Posted on: September 17, 2020

In the fascinating world of real estate and wholesaling, anything is possible and there is no such thing as too far-fetched. The real estate journey of today’s awesome guest is solid proof!

Jorie Aulston has come full circle and in this episode, he shared how he made it all happen. Jorie is the founder of the The Aulston Group, a real estate company that specializes in notes, contracts, rentals, fix and flips, and REOs. He also has a vast knowledge of several investment strategies, thanks to his over 10 years of real estate experience.

In this episode, Jorie shared his unbelievable progression and the many insights and lessons he has learned along the way. This is one inspirational and engrossing episode you can’t afford to miss!

Key Takeaways

  • What his origin story is
  • What a land contract is
  • What he asks sellers that are open to seller financing
  • How you can become the bank
  • Keywords that indicate seller is perfect for seller financing
  • Why it pays to invest in seller finance notes before rentals
  • His preferred marketing channels
  • His average wholesale deal
  • What every negotiation comes down to
  • What his main goal is
  • Markets he’s active in
  • What his company looks like right now
  • What their podcast is all about
  • Breakdown of his first wholesaling deal
  • Three parts of wholesaling
  • How people can get ahold of him
  • His advice for those who are just starting out

RESOURCES:

If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!

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Episode Transcription

Brent Daniels:
Welcome everybody to the wholesaling inc podcast. America’s number one podcast for new real estate investors, where we know that finding discounted properties is the most proven path to financial freedom. I am your host, Brent Daniels, and I am telling you if I can do it so can you. So let’s get started. We are here with a classic story. We’re coming full circle in the progression, the unbelievable progression of starting out as a real estate agent, then becoming a wholesaler and now has become the bank.

Jorrey Ulston:
Yes.

Brent Daniels:
We’re talking from Miami, Florida, Mr. Jorrey Ulston. How are you?

Jorrey Ulston:
Doing good, Brent.

Brent Daniels:
Good. I’m excited to have you here.

Jorrey Ulston:
Happy to be here, man. Definitely.

Brent Daniels:
So tell me, so you started out your real estate journey in 2007.

Jorrey Ulston:
Yeah. I got my license in 07′ Michigan.

Brent Daniels:
Okay.

Jorrey Ulston:
I got into real estate to get my license to do flips and didn’t have to pay commissions. We all want to be able to do that without paying commissions. So we had 07′, a year later the market crashed. Right?

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
I was lucky to be working with the REO broker, real estate owned broker. So foreclosure broker. Right?

Brent Daniels:
Yep.

Jorrey Ulston:
So the market crashed and I was actually working for the number one real estate owned REO broker in Michigan. Right? So I became his buyer’s agent.

Brent Daniels:
Yeah.

Jorrey Ulston:
So I started selling a 100, 150 homes a year foreclosures to investors.

Brent Daniels:
Yeah.

Jorrey Ulston:
So I did that from 07′ to 2014.

Brent Daniels:
Mm-hmm (affirmative). I did the exact same guy. I’m not joking. I joined the number one real estate, the REO team in 2010 and 11. All I did was running around all the time with all these buyers, right.

Jorrey Ulston:
Yeah.

Brent Daniels:
Trying to put together these little tiny deals. Because they were all foreclosure.

Jorrey Ulston:
Yeah. The commissions were like a thousand bucks.

Brent Daniels:
Yeah.

Jorrey Ulston:
1500 bucks. We had to sell a lot of them to make any money.

Brent Daniels:
So is it a family thing, was your family and real estate? Did you read a book? Did you see something on late night TV? What brought you into, I want to flip houses, so I’ll get my license. You know what I mean? What’s your origin story?

Jorrey Ulston:
So I was living in… None of my family is real estate, right?

Brent Daniels:
Yeah.

Jorrey Ulston:
I was living in Miami, 04′, 05′ and I read, of course I read Rich Dad, Poor Dad, right?

Brent Daniels:
Yeah.

Jorrey Ulston:
And it sparked my mind to want to get into real estate. And I just started reading books in real estate for two years straight just read, read, read, read. Because I knew I wanted to get into real estate as an investor. Right? My dad, my real dad who, I didn’t even know that well, he was in real estate in 03′, 04′ in DC doing condo conversions.

Brent Daniels:
Okay.

Jorrey Ulston:
So he actually was talking to me about, this. We actually just started talking 2003. I was 22, 23 years old.

Brent Daniels:
Yeah.

Jorrey Ulston:
And he actually started talking to me about real estate and it kind of, I think him saying it to me sparked into my mind. Right?

Brent Daniels:
Yeah.

Jorrey Ulston:
So I just kind of went off and took off on that path. And then me and my wife got married, moved to Michigan and I studied for two years in Michigan till I got my real estate license.

Brent Daniels:
Awesome.

Jorrey Ulston:
Yeah.

Brent Daniels:
And then you go real estate… How do you find the beautiful world of wholesaling real estate? Right? Because they’re agents…I’m not joking. They’re agents that I talked to that had been in the business 20, 25, 30 years, five years, 10 years have no idea what wholesale real estate is.

Jorrey Ulston:
They have no clue. They’re also the hardest people to work with.

Brent Daniels:
Uh-huh (affirmative).

Jorrey Ulston:
Unless you talk to them they’re like, “No, what are you doing? This is illegal.”

Brent Daniels:
Yeah.

Jorrey Ulston:
So I became, I started a wholesale by necessity, right? So again, I was selling the REO properties, right? So that was good. 2012 hit 11, 12 hit, the hedge funds started buying all the properties, right?

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
So we couldn’t even buy, I couldn’t even get my local investors anything because this hedge fund from somewhere else would bid it up 10, 15 grand.

Brent Daniels:
Same thing.

