The BEST time to be a real estate investor is upon us. All the fear mongering on social media is generally from those that haven’t been in the business long. Between today’s guest (Jerry Green) and myself, we’ve been investing for over 40 years…and share that wisdom with you today.

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FlipNerd Show Transcript:

Mike: [00:00:00] Welcome to FlipNerd, live discussions with and training from America’s very best real estate investing professionals. We meet live twice a month to discuss what’s working now and get your questions answered. We broadcast live inside of a private online community, which you can join for free by visiting flip nerd.com/live.

Let’s start today’s. Hey, Jerry, welcome to the show.

Jerry: Well, thank you, Mike. yeah. Glad to have you here.

Mike: Yes, sir. Yeah. Awesome. Well, uh, everybody excited to have you here today. Jerry Green is a veteran real estate investor. I’ll have him introduce himself here in just a moment, has a ton of, uh, amazing knowledge.

And I think most importantly in today’s show, we’re gonna be talking. The current market. A lot of people are scared to death and guys like Jerry and I are like, our mouths are watering. They like kinda licking our chops because this, honestly, this is the market I started and Jerry’s been through. Uh, markets like this before, this is the best time to be a real estate [00:01:00] investor.

So if you’re running scared right now, or you’re worried about this, this is the show for you. And in fact, uh, if you’re watching this live, we’d love for you to chat in a little bit and kind of tell us what you’re feeling, where you from. Are you nervous? Like on a scale of one to 10, 10 as you’re scared to death, one is, or let’s say 10 as you’re excited as hell.

How about that? And one is you’re scared to death, uh, kind of. In the comments here. If you’re not watching us live, by the way, if you go to flipper.com/live, you can get on our list. We’ll notify you of new shows that we do. We do this live show, uh, twice a month. And I’d love for you. Join us live and, and create some more interaction in here.

So if you’re, again, if you’re watching live, tell us on a scale of one to 10, one, you’re scared to death. 10, you’re super excited about the market we’re going into. We hope you’re excited and hopefully by the time this show’s over, you’ll definitely be more excited than you were before you got here. Cuz we’re gonna drop some great knowledge today.

So Jerry, tell us a little bit about your, your background. You’ve got a rich history of real estate investing. Tell us a little bit, a little bit about it.

Jerry: Yes, sir. Absolutely. Mike, well, first of all, thank you for, uh, having me [00:02:00] on today. I appreciate that. And I’m glad to share, so yeah, so yeah, I look at, um, uh, you know, Going back in time, it’s been, uh, 28 years now.

1994 is when I first started in this business. So, uh, been doing a long time, I guess that dates me a little bit. Doesn’t it? ,

Mike: we’re both getting old. My, I like to say wiser and better, so yeah. Yeah. That’s true.

Jerry: I, I have to tell my wife that one, so yeah. But yeah, well, you know, I started in 1994 in this business, um, back in, uh, it was in, um, over in Springfield, Ohio, and that’s where I got started at.

I started in it, um, by actually, I, I kind of got forced into it cuz I had, I had a choice either do that or get a job somewhere. And um, I was like, well, this sounds like, uh, something cool to do. yeah. So I went to a, I went to a real estate training in Cincinnati, Ohio. Um, by a gentleman named Charles Gibbons.

I don’t know if you ever heard of him, Mike. I haven’t heard that name. No. So [00:03:00] this is a long, long time ago and, uh, he’s passed away since then, but we got, I got started with him at a, uh, I think it was a three day training and I walked out the training, tried to figure out what I wanted to do. And I ended up actually hiring a mentor from that event or what was interesting was.

Uh, prior to that, you know, I was in the contracting business with my father, actually electrical contracting. And the reason that I went so quickly into the real estate space is because the business we were working in, we had a, a large general contractor fold up on us. And, and I ended up being in a position where I ended up going bankrupt and I had to figure out something to do and, uh, to generate money.

and so I decided to do real estate had no idea I was gonna do it hired a mentor, had to borrow my mom dad’s credit cards to be able to do that. And, uh, I got started in it and I, uh, started off actually by wholesaling way back then, of course, back then everybody thought wholesaling was like, what is this?

Never heard of such a thing. Right. Are you [00:04:00] crazying, that’s not legal. You can’t do this. And just continued the hammer on that side of this. A

Mike: lot of people still think.

Jerry: right. I mean, yeah, that’s true. Yeah. So I started doing that over and over again. And then I got in the fix and flip model, um, just kind of fast forward.

