Episode Transcript
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Speaker 1 (00:00):
What is the secret
ingredient to wholesaling
success?
As cliche as it is, it's yournetwork.
We're going to go through that.
I'm going to talk about theimportance of the network that
we have built here at Titaniumand how it really catapulted us,
especially early on, orespecially early on, Like
(00:24):
yesterday's video.
We strategically released thatabout our first ever wholesale
deal.
That we did in August of 2014.
And then from there, thenetwork of individuals whether
it was JV partners, Dispopartners, ended buyers, title
(00:44):
companies, lenders theimportance of all of that and
how it has enabled us tocontinue to grow as a
wholesaling operation andsuccessfully complete
transactions and get money inour bank account.
But I think sometimes that getslost in like, hey, this is how
we comp and underwrite, this ishow we do acquisitions and talk
(01:05):
to sellers and all thesedifferent little nuances inside
of wholesaling.
All of that is vitallyimportant, but at the end of the
day, the only thing that'struly important is getting
results and making sure moneyenters your bank account faster
than it's leaving, and if youcontinuously do that, you're
succeeding.
How do you get to do that?
(01:25):
Well, make sure you always knowwhen you have a need inside
your business.
Who are you going to pick up?
Who are you going to call?
Who's going to answer thatquestion that you have?
And so, going back to our earlydays in 2014 and early 2015,.
You know, there's the firstdeal that we did on 2300 Sunset
(01:47):
Lane.
That was important, that wasthe proof of concept that we
needed that, hey, wholesaling isa legitimate business and that
we can do this.
And it will insert a check intoour bank account.
But then, after that, that'swhen you start relying on that
network of people around youBecause, let's be honest, we got
(02:08):
extremely lucky on that firstwholesale transaction, not
really knowing how to comp itunder right, Not really knowing
how to do dispositions.
I mean, we dispo'd the deal offof Craigslist and the end buyer
ended up showing up at theproperty and basically illegally
(02:28):
entering it, breaking in andclimbing through a window.
I mean, we got lucky duringthat transaction, but through
that transaction we developed arelationship with an escrow
officer, dana draper, and I talkabout her all the time because
we still use her for our dealshere in the state of Texas to
this day.
(02:49):
She has been an amazingresource that has helped us
through so many differenttransactions and has enabled us
to close deals that otherwise wewouldn't have been able to
close.
But moving past that first deal, then it became a little bit
harder for us to do acquisitionsand there was a lull in the
(03:11):
business where they just kind ofslowed down and I basically
abandoned our contractingbusiness and so money started
becoming a little bit lighter.
Right, that's $7,500 on thefirst wholesale deal.
That went away super fast.
And so as we got additionalproperties under contract and we
(03:34):
started moving towards how dowe disbill these deals?
The first couple ones that wedisbilled went to the exact same
buyer.
Couple ones that we disbowedwent to the exact same buyer was
1008 Shady Lane in Keller,Texas, and 4702 Wateca Lane in
(03:54):
Dallas, Texas.
The way that we disbowed thosedeals was actually were on net
worth realty's buyers list andthey forgot to bcc their buyers.
They only cc'd them, and so Itook all of those email
addresses from that email and Ijust, hey, this is not my buyers
(04:17):
list, I'm now sending out mydeals to these buyers.
And I was able to dispo thosetwo deals Shady Lane and Wateca
to an end buyer based out ofIdaho.
Now, after that it became a lotmore difficult for us to dispo,
(04:39):
because that was just again,pure luck.
There wasn't skill involved.
And so the first person thatbecame a monumental part of our
success was the next buyer thatwe found, and we actually found
(05:00):
him by posting a deal that wehad under contract inside of a
Facebook group.
His name was Chris and hecontacted me and he was like hey
, I just paid $60,000 foreducation to virtually flip.
I'm based out of California andI'm going to be flipping houses
(05:22):
in the state of Texas.
I'm based out of California andI'm going to be flipping houses
in the state of Texas, so I'msuper interested in this
property.
Went through the whole process.
He needed to get a contractorto come, bought the property,
give him a bid.
He had to figure out who he wasgoing to use for his hard money
loan.
And what was I doing?
