#190: 4 Exit Strategies From an Expert Real Estate Investor with Justin Colby

Welcome to the Accelerated Investor podcast with Josh Cantwell. If you’re looking to retire early with forever passive income, you’re in the right place. This podcast is the go-to destination for real estate investors, both active and passive. And multifamily apartment investors, both new, intermediate and advanced. Now sit back, listen, learn and accelerate your business, your life and your investing with the Accelerated Real Estate Investor podcast.

Josh: Welcome back to the podcast today. I have a special guest for you. His name is Justin Colby. Justin is the founder of the Science of Flipping podcast and the Science of Flipping Coaching Program. He’s an active investor in the Phoenix, Tucson market, as well as the Oklahoma market, as well as Milwaukee, Wisconsin. He’s flipped over one thousand six hundred homes in multiple markets in his 14-year career. He’s done over 600 rehab flips, two hundred plus wholetail properties and almost a thousand wholesale transactions. He’s also actively mentoring over 300 mentor students right now as we speak, Justin and I have known each other for going on eight years. Justin has an amazing story of how during the crash of twenty-eight, nine and ten and how Justin lost everything, walked away from forty thousand dollars in credit card debt and was sleeping on a friend’s couch for nearly nine months, Justin will tell you the story. No. One about how he was able to rebuild his financial life with real estate, specifically with real estate wholesaling. 

Josh: Number two, he’s going to tell you his top four marketing and acquisition techniques. Number three, he’s going to teach you how to scale into other virtual markets and specific things, specific checklists, specific items that he’s looking for in a market in order to scale into that market. Number four, he’s going to tell you his favorite software he used to run his business. Number five, he’s going to tell you what advice he would give his younger former self, which I’ll kind of pop the balloon and let the secret out. He is focused now on owning the asset. And we talk about my strategy of income now and income forever. You’re really going to enjoy and love this podcast interview on Accelerated Investor with Justin Kolby. Check it out. 

Josh: So, hey, Justin, listen, welcome to Accelerated Investor, been looking forward to this for a long time. How are you? What’s going on, dude? 

Justin: Awesome. Thank you again for having this. It’s great to be able to reconnect with you. So, yeah, very excited to be here and just give to your audience and give to your tribe and see how I can help. 

Josh: Yeah. So Justin, like I love to, especially now that we’re, it feels like we’re kind of coming out of this covid fog and there’s so much mixed messages, I think people see both on social media, the traditional news media that likes to focus on the negative. What’s great is a lot of my friends, guys like you who are in business for yourselves, entrepreneurs, real estate investors are really having a lot of positive things happening right now, even though traditional news media wouldn’t have the average American believe that there’s anything positive going on. So I’m curious, in you and your business, what are you working on right now, like this afternoon, next week, that you’re excited about expanding big building? What’s going on in your business? Tell us about that. 

Justin: Yeah, well, I’m super excited. Business in Phoenix is continuing to grow and continue to kind of stay steady, as you will have done this now 14 years specifically in Phoenix. And this year, late last year, we decided to launch into Oklahoma, Oklahoma City proper. As of last week, we just launched or this week I’m sorry, we launched into Milwaukee, Wisconsin. And so that’s really my week of to DOS is really making sure that launch into Milwaukee goes right. My team is prepared to lead. You’re coming through, like, even something as simple as like making sure the leads are coming from the cold calling company into the CRM accurately so my team can work it like those little things. I’m a hawk right now watching that kind of stuff, because those little breaks can mean a world of difference. And so my big priority this week specifically is making sure Milwaukee gets unpacked, gets on track fast and it already has like the first day we brought in three real solid leads. So our intention is to make that a viable market here very quickly in the first thirty days and keep growing and opening up a new market every couple months, specifically to wholesale and buying Holden. Specifically remodeling probably won’t be the key in those virtual markets, but wholesaling will. And so we’ll be buying a portfolio core. 

