The REAL Difference Between 2008 and 2025 Economic Downturn | The King Closer Reacts - The Titanium Vault hosted by RJ Bates III

Episode Transcript
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SPEAKER_02 (00:05):
What's up guys?
Welcome to the King CloserReacts.
I am the King Closer RJ BaseIII, and you know this series.
This is the one where I'm gonnawatch a bunch of videos that
disagree with them and tell youwhat you should actually
believe.
Let's get into the first video.

SPEAKER_01 (00:18):
I went through the 2008 crash.
It was nasty, crazy.
And it was way worse than this.
It was way everybody says it'slike 2008.
No, it ain't.
This this ain't really that bad.
Shit is still selling.
In 2008, everything stopped.
There was no transaction,nothing happened.
So it's still transactionshappening, but the real skill
comes out right now.
How creative can you get todiversify and vertically

(00:40):
integrate?
And how deeply discounted canyou guys buy?
Because the game of just buyinganything and throwing an MLS is
over with.
You gotta have the best product,you gotta be in the best area,
and you gotta be the what?
Cheapest cheapest.
Stop trying to make up.
I got partners right now, youknow.
I and I'll ask, hey, dude, youdropped the price yet?
It's been two weeks we hadn'teven got a showing.
I'm like, uh no why?

(01:01):
It's only been two weeks.
Dude, if you ain't got a showingin the first week, drop the
price.
And you drop the price everysingle week.
I I took control of all mypartners that all the realtors
we're dealing with, they allhave to report to me on Monday.
And I asked, hey, did we dropthe price?
I'm dropping the price everyMonday if we don't get showings
and we ain't getting offeringscoming in.

SPEAKER_02 (01:22):
Oh, Chris Rude.
I don't know when that videowas, but I'm assuming it's
sometime recent.
Um, it's interesting that in hisworld, which is obviously not
the wholesaling side of things,it's actually owning assets.
People are saying that this issimilar to 2008.
That is wild.
That's the first time I've hadsomeone even uh say something

(01:45):
similar to that because on myside of things, I'm not feeling
that we're even remotely closeto where we were in late 2022
when things when the interestrates rose and we kind of really
stalled out on the wholesalingside.
Um, on our side, it's just it'sjust like it's always been.
We're we're rolling.

(02:05):
I mean, we get a good deal on acontract.
We we've got in buyers, it'sit's moving, it's trucking, and
that doesn't matter if it's arental or if it's a flip, high
price point, low price points.
We're pretty much able to moveanything anywhere across the
country.
There's a few markets that maybehave softened a little bit, but
maybe those in buyers want alittle bit more of a discount.
But that's pretty crazy thathe's hearing that.

(02:27):
So that's something to keep uhan eye on.
And uh from an in-buyerperspective, like a flipper
perspective, two weeks withoutit showing, I couldn't agree
more with Chris.
You absolutely have to startaggressively dropping that
price.

SPEAKER_05 (02:40):
So it comes up all the time.
It's a debate I'm alwaysstruggling with.
Should you wholesale it?
Should you rehab it?
And the math I usually use is ifI can make 40% of the money
wholesaling it, then I'llwholesale.
So if we can make 50 grandrehabbing it or make 20 grand
wholesale in it, I'll more thanlikely wholesale that deal.
Or if we have too many rehabsgoing on at one time, then with

(03:00):
the extra inventory we havecoming in, that's when we'll
wholesale it.
So it comes up all the time.

SPEAKER_02 (03:05):
I see it comes up all the time if you don't follow
me.
This is why you need to have ahedgehog concept and understand
what is my company actuallydoing.
The fact that he had to come upwith a mathematical equation of
whether or not he shouldwholesale it or keep it and flip
it, in the long term, I feellike that's an issue.
I don't know if this gentleman,I don't know him, and he might

(03:27):
be the greatest flipper of alltime, and he might prove me
wrong.
He might be running amulti-eight-figure operation,
and I don't even know it.
But my opinion is the majority,the majority of people out
there, in order to be great atwhat you're going to do, you
have to be solely focused on onething.
If we get a property undercontract, we don't sit here and

(03:51):
now decide are we gonna keepthis and flip it or are we gonna
wholesale it?
It's just it's always going tobe wholesaled.
There is no conversation aboutthat.
There is speed, there isefficiency, there's no
disagreements on, well, is itare we at that 40% magic number
or are we not at that magicnumber, right?
What's he is he actually goingto walk away from an$18,000

(04:16):
assignment fee over a$20,000 andkeep it and flip it?
Or is he gonna take the 18,000?
This is where now as a businessowner, he's having to make
constant decisions.
Whereas here, we don't have tomake those decisions.
And so everything that we'redoing is always focused on
getting better at our skill setsin regards to wholesaling.

