Justin Colby is an entrepreneur, real estate investor, and a mentor who has built 3 multi-million dollar business with a focus on marketing and sales.
Justin Colby’s YouTube Channel – Check out Justin’s YouTube Channel!
Justin Colby’s Instagram – Follow Justin on Instagram!
3 Value Bombs
1) Now is always the best time to buy real estate. Don’t be the person trying to catch the falling knife, or find the top of the market so you can sell, or the bottom of the market so you can buy.
2) Be an opportunity seeker. Go out and create the opportunities at volume so you can maximize them.
3) It’s about maximizing each opportunity. Some are better rentals, some are better as flips, and some are better as wholesale.
**Click the time stamp to jump directly to that point in the episode.
Today’s Audio MASTERCLASS: The best investing strategy to gain riches and build wealth: Real Estate
[1:16] – Justin shares something that he believes about becoming successful that most people disagree with.
- You have to go through massive failure to be able to come back out of that trench and reach new heights that you’ve never reached before.
[2:18] – The reason why real estate is the best investing strategy to gain riches and build wealth.
- It’s not just about the active money; you want to get to a place where you don’t have to do a thing to live your dream life. That comes from passive residual income.
- Active wealth creation
[3:37] – Why now is the best time to buy real estate
- Now is always the best time to buy real estate. Don’t be the person trying to catch the falling knife, or find the top of the market so you can sell, or the bottom of the market so you can buy.
- Buy along the way all the time. If you do it correctly, and do it for the long-term, then you’ll have wealth accumulation.
[5:21] – Do we need money to invest in real estate?
- Buy rehab homes using hard money with a bridge lender. They lend on the asset so their interest is higher than banks.
- Long-term rentals can make use of lenders who lend on the asset
[7:00] – Can anyone start investing?
- 100% yes, anyone can start investing.
- Just be committed, have intention, and take action.
- A full-time mother of two who works full-time… She reached out to Justin and in just 90 days after joining, she landed 5 deals and made $78k.
[10:02] – A timeout to thank our sponsors!
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[13:24] – What is going on in the real estate market today?
- It’s flexing and dynamic.
- Be an opportunity seeker. Go out and create the opportunities at volume so you can maximize them.
[15:09] – Could there be a better time to invest?
- As long as you have multiple exit strategies, you can analyze each opportunity differently.
- It’s about maximizing each opportunity. Some are better rentals, some are better as flips, and some are better as wholesale.
[17:19] – One of Justin’s worst real estate experiences.
- It was a real estate development play in Arizona.
- When you are chasing money, money runs. Not all opportunities are for you. Learn to say no.
- Keep your head down and stick with the things that you’re good at. Stay uncomfortable, but don’t go play a different sport.
[20:19] – The best real estate strategy.
- Any property that you can buy creatively and put in a portfolio can win.
- Wholesaling business can get you a whole lot of cash.
[21:42] – Justin’s call to action.
- Justin Colby’s YouTube Channel – Check out Justin’s YouTube Channel!
- Justin Colby’s Instagram – Follow Justin on Instagram!
[23:17] – Thank you to our Sponsor!
Who’s ready to rock today, Fire Nation? JLD here and welcome to Entrepreneurs on Fire brought to you by the HubSpot Podcast Network. With great shows like Social Lets. Today, we'll be breaking down why the best investing strategy to gain riches and build wealth is in real estate. To drop these value bombs, I have brought Justin Colby into EOFire Studios. Justin is an entrepreneur, real estate investor and mentor that has built three multimillion dollar businesses with a focus on marketing and sales. And today Fire Nation, we’ll talk about why real estate is the best investing strategy to gain riches and build wealth, why now is the best time we're gonna talk Money investing. We're gonna talk about a lot of important things and so much more.
And a big thank you for sponsoring today's episode goes to Justin and our sponsors. Speakeasy will allow you to create content for your audience. Live, earn recurring revenue from monthly subscribers, stream private shows for select attendees and more. I am loving creating daily content on Speakeasy and I think you will too. Visit getSpeakeasy.com to download the app and start rolling. Success story hosted by Scott D. Clarey is brought to you by the HubSpot Podcast Network, the audio destination for business professionals success story features Q and A, keynote presentations and convos on sales marketing In more. A recent episode on how to protect your business in times of crisis is a must.
0 (1m 28s):
Listen, listen to success story wherever you get your podcasts. Justin, say What's up to Fire Nation and share something that you believe about becoming successful that most people disagree with.
