Nov. 21, 2022

The Science of The Flip with Justin Colby


Justin Colby is the CEO and host of The Science of Flipping. He has flipped over 2000 homes and taught thousands his strategies. He is a nationally recognized speaker and author of The Science of Flipping. He owns 3 multi-million dollar companies and is passionate about helping entrepreneurs.

https://thescienceofflipping.com

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Transcript


 Good day, fellow dealmakers. Welcome to the deal. Scout. My name is Josh. I'm your host. I am a deal guy. I love deals, and we've talked about deals on the show ranging from SPAC to lemonade stands. I've interviewvalet my daughter who sold the book online at age seven or eight or whatever. We've talked a lot about different types of dial. The purpose and mission of the show is to educate ourselves on different types of deals out there. Really what I want you to do, if you're listening in and you hear a cool guest and you want to do a deal with them, their contact information will be in the little show notes below. Connect with them and do a deal. That's awesome, right? With that, on today's show, we're going to have a guy named Justin. Now, you might just be listening in, but if you're watching it on YouTube, the coolest looking background, it's like, green. 


 It has like this cool, like, superhero kind of esque behind them. 


 Just do you remember back in the can't remember he had the glasses and blonde hair and he had bright green in the background? 


 That's what you look like without the hair. 


 Without the hair. Team Chat was taken from me. 


 You didn't give it up willingly. 


 Just I did ish it was more like my wife was like, you're kind of balding. I said, all right, it's gone, I'm out. This is done. 


 Hey, you have a nice head. 


 All right. Thank you, brother. Thank you. 


 Yeah. So, Justin, who are you? 


 My name is Justin Colby. Born in San Francisco, California. Went to UCLA, got into sales immediately. I've never been employed. Been an entrepreneur since I graduated UCLA. I became broke, bust, and disgusted back in 2005. Lost my house to foreclosure. Ripple, Min. Took my car, ended up on a couch. Live, gen six. Made it through the recession without going BK. Got into real estate very heavily. I flipped over 2000 homes. I run a full time national real estate investing company. We just opened a fund, real estate investing fund. I'm very active in the real estate space and the education space. I teach people everything I know, and as long as they do what I advise, they usually become very successful doing it. 


 Dude, you're awesome. So riding someone's couch, right? So that is super humbling, right? Live. I've had to move back in with Mum and dad. I've seen multiple vehicles go on the back of a tow truck, handed over keys to house. Right? 


 Yeah, I get it. 


 It sucks going from hustling hustling to broke, busted and disgusted. Talk to me about the fall. Talk to me about justin was rising to the top. Bright, ambitious guy, visionary, hit bottom. What was that like? 


 Yeah. So I was in real estate. I helped my friend build a brokerage in Northern California, and we essentially were just selling his dad's new home builds. His dad was a developer, is a developer, and we would sell his new home builds. I had no skill, because if you remember back in the day, if you're old enough, fully financed loans, 100% financing, stated income, blah, blah, literally everyone was getting approved. Essentially, I would just be an order taker. Whoever had the highest offer, we took, and they funded and I made money. Well, when the market started to shift, I had no skill set. I had no book of business. The market crashed in 2008, but there was a lot leading up to that. That's when everyone remembers crashing. All of a sudden, loans started to dry up. Going into 2006, it was a lot harder to get funding. 


 When people don't have basically free money throwing at them, it became a skill game. Meaning if you had a book of business, if you knew how to if you had a skill set, you could still maintain and do it. But I didn't. So I took it. Min the teeth, right? So I made a lot of money. Had an expensive home, had a very expensive car, was 25, 26 years old, had 40 grand on credit cards because I was paid off every month. So I was like, who cares? Let's just get the points. I couldn't pay it off, and I had a mortgage and a very expensive car note and crash, right? And so very humbling. Fortunately, I was single. I didn't have a wife or a kid. I was able to kind of couch surf at that point. I wasn't willing to call my mom and dad. 


 I felt like I was old enough to say, what? I'm going to figure this out. Live. I don't come from an entrepreneurial family, and we don't have money per se. Live. I don't come from a poverty family, but our family didn't have money. I was like, they're not going to serve me, right. I'd rather call Buddy and say, hey, do you mind if I sleep on the couch? Let me stay in my entrepreneurial mindset, because my family would say, Go get a job. Well, I didn't go get a job. I went full time min a real estate investing, not knowing what I was doing. Back in 2007, let's call it, there's no Gurus, there's no YouTube, there's no Instagram, Facebook, there's nothing to go find a Justin Colby coach to go help me do this. So I called realtors, right? That was the only place I needed to go get deals. 


 It took me nine months to get a deal. As they say, the rest is history, right? 2000 plus deals later, what is the. 


 Most comfortable couch to sleep on and what's the worst kind of couch to sleep on? 


 They're all terrible. I'm six four, bro. They're all terrible. I don't think I've met a comfortable couch right some are worse than others. Right. The sectionals that literally have a section between right? Your lower back and your b*** live. Those are awful. 


 Yeah. The convertible ones. The ones that anytime a buddy asks you to move and you see the couch, that you Ian Hill the bed out of it. Those are the worst, heaviest, most uncomfortable beds. 


 When I crowd surfed 100%, the worst. I would almost tell you if someone had a futon couch, I was like, yes. Lease is a flat foot on, like, not bumped. I still didn't fit, so I'd have to sleep on angle, right? Because straight away I was six four. My feet would hit the thing. My head is hitting the thing. But hey, I took it, dude. 


