The Titanium Vault hosted by RJ Bates III

The Golden Age of Wholesaling Real Estate

• RJ Bates III • Episode 334

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I just finished my first ever Acquisitions Week, where I went live everyday with a new lead generation tactic for acquiring wholesale real estate deals...

And I am more convinced than ever before, we are in the Golden Age of Wholesaling Real Estate!

Watch me recap the stats from the first ever Acquisitions Week and also the specific reasons why I feel this is the Golden Age of Wholesaling Real Estate!

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Speaker 1:

What's up guys? Rjbase, the third here, and welcome to the golden age of wholesaling. I've been talking about this for a while, but in today's video we're going to take a deep dive into why I believe that and I'm going to back it up with facts. So we just got done with our first ever acquisitions week seven days in a row of us doing live acquisitions and really deep diving in all the different ways that we do lead generation and why I feel now is the best time in the history of real estate to be doing wholesaling. And it's funny because I got started in 2014, which most people would consider 2014, 15, 16, the best time in wholesaling history. And there's a reason why they build that way. It was really easy to dispo deals. Everybody was looking for flips. The appreciation was coming up on properties. It was easy to acquire deals. Listen, when I got started, I got taught how to buy deals off of the MLS and we were wholesaling deals off the MLS Our first year. We did $750,000 in assignment fees of deals off the MLS. I don't think, even with a decade of experience today, I could do that in today's age, but it's not necessary. So here's what I mean by this Technology has caught up to the wholesaling industry. See, we've always been behind the times. We always did these old and antiquated forms of lead generation and marketing and that's what really kind of held us back as an industry. And now we're seeing companies come along these PPL providers, these dispo companies, these comp providers coming along that have really just sped up the process.

Speaker 1:

Classic example of why I feel like we're in the golden age of wholesaling is what took place on Saturday. You guys have not watched the video that we released yesterday, which is Cassie closing a deal and one dial. Okay, now let me break this down. We show you guys closing deals on one dial all the time on this channel, more so than any other channel on YouTube. Okay, so that's not the sexy part about this. That's not what makes this the golden age of wholesaling. What makes it the golden age of wholesaling is it's really seeing behind the scenes of what got to that close. So Cassie came to the office here at Titanium Investments Saturday afternoon at 4 pm. Okay, she bought three leads for a total investment of $427 and in less than 90 minutes had a signed contract. Now I know without a shadow of a doubt that just was not possible because we could do that pretty much at any point in time. We want to inside of our business right now With these PPL providers, nationwide comp services, the ability to know where our end buyers buy anywhere in the country. Because of investor lift and deal speed and all of these different things that exist nowadays, we're able to do this anywhere in the country. That's why I feel like we're in the golden age of wholesaling.

Speaker 1:

So let's talk about the results of the initial, the inaugural, acquisitions week. Okay, so Monday through Friday, I went live for somewhere between two and a half to three hours every single day with a different form of lead generation. Now, monday was the hardest day because I wanted to spend zero dollars marketing. All right. Now we were successful in that. We were able to generate two really solid leads from Fizbo's on Zillow. We were able to get a signed contract off of Hubzu, which is an auction site, and then we got a direct to seller contract from just searching for properties that existed on InvestorLift.

Speaker 1:

Now I was thinking, going on to InvestorLift, that I was going to find a wholesaler and then JV the deal. But I actually found a property that was listed for sale on InvestorLift that they owned and they were just looking to sell it because they were an overwhelmed flipper. Now, this is a great avatar for us. It's an investor. The numbers already exist. So it was a very simple conversation for me to have. What's the after repair value? What's the repairs? Why are you selling it where you're selling it? Okay, cool, this is a great deal. Let's go ahead and lock it up.

Speaker 1:

So that was on day one, using $0 in marketing. Now I will say back in the day, 2014, 15, 16, all of those things existed. Fizbo's existed, pubzoo existed, investorlift did not. That one would not have been able to do, but still the other ones did exist. Now, everything after that did not exist. Okay, so property leads a PPL provider, pay per lead. So they're running their own Google pay-per-click Facebook ads, youtube ads, and then they've got a spider web of SEO sites all across the country that generate a ton of leads and then they sell those leads just individually to people like us. So I got 30 leads there and I was able to get really two great connections. One was a Novation offer and another one was a novation offer. Another one was a sub two offer.

