Jaromy Tagg Shares How He Went From Guitar Teacher to $50k/mo in 18 Months

Steve Trang: Hey, everyone. Thank you for joining us for today's episode of Real Estate Disruptors. Today we got Jeremy Tagg, and he flew in from Tri Cities, Washington to show you went from guitar instructor to 50,000 a month in just eighteen months. If this is your first time tuning in, I am Steve Trang, broker and owner of Stunning Homes Realty, founder of the OfferFast Homes app, the only MLS for off market wholesale properties. And I'm on a mission to create 100 millionaires.

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That way we can all grow together. And And don't forget, this is a live show. So please post your questions for Jeremy to answer. Ready? I'm ready.

Alright. First question is what got you into real estate?

Jaromy Tagg: Alright. How much time we have for the this is kind of a lengthy answer. Is that okay?

Steve: It's a length. Let's go for it.

Jaromy: Alright. So I'll start with I never ever imagined getting into real estate ever. It never crossed my mind.

Steve: Really? Yes. Okay.

Jaromy: My entire life, I wanted to be a rock star. Like, straight up 12 years old, I wanted to be a drummer. I was obsessed with the band Blink one eighty two and the drummer Travis Parker. I don't know if you're familiar with any of that.

Steve: I'm familiar with Blink one eighty two. They got fun songs.

Jaromy: They got cool songs. And I, that was my release. I came from a really broken home, and it was kinda crazy growing up. You know, I I love my parents dearly. I don't blame them for anything.

I really struggled, though, as a teenager, and music was my release. So I figured I'm going to be a rock star. Fast forward a couple years, I realized that drums don't get chicks. Any drummers out there? I I

Steve: I thought they do after the lead singer and the bass. They're last. No. I'm just kidding.

Jaromy: I just noticed all my friends playing guitar. There's a guitar laying around the house, and I became obsessed.

Steve: Mhmm.

Jaromy: Like, straight up just all day, every day, I became so unhealthy, like, is yeah. To an unhealthy obsession. Yeah. Till I dropped out of high school. I started touring with bands, and then that led to the lifestyle of wannabe rock star.

And then we started recording albums, and then we were on the radio a little bit. And we started playing with some pretty awesome bands. And That's cool. Yeah. It was pretty cool.

And I let it get to my head and was partying like crazy. And I got arrested multiple times, and I'll just be vulnerable with that.

Steve: Mhmm.

Jaromy: I I got arrested multiple times. The third time almost landed me in prison.

Steve: Yeah.

Jaromy: Straight up. I got out, and that that was it. That was where I was like, I need to change my life. And yet this wasn't where real estate even came in yet. I'm just gonna give you an idea of my background.

Like, I was full of financial limiting beliefs and just, you name it, limiting belief, I'm still working through a lot of it. Yeah. So, basically, I sobered up. I had a How old were you? I was this was eleven years ago.

Steve: Okay.

Jaromy: I was 19, just turning 20. Yeah. It was the worst time. And, yeah, within, like as soon as I turned 17 and I quit school, it was within two years. I was just on a warpath of going to in and out of jail and partying like a rock star.

And, I woke up, and I was like, I need to do something with my life. So I did what any normal guy would do. I started looking into college. So and music school. Because I'm I have this belief.

I I can't do anything. I I have a high I don't even have a high school diploma. I have a GED. I went and got that.

Steve: Mhmm.

Jaromy: And, basically, I started reading books and things like that, on what I should do. And I was like, I'll go to I'll go to music school. And so I I went to LA. I got enrolled into a music school, went down there, and totally got eaten alive, just smoked. There's all these kids internationally coming down there.

I was like, man, I'm not that good at guitar.

Steve: Mhmm.

Jaromy: And I was. I was pretty good then. But, I came back, and I was like, I need to look for some guitar lessons and become classically trained and finalize that part of my, repertoire, I guess. And I ran into a guitar teacher, and we became really good friends. I told him what I was doing.

He's like, dude, check out this book. And It was called Think and Grow Rich.

Steve: Mhmm.

Jaromy: And that changed everything. That's where the it really started. Not real estate, but that's where I started changing my life. Yeah. And then I got into Tony Robbins, Dale Carnegie, Brian Tracy, and it just became this windfall of self development and sales and marketing.

And so we decided to start teaching guitar full time. I kiboshed the whole college plan.

Steve: Mhmm.

Jaromy: I said, I'm not going back there. Why do that and go, you know, a $100,000 in debt and live in Hollywood

Steve: Right.

Jaromy: That's where the school was versus staying here in Tri Cities, and I'll just teach guitar. And I was working three jobs at the time, and I was driving to people's houses that I met on Craigslist,

Steve: Mhmm.

Jaromy: Teaching them guitar, just broke, paying off all these court fines. I was up to my ears in debt, basically, like, borderline homeless, you know, and and just scraping by. And, yeah, 10 students turned into fifty, and fifty turned into a 100, and then a 100 turned into a 150. And then we've started hiring more guitar teachers, and things were looking good. And this by this point, it was about 24 years old.

Steve: Mhmm. And

Jaromy: there is a little three year stretch where it was just like on. It was all about marketing. It's about sales. And I became actually more obsessed with business and entrepreneurship than I did guitar.

Steve: Which is natural progression for any business.

Jaromy: Right. And I was like, this is so cool. This is like my own I can orchestrate just like I did music business. And so, basically, him and I, were doing a lot of good things, and I'm I'm just so grateful that he introduced me to that book and then introduced me to another mentor who is a millionaire guitar teacher. And so we're like, we're gonna become millionaire guitar teachers.

And, basically, scaling a business like that is tough. Yeah. K? I'm not saying it can't be done, but it's tough. And the margins are, like, real thin and real small.

And you have to teach so many students. And to sell guitar lessons at a premium is now a blessing for me, but then was, like, so hard.

Steve: Right.