 I'm blessed at 508, I could fit on any couch. Almost out there. It's perfect. So justin all right. Broke. I like that, man. I never heard that. Broke, busted and disgusted, right? Like, that's a cool thing to live. Go on. What does disgusted mean? Right. Live. I get busted, right? Like, I get broke. Disgusted. Disgusted with yourself, disgusted with the situation. 


 Heath I mean, I was broke financially, but I was broke mentally and psychologically and spiritually, I was just broke. I was just broke in, right? I say it's nice, alliteration broke, busted and disgusted. But, when you're broken spiritually and psychologically, that's a lot to handle. You just got to daily, you got to be committed to getting yourself out of the couch. Right, but I was blessed with the ability to do that. I don't know where I got it. I just told you, I don't come from an entrepreneurial family. I don't come from a family that, built this big thing from nothing. I literally have this shoulder shrug mentality. It's like, tomorrow's a new day. I got this. And I've always had that. I don't know where and it may have come from. My childhood. I grew ups with alcoholic parents, and, I moved out at 14 years old, and I kind of had this ability to say, I got to rely on myself. 


 Right? I was tablet to always just have a positive outlook on things. Live if you can make it through that type of childhood with alcoholic and parents and all that kind of stuff, really never that bad. 


 Running from fear or chasing purpose, right? You come from a background of pain or trauma or something like that, one of the things is I'm going to run from that, so I'll never be like my fill in the blank, my dad's situation, mom situation. There's that running from pain, which I think is a great motivator. Right? Live. I don't want my kids to suffer the things that I had to suffer. Min the show. At what point does that burn out? You have to look at a bigger purpose, or is that always a good motivator? What are your thoughts, man? 


 I would argue it's always a good I look at my friends that are nine Seth Silvers, and I'm terrified of that. Through my entrepreneurial journey. There are moments where you're like, f***, there's only a couple of bucks left in this thing. We got to get the sale or we got to flip this deal. That fear of like, what are my options? Live? Really? Am I going to go get a job? So it's always a good motivator. I think fear is always a really good motivator, as long as it's constrained. Fear for fear sake is not good, right? Like, news isn't good. They just want to fear you into being captive. They want to constrain all of us, really, is my opinion. I'm not political, and I'm not going to go there. It's funny. I married a Cuban woman, and you should see and understand that American Cuban people are so different than the rest because they really know what communism is really like. 


 They know what it's like to live. Their food is parcelled out. They only get so much. It's rationed. If you're out of food for the week, you're out of food and you have to wait for the next. Their mindset is differently, and I've been given that because I had to fend for myself as a kid. I've always been like, I got to go eat, so I got to go out and kill so I can eat. I've just kind of had that as I had a tough childhood. But I didn't rely on fear. I just relied on that's how I'm going to eat, right? To me, the place to live is abundance and the ability to go achieve anything you want versus the fear. And if you can stick there, live. Recently, I've been spending a lot of time with Graeme Carling and people like Bradley, and being able to understand their philosophies and mentality is just mind blowing. 


 You're just like, Goodness gracious, am I playing way too small? Right? I want this goal. They're like, well, why is that not in grand card owned fashion? This is not the grand card on everyone else's. This is me with his daughters, sitting down, eating, shooting the s***. He's like, Justin, why is that not a ten X number? Why are you thinking so small? What are you doing? But that's their nature, right? Now, again, he's 62, so he's like, hey, dude, I have 20 years on you, right? You have time to get to this, but you need to really level up this ability to figure out what you can achieve, because you can achieve a lot more than you're allowing your goals to be. I can go get more. 


 Yeah. So good. Before we go there, I do want to talk about spiritually broke. I do want to talk about this success. Thermostat right? I just got off the phone with Gino. You know, Jake and Gino and the. 


 Things that they're doing, they're jumping on my podcast right after this podcast. 


 All right, so tell Gino Josh Wilson and said hey. He's cool. Get him to sing opera for you. 


 All right? All right. 


 Dude can sing. All right, so good. But you talked about eating, right? You talk about the things that image consulting and such. Cuban wife. Do you get some tres leche? 


 Every once in a while, I get all this stuff. It's so amazing. I don't know how there's a city person in Miami. 


 Yeah, okay. 


 I'm not joking. My body does not look the same as it did before I got to Miami. No, live. I've said, this is too good. I'm not going to give myself constraint right now. I'm meeting ID all cafe cone. 


 Let's take it. 


 And they have live £7 of sugar. They must put, like, seven scoops of sugar in their coffee, and it tastes amazing. 


 You crash 20 minutes later. You got to have another one, right? 


 Yeah. Now, this is not this is just your Americano. But I still like my cafe colony. 


 Yeah, I feel you spiritually broke. What does that mean? Right. I could open my wallet there's nothing in there, or whatever, and I could go, I got no money in there. That's broke. What does your spiritual wallet look like? 


 You have no spirit. You have no guiding light. You're just kind of existing. The extreme. When someone spiritually broke, is there's nothing to live for, right? That's the extreme. Heath I was nowhere near that, by the way, just for clarity purposes, I do not have that story of I was at the brink of potentially ending. No, I don't have that story, but I have the story of, like, I'm just here, I'm just a human being. And that's not my philosophy. Right. I'm more like a human winning. Because if you're just being you're just existing. Right? I was just more of a human being, and that's broken. Right. You're not going to go crush it and achieve if you're just being if you're just waking up and being a person and just being there. That's what I mean. 