Speaker 1:

Now, later on in the week, the novation offer did say hey, we don't want to sell. I didn't embrace no well enough on that conversation. That was probably the conversation it was. It was a really good one. It was great for content purposes to hear me break down the novation offer, uh. But if I was grading myself I should have embraced though, because the first question that we always ask sellers is are you still looking to sell that property? And she said maybe we're thinking about it, we haven't decided yet. And that's what ended up being the detrimental part about that lead. I spent like 45 minutes on the phone with her, another 30 minutes on Friday, all to find out she doesn't want to sell the property. I should have embraced no during that conversation. Uh, the sub two offer really good one still not locked down. So it's an offer okay.

Speaker 1:

And then Wednesday going live with speed lead closers cage match versus the just the legendary Jerry Norton. I mean that was awesome. And here's another thing that just really kind of proves where we are as an industry. Jerry had never worked with Speed Elite before he was able to come in, navigate the system, figure out how to use it, figure out very quickly. Without a whole lot of training or explanation from me, he was able to decide which leads he started wanting to buy. He was looking at the seller's motivation, the occupancy of it, the repairs that were needed, really leveraging the platform that Speed to Lead has in the marketplace, and because of that he was able to walk down a contract and also have an excellent conversation about a potential sub two on a pre-foreclosure. Now I was able to get a just amazing commercial deal with a vacant lot next door as well as I got a quadplex in Michigan.

Speaker 1:

So again, just a banger of a day, and on that one I believe we spent $2,000 is what I ended up spending on leads On the first day. I spent our second day with property leads. I spent $1,650. On the third day I went live with Aaron Bevins and now the lead generation service that Aaron Bevins is providing.

Speaker 1:

What makes it unique is because it's essentially just skip trace data that's being cold called by a virtual assistant. But what makes it completely different is that those VAs are doing the REI SIFT first to market challenge strategy on pulling that data. They're then sifting through all that, finding the most highly motivated sellers through REI SIFT, then cold calling it, and the connection rate was just unbelievable on Thursday night I mean me and Aaron. We had a ton of laughs, but he had some great conversations. I had some great conversations. I got a signed contract that night. It was just, it was beautiful, especially considering we were calling cold call leads. Normally those are really difficult to kind of close just on those one dial scenarios and due to the nature of how those were generated, how motivated those sellers were, we had a great, great showing. We spent about $450 on lead generation that night.

Speaker 1:

The next day LeadZolo spent $4,125 on leads. I was able to get a signed contract as well as two other offers that we should be able to lock up and get signed contracts on. But we're not going to count those. We're just going to say those are offers. We did get one signed contract and then on Saturday Cassie came up here, spent the $427 and got the signed contract and two no answers. So she bought three leads total.

Speaker 1:

All together we invested $8,652 in lead generation, six signed contracts, three other offers and then we still have just a ton of leads to follow up on. Right, I think all together it's somewhere around 60 or 70 leads that we have to follow up on. But with the six signed contracts, let's say we don't get any other signed. Okay, six signed contracts say, we close four of those and two fall out. We should make somewhere in the range of $60,000 with an $8,652 investment, thousand dollars with an eight thousand six hundred fifty two dollar investment. I'll do that every single week. I will do that and I will be happy. Um, I mean, dude, if we're able to make sixty thousand dollars a week with one person doing acquisitions on the first dial, I mean we're making a quarter million dollars a month on the first dial.

Speaker 1:

This is no follow-up. This is why I feel like we're in the golden age of wholesaling. It's never been like this before. We've never been able to just sit down, swipe your card, have three leads and then close one. There was always this cumbersome slowness to wholesaling where it was like, okay, we have to get data and then we have to put it in, we have to scrub it and stack it and then we have to cold call it and generate the lead. And all this. Nowadays it's just like, boom, there's the lead, let's call it, let's go through the closers formula, let's comp and underwrite this thing, let's get it under contract right now.

