Posted on: April 07, 2020
WI 400 | Taking Action


If you’re looking for an inspirational story to get you through these trying times, today’s episode is exactly what you need to hear. However, Justin Colby does not only have an inspirational origin story, he also has a really impressive resume to boot!

Justin is a real estate investor, entrepreneur, coach, and mentor. He is also the President of Phoenix Wealth Builders, the Founder of The Science of Flipping, and the Regional Market Manager of Sundae. Justin is also the host of the wildly successful podcast, The Science of Flipping Podcast, and the author of The Science of Flipping: A Proven Formula for Successful Real Estate Investing.

In this episode, Justin generously shared the wisdom and principles that has helped him transition from someone who’s broke, busted, and disgusted (his own words) to one of the most prolific and highly successful real estate investors today. This episode will impress and amaze so don’t miss it!

For the entire month of March, we ran a ratings and review contest. Your response has been very overwhelming—we received hundreds of emails from you guys and we couldn’t thank you enough. To show our appreciation (and give others a chance), we have decided to extend the contest until April 15th!

The contest mechanics will still be the same. Rate (5 stars, please :)) and review the Wholesaling Inc. podcast to enter and send a screenshot of your review to April 15th will be the last day of submission. We will announce the winner on Thursday, April 16th, 2020.

While we don’t have a date for the mastermind yet, 3 lucky winners will get a chance to spend 2 full days with Tom Krol in sunny Florida. Hotel and airfare will also be on us! Good luck and stay safe, everyone!

From Sleeping On A Couch To 1,400 Deals With Justin Colby

Episode Transcription

You are probably wondering what happened to that iTunes review contest. Did I win? Here is the deal. First off, I want to thank all of you who sent in a review to me. I have received hundreds of emails from you guys, some with kind words from me. I appreciate that. I want to say thank you to all of you who took the time out to review the show and send an email to enter this contest.

Some of you have sent in reviews that came in after the 31st. You posted them before but it took a couple of days on Apple’s side to update, and you were asking, “Did I still have a chance to enter this contest?” To be fair, and with everything else that is going on in the world, we decided to extend the contest to April 15th, 2020.

You are going to still have another chance to win the contest. If you have not already entered the contest, all you have to do is rate and review the Wholesaling Inc. show on iTunes, five stars please, and send a screenshot of the review to me at You will be entered into the contest to spend two full days with Tom Krol in sunny Florida. We are going to pay all the expenses. Your flights and hotel are all on us.

We will be announcing the winners of this contest on Thursday, April 16th, 2020. The 15th is the absolute deadline for your review. We do not yet have a date for the mastermind with Tom because of everything going on with the Coronavirus. We will obviously let the winners know. I am hoping that this thing is going to be over soon and start to go back to normal or maybe even a new version of normal. People are going to go out and enjoy their lives again. It is going to happen sooner than later.

You are tuning in to the number one show when it comes to the instruction that you need to wholesale real estate. Each and every week, we have the absolute pleasure of interviewing the top people from around the country. Maybe they are top because they just got their first deal. They might be in the military and doing this first time, and they got their first $25,000 check, or they have been staples in the industry for years. It is my pleasure, on this show, to introduce one of those guys that have been in front, on stage, around, and coaching people since 2014, at least with his podcast, The Science of Flipping. It is Mr. Justin Colby. Welcome to the show.

I am so happy to be here. This is impressive. You guys are crushing. I am very honored that you add me here.

It is funny because I get this all the time with shows. Why are all the people that do podcasts or coaching in Phoenix, Arizona? You live just down the road.

It is quite impressive. We are all in one area. I am in a lot of masterminds, and you are, too. I run one and half of our mastermind is coming from Phoenix. It is insane. I do not know the answer to that. I get asked all the time. This is a great city to be an investor in. You have great flip properties and buy-and-hold properties. If you have an expansive city, you take that. For us, entrepreneurs or infopreneurs, you get real estate, and you are like, “What else can I build? Where else can I go?” Being able to give back is something you and I believe in.

