September 18, 2025 • 29 mins
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
A couple of things about these deals.
First and foremost, I do wantto remind you before I get into
it, because we do have fivedeals that we're going to be
bringing down today we do dealsin all 50 states.
Four of the five are going tobe in the state of Texas, which
is kind of funny because Ialways talk about how Texas is
(00:25):
our best market.
This despite the fact that wedo marketing, we buy leads in
all 50 States.
I hands down, I feel like Texasis like the best state to
wholesale in.
Uh, still, to this day, as muchas I love other locations and
love being nationwide, it justit always ends up being the best
(00:46):
place.
We've got Kyle from Connecticut.
Audrey from Houston, texas,what's up?
Audrey Zach in Southern Cal.
We got Hawkinsville, georgia.
I'm taking all the deals.
I'm not taking all of them,just taking my fair share.
Happy Tuesday, kathina.
(01:07):
What's going on?
And then we got Mr Taylor Ford.
Got a bunch of it from Houston,a bunch of TU people.
All right, so let's get intoReno, nevada, and leave that one
out.
All right, so let's break downour first deal.
This is going to be in hondo,texas.
I will say this deal is goingto have its own separate video
(01:33):
coming out pretty soon.
Cassie's going to be recordingthis um more on the transaction
coordination of what took placehere and what we had to do to
get it across the finish line,but I wanted to share it in here
.
In regards to how I'm going toshare some of the KPIs and where
(01:54):
the leads are coming from andwhatnot, this was actually from
property leads, so this is oneof those $30 nationwide
exclusive leads, and the reasonwhy I love the $30 nationwide
leads is because it gives usopportunities for deals like
this.
Hondo Texas is a tertiarymarket to San Antonio Texas and
(02:20):
so if you were to, you know, goand buy leads.
Hondo Texas is probably notgoing to be a location that
you're going to be seeking,unless you are like a San
Antonio wholesaler.
But for me, nationwide virtualwholesaler, when I get a lead
like this, this is essentiallythe best type of lead that I'm
(02:42):
looking for.
It's great if we happen to geta San Antonio or an Austin or
Dallas Of course, those happentime and time but Hondo is the
exact kind of lead that I'mlooking for, right outside of
that major metro area, probablyan area where most wholesalers
are sleeping on it and it sneaksin for the cheapest price that
(03:07):
we could possibly get for $30 alead right and so this comes in.
This seller had extrememotivation, right Financial
issues.
Had a sick child that neededhealthcare and they wanted to
use the proceeds from this salefor the child's healthcare, and
(03:29):
so it was also super timesensitive.
And so these are one of thosesituations where, when
wholesalers come in, it's likewe're looking at it from the
perspective of of course, we'rerunning a business, we need to
be profitable on our deals, butwe also need to be making sure
that we take care of theseller's situation and we're
(03:50):
truly listening to what thatseller needs.
And so in this situation it washey, we've got to make sure
we're getting enough money tothe seller where the sale of the
property actually satisfiestheir needs, but also it gets
done in a timely enough fashion.
So in this situation here itwas a little bit nerve wracking
(04:14):
where it's hey, we're not doinga ton of deals in Hondo Texas,
it's not like we've got thego-to Hondo Texas buyer, of
course.
It's not like we've got thego-to Pondo Texas buyer.
Of course we're believing thatwe can dip into the San Antonio
market, of course, but stillthere's uncertainty.
There's uncertainty from thefact that we know the property
(04:38):
is physically distressed.
We don't know that until wewalk it.
We have our processes, but weare telling the seller this is
what we can do to you withtransparency, right.
So we got the property undercontract for $65,000 and our
asking price was 75,000.
(05:00):
Now again, remember, this wastime sensitive.
So we immediately went to theknown buyers that we knew in
that area and our initial offerthat we received on this
property during dispositions wasfor 40,000.
So significantly below what ourasking price was and even below
what we had it on our contractfor.
(05:21):
So it wasn't really a viableoption for us and I wanted to
bring that up because a lot oftimes we don't really talk about
that.
On the content, where it can bedemoralizing when you're talking
to an extremely motivatedseller, you go through the
acquisitions phase, you gothrough the recon phase and
(05:44):
during the recon phase you getthe pictures and the videos back
and you feel somewhat confidentabout the deal itself and then
that initial buyer walkthroughcomes back, kind of kicks you in
the teeth and says, hey, you'reoff by $35,000.
Now all of a sudden you kind ofstart questioning whether or
not you're going to be able tosolve this seller's problem or
(06:05):
not.
And is you're going to be ableto solve this seller's problem
or not, and is this deal goingto be able to go through?
What I will say is, through theconversation that we had with
the end buyer there, it becamemore apparent as to why their
offer was where it was, and itwas because, hey, hondo's not
really one of their main markets.
They were being conservative.
There were some things inregards to the property that
(06:28):
they were kind of accounting foron the rehab, that we weren't
necessarily accounting forourselves, and so we understood
where they were coming in.
But the conversation that we hadto have was we can't go back to
the seller for this amount ofprice reduction.
We have to go out and we justhave to continue doing our job
(06:52):
and working to dispo this at afair price for ourselves and for
the seller.
And so we did that and we endedup actually selling it for a
full ASCII price at $75,000.
So I share this to let you guysknow, especially those of you
that are newer to wholesalinglike don't get demoralized with
(07:16):
that initial offer from an endbuyer, have that heart-to-heart
conversation with them, get anunderstanding as to why that
came in.
