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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
Become A Closing Machine | Wholesaling Real Estate
Want to work directly with me to close more deals? Go Here: https://www.titaniumu.com
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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
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(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
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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
of how to become a closing machine. The first thing that you have to do is prepare yourself to actually be ready to close the deal. And you know there's a lot of worries and fears and concerns, especially when you're new into this. That's the light, rj. You're asking me to comp and underwrite on the phone. You're asking me to write up the contract while on the phone, send the contract, all these different fears and concerns that come along with it, and listen. I understand because at one point in time I was also in your shoes. So this is not like I just woke up one day and all of this was second nature, like it takes time, it takes reps, to get to where everything that I'm asking you guys to do inside the Closers formula becomes second nature. Asking you guys to do inside the closers formula becomes second nature. But at least put yourself in the best position possible to be able to accomplish all the things that you need to do. And I give this advice all the time. When I'm listening to someone talk to a seller, it's like if there's ever a moment that what I'm asking, the action behind the scenes, like on your computer, what I'm asking you to do, becomes overwhelming to where you cannot listen to the seller, then pause the action, because the most important thing that you can do is to listen to the seller and make sure that you are fully understanding what they're telling you, and then you're asking the appropriate question, following whatever their answer was. Okay, that's the most important thing. But getting back to those necessary actions, we want to make sure that we're prepared. So I actually got asked this the other day. Someone said hey, rj man, it would be awesome if you could share your screen when you're talking to a seller to show us what all you're doing. Now, unfortunately, youtube likes to take videos down when I share my screen and it shows private information, whether it's a name, an address, a phone number, anything like that. We've had, at this point, close to 100 videos removed from YouTube because we were trying to show you guys exactly what we're doing. So at this point, we've had to kind of steer away from that. But what I can show you today is what my screen looks like in preparation for calling sellers. So these are all the tabs. I'm going to get rid of my little banner up there at the top so you guys can see all the tabs that I have open.
Speaker 1:So, first and foremost, purchase and sell agreement, our contract. We have to have that prepared and ready. Now I do take some steps in preparation of setting a contract. So, for example, our contract has all these fill in the blanks. Some of the blanks we can go ahead and fill in. So what's today's date? April 1st 2025. Who's the buyer? Titanium Investments LLC. Purchase price it needs a dollar sign, okay. So, as I'm going through to fill out this contract, the only thing that I would need to fill in would be the seller's name, the subject, property address, the legal description, which I just copy and paste directly off of PropStream whatever the purchase price was that we agreed on. And then we always have this acceptance date Okay, this is essentially the expiration date of the contract. So, if you were to send a contract, we don't want it just sitting out in never, never land. We don't want a seller to have the ability to sign a contract two weeks or two months after we send it. So I'm just making preparation that I will give them until April 3rd 2025 to sign this.
Speaker 1:I went ahead and I put a closing date of May 6th. Why? Because that's literally one month after today. I went ahead and I put a closing date of May 6th why? Because that's literally one month after today. Next up title company we would have to fill that in. That's going to be contingent upon the location. And then the last thing I have to put in would be any other agreements or the state in which the deal is being done. So I have let's look. I can't remember the last time I put something in other agreements. All right, so I've got one, two, three, four, five, six, fill in the blanks, six blanks to fill in to write my contract. It's not an overwhelming thing, but I'm prepared to have that sent.
Speaker 1:All right, the next thing, the next tab that I have open, is my profit calculator. Right, this is. I always have this available and open. So, as I'm running my numbers, not discussing things, you know I'm cussing and fussing with the seller and we're like we feel like it's a $250,000 ARV. Remember to appropriately use the profit calculator. All we're doing is changing the teal boxes. Everything else is fixed, except for this. I messed around with this earlier today during my implementation. Call All right, arb $250,000.
Speaker 1:What's the rehab? $45,000. What are we trying to lock it up for? Sellers asking $150,000. All right, is that a deal, that's not a deal. We did that at $110,000. Boom, that's a deal. So I've always got my toolboxes ready to be filled in. I've got the profit calculator up, I've got my rehab calculator right here, got my rental calculator, so I'm prepared to do my underwriting. What else do I need to be able to underwrite a deal? Well, I've got to be able to comp it. So I've got my two comping systems up and ready Privy and PropStream. All right.
