Ask This Question To Get The Best Price

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If you’re new to my channel my name is RJ Bates III. Myself and my partner Cassi DeHaas are the founders of Titanium Investments.

We are nationwide virtual wholesalers and on this channel we share EVERYTHING that we do inside our business. So if you’re looking to close more deals - at higher assignments - anywhere in the country… You’re in the right place.

Who is Titanium Investments and What Have We Accomplished?

Over 10 years in the real estate investing business
Closed deals in all 50 states
​Owned rentals in 12 states
​Flipped houses in 11 states
​Closed on over 2,000 properties
​125 contracts in 50 days (all live on YouTube)
​Back to back Closers Olympics Champion
Trained thousands of wholesalers to close more deals

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With over 2,000 Videos, this is the #1 channel on YouTube for all things Virtual Wholesaling. SUBSCRIBE NOW!    https://www.youtube.com/@RJBatesIII

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Chapters

• 0:00 Mastering the Closer Formula for Wholesalers
• 15:20 Maximizing Closing Strategies for Real Estate

Transcript

Speaker 1: 0:00

As a wholesaler, our responsibility is to solve sellers' problems and to provide equity and or cash flow to our end buyers. Now, today, what we're going to be talking about is how to get the best price possible. When we're talking to sellers, what is the question that I ask almost every seller? Now, let's set the precedence here. Before we get into this, this is making the assumption that you're using the closer formula. I don't know if this question works if you're not using the closer formula. So, that being said, let's talk about that. You can download the closer formula by going to kingclosersformulacom. Slash close. Take you to this landing page. You click this little button. Takes you here. Name, email. Click. Boom, You've got the Closer Formula, all right, so make sure you do that. It's free, doesn't cost you anything. Yes, I'm going to send you some emails, but they're all valuable, all right, so go ahead, download that for free Now, assuming that you're using the closer formula. Now you're going to be going through several different steps. Essentially, today, what we're going to be talking about is the last step, the fifth step, the close. All right, now this is where we've already identified which seller bucket the seller falls in line with.

Speaker 1: 1:26

If you've watched any of my content, you know, the things that matter the most is price and motivation. Now, in order for us to close the deal, it has to have motivation. Seller has to have some sort of motivation and want to sell the property for a discount, otherwise we're not their solution. All right, now, price is irrelevant. Okay, because the price is incorrect. Normally, what we've noticed is they just don't understand why the price is what it is to sell to an investor, and so we educate them. Now, assuming that the price is somewhat correct.

Speaker 1: 2:02

That's where this question comes in. So let's get into this. We're talking to a seller. They've explained how much they want for the property. The motivation has come out. We're deep into the conversation.

Speaker 1: 2:17

What do we do when we've identified hey, this is a lead that I want to attempt to close? Well, one of the things that we need to do is we need to set expectations, we need to build rapport with them, and how do we do that? Through credibility. So, before we get into the question, we have to explain how do we build that credibility. So, inside of this, what I refer to as reverse rapport, I say okay, mr and Mrs Seller, let me explain how this would work. We could come to say okay, mr and Mrs Seller, let me explain how this would work.

Speaker 1: 2:45

If we could come to an agreement today on price, I'm going to send you over a simple two-page agreement. You're going to go over it with me. It essentially just outlines that I'm the buyer, you're the seller for this property, for the price that we agreed and the close on the timeline that we agreed to today. Once you've signed that, we're going to come out, we're going to inspect the property, we're going to do a walkthrough and verify that the property is everything that you said it is today. If it is, then we'll be good to close at that price and on your timeline. If it's not, we're going to have to revisit price and timeline. If it's not, we're going to have to revisit price and timeline. Does that make sense? Almost every time, this is where we either get an objection over earnest money, inspection period, timeline, things like that, or the seller will just say, yeah, that makes complete sense. I mean, you are making me a sight unseen offer. Makes complete sense as to why you would want the agreement written up the way that it's written up. So, once we have overcome any objections or they agree that it makes complete sense.

