Hey, what’s up everybody? This is Ryan with cashflow dad life and I am so excited to be on the line today with a very special guest. A, his name is J. Massey. Uh, you probably heard of him if you haven’t, you should check out all of his stuff. Uh, I’m with cashflow dad life. He’s with Cash Flow Diary and uh, we were joking actually before the call that I actually spent about six hours previous to this just delving into his information because he’s got a wealth of information.
This guy has been on Fox, a advising people, financially has been in many newspapers, but more importantly he’s helped thousands of students worldwide to retire basically. He’s got a variety of strategies, a lot of stuff in his arsenal. But, um, what you’ll find most fascinating is kind of his story.
I’ve listened to a story probably 12 times and I have the privilege of it, but Jay, if you could just for our audience, kind of give us a little bit about where you came from and some of the struggles you had in, in how that resulted into what you’re doing now.
Yeah, absolutely. First, let me first say, I thank you for taking the time to spread information and help individuals and become bigger, better, badder entrepreneurs and most importantly, I really love it when people take action. So a expert for, for doing that and allowing me to influence a few that are listening today.
And for those of you that are listening, I want to say this because it’s really important to understand no matter what I say next, the thing that I really want to dress for you is to understand that your story is just beginning. It is not over. It may not feel like that right now.
You may feel like, J., you don’t know I’m at the end and I totally get it, but I want you to really think of it as the beginning because that’s really what it was for me when I felt like we were at the same when we first got started a few years ago.
My wife is a recruiter by trade and I was a financial planner, so and things were going pretty well. We had just bought our first house. It was actually a condo in Anaheim, California, which you know at the time and we thought we were doing doing the right stuff. You know, we had our six to 10 months of expenses set aside. We bought a brand new place.
We were just happy and then my wife found herself in the situation and what she was pregnant.
Now that was my fault…
Here’s the thing, when she’s pregnant, she has a condition known as hyperemesis and what that simply means is she couldn’t consume something as simple as bread and water. She could not eat or drink. And what you have to understand is that it was very, very stressful for me as well as for her because now I’m sitting by my phone every time you know, beeps or rings or whatever, I’m thinking, oh my God, this is the phone call where someone’s going to tell me my wife is dead.
Dad’s incredibly, insanely so. And one day what I did is I went to go try to relieve some of that stress and I went to go play volleyball while growing up playing basketball. I’m like, it can’t be that difficult. Right?
You know, you jumped, you hit a ball. Well, I jumped, I hit the ball, but I landed on the guys head on the way down and punctured my lung. I was born with asthma and I developed a condition known as pleurisy. So thou that meant I could not walk and talk simultaneously. Maintain was a stressful. I wouldn’t even more so. So you can imagine my wife can’t eat or drink. I can’t walk or talk.
We’re quite the couple at this point…
Yeah. I would not want to be around you. I would not want to be your friend at that time for fear of the black cloud. Also striking me. You’re like, it’s time to disburse those don’t go to his house, his phone call. I’m not going to be friends for a while.
Kind of felt like to some degree it’s like, what is going on? Like really? And you know, I, I couldn’t actually do the, the normal work that I was doing at the time because, you know, hey, what does it sound like Brian? I say, Hey, come over to the hospital so that we can do your financial plan. I mean, that doesn’t really work. So when you started selling a personal possessions on Ebay, because that was the only option I could come up with.
And once we ran up out of our own stuff, I started selling our friends stuff and once they ran out I went to the garage sales and that, that was what we were doing. And uh, I wanted, I just needed a way to eat, you know, so I could go to a garage sale on Thursday or Friday, try to buy something at a discount. Then hopefully posted them Saturday, sell it on Sunday to get on Monday.