Jaromy: So hard. And you hard close people, and then you have to continue hard closing them on staying enrolled month after month after month. And it was just crazy. This and I was like, there's got to be a better way.

Steve: Mhmm.

Jaromy: And that's when I I you know, down the self development line, I started reading all these books, and I came across Robert Kiyosaki, of course, you know, that that natural progression.

Steve: I started

Jaromy: like, there's something to real estate. And, I didn't even know what earnest money was, okay, to give you an idea. I I obviously never bought a house. I came from a family where my dad bought a house, but at that point, I was, like, leaving, and I didn't see anything. I didn't have any examples.

And, basically, I was like, okay. Well, I have a little bit of money, you know, and maybe I'll invest in a rental or something like that. I gotta invest my money because I was doing well, you know, for a guitar teacher.

Steve: And well for a guitar

Jaromy: teacher is? Like, our business was doing, like, 350,000 a year Mhmm. Gross

Steve: Gross. Right.

Jaromy: Plus employees. You know. So I was making $5,060,000 a year.

Steve: You were killing yourself.

Jaromy: I was killing myself.

Steve: For $50.60 k a year.

Jaromy: Yeah. It was insane for the passion. Right?

Steve: Right.

Jaromy: And I was like, there's gotta be a better way. And, I was frankly getting sick of playing guitar, and it started making me, like, feel insane. I was like, this is wrong that I don't like my passion anymore. So that's where I I started looking for things. I looked into multilevel marketing.

That's where I started looking into real estate. I was looking into drop shipping, like car sales even. I was like, man, there's gotta be a better way. There's gotta be more. And then I looked into flipping houses, like, screw that.

Like, I am not handy. I I don't even change light bulbs type of thing. And then I saw a a webinar, and I was like wholesaling. That sounds illegal almost. But if that's real, I think I might be able to do that just on the side, make a couple bucks extra.

And that's when I bought a course, and then it was good, gave me the basics. I went and talked to an attorney. This was October no. No. No.

Excuse me. August 2017. I had just learned about it. And then I bought another course two weeks later because I really like intricate detail. And that course had a lot of intricate detail.

And from there, I went out and I got my first deal. I just saw for sale by owner, and I was, I'd say, blindly naive enough to believe that there's, like, no competition. And, like, I had no idea what world I was stepping into. I go knock on the dude's door, and I'm in, like, a three piece suit because that's what I taught guitar in and thought I was super professional. It's crazy.

Steve: Classic outfit of a wholesaler.

Jaromy: Right. And I walk up, I knock on the door, and I'm like, hey. What what's going on? You know? I see you have a for sale by owner sign.

He's like, yeah. I put it up fifteen minutes ago. I said, well, I was like, mister I was, like, into Grant Cardone at the time. And then I I like Grant's style of selling. I won't go too deep into that, but I was really high pressure closer at that point in my sales career.

So I was like, well, let's get that yard or yard sign out of here. Let's do a deal. You know? I'm just being super aggressive. Come to find out, he just kicked out his tenants.

He's fixing up the house to sell. And I told him, I was like, well, I wouldn't be actually buying the property. I would be selling the contract. And I have some people that might wanna do that because I was kinda building my buyers list beforehand and doing that whole process. And, he's like, if you can get me $90 for this property, it's yours.

I don't care what the hell you do with it. I was like, okay. Sounds good. Well, I ran home, got my purchase and sale agreement from the program. We wrote it up on the kitchen counter, and that was that.

I blasted it out by hand to my buyers, like, one by one

Steve: Mhmm.

Jaromy: Text, and then I started calling them. And I got some interested parties. And couple guys came over. And we did the deal, and they bought it for 100.

Steve: And So you closed your first wholesale deal?

Jaromy: Yeah. Awesome.

Steve: So when was approximately what like, did you start the course, and when did you start going door knocking for for sub by owners?

Jaromy: So I did the course, and I'm kinda crazy in this regard. I did the course twice in ten days. Like, I just monstered through it, pushed through it. So I that was about I learned about what wholesaling was. I got Dean Graziosi's book, millionaire success habits.

So I and then I learned about what it was. I got my first course. That was, like, two weeks learning what wholesaling even was. Then two weeks after my next course that I did that then so that's a month. And then I went into I I was like, okay.

I'll go put up some bandit signs and door knock, I guess. Mhmm. And I did some door I did some door knocking, but then I saw this Fizzball on my way to work, and I just knocked on his door. That was thirty days into understanding really what wholesaling was, I guess.

Steve: Well and I admire that. Right? So you took the course thirty days later Right. You were doing it. Oh, I was obsessed.

Because, like, that's one of the complaints. Right? You know? Mhmm. People are always knocking YouTube University.

Jaromy: Right.

Steve: Because you can watch YouTube all day. Right. And not take any action. Right. So watching YouTube, whatever, that's not the problem.

It's got what what you do Right. With information. So you found your first deal after a month.

Jaromy: Yeah. I mean, I just was, like, come hell or high water. I'm getting the deal. Like, I didn't know there was competition. I didn't know there was, like, this crazy market.

I didn't know anything. And I I joke now, like, I wish I could get back to being that naive again a lot of the time. Like, if I could bottle that, and that's, like, one of my biggest things right now is, like, just under, you know, that mindset. But, yeah, we we ended up thirty days later closing that deal. So from starting to learn wholesaling to closing my first deal was about sixty days.

Steve: Wow.

Jaromy: Made 10 k. Yeah. And I was just like

Steve: A little better than your guitar. Dude, you

Jaromy: know how many guitar students gonna take to make that much in that amount of time? It was insane. So and to keep that reoccurring. So then I was like, could I keep doing this? Like, is this just a fluke?

And, like, the whole time, I was, like, up all night. I was, like, you know, going psychopath. Like, I didn't tell anyone at the guitar school. They didn't even know that I was, like, suffering inside about I didn't talk to my buddy who we were, you know, building this thing together, come to find out later down the road that they weren't okay with it. That's a whole other story.