I got in and started buying some multifamily, bought a lot of single family rentals and duplexes three plexes, four plexes over those years,

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Jerry: even got into the commercial space sum. We were doing some family dollar. And general dollar stores, uh, for a while back in the earlier two thousands and just continued to grow. I even build it up to where we had a, um, one time, a turnkey rental model.

We’re doing that. And it just, all these things over those years [00:06:00] that I’ve done. And, you know, during that whole cycle and stuff, I went through a lot of stuff. A lot of people that know my story went through a personal tragedy, lost my first wife. Uh, with cancer. I had a newborn son. I was taken care of, uh, at the same time.

Uh, it was just a lot. And then I got to the point where I built this massive machine up, uh, Mike, and, um, it was probably, it was in the two thousands about mid two thousands. I got to the point where I just i’dly hated what I was. Um, because I got to the point where I realized this big mass machine I built was all about me.

It was just a constant drain. And, um, we ended up getting rid of about 75% of all the team members, pretty well cleaned house, and then rebuilt it again. But I built this time based upon actually doing it as a business. Sure. And, and focusing on that and building it out that way. So, you know, that’s been many years ago.[00:07:00]

Several thousands deals in the, in the, uh, pipeline. And, uh, so we build it out now where, um, we, it runs more of a machine and I’m, I’m not involved in the day to day anymore.

Mike: Yeah. That’s great. And that’s what everybody, that’s what everybody ultimately wants to get to. Right. And, and I think you’ve simplified your model a lot.

Not, not that it’s easy, but it’s, it’s a simple model of wholesaling. Right. And, and, and. Doing a stuff in commercial and all sorts of other things that kind of the problem with some of those complicated models is like a lot of the knowledge is in your head, right? It’s hard to convey. Well, when this happens, do this totally different thing.

And when this happens, do this totally different thing, you kind of streamline it and you’re, you’re making vanilla and chocolate ice cream and that’s it right. For the most part. Yeah,

Jerry: absolutely. But you know what, the cool thing about it, Mike it’s allowed me to, you know, a lot of people say, well, that’s so transactional.

Well, I look at this. If I, if I’m doing cell phones, that’s transactional. Okay. So when I look it’s just a business, I just happen to have real estate as a product. Right. And it [00:08:00] allows me to do other businesses. I still can. That’s right. I can buy and hold outside of that. I can do education. There’s a lot of things I can do.

Right.

Mike: Right. So you’ve got a lot of wisdom, Jerry. So the elephant in the room right now is. That a lot of people are afraid of this market we’re going into, uh, I spend probably more time than I should on social media. And I’ll say that, you know, if you were to rate what you see on social media, it’s a lot of doom and gloom.

And I think just the opposite. I, I came in in 2008, uh, and we didn’t know what we were doing and we were naive and the timing was just coincidental, but it ended up being the best time to get in because. um, it was a buyer’s market and a lot of the competition had gone away and it was just an opportunity to really blow up.

And we went from having no experience to doing 70 deals or so a year, mostly rehabbing. So kind of doing it the hard way, but, um, you know, I’ve been waiting for a down market for a while now, but a lot of people that got started and if you got started in the last eight or 10 years, like you don’t know this market cycle.

And I think it’s the best time, but maybe share your [00:09:00] thoughts on where we’re going for real estate investors.

Jerry: Well, number one, I’m super excited. so, cuz this is a big opportunity and I tell this to my team all the time. Yeah. I said, look, you know, it’s. I want you to understand this is a golden opportunity.

Don’t don’t, let’s don’t miss this. Okay. Right. Yeah. So we wanna, we wanna double down on things and really focus in because as we know on this side of things, it’s Mike, our big. Our big thing is I’ve, I’ve been through market cycles. I, you know, I mean multiple ones and even, and think a lot of the people don’t even think about like back in, uh, when nine 11 happened and what that done to the market and, um, all that side of things.

And then, you know, from 2008 and it it’s, but we’re at a different, we’re in a different place now. And, um, and none of us have a crystal ball, but I, but it’s very clear. That, um, we had [00:10:00] the market had to shift cuz we can’t keep this aggressive appreciation, the inflation the way it is. So it has to cool down some, but as that cools down, what happens is the big switch is an affordability.

Yeah. And that’s the big thing that we’re seeing is the affordability factor. So when that affordability factor drops and also what they look at too, is the, uh, what call the credit index is dropping two on things. Then it takes more and more buyers out of the pool, right? And, and, uh, or in a position where they had to be at a lot lower price point.

