Do you want to escape corporate America? Then you may want to try out wholesaling in real estate. The show’s guest today is Jay Donaldson, a full-time professional wholesaler from Texas who has done eight deals for over $200K! Aside from wholesaling, his other passion is making incredible watches and timepieces. Jay talks with Brent Daniels about how getting laid off from his corporate job was a blessing in disguise. Join in the conversation and listen to Jay’s wholesaling experience and how he made a massive deal that he just closed! If you want to escape corporate America and try out real estate, this episode’s for you. Don’t miss it!
How to Escape Corporate America and do over $200k in Real Estate Wholesale Deals
We have Jay Donaldson today in the show. He is a full-time professional wholesaler from Texas who has done eight deals for over $200K!
Let me set the table on this conversation with this. This full-time professional wholesaler out of Fort Worth, Texas, has done eight deals for over $200,000 and is going to break down on this podcast a massive deal that he closed. He’s full-time but his other passion is he makes incredible watches and timepieces. It is my pleasure to introduce you to the Wholesaling Inc. Podcast and to the Rhino Tribe, Jay Donaldson. Jay, say hello to everybody.
How are you all doing? Thanks for having me on, Brent.
I’m excited to have you on. I’ve been trying to get you on. To open this up, one of the first texts that Jay sent me was a $26,000 deal that he had closed. He had sent me a screenshot of the deposit in his bank account and you were happy with it. You were incredibly overwhelmed with the success that you were having. I was excited for you. You’ve taken it to the next level. I love when people share that with me. More importantly, you didn’t stop there but you kept building your business. I love that and I’m happy to introduce everybody to you and learn more about you. Tell everybody about you and how you found this crazy wild business called Wholesaling Real Estate.
I was working in corporate. I got my watch line, Don Piece. I would be working but I would get done with my work so quickly in corporate so I would have some downtime. I would be on YouTube and googling Facebook ads and how to set those up and whatnot. They always got the ads on YouTube. A guy, his name was Phil something, popped up and he’s talking about real estate investing. The next thing I know, I’m two weeks in watching his videos. He then brings up wholesaling. The next thing I know, I’m on your channel. You and Max Maxwell are the two I watched and you stuck with me. I started trying it on my own, applying some of the stuff that you all were saying. I know you always say, “Take massive, imperfect action.” That’s what I started doing.
I was working Monday through Friday at the time. I didn’t have a lot of time during the week. I would wake up at 4:00 or 5:00 AM and I’d go driving dollars. As you know, Dallas Fort Worth is huge. I would have to drive 30 minutes to get to a neighborhood that might have the houses I was looking for. I would leave at 4:30 AM and get to those areas at 5:00 AM when the daylight is coming up. I would drive for dollars and do that. I would also put up signs. I then got some calls from the city a couple of times saying, “You need to come and pick these signs up. Otherwise, we’re going to find you and whatnot.” I did that for maybe four months on my own. I was like, “If I’m going to get serious about this, I need to find a mentor.”
Also, during that process, my job gave us the opportunity to either relocate or be laid off. I knew I didn’t want to go anywhere else. I was like, “I’m going to bet on myself. I already have my watch line. This real estate wholesaling thing seems promising.” I know I need a structure. I talked to Steve Trang and he blessed me. He let me talk to him on Instagram and whatnot. He hopped on the phone with me and I’m like, “Steve, do you know any mentors that you could recommend out?”
He told me he wasn’t doing any mentoring at the time. He’s like, “Try Brent Daniels. He’s legit. He does this on YouTube and Instagram.” Even on social media, you see a lot of guys who say they’re doing this and doing that. I always want to vet who I’m going to do business with or put my money into. I talked to Wholesaling Inc. and got all set up at the call and I met you. From there, I signed up for TTP. It gave me the structure I was looking for. I wasn’t doing this and doing that. It gave me a structure and proven formula to lock into.
Did you always have that entrepreneurial spirit? You’ve got a watch brand and a corporate job. I assume that you were doing pretty well. You probably could have stayed there or at least stayed in the industry. Why not take the cushy job with all the benefits and everything there? Did you always have that one foot out the door thought in your head, “As soon as I find something to replace my job, I’m going to take it.”
That’s exactly what it was. I grew up around entrepreneurs my whole life. It was one of the things where I was learning already before I became an entrepreneur but I was waiting for something to stick. My watch line was still in the beginning phases. When you’re building something like that, it takes out a lot of time. In a corporate job, we would have daily huddles at 9:00 AM every day. We always had an icebreaker question. We’d always come along with a question and it’d be like, “Where do you see yourself five years from now? What’s your dream job?” Mine would always include entrepreneurship and they would all look at me crazy but I knew that’s what I was destined for and that’s what I wanted to do. It all came together when we got laid off. It was a blessing in disguise, honestly.
