define it as wholesaling, fine, because that's what it is. So don't worry about like, you know, the traditional definition that all of us gurus have given wholesaling. I'm ending that. I'm tired of that because I'm still wholesaling because it's creating me opportunities. Yes,

I do traditional wholesaling where I find a buyer for my property, but I also flip. I also wholetail. I also do creative deals. I also hold and I buy for the long-term rental because it gives me the opportunity to build wealth. And if it doesn't fit my wealth bucket, then I'll wholesale it or I'll flip it and I'll do the transactional real estate because it'll get me rich. And guess what I can do with all my cash? I can invest it. Buying rentals. I just, I know this is going to sound crazy, but I just took some of my self-directed IRA and buy cryptocurrency from it. Cash is great. If you guys are just tired of making a whole lot of money, then I'm not the guy you should be listening to. Period. End of story. Do not listen to me if you're tired of making money, right?

Because I like making a lot of money because that money provides me the opportunity to do a lot of different stuff, but also that provides me the opportunity to do wealth. Here's also what happens when you're a wholesaler. By the way, if you're not watching this, you need to be because the facial expressions I'm making are hysterical, right? You need to be watching this. Go subscribe to me, Justin Colby. You'll love these videos. So the reality is being a wholesaler creates more than just the transactional opportunity. It creates relationships. And because of those relationships, what I have now been able to build

my business around is these relationships are leading to other relationships that are continuing to provide more opportunity. Again, I know this is going to be, it's going to probably mind fuck a lot of you people, but wholesaling is an opportunity business, end of story, even to the point of building the relationships within this space that will lead to more opportunity. How do you think I found nine rentals to go buy as a portfolio at a discount? Do you think it came from my marketing? Because it didn't. It came from my relationships. And that relationship led to another relationship. And that relationship is what provided me the opportunity to buy these nine rentals. How do you think I'm funding all nine rentals?

You think I'm just going to whip out a checkbook and do that? No. I'm a firm believer in using other people's money, OPM. But my other money, the person that I'm using privately, came through a relationship I had. And because of my business and what I do as a wholesaler, it led me to a conversation with someone who makes a whole lot of money and was very interested in lending money.

And we had a conversation. Now they partner with me on my rentals. Guys, wholesaling is not just find a motivated seller, find a buyer, put them together. Stop. Done. I am changing the frame and definition of this business. It is an opportunity-based business, and it's going to create you a whole lot of cash and a whole lot of wealth if you do it right.

And if you follow my instructions, because I've done this for 14 years, I've done 2000 transactions. I'm actively buying rentals. I'm actively wholesaling and actively flipping. If you do this right, you're not only going to make a whole lot of money, you're going to create a whole lot of wealth. So pretty fired up about this. Obviously you could hear it in my tone, but you need to really frame this in your head, right? This is not just finding a seller and finding a buyer. This is create the opportunity. And from that opportunity, you're going to have choices. And then you get to choose what the best exit strategy is and what the best strategy is for you, whether it's going to be fast cash or wealth. Hopefully you guys find this awesome. Make sure you like this. If you are watching this on YouTube, YouTube gods love when you like my videos. Make sure you're subscribed,

turn on notification and drop me five stars on iTunes. If you haven't yet, I'll see you guys on the next episode. Peace. Outro Music