It was funny. I was talking to a guy the other day and he says that one of his clients, um, couple months ago, Could get a house for $150,000 more than he can right now, he had that much more buying power. So that really changes things on the marketplace. So it allows us

Mike: as real

Jerry: estate investors and entrepreneurs out there that [00:11:00] now we can really start.

Um, using our skills that we’ve been working so hard for for years and realize that it’s at the point now that, uh, we can help people out more and that we’re gonna see a lot more, um, opportunity because of the, the change in the marketplace. Um, you know, cuz you’re gonna find a, uh, the buyer pool’s going to continue to shrink on that side of things.

Uh, you know, another thing that we’re seeing Mike right now too, where we’re seeing a consistent. Flow where from the pandemic? When all the moratoriums and so forth had been pulled away. Now we’re starting to see a pretty good influx of people calling saying, you know, um, I had, uh, the forbearance set up and I’m, you know, I wasn’t making payment, but it wasn’t.

The thing is it’s not that they’re in a position where a lot of ’em are, uh, actually in a, you know, a pre foreclosure situation. But what happened was the pandemic and everything set ’em up too, where they [00:12:00] created new habits. Right, right. So you think about that new habits where they were used to not paying these, uh, you know, mortgage payments and stuff.

Now they bring ’em back in place, even though they’re in a position where some of ’em are being rolled to the end, it’s like they don’t want to anymore. Right.

Mike: Yeah. Yeah. It’s a weird, it’s a weird time. I, I think the message that I, that I’d like to convey top of what you said is just that, you know, even in 2000 8, 9, 10, right.

When the market was kind of down now, I’m in Dallas. So the market wasn’t hit as hard as Florida markets or Las Vegas or California markets, but it would be uncommon for, it would not be uncommon for us to completely rehab a. Put it on the market and have it under contract within the first weekend, even in that market.

And, and the difference is, you know, it’s the mindset of like, okay, maybe I’m not getting 40 above. Above market above, uh, list price offers anymore, but it really just takes one buyer. Like you don’t have to have hundreds of buyers and you just need one and in a market like Dallas, and I’ll kind of use that.

Cause that’s [00:13:00] my example. Not, not all markets are like Dallas, but there’s a population influx. Like there’s always people that are moving here that are looking for a house and, um, You know, it’s just kind of booming here and depending on what market you’re in, if you’re in a market that’s like a net outflow, like your population is decreasing.

You probably need to be a little more worried than if it’s increasing. If you’re in a Texas market, for example, or Arizona, really most of the Southeast and Southwest, you’re probably safer than, uh, other parts. Even the Midwest is very affordable. Like, you know, there’s people moving out of California and the Northeast and stuff to come to more affordable areas.

Right. And so I think the difference for what we did though, it would it wouldn’t this also wouldn’t be uncommon. We bought, we get a house under contract and the house across the street is, has a sign in the front yard. It’s listed the house down. The Street’s listed. We would close in 30 days, rehab the house over, you know, four to six weeks list the house, sell it and close.

And we’re pulling our signs outta the yard, which we don’t do that anymore. But pulling our signs outta the yard and the other ones are still [00:14:00] there. And it’s because we built a better mousetrap. Like they’re selling with emotion. When the market goes down, they still want to get that price that it was worth a year ago.

And we’re like, look, the market is stabilized or it’s kind of down. I’m gonna put out a better product at a better price and just insert yourself as first in line. Like every time, right? Yep.

Jerry: Hundred percent. It’s a game. Totally game. Yeah. And that’s the whole thing is you, you start to understand the game and it’s it just, you know, make sure you play the game.

Right. I, I shared a video the other day, just that. You know, I just said that the biggest thing on this is, you know, if you’re constantly running a hundred miles an hour on the wheel, you’re gonna miss a lot of this stuff. So you gotta be in a position where you can, at least, even if you’re doing a lot of stuff yourself, at least pull back enough to realize this, you listen to a podcast or something, you know, like the, or live show, like we got here today, the, you know, and just take some time to realize.

And start adjusting a little [00:15:00] bit. So, you know, you can be smart about it and that’s the biggest thing. Yeah. It’s, you know, it’s, uh, but it’s definitely changed. I mean, my COO, you know, she lives in, uh, Colorado Springs and, um, they built a new home, uh, just this last year. And I was just thinking about Enno Ashley and, and, um, I was Mike, she shared the other day that at the point where she bought their.