Steve: Mhmm.

Jaromy: But,

Steve: They weren't okay with you wholesaling.

Jaromy: Yeah. They didn't want me doing another business. Him and then we brought our partner. Yes. And men our mentor.

Steve: We

Jaromy: had, like, this chain of command, mentor, him, and then myself. So he was, like, my boss slash partner.

Steve: Mhmm.

Jaromy: And I I got paid, like, commission and anyways. And I I was supposed to have equity in the company, but it it all got kind of as soon as I started making real estate money through wholesaling, I was like, I'm out. Yeah. And that took about after that, it was October three months.

Steve: Mhmm.

Jaromy: And and yeah. So I guess for a long winded answer, that's how I got into real estate and got my first deal done. And in between that time, I also like, I let that that was the game changer. Was in between the thirty days is I didn't just be like, oh, I have a deal closing. I kept on going nuts for it.

Like, I was like, I have to figure this out. And that's a whole other story. I don't know if you have any other questions for me.

Steve: Well, absolutely. Of course. So you got your first deal. I mean, typically, the first deal is a challenge. Right?

It's, like, elusive. Like, is this a real thing? And is that that mental game? Is wholesale real? Can does it really happen?

Right?

Jaromy: Right.

Steve: But you got your first wholesale deal pretty smoothly.

Jaromy: Mhmm.

Steve: So what were your struggles after that first deal?

Jaromy: Good question. I mean, there are so many struggles. I guess some of the biggest struggles were keeping it consistent and consistently closing. Yeah. I guess I I thought that because I came from a business where it was reoccurring revenue Mhmm.

Month after month. And it would go up, and it would go down. We're a subscription model, but live. Mhmm. So, basically, I wasn't used to, like, oh, I can go six weeks without closing anything, and then all of a sudden, like, $90,000 closes.

Steve: Yeah.

Jaromy: That's been the biggest struggle for me

Steve: Mhmm.

Jaromy: Mentally. Because I went from a total, like, employee mindset from my parents to pseudo, subscription model, and it would float, but we'd always be within the same range to almost like a feast or famine type of model because and we've talked about this on next level flipping too, and it's like, dude, that's just what's gonna happen. Like, you're gonna and then everything averages out over a quarter and over a year and over time. So I'd say that's probably my still biggest struggle. It was, like, learning.

Okay. It's forced me to become so much better at accounting, so much better at managing, you know, my time, things like that.

Steve: Yeah. I mean, I think kinda what you're talking about is when I first got into real estate, I also came from a corporation. I worked for rental three and a half years. And I remember, like, when I first got into real estate and for the longest time, I was thinking traditional real estate. Like, this is a cutthroat industry.

This is the most capitalistic industry there is. Mhmm. And then again, wholesale. That is the ultimate bastion of capitalism. Right?

Right. It's totally eat what you kill and that's that. And there's no sympathy. Mhmm. There's no one feeling bad for you

Jaromy: out there.

Steve: You gotta be you gotta go fight for what you want. Okay. So struggling a little bit with the, with the ups and downs. So have you done anything to what have you done to reduce the ups and downs?

Jaromy: Good question. What have I done to reduce the ups and downs? Really, I guess, taking it to scale has helped a lot and finding my purpose why, I guess. And I don't know if I'm getting too deep too fast, but really just understanding that, yeah, I'm a capitalist. I love capitalism.

I'll I'll talk about that all day long. And it was funny because I was a capitalist running a liberal arts school. It was this weird dynamic. But, basically, like, I I would say that I'm serving not only my my client anymore or our client. It's now I'm serving my team members that I have.

It's a small team. However, I'm now serving them. I'm serving their family, and they're serving the next team member down and so on. So, like, I guess anytime that I'm struggling or suffering, you know, internally, which everyone does Mhmm. That's what I come back to.

It's like, why are you doing this? You know? It's it's to it's to further something greater than myself.

Steve: Yeah.

Jaromy: And that's what helps me through everything. When those nights of, you know, I wonder if this deal is gonna close. The nights of, you know, just had one where it's like, hey. We're pleading mentally ill, and you were backing out of the and we we were about to make 23 k and our end buyer was gonna make a huge spread too. It was a fantastic deal.

And it's just like, oh, that sucks. I don't make money. And then on you know, you can or your accountant calls you and they say, hey. We made a mistake. You actually owe, like, 10 k to us instead of 2 k.

Like, you already paid or whatever. And

Steve: Lost stomach punches.

Jaromy: Yeah. There are tons. It's a roller coaster. And so, like, my why and then staying in state, like Tony Robbins talks about Right. Is getting into state.

And I'd say those are, like, the two biggest things that I have to remind myself of every single day, including this morning coming here. The self doubt, the fears, the voice talking inside of your head. Who are you to do this podcast, Jeremy? How are you worthy, Jeremy?

Steve: Mhmm.

Jaromy: You know, and being real with myself and then moving forward. And and that's, I guess, kill the monster while it's small

Steve: Yeah.

Jaromy: Every day, if that makes sense.

Steve: Yes. It's the picking the weeds.

Jaromy: Yeah. Because because you're inevitably gonna be faced with them now. I've only been doing this going on two years and I already know even from the other business. But now with this one being so hardcore, you know, it's like you're going to face major struggles period. And if you don't, if you're not willing to accept that, you might as well.

Well. I don't know if it's negative to say. You might as well not even start.

Steve: But Yeah.

Jaromy: Man, it's you're gonna have a tough road.

Steve: Oh, it's a very tough road. You have to have a very high self image Mhmm. High self worth to put yourself through the the torture Right. Of this business.

Jaromy: It's It's it's insane.

Steve: So you mentioned something about Tony Robbins' state. Can you elaborate on that?