1 (1m 43s):
What up? Fire Nation excited to be here and thank you John. So the thing that I actually believe very strongly about becoming successful, that I believe most people are gonna disagree is I am adamant that you have to go through massive failure to be able to come back out of that trench to reach heights that you have never, ever, ever reached before. And I would argue most people would say, no Justin, you don't have to do that. But I know from experience my friends, people like yourself and others, you need to reach that depth of hell so you can come back out and reach limits you've never seen.
0 (2m 24s):
Well, Fire Nation, we're talking about the best investing strategy to gain riches and build wealth, aka real estate. Why? Why Justin? Why is real estate the best investing strategy to both gain riches and build wealth? Break it down for us.
1 (2m 41s):
Well, real estate in, in my opinion, is the only investment strategy. And I'm not saying I don't invest in crypto or some stocks, but the reality is we're here to make a lot of money when we're on this planet. We are obligated to because money creates the life we want, right? Period. End of story. I don't think anyone will disagree with that. But it's not just about the act of money cuz the active money can buy us the house or buy us the car or buy us the things, take us on vacations. But then you want to get to a place where you absolutely don't have to do any of it and you live the life. And that comes from passive residual income. The best way I know to do that is through real estate. There's no stock, well I'm not gonna say there's no stock, but you don't get the combination of active income through real estate and the wealth creation, which guess what?
1 (3m 30s):
Banks love. They love to borrow against assets that have equity. It just becomes, you know, a triple or quadruple fold of you can create millions and millions of dollars of income but also create this wealth that by the way will allow you and the people who understand how to leverage the wealth in assets to create more income and more wealth.
0 (3m 55s):
A lot of people are always sitting around waiting and saying, Hey, like I should have invested in real estate like back in 2010 or I should have invested back in 1984. They're, they're always like, they're waiting for this like perfect time. Let's talk about why now is the best time.
1 (4m 11s):
Great question in the sense of we are real time going through a real estate market shift. Real time happening right now. I've been in this business for 15 years. I've done over 2000 transactions and I can tell you I've seen a lot over the last 15 years including the great recession. Why now is a great question because it's always now don't be the person trying to catch the falling knife. Don't be the person trying to find out where the top of the market is. So you can sell or where the bottom of the market is where you can start buying. You should be buying along the way all the time. The reason I just explained, if you're doing it correctly and you know how to buy these real estate assets and you're doing it for the long term, then you're just gonna be able to have wealth accumulation.
1 (4m 57s):
Because if you're buying it for the rental purposes, the tenant is paying off your mortgage, you are building equity. Banks love to lend against equity and the cycle continues to go. So when the down times are coming, you should be buying. When the times are rolling, good, you should be buying, you always should be buying real estate.
0 (5m 17s):
So if people are thinking like, man, okay now he's just squashed one of my things about like now's not the perfect time cuz there's no such thing, but the next thing that comes up is like, well I don't necessarily have money cuz you know a lot of people, and this is just a reality, it's like 40% of Americans can't write an unexpected $400 check and you know, a lot of people are in debt and there's this and there's that. So let's talk money. Do we need money to invest in real estate?
1 (5m 43s):
Absolutely not. I bought 14 rentals last year alone with none of my own money. I will tell you there are strategies in real estate such as wholesaling where you never actually fundamentally buy the home. You assign the contract. I've done probably 1500 wholesale deals in my 15 year career. You can buy in rehab homes using hard money in a bridge lender. For those that don't know hard money, it's more expensive money. It's not a traditional bank, they're landing on the asset, right? So the interest rates are 9, 10, 11, 12%. But then you can get a bridge lender, which could be a family member, bridges the gap, you never used any of your own money and you flip the home and you make 20, 30, 40, $50,000.
1 (6m 27s):
Same can be done with long-term rentals. You can go and find a lender. I have a lender that I use really well that Lima won capital, they've been great for me for 30 year loans. But they lend on the asset and the person, they're not a true bank in that sense. So I call 'em soft money, well they'll lend up to 80 or 90%. I bring in bridge money and I never need a dollar of my own. Now there's a strategy and a system you have to follow, there's no doubt. But it is a hundred percent possible is I am proof.
0 (6m 56s):
Now one thing I wanna kind of move into is I think a lot of people look at real estate and investors and they're like, oh man, they must have gone to school for that. Or they had a great mentor or they just know what they're doing or they're good at business or they're smart or they were inheriting money or all these different things that people like to put up as barriers, as obstacles in front of them moving forward. So let's just break it down right now. Can anyone who's listening to our voices right now start investing?
