Wholesaling Made Easy: Jordan Lee's Painless Path to Success
Yo, we just had a rad convo with Jordan Lee, CEO of Beast Real Estate, all about how to make wholesaling real estate a total breeze instead of a painful grind. Seriously, if you’re diving into the real estate game, he’s got some killer tips, like teaming up with a partner to avoid common rookie mistakes. We chatted about how learning from folks who’ve been in the trenches can save you from a world of hurt—trust me, you don’t wanna go solo on this one! Plus, we dove into some wild stories about family, investing, and even a bit of wrestling nostalgia. If you’re looking to level up your real estate hustle and snag some freedom in your life, this episode’s got the goods!
Why Partnering Is Key to Wholesaling Success
Visit https://www.paynelessflipping.com to learn how to do real estate deals the payneless way!
Jumping right into it, we had the awesome Jordan Lee from Beast Real Estate on the Painless Wholesaling podcast, and let me tell ya, it was a goldmine of wisdom! Jordan's all about making wholesaling real estate feel like a walk in the park instead of a marathon through quicksand. He shared his journey, and boy, did it hit home! He got into real estate not knowing a whole lot and learned the hard way. But that grind turned into gold, and now he’s all about partnering up with folks to make the ride smoother. You know what they say, teamwork makes the dream work, right? He stressed the importance of finding that perfect partner who complements your skills. Why struggle alone when you can ride the wave with someone who’s got your back?
We also dove deep into his personal story. Growing up in a competitive family with six siblings, Jordan learned early on that family is everything. He’s got two kids and another on the way, and he’s super passionate about ensuring they have opportunities he didn’t. It’s not just about making bank but creating a lifestyle that lets him spend time with his fam and enjoy life. We chatted about how real estate gives him the freedom to do just that, which is pretty rad. Oh, and he let us in on some juicy tips about using real estate to build wealth and avoid those pesky taxes with 1031 exchanges. So if you’re looking to dive into real estate or just want to learn how to make life easier, this episode is a must-listen!
Takeaways:
- Wholesaling doesn't have to be a struggle; you can learn the painless way.
- Finding a solid partner when starting in real estate can save you tons of headaches.
- Having a diverse team with varying strengths leads to better business outcomes, so mix it up!
- Investing in real estate offers great tax benefits through methods like 1031 exchanges.
- Real estate can provide financial freedom, allowing you to prioritize family and experiences over material stuff.
- It's crucial to teach your kids the value of hard work instead of just handing them money.
Companies mentioned in this episode:
- Beast Real Estate
- Vivint
Transcript
We are live right now on the Painless Wholesaling podcast and we have Jordan Lee, the CEO of Beast Real Estate.
Speaker A:Guys, we.
Speaker A:This podcast is the Painless Wholesaling podcast where we show you that wholesaling does not have to be painful.
Speaker A:It can be painless if you do it the painless way.
Speaker A:And I bring on expert guests that show us how to make doing real estate painless.
Speaker A:So it's not, it's not hard because you can learn from their experience.
Speaker A:So we have Jordan Lee.
Speaker A:He's going to tell us a little bit about his story so we can learn how to not struggle, like what you're going to struggle with if you just try to figure it out on your own.
Speaker A:Learn from his experience.
Speaker A:What's up, Jordan?
Speaker B:How you doing, Nathan?
Speaker B:I'm excited.
Speaker B:To be honest with you, man.
Speaker B:I've seen you everywhere.
Speaker B:You're.
Speaker B:You're blowing up.
Speaker B:It's fun to watch it progression.
Speaker A:Appreciate it, man.
Speaker A:Would you, Would you agree, Jordan?
Speaker A:Can real estate be painful?
Speaker A:Like, if you don't know what you're doing?
Speaker B:Yeah.
Speaker B:And that's why I, I think the first piece of advice that I give to anybody is take a partner on.
Speaker B:Like, if I was 18, getting into real estate, even 17, like take a partner on for a couple months right before you turn 18, and it's insane.
Speaker B:The amount of knowledge that you can get from partnering with people like you, me, or people that have been in the industry for 10 plus years.
Speaker A:Is that, is that how you started, Bro brother, with a partner or did you just go by yourself?
Speaker B:I did it the wrong way.
Speaker B:Yeah.
Speaker B:I don't by myself, to be honest.
Speaker B:Um, there's a.
Speaker B:Hindsight's always 20 20, right.
Speaker B:You look back and like, why didn't I jump in sooner with somebody and go in full time?
Speaker B:I'm not, I don't regret anything because, you know, I got my start in door to door sales and definitely learned a ton there.
Speaker B:But the first five years of real estate was a grind.
Speaker B:Just buying and selling real estate on my own.
Speaker B:And even the first couple flips didn't.
Speaker A:Have any partners, so that's impressive, man.
Speaker A:You went in all alone.
Speaker A:I started with a partner and just to kind of let you know the importance of starting with a partner or someone that you can work with.
Speaker A:Me and you are working together.
Speaker A:Like, I don't know anything really anything about multifamily.
Speaker A:I mean, a little bit.
Speaker A:Right.
Speaker A:But not that much.
