In this episode, co-hosts Bob Fraser and Ben Fraser sit down with wholesaling expert Josiah Grimes to discuss the ins and outs of wholesaling. For those getting started on their wealth building journey or wanting a more active investing approach, wholesaling can be a great way get into real estate without the hassle of being a landlord or owning property. If you’re interested in this topic, this episode is packed with actionable tips and strategies for success.

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Connect with Josiah Grimes on LinkedIn https://www.linkedin.com/in/josiahgrimes/
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Connect with Ben Fraser on LinkedIn https://www.linkedin.com/in/benwfraser/

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Transcription

Ben Fraser: Hello, Future Billionaires! Welcome back to the podcast. We had a really fun episode today. Bob, what did we talk about? 

Bob Fraser: So we’re gonna be talking about wholesaling, real estate, wholesaling.

And this is super interesting, we talk a lot about accredited investors, right? How to invest passively. What if you’re not accredited? We got a lot of listeners who are not accredited, got a lot of hustle and the number one way to create wealth in the world. Two, two proven ways.

One is owning a business and two is in real estate. And so here’s a way to do both. 

Ben Fraser: And as always, we give a disclaimer. We bring people on that are potentially raising capital or have another thing that they’re selling. We do want to just say, this is just for educational purposes only.

We haven’t done any due diligence, so do your own due diligence, but it’s definitely very interesting so you’ll want to hear this episode. So we hope you enjoy.

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Ben Fraser: Welcome back to the Invest Like a Billionaire podcast. I am your co-host, Ben Fraser, joined by co-host Bob Fraser. Today we’ve got an awesome guest, Josiah Grimes, who is the CEO and Co-founder of KeyGlee. And if you have not heard of KeyGlee, they are the world’s largest real estate wholesalers with the hundred locations in the us.

And Josiah has been in this world of wholesaling. Really for the past, over a decade. And it’s been very successful and it’s created some really cool models, education, even franchises around wholesaling. And so we wanted to bring ’em on and just talk about this whole world. We haven’t discussed a lot of wholesaling and really excited to dive in.

Josiah Grimes: You for having me, man. Yeah, I’m glad to be. 

Ben Fraser: Awesome. Well give a little bit of your background just kind of how you started in this business and, you know, for those that you don’t: what is wholesaling?

Josiah Grimes: Yes. Yeah. Wait a second. Cool. Yeah, man. So a quick overview on wholesaling. And I know that wholesaling also gets a bad rap in a lot of places because a lot of people think wholesaling is synonymous with Daisy Cheney and it’s not. If you do it well, if you do it well, it can be a really phenomenal business model. You can bless a lot of people through it.

And so basically wholesaling is, you are essentially a broker, you can think of it in one or two ways, brokering a piece of real. Right. And, and, but without a fiduciary responsibility and instead of receiving a commission, you’re receiving an assignment fee or you’re receiving the spread between simultaneous clothes.

Most people when I say that, they’re like, that didn’t help me very much. But essentially what you’re doing is you’re negotiating with the seller for a discounted property. And then you turn around and you sell that same property to a buyer before you close on it in cash, right? So before you have to actually close on it, you’re gonna take the buyer’s funds and the buyer’s fund funds are gonna fund the purchase.

And then you are essentially receiving a fee for facilitating everything. Now you have to do this correctly. You need equitable interest. Otherwise you’re gonna break some brokering laws. And so there’s, there’s definitely nuance to how you do it, correctly, how you do it. So there’s a hundred percent above board.

And so that it’s, it’s a blessing to everyone involved instead of an annoyance or a nuisance.

Bob Fraser: this is like the, we buy ugly houses type thing, 

Josiah Grimes: right? but very 

Bob Fraser: similar but that’s the concept is you get someone to sell you kind of a. Their home and you get a good price on it. And then wholesaling means you immediately flip it out of the property.

Rehabbed to a rehabber, right? Is that right? Yes. Gotcha. 

Ben Fraser: You’re effectively acting as a market maker, right? So I. The stock market. You have market makers that are connecting buyers and sellers and they take a spread.

