Justin Williams Explains House Flipping and how Lucrative it is for an Agent

Maureen: Hello fellow real estate agents it is my pleasure to introduce my featured guest today, Justin Williams. Justin is a real estate investor he works closely with real estate agents. He has his own podcast and website, house flipping hq.com. Justin is going to share mind blowing information on how lucrative it is working with an investor. Justin lives in Los Angeles area, has his own master mind group. He is going to provide golden nuggets on how working with an investor will get you one step closer to been a millionaire real estate agent. I Want to thank you for been on the show today Justin.

Justin: Thank you Maureen I’m super excited to be here.

Maureen: Well we’re super excited to have you. I do like to try to start the show off with a funny thing, funny moment that possibly happened in the trenches. I don’t know if you can think of something funny that has happened to you in your real estate journey.

Justin: Well I don’t, looking back its kind of funny. It was kind of sad at the moment but you know when I first got started in real estate investing 7 years ago, I went to my first seminar where you know I didn’t know any better and of course the guy sells me on his $15,000 you know get rich quick program, which you know it didn’t take us long to find out that our so called mentor was nothing more than a marketer and actually hadn’t done any real estate for the past 5 years.

Maureen: Oh my goodness.

Justin: I’ve got the same seminar and one of the things that he promised was you know his coaching student who did the best, showed the most improvement or promise if you will, arrange that you would win a car. So one year later you know there’s about 20 of us and there are 3 finalists and I was one of those. We went and spoke at a seminar and presented our business plan and everything that we had to come up with and mind you most of this, I have learned from other people along the way. Yeah I got, he was able to teach me some of, you know whatever, basic things that he had to learn from someone else probably. But so at that seminar there was like and we won. People were cheering, it was amazing. I got a good feeling right, we ran up on stage. Everyone is cheering for us. He gives us the picture of the car and this trophy not even big, just a small trophy. And the pictures of him with the car and he’s like hey I’m going to send it to you in a few days. You know pf course I didn’t know who’s going to win. So I have to ship it to you…And 2 days past, no car, few more days no car, weeks go into months and no car. I called anyways, he just never sent it. It was a whole way to sell memberships and get more people in his program and here’s the car and this guy won that car, never got it.

Maureen: OK, so that’s a bitter sweet moment in your real estate career, oh goodness.

Justin: Yeah it’s kind of funny looking back on it. Every time I see a Chrysler 300 you know I get a little emotional.

Maureen: OK thank you and just if you’d like to tell us a little bit about yourself and your business. How you started, your story and what your life was like before you got into real estate investing compared to what your life is like now.

Justin: You bet so, I’ve been investing full time for 7 years, during that time I had flipped about 300 properties, actually about like 325, 300 by now. It’s more recently that I’ve been doing the higher volume. Prior to getting into real estate 7 years ago I had a satellite dish business for 2 years, started that out of college. My wife is a 3rd grade teacher and I was a door to door sales man, just earning money while going to collage actually, you know on a football scholarship, anyway getting kind of side tracked there. So I realized I wasn’t going to go pro in football so I thought hey got to figure something else out. And my degree just wasn’t really something I was excited about. So I decided to start a satellite dish business which is what I was selling door to door. And it went good but I got this partner who didn’t pull his share of the weight. Things were good at first, we kept it going but then we got a lot of overhead. We had this plan for this big summer program. Anyway long story short, we had more expenses going out than actually coming in and after about a year we realized we had a $120,000 in debt. We decided let’s cut our losses, we let everybody go, broke up with the partner. I had all the debt on myself, I wasn’t very smart and my partner wouldn’t help with any of it. Went to bankers in California which is where most of our business was at the time. We had a couple of installers there. Fired a couple of the sales reps we had, that weren’t pulling their weight, moved in with my brother and brother in law and his fiancé and another one of our installers and another sales rep, into a 2000 square foot home with my wife.