Speaker A:And so you're gonna help me through that, that transition and we're gonna crush it, man.
Speaker A:It's exciting.
Speaker B:Love it, dude.
Speaker B:Yeah.
Speaker B:You.
Speaker B:You.
Speaker B:You teach people how to wholesale.
Speaker B:I'll stick to commercial real estate.
Speaker B:Obviously, we'll both pick each other's brains, but it's nice to have a partner and be specialized because, you know, somebody might be really good at marketing, but they're not a good closer.
Speaker B:Or somebody might be really good at analyzing, but they don't want to talk to people or, you know.
Speaker B:So I think it.
Speaker B:Creating the right team of people that have different strengths and abilities is so important, especially when you're networking and doing deals together.
Speaker B:So you don't want to be with the same person as you.
Speaker A:Yeah, that's actually something I've learned when I started my business with Corey back in the day.
Speaker A:Like, love my, my.
Speaker A:We're not business partners anymore.
Speaker A:Shout out to Tom Kroll.
Speaker A:He was like, hey, you don't need a business partner.
Speaker A:So we were business partners.
Speaker A:But we found out that in the beginning when we started together, we were just.
Speaker A:We wanted to support each other.
Speaker A:We wanted to, like, go and give us emotional support.
Speaker A:But after a couple years, we found out, like, we're the same.
Speaker A:Pretty much the same people.
Speaker A:We both like to do sales.
Speaker A:We both like to talk.
Speaker A:So the strengths didn't really complement each other that much just because we.
Speaker A:We both were good at pretty much the same thing.
Speaker A:Right.
Speaker A:So just like what you said, you got to find people that compliment you.
Speaker A:Like, can compliment you.
Speaker A:One plus one in a business partnership should not equal one.
Speaker A:Should equal four, ten, you know, a hundred.
Speaker B:A hundred percent.
Speaker B:Agree.
Speaker B:Everybody on our team has a different personality.
Speaker B:And, or.
Speaker B:Or if they have the same personality, maybe they're working in different part of sales.
Speaker B:Right.
Speaker B:Or different part of that.
Speaker B:You know, we have single family and multifamily.
Speaker B:Right now we're doing bigger commercial deals, you know, millions and millions of dollars commercial deals.
Speaker B:So we're putting a lot of focus right there.
Speaker B:But yeah, it's important to have a strong team.
Speaker A:So let's.
Speaker A:Let's kind of, before we dive into what you do and how you raise, you buy real estate with other people's money.
Speaker A:Tell us a little bit about yourself.
Speaker A:Give us a 30 minute.
Speaker A:I know before we hopped on this, you kind of gave me your little.
Speaker A:Your bio, but give me like 30 seconds.
Speaker A:Tell people really, the nitty gritty.
Speaker B:What.
Speaker A:Who is Jordan?
Speaker A:And you know, let us know who's Jordan?
Speaker B:Jordan is.
Speaker B:I grew up in a family with six siblings, four of them brothers.
Speaker B:Five in a row, right?
Speaker B:Boy, boy, boy, boy, boy.
Speaker B:Very Competitive family.
Speaker A:That's wild.
Speaker B:We're closer than any family I really know.
Speaker B:Like, we're always together.
Speaker B:And even though we bicker and fight because we're all athletes and we're very competitive, we all love each other, so family comes first.
Speaker B:In my life, I'm a father to two kids, one on the way.
Speaker B:Some people might not know that, so they're hearing this for the first time.
Speaker A:Whoa, whoa, whoa.
Speaker B:Hold on.
Speaker A:I got to, I got to.
Speaker A:I got to hear it again.
Speaker B:Yeah.
Speaker B:My wife's pregnant with another boy, so I have a girl, a boy, and one on the way.
Speaker A:Oh, congratulations, man.
Speaker A:That is.
Speaker A:Are you pumped?
Speaker A:I'm sure you're pumped.
Speaker B:Oh, my gosh, I'm so happy.
Speaker B:So I'm gonna have two boys right next to each other and the built in babysitter, Piper, right?
Speaker A:Yes, yes.
Speaker B:But I think that family comes first in everything.
Speaker B:And the only reason I like to do real estate is because it gives you a platform financially to buy back your time and give opportunities to your children, your wife, your friends, your family that maybe might not have been there.
Speaker B:Right.
Speaker B:Like, I have some expensive hobbies, right?
Speaker B:Like scuba diving.
Speaker B:I'd like to travel.
Speaker B:I like to go scuba diving.
Speaker B:And you can't really do that if you don't have money.
Speaker B:And then as a kid, I really like gymnastics and wasn't able to do it just because there's, you know, seven of us and we had to pick and choose our sports.
Speaker B:But I want to give those opportunities to my kids.
Speaker B:Say, hey, like, it's not a financial burden.
Speaker B:So that's the reason I like to make money.
Speaker B:I don't, I don't covet money.
Speaker B:I don't personally like the, you know, the two million dollar cars.
Speaker B:Some people like that and that's, that's them.
Speaker B:I would rather travel.
Speaker B:I'd rather do other things.
Speaker A:Experience.
Speaker B:What's that?
Speaker A:Experience is over, you know, things, I guess.
Speaker A:Right.