Jorrey Ulston:
Nobody local would buy that stuff. Right. So the Hedge fund started buying everything. So my money just dried up. So I literally had to start finding deals off market by necessity to keep making my income.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
And actually the first time I wholesaled, it was kind of by accident. One of the investors I worked with was like, “Hey, any deal you find, you bring it to me first I’ll give you $5,000 on top of your commission.” Right? So I basically was wholesaling at an assignment fee to bring him these deals first.

Brent Daniels:
Yep. Yeah.

Jorrey Ulston:
And then after I was doing that for a little while, I had to find off market deals. Because 2013, 14, the market has dried up.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
The banks dried up. So you couldn’t get a loan for a home. The banks were done. They wouldn’t loan you any credit.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
So I started doing a wholesale and for land contracts.

Brent Daniels:
Mm, okay.

Jorrey Ulston:
Because that was the best way to find deals was through seller financing.

Brent Daniels:
Right. Yeah. So explain that. What is a land contract?

Jorrey Ulston:
So a land contract is where lets say I have a house and I sell it to you.

Brent Daniels:
Yep.

Jorrey Ulston:
Land contract or contract for deed is the same exact thing. I sell you the house, let’s say $50,000. You give me 5,000 down.

Brent Daniels:
Okay.

Jorrey Ulston:
And I say, pay me 500 bucks for 10 years.

Brent Daniels:
Got it.

Jorrey Ulston:
At 10% interest.

Brent Daniels:
Yeah.

Jorrey Ulston:
So that’s when I became the bank. I realized how you can become the bank. It’s like a rental.

Brent Daniels:
So do you have to own these free and clear?

Jorrey Ulston:
Well, if you do a free and clear.

Brent Daniels:
Yeah.

Jorrey Ulston:
Or you can do a sub two. You can do a sub two, you can buy a house sub two.

Brent Daniels:
Yeah.

Jorrey Ulston:
And it’s actually the way that we actually do sort of financing with sub two is we sold a land contract because the deed doesn’t transfer until it’s paid off.

Brent Daniels:
Okay.

Jorrey Ulston:
Which is a difference. If you buy a house-

Brent Daniels:
Let’s take it one step [crosstalk 00:05:38]. You have a distressed property owner, right.

Jorrey Ulston:
Yeah.

Brent Daniels:
You approach them. And is it because they don’t have enough equity or they just want more for the property?

Jorrey Ulston:
Why do I?

Brent Daniels:
Why don’t you just give them a cash contract and just wholesale it?

Jorrey Ulston:
Got it. So it doesn’t matter what kind of seller I have.

Brent Daniels:
Okay.

Jorrey Ulston:
Free and clear.

Brent Daniels:
Yep.

Jorrey Ulston:
No equity. It doesn’t matter. I ask every seller if they are open to seller financing.

Brent Daniels:
Okay.

Jorrey Ulston:
Because that allows me to buy more deals without using my cash that I have on the side of use. Right?

Brent Daniels:
Sure.

Jorrey Ulston:
If I can get a seller to sell me their house with 5,000 down, right? Instead of paying them` 50 grand, I’m going to take that.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
So every seller I’ve talked to ask that question, right? It’s just a numbers game.

Brent Daniels:
So what are you specifically what do you ask them? I mean everybody’s [crosstalk 00:06:19]. What’s the secret combination of words that?

Jorrey Ulston:
So first thing is keywords where you’ll know if the seller wants to sell on seller financing.

Brent Daniels:
Okay.

Jorrey Ulston:
Right? So if you hear them say, “I’m tired of tenants.”

Brent Daniels:
Yep.

Jorrey Ulston:
Right? Not cashflow, but tenants. Right.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
Too many repairs or a big one is, “I’m going to sell a couple homes a year because I don’t want to pay a lot of taxes.”

Brent Daniels:
Right.

Jorrey Ulston:
Those are key words to me to say, “Oh, this is perfect for seller financing.” Because I can offer them away to still get monthly cashflow, right.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
To not have to pay a huge tax bill, right.

Brent Daniels:
Yep.

Jorrey Ulston:
Where they can still get the cash, but not actually manage the property.

Brent Daniels:
Right.

Jorrey Ulston:
So a lot of sellers and investors love getting cashflow. They just don’t have to manage the property.

Brent Daniels:
Yep.

Jorrey Ulston:
Right. So if I hear those keywords, now my next question will be, “Well, Hey, you know what if I show you a way that you can get some monthly income still, but we’ll actually own and manage the property, you’ll just become the bank.”

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
Right. And then I’ll… Oh I can be the-

Brent Daniels:
Everybody loves that.

Jorrey Ulston:
Yeah. So-

Brent Daniels:
Being the bank.

Jorrey Ulston:
That’s like…Well to me and I just did it. I do. I have a podcast on invest. We just did an episode a few weeks ago. I think new investors-

Brent Daniels:
Incredible podcast, Shut Up and Invest.

Jorrey Ulston:
Yes.

Brent Daniels:
Guys, definitely check it out. Yeah. If you’re feeling this. If you’re really loving what jorrey is saying, yeah.

Jorrey Ulston:
So I actually did an episode a few weeks ago where I said, “I think new investors should invest in seller finance notes before rentals.”

Brent Daniels:
Okay.

Jorrey Ulston:
Because what’s the main thing if you were a new investor? He buys a duplex or a single family house. He thinks he’s getting 250 bucks a month of cashflow. The furnace goes out, right?

Brent Daniels:
Yep.

Jorrey Ulston:
Then a leaky faucet. Right? End of the year, he made zero or negative cashflow.

Brent Daniels:
Right.

Jorrey Ulston:
Right. And then he hasn’t, he doesn’t have the preserves on the side to manage the property.

Brent Daniels:
Yep.