They were had a, um, lotto set up for people to even buy the lots. Okay. And now they have inventory setting, which they never had before. Yeah. And it, so, and that’s a higher price market, so sure. And so you’re seeing that effect, especially in those

Mike: higher end homes like that. Yeah. The higher end stuff is slowing down and, you know, we, we were actually you and I, well, we’ve met several times since then, cuz you’re an investor fuel, but we got together in Breckenridge.

We were just out in VA last, last week. And so we were out there on our Colorado trip, but um, And we were, we’ve been thinking, we [00:16:00] love it out there in the summer. You know, we talked about this, you and I, and uh, we thought about buying a house out there. And I was like, you know what? I think in those markets that are vacation homes or second homes or luxury home areas, like probably sit on the sidelines a little bit and wait and see what happens.

But if you’re dealing in the first time home buyer type market in almost any major Metro area, I think you. The, the biggest population, the biggest pool of buyers is still there. And, and, and I don’t wanna, you know, you don’t wanna confuse the retail market with the investor market either, because I think you, you probably know people that.

Uh, own a lot of rentals. Right. And they really haven’t been buying the last few years because they’re waiting for stuff to go on sale. And so some of those people have been hoarding cash or parking it somewhere else. And they’re now they’re starting to come out and they’re looking for deals again.

Right? Absolutely. And so that market hasn’t really existed as hot as it over the past few years as it will in the next few years.

Jerry: And we’re feeding them. We’re already starting to feed them. Yeah. yeah. So I’m

Mike: not gonna expect a better deal. [00:17:00] Right. And so the key is, I mean, absolutely back in 2008, I mean, this is, you know, when we started in 2008, we were kind of.

If you pay 65% of AR V less repairs, like that’s your max offer. And it’s crept up over the past couple years to where people are maybe paying me 80, 85% of AR V because there’s some unrealistic hedge fund or somebody on the back end, that’s paying some price that we all thought was crazy, but who am I to say?

They shouldn’t pay that much. Right. But you pick up those bad habits, right? You start paying more. For houses than you should, because somebody’s gonna pay you more than they should. And what’s gonna happen is that’s gonna normalize and kind of come back to being able to buy stuff at 50 to 65% of AR V less repairs.

And that’s where the market’s gonna kind of settle. Right? Yep.

Jerry: In fact, you know, that’s, uh, Mike two, it

Mike: was about two or three weeks ago, maybe three weeks ago,

Jerry: uh, across the board in our company for all our acquisitions reps, we adjusted and we said, okay, all ours take ’em down five, 6%. Yeah, so, and so we’re taking, uh, [00:18:00] we adjusted all that and we’re just gonna keep watching that because it’s, it’s adjusting.

So, and

Mike: sellers are gonna be a little more motivated now. Like they they’re used to hearing how hot the market is, and now they’re hearing how bad the market is. And the media like goes from one end to the spectrum or the other, they, they don’t know anything in the middle. They’re just sensationalism.

Right. So they’re gonna start talking about. How all these real estate markets are collapsing, or I certain saw somebody today that real estate market is coming to a screeching Hal. That was like, that’s crazy, but it’s yeah, that’s good

Jerry: for us when the, the sellers hear that.

Mike: right. Yeah. But think about, you know, for those of you that are watching, uh, you know, if you guys, if you’re, if you’re watching live right now, chat in like what, what it is you’re seeing in your market or how you’re feeling.

But at the end of the day, like, we don’t wish us on anybody, but we buy analysis from people that are in a difficult situation. Death, divorce, inherit. You know, financial problems of all sorts. And unfortunately, in a down market, you know, I, I’m not saying people die at a faster rate, but they continue to die.

It’s not like somebody’s like, you know, I was gonna die and sell my house, but, [00:19:00] um, the market’s kind of down, so I’m gonna hold off on dying right now. Like life still happens to people and unfortunately in a down market, financial difficulties become a little more prevalent. So, um, you know, in another set, another way a lot of your competition is going away.

And sellers, some sellers are gonna be in a more difficult position than they’ve been in the last few years and need to sell. So there might be more inventory coming into the market with less people competing for that, which means you win. Right.

Jerry: Absolutely. And it creates also a lot of, uh, seller finance opportunities.