And the real estate market is a lot less efficient of a market, right? Because it’s very fragmented. A lot of mom and pop ownership. And so effectively you’re going to marketing to sellers that maybe have off market properties. You go and create a deal with them and then you go remarket that deal to your list of rehabbers or those that would like this type of a property.

And you’re taking a little spread in Meanwhile, One of the advantages of doing this is you don’t need a lot of cash to do it. You just need a little bit of a hustle muscle . 

Bob Fraser: Yeah. So it sounds like a marketing business and it sounds low margin.

Really what kind of margins can you make in this, this kind of business. 

Josiah Grimes: Yeah. And it’s, in some ways it’s phenomenally high margin because it depends on how you do it. So what we just talked about is kinda like the quintel, the quintessential way of wholesaling, right?

In what we do at Keeley or in our franchises or what we were talking about as far as astro flipping, that type of stuff is a little bit different. And so instead of generally what the business en entails is heavy marketing costs on the front. Which does really eat up your margins, right? Because you’re either doing like you’re gonna do postcards or you’re gonna do pay for click, or you’re gonna do Facebook ads. And what those numbers look like, just to get a little bit granular, might be you spend five grand on postcards, you get 15 phone calls to actually want to sell their house, right?

You drive out to those two houses and have those appointments, and if you don’t close those appointments, you lost five. Outta those two appointments, one actually is maybe semi-close to where you need the number to be, right? And then you keep working on that deal for three months. You finally get them to say, Hey, okay, we’ll do this deal.

And now you’ve done one half the transaction, right where you’ve put, I’m making this sound, I’m making this sound terrible. But they’ll be saving great, I promise. Ok. We do a lot of these, we do a lot of these, but not this way. But this is your standard, right? And so then and then after that, you need to go find a buyer before you close.

And generally you’re trying to close, in 10 to 14 days. So you have a very short window to go find that buyer to actually close that property with the seller. And so that’s normally the way the business works, which is really low margin. What a lot of people don’t know is that if you restructure the business a little bit, and this is what we did when we were starting Key Glee, right?

Because before Key Glee, we were running that old school model and it was like the biggest challenge to get two to three deals a month, right? If we could get three deals a month, dude, we were like, like Chase whole. You know where, whereas we got up to where we’re doing 50, 60, 70, 80 deals a month.

And the difference there was instead of us being the ones that were marketing direct to seller, we started bringing on supplier partners. right? And so someone that was just focused on the acquisition, acquiring of the deal, and then we focused really heavily on the disposition side of the property or of the deal, which is selling the deal, right?

And so we really built out our buyers list, not just to include fixing flippers, but also people that are looking to buy and hold institutional purchasers, right? . So everything from private equity, hedge funds, the whole shebang. And so when we brought those in on the disposition side and we used suppliers that were bringing this deals, it cut out all of the cost.

Essentially for the marketing side, right? Because now we’re providing a service and we’re getting paid for the service. We’re just, we’re essentially what’s called coho handling, but helping other people sell their deals. And so we become their dispositions partner, right? That’s the only por portion of the deal that we handle.

And we cut out all of the heavy upfront expenses like. So when we run the business, we’re able to run it a lot leaner than most wholesalers. And that’s how I would, honestly, that’s how I would advise anyone that wants to get into. Wholesaling or get into real estate for that matter, is to come in, enter through wholesaling and use supplier partners that are gonna bring you the deals on the front end instead of trying to go out and direct to seller market and spend a lot of money on marketing.

S Yeah. 

Bob Fraser: Supplier partners means affiliates who are finding deals for you. Is that 

what that. 

Josiah Grimes: Yeah, so this can be anything from a bank that wants an easy way to offload their properties. This could be real, a real estate agent that once a month gets a property that they’re just would be ashamed to list cuz it’s too beat up.

Could be a real estate agent that is gonna, when they go and present their listing presentations, is also gonna present. Your cash offer. Could be another wholesaler that’s actually the one that’s spending money on marketing that’s paying for the postcards. Has been doing this for 10 years, and so they, instead of going to those two appointments, like maybe I would’ve or, someone getting started would’ve, they would’ve gone to those two appointments and not gotten the deals.