I remember I was in my Acura. I was a real estate agent, and I was showing houses in surprise. I was listening to The Science of Flipping podcast. It was probably 2015. You and Sean Terry were the only two that I had found that was easy to talk about investing in real estate. They had some of the Rich Dad stuff and the bigger organizations, but you guys were more nitty-gritty going over everything. It was interesting. I always wanted to ask you why The Science of Flipping? Why did you name it that? How did that come about?

You hit it on the head. I called our friend Sean, and he was like, “You need to do this. Get on the page. Get a podcast out there. People want to hear what you have to say.” I am like, “Cool.” He is like, “You could name it whatever you want. Flip your freedoms work. Do something like the science of flipping.” I am like, “Do you mind if I steal that?” I give him the credit. He was like, “Yes. If I had to do it over again, I would call it The Science.” I was like, “That is what my podcast is going to be.”

There is a scientific component if you keep your business structured. For me, my podcast is about the systems, the tools, and the technology that can help systemize your business. I always talk about that. Whether you are a rehab or wholesaler, it does not matter. There are always systems you need to follow. I put that together as a formula. From there, I have been able to gain a lot of traction because it appeals to people.

Is that formula something that is just for flipping, wholesaling, or buy and hold? We look at every deal. We are sourcing these deals because that is our job. That is the value we provide. We source real estate opportunities. You either flip it, hold it, or wholesale it. Are there different formulas for each one? Was your podcast mainly about flipping?

When I started, it was about rehabbing and flipping. I started flipping in 2007 here in Phoenix, but it is inverse. You teach wholesaling first but I started flipping. Wholesaling was not a thing yet. My first twenty episodes are all about systemizing rehab flipping, contractors, paperwork, and payment schedules. You name it. As I got into wholesaling, it has transitioned over time into predominantly wholesale podcast episodes about the systems of wholesaling.

The business itself conceptually is easy, but it is very easy not to make money in wholesaling. You need the systems, the tools, the structure, and those components to make it a machine. Ideally, we all want to do other things. I love the income that comes from wholesaling and flipping. I love what you and I talked about. I love coaching, giving back, speaking from the stage, and having a podcast. If you are eyeball deep in your business all day long, you can’t do that to be able to build that lifestyle.

It is one of those Gary Vee’s self-awareness things, “If you are going to be focused.” If you truly want to be a real estate investor, fundamentally, having a wholesale business is absolute because you are sourcing your own deals. Once you are able to source your own deals, you have the options to go any way you want with them.

Everyone’s vision is to do a million dollars. You can’t do it if you’re not able to execute.

A real estate investor truly is somebody that either buys and sells his property but, more traditionally, has a portfolio of properties that they are either paying down debt, getting cashflow, or having these things free and clear and increasing their net worth every single month. A lot of people think that wholesaling is real estate investing. It is not.

That is because we, yourself, myself, Max, Sean, Kent, and anyone who has a voice, have brought this to the limelight. This is the predominant way to invest primarily because you do not necessarily need credit like in the old school days. Invest with no credit note. You do not need money. It is the better way to get into the industry. Is it the end all be all? No, because it is like a cash shtick. You can create a bunch of cash and make a bunch of money.

You want to take your money and reinvest it whether it is into rehabbing, buy and hold, or multi-unit, especially on the buy and hold and multi-unit, you gain your wealth and lifestyle. That is why we all do it. At the end of the day, when we are 65 using an old school number that is arbitrary, we can be like, “We have 4,000 units.” We do not have to do anything ever. Ideally, I would like that by 45. I am 38. I am hoping by 45, I can get to that place with real estate. I am going to be a little aggressive. I can chalk it up and say, “I can go add a couple of hundred here and there and not have to worry.”

I remember listening to your podcast back in the day. There are always the origin stories. There are always, “I owned a real estate company. I signed an office lease in 2008 and went down. I am personally guaranteed for $742,000.” You had an origin story. You were on a buddy’s couch.

I call it broke, busted, and disgusted. I was out. I graduated from UCLA in 2003. I have never been employed. I always owned my own company. I went directly into sales. I got into real estate with a buddy who wanted to start a brokerage. I went and took my real estate license and started this brokerage. That brokerage is still around. It is the number one producer in Marin and Sonoma County but I am no longer part of it. During that time, we were selling new home builds. I was an order taker. I built no skill around it. People would come in, and I have had 36 offers. I would say, “Which one is the highest one? You get this home.” There was no skill involved.