Jaromy: Yeah. So I that was a huge game changer for me when I started teaching guitar and getting into business was he talks about your physiology. Mhmm. And, it all starts there. And, recently went to Unleash the Power Within.

That was a live event. So How

Steve: was that?

Jaromy: Amazing. Recommend it to anybody.

Steve: It's on my list.

Jaromy: Yeah. Walked on fire. Did the whole four days. It was freaking insane.

Steve: Mhmm.

Jaromy: And I he teaches you how to basically get into that physiology versus the kind of slump down the shallow breathing, all that kind of stuff. So the first thing you got to do is move Mhmm.

Steve: In

Jaromy: the morning. You know what I mean? And that doesn't mean you have to go run 10 miles, but just twenty minutes around your block. Just open yourself up, get moving, and then you, after that, do like a priming exercise where maybe gratitude. And then after that, I like to study.

But that that would be getting into state, getting into peak mental state all the time. Like, right now, I can feel we're really in flow. Mhmm. And it's exciting and all, you know, instead of just, well, yeah, real estate's cool. Like being in peak physical Yeah.

State and mental state all the time, if that makes sense.

Steve: It does make sense.

Jaromy: Yeah.

Steve: And then you mentioned your why. Is that something that you want to share?

Jaromy: Yeah. My why is elaborate. But in a nutshell, to to summarize it, is to help other people, especially that struggle with addiction, who struggle with broken homes, who struggle with self confidence issues and help them move past those because those are all things that I really struggled with and still struggle with to this day. And, yeah, I want to make enough money and be passive enough to where I can start, donating instruments to kids who literally can't afford it, and and qualify for that, I guess. So that's another branch of it.

But ultimately, it's it's to give beyond myself all the time. All the time. And and know that when I'm about to die, that I did give as much as I actually could.

Steve: Right.

Jaromy: I I know it may sound generic, but, ultimately, my passion comes in seeing other people succeed and seeing, people get past and move past their addictions and whether that's food or whether that's heroin

Steve: Yeah.

Jaromy: You know, and helping people move past those things because nobody deserves to suffer internally their entire lives because they didn't have a handout. Like, a not a, you know, freebie, but someone there to help them.

Steve: Right. So it's, you know, I reached out to you about being on the show because you were part of my journey of getting this podcast started. So, you remember, when we met at Dean's event last year. Mhmm. Right?

It's just all of this huge coincidence because, like, you know, I was there with Vic. Vic had an extra ticket, asked me to go with be his guest. So I wasn't even paid to go to the event. And so I'm going there with Vic, and we're hanging out. And, we had that, VIP event.

Jaromy: The breakfast.

Steve: The breakfast. And so, we sat next to each other and we're talking business. And you're talking about how you were doing, like, six deals a month or some number back in your, in Washington. I was like, man, how's this guy doing all this? Like, we're over here struggling because I was still getting my business up and running.

And he's like, oh, yeah. I just I just put Panda signs. That's it. I have close to six deals a month or whatever it was. And so I thought it was really cool to have you on the show because you're part of, you know, my journey and you're obviously doing really well because you're here for a reason.

You're in town for a reason. You wanna talk about that?

Jaromy: Yeah. Yeah. And I appreciate that, man. It's been really cool to watch the show. I watch, like, all your episodes and everything.

It's in my top podcast that I watch. So it's super cool. Yeah. And I was super nervous about coming on, and we talked about that. And, yeah, this weekend, I got to speak last year at Cody Sperber's event at the Clever Summit, and it was super humbling and an honor.

And, he was actually the one who helped me learn everything that I learned up to this point. And so Cody Sperber, big thank you. And this weekend, I was talking with them, and they said, hey. Why don't you come out and speak again and tell us about what you're doing and how you've scaled the team super fast and what you're doing for your marketing and all that kind of stuff. And that's so I get to speak for thirty minutes tomorrow at the event, and it's gonna be really exciting.

And that's something I've wanted to do now is speak. So

Steve: That's cool. What time?

Jaromy: I don't know yet. Okay. In the afternoon. So you'll have to come out and check it out.

Steve: Yeah. Well, I'm supposed to be there tomorrow around 03:30 ish. I don't know exact. I think that's details out with Brian's.

Jaromy: Yeah. I think that's when it should be starting, something like that.

Steve: Yeah. So Alright. So you talked about scaling scaling operation. And what does your operation look like today?

Jaromy: Good question. So, we have four immediate team members. So I will start with myself. Right now, I am doing all the disposition.

Steve: Mhmm.

Jaromy: I do some light acquisition as well, but mostly all disposition. Then I support my team. My next member is an acquisition manager. And then after that, we have an inside sales rep who was a lead manager, but he's been training with us. And he does a lot of our inside sales, so he makes soft offers, things like that.

And then we have another lead manager, and they do, like, cold calling, mainly cold calling, but they also are virtual assistant to where they can help out with, like, documents and back lots of back end stuff. And then outside, we have now we just hired a third one, but we have three bird dogs

Steve: who

Jaromy: drive for dollars for us, put up signs, that type of stuff, a lot of cleanup tasks. And then from there, we have an agent who just technically joined our team, which is our acquisitions wife. That works out really nice.

Steve: Yeah.

Jaromy: And then we have another agent, and he takes basically, like, a lot of wholesale slash retail listings for us too. So they're our outside team as well.

Steve: Gotcha. So how did you find all these people?

Jaromy: Good question. In networking. It's been networking. And I've had this, like, limiting belief a lot of the time to, like, oh, you know, don't hire someone you already know, but it's worked out so well. Mhmm.

And Andy, actually, he worked with me at the guitar school, and he managed everything. Partner that? No. Okay. No.

No. He left after he found out what I was doing. I'm like, hey. I've got a cool thing for you. You should come check this out.

Steve: Yeah.