That person’s an expert, they’re gonna go to those two appointments, they’re gonna close both of ’em, right? So from their perspective, the model works really well because they’re super, they can spend the money and they know they’re gonna close the deals cuz they’ve got that proficiency B built up, right?

So any of those can be phenomenal. Deal suppliers. There’s also, there’s other, I mean I could go on for a while, but those are the main, the big ones. So 

Bob Fraser: you build a pipeline basically of people that are bringing you deals. And solving the upfront marketing cost problem.

Ben Fraser: Yeah, exactly. So you’re giving up a little bit of the margin that you would get if you were on both sides of the transaction, both on the, the buyer side and the seller side. But you can create, really focus on that one area of creating a big buyer’s list. Execute on that may.

It’s not like a 10 extra volume, right? Maybe a little bit smaller spread, but your net at the end of the day is gonna be a lot bigger. Is that 

Josiah Grimes: a hundred 

percent? Yeah. Yeah, a hundred percent. Dude. And a lot of people, that’s where a lot of people get caught up. It’s dude, I don’t wanna lose half my deal.

But two things. One, if you have good buyers, sometimes you can sell for more anyway. And then two, you’re taking all of the major expenses out of it so you can transact it a much higher. And that’s where, cause otherwise you’ve got lead time and everything. You put five grand out today that mail, like if you mail dude, you put five grand out today, you’re not even gonna get the phone.

The mail isn’t gonna hit for a week and you’re not gonna get phone calls for two weeks. And so if you’re starting off and you got a five grand budget, it’s a month before you even have the potential to close the deal. I didn’t get your five grand back. Yeah. 

Ben Fraser: So when you’re getting started and wanting to get into real estate, I was think you have one of two things, right?

You either you have time. or you have money, right? And if you have money, this probably isn’t super appealing cuz it’s work, right? You gotta actively work this, you gotta build the list. But if you’re getting started out, you wanna get into real estate, or you have a little bit of time and you wanna kinda learn the ropes, this is a great way to get started because there’s very little upfront costs and you can, if you get enough velocity, can really build some nice cash.

Josiah Grimes: Yeah, totally. And the thing that I tell a lot of, like young guys and gals are like, oh man, I wanna get into real estate investment and that type of stuff. They, if I literally, if they’re a family member, anyone, I’m like, yo, start in wholesaling, because there’s zero. You know what I mean?

You don’t have to put your, like a lot of people want jump in, do a fix and flip, which is really cool. But if you do wholesaling, you see such a high volume of deals. You get to the place where you see a property that you know for a fact you can. You know exactly what it’s trading at. Just what you were saying, Ben, as far as being like a market maker.

You know what that, you know what? That property’s worth dead on. No questions, no guesses. You’re not relying on your agent, for a fact. Like you see the deal and you’re like, if I went and called that person and said, Hey, I’ll buy that today. I know for a fact. And two text messages I can sell to make 10 grand.

And that’s, that is such a good confidence, right? And you can build that wholesaling. When you’re fixing and flipping, you look at one property, it’s just, you have to rely on your agent. There’s so many other variables. So I, yeah. For people that are getting, it’s a way to get your real 

Bob Fraser: estate education and Exactly.

And get paid doing it. Exactly. So a guy, which is awesome cuz we do, this is invest like a billionaire and everybody wants, the big question is how do I become an accredited investor for a lot of our guys, and a lot of our, a lot of our listeners aren’t.

And so how do you get started? And as Ben said, yeah, you got a lot of hustle. This can be a way you can make money. I how much money can a guy make who’s, give us an example of wondering, you, you have a franchise that you’re actually help people do this.

Give us an example of a successful franchisee and how much can a guy make in a 

year, 

Josiah Grimes: I wondered how I can say this cuz there’s a bunch of restrictions with franchises, right? Whatever is in item 19, you can say, if it’s not an item 19, you can’t say it. Gotcha. So I can say it, maybe I could say it this way is I had some friends that started not saying whether or not they’re franchise.

I had some friends that started and they started four weeks ago and they’ve got a hundred grand in the pipeline. So it’s actually A pro profit, a profit, 96,000. It’s $96,000 in the pipeline, right? And they had some experience in real estate just in general coming in.