Jorrey Ulston:
Ends up losing the property.

Brent Daniels:
Yeah.

Jorrey Ulston:
Sells it for cheap. Never wants to do it again.

Brent Daniels:
Right.

Jorrey Ulston:
When you’re the bank, I get that same cashflow without any worries of fixing anything. Right.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
I don’t pay the insurance.

Brent Daniels:
Yep.

Jorrey Ulston:
I’m don’t pay the taxes. That homeowner, I sell the house to handles all that.

Brent Daniels:
Yep.

Jorrey Ulston:
I’m just like Chase. I get principal and interest per month.

Brent Daniels:
Yeah.

Jorrey Ulston:
You never called Chase the Wells Fargo to fix your roof. Right. You don’t even know who they are.

Brent Daniels:
Right.

Jorrey Ulston:
So I think new investors should actually look into notes first because I think it can help them last longer in the game.

Brent Daniels:
Okay. So, let’s break it down simply then. We have a distressed property owner.

Jorrey Ulston:
Yeah.

Brent Daniels:
You go, for whatever reason they’ve raised her hands through some lead generation, you’ve either called them, texted them, mail them. What’s your preferred?

Jorrey Ulston:
We do texts and direct mail.

Brent Daniels:
Okay. You get these calls coming in and they say, they want to sell you start pre-qualifying them a little bit. And you ask them if they’d be open to seller financing.

Jorrey Ulston:
Seller financing.

Brent Daniels:
If they are, but it’s still a smoking wholesale deal. What do you?

Jorrey Ulston:
So last two years I would have wholesale that deal. Right?

Brent Daniels:
Right.

Jorrey Ulston:
I was wholesaling everything.

Brent Daniels:
Right.

Jorrey Ulston:
About last year I changed my model, so now I probably wholesale 20% of what I get.

Brent Daniels:
Okay.

Jorrey Ulston:
We keep 80% and wholesale 20%.

Brent Daniels:
Incredible.

Jorrey Ulston:
Right.

Brent Daniels:
Yeah.

Jorrey Ulston:
So if it’s just a smoking deal, we just had one house, need a lot of work to it. Right.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
If it needs a lot of work, then I’ll try to wholesale it first.

Brent Daniels:
Right.

Jorrey Ulston:
Right. But I do seller finance my homes. I sell them on land contract that do need work because everything I sell on land contract is as.

Brent Daniels:
Mm-hmm (affirmative). Right.

Jorrey Ulston:
We don’t touch them.

Brent Daniels:
Right.

Jorrey Ulston:
But so nowadays it’s if that deal is smoking, smoking, needs a lot of work, I’ll probably wholesale it off. Because I have to still wholesale a couple of homes a month to keep the monthly income coming in.

Brent Daniels:
The monthly income. Right.

Jorrey Ulston:
Also.

Brent Daniels:
What’s your average wholesale deal that you make?

Jorrey Ulston:
About eight grand.

Brent Daniels:
Eight grand?

Jorrey Ulston:
Yeah.

Brent Daniels:
So you do a couple of them. You’re at 16 grand a month. You can live really well off that.

Jorrey Ulston:
Yeah I do a couple of those per month.

Brent Daniels:
Yeah.

Jorrey Ulston:
Ad then I get the down payments from what we settled land contract. That’s income.

Brent Daniels:
Wow.

Jorrey Ulston:
It’s not a security deposit. That’s income that comes into our account.

Brent Daniels:
So, we got a distress property. They say, “Yes, they’d be open to seller financing.” You go, you put it down into a deposit and you give a monthly amounts.

Jorrey Ulston:
Yes.

Brent Daniels:
Right. And now you own it. But the note, they hold the note or it’s a subject to situation.

Jorrey Ulston:
They hold the note.

Brent Daniels:
Okay. If you’re listening or watching or if you want to watch this, definitely check it out on Brent Daniel’s real estate, YouTube channel and put a face with a voice, but you’ve got this property, they’re ready. You own it now. But it needs repairs. It needs utilities on it. It needs all these things. What do you do?

Jorrey Ulston:
So every house that I get out I look at it here ways, right? So let’s say I get the house in the seller financing terms. I can then wholesale that. Right? You can wholesale seller financing terms.

Brent Daniels:
Uh-huh (affirmative).

Jorrey Ulston:
Let’s say, let’s say they said, “Jorrey, you can get it for five grand down. Right. The same thing that’s on our house, at 0% interest.”

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
I get, I just got one last week at 0% interest.

Brent Daniels:
Pace does them all the time.

Jorrey Ulston:
Yeah.

Brent Daniels:
Yeah.

Jorrey Ulston:
Pace does 0% interest, right?

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
I actually wholesaled that to another buyer for 75,000, $10,000 down.

Brent Daniels:
Mm-hmm (affirmative). Love it.

Jorrey Ulston:
10% interest.

Brent Daniels:
Yeah.

Jorrey Ulston:
Right.

Brent Daniels:
Yeah.

Jorrey Ulston:
Right. So, I wrapped it to another buyer. Right.

Brent Daniels:
I got it.

Jorrey Ulston:
So I stayed in the middle of that part. Right.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
Or I can wholesale it to you and say, “Hey, here’s the terms. Right. You pay me a 5,000 assignment fee. You get the property.”

Brent Daniels:
Yeah.

Jorrey Ulston:
Right. So if it needs a lot of work, a lot of work, I’ll either sell it to an investor.

Brent Daniels:
Yep.

Jorrey Ulston:
On seller financing while I actually be the bank.

Brent Daniels:
Yeah.

Jorrey Ulston:
Or I’ll just wholesale it to another investor with a fee.

Brent Daniels:
Got it.

Jorrey Ulston:
Right. But half of the homes that we sell in seller financing are to other investors, right?