Jaromy: And I'm so glad he did. But he managed everything. He managed all the teachers. He managed our schedules. He took our phone calls.

He did sales. He did a lot of administrative work. So he just he's an integrator. He's almost borderline like a partner in our business. Mhmm.

And I'm the visionary. So he really integrates. I'm, like, thinking up ideas a mile a minute. Right? Mhmm.

And I'm sure you're probably the same way, and I'm like and he's like, woah. Woah. Woah. Slow down. But then once we get on a good one, he's like, okay.

Let's implement that.

Steve: Alright.

Jaromy: So that's been a really, really strong dynamic.

Steve: Awesome. So he was someone you already knew.

Jaromy: Yes.

Steve: And then he's the acquisition? Correct. Okay. And then you had your inside sales agent. How did you

Jaromy: find them? It's actually my brother. Okay. So he is virtual outside of us. He's in Portland.

Okay. And we haven't tapped into that market yet. Thought about it, but we haven't. And he just wanted to get good at sales. And I said, look.

Part time, start cold calling for us. He did. Four deals later, I'm like, I'll hire you. He basically, my philosophy in business is, like, if you're gonna create a new sector of business, it's gotta pay for itself

Steve: Mhmm.

Jaromy: Before you take it fully on. So, he basically started paying for himself, and I was like, alright. I don't have a reason why I wouldn't hire you. So Yeah. That's what he does now.

And he does in he takes inbounds. He does outbounds. He is doing comps for us, soft comps. He is communicating. We have, like, you know, other wholesalers.

He communicates with other wholesalers. We have, like, a Spanish speaking wholesaler. He does all that side of things. He does a lot of different things, and he's kinda like the glue that keeps us all together.

Steve: Yeah. And then you had mentioned something to me. We had talked. You know, we've obviously been staying in touch since we met last year. One of the things that's worked really well for you is, hosting meetups.

Is that Yeah. You wanna talk about that?

Jaromy: Sure. Yeah. So there was a meetup in town, and if either of them are watching sorry. I'm not sorry. It wasn't very good.

And I I'll just say it. I mean, it's and I was like, man, something's gotta change here. Super negative. I don't I'm sure you guys have it down here. I'm in such a small market that it was just a bunch of elitist assholes, basically.

And and it was like there was no gap. It was elitist and brand new people. Mhmm. There was no gap. And I was like, something's gotta change.

So my buddy moved back back from Vegas. He's our one of our agents now that works with us. And I was like, dude, let's start something new. Why not? Let's just do it next month.

Let's get Keller Williams. Let's rent it out. Let's do this.

Steve: Yeah.

Jaromy: So we planned out the entire year, and it was an immediate hit. And so, yeah, we we started bringing all the wholesalers, flippers, buy and hold. A lot of people like buying and holding in our area. Yeah. Our economy is run by a nuclear power plant.

So there's just a bunch of w two people that just, like, putting money into rentals, duplexes, stuff like that.

Steve: Yeah.

Jaromy: And, so a lot of buy and hold people. So that's kinda what we're actually doing is a lot of actual investing, not just wholesaling. And then my buddy's dad is a very successful real estate investor and syndicator. And so we had him back us up with his forty years of credibility and intense amount of knowledge. And it was like, man, well, you and I were playing in bands being punk rockers.

He was out there getting, you know, super wealthy with real estate. That's so awesome. Let's have him back us, and it's been a really good dynamic. And now we grew it from 20 people all the way up to 70.

Steve: Yeah.

Jaromy: And then, again, you know, crazy stuff happens. The other guys from the other meetups said, hey. We don't wanna compete. Let's team up. And that didn't work out.

So recently, we had a split again. So we have competing meetups, but it's all good, and it's a lot of fun.

Steve: What do you attribute your growth to in the in the meetup? Because that's something that I've pushed, not a lot on on on Facebook, but, like, in our private coaching group. Mhmm. I I implore everyone to start their own meetup because that's the best way to get your name out there, get your brand out there, and honestly recruit. Mhmm.

Right. Let's talk about, you know, what you've done that's been instrumental to helping you grow your meetup.

Jaromy: Absolutely. The number one is a Facebook group. Yeah. Because nobody actually really cares as much as they think they do about the actual Meetup.

Steve: Mhmm.

Jaromy: In this day and age, everybody's on their phone.

Steve: Mhmm.

Jaromy: So if they can live there, that's where, you know, the human interaction once, maybe twice a month, we play a cash flow game to where people come to, is where all the deals are seen, where people are asking questions. So most action is there. And then the Meetup is just, I guess, the catalyst of that Facebook group. So, ultimately, I look at our Meetup as a Facebook group and not a Meetup. It's kind of the opposite of what most people think.

So I I use the Meetup as the supplement to the Facebook group. Right. So adding a lot of value on Facebook group, if you have, like, contracts, if you have we and we're just getting into this is adding, like, my investment philosophy, you know, things like that where people can have things. We're gonna start a book club, things things where people can be really involved there, and then they have the actual meetup to where they can come hang out. You know?

And then we're we're also doing cash flow night where people can come out and play games and network that way too.

Steve: Gotcha. What would you say is the number one thing that helped you go from the, you know, your first deal to 50 k a month?

Jaromy: The number one thing, not stopping. I mean, when the road gets tough, dig in harder.

Steve: Yeah.

Jaromy: Hit back harder. I mean, that's that's been it because I could sit here and tell you my marketing plan. I could tell you my dispo plan. I could tell you, like, literally every SOP that we run right now. Mhmm.

But it's still gonna get super freaking tough. And if you don't commit mentally to that, you're gonna get eaten alive. Yeah. I don't care who you are. Those SOPs aren't gonna save you in crazy situations.

Right. You know what I mean? Mhmm. Just consistently doing the things that work. If you're putting out bandit signs, put them out consistently.

If you're sending out text messages, put them out consistently. If you're doing mailers, don't freaking stop mailing. Oh, mail doesn't work. It's because you did it for three months.