But continue doing your job andbuild those relationships and
eventually you could find thatend buyer.
That will see what you'reseeing on the deal and because
(07:38):
of that we were able to signthis and make a $10,000
assignment and get the deal donein a timely fashion to where
the seller got taken care of.
So breaking this deal down again.
This is a $30 lead fromproperty leads that we assigned
for $10,000.
But the key points here is likeon these $30 leads from
(08:04):
Property Leads, leadzolo, speedof Leads, coupon Club, whatever
it is one of the issues thatI've heard people have is oh,
it's so rural and they'redifficult to dispo.
That's true to a certain extent, but also there's diamonds in
the rough where it's not a SanAntonio Texas.
(08:25):
It's that tertiary market, thatsecondary market right outside
of it that can really make adifference.
And, as you're going to see asI go down through this list of
closed deals, that's going to bea common theme.
We're not really doing them inthe major metro areas, we're
doing them right outside.
That's what you should befocusing and looking for inside
(08:48):
of those leads that come across.
All right, let's move on to thenext one.
You guys have heard me talkabout it, but I wanted to share
it on air, since we're breakingdown the deals that just most
recently closed.
This is Tiki Island, texas.
I posted a video of this.
I was on speedily training,teaching you guys here's how you
close deals.
Here's how you thought sellers,you guys were on there and you
(09:11):
challenged me hey, rj, insteadof talking about it, why don't
you do it?
And you know I love doing that.
So I went on there and I boughtthe lead.
Now a couple of things.
This was from speedily.
It was off of the marketplace.
This it had a c rating.
Okay, so a c lead.
Um, and I I've shared thismultiple times yuri I, I think,
(09:32):
was actually scared that thelead that I decided to showcase
was c.
The reason why I bought it wasbecause of the motivation, the
location and then also thecondition of the property.
Okay, I knew it needed somework.
I knew the location and thenalso the condition of the
property.
Okay, I knew it needed somework.
I knew the location had enoughend buyers and the motivation
was it was an inherited property, and so that's the reason why I
(09:53):
purchased it.
Now the downsides to this leadafter I purchased it was it was
higher price points and longdays on market not necessarily
what we're looking for when weget a lead, and I was actually
blown away at how long the dayson market were in Tiki Island,
(10:13):
texas.
But what I did notice was is alot of the much longer days on
market were the million plusprice point losses, and the
seller's asking price for thisproperty was $500,000.
Now he inherited this propertyand he inherited it.
He also has a brother and sothe brother was actually living
(10:36):
in the property.
So in order for them to sellthis property, they were going
to have to use the proceeds fromthis property to help him
purchase his new property, right?
So there was also a timingissue here as well, as anytime
(11:00):
it's an inherited property,there's multiple decision makers
about price points.
Now they come to that agreementof $500,000.
Now, if you see me on this call,it was complete transparency.
I can wholesale this property.
This is the benefit and thegood thing about this was the
seller, who was not living inthe property.
(11:21):
That brother was actually asub-2 student, so he's in our
world.
He kind of understood thelanguage that I was using in
regards to wholesaling andwhatnot, and so it made it a
little bit easier.
But I think he actuallyrespected the fact that we were
coming in with completetransparency about wholesaling
the property and also about thefact that, hey, we can agree to
(11:45):
$500,000 today, but obviouslyit's going to be contingent upon
the buyer feedback and also thefact that when I talked about
assigning the deal, I told themexactly how much I wanted to
make on the property.
I told them that I wanted tomake $10,000 to $15,000.
(12:06):
Those were my intentions onthis transaction and so I
believe he felt like that was afair price, very similar to
listing it on the retail market,and because of that he chose to
sign the contract with us.
Now there was a little bit backand forth in regards to some of
the language in the contract,but then once we went out there
(12:29):
we did our recon.
It was exactly what the sellertold us.
It was going to look like itdidn't need a ton of rehab, just
a little bit of cleanup fromtheir mother that lived there
and then obviously the sibling.
It did need some cleaning to it, but realistically a very clean
property, and so we signed itfor $500,000.
(12:52):
And then, on the dispositionside of things, one of our end
buyers actually came to us andsaid I can bring a buyer for
$530,000 if we'll do a jointventure on this.
We were only asking $515,000.
(13:13):
Remember that's what I told theseller I want to make somewhere
between $10,000 and $15,000.
So we actually assigned it for$530,000.
And then our assignment fee onit was $15,000.
So we got our price.
The JV partner came to us andthe thing about that is I love
the communication and thetransparency there in regards to
(13:36):
not necessarily daisy chainingthe deal.
But hey, I can bring a buyer tothe table for more.
I added my fee on top.
Let's sign a JV agreement.
We did that.
He presented it to his buyerand we were able to get the deal
closed and funded.
Funny enough, literallydirectly before this live, I
(13:58):
heard Cassie on the phone withthe title company working out
some final little details inregards to one of the brother
who's buying the property,making sure he gets his wire and
gets his proceeds.
So that's literally still inthe process of just last
finishing touches, but it isclose and funded.
We've already received ourmoney on that one.
(14:19):
The next one would be the onethat is not in Texas, this was
West Memphis, arkansas.
Okay, this is another one fromproperty leads and this was
another one that was a $30nationwide exclusive lead.
