In episode 14 of Wake Up to Wealth, Brandon Brittingham sits down with Justin Colby as they share their journey from a challenging childhood to finding success in real estate. Justin talks about starting in door-to-door sales, transitioning to real estate brokerage, and the importance of mastering skills like marketing and salesmanship. Despite facing setbacks during market crashes, Justin’s passion for real estate has kept him motivated and driven toward success.
Tune in to hear about overcoming obstacles and finding passion in the real estate industry.
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Brandon Brittingham
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Justin Colby
Instagram: https://www.instagram.com/thejustincolby/
Facebook: https://www.facebook.com/thejustincolby/
WEBSITE
Brandon Brittingham: https://www.brandonsbrain.org/home
The Science of Flipping: https://thescienceofflipping.com/
This is Wake Up to Wealth, a podcast dedicated to helping you change the way you think about wealth. And now, here's your host, Brandon Brittingham.
What's up, everybody? We are back. Another episode of Wake Up to Wealth. And what's really cool is today we're in freaking Miami. Yeah. And I got one of my homies. And he's not just coming on here because he's my homie. He's coming on here because I respect him as an entrepreneur. My brother, Justin Colby. What's up, bro?
My man. I'm excited to be doing this podcast with you, bro.
Yeah, I appreciate you taking the time and getting in this in this beautiful setup today. So I want to jump right into it, bro. You've done a lot of stuff. And for people that don't know you or haven't heard of you, give me just a little, you know, give me the two minute, like how you got here and where you came from and how you became an entrepreneur.
Yeah, I think I have a similar story. Everyone has a story, right? I knew I wanted more as a kid. I wasn't in poverty by any stretch, but money was not really a thing either, right? I had alcoholic parents and moved out when I was 14, and everyone has their story, so there's not woe is just and right. But from that childhood, I always had to rely on myself and had to, you know, provide for myself essentially. And so going into adulthood, I got directly into real estate out of UCLA. Well, I didn't. I got into door-to-door sales. And that actually took me- Great learning experience. The best for about a year and a half. Owned my own company, made all the money, but door to door in Boston, Massachusetts during the winter is not the jam. Brutal. Not the jam. So caught pneumonia, had to move back home, got into real estate and started real estate investing, or I'm sorry, real estate brokerage, traditional retail. Still around today, the top performing boutique brokerage in Northern California. And I helped start that. And when the market crashed, I crashed. And it was because I didn't have a skill. I never mastered a skill. I didn't master marketing. I didn't master salesmanship. I didn't master how to cultivate clientele. I didn't master any skills. So when the market crashed as a realtor, I crashed. I had nothing. I had no book of business, nothing. But I loved real estate, bro. And I just asked you off this episode, like, are you ever going to give up real estate? And my answer is no. Hard no. I will never give it up. It may change on how I approach real estate. So I got into real estate investing, broke, busted, and disgusted. My home went to foreclosure. The repo man took my car. Funny story about that. I actually drove my car across state lines, gave it to a buddy. That buddy gave me his car. I came back. That's a federal offense, by the way. I didn't know that. Yeah. Uh, so the repo man took my car and, um, I borrowed $25,000 to hire a coach. Wow. And, uh, from that moment, my real estate investing journey took off and done over 2,600 deals today. But, you know, started with two deals and then six deals and nine, et cetera. Um, but it's been a journey. And what I can say is looking back on it, I don't think I would trade any of it. All the dog shit sandwiches I've eaten, all the losses, the flips that went bad, the development that went bad, all these, you know, business partner breakups, all of that has been able to shape me and who I am today. And now you and I are in a place doing stuff together with really cool opportunities. And so it always leads to something good. If you keep your head down, keep pushing forward.
So one of the things you just said, which I think is crazy. So you're broke. You borrow money and hire from a friend from a friend. Yeah. So imagine me calling you.
Hey, dude, I got this vision. It's going to be fucking sick. Can I get twenty five racks?
Yeah. So. Like, I believe that entrepreneurs, a lot of times people think we're crazy as shit, but it's the ability at some point to say fuck it and gamble and go all in. Was that the moment? What goes through your head of like, I'm broke, let me borrow money and hire a coach?
