The Science of Flipping: Episode Summary

Title: Lost $100K on His First Flip—Now He Closes 30 Deals a Month and Owns a $20M Portfolio | Tommy Har
Host: Justin Colby, Bleav
Guest: Tommy Har
Release Date: April 11, 2025

1. Introduction to Tommy Har

Justin Colby welcomes listeners to a compelling episode featuring Tommy Har, a seasoned real estate investor who transformed a significant early loss into a thriving $20 million portfolio. Justin highlights Tommy's impressive journey from starting as a property appraiser at 23 to building a multi-seven-figure transactional real estate business by age 30.

Notable Quote:

• Justin Colby [01:19]: "This man was able to start in the business at 23 years old. He was a property appraiser and now has built a multiple, multiple seven figure a year transactional real estate business and owns over $20 million in assets."

2. Early Struggles and the First Major Loss

Tommy recounts his initial foray into real estate investing, which culminated in a $100,000 loss on his first fix and flip project. The failure stemmed from poor contractor management, emphasizing the importance of clear scope and swift decision-making.

Notable Quotes:

• Tommy Har [00:00]: "If I could go back seven years ago and start telling people about my first house hack, I lived in my damn living room and rented all my bedrooms out."
• Tommy Har [04:16]: "The reason we lost so much money was because the contractor I hired, I should have fired him within a couple weeks."

3. Learning from Failures

Tommy discusses the lessons learned from his first flip failure, including the importance of hiring diligently, setting clear expectations, and being prepared to make tough decisions quickly. He stresses that failures are part of the journey and essential for growth.

Notable Quote:

• Tommy Har [00:00]: "Fail, fail often, fail fast and get to the next level."

4. Building a Diversified Business Model

Currently, Tommy's business is evenly split between wholesaling and flipping, focusing on direct-to-seller strategies. He emphasizes volume and efficiency, managing multiple deals simultaneously to maintain a steady cash flow and asset accumulation.

Notable Quotes:

• Tommy Har [05:21]: "We're primarily, I would say like 50 to 50, wholesale to flip."
• Tommy Har [06:24]: "We do anywhere from 10 to 15, sometimes a month on the wholesaling side, and then we're doing another 15 to 20, 25 flips at any given time."

5. Marketing Strategies and Lead Generation

Tommy outlines his robust marketing approach, which includes cold calling, TV leads, and direct mail. He highlights the effectiveness of niche targeting and maintaining a strong local presence to dominate his market.

Notable Quotes:

• Tommy Har [07:50]: "We're heavy on the cold call and we just implemented TV leads. They've been crushing."
• Justin Colby [07:36]: "Talk about how you built your legion. What does that look like incrementally, like percentage bases."

6. Building and Managing a Sales Team

Tommy details the structure of his sales team, which includes full-time acquisitions, disposition agents, transaction coordinators, and virtual assistants. He emphasizes the importance of training, process documentation, and hiring young, motivated individuals to handle cold calling.

Notable Quotes:

• Tommy Har [08:53]: "We've got two full-time sales, direct to seller acquisitions, a full-time dispo, a full-time TC, and a bunch of VAs on the back end."
• Tommy Har [11:25]: "We're using four-line dialers and we're calling those around the clock..."

7. Advice for Solopreneurs and Scaling Businesses

Tommy advises solopreneurs to focus on mastering cold calling and lead generation initially. Once they achieve consistency, they should outsource these tasks to virtual assistants to scale effectively. He underscores the importance of building Standard Operating Procedures (SOPs) to ensure smooth operations as the team expands.

Notable Quotes:

• Tommy Har [13:04]: "Pull a high equity list or an absentee list and get on a four-line dialer. Learn to get over your fear of being on the phones."
• Tommy Har [21:14]: "Outsource everything internally except sales right away. Virtual assistants can handle list pulling and data management."

8. The Importance of Coaching and Mentorship

Both hosts emphasize the value of coaching and mentorship in accelerating success. They discuss how having a mentor or coach can provide tactical guidance, reduce the learning curve, and prevent costly mistakes.

Notable Quotes:

• Justin Colby [26:01]: "Everyone should be recognizing that there's always the people that say you can get all the information for free on YouTube but no one's there to hold you accountable."
• Tommy Har [27:23]: "It's usually an ego thing, like your situation is not unique to everybody else in the world."

9. Accumulating Equity vs. Passive Income

Tommy explains the strategy behind accumulating rental properties as a long-term passive income stream. He highlights the significance of understanding debt restructuring and the benefits of building equity over time to achieve financial freedom.

Notable Quotes:

• Tommy Har [25:15]: "You can get good debt and people pay you rent, you pay that down and you make cash flow on it."
• Justin Colby [31:13]: "Just stacking them up is a slower game but it's definitely not sexy."

10. Understanding Construction and Deal Underwriting

Both Tommy and Justin stress the crucial role of understanding construction in evaluating and underwriting deals. They provide insights into budgeting for different levels of property renovations, which can significantly impact the profitability of a flip or rental.

Notable Quotes:

• Tommy Har [35:12]: "If you're buying from a wholesaler, most wholesalers know nothing about a house."
• Justin Colby [35:39]: "Understanding construction can make or break a deal."

11. Branding and Advertising Techniques

Tommy shares his approach to branding through TV commercials, portraying his business as family-owned to build trust with sellers. He discusses the effectiveness of personalized direct mail and leveraging social media to enhance brand presence and lead generation.

Notable Quotes:

• Tommy Har [39:37]: "We say, 'We're a family-owned company here in Columbus and we buy any type of house, cash offer.'"
• Justin Colby [40:02]: "I love the branding, dude."

12. Final Advice and Encouragement

In closing, Tommy encourages aspiring investors to persist through failures, seek mentorship, and continuously educate themselves. He highlights the importance of documenting one's journey and staying authentic in business practices.

Notable Quotes:

• Tommy Har [41:30]: "Be yourself. Don't create a business that you hate."
• Tommy Har [43:51]: "You gotta figure that out and you can only do it for yourself. Nobody's going to come save you."

Conclusion

Tommy Har's journey from a significant early loss to a successful real estate portfolio underscores the resilience, strategic planning, and continuous learning required in real estate investing. His insights into marketing, team building, and the importance of mentorship provide invaluable guidance for both novice and seasoned investors aiming to scale their businesses effectively.

Key Takeaways:

• Embrace Failures: Treat setbacks as learning opportunities to refine strategies.
• Diversify Strategies: Balance wholesaling with flipping to maintain steady cash flow.
• Invest in Marketing and Sales: Robust lead generation and a skilled sales team are critical for scaling.
• Seek Mentorship: Learn from experienced investors to accelerate growth and avoid common pitfalls.
• Understand Construction: Accurate deal underwriting based on construction knowledge enhances profitability.
• Build a Strong Brand: Authentic branding and consistent marketing efforts build trust and attract leads.
• Long-Term Planning: Accumulating equity through rentals requires patience and strategic debt management.

Follow Tommy Har:

• Instagram: @TommyHar05

Final Quote:

• Tommy Har [44:15]: "Appreciate your time and go out there and crush it."