Buyer Vs Title Company | Learn From My Wholesaling Mistake! - The Titanium Vault hosted by RJ Bates III

Episode Transcript
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Speaker 1 (00:07):
Welcome back to oh that's fucking adorable the
series where I talk about howthings go wrong and literally
make me respond with that phraseright there, so you guys can
learn from it and not repeat theexact same scenarios in your
own wholesaling business.
Today we're going to be talkingabout well, it's a deal that

(00:29):
you guys already know about,because we just released a video
about a week and a half agosaying how I was going to make
$50,000 in 13 minutes and Ibroke down the story about how a
future TU member brought us thedeal and then I knew exactly
who to call on.

(00:49):
Danny called the other TUmember and we were able to get
the deal done and it was goingto be a $50,000 assignment in 13
minutes.
Now what I will say becausethis is the oh that's fucking
adorable series normally it'sabout how deals fall apart.
The deal did not fall apart,but it still had one of those
situations that came about rightat the closing table that

(01:14):
almost became a deal killer.
But we found a solution andobviously, as it was happening,
I kind of just chuckled and said, right, when I thought I made a
video, a YouTube video, aboutevery last little scenario that
I thought could happen in awholesale transaction.

(01:35):
Bam, something that's neverhappened to me before happens on
a deal, so let's break it down.
The future to you member callsGarrett Littleton on my team,
says hey, I've got a deal, solet's break it down.
The future TU member callsGarrett Littleton on my team,
says hey, I've got a deal.
It's a listing agreement.
Seller doesn't want me to sellor list the property on Zillow,
realtorcom or the MLS, but wantsme to sell it for them.

(01:56):
I take a look at it.
I'm like, hey, this seems likea great deal.
It's here in Texas.
Reach out to Danny.
Danny calls the TU member.
Tu member says I'll take it.
Boom, we sign the contract.
We use a TREC contract.
Future TU member who's therealtor says what title company

(02:17):
do you want to use?
So I go with one of the manytitle companies that we use here
in Texas For the sake of thattitle company.
I'm going to leave itundisclosed.
There's no reason for me tobring that up in this video.
So I'm going to leave itundisclosed.
But I choose the title companythat I want to use.

(02:38):
Everything is great.
We sent off JV agreements.
We sent off assignments Earnest.
We sent off assignments Earnest.
Money gets deposited by us.
Earnest money gets deposited bythe buyer.
They do their inspection.
They're happy with it.
Now the seller in this deal isan elderly gentleman and one of

(03:02):
the points of contention on thisdeal was he needed a 45-day
lease back.
The buyer was willing to givethat because we gave a $5,000
concession for the interest thatthey would be accruing over
that 45 days.
So buyer's okay with this.
However, the seller is anelderly gentleman.

(03:26):
He wants the money up front andanytime delays start coming
about or extensions or it justfeels like it's going to be too
good to be true for this seller,it could kill a deal.
It could spook that seller andsay, never mind, I just want to
go do it the traditional route.
And so that's what kind ofcomes about during this

(03:50):
transaction On our side.
The TU member that was going tobuy it from us comes back and
says I'm actually going to bebringing on a private money
lender on this.
He's going to be the buyer, sowe need to do a name change
addendum and then they're goingto work out their payment
arrangements on the backside,and all that which I was

(04:11):
completely okay with, completetransparency.
This is a unique deal where itdoesn't really fit the normal
wholesale transaction, whereit's like lead generation, the
acquisitions, the then recon,the dispo it all happened so
rapidly where it was like therewasn't really no communication

(04:31):
with the seller.
We're going through a realtorbut it's not on the MLS, no
recon whatsoever, nodispositions, just one phone
call and it's closed.
So certain expectations arethere where there's going to be
amendments and someconversations about making sure
how we're going to get this dealacross the finish line.

(04:52):
However, this buyer that comeson, the private money lender who
is now the official buyer onthe transaction, he causes an
issue the day before closing.
And this is where the oh,that's fucking adorable comes in
, because the seller is like hey, when am I going to be
receiving my money tomorrow?

