Be Unbreakable in Today’s Real Estate Market

What is up? What is up everybody? Welcome back to the science of flipping podcast. I’m your host, Justin Colby. And as always, we will give the biggest shout out to minutepages.com, our main and number one sponsor. If you are a real estate investor in this space right now you need to be online. For just $97 a month, you can have a professional real estate investing website that gives you credibility, influence and authority in your space. Go to minutepages.com to get your website now.

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Alright, so I want to jump into something that is really cool. And hopefully we can make an impact on you guys. And that is making and developing an unbreakable business. And so Grant Cardone has officially been named a billionaire by Forbes and I think that is really, really cool. And he’s done it in large part through real estate shocker. So him and I really went in do a deep dive about real estate and what to do with in real estate and how the single family space plays into real estate right now, because he obviously does a lot more with large commercial properties. Well, one of the things that he wanted to make sure I understood is that as the times are changing, the best place to be is in real estate is the only consistent. Now we both agreed that basically on the way up, there was a lot of people making a lot of money in not knowing what they were necessarily doing. But they were just had the wind at their back. Because of how good the interest rates were and what was happening with appreciation. Well, the times have changed. And him and I both agree that you need to know more of the tactical of what to do today. Because the times are changing along with interest rates. So he really went in on you know what it takes to actually underwrite a property and to make sure that this makes sense. In fact, he actually used a phrase that I really am going to adopt and that is marrying the home or asset and renting or dating the interest rate. Right? Because that can be refined out and it can be exchanged relatively easily. So I loved that. So how does all this last two days which I have a you know, literally notepad full of great notes while spending this much time with Grant? How does this affect us in the day to day real estate market?

Well, especially in the single family space, we are learning to adjust real time the homeowner still want top dollar the interest rates are telling us we can’t give top dollar so there is a you know, coming to Jesus moment, if you will, with what’s going on in the market. Now why my team is still being successful as we understand that we have to be a little more patient. And what I mean by that is, as we are making offers on privy by the way if you don’t have privy it is a must get go to privytsof.com. Being that we are making offers on privy being that we are making offers to homeowners that don’t necessarily want our number out of the gate, there is some what I call blood in the streets. And that is we need to now give a little bit more patients not force the issue and do a better job following up. I’ll give you a great example of something that happened to me and my team recently, we had an offer in on a property up in Cleveland, Ohio, the numbers seemed to make sense, as we were trying to actually sell that as a wholesaler. We weren’t getting any bites, and we kept dropping and dropping and dropping the wholesale price. So I had to go back to the agent as a matter of fact, and I told the agent, hey, we’re just too far off here, you know, between interest rates and the unknowing of what’s going to happen in the economy. I think there’s just there’s too much uncertainty for this number to make sense. Long story short, we renegotiated three times and I leveraged everything based around interest rates, and the market and the cost of money. Well, the agent really understood that. And I was able to really negotiate three times because the seller actually had some motivation. While initially it didn’t seem that way. As we started to have these conversations, the seller kind of raised their hand to the agent saying hey, I just want this done. So it can be off my plate. So if that will happen at this price point. By the third time I renegotiated down to I started at 110. I got it all the way down to $82,000. By the time we did that the seller was happy to take the $82,000 because we just had to draw it out a little bit more out of the gate. Obviously the seller wanted the 110 but you know when push came to shove and that didn’t make any more sense. The seller also was willing to do $82,000. The same is in multi units and commercial. You know, right now people still have this top dollar mentality. But if you be patient and consistent with what you’re doing, then you can actually achieve the number that makes a lot more sense for the times. Again, if you’re in my space, and you’re more in the residential space, buying and flipping and buying and holding it just as a math game, right? I would encourage most people not to be buying and flipping at volume, a great deal is a great deal and flip it. I’m not going to discourage that I have flipped well into the six hundred homes. But it needs to be a great deal for me to do that. I’m currently buying multi unit on seller financing up in Cleveland, Ohio. I’m buying a seller finance deal in Dayton, Ohio. I’m buying a deal outright as a rental in Tulsa, Oklahoma. There are absolutely deals out here. But you need to build an unbreakable business as Grant Cardone says, by being sure that you’re not just doing what used to work in keeping up what with what will always work, right. And that is sticking to making sure you understand your exit of the property, making sure that you understand the numbers and making sure you are aware of what’s going on in the economy. If you know one of the things that I’m seeing with my students is they’re getting frustrated, whether they’re direct a homeowner or working with privy that the numbers that they’re contracting deals that really aren’t moving. Well, that’s because the way that it used to work even 30 days ago isn’t currently working, because the buyers are a lot more reserved, a lot more scared, a lot more uncertain. So it’s really important for people to understand where the buyers are going to be at, right? And if you can do that, then likely you’re going to be able to better contract deals. But the real big takeaway, when talking about what we need to be doing is having a little bit more patience and consistency in nurturing these relationships, whether it’s homeowners or agents alike. If you can build the relationship and nurture that relationship, and not stress out over getting a deal today, then you’re going to be in a good spot. Right? That’s what’s really important there. The reason why that relates to what grant and I discussed for today’s is when he goes and buys a 200 unit building, that is not a speedy transaction. There’s a lot of due diligence, there’s a lot more time and energy and effort and money that goes into that in that transaction than our single family real estate space. Right? But that mentality needs to actually get adopted into our space. And understand that this isn’t a get rich quick, right? This is a get rich and get wealthy that needs to always be the front of everyone’s mind. So as I say that the last two days with Grant have been incredible. Him and I are coming out with something really, really special.

So here’s what I’d be interested in knowing if you are listening to this podcast and you are interested in Grant and myself putting together a really special business and unbreakable business training for you guys. I’d love an email. I’d love to hear back from you guys. Just shoot an email info at thescienceofflipping.com. Say I would love to I mean, you can say anything you want. Grant and Justin, something like that. Just let me know that you heard this, let me know that you’d be interested in that. Because it’s happening regardless. But I want to know from you who are the people that love Grant Cardone, or even if you just like him, but know that now that he’s a billionaire, he actually knows what he’s doing. And him and I are going to be working on this in very short order to put together this training for you. So reply info at the scienceofflipping.com. It will help us know who is interested in that training. With all that being said, hopefully this was great. Let us know you’d be interested in that training. That would be awesome. And I’ll see you guys on the next podcast. Peace.