Yeah. Yeah. That’s

Mike: of creative

Jerry: stuff. Yeah. Yeah, absolutely. So we’re gonna see more and more of that. So just so even on that side of things, Mike, So that we, this is part of the planning side. And I wonder all the viewers think about this is as that, as that starts to ship more plan now and train yourself more on these type of things that that’s, you know, that’s a big reason that, uh, you know, that, uh, you know, Mike obviously has [00:20:00] investor fuel and, and why we’re part of it too.

It’s constantly being up on top of these things and, and the changes that are happening. That’s a key component to it because then you can adjust ahead of. Right. So,

Mike: so let’s talk at a high level, Jerry, like, what are you doing differently and what are you kind of advice people do differently. Let’s start with dispo and then we’ll kind of go into acquisitions, like from a dispo standpoint, what are you shifting and what should people be thinking about kind of shifting?

Jerry: Well, I think one of the big things that we just, um, what I should say, what we do, and this is something we do regularly, Mike, is we about twice a year, we do what we call reset meeting within the. And in that reset meeting, we go through and just completely look at everything in the organization and think, okay, what do we need to adjust?

And everything regarding from each department on down. And that’s one of the areas we just did here. And one of the things we talked a lot was on the dispo side and what we, you know, what we really started looking at was. [00:21:00] Okay. You know, we’ve had a lot of activity over hedge funds and stuff over the last, you know, several years, but now we’re seeing more of cancellation of contracts, uh, things like that.

And being, you know, a lot different when it comes to the valuations and so forth. So we never put all our eggs in one basket. So that’s one of the big things I wanna share with you guys is that don’t put all your eggs in one basket on this. So on our. And some of you that are in the wholesale. One of the most important things you can do be doing right now is building your relationships with your buyers.

I cannot stress that enough. That is one of the key components to, uh, putting yourself in a position where you will win more than anything else. Cause I always think about this too, Mike, back in 2008, you know, and then we had the ripple effect from, you know, things for several years. It was funny, cuz we were doing a lot of fix and [00:22:00] flip them, but also we were still wholesaling them too.

And there was a ton of bank owned properties as you know, on that side of things. Right. Well, what, what we did is we made, we made it easier for investors to buy from us than it was with the banks. so I want you guys all to think on that side of things is make your process easier and it’s all about the relationship building.

So one of the big things we do, Mike, is we are, we are constantly on the phone. On the dispo side of things, talking to buyers, building the relationships, even setting up drip, email campaigns to them not to sell ’em product, but just to, you know, say hi, check in with them silly little things like just July 4th, we’ve done, uh, firework safety.

You know what I mean? It’s just so, but what is it’s about relationship building?

Mike: Yeah. Okay. Yeah. So right now you’re because honestly, there’s a lot of people that are probably listening to this, um, that have. Big mailing lists. And, you know, they shared [00:23:00] mailing lists with somebody else. They got a bunch of people on their list.

Right. But more often than not, they’re not communicating with them unless they have a deal. So you’re saying go out and just say, you know, this is a perfect time. Right. And I think you’d agree with this. Go out and say, Hey, how are you feeling right now? Are you still buying right now? Have you changed your buy box at all?

We’re still buying. If you wanna, if, if you want us to feed you deals, like let me know what it is you’re looking for and how you’re feeling right now.

Jerry: absolutely. In fact, we, we got to the point, Mike, where our internal list that we work with, unless we speak to you on the phone, you don’t even get in there.

Yeah. And we just got, you know, we just got that tight because I think so many people get that habit of just blasting things out. And that’s, that’s not how you operate on a high level, especially when it comes to market shift. , you know, you gotta be smart about that because the relationships is what gets you through.

So for, you know, I think about this too. It’s like, if you’re a buyer of mine, Mike, and, and I’m in a position where I, I [00:24:00] have this, uh, deal and you, and I’ve been working together over, you know, six months or a couple years, and I’ve kept in touch with you. I bring one to the table and I go, Mike, here’s, here’s the deal on this?

I know it’s a little. But love to be able to work with you. I know it’s right in your area and your buy box on things. Well, because I have that relationship, you might say, you know what, I’ll work with you on that. Jerry, I can do a little bit more. I, we can work together and still make this happen. So here we got a deal coming together that you would never have coming together.

If I was just blasting. Yeah. And I

Mike: think people have to remember, and, you know, I think everybody’s probably similar to me. I get hundreds of emails a day. Most of it’s junk and stuff just gets lost in email. Right. And that, that’s kind of where we are right now. Deliverability is terrible. Sometimes it doesn’t even get delivered anymore because the email service providers are, have just thought, well, that’s probably spam, so not, not even send it there.