Speaker B:100%.
Speaker B:I prefer experiences.
Speaker B:And honestly, having a car is a cool experience, I'll be honest, but it's just not the coolest thing for me.
Speaker B:Like, I'd rather go hundreds of feet under the water.
Speaker A:Dude, I gotta come.
Speaker A:I gotta confess something to you, brother.
Speaker A:I.
Speaker A:I'm a wimp.
Speaker A:I went like five.
Speaker A:No, no, this wasn't five.
Speaker A:This was like eight years ago when I was doing door to door sales.
Speaker A:We went on a trip cruise to like Mexico.
Speaker A:And they no experience doing scuba diving at all.
Speaker A:They're just like a bunch of Mexican guys just threw like some scuba tanks on Us.
Speaker A:And they're like, go.
Speaker A:And everyone started going in underwater, and I was like, I don't know what the heck I'm doing.
Speaker A:I breathe out of my nose all my whole life just because I don't want, like, people to smell my breath.
Speaker A:So I.
Speaker A:I'm always breathing through my nose.
Speaker A:So when I go there and this thing's on me, I can't.
Speaker A:I'm like, I can't breathe.
Speaker A:I can't do it.
Speaker A:So I whisked out, dude.
Speaker A:I whisked out.
Speaker A:I didn't go underwater.
Speaker A:I couldn't figure it out.
Speaker A:I was like, forget this.
Speaker A:I don't even feel safe.
Speaker B:You just need the proper training, man.
Speaker B:That.
Speaker B:That threw you probably into a cenote, right?
Speaker A:I don't.
Speaker A:I don't.
Speaker A:What's the cenote?
Speaker A:I don't ever know.
Speaker B:One of those sinkholes, was it like a big.
Speaker A:It was due to straight ocean, bro.
Speaker A:They were like, hey, let's look at.
Speaker A:They were like, go out and on.
Speaker B:Your first dive, they threw you right in open water.
Speaker A:They threw everyone into open water.
Speaker A:And they were like, don't come up too hot fast or you'll.
Speaker A:You'll like, explode.
Speaker A:And I was like, yeah, forget that.
Speaker B:Oh, man.
Speaker B:Yeah, that's sketchy to say the least.
Speaker B:But they were trying to make a good tip, right?
Speaker A:Well, yes, I felt like a wuss, dude.
Speaker A:I.
Speaker A:I bailed.
Speaker A:And like, a couple of the other guys just went and figured it out.
Speaker A:I was like, I.
Speaker A:I ain't exploding today, but.
Speaker B:Yeah, I mean, come with me.
Speaker B:You'll learn.
Speaker B:But I.
Speaker B:I like scuba diving.
Speaker B:I like competitiveness.
Speaker B:I.
Speaker B:You know, I grew up wrestling from.
Speaker B:I can't even remember what age I.
Speaker A:Wanted to talk to you about that because I did.
Speaker A:You know, I wrestled too.
Speaker B:I saw that.
Speaker B:I don't know the.
Speaker B:The whole background, but I.
Speaker B:I did see that in another podcast.
Speaker A:Oh, bro, I love wrestling, man.
Speaker A:I actually, I do Jiu jitsu now, which is grappling, but it's submissions, and I did that this morning.
Speaker A:I do it every, you know, two times a week in the morning at 5:30.
Speaker A:I love it, dude.
Speaker A:It's so fun.
Speaker A:You Jiu Jitsu, if you haven't.
Speaker A:It's.
Speaker A:It's just like wrestling.
Speaker B:I did some jiu jitsu in college and here and there, but it's.
Speaker B:It's a time commitment and it is.
Speaker A:Yeah, I.
Speaker A:I got to do it early in the morning.
Speaker B:Yeah.
Speaker B:Right now I'm.
Speaker B:I'm having a tough time between family, just lifting weights and, you know, Raising capital and traveling.
Speaker A:But you definitely got to pick.
Speaker A:Pick what?
Speaker A:Your hobbies that, you know as.
Speaker A:As you get, you know, deeper into this stuff.
Speaker B:100%.
Speaker A:But I'm curious, sorry, real quick, about your wrestling experience.
Speaker A:Like, can.
Speaker A:Did.
Speaker A:Do you wrestle in college?
Speaker A:Did you wrestle, like, how'd you do in high school?
Speaker A:I'm just curious because I want to know your experience level.
Speaker B:Yeah, so I was one of those kids that just trained every single day.
Speaker B:I.
Speaker B:I think as a freshman in high school, I wasn't the kid that started when I was, you know, three years old.
Speaker B:I started in seventh grade, like, competitively.
Speaker B:I think I did a little bit with my brothers in sixth grade, but a lot of improvement.
Speaker B:By the time I was a senior, I didn't lose a state match.
Speaker B:I got disqualified from one from slamming.
Speaker A:A kid too hard in state.
Speaker A:You got disqualified in state?
Speaker B:I was up 8:1 and slammed a kid.
Speaker B:And not purposely, you know, of course.
Speaker A:Of course.
Speaker B:Chain, ball and chain.
Speaker B:And you have to hit your knee before his shoulder hits and accidentally dislocated.
