Wholesaling in 2025 Is Totally Different Now!

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Over 10 years in the real estate investing business
Closed deals in all 50 states
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​125 contracts in 50 days (all live on YouTube)
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Episode Transcript

Speaker 1 (00:05):
Hey guys, welcome back to the King Closer Reacts.
I am the King Closer, rj BatesIII.
This is the series where Iwatch a bunch of YouTube shorts,
tiktoks and Instagram reels tosee if I agree or disagree with
the takes.
Let's get into the first video.

Speaker 2 (00:20):
Wholesaling in 2025 isn't what it was last year.
Here's what's changed.
Sellers are savvier.
Now your pitch needs to evolve.
Buyers want real deals, notinflated junk.
You need systems like a CRM,lead flow and follow-up
sequences.
It's no longer hustle only.
It involves skill and strategy.

Speaker 1 (00:41):
It involves skill and strategy, all right.
So wholesaling in 2025 has notchanged at all since 2024.
You always needed a goodclosing script formula, whatever
.
You always did that, and also,as a wholesaler, your job has
always been to provide gooddeals.

(01:01):
I don't know any buyers thatwere ever willing to just take
junk deals, so I'm going to hardpass on this take, because
that's always been the case.
You always needed a CRM.
You always need to follow up.
You always need good systemsand processes.
Get out of here.
Nothing's changing 2025.
It's the same old story.
We're just doing the same thing.

(01:22):
Come on now.

Speaker 3 (01:23):
Think your contract is airtight?
Think again.
Here's the dirty little secret.
Many contracts completely skipover key property issues.
Sellers often fail to disclosemajor defects like foundation
cracks or asbestos.
That's not just risky, it's alawsuit waiting to happen.
And guess who's stuck with thefallout?
Both the buyer and seller.
Smart sellers use acomprehensive waiting to happen
and guess who's stuck with thefallout?

(01:43):
Both the buyer and seller Smartsellers use a comprehensive
disclosure addendum.
It's like a tell-all for yourproperty Defects, repairs and
even maintenance logs.
It reduces legal risk, buildstrust and makes deals way
smoother.
Transparency wins and it'ssomething most people totally

(02:04):
overlook.

Speaker 1 (02:12):
Want in on the smart seller secrets.
Biotime Think your contract isairtight?
Hey, not all AI is good.
Okay, if I ever start talkinglike that guy, please, please,
put me out of my misery.
Okay, all right.
As far as sellers disclosures go, yes, in a normal retail

(02:37):
transaction that is required andshould be mandatory, and you
should want to do it.
I'll give a quick story.
We flipped a house in Anchorage, alaska, and we got sued
several months after we've soldthe flip.
The reason why we got sued isbecause of exactly the example
they gave right there tracks inthe foundation.
Funny enough, there was anearthquake that happened on the

(02:59):
property after we sold, but inthe seller's disclosure we never
disclosed that there was anyfoundation problems.
So the buyer actually came backto us and tried to sue us
saying that there was previousfoundation issues.
Now, that being said, seller'sdisclosure was signed and filled

(03:19):
out correctly by us and we wonthe lawsuit.
We didn't have to pay anything.
So no harm, no foul.
But that seller's disclosure iswhat protected us.
So if you're flipping a house,doing a wholetail or even a
novation, you need to make surethat you do a true,
comprehensive seller'sdisclosure.
In a wholesale transaction,though, it's not as important.

(03:39):
Listen, we're buying theproperty as is, whereas it's
expected that there's going tobe things wrong with the
property.
So this is not necessarily truefor wholesaling.
What do you do for work, boss?

Speaker 4 (03:50):
I wholesale real estate.
You go out and you find adistressed property.
You get it under contract andthen you find an investor or
somebody that actually wants todo the work to it or buy it to
rent it out and you assign thatcontract for a fee.

Speaker 3 (03:58):
What are the three biggest mistakes someone should
be aware of while going intothis business?

Speaker 4 (04:03):
Spending too much money on marketing.
People spend a lot of money onmarketing when they don't know
what they're doing.
Being lax on sales calls.
You've got to be high energyand you've got to be trying to
actually solve somebody'sproblem, not just trying to get
the deal.
And then, third, I'd say it'smaking the business harder than
it is.
It's really not that hard.
You're going out, you'refinding a property that is in
distress, you're helping the Ilike this take.

Speaker 1 (04:30):
I do have a question, though why do all of us that
ever create these reels whereit's like an interview style,
like I got something superimportant to ask you right now,
like what do you do for a livingand what are the top three
mistakes?
Why do we talk so fast?
Why do we?
Why is it like, oh, you got todo this.
Don't spend too much onmarketing and don't relax on
your sales calls and don't makeit harder than it actually is.

(04:53):
All right, bro, just deliver itcalmly, smoothly.
I do the exact same thing, soI'm just busting balls, but I
will say spending too much onmarketing.
Yeah, I also think there'sanother problem in the industry
where people don't want to spendany money on marketing.
Right, I talk about it all thetime.
We're in the golden age ofwholesaling.

(05:14):
You can go in and get leads $29, $30, $35.
We show it all the time TUstudents closing deals, I'm
closing deals and people go,yeah, but RJ, cold calling is
cheaper.
I see that a lot more thansomeone coming in and being like
, yeah, but screw PPL, I want todrop 25 grand on direct mail.

(05:38):
Like, where are those?
People don't actually exist.
If they do.
They're probably old dogs.
They've been around for a longtime.
They believe in these oldmethods.
But I think that's more of anissue than spending too much
money on market Now.
As far as the sales calls theclosing yeah, we need to improve
as an industry.
I'm fixing that problem.
And then the last oneovercomplicating this business.