Well, when you are at the bottom, you kind of say, what else do I have to lose? All my friends are snickering like, Colby got fucked up, right? Like he lost it all, right? So everyone's aware I'm in a bad shape. So at this point it's kind of like, I have nothing to lose. I thankfully had a friend that actually believed in me. It was a buddy, bro. This isn't like I put it on a credit card. It was a friend. And he said, dude, I think you can go crush this. So cool. And it panned out for both of us. Right. Got him his money back and gave him a great return on that. And it's worked out for me. But when you want something as bad as I wanted something, when I just knew I was meant for more in the passion I had of real estate, I didn't know how. I just knew I was going to. Right. And so for me to make an investment into someone that could show me how, that's all I needed. And that's what the journey really became, is I was able to learn the how, then it just came back to the people, right? It's the who, not the how. Once I learned the how, then it was the who. And it's been the who the rest of my career.
So in what you've been through, 2,600 deals, losses, gains, there's so many lessons, but what do you think is one of the most powerful lessons that you could give somebody to prevent them to go through some of the shit you might've went through?
don't take two swing of a bat. It's okay to hit singles for a long time, right? And as someone, you and I both love sports, right? Like you can strike out seven out of 10 times and be a Hall of Fame baseball player.
100%. Right?
Yeah. And I think everyone wants to go for the home run hitter and not want to be the big gun and have the big bat. And I think the singles are way more important and you stack those up consistently, although they're not sexy on Instagram and they're not sexy on social media, There are little things that no one really notices, but you stack them up repetitively. You can have a big mountain of wins when you look up, right? And it's the people that try to go for the home runs. And I myself did, right? I did a 79 unit townhome development in Mesa, Arizona. I've never developed a home, let alone 79 at one time. I didn't know what I was doing. I was way ahead of my skis. I was going for the Grand Slam. I was going for it, right? Now from time to time, those things do pay off. There's no doubt. And if you don't have, we just talked about if you don't have a big goal, big dream, then you're going to be lost, right? Because you're going to limit yourself on how big you can go. Yeah. So there's this fine line of like going big, but also realizing the consistency in what you're doing. So I would tell anyone like stay consistent at the little wins and let those wins compile and they will grow into bigger wins.
I love that. That's how you develop mastery. Yep. Yeah. So not just the losses. What do you, what do you think you, you want, you learned in the wins? You know, what do you think you learned in the wins?
Not nearly as much as the losses. Right. And I know you and I can agree to that. Like when you win, you kind of like, fuck yeah, I'll do it again. That's it, right? And you don't really learn a lot. Now, it depends. If there's a win in a vertical or something I've never done and I won, then I can say, God, that worked. So let's remember it. But in the traditional sense, like, You don't learn a lot when you win. And so while it's cool and you should celebrate it, it's kind of get back to work so you can continue learning. Cause through that learning, the reason why you and I are in masterminds, the reason why we cut the check for other coaches and other things is because we want to grow as business owners, entrepreneurs, leaders, most important leaders. And so that's the way that like I can expedite my learning. So I don't have to take the L's as often.
Yeah. So you also going back to when you said, Hey, I paid the 25 grand for the coach. You know, obviously I believe in hiring a coach to scale. What did that 25 grand do for you? And then going beyond that, because I just, I think so many times what people make a mistake in is they look at the cost of a coach or the cost of a mastermind. And they don't look at the value. So they go into it already wrong. It's like, well, if I spent $25,000, my ROI needs to be x in this amount of time. They don't actually look at the value. Talk a little bit about how you've invested into yourself, where that has been able to take you. Because I don't think you ever looked at it as a cost, especially if you threw $25,000 when you're in the shitter. You looked at the long-term vision of what is the actual value.
So it's never a cost, it's an investment. And listen, I've made investments in mentors, coaches, or even masterminds that I would argue I didn't get a lot out of, but I don't always need a lot. I need one thing.
That's a gem. One. That's a gem. I want to, I got to stop you there because it is so important. I've had this conversation so many times with people where a one or 2% adjustment in your business could be millions of dollars. A hundred percent. And you go into a room and you want to get nine, you know, and you want to get 10. Well, you're not going to go execute on 10. Do you know what I mean? That's such a powerful statement for everybody listening. You hire a coach for the one thing that, the one thing you can take to make you better could change your life forever. You get in the mastermind for the one thing that can make you better.
