Confront failure head-on. How do you handle real estate investing and wholesaling most daunting obstacle. With a candid recount of discussions I've had with students in our community, I unveil the real score of failures versus successes—how those countless setbacks are stepping stones to the wins we cherish in our industry. This solo episode peels back the curtain on the fear of failure that many investors face, offering a fresh perspective and a personal touch on how to harness those experiences as catalysts for growth.
This podcast is a rally cry for real estate investors and wholesalers who've been weighed down by the gravity of flops and fumbles. I lay out the stark figures of our trade, where successes are but a fraction of our efforts, and why that's not merely acceptable—it's expected. I share the tools to recalibrate your mindset, revealing the art of efficient failure management and the secret to bouncing back with more vigor. For those in the trenches of property deals, this episode is a treasure trove of actionable insight, empowering you to leap over hurdles and steadfastly chase your business aspirations.
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What's up everybody. Welcome to the titanium vault. I'm your host, rj base the third, and today I'm flying solo. I had a message to start the new year for you guys and it's a message about failure. So today I had someone stop by my office. I had an opportunity to talk to a couple of students inside of our community and there's these conversations about failure and it getting to them and it impacting their ability to succeed, to want to continue to have that drive, to continue to talk to sellers and try to solve problems and wholesale properties.
Speaker 1:
What we do on a daily basis. Right, and what was interesting is, as I continued to dive deeper into their failures and why they were feeling like they were failures, it's because they were not understanding what happens on a daily basis inside of our business is more failure than success. Success is actually a very small part of what we do as real estate investors. So let me break this down for you. Utilizing the best, the number one lead generating tactic we have right now, which is lead solo inbound YouTube ads, where it's a paper lead model, we're paying like $100 $129 per lead. Let's say we buy a hundred of those and we're absolutely crushing it. We're closing one out of every 10 just using a round number. Okay, so we buy a hundred, we get 10 contracts out of those 10, but let's assume 70% of those make it to the closing table. So we get seven successes. That means we got 93 failures. And here's the thing sometimes we get so wrapped up in the three terminations that we forget about the seven successful closings, and that's on the best lead generation tactic that we have right now. If you dive deeper into let's pull data and let's cold call, you're talking about thousands of failures to get to a success. If you're gonna go even deeper to direct mail, you're literally crushing it. If you've got a 1 to 2% response rate, which means 99% of your list is not even gonna communicate with you, 99% of the postcards and like letters that you're sitting out there not even going to respond to you.
Speaker 1:
Our business is founded upon dealing and handling failures. You have to understand that failure does not mean that you're failing. It's how quickly can you move past the failures and be efficient with your time, your effort, your energy and your resources to find the successful moments. This is what enables successful wholesalers. They don't sit there and ponder upon their failures, they're moving on from it quickly and efficiently and they're finding a way to say okay, I know for a fact that we're going to have a fallout rate somewhere between 30 to 40%. That's an average nationwide virtual wholesalers contract to close fallout rate. Okay, hey, 30 to 40% of the contracts we're gonna get are not gonna close. Why? Because the property conditions gonna be worse than what was anticipated. There's gonna be title issues. We're not gonna be able to find a buyer.
Speaker 1:
Whatever the reasons are, you cannot get stuck on that. You have to find a way to disconnect yourself from that failure so you can continue down the path to find your success. Otherwise, you are forever gonna get stuck on it in your. Your small failures will inevitably become the ultimate failure. Here's the thing when I look at our business, I'm never afraid to fail. Whether it's a marketing campaign, whether it's dollars that we're investing into the business through hiring a virtual assistant, an actual assistant, a transaction coordinator, whatever it is, we have a commitment that we make to that. The failures that come along are opportunities for us to get better, not to move away from whatever commitment we made.