So you were the guy at the garage sale. If you had an intended for $50, you’d say take fifty cents for it. Yeah, I might give you a dollar though. I did one garage, so I just got the crap haggle atomy so. But yeah, look, you gotta eat, you gotta eat and you know you gotta…
I’m fighting. I’m not fighting for like, Ooh, I can’t wait to buy my second car. No, I’m fighting for trying to make sure that we eat. So that is what my brain is thinking. And it was around that time where I realized I had a problem. Again, I think it’s a very similar problem that most people who might be listening right now also happened.
The problem is simply, thus my income was tied directly to my effort. If I got up and did something that day, then yes, we had a way of generating income and getting paid. And what’s interesting is that if you learn, when you learn, I should say, too, to actually disassociate your income from your effort and learn to build and control assets and learn to put those assets in the marketplace and, and derive income from them.
Now what you’re doing is excellent because when you run in your, when you run into situations like this, you don’t have to get up every day to be able to go out there.
And what’s interesting is that every human being on the planet, either your body or your mind or you just going to stop wanting to do what you do. And when that happens, how does the income continues?
See the gift I was given is that I got to learn that lesson early. That’s what happened. I got to learn that lesson way earlier than many of our seniors are, are learning it right now. And many individuals who are frustrated with their jobs. So what happened is that a friend of mine said, hey, you should become a real estate investor.
You’ve got to understand why this is so hilarious, because at the time he knows what’s going on. I’m squatting and banked on property. My credit score’s three 98. I literally have no money and I turned it into just like, dude, if you pay for the lunch, then you okay. I guess I don’t know how that’s gonna happen because I’ve got no money.
You got to make help me make this happen with no money. No credit now. Why did he, why did he tell you to become a real?
Did he think you had certain gifts and talents for or was he just like, look, here’s a way to make money. That’s, you know, it just seemed very strange at the time. But having talked to them since then, he said, yeah, he was like, inside there was the, the, the person that could make this happen.
And that was like, I’m glad you saw it because I certainly didn’t have friends that can see those things and you though, well, we all need them and that’s the thing that are the problems. And, and, and, and what I’m going to say, it might sound harsh, but I believe it’s very, very true. The, the experience that you’re currently having right now on this small blue globe, uh, called your life is, is a result of your absolute best decisions because Ryan, I have never, ever, not even once heard someone say, you know what, today I’m going to aim straight for the bottom. Right? Right.
So you’ve done your best with what you’ve gotten and if you’re not satisfied with it, there’s only really one person to blame and it’s not your parents. Okay.
So I have to take stock of that. And oftentimes when we find ourselves in those situations, the answer actually lies outside of ourselves.
And that’s where it was for me, you know, so it, he basically introduced me to a concept known as wholesaling, which I’m sure many of you guys already know about and because, and he’s said it thusly, he’s like, it’s very similar to what you’re already doing on Ebay. And I was like, what do you mean? Because you’ve got to understand what I was doing. I was going to a garage sale or discount warehouse and and I would take a, this is back when comp USA was going out of business, so for, for those of you who remember that store, so they were. They had discounted their cell phones though.
They were unlocked, no contract, nothing. So I could go pick up their cell phones for like $80. Right. And then I would then put that same cell phone on Ebay, offered to a wider audience, take some fancier pictures, put it there, and I could sell it for three or $400.
That was great. Cell phones. We’re always awesome when that happened, but they ran out of cell phones quickly, so I had to find other items that did the exact same thing and if you realize what I just did, I said I bought something at a discount and then I sold it at a discount with glee and that was wholesaling. I had no idea you could do it with real estate.
And so what happened is that that’s what I started doing. I started learning how to control property, get them under contract, sell them to someone else really quickly. And what would, what began to happen is I would earn a 2000 to $22,000 in about 72 hours per transaction. And my world began to change because the idea at the time of earning 20 grand in a week was like,
What is that way better than making that $40 on the Nintendo, on the, uh, on e Bay. I mean, no one I just didn’t know. It was literally the same skillset. I’m like, are you kidding me? Why is, why is not every. I mean hello?