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
Yeah. So these are homes in neighborhoods where the banks don’t loan under 50 grand.

Brent Daniels:
Right.

Jorrey Ulston:
Right. They don’t. Conventional financing, doesn’t cover some houses or some kind of repair. And also investors can only do so many conventional deals. Right.

Brent Daniels:
Yep.

Jorrey Ulston:
So a lot of our deals, we actually are the bank to other investors. We use our skills to tie it up and then we sell it to them on seller financing terms, right.

Brent Daniels:
Yeah.

Jorrey Ulston:
Right? And 10, 15 year terms and get all that cashflow.

Brent Daniels:
As long as the numbers work out.

Jorrey Ulston:
Yes.

Brent Daniels:
Now, remember every negotiation that you get in comes down to really three things, right? It comes down to price, terms and you. Right? I mean, it really is.

Jorrey Ulston:
[inaudible 00:11:57].

Brent Daniels:
Whether or not they trust you to get it done, but you can go in every, I mean, literally every house can be a deal.

Jorrey Ulston:
Yeah.

Brent Daniels:
If it’s either price or terms. I mean, if somebody wants a million dollars for their hundred thousand dollar house, you can do it.

Jorrey Ulston:
In the right terms.

Brent Daniels:
If it’s the right term, if it’s a thousand year loan and a few hundred dollars a month or something.

Jorrey Ulston:
Exactly.

Brent Daniels:
But I mean, you can really expand and really get, you can really do some exciting things with the terms, which it sounds like you’re doing terms

Jorrey Ulston:
That’s the key that your saying, terms. People look at price first always.

Brent Daniels:
Yeah.

Jorrey Ulston:
Terms is more important than price to me.

Brent Daniels:
Yep. Yeah.

Jorrey Ulston:
Right? Because the price, they might be stuck in a price that makes no sense for a wholesale deal.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
But if I can create a note with that, it makes sense for me, right. So when you’re doing some kind of creative financing, we probably closed double the deals of the average wholesaler, because they’re only looking at what can I wholesale it for?

Brent Daniels:
Right.

Jorrey Ulston:
There’s only one tool in their toolbox.

Brent Daniels:
Yep. Yeah. And that’s literally how I run my businesses is one tool in the toolbox. No, it really is. That’s why I love having these conversations and really trying to break it down. Not only for the audience, but for myself as well, because I think that it’s a powerful way to build wealth. First of all. And I think being the bank is the preferred position of really wealthy people. You know what I mean?

Jorrey Ulston:
Yes.

Brent Daniels:
Really, really individually wealthy people become the bank and just understand that that interest that you get year after year without the hassle, the return is so high without all of the risk and all of the hassle, really.

Jorrey Ulston:
Yeah.

Brent Daniels:
And that’s what it comes down to because you’ve got five kids.

Jorrey Ulston:
Five kids.

Brent Daniels:
You’re a football coach all fall for high school. I mean, you’ve got a full life. If you had, and you have 25 notes.

Jorrey Ulston:
Notes, yeah.

Brent Daniels:
That you own, that’s paying you now as opposed to 25 renters that could call you at a moment’s notice and tell you things are wrong with the plumbing or the roof or the windows or the landscaping, or you’re getting code violations because somebody is not doing things quick enough. Right?

Jorrey Ulston:
Yeah.

Brent Daniels:
And it gives you such an advantage to really live the life that you want because you’re the bank.

Jorrey Ulston:
Definitely.

Brent Daniels:
Interest works 24/7.

Jorrey Ulston:
And I live in Miami.

Brent Daniels:
Right.

Jorrey Ulston:
And my homes are not even in Miami. My homes are mostly in the Midwest. So when you’re the bank, let’s say, a lot of guys are in areas where they say the market’s too high to wholesale or is too high to rentals, let’s say California.

Brent Daniels:
Sure.Yeah.

Jorrey Ulston:
Well you could be in California and have notes across the country, right.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
Without have to worry about a management company. Now the risk is if they don’t pay, you have to foreclose, get the house back. Right. But you just do it all over again.

Brent Daniels:
Right.

Jorrey Ulston:
And that’s the risk, but you’re not worried about those phone calls and everything else. You can manage the notes. You can hire a servicing company, pay them 15 bucks a month for the notes.

Brent Daniels:
Yeah.

Jorrey Ulston:
To service your notes for you.

Brent Daniels:
Yeah. And so we’ve got the distress property. We’ve got the terms, you now own it.

Jorrey Ulston:
Mm-hmm (affirmative).

Brent Daniels:
Now, what do you do now? Now, you’re going to sell this to somebody else.

Jorrey Ulston:
Yes.

Brent Daniels:
Your` going to sell it to somebody that wants to live there or an investor or whatever. Okay.

Jorrey Ulston:
Yeah. So if I get the house now… Of course every house we get, we don’t get in seller financing terms. Right.

Brent Daniels:
Okay.

Jorrey Ulston:
So we either use seller financing terms or we use private money. We raise a lot of private money with private investors.

Brent Daniels:
Ah, okay.

Jorrey Ulston:
So, the guy who has 250 in a 401k.

Brent Daniels:
Yeah.

Jorrey Ulston:
Or a lady who has 50 grand in an account. We tell them how they can get interest on their money.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
More than than they get in the stock market.

Brent Daniels:
Right.

Jorrey Ulston:
Definitely more than the bank.

Brent Daniels:
Right.

Jorrey Ulston:
Because the bank pays zero interest right now.

Brent Daniels:
Right.

Jorrey Ulston:
If they loan it to us and then we show them our whole model.

Brent Daniels:
Right.

Jorrey Ulston:
We say, “Hey, you loan us for 10% interest, we go and buy these homes and then we sell them.”

