Why Small Real Estate Deals Can Change Everything!

Episode Transcript
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Speaker 1 (00:06):
Welcome back to another deal review.
Today we're going to be talkingabout how we made an itty bitty
, tiny little assignment fee inIowa Park, texas, but how that's
irrelevant because of the nextdeal that we did, because of
this one.
Now I talk to you guys all thetime about the importance of
establishing a relationship withyour end buyers, but I think

(00:31):
we're still not giving it enoughattention and we're not
establishing those relationshipstruly.
See, we still talk about what'syour buy box and that's not
what I'm saying aboutestablishing a relationship with
your end buyer.
So there's going to be a liveseller call at the end of this
video.
All right, now I want you guysto pay attention to that, but

(00:52):
that's going to come after Irant and rave about what
happened on this deal.
So about a month ago, I gotabout 30 or so leads from
property leads and I went liveand I spoke to sellers and I got
four signed contracts and Icome out of my office and I'm
feeling myself and my team, youknow high five.

(01:12):
Great job, rj.
All right, yeah, king, closer,always locking up deals.
And then they were like butseriously, rj, you locked up
four contracts and we alreadyhave our own deals to dispo.
We're already working on theseover here and you just stacked

(01:34):
on four and see, we've got thisflow that goes on.
Because see, the guys that dodispositions, they're dispoing
their own deals that theyacquired, they're dispoing their
own deals that they acquired,and so they're like man, is

(01:54):
there any way that maybe we getJV out one or two of these deals
?
I'm like, all right, all right,here's what I'll do for you.
Iowa Park, texas.
We've never done a deal in IowaPark.
In fact, I had never even heardof Iowa park, texas prior to
this lead.
I found out it's just rightoutside of Wichita falls where
we had done deals.
It's not like we have a knownbuyer for Iowa park.
So I was like listen, bradenand Abby inside of titanium

(02:21):
university.
They're great at this point.
Deals all across Texas, greatfeedback inside of the
university.
We've never done a deal withthem.
We've known them literally.
We met them one year ago atKylo's event in San Antonio.
So it's like why don't we reachout to them and have them do
the dispositions on this deal?
So I do.

(02:42):
Braden and Abby were such a joyto work with.
I'm so proud of what they'vebuilt in their wholesale
operation over the past 12months.
And listen, I reach out toBraden.
I'm a horrible JV partner.
I'm like hey, bro, lock thisdeal up.
I don't have pictures, I ain'tgot nothing.
Here's the address, here's thenumbers, here's what I saw Sling

(03:04):
it.
I would not pass my owncriteria to be a JV partner.
I can promise you that.
All right, but Brayden and Abbywere awesome to work with and
they start doing their thingright.
They send this out to theirbuyers.
They're working it.
We get showings, we get offers,but all of the offers were just

(03:27):
slightly below what I locked itup for and I'm like well, I
mean I can go back andrenegotiate.
But Braden was like not yet,not yet, let me keep working
this.
Now the thing that happens whenyou do rural dispositions is
that the known buyers in thatarea they know they're few and
far between They've got you outleveraged.

(03:50):
See, this is what makes ruraldispositions difficult.
It's not that there aren'tbuyers, there's almost always
buyers.
It's the fact that they canlook at you and say you need me
more than I need that deal.
In fact, I can just sit backand wait for you to terminate
that deal because I know I'm oneof three buyers in the city and

(04:12):
I can go get it.
So you're out leveraged, unlessyou're a part of a community
where you can get the buyer thatthey never even knew existed,
which is what Braden and Abbydid here.
They went up to Canada to getold Claude from Titanium

(04:33):
University.
Now he's a known buyer.
We know that, and it made melaugh when we assigned this to
Claude because I was like ofcourse he buys this deal.
I should have known he wouldbuy this deal.
However, the reason why Ididn't know Claude would buy
this deal is because I hadn'tbuilt that relationship with him
yet.
I knew he was a buyer, but wehadn't really had that

(04:56):
conversation yet about what ishe trying to do inside of his
business.
So Brandon and Abby send thedeal.
He takes it boom, signedassignment, does his inspections
, earned his money, deposited itclosed and funded, I think
Monday of this week.
Okay, so done deal.
However, right after theassignment signed, claude hits

(05:17):
me up and he says hey, man,looks like we got our first deal
under our belts.
What else do you got cookingLiterally one of the best things
you could ever hear from an endbuyer, right?
So Claude and I hop on a phonecall and we start really talking
about his business.
Now, this isn't how manybedrooms and bathrooms and
square foot are you looking for.

(05:38):
It's talking about how are youfunding these deals?
What's your exit strategies?
Why are you doing this Likereally getting to understand
what is he trying to accomplishin his business?
It's not about us as thewholesaler.
It's about finding out what heneeds so we can produce that for
him.

