August 6, 2025 • 23 mins
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
So the other day during the titanium university
implementation call uh,relatively newer member, uh,
he's been in the group for acouple of months now.
He he raised his hand, it washis turn to go and he was
talking about a highly motivatedseller that he he got a lead
(00:21):
through a PPL service called theseller.
That he got a lead through aPPL service called the seller,
and the seller was already undercontract with another real
estate investor who actuallyended up being a wholesaler, did
not represent themselves as awholesaler, and this seller was
highly concerned about what wastaking place because she had not
(00:47):
heard from the wholesaler inover two weeks, and so she was
in a financial distresssituation and she's now under
contract with somebody.
She can't get them to respondand she doesn't know what's
going on inside of her realestate transaction.
Now, taking ourselves out ofthe place of being a wholesaler
(01:12):
and putting ourselves into theseller's shoes and understanding
their point of view, imaginethe stress that that brings on
your life, where you are in afinancial distress situation
pre-foreclosure tax delinquency,whatever it is and you believe
that you have found yoursolution by signing a contract
(01:34):
with someone that hasrepresented themselves as an end
buyer, and now you can'tcommunicate with them.
Now putting ourselves back intothe wholesaler seat.
Imagine how frustrated we getwhen we sign a contract with a
seller and we get nocommunication.
We refer to it as they'reghosting us.
(01:54):
We can't get them to answer ourphone calls, we don't know
what's going on.
It becomes extremelyfrustrating.
We start thinking about worstcase scenarios.
Right, someone else must havecome along and offered them more
money.
They might not want to moveforward with me.
Should I file a memorandum?
And we start somewhat panickinginternally.
(02:18):
The emotions start running wild.
Now we're running a business.
We should have multipletransactions going on where our
livelihood is not contingentupon that one deal making it to
the closing table, but in amotivated seller situation, that
one deal could make thedifference in their financial
(02:42):
future, especially in thiscircumstance where this elderly
seller was in a financialdistress situation.
She's not receiving anycommunication from this other
wholesaler.
So the TU member started doingresearch.
He found that the property waslisted on Facebook Marketplace.
He found that the property waslisted on InvestorLift, along
(03:06):
with 20-plus other propertiesthat were listed on InvestorLift
and Facebook Marketplace.
He tried calling thiswholesaler.
Zero communication back, noreturn of phone calls, no text
messages.
There was no indication fromthe TU member that, hey, I'm
(03:26):
calling to have an uncomfortableconversation.
This wholesaler, quite frankly,didn't even know if the TU
member reaching out was anin-buyer trying to someone to
buy this property.
Now, the other thing that stoodout was the purchase price on
this property did not and wouldnot work for an end buyer, and
(03:47):
this is how motivated thisseller actually was.
This seller was actuallywilling to sell the property for
$40,000 less.
Well, it was either $35,000 or$40,000 less than what this
wholesaler had it under contractfor.
That's how much this seller waslike.
(04:08):
Listen, if you can resolve thesituation with this other person
that I no longer want to dobusiness with, I am willing to
sell my property for this muchless than what I'm under
contract with them.
Now, that is screamingmotivation.
Now, as the TU member wastelling me the entire story,
(04:31):
essentially their actualquestion was what should I do
and what can I do to help thisseller, which?
That is the culture and themindset that we have at Titanium
University.
Right, sellers first solvetheir problem, then provide a
great deal to our end buyers andtake care of them.
(04:52):
Now we were able to.
You know, obviously we alreadyhad the Facebook marketplace.
The investor left.
I was actually able to get thiswholesaler to call me back
during the implementation call,so everybody inside of TU
actually heard this conversationgo down.
(05:12):
I answer the phone.
Guy says hey, I was justreturning your phone call.
I'm like hey, you have aproperty under contract here in
Texas.
The seller had reached out tous, filled out a form on our
website, we got the lead, wetalked to her.
She's extremely nervous andscared because of the lack of
(05:36):
communication and I was reallyjust calling to see if there was
a way that we could figure outhow we could take care of this
seller.
Now I had full intentions ofmaking an offer to this
wholesaler which I thought,quite frankly, it was not by the
permission of the TU member,but I knew that he would be okay
(05:57):
with it.
Going back to, this is theculture that we have at TU I was
going to offer this wholesaler$5,000 to just kind of walk away
from the deal after anexplanation.
