The Science of Flipping
The Most Valuable Thing You Can Do for Your Real Estate Business in 2025
Fri, 29 Nov 2024
In this episode, I dive into why the most valuable asset for real estate investors in 2025 is data. I explain how enriching data—like credit scores, income, mortgage balances, and property details—helps me prioritize the most motivated leads and streamline my marketing efforts. By leveraging AI and technology, I can automate communication and improve efficiency, allowing me to focus on the right people rather than just chasing a high volume of leads. Whether you're a seasoned investor or just starting out, understanding and applying data enrichment is crucial for success in the real estate industry moving forward. --- The #1 training and coaching system to launch, grow, and scale your investing business! 𝐋𝐞𝐚𝐫𝐧 𝐌𝐨𝐫𝐞: http://www.thescienceofflipping.com Turn cold real estate leads into engaged motivated sellers on auto-pilot using the power of A.I! 𝐋𝐞𝐚𝐫𝐧 𝐌𝐨𝐫𝐞: https://www.rocketly.ai/ Have a question? Ask me anything at https://www.askjustin.ai/ 𝐀𝐛𝐨𝐮𝐭 𝐉𝐮𝐬𝐭𝐢𝐧: After investing in real estate for over 17 years and almost 3000 deals done, Justin has created a business that generates 7 figures in active income through wholesaling and fix and flipping as well as accumulating millions of dollars of rental properties including 5 apartment buildings, 50+ single family homes, and 1 storage facility Justins longevity in real estate is due to his ability to look around the corners, adapt to changing markets, perfecting Raising private capital, and focusing on lead generation which allows him to not just wholesale and fix & flip, but also accumulate wealth through long term holds. His success in real estate led him to start The Entrepreneur DNA podcast and The Science Of Flipping podcast and education company, where he has coached and mentored thousands of aspiring and active investors over the last decade. He is a nationally recognized speaker and is on a mission to educate as many people as possible on becoming a successful dynamic real estate investor. 𝑾𝒉𝒂𝒕 𝒕𝒉𝒆 𝑷𝒓𝒐𝒔 𝑯𝒂𝒗𝒆 𝑻𝒐 𝑺𝒂𝒚 𝑨𝒃𝒐𝒖𝒕 𝑱𝒖𝒔𝒕𝒊𝒏: “Justin is one of the best trainers in this space. He really gives everything to his tribe.” – Brent Daniels (TTP) “Justin’s ability to connect with people and help them understand what he is teaching, is unparallelled” – Kent Clothier (REWW) “We have been in the trenches flipping homes in Phoenix for over a decade, he is one of the best to do it.” – Sean Terry (Flip2Freedom) Subscribe To Justin Colby: http://youtube.com/justincolby View All My Videos: https://www.youtube.com/c/JustinColby
Chapter 1: What is the most valuable asset for real estate in 2025?
All right, so now I know you're thinking, what the hell are you talking about, Justin? What is the most valuable asset going forward for 2025? It's plain and simple. It is data. Data by far, hands down, in today's world with technology and AI, is the most valuable asset and most valuable concept I want you guys to wrap your heads around.
This will absolutely change how you approach real estate and business going into 2025. Now, I know here I have people on both sides of the aisle, meaning some are brand newbies, never had a deal. And then some are some seasoned veterans. You've done deals, you have a business, you're making some money. Both it is true for. Both of you need to be focusing on your data. Now let's talk about that.
Now data in a general sense would simply say like downloading a list, skip tracing the list and calling that. That would be data. But I want to go way deeper. for you. Now, I've been enriching data for the better part of 12 months. Since technology and AI has really caught up, I've been really leveraging this technology and AI. And over 12 months, we've been enriching all data that comes into us.
Chapter 2: How can data enrichment improve lead generation?
Now, as a real estate investor, how would someone come into us? Well, I use TV ads for one, I do PPC for another, and I do direct mail. So when those individuals come into us, then I immediately enrich the data to understand who I'm talking to. Now, let me take a step back because I need you to understand what I mean by enriching my data.
I get way deeper personal information than just a cell phone. But I do get a cell phone and I get a home phone. And by the way, getting the right data is most important. Just using some skip tracer to go get eight phone numbers that you don't really know which one is which without any type of guarantee of what is an active cell phone versus what isn't. That's not good data.
And by the way, I'll tell you guys now, stay tuned for part two of this. This episode is going to talk to you about the power of getting good data and enriched data in part two. I'll be actually telling you exactly the softwares, tools, companies, and technologies I use to do this in my real estate business. So make sure you also listen and watch number two. Now, that being said...
So if I have people coming into my world through an opt-in on my TV commercial, through an opt-in on my PPC, through calling me or opting into my website through direct mail, I immediately get things like their credit score. I get things like their mortgage balances. I get things like their income. I get things, you know, do they have multiple properties?
Chapter 3: What types of data should real estate investors focus on?
I get such enriched data that I immediately understand what is of higher value for my business and what is not. If I get a lead that comes into my website through direct mail, let's say, and I get the income score for that person, we'll have a range usually, let's say it's $150,000 to $200,000, probably not in incredibly high motivation financially to sell their home.
So do I put this at the top of my list of leads that are extremely motivated, extremely hot or not? Now, another opt-in might come in from my website from direct mail or maybe my TV commercials. They might have a income score that is less than 50 grand. Do I feel like that person might be in a financial position that they might be needing to sell their home? The answer is yes.