Brent Daniels:
Yeah. Sorry.

Jorrey Ulston:
We sell them instead of financing.

Brent Daniels:
Yeah.

Jorrey Ulston:
To our end buyers.

Brent Daniels:
Yeah. Got it. And so they come in, so you’re either buying… So how do the numbers work out? I mean, you obviously have to, there has to be some…

Jorrey Ulston:
Formula.

Brent Daniels:
Some formula for, or equation that says, “Okay, this is what I can give the seller. This is what I have to pay my investor. This is what I can get from a seller.” Seller or a-

Jorrey Ulston:
Tenant buyer.

Brent Daniels:
A tenant buyer, right?

Jorrey Ulston:
Yep.

Brent Daniels:
Yeah. Right?

Jorrey Ulston:
Definitely, so-

Brent Daniels:
Just make sure that that’s all in line. And then what do you average per property on cashflow to you? You know what I mean? Is there a minimums?

Jorrey Ulston:
Yeah. So, there’s a minimum. We try to be 200 bucks per property, right.

Brent Daniels:
Got it. Awesome.

Jorrey Ulston:
And I’ll say right now, our cashflow is most of it’s around 200 bucks because we’re trying to pay down our debt.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
Right? If I get a house with my private investors funds is five years to pay back him. And I sell it to you in the 30 year term, I’m paying that debt off in five years.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
So I have 25 years of free cashflow.

Brent Daniels:
Awesome.

Jorrey Ulston:
I’m looking down the future right now.

Brent Daniels:
Yeah.

Jorrey Ulston:
I’m trying to build a portfolio of notes that are going to be free and clear cash flow in 30, 40, 50 years down the road.

Brent Daniels:
And you still do it… Do you do that with if it’s owner financing as well?

Jorrey Ulston:
Do I do the same thing?

Brent Daniels:
Yeah. I mean, trying to get rid of that owner financing as quick as possible?

Jorrey Ulston:
As fast as I can. Yeah. Last year we had two homes that we bought on owner financing and we actually were negative cash. We bought two from one lady.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
We were negative 80 bucks a month, we paid them off in a year.

Brent Daniels:
Wow.

Jorrey Ulston:
So now they’re free and clear.

Brent Daniels:
And now you’ve got somebody paying you on a 30 year mortgage.

Jorrey Ulston:
Yeah.

Brent Daniels:
And you’ve owned… it’s all done.

Jorrey Ulston:
We paid off. Mm-hmm (affirmative). Yeah.

Brent Daniels:
S how much cashflow does that end up having? Is that-

Jorrey Ulston:
So those two properties are actually two that we kept as rentals. Right?

Brent Daniels:
Yeah.

Jorrey Ulston:
So our cash flow right now on those is about, averages about a thousand bucks a month.

Brent Daniels:
Awesome.

Jorrey Ulston:
After we pay our taxes and such.

Brent Daniels:
And is that your main goal?

Jorrey Ulston:
Cashflow?

Brent Daniels:
Is passive cashflow the name of the game?

Jorrey Ulston:
Yeah, so-

Brent Daniels:
I mean, that’s like Robert Kiyosaki. We’re sitting there playing the cashflow game, trying to get all our passive to cover expenses because-

Jorrey Ulston:
Cashflow is the game because remember I was a realtor buyer’s agent.

Brent Daniels:
Yeah.

Jorrey Ulston:
So I know how much you have to go out there and hustle every day to get commissions.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
Even when you wholesale, you can be wholesaling the machine going, our machines go on full tilt, we’re getting calls come in from direct mail or texting them. The calls come in totally all the time. But wholesaling still is a hustle. Right.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
You got to go out there and keep doing it and keep doing it.

Brent Daniels:
Yeah.

Jorrey Ulston:
So I like you said, I got five kids. I coach football., I got a beautiful wife. I want to be able to just in a few years, be able to relax, know the cash flows coming in and wholesale when I want to, but not have to wholesale to pay all the bills.

Brent Daniels:
Yep. Right.

Jorrey Ulston:
So that’s my goal right now is cashflow.

Brent Daniels:
And how many markets are you in?

Jorrey Ulston:
Sow we’re in Michigan. So West Michigan. We’re in Pennsylvania, Pittsburgh, Harrisburg, Philly. We just picked a house up in Baltimore, right. We’re in Florida.

Brent Daniels:
Mm-hmm (affirmative). Yeah.

Jorrey Ulston:
But any market in America, the numbers make sense. Right?

Brent Daniels:
Yeah.

Jorrey Ulston:
We’ll look at the deal.

Brent Daniels:
Yeah.

Jorrey Ulston:
I’m looking at a deal in Kansas city right now. I’m looking at one in Ohio right now. There’s a lot of people who come to us and say, “Hey, I have a deal. Can you help me structure this on seller financing terms.” Right.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
And I’ll tell them how to structure it with the seller, how to structure it for a buyer and then we’ll buy the deal from them. Right. We’ll pay then they’ll wholesale us to deal.

Brent Daniels:
Yeah.

Jorrey Ulston:
And we’ll buy it from them.

Brent Daniels:
Yeah. Got it.

Jorrey Ulston:
Yeah. But we’re probably in four or five markets right now.

Brent Daniels:
How do you manage it? I mean, what does your company look like?

Jorrey Ulston:
Company?

Brent Daniels:
Is it just you? Is it you and…

Jorrey Ulston:
No, it’s not me. So I have, so main two markets are Michigan and Pennsylvania. Right.

Brent Daniels:
Right. Okay.

Jorrey Ulston:
So I have a partner in Michigan partner where we do the stuff 50/50 right. Then I have two other partners in Pennsylvania.

Brent Daniels:
Okay.