But, as I'm explaining what'sgoing on and the fact that the
conversation with this sellerwhich you know, who was elderly,
(06:18):
financially distressed, if thiswholesaler did a halfway decent
job during acquisitions hewould understand her situation
and the fact that she's scaredand nervous.
I mean, majority of peoplewould kind of be like, oh, wow,
that's horrible.
Well, you know, let let me talkto the seller, let me take care
(06:40):
of this situation.
But that was not his responsewhatsoever.
In fact, it was the opposite.
It was it was listen, I havethe property under contract, I
control the contract.
If you have a buyer, we canwork together.
Otherwise, we don't haveanything to talk about.
(07:03):
So I was kind of like all right,well, let's just set the
emotions aside.
Okay, we have a nervous sellerand again he's like listen, I
don't have any reason to talk toyou, which technically he is
correct.
He had no obligation tocontinue the conversation with
me, but I'm not coming from aplace of I'm trying to steal
(07:25):
your deal or I'm not namecalling or anything like that.
And he got very aggressive andI'm like listen, man, the seller
is upset, like you need to backdown on the attitude right now.
And I'm like listen, man, theseller is upset, you need to
back down on the attitude rightnow and we need to take care of
this seller.
I see that you have quite a fewproperties listed on
InvestorLift and on FacebookMarketplace.
(07:45):
You've had this for two weeks.
It's not selling, and thereason why it's not selling is
because the numbers don't work.
The purchase price is too highfor an end buyer, it doesn't
underwrite correctly, theseller's willing to sell the
property for less, but shedoesn't want to work with you
anymore due to the lack ofcommunication.
(08:06):
And so again, this wholesaler isfaced with the reality of the
situation and, instead ofembracing what I'm saying and
putting the seller first, hedecides he's going to double
down on himself and thecontrolling interest that a
signed purchase agreement givesus as a wholesaler.
(08:29):
And this is the issue that werun into when we focus on the
rights that we have today as awholesaler.
Those rights will inevitably betaken away from us in the
future with regulations becauseof these types of actions.
His response was if you don'thave a buyer, we have nothing to
(08:51):
talk about and I'll go file amemorandum on the property right
now.
Now, again, I don't understandthe thought process or the
reasoning as to why he wouldwant to one, be aggressive with
me when I'm trying to reach outand offer a solution.
Two, why would he immediatelywant to jump to leveraging a
(09:12):
tool like a memorandum ofcontract, which is there to
protect buyers when somethinggoes wrong in the transaction,
not when you do a poor job of awholesaler and you can't sell a
property to then make sure youstill get a payday by filing a
memorandum.
This is the issue and this isthe reason why, as an industry,
(09:34):
we are being attacked.
This is why if you ask myself,jerry Norton, any other industry
leader we believe in the future, almost each and every state
will have some form ofregulation against wholesaling.
Because of this attitude, thisarrogance and this lack of
(09:54):
keeping in front of us what themost important thing is, which
is taking care of sellers andmaking sure that deals make it
to the closing table for theright reasons, not making sure
that you get paid because yousigned a contract for too high
and then filed a memorandum ofcontract to protect yourself.
(10:14):
That is what is going to costus this beautiful thing that we
have right now.
So as we continued theconversation, it got pretty
heated and I'm not going to lie.
Some verbal jabs were thrown ateach other.
Quite frankly, I was justtrying to get the man to calm
(10:36):
down so we could at least have aconversation.
The adrenaline was pumping andit led to, as I was trying to
get him to allow me to speak, hehung up on me.
He refused to answer any phonecalls moving forward.
And now it's a highlyuncomfortable situation for the
TU member that's involved inthis transaction, because the
(10:59):
seller is like listen, I needsomeone to help me and I need
someone to take care of me.
Like there's still been zerocommunication.
This has been days, right, Imean almost a week at this point
, actually, it might be close toa week Zero communication still
from the wholesaler.
So the seller, at this point,is facing three weeks of zero
(11:25):
communication.
Okay, I told the TU member Igive you full permission at this
point.
Sign a contract with a seller,let's try to get this taken care
of.
I doubt title's been opened, Idoubt the memorandum's been
filed and I do not believe thatthis wholesaler is going to take
care of this seller.
(11:46):
And our obligation is to doeach and everything that we can
possibly do to take care of thisseller, otherwise she literally
stands to lose her property.
This is the issue that we arefacing and why I wanted to talk
about the ethics of wholesalingtoday, because this is one
(12:08):
example, but it's happeningacross our country.
It's happening inside ofcommunities where it's literally
taught that this is how you'resupposed to do business as a
wholesaler.