Steve: Right.

Jaromy: Of course, it doesn't work. So I would say consistency and starting with consistency in your mental game is the number one thing. Yeah. It's absolutely number one. So mental game.

Steve: Yeah.

Jaromy: Because it's a fight.

Steve: What does it mean to be consistent in your mental game?

Jaromy: Every day just doing something that enlightens you and enlivens you. So, lately, for me, it's playing guitar again.

Steve: Mhmm.

Jaromy: I I make sure, like, I do something fun. We get I you might be able to relate. Like, we get so wound up and bound up in the craziness of the wholesaling business that we forget that we're humans exist in this cool world of abundance and so many cool things like movie theaters and, you know Air conditioning. Air conditioning. And it's stepping back from that on a daily basis.

Steve: Yeah.

Jaromy: And being grateful and, you know, continuing with your vision, reviewing your vision, and making sure that you you're sticking to plan and studying still. You know, every day, those three things. If you can have a morning routine, study, and then do something fun for yourself

Steve: Yeah.

Jaromy: Like, that's a lot of work for me. You ask anyone, I know they're like, yeah, he just works all the time.

Steve: Right.

Jaromy: But really, I've learned how to have fun for myself now, and that actually helps me work even better. So I would say those three things, being consistent every day.

Steve: What are some of the important KPIs in your business?

Jaromy: They're pretty standard. Right now, it's just how much goes out and how much does that equal. And then another big one has been our conversion rate. So I like seeing our sales and our sales process and how that's working. Because I've noticed you can send out I've sent out, you know, 15,000 postcards and got less of a response than sending out 7,500 postcards and closing tons of deals and it wasn't the postcard.

I'll tell you that much. Yeah. It was our conversion rate. It was the ability to consistently, again, that word consistently follow-up, consistently take them down the line and do what we're taught by whoever you're studying from sales and committing to that and doing that. It's funny.

Lots of people are, again, well, what's the best sales way? What's the best marketing way? It's the way that you commit to and you consistently do.

Steve: Yeah.

Jaromy: Period.

Steve: What is the metric? You're saying, you know, you're tracking your conversions?

Jaromy: Uh-huh.

Steve: What's your conversion number now? What was it when you had those 15,000 go

Jaromy: down? So right right now, we're at about 30 leads per deal. Mhmm. And so if I were to break it down, it would be like if we get a half percent response from mail, for example, 30 of those leads are gonna lead us to a deal. So I would say our, last time I checked at least, we're highly, highly qualifying people as well.

Steve: Mhmm.

Jaromy: So Andy, our sales guy, he probably has right now anywhere between a 50 and a 60% conversion rate.

Steve: And that's when you go from in the house until closing? Or was that 60%?

Jaromy: Making offers. Okay. So if 10 offers go out, I would say, five or six of them are getting accepted. But those 10 offers are highly, highly qualified individuals.

Steve: Right.

Jaromy: We're not just like, oh, here's an offer. Oh, here's an offer. We've tried that. But, so basically, we go, lead, is it an actual qualified lead? Is it a what from qualified lead, is it then getting an actual offer from us, or is it getting an offer from somebody else?

And then from those offers, how many deals are we getting?

Steve: How are you defining a qualified lead?

Jaromy: We like Brent Daniels' script, just the four pillars.

Steve: Yeah.

Jaromy: But a lot of it has to do with price point too. So we've been increasing our assignment fee slowly but surely. We're at about $20 average right now for our assignment.

Steve: And what's your median sales price out there?

Jaromy: $3.15 right now. Yeah. And, so it's it seems kind of normal to hear. What's your guys' year?

Steve: We we target 20, but our average is 15.

Jaromy: What's your sales price, though, your median?

Steve: Oh, our median sales price, I think we're at $2.80 right now.

Jaromy: Okay. So we're pretty pretty dang close. Mhmm. So, yeah. Basically, it's could we get a deal within that 20 k range?

And then from there, we're going. So motivation, timeline, we like we prefer ten to thirty days.

Steve: Mhmm. But

Jaromy: we'll go as far as sixty. And then from there, motivation, that's most important to us Yeah. And then price. Gotcha. We're I'm just a copy of a copy.

You know?

Steve: So Yeah. Oh, that's if you can copy well

Jaromy: Yeah.

Steve: Big sign or big indicator for success.

Jaromy: Right.

Steve: So we're talking about KPIs. We have a mutual friend, Nathan Price.

Jaromy: Mhmm.

Steve: Have you seen his numbers?

Jaromy: Yeah. He's intense. Right?

Steve: Those those numbers. He shared it in a mastermind. Like, what am I looking at here? There's just numbers everywhere. He's really,

Jaromy: really good at that stuff. Yeah.

Steve: Yeah. He is.

Jaromy: I love Nathan. He's awesome. We got to hang out. And, yeah, basically, we track we track very simply just how many, you know, pieces of marketing went out, calls came in? How many of those were qualified?

How many offers did we get? How many accepted? How much did we make? You know? Or how many closed because not all are gonna close.

And then how much did we make? And then cost per deal? Pretty dang simple.

Steve: It is. So hey, Brutus. I see your question, what systems are in place, but I don't if you can just elaborate a little bit more, on your question. So you said you're in charge of dispositions.

Jaromy: Yeah. Right now.

Steve: Yeah. So what is your disposition process?

Jaromy: Good question. I was actually excited to share this because I've been excited about it. And, again, it's just a copy. Basically, right now, we get a deal under contract. We are still battling with the idea of getting it, cleared title as fast as possible.

Mhmm. Just had a meeting with the title company, but we cleared as fast as possible. Generally speaking, we'll post into our Facebook group that we just got a deal first. We're like, hey, guys. We've got a deal.

Steve: We don't Facebook meetup group.