When the market crashed, I had nothing to lean back on. That is why I am so passionate about teaching, and you are, too. I have a $500,000 condo, $100,000 car, and $40,000 in credit card debt that I would pay off every month and spend again. I was making a ton of money, as was everyone at that moment, but I did not create any skill level. I lost everything. My home went into foreclosure. I ran away from the repo man for some time. I drove my car across state lines and gave it to my business partner. He gave me his. That is a federal crime, so we are clear. Once you cross the state line, do not do that.

When they started knocking on my family’s door, that is when I was like, “You can have my car.” It took him a while. I will tell you that. I was out, so I called my buddy. At that time, I was 26 or 25. In my head, I was like, “I am too old to go back home.” I respect people that make that decision. For me, it was not the right decision because I knew I could be great. I knew where I was at. I can get there. My buddy said, “You can sleep on my couch for a little bit.” He was thinking a couple of weeks a month. That was a strong nine-month stint in San Francisco in the Bay Area.

Meanwhile, I am broke, busted, and disgusted. TTP, I wish you were around because all I could do was to cold call. I would get onto Zillow, Redfin, or and say, “It is a nice listing. It is not exactly for me. Do you have anything that is coming up that you could send me first?” I was knowing the game. I would cold call. That is why I am an advocate of TTP, and I promote it anywhere because it is the best cheapest way to get into the business. That is how I cut my teeth. Finally, I got a realtor that saw the vision and got us our first deal nine months into cold calling, a second deal a month later, and started this whole thing.

Were you wholesaling those deals or did you bring them to investors for flipping?

I was using transactional funding. The realtor understood that I was going to close on it.

Explain to everybody that does not know what transactional funding is.

WI 400 | Taking Action

Taking Action: Keep your business structured with systems, tools, and technology so that you can systemize it. Whether you’re a rehabber or a wholesaler, it doesn’t matter. There are always systems you need to follow.


Transaction funding is back, but basically, it is 24-hour money, 72-hour money max. It is like hour-long money. Technically, it is incredibly expensive because you usually pay two points or so for that money. If you are getting a $300,000 loan, that is $6,000 for an hour. It was expensive. When you are making $20,000 or $30,000, you say, “Okay, whatever.” That is how we use it.

The realtor understood it. Not only would he find me the home, but he would also find the buyer for the home because, at that time, it was a short sale time. People were still getting homes. They were still buying homes because they were going down. That is what we were doing. We were not renovating it but it was wholesaling to a certain extent because it was a double close.

Do you double closed it?

I double closed it. It was expensive money. On my first deal, we made $7,000 after fees costs. On the second deal, we made $7,000.

How did that feel, though?

The confidence that I am in.

This is what I talk about. It is that bridge that you cross from faith. Faith is fantastic. That is what you talked about before you knew that I could win. That is that identity part of you or that castle inside you that says, “I can win that faith,” and then you cross that bridge over to it being a fact.

I say it all the time. You believe it before you can see it. It is faith. In our space, it is very discouraging for educators like ourselves when you have someone that has what it takes but can’t overcome that hurdle of, “It has been 30 days or 60 days.” It took me nine months of cold calling. By the way, there is no Mojo. There are no call tools, not even a list. It is on the internet, “Hey, John.” Everyone in this world can do what we do. You have to have the fortitude. You have to believe it before you see it.

It is so real, easy, legal, ethical, and all that stuff. You just have to work. That is a lot of what we talk about. You are going to tell them exactly what to do, so am I. We do not hide anything. I have listened to you. The reason why I am here is that we were talking about, “I am watching you. This is incredible.” Everything we layout for you, you just have to do it. Put forth the effort. A lot of people get too discouraged.

What advice would you give to somebody to be proactive and take action on these things? What’s something that helped you. Maybe you were down. You were at rock bottom, and you need to get there. Let’s say after you get past that first deal, how do you keep building the momentum? How do you get to the point where years later, you are having a top podcast, you are coaching, and your masterminds with some of the most brilliant real estate investors in the country.

