June 12, 2025 • 30 mins
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
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:08):
We are live right now on thePainless Wholesaling podcast and
we have Jordan Lee, the CEO ofBeast Real Estate.
Guys, we.
This podcast is the PainlessWholesaling podcast where we show
you that wholesaling does nothave to be painful.
It can be painless if you doit the painless way.
And I bring on expert gueststhat show us how to make doing real
(00:29):
estate painless.
So it's not, it's not hardbecause you can learn from their
experience.
So we have Jordan Lee.
He's going to tell us a littlebit about his story so we can learn
how to not struggle, like whatyou're going to struggle with if
you just try to figure it outon your own.
Learn from his experience.
What's up, Jordan?
How you doing, Nathan?
I'm excited.
To be honest with you, man.
I've seen you everywhere.
You're.
You're blowing up.
(00:50):
It's fun to watch it progression.
Appreciate it, man.
Would you, Would you agree, Jordan?
Can real estate be painful?
Like, if you don't know whatyou're doing?
Yeah.
And that's why I, I think thefirst piece of advice that I give
to anybody is take a partner on.
Like, if I was 18, gettinginto real estate, even 17, like take
a partner on for a couplemonths right before you turn 18,
(01:10):
and it's insane.
The amount of knowledge thatyou can get from partnering with
people like you, me, or peoplethat have been in the industry for
10 plus years.
Is that, is that how youstarted, Bro brother, with a partner
or did you just go by yourself?
I did it the wrong way.
Yeah.
I don't by myself, to be honest.
Um, there's a.
Hindsight's always 20 20, right.
You look back and like, whydidn't I jump in sooner with somebody
(01:35):
and go in full time?
I'm not, I don't regretanything because, you know, I got
my start in door to door salesand definitely learned a ton there.
But the first five years ofreal estate was a grind.
Just buying and selling realestate on my own.
And even the first coupleflips didn't.
Have any partners, so that'simpressive, man.
(01:56):
You went in all alone.
I started with a partner andjust to kind of let you know the
importance of starting with apartner or someone that you can work
with.
Me and you are working together.
Like, I don't know anythingreally anything about multifamily.
I mean, a little bit.
Right.
But not that much.
And so you're gonna help methrough that, that transition and
we're gonna crush it, man.
It's exciting.
(02:17):
Love it, dude.
Yeah.
You.
You.
You teach people how to wholesale.
I'll stick to commercial real estate.
Obviously, we'll both pickeach other's brains, but it's nice
to have a partner and bespecialized because, you know, somebody
might be really good atmarketing, but they're not a good
closer.
Or somebody might be reallygood at analyzing, but they don't
want to talk to people or, you know.
(02:38):
So I think it.
Creating the right team ofpeople that have different strengths
and abilities is so important,especially when you're networking
and doing deals together.
So you don't want to be withthe same person as you.
Yeah, that's actuallysomething I've learned when I started
my business with Corey back inthe day.
Like, love my, my.
We're not business partners anymore.
(02:59):
Shout out to Tom Kroll.
He was like, hey, you don'tneed a business partner.
So we were business partners.
But we found out that in thebeginning when we started together,
we were just.
We wanted to support each other.
We wanted to, like, go andgive us emotional support.
But after a couple years, wefound out, like, we're the same.
Pretty much the same people.
We both like to do sales.
We both like to talk.
So the strengths didn't reallycomplement each other that much just
(03:19):
because we.
We both were good at prettymuch the same thing.
Right.
So just like what you said,you got to find people that compliment
you.
Like, can compliment you.
One plus one in a businesspartnership should not equal one.
Should equal four, ten, youknow, a hundred.
A hundred percent.
Agree.
Everybody on our team has adifferent personality.
And, or.
Or if they have the samepersonality, maybe they're working
(03:40):
in different part of sales.
Right.
Or different part of that.
You know, we have singlefamily and multifamily.
Right now we're doing biggercommercial deals, you know, millions
and millions of dollarscommercial deals.
So we're putting a lot offocus right there.
But yeah, it's important tohave a strong team.
So let's.
Let's kind of, before we diveinto what you do and how you raise,
(04:04):
you buy real estate with otherpeople's money.
Tell us a little bit about yourself.
Give us a 30 minute.
I know before we hopped onthis, you kind of gave me your little.
Your bio, but give me like 30 seconds.
Tell people really, the nitty gritty.
What.
Who is Jordan?
And you know, let us knowwho's Jordan?
Jordan is.
I grew up in a family with sixsiblings, four of them brothers.
(04:26):
Five in a row, right?
Boy, boy, boy, boy, boy.
Very Competitive family.
That's wild.
We're closer than any family Ireally know.
Like, we're always together.
And even though we bicker andfight because we're all athletes
and we're very competitive, weall love each other, so family comes
first.
In my life, I'm a father totwo kids, one on the way.
(04:46):
Some people might not knowthat, so they're hearing this for
the first time.
Whoa, whoa, whoa.
Hold on.
I got to, I got to.
I got to hear it again.
Yeah.
My wife's pregnant withanother boy, so I have a girl, a
boy, and one on the way.
Oh, congratulations, man.
That is.
Are you pumped?
I'm sure you're pumped.
Oh, my gosh, I'm so happy.
So I'm gonna have two boysright next to each other and the
(05:08):
built in babysitter, Piper, right?
Yes, yes.
But I think that family comesfirst in everything.
And the only reason I like todo real estate is because it gives
you a platform financially tobuy back your time and give opportunities
to your children, your wife,your friends, your family that maybe
(05:28):
might not have been there.
Right.
Like, I have some expensivehobbies, right?
Like scuba diving.
I'd like to travel.
I like to go scuba diving.
And you can't really do thatif you don't have money.
And then as a kid, I reallylike 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.
But I want to give thoseopportunities to my kids.
(05:50):
Say, hey, like, it's not afinancial burden.
So that's the reason I like tomake money.
I don't, I don't covet money.
I don't personally like the,you know, the two million dollar
cars.
Some people like that andthat's, that's them.
I would rather travel.
I'd rather do other things.
Experience.
What's that?
Experience is over, you know,things, I guess.
Right.
(06:10):
100%.
I prefer experiences.
And honestly, having a car isa cool experience, I'll be honest,
but it's just not the coolestthing for me.
Like, I'd rather go hundredsof feet under the water.
Dude, I gotta come.
I gotta confess something toyou, brother.
I.
I'm a wimp.
I went like five.
No, no, this wasn't five.
This was like eight years agowhen I was doing door to door sales.
(06:32):
We went on a trip cruise tolike Mexico.
And they no experience doingscuba diving at all.
They're just like a bunch ofMexican guys just threw like some
scuba tanks on Us.
And they're like, go.
And everyone started going inunderwater, and I was like, I don't
know what the heck I'm doing.
I breathe out of my nose allmy whole life just because I don't
(06:54):
want, like, people to smell my breath.
So I.
I'm always breathing throughmy nose.
So when I go there and thisthing's on me, I can't.
I'm like, I can't breathe.
I can't do it.
So I whisked out, dude.
I whisked out.
I didn't go underwater.
I couldn't figure it out.
I was like, forget this.
I don't even feel safe.
You just need the propertraining, man.
That.
That threw you probably into acenote, right?
(07:14):
I don't.
I don't.
What's the cenote?
I don't ever know.
One of those sinkholes, was itlike a big.
It was due to straight ocean, bro.
They were like, hey, let'slook at.
They were like, go out and on.
Your first dive, they threwyou right in open water.
They threw everyone into open water.
And they were like, don't comeup too hot fast or you'll.
You'll like, explode.