Maureen: Oh my goodness

Justin: And my child, $120,000 debt, which most of it was money that I owed to friends and family. I wasn’t like, I wasn’t getting out, not that I wanted to get out of it anyway, but I had to pay this money back cause like my whole life depended on it.

Maureen: Wow quite a story.

Justin: Yeah every day, I would wake up at about 5 o’clock. My wife and I would work all day on, well not all day. I’d work all morning helping her with the admin part of the business. She would work all day on the admin and during the day I would go out and sell door to door all day long and it was not very cool in the summer.

Maureen: No I can’t imagine

Justin: But you know 100 to 105 degrees and I would go and sell door to door with rejection after rejection and but eventually, you know I enough no’s like to a yes. And after about 6 months of working harder than I ever worked in my life we were able to pay off all of that debt and then started to get a load of a surplus.

Maureen: 6 months is that what you said?

Justin: Yeah, yeah it was not easy but.

Maureen: Oh my god that’s amazing.

Justin: Yeah but we just pounded out made it happen, worked super hard and after that is when I got into real estate and that’s when I went to that first seminar and then I got you know, the mentor who didn’t really coach me that well and didn’t give me the car. But it took me about 7 months to close that first real estate deal but I only talk about these difficulties cause a lot of times people see someone like myself, who oh hey they’ve heard me say you know, flipped over 300 houses. I’m currently flipping about a hundred houses a year and they just think it’s, oh that’s easy I want to do that tomorrow and you know it’s not like a get rich quick over night. I think nothing is as you think it is then you’re just kidding yourself. So yeah you know it took 7 months to get that first deal and then the first 3 years I probably did 3 or 4 years, I probably did about 50 deals transactions. And then I done but it just show you the snow ball effect as well and then 3 years ago I just thought to myself, I thought you know I can really systematize this business. I know I can and I did and I so I just kind of put all the pieces together and I’m currently at a point in my business, for I book in a 100 houses a year with people managing it for me. So I still work hard but most of that time is spent like you said on educating other people and I only put a few hours a week into my actual house booking business, so.

Maureen: Great, wow boy that’s a great story Justin

Justin: Mouthful for you.

Maureen: Yeah, ok well from a real estate agents prospective and working with an investor like yourself. How profitable could it be for real estate agents to work for house flipper like you or to find houses for on investor to buy.

Justin: Yeah absolutely incredibly profitable, my main agent in that I work we really kind of hit it off and kind of got some good synergy, almost like a partnership going. We have done I think a 110 transactions down the last 2 years, just with them, yeah.

Maureen: Wow that is great.

Justin: Absolutely amazing so.

Maureen: So definitely is, definitely a profitable business so you know; find an investor like yourself

Justin: Absolutely and investor are always looking for good agents who are investor friendly, who understand the investment game so understanding investing and analyzing properties from an investor stand point can and that can be a game changer for you as an agent and like I said we’re always looking for good investors, good agents because I feel like there was kind of this thing between agents and investors where sometimes say, oh agents don’t get it and then sometimes the agents say, oh investors don’t get it you know.

Maureen: As I’m listening to your podcast and I’ve been learning quite a bit. I didn’t realize a few things that you had on your podcast from a real estate agents perspective but yes I can definitely see it now.

Justin: But I mean if you can make that like marriage and I say marriage because it is almost like a marriage like it’s a lot of work, building that right relationship. But if you can find that right synergy between investor and agent, it can grow your business to a level which you never image. As an agent a lot of times you’re focusing on the one transaction but if you can hook up someone who will buy as many houses as you can possibly find for them that meet their criteria. I mean it can really blow up your business.

Maureen: Right and then, it’s not only a listing but it’s a sale, a sale and a listing. So you actually get 2 transactions typically out of one deal don’t you?