Jorrey Ulston:
And then we split it up right there.

Brent Daniels:
Yeah.

Jorrey Ulston:
So my whole thing is I’m in Miami. And I still answer a lot of phone calls. I still negotiate with the sellers. Right. I don’t talk to the seller until we’ve seen an appointment already has been set.

Brent Daniels:
Yeah.

Jorrey Ulston:
The pics are in and then I’ll call the seller and negotiate the deal. Right?

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
So I have three or four guys that text for me. They were actually my football players.

Brent Daniels:
Right. Yeah.

Jorrey Ulston:
My football players who graduated high school or still in high school.

Brent Daniels:
Smart, yeah.

Jorrey Ulston:
They can use batch lead stacker. Right.

Brent Daniels:
Yeah.

Jorrey Ulston:
They go in there, they text.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
It’s not hard for them to do. They text me full time all the time. Then I have a marketing guy, does all our marketing. Right. I’m usually the one closing the deal as far as negotiation.

Brent Daniels:
Yeah.

Jorrey Ulston:
And I have a partner who’s boots on the ground and he’s market.

Brent Daniels:
Awesome.

Jorrey Ulston:
So it’s a small company. It’s about between both markets probably about seven people.

Brent Daniels:
Right.

Jorrey Ulston:
I like to be lean, but yeah.

Brent Daniels:
Yeah. Me too. Yeah. Well, and I think that when you’re being the bank, when you’re going after that, and I think, well, I think what’s important here is, yes this is the Wholesaling Inc. Podcast. Yes. We talk about wholesaling but all wholesaling is, is sourcing real estate opportunities.

Jorrey Ulston:
Yes.

Brent Daniels:
Throw the word wholesaling away, guys. This is about sourcing opportunities. And what Jorrey is talking about is it’s not all about just doing cash deals, right.

Jorrey Ulston:
Yes.

Brent Daniels:
Right?

Jorrey Ulston:
It all starts with wholesaling, right. People say, “How do I get my leads?” I have market like I’m marketing for wholesale deals. Right?

Brent Daniels:
Right.

Jorrey Ulston:
There’s a couple of niche lists that I do to find these sort of finance buyers. There’s a list like the title land that batch has.

Brent Daniels:
Yeah.

Jorrey Ulston:
I’ve been hitting that list up for years because you find an investor who bought a house, let’s say in the eighties, right.

Brent Daniels:
Yep.

Jorrey Ulston:
He knows, or she knows seller financing.

Brent Daniels:
Yep.

Jorrey Ulston:
Interest rates were like 18%, 20% in the early eighties. Right. They were buying homes on terms.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
A lot of right now, might own five or 10 homes where they still want that cash flow, but they’re just tired of being a landlord, right.

Brent Daniels:
Of course.

Jorrey Ulston:
Those are the if you hit that list hard, you’re going to find a lot of seller finance deals in that list because those people are open to selling a house instead of financing terms.

Brent Daniels:
Yeah. And by the way you had mentioned, you can also, if you need the income, if you’re… A lot of people are starting this out they have a nine to five job or they’re in the military or their nurses or their fire people, or their police, they’re doing all these other jobs. Right.

Jorrey Ulston:
Mm-hmm (affirmative).

Brent Daniels:
And they want to replace their incomes. They need that income. You can still lock up these opportunities, put it in a nice little package and wholesale that.

Jorrey Ulston:
Wholesale it.

Brent Daniels:
To buy and hold investor.

Jorrey Ulston:
Yes. All day long.

Brent Daniels:
I mean, you could put all that in without putting any money in. You can have it all structured and looking pretty and boom. And I assume that’s what your podcast helps people kind of walk through.

Jorrey Ulston:
Yes. Our podcast we talk a lot about wholesaling.

Brent Daniels:
Yeah.

Jorrey Ulston:
Because I still wholesale.

Brent Daniels:
Right.

Jorrey Ulston:
It’s just not my number one option. Right.

Brent Daniels:
Sure. I get it.

Jorrey Ulston:
I still wholesale a lot of houses, right

Brent Daniels:
And you finance the block I’m sure. Right? I mean, it’s not wholesale the block.

Jorrey Ulston:
No, it’s finance the block. Yeah, so we talk about the wholesaling part in our podcast.

Brent Daniels:
Yeah.

Jorrey Ulston:
But we also talk about be your own bank.

Brent Daniels:
Yeah.

Jorrey Ulston:
Wee make a mission to try to show people how you can invest in homes with zero money out of your pocket.

Brent Daniels:
Love it.

Jorrey Ulston:
And create cashflow.

Brent Daniels:
This is anybody?

Jorrey Ulston:
Anybody. Right.

Brent Daniels:
Anybody

Jorrey Ulston:
Because think about it, these homes that I’m getting, that I’m seller financing I’m wholesaling it and being the bank in one deal.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
Because that down payment is still income.

Brent Daniels:
Right.

Jorrey Ulston:
So let’s say you do two or three deals a month where you get an average of $5,000 down.

Brent Daniels:
Yeah.

Jorrey Ulston:
Right. You’re making 15 grand income per month and you’re creating cashflow instantly by holding the note.

Brent Daniels:
Yeah.

Jorrey Ulston:
Right? So you can actually do, it’s the best of both worlds. If you ask me.

Brent Daniels:
I love it. Yeah. Just to mention some of the resources batchleads.io Use TTP code $1, you get 500 free texts. Definitely check it out. You use it.

Jorrey Ulston:
I use batch.

Brent Daniels:
I use it, [inaudible 00:22:40] uses it, Jamel [inaudible 00:22:41] uses it. The top people around the country use batch leads.io Code TTP. Phenomenal. So let me, let’s pull it back. Right.

Jorrey Ulston:
Yeah.