Josh: So let me let me just peel back down a little bit on those. So help me understand our audience, understand you obviously very successful. Just 14 years of thousands of deals primarily in Phoenix, Tucson. But you opening up another market is similar to a new investor kind of building their business. And I know you coach a lot of people. So what are some of the things if you could just kind of off the top of your head, you probably think like here’s all the things I had to do to open up a new market because a new investor getting going probably has to check a lot of the same boxes. So you just opened up in Oklahoma last year and now you’re going into Milwaukee. What are some of the things you looked at that you had to have in order in place in order to open up those markets from software to market due diligence research? Tell us about that. Just how does that go for you and for those of you that are new investors? Listen to this answer, because this is going to give you some of the bullet points and checklists that you’ve got to get done in order to open up your business as well. 

Justin: Yeah, no great questions. And there’s a decent amount. And so I want to kind of bring it down baseline. Right. You want to make sure you’re in a good market. And I know a lot of people say, oh, my markets too saturated, there’s too much competition. 

Josh: We’ve been hearing that since two thousand four. I mean, right at work. It was terrible in oh eight, nine, ten, people still said my market saturated. It’s like, let’s just remove that excuse because all that is a self-limiting belief. Let’s assume that no market is saturated. So just from there. 

Justin: Yeah. And so what I want to do is I kind of want to work my KPIs backwards. For those of you who have not heard of KPIs key performance indicators. Right. I want to understand how many seller leads do I need to bring into my bucket? And then what type of conversion do I need to have based around those seller leads to make it a profitable market? So regardless of your marketing budget, now, I happen to have a good marketing budget, but let’s just say you’re starting regardless of your marketing budget, you could do something as simple as virtually driving four dollars. My guys who are newbies in my company, actually I force them to do that. So we are still actively doing it. Very simple. I have a YouTube training on how to do it so we won’t spend time there. You can just go look at my YouTube and watch that. But for those that don’t have a marketing budget, you got to assume, OK, I need to be talking to sellers. That’s the key premise here. So how many do I need to talk to you before I can actually convert the deal? So having some premise of understanding the KPI’s. 

Justin: So, for example, in cold calling, opening a new market, we have found it takes roughly a hundred to two hundred new cellar leads to get one deal when opening a market. Now, that number starts to really drastically decrease as you get more leads your team, as more leads to follow up on and make offers on. And so understanding the premise of how many people do I need to talk to a lot of people and you know this to be true as well. A lot of people get into our space and they try one way of marketing. It doesn’t matter. Pick your choice, pick your poison in a marketing in 30 days, maybe 60 days later, they give up. They weren’t seeing the results they wanted and they just stop. Well, part of that is improper expectations. They actually don’t know what they should be looking for or what is good or what is bad. And so I would tell you, understanding more of your KPIs and the highest converting marketing strategy there is out there is PPC, pay per click advertising is also the most expensive. So if or not, it doesn’t fit for everybody. Direct mail follows right behind that callback ratio has dropped down to like a third of one percent, which is awful. So that now becomes a very costly venture. 

Justin: Cold calling and text messaging are my two favorite as a moment in time because you can bring in a volume of leads and that allows you to be a good salesperson and work into to kind of finish this off, because I can’t I don’t have enough time to go terribly granular for you guys. But you also need to understand it’s not always a marketing issue. A lot of times people are trying to fix the marketing issue. They’re trying to fix the lead issue. But really, if I audited someone’s numbers, who’s actively marketing, whether it’s cold calling, texting, direct mail, otherwise I will very clearly be able to see they brought in enough leads. They’re just not doing well at sales. They’re not converting at the rate that they should. And then I’d boil it down a chunk down even further, because they’re not just they’re not making offers. That’s right, that’s what it really boils all the way down to, is someone brought in one hundred leads, definitely enough for a deal. But then I say, how many offers are you making? They say none. And I say, well, problem solved. Right. 

Josh: Right. So it is. You open up a new market. I wanted to pull back to you on it, on your money-making strategy. And what stuck out as you were talking, I was thinking like income now, income forever. And you’re focused on wholesaling for income now and owning the asset owning rental properties, single family, commercial, etc. multifamily, forever dialed back on your big rehab projects, especially in these virtual markets like Milwaukee and Oklahoma. So why the wholesale and own the asset rental strategy? What problem does that solve and how scalable does that make you versus doing lots of big projects that needs huge rehab? 