The entire time I was suckingup all of this information that
(05:45):
was coming my direction.
Who was he using for a hardmoney lender?
What contractors was he gettingto come out and want these
properties?
And I'm getting their contactinformation because I'm thinking
to myself well, if this guy hasto figure out how he's going to
get money to purchase propertya hard money lender this seems
like a great resource.
Well, it was and it still is tothis day.
(06:10):
The network of what we builtearly on is still part of our
network.
A decade later, he used WildcatLending and they were brand new
to the industry.
On his first several deals, Ijust took out a loan on a
(06:36):
property using Wildcat Lending.
10 years later, so as I waspaying attention and looking
around and going, okay, how isthis guy able to flip this house
Hard money, loan thiscontractor?
I remember every time I wouldmeet one of his contractors, hey
, if one of my other buyersneeds a contractor, can I
recommend you to do the rehabfor that property?
(06:57):
Of course, every single one ofthem was like yes, so he bought
that property.
Then the next property I gotunder contract he bought that
one.
The third property I got undercontract he bought that.
This is in the span of abouttwo weeks.
We're talking about Junius inDallas, Swiss Avenue in Dallas,
(07:20):
San Fernando in Dallas.
I still remember these dealswhy they were life-changing
deals for us.
We were still extremely early onin our career, so each one of
these was not only proof ofconcept.
But we're building that networkand I'm thinking to myself like
(07:41):
I don't know how many dealsChris can buy, but I'm going to
keep going back to the welluntil the well is dry.
That's what we did.
So then we get the fourthproperty under contract,
Lipscomb.
I go to him and I say, hey, gotanother deal.
And he says all right, RJ, pumpthe brakes.
I can only do so many deals.
(08:02):
All right, fair enough, Makessense.
You're new at this.
Now, at this point you've gotthree properties that you own.
I've made my money.
He can't buy this one.
But he says I am a part of acommunity of other people that
are looking to buy deals.
What if I bring you the buyerand we just split the fee, the
(08:27):
wholesale fee?
I'm sure you've made reallygood money off of the deals that
I bought from you.
I was like I absolutely have.
He says great, how about this?
Let me present this to thepeople inside of my community
and see what happens.
Sure enough, buyer.
Next deal I get.
(08:47):
Send it to Chris.
I'm not interested in this one,but I'll send it to the
community Buyer.
We did this to the tune ofprobably 100 plus deals when we
were getting started.
Why?
Because I didn't have the skillsets and, quite frankly, at the
(09:09):
point in time I wasn't preparedto learn that skill set.
I just looked at it and saidthis is amazing.
I'm making more money than I'veever made and I'm only having
to do half of the job.
Now, mind you, remember I didthese deals off of the MLS, so I
wasn't even investing moneyinto marketing.
(09:31):
I didn't figure out how to havea skill set of how to talk to a
seller, I just knew this is adeal.
I'm finding discountedproperties that are distressed.
I'm getting this is a deal.
I'm finding discountedproperties that are distressed.
I'm getting them on a contract.
I'm sending them straight to mynetwork, which at the time was
small but still effective, andso we were consistently moving
(09:52):
deals.
Quite frankly, I don't evenknow how many deals that early
on we terminated.
I don't even know if it wasvery many, Because I didn't even
know that was really like anoption.
It was kind of like you get iton a contract, you make sure
it's a good deal they were, andthen you dispo it and then
(10:14):
whatever that end buyer neededalong the way we provided we
treated our end-buyers likecustomers.
Were we perfect?
No, but you need a hard moneylender.
Here you go, here's WildcatLending.
Well, eventually it got to thepoint where we might need
somebody else.
So we added two, three, fourother hard money lenders to the
(10:38):
arsenal.
Hey, I'm based out ofCalifornia and I want to flip
this house.
I don't know how much my budgetwould be.
Well, guess what?
Cassie and I were, prior tobeing wholesalers, we were
contractors.
So we'll write up a bid for you.
Cassie started literally makingdesign templates for the end
(11:03):
buyers and we were sending theminvoices.
Hey, for $250, we'll make you adesign packet.
Use this tile, Use this colorpaint, Get this granite
countertops.
