Justin Colby

75 60 50 equity then i can go reposition debt on some homes that are free and clear put more debt back on them because they're performing assets take that money potentially put in my pocket tax free but then just go double down and now all of a sudden i'll have 36 rentals instead of 18 and it happened overnight because for the last 18 years i've been stacking them up right and

75 60 50 equity then i can go reposition debt on some homes that are free and clear put more debt back on them because they're performing assets take that money potentially put in my pocket tax free but then just go double down and now all of a sudden i'll have 36 rentals instead of 18 and it happened overnight because for the last 18 years i've been stacking them up right and

is it's really a slower game and it's definitely not sexy. And I'd tell you as someone that has a lot of rentals, it is not by any chance passive, even when you have property management groups. At all.

is it's really a slower game and it's definitely not sexy. And I'd tell you as someone that has a lot of rentals, it is not by any chance passive, even when you have property management groups. At all.

Yep. And that's what I've seen after almost, you know, 12 years of coaching individuals, the construction component. Yep. That's where a lot of people drop the ball. And I mean, listen, even today, 18 years in, I get contractors that like,

Yep. And that's what I've seen after almost, you know, 12 years of coaching individuals, the construction component. Yep. That's where a lot of people drop the ball. And I mean, listen, even today, 18 years in, I get contractors that like,

do some nasty shit to me and totally lie and you know whatever so some of it out of your control to some extent but understanding construction really can make or break a deal i did a training last night to i don't know a couple hundred investors and basically i said there's three ways to actually get more deals And one of the three is understanding how to underwrite the construction component.

do some nasty shit to me and totally lie and you know whatever so some of it out of your control to some extent but understanding construction really can make or break a deal i did a training last night to i don't know a couple hundred investors and basically i said there's three ways to actually get more deals And one of the three is understanding how to underwrite the construction component.

Absolutely. Because for someone who's going to be doing a rental, that construction component might be way less than someone who's going to be doing a fix and flip or even a burr, right? Yep. So if they're going to be doing a burr, you're going to probably want to put in a good amount of money.

Absolutely. Because for someone who's going to be doing a rental, that construction component might be way less than someone who's going to be doing a fix and flip or even a burr, right? Yep. So if they're going to be doing a burr, you're going to probably want to put in a good amount of money.

It's going to be the same thing as kind of a fix and flip because you got to force the appreciation so the bank can take you out. Absolutely. But if they're just buying a rental, like a normal rental, not necessarily burring it, then your construction budget might be like 10 grand that they're just going to put in to paint some stuff, rip out some carpet, replace the carpet.

It's going to be the same thing as kind of a fix and flip because you got to force the appreciation so the bank can take you out. Absolutely. But if they're just buying a rental, like a normal rental, not necessarily burring it, then your construction budget might be like 10 grand that they're just going to put in to paint some stuff, rip out some carpet, replace the carpet.

Like you won't have a big construction budget. It's not a burr. But if you underwrite the construction, right, you'll convert more deals because even as a wholesaler, there are so many landlord type buyers out there. That's why I love Columbus. That's why I love price points.

Like you won't have a big construction budget. It's not a burr. But if you underwrite the construction, right, you'll convert more deals because even as a wholesaler, there are so many landlord type buyers out there. That's why I love Columbus. That's why I love price points.

You know, Cleveland right now, we've done a lot of deals in Cleveland, not my favorite city, but the price points are just good flips and good rentals. Yes, they are. Right. And so I would tell people understanding construction is really valuable. I will tell you now my what I call Bubba math.

You know, Cleveland right now, we've done a lot of deals in Cleveland, not my favorite city, but the price points are just good flips and good rentals. Yes, they are. Right. And so I would tell people understanding construction is really valuable. I will tell you now my what I call Bubba math.

If you are going to be doing what I call like a repair remodel, paint and carpet, simple, nothing like you're not moving wall like repair. Thirty dollars per foot. You can bank on that's pretty close to where you're going to end up. If you're doing a rehab, new kitchen, new bathrooms, right? New paint, $50 square foot.

If you are going to be doing what I call like a repair remodel, paint and carpet, simple, nothing like you're not moving wall like repair. Thirty dollars per foot. You can bank on that's pretty close to where you're going to end up. If you're doing a rehab, new kitchen, new bathrooms, right? New paint, $50 square foot.

If you're doing what I call a redo, this is where you probably got to redo the electrical, probably got to replace the windows, probably got to move some walls, probably got to do like just you're fucking redoing the home, right? That's $70 square foot in most markets. That is not going to be true in San Francisco or Miami. It's going to be more expensive.

If you're doing what I call a redo, this is where you probably got to redo the electrical, probably got to replace the windows, probably got to move some walls, probably got to do like just you're fucking redoing the home, right? That's $70 square foot in most markets. That is not going to be true in San Francisco or Miami. It's going to be more expensive.