And I was like, yeah, forget that.
(07:36):
Oh, man.
Yeah, that's sketchy to saythe least.
But they were trying to make agood tip, right?
Well, yes, I felt like a wuss, dude.
I.
I bailed.
And like, a couple of theother guys just went and figured
it out.
I was like, I.
I ain't exploding today, but.
Yeah, I mean, come with me.
You'll learn.
But I.
I like scuba diving.
I like competitiveness.
I.
(07:56):
You know, I grew up wrestling from.
I can't even remember what age I.
Wanted to talk to you aboutthat because I did.
You know, I wrestled too.
I saw that.
I don't know the.
The whole background, but I.
I did see that in another podcast.
Oh, bro, I love wrestling, man.
I actually, I do Jiu jitsunow, which is grappling, but it's
submissions, and I did thatthis morning.
I do it every, you know, twotimes a week in the morning at 5:30.
(08:18):
I love it, dude.
It's so fun.
You Jiu Jitsu, if you haven't.
It's.
It's just like wrestling.
I did some jiu jitsu incollege and here and there, but it's.
It's a time commitment and it is.
Yeah, I.
I got to do it early in the morning.
Yeah.
Right now I'm.
I'm having a tough timebetween family, just lifting weights
and, you know, Raising capitaland traveling.
(08:41):
But you definitely got to pick.
Pick what?
Your hobbies that, you know as.
As you get, you know, deeperinto this stuff.
100%.
But I'm curious, sorry, realquick, about your wrestling experience.
Like, can.
Did.
Do you wrestle in college?
Did you wrestle, like, how'dyou do in high school?
I'm just curious because Iwant to know your experience level.
Yeah, so I was one of thosekids that just trained every single
(09:04):
day.
I.
I think as a freshman in highschool, I wasn't the kid that started
when I was, you know, threeyears old.
I started in seventh grade,like, competitively.
I think I did a little bitwith my brothers in sixth grade,
but a lot of improvement.
By the time I was a senior, Ididn't lose a state match.
I got disqualified from onefrom slamming.
A kid too hard in state.
(09:26):
You got disqualified in state?
I was up 8:1 and slammed a kid.
And not purposely, you know,of course.
Of course.
Chain, ball and chain.
And you have to hit your kneebefore his shoulder hits and accidentally
dislocated.
The kid's shoulder and youripped his arm off, huh?
Not on purpose, of course.
I'm just messing with you.
I.
The ball chain was like, my goto, bro.
(09:46):
I love the ball and chain.
Yeah, so.
So you were.
You're trying to, like, stack them.
You were, like, trying tostack them and.
Yeah, I got you, so.
No, I did.
I did really well my senior year.
I got better every year.
My senior year, I had thestate takedown record.
I was really into competitiveweightlifting, so I held what was
called the exponent record forweightlifting, which is weightlifting
(10:09):
times your body weight.
So I was lifting over athousand pounds between squat, power,
clean, and bench.
And I was weighing.
You know, I weighed in forthat competition at 133 pounds.
You were a tank.
I wrestled 135, so.
I wrestled 135, dude.
Yeah.
So we're around the same wayin high school.
You know, I'm 5 7, and it was.
(10:31):
It was a great weight classfor me and loved wrestling.
Did you have to cut hard?
No, no.
I did way more cardio in high school.
Right now.
I'm.
You know, it's hard to findtime to do cardio because I have
a bum knee.
I'm working on with a physicaltherapist on rehabbing my knee right
now.
So.
Yeah, it's just tough buttonstate, I'm assuming, right, if you
(10:54):
were, like, picking up athousand pounds and stuff.
Yeah, yeah, I did.
So I was.
I.
I praised third in the statebecause I Got disqualified against
the number one guy.
And then I placed seven.
Seven in the national tournament.
Oh, my gosh.
So you're an All American?
I don't even know, but probably.
I, I wasn't.
I didn't wrestle in college.
Right.
(11:14):
Oh, that's what I meant.
So college.
College is.
You place top eight, you'reall American, but you're saying seventh
national.
So you wrestled national inhigh school?
Yeah.
And so there's.
That's dope, right?
You know, I did pretty good inhigh school.
I.
I got third in state.
Dude, we're like, pretty, likeneck and neck 135, you know.
I got third, you got third.
That's wild.
(11:35):
Yeah.
So you should go at it.
You probably.
You probably crushed me rightnow because.
There'S something that you could.
You, you know, the.
The wrestling thing, that,that was a big thing because I was
up 8, one against the number.
The other number one guy anddid something I shouldn't have.
And you go and cry in a corner.
But then went undefeatedthroughout the rest of this day.
That was my very first match.
I was.
It was, you know, dang.
(11:56):
The whole story is actuallyreally cool.
I won't go into details, butanybody who knows me knows wrestling
was a serious sport.
I didn't do it in collegebecause they didn't have it at byu.
And I was a music major at byu.
In the beginning, when I gotback from my mission, I went straight
into business because the kindof music major that they had there,
it wasn't.
My style is more classical andthis and that.
(12:17):
And what was the instrumentyou were playing?
Was it the sousaphone?
No, I'm.
I'm a vocalist.
I love to sing.
If you.
If you go on my Facebook, youcan see a couple of performances.
Okay, you were singing.
I thought you were playing,like, some drums or the sousaphone
or something.
No, I love performing morethan singing.
I just love making people smile.
(12:38):
Ever since I was a little kid,you know, five years old, I'd go
sing in front of Walmart, geton the big stage and just vote, you
know, trying to.
I remember When I was 7 yearsold, I sang in front of 40,000 people
in Reno and for the nationalanthem for the big Sparks convention.
And the microphone cut out.
I was like, I don't care.
So I just started singing atthe top of my lungs.
(12:59):
Everybody joined in.
40,000 people singing thenational anthem with me.
And then the very last line,it kicked back on.
I was like, oh, it came backon as, you know, all over the newspapers.
Got to travel to New York.
Got to travel to Californiaand do ton of.
I love singing.
You know what I'm envisioning?
Because you said you would getin front of Walmart and sing.
(13:20):
You know who I'm thinking of?
The yodel.
The yodel or kid?
The kid that was yodeling.
That was you?
That, that was me, man.
I had no shame.
Oh, gosh, that's funny.
That's.
Yeah, so.
But yeah, I mean, I loveperforming and I want to do big things.
Right now my goal is to helpother people make passive income
(13:40):
because I think that helps youfollow your dreams.
Ever since I've gone into realestate, 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 arecoming in.
Right.
And it gives you time to do things.
I'm not saying I feel bad forW2 Income.
(14:01):
You know, they've chose thatand they're.
They're working from 9 to 5,but it's nice.
Like yesterday I had a guycall me and I was able to just go
somewhere randomly at 3 o'clock to meet up with a friend.
And then that freedom isdefinitely what I'm trying to get
myself and then also providefor other people.
So that's why I raise money.
That's a good mission.
That's a good mission.
So you're, you're reallyraising money to buy real estate
(14:24):
so you can help people achieve freedom.
Yeah, so that's exactly it.
You got these high income earners.
We're working with couple.
You know, we're working with aYouTuber that has over 11 million
followers on his YouTube channel.
Who is it?
You can't say it.
I don't know.
I don't want to say his name,but I'll.
(14:45):
I'll ask him if I can say iton the next.
Yeah, man.
Drop him, dude.
That's pretty cool though.
He's.
He's crushing it.
He needs to put his moneysomewhere, right?
Exactly.
It's just he's young, he's 24years old and he, he needs to put
his money into real estate.
So we're helping him with that.
We got some CEOs of hospitalsthat they know how to run a hospital.