Speaker 1:The next thing InvestorLift. I'm on the Buyer's tab, I'm logged in and, as I call a seller in a random location, let's just go ahead. Let's refresh speed to lead, cause of course we got to have our, our lead generation. Normally it'd be your CRM but say I'm buying leads for speed to lead, okay. And I'm scrolling down and I'm like let's find something where, all right, dayton, nevada, that's a good one. It's got 3,700 buyers in the in the county, according to deal speed. So what I would do is is I would come over here, I type in Dayton, I'd go down to Nevada, filter that I've only got 65 buyers in that city. Now what I would do is I'd say Dayton, Nevada County, lyon County, all right, go back, get rid of that I don't have enough buyers just in the city. So where's lion county boom? I've got 14 000 buyers in lion county nevada.
Speaker 1:The reason why I'm doing this is because, as I get nationwide leads, I I need to know that I could dispo this thing. So now I know I've got 3,700 buyers on deal speed. I've got 14,000 inside of Vestalist, so I've got those tabs open Again. Like I said, I have Speed to Lead open just to show you guys that this is what I would be if I were using this to do my leads right. Normally it would be my CRM, but I can't show that because it has addresses Don't want to get taken down.
Speaker 1:And then the last thing is I use Dropbox Sign. This is what we use to send the contract to get signed. So this is my preparation. Anytime you guys see me go live and talk to sellers and lock up contracts. This is what it looks like right here Contract profit calculator comping softwares, investor lift leads, electronic signature, which I use Dropbox on. So I'm prepared to actually close deals.
Speaker 1:You guys need to figure out whatever systems you're going to use Now. The only thing that was missing there that we regularly use is Google Street View thing that was missing there that we regularly use is Google Street View. What I would do there is the moment that the seller would pick up the phone. I'm just going to double click that address and then I'm going to Google search the address and then it's going to pull up Google Street View and then I've been able to look at it. So I don't need that tab open. But that is something that we regularly do. That's the first step that I do when I go to underwrite the deal, because I want to look around the neighborhood and see what I'm looking at.
Speaker 1:So make sure, first step to becoming a machine is be prepared have the exact same thing. I'm not worried about having all these different tabs open and getting confused and lost After every single conversation. Whatever tabs, additional tabs I've opened say I have to go to Zillow or Redfin or Realtorcom or something like that. Or even if I start searching around to look at the different comps in the areas or maybe to look at the pictures of those comps clear all of those tabs before you call the next seller. I've actually seen a live seller call review of someone where they actually got confused about which property they were looking at because they did not clear the tabs of the previous seller and property that they were analyzing. So make sure that you're prepared for that. All right, so now I'm all ready. I'm ready to go. We have a lead. We call the seller. The seller actually picks up the phone and answers.
Speaker 1:This is the next step that you guys have to get down your introduction. I can almost guarantee you your introduction is weak. It lacks confidence and there's probably just moments of awkwardness in it. And, quite frankly, I don't understand this. I can understand it a little bit when you get started, but after like 10 conversations with sellers like you should have this down to where you understand how you are going to introduce yourself. But everything that you say in that initial moment of introducing yourself to the seller is critical. The majority of seller call reviews that I do inside of Titanium University. It takes me about 12 to 15 minutes to move past the first two minutes of the conversation because I nitpick so many aspects of the introduction. So let's get into the proper way to introduce yourself. The seller answers the phone. Normally it's just a hello right.
Speaker 1:First and foremost, I want you to address them and you need to know again. This goes back to like the preparation. You need to know how you are going to address the seller. So as you're looking at the lead, you need to look at their name and say to yourself I know how to say that name. Or, if not, I need to ask to speak to the owner of 123 Main Street. You don't want to start off awkwardly by mispronouncing their name or something like that. It's okay if it looks like their name is Charlie, but it's really Charlay. Charlay just joined Titanium University. So I'm using that as an example, because if you looked at the name, it's C-H-A-R-L-E-E Charlie, but her name's Charlay. That's okay to make that mistake. But if it's a foreign name that quite frankly you just have no idea how to pronounce, then just address them as hey is the owner of 123 Main Street there? Seller answers the phone. Hey, is Charlay there. This is her. Hey, charlay. This is RJ Bates I was calling about address and then tell them how you got their information. So if it's from Speed to Lead, it'll tell you it was an SEO lead, it was a Google pay-per-click lead or it was a cold call lead.
