These Wholesalers CAN'T Be Serious! | The King Closer Reacts - The Titanium Vault hosted by RJ Bates III

Episode Transcript
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SPEAKER_05 (00:05):
What's going on, everybody?
Welcome to the King CloserReacts.
I am the King Closer RJ BaseIII, and this is the series
where, well, sometimes I watch abunch of wholesaling videos and
normally disagree with them, butevery now and then I end up
watching a bunch of Alex orMosey or some dad bot videos.
I don't know.
So let's get into the firstvideo and see what we got in

(00:25):
store today.

SPEAKER_02 (00:26):
Let's be real, the fastest offer wins.
That's the whole game.
They want a good offer, but theywant it quickly.
Once I made speed, my advantagein wholesaling instead of
weakness, everything changed forme.
And this is how I did that.
By the way, all you need ispodio.
Make sure you have the properaintegration.
Go up here to add lead.
Paste in the address, select theproperty type, put in the
bedrooms, bathrooms, squarefeet, put in your build.

(00:49):
Then you can put the compradius.
Now we're gonna do this.
We're gonna run the ARV withPropera.
Put in the name of the sellerand press run ARV.
Once you do that, press savelead.
Boom, there we go.
We got the ARV generated fromPropera.
469,000 gives us the summary.
We got 12 comps within one mile.
And it breaks down everythinghere for us as well.
We can just go straight toPropera, and there it is right
there.
We can click on it and it breaksdown everything for us ARV, comp

(01:11):
sales, everything here.
Market price, top dollar, quicksales, everything breaks it all
down for us.
Perfect.
And if we want to export into aPDF, we can right there.

SPEAKER_05 (01:28):
That was just him promoting like his little old
school podio look.
It tells me an ARV.
Brother, you know that thatalready existed, right?
You just take an address, dropit in the prop stream, and it'll
give you that number.
It'll just tell you right there,469.

(01:52):
So what?
Who gives a shit?
Number's bullshit, anyways.
We ain't paying attention tothat number.
You got to get in there andactually understand what the
fuck you're looking at.
Because just because theafter-repair value is 469, that
doesn't mean shit unless it's2017 and you're still going off
at 70% of ARV minus repairsminus your wholesale fee, which

(02:15):
that's guaranteed costing youtens of thousands, if not
hundreds of thousands ofdollars, because you don't
understand why the deal was adeal.
You're just going at maximumproperty value, throwing in a
rehab number, and then minusingyour assignment fee.
What if that 469 would have mademore sense to lower the value

(02:40):
down to 425, have a much smallerrehab budget, and then that
would have made more sense forthe seller and for you.
Oh, and for your end buyer,because I don't know if you know
this or not, but majority of inbuyers that are repeatable good
buyers, they actually don't likedoing huge rehabs and maximizing

(03:00):
the value of the property.
They actually like the smooth,easy rehabs lower the property
value because that lowers theirdays on market.
That's what they actually preferto do.
So this, I mean, I agree withwhat he was saying earlier.
Yeah, sometimes being the firstone to the seller is an
advantage and it's what can leadto getting a contract.

(03:22):
But the whole, the whole, thiswhole thing of like, we don't
need to understand the comps.
We can just have AI or a systemdo it for us.
That's just amateur hour, andyou just not wanting to have
skills.

SPEAKER_04 (03:35):
Guys, y'all need to stop chasing these small deals
in real estate.
I speak to people often andthey're like, hey, you know, I'm
doing this 5K deal, 10K deal,which is good and all.
You know, that's great, butthat's not gonna move the needle
for you.
You might as well go get a jobor a salary paying job, you

(03:56):
know.
Because what happens when that 5or 10K deal ends up not closing?
Because the seller had a lien onthe property or something,
anything can happen at theclosing table.
I've had a deal fall out the daybefore closing, you know, and
bam, there goes your 5 or 10kmonth, you know.
So we personally, we don't evenchase the deal if the seller is

(04:20):
not at least willing to take$30,000.
We put a$60,000 cushion in allof our deals.
If you want to work, you gottaactually talk to the seller.

SPEAKER_06 (04:43):
Oh my god.
Do I even have to give aresponse?
Fuck it.
We're a 10x shit.
100,000 on every single deal.
Fuck them.
Just fuck them in the ass, man.
Like, what the fuck are wetalking about?