1 (7m 25s):
100%? Yes. As someone who is a coach and is an educator, I take pride in my students getting their very first deal. Now my story is I started in oh seven, broke bust and disgusted. I lost my home to foreclosure. I was sleeping on a couch and to really win the prize, the repo man took my car. Oh, I had no job, no income. I was broke, bust and disgusted. Not just financially but mentally and spiritually. I mean I was bad but I knew I could do it. And over the next nine months I made hundreds if not thousands and thousands of phone calls and I got my first deal not knowing the first thing to do. So as an educator, as someone who does coach people, it is such a prideful moment.
1 (8m 8s):
And especially this month has been crazy. Five new new students have gotten their very first check in the very first 30 days of following just the simple structure that I have in our business of real estate by wholesaling properties. They didn't have a bunch of money, they didn't need a big marketing budget, they didn't need to go buy homes. They just needed to be committed, have intention, and take action. I call it cia, not the government agency, John, I know what you're thinking, right? But CIA commit directed intention and take action. And that's all people need period. Anyone listening to this, you need those three things and you will be successful.
0 (8m 50s):
So let's get specific, let's go down to a real situation. Maybe it's one of your clients, maybe it's one of your first deals. Walk us through exactly what that looked like from beginning to end.
1 (9m 0s):
Great. So I have a, a great student who actually just sent me a great testimonial. She is a full-time mother of two, she works full-time and real estate was gonna be her part-time hustle to try to buy rentals. Well, what happened was she started to understand this fundamental wholesaling business. She was watching a bunch of my videos on YouTube and so, you know, getting kind of an understanding what this was, reached out to me to see if I would be willing to, you know, coach her. And in the last 90 days since she joined my coaching, she's gotten five deals. Whoa. And made $78,000 on these five deals in the last 90 days while working full-time mother of two wife and using this as a part-time hustle.
1 (9m 50s):
I I just, those, those are the moments that you just say this is such an amazing business cuz anyone can do it. Regardless of money, how much time you have, as long as you are committed
0 (9m 59s):
Fire Nation, are you committed? Do you have the desire? You know, like, let's be honest, Justin was talking about he had to make hundreds if not thousands of calls, but he got off his butt. He did it, he made it happen. And guess what? He didn't have a step by step process that he has now created for you. And we're gonna be talking about that and more when we get back from thanking our sponsors. Ready to ditch your subpar podcast listening app and download an app that has every feature you want and need with more great features being added all the time. The app is Podopolo and you can download it for free and start listening right now at Podopolo.com. Podopolo gives you access to every podcast at your fingertips with easy discoverability audio and video podcast in every genre and language and instant recommendations.
0 (10m 45s):
So the perfect podcast and live streams find you without you having to lift a finger. Plus PODOPOLO is interactive so you can create and share short snippets and discuss episode with friends in your favorite hosts. My favorite feature, Podopolo, you create your own personalized up next queue so you can set it and forget it. Join me on Podopolo where you can interact with me, connect with others, ask questions, and share your thoughts on your favorite podcast. Visit Podopolo.com, download the app for free from either App store, mention JLD or EOFire when you sign up for an account and start listening now. That's P O D O P O L O.com. If you're a creator looking for new ways to connect and interact with your audience live, then I'm excited to tell you about Speakeasy.
0 (11m 32s):
A new app made by creators. For creators that is uniquely built to help you monetize your audience. All you have to do is download the Speakeasy app, go live and you'll be connecting with an interactive audience who can comment, give live reactions, join you as a guest, share with their friends and followers and more. You can use Speakeasy in so many ways, live podcasting, show recordings to upload pictures and videos you wanna share with your audience or to host premium content. People can subscribe to Speakeasy doesn't censor content based on political, religious, or personal views. As long as you're not instigating violence, you can speak your minds. I'm going live on Speakeasy Daily Fire Nation and I know you're gonna love this platform. So what are you waiting for?
0 (12m 13s):
Come join me for my next live show visit getSpeakeasy.com to download the app. Follow me at John Lee Duma and I look forward to chatting with you live. That's getSpeakeasy.com. Are you looking for a place where you can exchange ideas, shared knowledge, and find invaluable mentors, co-founders and investors? Sounds too good to be true, right? Thanks to HubSpot, it exists and right now you can get instant access to a community of 16,000 plus business builders at trends.co/mfm. Trends is a HubSpot community for founders and entrepreneurs that tells you what the next big thing is gonna be months before everyone else and delivers access to analyst, vetted business ideas and market signals straight to your inbox every single week.