Justin: Exactly I mean you can get up to you know, 3 commission mean 3 sides of a commission. You know if an agent brings me a property, OK let’s say they have the property listed, let’s go that way. Then they can get the listing commission and then they get the commission from representing me and then they re-list my property for me. So if they don’t have a listing then you’re right two side with the transactions there, so yeah it can be incredibly lucrative and I don’t want to make it like its super easy. I mean it takes a lot of work and what I found is most agents, we’ve tried to work with a lot of agents. I don’t know if you’ve ever heard of you know Think and Grow Rich

Maureen: Yes, yes

Justin: So that’s kind of what happens with most, not just real estate agents and investors but just relationships in general. It’s like the agent will work hard on us to make a certain amount of offers but then they get kind of burnt out. But it’s like right, it’s like almost happens right as when they’re starting to finally understand how to analyze bills or starting to get to know the other person system a little better but they’ve realized ah I put like a few weeks into this and I haven’t made any money and done and then they move on to the next thing but it’s like you know.

Maureen: They shift yeah, they would stick it out, would be much more profitable. What is the criteria that you use to educate a real estate agent as to like what you are looking for?

Justin: So let me kind of; let’s do a quick education here for postal agents. You know I’m talking to investors; sometimes this is a little more basic but even for new investors. This is an incredibly important. So what you need to find is n agent for your investor is, you need to determine what, first of all what is going to be the after repair value. We refer to that as ARV ok, so after repair value that means what the home will be worth after the investor as done his repairs or upgrade. As an agent that is probably the number one thing that you can help your investor with ok.

Maureen: Right yeah.

Justin: And what I’ve seen a of agents do is they will pay, they’ll just do like a typical like CMA and pick a combination of all the properties in the area and say ok here is your value. But that is not accurate when it comes to investing because the investor is goal is to add value ok. So it’s pretty simple I don’t want to over complicate it, I mean you basically look for houses that have been totally upgraded or re modeled and that are comparable to the subject property which your investor wants to make an offer on, right. So that’s basically how you determine the after repair value now. There’s not, you can’t always find you know that perfect house that exact model match right across the street, house been upgraded and sold you know last week right. So as a realtor that’s the part, that you understand better than most new investors even is, how to pull those comps. That’s what’s great right you can determine that value but just something to keep in mind you know don’t pull comps, don’t look at all the comps. I mean you can look at it as kind of data over all but focus on those properties that have been upgraded cause that’s where the value at it.

Maureen: Right yeah because you’ll be doing all those repairs for them and I mean that’s what you’re doing, you’re getting a profit, so that’s why you’re flipping them so they have to determine the value after they’re done.

Justin: Yeah so you come up with the ARV or after repaired value and then from there what you need to do is, you want to subtract the repairs. Now for me if I’m working with an agent at first I don’t need them to give me the repairs at first, I want them just to kind of give me the after repair value what it’s going to be worth but then overtime I guess I do want them to get an idea of how to estimate repairs and most agents are like, well I don’t estimate repairs. Well you know what if you want to be good at this business. If you want to be better than the other agents, then you need to constantly be improving your abilities, to improving what you’re able to do. Now I will tell you right now, I don’t not know how to weigh carpet, I don’t know how to weigh the tile, I don’t know how to paint, I barely know how to change a light bulb OK. But I’ve learned a few tips and tricks to estimating repairs. I can look at a house and give a ball park figure of what the repairs will be and if you just really try to you know walk through enough houses with a contractor of somebody you will learn how to estimate repairs to the degree that your investors needs you to do to make that initial offer. Now I’ll give you a few quick tips here. One is what I call the $20 per square foot roll, so if you take a 1500 square foot house and the home needs all new flooring hard and part flooring carpet. Let’s say it needs new kitchen, new paint, new exterior paint, a little bit of landscaping. What have I messed here new fixtures, that’s what I call basically a full debt OK and that’s going to cost you about $20 per square foot or $30,000 OK, 1500 square foot home, $20 per square foot. Did I say $30,000 I don’t know if I said that right OK? So it’s going to cost you…

Maureen: 30,000 yeah.