Speaker A:The kid's shoulder and you ripped his arm off, huh?
Speaker B:Not on purpose, of course.
Speaker A:I'm just messing with you.
Speaker A:I.
Speaker A:The ball chain was like, my go to, bro.
Speaker A:I love the ball and chain.
Speaker B:Yeah, so.
Speaker A:So you were.
Speaker A:You're trying to, like, stack them.
Speaker A:You were, like, trying to stack them and.
Speaker A:Yeah, I got you, so.
Speaker B:No, I did.
Speaker B:I did really well my senior year.
Speaker B:I got better every year.
Speaker B:My senior year, I had the state takedown record.
Speaker B:I was really into competitive weightlifting, so I held what was called the exponent record for weightlifting, which is weightlifting times your body weight.
Speaker B:So I was lifting over a thousand pounds between squat, power, clean, and bench.
Speaker B:And I was weighing.
Speaker B:You know, I weighed in for that competition at 133 pounds.
Speaker A:You were a tank.
Speaker B:I wrestled 135, so.
Speaker A:I wrestled 135, dude.
Speaker B:Yeah.
Speaker B:So we're around the same way in high school.
Speaker B:You know, I'm 5 7, and it was.
Speaker B:It was a great weight class for me and loved wrestling.
Speaker A:Did you have to cut hard?
Speaker B:No, no.
Speaker B:I did way more cardio in high school.
Speaker B:Right now.
Speaker B:I'm.
Speaker B:You know, it's hard to find time to do cardio because I have a bum knee.
Speaker B:I'm working on with a physical therapist on rehabbing my knee right now.
Speaker B:So.
Speaker A:Yeah, it's just tough button state, I'm assuming, right, if you were, like, picking up a thousand pounds and stuff.
Speaker B:Yeah, yeah, I did.
Speaker B:So I was.
Speaker B:I.
Speaker B:I praised third in the state because I Got disqualified against the number one guy.
Speaker B:And then I placed seven.
Speaker B:Seven in the national tournament.
Speaker A:Oh, my gosh.
Speaker A:So you're an All American?
Speaker B:I don't even know, but probably.
Speaker B:I, I wasn't.
Speaker B:I didn't wrestle in college.
Speaker B:Right.
Speaker A:Oh, that's what I meant.
Speaker A:So college.
Speaker A:College is.
Speaker A:You place top eight, you're all American, but you're saying seventh national.
Speaker A:So you wrestled national in high school?
Speaker B:Yeah.
Speaker B:And so there's.
Speaker A:That's dope, right?
Speaker B:You know, I did pretty good in high school.
Speaker A:I.
Speaker A:I got third in state.
Speaker A:Dude, we're like, pretty, like neck and neck 135, you know.
Speaker A:I got third, you got third.
Speaker A:That's wild.
Speaker B:Yeah.
Speaker A:So you should go at it.
Speaker B:You probably.
Speaker A:You probably crushed me right now because.
Speaker B:There'S something that you could.
Speaker B:You, you know, the.
Speaker B:The wrestling thing, that, that was a big thing because I was up 8, one against the number.
Speaker B:The other number one guy and did something I shouldn't have.
Speaker B:And you go and cry in a corner.
Speaker B:But then went undefeated throughout the rest of this day.
Speaker B:That was my very first match.
Speaker B:I was.
Speaker B:It was, you know, dang.
Speaker B:The whole story is actually really cool.
Speaker B:I won't go into details, but anybody who knows me knows wrestling was a serious sport.
Speaker B:I didn't do it in college because they didn't have it at byu.
Speaker B:And I was a music major at byu.
Speaker B:In the beginning, when I got back from my mission, I went straight into business because the kind of music major that they had there, it wasn't.
Speaker B:My style is more classical and this and that.
Speaker A:And what was the instrument you were playing?
Speaker A:Was it the sousaphone?
Speaker B:No, I'm.
Speaker B:I'm a vocalist.
Speaker B:I love to sing.
Speaker B:If you.
Speaker B:If you go on my Facebook, you can see a couple of performances.
Speaker A:Okay, you were singing.
Speaker A:I thought you were playing, like, some drums or the sousaphone or something.
Speaker B:No, I love performing more than singing.
Speaker B:I just love making people smile.
Speaker B:Ever since I was a little kid, you know, five years old, I'd go sing in front of Walmart, get on the big stage and just vote, you know, trying to.
Speaker B:I remember When I was 7 years old, I sang in front of 40,000 people in Reno and for the national anthem for the big Sparks convention.
Speaker B:And the microphone cut out.
Speaker B:I was like, I don't care.
Speaker B:So I just started singing at the top of my lungs.
Speaker B:Everybody joined in.
Speaker B:40,000 people singing the national anthem with me.
Speaker B:And then the very last line, it kicked back on.
Speaker B:I was like, oh, it came back on as, you know, all over the newspapers.
Speaker B:Got to travel to New York.
Speaker B:Got to travel to California and do ton of.
Speaker B:I love singing.
Speaker A:You know what I'm envisioning?
Speaker A:Because you said you would get in front of Walmart and sing.
Speaker A:You know who I'm thinking of?
Speaker A:The yodel.