Justin: Yeah, no, great question, again, because in my opinion, an expert investor really the expert. The way I define that is they have four exit strategies. And as soon as you have the ability to have four exit strategies, now you have options. Right. So you can wholesale it. No money and no credit. No the whole thing. I do anywhere from 10 to 20 wholesale deals a month every month. Right. And then you can wholetail, which I swear, Josh, I swear I coined this, but you buy the home, you don’t put a dollar into it. You put it on the market. I started doing that back in 2010 when I was buying from the auctions. Right. Because these homes were like in Phoenix, they were like two thousand eight build’s right and the person lost it to foreclosure or short sale or whatever. I’m like, this doesn’t need anything. I’m throwing it right back in the market. 

Josh: Right. Buy it, actually own it. Use private money or a combination of various funding sources to actually take ownership of it. 

Josh: I’ve got a good friend of mine who was a coach with me for a while, and he found pockets in Cleveland that were like kind of the up-and-coming neighborhoods are up and coming pockets. He focused all of his marketing effort in there, made a fortune wholesaling because he’d find these deals off, market them just clothes on and put them right on the MLS. And, oh, by the way, he was also a realtor, so elicit his own properties. And I was like this. Holy. His name is Darren. I’m like, you’re putting this property on the market for like one hundred twenty selling for like one hundred forty-five to an all cash buyer because people were dying to get into that market, made a fortune wholetailing. Now doesn’t always work in every market cycle, but in this market cycle where inventory is very low and people are on the MLS looking for something and there’s very little to pick from. Love, love, love that strategy right now for sure. So what’s the third exit strategy? 

Josh: Rehabbing, buying it, rehab. It may pretty put on the list or put on the MLS. And then lastly is keep it. And if you have the ability to do all four of those, I would call you an expert investor. Now, there’s certain reasons why people don’t some is capital and others just they don’t have the ability to kind of analyze that way. But the fifth, which is kind of like an asterisked or a hidden fist would be if you can combine some of those through creative financing. And now you’re at the pinnacle. Right? Like we just did a land deal. I mean, the way we structured the thing was unbelievable with creative financing, seller carryback, wrapped the note. We were able to sell a we found a buyer had a huge down payment. I mean, we made three parts of the deal. We made money in three parts of the deal. Unbelievable. Now, I don’t talk a lot about that because that’s quite advanced. Right. Like, for sure, the newbies aren’t going to get to that level yet. But the reason why I go into the markets to answer part two of this question with the intention of wholesaling and holding it in my portfolio is in full transparency. I’ve always focused on wholesaling and rehabbing because the money I made, like God it’s so sexy and but in 14 years, I never really built the portfolio. 

Justin: And so now as a thirty-nine-year-old with a wife and a new baby, your mindset changes like, well, great, the nice cars and the watches and all this stuff are fine. But now I have like I got to be the lion that takes care of the pride, right? Like now it’s about that. And so my mindset has shifted. Right. And so now I’m really heavily about that. So I’m choosing markets that will have great returns. And you know all about this. Congratulations again on your massive acquisition. That’s fantastic. But you know all about this, right? It’s just money. It’s just math is all numbers. And so if I look at a deal and I can say, OK, like we just passed up on Oklahoma City deal that we are wholesaling, but we passed up on me keeping it because the math just didn’t make sense. And we can still go make eight thousand dollars as a wholesale and keep the machine running. Right. So the reason why I choose those is the wholesaling keeps my team paid because I have a team. So they get their commissions, they get paid, it keeps money in the bank and it keeps the marketing going. 