It's why we're being attackedas an industry.
(12:30):
Today, another TU member wastalking about a property that he
has on a contract.
He already has the propertyassigned.
He already has non-refundableEMD.
We already have clear to close.
But the issue is the seller isnow ghosting.
Now we don't know the reasonwhy the seller is ghosting.
Seller could be ghostingbecause something happened in
their life.
(12:50):
Maybe it was a health emergency, a disaster happened, we don't
know.
Could also be that the selleris ghosting because he has
decided to go with someone else,sell it for a higher amount,
sign another contract and hopingthat this will never come back
on them.
(13:10):
This would be an appropriatetime to leverage the tool of
filing a memorandum to protectyourself as a wholesaler.
We are a for-profitorganization so it is our right
and our responsibility toprotect ourselves.
But in the scenario of thisother wholesaler that made a
decision to not communicate withthe homeowner for three weeks,
(13:34):
have the property improperlyunderwritten?
Where it is not a wholesaletransaction, it does not make
sense for an end buyer and isreceiving no offers, does not
have the deal signed, does nothave non-refundable earnest
money deposited, filing amemorandum because I placed a
simple phone call saying hey man, can we figure out how we could
(13:55):
help this homeowner?
That, to me, is a misuse of thetool For all the people that
file a memorandum immediatelyafter getting each property
under contract again.
If you are not releasing thosememorandums, it's an improper
use of the tool.
It's why states like Texas noware basically eliminating
(14:17):
memorandums where they're goingto be useless Because they've
been misused and abused bymainly the real estate investing
industry, and a lot of thatfalls on the shoulders of
wholesalers.
Lot of that falls on theshoulders of wholesalers.
We have to do better as anindustry and have better ethics
and better processes inside ofour businesses.
(14:38):
This starts with transparencyand authenticity.
If you can actually just call aseller and tell the seller the
truth, then it makes a massivedifference.
This is how you don't end upwith sellers wanting to back out
of contracts because you toldthem the truth up front.
The fact that we have peoplegoing out and doing novations on
(15:01):
properties without telling themthat they're going to do a
novation, that's a problem.
The fact that we have peoplethat are following memorandums
on properties that arewholesaling when they don't have
end buyers and they'reimproperly using the tool.
These are issues.
This is also going back to thereason why I am adamant against
(15:23):
the fake finance department andthe fake underwriters.
It's all just a barrier toentry to you lying and abusing
the power that we have tomanipulating sellers.
If your whole business is basedon a lie and a fake foundation,
(15:44):
then it's going to spreadthroughout everything that you
do.
There's a consistent themeinside of Titanium University
where we don't believe in lying.
We don't believe in fakefinance departments, fake
underwriters.
We don't believe inmanipulating sellers with
memorandums.
We don't do those types ofthings.
(16:05):
Is everybody perfect?
No, the community has grown toa large amount.
I'm sure there's someone insideof TU doing things that I don't
agree with, but for the vastmajority, that is the culture
that we have.
It's the culture that I want tospread throughout the
wholesaling industry.
But in order to do that, wehave to start understanding what
(16:26):
our role is inside of theindustry itself and who we serve
and how we help them.
This is why, when I talk aboutusing the closers formula, it
all starts with discovering whatthe seller's true motivation is
uncovering the layers of themotivation so you can truly be a
solution for that seller'sproblem.
(16:48):
And then it moves on to the webformula understanding where in
buyers buy and truly developinga skillset that you know what
the actual ARV is, where you'reconservative on that number,
understanding how to account forthe rehab numbers, being
aggressive on that andidentifying where your in buyers
(17:09):
will buy that deal andproviding them with great deals.
These are the pillars of whatmakes a great wholesaler and
what inevitably turns out to bea smooth transaction with
sellers.
If it's built on manipulationand lies, would you get results?
(17:29):
I don't deny that.
Will you get results?
I don't deny that.
I don't deny that you lying inand skewing the mindset of a
seller can work.
We see it and I've seen it inthe past decade throughout the
industry.
I love seeing the comments thatsay I've been using the fake
finance department for years andit works.
(17:50):
I'm not denying that.
What I'm denying is the factthat it's not what you should be
doing and the fact that it'sbeing leveraged against us and
our rights that we have rightnow, that are being abused by
ourselves, are inevitably goingto be taken away from us through
the regulations.
Look at states like Oregon.
(18:12):
Now we're forcing wholesalersto do background checks, get
fingerprints, be a registeredwholesaler in the state of
Oregon.