Justin: $30,000 for that rehab. Now that’s assuming it doesn’t need new electrical wiring or new plumbing. When I say new plumbing I don’t mean plumbing fixtures, I mean like it’s a 1930 house and the plumbing is just shot right. But don’t worry too much about all those details because your investor should have a week to attend the inspection period built in their contract and that will allow them to check some of those major things but basically this is going to help you come with the offer OK, so in the circumstance $30,000 rehab right. Now if it only needs carpet and paint. You know paint cost about a dollar to a dollar ten per square foot for a good investor who as a good contractor. So if the house only needs paint you’re looking at about $1500 that if it’s a 15000 square foot house. So then you can like add and subtract from this. So you’re going to learn these little tricks you know. We spend like $2 and 45c per square foot on laminate would flooring and then carpet, everything as these expenses. So you can get like a little list of what the house needs or you can basically look at what the house that you’re comparing it to, that you have the ARV for. Look at what they did to their home and then kind of break it down. I mean there is really only about you know 15 items that you need to figure out. OK, what’s the cost on average? What’s the cost per square foot to do these things? To do this carpet, to paint this house and as you start to get a bill for the things, you’ll be empowered and like I said you can use a $20 per square foot roll if it needs everything. And then for example let’s say that it still needs HPAC, like heating and air conditioning. Then you add 5000, if it has a pool that needs work, add another 5000, if there’s a roof that needs to be replaced add 7500 assuming it’s a composition, right and then you’re going to have these little things. You’re going to have like a little cheat sheet and this will help you to come up with those repairs, right.

Maureen: Right, yeah

Justin: And but you can work with your investor on it and they can give you a firm experienced rehabber that will give you feedback. So Ok, this is where I think I’m at, am I off? And they’ll work with you on that. A good rehabber I would all day long, would work with you on that so that your goal is to great this synergistic relationship. It’s almost like creating a new business in which you can then do multiple bills over time. Now to create that system and that relationship is where it takes the most time. But after that’s been created, after you’ve done your first deal or two together. After that I always tell people you know the hardest one is your first one or two.

Maureen: I would think it would be so beneficial for a real estate agent to want to work with an investor because sometimes real estate agents spend so much time prospecting and if they have already asked someone that you know, wants to buy and sell multiple properties. I would think that they would want to like grab right on to a real estate investor and do everything they can you know, to help them and develop that relationship.

Justin: Yeah my agent spends zero time prospecting and even when you prospect then you have to develop. Relationships are so difficult to develop, so as an agent you have to re develop those new relationships with every single buyer or seller, if they’re just you know one V type buyer. And once you’ve develop that relationship with your, you’ve invested that time and developed that relationship with your investor, then you can, the sky’s the limit right. So Ok, so you find the after repaired value, figure out the rehab cost and then of course you know you got to know the additional expenses now. As a realtor that’s where you guys already have a huge edge here. I mean you guys understand that realtor commissions, you understand closing cost.

Maureen: So we understand realtor commission yes.

Justin: Absolutely right, so you got to make sure that you calculate that in and then you want to figure out, you know what kind of formula criteria your investor uses and then if you can help your investor, come up with the. I mean if you can do some of that laid work for them. Come up with the after repaired value, come up with an estimate, come up with those other expenses and then know the kind of profit they’re looking for and you can just be, say, hey boom send then an email, whose new listing, here’s what you should offer based off of this, this and this. You will be golden, they will love you forever.

Maureen: Oh that’s awesome.

Justin: You will add so much value to them and I would be blown away if a realtor emailed me with all that information right up the back, I’m like O I love you, you know that’s like seriously like investors are always looking for great realtor like that.

Maureen: Ok well, how would a real estate agent go about finding investor like yourself?

