Posted on: January 09, 2020

Are you at a point in your wholesaling journey where you’re ready to think big? Can’t wait to do more deals and earn massive returns? You’re in luck! Today’s guest will show you how!

Jerry Norton is a very successful real estate investor and wholesaler. He is also the owner of Flipping Mastery, an education company that has helped students flip a whopping $100 million worth of real estate. From digging holes as a construction worker in his 20s to becoming a self-made millionaire by the time he turned 30, Jerry’s story is impressive as it is inspirational.

If you can’t wait to take your business to the next level, listening to today’s episode is a huge step in the right direction. Jerry not only candidly shared many of the tips and techniques he uses, he also shared how he shifted his mindset and became the successful and inspirational man he is today.

Today’s episode is loaded with so many gold nuggets, prepare to take plenty of notes. Truly one of those episodes you’d listen to over and over again!

Key Takeaways

  • How he got into rehabbing properties
  • What turnkey means
  • What real estate owned (REO) means
  • How he found most of his deals
  • The double dip strategy he swears by
  • How people can use the MLS to their advantage
  • How to communicate with agents confidently and with certainty
  • How to properly network with real estate agents
  • The beautiful thing about working with real estate agents
  • What makes the double dip strategy so powerful
  • Why he focuses more on margin as opposed to volume
  • How he made more while doing less
  • Why it pays to flex one’s risk muscles
  • Why wholesaling is always the route
  • The importance of knowing how to evaluate properties and analyse deals
  • Why relevancy is key when evaluating properties
  • Key factors he takes into account when evaluating properties
  • The skill every real estate investor (especially wholesalers) need to master
  • How he shifted his mindset from doing construction work to doing multimillion dollar deals

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Episode Transcription

Brent Daniels:
It is time to start thinking bigger. I am here and I’m going to interview Jerry who has done over 1,500 transactions and we’re going to break it all down so you know exactly what he does to do so many deals. Not only deals but huge deals as well. Everybody in is Brent Daniels and I am here with Jerry Norton.

Jerry Norton:
Good to be here.

Brent Daniels:
And I’m sure if you are on YouTube you have seen this guy because he’s got one of the most popular, one of the most impactful YouTube channels on about real estate in our space, in our industry. And that’s a Flipping Mastery TV. We’ll put it somewhere here. But you’ve done an unbelievable job of over years and years and years really educating people on how to get their first deals, how to flip properties and how to do bigger deals, right?

Jerry Norton:
Yeah. We’ve got now over 400 videos all on wholesaling and flipping. So a lot of work.

Brent Daniels:
It’s incredible. It’s incredible. Not only that, so let’s take into you a little bit. Let’s give them two minutes of who you are, how you started out, a little bit about your background because it’s incredible because you have a big family, you’ve got a lot of things going on, so tell everybody about you.

Jerry Norton:
Yeah. So I started out in Detroit, was working minimum wage for a construction company, that underground construction digging holes basically and got married really early. I was like 21. I started a family, I had a few kids and realized, “Man, I’m just not cutting it. I’m just not doing it for my family, for my kids. And so I really wanted something better, Brent. I mean this is kind of everybody’s story that gets into real estate. So I found real estate, I started wholesaling, did kind of driving for dollars in Detroit, but I was so scared about what it costs to do deals.

Jerry Norton:
And then I went to like the bottom of the bottom. I mean like $5,000 houses is when I started wholesaling. But I got pretty good at it. It took a while, maybe about a year part-timing it, and then I finally made that transition into like, “I want to do this.”

Brent Daniels:
Because we have a lot of people here that are part-time, they have a full-time job, but they part-time to real estate. Like it’s their passion, they have the entrepreneurial spirit inside of them, but they have responsibilities. They have bills they have to pay. They have people that they have to take care of and so they’re doing it part-time. So you did this part-time.

Jerry Norton:
Yeah. I basically said I’m going to do this until I have a year’s worth of my regular job got saved up, which wasn’t very much. Here’s what’s crazy though, Brent, my first month full-time, I quit the job full-time. I did five wholesale deals and made $52,000, which was like twice what my job paid me in a year in one month. Now, people ask me, “Well, do you wish you quit your job earlier?” I don’t know. That was just my story, my journey. Everybody is different. But when I had all of my focus on it, it was amazing what I could accomplish.