They might make a milliondollars a year or more.
(15:05):
I don't know how many, howmuch a CEO of a hospital makes, but
they don't know how to makethat money work for them.
They don't have the time.
Right.
Yeah, it takes time to go out.
And find the deal, negotiateit, underwrite it.
That's my forte.
I've been doing it for awhile, over a decade now, just underwriting
deals and making sure we getgood returns for investors.
But they can put their money,you know, let's say they have 500
(15:27):
grand sitting in theirchecking account, that's making nothing.
They can hand that money overto me, I can go deploy it for them,
and then it makes them, youknow, $50,000 a year plus in dividends.
And then when we sell theproperty, they get an extra check.
I got a quick question for you.
So someone that has.
Are you really finding thatsomeone that has $500,000 and has.
Can make that kind of incomewould just put it in a checking account
(15:48):
or are they pretty savvy, likesomewhat sav to invest it?
No, there's tons of peoplewith over 500 is a small amount.
You'd be surprised there.
Some of these high incomeearners, they started a business
two, two years ago and theyhave all this money coming in and
they don't even know how toreinvest it into their own business
(16:09):
because they're growing so fast.
They're making commissions either.
I mean, you got theseespecially like been working with
the solar industry a little bit.
And because I did solar and Iknow how lucrative it is, some of
these CEOs, they're getting,you know, 25, $30,000 commission
checks just off their personal deals.
And then they have a salesforce that's growing nationwide.
(16:31):
They have way more than 500 grand.
And then of course, sell acompany, they might sell equity in
the company.
One of, one of our Buddies isselling 25% equity of his company,
which is worth 250mil.
Well, what do you do with 250 million?
Well, you tell me, what do youdo with 250 million?
That's, that's a lot of dough.
You have to put it into real estate.
(16:52):
Because the thing is, realestate is one of the asset classes
that is best for tax benefits, right?
You can defer taxes forever inreal estate.
You can keep rolling it intoother properties through what's called
a 1031.
So just keep going until youdie and then you're.
You never have to pay taxes on it?
No, never.
Never ever, ever.
Can the kids pay?
(17:12):
Deferring can.
Like if you inherit a propertythat needs to get like once someone
dies, does it go away or do they.
Would the kids have to pay it?
So no, there's a certainamount, right?
There's a threshold.
I want to say it's like 13 anda half million per spouse.
It's called step up basis.
You can Google it.
But let's.
Let's just say.
Let's just say I have a$500,000 duplex, right?
(17:33):
I buy it for 500 and then twoyears later, I sell it for 700 net,
right?
Maybe I sell for 750 and youhave all commissions, but I make
two grand profit off of it, right?
If I sell that duplex and takea $200,000 profit check, I have to
pay capital gains on that.
What is that, 30.
20%?
200 grand?
(17:54):
20%.
I mean, it depends on your taxbracket, but let's just say 20%,
right?
20% of 200 grand, $40,000 in taxes.
Do you want to rent a $40,000check for taxes?
Never.
No.
So what you can do is you cantake that money and put it into a
1031 exchange.
You know, you have anintermediary that holds the money
(18:14):
for you until you locateanother property.
I have a guy, actually, I'mworking with right now.
He bought a townhome way back when.
It's paid off.
He just sold it.
He netted 495,000 off a townhome.
Okay.
It's crazy to think whattownhomes worth nowadays, but he
has $495,000 sitting in a.
In an inter.
(18:35):
Intermediary fund with 1031.
And he has to deploy thatwithin a certain amount of time or
else he has to pay taxes onthat game.
What's the time, by the way?
Just curious.
I mean, I'm not an account.
I think it's like it's 45 tolocate another property and 90 to
close or something like that.
Honestly, I've never hit the timelines.
We always have deals lined up.
(18:56):
So it's not a.
It's not a problem.
If you Google it, It'll comeup like 45 and then 90.
But you locate the property,and then he uses that 495 as a down
payment, let's say on a $1.8million property.
Right now he owns a $1.8million property, and because he
rolled it into a biggerproperty, he doesn't have to pay
(19:18):
any taxes on it.
It's called deferred taxes, right?
So that deferred tax, let'ssay he owns that for eight years
and then sells the 1.8 millionproperty and a half mil.
So now he's made 700 grand.
He also made the 200 grand.
That's.
That's $900,000.
He's made, now he has to paytaxes on 900,000.
But if he rolls that intoanother property, let's say he buys
(19:40):
a four million dollarproperty, now he can own that four
million dollar property and ifit's bringing him in, you know, however
much a year, 150 a year, whowants to sell that?
Right.
They can just live off thedividends, off the cash flow.
Let me ask you, when he dies,sorry, let me ask you a quick question
for the viewers that mighthave the same question.
(20:00):
When you're buying these, whenhe's investing his money with you,
is he able to avoid the 1031,the, the taxes, is that a 1031 exchange,
even though he's not likemanaging it, doing anything like
that?
Yeah, yeah.
It's called a tenants in common.
The short answer is yes.
So we can take investor fundsfrom 1031 and they can roll that
(20:20):
into a fund with us.
So because you just, I'm notgoing to go into detail on that,
but the answer is yes.
Yeah, you're good.
You just made me think ofsomeone so I just did that.
I know one of my familymembers just sold the eight plex,
Right.
And they, I think they have acertain amount of equity that they
need a place.
I'm going to reach out to themafter this.
I just thought of them.
Yeah.
So with, you can have themroll it into another property and
(20:41):
then what happens is when theydie, like my state goes to a trust
and whoever is the inheritorof the trust, let's say it's my child,
or say me and my wife died ina car accident at the same time and
Piper's the inheritor, sheactually gets what's called step
up basis.
So a certain amount of moneyis non taxable that she inherits.
So we actually completelydefer all taxes into the next life
(21:05):
and then they don't have topay the taxes, they get an appraisal,
they have a new value andthat's what the wealthy do.
And so, and it's completelylegal, it's ethical, it's how the
tax code is written.
And if you know how to investright in real estate, you should
have little tax liability.
So I always thought when youwere like 70, 80 years old, if you've
(21:27):
been 1031, exchanging yourwhole life and then finally I feel
like I thought you had to likeget at least sell it and then pay
the taxes eventually.
But you're saying it can, youcan do it forever until you die.
Yes.
So you don't have to pay thetaxes ever?
No, but I am curious.
But somebody will eventually, right?
Like if the kids inherit theproperty, they're going to have to
(21:48):
know, is it done once you die?
So once you die, let's say,let's say I had, you know, $10 million
of.
Let's say I bought a propertyfor 500 and then over the course
of my lifetime, my assets areworth 10 million, right?
That's under the step upbasis, right?
So when my child inherited the$10 million of real estate, that's
her new line for taxes.
(22:10):
So.
But she doesn't.
She inherits it tax free.
It's step up basis.
They'll do a new appraisal.
There's no tax liability on that.
But as she makes money, she'llhave to pay taxes on it.
So if she makes $2 million,she'll pay, you know, if it's worth
12 million, she'll have to payon the $2 million.
Unless she 1031s it.
Now there is caps, right?
(22:30):
Like, yeah, I think it's, likeI said, I think it's 13 and a half
million per spouse.
Might be 12.
I don't know the exact amount.
So, you know, my, my childrendefinitely have to pay taxes, right?
Because our, our state's goingto be well worth a lot more than
that.
But at the same time, youknow, having a $24 million inheritance,
(22:52):
the first 24 million you don'thave to pay taxes on.
It's pretty amazing.
Let me ask you this, this is alittle outside, but what's your opinion
on letting in, letting yourkids inherit all that money eventually?