Justin: And while that is all churning, I personally in cherry picking the deals, that makes sense because the math and now I’m building my wealth and that’s why I choose those two strategies. And thirdly, I hate rehabbing. I hate contractors, pain in my side. Everyone agrees with me now. I have great contractors and I just did a video on this. I love them. They actually know what they’re doing there. They’re an actual business, right? They give me very detailed breakdowns. But nonetheless, like, they just finished our last rehab project and I walked through it to final green light. The thing I’m like, guys, do you like the checklist of stuff that they had to go back and do? Come on. So that’s why I choose those two strategies. 

Josh: I love it. I love it. So. So let me ask you about the markets. Right. So when we’ve entered different markets with our apartment investments, with wholesaling, it’s usually for one of two ways, either because we’re already in that market with a relationship like a joint venture partner or a friend of ours, a student of ours, somebody who’s already in that market that we believe in, the person we might not know anything about the market, but we believe in the person we could we could build a team around a person. Secondly, could be that the market is great and you just identified the market and then you’re going to parachute somebody in there to actually operate in that market. So when you expand to another virtual market and you coach a lot of people to do this, it’s probably a combination of both. But just talk to those, like how do people determine a virtual market to expand into what are some of the things they should look out for, some of the challenges that you faced and that you’ve coached people around when they’re going into a new market that, you know, they might not know anything about. 

Justin: Yeah, and great question, you’ve mentioned I coach. I have coached thousands of people over my coaching career and I still actively coach well, hundreds actively. And so I do utilize that to some extent. Right. Like I chose Oklahoma City because I have several students in that market that I know will be honest with me right there. They’re invested in me and me being their coach. So I chose that heavily because of that. Milwaukee, I have a couple connections there. Now, one of the reasons in full transparency, I chose Milwaukee because how many people in maybe you’re going to have a big number. How many investors in our circles in our mastermind’s that you and I are part of in our world, how many people do you know that are in Milwaukee wholesaling homes?

Josh: It’s a great question. Like zero, you know, and I love that market. I used to be a financial advisor when I was before my real estate career, and I was associated with Northwestern Mutual Life and Robert Beard Securities, which was their broker division. I used to go to training up there. And I’m like, this is so far north and it’s cold as hell, but it’s always sunny here. Like, I love Milwaukee. I used to run the five K when they had our annual event, like I love Milwaukee. But when you ask people like how many people are actually doing deals in Milwaukee or how many people are focused on Milwaukee, it’s almost nobody. And you’re only forty-five minutes to an hour north of Chicago. So there’s a lot of benefits to that city. But almost nobody that I know ever operates are right. 

Justin: And so I had a student and he’s murdering it. And I just kept like, good for you, good for you. And then I started to like, wait a minute, let’s do this right. So heavily relied on him to give me the right cities, the price points of that kind of intel. And I was just transparent. I was like, hey, dude, I think I mean, he was like, come on, man, I can’t even handle this. I can’t even do more if I had to. So but let me give you give everyone more of a realistic way that I look at markets and why to jump in markets. And by the way, I am a firm advocate. Everyone should be to some level, do virtual wholesaling or have a virtual business, just like you’re buying this complex, essentially like that’s virtual. Right. Like everyone should have a component. Now, even in Phenix, I run my team basically virtual. The only reason my team will go meet with the seller any more is if I feel that there is a competitor who we have to get in front of. Right. Or if they feel that way, like, dude, we’re going to lose this if I don’t sit down with grandma. Right. Like then go meet with her. Period. Right. But besides that, my business model is virtual, even in my own backyard. I highly encourage that because it’s scalable. Right. But the reason why I choose the markets in some you’re going to probably totally agree with and then some you might laugh at. So the first thing is, I want a major sports team in the market. 

Josh: Oh, OK. Yeah, being a sports guy. 

Justin: I got to go to a game, dude. Come on. Yeah. And the reason why is because that has some level of show of the economy. Right. Whether the economy is sound and built already or is going to be growing because think about who’s making that decision to put a sports team in that city, some really smart financial people. Right. So I want that the other major university that pulled a lot more weight prior to covid, since no one’s going to school anymore. But still, like even Milwaukee isn’t that far from University of Madison. Madison’s a huge university. Right. And then you have University and Milwaukee, etc. So those two really are like they have to have that. The other one is going to be what industries are there or are coming. So I’ll do a little bit of research. Right. Are industries moving there? And especially now because of covid, they’re leaving Chicago, San Francisco, New York, the big cities. What industries are leaving? Where are they going? Right. And then I do some other things, like I’ll check unemployment, even though the last ten years unemployment has been fine. 