Speaker A:The yodel or kid?
Speaker A:The kid that was yodeling.
Speaker A:That was you?
Speaker B:That, that was me, man.
Speaker B:I had no shame.
Speaker A:Oh, gosh, that's funny.
Speaker B:That's.
Speaker B:Yeah, so.
Speaker B:But yeah, I mean, I love performing and I want to do big things.
Speaker B:Right now my goal is to help other people make passive income because I think that helps you follow your dreams.
Speaker B:Ever since I've gone into real estate, it's nice to wake up on the 1st of the month and you know, have a lot of money in your checking account from rents that are coming in.
Speaker B:Right.
Speaker B:And it gives you time to do things.
Speaker B:I'm not saying I feel bad for W2 Income.
Speaker B:You know, they've chose that and they're.
Speaker B:They're working from 9 to 5, but it's nice.
Speaker B:Like yesterday I had a guy call me and I was able to just go somewhere randomly at 3 o' clock to meet up with a friend.
Speaker B:And then that freedom is definitely what I'm trying to get myself and then also provide for other people.
Speaker B:So that's why I raise money.
Speaker A:That's a good mission.
Speaker A:That's a good mission.
Speaker A:So you're, you're really raising money to buy real estate so you can help people achieve freedom.
Speaker B:Yeah, so that's exactly it.
Speaker B:You got these high income earners.
Speaker B:We're working with couple.
Speaker B:You know, we're working with a YouTuber that has over 11 million followers on his YouTube channel.
Speaker A:Who is it?
Speaker A:You can't say it.
Speaker B:I don't know.
Speaker B:I don't want to say his name, but I'll.
Speaker B:I'll ask him if I can say it on the next.
Speaker A:Yeah, man.
Speaker A:Drop him, dude.
Speaker A:That's pretty cool though.
Speaker A:He's.
Speaker A:He's crushing it.
Speaker A:He needs to put his money somewhere, right?
Speaker A:Exactly.
Speaker B:It's just he's young, he's 24 years old and he, he needs to put his money into real estate.
Speaker B:So we're helping him with that.
Speaker B:We got some CEOs of hospitals that they know how to run a hospital.
Speaker B:They might make a million dollars a year or more.
Speaker B:I don't know how many, how much a CEO of a hospital makes, but they don't know how to make that money work for them.
Speaker B:They don't have the time.
Speaker B:Right.
Speaker A:Yeah, it takes time to go out.
Speaker B:And find the deal, negotiate it, underwrite it.
Speaker B:That's my forte.
Speaker B:I've been doing it for a while, over a decade now, just underwriting deals and making sure we get good returns for investors.
Speaker B:But they can put their money, you know, let's say they have 500 grand sitting in their checking account, that's making nothing.
Speaker B:They can hand that money over to me, I can go deploy it for them, and then it makes them, you know, $50,000 a year plus in dividends.
Speaker B:And then when we sell the property, they get an extra check.
Speaker A:I got a quick question for you.
Speaker A:So someone that has.
Speaker A:Are you really finding that someone that has $500,000 and has.
Speaker A:Can make that kind of income would just put it in a checking account or are they pretty savvy, like somewhat sav to invest it?
Speaker B:No, there's tons of people with over 500 is a small amount.
Speaker B:You'd be surprised there.
Speaker B:Some of these high income earners, they started a business two, two years ago and they have all this money coming in and they don't even know how to reinvest it into their own business because they're growing so fast.
Speaker B:They're making commissions either.
Speaker B:I mean, you got these especially like been working with the solar industry a little bit.
Speaker B:And because I did solar and I know how lucrative it is, some of these CEOs, they're getting, you know, 25, $30,000 commission checks just off their personal deals.
Speaker B:And then they have a sales force that's growing nationwide.
Speaker B:They have way more than 500 grand.
Speaker B:And then of course, sell a company, they might sell equity in the company.
Speaker B:One of, one of our Buddies is selling 25% equity of his company, which is worth 250mil.
Speaker B:Well, what do you do with 250 million?
Speaker A:Well, you tell me, what do you do with 250 million?
Speaker A:That's, that's a lot of dough.
Speaker B:You have to put it into real estate.
Speaker B:Because the thing is, real estate is one of the asset classes that is best for tax benefits, right?
Speaker B:You can defer taxes forever in real estate.
Speaker B: rties through what's called a: Speaker A:So just keep going until you die and then you're.
Speaker B:You never have to pay taxes on it?
Speaker B:No, never.
Speaker B:Never ever, ever.
Speaker A:Can the kids pay?
Speaker A:Deferring can.
Speaker A:Like if you inherit a property that needs to get like once someone dies, does it go away or do they.
Speaker A:Would the kids have to pay it?
Speaker B:So no, there's a certain amount, right?
Speaker B:There's a threshold.
Speaker B:I want to say it's like 13 and a half million per spouse.
Speaker B:It's called step up basis.
Speaker B:You can Google it.
Speaker B:But let's.
Speaker B:Let's just say.
Speaker B:Let's just say I have a $500,000 duplex, right?
Speaker B:I buy it for 500 and then two years later, I sell it for 700 net, right?