Brent Daniels:
I have a video on it, on this channel about saving up six months of your expenses so that you can go into this and you’re not going into it with that huge fear like, “Oh no, all the bills are catching up to me. I don’t have enough money to cover it.” And then it turns into stress and that stress turns into some negativity that kind of boils in. So I think that that’s amazing that you suggested that you wanted a year’s worth.

Jerry Norton:
I did a year’s worth, but it was like $25,000.

Brent Daniels:
How many kids do you have?

Jerry Norton:
I have nine now.

Brent Daniels:
He has nine children.

Jerry Norton:
At the time, I had three.

Brent Daniels:
At the time you had three. Okay. So you obviously wanted a big family. This helped you afford to do that.

Jerry Norton:
Yeah.

Brent Daniels:
So you start wholesaling. What were you doing in the beginning? You said you were driving for dollars. What else were you doing? What year is this, by the way?

Jerry Norton:
So this is ’04, ’05.

Brent Daniels:
Oh my gosh.

Jerry Norton:
Yeah. So I kind of come in right where everything started dropping. And what was crazy was in Detroit, ’06 happens, I’m wholesaling all through this and all of a sudden these out-of-staters start coming to Detroit. It was like everything is a fire sale. And so I started wholesaling to these out-of-staters, California. Even overseas money is coming in and buying. I called it the cheap factor. It didn’t even matter if it was a good neighborhood, it was just cheap.

Jerry Norton:
So the problem was is I’d wholesale one of these out-of-staters a deal, but then I couldn’t wholesale them another deal until they like fixed it up and rented it. So to speed the process up, I said, “Well hey, I found you the deal. Why don’t I fix it up for you so I can sell you another house?” That was my reason for doing it, not because I wanted to rehab. So I just by default got into rehab.

Brent Daniels:
Oh, boy. Yeah.

Jerry Norton:
So then I started doing the turnkey thing, fix it up. Then I said, “Well, you know what, what if I got a tenant in place?”

Brent Daniels:
Wait, wait. You said turnkey. What does that mean?

Jerry Norton:
Well, so these are low income rentals. So I would fix it up.

Brent Daniels:
So this is a neighborhood where the houses are worth how much? Let’s put it in today’s [crosstalk 00:05:23].

Jerry Norton:
At the time 80,000. They’d appraise for about 80,000. I’d buy them for about 10 to 15, REOs mostly. Because now everything crashed. So I buy them for 10 to 15. I put 10 to 15 into him and then I’d sell them for about 50 to 60.

Brent Daniels:
So an REO is a real estate owned. That means it’s owned by the bank. So it was a foreclosed home. So at some point somebody couldn’t afford the mortgage. It goes back to the bank. They have all these properties and Jerry was reaching out to the banks getting these deals and then you would fix them up for these people?

Jerry Norton:
I’d fix them up. And then I took a step further.

Brent Daniels:
Did you use your own money to fix these up? Were you using other people’s money? How did that work?

Jerry Norton:
At this time, I could only keep one or two on inventory because of cash.

Brent Daniels:
So this is your own money?

Jerry Norton:
Yeah. I mean, I eventually started to raise money. I took it another step and I said, “Well, why don’t I get a tenant in place? That’ll make it even easier.” So then what I would do is I’d buy it, fix it, put a tenant in place with a property management, and then I could take it to these investors and they would just buy him.

Brent Daniels:
So you got a totally renovated house, you’ve got money coming in from it. It’s income producing because you got a tenant in there. These tenants, I assume were screened by some sort of sort.

Jerry Norton:
Section 8.

Brent Daniels:
Okay.

Jerry Norton:
Mostly Section 8.

Brent Daniels:
Section 8 so guaranteed rents.

Jerry Norton:
Guaranteed by government.

Brent Daniels:
Okay. And then you would turn it over to an investor.

Jerry Norton:
At 50, 60, 70 of these things. I think in ’07, I did like 80 of these turnkey properties where it was like all done, ready to go. Here’s a tenant in place and go. ’08 happens, and the problem that happened in ’08 was the financing. So my buyers would buy them for 50. They’d appraise for 80, they refinanced, buy another one. Cashout, refi, buy another one. So I could sell one guy, 10 houses.

Brent Daniels:
Sure.