Speaker 1:

The other thing that stands out about this and we're going to be going more into this topic over the coming weeks is the comping and underwriting side of virtual wholesale where we are in 2024. I mean, listen, I don't think companies like PropStream and Privy and BatchLeads get enough credit for what they have brought to the marketplace in regards to MOS comps across the United States, getting us as much data as possible so we are able to make the correct decisions when we're on the phone with a seller and really determining like hey, are we the best solution? Where is the after repair value? Where are other buyers buying these deals? Now we're able to do that and it's so easy and compared Dude, you guys.

Speaker 1:

Before we could even generate leads we had to go create a relationship with a realtor in that area and then have them comp the deal for us, or we were just strictly comping off of things like Zillow and Redfin and realtorcom, which can be cumbersome, not accurate Sometimes at certain places, just the numbers aren't correct. I places it's just the numbers aren't correct. I mean it's just so much easier because you're also finding about the mortgage history, the ownership details, even down to the property description, right, knowing that when you're writing up the contract where it's like the past. It's like you would have to go to places like the county records to figure out that property description, to be able to write up the contract and send it off for signatures. It's just, the efficiency in 2024 is just so superior than it's ever been.

Speaker 1:

And then the other part of why I feel like we're in the golden age of wholesaling is is because, listen, some bad stuff has're in the golden age of wholesaling is because, listen, some bad stuff has happened over the past couple of years the end of 2022 and the beginning of 2023, when those interest rates went through the roof and all the cash buyers stopped buying, there was a ton of wholesalers that just straight up exited the industry, right, and there became this just wide open gap inside of the industry where it was like, listen, we could come in and really start attacking certain markets that have been left just open. There's this void. There's just an extreme lack of wholesalers in certain parts of the United States and, yeah, it's starting to fill back up with the new people that are coming into the industry. But that was the first time in the decade that I've been in this industry that I saw like a mass exodus of people from the industry, because it was really the first time there was something like really bad that had happened, like a correction of sorts. And so I'm seeing that and I'm seeing I'm getting the sense that we're going to see the same things in certain locations where, when these regulations come down, we're seeing in certain places where it's becoming extremely difficult South Carolina, nebraska, oregon where these rules and these regulations are coming down, you're going to see people start exiting certain markets and saying I don't want any leads in south carolina, I don't want any leads in oregon, I don't want any leads in nebraska, because it's it's difficult, there's a barrier of entry there, and what does that do? That eliminates the competition, and when it eliminates that competition, there's an opportunity that exists Again.

Speaker 1:

Another thing that leads me to believe this is the best time to be wholesaling ever, because anything that can eliminate competition for us I don't think it's good for the marketplace, I don't think it's good for the wholesaler or for the homeowners, but I do think it's going to be great for us wholesalers that look at it and say that's not going to stop me. You think I care about nine people sitting around a table in South Carolina saying, oh, this is how we're going to stop wholesale and we'll find some other way. If I have to get transactional funding, if I have to find a way to take these properties down and relist them for more money, that's fine. You know why? Because I'm going to have no competition. Other people will not be willing to do that. I am willing to do what is ever necessary to create the reality that I want for myself and for my business, so I will find the solution. We will go after it. I hope, if you're watching this, you feel the same way about whatever you need to do for your business to create that reality that you desire.

Speaker 1:

And just, there's a lot of negativity going on right now inside of our industry, and what I want to do is I want to spread the news that I feel that this is. There is no reason for us to be negative about what's going on right now. There's only reason for optimism and positivity and embrace the fact that this is the golden age of wholesaling. If someone's telling you otherwise, then I guess my question to them is why are you even still in this industry? If you think wholesaling is going to die and we have to take every property down, then why are you teaching wholesaling? Why are you even still doing a wholesale? I don't think that's the case at all. We've seen this time and time again. We thought that was going to happen in Illinois. We thought it was going to happen in North Carolina. We thought it was going to happen in Texas and Oklahoma and all these other places that have brought down regulations, and it hasn't stopped. We thought wholesaling was dead in 2022, in the beginning of 2023, when the interest rates went through the roof. That's not the case. It didn't die then and it's not going to die now, because this is the best time ever.