But I think that you’ve got that on one extreme or you can come in and absolutely smash it. Zero marking costs. Just go to town and do really well. The other extreme though, that is the nor maybe the more normal is you. This is the mindset you should have coming in. You should expect to come in and freaking work ridiculously hard for three months.

And maybe do one deal. And then you should expect to work three more months exceptionally hard. And remember, if you wanna be like a quality janitor, like if you wanna be a good janitor, know what chemicals to use and get in the R right. Routine that’s gonna take you six months.

And that’s just to become a janitor, right? This is, we’re talking about something that can make you a ton of money. So the Work, work super hard for the next three months. The next three months you should start to see a dealer two a month, right? And then after six months, now all of a sudden you’ve got these strong relationships, you’ve got some proof, you start to have things that are, you’ve got a pipeline built out, right?

And that’s when you actually really start to have fun with the, with the business, I think. But that’s what I tell people to expect. I say, Hey man, come in and expect to work exceptionally. Like six days a week, five days a week, whenever you can if you’re, if you’ve got another job. This is lunch breaks.

This is before. This is after, right? This is on every single break. You have expect to work exceptionally hard for three to six months. , but then you’re gonna start to see the fruit and it’s literally like clockwork, right? Unless you’re just cussing everyone out on the phone, then that’s not gonna work

But if you’re willing to come in and, and work and build relationships three to six months, then you can have a really nice. A really nice business.

Bob Fraser: expectation, right? That’s pretty cool. And so now we’ve seen the market slowing down dramatically, right?

In single family residences. So it’s probably a little more work right now, but the people are still making money doing whole. 

Josiah Grimes: Yeah very good question, man. And so what’s neat about wholesaling, right? Is that since you never have your money out in properties, right?

You really minimize the market risk. If the market’s going up and down, you just need to adjust to wherever it’s currently at. And you can do that in real time cause you don’t have any capital deployed. And so it, that maybe is one other really nice factor about the model. The one thing that does happen is when the market initially shifts, a lot of your buyers are stuck in their old inventory.

So a lot of your buyers are stuck in their old flips. They wanna buy from you, right? Cuz they want to, that’s how they earn their money, but they can’t because they need their other stuff to sell. And that’s normally a three month lag. And so if we had that last year August through November-ish, somewhere in there, right?

Where we were slower but it didn’t halt, right? Like we, we slowed down, but we certainly didn’t end, we still were transacting quite a bit. It’s just some of our buyers were locked up with previous inventory. And then this year it’s, we’ve been roaring into 2023. So we’ve seen a lot of a lot of it returned to where we were one of last year, which has been really encouraging really.

But yeah, 

Ben Fraser: that’s, yeah. What about on the sell side? Because what we’re seeing, the single family market, at least just at a broad level is, people that have residences that have really good debt in place, right? They don’t wanna sell because the cost to, take on new debt is gonna significantly increase their mortgage payment.

So has there been a slowdown of, inventory or, is it. You don’t really manage that side of it. So it’s really on the supplier relationships to generate their what’s the, on the other side of it? 

Josiah Grimes: Good question, man. So I think the question was is there a slowdown of inventory or is inventory increasing?

Is that what you’re asking? And then how is that? So most places inventory was in has been increasing. And we started to see that change coming into the beginning of this year. Mortgage rates started to drop because the Fed started to say that their guidance was, Hey, we’re probably not gonna keep raising.

As heavily as we have been. And so mortgage rates are gonna factor in, are gonna float above, obviously above the fed rate, but they’re factoring in that risk. Is it, are rates gonna continue to go up or are they not? You guys are pros at this, but just as for anyone that listening that’s Hey, what’s going on?

And so mortgage rates actually declined in January, right? From what they were maybe, I think the high was in November, so they declined over December, January. And so we saw from that, we saw. Some sellers now that have been waiting, or buyers that have been waiting start to reenter the market, which was good.

Okay. On the whole inventory has been rising. From our, from a wholesaler’s perspective means it’s now easier to acquire and harder to sell. And so that actually, if you are strong on the sales side, like we are at, which is really what Keeley prides itself on. And so it actually works out great for us.