Speaker B:Maybe I sell for 750 and you have all commissions, but I make two grand profit off of it, right?
Speaker B:If I sell that duplex and take a $200,000 profit check, I have to pay capital gains on that.
Speaker A:What is that, 30.
Speaker B:20%?
Speaker B:200 grand?
Speaker A:20%.
Speaker B:I mean, it depends on your tax bracket, but let's just say 20%, right?
Speaker B:20% of 200 grand, $40,000 in taxes.
Speaker B:Do you want to rent a $40,000 check for taxes?
Speaker A:Never.
Speaker B:No.
Speaker B: that money and put it into a: Speaker B:You know, you have an intermediary that holds the money for you until you locate another property.
Speaker B:I have a guy, actually, I'm working with right now.
Speaker B:He bought a townhome way back when.
Speaker B:It's paid off.
Speaker B:He just sold it.
Speaker B:He netted 495,000 off a townhome.
Speaker A:Okay.
Speaker B:It's crazy to think what townhomes worth nowadays, but he has $495,000 sitting in a.
Speaker B:In an inter.
Speaker B: Intermediary fund with: Speaker B:And he has to deploy that within a certain amount of time or else he has to pay taxes on that game.
Speaker A:What's the time, by the way?
Speaker A:Just curious.
Speaker B:I mean, I'm not an account.
Speaker B:I think it's like it's 45 to locate another property and 90 to close or something like that.
Speaker B:Honestly, I've never hit the timelines.
Speaker B:We always have deals lined up.
Speaker B:So it's not a.
Speaker B:It's not a problem.
Speaker B:If you Google it, It'll come up like 45 and then 90.
Speaker B:But you locate the property, and then he uses that 495 as a down payment, let's say on a $1.8 million property.
Speaker B:Right now he owns a $1.8 million property, and because he rolled it into a bigger property, he doesn't have to pay any taxes on it.
Speaker B:It's called deferred taxes, right?
Speaker B:So that deferred tax, let's say he owns that for eight years and then sells the 1.8 million property and a half mil.
Speaker B:So now he's made 700 grand.
Speaker B:He also made the 200 grand.
Speaker B:That's.
Speaker B:That's $900,000.
Speaker B:He's made, now he has to pay taxes on 900,000.
Speaker B:But if he rolls that into another property, let's say he buys a four million dollar property, now he can own that four million dollar property and if it's bringing him in, you know, however much a year, 150 a year, who wants to sell that?
Speaker B:Right.
Speaker B:They can just live off the dividends, off the cash flow.
Speaker A:Let me ask you, when he dies, sorry, let me ask you a quick question for the viewers that might have the same question.
Speaker A: you, is he able to avoid the: Speaker B:Yeah, yeah.
Speaker B:It's called a tenants in common.
Speaker B:The short answer is yes.
Speaker B: can take investor funds from: Speaker B:So because you just, I'm not going to go into detail on that, but the answer is yes.
Speaker B:Yeah, you're good.
Speaker A:You just made me think of someone so I just did that.
Speaker A:I know one of my family members just sold the eight plex, Right.
Speaker A:And they, I think they have a certain amount of equity that they need a place.
Speaker A:I'm going to reach out to them after this.
Speaker A:I just thought of them.
Speaker B:Yeah.
Speaker B:So with, you can have them roll it into another property and then what happens is when they die, like my state goes to a trust and whoever is the inheritor of the trust, let's say it's my child, or say me and my wife died in a car accident at the same time and Piper's the inheritor, she actually gets what's called step up basis.
Speaker B:So a certain amount of money is non taxable that she inherits.
Speaker B:So we actually completely defer all taxes into the next life and then they don't have to pay the taxes, they get an appraisal, they have a new value and that's what the wealthy do.
Speaker B:And so, and it's completely legal, it's ethical, it's how the tax code is written.
Speaker B:And if you know how to invest right in real estate, you should have little tax liability.
Speaker A: years old, if you've been: Speaker A:But you're saying it can, you can do it forever until you die.
Speaker B:Yes.
Speaker A:So you don't have to pay the taxes ever?
Speaker A:No, but I am curious.
Speaker A:But somebody will eventually, right?
Speaker A:Like if the kids inherit the property, they're going to have to know, is it done once you die?
Speaker B:So once you die, let's say, let's say I had, you know, $10 million of.
Speaker B:Let's say I bought a property for 500 and then over the course of my lifetime, my assets are worth 10 million, right?
Speaker B:That's under the step up basis, right?
Speaker B:So when my child inherited the $10 million of real estate, that's her new line for taxes.
Speaker B:So.
Speaker B:But she doesn't.
Speaker B:She inherits it tax free.
Speaker B:It's step up basis.
Speaker B:They'll do a new appraisal.
Speaker B:There's no tax liability on that.
Speaker B:But as she makes money, she'll have to pay taxes on it.
Speaker B:So if she makes $2 million, she'll pay, you know, if it's worth 12 million, she'll have to pay on the $2 million.
Speaker B: Unless she: Speaker B:Now there is caps, right?
Speaker B:Like, yeah, I think it's, like I said, I think it's 13 and a half million per spouse.
Speaker B:Might be 12.
Speaker B:I don't know the exact amount.