0 (12m 56s):
Inside trends, you also have access to live virtual business training in Q and A. Sessions that feel like MBA lectures where you can learn everything from advanced marketing techniques to how to get fundraising from venture capitalists. A seven day trial of trends is yours for only $1 in a yearly subscription. Plus access to the community is $299 per year. Get a seven day trial of trends for only $1 at trends co slash mfm. That's trends co slash M fm. Justin, it's a pretty crazy world we live in these days. I mean, depending on when Fire Nation is listening to this, I mean that's gonna be up in the air. But listen, I mean we're dealing with inflation, we're dealing with a stock market going down, we're dealing with crypto crashes in bear markets, we're dealing with a lot of uncertainty in the world.
0 (13m 44s):
There's wars in Eastern Europe, there's China that's always flexing and doing all these things. What is happening in today's market? Talk to us.
1 (13m 54s):
It is flexing, right? Is dynamic is the way I like to say it. And that's a good thing. You know, I think the last run we've been on over the last, you know, four or five years really has been unprecedented. And so I think we needed a little shake up in the real estate market and that gives just more opportunity as a full-time real estate investor. Myself, what I talk about, like I just did a video on YouTube, again, go to youtube.com/JustinColby, but I talk about this concept of being an opportunity seeker. I'm not talking about some mlm that is not what I'm talking about. I'm talking about go out and create the opportunities at volume so you can maximize the opportunities.
1 (14m 34s):
Not every deal is gonna be a good deal, but because the real estate market is being shaken up because the interest rates inflation, some of the biggest companies in the world are doing some pretty mass layoffs. There is a space in the real estate sector to find properties that are good investment properties. Whether you're gonna gonna flip them, hold them, or even just wholesale 'em off. So this is needed. It just means you need to be the person creating the most opportunity so you can maximize each one of those opportunities.
0 (15m 4s):
Now we already addressed this before the break, but I wanna go back into it because it's such an important concept in mindset that our listeners really need to just absorb. Should they be waiting? Could there be a better time to invest? Let's talk about this.
1 (15m 18s):
The answer is emphatically no. Because again, if you take my principles of there's four exit strategies, right? You can wholesale it, which means you never have to buy it, you can whole tail it, which means you just buy it and list it on the prop on the MLS because it doesn't need any work. You can rehab it, right? And flip it on the mls, which all the TV shows are about, or you put it in your portfolio. So as long as you have multiple exit strategies, you can analyze each opportunity differently. If you are looking at a property and you're like, okay, I wanna flip this, you know, the numbers don't really make sense, well then you can flip your glasses over and say, does this actually make more sense to buy as a rental? And then you can flip your glasses over again, say, Hey, instead of buying it as a rental, I'd rather just wholesale it and make a quick $10,000 and make some active income so I can go visit John in Puerto Rico.
1 (16m 6s):
Right? So that's, that's the way you gotta look at this is there's four exit strategies and if you bring in all the opportunities, then right now is the time to buy and so is tomorrow. And so is next month and the month after that because it's just about making sure you're maximizing each opportunity. Some are gonna be better rentals, some are gonna be better flips, some are gonna be better wholesales. Right now is the time.
0 (16m 29s):
This is a perfect segue to what is your favorite reality real estate show?
1 (16m 36s):
Man, it, I got, I became addicted to million dollar listing Los Angeles. Josh is hysterical.
0 (16m 43s):
That's so good. I'm actually way into selling sunsets and so much that I've actually started watching selling the OC and man talk about that's just guilty pleasures. But I'm on a flight tomorrow and I I will be watching that show on the flight tomorrow and I, and I hope nobody peaks over my shoulder because it's, it's, it's almost, it's not really about real estate as much as it should.
1 (17m 6s):
I a hundred percent it is pure entertainment. I love
0 (17m 8s):
1 (17m 9s):
Pure entertainment. Oh
0 (17m 10s):
Man. So you did talk about during the first question, you know about how, you know you have to go through fire, you have to go through hell, you have to actually have massive failures to have success. Let's talk about one of your biggest real estate failures. Let's get real specific because not everything is sunshine and rainbows and ponytails. Yeah. Like there's some, there's some bad deals that are gonna happen too. Especially before you know what you know now. So what's one of those worst real estate deals, investments, or whatever experiences that you can talk
1 (17m 42s):
About? Yeah, I can tell you, you know, financially the worst was a development play we were doing out in Mesa, Arizona. And the deal was brought to me cause I just did 96 rehab flips and I made more money in God and you couldn't tell me anything. I was, I was the king of real estate, right? And so this opportunity comes and I said, of course I can do 78 unit development. No duh. Well listen, when you're chasing money, which is what I was doing cause I am not a developer, never have been. I essentially was chasing a paycheck, right? I saw the numbers and I said, this is, this is a no brainer. We're doing this.
