Want to work directly with me to close more deals? Go Here: https://www.titaniumu.com
Want the Closer’s Formula sales process I’ve used to close 2,000+ deals (FREE) Go Here: https://www.kingclosersformula.com/close
If you’re new to my channel my name is RJ Bates III. Myself and my partner Cassi DeHaas are the founders of Titanium Investments.
We are nationwide virtual wholesalers and on this channel we share EVERYTHING that we do inside our business. So if you’re looking to close more deals - at higher assignments - anywhere in the country… You’re in the right place.
Who is Titanium Investments and What Have We Accomplished?
Over 10 years in the real estate investing business
Closed deals in all 50 states
Owned rentals in 12 states
Flipped houses in 11 states
Closed on over 2,000 properties
125 contracts in 50 days (all live on YouTube)
Back to back Closers Olympics Champion
Trained thousands of wholesalers to close more deals
_________________________________
With over 2,000 Videos, this is the #1 channel on YouTube for all things Virtual Wholesaling. SUBSCRIBE NOW! https://www.youtube.com/@RJBatesIII
_________________________________
RESOURCES FOR YOU:
If you want my team and I to walk you through how to build or scale your virtual wholesaling business from A to Z, click here to learn more about Titanium University: https://www.titaniumu.com
(FREE) If you want to learn how to close deals just like me, The King Closer, then download the free King Closer Formula PDF: https://www.kingclosersformula.com/close
(FREE) Join our exclusive FB group community for real estate investors and wholesalers: https://www.facebook.com/groups/titaniumvault/
(FREE) Click here to grab our Titanium fleet free PDF & training: Our battle tested strategies and tools that we actually use… and are proven to work: https://www.kingclosersformula.com/fleet
Grab the King Closer Blueprint: My Step by Step Sales Process for closing over 2,000 deals (Only $37): https://www.kingclosersformula.com/kcblueprint
Grab Titanium Profits: Our exact system we use to comp and underwrite deals in only 4 minutes. (Only $99) https://www.kingclosersformula.com/titaniumprofits
Want to know what the best markets to wholesale in are? Grab my breakdown of all 50 states here: https://www.titaniumu.com/markets
Episode Transcript
today we're going to be talking about a couple of
different mistakes newerwholesalers make in regards to
acquisitions with the mostcommon type of seller, and that
is motivated but incorrect price.
The first one is they don'twant to educate the seller on
the numbers.
Now I get it.
(00:30):
This is a little bituncomfortable, especially if
you're newer, because youprobably feel like you don't
have a great sense of compingand underwriting.
That's a very normal skill setto be lacking in, especially
when you're newer, and so whenyou're talking to someone that
wants too much for theirproperty, it's really difficult
to dip into.
(00:51):
Hey, this is what I'm seeing,where your house could be worth
once we do this bunch of repairs, and this is how my offer got
to where it is.
That is how I navigate thoseconversations.
It's how I close those deals.
However, you cannot be afraidto have these conversations
early on.
To be honest with you, all itis is a transparent reasoning
(01:14):
and logic behind your offer.
This is why I say we don't everwant to lowball offers, because
if we're lowballing sellers,that's where they get offended
and they get upset, andrightfully so, because you are
not logically explaining to themhow you came to that number.
Now, one of the worst thingsthat you could do is not even
(01:35):
attempt to make an offer.
Now, I saw this the other daywith a newer wholesaler.
I was listening to one of theircalls and they asked them how
much do you want for theproperty?
Tell me a little bit about whatyou got going on?
And then when the seller said,hey, this is what I've got going
on.
The house is in terriblecondition, but I want to get
(01:56):
what I owe for it it basicallyfelt like full retail to the
newer wholesaler.
And so instead of looking at itand determining an after repair
value how much small amount ofrepairs would be needed to
achieve that after repair valueand then explain where his offer
needed to come in, he just saidso you're looking to get full
(02:17):
retail.
Well, if that's the case, I'mprobably not a good fit for you.
You should hire a realtor.
I'm probably not a good fit foryou.
You should hire a realtor.
Now, unfortunately, as I doveinto this, I took a lot more
time of doing due diligence andanalyzing the deal, and so
during the implementation call,while I was listening to this
(02:38):
call, I was able to determine acouple of different things with
the help of other to you membersthat the property was
previously listed on the MLS.
It didn't sell, but that pricewas higher than what his asking
price was of what that mortgagepayoff was.
At the end of the conversation,when the TU member said, hey,
go hire a realtor they hadalready attempted that.
(03:01):
So that wasn't a viablesolution for them.
That had already been that.
So that wasn't a viablesolution for them.
That had already been attempted.
Secondly, the price wasn't fullretail.
It was discounted for what theafter repair value of that
property could have been.
But he didn't take enough time.
All he heard was good conditionand he got lost in the weeds of
(03:22):
the numbers and not listeningto what the seller actually was
telling him.
In fact the seller wasscreaming motivation throughout
the call but what he heard wasgood condition, perfect
condition, livable condition,world of being riddled by
(03:43):
condition and comping andunderwriting.
He got lost in that and wasn'tlistening to that motivation
coming out of the seller.
So there was no education.
There was a fear behind thatthat he didn't go into that call
as I would have, where I'mhearing a ton of motivation.
Let's try to solve your problem.
I see you just had this list onMLS.
(04:05):
Clearly you didn't receive anyoffers.
Let's see if we can come upwith a solution for you in your
situation.