Speaker 1:I see you spoke to someone on my team about selling 123 Main Street. Are you still looking to sell that property. Or hey, shirley, I see you filled out a form about wanting to sell 123 Main Street. Are you still looking to sell that property? That introduction should be second nature to you. There should be no awkwardness in that moment, right there, because at some point in time you put in enough reps where you say it so many times that you don't have to stumble on your words. But you want to flow into this where you're immediately getting into the closures formula and we're getting to step three as quickly as possible with gathering as much information. And I will tell you your tonality, your confidence. All of that matters to you getting the appropriate answers or not, to you getting the appropriate answers or not.
Speaker 1:When I see people struggle with saying, well, rj, when I flat out ask them, you know if they're looking to sell right out of the gates, sometimes they say, you know, for the right price, or maybe, or and I don't know how to respond when those moments happen, you need to make note of it and come up with. This is my go-to response every time a seller says that moving forward. So, for example, if I were to say, hey, charlay, looks like you spoke to someone on my team about selling your property there at 123 Main Street. Are you looking to sell that property for the right price? Awesome, guess what my second question was going to be how much do you want for it? Well, I just used their language. Awesome, what's the right price? Now I've already moved into to me. They said yes, I will sell the property for the right price. So now I'm moving on to step two. They say something like maybe I need to stop because we did not get an affirmative answer. Well, what's the deciding factor on if that's a yes or not? These are my go-to responses to these sort of rebuttals that sellers will give us.
Speaker 1:So if you are talking to a seller and you don't know what to say early on in a conversation, have a pen and paper. Yeah, I still use pen and paper. You need to make note of that and you need to. Either one ask me go on one of my videos, comment on there hey, RJ, seller said this or go into the free Facebook group. If you haven't joined it, the link's in the description, the vault. Join it for free. Make a post in there, hey, rj.
Speaker 1:I asked the seller if they wanted to sell and they said this. I don't know what I should have said. I haven't seen you answer that one yet on a live call and I'll tell you what I would say. But, realistically, you need to get to a point, to where. What is your language? What is the true response that you would just give that person if you were face-to-face having a conversation? It's okay to just be you and to give whatever response comes to your mind. I don't know, I might. So when I hear that I don't know what that means, so I say that okay, I don't know what that means. I mean what? What is it contingent upon? That's how I would respond. I want you to start doing the exact same thing, but you need to know what that is going to be before that moment happens, where that awkwardness comes in. That initial first impression makes such a difference to how the rest of the conversation is going to conclude. So be prepared. So, once we move past the initial question of are you looking to sell that property, still Verify that you've heard what they've said. Also, how much are you looking to get for the property? Now, again, this needs to be another moment where you are prepared for all the different types of responses that you're going to get. Now.
Speaker 1:My personal opinion is is, if you're struggling on getting a number out of the cellar, right out of the gates, it has a lot to do with the fact that you're lacking confidence and they're reading between the lines and they're seeing that this is not a comfortable conversation for you and that's probably why you're not getting that number right out of the gates. What I've seen on my calls and my team's calls is that very often we get the number, and when I say very often, I'm talking about like nine times out of 10. They're going to give me a number right then and there. Once I get that number, that's when I'm moving on to okay, I heard the number. Okay, $100,000.
Speaker 1:Well, tell me a little bit about what you got going on. Now again, that's how I say it. It's okay for you to say it in your own language and in a different way If you are not from Texas and you don't say things like well, tell me a little bit about what you got going on. I get it. It's country, bumpkin, it's who I am. Say it in your own words. But it needs every single part of that right there, needs to flow, it needs to come off your tongue, like you've said it a million times, like I have.
Speaker 1:Hello, hey, is Charlay there? This is her. Hey, charlay. This is RJ Bates. Let's call it about 123 Main Street.
Speaker 1:Looks like you filled out a form on my website. Are you still looking to sell that property for the right price? Awesome, what's the right price? $200,000. $200,000. Okay, well, tell me a little bit about what you got going on ways that you can really like signify confidence in the early stages of a call. Slow yourself down. In that example, right there, when she said $200,000, right after she said for the right price, $200,000. Okay, well, tell me a little bit about what you got going on.
Speaker 1:Very paced out, didn't feel rushed. It allows them to kind of tells them that you are seriously comprehending purchasing their property for $200,000. Like you didn't initially just blow that off. That, right, there is a sign of confidence that you're giving to the seller. Every single part of that introduction right there is vitally important. Now, when you ask them the open-ended question tell me a little bit about what you got going on. However, you want to say that Now, this is where your ability to listen and understand the direction that they are steering the conversation is vitally important for you to keep it going that way, and what I've said time and time again as I listen to more people do seller calls, is that we get lost in the feeling of if we're not talking to a seller that has the right price and is motivated, then we feel like we do everything right, we feel like we listen, we ask the right questions.