Justin:So I’ll do some of that stuff. And then the last I kind of just see what type of military bases are around, if any. Right. And that’s kind of one of the they don’t need to be around. But I like that if they are around because that leaves, again, kind of that sustainable economy that people are going to be there. And so that’s really my major things, like I don’t do a whole lot of analytics on super financial backgrounds. And then lastly, I forgot this. I try to keep at a price point under the median price point nationally. So I believe the national median currently is roughly three twenty five-ish, give or take. I believe that is still the case. So I want to be in markets that are substantially under it right now. I want to be around that two hundred thousand dollars price point for the median price point. Right. And actually 

Josh: Some of the Sun Belt, the smile states.

Justin: One hundred percent. That’s why I think Tulsa is going to be one of our next markets. I love North Carolina. Several markets in North Carolina are going to be where I’m going to head also. But yes, all that Kansas City, that whole world. So. I take a look at that I want to because and here’s the answer to why that matters, great rental markets. So if I’m wholesaling in a holding for a portfolio, why would I want to go into a market that isn’t a great rent like that is a high price point market? Well I don’t is the answer. Right? So I’m a big advocate with marketing and I do anywhere from four different strategies of marketing, which is another conversation. I’m a firm believer everyone should do multiple marketing strategies, firm believer. I want to stay in a price point. That’s going to be a good hold and flip. So if I need to wholesale it, then I want to have someone, some rehabber that’s willing to buy it. And it could be a good flip. Or conversely, if I have someone who’s willing to take less margin or less ROI in their portfolio than I’m willing to take, I want it to make sense for them, too. So that’s why I choose those markets. 

Josh: So you’ve got to pull all this together, right? Can’t run virtually without some sort of software, some sort of that’s the only way to scale it. We tell our team if it’s not in the software, it didn’t happen. So there is no like I wrote a note on a yellow pad, there is no like I got this manila folder, like, no, we operate virtually we load everything to the cloud, whether it’s in the software, whether it’s in Dropbox. What’s your favorite software to use to run your business? 

Justin: It’s going to be so archaic. Dude, I still run this thing through Podio. Oh, great. Yeah, I just it’s been around forever and it’s a blank canvas and I just love the usability of it. I’ll be honest. Like, I know there’s super software out there and I know people have rebuilt Podio to be this monstrous thing and I love it. And awesome. I’m kind of old school. I mean, I’m thirty-nine and like I want to be able to see when people are making comments. I want to be able to have it on the phone. I want to be able to message them. I want like the just the usability. And then lastly, I’m old school. It’s a people business, man and your software does absolutely everything. I’m out. Right, because if you’re trying to remove the people out of this business, I just don’t think you’re going to reach where you could potentially reach. So I keep my Podio pretty stripped down, honestly, relative to where people I know have theirs, because I want my team working the leads, guys, and that’s my perspective on it. 

Josh: So just like you’re doing a lot of deals, ten to twenty a month of wholesale deals, you’ve got students doing deals. I’m always curious how somebody falls into this business or gets into this business. I’m always curious what are some of their initial challenges. So question, I guess, is for you and then for your perspective on students that you coach, what are maybe what was the top challenge to one or two or three challenges that you faced getting in and the challenges that you see your students facing now? And how are those overcome? You obviously have sort of this expert vision, ability to see into lots of businesses, lots of companies that are either getting off the ground, that are going from, you know, total startup to kind of new and then new to intermediate that are intermediate to advance. And you coach people all the way through the continuum there. But there’s probably some common threads that you see in your business when you started and people that you coach. So what are those top challenges that you saw in yourself, in them? And how are those consistently overcome? 