Why do you think that is?
It's so they can come after youif you abuse the rules and the
regulations that they bring downon wholesalers.
It's not just because they wantto know your background.
(18:34):
It's not because they just wantto have your fingerprints.
It's because they want to holdyou to a higher standard, just
like they do real estate agents.
This is the facts that we'restaring at now as an industry,
and we have brought this uponourselves.
When we continue to do theseactions and manipulate sellers
(18:56):
and force them into situationsthat they should never be in, we
are the real estateprofessionals.
When are we going to startacting like it?
Just because we know how to usethe tools doesn't mean that we
have the right to abuse them anduse them at our will.
That is when things get takenaway from us, and that's exactly
(19:19):
what's happening today.
Now, the other thing I want totalk about is on the buyer side,
when we go to dispositions.
See, this is a whole differenttype of having ethics as a
wholesaler.
There's times where you have adeal and you are dealing with
(19:39):
someone that might not be asexperienced as you, that's
looking to purchase the property.
If you are manipulating the ARVand saying that the property
could sell more to manufacture adeal, saying that the rehab is
less, maybe it's a virtual buyer.
Maybe you're even getting acontractor to go out there and
write up a bid for less than itactually needs to be so you can
(20:01):
move your deal.
These are all things that Ihave seen rampant throughout our
industry.
Manipulating buyers happensjust as much as manipulating
sellers.
That's why I also have neverbelieved in bidding wars.
When it comes to dispositions,set your price first come, first
serve.
That serves your buyer base.
(20:22):
The people that you want to takecare of on the disposition side
are those end buyers, so theycan buy multiple upon multiple
properties from you.
If you are always trying toforce them into paying you more
so you can capitalize on thatone deal, you're short-sighted
and it's eventually going tocatch up to you and cost you in
(20:43):
the end.
Are end buyers replaceable?
Sure, but do you always want tobe seeking and searching for
the next end buyer for yourwholesale transaction?
No, that's a very miserable andnot sustainable wholesale model
.
Realistically, you shouldalready know who you want to
send your deal to.
(21:03):
During the acquisitions phaseyou should understand this if
you're using the web formula,because it's literally where the
end buyers buy you should knowexactly where that deal is and
what they're going to purchaseit for, because you have the
experience of working with themand knowing exactly what they're
looking for.
(21:25):
The next thing is titlecompanies.
This is extremely importantthat we make sure that when
we're dealing with our titlecompanies real estate agents,
vendors inside of this businessthat we are taking care of them
and not asking them to do thingsthat, realistically, they
shouldn't be doing.
For example, when a titlecompany needs to clear title, a
(21:48):
lot of times some titlecompanies will help you out,
some won't.
They are taking on liability toclear title.
A lot of times, some titlecompanies will help you out,
some won't.
They are taking on liability toclear title and make sure that
this deal gets closed.
They are facilitating thattransaction.
We need to be involved in thatprocess.
Do not blame things on thetitle company.
Do not sit there and allow yourtransaction to be held up by
(22:11):
either the closing attorney orthe title company.
Blame them on that.
Again, these are things that Ihave seen over the course of
time where, as wholesalers, welack the knowledge and
understanding of what we shouldbe doing and how we should be
participating inside thesetransactions.
(22:31):
It's why, at this point, foralmost 600 straight days, I've
been able to come up withcontent on this YouTube channel
Now over 3,000 videos.
There's always things that weneed to be working on and
growing to get better.
Ultimately, the ethics insideof our industry need to improve.
Ultimately, the ethics insideof our industry need to improve.
(22:53):
This starts with how we doacquisitions, how we talk to
sellers.
What are we actually seeking?
Are we seeking the best price?
Are we seeking to gouge themand get them under contract or
just get the property undercontract?
Are we actually seeking whattheir motivation is and how we
can help them?
And then, on the flip side, arewe bringing great deals to our
(23:17):
end buyers and showing them thetrue numbers, conservative
numbers?
Let's be real.
When was the last time an endbuyer reached out to you and
said man, when you sold me thisdeal, I thought I was going to
make $40,000 profit, buthonestly, you were conservative
on your numbers.
I made $50,000 profit.
It's probably not happeningvery often.
If it is, then you're doing theright thing during dispositions
(23:40):
.
And then when it comes to theunbiased third parties the
realtors, the title companies,the lenders don't abuse them,
because they're a part of thetransaction.
Help them, show them the way.