 How do you fill up your let's just say you look in your bank account, there's $0 in there. You look in your spiritual account, there's $0 in there. Let's just say you were spiritually broke for a minute. How would you go about filling up the spiritual bank? 


 I think a lot of that has to do with your info diet, right? So what are you digesting information? Very quickly, I turned that around, and I obviously didn't sit in that human being long. I definitely became a human wing again, but it had to do with, like, diving into good audiobooks, diving into good podcast, getting around the people who are motivating versus not, I guess you could say not being alone, getting around people community is huge. I think one of the biggest human needs is your community of, likeminded, people. I take that in different forms. Today I still believe in it, but then I cut a check to be in a room of people that I want to be around it. So I invest in my community now. 


 Yes. 


 I cut a check to be at that table. I still firmly believe in the same fundamentals I did when I was broke. Just when I was broke, I didn't have the check. Now I have a check. I cut a check to be in that community. 


 What's funny is broke people go, oh, I shouldn't have to pay for friends. If I pay for friends, it's not really friends and it's not essentially like paying for friends. Like, here's $5, be my friend. 


 Totally. 


 There's something different. It's investing in the community. It costs us a lot of money to run a community and to build a community and to be a part of other communities where they're 20,000 steps ahead of me. I'm like, Dude, I'll pay you. Like, teach me, show me. 


 If you don't become friends, who cares? Especially as an entrepreneur, if you're not paying to be a part of a community of others that are doing bigger and better things than you are, then just be okay with where you're at. Then don't b****. Problem is, everyone likes to b****. 


 B**** is fun, but it won't get you anywhere. Nobody listens, right? 


 And no one listens. Get to the table you want to be at, right? Live, dude, every year I spend a lot live already. This year I've spent 75 grand. I'm considering one more coach by the end of the year. Last year I spent 115 grand. The year before that, 85 grand. I only say all that. Definitely. That's not a flex, right? It's just more like because I'm hellbent on winning and being better and there are just things I don't know. 


 Why are you hellbent on winning? 


 Because we only have one life to live. What, are we just going to sit around, exist, live? We got a f****** win in this lifetime. We only got one of them. Just didn't practice. You don't get practice. And then again, this is it. So go win. 


 I feel the same way. The thing that drives me is this idea of my pain will drive me, right? I don't ever want to have to go through that again because that really hurt me. It hurt my wife, hurt my family. It was embarrassing. Like, dude, don't ever want to be back on the bankruptcy court. I don't ever want to go there. I have to run for it. I have to move. And my wife trust me, right? I've got all these things going for me, and I've got to win. There's no turning back. I've got to win. So good. This info diet, man, in this community min this, like investing in this and running forward. I mentioned I spoke with Geno about this. Like, there's a financial thermostat, but I think that there's also a success thermostat. You're sitting down with Grant and his family and you're looking at things and you're sharing your ideas and to your friends that let you their couch one day, they may be like, whoa, Justin, that's a huge idea. 


 Grants like, dude, why do you think it's so small? What have you experienced and how do you push yourself up higher? 


 I again cut checks to play in bigger sandboxes. Right. I love my loyal friends from childhood, but many of them don't have the drive of entrepreneurship that I have. Right. I don't go to them for entrepreneurial advice or camaraderie. I go to them to reminisce and have fun and be, childhood friends. Right. Love heath other differently than we did when were growing up. Right. When it comes to business and wanting to achieve more, those aren't the relationships I lean on. I cut a check, as I just said, masterminds or mentoring or whatever the case may be. Right. It's always served me every year, every decade, like, I've done min 15 years. Technically two decades or a decade and a half, it just serves to do that, right? 


 Yeah. 2007, no skill set, no book of business, you start pounding the pavement, talking to realtors, trying to find deals. Took nine months, I think you said, to find your first deal. 


 That's right. 


 Alright, so since then flipped 2000 of them, and now you teach others to do that. If you had to take a guess on how much in real estate value, that was over 2000 properties take a wild a** guess. 


 That's a tough. Let's just use 150 grand as a benchmark, right. Times 2000, in terms of value of homes, I didn't make 150 grand on profit on each other. I'm saying just in terms of value. I don't know 2000 times 150. Because I've done deals for 30 grand. I've done deals for 300 grand. It's kind of hard for me to say 150 times. 


 Do you have a calculator? 


 Because I can't do 2100 deals because it's over 2000. So that's 315,000,000. 


 Awesome, dude. All right, so now you and I, 315,000,000 worth of transactions under the belt. We go back and we see Justin, who's about to go crash on his buddy's bed, and we go, Justin, let's take you out for coffee, bro. Kathy calling that you min a tres. Let you. 


 That's it. 


 We'll pay for it. 


 That's it. 


 You get to tell yourself, like, Justin, this is what you got to do today. 


 Team chat. 


 Would that be you have no money, Justin, of the past no money. We're buying a coffee, right? 