Justin: Awesome question. So I’ll do a very quick analysis of me. I was broke, busted and disgusted. I lost my home to foreclosure.

Josh: Me and you both. 

Justin: And so I lost my home to foreclosure during the crash, just like so many millions of others. So no different there. I walked away from forty thousand dollars of credit card debt. And what’s really special is the repo man took my car so I didn’t even have a car. And so I called a buddy because I was old enough. I believe I was twenty-five, twenty-six that I didn’t want to run home to Mommy. Like I was like I’m an adult now. Like let me figure this out. Called a buddy. Hey can I crash on your couch. Well that crashing on couch lasted nine months. Yeah. And, but what I had during that time was no money but I had a belief in myself that was unwavering and is something that it was right when if you remember in 07, like Internet marketing for coaching was not even a thing yet. Right. Right. But we had this little leopard haired dude running around. Do you remember Nathan Wright running around you was one of the first with Preston. I caught some YouTube video that they did, and it just got me fired up because I was actually when I lost it all as a realtor, hated being a realtor. I hated it, not my jam. And so I saw this. I’m like, oh, my God, I can do this. I know I can do this. 

Justin: Like, I’m already eighty five percent of the way there, kind of knowing what I know about real estate. Long story short, I committed to it. I was cold calling realtors every single day. One hundred. I didn’t have a triple line dealer. There wasn’t a list I pulled from Prop Stream. It was me and my cell phone, which I think was even a flip phone at the time, dialing off of I think Realtor.com is where I would go. And I just look at the list of realtors and I would smile and dial in. I did it every day, unwavering. Nothing was going to stop me. And this is the same quality I see in the people that I my students that ultimately become very successful. Whether they just are getting into the industry and or scaling their business is their unwavering commitment, fortitude and desire to win is the quality that I see that I had in myself that they also have unwavering. Right. And then you combine that with an actual strategy and blueprint that is known to be successful and it’s the cure. All right. 

Justin:So the challenges I see with my students now. Is people have this microwave society thing going on, right, like they want results now, right. And they’ll do whatever it is, whether it’s virtually driving four dollars or cold calling or direct mail or whatever, and they get discouraged too quick and they don’t realize the long game. And I quote Tony Robbins over and over and over about this. He says, People overestimate what they can do in one year and they underestimate what they can do in 10. Yeah, I love that. And so I quote them all the time. And I remind my students that all the time and even have to remind myself, like, trust me, where I want to be the one hundred-million-dollar apartment complex that my guy is doing like I’m not there. So I have to remind myself, hey, I got it. I’ll get there. Right. Like, just keep chugging away and that day will come. Right. And so it’s really more of a mindset than anything else is where the big challenges these days, especially hundreds of students I’m actively coaching right now. 

Justin: And part of what I coach on is not just the strategy, which is a lot of it, but it’s the mindset of what it’s going to take. Yes, that’s discouraging. This is why it happened. This is why it got messed up. Here’s how you fix it now. Go run hard with the improved method to fix it. Right. And so that’s really what it is, is a lot of just they haven’t been taught that like the first year. You don’t need to create seven figures. Yeah. Go fire your boss, go create a livable income. Go prove it to yourself that this works, that Josh and Justin are not the only two people in the world that can be this successful flipping homes. Right. And so that’s a big challenge, is they give up on their marketing because they don’t think it works. Well, they didn’t try it long enough. Right. And then they say, oh, my market by market is so competitive it doesn’t work here. We tried it for fourteen days. 

Josh: So I’m sorry you’re the wrong people in your market that are doing it. So the difference between them and you is either just experience time market. My brother Mark said years ago, which I quote all the time, he said If you’re having trouble finding deals, expand your market or expand your marketing. Right, so if you’re because there’s always been trouble finding deals, I mean, I heard the same complaint in 2012 when there were literally deals on, you know, everywhere the HUD site, Fannie Mae, Dotcom, Freddie Mac. It’s like there’s deals everywhere, people. I can’t find a deal. There’s always going to be an excuse. But it has to be that you are convinced, one, that you are worthy, that you can do it, that you’re capable if you get the right coaching, you have the right mentoring, you get the knowledge, you can do it. I tell people all the time, like, what makes you so special that you think that you can’t do this because there’s so many other people that have done it. They’re not special. So what makes you so special that you think that you love the flip? 