It's your responsibility.
So the other day during the titanium university
implementation call uh,relatively newer member, uh,
he's been in the group for acouple of months now.
He he raised his hand, it washis turn to go and he was
talking about a highly motivatedseller that he he got a lead
(00:21):
through a PPL service called theseller.
That he got a lead through aPPL service called the seller,
and the seller was already undercontract with another real
estate investor who actuallyended up being a wholesaler, did
not represent themselves as awholesaler, and this seller was
highly concerned about what wastaking place because she had not
(00:47):
heard from the wholesaler inover two weeks, and so she was
in a financial distresssituation and she's now under
contract with somebody.
She can't get them to respondand she doesn't know what's
going on inside of her realestate transaction.
Now, taking ourselves out ofthe place of being a wholesaler
(01:12):
and putting ourselves into theseller's shoes and understanding
their point of view, imaginethe stress that that brings on
your life, where you are in afinancial distress situation
pre-foreclosure tax delinquency,whatever it is and you believe
that you have found yoursolution by signing a contract
(01:34):
with someone that hasrepresented themselves as an end
buyer, and now you can'tcommunicate with them.
Now putting ourselves back intothe wholesaler seat.
Imagine how frustrated we getwhen we sign a contract with a
seller and we get nocommunication.
We refer to it as they'reghosting us.
(01:54):
We can't get them to answer ourphone calls, we don't know
what's going on.
It becomes extremelyfrustrating.
We start thinking about worstcase scenarios.
Right, someone else must havecome along and offered them more
money.
They might not want to moveforward with me.
Should I file a memorandum?
And we start somewhat panickinginternally.
(02:18):
The emotions start running wild.
Now we're running a business.
We should have multipletransactions going on where our
livelihood is not contingentupon that one deal making it to
the closing table, but in amotivated seller situation, that
one deal could make thedifference in their financial
(02:42):
future, especially in thiscircumstance where this elderly
seller was in a financialdistress situation.
She's not receiving anycommunication from this other
wholesaler.
So the TU member started doingresearch.
He found that the property waslisted on Facebook Marketplace.
He found that the property waslisted on InvestorLift, along
(03:06):
with 20-plus other propertiesthat were listed on InvestorLift
and Facebook Marketplace.
He tried calling thiswholesaler.
Zero communication back, noreturn of phone calls, no text
messages.
There was no indication fromthe TU member that, hey, I'm
(03:26):
calling to have an uncomfortableconversation.
This wholesaler, quite frankly,didn't even know if the TU
member reaching out was anin-buyer trying to someone to
buy this property.
Now, the other thing that stoodout was the purchase price on
this property did not and wouldnot work for an end buyer, and
(03:47):
this is how motivated thisseller actually was.
This seller was actuallywilling to sell the property for
$40,000 less.
Well, it was either $35,000 or$40,000 less than what this
wholesaler had it under contractfor.
That's how much this seller waslike.
(04:08):
Listen, if you can resolve thesituation with this other person
that I no longer want to dobusiness with, I am willing to
sell my property for this muchless than what I'm under
contract with them.
Now, that is screamingmotivation.
Now, as the TU member wastelling me the entire story,
(04:31):
essentially their actualquestion was what should I do
and what can I do to help thisseller, which?
That is the culture and themindset that we have at Titanium
University.
Right, sellers first solvetheir problem, then provide a
great deal to our end buyers andtake care of them.
(04:52):
Now we were able to.
You know, obviously we alreadyhad the Facebook marketplace.
The investor left.
I was actually able to get thiswholesaler to call me back
during the implementation call,so everybody inside of TU
actually heard this conversationgo down.
(05:12):
I answer the phone.
Guy says hey, I was justreturning your phone call.
I'm like hey, you have aproperty under contract here in
Texas.
The seller had reached out tous, filled out a form on our
website, we got the lead, wetalked to her.
She's extremely nervous andscared because of the lack of
(05:36):
communication and I was reallyjust calling to see if there was
a way that we could figure outhow we could take care of this
seller.
Now I had full intentions ofmaking an offer to this
wholesaler which I thought,quite frankly, it was not by the
permission of the TU member,but I knew that he would be okay
(05:57):
with it.
Going back to, this is theculture that we have at TU I was
going to offer this wholesaler$5,000 to just kind of walk away
from the deal after anexplanation.
But, as I'm explaining what'sgoing on and the fact that the
conversation with this sellerwhich you know, who was elderly,
(06:18):
financially distressed, if thiswholesaler did a halfway decent
job during acquisitions hewould understand her situation
and the fact that she's scaredand nervous.