Speaker 1:So this is why I tell everybody inside of Titanium University that don't send me the good calls. Send me the bad calls. I want to listen to you. Talk to a seller where the price was incorrect but they had motivation. Those are the ones I want to listen to, because those are the ones that we dropped the ball on that we could have closed because we weren't listening, and we think we are. This is why there's power in re-watching and listening to your seller calls. So, as we ask, tell me a little bit about what you got going on. Here's the habit that you can form, that machine-like behavior that you can create when you're talking to sellers. Okay, when they respond, the key here is whatever they just spoke about. Your follow-up question needs to keep them on that subject. Whatever that is, this is where the majority of closers are making mistakes.
Speaker 1:The seller wants to talk about one thing and we change the subject to talk about another thing. That's on our checklist. What I mean by that is say they say something about condition. Why would we ask a question about occupancy? We're not there yet. I understand that in your brain, the occupancy is important. This isn't about you, it's about them.
Speaker 1:We need them to talk. We need them to open up and disclose all of the information. The way that we get there is by allowing them to talk about what they want to talk about. I can almost guarantee you every positive conversation that you've ever had with someone previously. When they come out, they go man, that was a great conversation. You can almost look back at it and say yeah, it's because I let you do all of the talking.
Speaker 1:People love to talk and express their feelings. If you're doing all the talking, you're dictating what we're going to talk about. They're not feeling heard. So when you open up and you say, tell me what you got going on, they want to talk about money One. That's the best thing for them to ever talk about because, quite frankly, it's the one thing that we want to talk about more than anything. Except newer wholesalers love to want to talk about the condition of the property, and I get it. Why would a new wholesaler want to date and talk about the condition of the property?
Speaker 1:Well, let's look. Here's all the tabs that we have open. This is the tab we want to get to. We want to get to the contract, but we've got this tab open. What is this tab? Well, this tab says I need to know what the ARB is and I need to know how much repairs. So tell me a little bit about what you got going on.
Speaker 1:We dropped the address in our company software. All these company softwares throw a number at us right out of the gates. Sometimes it's super easy. We can just stare at it and it'll say $200,000. That's how much the house could be worth, all right. So we go right here. $200,000. All right, seller was just opening up about their divorce and how they need to sell. They need $10,000 in their pocket. And we go.
Speaker 1:I don't care what you have to say, tell me about the condition. You might be rolling your eyes right now. You might be saying there's no way in the world, rj, I would never do that. I can almost guarantee you you're doing that. I've seen it At this point hundreds of times where the conversation completely just shifts over to what is important to you. So the machine-like behavior Listen to what the seller is talking about, whatever that topic is. Your follow-up question needs to be on that topic. They give you a response. Stay on that topic. The reason why I want you to stay on that topic is because if you do and you ask follow-up question to follow-up question to follow-up question, it will lead you to the seller's motivation, which is the most important thing that we need to find out. Why is that? What are we actually trying to accomplish?
Speaker 1:In steps three and four of the closer's formula? We are trying to decipher what seller bucket the seller falls in. The four seller buckets, the two bad buckets the four-seller bucket this seller falls in the four-seller buckets, the two bad buckets Wrong price, no motivation. They want full retail. They deserve full retail. Let them go get full retail.
Speaker 1:The scam artist bucket Right price, no motivation. The one we've all fallen for, right? I just did a. Oh, that's fucking adorable about this one. Why are they selling all this acreage in McKinney, texas, for such a cheap price? Because it was a scam. That's why it's the least common bucket. But keep your eye open for it. Then we got the two good buckets the lay down bucket, right Price, highly motivated, easy. And then the one that I'm most concerned about, the one that all my videos are about incorrect price, but motivated. That's the seller I'm talking about right now, the one that we have to find out what is that actual true motivation so we can purchase their property for a discount. That is what we have to get great at doing. This is why the follow-up questions leads to you understanding what their true motivation is. I am telling you they are going to start talking about that motivation if you are listening and they feel heard and you're asking the appropriate follow-up questions to the topic they are talking about.