You know? So I think, uh, are you doing more stuff via text and phone calls than just kind of [00:25:00] emailing?

Jerry: Yeah, we, we definitely do on that. That’s. It’s uh, in fact, we, we just, uh, had a, um, um, meeting this week and made another decision to hire someone else on the dispo side, just to help with the phone calls.

Yeah. Yeah,

Mike: so let’s, that’s great. Let’s talk a little bit about acquisition. So what do you do differently? You just talked a minute ago about, you told your team to let’s ratchet it down and start to buy deeper. Right. But anything you do differently from a Legion or acquisition standpoint in, in a market that’s starting to slow down.

Jerry: Well, I think on the lead gen, I mean, one of the things we’ve been doing obviously for 20 plus years is direct mail. We’re not backing off on that. We know it works. Yeah. Um, and I think that that’s one of the areas that we’re gonna continue on and obviously, you know, that’s yourself by having an investor machine like that, what, you know, that that’s a consistent flow.

So, um, so, you know, we’re, you know, I think that the, the marketing [00:26:00] component, what what’s interesting on things we’ve actually started to see more of an UPT. Here recently versus before we were starting to see a, kind of a down decline on things, but now we’re starting to see more of an uptick on that. So that that’s one thing is be, I, I can just tell you on the marketing side, this main thing is just be consistent.

Yeah. I see too many people. They just switch all the time. And I’m sure you see that too. My consistent, yeah, sure. Shift here. And it’s like be consistent with it. You, you know, you find two or three channels that work for you and just boom, boom, boom, boom, boom. And then measure those and make sure you understand, uh, your return on investment.

And then on the acquisition side, uh, I think the, to me, you know, obviously the big thing that I take that is, uh, a big place in my heart on things, is it all comes down really to sales process. Right? Get it. And if you’re, if you’re not F uh, doing that side of things, it’s going to cost you deals. Yeah, [00:27:00] 100%.

And I, I don’t know how many times I have to tell people this, you know, from students I work with to, you know, even team members, my team members have got it. Pretty good. Cuz I hammer it. on that side of things. But sales process is the difference between you. Um, I, I tell people this, I say, if you come onto my team and you’re a sales.

the difference between you following the sales process and really growing in it and not doing it is the difference between you making $75,000 a year and a quarter million a year.

Mike: Yeah. That’s the difference? Yeah, it’s, it’s in a sloppy market. Like what, like we’ve been in, I say sloppy, like you it’s like shooting fish in a barrel over the past few years.

Maybe. Um, people just pick up a lot of bad habits, right? They don’t necessarily follow a good process. They hire somebody that’s a salesperson, but they’re just. And I’ve, I’ve realized this a lot over the last like five years is there are people that I think are good at sales because they’re very personable and friendly.

Um, but they don’t really follow a [00:28:00] process. They’re just like, they have the gift of gab. Let’s say they’re a good talker. Yeah. But they’re not a good, closer, like, there’s so many people like that, that I’m like, oh, this guy is gonna do great. And just like, couldn’t get anything closed. I’m like, what is going on?

It’s like, they’re just not a closer they’re at the end. And some of it is, they don’t follow a process. They’re just like, I could talk to anybody it’s like, okay. But that doesn’t mean you. That doesn’t mean you can close deals, right? Absolutely. Um, so getting the processes and I think whether it’s, you know, getting more buttoned up or having somebody outsource your lead generation and, you know, getting the whatever training you need for your team to kind of follow that consistent process, um, is how you take advantage of the market we’re going into because being sloppy doesn’t work anymore.

Jerry: No, no, I totally agree on that. Yeah. Uh, I think the. The market, when, when, when the marketplace is really strong out there, there’s, you can do a lot of things and get away with it and look like a hero. And [00:29:00] still, you know, it’s just like some of the people, some of the prices they were paying for deals to flip and, you know, buy, fix and flip it’s like, well, you know, we can just put out there and push it up more and continue to push it.

And, you know, that’s, that’s all changing. So,

Mike: right. Yeah. Our, you know, one of the last things I’ll say on the acquisition side and, and lead gen side is, um, our kind of claim to fame. My wife and I is two. We started in 2008 and early 2009. Um, we, we started to become aware that a lot of people are pulling back on their advertising and stuff, and we saw our acquisition.

