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The Titanium Vault hosted by RJ Bates III
RJ Bates III, affectionately referred to as the Viking Wizard by his students, started his real estate investing career in 2014 after attending a real estate education program that put him $65,000 in debt. RJ contracted his first deal he found on the MLS and wholesaled it for a $7,500 assignment fee. That was the end of his former life and the beginning of his venture into becoming a real estate investor. Since that moment, RJ has become an influential figurehead in the real estate investing industry. He has successfully purchased and sold over 2,000 properties all across the USA including wholesale deals, rehabs, rentals, owner finances and short term rentals. One of his passions is being the host of The Titanium Vault Podcast where he interviews the top real estate investors and finally, RJ has won back to back Closers Olympics earning him the reputation as the King Closer!
The Titanium Vault hosted by RJ Bates III
Why Smart Investors Are PASSING on Your Property Deal?
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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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RESOURCES FOR YOU:
If you want my team and I to walk you through how to build or scale your virtual wholesaling business from A to Z, click here to learn more about Titanium University: https://www.titaniumu.com
(FREE) If you want to learn how to close deals just like me, The King Closer, then download the free King Closer Formula PDF: https://www.kingclosersformula.com/close
(FREE) Join our exclusive FB group community for real estate investors and wholesalers: https://www.facebook.com/groups/titaniumvault/
(FREE) Click here to grab our Titanium fleet free PDF & training: Our battle tested strategies and tools that we actually use… and are proven to work: https://www.kingclosersformula.com/fleet
Grab the King Closer Blueprint: My Step by Step Sales Process for closing over 2,000 deals (Only $37): https://www.kingclosersformula.com/kcblueprint
Grab Titanium Profits: Our exact system we use to comp and underwrite deals in only 4 minutes. (Only $99) https://www.kingclosersformula.com/titaniumprofits
Want to know what the best markets to wholesale in are? Grab my breakdown of all 50 states here: https://www.titaniumu.com/markets
So you got a property under contract, you did all of the underwriting, you did 70% of ARV minus repairs, minus your wholesale fee equals your maximum allowable offer. And then you go to dispo it and no one's interested. The deal's not moving. Today's video is going to talk about why your deal isn't a deal. So special shout out to TU member Galen. So Galen messaged me today and he said man RJ, we had a topic inside of today's implementation call. I think you need to make a YouTube video about that topic. And he gave specific locations that he has been sent deals recently and he goes they're just not deals. I don't think certain wholesalers are understanding what I'm seeing as a potential end buyer, and he brought up states like Mississippi, pennsylvania, michigan, wisconsin, indiana, ohio. Now these are bread and butter locations for wholesale. Now some of them have been tarnished by some of the regulations, like Pennsylvania, but at the end of the day, these are great locations to find highly motivated sellers with discounted properties. That's what we are looking for as wholesalers.
Speaker 1:The problem in some of these locations is that if you were to do the MAO formula, where you look at what the after repair value is, and what most wholesalers do is they look at what the maximum value that property could be worth once it's fixed up, and then they reverse, engineer down and they get to a number and they lock that property up. This is why that deal is not a deal. You are not paying attention to the active listings in that neighborhood. In that neighborhood and here's why that's important In certain lower property value areas you could do the MLO formula and what you will see is that that tells you to lot the property up for maybe $30,000, $40,000. But there will be properties listed on the MLS by a realtor in the exact same and sometimes even better condition for $10,000, $15,000, $20,000. So the question becomes for an end buyer, like, like Dylan, why would I buy your property for $40,000 when I can buy the same or better property for $20,000?
Speaker 1:When you are underwriting a deal, yes, you need to pay attention to the after repair value and what the property could be worth, but you also need to pay attention to what the property is worth today. And how do you do that? Well, pay attention to where properties are being purchased and as is value, so the sold comps, but also what are properties being marketed for, value-wise, in the area listed actively. So, as you're going through and you're underwriting the deal and this is going to be specific with sub $100,000 properties, but realistically it's everywhere, in every market and every price point. You need to pay attention to the competition that exists on the market, because an end buyer doesn't care about your deal. They care about the deal that they are about to purchase and so if they can look and they can see that I can get a cheaper property, is your property even considered a wholesale deal?
Speaker 1:By definition, wholesale means that it is discounted from retail. So if on the retail market I can pick up the same property for $20,000 and you're asking $30,000, do you even have a wholesale property? The answer is no. You do not To your customer. Your customer is the end buyer. You have to pay attention to what they're looking at.
Speaker 1:Imagine your end buyer is walking into a store and all of the properties that are available in the market that they're looking to purchase in are sitting on the shelves. Your wholesale property is sitting on the shelf at a higher price than the retail product the retail house sitting on the exact same shelf. This is why it's important. Wholesalers, for the most part, are really struggling with this because they're not taking the time to really understand how to underwrite a deal where the end buyer buys. This is why we talk about comping and underwriting until we're blue in the face, because we don't want your deal to end up in a termination. We don't want you to have to renegotiate the contract price with the seller because you didn't know what you were doing when you were underwriting the deal. Yes, it is important for you to understand, after repair value, the amount of repairs needed and making sure that there is enough profit there for your end buyer. But it is just as vitally important for you to understand what competition exists on the retail market and what that end buyer is going to be comparing this to. On the flip side, there are a significant amount of end buyers that will also look to purchase a wholesale property a property that is discounted from retail value and do little to no work whatsoever, and then want to sell that property for retail value.
Speaker 1:No-transcript. The reason why they're not buying some wholesaler's deals is because that asking price from the wholesaler is too close to what they're considering retail value in as-is condition and because of this, the deal doesn't get purchased by the end buyer. What does this do to your team and your wholesale organization. Dispositions takes even longer. You have to find even more buyers, maybe an ignorant buyer who doesn't know any better, and maybe they're going off of just the MAO formula and not paying attention to what the true value of the property is today and as is condition.
Speaker 1:So, to recap, when you are underwriting any deal, start with the after repair value and reverse engineer that to where you believe it needs to be. But also pay attention to where the end buyers are currently purchasing property what price are they purchasing it at? Purchasing property what price are they purchasing it at? And then, last, pay attention to where the retail market is setting property values in similar condition obviously size your bill. All of that is vitally important. But you need to look at those active listings. That is your immediate and the lowest hanging fruit competition that you have for selling your wholesale deal. So if you have a property the seller's asking $30,000 and you see that there are multiple properties listed on MLS for $20,000, similar condition, then you know you have to get it below $20,000 or you are going to significantly struggle with dispositions.
Speaker 1:Now, is this 100% true on every single deal?
Speaker 1:No, I'm sure there's plenty of people out there that are dispo powerhouses that will say I can move a deal for higher than what's listed on MLS and I'm sure you can, and maybe there'll be even some of you that drop a comment about being able to do that.
Speaker 1:That's okay. This is for the vast majority of the wholesalers that do not have that skillset and ability yet when it comes to dispositions. What enables you to build up that skill set is immediate results and understanding how to underwrite deals as best as you possibly can. So if you use the tips that I've given you in today's video, I can promise you you will see an increase in your contract to close ratio and more money in your bank account, and that's the end goal. We're here to create our own reality and we do that by wholesaling as many properties as possible. So pay attention to those active listings and make sure that you're truly getting a property at a wholesale discounted price. Let me know what you guys think in the comments. Make sure you give me some love like today's video. We'll see you guys tomorrow.