Speaker 1: 3:57

This is where we're going to ask our question. Now, before I tell you what the question is, I want you to understand something. It normally gets us somewhere between a 10 to 20% price drop. So, that being said, you should not ask a seller this question if the price is not within 10 to 20% of what we need to acquire the property for. So, for example, say the seller's price is $100,000, but we need it at $70,000. We're not going to ask the seller this question because even if we get the most blue sky ideal response, which is a 20% price drop, we're at $80,000 and we really needed it at $70,000. We're still not deep enough in order for it to be a wholesale deal. So we're only going to ask if we're either below or right around that 10 to 20% price drop.

Speaker 1: 5:02

Now, say the seller's price is 100,000 and we need it at 90, we're absolutely going to move forward with asking a kill shot question. So remember, I just billed reverse rapport. Does that make sense, mr and Mrs Seller? Makes complete sense. Rj, all right. Well, with that being said, if I were to come in and I were to cover the closing costs, there's no realtor commissions. This is cash. I'm buying it as is. It's basically a net number to you. What's the best price that you could do for me today? Now, that question right there normally gets us a 10 to 20% price drop.

Speaker 1: 5:49

Now, the problems that I've seen with this when I've done seller call reviews, either inside of Titanium University or just seeing other people that have downloaded King Closers Formula for free and they've either posted it inside the free Facebook group, the Vault, or I've just seen reels of people using the Closers Formula is when we're way off on price. Right, we needed it at $50,000. The seller's asking $100,000. They don't quite know what to ask. They don't know how to educate the seller, and so they just decided to say, well, if I were to cover the close costs and there's no real commissions, what's the best price you could do for me? I can do 90,000. Now you're still $40,000 off on price.

Speaker 1: 6:30

This is not a one size fits all solution question. It's not going to get you down to the price that you need to be at all times. So, that being understood, you need to know that you're only using this when you're close on price. If you're not close on price, your job as the closer is to educate them using the profit calculator and reverse engineering and getting them to understand where the numbers need to be and why. How do we do that?

Speaker 1: 7:05

First and foremost, we start with the after repair value. Mr and Mrs Seller, what I'm seeing is, in your area, properties could be worth around $200,000. They were completely fixed up. Do you agree with that? Yes, no. The reason why we start with after repair value is it makes it really simple. If you just look at the order in which the profit calculator is written out, it starts. The mathematical equation actually starts with the ARV.

Speaker 1: 7:39

Then we're gonna talk about repairs. In order for us to achieve a $200,000 after repair value, we're gonna have to put somewhere in the range of 35 to $40,000 in repairs. Now, typically, this is where sellers are going to give you a hard time. They're going to disagree on the repairs a lot more often than the after repair value. That being said, I like to always point back to one specific repair item to get them to agree to that number and then extrapolate that across all the items that we need to do.

Speaker 1: 8:19

My favorite one that I like to use is flooring. Mr and Mrs Seller, if you were to just Google right now or do a search on Home Depot's website or Lowe's website. You know that our comps over here have this type of flooring, this luxury vinyl plank or this laminate flooring, and just the material alone is $4 a square foot. I mean you have a 1,500 square foot house. That's $6,000 in material alone, just for flooring. It's not labor, it's not any miscellaneous items that we need in order to replace the flooring. That's just the flooring material alone. And then you're saying it needs kitchens and bathrooms and painting and a new roof and all this. That's how I'm coming up to the total of $40,000. There's a lot of work that has to come along with this.

Speaker 1: 9:12

Typically, if they're reasonable and the motivation exists, they will listen. The point that we're trying to get here is we want the seller to either say I don't care about your math, I don't care about your logic, you're just not the buyer for me, or we get them to understand our logic and understand that we are absolutely not low-balling them. There is an explanation for the price that we're giving them. Now, going back to our question, we can get them to come down a little bit and we get them within that 10% to 20% range. That's then when we ask this question. You're building value inside of asking the kill shot question. We're covering the closing costs. We're eliminating any realtor commissions. We're buying it as is. We're buying it cash. We're closing on their timeline. That's five different ways that we are providing value to this motivated seller.