Yep. And that's it. And so I would say for those that are always skeptical and, oh, it's a cost. And you know, I get this all the time and my team does, I have a organization for my coaching. They'll say, well, I'm going to go do a deal first. or I'll do two deals and then I'll pay for the coaching. And then you say, well, so how are you going to go get those deals? Well, I don't know. I mean, I'm just going to, you know, I'm going to hustle. Well, it's hustle strategy, right? And so you just kind of reverse engineer that they're very short sighted. And a lot of that has to do with money and how people were raised and they don't understand the value of certain things, right? They, they would rather spend, you know, $200 on dinner tonight than to save a couple of those dinners and pay for a coach that could teach them how to go make $2,000 or 200,000. And it's because they don't understand the value of money. Um, It's a big, big, big thing that I focus on with my podcast in the sense of, I want people to understand you have to have mentors in your life, right? It's not even really an option. If you talk to anybody, including someone like a Tony Robbins, an Ed Milad, or any of the biggest names in the space of entrepreneurship, they have all cut checks. They have all surrounded themselves with smarter people, people that know more. And even if they're not cutting a check per se, they are spending their time, they are offering value, and they're getting next to those people. It is very short-sighted for anyone who wants to build something remotely cool for them not to make an investment in someone who's done that before.
You said something in that conversation, which I talk about a lot on this show, is that we've been taught about money wrong, right? So traditional, go to college, whatever, save your money, invest in a 401k. I'm not shitting on 401ks, but you and I found something, which is when you get in the room with wealthy people, you know what they do with their money? They invest it. and they actually believe outside of a threshold that they think is safe, they actually believe that investing their money is the path to wealth. And that's been repeated and repeated and repeated. You and I love real estate, but talk a little bit about helping people change their mindset. If you want to be wealthy, you got to invest your money. There's no doubt.
And I don't, you know, you and I love real estate. So the obvious answer for us is getting your real estate. And I think that is the answer. And anyone who is successful has some level of real estate. Maybe they're even a lender at that point, right? But I mean, listen, I am one of those people that talk about diversification and I don't think it's all over the board. I'm not heavy in the stocks. I'm not heavy in crypto. I'm very heavy into real estate, but I also have apartments and I have single family real estate. But I do have a certain, put aside for crypto. I do have a certain put aside for stocks, but then just the idea of investing, I would rather cut the check to another new mentor as a style of investing so that I can grow and make more money to invest more money and do more things. Right. Yep. And you know, again, you are truly investing when you hire a mentor or a coach or join a membership of a mastermind. It is a style of investing that can give you infinite returns relative to, I'm going to put, you know, a hundred grand down on this house and I'm going to have a seven cap, which isn't really even how you should do it in that world. You know, people have to think like investors if they want to move forward. I'm actually excited to read a new book that Tony Robbins is coming out. I don't even know the name of it right now, but like the ultimate book of investing or whatever it's called. Because I'm also looking to always understand what else is out there, what else is going on behind the scenes. I'm talking about starting another fund, right? I know you have funds. this is how we play, but we didn't learn this. It's not like we were born like, oh, we're gonna start funds when we grow up. That's not what we were thinking.
I didn't even know what the hell that meant. I didn't know it was possible. Right. Yeah.
And to own a fund. I thought, you know what I mean? The Wolf of Wall Street blew my mind with stuff like that, right?
Yeah.
And all of a sudden I'm like moving forward. I'm like, oh, I have one fund. We're about to start another fund. Right. But it's always about, I think everyone needs to understand about what are they doing it for? You and I've had this, What is the purpose? Not what's the why, that question has been overused in my opinion. What is the purpose of doing any of it? And I tell a lot of people this, it's actually you're better off just keeping your job because the amount of shit you have to eat to go win, I don't know if you're necessarily built for it. Most people aren't. the fraction of 1% are, right? But man, is it so fucking great and what a great life because it is a Wednesday, I think it is today. And it's three o'clock in the afternoon, almost four. And we've spent the better part of two hours together and we're gonna go grab some dinner and we're gonna, now, if you have a W2, who's doing that? You're staying at the Four Seasons, you're in my town of Miami, we're gonna have an expensive dinner. And it's not always about the money. But it's the freedom. But it's the freedom, and money makes it a lot more fun to go out to dinner. Yeah.