Isn’t that wild though? This is what’s crazy because we hang out with other people that are like us, that have that fire inside us to build our own business, but most people don’t have that. Honestly, everybody reading this has that because they wouldn’t be reading this if they didn’t. It’s rare. I go into corporate settings, whether it’s going to visit my dad at his corporate job, my mom, or friends that I grew up with in high school and everything.
You see people and they like their little schedule, their little routine, and they like being cared for and getting the benefits of having a job. They are trapped in that mindset, in that box. It’s strange to me. I don’t get it. I can’t imagine how you were feeling sitting there and talking about starting your own business and then looking at you with frost in their eyes. They’re glossed over and they have no idea what you’re talking about. That’s crazy, isn’t it?
Yes. It was strange when I’m in that situation with them because they’re like, “Why would you want to do that?” Part of it is it gives you false security. Jobs give you false security. That was the second time I went through relocation or a layoff situation. I had already seen that. That’s not any security. I’m more secure going in on myself than depending on the employer. There’s no knock on anybody who works from 9:00 to 5:00. I realized at that moment that’s not for me.
It’s not a knock at all. People are built differently. Either we’re born this way or something happened in our lives that flip the switch and we’re like, “I don’t want people to tell me where to go, what to do, how to make income, and provide value in the world. What is that?” It’s crazy. I’m going off the rails at that, but it’s interesting. A lot of people are stuck in those situations and looking for the opportunity to get out. I want you to focus on Jay’s story because this is going to show you the actions that he took to be able to get out of that situation. Also, to be able to be a successful business owner and not have to work that 9:00 to 5:00 and close that chapter out in his life and move on to this new open world where you’re running this thing for yourself and your family.
Take massive, imperfect action.
Talk to me about your business. Is it you and VAs? Do you have an acquisition? Who is part of your company?
It’s me and I have two cold callers. I went through a bunch of cold callers, to be honest. I’m sure every wholesaler can relate.
What happens is you go to these sites like Upwork and whatnot and you try to find one. They say they’re experienced in this and that and then you get them on the phone or you’re trying to train them. It’s not working. You have to part ways. I have one cold caller. He’s been with me for over a year. I got one who somehow found me. He shot me an email. He’s a rockstar. He’s good. He sounds American. They’re both based in the Philippines but they both speak pretty good English. That new one is a rockstar. I’ve done skip tracing. I use either Batch or I have a VA who does some skip tracing for me. I still work the phones. There are certain lists like the probate list. I call them the probate list because that’s a hotlist. I’ll call on that one. I do all the follow-ups and also the appointments. My cold caller is calling off the other list that we target.
For some reference for everybody out there, BatchSkipTracing.com is where you get accurate phone numbers for the properties you’re trying to get ahold of. You said that you have a VA pulling numbers, too. Do they pull the numbers that don’t come back from Batch?
It’s either that, instincts. If it’s a tire landlord list, I might have them do it because it’s a list that everyone calls on. It’s a little bit cheaper on that list. I have lists that I’m spending good money on because when they hit, they hit. The pre-foreclosure and tire landlords are lists that every new host calls on.
Not only that, real estate agents call on them too. Phoenix has 48,000 realtors. They all call those pre-foreclosures because they want to try to get the listing before the property goes to foreclosure. A little tip for everybody that’s out there, if you’re going after pre-foreclosures, it’s going to be a fistfight. You might be better served to go to the actual door because after the first week and they’ve had 1,500 phone calls, people stop answering the phone. That’s a little tip to get in front of them or potentially text them. Are you cold calling, texting, mailing, internet leads? What are you doing?
Cold calling. I do this for my Facebook marketing. I did text messaging in the past. I didn’t have much success with that. I know the laws are iffy with that. I was doing Facebook ads as well but I drew back away from that for a little bit because I was getting a bunch of fake leads almost. I still haven’t figured out a way to filter those out more because it starts adding up once you get hit a bazillion times.
I don’t know anybody that has that dialed in. Everybody that says they have that dialed in, you find out it’s not that refined. It’s a lot easier and a lot more effective to get the phone numbers, pick up the phone, and make the calls. How many hours of calls are you getting out of your VAs in the Philippines a week?
One call is fifteen hours a week. They both call fifteen hours. We have 30 hours. I call about ten hours a week, too.