This is where you can get itfrom Whatever they needed.
We were providing to them so wecould succeed as wholesalers and
(11:25):
over the course of time, westarted building up
relationships.
Now, mind you, I don't know ifwholesaling YouTube channels
existed, but we didn't know anybetter.
So we were just going aroundand we were focused on the small
little circle of people that wehad and we just do.
Hey, this is really working.
(11:45):
We weren't going to meetups, weweren't further educating
ourselves, it was just the dailygrind.
And over the course of time,the network just continued to
grow More lenders, morecontractors, more title
companies.
How did we get more titlecompanies.
Well, there'll be times where aseller would say you have to
(12:07):
use my title company, it's aprobate, it's an inherited
property, We've already openedup title.
We would have to close the dealwith them.
We would make a connection withthe escrow officer.
Well, boom, now we've got twotitle companies that we can use.
Hey, title companies.
Do you know any investors thatare regularly closing deals?
(12:27):
Maybe we should send them moreproperties?
And we just continued to grow.
And so ultimately, after aboutthe first year and a half, our
wholesale operation wasbasically we were the
acquisitions leg of a jointventure monster.
Chris was basically disbowingall of our deals.
(12:49):
Now some of you look at thatand you say, yeah, but you were
sacrificing 50% of the revenueand the profit.
Were sacrificing 50% of therevenue and the profit.
That's true, we were.
I never viewed it that way.
I viewed it as we're gettingmore deals than we would if we
(13:14):
were to stop and have to developthe relationships of these end
buyers that we would not haveknown.
And so one of the things thatis very important and one of the
things that we always protectedwas our relationship with Chris
more than anything.
So when Chris would bring me abuyer.
Let's say the buyer's name wasJames and I would do a deal with
(13:34):
James and Chris.
The next time James wanted tobuy a deal, I protected Chris
and I made sure that Chris stillgot paid on that.
I never took that buyer.
Now some people might disagreewith this, but at the time the
most important thing to mybusiness and my livelihood was
(13:56):
that network, and it startedwith my relationship with Chris.
He was the lifeline to newbuyers, so I always wanted to
make sure that he was taken careof.
That was a priority to us, Alsobecause he continued to buy
future properties from us.
It didn't just stop at thethree, it just temporarily
stopped with the first threeuntil he got those completed and
(14:20):
he was ready for the nextprojects.
So not only was he a partner,but he was also an end buyer for
us, and so that was always ahuge priority.
Make sure that you're takingcare of the people that take
care of you.
This is what strengthens thebond of that network that you
have.
(14:41):
So early on, what enabled us toget started was that those
relationships that we built.
And then, through the course oftime, it was like I remember
the first time a hard moneylender ever said hey, you know
you're referring a lot ofclients to us.
You know we could give you anaffiliate or referral agreement
(15:05):
for this what I get paid.
I was just doing that so Icould get my wholesale fee.
Next thing I know I startedgetting paid off of referring
clients to them.
My business just continued togrow and it was through the
relationships that we built.
So you guys need to constantlybe thinking about how can I
(15:29):
build relationships inside ofthis industry, who can I bring
value to and then leverage askillset or something that they
have going on in their businessto help us grow together?
Now, several months ago actuallyabout a year ago and then a
couple months ago we did a videoabout what markets should you
(15:52):
do virtually wholesaling in, andinside of that we give you a
resource, and inside of that wegive you a resource.
Now this resource is availableon every single one of my videos
and you can get it attitaniumucom slash markets.
It's about a 50-plus page PDFand it outlines the details of
(16:14):
my feelings and our resultsinside of every state, including
what title company we use, thepercent of deals that we've done
and then, at rate, acquisitionsdispositions and overall, your
ability to wholesale in thatstate, based off of our
experience.
The reason why I'm bringingthis up is because, as you
(16:36):
download that, it's not justabout the information that is
provided in there about.
Hey, RJ thinks Texas is a greatmarket to wholesaling.
Of course I do.
I've been based here For thefirst several years.
The majority of our deals weredone in the state of Texas, so
I'm, of course, going to believeTexas is a great state to
wholesaling.