I mean, majority of peoplewould kind of be like, oh, wow,
that's horrible.
Well, you know, let let me talkto the seller, let me take care
(06:40):
of this situation.
But that was not his responsewhatsoever.
In fact, it was the opposite.
It was it was listen, I havethe property under contract, I
control the contract.
If you have a buyer, we canwork together.
Otherwise, we don't haveanything to talk about.
(07:03):
So I was kind of like all right,well, let's just set the
emotions aside.
Okay, we have a nervous sellerand again he's like listen, I
don't have any reason to talk toyou, which technically he is
correct.
He had no obligation tocontinue the conversation with
me, but I'm not coming from aplace of I'm trying to steal
(07:25):
your deal or I'm not namecalling or anything like that.
And he got very aggressive andI'm like listen, man, the seller
is upset, like you need to backdown on the attitude right now.
And I'm like listen, man, theseller is upset, you need to
back down on the attitude rightnow and we need to take care of
this seller.
I see that you have quite a fewproperties listed on
InvestorLift and on FacebookMarketplace.
(07:45):
You've had this for two weeks.
It's not selling, and thereason why it's not selling is
because the numbers don't work.
The purchase price is too highfor an end buyer, it doesn't
underwrite correctly, theseller's willing to sell the
property for less, but shedoesn't want to work with you
anymore due to the lack ofcommunication.
(08:06):
And so again, this wholesaler isfaced with the reality of the
situation and, instead ofembracing what I'm saying and
putting the seller first, hedecides he's going to double
down on himself and thecontrolling interest that a
signed purchase agreement givesus as a wholesaler.
(08:29):
And this is the issue that werun into when we focus on the
rights that we have today as awholesaler.
Those rights will inevitably betaken away from us in the
future with regulations becauseof these types of actions.
His response was if you don'thave a buyer, we have nothing to
(08:51):
talk about and I'll go file amemorandum on the property right
now.
Now, again, I don't understandthe thought process or the
reasoning as to why he wouldwant to one, be aggressive with
me when I'm trying to reach outand offer a solution.
Two, why would he immediatelywant to jump to leveraging a
(09:12):
tool like a memorandum ofcontract, which is there to
protect buyers when somethinggoes wrong in the transaction,
not when you do a poor job of awholesaler and you can't sell a
property to then make sure youstill get a payday by filing a
memorandum.
This is the issue and this isthe reason why, as an industry,
(09:34):
we are being attacked.
This is why if you ask myself,jerry Norton, any other industry
leader we believe in the future, almost each and every state
will have some form ofregulation against wholesaling.
Because of this attitude, thisarrogance and this lack of
(09:54):
keeping in front of us what themost important thing is, which
is taking care of sellers andmaking sure that deals make it
to the closing table for theright reasons, not making sure
that you get paid because yousigned a contract for too high
and then filed a memorandum ofcontract to protect yourself.
(10:14):
That is what is going to costus this beautiful thing that we
have right now.
So as we continued theconversation, it got pretty
heated and I'm not going to lie.
Some verbal jabs were thrown ateach other.
Quite frankly, I was justtrying to get the man to calm
(10:36):
down so we could at least have aconversation.
The adrenaline was pumping andit led to, as I was trying to
get him to allow me to speak, hehung up on me.
He refused to answer any phonecalls moving forward.
And now it's a highlyuncomfortable situation for the
TU member that's involved inthis transaction, because the
(10:59):
seller is like listen, I needsomeone to help me and I need
someone to take care of me.
Like there's still been zerocommunication.
This has been days, right, Imean almost a week at this point
, actually, it might be close toa week Zero communication still
from the wholesaler.
So the seller, at this point,is facing three weeks of zero
(11:25):
communication.
Okay, I told the TU member Igive you full permission at this
point.
Sign a contract with a seller,let's try to get this taken care
of.
I doubt title's been opened, Idoubt the memorandum's been
filed and I do not believe thatthis wholesaler is going to take
care of this seller.
(11:46):
And our obligation is to doeach and everything that we can
possibly do to take care of thisseller, otherwise she literally
stands to lose her property.
This is the issue that we arefacing and why I wanted to talk
about the ethics of wholesalingtoday, because this is one
(12:08):
example, but it's happeningacross our country.
It's happening inside ofcommunities where it's literally
taught that this is how you'resupposed to do business as a
wholesaler.