So what's funny about this isif you've ever been to Memphis
(14:41):
West Memphis, arkansas is justliterally on the other side of
of the river and the state lineright the river is the state
line right there beforeTennessee, and Memphis is
obviously a large market, a goodwholesale market.
West Memphis not necessarilyknown at least in my opinion,
(15:03):
not known for being great inwholesale.
It's lower price points, but wewere able to get this one under
contract at a pretty decentprice because of the seller's
motivation.
This was a pre-foreclosuresituation, again another one
that was super time sensitive.
Once we actually spoke to theseller spoke to the seller the
(15:34):
seller only had a month beforethe foreclosure date.
So again, this is one of thosescenarios where tertiary
secondary market right outsideof a major metro, where time
sensitive and it's a little bitunknown whether or not we can
move the deal.
But we were transparent withthe seller about our intentions.
The seller owed $72,000 andonly needed $75,000.
(15:57):
So just a little bit of moneyto move on with their life.
So we contracted at $75,000.
We were able to assign this for$85,000.
So that's a $10,000 assignmentand we were able to move this
for eighty five thousand.
So it's a ten thousand dollarassignment and we were able to
move very, very quickly on this.
Looking at the notes, it lookedlike my dispositions team uh
(16:18):
placed anywhere between 35 to 40calls.
Um, looked like 35 calls on onthe first day, another 10 calls
on the second day fordispositions.
That was able to get usmultiple walkthroughs before we
were able to dispo it for ourfull asking price of $10,000.
Now what I bring up there isthe $10,000 assignment.
(16:40):
I always talk about the averageassignment fee of being $15,000
.
That does not mean that everydeal you should be aiming to
make that much money, as you cansee here the first deal in
Hondo, texas, we made $10,000.
The second one, we made $15,000.
And the third one, we made$10,000.
(17:01):
In those scenarios where we made$10,000 on Hondo, texas, and
this west memphis, arkansas,what was the seller's motivation
?
Right, the first one was needsthe proceeds.
Time is of the essence becauseof a sick child, this one
foreclosure less than a month.
(17:21):
We as the wholesaler were nottrying to be greedy and we
weren't trying to make a setnumber like oh, oh, we don't do
deals for less than $15,000.
It was, hey, we're going tomake this to where these are
good deals for our end buyersthat can move quickly.
Now, looking back at them, do Ibelieve that we could have
(17:44):
possibly made $15,000 on eachone of those deals?
Absolutely.
But I would prefer that weprotect the seller and we don't
stigmatize the deal by askingtoo much and we make it a better
deal for our end buyers bysetting a lower assignment fee
and being more realistic aboutmoving these in the timeframe in
(18:06):
which they need to be done, andso for that I'm proud of our
team on both of those dealsgetting them done in the
timeframe that was necessary forthose highly motivated sellers,
all right.
The fourth deal was Marshall,texas.
This lead came from lead Zolo.
The seller's motivation wasfinancial issues, there was a
(18:29):
death in the family and therewas multiple liens, okay, so
this checked multiple boxes inregards to motivation and this
is what the only one out of thefour that actually had
renegotiation involved.
So the original contract pricewas $65,000.
(18:50):
We sit in buyer went out thereafter we got pictures, bought
the property and actually madeus an offer of, I believe it was
like 57,000, something alongthose lines, 57, 55,000,
somewhere along those lines.
I don't have that written down.
And when we went back to theseller simultaneous to us
(19:16):
renegotiating the price andexplaining, they actually came
back and said 52,000.
And then they came back andsaid $47,000.
And the seller then agreed tothe $50,000 price reduction,
which kind of put us in a weirdspot where you guys have heard
(19:36):
me talk about this.
I really don't likerenegotiating prices unless you
know where your end buyer isgoing to be.
But in this scenario it was$57,000, then $52,000, and then
it went all the way down to 47and we got the seller to agree
to 50 000 and and then theysigned that, and so it kind of
put us in a bind where it waslike well, we did that under the
(19:59):
the pretense that we had abuyer, now we don't, and so we
had to continue doingdispositions for a little bit
longer.
We we ended up getting an endbuyer from titanium university.
He kind of joined the group,then introduced himself as like
hey, I am an end buyer inside ofthe state of Texas, and we sold
it to him for $55,000.
(20:20):
Now what's funny about thedispositions on this deal.
It actually did not take placeduring my team's efforts of
dispositions.
It actually came throughtitanium universities office
hours, which we do two to threetimes a week, where it's run by
the members me and Cassie we'renot really a part of it.
(20:40):
Danny kind of runs it, but it'sit's really about the members
just getting together andworking together.
And during the call, danny wastalking about this deal and he
and the the end buyer on thiskind of raised his hand and was
talking about it was like well,if the ARV is this and the
repairs are this, then I wouldbuy that deal at 55,000.
(21:04):
And so, sure enough, danny wentto him and said well, that that
is the ARV and these are therepairs and I'll sell it to you
for 55,000.
So it was kind of funny becausethe TU member really wasn't
necessarily actively looking tobuy the deal, but he was like
those are the numbers, that's agood deal, I'll buy it.
(21:25):
And that's what ended upleading to the deal getting
disbursed.
So kind of a very unique wayfor a deal to get disbursed.
This deal also was from a leadfrom Lead Zolo going all the way
back to 2022.
So 2022 was the initial timethat titanium investments spoke
(21:45):
to the seller in 2023, duringthe 50, 50, 50, I spoke to this
seller, sent them a contract.