Do you feel like that's goodfor them?
What's your opinion on givingyour kids a ton of money eventually?
I mean, I think it depends onthe parents.
That's a loaded questionbecause you think about some of these
(23:12):
parents.
There are some parents that dospoil their children.
And you know, you see those,those funny TV shows where the, like
Harry Potter, right?
The kid who gets however manypresents and he's like, I wanted
more, right?
No, Dudley, he's the worst, right?
But if you treat, if you teachyour kids right, I know a lot of
millionaires, especially indoor to door sales where they've
(23:34):
had to grind, right?
Like, I know one, one guy thatI really respect, Todd Santiago,
right?
He's.
He was the vice president ofsales at Vivint Stud.
Amazing guy, very wealthy.
His ch.
His children, he has a couplechildren, right?
He makes them knock doors.
(23:55):
Like he had them knock doorsand start where when they turned
18.
I was like, oh, these kids aregoing to be like executives at Pivot.
No, like his oldest son wentout and knocked doors on a summer
sales team and then had tobuild his own sales organizations.
And if you know the kid, he'shad to work for everything.
But his dad has instilled thatwork ethic to where he's going to
(24:18):
be wealthy no matter what.
If his dad doesn't leave him apenny, he'll still be wealthy.
Right.
I think that's the right wayto do it.
Yeah.
Yeah.
So it just depends on the parenting.
I'm definitely not going tohave my kids be spoiled in any way,
shape, or form.
If they want money for me tofund them, and let's say, you know,
a gymnastics tournament wherethey have to go to Hawaii and spend
(24:39):
10 grand on this hugecompetition, I'll fund it.
But they better work theirbutt off to win that tournament,
because I'm their sponsor.
Yeah.
It's an investor.
I'm their sponsor.
Right.
Or if they're looking to starta business, I'm not just going to
hand them a $10 millioninvestment check.
I'm going to say, hey, youneed to learn the ropes.
(24:59):
Come shadow me.
That's why I think it's soimportant to have a partner, because
a partner is going to beinvested into, because when you make
money, they make money.
Right.
I actually believe in partnersmore than I do mentors.
I think a lot of partner, too.
A lot of mentors do that.
Yeah.
I think there's a lot ofmentorships where people will pay
$25,000 for a mentorship.
(25:20):
Right.
To be on this call, to be inthis room with people, rather than
having somebody pay me 25grand, I would be more willing to
vet them very carefully andsay, are you going to work?
Go do these homeworkassignments for me.
Right.
Go do this.
And if they show that they'regonna do it, I would rather give
(25:41):
them, you know, 5% equity in abusiness that's gonna be worth a
hundred million dollars andsay, go hustle with me.
Yeah, yeah, Right.
And they're gonna make more inthe long run, and they're gonna learn
side by side with me.
So going back in time, like, Ialways tell people this.
Whatever you want to do, goserve that person.
Yeah.
Go work for that.
No work.
(26:02):
You don't have to work for free.
You.
You tell them, and you pay mewhat you think I'm worth, and you
go learn from them and youcreate them value.
They're going to be addictedto you.
They're not going to want toever lose you.
And then that's when you can,you know, go off on your own once
you know it all.
But if they really like youand they're creating value, you're
going to stay with them.
Well, Jordan, I feel likewe've hit on some awesome topics,
(26:22):
and I feel like we got toprobably do another podcast.
Bro, this was good.
I mean, I feel like we got alot to talk about.
What do you think?
100%.
Yeah, anytime.
This is fun.
I love giving back.
And like I said, I just wantto be of service to people, whether
it's other people getting intoreal estate, and they're hitting
me up on Instagram saying,hey, you know, how do I raise millions
of dollars?
How do I close multifamily?
(26:43):
There's.
I could talk to them for hoursabout it.
The people that I'm gonna putthe most time into are.
The people are gonna bringvalue and say, hey, like, let's go
do a deal together.
But I also like talking topeople that are not in real estate
that just say, I don't wannahave anything to do with real estate.
I love real estate.
Just take.
I don't want to be in thegrind, but make me money.
Yeah.
And then I got to be like theguy in the Bible, the parable of
(27:03):
the talents, right?
Where the master gives thepeople the talents and two of them
go and multiply those talentsand are given more talents.
Talents were coins, right?
And one of them hides it ontheir floorboard, and he comes back
and he says, you thoughtful servant.
And he takes the talent fromthat one other guy, and that guy's
left with nothing.
(27:23):
That's my responsibility in life.
I feel like I've been given.
I've been given a lot ofopportunities to attain knowledge.
I'm not saying I've been givenknowledge because I do want to credit
myself, and I've taken thetime to learn from other people because
you got to have the desire to learn.
But once you have thatknowledge, you have to go spread
it and help other people.
Otherwise the Lord's going totake it from you.
(27:46):
You know, whether it's in thislife or the next.
I.
I believe in Jesus Christ andI believe that preacher.
He's given us everything.
I know.
I don't want to like to get religious.
No, I preach it.
I.
I'm.
I'm all about Jesus.
Whether you believe in a higher.
You believe in Allah or Buddhaor whatever it is.
Look, I got my Jesus statueright there.
Do you see it?
I Don't.
Where is it?
He's that white.
(28:06):
Oh, yeah.
Exactly.
Yeah, man.
I don't play.
So that's.
Everything I do is for Jesus.
I mean, everything.
I believe that every.
We've given.
Given everything in this life.
Our body, our skin, you know,the money that we have.
Literally everything.
Mosiah, you'll know what I'mtalking about, right?
Every.
We're in debt to the Savior100 of the time.
Breaking up, breaking up on me.
(28:27):
That's the devil right theretrying to take you down.
Oh, man, you there.
Yeah, man.
You broke up.
That was the devil trying tobreak you down.
Break.
Break up this.
But I feel.
I feel an obligation to give back.
Yeah.
So whether I make, you know,$20 million in this life or $2 billion
in this life, you know, itdoesn't matter.
(28:48):
Yeah, money doesn't matter.
It doesn't matter.
It just matters.
The effect I'm having on other people.
And honestly, first andforemost is my family.
And then after that, I stillwant to help others because I have
the capability to.
Well, Jordan, it's been apleasure having you on here.
We're definitely gonna have tohave you back.
And we're.
We're actually going to bedoing an event together.
(29:08):
What is it in.
In a two.
A week or two where me and youare going to be.
It's talking.
It's in nine days.
Next Saturday, January 13th or 14th.
We're gonna do it.
I believe we're doing it inOrem, right?
Mm.
So, yeah, Kylan Gornichek'soffice, security, home mortgage.
Anybody who wants to come,we're going to have a good lineup.
(29:29):
You'll be speaking, obviously.
I'll be speaking.
We're going to have.
My accountant is coming.
She can talk more about the 1031s.
She can talk about setting upS Corps, different ways that W2 people
can save money as well.
It's.
It's very powerful to get inthose networks, and I'm excited to
do that event.
We should have a really good turnout.
Sounds good, man.
(29:49):
We'll all promote it.
We gotta wrap up, but, youknow, we'll have to hop on another
one.
It's been a pleasure havingyou on here.
If you're in Utah, please makeit to that event.
Reach out to me, Reach out to Jordan.
If you want to connect withJordan, let me know.
I'll put you in touch withthem and.
Or, you know, Beast Real Estate.
All right.
Yeah.
Beast Real Estate on Facebookor Instagram, so.
(30:09):
All right, brother.
Well, we'll keep doing this.
We'll keep growing this.
That's what we're doing this year.
Let's blow it up.
Later, bro.
All righty, Nathan.