Justin: The number one place I would go to is, you want to find your local real estate investment club or real estate investment meeting. I would try you know Googling it even go to meetup.com sometimes they are on there.There are a lot of newbie investors which if you’re a new agent, hey maybe the two of you could kind of get together and kind of learn together right. And if you’re kind of someone with more experience, maybe try to find someone who as some deals under their belt. What I always tell people, even agents, even investors who are looking for agents. I say hey if you get together with a new agent and it doesn’t work out, that’s ok because you both learned then you can move on and then you’re better next right, you’ve improved your skills, you have a better understanding for the next time but you might want to try to get a feel for someone. If you can find someone who’s done several transactions that you know can perform, that might be the best way to go, so.

Maureen: Yes, I totally agree. Sometimes an agent, well that is new they may be good because they may be hungry and wanting to you know work hard for that investor because this is their only deal right now and you may luck out with a new agent but I think maybe somewhere, middle of the road. Sometimes when you get like a number one agent or a lot of agents are number one. They may have a lot of business and may not have time.

Justin: Absolutely yeah and that’s what I always recommend to investors. I say you know don’t look for that number one agent. Look for someone who’s kind of like you said middle of the road. And then you can develop that relationship together so.

Maureen: Ok alright, if someone in that audience would like to get started in house flipping, how would they go about doing that?

Justin: Well first off you mentioned my website, http://www.houseflippinghq.com. I have a podcast where I’ve interviewed close to 50 now different real estate, house flippers real estate investors, people on my team and I that’s what we do is we talk about house flipping, building a house flipping business so that’s number one they go to my site. Actually number one I’d recommend they go to http://www.houseflippinghq.com we have a 52 page book on there that’s an introduction to house flipping basically. They can go there and get that for free. And then you know there’s four different parts of this business house flipping. Its breaks up into buying, financing, rehabbing and selling. I think it’s important to have an overall bird’s eye view of the whole process. I call those the 4 house flipping pillars. It’s important to have a bird’s eye over view of the whole process but the number one thing after you kind of have that overall concept of how to do those items is to really focus in on understanding deal. Which is what we just went through. How do you know what to offer on a property? If you don’t you’re dead in the water. If you have no idea what to offer on a property I mean just forget about it right.

Justin: So you got to understand that ARV, you got to understand those repairs and you got to understand those things. And then the next thing is figure out different methods of buying houses. Different acquisition strategies and then I would just focus on that almost a 100% because, if you are good at buying houses then the financing will come. The rehabbing honestly is as crazy as it sounds, is the easy part but a strategy that I recommend to do investors is you can start out with a technique called whole selling, which means you type a property and then for a fee you can assign that property or that, the rights to that contract to someone like myself and based on how good of a discount you’ve got on the property or you bought the property for, I would be willing to pay you 2, 3, 5, 10, 15, $20,000 for the rights to that contract. And what that does is it eliminates a 100% of your risk. It eliminates the time and effort that you put into getting that property but you don’t have like several hundred thousand dollars you know risk on your over your shoulders. You don’t have to worry about that, you don’t have to worry about the rehab, and you don’t have to worry about the financing. So that’s a great in, into this business and then over time you kind of learn more, you develop more relationships with private money lenders, hard money lenders. Ways to get financing, you learn more about creative financing, you learn more about the details of the rehab and anyway that’s kind of how I recommend for a lot of people to go about it. Then of course as agents you guys know how to sell, so I don’t need.

Maureen: So yeah, so as far as like house flipping, so if someone’s credit were not quite there in order to get financing.

Justin: Credit, don’t worry about credit at all.

Maureen: It’s nothing?

Justin: You don’t have to have credit.

Maureen: Oh that’s great, that’s good to know Alright, and so do you just look in the California area for properties? Are there other areas that you do look to purchase in case our audience is out there may find something for you.

Justin: Yeah I basically focus right now on all of Southern California which, I’ve only been doing that for the last couple of years now. Before I’d be more focused on you know general city or county. Yeah I recommend for people starting out, start with the farm area, and start with, as realtors I think you understand you know farm areas. Get to know an area really well. Start focusing on all the different ways you can buy in that area, network you know you can send mail to people, whatever, knock doors anything it takes but then over time you can expand that area, so.