They ghosted me because thedeath in the family they had to
deal with, the death in thefamily.
Then more liens got put on theproperty and because of that
they came back to me via emailsaying, would you still sell or
(22:10):
would you still be interested inbuying my property?
And so because of that, we wereable to get the deal done for a
$5,000 assignment, all right.
The last one is going to beBelton, texas, another secondary
tertiary market right.
This is down there by Killeenand Temple.
It's basically in between Wacoand Austin.
(22:32):
It's just kind of an exit offof 35.
If you've ever been inside ofthe state of texas, i-35 it runs
from dallas, fort worth, allthe way down to waco, to austin,
to san antonio.
That's the highway you have totake to get there.
Belton is an exit off of there.
So this actually came from afuture tu member who is now a tu
(22:56):
member.
So this was a joint venturedeal.
This is one of the few.
That was a GB Elderly sellerwanted it to be a private sale,
didn't want it to be out therein the public Needed to walk
away with $330,000.
We did that and then thedispositions no investor base,
(23:16):
investor lift or anything likethat went directly to a known
buyer.
One call hey, this is the deal,what do you want to do?
And because of that we wereable to get the deal done.
This is the video I talkedabout that we got the deal done
in 13 minutes.
The total assignment fee onthis was $50,000.
(23:38):
There were two JV people thatgot paid out.
The end buyer was actuallybringing the actual end buyer,
private money lender to it, sohe wanted a $10,000 fee.
The TU member that brought itbrought $15,000, and we made
$25,000 on that.
The TU member that brought itbrought $15,000 and we made
(23:59):
$25,000 on that.
That deal got a little stressfulthere at the end, right when
you're dealing with an elderlyseller that wanted a private
sale, there was a need for anextension on it because the
buyer didn't have the fund.
The private money lender neededsome more time to get the funds
and because of that it caused alot of transaction coordination
(24:24):
, communication, emails, phonecalls.
A lot of time got taken up, andI bring that up because I think
sometimes when people aregetting into wholesaling, they
have this picture of like hey,it's going to be as easy as I
have leads and I get it on acontract and then I assign it
and I'm kind of like hands off.
And a lot of times in this dealour money was actually made
(24:48):
during that TC time.
Like that's where all theeffort was and really it was
just proper communication,setting expectations, making
sure no one got upset and triedto kill the deal or anything
like that, and just reallymanaging emotions.
There was a lot of thatthroughout that deal just
(25:09):
because of the time, delays,lack of understanding what was
taking place, and so that'sreally where we kind of earned
our money right there.
But luckily that deal made itthrough.
So out of the five deals we hadtwo property leads, one speed to
lead, one lead Zolo and a JVdeal.
(25:29):
The average assignment feeacross the five deals was
$21,000.
And our average gross on eachone of those deals, after JV
splits and whatnot, was $13,500,which is pretty much on par for
what we average.
We're right around that $14,000number on average assignment
(25:54):
fee.
But when you look at how muchwe actually spent on these leads
, you're talking about $30 forthe property lead.
So that's $60.
The speed of lead I think weended up.
I think we did spend like $300because that was on a live
training right and so I went inand I bought off the marketplace
(26:16):
and then the lead Zolo was ahundred dollars back in the day
and then the JV was was zero.
So all together we spent forthese five deals um $460.
For the leads to then make whatis that?
50,000, $70,000, somewherearound there.
(26:38):
Of course, this is notaccounting for the cost of the
softwares that we use, the leadsthat don't make it to the
closing table, the dead leadsand whatnot.
It just gives you an idea ofwhat we were spending for these
individual deals.
And so today I was thinkingabout it when.
(26:58):
How did I want to kind of sharethe message here.
One, we're not relying on onelead source, right, it's
property leads.
Speed to lead, lead, zolo, jvnetwork, right, our connections.
In fact the JV deal ended upbeing the most profitable deal
out of all of them.
And then understanding theseller's motivation and their
(27:23):
timeline and then setting yourprices based off of that.
So of course we always talkabout where to end buyers buy
and determining that price point.
But we also took intoconsideration the seller's needs
in regards to the price pointsthat we were setting on these
deals.
I think that's just asimportant there.
(27:43):
And then also when it came todispositions right, not always
hanging our head, becomingdemoralized because the price
points weren't necessarily orthe initial offers weren't what
we were needing.
Continue down the path, trustthe process, talk to more end
buyers and you'll be able tomove more deals, and then also
(28:06):
be willing to work with otherpeople inside of your network.
Some of these deals we probablycould have moved ourselves if
we were willing to put in moretime, but sometimes that could
keep you from doing volume.
If you're trying to pinch everypenny out of every single deal.
I have no problem when someonecomes to me and says hey, I can
(28:27):
help you move this deal, I canmake it a profitable deal for
you, and it's somewhere aroundyour your original asking price.
In fact, one of them, the$15,000 deal we didn't even lose
any of our money, right?
He just added his fee on top,and so because of that, we were
able to get those deals done ina timely manner.
(28:48):
And then, last but certainlynot least, the communication
inside the transactioncoordination.
I cannot express to you howvitally important that is to
being successful as a wholesalermaking sure that you're staying
on top of these deals andmanaging the emotions that are
involved in this.
These are highly motivatedsellers.
(29:10):
They've got a lot going on intheir life.
I use the word extrememotivation on the Hondo Texas
deal and that happens andobviously it's what we're
seeking making sure that you'remanaging that through your deals
.