Right? Yeah. It's eating at the Four Seasons tonight versus Burger King's two separate things. And my first job was at Burger King, so I can speak from that as an expert. Respect. Yeah. Respect, yeah. Uh, you know, a couple of other things that, that I think we're kind of, you know, kind of aligned on is, you know, being like going through the seasons of an entrepreneur. Right. And so we're at a mastery level and a lot of different things, but one of the things that I'm sure you hear it, and I hear it a lot, people are like, I want to, I want to invest in real estate, but the barrier of entry is so hard. I don't even know where to start. So someone's out there. And let's just assume for a minute that they can figure out how to get some money to buy a property, right? What would you say to that person of going out to buy in their first property or investing in real estate the first time? Like, where would you suggest they start?
So, in general, I think people need to understand you don't need your own money to invest in real estate. I have tens of millions of dollars of real estate assets. I don't have a dollar of my own in any of it. Not one dollar. And I think people don't understand that is in large part. And so I do believe, I don't care if you have a W2 or if you're going to do this business full time, the biggest mistake I ever made is not the seven figure loss on the development play. It's not the millions of dollars I've lost on flips. The biggest mistake was not to start buying real estate sooner. It's because I didn't understand what I understand now. It's not about the cashflow. People buy real estate for cashflow, and I understand you wanna have a retirement plan that can pay you when you're done working, and I get that. But for me, it's understanding finances and bankability. And I don't know if bankability is a real word, but I use it a lot.
Being bankable. Being bankable.
Yeah. And it's the idea of, so last year my accountant called me December 1st and he said, hey, Baller, you're gonna have a real big problem for 2023 or 2022. So you need to go do something about it. And within 30 days I bought a 584 door apartment in Houston. Right. Um, none of my own money raised it. Right. And that's a big project, but you could do the very same thing to buy. one home. Sure. And why that's important is not the home's 200 or $300 of cash flow. It is the depreciation. It is the equity, right? So you're working in a way to, to not have to pay the IRS because I don't believe in paying the IRS. If you don't have to, you just got to know more facts. And then also you're working in a way to actually grow your economic value, your economic value, becomes if you did this 15 times in 15 years, you have 15 properties. If you put 15 year mortgages on them, you'll own multiple properties free and clear. You'll have a hell of an amount of equity in 15 years. You can likely go to the bank and say, give me a couple million dollars against this equity. And I'm going to go buy 15 more homes and then I'm retiring. And you will retire with a portfolio of 30 homes that is paying you directly. Some of those will be free and clear each and every year moving forward. Another home will be free and clear. You will pay off the remaining 15 in the 15 years. And that's a lot. So maybe slow that part down for some people and rewind it. No, but the bankability is everything.
Yeah. No. The thing is that I tell people is you don't have to own thousands of doors and your example. And in some places in our country, you could end up with 10 or 15 homes and it's going to drastically change your net worth and your cash flow. And if you hold on to them and you're smart about it, eventually you're going to wake up one day and they're going to be paid off. So, I believe if you're W-2, if you're not W-2, whatever the case is, everybody can, in a 15 or 20-year period, acquire 10 to 15 houses and get them paid off. That actually is achievable for most people. For a lot of reasons, bankability, raising money, partnering on deals, whatever the case is. I was saying this flying here today, I was sitting next to somebody that manages money. Do you fly first class? I do.
Okay. I'm going to stop everyone. Make sure if you follow Brandon, you listen to his podcast, fly first class.
And this is why he texts me on the way here, by the way. And he said, Hey, I want to talk to you about your funds. I think there's a synergy between us too. Exactly. Anyway, so I'm talking to him and just having a conversation. And I said to him, well, he's like, because we want to raise money and we want to break into the real estate space, but he doesn't, I don't understand it. And I said, let me give you the simplest analogy I can. What's the house worth that you grew up in? And I saw a light bulb go off in his head. And he was like, damn. I get it. And I said, now multiply that by thousands of doors, multifamily, all that kind of stuff at scale. Do you see what it can do? And he was like, holy shit, man. Yeah. So the thing is you don't have to own thousands of doors, but think about the house right now. Look at the house that you grew up in. What is it worth today? What was it worth when you grew up in it? Right. My grandparents house, by the way, my grandparents, my grandfather paid twenty hundred dollars for his house. Right. Like, think about that. That's crazy. Going back in time. I say this all the time. In real estate, time is undefeated. If you can buy real estate and hold it, your fucking life is going to change from a net worth and from a cash flow perspective.