Maureen: And possibly you know our real estate agents that listening to us now. They could possibly go to your website and maybe have someone in your mastermind group form you know somewhere that an agent may have a property for them. Don’t you think that might be a possibility Justin?

Justin: Absolutely yeah we have you know agents and people sending us houses all the time. Now for me personally what we usually need from an agent is you know like I said for them to give us all that information. We’re kind of to a level now where I ‘m like OK, look if you want to work at this, if you want to show that you’re serious, you kind of need to learn some of these things. And I want you to do a little of a leg work cause sometimes I’ll have agents or other investors just send me a list of properties that are on the MLS, like you’re not giving me any value OK.

Maureen: Yes anyone can get that information.

Justin: I can get that myself, and then don’t have to explain to you what I’m trying to get you to do right.

Maureen: Right

Justin: So it’s like you’re basically asking me to do more work to give you a commission and I might sound like I’m been harsh here. But I want to make sure if there’s any agents out there that are trying to work with investors. Make sure you’re adding value. The new investors they might have more time to work with you on that one on one. For me I’m in a situation where I said look, if you’re serious about this, go get some education. You know I provide like and I’m not just trying to cube my own here but I provide an intensely incredible coaching and master mind program for like a thousand bucks. So if someone wants to invest in their education they can go to bell fast flipping.com and there’s more information on that. Or we’ll just start with some of the podcast and start to get your feet wet right.

Maureen: Right yeah so you got a great podcast

Justin: Yeah, so get some education, once again or you can just go find a local investor who maybe kind of know all the grounds and start working with them and you know what if it doesn’t work out with them go find another one. Don’t be afraid, people are so afraid of, that’s what I call a fell fast, and my goal is to get people to fail fast because people are so afraid of failure, yet failure is something that we almost face before we achieve any level of success in life.

Maureen: So true.

Justin: But people are so afraid of that. They don’t like rejection, they don’t like to look dumb. What will people think of me, get over it.

Maureen: Yes

Justin: The faster you can sell, you know you have these guru’s and people out there teaching, oh you can make millions, its all baloney. I try to say it how it is, you know you’re going to fail, you’re going to fail hard, you’re going to learn what you don’t know and then you’re going to be able to ask the right questions because at first you’re asking all the questions you need to ask them. Some of them are right but some of them aren’t spot on. So the more you can take action, the more you’re going to realize oh I don’t know about that, I didn’t know how to do that. How do I do this and then you’re going to learn much quicker which will help you become more successful much faster, much sooner.

Maureen: Yeah, that’s great advice and great information. So well that’s very good Justin. Alright, what keeps you going, what keeps you motivated every day?

Justin: Oh, you know I’m human right, we’re all human. I don’t want to make this sound like I’m a 100% motivate a 100% of the time but you know I just. I think the difference between people who are successful like financially and what not versus those who aren’t, is like I mentioned they’re not afraid of failure and they just keep going and what’s their recovery time because I fail on a daily basis. I remember someone told me once, when they wake up in the morning, they put their problems solving hat on because they’re a problem solver, that is their job. So when a problem comes up, I say I think money, I think Oh this is opportunity. This is why I get paid what I get paid to do this. So when you have that mentality, instead of getting frustrated and like oh this is so hard and bla bla. You know, then you could keep going. So it’s not so much give up if problems will come up. It’s more how we react to those problems. And for me you said what keeps me going, I think its recovery time. I mean every single day I hear sad news about something. I mean it’s not that much anymore but I always at the end of the day cause to my assistance about once a day. She might tell me a problem or two that’s going on and at the end of the conversation I say, Vanessa are we still making money, kind of as a joke but also like just to remind ourselves that even with the problems, the overall success it even greater and she’ll say yes you know, it just kind of..

Maureen: So at the end of the day, that’s what’s important.

