5 BIGGEST MISTAKES in Real Estate Investing
There’s more moving parts. That is a lot of the reason why I encourage people just getting started that wholesaling is likely the better Avenue. But it’s not the only avenue and it shouldn’t be the only avenue. If you’re only thinking about money, I don’t have money to flip it. I’ll teach you how to find money. There’s a lot of money out there, so don’t worry, about money.
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Yo, yo, welcome back to The Science of Flipping podcast, I am your host, Justin Colby and I am actually going to be delivering the five major mistakes people make when just getting started. Now the first one is super important, but you want to stick around to the last one, because it all ties it all together. These are very common mistakes. In fact, after coaching thousands of students, this is the five most common mistakes I see with all of my students. Now what I would tell you first of all, if you have yet to get started, make sure you get in the game, make sure you put on the helmet, put on your shoulder pads, get in the game, and hopefully this episode is going to help you get there.
Now the very first common mistake that I see is they don’t get started, because they think they need a ton of upfront capital a ton of money to get started. And it’s simply untrue. While I was broke, busted, and disgusted, as many of you guys know, I did get started, I started taking massive action calling realtors, I just lost my home to foreclosure. I was sleeping on my friend’s couch in the repo man took my car, I walked away from over $40,000 or credit card debt. I had no FICO score, I had no cash, I had no car, right? So if I can do it, you can do it, you do not need a ton of startup capital. A lot of people say okay, well, I need to be able to save a bunch of money before I start this business of real estate investing, or for that matter, any business. And what I’ll tell you now is is simply untrue. Now I am going to give you a resource, I’m going to give you a resource right now, that can help you with some of this capital. But first, you have to really believe one thing is you don’t need the money. You see I’m on a big mission right now, because a lot of real estate investors, they start with wholesaling because they believe that because they don’t have money because they don’t necessarily have a credit that that’s their way into real estate and that also is simply untrue. There’s a lot of people, and there’s a lot of companies that have money that will lend it to you. In fact, you can actually get capital partners. And what I am about to say is one of those resources. Now, I’m gonna have the link right here on the screen. And by the way, if you’re listening to this on iTunes, I highly encourage you to get over to YouTube, subscribe to my channel, like all of my videos and make sure that you stay tuned because I got five videos a week five, right. So go to youtube.com/justincolby, subscribe, you’ll rock out there. Now, this is going to be seen on the video, go to primecorporateservices.com/tsof stands for The Science of Flipping. So go to primecorporateservices.com/tsof. The reason is because if you believe in using other people’s money, they can help you do two things, they will teach you how to get personal lines of credit, as well as business lines of credit. The call with them is totally complimentary, right? But they will teach you how to do these things. Now, what I would encourage you to do is jump on one of their complimentary calls, understand how to do this. Because if you can go get 1000, 3000, 5000, 10,000 I just had one student get $57,000 of a line of credit and he has not done one deal, not one, he got $57,000 worth of lines of credit without even doing a deal. So I promise you, this is very real, you really should be going there primecorporateservices.com/tsof. Get on a complimentary call, you can get 1000, 3000, 5000, $57,000 worth of lines of credit. So that can help you get started. Now if you haven’t yet watched my knockout offer video about how I knocked my competition out by structuring my offers. A lot of that comes from the line of credit that I’m able to pull using these resources. Right? Because I can make my earnest money deposits much larger than $50 or $100 or even Thousand dollars. I can quite literally make my earnest money deposits $10,000. Do you think my offers gonna get accepted over my competitions? If my earnest money deposit is $10,000? The answer is yes, well, this company Prime Corporate Services will help you get these personal and corporate lines of credit. So again, go do that. That is the first resource I can tell you. Because it is the first mistake people stop they or they don’t even get started. They sit on the sidelines waiting to ramp up, they get, you know, caught up with I need to be able to say before I jump in absolutely incorrect, right? I encourage you, right, I will support you getting into this game, you just need to take action, the first first action is go to primecorporateservices.com/tsof. Book a call with them, it’s complimentary. And learn how to get a business line and a personal line.