You know what I mean? So it works out great for us because now we’ve got more inbound properties. It’s easier for our suppliers to acquire and we can say, Hey, you know what? We actually need lower price. And they’re able to go out and get those lower prices, cuz the market’s a little bit squishier than it was say, Q1 of last year, got it. 

Bob Fraser: So we don’t really usually like to sell a franchise or sell a, an investment deal, but this is just so in. Interesting. And so if, you want, what kind of things do you offer as a franchisor to a franchisee? What kind of service did you offer and why is it better to go with.

With Keeley than it is to just do it on your own. Especially get started. 

Josiah Grimes: Good question, man. And the other thing too is I encourage people to be like, bro, just give it a shot if you want to go to town. Because, generally it’s the things that we provide it You mean on your own?

Try it on your own. Yeah. Go try it on your own. You know what I mean? If you strike gold high fives all around, you’re like, awesome dude. We’ll sell your deals for you. But what we do on the Keeley side is so we, we try to give it so that it’s like, Hey, we wanna make it as foolproof as humanly possible.

So here’s all the things you need. So what we do is we generate supplier and seller leads, so people that are gonna bring you the deal. So leads on this side, right? And we’ve spent hundreds of thousands of dollars developing the software that allows us to bring those in and provide those leads.

And then we also provide the buyer leads on this side, right? Which is where we sell and we’re where our real strength is on the sales side. So we’re providing both sides of leads. The people that bring you the deals and the people that will buy the deals from you. And then all 

Bob Fraser: of these, are those geographically centered?

Josiah Grimes: Yes. Yep. Yep. A hundred percent. Yeah. And so all the lead, everything is obviously pertaining to the person’s territory, right? Okay, gotcha. With their territory they’re in. And then what sits in the middle is all the systems and processes that allow that flywheel to spin, right? So everything that allows us to work these leads properly, all the follow ups, all that fun stuff, and all the, everything that, that allows us to work these leads properly and process the properties through the through the or process the transactions.

And everything from paperwork to scripts, all that stuff. Obviously training and all that stuff is obviously included. As well. So that way your hand is being, you get all the systems, all the processes, all the weeds you need, and your hands being held throughout the process. It’s, we try to make it as white glove as possible because the thing that’s really cool about franchises is like, if the franchise wins the franchise or wins, it’s great. It’s a win all around. So that’s the so that’s what we, provided right. With that.

If someone, With that’s for, we’ve got obviously requirements and stuff like that for our franchisees, like franchisees that we’ll bring in. And so some people don’t like, some people don’t qualify for that. And I absolutely, and for that, I encourage a lot of people like, Hey, go out and see if you can piece a deal together.

You know what I mean? Use. Use some old school, Craigslist, Facebook group strategies, to go out and find buyers and find sellers and go to some people’s houses and get a contract signed. Or call some real estate agents and say, Hey, I’m looking to purchase a property in this area.

It needs to be beat up and priced accordingly. And then if you get a deal and it looks good, call us and we’ll help you sell it. And be a 

Bob Fraser: franchisee for you to help them sell a deal. 

Josiah Grimes: No. Yeah, definitely. 

Bob Fraser: Yep. Cool. And so what does it cost to be a franchisee? So again, I’m really selling you here.

I don’t know, don’t , but it’s just super interesting. So forgive us listeners for going 

Josiah Grimes: there, but what does it cost? Cool. Thank you, man. There’s the initial fee and then the ongoing royalty. And so just like we, it’s a low a high margin business, right? And so the initial fee is a hundred grand, right? And then the ongoing royalty is 15. And then that’s that’s basically the cost basis. The requirements though, because we’re, legitimately we are a little bit picky with who we bring on is as franchisees it’s really tough because you want everyone to. Like you, you want everyone to have the opportunity to come in and crush it.

And so we’re it’s a rough thing cuz it’s I bet this person could do well, but we’re so close on requirements. And so there’s other, so there’s other Requirements we have, cuz for instance, one of the things that is nice obviously is if the person is able to, they earn necessary, is to extend earnest money on deals.