And that is what led to the next one.
So, so tell me if you agree, tell me if you agree with me on this, but you know what? Wholesaling is great and it teaches you a lot of skills that you need in real estate, but the.
But one of the problems with wholesaling is what you’re saying earlier is, is you still have a job really. I mean, you’re still exchanging your time for money, you know? Yeah, absolutely.
There are many, there are many good things about starting out as a wholesaler. One of the best is yes, it’s going to force you to build what is technically your most important asset is as a business owner, regardless of industry, in that being your database, period, you you’re nothing as a wholesaler without a database and it’s a database of not names and phone numbers, but a database of actual relationships.
People who actually know you, that who you’ve talked to, who you possibly interviewed in various different forms, because I mean I get these emails all the time, Hey Jay, I got this list of investors ready to do business and I’m like, how many of those have you actually talked to? None.
Well, you have nothing. You have an idea. You don’t have really a relationship with them because last time I checked, anytime any human gave money to somebody else in exchange for value, they have some form of a relationship in some way, shape, or form.
No one blindly gives tens of thousands or hundreds of thousands or in some cases, millions of dollars or anything without there being some sort of preexisting relationship and if you don’t have it in there, however, wholesaling will force you to build it, which is great. However, yes, you still end up trading directly for money because what?
Here’s what’s really interesting is that a while I was wholesaling what happens, I ended up catching the bird flu. Right? I know…
It’s like, it just did not quit when it rains, it pours. But uh, I had a volume business to the point because of my database to where I still close three transactions even though I was in quarantine, add a whole, you know, because I could do it that way, but my point is I still have to do something. We couldn’t even just sit in the bed and watch Netflix, b movies because I had to do something.
Hey, just real quick. Are you still have to learn to escape from? Go ahead. Are you still getting sick? Because I might have to end this podcast real good part number of years now. Right? Like what good the world is really going on around me, but this was the situation, it affects your mental state, you look at the world and whatnot, but when you’re, when you start earning on a monthly basis, what you used to earn on an annual basis, everything begins to change it for you.
And that’s what started happening for us. And I started asking bigger, better, different questions, upgrading advisors and through that process I was like, you know what, I’m done with this wholesaling thing, so let me try note brokering.
And I realized that that was the same.
Then it’s like, okay, well let me hold some notes and I realized that was just really boring…
And then I was like, okay, let me buy. I was around that time, uh, my, my account and said, you have a tax problem. And I’m like, okay, what do I do about it? And they’re like, you need to buy more real estate. And then I would buy a single family house were like, that’s not enough, what do you want me to do that they’re like, that’s your problem, figure it out.
So I was like, okay, cool. Um, and then I started buying apartment buildings, so I was like, okay, is that better? They’re like, yeah, cool. So I started buying apartment buildings and then that board with that that are switched to commercial buildings and then cell phone towers and you know, all of those things. And in the process, learning to raise capital, learning to do the things that are necessary to build the infrastructure and team and prevent that stuff.
But it all had a very big problem. Very big problem. Is this, when you are in acquisition, like as a financial planner, one, when you’re trying to plan for retirement.
And again, most people have a retirement account, kind of retirement plan, subtle difference, really important. But when you’re trying to plan for retirement, there’s a, an accumulation phase. And during the accumulation phase, you need every dollar to go as far as humanly possible. And in real estate we call that leverage.
That’s why we put as little down and you would try to take what little we have and make it grow, uh, over time. And to do that, you usually need some sort of leverage or loan, etc. And what ends up happening is that because of your debt service, you ended up making this choice. Do I either hAve deferred maintenance or do I take cashflow?
Deferred maintenance or cashflow and it’s the age old question in and I didn’t feel good. I didn’t feel good about taking cash flow, knowing that there was deferred maintenance idea of providing a less than a periods, a product that I could be and I didn’t really feel fine about necessarily providing the best product. But then having no gash though. I mean neither one of those situations where I didn’t like having to make that feel good either.