Justin: Dude, I love the reframe on that. Oh, yeah. 

Josh: So that’s what it’s all about, man. It’s just to know that so many other people have been successful with real estate that, yes, you can do it. It’s just a matter of finding a strategy that you like, that works for you, that works for your lifestyle and then go from there. So I just want to ask you kind of final question. You know, again, from your perspective, from where you sit with your own business, multiple markets coaching hundreds of students, if you look back on this journey that you’ve been on as an entrepreneur, as a leader and as a coach, what advice would you give, like your younger former self? Like what would you go back and like former Justin Colby in the face and say, dude, wake up, do it this way instead? What would you pass back or forward to our audience that you’ve learned along the way that are some of the most, you know, greatest lessons, sort of the greatest hits, if you will, in your fourteen-year journey? 

Justin: Brother, you know this to be true. I’ve had so many scars through these fourteen years. I could, there’s a laundry list. Sure. The thing that really resonates with me now and I kind of preface this by saying married new kid, the mindset of wealth building versus cash. If I could wrap my head around that a little bit sooner and I read all the rich dad, poor dad stuff and the cash flow I like. I read those years ago, right? Yeah. But I was just in a season of my life of being the quote unquote the playboy and fun and traveling all the time and single and doing that. And that was my season and I was OK with that. And I recognized it and had people like yourself and so many other of my friends that are massively successful building wealth. Now, I just stopped and I’m like, let’s go. But I was OK with that season at the time and now I’m at a different place. And so the biggest lesson I would say, looking back, hindsight being twenty twenty is get to this season sooner, make a lot of cash, make a lot of money because money really gives you options. That’s what money really does. 

Justin: And part of those options, instead of the cars and the traveling and the trips and the watches and all the stuff that I was utilizing it for, start putting that in a wealth building, because here’s a secret that all the real wealthy people know and you know this even more now that you’re in the big leagues these days, that asset will produce you more money than you can actually make by wholesaling and flipping are not necessarily always just with income, but within your taxes and what the IRS allows you to do with that asset. And that’s really my big focus is I didn’t even realize what the government and what the IRS is set up for, individuals like yourself and now myself, now that I’m in this space, in what that can achieve, because I would have several hundred rentals at this point, banks would be throwing money at me.

Justin: I would never be in a need ever if I started this even four years ago. Four, not ten years. I’m saying like four years ago I’d have something like two hundred and fifty rentals and banks would just be lining up to send me money. And then you layer on the creative stuff, seller financing and all of the other. So that’s the big lesson is, is make a lot of money, get there so that you can transition quicker into really building wealth. And where Josh is at, I mean, I aspire to be that I aspire to take down one-hundred-unit complex for sure. And it’s OK. I’m not here, dude. I’m chasing you, dog. I’m chasing you. 

Josh: That’s great, man. Yeah. I mean, it’s fun to be in the community where everybody is in different spaces at different times and going through different seasons and sharing kind of war stories with, you know, guys like you and other guys in our various masterminds. We’ve been it’s really fun to see our whole kind of group of leaders, mentors, coaches, evolving, guys getting into different things. And some of the advice that they’re giving to their students and kind of giving back paying it forward, if you will. So fantastic stuff. Just listen to Thor. I’m sure our group, our audience is going to want to learn more where they can connect with you, obviously with your experience, with your coaching, with your virtual markets. What can they learn more about you? 

Justin: Yeah, go to my website. If you are interested in coaching, I’m happy to talk about that. Go to the scienceofflipping.com. Fill out a quick form, super simple, let me know that you heard me on Josh’s podcast, obviously, so I am aware of where you’re coming from and let’s have a discussion. And if I’m the right fit for you, then great, I will be able to move your needle. And if not, that’s also OK. So no pressure at all. But otherwise, the Science of Flipping Facebook group is totally free. Go request to join the science of flipping Facebook group and social media everywhere. The Justin Kolby Instagram. I just created a tick tock dude. Get excited, get excited. 

