Podcast Title: The Science of Flipping
Host: Justin Colby, Bleav
Episode: Quitting the 9-5 and Building a Real Estate Empire | Austin Fulbright
Release Date: September 13, 2024
Introduction
In this compelling episode of The Science of Flipping, host Justin Colby delves into the transformative journey of Austin Fulbright, a former engineer who successfully transitioned from a 9-5 job to becoming a full-time real estate investor. Austin shares his insights, strategies, and the pivotal moments that enabled him to build a substantial real estate portfolio, inspiring listeners to take actionable steps toward their own investment aspirations.
Austin Fulbright’s Journey: From Engineer to Real Estate Investor
Early Career and Initial Investments
Austin begins by recounting his professional background as an engineer at a Fortune 300 chemical company, including a two-year overseas stint that provided him with significant savings. Unlike many, Austin didn't splurge on luxuries but instead invested his earnings into real estate:
[01:32] Austin Fulbright: "I bought my first seven units with a partner, 50/50. Over the next year and a half, I built my portfolio to about 14 units, primarily focusing on small multifamily properties."
The Shift from Learning to Doing
Despite his analytical mindset, Austin emphasizes the importance of moving beyond continuous learning into actionable investing:
[01:32] Austin Fulbright: "I wish somebody told me this earlier is, you know, enough. It's time to go. Take action. You gotta get out of the learn loop into the do loop."
Strategies and Tools for Building a Real Estate Portfolio
Diversifying Exit Strategies
Justin underscores the necessity of having multiple exit strategies in real estate:
[04:44] Justin Colby: "You gotta be a tool belt. You need all three exit models: buy and hold, fix and flip, and wholesale. You shouldn't just do one."
Direct Mail and Relationship Building
Austin shares his initial strategies for sourcing deals, highlighting the effectiveness of direct mail and building genuine relationships with sellers:
[06:47] Austin Fulbright: "I was using all my own money initially, employing the BRRRR method—buy, rehab, rent, refinance, repeat. This created a snowball effect for my investments."
He further elaborates on the importance of patience and relationship in closing significant deals:
[13:25] Austin Fulbright: "I spent nine months building a relationship with this guy before he was ready to sell. It was about understanding his needs and crafting a deal that worked for both parties."
The Power of Community and Mastermind Groups
Learning and Leveraging Community Insights
Austin highlights how joining Justin's community was instrumental in expanding his strategies beyond the BRRRR method:
[25:19] Austin Fulbright: "When you go outside of your local market and join a community, you get the unabated version of how to do this."
Mindset Shifts Through Community Support
The supportive environment and abundance mindset fostered within the community played a crucial role in Austin's success:
[28:10] Justin Colby: "Being around people that are doing the work, trying to be successful, make it happen is big. It helps you see outside of some of your limiting beliefs."
Mindset Shifts: From Scarcity to Abundance
Embracing an Abundance Mindset
Austin discusses the critical mindset shift required to transition from a W2 job to entrepreneurship:
[31:07] Austin Fulbright: "Abundance mindset is investing in your future because it's going to pay off later. Scarcity mindset is what holds people back."
Overcoming Fear to Take Action
Justin and Austin delve into overcoming the three major fears—taking action, doing it alone, and staying the same—to catalyze personal growth and investment success.
[33:03] Austin Fulbright: "The fear of staying the same became greater than my fear of jumping in and spending the money."
Tax Strategies and Financial Leverage in Real Estate
Maximizing Tax Benefits
Austin shares his approach to leveraging tax advantages such as depreciation and bonus depreciation to enhance his investment returns:
[17:29] Austin Fulbright: "I'm using bonus depreciation to offset the income tax event from me pulling the money from my 401k, which gives me more access to capital."
Utilizing HELOC for Investment
The strategic use of Home Equity Lines of Credit (HELOC) is highlighted as a means to access funds without relying solely on personal capital:
[10:01] Austin Fulbright: "You can use your HELOC. It's bank money because they're lending against your home's equity."
Taking Action: Moving from Learning to Execution
Breaking the Learn-Do Loop
Austin emphasizes the importance of transitioning from perpetual learning to active execution to achieve real results in real estate investing:
[36:42] Austin Fulbright: "Pick something and go do it. You will see success if you do it consistently."
Practical Steps for Aspiring Investors
Both Justin and Austin provide actionable advice for listeners aspiring to enter real estate investing, stressing the importance of taking immediate and consistent action:
[39:14] Austin Fulbright: "Go door knock this weekend, send some direct mail, send some text messages, hire a cold caller and pull a list. Do something."
Conclusion and Final Advice
Encouragement to Act
Austin concludes with heartfelt encouragement for those feeling stuck in their W2 jobs, urging them to prioritize action over perfection:
[39:05] Austin Fulbright: "You have to go. And that's the thing. Like, I think a lot of people might say, well, I wish you would have told me exactly what to do. It literally does not matter what you do. Pick something and go do it."
Building a Supportive Network
Emphasizing the value of mentorship and community, Austin advocates for surrounding oneself with like-minded individuals to foster growth and opportunity.
Key Takeaways
- Diversify Your Investment Strategies: Incorporate buy and hold, fix and flip, and wholesale to maximize opportunities and returns.
- Build Genuine Relationships: Invest time in nurturing relationships with sellers and agents to secure lucrative deals.
- Leverage Community and Mastermind Groups: Join supportive communities to gain diverse insights, strategies, and mindset shifts.
- Embrace an Abundance Mindset: Transition from a scarcity mindset to one of abundance to unlock greater investment potential.
- Utilize Tax Advantages and Financial Leverage: Maximize returns through strategic use of depreciation and HELOCs.
- Take Consistent Action: Move beyond learning to active execution to achieve real estate investment success.
Notable Quotes
- Austin Fulbright [01:32]: "I wish somebody told me this earlier is, you know, enough. It's time to go. Take action."
- Justin Colby [04:44]: "You need all three exit models: buy and hold, fix and flip, and wholesale."
- Austin Fulbright [13:25]: "It was about understanding his needs and crafting a deal that worked for both parties."
- Austin Fulbright [31:07]: "Abundance mindset is investing in your future because it's going to pay off later. Scarcity mindset is what holds people back."
- Austin Fulbright [36:42]: "Pick something and go do it. You will see success if you do it consistently."
- Austin Fulbright [39:05]: "You have to go. And that's the thing. Like, I think a lot of people might say, well, I wish you would have told me exactly what to do. It literally does not matter what you do. Pick something and go do it."
Final Thoughts
Austin Fulbright's journey exemplifies the power of education, strategic action, and community support in transitioning from a traditional career to building a thriving real estate empire. His insights serve as a valuable blueprint for aspiring investors looking to achieve financial freedom and entrepreneurial success.