So yeah, right. It’s like this is crazy. So I started trying to figure out other ways to earn some additional active income and that’s what I went down there. I went looking at franchises and were like, we’re going to buy a laundromat, a quick serve restaurants.
I was looking for anything that I could do so that I didn’t have to make that choice. And it was around that time where one of my students came to me and she, she simply said, hey jay, thank you for teaching us through scalpbot, thank you for doing all this stuff, but I just want to tell you, um, I know what you said to do, but we didn’t use the money for what you’ve said.
And I was like, where’s this going? And I’m like, what did you do? And I was like, well, we, we’ve been doing our student housing business, which they had been doing and student housing is a very profitable that issue in real estate, which is great. But we also started doing this short term rental stuff. And I’m like, what do you mean?
Tell me more…
And, and ultimately what it came down to is that she was torn, do I keep doing short term rentals because it, it’s doing well or do I keep doing student housing because it’s doing well as well? And I was like, well, let’s just look at the numbers. She showed me the numbers. We had our little consultation and long story short, and you’ve got to understand, ryan, I’ve had the privilege of speaking internationally on cruise ships radio. Been many places in front of lots of people.
We get lots of offers still to this day, all the time. 90 nine point nine, nine percent of the time I say no, this is the only time I’ve looked at something that someone brought to me and I’m like, yeah, that’s something I want to jump out that the numbers were undeniable. Period. Yeah.
So there’s, there’s, there’s one thing I heard you say in my, uh, advanced study of you before this interview and uh, and I’m, I’m, I’m going to rip off the face of the, the phrase from you, but that’s math makes money and when you see that math in front of you, you know, it’s, it’s, it’s hard to say no to it
At 100 percent. It did. It’s like, okay, hold on, wait a minute. Because when she showed me the numbers, my initial response was, and that’s every month. I’m like, I couldn’t, I could not compute that. It just, it was beyond my understanding at the time. Again, the answer comes from outside of me, right?
And I’m like, well, I’m not gonna I know of no strategy that’s going to do anything better than that. So how about I do it and that’s what I did. I was like, you know what? And before, and at first I wasn’t telling people that I wasn’t going to tell us, so it was like this because people, I don’t want to lead people down the wrong path, none of that stuff. I’m like, I neeD to do thIs first, and that’s what I set out to do. I was like, okay, let’s just see it started out total experiment.
Let’s just see how this goes. And what ended up happening is that in about a six month period, six months, 180 days, we grew it to seven figures. I was like, oh my gosh, this is insane. Wait a minute, what was it me? What special did I do something special or is this the magnitude and power of this opportunity? And that’s what got my attention.
It was like, okay, I need to. I need to start sharing this. So I stopped acquiring more units. I started documenting everything that I had learned and said, you know what, I would want more people to come along. I need more people to prove that it wasn’t just me, that I didn’t just get lucky that they can do It too. and you did it with a punctured lung in the bird flew by then.
But yeah, you get the idea is that I, I, and, and that’s…
And that’s the thing I really want to say. You got to understand. One of the things that has happened for me is that at, I was like 37, 38. I’m in a retired physician, if you will, you know. And one of the things that I learned during that time was that that should not have ever happened for me because it was really boring because I had nobody to play with. Right.
There’s no one that young who I could go anywhere with, especially during the day because they were all at work and it was like, ah, I got literally no one to play with. So it wasn’t good for me. That’s a bad place to be, especially for an entrepreneur. Entrepreneurs kind of have that, that, uh, that mindset that they need to stay busy and they need to keep on moving on and serving others in a different capacity. So yeah, that’s, that’s a terrible place to be.
And it was, it was from that that kept me realizing that I needed to do something different. And when I started talking to some of my mentors and, you know, I was asking them, hey, what do you, what do you do?