Now, the second biggest mistake that I see people make when just getting started is they don’t think like a marketer. Okay? Now, all this business of real estate is one thing, marketing. You see, my belief of this is you need to bring in as many opportunities as possible, so that you can actually figure out how to exit those opportunities. How do you maximize those opportunities, right? So I want to talk to as many sellers as possible, so that I can either wholesale it, flip it, buy it for long term rental, buy it for a short term rental, maybe I structure a creative finance deal, I do a subject to, maybe I do a bunch of different things, but I can’t do any of it. If I don’t think like a marketer to get in front of as many sellers as possible. Now, I’m actually doing an incredible training about how you can get in front of a lot of sellers and make offers very fast through incredible software that I just found. Now that training will be coming up, and it will be right here on my YouTube channel. So make sure that you watch that training, it will be a game changer, an absolute game changer. I’m going to show you how you guys can be making five offers a day, because you’re thinking like a marketer. And that is the big mistake people don’t they think they need to get everything else done. They gotta get everything prepared before they get going. And really what you need to do is go talk to people, as my boy Brett Daniel says, right, you need to get in front of as many homeowners and think like a marketer. We do a lot of testing as a marketer, right? We do pay per click advertising, we do cold calling, we do Facebook advertising, we do direct mail, we do all of this. So we can surround our clients, which would be the homeowners, right? So biggest mistake number two is they think it’s about real estate. But really, it’s about marketing, right? Bringing in those opportunities, and then being able to exit them whether it’s again, wholesale flip long term, short term rentals, maybe a creative finance deal, you get my point there.
Now, number three, this is where it gets a little tricky for the real estate investors. Number three, is people take on really big risky projects, right? They do something that they’ve never done before they get really hungry to do a deal. So they say screw it, I’m just gonna go all in and do a rehab on this property, which when you’re first getting started, I wouldn’t always encourage that you just have more things that can go wrong, right? There’s more moving parts. That is a lot of the reason why I encourage people just getting started. That wholesaling is likely the better avenue. But it’s not the only avenue and it shouldn’t be the only avenue. If you’re only thinking about money. I don’t have money to flip it. I’ll teach you how to find money. There’s a lot of money out there. So don’t worry about money. But people take on big risks. In fact, I’ve done it myself. One of the big, largely the most biggest financial mistake I’ve ever made, was when developing a 79 unit townhome development in Mesa, Arizona. I thought I had everything all the T’s were crossed all the I’s were dotted, long story short, I had a terrible terrible shady business partner who was the contractor in the deal, he started embezzling money. It just got away from me, right? It was an area that I did not have an expertise at I took my shot and I lost big time like seven figure losses, right? Another time, I went after a very high end luxury property, which is not typically what I will do. So again, going for the grand slam home run, you know, game ending shot, and unfortunately we lost we lost again. It is because I took on these big massive risks without actually having any experience and I see this happen all the time when people are just getting started as they take these risks. And it actually doesn’t pay off because they just don’t know what they’re doing. They don’t have a coach. They don’t have someone holding their hand and by the way, if you’re interested in that, I’m happy to coach you. Just shoot me a DM or write me a comment we can talk about what it looks like for me to coach you.
The fourth biggest mistake that I see people make is they partner. Now while I’m not totally opposed to partnerships, I am opposed to partnering for the wrong reason. You see, most people, when I’ve coached thousands of people in the space, they partner because they just don’t want to do it alone. They just want someone alongside of them, someone that has the same vision. They’re excited, they’re entrepreneurial, they’re, they’re ready to go get it, which is great, until the rubber meets the road. So this is where if you are going to partner, you need to get divorced before you get married is the concept, right? When things are good, and everyone has the energy and everyone’s excited to work together? Awesome. But you also need to know when money gets in the way and things go wrong. How does that look? So you need to basically unwind the partnership even before it begins to say, hey, if this happens, this is how we split it. If this happens, this is how we split if this happens, like you need to go through all the dirty work while everyone’s in the lovey-dovey mode. That is the big mistake. People just get partnered. They go and then you know, a year later, two years, five years, whatever it is something wrong goes happened goes wrong. And they don’t have an ability to unwind it. And it’s ugly. Okay, it’s ugly. So that is number four. Well, I’m not totally opposed to partnering. I don’t believe people actually do it in the proper way.
And number five, this is what you guys been waiting for. The biggest mistake that I see y’all make as real estate investors is just not doing anything. sitting on the sidelines getting ready to get ready being scared, not pulling the trigger. You guys have to understand one thing, you have one life to live if you genuinely want to fire boss, you know, have your own business, make your own money, then you have to do it. No one’s going to do it for you, right. So I have three pillars commitment, intention and action. I call it C I A. You need to commit you have to have intention and you have to take action. Blind action is better than no action. I would rather ignorance on fire just going not knowing a single thing what they’re doing, but they’re just going take an action than knowledge on ice, someone who knows everything but just doesn’t move right. Again, I’ll use another analogy I’d rather a Honda Civic going down the freeway going 200 miles an hour, the wheels are flying off the car is falling apart than having a Ferrari parked in the garage, right? So that is the biggest, biggest, biggest mistake I can tell you guys that everyone’s making get in the game, put your helmet on if you need a coach. I’m happy to do that. And again, the resource in terms of money, primecorporateservices.com/tsof. Go get a call for them. They have a ton of different stuff. They also can set up entities they can help you tax plan, they can do asset planning. They have a lot of different services. Just get in the game guys.
That’s all I got for this episode. Hopefully this helped. I’ll see you on the next episode. Peace