Brent Daniels:
Let’s talk about the first, can you remember your first wholesale deal?

Jorrey Ulston:
The first deal?

Brent Daniels:
Right?

Jorrey Ulston:
Yeah.

Brent Daniels:
Do you remember what the motivation of the seller was?

Jorrey Ulston:
So it’s funny that I got into wholesaling. I was somebody’s acquisition manager.

Brent Daniels:
Okay.

Jorrey Ulston:
That investor was from Arizona, from Phoenix.

Brent Daniels:
Yeah. Wow.

Jorrey Ulston:
And he wanted to wholesale in Michigan. Right?

Brent Daniels:
Okay.

Jorrey Ulston:
So this is what I’m still a realtor. And someone said, “Hey, you should have Jorrey be your acquisition manager, because he finds deals for us as investors all the time.”

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
So I actually partner with this guy, he was paying like 10% of the actual assignment fee to go out there and wholesale.

Brent Daniels:
Yeah.

Jorrey Ulston:
So the first deal we got, this guy just wanted to move to Northern Michigan.

Brent Daniels:
Yeah.

Jorrey Ulston:
Right. And it’s a crazy deal because his requirement was, he wanted 15 grand and an RV.

Brent Daniels:
Okay. Yes!

Jorrey Ulston:
And an RV. That’s… He had to have an RV.

Brent Daniels:
Okay.

Jorrey Ulston:
So I literally-

Brent Daniels:
That’s okay. Listen, that’s what he wanted. Either you can make something happen-

Jorrey Ulston:
Because he wanted to live in an RV. Right.

Brent Daniels:
Yeah.

Jorrey Ulston:
So, we locked the deal up because I knew I could sell this house for probably 30 grand.

Brent Daniels:
Okay.

Jorrey Ulston:
So the deal was locked up. The issue was finding the RV.

Brent Daniels:
Right.

Jorrey Ulston:
Because we had to go find an RV, buy an RV. I had to go pick this RV up, drive this RV to his house. And he lived on Winslow alleyway house.

Brent Daniels:
Yeah.

Jorrey Ulston:
So I’m driving this RV, the streets like this big down to his house. Give him the keys. We closed on the house. Give him the keys. Next day he packs the RV up, leaves. We wholesale the house for 30 grand. We made a $15,000 spread on my first deal.

Brent Daniels:
Yeah. $15,000?

Jorrey Ulston:
On the first deal we did.

Brent Daniels:
Oh. How much you pay? wait a second, he wanted 15.

Jorrey Ulston:
And we got the RV for 3,500 bucks.

Brent Daniels:
Oh, beautiful. So, 15. Ring that victory bell.

Jorrey Ulston:
Yes. That was the first deal. And then it just became easy.

Brent Daniels:
Yeah.

Jorrey Ulston:
Wholesaling, the key to Wholesaling is consistency. Right?

Brent Daniels:
Yeah. Of course.

Jorrey Ulston:
You have to have a marketing plan.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
You have to hit that plan consistently, that it’s not rocket science.

Brent Daniels:
Yeah.

Jorrey Ulston:
Just hit the plan. Hit the leads.

Brent Daniels:
Yeah.

Jorrey Ulston:
Bring the numbers in, right?

Brent Daniels:
Yeah. We talk about it. It comes down to three parts, right? Lead generation, conversion, exit strategy, right. Disposition. And you’re just talking about in this podcast. That’s why I thought it was so valuable to have you in here, which has been great is there’s different exit strategies that you can have. And don’t just throw away every lead because they don’t have equity or they don’t want to sell at the price that you want them to sell. There can be motivation there. You can still solve the problems of the sellers.

Jorrey Ulston:
Yeah.

Brent Daniels:
If you can get creative. And it just takes a little bit of change in your brain from cash only to doing these creative things.

Jorrey Ulston:
Exactly

Brent Daniels:
And then we’re starting to do it in my… just my fear honestly. And maybe you can help me get past this. But my fear is if my acquisition managers know other options, everything’s going to turn into those other options as opposed to, I mean, we average $27,000 a deal, you know what I mean?

Jorrey Ulston:
Yeah.

Brent Daniels:
These are nice deals we do and it just rolls and rolls. But I am certain that there’s opportunities that we’re missing out every single week. For sure.

Jorrey Ulston:
Well, because think about this way too. Right? I also wholesale notes. Right?

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
So not just wholesale to the cash buyer, but I can get a deal locked up. Right. That doesn’t make sense for wholesale deal.

Brent Daniels:
Right.

Jorrey Ulston:
But I can sell it to end land contract, tenant buyer. Right.

Brent Daniels:
Yeah.

Jorrey Ulston:
Create that note and then go find a note buyer.

Brent Daniels:
Yep.

Jorrey Ulston:
Because there’s note buyers out there. Right.

Brent Daniels:
Of course.

Jorrey Ulston:
And I’ll wholesale that deal to a note buyer who will pay me the assignment fee. Plus I keep the down payment.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
So there’s multiple options where if you look at these deals and maybe have one guy who does creative. Right.

Brent Daniels:
Yeah.

Jorrey Ulston:
He comes in on your team, he does create a stuff. Right.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
Because it is a skill that, it’s hard to teach. It’s hard to duplicate what I do.

Brent Daniels:
Yeah.

Jorrey Ulston:
Even in my company there’re guys with me every day still don’t know how to do all the terms and stuff the way we do it, right?

Brent Daniels:
Sure.

Jorrey Ulston:
But maybe if you have one person who’s like, “Hey, you’re the creative guy.” Go find-

Brent Daniels:
Yeah. I’ll just send them to you in Miami.

Jorrey Ulston:
You got to pay to-

Brent Daniels:
Not during football season, Yeah. Not during… yeah.