You’re still doing it.
I still call on the probate list and eviction list.
Each market is a little bit different when you’re going after probates and the eviction list. Are you getting them directly from the county? Are you finding them somewhere else?
Texas is good because you can go to the county’s website and pull them. I’m pulling them that way. I have a VA that pulls my eviction one but I’ll pull the probate ones because they’re a little bit harder to get all the information together.
Let me tell you what’s going on in my mind. You went in, you found out how to find that information on some website, and then you taught them how to do it regularly.
What happened was the day I got laid off from my job, we left early. It was noon. I drove to the courthouse and the guy in the courthouse taught me how to do it because they have computers in the county courthouse. He showed me how to do it all. I was doing it for a while. It was after I came out and visited, he’s tuning in like, “You got to cut down your manual stuff.” I would type it all in step-by-step in a Word document and I walked the VA through it. That’s how he learned how to pull it.
That’s what is important. For anybody, any of these tedious little processes that you’re getting from public information or you’re pulling certain lists and scrubbing, any of these things that take a lot of your time. You can screen record your efforts on your computer. You can make it into a little video and send it to a virtual assistant that gets paid for it. What do you pay your virtual assistant?
It’s $20 a week to do that. He does other stuff, too.
I always like sending them the video because it shows exactly what it is. I use ScreenFlow. It was $10 at some point. You could do free ones on a Mac or something. You can send them the video and then, all of a sudden, they can start doing that process. For $20, he gets eviction properties that are hot off the press. It’s smart, Jay. You could tell that you’re thinking about your approach in all this, the day you’re done with your corporate job and you go to the courthouse. That’s a beautiful dichotomy of two different lives blending and then one’s out. The next one starts immediately. I love it.
Some people were talking about taking vacations and doing this right after and I was like, “I’ve got to get to work. There’s no playtime.”
You’ve had great success, over $200,000. You’re closing deals. You close bigger deals. Your first deal was this one for $26,000. Let’s break down this massive deal that you closed. I was excited when you texted me this. As always, I want to know what list it came from, how you got it, what marketing or prospecting that you did, and then we’ll break down the four pillars.
This one was a driver for dollars lady. I cold called her and the lady was standoffish when I called her. I asked her if she had any interest in selling and she’s like, “How did you get my number?” I’m like, “I own a property in the area. I was driving around the neighborhood. I’ve seen your property and I was reaching out to a couple of owners in the area to see if you might have any interest in selling.” She let her guard down a little bit and she told me she did have some interest in selling but it all depended upon the way her appointment went the following week. I was like, “Okay.”
I was asking her questions because I didn’t want to come out and say, “What’s the appointment for?” She had opened up to me and she had told me she had been battling cancer in the past. She had thought it came back and her appointment will confirm it. She said that if she got it again, she wanted to move to Alaska. She would have to sell her property here in Texas. I followed up with her the following Friday and she was like, “The appointment went as I thought it would. I have to move but I need you to follow up with me next Thursday.”
I followed up next Thursday. We’re talking and she’s rushing me off the phone but I kept trying to keep her on the phone. I knew the more I talk to her, the more she would open up to me. I forget how we even broke the ice but we got to the point and she told me to come over and check out the property. I check out the property and she’s like, “I’ve been working with another investor and he offered me.” He offered her $101,000 but he wasn’t budging on the number. She was like, “I figured I’ll have you come out.” She told me that as soon as I got there.
I’m walking the property already and I had already run comps and whatnot. I knew my max offer was $115,000 on this one. I’m walking the property and then I get done walking it. It had a heavy smoke scent. I’m trying to get in and out. She’s a smoker. I’m trying to leave. I’m like, “I could probably do $105,000 for it.” I’m thinking that she’s still going to be like, “No. That’s not what I was looking for.” She had told me previously that she wanted $115,000. She was like, “Have a seat.” I sat down and we talked for about 30 minutes. She was ready to sign. I had the contract with me, thankfully. She signed that day. We got the ball rolling. We didn’t close for 45 days because she’s moving from Texas to Alaska. She needed time to get her move situated and get her doctors and stuff lined up. That’s the gist of how I got that one.
Once you cross from faith to fact, it changes you.
Besides the smoke smell in the house, what was the condition?
It was full of cosmetics. The whole HVAC system was replaced. The roof was replaced. It has some slight foundation issues. Everything at Texas pretty much has foundation issues. It was nothing major. If she listed the house, she probably could have got $160,000 for her house.
What was her timeline?