A couple of things about these deals.
First and foremost, I do wantto remind you before I get into
it, because we do have fivedeals that we're going to be
bringing down today we do dealsin all 50 states.
Four of the five are going tobe in the state of Texas, which
is kind of funny because Ialways talk about how Texas is
(00:25):
our best market.
This despite the fact that wedo marketing, we buy leads in
all 50 States.
I hands down, I feel like Texasis like the best state to
wholesale in.
Uh, still, to this day, as muchas I love other locations and
love being nationwide, it justit always ends up being the best
(00:46):
place.
We've got Kyle from Connecticut.
Audrey from Houston, texas,what's up?
Audrey Zach in Southern Cal.
We got Hawkinsville, georgia.
I'm taking all the deals.
I'm not taking all of them,just taking my fair share.
Happy Tuesday, kathina.
(01:07):
What's going on?
And then we got Mr Taylor Ford.
Got a bunch of it from Houston,a bunch of TU people.
All right, so let's get intoReno, nevada, and leave that one
out.
All right, so let's break downour first deal.
This is going to be in hondo,texas.
I will say this deal is goingto have its own separate video
(01:33):
coming out pretty soon.
Cassie's going to be recordingthis um more on the transaction
coordination of what took placehere and what we had to do to
get it across the finish line,but I wanted to share it in here
.
In regards to how I'm going toshare some of the KPIs and where
(01:54):
the leads are coming from andwhatnot, this was actually from
property leads, so this is oneof those $30 nationwide
exclusive leads, and the reasonwhy I love the $30 nationwide
leads is because it gives usopportunities for deals like
this.
Hondo Texas is a tertiarymarket to San Antonio Texas and
(02:20):
so if you were to, you know, goand buy leads.
Hondo Texas is probably notgoing to be a location that
you're going to be seeking,unless you are like a San
Antonio wholesaler.
But for me, nationwide virtualwholesaler, when I get a lead
like this, this is essentiallythe best type of lead that I'm
(02:42):
looking for.
It's great if we happen to geta San Antonio or an Austin or
Dallas Of course, those happentime and time but Hondo is the
exact kind of lead that I'mlooking for, right outside of
that major metro area, probablyan area where most wholesalers
are sleeping on it and it sneaksin for the cheapest price that
(03:07):
we could possibly get for $30 alead right and so this comes in.
This seller had extrememotivation, right Financial
issues.
Had a sick child that neededhealthcare and they wanted to
use the proceeds from this salefor the child's healthcare, and
(03:29):
so it was also super timesensitive.
And so these are one of thosesituations where, when
wholesalers come in, it's likewe're looking at it from the
perspective of of course, we'rerunning a business, we need to
be profitable on our deals, butwe also need to be making sure
that we take care of theseller's situation and we're
(03:50):
truly listening to what thatseller needs.
And so in this situation it washey, we've got to make sure
we're getting enough money tothe seller where the sale of the
property actually satisfiestheir needs, but also it gets
done in a timely enough fashion.
So in this situation here itwas a little bit nerve wracking
(04:14):
where it's hey, we're not doinga ton of deals in Hondo Texas,
it's not like we've got thego-to Hondo Texas buyer, of
course.
It's not like we've got thego-to Pondo Texas buyer.
Of course we're believing thatwe can dip into the San Antonio
market, of course, but stillthere's uncertainty.
There's uncertainty from thefact that we know the property
(04:38):
is physically distressed.
We don't know that until wewalk it.
We have our processes, but weare telling the seller this is
what we can do to you withtransparency, right.
So we got the property undercontract for $65,000 and our
asking price was 75,000.
(05:00):
Now again, remember, this wastime sensitive.
So we immediately went to theknown buyers that we knew in
that area and our initial offerthat we received on this
property during dispositions wasfor 40,000.
So significantly below what ourasking price was and even below
what we had it on our contractfor.
(05:21):
So it wasn't really a viableoption for us and I wanted to
bring that up because a lot oftimes we don't really talk about
that.
On the content, where it can bedemoralizing when you're talking
to an extremely motivatedseller, you go through the
acquisitions phase, you gothrough the recon phase and
(05:44):
during the recon phase you getthe pictures and the videos back
and you feel somewhat confidentabout the deal itself and then
that initial buyer walkthroughcomes back, kind of kicks you in
the teeth and says, hey, you'reoff by $35,000.
Now all of a sudden you kind ofstart questioning whether or
not you're going to be able tosolve this seller's problem or
(06:05):
not.
And is you're going to be ableto solve this seller's problem
or not, and is this deal goingto be able to go through?
What I will say is, through theconversation that we had with
the end buyer there, it becamemore apparent as to why their
offer was where it was, and itwas because, hey, hondo's not
really one of their main markets.
They were being conservative.
There were some things inregards to the property that
(06:28):
they were kind of accounting foron the rehab, that we weren't
necessarily accounting forourselves, and so we understood
where they were coming in.
But the conversation that we hadto have was we can't go back to
the seller for this amount ofprice reduction.
We have to go out and we justhave to continue doing our job
(06:52):
and working to dispo this at afair price for ourselves and for
the seller.
And so we did that and we endedup actually selling it for a
full ASCII price at $75,000.
So I share this to let you guysknow, especially those of you
that are newer to wholesalinglike don't get demoralized with
(07:16):
that initial offer from an endbuyer, have that heart-to-heart
conversation with them, get anunderstanding as to why that
came in.