Speaker 1: 10:20

And so, because of the, due to the nature of us providing value, the sellers almost always feel like they're obligated to give us some sort of price drop. Now I've seen this where people have just straight up said hey, do you have a property that you're looking to sell? Tell me a little bit about what you got going on. Right, they're following the closer's formula to a T and the seller says you know what? Here's what I've got going on. And then they say, well, how'd you come up with this price? Okay, well, if that is the reason why you're looking to sell a property, if I were to cover the closing costs, there's no realtor commissions, what's the best price you could do for me? And they didn't really earn the price drop. I've seen that time and time again. Don't be that closer, all right.

Speaker 1: 11:11

The key here is when you're in the third steps, the open-ended questions, and you're asking the seller why they're motivated to sell the property that you stay there for a while, you're analyzing, you're coming up with the after repair value, you're underwriting the deal and understanding what repairs are needed in order to achieve that after repair value and then about 10 or 12 questions later into the conversation, that's when you're asking the kill shot. Just want to make sure that it's very clear here that you understand in order to achieve that 10 to 20% price drop, when you ask them, you're providing that value. The price is already relatively close and it's inside of that range, and then you're asking to provide that value, building in and making the seller feel obligated to give you that price drop. This is the key to how to close inside of the closers formula. It's not a one size fits all. There's definitely going to be times when you're talking to a seller and the price is so incorrect. Right, the most common type of seller that we talk to is motivated, but the price is incorrect. This is not the solution to getting them to come down to the price that you need, unless you're within that 10 to 20% range.

Speaker 1: 12:41

Now let's talk about the times where you're just a little bit off on price. You ask the kill shot and it still doesn't get you down to the number that you needed. This happens very often, right, say, you need 80,000 and they're asking 100. And you say, mr and Mrs Seller, if I were to cover the closing costs, there's no realtor commissions and I'm buying it cash as is. It's basically a net number to you. What's the best price you could do for me? And they say 90,000, right, they just cut 10,000, the 10% that we're looking for, but you're still $10,000,. Right, they just cut 10,000, the 10% that we're looking for, but you're still $10,000 off. Here's how I like to respond to that man. Honestly, I was really hoping you would say 80,000, because that's really where I need it. I need this at 80,000 in order to make it work for me.

Speaker 1: 13:36

And then wait and see how they respond. This is where you give them the time to digest another. They just gave you $10,000 off. Give them some time to digest the fact that you just asked for another $10,000 off. You didn't really make an offer of $80,000. You just kind of divulged the information to them that you really need it at $80,000. So, wait, and it does not matter how long you have to wait If it's three seconds, 30 seconds, three minutes Wait in the silence and see how they respond. What a lot of people do here is they interrupt and try to explain why they needed that price. Wait and see if it gets accepted. If it doesn't, then you simply educate them on how you came up with that number.

Speaker 1: 14:39

Start with the ARV, go to the repairs, explain that there's holding costs, explain that there's closing costs and explain that you want to make a profit. At that point in time, you have fully explained everything. You fully understand their motivation, you understand where their price is and you just now got done finishing explaining why your price is what it is. There's not much else to explain or conversate about at that point in time. It's just are they going to be willing to accept our number or do we need to move on to the next seller?

Speaker 1: 15:20

If you guys have used the kill shot before and one of your closings and it's worked, let me know in the comments. I love hearing these stories about. Hey, I asked the seller the other day if I can cover your closing costs and there's no realtor commissions. What's the best price you could do for me? And it got me a 10, 15, $50,000 price drop. It's a very powerful tool, but you need to use it correctly. So if you didn't catch everything, go watch this video again. Make sure you fully understand. When are you supposed to use it and how are you supposed to use it. Give me, guys a like. See you guys tomorrow.