(06:01):
Yeah, I'm fixing that problemtoo.
So don't worry, man, I'm fixingall the problems for you.

Speaker 5 (06:06):
To be so honest with you, I love working with
wholesalers.
I love the hustle that I seewithin them.
I love the spirit in their eyes.
I love them going out there andgetting those deals and making
those connections and thosecommunications with people Like
I absolutely love.
I'm an account executive atLegacy Title and I am in the
Keller Williams Metro location,so I deal a lot with real estate

(06:30):
as far as residential is what Iprimarily focus on, but one of
the things that I really thriveon and thrive in is that
wholesaler entity part of atransaction.
So when I get to be able to getmy hands in there and get them
dirty and clear that title andfind out what's going on with
that deed.
And finding out what's going onwith that deed and finding out,

(06:51):
you know, what's going on withthe other individuals that are
involved in the transaction.
That's the putting the puzzletogether.
Getting those pieces to theclosing table awesome and also
acknowledging that, yes, anassignment transaction, yep, um,
we do want to make sure thatthere's not a lot of visibility
for that with all the eyes inthe transaction hey, shout,

(07:14):
shout out to this lady at LegacyTitle.

Speaker 1 (07:16):
She loves us wholesalers, which is awesome.
We're always looking for titlecompanies that want to work with
wholesalers, but outside of thetake.
Listen, you know I like to befunny every now and then.
Maybe I'm just in a humorousmood, but that was pretty funny
when she's like I like to get myhands in there and get dirty

(07:36):
and he's like oh yeah, is this areal safe short or what?
What just happened?
Where did we go with this?
But listen, finding a goodtitle company like that that
understands what we're trying toaccomplish.
I love the fact that she waslike hey, the ones that are
dirty, that you know we'reneeding to solve a title issue,
I like doing that.

(07:57):
That's what you need inside ofa title company and with your
escrow officer.
If they don't want to work withus, it's fine.
There's plenty of those titlecompanies out there.
If you want to learn whichtitle companies I use, right
down in the description therethere's going to be a free PDF.
Go down into the marketbreakdown.
Click on that link.

(08:17):
Download it for free.
I don't even think you have toopt in for it.
Just click it and download it.
Use those title companies.

Speaker 6 (08:23):
I started my journey in Maryland.
Maryland, like New Jersey.
We call them blue states.
Don't care about politics atall.
Okay, don't care about politicsat all.
Okay, don't care about gangs.
So it's not about blue and red,but blue states.
Typically, they can take up tolike two years to foreclose on a
salary.
You can talk to a seller thathaven't paid their mortgage
since 2010 and they stillhaven't gotten foreclosed on and

(08:44):
they'll tell you yeah, if yougive me 500 for my house that is
worth 100 000, then I'll sellit to you because they know they
have all the time in the world.
Red states like Arizona, herein Georgia, texas, north
Carolina they're superaggressive Three months in
general, you're out of the house.

Speaker 1 (09:04):
Hey, he's right.
I mean, there is a differencebetween blue states and red
states and, like he said, it'snot about politics.
But it is about politics.
I mean, listen, in some ofthese locations they're not
landlord friendly.
Right, this is where you end upwith squatters.
You talk to the tired,distressed landlords where
they're like I've got a squatterin there, they're not paying

(09:26):
rent and there's nothing I cando about it, and they end up
just living in there for monthsand months, maybe even years on
end.
Same thing with these preforeclosures.
I say this all the time with usspecifically now utilizing PBL.
Okay, and if you're going in andyou're using like speed to lead
, where it tells you theseller's motivation prior to
purchasing the lead, financialreasons, on the surface sounds

(09:51):
like a great reason to buy thelead or even pre-foreclosure.
However, pay attention to whathe's talking about.
The blue states, right?
The Maryland's, the NewJersey's, the California's, the
Oregon's Should we buy thoseleads?
I don't know, because justbecause a seller is in financial

(10:14):
distress does not mean thatthey need to sell the house for
a discount, like I actually takea pretty strong stance on this,
opposite of what Pace says,which Pace says if I were
homeless and on the streets andI had nothing but my shoes and I
had to start over.
The first thing I would do isgo after pre-foreclosures.

(10:35):
The issue is you're going torun across a bunch of people
that say actually, my financialdistress has got me in a
position where I need tomaximize what I sell this house
for, not sell it for a discount.
I would rather go to someonewho has either come across
emergency reasons that they needto sell something has happened

(10:56):
in their life they need to sellthe house quickly or inherited a
property and knowing that ithas physical distress elements.
This is why I love PPL andspecifically Speed to Lead,
where I can see that informationup front.
There's plenty of times whereI'll see financial reasons.
Pre-foreclosure house is ingreat condition.

(11:16):
On the surface that screamswell.
I can just buy the house subtwo, I can walk into it, it
doesn't have any repairs and Ican have an exit strategy of
either a quick flip or hold itas a rental.
That doesn't mean that theyneed to get rid of the house
quickly or for a discount.
So pay attention to this.
Look for those more motivatingfactors that scream speed and

(11:42):
convenience, because that's whatwe offer Emergency reasons
tired landlords, vacant,non-occupied houses.
This is what leads to moreclosed deals than financial
reasons or pre-foreclosure.
All right, guys, that's ourepisode of the King Closer
Reacts.
Let me know, did I do a goodjob or did I sound like these

(12:02):
goofballs on the rest of theinternet?
If I did ignore it, I'll dobetter next time.
Like the video, anyways, andtell me how great of a host I am
on the King Closer Reacts.
We'll see you, guys, next week.