Jerry Norton:
Well not anymore. So now it was just like cash buyers. So it kind of killed my model, but I adapted quickly. I immediately said, “Well I’m going to go retail.” So I stopped my turnkey model and I just went into first time buyer neighborhoods in Detroit. So I moved out of the low income, went into like the $150,000 neighborhoods. Same thing, bought it, REO, renovated it a little different now because it’s retail now. So I was doing granite and stuff and then I turned around and flip it and I make maybe 25 to 30 on a house. But it was all cookie cutter. It was just like a production line. As many of them as I could buy and fixed them up. I’d go through two or three buyers.

Brent Daniels:
How are you finding these deals?

Jerry Norton:
Mostly all REOs.

Brent Daniels:
Are these on the MLS?

Jerry Norton:
Yeah. So my strategy was I teach this technique still today because it works really well as a double dip strategy where I’d go directly to the listing agent unrepresented and I’d let them submit the offer for me as my buyer’s agent, so they’re getting 6% now. So then I’m getting pocket listing.

Brent Daniels:
So I talk about this on here, reaching out to real estate agents for wholesale deals that they know that I don’t want any of the commission. They can keep whatever commission they have, but give it to me before it hits the market.

Jerry Norton:
Right.

Brent Daniels:
Because once it hits the market, you’re going to have a bunch of offers, you’re going to go through so much paperwork, it’s going to be a headache, bring it to me before you do it and I’ll make it as smooth and as clean as possible. You essentially doing that to people that were getting properties that were foreclosed on to agents, real estate agents.

Jerry Norton:
Because all REOs go on market.

Brent Daniels:
On MLS.

Jerry Norton:
Yeah, they go on MLS, and there’s a designated agent that represents the banks. So it’s the same agents getting all the deals. So then they call me up and they’d say, “Hey, this one gets listed on Friday. Give me your number.” I’d submit my number. I don’t know if anybody’s ever seen this. It would be active at like 9:00 AM, pending at 9:01.

Brent Daniels:
Yeah. Crazy.

Jerry Norton:
Because they just locked it up for me. And so that was my main strategy because there was just so much of it out there. So much of that inventory.

Speaker 1:
Do you have any suggestions for what people can do now? You know what I mean? Now, Jerry’s in Phoenix, just moved to Phoenix about 18 months ago because everybody that’s in these videos isn’t from Phoenix. Every real estate first is in Phoenix.

Jerry Norton:
Aren’t all the players in Phoenix?

Brent Daniels:
Yes. I guess, I don’t know, but let’s talk about some of the other… How do you take advantage of the MLS now to get sales?

Jerry Norton:
You know what’s crazy, Brent? I didn’t know this until I really started putting myself out there in the community on YouTube. But most people don’t know that you can still get great deals on the MLS because that’s not what anybody else teaches. Everybody else teaches all these off market strategies, which work. So the MLS to me is this untapped gold mine. If you double dip, now you have to double dip or you’re just going to be… You don’t have a competitive advantage.

Brent Daniels:
Right. Double dip means the person that’s listing the property gets all the commission.

Jerry Norton:
So what it means is it means you cannot have a buyer’s agent representing you. You can’t do that otherwise they’re going to want 3%.

Brent Daniels:
Even if I have a licensed.

Jerry Norton:
Because I’m licensed. So I tell them, I say, “Hey, I’m licensed, but I don’t want to use my license.

Brent Daniels:
I don’t want an agent.

Jerry Norton:
Yeah. So I let the listing agent… So it’s dual agencies, what it’s technically called.

Brent Daniels:
I get it.

Jerry Norton:
So it’s called dual agency. It Happens all the time. It’s normal real estate. You’re just strategically doing it.

Brent Daniels:
So what are you saying to these agents? Because there’s people out there that maybe they’ve never done a deal. Maybe they’ve done a few. I remember from the outside looking in. Before I got a real estate license, which I was 22 and I did, but I remember even like higher end real estate agents as I had a license, I was like, I feel intimidated. I feel like they’re going to ask me questions, and they’re going to feel like I’m a fraud or I’m stupid, or I don’t know what I’m talking about. How do you communicate with them and have that confidence and that certainty? we talked about certainty and likability when we talked to anybody, but how do you talk to them?

Jerry Norton:
So here’s what I do. Don’t ever call it an agent unless you’re calling them specifically about their listing.

Brent Daniels:
I love it.

