Justin Colby

So I just also want people to understand, like, I think everyone should be, everyone should be in real estate. It should absolutely be some level of diversity within your portfolio. Um, should everyone be actively transacting in it, like wholesaling or fixing flipping? Um, I love it. So I'd say it is something fun to do. The challenge I see is TV is really romanticized fix and flipping.

So I just also want people to understand, like, I think everyone should be, everyone should be in real estate. It should absolutely be some level of diversity within your portfolio. Um, should everyone be actively transacting in it, like wholesaling or fixing flipping? Um, I love it. So I'd say it is something fun to do. The challenge I see is TV is really romanticized fix and flipping.

So many shows. And when you speak to the actual people that you and I know, The numbers aren't totally add up, right? And so you go, there's a lot more loss in the world than there is profits. So I'd really rather people like the Burr model is probably my favorite to suggest for a newer person. What's that? Buy it, you rehab it, you rent it or you buy it, renovate it, rent it and refinance.

So many shows. And when you speak to the actual people that you and I know, The numbers aren't totally add up, right? And so you go, there's a lot more loss in the world than there is profits. So I'd really rather people like the Burr model is probably my favorite to suggest for a newer person. What's that? Buy it, you rehab it, you rent it or you buy it, renovate it, rent it and refinance.

I love that model. Because then you are effectively kind of doing that whole ecosystem of the sexy part and you're buying it and rehabbing it. But then you're asking for a bank to take your money back out. Usually the bank will give you 75% of that number. So you want to be all in for about 75%, maybe 80% if you have the right bank. You can own an asset for no money in.

I love that model. Because then you are effectively kind of doing that whole ecosystem of the sexy part and you're buying it and rehabbing it. But then you're asking for a bank to take your money back out. Usually the bank will give you 75% of that number. So you want to be all in for about 75%, maybe 80% if you have the right bank. You can own an asset for no money in.

So talk about a brilliant way to invest. I'm going to make an initial investment within six to nine months. I'll have 100% of my investment back. I might only be making $200 a month, which will not change anyone's life, but it's an infinite return because there's no money in the deal anymore. That is a model I really can lean into when talking to like newer individuals.

So talk about a brilliant way to invest. I'm going to make an initial investment within six to nine months. I'll have 100% of my investment back. I might only be making $200 a month, which will not change anyone's life, but it's an infinite return because there's no money in the deal anymore. That is a model I really can lean into when talking to like newer individuals.

That's right. And then you'll have a family that wants a nice home in a nice area.

That's right. And then you'll have a family that wants a nice home in a nice area.

That's exactly right.

That's exactly right.

So I don't love, so here, you know, it's funny after, I don't know how much money I've raised over time or real estate, but a lot. I don't love when people don't quite have the experience to bring people in. For sure. Because now you're creating a friendship that Dan and I can be the closest friends of all time. And then the one deal, the one deal.

So I don't love, so here, you know, it's funny after, I don't know how much money I've raised over time or real estate, but a lot. I don't love when people don't quite have the experience to bring people in. For sure. Because now you're creating a friendship that Dan and I can be the closest friends of all time. And then the one deal, the one deal.

Right, that takes 14 months instead of nine months. And it becomes a loser. And you go, sorry, Dan. And then... Now the taco nights aren't as fun for me and Dan. And it's like this. So I'm really cautious there. I'm not saying you can't. But if you do it, I would say be extremely prudent. Make sure they're well aware of like, you're an investor. There is risk of loss.

Right, that takes 14 months instead of nine months. And it becomes a loser. And you go, sorry, Dan. And then... Now the taco nights aren't as fun for me and Dan. And it's like this. So I'm really cautious there. I'm not saying you can't. But if you do it, I would say be extremely prudent. Make sure they're well aware of like, you're an investor. There is risk of loss.

If we lose together, you will eat 50% of that loss. And I will eat 50% of the loss in paperwork, in writing, notarized on documents. Because the one time I didn't years ago, I found myself in a three-year lawsuit. And I would say that because I've raised a lot of money, but I keep it very straightforward of like, it is transactional. You're looking for a return. If there is a loss, we share.

If we lose together, you will eat 50% of that loss. And I will eat 50% of the loss in paperwork, in writing, notarized on documents. Because the one time I didn't years ago, I found myself in a three-year lawsuit. And I would say that because I've raised a lot of money, but I keep it very straightforward of like, it is transactional. You're looking for a return. If there is a loss, we share.

That's it. So I think it's up to them. I have a private client right now that just did this with a friend. He wants to be a little more ambitious. I'm pulling him back and saying, hey, your guy has the checkbook. I get it. But like do one or two with them. Let him create the certainty that this is going to work for you guys. And then let him lean into like, hey, let's open this up.

That's it. So I think it's up to them. I have a private client right now that just did this with a friend. He wants to be a little more ambitious. I'm pulling him back and saying, hey, your guy has the checkbook. I get it. But like do one or two with them. Let him create the certainty that this is going to work for you guys. And then let him lean into like, hey, let's open this up.