Speaker 1:

And then let's talk about on the disposition side Okay, somewhere in this industry like that has always been the forgotten part of it. The claim has always been if you have a good deal, the deal will sell itself. The buyers will come. They'll be begging for good deals. Well, not necessarily. You have to have the means. You have to have something that turns the lights on to notify the end buyers that you have a great deal. Right, marketing.

Speaker 1:

So in the past, how did we do marketing to wholesale our deals? Well, there was a lot of like list building, you know, using things like constant contact and MailChimp and building out these email lists, which, quite frankly, there's like next to zero people in the wholesaling industry that are good at email marketing. Okay, that just doesn't exist. It was just mass spam emails of like here's my deal, here's my deal using whatever MailChimp template existed. Okay, here's a picture of the property, here's a description, here's the numbers and here's a deal using whatever MailChimp template existed. Okay, here's a picture of the property, here's a description, here's the numbers and here's a link to all the pictures click here. Right, that's not email marketing, that's not. That's not solid marketing techniques, right.

Speaker 1:

And then it was like well, okay, you could go pull a list and prop stream or batch leads and skip, trace it and then cold call. And it was just these cumbersome methods. And then one of our favorites was going to Facebook groups and push it out there and sell it through Facebook groups. I'll say it doesn't work, because it has, and we've done it many, many times. But if you've ever tried to do that on volume, you also know that brings out the snakes. That brings out the people that try to go around you and go direct to the seller and say look, I found your deal on this Facebook group. That's not a buyer, it's a wholesaler. Let me get your deal right. People try to go around you and snake that deal from you, and it's just that doesn't happen as much nowadays. I'm not saying it doesn't happen it still happens at times but with things like InvestorLive and DealSpeed and all these different tools that are coming out, there was this gaping hole in wholesaling on the disposition side. It's finally been filled, and not only that, but for us to really know who these buyers are and what they've actually bought Because the other thing about building these email lists and skip tracing and talking, cold calling and talking to these buyers was is you didn't know the facts about who they were and what they actually bought and if they're continuing to look to buy more properties.

Speaker 1:

It was just like okay, they said they're a buyer or they signed up for my list. Well, just because they signed up for your list didn't mean that they weren't another wholesaler or something like that. You didn't know who they actually were and if they were gonna be that go-to buyer until it was probably too late. Now you can actually look at it and you can say I could see that this buyer right here has bought like five flip properties in this zip code this year, there is a solid chance that they're looking to buy a sixth flip in that zip code they're a go-to buyer and then to have access to their contact information. I mean, just again, there's never been anything that's existed like this. And so, from a lead generation standpoint, the fact that we have things that could be negatively impacting our industry, which is going to drive out some of the competition, if you're willing to sustain through that, it's a benefit for you. And then, last, the technology on the disposition side.

Speaker 1:

For those reasons, I feel like we are by far in the best time for wholesaling that's ever existed and I feel like we continue to prove that with our results. Just what we were able to do in acquisitions week, like I said, if we added the six signed contracts we got in six days, if we were only able to move four of those, which gives us what is that? A 66% contract to close ratio, pretty close to industry standard. $15,000 average assignment free that's our average assignment fee. $60,000 on an $8,652 investment. It's amazing results. That's a quarter million dollars a month with one person doing acquisitions for two and a half to three hours a day, acquisitions for two and a half to three hours a day. It's never been better. So I'm curious to know what do you guys think? You guys follow me. You see these results.

Speaker 1:

What are you feeling about what's happening in the wholesaling? Do you feel like this is the golden age of wholesaling? Have you not been in the industry long enough to know? I'd love to hear that as well. But personally, for me, I feel like this is the golden age of wholesaling for those reasons and the results that we continue to back that up with. I don't see anybody else doing what we're doing live for you guys to see. That's why we continue to push it and say we're showing you exactly what we're doing. We're showing you the tools, we're showing you the lead generation. We're showing you how we talk to these sellers. We're even showing you how we dispo these deals. There's never been a better time. Give me a like on this video, baby. Let's pump it up. It's the golden age of a wholesaler. Let's get pumped up. Let's go create our own reality. Go crush it today. We'll see you guys tomorrow.