And our cost per lead, like going down. So we actually, we literally went up, uh, 500%. We were spending like five grand a month. We went up to 25,000 a month. And that literally is how we moved forward is we just leapfrogged everybody else. Cuz a lot of people were moving to the sidelines and we were leaning in.

Um, and I think that’s the type of market that is coming up. Is, there’s [00:30:00] gonna be a lot more, you know, you gotta make, they say, what do you say you have to make, Hey, while the sun is shining, like, yes, that time is coming, my friends. And so rather than be afraid, now you gotta be smart about things like, you know, uh, if you’re, if you’re used to selling to hedge funds, like a lot of that stuff is going away right now, or certain into sidelines.

If you’re used to using really cheap financing, that’s gonna change a little bit. If you’re used to doing really heavy rehabs, you should probably pull back to do more wholesaling or even whole tailing. Right. It’s just kind of pull that risk lever down. Uh, but never stop your acquisitions because I was talking to.

here over the past couple days that, um, had kind of slowed down over the past couple months on acquisitions because it’s been getting harder. They, they lost one of their sales guys, so they kind of pulled back and, and the problem now is that’s future revenue. Right? So if you pull back on that future revenue, you’re not gonna feel it right away, but you’re gonna feel it in the months ahead.

And then, and then it causes another spiral effect of like, I can’t afford to pay my team anymore. I can’t afford to advertise. Let me just stop for a month. And that’s like the kiss of [00:31:00] death of, yeah. It’s hard to recover from.

Jerry: Yeah, it’s all, uh, you know, tell everybody it’s, it’s all about maintaining the pipeline.

Yeah. Yeah. And you gotta, you gotta maintain that pipeline.

Mike: So Jerry let’s talk, uh, real faster. So you recently acquired the REI sales academy from John Martinez. John’s been a leader in the space of, uh, of training people on, on, uh, sales. And you’ve been training people on sales too. He’s been more of like, I guess kind of fundamental sales techniques and training your sales guys.

And you’ve been more on process of stepping outta the business and having a sales team that runs, and now you’re kind of pulling all that together. So maybe just tell us at a high level of what’s going on there and, and what we can expect from here on out.

Jerry: Yeah, so we, uh, it’s been Mike, uh, actually going on almost 90 days.

Since we acquired, uh, the sales academy from John, John, and I start working on this, uh, as you know, uh, it was last year and it was probably about eight months or so in the works before we were able to get it done. Um, it just, you know, John and I could have [00:32:00] got it done, but it, when you add on all the attorneys and everything else, um, that, uh, and the banks and all that, that’s where, you know how that is, that’s where all the delays are at.

Yeah. So, but we got it done. We were really, you know, just super excited to work with John on this and be able to take over the sales academy. And our big thing that we were looked at was, um, really bringing to in our eyes, uh, kind of the sales academy, 2.0. And what we’re focusing on is bringing a lot more of the practical knowledge.

Of doing the business for as long as I have to the sales academy and, uh, adding more value to that side of things, cuz John’s done a tremendous system building out the sales process and just about every team out there. Uh, even though the trainers have taken a version of this to put it in place. So it’s kind of the gold standard when it comes to real estate investor [00:33:00] sales trainings.

And we’re just looking at adding a lot more of the practical side of things when it comes to one, um, adding in some deal, structuring components to it, Mike. Okay. Such as like notation side, uh, some creative financing components. Cuz we find that what, what I’ve learned over the years of doing this is that you become really good at the sales process.

And then the look. What is the next step in the evolution? Well, the next step in the evolution is start bringing in what we call programs. So that way, when we’re talking to a seller, we can work the sales process. And not only can we do that and create more conversions at a higher spreads, but now we also can look at if somebody doesn’t.

And to program a, which is a cash, you know, typical discounted offer. We can take ’em into other programs and that’s what we’re gonna really [00:34:00] work on to help our students with and make sure that now they have additional ways to help sellers out and bring in more opportunities for their

Mike: business. That’s great.

And that’s the market we’re heading into is we talked about a little bit ago is using creative offers, creative finance, whatever it might be to get the job done, uh, because you know, uh, there’s a lot of cheap mortgages out there for example, and you might have to get creative in, in, in the shifting market here.

Jerry: Yeah, absolutely. So we’re literally looking forward to that. It’s, uh, you know, and interesting thing, Mike, it was, you know, um, that that’s been. It’s been a great experience. John’s done tremend its job of setting things up over the years and what, you know, it, it, it was another step in my comfort zone too, just on a personal basis.