Jorrey Ulston:
Yeah. From now to November.

Brent Daniels:
Yeah.

Jorrey Ulston:
[inaudible 00:26:45].

Brent Daniels:
That’s awesome. Well, how do people get ahold of you? I mean, people are going to hear this. They’re going to resonate with you. How do they get ahold of you?

Jorrey Ulston:
So, Instagram, it’s The Ulston group. So the-

Brent Daniels:
Spell Ulston.

Jorrey Ulston:
The U L S T O N group.

Brent Daniels:
Okay.

Jorrey Ulston:
Then on Facebook, Jorrey Ulston. And we have a Facebook group Shut Up and Invest that we talk a lot about this concept in our group.

Brent Daniels:
Awesome.

Jorrey Ulston:
We have a YouTube channel Shut Up and Invest too. And then our podcast is on all the audio platforms and on YouTube.

Brent Daniels:
Yeah. Awesome. And then give some advice to somebody just brand new. They’ve never done a deal. Whether it be creative, whether it be wholesaling, what advice would you give them to just start?

Jorrey Ulston:
So sign up for batch leads.

Brent Daniels:
Yeah. Right.

Jorrey Ulston:
Really get a list.

Brent Daniels:
Yeah.

Jorrey Ulston:
Right? Get a list, get a good list. Don’t pay for a huge list. That’s going to cost you 500 bucks, a 1,000 bucks a skip trace, right.

Brent Daniels:
Yeah.

Jorrey Ulston:
Go after those tired landlords. Right.

Brent Daniels:
Yeah.

Jorrey Ulston:
If you get that list, text that list.

Brent Daniels:
You can pull it right from bath leads now.

Jorrey Ulston:
[crosstalk 00:27:39] Yep. Be consistent.

Brent Daniels:
Yeah.

Jorrey Ulston:
But I see a lot of people who get discouraged just like, “Oh, I haven’t got a deal yet.” And it’s a month.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
Do you know how long it takes us to get this machine going and get deals. Right.

Brent Daniels:
Mm-hmm (affirmative).

Jorrey Ulston:
So don’t expect to get a deal right away. Right?

Brent Daniels:
Yeah.

Jorrey Ulston:
You might.. I got to deal with the first week I did it. Right.

Brent Daniels:
Yeah.

Jorrey Ulston:
But you might not. So, but don’t be discouraged.

Brent Daniels:
Right.

Jorrey Ulston:
Just keep working the plan and the deals will come. Right.

Brent Daniels:
Yeah.

Jorrey Ulston:
There are so many deals out there right?

Brent Daniels:
Yep.

Jorrey Ulston:
We’ve done more deals during the last coronavirus pandemic. We double our income during this pandemic.

Brent Daniels:
Same with us, yeah.

Jorrey Ulston:
The deals are there just be consistent. Right.

Brent Daniels:
Yeah.

Jorrey Ulston:
And believe in yourself and you can do it.

Brent Daniels:
Awesome. Yeah. And what I would say is I think it’s really important to understand that if you can understand that you can get energy and enthusiasm and you can get a lot of positivity out of the process. Not necessarily just the check, then you’re unstoppable, right?

Jorrey Ulston:
Yeah.

Brent Daniels:
If it energizes you, if it keeps you going, if it just you get excited, now that excitement bounces all around.

Jorrey Ulston:
Yeah.

Brent Daniels:
And now everybody’s getting excited and the really special things happen. And it wasn’t, it had nothing to do with the end result, had to do with the process of getting to the process.

Jorrey Ulston:
Yeah. I love the process.

Brent Daniels:
Yeah.

Jorrey Ulston:
It’s like a game, a sport, a competition.

Brent Daniels:
Yeah.

Jorrey Ulston:
This is really a competition to me. I love the whole process. I lose some, you win some, right. But I love just doing all the steps.

Brent Daniels:
Yeah.

Jorrey Ulston:
And I think that’s what happens. Some people don’t like, they just want the money.

Brent Daniels:
Yep.

Jorrey Ulston:
And if you’re in this business it’s way more than about the money.

Brent Daniels:
Yeah.

Jorrey Ulston:
Literally we’re solving people’s problems. I had a text last week from a lady [inaudible 00:29:12] She literally in her texts was just like, “Thank you so much. You don’t know how much of help you were to me.” That’s what we’re doing. We’re solving complex problems and we’re dealing with people, right?

Brent Daniels:
Yeah.

Jorrey Ulston:
It’s not the house or the price we’re dealing with people. Right?

Brent Daniels:
Yeah.

Jorrey Ulston:
So you got to love people and love problems and solving them. And if you don’t hire someone who does.

Brent Daniels:
Yeah.

Jorrey Ulston:
Because if you don’t like doing that, you’re not going to succeed as a business.

Brent Daniels:
That’s it. Love it. Thank you. Thank you for being on here.

Jorrey Ulston:
Awesome, man.

Brent Daniels:
Everybody out there listening, thank you so much. If your mind is racing right now, definitely check out, Shut Up and Invest.

Jorrey Ulston:
Shut Up and Invest.

Brent Daniels:
Shut Up and Invest, check that out the podcast and all the groups and everything join that. And if you’re interested in joining the most proactive group in real estate, investing it is the TTP family. It is the TTP program. Go to wholesalinginc.com/TTP. That’s wholesalinginc.com/TTP. Scroll down, check it out. If it feels good in your gut, sign up for a call. I look forward to working with you personally. Thank you. It was awesome.

Jorrey Ulston:
That was good, man. Awesome.

Brent Daniels:
From Miami to Phoenix, here we go.

Jorrey Ulston:
Yes.

Brent Daniels:
And everybody out there, I encourage you always to talk to people. See you, love you, bye.

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