Talk to you later, man.
Bye.
We are live right now on thePainless Wholesaling podcast and
we have Jordan Lee, the CEO ofBeast Real Estate.
Guys, we.
This podcast is the PainlessWholesaling podcast where we show
you that wholesaling does nothave to be painful.
It can be painless if you doit the painless way.
And I bring on expert gueststhat show us how to make doing real
(00:29):
estate painless.
So it's not, it's not hardbecause you can learn from their
experience.
So we have Jordan Lee.
He's going to tell us a littlebit about his story so we can learn
how to not struggle, like whatyou're going to struggle with if
you just try to figure it outon your own.
Learn from his experience.
What's up, Jordan?
How you doing, Nathan?
I'm excited.
To be honest with you, man.
I've seen you everywhere.
You're.
You're blowing up.
(00:50):
It's fun to watch it progression.
Appreciate it, man.
Would you, Would you agree, Jordan?
Can real estate be painful?
Like, if you don't know whatyou're doing?
Yeah.
And that's why I, I think thefirst piece of advice that I give
to anybody is take a partner on.
Like, if I was 18, gettinginto real estate, even 17, like take
a partner on for a couplemonths right before you turn 18,
(01:10):
and it's insane.
The amount of knowledge thatyou can get from partnering with
people like you, me, or peoplethat have been in the industry for
10 plus years.
Is that, is that how youstarted, Bro brother, with a partner
or did you just go by yourself?
I did it the wrong way.
Yeah.
I don't by myself, to be honest.
Um, there's a.
Hindsight's always 20 20, right.
You look back and like, whydidn't I jump in sooner with somebody
(01:35):
and go in full time?
I'm not, I don't regretanything because, you know, I got
my start in door to door salesand definitely learned a ton there.
But the first five years ofreal estate was a grind.
Just buying and selling realestate on my own.
And even the first coupleflips didn't.
Have any partners, so that'simpressive, man.
(01:56):
You went in all alone.
I started with a partner andjust to kind of let you know the
importance of starting with apartner or someone that you can work
with.
Me and you are working together.
Like, I don't know anythingreally anything about multifamily.
I mean, a little bit.
Right.
But not that much.
And so you're gonna help methrough that, that transition and
we're gonna crush it, man.
It's exciting.
(02:17):
Love it, dude.
Yeah.
You.
You.
You teach people how to wholesale.
I'll stick to commercial real estate.
Obviously, we'll both pickeach other's brains, but it's nice
to have a partner and bespecialized because, you know, somebody
might be really good atmarketing, but they're not a good
closer.
Or somebody might be reallygood at analyzing, but they don't
want to talk to people or, you know.
(02:38):
So I think it.
Creating the right team ofpeople that have different strengths
and abilities is so important,especially when you're networking
and doing deals together.
So you don't want to be withthe same person as you.
Yeah, that's actuallysomething I've learned when I started
my business with Corey back inthe day.
Like, love my, my.
We're not business partners anymore.
(02:59):
Shout out to Tom Kroll.
He was like, hey, you don'tneed a business partner.
So we were business partners.
But we found out that in thebeginning when we started together,
we were just.
We wanted to support each other.
We wanted to, like, go andgive us emotional support.
But after a couple years, wefound out, like, we're the same.
Pretty much the same people.
We both like to do sales.
We both like to talk.
So the strengths didn't reallycomplement each other that much just
(03:19):
because we.
We both were good at prettymuch the same thing.
Right.
So just like what you said,you got to find people that compliment
you.
Like, can compliment you.
One plus one in a businesspartnership should not equal one.
Should equal four, ten, youknow, a hundred.
A hundred percent.
Agree.
Everybody on our team has adifferent personality.
And, or.
Or if they have the samepersonality, maybe they're working
(03:40):
in different part of sales.
Right.
Or different part of that.
You know, we have singlefamily and multifamily.
Right now we're doing biggercommercial deals, you know, millions
and millions of dollarscommercial deals.
So we're putting a lot offocus right there.
But yeah, it's important tohave a strong team.
So let's.
Let's kind of, before we diveinto what you do and how you raise,
(04:04):
you buy real estate with otherpeople's money.
Tell us a little bit about yourself.
Give us a 30 minute.
I know before we hopped onthis, you kind of gave me your little.
Your bio, but give me like 30 seconds.
Tell people really, the nitty gritty.
What.
Who is Jordan?
And you know, let us knowwho's Jordan?
Jordan is.
I grew up in a family with sixsiblings, four of them brothers.
(04:26):
Five in a row, right?
Boy, boy, boy, boy, boy.
Very Competitive family.
That's wild.
We're closer than any family Ireally know.
Like, we're always together.
And even though we bicker andfight because we're all athletes
and we're very competitive, weall love each other, so family comes
first.
In my life, I'm a father totwo kids, one on the way.
(04:46):
Some people might not knowthat, so they're hearing this for
the first time.
Whoa, whoa, whoa.
Hold on.
I got to, I got to.
I got to hear it again.
Yeah.
My wife's pregnant withanother boy, so I have a girl, a
boy, and one on the way.
Oh, congratulations, man.
That is.
Are you pumped?
I'm sure you're pumped.
Oh, my gosh, I'm so happy.
So I'm gonna have two boysright next to each other and the
(05:08):
built in babysitter, Piper, right?
Yes, yes.
But I think that family comesfirst in everything.
And the only reason I like todo real estate is because it gives
you a platform financially tobuy back your time and give opportunities
to your children, your wife,your friends, your family that maybe
(05:28):
might not have been there.
Right.
Like, I have some expensivehobbies, right?
Like scuba diving.
I'd like to travel.
I like to go scuba diving.
And you can't really do thatif you don't have money.
And then as a kid, I reallylike 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.
But I want to give thoseopportunities to my kids.
(05:50):
Say, hey, like, it's not afinancial burden.
So that's the reason I like tomake money.
I don't, I don't covet money.
I don't personally like the,you know, the two million dollar
cars.
Some people like that andthat's, that's them.
I would rather travel.
I'd rather do other things.
Experience.
What's that?
Experience is over, you know,things, I guess.
Right.
(06:10):
100%.
I prefer experiences.
And honestly, having a car isa cool experience, I'll be honest,
but it's just not the coolestthing for me.
Like, I'd rather go hundredsof feet under the water.
Dude, I gotta come.
I gotta confess something toyou, brother.
I.
I'm a wimp.
I went like five.
No, no, this wasn't five.
This was like eight years agowhen I was doing door to door sales.
(06:32):
We went on a trip cruise tolike Mexico.
And they no experience doingscuba diving at all.
They're just like a bunch ofMexican guys just threw like some
scuba tanks on Us.
And they're like, go.
And everyone started going inunderwater, and I was like, I don't
know what the heck I'm doing.
I breathe out of my nose allmy whole life just because I don't
(06:54):
want, like, people to smell my breath.
So I.
I'm always breathing throughmy nose.
So when I go there and thisthing's on me, I can't.
I'm like, I can't breathe.
I can't do it.
So I whisked out, dude.
I whisked out.
I didn't go underwater.
I couldn't figure it out.
I was like, forget this.
I don't even feel safe.
You just need the propertraining, man.
That.
That threw you probably into acenote, right?
(07:14):
I don't.
I don't.
What's the cenote?
I don't ever know.
One of those sinkholes, was itlike a big.
It was due to straight ocean, bro.
They were like, hey, let'slook at.
They were like, go out and on.
Your first dive, they threwyou right in open water.
They threw everyone into open water.
And they were like, don't comeup too hot fast or you'll.
You'll like, explode.
And I was like, yeah, forget that.