(04:38):
And that's where I think itreally differentiates the ones
that are average to the onesthat eventually become great.

SPEAKER_03 (04:44):
I think it's you know, realtors get sold to a lot
by security companies, byanybody else.
So I just try to get right tothe chase.
You know, I when I used to callhomeowners, I would say, hey,
have you thought about selling?
That's it.
Do you have any clients that arethinking about switching?
That's it.
Thanks for watching our clips.
If you're an aspiringdoor-to-door sales rep, please

(05:06):
go to Floridaxteriors.net, fillout the form.
I'll contact you personally tosee if you'd be a good fit to
join our team.

SPEAKER_02 (05:14):
Did the dude just glitch out in the middle of his?
I I don't understand what justhappened on there.
It was like uh realtors getsold.
I used to teach people to callhomeowners where when I would
call homeowners, I'd just say,hey, you want to sell?
Anyways, 1-800, buy my shit.

(05:38):
Like, bro, I swear to God, thisis insane.
We need regulations on camerasand microphones.
It needs to happen, man.
I this this kid probably reallygood at sales, right?
You just see it.
He's a hustler.
He goes out there, he he he getspeople to sign paper and buy
some shit from him.

(05:59):
But that reel right there, thatwas a hot piece of trash.

SPEAKER_04 (06:04):
So you want to know what it's like to be a real
estate investor?
There was a tenant that wasletting me know that she wasn't
able to pay, should have herrent check in today.
Another tenant in the meantimecould only pay half of her rent.
Had a closing this morning at11.
We did a two-month lease backwith the lady.
She buying a house, so sheneeded a little bit of time.
Not everyone does that.

(06:25):
That is something that I don'thave a problem with doing is
purchasing the house and thengiving the people a little bit
of time to get out, get theirthings going.
So that's kind of been my day.
That's a fairly typical day.
It's not always sunshine andrainbow.
There's lots of challenges thatcome, but it is fun.
I do enjoy it.
It sure beats set behind thedesk all the time.

unknown (06:44):
Are you sick?

SPEAKER_02 (06:46):
JW coming in with the song there and then.
Oh man, JW, man.
This I couldn't be more proud ofJW and just what he's become as
a business owner.
He's been with Tu for since dayone.
He he actually came to theclosers formula before.

(07:06):
Just great guy.
He was absolutely horse shitwhen he showed up here in
regards to closing.
I mean, the dude would just usecar salesman background, right?
I mean, he would just be likeyelling on the phone, like, do
you want to sell or not?
I don't understand.
I'm like, J Dub, man, chill.
Like, you're actually a prettycool guy.
Like, just show that off on thephones.

(07:29):
And he's become such afoundational piece of what TU
is.
Reaching out, helping people allthe time, answering questions,
he's the in-buyer in Amarillo,Texas.
So if you're not on JW onInstagram or YouTube, you
absolutely need to follow him.
And if you get deals inAmarillo, Texas, call out, call

(07:50):
him.
He'll either buy it or he'llknow someone that will buy it
from you.
But in regards to what he'stalking about there, an average
day of a real estate investor,see, he's not only wholesaling.
He's actually taking thingsdown.
That's actually really his mainhedgehog concept is being a
landlord and wholetailing andreally keeping assets in the

(08:11):
Amarillo market.
And his his life is extremelybusy with all of the different
things that go on from tenantsthat can't pay.
He just did a reel the otherday, standing up on a rooftop
where you know the roofers werechanging the roof on one of his
rental properties or a hotelthat he's going to be doing.

(08:32):
And it is a crazy life.
And that's been one of thethings that I've talked to JW
about over the past year and ahalf.
It's like, is this what you wantyour business looking like?
And in where he's at in life,being in his early 50s, he's
like, Yeah, I want to own assetsso I can accumulate that wealth
over the next 10 years so then Ican retire.

(08:54):
And that's where understandingwhat your objective is.
What do you want that reality tolook like moving forward is so
vitally important.
So, J Dub, love you, man.

SPEAKER_00 (09:04):
And now let's look at it from the realtor's
perspective.
Let's say you get the call out,right?
Why is this assignable?
You know, the seller doesn'twant to do an assignable
contract, seller doesn't want towaste time.
Are you a wholesaler?
Are you wholesaling theproperty?
So, first things first, don'tfreak out, don't get nervous or
start backpedaling.