Speaker 1:
So often I hear people watch my videos. They watch me close deals live, utilizing lead, zolo, speed lead. Going back to the texting days with batch leads, they decide they want to try to replicate that Because initially, right out of the gates, they don't see the same types of success. They taste a little bit of failure. Instead of learning from those failures, they give up on the opportunity that was presented to them, the opportunity to learn from those failures and ultimately find the success. Or, mindset-wise, they can't overcome the fact that their business is riddled with failure. That is, by nature, what your business is going to be consumed by as a wholesaler. It's just numbers. We have a saying here at titanium investments it's math, not magic. It's the same thing here. Anytime you make an investment into a lead generating tool, a system, a new hire, whether just personnel, hr, whatever it is, there is math associated with that investment. You have to understand that ultimately it's not always going to win, so the failures are going to be there.
Speaker 1:
So the day's message is that failure does not have to be your ultimate failure. It's not the destination, it's part of the journey. How you handle that, how you overcome that, is imperative to you ultimately finding the way to succeed and not allowing that to become toxic to your mindset, your ability to get on the phone and talk to other sellers. Part of my message today to those students inside of our community was is so a termination in the middle of nowhere, alabama, that ended up being a tear down property and had no lot value, impacted your ability to talk to another seller that can be losing their house due to pre foreclosure, back taxes, a lien, bankruptcy, whatever it is. There's no way that that should have impacted your ability to continue down that path. That's just part of the game that we play and you have to find a way to overcome that, no matter what.
Speaker 1:
One failure does not mean ultimate failure. Failure is part of the journey. Think about that. Failure is part of the journey. It's part of what we do inside of our businesses and, honestly, it's part of what makes this enjoyable. It's part of what makes this a business that many cannot do. I am not one of those guys that says, hey, every single person out there should wholesale real estate. I don't believe that. I believe that there is a skill set that is involved with this problem solving skill set the ability to overcome failures, the ability to sit there and run numbers on properties. Some people are just flat out not good at math. They want it to be magic, but it's not so.
Speaker 1:
Ultimately, when you are looking at your business and you're struggling and you're having failures, look back at it and under like, have you really given yourself the opportunity to see is this strategy, is this marketing campaign actually failing, or is it the fact that a simple small failure that should have been anticipated, paralyzed me, hindered the rest of the campaign's ability to perform, to succeed? Case in point I said hey, lead Zolo, 100 leads In the past month. I have, no joke, talked to at least 20 people that have said, hey, I bought some leads from lead Zolo. I've gotten about 10 and a lot of them are rural and I'm struggling with comping and there's no buyers. Does this strategy actually work? You've only had the opportunity to talk to 10 people. That is not enough. You would never say you pulled a list of 100 people inside of backslides and skip tracing. Cold call them. That that's enough people for you to understand if cold calling works or not. Why? Because the math tells us that failure is to be anticipated with this business and there's not enough data for us to understand that the campaign is failing or succeeding. So don't let these small failures keep you away from your ultimate goal, what you're trying to achieve, because that small failure does not mean it is ultimately you failing across the board.
Speaker 1:
That is the message I wanted to get across to anyone that is listening to this, because I'm seeing it specifically today. Maybe it's the start of the new year, maybe it's just hey, the message of RJ's going out doing these paper lead models and he's getting one out of every seven leads is a contract. But it's like I told them I don't ever stop what I'm doing because I'm worried about hey. That contract fell out. We had to terminate. There was tidal issues, we weren't able to find a buyer. That will never stop me. Failure is part of running a business and specifically running a wholesaling business. It's a massive part of what we do. You have to find a way to be okay with failure so you ultimately don't fail. Let me know if this message resonated with you.
Speaker 1:
I kind of got away from the solo podcast here for a while. I've been having a lot of guests come in and do those interviews, but I know that you guys love these types of messages. I've seen the comments. I've seen people tagging me in post and saying, man, thank you for actually talking about this because, ultimately, these small little mindset shifts can be what take you from flopping around searching for unicorns, utilizing all these different marketing efforts, changing systems, not finding any consistency, and just understanding, hey, just be okay with a little bit of failure in your business. It's to be expected. If you liked today's episode, leave us a five star review. We're gonna get back to the interviewing people. I know you guys like those, I like those. I love hearing what other people are doing to succeed in their business, so we'll get back to those, but today's message failure is failure. It doesn't have to be your ultimate destination, though. Just enjoy the ride and learn from it. We'll see you guys next week. Thank you.