And so what this has really done for our team is we remove a lot of the guesswork. We remove a lot of the actual brute effort that my team personally as humans have to go do. And we can rely a lot more on technology and AI.
Chapter 4: How does technology streamline communication with leads?
So for example, the individual who comes in with a high income, do I need someone to call them right away or do I need my AI bot to maybe start communicating with them about their level of interest in selling? Well, the answer is I would rather my AI bot start communicating with them and start sending out some emails through automation to engage with that person out of the gate.
At the very same day, I have someone who has an income score less than $50,000 a year. Do I want the bot to work that person or do I want a person to give them a call? Well, the answer is I want a person to give them a call. Now, it seems easy. It seems like that's the obvious. But what you need to start to do is create the efficiencies in this. Now, I want to go a couple layers into this.
So you got to stick with me. If this is foreign to you, stick with me. You'll understand it. Now, I also can pull a list of data from REI Lead Machine. REIleadmachine.com is where I pull all of my lists from high AI data to absentee owner data to divorce to probate to you name it, right? I pull all of it from REI Lead Machine. Now, I can take that same list.
At most people, you just go skip trace it and you either cold call it yourself or you give it to a VA or you give it to a cold calling company. Well, the reality is that's the old school way of doing it. You're not focusing on the data because there is technology. There is software. You can take that same list and enrich that list.
You enrich the list so that you can actually have the data that I'm talking about, like credit score, like income, and so many other data sets, right? Credit availability, whether current on paying bills. I mean, honestly, guys, to some extent, I'll tell you right now, what is out there that is legal to get, it is scary how much information we can get on people.
But if you're going to pull a list anyways, why wouldn't you actually know who you're calling? Or even better, be efficient with how you communicate with them, right? I get a lot of deals through realtors. I get a lot of deals through wholesalers. Now, they are bringing me the seller. I don't have any real communication with the seller themselves.
But when I get deals that are directly to the seller, I would rather communicate with people who have high levels of motivation to sell rather than don't. Now, obviously, if someone is behind on their mortgage payments, or maybe they owe back taxes, that's great.
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Chapter 5: What is the importance of understanding lead motivation?
But why wouldn't I also enrich a lot of that data to really have an educated conversation with them about how much value I can provide them and where? And a lot of that data will come back when you feed that data in to the technology. Now, I want to take another step, and I want to change the frame for you guys. This is in the real estate space. Let's just talk about business in general.
I run a very high volume coaching business. Well, I want to bring the best of the best people into my world so I can actually move their needle, so I can get them their first deal or I can help them grow and scale their business. So doesn't it make sense to be able to enrich the data of a potential customer? And the answer is obviously yes. So this doesn't just pertain to real estate.
It pertains to business as a whole. This technology is out there. The AI is out there. The communication and systemization of that communication is out there. Now, you're listening to someone who's been in this business for about 18 years. And I've built a really big business and I've scaled down the business and grew a medium business and scaled down the business.
And I'm of the belief bigger is not better. efficiency is senior to bigger, right? Meaning I don't need more people. I need efficiencies in this type of stuff, operational, right, efficiencies. And so some of this operational efficiency comes in, who are we working? Where are we spending our time? Are we looking at the data set
Chapter 6: How can data analysis enhance decision-making in real estate?
of what deals are actually getting done and then cross like pinging them is what I will say. I ping through what are the different layers that are all similar or the same. So we did these five deals. What are the commonalities in all five deals from the data sets that we can start to target more? And that helps us make further decisions. So right now, the other component of this is
When I want to pull the trigger on do I want to spend more marketing and in what channel do I want to spend any marketing, right? Or do I want to do a little more grassroots given what the data set is giving to us? We now are in a place of societal technological AI like heavyweight stuff, right?
And unfortunately, what's scary is people are getting weeded out of this scenario because I don't need as many people in my own business. I just don't. Because a lot of this can be systemized and strategized in a way that I can use the technology to get 90 yards down the field. And then all I need is a closer, someone who knows how to analyze the deal and actually make the offer.
And get that actual deal. I don't need a setter. I don't need a junior closer or any of these other scalable sides. I literally just need the right data. And then I can transform that into a deal. Because more data doesn't necessarily mean you're going to get more deals. I hear this all the time, especially from more seasoned veterans, right? I need more leads. I need more leads.
I got to do more PPC and PPL and commercials and direct mail. I need more. That's not always true. You need refinement. You need to be efficient on the data you're getting. So if you're out there and you're an experienced investor, if you've been around, if you've done deals, if you got something moving, the thing you need to prioritize going into 2025 is data.
If you focus your time, energy, intention on creating efficiencies with the data you are given from your marketing and the data that you are pulling, right? You will actually not need as much lead volume to do more deals, right? And if that is going to be your focus going in 2025, you're going to actually win. There's four or five different softwares and tools that I use to do all this stuff.
And none of it is exorbitantly expensive. But if you are... a seasoned veteran, and you do have a business running, then you need to be using these too. And this is what we're going to go over here on part two. If you're a newbie, these tools aren't very expensive. And really, for most of you newbies, you're thinking, Justin, getting started is the hardest part.
I'm hard to get, you know, I haven't made any offers this month or this year. Well, if you start to focus on the right people, who are the right people? It starts to make everything else easier because you can actually target the people that will actually sell you the deal versus the people who just want top dollar.
The biggest problem in our space, period, as real estate investors, as a moment in time, is not interest rates. It is the sellers who do not want to waver on their top dollar price. That is our hardest challenge. And yes, you can take every sales program ever invented and that will get you somewhere.
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