Josh: Yeah, I haven’t gone there yet. My kids want to but I haven’t gone there yet. That’s probably next. 

Justin: Yeah. Yeah. So the Justin Colby on Instagram and Facebook and just go to the science of flipping and again another free resource, my YouTube Channel. I mean hundreds of free videos over on YouTube dotcom forward slash Justin Colby. 

Josh: Fantastic stuff. Justin, listen, it’s so great to reconnect with you, as always. Kind of figure out what you’re doing, what you’re up to next. Congratulations on your success and thanks for joining us today on Accelerated Investor. 

Justin: Thank you, brother. Appreciate being here. 

Josh: So I love that interview with Justin. I really I mean, I’ve coached hundreds, thousands of people in my real estate investing career. And as a mentor, I started mentoring students back in 2006-2007. So I’ve had the fortunate career. Fourteen, fifteen years of mentoring. You can tell that Justin shares that same passion that I have for mentoring new investors to get to the intermediate level, and the intermediate to advanced. And as Justin described the advance to the expert level, which is having all four exit strategies that we discussed. So if you enjoyed that interview, definitely subscribe to the accelerated real estate investor podcast so you’d never miss another episode. And as well as subscribe to the Accelerated Real Estate Investor YouTube channel to make sure you catch all of our interviews, strategies and how tos. If you enjoyed this interview, please leave us a five-star rating inside of iTunes. It would mean a lot to me and share this all-over social media. Just expand the community, expand the network of accelerated investors. We’ll see you next time on the accelerated real estate investor podcast.

You were just listening to the Accelerated Investor podcast with Josh Cantwell. If you enjoyed this episode and learned something new, help us build the A.I. community by leaving a review and five-star rating on our iTunes podcast channel. Also, don’t forget to subscribe so you never miss another episode. To see passive investing opportunities, visit FreelandVentures.com/passive. To start your journey toward the lifestyle you’ve always dreamed of with multifamily apartments, apply for one-on-one coaching with Josh at www.JoshCantwellCoaching.com.

In his 14 years as a real estate investor, Justin Colby has flipped over 1,600 homes across the country. He’s also done 600 rehab flips, 200 wholetail properties, and almost 1,000 wholesale transactions. He’s actively mentoring over 300 real estate students right now. He is an active real estate investing powerhouse. In this conversation, he covers not only his criteria for choosing a virtual market, but also the 4 exit strategies that he builds into every transaction.

Does your potential new market have a baseball, basketball or football team? High-level number crunching has already been done to determine whether a city can handle a sports team, so Justin uses that as one of his pieces of criteria to examine the health and future growth of a city.

He also looks for:

  • Major universities
  • Nearby military bases
  • Unemployment rate
  • Homes under median national prices
  • Incoming industries

Justin lost everything after the Great Recession, and he spent 9 months couch surfing before he could get it together to rebuild his life. He’s actively coaching real estate students, so he continues to have an inside look on troublespots for newer investors. For many investors, they’re stuck in this microwave society thing right now. They get discouraged too quickly and they don’t strategize for the long game.

Newer investors also face a disconnect between their lead rate and conversion rate. The highest converting marketing is PPC, but it’s the most expensive too. That may lead investors to opt for a cheaper marketing platform, but when they struggle to close leads on even the cheaper marketing platform, they need to face the facts. Whether you choose pay-per-click ads or bandit signs, at the end of the day you need to be making offers in order for your leads to convert.

If you’re interested in coaching with Justin, make sure you mention this episode of Accelerated Investor, and check out his free Facebook group, Science of Flipping.

What’s Inside:

  • Catch Justin’s 4 exit strategies from every property that helped him move from newbie investor to guru investor.
  • How Justin rebuilt his financial life with wholesaling, and what he would’ve done differently.
  • What the strategy of Income Now and Income Forever looks like.

Mentioned in this episode​

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