 Team Chat, would you say find $97 a month and use Privy explain. So there's a new soft. It's not actually new, but new to me that I and I'm coaching my students to do. Because the strategy is straightforward. It's basically realtor outreach. You have a software min that it gives you access to something like 50 plus MLS so you don't have to be in your own market anymore. As someone who's been doing virtually wholesaling and virtually buying and holding and virtually flipping now for the better part of two years, this was a game changer for me. If you can't find $97 a month, then we're talking live. At least I could have done that, right? I could have borrowed that or whatever the case. Dude, my students come into my coaching program, and many of them in the first 30 days get a check. If it's not in 30 days, within 60 or 90. 


 By the way, those are the students that do what I advise versus the ones that say they do and they actually don't. Yeah, that's what I tell them to do. 


 Yeah. Super awesome. So access to dial, right? This software platform gives you access to deals, and with training, you could go close some deals, right? My first wholesale deal, I think I. 


 Did fourteen K. I did seven nice. My first two deals, I did fourteen K. The first two deals, I did seven K and seven K. It took me two details of the first year. The first deal was nine months in. The next deal came right after, right? Because it's always that way. Live. When you get your first deal or you do the thing, it comes right after that. It's always the best time because you have momentum and you have vonfinch. I made 14 grand in my first year of business of a real estate investor. 


 You have some dollars in the bank. You got this high of a deal, right? Live, you're like, oh, man, I did it. You get the vonfinch boost. That's the best time. The best time to do it's, 03:00. You just close the deal. Don't go celebrate. Don't go get a bottle of champagne, go do another deal. 


 Because you're 100% right? Because you have that confidence and you have that momentum, and you have this, like, oh, s***, this is real. Let's go, let's go. That's what I want for everybody. Everyone's not built the same way, right? Many people are like, oh, I just made seven grand. I'm going to go pop bottles at the club, or whatever the case is, right? So, yes, it's a more of a the best time to get the next deal is right after first deal period. So ride that wave because momentum ends. It's like a wave that crashes a short at some point. So you want to ride it. 


 Heath because then you got to paddle back out and catch the next wave. Any surface out there know that paddling out on a rough day will wear you out. 


 Brutal. But great workout. 


 Great workout. 


 I like stand up paddle, burn some calories. I have surfed, I'm not a surfer. 


 Okay, copy that. But, yeah, so, yeah, you could burn some calories and such like that. In the financial world, that's called dollars. Paddling it out against a tough market, against a lot of competition. When you got a wave and you're catching waves, man, that's when the role, that's when they double down. Right? 


 Well and if there's real estate investors, and I'm not sure entirely your audience is just straight real estate, but if there are, man, this is going to be a unique next twelve months. I am not a doomsday guy. I don't think there's going to be a crash, but there is going to be some pivoting and adjusting that is going to need to be made by investors. If you have not yet gotten into the game, I'm telling you, this is the time. If anything, 2008 is when everyone should have jumped into real estate investing, because the most amount of wealth was built between 2008 and 2012. That five years. If you were a real estate investor and you knew what you were doing or had the proper advice, you would have millions and millions and millions of dollars. Right. If I knew what I was doing, I would have bought more rentals. 


 Because Phoenix, dude, you could pick up properties for like 25, 30, 40 grand that were nice. Three bedroom, two baths. And I didn't have the money yet. I didn't have the coaching yet. I didn't have any of that. But this is the time. If you are not in a real estate investing or in the real estate game, I would encourage you get in the next twelve months. Because when the market is shifting, it is the best time to get in. Right. In my opinion, a lot of people got in the last one, two, three years, they made a lot of money, but they don't actually have any skill set to go along with it. They just kind of lucked out based around the market. 


 Heath all right, so I just got out of college. This is hypothetical scenario because I'm 40 years old, so I'm throwing a scenario at you, okay? I just got out of college, got some student debt. Man, I want to hustle. I don't want to go work for a job. I saw so many people getting laid off and this and that. Man, I need to turn to real estate. I don't know a d*** thing about this. Right. I got some money that I'll throw towards some coaching for you, Justin. Justin teach me day one. What's the first thing I got to learn? Day one no real estate experience, and I want to go make some money like you do Min real estate. What should I do? 


 Again, I would tell you privies. I know I don't want to echo the answer, but it's just so inexpensive and so easy. Now, you need to know how to use it. I need to know how to make an offer, talk to realtors, etc. Right. But it's agent outreach. Right. Now you do need to learn that. It's not just you go get it and you're going to go collect a check. I mean, again, I would highly encourage you to try to find money for a coach, because it's always funny to me. People find money to get an education. Min a four degree, four year institution, but live a coach. I Ian Hill. You exactly how to make more money. All of a sudden, they come up short, is shocking. I'll tell you to go get a coach, but in general, maybe just go into sales, learn sales. 


 Because real estate really is a sales game. It's a marketing and sales game, period. Whether you're flipping homes or wholesaling or buying and holding, you're marketing for that asset, and then you're going to sell the agent or the homeowner on buying it, and you're the right buyer. If you can understand sales, you'll get more deals. 


 Show me a good way to do this that you've seen, because you've done a lot of transactions yourself and you've coached a ton of people. How many people do you think you've coached over the years? 


 Thousands. I don't have an exact number, but thousands. I started coaching back in 2014. So it's 2022. 


 You're looking at someone's sales process, and you go, okay, that's bad. Oh, that's good. What are some things that you see in the real estate game in the wholesale world? 