It's why we're being attackedas an industry.
(12:30):
Today, another TU member wastalking about a property that he
has on a contract.
He already has the propertyassigned.
He already has non-refundableEMD.
We already have clear to close.
But the issue is the seller isnow ghosting.
Now we don't know the reasonwhy the seller is ghosting.
Seller could be ghostingbecause something happened in
their life.
(12:50):
Maybe it was a health emergency, a disaster happened, we don't
know.
Could also be that the selleris ghosting because he has
decided to go with someone else,sell it for a higher amount,
sign another contract and hopingthat this will never come back
on them.
(13:10):
This would be an appropriatetime to leverage the tool of
filing a memorandum to protectyourself as a wholesaler.
We are a for-profitorganization so it is our right
and our responsibility toprotect ourselves.
But in the scenario of thisother wholesaler that made a
decision to not communicate withthe homeowner for three weeks,
(13:34):
have the property improperlyunderwritten?
Where it is not a wholesaletransaction, it does not make
sense for an end buyer and isreceiving no offers, does not
have the deal signed, does nothave non-refundable earnest
money deposited, filing amemorandum because I placed a
simple phone call saying hey man, can we figure out how we could
(13:55):
help this homeowner?
That, to me, is a misuse of thetool For all the people that
file a memorandum immediatelyafter getting each property
under contract again.
If you are not releasing thosememorandums, it's an improper
use of the tool.
It's why states like Texas noware basically eliminating
(14:17):
memorandums where they're goingto be useless Because they've
been misused and abused bymainly the real estate investing
industry, and a lot of thatfalls on the shoulders of
wholesalers.
Lot of that falls on theshoulders of wholesalers.
We have to do better as anindustry and have better ethics
and better processes inside ofour businesses.
(14:38):
This starts with transparencyand authenticity.
If you can actually just call aseller and tell the seller the
truth, then it makes a massivedifference.
This is how you don't end upwith sellers wanting to back out
of contracts because you toldthem the truth up front.
The fact that we have peoplegoing out and doing novations on
(15:01):
properties without telling themthat they're going to do a
novation, that's a problem.
The fact that we have peoplethat are following memorandums
on properties that arewholesaling when they don't have
end buyers and they'reimproperly using the tool.
These are issues.
This is also going back to thereason why I am adamant against
(15:23):
the fake finance department andthe fake underwriters.
It's all just a barrier toentry to you lying and abusing
the power that we have tomanipulating sellers.
If your whole business is basedon a lie and a fake foundation,
(15:44):
then it's going to spreadthroughout everything that you
do.
There's a consistent themeinside of Titanium University
where we don't believe in lying.
We don't believe in fakefinance departments, fake
underwriters.
We don't believe inmanipulating sellers with
memorandums.
We don't do those types ofthings.
(16:05):
Is everybody perfect?
No, the community has grown toa large amount.
I'm sure there's someone insideof TU doing things that I don't
agree with, but for the vastmajority, that is the culture
that we have.
It's the culture that I want tospread throughout the
wholesaling industry.
But in order to do that, wehave to start understanding what
(16:26):
our role is inside of theindustry itself and who we serve
and how we help them.
This is why, when I talk aboutusing the closers formula, it
all starts with discovering whatthe seller's true motivation is
uncovering the layers of themotivation so you can truly be a
solution for that seller'sproblem.
(16:48):
And then it moves on to the webformula understanding where in
buyers buy and truly developinga skillset that you know what
the actual ARV is, where you'reconservative on that number,
understanding how to account forthe rehab numbers, being
aggressive on that andidentifying where your in buyers
(17:09):
will buy that deal andproviding them with great deals.
These are the pillars of whatmakes a great wholesaler and
what inevitably turns out to bea smooth transaction with
sellers.
If it's built on manipulationand lies, would you get results?
(17:29):
I don't deny that.
Will you get results?
I don't deny that.
I don't deny that you lying inand skewing the mindset of a
seller can work.
We see it and I've seen it inthe past decade throughout the
industry.
I love seeing the comments thatsay I've been using the fake
finance department for years andit works.
(17:50):
I'm not denying that.
What I'm denying is the factthat it's not what you should be
doing and the fact that it'sbeing leveraged against us and
our rights that we have rightnow, that are being abused by
ourselves, are inevitably goingto be taken away from us through
the regulations.
Look at states like Oregon.
(18:12):
Now we're forcing wholesalersto do background checks, get
fingerprints, be a registeredwholesaler in the state of
Oregon.