Cuz here I’m, you know, started buying some companies and, and I love that because it fits right into what we are already doing.

Mike: Yeah. Yeah. Awesome. Well, [00:35:00] um, Jerry, thanks for sharing your wisdom with us today. If, if folks wanted to connect with you, where, where do they go? So

Jerry: one of the obvious you can reach me on social media.

You can hit me up on Instagram, the Jerry green.com or excuse me, the Jerry Green. You also can, uh, hit me up on my, uh, Facebook, Jerry Green and right in, uh, outta Germantown, Ohio and my website, the Jerry. So Jerry Green, everywhere there, and then also anybody that’s, um, you know, that they’re, you know, looking at on the sales side of things, uh, make sure to reach us, uh, reach out and just, all you gotta do is just Google real quick.

Re E I sales academy, that’ll come right up and we’ll take, go reach to our, uh, website, Midwest revenue dot. And I’m glad to help you in any way we can

Mike: on any type of sales training, good stuff. Hey, thanks for being such a, a giver in the industry. Jerry, we appreciate.

Jerry: Oh, yeah. Uh, Mike, thank you for all you do.

And, uh, I definitely appreciate you too, brother. Yeah.

Mike: Thanks man. For those of that are watching right [00:36:00] now. I hope you got some value from today. I’d love to have you kinda chat in here. If you, if you got some value out of this, go to flipper.com/live and you can register for our live shows. We’ll notify you of the, uh, next upcoming one.

And I should know this, but I don’t. I think maybe Trevor mock is, uh, next up. And also if you sign up, uh, at flipper.com/. You’ll get access, exclusive access to, uh, the last, I think we’ve done about six of these live shows here lately. So some other really amazing content with some amazing industry leaders.

So you will notify you of upcoming shows and we’ll let you know how to access, uh, the past few that we’ve done. So appreciate you guys a ton. Hope you got some great, good value today, Jerry. Thanks so much. Good to see you, my friend. Thanks, Mike. All right. Likewise, my friend. Have a great day. The best market that we’ve been in a long time is ahead of us.

So if you see all this fear monering online, uh, don’t let it scare you. At the end of the day, I kind of said this the other day, I just posed, I just made up these numbers, but there’s like when you go into in a recession, there’s like 10% of the people that are in the depression. I would say, [00:37:00] cuz like they’ve lost their jobs or they’ve lost their house.

It’s impacting them in a massive way. There’s 80% of people that are just gonna sit on the sidelines and wait until something happens a few years and there’s 10% of the people that are gonna be leapfrogging everybody else. And the key is to be in that 10%, like, you know, Warren buffet said, uh, something to the effect.

When everybody is fearful is that’s when you should be greedy. Right? And that is, and not greedy in a way to take advantage of anybody, but just aggressive in terms of moving the ball forward for your business or your family. So this is that time. Just be prepared for it. Be smart about it. Make good decisions.

Don’t be sloppy, uh, hire people like Jerry to learn how to improve your systems and processes, hire people like us and investor machine, or get around the right people at investor fuel and learn kind of how to take your business to the next level, or go bury your head in the sand and disappear for a few years.

Come back and realize you missed that on huge opportunities. That really is what we’re talking about here today. So hopefully you guys got some good value. We’ll see you on the next show. Thanks for joining me on today’s flip nerd. Live to get [00:38:00] access to our upcoming interviews with experts and get your questions answered and join our free online community.

Please visit flipnerd.com/live. Thanks again to our sponsor. Investor fuel is America’s number one mastermind community for professional real estate investors, where hundreds of the top investors from across the country come together to build stronger businesses and stronger lives. Our community is about giving and transformation.

If you’re ready to take your business to a whole new level, please learn more and schedule a call with us today at investor fuel dot. Investor machine is the nation’s number one done for you? Lead source for professional real estate investors, serving many of the highest performing and most respected real estate investors in America.

We use a unique approach to data that is truly unlike anything else on the market. Then execute your direct mail and skip tracing campaigns for you. Markets are filling up quickly. If you’d like to learn more [00:39:00] about our world class service, please visit investor machine.com. Find out why over 7,000 real estate investors and agents have chosen carrot to build their website to attract and convert more online motivated seller leads.

Visit flipnerd.com/carrot. To learn more about how carrot can help you. We look forward to seeing you on the next FlipNerd live real estate investor training. Please make sure to join our free community so you can join us live at flipnerd.com/live.

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