She wanted a couple of months to move. It was about 60 days. She ended up moving out in 45 days.
Every time that you’re talking to a motivated seller, when you’re talking to a distressed property owner, there are four things that you want to discover so that you understand. We call them the four pillars of pre-qualifying and that is the condition of the property. This one was cosmetic. It needed a little bit of work. For the most part, it was livable. Somebody could have easily bought it and lived in it. The timeline to sell is the second pillar, which looked like she was about 60 days after her doctor’s appointment and meeting with you. It turned into 45 days. Her motivation was her diagnosis and moving to Alaska for whatever reason. Was it for the family?
Her family was there.
Her family is in Alaska. She’s moving. She wants to be close to the family. The price that you settled on was?
She’s sitting there and she goes, “Jay, I want $115,000.” You go over there and you go, “The best I can do is $105,000.” How did you get it down to $10,000? Give us the juice.
She told me she didn’t want to deal with any more investors aside from the previous guy and me. I had already known in my head, I’m like, “I can do $115,000.” You always tell us to anchor low. When I said $105,000, I was like, “Shut up.” I heard you. You said, “Say the number and get silent.” That’s what I did. She’s like, “I can do $105,000.” I was expecting her to come back and say $107,000, $110,000, or something like that but she said, “I can do it.”
You locked it up for $105,000 and then you put it out to your cash buyers.
I flipped this one. I had thought about putting it out for the cash buyers, but then I was looking at it and I could see there were holes. It’ll do better hoteling or flipping it. It didn’t need much work. If I wholesaled it, I probably could have made $20,000 on this assignment. I did the math. They have hard money lenders and they’ll fund up to 75% of the transaction, the post ARV. They’ll cover up to 100% and put 75% on the ARV. I knew that this one would fit in the formula because I got it locked up low.
For everybody out there, AVR is the After Repair Value. Once it’s looking beautiful, what do you think it would sell for?
At that time, I was thinking $190,000.
A lender in his market will give 75% of the $190,000 if they feel solid with the deal. Did they give you 100% of the purchase? Did they give you $105,000?
This one ended up appraising $205,000 of the ARV. They funded it 100%. I only had to bring $3,000 for closing.
Do you want to give a shout-out to that lender in case somebody wants to use them?
It’s Longhorn Investments in Texas.
They’ll find it. What a great resource. That’s phenomenal. I love it. They gave you 100% of the purchase price and you closed it. How much did you put into the property?
The rehab was $30,000.
You went in and you made it look beautiful.
Yes. It was nice. I listed it on Airbnb for a little bit, too. It did well on there but I decided that I want to build my business some more. I went ahead and sold it before I refi. It was probably one of the nicest ones. I’m a freak when it comes to this real estate stuff. I’m addicted. I’m always on Realtor.com looking at other properties and looking at comps. It was the best house, in my opinion, in that neighborhood.
With the closing, it costs about $140,000. Does that sound about right?
Yes. I sold it for $215,000.
First of all, people that are reading this for the first time are like, “He got a house for $105,000 that will appraise once it’s fixed up for $205,000 and he sold it for $215,000. How is that possible? That’s not possible. How do you do it?” This is how you do it, ladies and gentlemen, you get a list and you drive for dollars. Do you have an app for that? Are you using an app or are you writing it down?
I have an app. I’ve used PropStream. They have the driver for dollars thing within their app.
You can’t lose when you have developed a routine, stick to it, and stay consistent.
That comes complimentary with PropStream. You can get that at TTPData.com. Check that out. With their app, you can drive for dollars on there. You drive for dollars. You find ugly houses. You get the phone number for those houses. You call them up like Jay and you ask them if they would be interested in an offer. You get past the first keep you at arms distance stiff-arming invisible force field that they put around themselves. You chip away at that to where you can have a conversation. She lets you in on her health or her motivation for selling that property. This is something that everybody has to get into their brains. People will trade equity in their houses for speed and convenience. It’s not always about the money. This woman sold her house for $105,000. Jay put in $30,000 at $140,000 and sold it for $215,000. After all the costs are taken out, what did you net?
It was $68,000 or $67,000. It was $60,000 something.
Do you want to know for sure? I’ll pull it up right here, Jay, because you sent me. It’s $65,844. Let me take a moment really quick.
I’ve been waiting for that.
How did that feel to get that cheque, put that into your account, open up that banking app on your phone or your computer looking at that, and be like, “That is in my account right now.”
It felt great. It felt surreal, honestly. It was like, “It happened.” After we closed, it took the wiring the next day to come through. When it finally came, I was like, “That’s crazy.”