The reason why this isimportant is because one it
(16:59):
gives you information on whattitle companies to use and my
feelings, but also, as you'relooking at, what markets should
I actually wholesale in?
This is a question that gotbrought up inside of Titanium
University the other day, andwhat I told everybody in that
call and I want to tell you guystoday is, if you're trying to
decide what market you want todo wholesaling in, you should
(17:24):
base that decision around who doyou know in this industry?
What does your network looklike?
Who do you know could be an endbuyer?
Who do you know that could be ajoint venture dispo partner?
I feel like that would be agreat way for the majority of
you guys to get started inwholesaling the exact same way
(17:45):
that we did back in 2015.
First, I don't even know howmany deals I mean at some point
in time I'm sure I could countit up, but we'll say 100 plus
deals.
We literally JV'd the dispowith someone that was entirely
based around their entireoperation was based around the
(18:08):
ability to dispo deals.
That enabled us to get reallygood at identifying what was a
deal, what wasn't a deal, andwhat we now teach is we're where
in buyers buy Understanding theweb.
This is what I think each andevery one of you should do If
you're deciding what market youwant to be in.
(18:28):
Who do I know that can help mein my business?
A TU member earlier today justasked.
He has a job, the busy time ofthe year is coming up and he's
worried that that job is goingto consume his time and he's not
going to be able to focus onhis wholesale operation as much
(18:50):
as he desires.
So he's thinking about actuallygoing out and working for
another wholesale operation, abig box wholesale.
My response to him today waswhy not look internally at the
opportunities that exist insideof TU?
Why not the network that youhave?
(19:13):
If you're looking at someone andyou're saying that person is
really good at dispositions.
If I solely focus onacquisitions, where do you have
end buyers?
I bring all my deals.
You disbob, boom.
I'm just focused on bringingyou deal after deal after deal.
Or if you have end buyers andyou know someone that's good at
acquisitions, If you have endbuyers and you know someone
that's good at acquisitions, whynot do the exact same thing?
(19:35):
Hey, I'll disallow all yourdeals.
Go get me deals in Kansas City.
Go get me deals in Birmingham,Alabama, wherever it is that you
have buyers.
This is how you build thatnetwork.
One, provide value.
Two, make sure that therelationship makes sense for
(19:56):
both parties.
That's why it was successfulfor us and Chris.
Early on, he didn't know how todo acquisitions, he didn't know
how to identify deals, he justknew.
This is what they taught us,and I know that we have a ton of
buyers inside of this community.
So we leveraged that.
(20:16):
We leveraged the fact that hehad that community around him.
Why not replicate that and dothe exact same thing inside of
your wholesaling business?
Right now, you guys show uphere Every single Tuesday inside
the chat For those of you thatare inside of Titanium
(20:38):
University, why not leverageeach other inside of there and
work together?
Galen in Bayer in Wisconsin.
Boom, there you go.
You just know that.
Why Because I've said it 10times on Tuesday lives he shows
up every single Tuesday.
(20:58):
Why not leverage thatrelationship?
Because you don't have it yet.
You have to build that networkand provide value.
First, Now the other things thathave come around more recently.
Now the other things that havecome around.
(21:34):
Moreads is a vendor that we'vebeen using for a little bit less
than a year.
That relationship wasestablished based off of a
relationship that I created backin 2017.
Eight years ago, I developed arelationship with a gentleman
(21:55):
named Matt Andrews.
Matt Andrews had nothing togive me at the time I developed
that relationship.
I had nothing to give MattAndrews except for friendship
and the ability to talk aboutwhat we were doing inside of our
wholesale operations.
He went on to create what'sknown as Family Mastermind.
(22:18):
I joined Family Mastermind andthrough there, I met the owners
of property leads.
Through there, we put themthrough a vetting process to see
is this a viable lead sourcefor our community, for you guys,
and from that point, we saidyou guys should use property
(22:40):
leads.
Several people inside of TUinside of the vault just
watching my YouTube channel,have made hundreds of thousands,
if not millions, of dollarsusing property leads.
Again, this is leveraging yournetwork to make things better
(23:01):
for everyone around.
That relationship with Matt wasdeveloped prior to this could
ever be thought about.