(05:59):
So from this little tiny $2,500assignment in Iowa Park, texas,
I find out exactly what Claudeis needing in his business and
what he's looking for.
One of the things Claude waslooking for was a new funding
source because he is in Canadaand so funding these deals in
America does come with somelittle hurdles that he has to

(06:21):
overcome.
So I connected him to anothertitanium university member,
jeremy Demers, who is a lender,and they started having great
conversations and they came upwith a lending package for him
and a plan on how he can succeed.
Which what does that do?
They gave him more money.
The other thing is, I found outexactly what Claude's looking

(06:43):
for, and the Iowa park dealreally wasn't what he was
looking for.
It was just kind of the pricepoint and getting below current
market value and he feels likethere's a spread that can be
made there.
So it's an okay deal.
But Claude likes to make moremoney.
So we start talking about this,and I know he loves to do
wholetails, I know he loves todo creative finance and I know

(07:04):
he loves land.
But the next deal that myacquisitions team got was in
Tennessee, not nowhere close toIowa Park, texas, nowhere close
to say, bedroom and bathroom,counter, square footage or
anything.
But it did meet what Claude waslooking for in a deal, and my

(07:26):
team knew that.
Why?
Because I relayed theinformation from my conversation
with Claude and said hey, team,this is what Claude's looking
for, let's go get him some moredeals.
So, funny enough, our team chatgoes off hey, tennessee just
signed the contract.
Boom, great job.
Touch 80 and flex yeah, we'renumber one.

(07:48):
Simultaneous to.
While that's happening, I'mwatching a hockey game.
Claude sends me a text message.
He's got a question.
I shoot him a response and Ilet him know hey, apparently you
are about to buy a deal from usin Tennessee.
And he's like oh, am I?
I was like yeah, here's theaddress, here's the numbers.

(08:12):
Claude's like let me look at it.
Boom, he had three questionssomething about the park across
the street, the lot side, hoa,some just random questions.
He tried to negotiate.
We went back and forth a littlebit of give and take.
Boom Done Signed an assignment,earned his money deposited, and

(08:33):
we're going to close later thismonth.
Now we're going to make a lotmore money than the $2,500 we
made on Iowa Park.
Here's why this is important,though, because it's not even
about this one deal in Tennessee.
It's about the relationshipthat I now have and all of the
deals moving forward that I'mgoing to do with Claude, and

(08:53):
Claude is great as an end buyerabout building relationships,
but as a wholesaler, you have tobe willing to accept it.
The other thing that you haveto be willing to accept at times
is that the deal that you gotunder contract only warranted a
$2,500 assignment fee, so maybethe next one could be a $10,000,

(09:14):
a $20,000, a $50,000 assignmentfee.
You earn that during theacquisitions phase, not during
the dispositions phase, becauseyour end buyers are going to
tell you what they can do andwhy, and you should understand
that during acquisitions.
This is why we preach.
It's not about a maximumallowable offer.

(09:37):
It's about understanding whereyour end buyers buy and why and
how you can continue to produceresults for them.
That is how you build asustainable wholesaling
operation.
So you guys can watch the sellercall now.
It's about eight minutes.
It's a pretty decent call.

(09:58):
But at the end of the day themost important thing was this
lead and this contract led to megetting a deal done with three
different titanium universitymembers Brandon and Abby check
first.
Jv done deal.
Claude first deal bought from meand it warranted the
conversation where Jeremy nowgets to fund a vast majority of

(10:23):
Claude's purchases movingforward.
That is a win win, win winsituation.
Jeremy won, braden won, claudewon and the seller won in Iowa
Park and you're going to hearthis is an inherited property.
It was an emotional experiencefor him so I'm happy that we
were able to help him out.

(10:43):
And now a deal in Tennesseewhere a gentleman is financially
distressed he's having a lot goon with his life is getting a
win done there.
We're going to make more moneyand Claude gets another deal and
Jeremy gets another loan.
That is how you win when yourun a wholesale operation.

(11:04):
So enjoy this live seller call.
Show me some love in thecomments, make sure you like the
video.
We'll see you guys on the nextone.
Enjoy this call, hello.

Speaker 2 (11:15):
Hello.

Speaker 1 (11:16):
Hey, is Donald there?
This is Donald.
Hey, Donald, this is RJ Batescalling about your property
there on Ruby Avenue.
Look like you filled out a formon my website saying that you
were looking to sell thatproperty.
I did Awesome.
How much were you looking toget for that?

Speaker 2 (11:35):
I don't know.
I was going to wonder if youprobably just had to look at it
and see what you think.

Speaker 1 (11:44):
Okay, you didn't have a number in mind.

Speaker 2 (11:47):
Not particularly.
It needs remodeling.

Speaker 1 (11:53):
Okay, what all needs to be fixed up on it?

Speaker 2 (11:59):
The roof.

Speaker 1 (12:01):
The bathrooms are redone bathrooms have been or
they need to be.
They need to be so like justcosmetic and then a roof.
Anything else?

Speaker 2 (12:17):
major system wise uh, probably, I probably just need
a complete remodel.
I would think.

Speaker 1 (12:29):
Okay.

Speaker 2 (12:30):
Including like electricity and plumbing, or is
that functional?
The electricity's fairly good,it's actually.
I think it's still on.
I think it's still on.
Yeah, the electricity's good,the plumbing's really, really
out of date.

Speaker 1 (12:48):
Gotcha, so it needs a lot.
Yes, sir, Is it vacant rightnow or is there somebody living
there?