Why do you think that is?
It's so they can come after youif you abuse the rules and the
regulations that they bring downon wholesalers.
It's not just because they wantto know your background.
(18:34):
It's not because they just wantto have your fingerprints.
It's because they want to holdyou to a higher standard, just
like they do real estate agents.
This is the facts that we'restaring at now as an industry,
and we have brought this uponourselves.
When we continue to do theseactions and manipulate sellers
(18:56):
and force them into situationsthat they should never be in, we
are the real estateprofessionals.
When are we going to startacting like it?
Just because we know how to usethe tools doesn't mean that we
have the right to abuse them anduse them at our will.
That is when things get takenaway from us, and that's exactly
(19:19):
what's happening today.
Now, the other thing I want totalk about is on the buyer side,
when we go to dispositions.
See, this is a whole differenttype of having ethics as a
wholesaler.
There's times where you have adeal and you are dealing with
(19:39):
someone that might not be asexperienced as you, that's
looking to purchase the property.
If you are manipulating the ARVand saying that the property
could sell more to manufacture adeal, saying that the rehab is
less, maybe it's a virtual buyer.
Maybe you're even getting acontractor to go out there and
write up a bid for less than itactually needs to be so you can
(20:01):
move your deal.
These are all things that Ihave seen rampant throughout our
industry.
Manipulating buyers happensjust as much as manipulating
sellers.
That's why I also have neverbelieved in bidding wars.
When it comes to dispositions,set your price first come, first
serve.
That serves your buyer base.
(20:22):
The people that you want to takecare of on the disposition side
are those end buyers, so theycan buy multiple upon multiple
properties from you.
If you are always trying toforce them into paying you more
so you can capitalize on thatone deal, you're short-sighted
and it's eventually going tocatch up to you and cost you in
(20:43):
the end.
Are end buyers replaceable?
Sure, but do you always want tobe seeking and searching for
the next end buyer for yourwholesale transaction?
No, that's a very miserable andnot sustainable wholesale model
.
Realistically, you shouldalready know who you want to
send your deal to.
(21:03):
During the acquisitions phaseyou should understand this if
you're using the web formula,because it's literally where the
end buyers buy you should knowexactly where that deal is and
what they're going to purchaseit for, because you have the
experience of working with themand knowing exactly what they're
looking for.
(21:25):
The next thing is titlecompanies.
This is extremely importantthat we make sure that when
we're dealing with our titlecompanies real estate agents,
vendors inside of this businessthat we are taking care of them
and not asking them to do thingsthat, realistically, they
shouldn't be doing.
For example, when a titlecompany needs to clear title, a
(21:48):
lot of times some titlecompanies will help you out,
some won't.
They are taking on liability toclear title.
A lot of times, some titlecompanies will help you out,
some won't.
They are taking on liability toclear title and make sure that
this deal gets closed.
They are facilitating thattransaction.
We need to be involved in thatprocess.
Do not blame things on thetitle company.
Do not sit there and allow yourtransaction to be held up by
(22:11):
either the closing attorney orthe title company.
Blame them on that.
Again, these are things that Ihave seen over the course of
time where, as wholesalers, welack the knowledge and
understanding of what we shouldbe doing and how we should be
participating inside thesetransactions.
(22:31):
It's why, at this point, foralmost 600 straight days, I've
been able to come up withcontent on this YouTube channel
Now over 3,000 videos.
There's always things that weneed to be working on and
growing to get better.
Ultimately, the ethics insideof our industry need to improve.
Ultimately, the ethics insideof our industry need to improve.
(22:53):
This starts with how we doacquisitions, how we talk to
sellers.
What are we actually seeking?
Are we seeking the best price?
Are we seeking to gouge themand get them under contract or
just get the property undercontract?
Are we actually seeking whattheir motivation is and how we
can help them?
And then, on the flip side, arewe bringing great deals to our
(23:17):
end buyers and showing them thetrue numbers, conservative
numbers?
Let's be real.
When was the last time an endbuyer reached out to you and
said man, when you sold me thisdeal, I thought I was going to
make $40,000 profit, buthonestly, you were conservative
on your numbers.
I made $50,000 profit.
It's probably not happeningvery often.
If it is, then you're doing theright thing during dispositions
(23:40):
.
And then when it comes to theunbiased third parties the
realtors, the title companies,the lenders don't abuse them,
because they're a part of thetransaction.
Help them, show them the way.
It's your responsibility.
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