But continue doing your job andbuild those relationships and
eventually you could find thatend buyer.
That will see what you'reseeing on the deal and because
(07:38):
of that we were able to signthis and make a $10,000
assignment and get the deal donein a timely fashion to where
the seller got taken care of.
So breaking this deal down again.
This is a $30 lead fromproperty leads that we assigned
for $10,000.
But the key points here is likeon these $30 leads from
(08:04):
Property Leads, leadzolo, speedof Leads, coupon Club, whatever
it is one of the issues thatI've heard people have is oh,
it's so rural and they'redifficult to dispo.
That's true to a certain extent, but also there's diamonds in
the rough where it's not a SanAntonio Texas.
(08:25):
It's that tertiary market, thatsecondary market right outside
of it that can really make adifference.
And, as you're going to see asI go down through this list of
closed deals, that's going to bea common theme.
We're not really doing them inthe major metro areas, we're
doing them right outside.
That's what you should befocusing and looking for inside
(08:48):
of those leads that come across.
All right, let's move on to thenext one.
You guys have heard me talkabout it, but I wanted to share
it on air, since we're breakingdown the deals that just most
recently closed.
This is Tiki Island, texas.
I posted a video of this.
I was on speedily training,teaching you guys here's how you
close deals.
Here's how you thought sellers,you guys were on there and you
(09:11):
challenged me hey, rj, insteadof talking about it, why don't
you do it?
And you know I love doing that.
So I went on there and I boughtthe lead.
Now a couple of things.
This was from speedily.
It was off of the marketplace.
This it had a c rating.
Okay, so a c lead.
Um, and I I've shared thismultiple times yuri I, I think,
(09:32):
was actually scared that thelead that I decided to showcase
was c.
The reason why I bought it wasbecause of the motivation, the
location and then also thecondition of the property.
Okay, I knew it needed somework.
I knew the location and thenalso the condition of the
property.
Okay, I knew it needed somework.
I knew the location had enoughend buyers and the motivation
was it was an inherited property, and so that's the reason why I
(09:53):
purchased it.
Now the downsides to this leadafter I purchased it was it was
higher price points and longdays on market not necessarily
what we're looking for when weget a lead, and I was actually
blown away at how long the dayson market were in Tiki Island,
(10:13):
texas.
But what I did notice was is alot of the much longer days on
market were the million plusprice point losses, and the
seller's asking price for thisproperty was $500,000.
Now he inherited this propertyand he inherited it.
He also has a brother and sothe brother was actually living
(10:36):
in the property.
So in order for them to sellthis property, they were going
to have to use the proceeds fromthis property to help him
purchase his new property, right?
So there was also a timingissue here as well, as anytime
(11:00):
it's an inherited property,there's multiple decision makers
about price points.
Now they come to that agreementof $500,000.
Now, if you see me on this call,it was complete transparency.
I can wholesale this property.
This is the benefit and thegood thing about this was the
seller, who was not living inthe property.
(11:21):
That brother was actually asub-2 student, so he's in our
world.
He kind of understood thelanguage that I was using in
regards to wholesaling andwhatnot, and so it made it a
little bit easier.
But I think he actuallyrespected the fact that we were
coming in with completetransparency about wholesaling
the property and also about thefact that, hey, we can agree to
(11:45):
$500,000 today, but obviouslyit's going to be contingent upon
the buyer feedback and also thefact that when I talked about
assigning the deal, I told themexactly how much I wanted to
make on the property.
I told them that I wanted tomake $10,000 to $15,000.
(12:06):
Those were my intentions onthis transaction and so I
believe he felt like that was afair price, very similar to
listing it on the retail market,and because of that he chose to
sign the contract with us.
Now there was a little bit backand forth in regards to some of
the language in the contract,but then once we went out there
(12:29):
we did our recon.
It was exactly what the sellertold us.
It was going to look like itdidn't need a ton of rehab, just
a little bit of cleanup fromtheir mother that lived there
and then obviously the sibling.
It did need some cleaning to it, but realistically a very clean
property, and so we signed itfor $500,000.
(12:52):
And then, on the dispositionside of things, one of our end
buyers actually came to us andsaid I can bring a buyer for
$530,000 if we'll do a jointventure on this.
We were only asking $515,000.
(13:13):
Remember that's what I told theseller I want to make somewhere
between $10,000 and $15,000.
So we actually assigned it for$530,000.
And then our assignment fee onit was $15,000.
So we got our price.
The JV partner came to us andthe thing about that is I love
the communication and thetransparency there in regards to
(13:36):
not necessarily daisy chainingthe deal.
But hey, I can bring a buyer tothe table for more.
I added my fee on top.
Let's sign a JV agreement.
We did that.
He presented it to his buyerand we were able to get the deal
closed and funded.
Funny enough, literallydirectly before this live, I
(13:58):
heard Cassie on the phone withthe title company working out
some final little details inregards to one of the brother
who's buying the property,making sure he gets his wire and
gets his proceeds.
So that's literally still inthe process of just last
finishing touches, but it isclose and funded.
We've already received ourmoney on that one.
(14:19):
The next one would be the onethat is not in Texas, this was
West Memphis, arkansas.
Okay, this is another one fromproperty leads and this was
another one that was a $30nationwide exclusive lead.