 I'm not a hardcore seller. Meaning I don't. Wolf of Wall Street. I'm like I'm just not like the car salesman. Right. I don't believe it's necessarily bad. It's not my style. I'm much more a soft sale type of guy where I'd almost rather someone, and I do this and I coach even my team. We have team meetings and we'll listen to calls and say, dude, that went pretty awful. Let me give you a suggestion here, and a lot of it is if you are the homeowner in this example, right? Hey, listen, Josh, I don't know if I'm going to be able to buy your home, and that's actually going to be okay. I can't buy everybody's home. I might not be able to get it the number you want, and that's just okay. I don't want you to feel any pressure about whether this is going to work. 


 I would like to, if it makes sense for both. I just don't believe in someone's got to lose if someone wins, right? I want this to feel good for both. Of us. Is that cool? Now, I've set the tone where I've tried to reduce a lot of the pressure, and it's very indifferent. My indifference then comes off, and more often than not, whether it's a homeowner or realtor or whatever, they lean into that indifference live. Oh, you're not trying to force me to do Chris PR. You're not trying to then they will usually lean in and then I know there's something to be had. Whether the dial gets done, I don't know, but I know that I've got them, if you will. Right. We still need to get to terms, but yeah. 


 On a cold call, I've seen a lot of guys do this, and I love your thoughts. Right. So you're about to make a call. How much time do you spend analyzing the house, the property, the connect? Again, what do you see for people dialing for dollars and doing this whole sale? Where do you see people get caught in analysis, paralysis or whatever before the call is made? 


 The vast majority of my newer students get caught in that exact same thing. They go and do all this underwriting, comping it out, trying to figure out every exact number, and then they'll make a call after 45 minutes of trying to analyze property, and then they don't even get a hold of the seller. They're like, how come I never get enough offers out? Like, bro, because you spend 45 minutes analyzing a property that you never even talked to the seller on. How many times a day does that happen? Oh, eight. Well, shocker. In an eight hour day, nothing happens because you analyze the deal scout of a property that you had no communication with anybody, and you got nowhere. So let's reverse engineer this. Let's go make more offers, even though you don't know if it's the right number yet and see if it can be the right number. 


 Right. That's where just having a fundamental understanding of your numbers not I call it Bubba Math. Get close. Right. You can perfect from there, but you don't need to have a dialed in absolute guarantee. All my students that are newbies, well, how do I know exactly how much the rehab is going to be? Very basic numbers. So I have three basic metrics. Right? You have repair is $20 square foot, you have rehab is $40 square foot. You have redo is $60 square foot. Look at the pictures. Associate the square footage with those dollar amounts. Do you think it's just a repair or a full rehab or redo? Redo would be something where, like, you're moving walls, you're moving the house repairs. Like, you just need new cabinets and new countertops. Great. I'm sorry, rehab is new cabinets, new countertops repairs. Like change the door handles, throw on some new paint, call it a day. 


 Right? 


 Dude, that's so cool. Really nice. 


 But it's bubbling. That but it helps newer people at least have a baseline where to go, but they still want to know the granular go make offers, right? This is why I say a lot of my students are starting to get deals in the first 30 days, 60 days, 90 days, because they're actually doing what generates money, which is the offer. 


 The offer, yeah. Just make the phone call. One of the things that I like to do, I didn't like to do it, but it worked really well. If I see a sign, I'm calling it, right? If I see it for sale by owner sign, I'm calling it. I'll probably go knock on the door, and I'll knock on their neighbor's door, right? I'll just stop and go knock on the door. But I used to love this. I don't know if you do this. First of all, are those good tactics live? Do you recommend those kind of things? 


 100%. Especially if you have no money. So you're doing two things. You're going to leverage your time or you're going to leverage your money. If you have no money, you got to leverage time. 


 So good. One of the other things that I did, because wholesaling you're flipping to another investor, right? I'd see these signs, we buy houses, cash. I'd go, tell me exactly what you want. You're knocking on doors, you spend all the money, you're putting these bandit signs. I would go to the MLS, and I'd use these tools like a previer, whatever. I'm sending them deals, and they're like, yeah, that one's good, cool, thousand bucks, bird dog fee, whatever. Right? That's a way to make some money. Let's just say you came to Ocala, right? The market is hot. There's not a deal to be found. Like, everybody's saying the prices are too high and fix and flip and wholesale and all this stuff is dead, right? Because the market is too hot right now. Give it a year, whatever the case may be, you come here and you and I are going to go out for a day to do something or to close some deals. 


 What would you recommend you and I. 


 Do if we're going to go get some deals? 


 Yeah, let's go get some deals. 


 Driving would make some sense if we didn't want to go out and spend a lot of money. The reason why I like virtual whole settings, it's all the same system whether you're local into the market or not, right? If you're going to call, text, direct mail, you can be in any market. Right. Usually the main reason people don't do it is they don't have the buyers as a wholesaler. Right? So that makes sense. Yeah, I would tell you there are lists, such as a vacant list or like, I have a software called the Rei lead machine that actually gives you data points with our artificial intelligentpe of like, something like 4 billion data points that these people are more likely to sell. I would use that software and I would download a list of 100 homes and we'd probably go doorknock those 100 homes. Now it doesn't mean they're going to sell at our price, but based on the data sets of the last 40 years of tracking real estate, those data sets and they're obscure s*** by the way. 


 Like things like is there porch screened in or not? Right? Did the owner of the home just open up an application for a lease and have a credit check? Because if they did, what's going on right live just obscure s*** that you and I would not be able to do unless it was artificially done through computers. I would do that. I would bring that list of 100 and we go start door knocking. 