Speaker 2 (12:58):
It's vacant how long has that been vacant For?

Speaker 1 (13:08):
about almost a year, probably, was it a rental
property before?

Speaker 2 (13:17):
No, not really.
My mom lived there and then mybrother-in-law lived there for a
couple of years and he passedaway.

Speaker 1 (13:25):
Okay, I'm sorry to hear about that.

Speaker 2 (13:28):
It's been a year ago now, Actually.
My sister and my brother-in-lawlived there and they both
passed away.
Jeez, it's been a while so isit like?

Speaker 1 (13:47):
did you inherit it or did?
Were you the owner of thatentire time?

Speaker 2 (13:53):
I inherited it, gotcha, it's, it's.
I inherited it through, but II've got five brothers and
sisters, one deceased, but Ihave the.
I had to go through and get thepower of attorney and I have
the right to sell Right, soyou're the decision maker.

Speaker 1 (14:11):
Yes, so, taking a look at, like, the square
footage and the age of the home,I mean it, based off what
you're telling me, it soundslike it's going to need a lot.
What you're telling me, itsounds like it's going to need a
lot, um, it's kind of thereason why you're reluctant to

(14:32):
kind of name a price because, um, because of the condition and
kind of you don't know what it'sworth at this point correct.

Speaker 2 (14:39):
Yeah, I'm hoping around around 30 000, but you
know that you may say no way orthat's a good deal.
I'm not a construction person.
I mean it's one of those whereyou're probably going to have to
put $25,000 or $30,000 in it,like $25,000 or $30,000, but
that's still a big investment.

(15:00):
First, it depends.
I'm not that person Understood.

Speaker 1 (15:11):
I was going to tell you I am a little bit below
$30,000.
One of the benefits that if youwere to go with us would be
that the number that I tell youis a net number.
There's no commissions orclosing costs or anything like
that.
The only thing that you wouldpay would be whatever is owed on

(15:31):
the property.
So there's no doubt on it,Gotcha.
So this would just be a netnumber, but I was.
I was actually coming in around15,000.
Is actually coming in around15,000.

Speaker 2 (15:49):
I think it's worth 20 because it's on a lot.
Like I said, there's still agood margin for profit on that.
What I got to do is I have to.
I don't got a self-reliance, Iknow that, but I have to make an
attempt to get as much aspossible.

Speaker 1 (16:08):
Yeah, legally I'm buying two I got you, I think
it's worth $20.

Speaker 2 (16:13):
I think you can make your money because it's big
enough where you know that'skind of a plus.
It's big enough where you'regoing to get some good money for
it.
But you've got to put a littlebit more into it.

Speaker 1 (16:29):
But it's pure beam, so it that makes it a lot easier
for a lot of stuff.
I know, okay, you said it's ona lot and a half.
Let me look at this.
So at least maybe two lots, I'mnot sure.
Okay, I see it now from the upabove.
So is that a garage off to theleft right there?
Yes, okay, there's no addition.
Right, it's still 1890 squarefeet.

Speaker 2 (16:57):
I don't know the square footage, it's at least
that.

Speaker 1 (17:00):
Okay.

Speaker 2 (17:02):
Yeah, that's probably pretty close.
Yeah, that's probably prettyclose.
I mean it's yeah, that'sprobably pretty close, it's
probably rather too.

Speaker 1 (17:15):
So, in regards to you selling the property, you have
the right to sign a contract,but then do you have to present
it to the court?
I do not Okay.
You have the right to sign acontract, but then do you have
to present it to the court?
I do not, okay, all right, letme look at one more thing.

(17:42):
All right, if I say I do 20, dowe have a deal?

Speaker 2 (18:16):
Yeah, I'd say so.
What I have to do is I have toput that check in an account
that's set up for my dad.
He's passed away, so it's withme.
They can earn of it.
I would do that.
I'd do 20.

Speaker 1 (18:31):
Okay, I have your email.
Okay, all right, I'll send overour agreement for the 20,000,
which is a simple two-pagecontract.
Once you sign that, then we'llneed to go out there, we'll want

(18:54):
to do a walk through theproperty, inspect everything,
and I'll go ahead in themeantime, open up title and once
that's clear, we'll probablyget it closed in the next three,
four weeks.
Okay, okay, all right, donald.
Well, I appreciate you.
My name is rj bates company'stitanium investments, based out

(19:15):
of fort worth, texas, here.
So I'll get that sent over toyou here in probably about 10-15
minutes, okay okay, you goingto put that information you just
told me on the email.
Yeah, you said, do I have theinformation?

Speaker 2 (19:31):
No, what you just told me.

Speaker 1 (19:33):
You said your name was RJ, but you're going to put
that on the information youemailed me yeah well, it'll be
on the purchase contract, soit'll show my company name as
the buyer and then you'll see mysignature down at the bottom of
the contract.

Speaker 2 (19:47):
All right, that sounds good.

Speaker 1 (19:49):
All right, donald, I appreciate you.
Okay, thank you, bye-bye,Bye-bye.

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Why Small Real Estate Deals Can Change Everything!

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