It’s one of the best feelings. It’s one of the best shots of dopamine that you can have. I want everybody reading to have that experience because it truly does change your perspective on what is available in this world and what is possible? When you see that, tell me, Jay, you’re not like, “I bet I could do $100,000.”
That’s the good thing. I was happy when I got that. My first deal was $26,000 and I was happy that I got it at $26,000. In hindsight, if it would have been $2,500, I would have been satisfied with getting $2,500 each time. Now that it was high, you stamped the mark. It’s like, “I want that. I want more next time.”
Once you know that you can do it, once you cross that bridge from faith to fact, it changes you. It changes your brain chemistry. It changes the way that you think. It changes the way that you view the world. You have different eyes that you’re viewing the world through because you know that it’s possible. Once it’s possible, then why not repeat it and repeat it? I’m excited for you. That is outstanding.
Some notes that I took here, I thought that it was smart for you to not take the quick payday and to slow it down a little bit, fix it up, and get the bigger payday almost three times as much as you estimated you would get if you wholesaled it. That was phenomenal. If you have the opportunity to do that in your market, you need to look at it. You need to look at making bigger deals as opposed to faster money.
Anything I wholesale, I’ve been tracking it to see what the investor makes on it. In my first deal, I got $26,000 but I’ve seen that the investor turned around. He made somewhere in between $80,000 and $100,000. I was sitting back and I’m like, “Wow.” I wholesaled my second deal for $15,000 and that investor turned around and made $50,000. I’m like, “It’s time for me to reevaluate everything.” I know some whole sellers who say, “I don’t want to wait three months to get paid. If you’ve got to wait three months to make triple the amount, then why not wait?”
Not only does it make sense but it gives you more options to look at. The beautiful thing about finding discounted property and sourcing your deal is that you have these options, which is fantastic. Before we wrap this thing up, give people advice on what to do as they’re getting started.
You’ve got to develop a routine and stick to the routine and stay consistent. I don’t think you can lose with that. When I was starting, it was tough. Even after I joined TTP, I was getting deals locked up but I was locking them up too high or they were having liens on them. They weren’t closing. It took me six months to get my first deal. When you dissected my business, you were like, “You’re doing too much tedious tasks.” At that point, my business was crazy because I was trying hard to get my first bill. I had 100 things going at one time. Joining TTP helped me focus, zone in, and get me a routine and a formula for success. The key is developing a formula, sticking to it, staying consistent, and keeping your eyes on your paper too. I know a lot of people get caught up with the cheques and posting on social media. You got to focus on yourself and stay consistent and you can’t lose.
Comparison is the thief of joy. Every date night that I go out with my wife, I wear that gold watch from Don Piece, from your collection. I love it. I don’t wear it on a daily basis because I’ll beat it up too much. I’m too crazy. On date nights, I throw that on and I love it. I feel great about it. Is it DonPiece.com?
Yes. I’ll add the code TTP on there. Use TTP and knock 20% off, Brent Daniels.
We’re getting discounts on premium Swiss made watches. Congratulations, Jay, on your incredible story. Thank you for giving us the inspiration. Thank you for expanding what we believe can happen in this business. It’s important that people know that they don’t need to be trapped. You can have one foot out. If you have that brain that’s wired differently like Jay and me, then you’re home. You found it. It’s wholesaling real estate and it can change your life. Thank you, Jay.
Everybody out there, if you are interested in joining the most proactive group in real estate investing, it is the TTP Program. It is the TTP family. Join Jay. Join the others. Join the best and most proactive group at WholesalingInc.com/TTP. Check out what it’s about. Check out all the testimonials. You’re going to have to scroll for a while but if it feels good in your gut, sign up for a call. I look forward to working with you personally. That’s it, Jay. You crushed it. Before you go, how do people get a hold of you besides your website?
I’m on Instagram. My property one is @PropertyDons. Also, I have a personal Instagram, @ElJefe_Don. That’s also my name on Twitter. You can find me on those two. My Facebook is Jay Donaldson if you want to find me on there. I’m pretty active on every social site.
Reach out to him. He’s in Fort Worth. Connect with him and squad up. That is the show. As always, I encourage everybody to go out there and talk to people. Until next time, I love you guys.
- Don Piece
- Longhorn Investments
- @PropertyDons – Instagram
- @ElJefe_Don – Instagram
- Twitter – Jay Don
- Jay Donaldson – Facebook
- Max Maxwell – YouTube
About Brent Daniels
Brent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…
Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!
Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…
A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!