 Yeah, you get a list. Rather than just pick a neighborhood and go farm a neighborhood or something, you can do that. 


 I'm not going to say there's anything wrong, but you can just pick a neighborhood and start looking around for trashed houses or overgrown Rross. I would just say we would jump on Google and virtually drive for dollars on Google with my little guy. That's just as easy. We don't actually have to jump in a car if you're going to do by neighborhood. 


 See, I like this. You can either leverage your time or your money. If you don't have money, you got to leverage your time. And driving for dollars could be great. There's also investors that would go, hey man, I'll give you the list. You go knock on some doors for me and I'll pay you 100%. 


 As someone that doesn't have any money, then you're now the bird dog. You'll essentially even be able to do either a wholesale fee or just a fee, like a flat fee of three grand or wholesale fee. And they'll do it. 


 Yeah. Alright, so we go let's just say we find these data points and it's just like bing, bing. Here's a house that all the red indicators are saying that this is a good wholesale property. No sign in the front yard, lawn is overgrown. See a car in the driveway, the person's home see lights on. We're going to do a cold knock. No indication if it's for sale or not. How would we approach that? I like this game, by the way. 


 Yeah, it's simple, right? You just say, hey, I'm walking the neighborhood. I want tech investments property in the neighborhoods. I've been walking the neighborhood and I figured I saw lights on, I might as well talk to a neighbor you interested in selling. That's it. That's the whole script. You're done. And then they say whatever. They say, yeah, I'm walking the neighborhood. I want a home in this neighborhood as an investment property. So I'm taking a walk. Why check it out. You see how the light on? Just knocking to see if you have any interest in selling or tell me a little more, even if you don't. Would love to know more about the neighborhood because I think it's a good neighborhood to have an investment property. 


 Super cool, man. Why do we over complicate stuff? Why do we do the analysis paralysis? Why is that block preventing people from doing deals? 


 Some of it is personality, right? There's a great book surrounded by idiots that I tell everyone to read. Basically, it's like a color personality test, but it has a very good what do they call them? Not a Fable is a tablet where it's like there's an education in the story, right? So it's kind of about that, right? But some of it is personalities, right? The other part is I don't know. They're so scared of fear, I guess, is the reality that they want to make everything perfect before they take any action. That's why they over analyze it, to make sure when they do it, they're totally dialed in. They don't want to make a mistake. That fear is driven by judgment, right? You don't want people to judge you. So stop the nonsense. Just go take action. No one gives a s*** about you. Here's the reality. 


 They don't, right? They have their own lives. They have their own headaches. They have their own issues. They don't care. They just don't. If they care for five freaking minutes, and then they're onto their own trauma, right? So that's the reality. So just go do it. Don't make it perfect. Done is better than perfect. Perfect is the enemy of achievement. 


 If you could look back from live all of the books that you've read, what book would you say is the worst? 


 I've never heard that one. 


 I pulled that out of my eyes because I was like, that's the best book. But what book would you read? And you're like, this is absolute s***. 


 Yeah, man. I'm kind of stumped because I just read so often. I don't know if I've ever read a book that was sometimes I read books that are really heavy in terms of I call it Live Radio Instructions, where they're just live thick. You're just like, this is not fun to read, right? Because they're, like, just dense type books, if that makes sense. They're like, thick. They're headed it's like accountant s***, right? Where you're a law book, right? You're like, oh, my God. Some books. I read them like okay, I'm done. I don't care, right? Live this is not my jam. I'm like, Give me a crayon book and let me get where the pop ups? But no, I don't know. I don't know if I have that. I think there are books that I read that I just put down and say I had done because they're a little just too live. 


 I say it's almost like it's written as if it's a law book or it's written like an accountant book or something where you're just like, not for me. 


 Yeah, not for me. Have you written a book? 


 I have. The science of flipping shocker. 


 Nice. Hey, how do I get a signed copy? 


 Good question. Because I don't have any more copies. I used to when I left Phoenix, we just gave them out to all of our student body. But I don't know. I'll hook you up somehow. 


 If I download it on my Amazon or my Kindle, will you just sign my phone or whatever? 


 For sure. 


 Flofr the permanent market. Perfect. 


 Heath. 


 That'd be good. Is there another book in you? 


 You think maybe somewhere down the road it'd probably be more about entrepreneurship, businessmotivation on what it really takes. I've owned a lot of different businesses. I've had experienced a plenty of failure. I think people just need to recognize that it's not all puppy dogs and rainbows. Even if you're following me on Instagram or Facebook or whatever and you're seeing live this guy, no one wants to hear the failures or see the failures, because key, no one cares, but no one wants to hear the whining or complaining. But I'm more verbalized. I expose them more now min my old age. Because I also want people to realize it's not all f****** puppy dogs and rainbows. I've lost millions of dollars before live it's happened, right? I think there's a book somewhere out there, just not in the near future. 


 What had not best feeling? What am I trying to say? What had the most intense meeting making a million bucks the first time you made a million bucks or the first time you lost a million? What had more emotion? Why more lost? 