Speaker B:So, you know, my, my children definitely have to pay taxes, right?
Speaker B:Because our, our state's going to be well worth a lot more than that.
Speaker B:But at the same time, you know, having a $24 million inheritance, the first 24 million you don't have to pay taxes on.
Speaker B:It's pretty amazing.
Speaker A:Let me ask you this, this is a little outside, but what's your opinion on letting in, letting your kids inherit all that money eventually?
Speaker A:Do you feel like that's good for them?
Speaker A:What's your opinion on giving your kids a ton of money eventually?
Speaker B:I mean, I think it depends on the parents.
Speaker B:That's a loaded question because you think about some of these parents.
Speaker B:There are some parents that do spoil their children.
Speaker B:And you know, you see those, those funny TV shows where the, like Harry Potter, right?
Speaker B:The kid who gets however many presents and he's like, I wanted more, right?
Speaker A:No, Dudley, he's the worst, right?
Speaker B:But if you treat, if you teach your kids right, I know a lot of millionaires, especially in door to door sales where they've had to grind, right?
Speaker B:Like, I know one, one guy that I really respect, Todd Santiago, right?
Speaker B:He's.
Speaker B:He was the vice president of sales at Vivint Stud.
Speaker B:Amazing guy, very wealthy.
Speaker B:His ch.
Speaker B:His children, he has a couple children, right?
Speaker B:He makes them knock doors.
Speaker B:Like he had them knock doors and start where when they turned 18.
Speaker B:I was like, oh, these kids are going to be like executives at Pivot.
Speaker B:No, like his oldest son went out and knocked doors on a summer sales team and then had to build his own sales organizations.
Speaker B:And if you know the kid, he's had to work for everything.
Speaker B:But his dad has instilled that work ethic to where he's going to be wealthy no matter what.
Speaker B:If his dad doesn't leave him a penny, he'll still be wealthy.
Speaker B:Right.
Speaker A:I think that's the right way to do it.
Speaker A:Yeah.
Speaker B:Yeah.
Speaker B:So it just depends on the parenting.
Speaker B:I'm definitely not going to have my kids be spoiled in any way, shape, or form.
Speaker B:If they want money for me to fund them, and let's say, you know, a gymnastics tournament where they have to go to Hawaii and spend 10 grand on this huge competition, I'll fund it.
Speaker B:But they better work their butt off to win that tournament, because I'm their sponsor.
Speaker A:Yeah.
Speaker A:It's an investor.
Speaker B:I'm their sponsor.
Speaker B:Right.
Speaker B:Or if they're looking to start a business, I'm not just going to hand them a $10 million investment check.
Speaker B:I'm going to say, hey, you need to learn the ropes.
Speaker B:Come shadow me.
Speaker B:That's why I think it's so important to have a partner, because a partner is going to be invested into, because when you make money, they make money.
Speaker A:Right.
Speaker B:I actually believe in partners more than I do mentors.
Speaker A:I think a lot of partner, too.
Speaker A:A lot of mentors do that.
Speaker A:Yeah.
Speaker B:I think there's a lot of mentorships where people will pay $25,000 for a mentorship.
Speaker B:Right.
Speaker B:To be on this call, to be in this room with people, rather than having somebody pay me 25 grand, I would be more willing to vet them very carefully and say, are you going to work?
Speaker B:Go do these homework assignments for me.
Speaker B:Right.
Speaker B:Go do this.
Speaker B:And if they show that they're gonna do it, I would rather give them, you know, 5% equity in a business that's gonna be worth a hundred million dollars and say, go hustle with me.
Speaker A:Yeah, yeah, Right.
Speaker B:And they're gonna make more in the long run, and they're gonna learn side by side with me.
Speaker B:So going back in time, like, I always tell people this.
Speaker B:Whatever you want to do, go serve that person.
Speaker A:Yeah.
Speaker B:Go work for that.
Speaker B:No work.
Speaker B:You don't have to work for free.
Speaker A:You.
Speaker B:You tell them, and you pay me what you think I'm worth, and you go learn from them and you create them value.
Speaker B:They're going to be addicted to you.
Speaker B:They're not going to want to ever lose you.
Speaker B:And then that's when you can, you know, go off on your own once you know it all.
Speaker B:But if they really like you and they're creating value, you're going to stay with them.
Speaker A:Well, Jordan, I feel like we've hit on some awesome topics, and I feel like we got to probably do another podcast.
Speaker A:Bro, this was good.
Speaker A:I mean, I feel like we got a lot to talk about.
Speaker A:What do you think?
Speaker B:100%.
Speaker B:Yeah, anytime.
Speaker B:This is fun.
Speaker B:I love giving back.
Speaker B:And like I said, I just want to be of service to people, whether it's other people getting into real estate, and they're hitting me up on Instagram saying, hey, you know, how do I raise millions of dollars?
Speaker B:How do I close multifamily?
Speaker B:There's.
Speaker B:I could talk to them for hours about it.
Speaker B:The people that I'm gonna put the most time into are.
Speaker B:The people are gonna bring value and say, hey, like, let's go do a deal together.
Speaker B:But I also like talking to people that are not in real estate that just say, I don't wanna have anything to do with real estate.