SPEAKER_05 (05:01):
Man, listen, yesterday I went live and a lead
comes in in Indiana and thisseller, her asking price is
$25,000.
The the price is good prettygood.
She bought the house like yearsago for$15,000.
She put a ton of work into it.
She just realized she was inover her head.

(05:23):
She she didn't buy it at a goodprice.
And so she's like, I'm nevergonna be able to finish this
job.
I don't have enough money.
Like, I need to, I need to getout of this.
And it was she was gonna live init.
This is she's not an investor,she was gonna be an owner
occupant, and so she's like, ifI could just get 25,000, and
mind you, a year ago she hadthis listed on the market for
80,000, it dropped it all theway down to 65,000.

(05:44):
Now she's asking 25,000.
And so I needed it a little bitlower because I was thinking
like we might be able to dispothis somewhere in the 20s, and I
was right.
So at 4 p.m.
or no, 3 p.m.
I'm sorry, 3 p.m.
Central, we get a signedcontract at$22,000.

(06:05):
Less than four hours later, wehad a signed assignment at
$29,000.
So I'm making$7,000.
So he tells me I shouldn't dothis deal.
That lead cost me$75.
I'm going to make a$7,000assignment fee on it.
It took me a total of 25 minuteson the phone with her, one phone
call to a known buyer, and thedeal's done.

(06:28):
I mean, yeah, we've got to opentitle and go through the TC
process and just make sure, butthis is a repeatable buyer.
Um, how would I have built in$30,000 there because I assigned
it at$29,000?
Should I have told her sheshould have written me a check
for$1,000?
Oh, we just shouldn't help thosehomeowners out.

(06:49):
That's what this advice is.
We should only be going afterpeople that have$300,000 houses
that they need to sell.
Again, just$10 that shit, bro.
Just go get people that onlyhave$3 million houses.
Fuck it.
$30 million houses.
Why only$60,000?
What happens if your$60,000 dealfalls apart at the last minute?

(07:11):
What if it has a$61,000 lien?
What happens to your month then,since apparently you're only
doing one deal a month?
I mean, I did one deal in fourhours from lead to assignment.
This is just I dumb.

SPEAKER_00 (07:26):
Most wholesalers go broke before closing their first
deal because they don't knowwhat they're doing.
They get into wholesaling in asituation where they don't know
the type of offers to get, thetype of deals to make, they have
to learn a brand new skill.
Very oftentimes someone getsinto wholesaling when their back
is against the wall.
So they don't even givethemselves enough time to learn

(07:47):
the new industry and make theproper gains and advancements
they need to make.
There is a sentiment out therewith all the media and content
going around that wholesaling isvery easy and you can make a ton
of money working for yourself.
The latter of that is true.
You can make a ton of moneyworking for yourself, but it
being easy is no way, shape, orform true.

(08:07):
It is.

SPEAKER_05 (08:10):
I am barely certain that about a year and a half
ago, we had this exact sameperson on King Closer Reacts,
and he almost said the exactsame thing.
Meaning he clearly watches mychannel and understands that
repetition is the key tosuccess.

(08:30):
He just said, we're just gonnakeep repeating it.
Wholesaling is not easy, it issimple, but it's not easy.
You get your ass kicked everysingle day, and he's right.
He is right.
I mean, it is it's there's nobarrier to entry.
Anyone can just pick the phoneup and start calling people and
making offers on their property.

(08:50):
That you don't really have tohave any skills to be able to do
that.
There's no regulations really tohey, you have to do this before
you become a wholesaler, exceptin Oregon.
So yeah, it is really easy toget into, but most people do
fail.
And going all the way back towell, the repetition thing,

(09:14):
2024, I said it.
Wholesaling is a war ofattrition.
80% of people that get intowholesaling fail in year one.
That's just a fact.

SPEAKER_03 (09:27):
Here's the reality more leads don't fix broken
systems.
In fact, more leads usuallyexpose what's broken in your
business, right?
So this is one of the thingswhen I when new students come on
that have a business, one of thefirst things we do in an audit
is take a look at their leads.
And they always say, I need moreleads, I need more leads.

(09:47):
The reality is they don't haveneed more leads, they actually
need to have less leads andimprove the systems around their
leads before they have theability to do more leads.
Because when you have moreleads, it exposes all the
problems.