Speaker 1:There's a game it's called the seven whys. Some of you drop a chat if you've ever done the seven whys before. Basically, it's like what do you want to accomplish in life? And you write down something. And then the next question is why is that what you want to accomplish in life? And then you write your response. And then it's like well, why is that important to you? And you write your response. You say, well, why is that important to you? And by the time you get down to the seventh, why you realize that that initial response that you gave was not really nothing in comparison to what the true reason, the true meaning behind what you want to accomplish in life.
Speaker 1:It's the same thing here. It's the same mechanism that we are using by asking these open-ended questions to the sellers. They say one thing. We ask a question, they give a response. They dig a little bit deeper. We ask another follow-up question, we dig a little bit deeper. After about four, five, six of these questions, you start really understanding why this seller would or would not be motivated to sell this property for a discount.
Speaker 1:Once we have determined whether or not this person is motivated if they are, we are absolutely trying to close this deal. If they are not motivated, then we're getting off the phone. That is where we embrace, though, and we move on. More often than not, what you are going to find out is the seller's price is incorrect, but they are motivated. This is where, now, you know the path that you need to take, moving forward to close the deal.
Speaker 1:Now let's talk about the other aspect of the seller bucket the price. Because I talk a lot about the motivation, let's talk about the price. I just did this yesterday on my video where the price is incorrect. What are some questions that we should be asking when we can clearly identify that the price is incorrect? One how did you come up with that price? I have no idea why in the world people would be afraid to ask a seller how they came up with the price, but I have now realized that that is a true issue. We are actually afraid to ask that. I don't know why. Stop being afraid to ask it. You should ask it on almost every call. It's very important. It's enlightening to hear how a seller actually came up with their asking price, whether it's because they saw it on Zillow. A realtor told them it's just what they need in their pocket. And then, oh, guess what follows that? Well, why would you they need in their pocket? And then, oh, guess what follows that? Well, why would you need that in your pocket? Why? Why is that the number that you need to net? Oh, motivation. Boom, that's what follows after. What are we trying to determine anyways, price and motivation sometimes they're hand in hand, so it's very important to ask that. Now, let's say you ask the seller how did you come up with that price? And they give you a response and you're seeing that there is motivation there, but the price is incorrect and it's significantly off. You should let the seller know that.
Speaker 1:Mr and Mrs Seller, this is not adding up to me. The price is too much based on what you're telling me Like it's okay. We had this the other day I said this in yesterday's video where we're afraid that we're going to lose the deal. What deal If the money doesn't add up? It's not a deal. The way that we make it a deal is by explaining what needs to happen for it to be a deal. Like guys, it's completely okay to say that.
Speaker 1:Mr and Mrs Seller, I hear what you're telling me. You just got divorced, the property needs some work and you need to walk away with a little bit of money in your pocket. But based off the price that you've given me, based off what I'm seeing in the area, there's no way in the world that I could give you that much. It's just not adding up the condition, the market value, as an investor, this doesn't make any sense. And wait and listen to the response. Sometimes the response will be completely understand I'll have to go hire a realtor. I'll have to move in a different direction. That's okay. Would you like to follow up with me? Or would you like for me to follow up with you in a month or so, because I do think other investors are going to tell you the same thing?
Speaker 1:This is how you end up signing a contract on a lead that you purchased in April, in July. There's also times where you will land that contract in April at the price that you need, because you're the first person that was willing to tell them the price is wrong. But let me explain to you what the right price is and why the price is wrong. But let me explain to you what the right price is and why. This is why I feel like it's so important to educate sellers, not lowball them. That's bullshit. Educate them, explain to them this is their life, this is a massive asset. We need to take the time and have the knowledge and the expertise to be able to explain to them why we're coming up with the number that we're coming up with, especially if we clearly understand that they are motivated.
Speaker 1:So we sit there and we say, mr and Mrs Seller, based on what you're telling me, I just don't think that that number is going to work for me. Well, what number would work for you. Well, let's work that out together. Let's see what I need this at. Can anyone take a guess, as I take a sip of my drink, cause I've been ranting and raving over here for 40 minutes, can anyone guess what the first number we're going to go over is? Today's episode is not sponsored by the pink edition of the Red Bull sugar free, but, man, I love this thing. No one knows. Today's episode is not sponsored by the pink edition of the Red Bull Sugar Free, but man, I love this thing. No one knows. Maybe the video is just that delayed.
