Top Strategy To Get More Wholesale Deals
So this podcast is all about real estate investing how to be the biggest, baddest and most profitable real estate investor you can possibly be in your market. So the key there is profitability, right? I want to focus on profitability. And that’s why this episode is how can you do more deals with this one single strategy that I’m going to jump into?
𝐉𝐨𝐢𝐧 𝐎𝐮𝐫 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐅𝐚𝐜𝐞𝐛𝐨𝐨𝐤 𝐆𝐫𝐨𝐮𝐩
Again, I’m talking about all the processes, tools, system strategies that you need in your business to be successful here on this podcast. And if you have any desire to have me potentially coach, you hold your hand give you the blueprint to this business model, which I call wholesaling to wealth, meaning you’re going to wholesale, make a bunch of money and then flip homes, and then you’re going to be buying rentals. So you can create wealth. If you have any interest at all, go to the science flipping calm and fill out an application, some of my top advisors will get with you in make sure I’m a good fit for you when it comes to coaching. With that said, let’s jump into what I believe the top strategy for you, myself or anyone to do more deals. And to clarify, I don’t simply mean wholesaling. It could be more flips, it can be buying more rentals, it could be more wholesaling. In that one strategy, wait for it.
Partnering. Now, for most of you guys, you know that I’m not a huge advocate of business partnerships in the general sense. But when those partnerships are strategic, it takes a different shape, it takes a different form. So for you out there saying, Oh, great, I’m going to partner with my best friend or my cousin or whoever. I’m not typically a big fan on partnering with those people for the simplicity of just having someone else to do it alone. Most people go into business partner ships, because, frankly, they’re scared to do alone. They’re scared of failure. They’re always playing, what if I don’t make it and maybe this will help me because there’ll be both of us right? Now other people say, Well, I’m going to create a partnership because that person brings something that I lack. Now, that is a lot more strategic than to just go into a partnership, because it feels good. And you want to do with your best friend. That’s great. I did that I’ve been there. And it didn’t work for me after 14 years, specifically about 12 years. But I will tell you this partnering is the one strategy that can help you do more deals. Now you might be why why do I say that? Why do I sound so contradicting here. And it’s because it’s strategic. Strategic partnering is what I’m talking about. So for example, let me give you some real life experience about what I do in my business. I have been wholesaling and flipping homes for 14 years in admission to myself of not doing something well is buying rentals. I have not yet bought any rentals up until this very year. And that’s because partly, I enjoyed the cash I liked the money I liked the lifestyle like the nice things I liked it in wholesaling and flipping brings a bunch of that. But what’s not sexy, what’s not cool, what’s not, you know, fun trips is creating wealth, per se buying rentals until you get to a certain point you don’t really have a whole lot of income generating so you don’t have that lifestyle yet. So what I did is I took some my own advice, the same thing I’m telling you now, I brought into my business in 2021. And I brought in strategic partners to help me build my rental portfolio. Well, what does that look like? Well, that means I’m able to continue wholesaling, I’m able to continue flipping, I’m also now able to buy rentals. Now I don’t have a business partner that, you know, is partners in all of that I have strategic partners, specifically cash partners that bring in the money and I bring the real estate document, I bring the business in for that there was a partnership. And it’s only in that one very contained business model. They bring cash, I buy homes, I remodel them, I get them rented, it’s a win for both sides. But that is a strategic partnership, and allows me to actually buy and do more deals than it would have previously. And the reason being is some of these deals are not great wholesales and they’re not great flips, but they’re very good rentals. That one strategy alone allows me to do more deals than if I was just wholesaling and flipping because I can analyze the property differently. I’m looking for a different return, if you will. I’m not looking for the 10 or $20,000 wholesale fee or 3040 $50,000. Flip, I’m looking for 400 bucks a month, 200 bucks a month. And it’s a totally different strategy. So I’m able to compartmentalize it, right. So that strategy allows me to actually do more deals, because it’s out of the, I guess container of wholesaling and flipping. So that alone in my business has allowed me to do more deals. Now how can someone that either is just getting into the space? Maybe you’re trying to grow your business and scale your business? How can you take this advice, and bring it into your business? Well, one, maybe some of you guys don’t have much money to build the business, you don’t have a big marketing budget, you don’t have a lot of operating capital. So you can actually, you know, I’ve done this before very early on in my career, I brought in a financial partner into my career, what that was, is very similar. They brought some cash, so I could start marketing to bring in deals. And based around those deals, they got a return on their money. Now I’ve structured that two separate ways. Let’s say I wanted to go spend $5,000 on marketing doesn’t matter which way I can just give them a rate of return, right? Like an interest rate, essentially. And I can say, hey, you give me five grand for six months, I’ll give you six grand back.
That’s a nice 20% return, right? That’s great. $1,000 out of 5000 is a 20% return. People love that. So I’ve done it that way. Right. I’ve also brought someone in at a much higher level to say, hey, if you give me $25,000 for marketing, I will give you 20% of revenue generated out of the deals we get from your marketing. And I’ve done it both ways. Now these are partnership partnerships, strategic partnerships that I’m actually able to leverage to get more deals done. So how would that work? If you were trying to flip more deals? Well, same things to be said, Maybe instead of going getting hard money, you actually go get private money and partner with them instead of debt. Maybe you find contractors who actually will do the job for free at none of your own costs all on their cost. And you guys share profits on those deals, those strategic partnerships can help you do more deals. And most often, in business and I run multiple businesses most often those partnerships, at some level come to the shape of someone is a financier or a financial partner. And someone is more of a managing partner. And by the way, there’s no right or wrong way to develop these partnerships. What I would encourage you not to do is get into the space of real estate investing, and call your buddy and get all fired up and gassed up and excited about this opportunity and create a partnership for no good reason. Except for excitement. I do not want you to be doing that. By the way. I did that. And it didn’t work out for me now. It lasted a long time. But the end of the day, it didn’t work out for me. And so I’d tell you guys, if you are looking to create a real estate investing business, create it by yourself and bring in strategic partners. Because the person who says well I’m the money maker, which is me. I’m the Rainmaker. I’m the creative, I go create, I need someone to manage or operate. Here’s the key that I have found almost every time almost 100% of the time to creative person goes and brings in the money and you can hire, not partner hire the managing person. They can just manage you can pay them a salary. If you’re making $500,000 a year and you need a manager you can pay them $80,000 a year versus bringing in a partner paying them $250,000 a year. So again, this one strategy of strategic partnerships can change your game drastically. And I’d encourage you to do it for sure in your business. And if you have any questions at all make sure to write the questions down below in the comment if you’re watching this on YouTube. You should be watching this on YouTube. And if you are on iTunes, make sure you are giving me a five star rating because I’m awesome. Now, make sure you’re giving me an honest rating give me a five star because it’s honest. Anyways, make sure to get over to youtube.com forward slash Justin Colby. Subscribe. Ask your questions there. I’m happy to engage with you. I’m happy to answer your questions and continue to give you guys feedback. I hope this episode helped you. And I look forward to seeing you guys on the next episode. Peace