There was no PPL, there was noTitanium University, there
wasn't even the thought of mehaving a YouTube channel at that
point.
But the relationship, thatnetwork, was created.
(23:24):
Today I got a call from myfriend, Jerry Norton.
We talked for about an hour onthe phone.
Was there a purpose behind theconversation on?
Was there a purpose behind theconversation?
Not really.
The whole point was two peopletalking about what they love to
talk about wholesaling.
How can we better serve youguys?
(23:44):
What can we do to make thewholesaling industry better
Content-wise?
What can we do?
That's what the entireconversation was based around us
talking about the differenttypes of content that we have
done.
A year and a half ago I guessit's longer than that, probably
(24:05):
two years now I didn't haveJerry Norton's phone number
Again.
Putting myself out there anddoing the closers olympics yeah,
I won some fake wrestling belts, but I also developed some cool
relationships and from there,every single time I talked to
jerry, I tried to provide jerrythe opportunity to build his
(24:30):
brand, showcase, showcase histalents, and I provide value to
him.
Jerry, let's collaborate onsomething.
Sure enough from thatconversation we're going to be
going live on Thursday toprovide value to you guys.
That, yes, in return, we hopeto benefit from that.
But that's not where it comesfrom.
(24:52):
It comes from the place ofbuilding that network together,
strengthening our voice, ourpurpose behind creating content
on a daily basis.
I think Jerry and I probablyput out more content than anyone
else in this industry combinedand we see eye to eye on a lot
(25:18):
of different topics, and thatwas one of the things we talked
about today.
It's okay to not see everythingperfectly, but to be aligned on
so much of our message is veryrare nowadays.
Again, that network.
So now on Thursday, not only doI get to provide value to you
guys and help you guys andhopefully make you better
(25:41):
wholesalers, but also I get todo really cool shit with Jerry
Norton Literally a pillar in thewholesaling industry, One of
the strongest voices.
He wants to do that with me.
It's an opportunity.
The message that I want todeliver to you guys today is
(26:01):
have your eyes open to theopportunities that exist with
working with other people inthis industry.
It doesn't have to be an actualpartnership.
It can literally just be whatJerry and I do let's collaborate
on something.
It could be as simple as doingone joint venture deal at a time
(26:23):
together.
That's okay.
Eventually, Chris and I got tothe point where we said we're
going to go do our own things.
Why?
Because he developed the skillsets and the desire to want to
do acquisitions.
I got to the point where I haddeveloped the skills and had the
desire to want to dodispositions.
(26:45):
So we separated, we went ourown way, and that's fine.
We made a ton of money together.
We had a ton of laughs At onepoint in time.
I consider him one of my bestfriends.
I don't anymore just becausewe've, like our relationship
kind of fizzled out after westopped making a lot of money
together.
But I still look back at thattime and go, man, I don't know
(27:08):
if I make it here without thatrelationship with Chris.
So to you guys moving forwardin your business, always keep
your eyes peeled for theopportunities.
The next thing, I talk aboutdispositions.
It's one of the topics andsubjects inside of this industry
(27:29):
that I think the majority ofpeople struggle with.
There's not enough content outthere in regards to dispositions
, and part of that is just dueto the nature of how difficult
it is to show dispositions.
It's just a harder, it's a loteasier for us to show the lead
generation and the acquisitionsthan it is to show dispos, so
(27:52):
there's less content in regardsto it.
Now, I do think part of thereason why there's less content
around dispositions becausemaybe, just maybe, some of the
people that put content outthere aren't necessarily doing
some of the business and somaybe it's just hard for them to
actually show that.
But it's neither here nor there.
That being said, when it comesto dispositions, I always talk
(28:14):
about building that relationshipwith your cash buyers.
Yeah, Investulift, InvestorBase, DealSpeed they're all
extremely vitally importanttools and systems to have, but
the reality is your ability toknow who that end buyer is going
to be.
(28:35):
Without the system, without thetool and building that
relationship and having thebuyer pick the phone up when you
have a property under contract,that's irreplaceable.
That's what takes you to awhole other level.
As a wholesaler Justin andGarrett at this point, they have
known buyers throughout thecountry.
(28:56):
I think Justin is just south ofdoing deals in 40 different
states.