Jerry Norton:
That’s number one.

Brent Daniels:
I love this.

Jerry Norton:
Now, you can have a real conversation.

Brent Daniels:
Of course.

Jerry Norton:
So you call up and you say, “Hey, I’m calling you about your listing on whatever street. I’m a real estate investor. I’m a cash buyer. I’d like to make an offer, but I’m unrepresented and I’d like you to submit the offer on my behalf, so you get both sides of the commission. How does that sound?” Not all of them but 90% of the time they’ll say, “Oh yeah, heck yeah.” And then I follow up and I say, “By the way, do you have any other listings that are distressed properties that I can make an offer on? And would you mind calling me on your next listing before you list it? I’ll take a look at it, I’ll get you my number and we can get my offer submitted before going on market.”

Brent Daniels:
I love it and I love this because when you’re out there networking with real estate agents or maybe you’re just meeting them in meet-up groups or you’re meeting them somewhere out there, maybe it’s a barbecue or something and you don’t just go up to them and be like, “Oh, I buy houses. Send me your deals.” Say, “Hey, what houses do you have right now that needs some love? What houses do you have now that are like totally trash that need a renovation?” “Oh, I don’t have any. Do you run across them anytime?” “Yeah, I do.” “Okay, listen. I know this sounds crazy, but I love those. Like I seriously love these. I want you to reach out. Will you save my number in your phone as Brent Cash Buyer,” and then build that relationship.

Jerry Norton:
With your cellphone. I mean, this is how powerful this is. It’s never about the deal in hand, it’s always about future deals. I mean, I had an agent just call me up today, a deal that I double dipped on, but it didn’t work out because I couldn’t get my number. But he calls me up and he says exactly this, “Hey, it’s off market right now. I’m getting ready to list it. Before I list it, I told the seller, I might have a buyer. Let’s see if my buyer’s interested.” And the seller was like, “Great. I would love not to go on market. I’d love not to have people coming in my house.”

Brent Daniels:
That’s huge.

Jerry Norton:
So we’re talking right now and I ran my numbers in my formula. Brent, this is awesome. Don’t you love it when this happens? I run my formula, ARV, your pairs, 105. But I don’t tell them 105, right?

Brent Daniels:
Yeah.

Jerry Norton:
He names the price first loses. I said, “What do you think they’re going to want?” He’s like, “I’m advising them to list at 999.” I’m like, “Okay, we might be able to make that work.” I’m going to be going for 90 or whatever.

Brent Daniels:
Well, the beautiful thing about working with real estate agents is they already have a number. They’re not going to be like, “Hey buyer, what will you give me for this house?”

Jerry Norton:
They sold to seller on a price.

Brent Daniels:
They already comp it. They brought it to the seller. They said, “They’ve already done all that work for you.” And you go, “You know what, that works. Do you think they’d take 99 or 95 or whatever like a little bit just so that the seller doesn’t feel like… If you take that first one, the seller is always going to wonder if they left money on the table. So I think that might work, but see if you can get it for 98 for me. I think 98 works a lot better. He wants to get 98. No, we won’t budge off 99. Okay, great.

Jerry Norton:
Both are fine.

Brent Daniels:
Yeah, and then they feel great. They feel great.

Jerry Norton:
This came from an agent on a deal that didn’t work out, but because I had that double dip conversation and I said, “Hey, call me when you get deals.” These guys are in the market. I mean, that’s what they do, right? At some point in time, they’re going to come across distress real estate.

Brent Daniels:
Love it.

Jerry Norton:
And you want them calling you. Now, I tell people, imagine if you had 25, 30, 40 agents in your market now doing that with a double dip relationship and calling you. I mean, it’s really powerful.

Brent Daniels:
It’s huge.

Jerry Norton:
And it’s free.

Brent Daniels:
I know.

Jerry Norton:
There’s no ad spend. There’s no direct mail. There’s no buying data, nothing.

Brent Daniels:
No. The only thing you have to do is pick up the phone and call them, right?

Jerry Norton:
This is why I love you, Brent. Can I say this?

Brent Daniels:
Yeah.

Jerry Norton:
Okay. Everybody’s looking for like the easy way out. With digital world we live in and I want to make money in real estate, online, without talking to anybody. And what I love about you is just how real you are with talking to people. Just talk to people.

Brent Daniels:
That’s it.