Jaromy: Facebook meetup group. Yep. So, boom, most of our buyers are in there already.

Steve: Mhmm.

Jaromy: At least they're really qualified ones. And then from there, we're gonna make a template. So and the template's got all the details, the comps, the pictures. We have a suggested price. And, yes, we are one of those wholesalers that wants it to get bid up.

Mhmm. And we don't do bidding wars, but what we do is we say, okay. For example, tell you about a deal we just got, when we last week. And so I knew we were coming down here. So I said, okay.

Let's put out the walk through date. So we're going to get the seller that's an owner occupied. We buy them an Applebee's gift card because that's what they wanted was Applebee's. We asked them where they wanna go. They get out of the house for two hours.

So we're gonna be at the house from 04:30 to 06:30. All the buyers show up. They do their walk through. And I say, in the dispositions letter, you have twenty four hours after this. I give them a date and time to have your offer in.

Highest and best, no clauses, no nothing. Just tell us your highest and best that you can do, and then whoever's the highest and best on the next morning is gonna have us earnest money, and then we take it to the title company and we close the deals upon, you know, whatever that procedure is at

Steve: that point. So you have the homeowner occupant leave. Yep. Everyone has a two hour open house. Yep.

And highest and best with highest and best non contingent offer.

Jaromy: Yes. So there's no escalation. We've had people like, oh, well, I'll do this. But if anything, I'll escalate. It's like, no.

Highest and best. Yeah. Period point blank. And then from there, we actually this is the secret, is we mark our deal competitively. So if we know we can sell it for $1.20, we're probably gonna put it at $1.00 9.

If we know we can mark we could make $1.10, we're probably gonna mark it at 99. Yeah. And I really like nines. I like sevens. I like threes.

I like it's marketing. Right? I like those types of numbers. And for some reason, people go nuts over it, and it works really well. And they still get a good deal because then they choose.

So nobody's upset with you for making a $40,000 assignment fee. Because that's a huge fear of people. Oh, should I double close or should I regular close? We never double close because we always let them choose their own price now. So the step one is getting the deal really deep first, pricing it super competitively, and being stern with that.

That's a really hard thing for us to swallow. And then from there, staying true to even if nobody shows up kinda deal. And what if nobody shows up? Well, we'll probably host another one and Mhmm. Price it more competitively.

We haven't ran into that yet.

Steve: So you're when you say price it competitively, you're intentionally marketing about 11,000 less than than what you think you sell it for. So do you typically sell it for what you think it will sell

Jaromy: for? More. Everything is if

Steve: you think it's $1.10, you price it 99, it'll sell for more than $1.10.

Jaromy: Yeah. We just did one like that sold for $1.16. We made, like, 41 k on that.

Steve: Nice. Yeah. Awesome.

Jaromy: It was insane. So and and it was like yeah. I mean and the funny thing is is the buyer, they made an offer, and then she called me, and she was trying to push me. She's like, hey. What do you think of my offer?

I'm like, it was good. It's an offer. I'm not gonna tell you until tomorrow. You know? I was wasn't rude with her, but I was like, you know, I'll I'll call you tomorrow and let and she's like, okay.

I'm making another offer. And she increased it

Steve: Yeah.

Jaromy: By 10 k. It became the winning bid. But it was like it's it really forces people who want the deal to do the deal and take the action

Steve: Yeah.

Jaromy: To get the deal done. And I've never had an issue with buyers backing out or getting earnest money in or complaining about a giant assignment fee or anything after I I implemented it. Before, it was just garbage. Like, who can show up when they wanna show up, get the seller out? It was just a mess.

Maybe I'll make three k. You know? Like Yeah. It was a freaking mess before.

Steve: What I know you're not having issues with earnest money, but what are you asking for earnest money?

Jaromy: 5,000 for cash, 7,500 for hard money, and we just implemented that. It was 2,500.

Steve: Clarify. Pardon? Pardon? They have to clarify if it's cash or hard money.

Jaromy: Correct. Yep. And then yeah. Because if you don't if they have hard money and your title company doesn't know that and they're not working with the hard money company, if it's like an institution, not just a private money lender, and even then, you can have problems closing. Yeah.

I don't I don't know if you've run into that. But

Steve: we've had that happen last week.

Jaromy: Okay. Yeah. There you go. So we clarify. We say, is this cash or is this hard money?

Steve: Yeah.

Jaromy: And then from there and we always take cash offers over hard money offers. Even if it's like we had one where they're like, oh, we'll give you $5,000 more in hard money, and I didn't really know the buyer that well. And then buyer that's super consistent gave us $5 less, cash, easy close. I was like, we're doing the deal with him.

Steve: Right.

Jaromy: So when we say and if you're a buyer on our buyers list right now and you're listening, when we say highest and best and best, k, can sweeten the deal a ton.

Steve: Yeah. So That's great information. Brian Sammons wants to know, is direct mail your main marketing source?

Jaromy: No. We like direct mail. I've been talking about it. And I'm not gonna talk about my exact strategy right now Mhmm. Because I have to save it for tomorrow night for any viewers that'll be at Summit tomorrow.

It's going to be really exciting. We have a combination of a lot of different things that we do. It's and that's what I'd recommend to anybody is, a, test it, track it

Steve: Mhmm.

Jaromy: And make sure you have the money to do it for, like, six months. And if not, just be bold and go do it anyways. K? Whatever. Be bold.

Go do it anyways. But if you can test it, then go from there.

Steve: So then tomorrow after summit, we can update this Yeah. With what's working best for you.

Jaromy: Sure. Yeah.

Steve: Gotcha.

Jaromy: Sure.

Steve: Okay. So what is your biggest struggle at the moment?

Jaromy: At the moment, you know, if I'm being really honest, my biggest struggle is market share, I guess, right now. I'm I'm borderline feeling like I'm tapping out where I'm at, but I also feel it's a limiting belief. Mhmm. So I've been looking at newer markets virtually, I guess, or even in my area, but I don't wanna be just the wholesale that's like, oh, that's a close market. Might as well go there.