A lot of it is internal. You got to want more. There are a lot of people out there that are okay being okay. By the way, that is okay. I am okay with all that. I have always wanted more, not that I was destitute as a kid and always had what I wanted. I also understood my family did not have the ability to get more but I have always wanted more. I always knew I could achieve more, and it is internal. I fuel my internal flame with a lot of studying, self-development, and work development. I hired a personal business coach.

Wholesaling is a predominant way to invest because you don’t necessarily need credit. It’s the best way to get into investing.

I put my money where my mouth is. I do coaching and masterminds, and people pay me. That is fine. I do the same thing with much higher-level business people. Little less in real estate specific, more business entrepreneurship, growing. I own seven different companies, not all in the real estate space. How do I do that? I need to learn from someone who knows how to do that, my point to all that is that it fuels my fire. I have a ritual in the morning. I wake up and finish the stuff that I need to get on personally first.

What does your stuff mean? Is it a mental thing?

I will either watch any video, like training videos or read in the morning. I want to get fired up.

What time are you waking up?

It’s 6:00 AM. I am not the crazy 4:00 AM. I conquer the world but I handle all that stuff. By the time 8:39 and people were getting and going, I had finished my personal stuff. There are no excuses during the day for me not to achieve what I want to achieve. I am reading. If there are any videos I need to be watching, I am doing that. If there is any podcast I potentially need to be putting on, I record it right then and there in the morning, slam a cup of coffee, and get going. I have no excuse for not putting forth the work.

A lot of people make excuses for that. “This happened. That happened.” We will remove it and put it in your personal time. That is part of what I do. I am a massive advocate of continuous learning. I am an audiobook fanatic. I utilize the gym for that. I use twenty minutes and do cardio. Instead of listening to Drake or Rick Ross, I am going audiobook or business book. I am consistently trying to learn to become better. That is what fuels me. This industry is a blessed industry. There is so much money you can earn if you put some systems into it, and you are big on that.

I use this analogy. You got to put on the helmet and shoulder pads again on the field. Too many people want it without doing it. They want to hire the lead manager, acquisition manager, and disposition manager, not even the right name, specialist. The manager should not even be a part of that name, but then they do not want to do the work. That is where I am having some incongruity. It is this incongruent with what I believe, which is you got to do the work to put money in your pocket.

If you are reading this, make sure you watch this on the YouTube channel Brent Daniels – Real Estate. It is worth the watch. I always tell people, “You need to talk to 1,000 strangers and ask them if they consider an offer on their property because that is a skill that you will never lose ever.” After you have that, you know what people are going through when you are hiring them, not just the skills, communication styles, and these things here but also what is going through in their heads. Is it raining outside? Is that throwing them off? Is it winter? Is it darker? There are certain things that attack the mindset of somebody making the calls and being consistent. You need to know what is going through in their head. There is no way to fake that. You have to do it.

There are people that want to be able to get rich quickly. That is not this industry. This industry can get you very rich, even wealthy, but you got to put forth that work. One of the things that are out there is about building big businesses. I can appreciate it. I have watched Grant Cardone and Gary Vee, and I respect the living daylights out of life. I do not know if blessed is the right word because I cut big checks. I have been able to spend personal time with both of those individuals. They are awesome, dynamic, and massively successful.

When you are getting started, you got to do the work. You are seeing Gary Vee and Grant Cardone now. You are seeing Brent and Justin now, not when I was on a couch, cold calling realtors, and had no money for anything. You did not see me then. I was not exposed. Before everyone is worried about growing big and creating a bunch of income and, “I want to go do $1 million my first year,” I respect the desire and vision but you got to be able to execute. That is what’s missing.

Start with the first deal.

WI 400 | Taking Action

Taking Action: To be successful, you’ve got to want more. Fuel your internal flame with a lot of studying, self-development, and work. Put your money where your mouth is.


Go get one. You and I both fully talk about DealMachine as an incredible service. That was not there when we started. I would have stopped cold calling out a door knock because guess what one thing people do not want to do?

Door knock, they do not want to go to the doors.

Go do it. Go where other people are not.