1 (18m 22s):
Well, when you chase money, money runs, right? And ultimately I had no idea what I was doing. I was way outside of my expertise, right? If you think about what Warren Buffet, buffet believes in staying inside of your expertise. And so I got caught with my hand in the cookie jar, quite literally lost seven figures out of my pocket. Okay, this isn't hypothetical, that's how much I actually lost. The deal went bad, it went back to the lender. It was awful. And I took so much from that experience. I am the person I am today in business because of it. And now I own multiple businesses. And I learned from that one example of essentially chasing money because the opportunity was there.
1 (19m 7s):
Well, not all opportunities are the right opportunities for you. And I had to recognize that. And it helped me start saying no more and helped me starting focusing on the things I know I do very, very well. And because of that, I became much better even at those things, right? And so I was able to make a whole lot more money. And when you can do that, it gives you these options. And so that one moment, while Yes was a brutal financial loss and lost seven figures and it was awful borderline, almost tore me and my business partner apart at the time. What I really took was keep your head down, stick really good to the things that you do, stay uncomfortable, but don't go play a different sport.
1 (19m 54s):
And that's essentially what I was trying to do. I thought because I was so good at basketball, I could go play cricket and it just didn't equal, right? So that's, that's a really massive takeaway. But I don't want to dissuade people from being uncomfortable. I encourage you to be uncomfortable, get outside your comfort zone. You just don't have to leave the country to do it.
0 (20m 14s):
Well, thank you for sharing that with us because that is a painful lesson. But those are sometimes, as you mentioned, the most valuable. And I wanna end with a bang. What is the best real estate strategy that you can share with us today?
1 (20m 28s):
I love any property I can buy creatively and put in a portfolio. That's what I love. If I'm thinking through who the audience is gonna be, I think you everyone should be getting into a wholesaling business because it creates so much cash. It's like an atm. You literally put money into it and you get a three, four, or five x return on your ad spend and now you have options. So everyone should be looking at building a cash flow business in the sense of wholesaling, making a bunch of income. And from there creating wealth. Because again, you go create the opportunity and you maximize it.
1 (21m 11s):
Start by looking at the wholesale side, but ultimately really be focused on, let me go wholesale two, buy one, wholesale two, buy one. And if you do that, you're gonna win and you're gonna look back and you're gonna say, John, what a great episode with Justin. I now am worth $10 million. I can do whatever I want when I want because the checks keep rolling in. That's what I hope for everyone listening to this episode,
0 (21m 35s):
Fire Nation, I want that for you. I want you to win. So Justin, where can Fire Nation go to connect with you to learn more from you? What call to action do you have for us today?
1 (21m 46s):
I give away 99.9 of my stuff for free. 99.9% of my stuff for free because it's just out there. And so you need to go to my YouTube channel, youtube.com/JustinColby. I drop five videos a week. Five, wow. All free content, educational. It's all about business, real estate and entrepreneurship, all of it. And then I would tell you the easiest way to connect with me is, is Instagram, the Justin Colby on Instagram. You know, go over there, give me a follow and say, what's up to me? It's really me. There's no bots behind the scenes working my social media. Say, what's up? Let me know. You heard me on Entrepreneurs On Fire and I'm gonna say, right, what's up?
1 (22m 29s):
Right back and see however I can help
0 (22m 31s):
You. Fire Nation, you're the average of the five people you spend the most time with. You've been hanging out with JC and JLD today, so keep up the heat, head over to EOFire.com, type it Justin in the search bar, his shown us page will pop up with everything that we've been talking about here today. And Justin, thank you for sharing your truth, your knowledge, your value with Fire Nation today. For that we salute you and we'll catch you on the flip side.
1 (22m 54s):
0 (22m 56s):
Hey, Fire Nation, a huge thank you to Justin for dropping value bombs and sponsoring today's episode. Fire Nation's successful entrepreneurs accomplish big goals. That's why I created the Freedom Journal to guide you and accomplishing your number one goal in a hundred days. And we're talking step by step. Visit the freedomjournal.com, I'll catch you there. Or on the flip side, Speakeasy will allow you to create content for your audience. Live, earn recurring revenue from monthly subscribers, stream private shows for select attendees and more. I am loving creating daily content on Speakeasy and I think you will too. Visit getSpeakeasy.com to download the app and start rolling.
0 (23m 37s):
Success story hosted by Scott D. Clarey is brought to you by the HubSpot Podcast Network, the audio destination for business professionals success story features Q and A, keynote presentations and convos on sales marketing and more. A recent episode on how to protect your business in times of crisis is a must. Listen, listen to success story wherever you get your podcasts.
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