Now, when it comes to actuallyexplaining those numbers, you're
going to have to slow down,you're going to have to take
your time, because the lingo,the language that we use after
(04:26):
repair value ARV they're notgoing to know what that means.
So you're going to have toeducate them on what that means.
And then the amount of rehabthat it would take to achieve
that after repair value that'sextremely important to explain
to them.
That is a variable right.
Smaller amount of rehab, thelower the ARV, the more amount
(04:46):
of rehab you can max out and youcan get the maximum amount of
value out of the property.
And we base that off of factswhat is actually sold in the
area.
Use specific addresses ifnecessary.
Then you explain holding costs,closing costs, and this is
amount of profit.
Now, if you do not have ourprofit calculator yet, there is
(05:09):
a link down below for thetitanium profits course.
You should absolutely have itbecause it will help you
navigate this part of theconversation to truly explain to
the seller where your numbersneed to be.
Now the second thing thathappens in these calls is you
are afraid to embrace being thebuyer and walk away from a deal.
(05:31):
This is where thoseconversations go for way too
long 45 minutes hour, two hourson the phone with a seller who's
motivated, but the price isincorrect and we go into the
friend zone.
Right, we just keep talking tothem because we feel like we're
building rapport.
It's not about that.
(05:53):
You don't want to become theirbest friend or, even worse,
their therapist during thisconversation.
You want to be a solution for aproblem by buying their real
estate.
So, as much as we need tolisten to their motivation and
uncover those layers, we do needto keep the conversation on
topic about how we're buyingtheir piece of real estate.
(06:16):
And so don't be afraid toembrace no and walk away from
these deals when necessary.
But there is a thin linebetween these two scenarios
where, one, you have to educatethem on the numbers and, two,
you need to embrace no and walkaway.
I feel like newer wholesalersreally struggle in this
(06:37):
situation.
So here, let me make it easyfor you.
Struggle in this situation.
So here, let me make it easyfor you On each call, you should
educate the seller.
If the price is incorrect,explain how you got to where you
are and break those numbersdown Worst case scenario.
It is a solid experience foryou and it's a rep that you have
(06:59):
put in on educating the seller.
That is necessary and it'sneeded because majority of the
time when you do educate aseller on how their price is
incorrect, it's not going to besuccessful.
So even if it doesn't end up ina signed contract and you know
that the numbers are way far off, at least you're getting more
(07:21):
experience of breaking downthose numbers and explaining the
situation to the seller.
Now, after that, when you'veexplained those numbers, you
will probably have to repeatthat situation because,
understand, they're not realestate professionals like we are
and so it's gonna take sometime for them to digest and
(07:43):
completely understand andcomprehend what you're saying in
regards to the numbers.
So repeat that to them,probably two, three, four times.
And if they still do not agreewith the numbers, then that's
where you need to embrace no andwalk away.
But it should be few and farbetween where you are literally
(08:04):
walking away from the deal andnot educating them on the
numbers.
If you're just on the phone andyou're saying how much do you
want for it and it's not a goodprice and you're saying, hey, I
don't think I'm a good fit foryou.
You are absolutely leavingdeals behind and it is your
responsibility and obligation todo the right thing by these
(08:25):
sellers and make sure thatyou're not doing that.
So, as a newer wholesaler, whenyou go into these conversations,
expect that the majority of theleads that you're going to talk
to fall into this seller bucketHighly motivated, incorrect
price.
Uncover the layers of themotivation.
Educate them on the numbers.
Always start with after repairvalue, then the rehab, if you
(08:50):
can get them to agree to thosetwo numbers.
From there, the fixed cost ofholding costs, closing costs and
the end buyer's profit is fixed.
Those numbers don't vary.
So it's easy to explain those.
You don't even have to go intothe specific amounts, just the
fact that they exist and thentalk about where your actual
(09:13):
offer is coming in.
Do that over and over and overagain and over the course of
time you will become moreexperienced and that's where you
could get to the metric ofclosing one out of every nine of
those types of leads, becauseevery now and then you're going
to get the right price from theseller.
So that is how you should benavigating these.
(09:35):
Do not be afraid to educate theseller.
Do not be afraid of theiremotion, their response or
anything like that.
Stay cool, calm and collectedand just talk math, that's it.
Explain to them why you'regetting to where you are and, if
you're truly a buyer, that ishow those conversations should
(09:56):
go.
Do not fall into the friendzone.
Do not elongate conversationswith sellers because you feel
like you're building rapport.
To be quite honest with you,all you're doing is wasting your
time and making your ownbusiness less efficient.
Now I want to hear from eachand every one of you, especially
the newer wholesalers out thereIs this something that you're
(10:19):
currently struggling with?
Would you like to see me dodeeper dives into these types of
seller calls?
Is it something that you'restruggling with?
If so, let me know in thecomments.
Otherwise, show me some love,like today's video, and we'll
see you guys tomorrow.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
The Joe Rogan Experience
The official podcast of comedian Joe Rogan.
What Are We Even Doing? with Kyle MacLachlan
Join award-winning actor and social media madman Kyle MacLachlan on “What Are We Even Doing,” where he sits down with Millennial and Gen Z actors, musicians, artists, and content creators to share stories about the entertainment industry past, present, and future. Kyle and his guests will talk shop, compare notes on life, and generally be weird together. In a good way. Their conversations will resonate with listeners of any age whose interests lie in television & film, music, art, or pop culture.