It is still talking to people. You are either talking to them face-to-face or on the phone. There is some argument about texting and these voicemails. I get it but it works certainly. At some point, you are going to have to get them on the phone.

It works if it draws them in for you to get on the phone. I do texting. Our team does texting. The second there are two responses by the seller, you have to call them. That is my rule in the office. If I am the seller and you say, “I want to buy your home.” I say, “How much is your offer?” You say, “I do not know yet. I need to look at some construction costs. Are you interested in selling?” I say, “I am interested if it is the right number.” By that second reply by the seller, you have to call me. It is talking to people. This is why I am an advocate of what you have going on. I firmly believe it. You are a great trainer for it.

How many deals in your lifetime do you think you have done?

I am pushing 1,400.

It was a buildup to the point where many years later, you are still doing it. You are coaching it. You are running what mastermind? Tell everybody about it.

I am running The Boardroom Mastermind. Kent Clothier and myself are in The Boardroom Mastermind. It has roughly 100 investors across the nation. The Boardroom would be more for newbies, anyone who is doing 0 to 10 deals a year. We have Boardroom Elite, which would be much more you are racking in $250,000 to all the way up to the north of $1 million a year. We have a Billionaire Boardroom which would be the million-dollar earner type of thing, much more experiential. You get access to all the boardrooms, but we also travel together and create those experiential relationships and moments.

At the end of the day, that is what we all do it for. It is great to make $1 million a year. If you do not go experience, go do things and travel. Who cares about the money? Money is pointless if you can’t do those things. That is what we do there. It has been a journey. I got off of creating an iBuyer company, which has been intense.

Explain to everybody what an iBuyer is.

Wholesaling is not a get-rich-quick industry. You can get very rich, but you have to put forth that work.

An iBuyer is Opendoor, OfferPad, and Zillow. They tend to buy homes at a higher price, have a smaller rehab cost, and then resell it back on the market. They are rehabbers to an extent. They have very cheap money. It is the best way of explaining it. They do not have hard money. It is venture capitalized. They can run much thinner margins.

Everyone is talking about, “Are they profitable?” It does not matter if they are profitable or not. Ultimately, they are going to create a massive business. That is what I spent my life doing, which was great. We were running north of 30 deals a month in San Diego, Inland Empire, Los Angeles, Phoenix, and Dallas.

That is how my numbers have rapidly grown and how many deals have been a part of it. That has been a learning curve there. That is out of our space. We got small businesses. There is that argument, “Stay small. Keep it all.” What they are growing can be incredible. I was the eighth person brought into the company. There were 68 by the time I left.

You saw it. I have my whole family working for me. I have got my mom doing the books. I got my dad running the day-to-day. It is fantastic. Keep it small. Keep it all. It is one of those wealth principles. If you want to keep your wealth in your family, hire your family.

You are an advocate of this. I have gotten to the point in my life that there is always someone that knows it better, growing it bigger, slower, and perfecting it. If you are out there reading this, stick with Brent. He is guiding you the right way. I cut a huge check for a coach. I do this every year, whether it is a mastermind or a coach. I firmly believe there is stuff I do not yet know. What multiple can I get back on? People are always like, “I want to be able to do wholesaling.” You are teaching it. For you readers, stick here because it is about you implementing what he is suggesting to do, and it is massively important.

How do people get more info? He’s got the podcast, The Science of Flipping.

Social media nowadays is probably the best way. Instagram is @TheJustinColby. My personal Facebook has 5,000 friends. You got to go to my public figure page, which is The Justin Colby and YouTube has a weird name, Justin Colby VP. Instagram is probably the best. It will point you in all different directions, and I will tell you where to go. I am happy to give away as much as I possibly can to help you guys out.

Thank you for being here.

Thank you for having me.

If you are interested in joining the most proactive group in real estate investing, it is the TTP program. Go to Scroll down. Check out what it is about and check out all the testimonials. You are going to have to keep scrolling for a while. If it feels good in your gut, sign up for a call. I look forward to working with you personally. That is it. Thank you guys again for reading. I encourage you always to talk to people. Love you. See you.


Important Links


About Brent Daniels

WI 400 | Taking ActionBrent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…

Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!

Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…

A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

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