I believe, I believe I'm saying this right, but isn't it every 15 years it doubles?
I think that is the national statistic. But if we look at like the last 30 years, it's skewed because it's been faster. That's right. Yeah. Yeah. A hundred percent.
Yeah, I think it's a fool's game if you don't in some way get into real estate. And again, like I started this conversation, you don't need your own money. And I'm finishing up my own book right now. And I talk about even if you have 10, 20, 30, 40, 50 grand and you could go buy the rental. Don't. You said this earlier about IRAs, 401ks, retirement plans. You're not shitting on them for good reason. IRAs, millions and millions of dollars out of them. That money to those people is dead money. It's just sitting there. A lot of times it's losing value, right? Not just because of inflation, because of what it's doing in that account. They can go make 8%, 10%, up to 12% with someone like me, with you. Same.
Self-directed IRAs, we get money from, Literally, I'm on the plane getting wires. That's it. You know what I mean? From people's self-directed IRAs.
We're in a studio right now. The owner of the studio hears me talking to my private lender. He's wiring $672,000 for an apartment deal today. Yeah. It's all the same. You just need to understand how money works, how this all happens. That's a great name of this, how money works. Yeah. This is what you know and I know, but the listeners need to know.
Hey, that's what we're going to name this episode, How Money Works.
That's exactly right. Yeah. Because that's how it works. You have people that can make a lot of money. So my private lender is a dentist. He's made a lot, a lot, a lot, a lot of money in his life. And he's getting passive income. Right. And in this current scenario, I'm going to give him an equity piece to give him some tax write-offs. You think he wants to lend more? He literally said, when we close this, what's the next deal? I've never done business with this gentleman before. He already is like, hey, come to Houston. We need to buy another deal because I'm giving him an incentive to continue to work with me. I'm giving him a good interest rate on his money. But then because it's an apartment, he's going to have depreciation from the cost seg and he's going to have an equity piece and he's going to write off his, you know, a lot, multiple six figures of his seven figure active income. He thinks I'm a golden child. Yeah. And I'm just doing what I know the tax law allows us to do.
A good point to segue from that is there's so much money that's out there that people don't realize. And the thing is, there's two economies, the educated and the non-educated. And what you just gave was a PhD on money. The thing is, there's so much money out there that you can raise, that you can learn about. I mean, there's just, there's the educated and the non-educated. You want to become wealthy? Learn about money. He just gave you some great gems, but there's so much more out there than you, that most people are aware of. Listen to shit like this pay attention Because there's a difference why there's such a wealth gap in our country and when I say educated versus not educated I'm not talking college education. I'm talking money education. No very very different. Yeah, no doubt I Want to end with this and I ask everybody this same question We call this show wake up to wealth To you your version of it doesn't have to be money can be anything. What is waking up to wealth to you?
Man, it's pretty simple being able to wake up next to my wife with my daughter, my newborn son coming in March and did not have to do anything to just choose to do what we want. Do we want to go to breakfast? Do we not want to go to breakfast? Do we want to go to the park? Do we not want to go to the park? To have that choice and to be able to do that without feeling any obligation or being forced to have to go do something, that's wealth. It doesn't get any better than that. And lastly, the health, right? Good health is wealth, right? And so as long as those people are healthy, I'm wealthy.
Brother, we're gonna end it with that. I appreciate you for setting this up and shooting an episode with me on the road, and I really appreciate your time today. My brother, let's go.
Thanks so much for tuning into this episode of Wake Up to Wealth. We sure do appreciate it. If you haven't done so already, make sure you're subscribed to the show wherever you consume podcasts. This way we'll get updates as new episodes become available. And if you feel so inclined, please leave us a review on Apple podcast and tell your friends about the show. It is how new people find us. Until next time.