And we’ve also got a brand kind of throughout the United States that we have to uphold. So there’s some other monetary requirements that aren’t, I wouldn’t say aren’t super steep. In order to be an owner of a f. But yeah, those are 

Ben Fraser: The big, and that’s pretty common for franchising.

So I used to be a, banker and actually did a lot of franchise deals. And especially as you go up the food chain on like really big franchise names, like even the McDonald’s or something like the requirements, up upfront capital and, financial requirements to do that is, way more

Josiah Grimes: Yeah, 

Ben Fraser: exactly. So it’s the bar, obviously there is a bar, so if you’re, wind, you’re just getting started, you may not be there. To your point, there’s a lot of ways that you can just get going, get the ball around, get some momentum, and build up a little bit of a pipeline and, and then something, you guys have a really cool plug and play model.

The one things we were talking about earlier before we hit the record button that I loved that you said. I would a hundred percent agree and is, I was a banker and underwriter and looking under the hood of all these, wealthy people that we were lending money to, I was like what’s the secret sauce?

How’d they, get this way? What is, what’s the success here? And it usually boiled down to two factors. And one of them was either investing in real estate, right? Or. Business ownership. They owned a business. And those were like the two most common denominators. And the cool thing about franchising, not just ke glee, but really any franchise, and we’ve, we had another guy on the show a while ago talking about this, is it really gives you the roadmap in a proven business model that works if you execute and.

A proven way to, create business ownership. So it’s a pretty cool thing. And then you add on, it’s in real estate as well, so if you like the world of real estate, it’s a pretty neat thing. 

Josiah Grimes: Yeah. Yeah, dude. Hey, bet. So this is, 

Bob Fraser: this is interesting too. As a banker, isn’t there a way to get s b a loans for, to buy a franchise?

Ben Fraser: it definitely are. I would say for something like this it’s probably difficult cuz it’s it’s just Goodwill or it’s just, its a franchise fee. Plus a royalty. Like generally you would get s p loans on like your equipment or if you’re buying a building or you can’t finance a franchise fee.

But generally that’s there has to be something else. Be inclusive of a lot of other things. Yeah. 

Gotcha. 

Bob Fraser: Okay. Very interesting. So what if someone doesn’t have the a hundred grand and they just wanna do it on their own? What’s the best way to learn how to become a wholesaler? 

Josiah Grimes: Great question, man.

First off, there’s a lot of free university type stuff, you can go on YouTube, you can follow like Payson, Jamele, Jamil DK is my partner in Key Lee. You know what I mean? So following them, they’ve got like podcasts stuff on YouTube.

Obviously that can be really useful, really helpful. So I think learn learn as much as you possibly can, right? Also, there’s lots of guys that’ll give out like free contract templates and. You know what I mean? , where it’s like, Hey, I need a contract. Duplicate someone help me out. Yeah here you go, dude, here’s an assignment.

But the thing that I would the thing that I would say is, Yeah the easiest way it would if I’m like, Hey, just how could I possibly get involved? What I would say is go to this is just some tactical stuff, but go to Google and type in your area and then discounted property, right?

So like Phoenix discounted property. And a whole list of wholesalers is gonna pop up. And go through all of those and add yourself to every single one of those lists, right? Because the first thing you gotta do is figure out what type of property is going on and what’s selling, right? And and the other thing is, if you can get access to a tax record system, if you’re not in Texas for a non-disclosure state, that is then you can also see which ones of those properties are selling, right?

But those wholesalers are people that you can buy from. So if you go get on everyone’s list, right? I think another one that’s great is typing in like investor carrot and then Phoenix because investor carrot sets up a lot of wholesalers websites and so like investor carrot Phoenix properties or something like that, , and you hop on everyone’s list.

The easiest way is like you’ll start to see like this guy put the deal out and then this guy marked it up 20 grand over here and. Shoot, that’s pretty crazy. I probably could have sat in between that, I probably could have brokered that deal from this guy to this guy and made 10.

And that’s like the most simplified version of wholesaling is build relationships. Try to see properties first. And then one guy sends you a property for one 90 that you think someone else will take it for 200. And you get a text from this guy at one 90 and you send that text over here for 200.