So what's funny about this isif you've ever been to Memphis
(14:41):
West Memphis, arkansas is justliterally on the other side of
of the river and the state lineright the river is the state
line right there beforeTennessee, and Memphis is
obviously a large market, a goodwholesale market.
West Memphis not necessarilyknown at least in my opinion,
(15:03):
not known for being great inwholesale.
It's lower price points, but wewere able to get this one under
contract at a pretty decentprice because of the seller's
motivation.
This was a pre-foreclosuresituation, again another one
that was super time sensitive.
Once we actually spoke to theseller spoke to the seller the
(15:34):
seller only had a month beforethe foreclosure date.
So again, this is one of thosescenarios where tertiary
secondary market right outsideof a major metro, where time
sensitive and it's a little bitunknown whether or not we can
move the deal.
But we were transparent withthe seller about our intentions.
The seller owed $72,000 andonly needed $75,000.
(15:57):
So just a little bit of moneyto move on with their life.
So we contracted at $75,000.
We were able to assign this for$85,000.
So that's a $10,000 assignmentand we were able to move this
for eighty five thousand.
So it's a ten thousand dollarassignment and we were able to
move very, very quickly on this.
Looking at the notes, it lookedlike my dispositions team uh
(16:18):
placed anywhere between 35 to 40calls.
Um, looked like 35 calls on onthe first day, another 10 calls
on the second day fordispositions.
That was able to get usmultiple walkthroughs before we
were able to dispo it for ourfull asking price of $10,000.
Now what I bring up there isthe $10,000 assignment.
(16:40):
I always talk about the averageassignment fee of being $15,000
.
That does not mean that everydeal you should be aiming to
make that much money, as you cansee here the first deal in
Hondo, texas, we made $10,000.
The second one, we made $15,000.
And the third one, we made$10,000.
(17:01):
In those scenarios where we made$10,000 on Hondo, texas, and
this west memphis, arkansas,what was the seller's motivation
?
Right, the first one was needsthe proceeds.
Time is of the essence becauseof a sick child, this one
foreclosure less than a month.
(17:21):
We as the wholesaler were nottrying to be greedy and we
weren't trying to make a setnumber like oh, oh, we don't do
deals for less than $15,000.
It was, hey, we're going tomake this to where these are
good deals for our end buyersthat can move quickly.
Now, looking back at them, do Ibelieve that we could have
(17:44):
possibly made $15,000 on eachone of those deals?
Absolutely.
But I would prefer that weprotect the seller and we don't
stigmatize the deal by askingtoo much and we make it a better
deal for our end buyers bysetting a lower assignment fee
and being more realistic aboutmoving these in the timeframe in
(18:06):
which they need to be done, andso for that I'm proud of our
team on both of those dealsgetting them done in the
timeframe that was necessary forthose highly motivated sellers,
all right.
The fourth deal was Marshall,texas.
This lead came from lead Zolo.
The seller's motivation wasfinancial issues, there was a
(18:29):
death in the family and therewas multiple liens, okay, so
this checked multiple boxes inregards to motivation and this
is what the only one out of thefour that actually had
renegotiation involved.
So the original contract pricewas $65,000.
(18:50):
We sit in buyer went out thereafter we got pictures, bought
the property and actually madeus an offer of, I believe it was
like 57,000, something alongthose lines, 57, 55,000,
somewhere along those lines.
I don't have that written down.
And when we went back to theseller simultaneous to us
(19:16):
renegotiating the price andexplaining, they actually came
back and said 52,000.
And then they came back andsaid $47,000.
And the seller then agreed tothe $50,000 price reduction,
which kind of put us in a weirdspot where you guys have heard
(19:36):
me talk about this.
I really don't likerenegotiating prices unless you
know where your end buyer isgoing to be.
But in this scenario it was$57,000, then $52,000, and then
it went all the way down to 47and we got the seller to agree
to 50 000 and and then theysigned that, and so it kind of
put us in a bind where it waslike well, we did that under the
(19:59):
the pretense that we had abuyer, now we don't, and so we
had to continue doingdispositions for a little bit
longer.
We we ended up getting an endbuyer from titanium university.
He kind of joined the group,then introduced himself as like
hey, I am an end buyer inside ofthe state of Texas, and we sold
it to him for $55,000.
(20:20):
Now what's funny about thedispositions on this deal.
It actually did not take placeduring my team's efforts of
dispositions.
It actually came throughtitanium universities office
hours, which we do two to threetimes a week, where it's run by
the members me and Cassie we'renot really a part of it.
(20:40):
Danny kind of runs it, but it'sit's really about the members
just getting together andworking together.
And during the call, danny wastalking about this deal and he
and the the end buyer on thiskind of raised his hand and was
talking about it was like well,if the ARV is this and the
repairs are this, then I wouldbuy that deal at 55,000.
(21:04):
And so, sure enough, danny wentto him and said well, that that
is the ARV and these are therepairs and I'll sell it to you
for 55,000.
So it was kind of funny becausethe TU member really wasn't
necessarily actively looking tobuy the deal, but he was like
those are the numbers, that's agood deal, I'll buy it.
(21:25):
And that's what ended upleading to the deal getting
disbursed.
So kind of a very unique wayfor a deal to get disbursed.
This deal also was from a leadfrom Lead Zolo going all the way
back to 2022.
So 2022 was the initial timethat titanium investments spoke
(21:45):
to the seller in 2023, duringthe 50, 50, 50, I spoke to this
seller, sent them a contract.