(07:36):
Oh, man.
Yeah, that's sketchy to saythe least.
But they were trying to make agood tip, right?
Well, yes, I felt like a wuss, dude.
I.
I bailed.
And like, a couple of theother guys just went and figured
it out.
I was like, I.
I ain't exploding today, but.
Yeah, I mean, come with me.
You'll learn.
But I.
I like scuba diving.
I like competitiveness.
I.
(07:56):
You know, I grew up wrestling from.
I can't even remember what age I.
Wanted to talk to you aboutthat because I did.
You know, I wrestled too.
I saw that.
I don't know the.
The whole background, but I.
I did see that in another podcast.
Oh, bro, I love wrestling, man.
I actually, I do Jiu jitsunow, which is grappling, but it's
submissions, and I did thatthis morning.
I do it every, you know, twotimes a week in the morning at 5:30.
(08:18):
I love it, dude.
It's so fun.
You Jiu Jitsu, if you haven't.
It's.
It's just like wrestling.
I did some jiu jitsu incollege and here and there, but it's.
It's a time commitment and it is.
Yeah, I.
I got to do it early in the morning.
Yeah.
Right now I'm.
I'm having a tough timebetween family, just lifting weights
and, you know, Raising capitaland traveling.
(08:41):
But you definitely got to pick.
Pick what?
Your hobbies that, you know as.
As you get, you know, deeperinto this stuff.
100%.
But I'm curious, sorry, realquick, about your wrestling experience.
Like, can.
Did.
Do you wrestle in college?
Did you wrestle, like, how'dyou do in high school?
I'm just curious because Iwant to know your experience level.
Yeah, so I was one of thosekids that just trained every single
(09:04):
day.
I.
I think as a freshman in highschool, I wasn't the kid that started
when I was, you know, threeyears old.
I started in seventh grade,like, competitively.
I think I did a little bitwith my brothers in sixth grade,
but a lot of improvement.
By the time I was a senior, Ididn't lose a state match.
I got disqualified from onefrom slamming.
A kid too hard in state.
(09:26):
You got disqualified in state?
I was up 8:1 and slammed a kid.
And not purposely, you know,of course.
Of course.
Chain, ball and chain.
And you have to hit your kneebefore his shoulder hits and accidentally
dislocated.
The kid's shoulder and youripped his arm off, huh?
Not on purpose, of course.
I'm just messing with you.
I.
The ball chain was like, my goto, bro.
(09:46):
I love the ball and chain.
Yeah, so.
So you were.
You're trying to, like, stack them.
You were, like, trying tostack them and.
Yeah, I got you, so.
No, I did.
I did really well my senior year.
I got better every year.
My senior year, I had thestate takedown record.
I was really into competitiveweightlifting, so I held what was
called the exponent record forweightlifting, which is weightlifting
(10:09):
times your body weight.
So I was lifting over athousand pounds between squat, power,
clean, and bench.
And I was weighing.
You know, I weighed in forthat competition at 133 pounds.
You were a tank.
I wrestled 135, so.
I wrestled 135, dude.
Yeah.
So we're around the same wayin high school.
You know, I'm 5 7, and it was.
(10:31):
It was a great weight classfor me and loved wrestling.
Did you have to cut hard?
No, no.
I did way more cardio in high school.
Right now.
I'm.
You know, it's hard to findtime to do cardio because I have
a bum knee.
I'm working on with a physicaltherapist on rehabbing my knee right
now.
So.
Yeah, it's just tough buttonstate, I'm assuming, right, if you
(10:54):
were, like, picking up athousand pounds and stuff.
Yeah, yeah, I did.
So I was.
I.
I praised third in the statebecause I Got disqualified against
the number one guy.
And then I placed seven.
Seven in the national tournament.
Oh, my gosh.
So you're an All American?
I don't even know, but probably.
I, I wasn't.
I didn't wrestle in college.
Right.
(11:14):
Oh, that's what I meant.
So college.
College is.
You place top eight, you'reall American, but you're saying seventh
national.
So you wrestled national inhigh school?
Yeah.
And so there's.
That's dope, right?
You know, I did pretty good inhigh school.
I.
I got third in state.
Dude, we're like, pretty, likeneck and neck 135, you know.
I got third, you got third.
That's wild.
(11:35):
Yeah.
So you should go at it.
You probably.
You probably crushed me rightnow because.
There'S something that you could.
You, you know, the.
The wrestling thing, that,that was a big thing because I was
up 8, one against the number.
The other number one guy anddid something I shouldn't have.
And you go and cry in a corner.
But then went undefeatedthroughout the rest of this day.
That was my very first match.
I was.
It was, you know, dang.
(11:56):
The whole story is actuallyreally cool.
I won't go into details, butanybody who knows me knows wrestling
was a serious sport.
I didn't do it in collegebecause they didn't have it at byu.
And I was a music major at byu.
In the beginning, when I gotback from my mission, I went straight
into business because the kindof music major that they had there,
it wasn't.
My style is more classical andthis and that.
(12:17):
And what was the instrumentyou were playing?
Was it the sousaphone?
No, I'm.
I'm a vocalist.
I love to sing.
If you.
If you go on my Facebook, youcan see a couple of performances.
Okay, you were singing.
I thought you were playing,like, some drums or the sousaphone
or something.
No, I love performing morethan singing.
I just love making people smile.
(12:38):
Ever since I was a little kid,you know, five years old, I'd go
sing in front of Walmart, geton the big stage and just vote, you
know, trying to.
I remember When I was 7 yearsold, I sang in front of 40,000 people
in Reno and for the nationalanthem for the big Sparks convention.
And the microphone cut out.
I was like, I don't care.
So I just started singing atthe top of my lungs.
(12:59):
Everybody joined in.
40,000 people singing thenational anthem with me.
And then the very last line,it kicked back on.
I was like, oh, it came backon as, you know, all over the newspapers.
Got to travel to New York.
Got to travel to Californiaand do ton of.
I love singing.
You know what I'm envisioning?
Because you said you would getin front of Walmart and sing.
(13:20):
You know who I'm thinking of?
The yodel.
The yodel or kid?
The kid that was yodeling.
That was you?
That, that was me, man.
I had no shame.
Oh, gosh, that's funny.
That's.
Yeah, so.
But yeah, I mean, I loveperforming and I want to do big things.
Right now my goal is to helpother people make passive income
(13:40):
because I think that helps youfollow your dreams.
Ever since I've gone into realestate, 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 arecoming in.
Right.
And it gives you time to do things.
I'm not saying I feel bad forW2 Income.
(14:01):
You know, they've chose thatand they're.
They're working from 9 to 5,but it's nice.
Like yesterday I had a guycall me and I was able to just go
somewhere randomly at 3 o'clock to meet up with a friend.
And then that freedom isdefinitely what I'm trying to get
myself and then also providefor other people.
So that's why I raise money.
That's a good mission.
That's a good mission.
So you're, you're reallyraising money to buy real estate
(14:24):
so you can help people achieve freedom.
Yeah, so that's exactly it.
You got these high income earners.
We're working with couple.
You know, we're working with aYouTuber that has over 11 million
followers on his YouTube channel.
Who is it?
You can't say it.
I don't know.
I don't want to say his name,but I'll.
(14:45):
I'll ask him if I can say iton the next.
Yeah, man.
Drop him, dude.
That's pretty cool though.
He's.
He's crushing it.
He needs to put his moneysomewhere, right?
Exactly.
It's just he's young, he's 24years old and he, he needs to put
his money into real estate.
So we're helping him with that.
We got some CEOs of hospitalsthat they know how to run a hospital.