 Why you feel like a failure, like you made a mistake. That plays on the insecurity part, the judgment part, the fear part, all the stuff of that of every human, right? And it's brutal, right? Winning feels good, but you also you go celebrate and then it's okay, well, I got to do that again, right? Live you won, but you got to like an athlete, right? Live you win the World championship, go celebrate for a week, but then the next season is going to come like, you got to do that again. It's not just over. You lose, it's pretty finite, right? It's like, oh, I just lost a million bucks, or whatever the number is. Live you lost it. Right. So now you got to avoid that. Go ahead. 


 I love this. You're an awesome guest, man. I don't know. 


 Thanks. 


 So do that. Yeah, really good job. Side by side. Million bucks here, million bucks here. I earn a million bucks, and then within 20 minutes, maybe a day, I'm going, I got to get back to the gym. I'm already feeling insecure. Can I go make it again? I'm already meeting the s*** out of myself, right? I lose a million bucks that stays with me for live years. Sometimes shedding that it's the same thing side by side, making it's with me for 20 minutes, losing it's with me for years. 


 Totally. 


 How do we strengthen our mindset? How do we strengthen our game to go, hey, I lost it. I could go make it again? 


 Yeah. You know, it's funny. This is why you pay to play at the tables now. One of my closest friends in the world can't close here. Some know him, some don't. He came to us not because I paid him. My partner at the time, it weighed on him heavily. Obviously, I have some miraculous ability to have a shoulder shrug mentality, right? The thing that he impressed upon me and now I try to impress upon others is, so what? I lost a million dollars. Cool. So what? Right? What did you learn? What did you take from it? Where were the mistakes? Have a day or two get up and keep going. So what? His point was like, I still love you. I f****** flew to Arizona for you. Live. I'm here because I knew some s*** was off. Your family still going to love you. The real people in your life are still going to love you. 


 Those that are going to either judge, make fun, laugh at you are those the people that you want min your life anyways, right? So what? Again, it goes back to the judgment and fear of judgment. If you get over that, then life is a lot easier. It just is. The best way to get over that is to come to conclusion that people don't actually care about you. They don't. There's a very small group of people in life that really genuinely care about you. If you lose money, they will care and try to help you and not ridicule you. Everyone else is useless and go be a winner right now. With that, he's also like, you got to learn from you got to understand the takeaway from this big loss, but don't let this f****** drag you into the weeds. Right? 


 Live. 


 You're going to have a lot of losses. This is a big one. I get it, but deal with it. This is entrepreneurship, right? It's the, okay, it happened, feel it for a second and get the f*** back up and keep going because it's going to happen again. Hopefully it's not seven figures, but you're going to lose again. You're going to make a mistake. Something's going to go wrong. What are you going to let every time something goes wrong, it drags you into the weeds and you implode? No, get your a** back up. We're here. Let's have a day or two of being upset. It's not wrong to be in your feelings or be upset, but you don't let that last for a couple of weeks or a month or a year. Like, you just fine. Maybe even a week at a most. When you lose seven figures, you might be in a funk for a week, but get the f*** up and let's go. 


 I would say a couple of days is plenty. It's gone great. Move on, right? 


 I was having breakfast with a guy named Cody and were talking about deals we've done and massive mistakes. We were both in the real estate bubble and min we hustled. But he said I wouldn't change anything. I look back at my deal making world. I've been bankrupt, food stamps, I've been in venture capital, private equity, and I've take a note of mistakes, mostly between my ears, right? A lot of my mistakes were self sabotaged. And I get it. The only thing that I regret, like, I would do everything the exact same because of the guy I became, the only regret I had was I pulled my wife into a deal like, hey, we're going to go do this. She's like, I don't think it's a good idea. I should have listened her. Like, that's my only looking back. I go, Man, I should have listened to my wife because that cost relationship and live we're together. 


 But it put some turmoil. Looking back on all the deals, are there any deals or any aspect that you would go back and change? 


 I want to say no. I feel like I knew one of the bigger losses. I never felt good about it, and I should probably just listen to myself. Again, if you really look back at that's why, like, right now when there's a lot of people losing a lot of money in the real estate space, take a note. I'm not. It's because of that actual moment where we lost money and we lost a quarter million dollars on the deal I'm talking about that I didn't continue to be heavy into the game over the last twelve to 16 months, and a lot of people kept going, and I warned them because of the feeling I had on this deal. Now they're coming to me like, Dude, you're f****** right. And I might have to go BK. There's like a handful of these people that have come to me about this because I told them, hey, hogs get slaughtered. 


 This is not the time live. This is the time to make money. Let everything start to unfold, because it's coming. Yeah, but bro, we're making so much money right now. We can do that. Don't I don't know what else to say. Don't they don't listen to me. There's, I don't know, call it seven people or so literally are like, oh, f***, it's going down. Yeah. And they were making millions. I mean, they were really crushing it. And the challenge you get blinded. 


 You get blinded because this idea of, oh, man, I just had a win. Oh, man, I've been crushing it. Great market hungry world, right? And you're crushing it. And then you get this idea. Anything I do touches, anything I touch turn to gold. I love that saying. Pigs get fat, hogs get slaughtered. And you've seen it before. I've seen it before and I've been there before. 


 Totally. 


 I have to we ignore our gut instinct, this little thing in our belly that's like, this seems off. How do we know when to listen to that, when to tell that thing to suck it up? 