I think Garrett's at like 33 or34 different states in a
two-year time span.
That's a lot of differentlocations with a lot of
different buyers that they havedeveloped.
So now at this point, when theygo to do acquisitions, they sit
(29:19):
down and they look at speed tolead, even if it's coupon club.
Where do you think they'regoing to pick their leads?
They're going to be basing thatdirectly off of where do I know
I have a buyer?
Or where do I know I have abuyer texting me right now
saying hey, dude, just got donewith that other property, Send
(29:41):
me your next one, I'm ready togo, I'm ready to buy.
That relationship is criticalto a wholesaler's long-term
success and health.
At the end, the initial title tothis video prior to us making
it a lot more clickbaity and,quite frankly, easier to read on
(30:02):
a cell phone the secretingredient to wholesaling
success was the quality of yourreal estate business is directly
proportional to the quality ofyour relationships, and that is
an absolute fact.
This whole business is arelationship business.
Think about the fact that everysingle time you get a property
(30:26):
under contract, you should havea relationship with your end
buyer.
You should have a relationshipwith the title company.
If they're using a hard moneylender, hopefully you have a
relationship with that hardmoney lender because at some
point in time you should knowwho are the hard money lenders
that are good to do businesswith in this market and who are
(30:48):
the ones that are not good to dobusiness with.
If you're utilizing atransaction coordinator, you
should have a relationship withthat business and understand how
you're going to do businessback and forth, because
communication is key there.
This whole business is builtaround those relationships.
Why do I get some people thatwhen they get a deal in a
(31:10):
certain location, they send me atext or they give me a call
because they know, hey, basedoff of our relationship, I know
you've got a buyer there, I knowyou do deals here, let's do it.
That's that long-termrelationship that, quite frankly
, you can't put dollars andcents to what that's worth to
(31:30):
your business.
If I bet, if I added up howmuch money I've actually made
over the course of time thatcame directly from the
relationships, it might evenexceed what I've spent money on
to create revenue.
That's how much money I've madeoff of the relationships that
I've established inside mybusiness, One of the things that
(31:53):
I wrote down here on my notes.
This one's funny.
I've actually been asked thisnumerous times.
We'll open this up for Q&A herein a second.
But I've actually been asked RJ, should I actually give out my
cell phone number when I'mtalking to sellers, or on my
(32:16):
dispo marketing, or on myvoicemails?
Listen, I have been giving outmy cell phone number for a
decade.
For the past eight years I'vebeen giving it out live on
podcasts, YouTube channel.
It doesn't matter.
(32:39):
My videos have been seenmillions and millions, actually
tens of millions of times.
At this point in time, my phonegets blown up with spam.
It doesn't get blown up withpeople watching YouTube videos.
My cell phone number is817-915-6860.
I want people to know my cellphone number.
I can choose to respond to anytext message or any phone call.
(33:03):
But the opportunity that comesmy way, if someone has that need
and they know I have thesolution, I want that
opportunity.
I want that person to know thatmy cell phone number is
817-915-6860.
So they can reach me and I canoffer the solution if I want to.
(33:25):
But if they don't know my cellphone number and they don't know
how to get a hold of me and yousend me a DM on Facebook or
Instagram.
Guess what?
There's a solid chance thatit's just going to get moved to
the spam.
I'll never even know it exists.
I just responded to the guy theother day.
He had a property they sent melike three months ago and I'm
(33:45):
like, yeah, dude, I could havedone something with this, but
you messaged me three months agoand it's been sitting in my
spam folder.
I didn't see it.
Guys, build that network, Giveyourself as much opportunity as
possible, but look around andsay who can I provide value and
take my business to a wholenother level?
(34:07):
I think collectively as anindustry.
Right now, there's too manypeople that are trying to get
started that are not lookingaround and saying who can I do
this business with?
Not a partnership?
Let's do some deals together.
It's not the end of the worldto give up 50% of the deal or
(34:28):
40% of the deal, whatever thearrangement ends up being,
Because, as of right now, you'reprobably not even doing deals.
Period.
Get a little piece of it.
Get some deals under your belt.
You'll be able to go to anotherlevel.