(09:25):
Personally, my default responseis to let them know that I'm an
investor with multiple exitstrategies, meaning I could fix
and flip it, I could hold it asa rental, I could wholesale it.
Because, you know, quitefrankly, it's none of anybody's
damn business what I do with theproperty.
You know, if I buy a car, thedealership doesn't need to know

(09:45):
if I'm gonna drive it for thenext 10 years or if I'm gonna
drive it down the block and sellit to my cousin.
And uh, hey, if you are strictlya wholesaler, by the way, or
maybe you don't have anyexperience rehabbing and you
feel uncomfortable ordisingenuous using this um
excuse or not even excuse, butyou know, this justification,
what you do with the propertytruly depends on how good the

(10:09):
deal is.
So if you get a super deeplydiscounted property, I would
refer you to a lender who wouldfinance that deal.
So even if you have very littlecapital, if the deal is good
enough, what I'm saying is thatyou could potentially fix and
flip it.
So that response is notmisleading.
Uh, most of my cash buyers theydon't necessarily have that

(10:32):
amount of cash just sitting intheir bank account.
They're using hard money loans,they're using other people's
money.
But I digress here, right?
While this is my default andrecommended response, you know,
I'm an investor, depends on whatwhat the numbers are, right?
If the numbers work, but um, ifyou do want to disclose that
you're wholesaling, or maybe theagent is probing, or maybe

(10:55):
you've I don't know, let it out,or maybe you're just building
some good report.
Hey, listen, that's fine, okay?
Just man, just say it with yourchest, man.
Be confident in what you do.
You should know in your heartthat you're going to do
everything in your power to getthat deal sold.
And now, let's look at it fromthe realtor's perspective.

(11:17):
Let's say you get the call out.

SPEAKER_02 (11:19):
Oh shit, it's been so long, I didn't even realize
that was the beginning again.
I'll say it with my chest.
That answer fucking sucked.
How about that?
Man, listen, I don't know whothis guy is.
And sometimes I feel bad when Ijust shit on people's videos

(11:43):
when I know they're just outthere trying.
Right?
We all got videos with fourlikes, now with one dislike, and
it sucks.
And listen, maybe this is likehis first ever video.
He got a sweet little setup overthere.
He's trying, man.
But here's the thing.
How are you going to handlewhere all the estates now are

(12:06):
actually mandating that you haveto get a disclosure signed that
you're a wholesaler before theysign the contract?
You're gonna say, well, sir,it's none of your damn business.
No, it actually is all of theirdamn business.

(12:28):
You gotta let them know.
You're talking to a realtor.
Why is this contract assignable?
All contracts are assignable,Mr.
and Mrs.
Realtor, that's your answer.
Then wait for them to respond.
Are you a wholesaler?
Yes.
Well, my homeowners don't wantto waste time.

(12:48):
Then why have they been wastingtheir time with you?
You ain't moving their property,I'm gonna move their property.
I know the end buyers, I knowthis is a damn good deal.
Let's go.
What are we waiting on?
Give me this inspection period.
I'm gonna put this much earnestmoney down.
And then also, why are youdealing with realtors?

(13:11):
We don't do this anymore.
What is this?
2022, Jamil Damjee, Jerry Nortonvideos out here.
Direct to agent.
You gotta go on the on-market.
Nah, brother.
This is 2025, 2026, where wejust get leads just handed to
us.
Shit, Jerry Norton got them nowout there for like a buck 25.

(13:33):
Speed of lead,$29.
Property leads,$30, leads allow$35.
Real estate bees.
Where did they come from?
They're a hot, steamy pile ofshit, according to what I've
heard so far, but they sell themfor$29.
You don't need to go on themarket anymore and deal with the
realtors.
You just deal directly with theseller.

(13:54):
And if they ask you if you're awholesaler, you tell them yes.
And then in the majority of thestates, pay attention to this.
In the next year to two years,the majority of the states are
going to require you to say, Mr.
and Mrs.
Seller, I am a wholesaler.

(14:15):
Let me explain you what thatmeans.
And I need you to sign thisdisclosure before they sign a
contract.
So go ahead.
And if you're in the business ofnot telling me you're a
wholesaler, you're gonna get thefuck out of business.
How about that?

(14:37):
So don't listen to this becausethe game is changing.
All right.
Well, that's our episode of TheKing Closer Reacts.
I think I was nice to somepeople.
I feel really bad about the lastone.
But let me know what you thinkin the comments.
Do you agree or disagree withme?
Show me some love.

(14:57):
Like today's video.
We'll see you guys tomorrow.

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The REAL Difference Between 2008 and 2025 Economic Downturn | The King Closer Reacts

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