Jerry Norton:
You know what’s crazy? With all of the advancements in technology, there are just as many registered real estate agents today as there were 10 years ago. Ain’t that crazy?

Brent Daniels:
Yeah. I know.

Jerry Norton:
It’s still a people business.

Brent Daniels:
I know. There’s more here in Phoenix. I mean there’s-

Jerry Norton:
More than there was?

Brent Daniels:
Yes. There is more. I mean it’s incredible, and you build your whole business off of talking to these people. You were going directly to the seller. You were going to having these relationships. If you didn’t pick up the phone or reach out to these people, I’m telling you as a real estate agent for a while, people would send you blanket emails that, “Hey, I’m a cash buyer. This is what I’m looking for. Send it to me.” Delete.

Brent Daniels:
Somebody calls me up and says, “Hey, I saw this listing. I want you to represent me,” that relationship goes on and on and on. I sold one guy, 73 properties back in the downturn when it was REO properties, when it was bank owned properties. I mean it was incredible.

Jerry Norton:
If they don’t answer, I text them and I say, “Hey, I’m a cash buyer. I want to submit an offer on your property at…” They’re going to call you in five seconds because they’re going to see that. I say enough to get them on the phone because it’s a relationship.

Brent Daniels:
That’s it. So now what are you doing? You’ve taken us to, okay, you started getting into-

Jerry Norton:
First time buyers.

Brent Daniels:
You started getting into the first time buyers. At the beginning of this, we talked about thinking big, thinking about big mindset, and Jerry is like the master at this because he kept going bigger and bigger and bigger. Now he does huge deals and he does deals-

Jerry Norton:
Nationwide.

Brent Daniels:
… nationwide, nationwide.

Jerry Norton:
Here’s what happened. So I’m doing these little flips that are making 25, 30,000 a flip and they’re like 1,012 square foot houses, and one of these REO agents brings me this deal that’s like 4,000 square feet in a part of town that’s nice, that I’ve never… I ended up doing this deal, biggest deal I’ve ever done at this point, sold the things for like 400,000, did the same rehab I did in my other houses. It was this bigger, more to paint. Yeah. But I still had to coordinate a painter and new cabinets. I started to do all the same thing.

Brent Daniels:
Still had to pick out everything.

Jerry Norton:
I made $75,000 on that flip, and I had this aha moment where I’m like, “Wait a minute. I made three times as much into the same amount of work. What the freak am I doing?” And so that next year I did probably a quarter of the deals, the year before, make twice as much money. And so I’ve taken that concept in that mindset of focusing more on margin than volume. And I see a lot of people do this and it’s okay. If you want to be the volume guy, there’s a model for that.

Brent Daniels:
Sure.

Jerry Norton:
And some people are good-

Brent Daniels:
You need a lot of that.

Jerry Norton:
You better be a good leader, you better be able to manage people, you better be able to grow a team. But you can do that model. What worked well for me though was saying how do I make more and do less? And so that’s been my real focus. And so I’ve transitioned into higher end and higher end and higher end and now I do multimillion dollar deals. Still single family residential, but now they’re are a million and a half, 2 million, $3 million homes. A lot of them are new construction.

Brent Daniels:
That you net…

Jerry Norton:
Up to 500,000 on one deal.

Brent Daniels:
On one deal?

Jerry Norton:
Yeah. I’ve got two right now I was telling you about before the show that-

Brent Daniels:
This is that thinking big part, right?

Jerry Norton:
Yeah. I’m all in the both of them for about a million and one. We’re going to shoot for one-five, the other one, one-six with the cost and carry. I do these with zero of my own money, 100% funding.

Brent Daniels:
Love it. Love it. So listen, guys because I get this a lot. A lot of my TTP family members, my TTP students, their progression when I talk to them is I want to learn how to do my first deals. I want to learn how to do it by being proactive. I want to do it enough to where I’m making enough to either do this full time and then I really want to develop. I really want to buy apartments or build or whatever, but there’s a natural progression there that says, if you know how to source opportunities in real estate, the sky is the limit. You can go and you can do apartments. You can go and you can build the hotels. You can go and you can do these multimillion dollar mansions.

Jerry Norton:
If you’re stretching out of your comfort zone.

Brent Daniels:
100%.