SPEAKER_05 (10:05):
I think that's a world record for saying leads
the most times inside of aone-minute short.
Um, but I do agree with whathe's saying to a certain extent.
There needs to be a process inhow leads are managed.
I'm very big on this.
There's two things that can killa wholesale company too many old
leads, not enough new leads.

(10:26):
You have to be killing leadsevery single day.
You've got to be getting incontact with them.
Wholesalers want to hoard theirleads, they want to hold on to
them forever and ever becausethey're like, hey, I spent money
on generating that lead.
And so, yeah, they don't want toaccept my offer today, so I'm
gonna hold on to it.
But the issue is that we end upwith thousands of leads inside

(10:46):
of our CRM and they never trulyget worked appropriately, and we
don't know where our money cancome from.
And so there does need to be aprocess of how new leads are
coming in daily, old leads aregoing out, signed contracts are
coming in.
That's there's a sweet spotthere for each acquisitions
manager.
For some people, it's like, hey,I need 50 leads.

(11:08):
For some people, it can beupwards of 200 to 300 that they
can navigate at a time.
That's really just up to yourtime availability and your
bandwidth, and then also theprocess, the system that you're
using inside of your business.

SPEAKER_01 (11:21):
There was a company that did real estate
wholesaling.
It's a new company.
They're actually the firstcompany to do it here in Atlanta
before it really breaking offthis back in 2010.
But I remember the first sixmonths, I was I made$800.
And I asked my dad, I was like,I'm gonna like he's like, if you
do this job, just work yourhardest for six months.
I remember I was working fromeight to eight for six months,

(11:43):
made my first check, eighthundred dollars, and I was like,
okay, once this closing happens,I'm gonna quit.
And that closing, when I waswaiting for the closing, I got
another closing call-up, another$1,200.
I was like, cool, I'm gonna quitafter this.
Then I had an elderly gentlemanthat was telling me his
locality's properties, and hetold me three properties, and I
was like, okay, cool, I'm gonnaride this out.
And then I think I was makinglike$3K a month, then four, and

(12:06):
then six, and then eight, andthen ten, and it just never
stopped since.

SPEAKER_05 (12:14):
I don't think that they were the first wholesaler
in Atlanta, Georgia in 2010.
Just gonna throw that out there.
Pretty sure wholesaling has beenaround like forever to some
degree, but anyways,$800, um,and then the$1,200, and then
that was a slow ride up.

(12:35):
Listen, if you're a newwholesaler and you're not making
good money on your your deals,um, I I do have the answer for
you, and it's a real simple one.
Um, it's kind of an RJ-esquesaying, you know, like I like to
make things really stupidsimple.

(12:56):
The answer is buy deeper.
Like, you know, just 10x thatshit and just throw in a$60,000
buffer.
Not$60,000.
Okay, that was crazy.
But the answer is like you haveto tell the seller, like, hey, I
need to make money.
Like, I, in order for me to goout and do what I need to do as

(13:18):
a wholesaler, I need to buy thisat a better price so I can be
able to sustain my marketing, myoverhead, my my life.
I need to be able to eat andhave electricity and a place to
live and a car.
Like, you have to make money.
And there's nothing wrong withtelling people this.
The expectation is when you dobusiness with somebody else, you

(13:39):
believe that they're makingmoney and they're going to be
profitable.
We need to do the exact samething.
So we need to be setting thatexpectation when we're making
our offers.
Newer wholesalers sometimes areafraid to talk about that.
Like, hey, that's not that's notenough margin in there for me as
the wholesaler.

(13:59):
Um, it also probably comes backto lack of transparency with a
seller, not wanting to tellpeople that you're the
middleman, being afraid youwon't get the deal.
Transparency is an extremelyvaluable tool because it allows
you to talk about things likethis.
I think you need to make money.
All right, guys, that's ourepisode of the King Closer
Reacts.
We got back to it.

(14:19):
We went back to our roots inwholesaling this week.
And oh man, we came out of thegates firing.
60k bangers guaranteed everysingle time.
I can't wait to see that guy gettagged in the post below.
But hey, brother, 10x that shit.
300,000, 600,000.
Fuck it, man.

(14:40):
Go get bigger deals.
Let me know what you think inthe comments.
Make sure you like the video.
We'll see you guys tomorrow.

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These Wholesalers CAN'T Be Serious! | The King Closer Reacts

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