They might make a milliondollars a year or more.
(15:05):
I don't know how many, howmuch a CEO of a hospital makes, but
they don't know how to makethat money work for them.
They don't have the time.
Right.
Yeah, it takes time to go out.
And find the deal, negotiateit, underwrite it.
That's my forte.
I've been doing it for awhile, over a decade now, just underwriting
deals and making sure we getgood returns for investors.
But they can put their money,you know, let's say they have 500
(15:27):
grand sitting in theirchecking account, that's making nothing.
They can hand that money overto me, I can go deploy it for them,
and then it makes them, youknow, $50,000 a year plus in dividends.
And then when we sell theproperty, they get an extra check.
I got a quick question for you.
So someone that has.
Are you really finding thatsomeone that has $500,000 and has.
Can make that kind of incomewould just put it in a checking account
(15:48):
or are they pretty savvy, likesomewhat sav to invest it?
No, there's tons of peoplewith over 500 is a small amount.
You'd be surprised there.
Some of these high incomeearners, they started a business
two, two years ago and theyhave all this money coming in and
they don't even know how toreinvest it into their own business
(16:09):
because they're growing so fast.
They're making commissions either.
I mean, you got theseespecially like been working with
the solar industry a little bit.
And because I did solar and Iknow how lucrative it is, some of
these CEOs, they're getting,you know, 25, $30,000 commission
checks just off their personal deals.
And then they have a salesforce that's growing nationwide.
(16:31):
They have way more than 500 grand.
And then of course, sell acompany, they might sell equity in
the company.
One of, one of our Buddies isselling 25% equity of his company,
which is worth 250mil.
Well, what do you do with 250 million?
Well, you tell me, what do youdo with 250 million?
That's, that's a lot of dough.
You have to put it into real estate.
(16:52):
Because the thing is, realestate is one of the asset classes
that is best for tax benefits, right?
You can defer taxes forever inreal estate.
You can keep rolling it intoother properties through what's called
a 1031.
So just keep going until youdie and then you're.
You never have to pay taxes on it?
No, never.
Never ever, ever.
Can the kids pay?
(17:12):
Deferring can.
Like if you inherit a propertythat needs to get like once someone
dies, does it go away or do they.
Would the kids have to pay it?
So no, there's a certainamount, right?
There's a threshold.
I want to say it's like 13 anda half million per spouse.
It's called step up basis.
You can Google it.
But let's.
Let's just say.
Let's just say I have a$500,000 duplex, right?
(17:33):
I buy it for 500 and then twoyears later, I sell it for 700 net,
right?
Maybe I sell for 750 and youhave all commissions, but I make
two grand profit off of it, right?
If I sell that duplex and takea $200,000 profit check, I have to
pay capital gains on that.
What is that, 30.
20%?
200 grand?
(17:54):
20%.
I mean, it depends on your taxbracket, but let's just say 20%,
right?
20% of 200 grand, $40,000 in taxes.
Do you want to rent a $40,000check for taxes?
Never.
No.
So what you can do is you cantake that money and put it into a
1031 exchange.
You know, you have anintermediary that holds the money
(18:14):
for you until you locateanother property.
I have a guy, actually, I'mworking with right now.
He bought a townhome way back when.
It's paid off.
He just sold it.
He netted 495,000 off a townhome.
Okay.
It's crazy to think whattownhomes worth nowadays, but he
has $495,000 sitting in a.
In an inter.
(18:35):
Intermediary fund with 1031.
And he has to deploy thatwithin a certain amount of time or
else he has to pay taxes onthat game.
What's the time, by the way?
Just curious.
I mean, I'm not an account.
I think it's like it's 45 tolocate another property and 90 to
close or something like that.
Honestly, I've never hit the timelines.
We always have deals lined up.
(18:56):
So it's not a.
It's not a problem.
If you Google it, It'll comeup like 45 and then 90.
But you locate the property,and then he uses that 495 as a down
payment, let's say on a $1.8million property.
Right now he owns a $1.8million property, and because he
rolled it into a biggerproperty, he doesn't have to pay
(19:18):
any taxes on it.
It's called deferred taxes, right?
So that deferred tax, let'ssay he owns that for eight years
and then sells the 1.8 millionproperty and a half mil.
So now he's made 700 grand.
He also made the 200 grand.
That's.
That's $900,000.
He's made, now he has to paytaxes on 900,000.
But if he rolls that intoanother property, let's say he buys
(19:40):
a four million dollarproperty, now he can own that four
million dollar property and ifit's bringing him in, you know, however
much a year, 150 a year, whowants to sell that?
Right.
They can just live off thedividends, off the cash flow.
Let me ask you, when he dies,sorry, let me ask you a quick question
for the viewers that mighthave the same question.
(20:00):
When you're buying these, whenhe's investing his money with you,
is he able to avoid the 1031,the, the taxes, is that a 1031 exchange,
even though he's not likemanaging it, doing anything like
that?
Yeah, yeah.
It's called a tenants in common.
The short answer is yes.
So we can take investor fundsfrom 1031 and they can roll that
(20:20):
into a fund with us.
So because you just, I'm notgoing to go into detail on that,
but the answer is yes.
Yeah, you're good.
You just made me think ofsomeone so I just did that.
I know one of my familymembers just sold the eight plex,
Right.
And they, I think they have acertain amount of equity that they
need a place.
I'm going to reach out to themafter this.
I just thought of them.
Yeah.
So with, you can have themroll it into another property and
(20:41):
then what happens is when theydie, like my state goes to a trust
and whoever is the inheritorof the trust, let's say it's my child,
or say me and my wife died ina car accident at the same time and
Piper's the inheritor, sheactually gets what's called step
up basis.
So a certain amount of moneyis non taxable that she inherits.
So we actually completelydefer all taxes into the next life
(21:05):
and then they don't have topay the taxes, they get an appraisal,
they have a new value andthat's what the wealthy do.
And so, and it's completelylegal, it's ethical, it's how the
tax code is written.
And if you know how to investright in real estate, you should
have little tax liability.
So I always thought when youwere like 70, 80 years old, if you've
(21:27):
been 1031, exchanging yourwhole life and then finally I feel
like I thought you had to likeget at least sell it and then pay
the taxes eventually.
But you're saying it can, youcan do it forever until you die.
Yes.
So you don't have to pay thetaxes ever?
No, but I am curious.
But somebody will eventually, right?
Like if the kids inherit theproperty, they're going to have to
(21:48):
know, is it done once you die?
So once you die, let's say,let's say I had, you know, $10 million
of.
Let's say I bought a propertyfor 500 and then over the course
of my lifetime, my assets areworth 10 million, right?
That's under the step upbasis, right?
So when my child inherited the$10 million of real estate, that's
her new line for taxes.
(22:10):
So.
But she doesn't.
She inherits it tax free.
It's step up basis.
They'll do a new appraisal.
There's no tax liability on that.
But as she makes money, she'llhave to pay taxes on it.
So if she makes $2 million,she'll pay, you know, if it's worth
12 million, she'll have to payon the $2 million.
Unless she 1031s it.
Now there is caps, right?
(22:30):
Like, yeah, I think it's, likeI said, I think it's 13 and a half
million per spouse.
Might be 12.
I don't know the exact amount.
So, you know, my, my childrendefinitely have to pay taxes, right?
Because our, our state's goingto be well worth a lot more than
that.
But at the same time, youknow, having a $24 million inheritance,
(22:52):
the first 24 million you don'thave to pay taxes on.
It's pretty amazing.
Let me ask you this, this is alittle outside, but what's your opinion
on letting in, letting yourkids inherit all that money eventually?