You need equitable interest in order to do this. Okay? There’s a little bit more to it, but that guy says he’ll take it for 200 high fives all around you made 10 grand, right? So I would say join Facebook groups. Search on Google. Join everyone’s list. And then if you can get access to tax records where you can actually see who’s purchasing the wholesale deals.

Like you look up the address of the wholesale deal, someone emailed you and you see who actually closed on it. It’s gonna be an llc. You take that llc, pop it into bis zedia, see who the members are, right? You can use Apollo to pull up their phone number or whatever. Or find ’em on Facebook and message ’em like that’s you building your buyer’s list.

Your suppliers can be those wholesalers to begin, you can go to Zillow and call through agents and tell ’em you’re looking for discounted property in your area, right? And if they can, if they get anything to send it to you, they send you a deal and you’re like, oh, that looks like it could be a good deal.

But you’re not sure. You could always ask one of those wholesalers, Hey man, I got deal in this area. It’s a four-bed, two bath. Don’t give him the address. We’ll steal your deal. But it’s a four-bed, two bath around this price. That’s not like something you could pick. The guy’s yeah man, I’d love to buy that.

Sweet. Go back to the agent, put it under contract, sell it to that guy, . So anyhow. Wow. 

Bob Fraser: Sounds easy. Very cool. sounds like a lot of work actually. 

Josiah Grimes: It’s a pretty simple blueprint. Once you know it, you can just rinse and repeat, and it’s really. It’s not that hard and it’s a lot of fun. 

Ben Fraser: And you guys have a lot of education arms too, right? So you have KeyGlee, which is the franchise company, but you have, Astro Flipping Sub two, I think a couple other brands that are, is this geared for people to learn at the business or is it just for your franchisees, or is this kind of for anybody that wants to learn. 

Josiah Grimes: Good question, man. So it a hundred percent is for people that are looking learn. So astro flipping is the exact strategy we use in key glee. And so that’s the other thing. Like the other thing that we’ll have a lot of people do that are like, Hey, man, didn’t quite qualify for a Kegley franchise.

But if you start an as flipping. And you start to build up the business and you use that as a blueprint. Astro flipping is something like 60 hours of curated content, but then also community, right? And live q and a with Jamele, my business partner in, in key glee, right? And so a lot of people go in there, start to start their deal flow, start to get things moving, build up enough credibility to then move to a LY franchise and or enough dollars basically to move to a ly f. And then they’re able to transition into a Kiwi franchise, right? And so that’s Astro flipping Sub two is with Pace Morby. He’s an awesome dude. And that’s really creative financing focused, right? Which is purchasing deals where you walk into them, get cash flow and you’re gonna keep ’em for a long time, right?

Not quick turns for lump sums, but generally speaking, long-term cash flow passively with little money down to acquire the asset. 

Ben Fraser: Very cool. Now I gotta give a shout out too to Jamil who I’ve, before we even met you, I got retargeted on all your Facebook campaigns and the ads are hilarious.

Jamele is all awesome. Great. It’s so funny cause if you’re doing, you run an ads on Facebook mo most people commenting or this is stupid. Get off my feed. His are just so funny. People just like he’s, he could be a, like a standup comedian. I don’t know if he is, but he’s hilarious.

Josiah Grimes: Legitimate, bro. Yeah. Jams. And Jamele writes those too. The, does he really? Yes. Hilarious dude. Like it was funny too cause we had our internal content team put together a couple of ’em, right? And they’re all right. You know what I mean? But like, when Jamele writes ’em, dude, they’re just like, he’s just freaking hilarious.

Ben Fraser: just, yeah. Got that mine. That’s awesome. So for someone that maybe, is this is a cool thing, but hey, I got plenty of money. I’m accredited, but I. Some of the stuff you’re doing, you guys also, you’re putting together funds that are going and doing this, for like at a bigger scale, right?

You’re using proprietary data or, talk about that a 

Josiah Grimes: little bit. Yeah, a hundred percent man. So one thing that’s is Vince such a blessing and is just super cool, is from the Keeley side, right? We’ve got such a window into single family properties across the US right? With all the franchisees and we see all the deal coming in. 