Speaker B:I love real estate.
Speaker A:Just take.
Speaker B:I don't want to be in the grind, but make me money.
Speaker A:Yeah.
Speaker B:And then I got to be like the guy in the Bible, the parable of the talents, right?
Speaker B:Where the master gives the people the talents and two of them go and multiply those talents and are given more talents.
Speaker B:Talents were coins, right?
Speaker B:And one of them hides it on their floorboard, and he comes back and he says, you thoughtful servant.
Speaker B:And he takes the talent from that one other guy, and that guy's left with nothing.
Speaker B:That's my responsibility in life.
Speaker B:I feel like I've been given.
Speaker B:I've been given a lot of opportunities to attain knowledge.
Speaker B:I'm not saying I've been given knowledge because I do want to credit myself, and I've taken the time to learn from other people because you got to have the desire to learn.
Speaker B:But once you have that knowledge, you have to go spread it and help other people.
Speaker B:Otherwise the Lord's going to take it from you.
Speaker B:You know, whether it's in this life or the next.
Speaker B:I.
Speaker B:I believe in Jesus Christ and I believe that preacher.
Speaker B:He's given us everything.
Speaker B:I know.
Speaker B:I don't want to like to get religious.
Speaker A:No, I preach it.
Speaker A:I.
Speaker A:I'm.
Speaker A:I'm all about Jesus.
Speaker B:Whether you believe in a higher.
Speaker B:You believe in Allah or Buddha or whatever it is.
Speaker A:Look, I got my Jesus statue right there.
Speaker A:Do you see it?
Speaker B:I Don't.
Speaker B:Where is it?
Speaker A:He's that white.
Speaker B:Oh, yeah.
Speaker B:Exactly.
Speaker A:Yeah, man.
Speaker B:I don't play.
Speaker A:So that's.
Speaker A:Everything I do is for Jesus.
Speaker A:I mean, everything.
Speaker B:I believe that every.
Speaker B:We've given.
Speaker B:Given everything in this life.
Speaker B:Our body, our skin, you know, the money that we have.
Speaker B:Literally everything.
Speaker B:Mosiah, you'll know what I'm talking about, right?
Speaker B:Every.
Speaker B:We're in debt to the Savior 100 of the time.
Speaker A:Breaking up, breaking up on me.
Speaker A:That's the devil right there trying to take you down.
Speaker A:Oh, man, you there.
Speaker A:Yeah, man.
Speaker A:You broke up.
Speaker A:That was the devil trying to break you down.
Speaker A:Break.
Speaker A:Break up this.
Speaker B:But I feel.
Speaker B:I feel an obligation to give back.
Speaker B:Yeah.
Speaker B:So whether I make, you know, $20 million in this life or $2 billion in this life, you know, it doesn't matter.
Speaker A:Yeah, money doesn't matter.
Speaker B:It doesn't matter.
Speaker B:It just matters.
Speaker B:The effect I'm having on other people.
Speaker B:And honestly, first and foremost is my family.
Speaker B:And then after that, I still want to help others because I have the capability to.
Speaker A:Well, Jordan, it's been a pleasure having you on here.
Speaker A:We're definitely gonna have to have you back.
Speaker A:And we're.
Speaker A:We're actually going to be doing an event together.
Speaker A:What is it in.
Speaker A:In a two.
Speaker A:A week or two where me and you are going to be.
Speaker A:It's talking.
Speaker B:It's in nine days.
Speaker B:Next Saturday, January 13th or 14th.
Speaker B:We're gonna do it.
Speaker B:I believe we're doing it in Orem, right?
Speaker A:Mm.
Speaker B:So, yeah, Kylan Gornichek's office, security, home mortgage.
Speaker B:Anybody who wants to come, we're going to have a good lineup.
Speaker B:You'll be speaking, obviously.
Speaker B:I'll be speaking.
Speaker B:We're going to have.
Speaker B:My accountant is coming.
Speaker B: She can talk more about the: Speaker B:She can talk about setting up S Corps, different ways that W2 people can save money as well.
Speaker B:It's.
Speaker B:It's very powerful to get in those networks, and I'm excited to do that event.
Speaker B:We should have a really good turnout.
Speaker A:Sounds good, man.
Speaker A:We'll all promote it.
Speaker A:We gotta wrap up, but, you know, we'll have to hop on another one.
Speaker A:It's been a pleasure having you on here.
Speaker A:If you're in Utah, please make it to that event.
Speaker A:Reach out to me, Reach out to Jordan.
Speaker A:If you want to connect with Jordan, let me know.
Speaker A:I'll put you in touch with them and.
Speaker A:Or, you know, Beast Real Estate.
Speaker A:All right.
Speaker B:Yeah.
Speaker B:Beast Real Estate on Facebook or Instagram, so.
Speaker A:All right, brother.
Speaker A:Well, we'll keep doing this.
Speaker A:We'll keep growing this.
Speaker A:That's what we're doing this year.
Speaker A:Let's blow it up.
Speaker A:Later, bro.
Speaker B:All righty, Nathan.
Speaker B:Talk to you later, man.
Speaker B:Bye.