Because remember, I grew up in the business fighting for food, but when that is no longer like the thing, you’re like, yeah, I’m going to eat tonight. I’m, I’m, yeah, I’m okay. Um, what are you fighting for at that point?
And I had to find something that was bigger and better and, and that’s, that’s pretty much our cashflow diary even came into existence is because I needed a way to document what I thought to be the most valuable thing I possessed, which in this case was not the real estate, but the lessons, like how did that happen? How do you go from squatting and bank owned property to owning this stuff?
How do you raise the capital, how do you do apartment, but how? How do you do all of these things from a position that the world would consider to be disadvantaged, to say the least and and build something worthwhile that allows you know, a different completely different lifestyle and that’s what gastro diaries become.
A place where entrepreneurs come to learn or would be entrepreneurs come to learn to become entrepreneurs and existing entrepreneurs come to learn to become better one so that at the end of the day we all can go out there and together and the challenge with real estate sometimes it can take so long and so many skillsets to get one transaction done that you know a lot of people quit.
What I’ve learned to love a lot about the whole short term rental thing is that individuals experience success just at the right speed slips that they keep pushing forward and they keep getting these small wins that get them to the big lens in, in such a fast enough fashion to where they begin to develop dreams and allowed themselves to become bIgger, better than they thought they were ever going to be.
And just watching that happen with person after person after person is, uh, it’s, it’s pretty. It’s pretty exciting. I feel very fortunate to have discovered this particular strategy to, uh, learn the lessons of systems and technology that I know and having the opportunity to apply them in such an industry that, that allows, you know, our average student to go out there to have three, four, five, six, seven, 10 units in a very, very, very short period of time.
Which, uh, which then has them going, well, I don’t need my job if, if this is what it’s going to be. I’m like, yeah, you don’t. And now now they get to pick their kids up from school. They get to go to the concerts and the and the games they get to do the things that mattered to them. When I hear those stories that, that’s what keeps me going. Yeah.
You know, it’s, it’s interesting you say that because a lot of times, a lot of people wonder why, you know, someone like you who is very successful and has achieved this level, that you’ve got enough passive income. You don’t, you don’t need a job anymore. Um, you know, I, I get the questions, uh, uh, uh, uh, directed towards me all the time too. Why would you, if this is such a great strategy, why would you teach this to other people?
And I think what a lot of people don’t understand is, you know, there’s a quote I heard a long time ago that really stuck with me from albert schweitzer and he said this much, I know those of you who will really truly be happy are the ones who have sought and found a way to serve other people.
And it’s incredibly rewarding just to be able to impart your knowledge to other people and watch other people flourish when she say…
Yeah, absolutely. And not only that, I, I’ve, I learned through that, through them. I mean, I think I learned more than I actually couldn’t even possibly come close to teaching.
Well you, yeah, you learned, you learn the whole short term rental strategy from one of your students. This is amazing. And that’s the thing, you know, they were, they were doing relatively okay.
But they have some things that were missing. And I was like, well, if I teach them this, what would happen, you know, and I, you know, and that’s the stuff I’m talking about when you share an idea is chaired, becomes way more valuable than when it’s kept to yourself. And plus, you know, now that their life is completely different in the lives that they touch every day. I mean, do you know what mean jobs they’ve created themselves?
I mean how many people there they’re able to employ because of this. I mean, that gets me excited that those are holidays that are going to be celebrated because they’re one of their workers had a job and the, those are, all of those things are going to happen and are already happening and being the catalyst to actually give people the, I’ll say the excuse to finally step into the greatness that they were born to be a. Yeah. That’s
There is that. You can’t put a price tag on that. That’s absolutely awesome. Now your wife, um, I assume that she did have that baby, right? Yeah. We have four kids now. It’s pretty awesome. So yeah, every time she’s pregnant she gets the privilege of going through that. But it’s boys or girls or boys, girls. Three girls and one boy. So yeah, assets I’ve got. I’ve got five boys myself. So, uh, I asked people all the time, what’s the secret to five boys? Five boys. Yeah. Oh my goodness.