Justin: And the only reason we’re getting paid and I remind her this still cause still actually now the one solving most of those problems. I say just remember you know the reason why you’re getting, you get paid to be a problem solver, don’t ever forget that. So but for me as far as what keeps me going you know honestly, I do I listen to some pod caste and I love interviewing with people like you, just kind of fires me up but you know I actually have to be careful with reading too much or listing to too many motivational things cause I’m pretty naturally self motivated, to where I’ll get too excited and I lose focus on some of the other things that are even more important to me in my life like my family and you know God and so it’s kind of funny. I kind of have this weird personality where I just, I’m just a doer.

Maureen: I can certainly tell from listening to you.

Justin: Sell fast, make things happen, fall on your face, get up, and keep going.

Maureen: Get up and keep going, yeah. Alright, it’s a numbers game and just keep at it and I think real estate agents get rejected quite a bit. So they you know they know how it is as well, so yeah. So we’re winding down a little bit here. Do you have that favorite resource that you would like to share with our audience, like an ever note, or there’s something in your real estate.

Justin: I’m really not like super tacky and that’s kind of important. So I think sometimes people get too caught up and what software should I use or what, you know you and I we have, we’re doing kind of an online thing too now. So yeah we need to know more of those things for that I guess in some ways. But as far as real estate goes you know one of the most successful real estate investors I know, he does not even like check, he barely knows how to check email. And he just doesn’t know anything about technology and it just kind of goes to show, he said all you need is a house, is a buyer a seller and you know a contract basically.

Maureen: Right, your telephone, a call and yeah.

Justin: Exactly, I mean yeah don’t over complicate this business, get your hands dirty, get out there, don’t be afraid to talk to people.

Maureen: What is the best advice that you have ever heard?

Justin: The best advice I’ve ever heard. This is actually I’m going to, this is my own quote and it’s kind of along the lines of everything we said. It’s think less, do more and it doesn’t mean don’t think at all and don’t do something that is going to cost you at lot of money but 90% or lose you a lot of money I should say but 90% of the thing that we never do are things that we know we should do and we’re afraid but our fear does not come from a logical place. Otherwise, the only two fears are you know if you’re going to get mauled by a bear, that’s a true fear right. Sure if you’re going to buy a house and you know nothing about investing at all and you’re spending the last hundred thousand dollars you have to buy that house and it’s like you know as major, major issues. Ok that’s probably something you shouldn’t do but talking to people, making offers. These are all fears that we kind of conjure up in our mind that more have to do with pride and have to do with the fear of rejection or what are people going to think. You got to eliminate those things. So always think less do more. I have so many people to get analysis for houses, they have information over load. They have the list of like 20 books that feel like they have to read before they ever do anything, don’t do that. Get out there, take action and once you take action. I believe in continued education but there’s different phases and if you’re a perpetual student and that’s all you’re ever doing then you’re never really going to understand 90% of what you’re even learning because only the doers are the ones who truly understand what the teachers are teaching, so.

Maureen: That’s great Justin that is a really great advice, OK, this is my last question here and it’s kind of a favorite. Imagine that you woke up tomorrow, you had to start your business all over again from scratch. You have a laptop, a phone, a car and $500, what would you do?

Justin: OK, so if I understand correctly I still have my knowledge right?

Maureen: Yes

Justin: Ok, thank you, I love this question because it’s a great question and that’s how most of us are and this is actually how I was basically when I started. I mean yeah I had gotten out of debt but didn’t mean like I had a lot of money to go invest right. Some of the first things that I did do, this was without even having the knowledge that you said I now have, was I just went and like knock doors. So I didn’t have any money. So every day I just, I knew how to knock doors so I’ve done the door to door thing and not that you know. I remember my wife even saying, what are you going to say? And I said I don’t know but I’m sure the words will come out, when I get to the door. So I would go and knock doors of people that were behind on their mortgage payments you know, and notice of default properties and I would talk to them about selling their house. I would just go everyday and just start knocking doors like a mad man but it’s not going to cost a lot of money. The only thing I would do is call driving for dollars, where I would drive around and I would try to find houses that look to be vacant. Maybe there’s over grown weeds or newspapers in the drive way or what not. And I would write down those addresses, I’d do some research on them and I would send letters or try to contact the home owner and make offers to purchase their houses and then what I would do from their if I was able to purchase the house is what I mentioned, which is whole sailing, which means I wouldn’t need any money. So I’d connect with a rehabber who does a high volume of rehabs and for a fee, I would sell the house to them for like a small fee and then I could grow from there. Now that’s one, I’m going to give you one more, is that OK?