 I would usually stick with your gut, but I hate to be a broken record. If you surround yourself with the right people and you don't tell them what your gut says and you ask their opinion and their objective because they don't have any feeling or emotion in it. This is why coaching is so good. Get a freaking coach, everybody. Because they're objective, they have no emotion. There's no emotional tie to this decision for them. If you pay to play and you're in the right masterminds, you have the right coach, and you can get their objective opinion on this, and if it aligns with your gut, then you know that your gut is the right decision. It's not for certain mistakes were made, but that's why you need objective opinions without just having to blindly go with your gut. I have a student there's couple their students, they made an emotional decision. 


 They called me after making the decision to buy this home. I was like, oh my God, guys. Fast forward two weeks, they're like, oh, no, I think we made a mistake. They're like, this is you made the emotional decision. You got hopped up on the excitement, the husband's even like, I kind of felt like we shouldn't be doing it, but it was just it felt too good. Here they are and they're like, they might be losing $7500 of burness money, for God's sake. I just only want the best for them. It's like, darn it, this is why you have coaching. You just got to utilize it. 


 It doesn't have to be a dollar value or a dollar representation. If your house was caught on fire and all the life gets out of there, all the heartbeats are safe. You could go back and get a possession. What is your most prized, proud possession? 


 I don't hold to much, dear. I would tell you. When my daughter was born, I wanted to create a material representation of what that meant to me. So I bought a very expensive watch. 


 Cool, so you got that watch because it reminds you of your daughter Heath. 


 That time fraser and I always wanted the expensive watch, but I always had a little too much reason to saying, why would you spend this kind of money on a freaking timepiece because you can go buy a Seiko for $75 and be fine. It had the combination of I always wanted it, and then this memorialized, that moment as like, hey, that's a good moment to celebrate and to have. I bought the timepiece, and if there was something like it all went away, that would probably be the one thing, because everything else, I don't know if there's anything else that I really actually give a s***. It's all replaceable. I mean, even a watch to some extent replaceable. It just has more sentimental value. 


 Yeah. Super cool, man. During this interview, there's probably a question. Now we'll get to where can people connect with you and do a deal and all that. We're going to get to that, I promise. 


 Sure. 


 If there's a question I should have asked you or that you wish someone would ask you're like, will someone in this world please ask me this freaking question? What is that question? 


 Just because, top of mind, I've been talking a lot about live entrepreneurs being psychotic, and I don't know if there's a question, but I'm trying to help people understand, like, there's something actually wrong with us because we take on more stress and more weight than someone that has a nine to five job. We bring it home every night. We deal with it on the weekends. The answer to that is the but we get to live our lives on our terms and not on anyone else's terms. Dude, I don't think there's a question I would say, but I really want people to realize you get to make a decision. It's a whole lot like no brains, no headaches. You want to go be a cocktail server on the beach in some exotic island and make 30 grand a year and live. Awesome. Sometimes I wish I could trade it in my life for that because there's no brains, no headaches. 


 Who cares, right? I just realized I just want to rule this life. I have one. I want everything. I want all the experiences. I want all the things, I want all the moments. Min. I don't want to live life by others terms. I want my terms. I get to create that as an entrepreneur, whether I work or don't work. Have a big year and huge year in six months, and I want to take six months off because I crushed it in the first six. 


 Great. 


 It's my turn. I don't have to worry about live. Will my job be there? Will they fight? Whatever. Who cares, right? So there's no question behind that. I think it's something I've just been talking a lot about that I don't think it's talked enough about, is we get to live our life on our terms. That's why we do it. But it is not for everybody, right? 


 Yeah. So check this out. My buddy Chris Cleaver wrote a book, Life on your Terms. I should connect you guys. He's a great real estate investor. Super smart dude. 


 Yeah, connect us. 


 Yeah, I'll do a connection. And shout out to Chris. He was a great guest. He keeps sending me books, so he's telling me I need to learn how to read. So one day I will, Chris. I promise. Thank you. Justin, where could people go to get your coaching to learn from you and to do deals with you? 


 Yeah. So go to Justincoleby TV. Justincobey TV. A ton of just free education there, right? If you don't know who I am, it's always best to go just get to know me . Get to go see who I am, how I teach, what I talk about. I'm all about real estate, business and entrepreneurship. My Instagram, the Justincobie there's a lot of fakers out there, by the way, so just make sure it's me. But yeah, the Justin Colby. I don't know how many followers have just to make sure. When people listen to this, whether it's me or not, there's literally like every day, someone on my team is like, oh, here's another fake Justin Colby. 


 Wait a second. You've made it to where? The point where people are imitating live. They're actually creating fake accounts. 


 You made it daily. Honestly, I'm not even joking. So I have 57,000 followers. Just so that's the real account. If they have 20,000 followers or 1200 followers, whatever, or they have 2 million followers, not me. Right? I'd say the Justin Kolbe and Instagram, and then Justincolby TV is the greatest place for people to reach out to me. Cool. 


 We'll put those links in the show notes below. Fellow deal makers, as always, reach out to our guests and say thanks. Reach out to our guests if they resonate with you to say, hey, how do we do a deal together? If you have a deal that you would like to talk about here on this show, head over to thedealscot.com fill out a quick form and maybe we could talk about your deal and your fun story here on the show. Till then, we'll talk to you all on the next episode. Love you guys. 

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Justin Colby

CEO

Justin Colby is the CEO and host of The Science of Flipping. He has flipped over 2000 homes and taught thousands his strategies. He is a nationally recognized speaker and author of The Science of Flipping. He owns 3 multi-million dollar companies and is passionate about helping entrepreneurs.