You’ve got like three refrigerators. I do. Yeah. It’s ridiculous…
It’s getting, even in the youngest one had just a topic for a different day, but you know, I always like to ask people what the secret is to making a girl. But then I never liked to, to the answer I get. So I won’t ask you that. I don’t have this thing. Good. I just know whatever it is. I figured it out. Just do what comes natural. Yeah. Natural skill I guess. Well that’s awesome man.
So you, you are the perfect person to have on cashflow. Dad live a father of four. I actually didn’t know that about you. That you have four kids. That’s awesome.
Yup. The eldest is 21 and the youngest is uh, he is now. Hold the feet. He ate almost. Yes. It’s never. No. Seven, seven, seven.
Oh man. This guy’s got older sisters. I know, I know. God. God. God. God bless him. Keep the barbies away from him. It’s all handling it well for the moment until they, you know, sometimes they do like do that girl thing where they gang up on the old because of the toilets here. Whatever else It is.
Down the other day on the toilet. come on. That’s awesome. Well, hey jay, thank you so much for coming on and sharing your story with us. Um, for those of you that are interested in getting more from jay, we’re going to put on our resource page on cashflow. dad life.com. If you go to the resources, you’ll be able to see some of the stuff that jay has a. He’s got a lot of things you know, out there and met hIs.
His goal is basically to help people create passive income streams and retire…
So he’s got a lot on a short term. Rental is actually, um, and I know there’s a, there’s, you know, some other things out there on short term rentals. I like it all, you know, in fact, when I first got started investing in real estate, I digest anything I could get my hands on. So the more, the more books you put in your master’s program, you know, the more knowledge you fill your head with, the more successful you will be. That’s just the facts. Okay.
So if you’re going to pick a niche, you’re going to pick a strategy. Um, if short term rentals is your strategy, I would definitely recommend checking out J stuff.
Yeah. I want to say one thing to underscore this. Sure. I want to reiterate something. Uh, we’re talking in my experience history. I’ve done many hundreds of wholesale transactions, hundreds of them. Uh, I’ve had my highest. I had $400, a little more than 400 doors or real estate apartments. Notes. I’m a single family houses. Uh, I’ve had, I’ve been. The bank are negotiated and traded notes, own cell phone towers, which is kinda cool.
Marshall buildings knowing everything I know today. If I was starting over the number one thing I would be doing in short term rentals, there is no question about it. There is no doubt. There is not even a close second I had from what I’ve seen from individuals who we’ve taken through our process who have had literally no experience to where they are today. And how quickly there I am. I’m a little bit matt… I might get, have had to.
Well, people, people can, people can get the learning curve from you instead of experiencing it on their own.
Yeah. I still get a little like really? Like you’re man, you just two months ago you weren’t earning $20,000 a month. Now like, seriously man, that’s really frustrating sometimes, but it’s all good because I know their life is changing. Yeah. Yeah. Yeah. No, that’s awesome.
Well, J, thank you so much man. I really appreciate you coming on the podcast. Guys. check him out. Check him out on our resource page. Um, jay is the man. I hope you guys understood that from listening to this podcast. He’s also. God, don’t you have a podcast too, and you’ve got a.
The researchpodcast.com or cashflowdiary is the name of the podcast. Cash Flow diary is what I am on everywhere. We’ve got youtube videos on our youtube channel podcast. You name it. If you type it in, it’s probably us. Oh, awesome.
Well thank you so much, J. I appreciate it.
Thanks for having me.
Thanks for listening. Please remember to rate and subscribe. You’re going to want to listen to every episode because each episode will have an idea or a strategy that changed my life and could change yours. It takes one for more information and for some great passive income. Invest in resources. Check out my website, cashflowdadlife.com. Until next time, my name is Ryan Enk and this is Cash Flow Dad Life.