Speaker 1:The ARV, the after repair value. So we tell them it's math, not magic. So for me this is all just a mathematical equation. So it all starts with what could the property be worth once I've fixed it up? I look around in the neighborhood, mr and Mrs Seller, I see that properties completely fixed up are worth $. Neighborhood, mr and Mrs Seller, I see that properties completely fixed up are worth $300,000. This is why the profit calculator is important for you, because one you want to be able to toggle these numbers and do math very quickly and negotiate back and forth. So you want to get the seller to agree to this $300,000 ARV. Then you say well, mr and Mrs Seller, based off of a $300,000 ARV, what I would have to do with taking a look at the pictures of the comparables, I would have to do $45,000 worth of work. Now the odds are, more often than not the seller is going to argue with you on the repairs more than the after repair value. Okay, regardless, we've got to get them to agree to those two numbers, the actual repair value in the rehab, and you can just sell them.
Speaker 1:Mr and mrs seller, I understand that you think I can get this work done for a lot less than forty five thousand dollars. But let's just say this is a 1,250-square-foot property. You told me that it needs a full rehab. It needs interior cosmetics. That's $35 a square foot. That's how I'm coming up with the $45,000. I'm barely giving myself any room for any contingency. I'm giving myself $1,200. It's $35 a square foot. I mean flooring material alone five dollars a square foot. I gotta paint the whole house. I gotta do cabinets, appliances, doors, light fixtures, all that right, you get them to agree to it.
Speaker 1:Once you get them to agree to that, then you say, based off of that information that you provided, boom, there we go. I can offer you $155,000, and here's how I'm coming to that number. I've got an after repair value of $300,000. I've got the repairs of $45,000. I've got closing costs. I'm covering the closing costs when I purchase from you. I've got to cover the closing costs when I sell on the market. I've got the realtor commissions, my listing agent, the buyer's agent when I go to sell this. And then I've got holding costs right Property taxes, utilities, cost of capital, right. I've got to take into consideration there. And then I want to make profit. So, based off of that, that's how I'm coming up with a price of $155,000.
Speaker 1:The numbers that they're most likely to argue with you on rehab, that's going to be the one that they're going to probably argue with you the most. Rehab, that's going to be the one that they're going to probably argue with you the most. Sometimes you'll have a knowledgeable seller that might want to inflate the after repair value some. But if a seller were to go back and say, okay, I hear what you're saying, $155,000, could you do $165,000? Yeah, I can do $165,000. Boom, because I have those numbers in front of me and I'm seeing, hey, $45,000 in repairs, $39,000 in profit, I can make that work. I don't need to make a $15,000 assignment fee there. I can make a $12,000, and it'll be fine.
Speaker 1:That conversation, that education of the seller, should take place on every single call. Where the seller is motivated and the price is incorrect, it's mandatory. You have to get to the point, to where you're going to have that. The way that I just navigated that with using the profit calculator right here, the way that I just navigated that with using the profit calculator right here, that's the machine-like habit and behaviors that you need to have right there.
Speaker 1:People say I struggle with educating the seller. The reason why is because they want to do like well, mr and Mrs Seller, the ARV is $300,000, and it's going to take me $45,000, so I need to get this at $155,000. That's not what I'm telling you to do. I'm telling you you are going to live here and get them to verbally agree that the after repair value is $300,000. Then you're going to move here to repairs and you're going to get them to agree. You're going to have a conversation back and forth to agree that it's $45,000. Once that's done, then you explain the equation. It's math, not magic. If it's $300,000 and I've got $45,000 of repairs. I've got closing costs, holding costs and I want to make profit. That's how I'm coming up with a asking price or a contract offer of $155,000. Education piece should take you 10 to 15 minutes, not 30 to 40 seconds. If you're doing it that rapidly, then, yeah, the chances are that it's probably not going to be successful because you're not taking enough time to truly educate the seller on what's happening.
Speaker 1:When I started this segment, what did I say? It is our obligation to take the time to educate them on how we're coming up to our number. This is a massive asset and decision in their life. Treat it with respect. It's our obligation. It's our obligation, it's our responsibility.
Speaker 1:Otherwise, you're no better than our shitty-ass competition. You're just one of them. They come and they go. I've seen it for a decade. They come in and, oh yeah, you just lowball, you just sling shit against the wall and you get deals. They're not here anymore. There's some new ones coming in. They'll be gone in two years.
Speaker 1:It's okay, I can see them. I call them out. They come and they go. Why? Because they don't know how to actually be the expert. They don't know how to sit there and hold a seller's hand and explain how are we coming up with this number? How is that beneficial to the seller?