Do you feel like that's goodfor them?
What's your opinion on givingyour kids a ton of money eventually?
I mean, I think it depends onthe parents.
That's a loaded questionbecause you think about some of these
(23:12):
parents.
There are some parents that dospoil their children.
And you know, you see those,those funny TV shows where the, like
Harry Potter, right?
The kid who gets however manypresents and he's like, I wanted
more, right?
No, Dudley, he's the worst, right?
But if you treat, if you teachyour kids right, I know a lot of
millionaires, especially indoor to door sales where they've
(23:34):
had to grind, right?
Like, I know one, one guy thatI really respect, Todd Santiago,
right?
He's.
He was the vice president ofsales at Vivint Stud.
Amazing guy, very wealthy.
His ch.
His children, he has a couplechildren, right?
He makes them knock doors.
(23:55):
Like he had them knock doorsand start where when they turned
18.
I was like, oh, these kids aregoing to be like executives at Pivot.
No, like his oldest son wentout and knocked doors on a summer
sales team and then had tobuild his own sales organizations.
And if you know the kid, he'shad to work for everything.
But his dad has instilled thatwork ethic to where he's going to
(24:18):
be wealthy no matter what.
If his dad doesn't leave him apenny, he'll still be wealthy.
Right.
I think that's the right wayto do it.
Yeah.
Yeah.
So it just depends on the parenting.
I'm definitely not going tohave my kids be spoiled in any way,
shape, or form.
If they want money for me tofund them, and let's say, you know,
a gymnastics tournament wherethey have to go to Hawaii and spend
(24:39):
10 grand on this hugecompetition, I'll fund it.
But they better work theirbutt off to win that tournament,
because I'm their sponsor.
Yeah.
It's an investor.
I'm their sponsor.
Right.
Or if they're looking to starta business, I'm not just going to
hand them a $10 millioninvestment check.
I'm going to say, hey, youneed to learn the ropes.
(24:59):
Come shadow me.
That's why I think it's soimportant to have a partner, because
a partner is going to beinvested into, because when you make
money, they make money.
Right.
I actually believe in partnersmore than I do mentors.
I think a lot of partner, too.
A lot of mentors do that.
Yeah.
I think there's a lot ofmentorships where people will pay
$25,000 for a mentorship.
(25:20):
Right.
To be on this call, to be inthis room with people, rather than
having somebody pay me 25grand, I would be more willing to
vet them very carefully andsay, are you going to work?
Go do these homeworkassignments for me.
Right.
Go do this.
And if they show that they'regonna do it, I would rather give
(25:41):
them, you know, 5% equity in abusiness that's gonna be worth a
hundred million dollars andsay, go hustle with me.
Yeah, yeah, Right.
And they're gonna make more inthe long run, and they're gonna learn
side by side with me.
So going back in time, like, Ialways tell people this.
Whatever you want to do, goserve that person.
Yeah.
Go work for that.
No work.
(26:02):
You don't have to work for free.
You.
You tell them, and you pay mewhat you think I'm worth, and you
go learn from them and youcreate them value.
They're going to be addictedto you.
They're not going to want toever lose you.
And then that's when you can,you know, go off on your own once
you know it all.
But if they really like youand they're creating value, you're
going to stay with them.
Well, Jordan, I feel likewe've hit on some awesome topics,
(26:22):
and I feel like we got toprobably do another podcast.
Bro, this was good.
I mean, I feel like we got alot to talk about.
What do you think?
100%.
Yeah, anytime.
This is fun.
I love giving back.
And like I said, I just wantto be of service to people, whether
it's other people getting intoreal estate, and they're hitting
me up on Instagram saying,hey, you know, how do I raise millions
of dollars?
How do I close multifamily?
(26:43):
There's.
I could talk to them for hoursabout it.
The people that I'm gonna putthe most time into are.
The people are gonna bringvalue and say, hey, like, let's go
do a deal together.
But I also like talking topeople that are not in real estate
that just say, I don't wannahave anything to do with real estate.
I love real estate.
Just take.
I don't want to be in thegrind, but make me money.
Yeah.
And then I got to be like theguy in the Bible, the parable of
(27:03):
the talents, right?
Where the master gives thepeople the talents and two of them
go and multiply those talentsand are given more talents.
Talents were coins, right?
And one of them hides it ontheir floorboard, and he comes back
and he says, you thoughtful servant.
And he takes the talent fromthat one other guy, and that guy's
left with nothing.
(27:23):
That's my responsibility in life.
I feel like I've been given.
I've been given a lot ofopportunities to attain knowledge.
I'm not saying I've been givenknowledge because I do want to credit
myself, and I've taken thetime to learn from other people because
you got to have the desire to learn.
But once you have thatknowledge, you have to go spread
it and help other people.
Otherwise the Lord's going totake it from you.
(27:46):
You know, whether it's in thislife or the next.
I.
I believe in Jesus Christ andI believe that preacher.
He's given us everything.
I know.
I don't want to like to get religious.
No, I preach it.
I.
I'm.
I'm all about Jesus.
Whether you believe in a higher.
You believe in Allah or Buddhaor whatever it is.
Look, I got my Jesus statueright there.
Do you see it?
I Don't.
Where is it?
He's that white.
(28:06):
Oh, yeah.
Exactly.
Yeah, man.
I don't play.
So that's.
Everything I do is for Jesus.
I mean, everything.
I believe that every.
We've given.
Given everything in this life.
Our body, our skin, you know,the money that we have.
Literally everything.
Mosiah, you'll know what I'mtalking about, right?
Every.
We're in debt to the Savior100 of the time.
Breaking up, breaking up on me.
(28:27):
That's the devil right theretrying to take you down.
Oh, man, you there.
Yeah, man.
You broke up.
That was the devil trying tobreak you down.
Break.
Break up this.
But I feel.
I feel an obligation to give back.
Yeah.
So whether I make, you know,$20 million in this life or $2 billion
in this life, you know, itdoesn't matter.
(28:48):
Yeah, money doesn't matter.
It doesn't matter.
It just matters.
The effect I'm having on other people.
And honestly, first andforemost is my family.
And then after that, I stillwant to help others because I have
the capability to.
Well, Jordan, it's been apleasure having you on here.
We're definitely gonna have tohave you back.
And we're.
We're actually going to bedoing an event together.
(29:08):
What is it in.
In a two.
A week or two where me and youare going to be.
It's talking.
It's in nine days.
Next Saturday, January 13th or 14th.
We're gonna do it.
I believe we're doing it inOrem, right?
Mm.
So, yeah, Kylan Gornichek'soffice, security, home mortgage.
Anybody who wants to come,we're going to have a good lineup.
(29:29):
You'll be speaking, obviously.
I'll be speaking.
We're going to have.
My accountant is coming.
She can talk more about the 1031s.
She can talk about setting upS Corps, different ways that W2 people
can save money as well.
It's.
It's very powerful to get inthose networks, and I'm excited to
do that event.
We should have a really good turnout.
Sounds good, man.
(29:49):
We'll all promote it.
We gotta wrap up, but, youknow, we'll have to hop on another
one.
It's been a pleasure havingyou on here.
If you're in Utah, please makeit to that event.
Reach out to me, Reach out to Jordan.
If you want to connect withJordan, let me know.
I'll put you in touch withthem and.
Or, you know, Beast Real Estate.
All right.
Yeah.
Beast Real Estate on Facebookor Instagram, so.
(30:09):
All right, brother.
Well, we'll keep doing this.
We'll keep growing this.
That's what we're doing this year.
Let's blow it up.
Later, bro.
All righty, Nathan.
Talk to you later, man.
Bye.
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