Ben Fraser: And how many franchisees do you have? Again? I don’t know if we’ve said that. I think 120. 

Josiah Grimes: Around 120, something like that. Okay. Wow. And we get to see, and then, we’ve got our corporate stores as well, and so we get to see a lot of deal flow coming through, and so it helps us really identify, we literally get to pick the best possible deals, like the best. Because they, the, when you own a key franchise, you basically, we want you to own the market. So you see all the deal flow in and out, right? You’re connected with all of the big players there all of the big shops that are moving property. And so you see everything, right?

So when something comes in, that’s especially a gem. It. You know it for a fact. Hey, that’s a gem that, that’s a deal that comes around once a quarter or once a year. A unicorn deal. That’s what we call ’em, right? Yeah. And so since we have, we have that purview or that window into each market that we’ve gotta franchise, and then also our corporate stores, it allows us to really buy phenomenal assets.

You know what I mean? Fr like on the single family side of things. And that’s one of the funds that’s focused specifically around, single family. Which is the Keeley Fund. 

Ben Fraser: And so that’s, and those are two where you guys purchase them and then do the flips yourselves, or is it just wholesale as well?

Josiah Grimes: So we’re gonna, that’s generally when we purchase and we’ll do the flip. We’ll either purchase, flip or purchase. And then it was fun. We were talking it was awesome dude. It’s so cool cuz the fun space is newer to me, right? I’m, we’ve done all the single family real estate stuff, we’ve done some multi-family stuff, so I’m comfortable with that.

But when it comes to, so rank D okay, what type of reg do y’all have? Fun stuff. When I was talking with Bob at that event, in Scott Cell. I’m just like, dude, I know nothing. . Bob’s so smart. Dang. But but yeah, man, so that one’s the single family focus and the yeah. Generally is gonna be fix and flip.

But sometimes we’ll also depending on the property hold, yeah. It could be fix and hold. Yep. 

Ben Fraser: Got it. 

Very. Cool. Josiah, you have a lot of different brands, a lot of different things going on, but give us what’s the best way just to hear, kinda of get into the ecosystem that you guys are doing after oh, this sounds like a cool thing.

I want to get more plugged in and just learn this, skillset. What’s the best way to get plugged into what you know, you guys are doing, education, you’re teaching, et cetera. 

Josiah Grimes: Yeah, I totally do. Honestly, man, I would say the best, it depends if you’re looking to get after the real estate side of things.

In our reality following pace Morby or Jamele Dane is a really phenomenal way to learn a lot. They do a lot of, they give out a lot of free, really good education, and they care a ton about the success of the people that are, that, that are essentially following them, right? That’s on, YouTube, Instagram, all that fun stuff.

I know that they do a couple. Podcast, and that’s where I always tell people to go plug in, right? For me, on the other hand, I’m generally, I’m the guy at the office. I’m working at the office, I’m, that’s where my focus is, and so people can email me, but that’s about it. So yeah. What, 

Ben Fraser: What are the websites the, to go.

Getting the email list and everything. Is it ke KeyGlee and then you said Astro flipping, or we can put ’em all in the in the show notes, but is Astro flipping the best kind of place to get started to learn about this whole? 

Josiah Grimes: Yeah, so Astroflipping.com can be great or go.astroflipping.com and then keyglee.com. What’s also great is just to get on some of the KeyGlee lists so you can start to see the deals coming in your local area. And so you can do that at keyglee.com keyglee.com because no one knows how to spell it and very few people know how to say it. So I was pretty impressed with you guys.

Ben Fraser: Awesome. Josiah has been really fun. Really appreciate you coming on and sharing this really cool niche. And you guys have obviously done very well and appreciate the education. 

Josiah Grimes: Dude it’s been a pleasure. Thank you guys for having me. So it was always a joy to get to chat with you guys and like I said before, you guys are like 20 times smarter than I am and so I feel every time we talk I also learn something, which is really cool.

So appreciate you guys. 

Ben Fraser: Awesome man. Thanks so much.