Speaker 1:If it's not, when is the right time for us to say I'm not your best solution? That's why we determine the motivation first. If they're truly motivated to need to sell their property for a discount, that's when we do this. We don't just do this because we have a lead and we spent $100 on that lead or $29 on that lead. No, we do it when we know that there's motivation that exists and the price is incorrect. But you need to have that down to where. You know exactly how to deliver that education piece to the seller. Once you've done that, then you need to know how to close the deal.
Speaker 1:If you get them to agree to $155,000 or $160,000, $165,000, whatever it is, or 160, 165,000, whatever it is, okay, say, all right, mr and Mrs Seller, you can do $155,000. What I'm gonna do now is I'm gonna write up our simple two-page agreement. Six fill in the blanks. I got it already refilled out. Just gotta put your name, subject, property legal description and price. I'm going to send this over to you. Are you at your computer right now? You are Okay. Oh, you're not. You're not. You got a cell phone Cause I'm going to send it to your email. You got an email on your cell phone. I can send it right over to you, right? I I phone. I can send it right over to you. I need you to sign this right now. While we're doing this Assume the close you have got to get that contract sent over to them and you need to get them to sign that contract right then and there, unless there's another person that needs to be consulted or you know for a fact that they just cannot do it, whatever that is, if they're at their job or they're driving or something like that.
Speaker 1:I don't like the whole like pull your car over and things like that, but if they are available, our objective is to get them to sign the contract right then and there. That's why we have the contract pulled up. We're prepared, that's why we have our electronic signature device ready to send the contract, and also we want to walk them through the contract line item by line item, to make sure that there's not any surprises. This is very important Now, even in this scenario, going back to, I guess, one of my more famous live signed contracts 2023 Closers Olympics the gentleman had no access to email. And he had. Well, actually, he had access to his email on his cell phone, but he had never used his cell phone to sign anything for it. He didn't know how to do it. I had to actually coach him and walk him through on how to use his cell phone. Funny, the best part about it is I still don't know if he had an iPhone or an Android, but somehow, the way that I was able to navigate it, I got him to figure out how to open the contract, how to view it, where to sign, where to click sign and how to click finish. That was what enabled me to get that contract signed and inevitably win the Closers Olympics.
Speaker 1:You guys need to be prepared to do that. Listen, at some point in time it just gets to the point where you should be so comfortable inside of the conversation that you're not even really worried about anything. Like we listen, I just got this person down. We listen, I just got this person down $40,000, $50,000. Like, they're going with me. I just got to make sure that we get ink on paper and whatever that does. If it takes 10, 15 minutes for me to explain how to use Dropbox sign or DocuSign or PandaDoc or whatever it is that you're using. That's okay, I just walk them through the process and then you get the contract signed.
Speaker 1:And then the very last step where said this a lot, but where sometimes people make mistakes. Once the contract is signed, how do you end that conversation? You don't want this person regretting signing a contract with you, so you want to make sure that you set the proper expectations in how you wrap up this conversation. All right, charlay, I see that you have signed the contract, awesome. So here's what's going to happen we are going to open up title tomorrow, we're going to send that contract off to the title company. Then my team or myself, we're going to call you tomorrow and we're going to schedule a time for us to come out and do our walkthrough and get pictures and start the due diligence process. End the conversation. Set Okay In the conversation. Set an expectation of when the next point of communication is going to take place, so they understand that, and then make sure you actually do that, but set an expectation of what the communication is going to look like. So, that being said, those are the ways that I think, with all of the seller calls that I've reviewed, listened to on my team and done myself. I feel like we can improve on how to have better habits, become more machine-like, have prepared rebuttals for certain experiences and times inside the conversations, but also just know, if this, then that, if this happens in the call, then this is what I'm going to do. That's how the entire closers formula is built around.
Speaker 1:I'm going to ask this question Do you want to sell? Yes, move on to the next step. How much do you want for it? That price? Okay, tell me what you got going on. Identify motivation. We've got price motivation that puts them in the seller bucket. Two buckets are bad. We kill those. Two buckets are bad. We kill those. Two buckets are good. If it's in the really good bucket, we move to close. Boom, reverse rapport. Boom, kill. Shot, sign contract, set expectations Done. If it's in the most common bucket. Educate, close, reverse rapport, set the contract. Get the contract signed, set the proper expectations. You're done. Move on to the next call. Machine-like habits.