Jerry Norton:
And flexing your risk muscle. That’s been the biggest thing for me is I’ve had to flex that risk muscle and push and push and get a little bit. These deals are not comfortable sometimes. I mean, some of my deals, I’ve got $10,000 a month in carry until these babies sell. I couldn’t stomach that on day one, but I’ve been able to kind of build up a tolerance and learn the things I need to learn to then have those big paydays where I make 300, 400, 500,000 on one deal.

Brent Daniels:
Well, I think also you can go and you can put together a resume of deals that you’ve done and now you can raise money. You can raise a ton of money. You know what I mean? But you have to learn how to find these deals first. You had to learn how to go through all these things, how to work with contractors, how to lead people and make sure that these deals get done and that you get a profit and you show that and now all of a sudden people are like, “I trust you. I need to do something with my money. Here you go,” and you go out and you expand it for them.

Jerry Norton:
You know what though? Wholesaling is always the root, and it should be for anybody. If you learn how to wholesale… This is what I tell people. You can wholesale your way out of any mess you get yourself into and I’ve done it several times where I’m like, “I don’t know how I’m going to flip my carry next month or whatever or at the end of this deal.” I’m going to go wholesale a couple of properties. I wholesale a couple of properties and I got 30, 40 grand. If you know how, it’s amazing.

Brent Daniels:
See how it’s just, “I’m going to just go wholesale a couple of properties.” But that’s because you have a network around the whole country because you know how to valuate properties around the whole entire country.

Jerry Norton:
This is something that I see so many investors try to shortcut or skip, which is learning how to evaluate or analyze deals. They go to realtors and they say, “Can you do the CMA for me or do a comp report for me?” This is just being lazy. Learn how to comp a property, learn how to look at distance and age of the comp and all the features that are similar to your subject property.

Brent Daniels:
How do you develop that? Somebody is sitting there watching this on their phone right now and they’ve never comp a property. They’re a teacher or they’re a truck driver or they’re in the military or whatever, and they’re like, “Well, I’ve gone to Zillow. Is that what I do?”

Jerry Norton:
So you can do it right on Zillow. I like Redfin better, but you can do it right on it. You don’t need a real estate agent. You can go right on there. They have filters. Now, it’s not as many or as good as MLS because it has more filters, but you can go on there and you can find your neighborhood. I like to stay within the major crossroads. I don’t like to go outside of maybe seven, eight, 10 streets around my subject property. Like people say, “Oh, it’s within one mile.” Yeah, but I cross three main roads and it’s a totally different neighborhood. Stay close. My biggest thing is relevancy. What are the most relevant comps?

Brent Daniels:
Got it.

Jerry Norton:
If I take five or six houses that have sold in the past year, which five or six are the most relevant to my subject property? You can make it out to whatever you want and you’re just kidding yourself. Or you can hand pick the comps that you think would work and they’re just not-

Brent Daniels:
And make the values go all over the place.

Jerry Norton:
Don’t compare a house built in 2005 to have one built in 1948.

Brent Daniels:
Give me just off the top, three rules. So I would say you want to stay within 15 to 20% of the square footage.

Jerry Norton:
I usually like to go a 500 square foot range. So 250 below, 250 over.

Brent Daniels:
Beautiful.

Jerry Norton:
If it’s a bigger home you can go thousands.

Brent Daniels:
So you’re saying not 500. If it’s a thousand square feet, you’re not going 1,500, you’re going 1,250 and 750. So you’re saying within 500?

Jerry Norton:
Yeah.

Brent Daniels:
Okay, great. The giant ones that doesn’t work, but regular ones, okay. So 500. And what I like is neighborhood first.

Jerry Norton:
Neighborhood first.

Brent Daniels:
And then within a mile, if you’re not crossing major streets and you understand lot sizes and you want something comparable.

Jerry Norton:
You want something similar. Don’t compare a two story to a ranch.

Brent Daniels:
Two story to one story.

Jerry Norton:
Yep. And I even look at curb appeal. If I’ve got a box with nothing on it and one roof line and then I take a comp that’s got all these elevations and the two car bumped up. Think about yourself as a buyer. A buyer is not going to say, “Oh yeah, that house is the same as this house.” They’re totally different. So I think a lot of it is just practice and looking at a lot of comps. Here in Phoenix, I pay really close attention to pools. Not all markets have pools. Basements are a big thing. Busy roads are a big thing. These are just things that you kind of want to learn. I call them the features of the property.