Maureen: Yes, that’s fine.

Justin: I would you know 1 of the things that we do a lot right now in this market is mailing. We’ll send mail to absentee home owners, people who are out of state land lords or maybe other people who are getting you know notifications from the city that, they have over grown weeds or there’s issues rights, so I would find these people who have this motivation and if I didn’t have any money right. Normally we marketer’s people spend a few thousand dollars on marketing, we get the returns, it’s great. But I would connect with a rehabber or an agent. So if I were to connect with a rehabber, I would say hey look if you know I’m good at it because I have my knowledge right. I’m really good at buying these houses, I understand, analyzing deals. I can take calls from seller, I can negotiate, I’m willing to put in the time while you pay for this marketing and then you’ll be my built in buyer. I will wholesale all of these properties to you and what we can even do to kind of make things better for you is. I will take the task of the money that you fronted me for the marketing and that can be applied towards my wholesale been and I’ll tell you what as a rehabber, I would do that all day long especially with an experienced investor who as the knowledge and I’ do that actually. So that’s number one and then as an agent I just, I would approach an agent and I would say hey why don’t we you know, if you can help me out with marketing we can split the cost of marketing and you can take the calls as the agent and you can try to help tie up some properties for me and any house that doesn’t work as a flip, you can then use that and try to get a listing from it.

Maureen: Right that’s a great idea

Justin: I guess if I had $500 I kind of do too much of that, that’s the way that I can at least double my marketing efforts and it’s kind of a win win for the agent and the investor. Now if the agent were to buy the house for me. They’re going to get the listing and you have to pay them you know a fee up front for buying it and the listing and it is once again for those maybe to have a really nice house which just doesn’t work as a flip, then their agent can then say, ok this doesn’t work in this scenario but I can list your house for you, this is what you can get and you know go through the whole thing, the agent thing. Here you go that was a much longer answer that you were probably looking for.

Maureen: Oh no, that’s fine, that’s wonderful well we get some great information and it’s really good. I guess this will be it, I definitely do want to thank you. You provided us with really great information Justin for bought investors and real estate agents. So I want to thank for been, you know so generous with your time and expertise and just to reiterate. The best way to reach you would be your website, http://www.houseflippinghq.com You have a podcast, what else?

Justin: Yeah you know house flipping hq.com is great, you can email us at info@house flippinghq.com if you have any questions but yeah just like you say Maureen I think this is amazing what you’re doing and you’re providing a great service to agents out there and I’m really excited about your show and what you have going on. So thank you.

Maureen: Great, well thank you Justin. I certainly do appreciate it and I definitely you know have learned quite a bit from your show as well. So I definitely want to you know, let all real estate agents to check out your pod caste and definitely learned a lot, especially on your last episode. I can’t remember who it was.

Justin: That was a really good one, yeah with Robert I think at the 7 45, so yeah you go to house flipping hq.com slash episode 45 and that one was perfect for agents. He talked about how agents and investors can work together, those are great tips, so we could do a whole other show on that but I’ll just let him go this time.

Maureen: I know that was awesome. Alright well you can also get all the show notes on the website, real estate agents on fire.com, stop over there and grab your free copy of 100 on align resources. You can also find out information about podcasting because I think every real estate agent should have their own podcast. So thank you real estate agents join us next week for more tips and you will be one step closer to becoming a millionaire real estate agent. Thank you Justin certainly appreciate you stopping by.

Justin: Ok thanks Maureen.

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