Yeah. So it's my new goal. My goal before was, you know, get as many deals as possible. Now it's get the best deals possible with the best spreads. If I could do five deals at 25k consistently over time a month Mhmm.

That's that's my goal. So it's really getting good at the sales process, which is getting great, but now it's that deal flow of those really quality, quality deals. Because at the end of the day, I mean, you have to have somebody who's gonna play ball with you.

Steve: Right.

Jaromy: Not everybody. Oh, I only get retail leads. Duh. You're only gonna talk to one or two people that are, like, really freaking qualified. The work when people are like, oh, I made $20,000 in ten days.

No. You didn't. You freaking worked with that lead or you worked with an immense amount of leads over time day in and day out for that one deal to finally go through. Does that make sense? Yeah.

So the biggest struggle I'm having right now is finding more of those really, really qualified leads and deals. And, we've been digging into, you know, like list stacking and, all that kind of good stuff. But really, my market within an hour radius of us, there's barely 500,000 people, just people living. Mhmm. So and it's a growing community.

So it's pretty small still, but I don't wanna let that hold me back. But that's my biggest struggle is Yeah. You know, just finding more deals in my specific area now.

Steve: Gotcha. And what do you think is your superpower?

Jaromy: My superpower, persuasion persuasion. Growing up, my my grandfather called me the politician. And so I've I've obsessed on sales and persuasion and, psychology and things like that and being able to lead. I think persuasion has helped me lead people and sell really quickly and convince people to follow my ideas and Mhmm. Things like that.

I would say it's persuasion, and I really lean in on that. So influence.

Steve: Yeah. Yeah. Alright. So I'm gonna let you think about what you wanna leave the listeners with, and I'm gonna make a few quick announcements. So, guys, as I've been talking about the last few episodes, Max Jimenez and I were doing a two day workshop this September.

We're eliminating access to select group of people. So if you want to qualify see see if you qualify, please go to disruptors.com. And I will be speaking at Whole Scaling Live in Houston, October. Go to wholescalinglive.com and put in r e d for 25% off, and also be in Biloxi, Mississippi, October for Real Estate Roundup Live. Go to Bitly, bit.ly,/rerlive, if you wanna go check that out.

And in two weeks, we've got the legendary Sean Terry coming on the show. So do not miss out on that. So with that, last thoughts.

Jaromy: You know, I realized just recently this thought, and I've been sharing it with a few people, and I'm excited. I didn't know if I was gonna share it, but I'll share it. I feel compelled to. Is the whole reason why we build systems, The whole reason why we have a do not a a a do not list or a, you know, to do not list, whatever Dean calls it. And all these processes sometimes can make like, for example, I hire a a guy to come mow my lawn and cleaners to clean my house, and I we have team members, and you have virtual assistants and things like that.

And, of course, we can all treat them like humans and all that good stuff. But, really, what is the purpose of all that? And what I'm finding is sometimes I found myself feeling jaded, like, oh, I just I earned it. So I don't have to do much. But, really, what I've been stepping into is the thought of the whole reason I create all these systems for my life and my business is not just to grow and my ego and to look cool on real estate disruptors and Clever Summit and other events in the future.

It's to really deeply impact people. And when you can really embrace that, that the whole reason you're doing that is to free up your time so that you can handle your psychology, so you can handle your soul, so you can handle your spirituality

Steve: Mhmm.

Jaromy: So that you can serve on this short time on the planet because you're gonna die

Steve: Yeah.

Jaromy: That's when the magic starts to happen.

Steve: Yeah.

Jaromy: That's when you start doing really good good deals. That's when you feel great about wholesaling. That's when you feel great about making that offer that's 30¢ on the dollar.

Steve: Yeah.

Jaromy: When you truly have that conviction that I am helping this person out of a bad spot. Yeah. Just recently, we had a guy who was homeless losing his home. He he literally couldn't live in it. It was so messed up.

And we were able to help him out of that. He couldn't believe. It was the toughest deal we've done. It took fourteen months. And that's when I really had this realization realization.

It was, wow. We really, really helped this guy's life out. He's no longer gonna be in any debt. He's scot free. He has a blank slate.

He's literally at the bottom being homeless, but he has his whole life ahead

Steve: of him. Yeah.

Jaromy: And I helped him do that because I took care of everything myself in my life. So

Steve: What was the challenge for fourteen months?

Jaromy: IRS liens, liens upon liens upon liens, stacking up, and then foreclosure and all that. But, yeah, we've helped out so many people now, and I don't forget that. It's no longer just like, oh, these people are so nasty. You can get so jaded with all these because you're going to work with crazy people. Normal people don't sell to wholesalers.

Steve: Yeah.

Jaromy: And when you can really step into that power of I'm going to scale my life, I'm going to scale my business, I'm going to become a wholesaler and make lots of money with who It's really for you to help people, you know, at least for me.

Steve: Yeah. No. I I completely agree. Right? It's, Jim Brown is like, in order to change the world, first, you must change yourself.

Jaromy: Yeah. Absolutely. And this is such a cool vehicle to do it and free up your time. And my goal is to start buying rentals here soon. And if you guys have cash flowing assets, hit me up.

I don't I'm looking at trailer parks. So Yeah. Yeah. I that's what I would leave with is just do it beyond yourself.

Steve: Yeah.

Jaromy: Like, put the ego to the side.

Steve: If someone wants to get a hold of you, how would they do that?

Jaromy: You can go to my Facebook, Jeremy Tag. I'm sure you see my name here. Just hit me up. Send me a direct message.

Steve: Awesome. Cool. Alright. Well, thank you

Jaromy: Thanks.

Steve: For coming on the show.

Jaromy: I appreciate it.

Steve: Thank you guys for watching.