Brent Daniels:
A lot of my students they wanted to take that extra level to pass Zillow and Redfin and use PropStream, which through ttpdata.com. You can get to that ttpdata.com. Definitely check that out. You get a free trial to test it, but they use it to zero down. I mean really get down and look at the look at the comparables.

Jerry Norton:
Yeah. Garages are a big thing. I’m sure if you don’t have a garage, you’re not comparing to the houses that have garages or that you discounted accordingly. So getting good at evaluating a deal is a skill that every investor, especially wholesalers need to learn.

Brent Daniels:
I’m telling you, that is a huge… I know. I feel like that’s a huge feather in my cap when it comes to confidence. I can look at a deal and you real quick if that’s going to work or not, right?

Jerry Norton:
Yeah. Look at that.

Brent Daniels:
But that’s only because I’ve comped thousands and thousands and thousands. You know what I mean?

Jerry Norton:
Yeah.

Brent Daniels:
And you get to hire somebody to do that on your staff if you get to that point. But I think as you’re growing this and doing this, I would almost play games with it. I would almost take any properties around. I’d just drive around and get 10 properties and compliment, like see what it would be, and then maybe reference that to somebody that’s an appraiser or somebody that’s a real estate agent, see how close you are.

Jerry Norton:
Yeah. What I like to do, I don’t know if you do this, but I like to get the average price per square foot of my five or six comps that I really liked that are most relevant to the subject property.

Brent Daniels:
Love it.

Jerry Norton:
Multiply that by your square footage of your deal and there’s your ARV.

Brent Daniels:
Love it. Y

Jerry Norton:
And just get good at that and practice that.

Brent Daniels:
And you’ve been doing this, I mean…

Jerry Norton:
15 years full-time.

Brent Daniels:
15 years full-time.

Jerry Norton:
But thousands of evaluations. And I love it. I mean, I just love to look at a property and try to figure out what it’s worth.

Brent Daniels:
So you really do right now in your business, you do a lot of things, but on the real estate side, because you have a lot of incredible products and a lot of things that you’ve developed over the last 15 years.

Jerry Norton:
On the training side.

Brent Daniels:
You do big deals, big massive mansion, multimillion dollar deals, and you partner with people around the whole country. So talk to everybody about that, that might be interested in… Because here’s the thing guys, and I talk about this often on this channel, the toughest thing when you’re starting out is, is this a deal or no deal? And then second to that is how big of a deal it is. So Jerry has kind found a unique niche here. It’s not for everybody, but there’s certain people that reach out to you and partner with you.

Jerry Norton:
Yeah. So it wasn’t easy, but I transitioned from doing like my local market there in Detroit and what happened was our family went on a one year RV trip, full time. We traveled in the RV around the country. I made this goal of, you know what, I want to try to do deals virtually. Now, it’s kind of a popular thing right now, virtual wholesaling or virtual fix and flip. So I started doing that years ago before it was a thing, and I got really good at figuring out how to do deals, how to look at a deal in a market I’ve never been in before, and figure out what the numbers need to be to make it a deal. And so now I do deals nationwide. It’s got to be a deal, like it’s got to fit the formula. But I’ll buy it and I have a program where people can be a finder for me.

Jerry Norton:
Basically, I give you some tools and training and some software and you go find a deal. You bring it to me, you can submit it through my portal. We do a full analysis of it and if the deal passes, I buy it, pay you $10,000. So a lot of people love the property.

Brent Daniels:
You buy it before you flip it? I mean you close on it?

Jerry Norton:
Close on it because I’m going to fix and flip it. Close on it, pay out $10,000 and then I fix and flip it.

Brent Daniels:
So they get paid if they send you a deal?

Jerry Norton:
Yep.

Brent Daniels:
It’s a really nice option if you feel a little bit shaky in your buyer base or if for some reason you’re not sure if it’s a deal or not, they can submit.

Jerry Norton:
Yep. Every deal that comes through, if somebody submits a deal, we do a full evaluation and we give that evaluation back so that you can learn, okay, I was off on ARV or I was off on repairs or whatever. Here’s why it’s not a deal.

Brent Daniels:
People have to buy into this, right?

Jerry Norton:
Yeah, there’s a deposit.