They ghosted me because thedeath in the family they had to
deal with, the death in thefamily.
Then more liens got put on theproperty and because of that
they came back to me via emailsaying, would you still sell or
(22:10):
would you still be interested inbuying my property?
And so because of that, we wereable to get the deal done for a
$5,000 assignment, all right.
The last one is going to beBelton, texas, another secondary
tertiary market right.
This is down there by Killeenand Temple.
It's basically in between Wacoand Austin.
(22:32):
It's just kind of an exit offof 35.
If you've ever been inside ofthe state of texas, i-35 it runs
from dallas, fort worth, allthe way down to waco, to austin,
to san antonio.
That's the highway you have totake to get there.
Belton is an exit off of there.
So this actually came from afuture tu member who is now a tu
(22:56):
member.
So this was a joint venturedeal.
This is one of the few.
That was a GB Elderly sellerwanted it to be a private sale,
didn't want it to be out therein the public Needed to walk
away with $330,000.
We did that and then thedispositions no investor base,
(23:16):
investor lift or anything likethat went directly to a known
buyer.
One call hey, this is the deal,what do you want to do?
And because of that we wereable to get the deal done.
This is the video I talkedabout that we got the deal done
in 13 minutes.
The total assignment fee onthis was $50,000.
(23:38):
There were two JV people thatgot paid out.
The end buyer was actuallybringing the actual end buyer,
private money lender to it, sohe wanted a $10,000 fee.
The TU member that brought itbrought $15,000, and we made
$25,000 on that.
The TU member that brought itbrought $15,000 and we made
(23:59):
$25,000 on that.
That deal got a little stressfulthere at the end, right when
you're dealing with an elderlyseller that wanted a private
sale, there was a need for anextension on it because the
buyer didn't have the fund.
The private money lender neededsome more time to get the funds
and because of that it caused alot of transaction coordination
(24:24):
, communication, emails, phonecalls.
A lot of time got taken up, andI bring that up because I think
sometimes when people aregetting into wholesaling, they
have this picture of like hey,it's going to be as easy as I
have leads and I get it on acontract and then I assign it
and I'm kind of like hands off.
And a lot of times in this dealour money was actually made
(24:48):
during that TC time.
Like that's where all theeffort was and really it was
just proper communication,setting expectations, making
sure no one got upset and triedto kill the deal or anything
like that, and just reallymanaging emotions.
There was a lot of thatthroughout that deal just
(25:09):
because of the time, delays,lack of understanding what was
taking place, and so that'sreally where we kind of earned
our money right there.
But luckily that deal made itthrough.
So out of the five deals we hadtwo property leads, one speed to
lead, one lead Zolo and a JVdeal.
(25:29):
The average assignment feeacross the five deals was
$21,000.
And our average gross on eachone of those deals, after JV
splits and whatnot, was $13,500,which is pretty much on par for
what we average.
We're right around that $14,000number on average assignment
(25:54):
fee.
But when you look at how muchwe actually spent on these leads
, you're talking about $30 forthe property lead.
So that's $60.
The speed of lead I think weended up.
I think we did spend like $300because that was on a live
training right and so I went inand I bought off the marketplace
(26:16):
and then the lead Zolo was ahundred dollars back in the day
and then the JV was was zero.
So all together we spent forthese five deals um $460.
For the leads to then make whatis that?
50,000, $70,000, somewherearound there.
(26:38):
Of course, this is notaccounting for the cost of the
softwares that we use, the leadsthat don't make it to the
closing table, the dead leadsand whatnot.
It just gives you an idea ofwhat we were spending for these
individual deals.
And so today I was thinkingabout it when.
(26:58):
How did I want to kind of sharethe message here.
One, we're not relying on onelead source, right, it's
property leads.
Speed to lead, lead, zolo, jvnetwork, right, our connections.
In fact the JV deal ended upbeing the most profitable deal
out of all of them.
And then understanding theseller's motivation and their
(27:23):
timeline and then setting yourprices based off of that.
So of course we always talkabout where to end buyers buy
and determining that price point.
But we also took intoconsideration the seller's needs
in regards to the price pointsthat we were setting on these
deals.
I think that's just asimportant there.
(27:43):
And then also when it came todispositions right, not always
hanging our head, becomingdemoralized because the price
points weren't necessarily orthe initial offers weren't what
we were needing.
Continue down the path, trustthe process, talk to more end
buyers and you'll be able tomove more deals, and then also
(28:06):
be willing to work with otherpeople inside of your network.
Some of these deals we probablycould have moved ourselves if
we were willing to put in moretime, but sometimes that could
keep you from doing volume.
If you're trying to pinch everypenny out of every single deal.
I have no problem when someonecomes to me and says hey, I can
(28:27):
help you move this deal, I canmake it a profitable deal for
you, and it's somewhere aroundyour your original asking price.
In fact, one of them, the$15,000 deal we didn't even lose
any of our money, right?
He just added his fee on top,and so because of that, we were
able to get those deals done ina timely manner.
(28:48):
And then, last but certainlynot least, the communication
inside the transactioncoordination.
I cannot express to you howvitally important that is to
being successful as a wholesalermaking sure that you're staying
on top of these deals andmanaging the emotions that are
involved in this.
These are highly motivatedsellers.
(29:10):
They've got a lot going on intheir life.
I use the word extrememotivation on the Hondo Texas
deal and that happens andobviously it's what we're
seeking making sure that you'remanaging that through your deals
.
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