(05:13):
The seller is like, hey, whenam I going to be receiving my
money tomorrow?
How am I closing?
When is the buyer closing?
And if you've ever done a dealwith an elderly seller, you kind
of know what I'm talking about.
Right, it's the nervousnessthat's there.
I'm just wanting to make surethat this is really going to
happen, because that 45 dayshe's really wanting to take to
move to his new property and soat this point he's kind of

(05:37):
starting to feel the nerves ofI'm actually about to have to
pack up my life, move to anotherproperty, I'm actually going to
be selling this house, I'mgoing to have all this money,
like the reality is setting in.
But he's just verifying andsimultaneous to the seller
wanting to know this, which,mind you, the seller's going to

(05:58):
his realtor, future TU student,who's then communicating through
us and the title company.
So there's a lot of points ofcommunication.
The buyer comes to us and saysI did a Google search of the
title company's address and Isee that they have a rented

(06:19):
space.
They don't have their own brickand mortar location.
They've rented the location andbecause of that I refuse to
close with that title company.
Now, in all of the transactionsthat I've ever done, I've never
had a buyer refuse to closewith a title company purely

(06:42):
based on what their officelooked like or the fact that
they were renting it.
Now, the initial communicationabout the refusal was to the
title company itself.
So kudos to the title company.
They tried to solve this issueup front before we ever got
involved.
The escrow officer got on thephone with the buyer.

(07:05):
The attorney for the titlecompany got on the phone.
They sent over their escrowlicense, right, the bar number
for the attorney, proof that,like, hey, we are a legitimate
title company.
We've been doing this for awhile.
There should be no concerns.
Now, when it came to like whenthe communication finally got to

(07:27):
me, I was like, hold on.
I could actually look this uppretty easily because I remember
the first deal that I everclosed with this escrow officer.
I actually went to her officeand I remember taking a picture
in the office and posting it onFacebook.
So I went into my Facebookprofile and looked it up and saw

(07:51):
that January 29th 2018 was thefirst time that I ever closed
the deal with this escrowofficer.
And so I'm like, hey, maybe ifwe show how many deals and how
long we've been working withthis escrow officer, this will,
like, calm the nerves of thisbuyer.
Well, it did.

(08:12):
He did not care about any ofthe credibility, any of the
proof, he was 100% refusing andwas willing to walk away from
this deal if we did not changetitle companies.
Now, again, I have to give a tonof credit to the escrow officer
and this title company because,despite the fact that,

(08:35):
essentially, their entire careerand their business was being
brought into question here andtheir credibility was being
questioned.
They did not argue, they didnot get emotional about it.
They just kept trying to bringmore credibility and solutions
to the table, which is exactlywhat you want for people that

(08:58):
you do business with.
And so what ended up comingabout from this is that escrow
officer actually reached out toanother title company that she
has connections with and saidwhat if the buyer were to wire
the funds to you and then youwere to wire the funds to me?

(09:19):
Maybe that would make the buyerfeel better?
Now, for the life of me, Idon't know why that made the
buyer feel more comfortable, butit did, and because of that,
the deal actually just closed,and now funds are being
dispersed, which is a beautifulthing, because the elderly

(09:40):
seller's property got taken careof the future TU member.
She got taken care of.
Our other current TU member hisbuyer got the deal and we got
taken care of as well.
But the lesson to be learnedhere in this transaction is for
one just when you think you'veexperienced everything in a real

(10:02):
estate transaction, prepareyourself.
There will be something newthat comes about that you
weren't prepared for.
But when that does happen, donot get overly emotional about
it or freak out and hit thepanic button.
I personally believe the reasonwhy this deal was able to still
make it to the closing table ontime, without having to alarm

(10:23):
an elderly seller and reallycause a chain of events with a
ton of communication needed, isbecause everybody stayed calm
and solution oriented.
Specifically the title companythat we work with, despite the
fact that they were the onesthat were called in the question
, they were the ones thatbrought a solution to the table

(10:44):
and, of course, a ton ofcommunication with us along the
way, and we were trying tofigure out a way to solve it as
well, but they were the onesthat brought that solution and
because of that, the deal closedand funded and everyone was
taken care of.
So stay calm, stay solutionoriented.
More deals will make it acrossthe finish line.

(11:05):
That's our episode of oh,that's fucking adorable.
Let me know if you've ever hadsomething like this take place
in one of your transactions inthe comments.
Show me some love Like today'svideo.
We'll see you guys tomorrow.

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Buyer Vs Title Company | Learn From My Wholesaling Mistake!

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