Brent Daniels:
This is for serious people.

Jerry Norton:
Right. So basically there’s a link below, you put a link in there and you can go to about a 40-minute training where I go all through how it works and how you can become a finder and then you can get started from there. That’s how to do it.

Brent Daniels:
Awesome. Is there certain parts of the country that you feel like this has been a huge impact for? You know what I mean? I mean, you’re all over the place, but is it the bigger cities, like a Dallas or a San Diego or is it smaller like Nebraska, Indiana, Midwest? Is there any…

Jerry Norton:
We just did a deal in Indianapolis. I had no idea. I’ve never been there and I was stunned at how hot that market is in flipping, going on, and real estate is just kind of booming there. I mean we’re anywhere. I tell people if there’s houses, it works. If people are living in houses, it works. But a lot of people are in such a hurry to get out of their market and go to Phoenix, Tampa, Vegas, all these really hot markets where there’s a lot of opportunity but also a lot of competition.

Brent Daniels:
Sure.

Jerry Norton:
And sometimes your backyard is kind of a sleepy little market that’s awesome for deals. In fact, that’s kind of my take on it is most of the time your backyard is a great market.

Brent Daniels:
Awesome. Let me ask you this question. We’ll kind of wrap this up. Do you think you were born an entrepreneur?

Jerry Norton:
Good question.

Brent Daniels:
You were working in that job and you were like, “I can’t do this.” I think there are people watching this are born entrepreneurs. I think there’s three key… I’m answering my own question. I apologize. I am. But I mean, I really think that there’s people out there that watch this, that are like, I want to do something else. I don’t think people watch this to do one deal.

Jerry Norton:
Most people that are highly dissatisfied in a job and they keep coming back to you and they keep coming to mind. There’s something calling them and there’s this inside yearning. And I had it. Also, my job, every day I hated it, and every day I wanted, my own thing. So I think people that have that, they just got to let go of those fears and they just got to work towards it and get to it. That’s your calling in life and you’re not living your purpose if you’re not doing it.

Brent Daniels:
Yep. I love it. I’ve been thinking about it a lot. I think Gary Vee was talking about. It’s a gene or something like that. That’s been just sticking to my head. And then the last thing really is how do you go from a guy digging holes mentally to a guy that does 1,500 deals, does a nationwide and does multimillion dollar construction development?

Jerry Norton:
Well, that’s an interesting question, Brent because I really feel like in order to do bigger deals or more deals or wherever you’re at to kind of go to that next level, it might be getting that first deal, picking up the phone and talking to somebody, whatever that is, that’s kind of holding you back, you know it’s there, it’s that thing right over here and you’ve just got to face it head on. And I’ve just always done that. I’ve made a lot of mistakes and I’ve lost money on deals, But the one thing I’ve done, Brent is I’ve just gotten back on that horse and I’ve just tried again. So I tell people you’re going to fail. It’s okay. Just try again. You’re going to fail, try again. And the more times you do that, the faster you learn and the more you learn… And before you know it, you’re at a whole nother level that you were before.

Brent Daniels:
And then I think you just stack those wins. Stack the small wins. I picked up the phone today. That’s a win.

Jerry Norton:
That’s a win.

Brent Daniels:
I dialed it, that’s a win. Somebody answered, that’s all these little wins, wins, wins, wins. And all of a sudden you go from digging holes to doing build mansions. It’s on your YouTube channel. Definitely check out his YouTube channel. It’s phenomenal. Flipping Mastery TV. You put out three videos a week. This is awesome. I love this. If you guys liked the collaboration here, definitely let me know down below what your thoughts are. Give us some comments.

Jerry Norton:
Questions.

Brent Daniels:
Any kind of questions you have. We’re very active with the comments. But I love this. This has been bananas.

Jerry Norton:
Bananas.

Brent Daniels:
It’s bananas. So really, really glad that you came in here and I hope to do this some more in the future. And guys, if you are interested, obviously I tell you to go out there and talk to people, be proactive, go out there and source opportunities. When you source those opportunities, if you’re running into some trouble and you need some help, reach out, go to the link down below and check it out. It’s a great resource, guys to help you further your passion in this business, in this industry. So it’s awesome.

Jerry Norton:
You’re the man.

Brent Daniels:
Awesome. Until next time, guys. You guys are the best. I love you. Go talk to people. See you.

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