The Titanium Vault hosted by RJ Bates III

RJ Bates III Reveals His BEST Florida Wholesaling Strategies

• RJ Bates III • Episode 492

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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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Speaker 1:

Welcome to Wholesaling Around the World with RJ Bates III the Florida edition. Now we're going to kick this series off with Florida, because it is one of my most favorite states to wholesale in. It's also been one of the highest volume states here for titanium investments. We've done deals all the way down in the Keys up to Jacksonville, all the way over to Pensacola and everywhere in between. But there are some things that you need to know about wholesaling in Florida and we're going to cover that today as well as giving you guys some resources if you plan on wholesaling in the state of Florida. Now we'll start with. Why would Florida be such a great state to wholesale in? Well, it ranks third in population in the United States, with just north of 23 million people in the state. So just based off of that alone, you have plenty of opportunity in the state of Florida. Now there are many different types of markets in the state of Florida. I mentioned a couple of them Pensacola, jacksonville, tallahassee. Now, the price points here in these markets are not super high and, honestly, in a place like Jacksonville, where we've done a significant amount of volume, it's relatively low and it's one of those markets where you have to be very careful with your underwriting. You want to make sure that if you're underwriting it for a rental property, you're still able to give yourself equity for the end buyer, but also looking at the as-is comps. I would compare Jacksonville to a market like a Kansas City or St Louis, or even like an Indianapolis, indiana, where it's very important that not only are you getting yourself a good deal from the after repair value, but looking at those listed as-is comps. Now you also have markets like Miami, tampa, orlando, where price points can be higher. In some of the locations there you also have lower price points properties in those cities as well. It's very similar to like a Dallas, texas or Houston, texas. Now, there's a lot to learn in these different cities, but overall, florida is a great place for you to do marketing in the entire state because there are tons of end buyers. This is what makes Florida great to wholesale in.

Speaker 1:

If you do get a good deal on your hands, more often than not you're going to be able to find an end buyer even in the rural locations throughout the state. Now, I mentioned the bigger cities because, well, you guys are going to know those places, but we've done tons of deals that honestly, when the leads came in. Up until that point, I had never heard of those cities. Up until that point, I had never heard of those cities.

Speaker 1:

One of the things that's going to happen inside of Florida, unlike the majority of states, is that you're going to have different property types. One of the things that we've done very successfully here is wholesale manufactured homes on own land. In the state of Florida it's very common for that. Now here's what you need to focus on when you get those types of leads. One, make sure that the land is owned and it's not on rented land. It's on rented land, unless you have a buyer that's looking to pick up manufactured homes or mobile homes and move it to their own land. It's more often than not, a dead deal, so make sure that they own the land. Second, when you're comping, make sure that you're comping that to an actual manufactured home and pay attention to the year built. This is very important. The other thing is make sure you're paying attention to the lot size. A lot of times in Florida you'll have a manufactured home that's on an acre, maybe two acres, five acres. It's very important that you're giving the correct amount of value to the land that comes along with that manufactured home.

Speaker 1:

Now, another type of property type that's very common in the state of Florida is condominiums. Property type that's very common in the state of Florida is condominiums. Now the issue with condominiums is the HOA fees that come associated with it. A lot of times when you're looking at a condominium you might think it could make for a rental, but HOA fee could kill that cash flow when you're comping and underwriting. What I like to do when I'm comping and underwriting condominiums is narrow down my distance as low as possible. A lot of times when I'm comping I'll start with a quarter mile radius, but if I have a condominium I'm actually going to narrow it down to 0.1 and try to only comp with the condominiums in the exact same building or facilities as our subject property. This is very important because you want to make sure that you have a full grasp of what the exact same condominiums are selling for.

Speaker 1:

Now we have had successful closings on condominiums and we've actually had some brutal losses on wholesaling condominiums. I recommend that if you're new and you're actually getting to pick your leads like you would off of a place like Speed to Lead and you would know the property type before purchasing the lead avoid condominiums. There's just subtle little nuances that come along with wholesaling them. There's just subtle little nuances that come along with wholesaling them, like, for example, we have an episode on oh, that's effing adorable where we lost the deal because in the HOA bylaws all of the owners inside of that complex had first right of refusal on any offer that was accepted on any units. And so the day before closing another owner came in and said I'll match their offer and sold a deal from us and we lost our assignment fee. Now that doesn't happen all the time and it was rare for us. That was gonna be a great deal at Daytona Beach and we missed out on it. So, like I said, with the HOA fees and just subtle little nuances that come along with it, you can avoid condominiums, especially when you're newer. Just do that.

Speaker 1:

Now, getting back to some of the resources that I want to provide you for the state of Florida. First thing is, as a wholesaler, there's going to be times where you talk to your end buyers and they're going to say, hey, I'd take this deal down a little scrape, but I need a lender. Let's say, if you need a hard money lender in the state of Florida, we recommend Wildcat Lending. Why do I recommend Wildcat Lending? We have been working with Wildcat Lending for literally the past decade, lending for literally the past decade. Some of our first ever wholesale transactions in the state of Texas our envir actually use Wildcat lending. Now they're based out of Texas, but they have expanded to multiple different states, including Florida. I personally have used them on multiple deals. They've always been really easy to work with and a very smooth transaction, very transparent about what the borrower needs to provide to close the deal. So if your end buyer needs a hard money lender, reach out to Wildcat Lending. I don't get paid for this. Wildcat Lending doesn't even know that I'm doing this. I'm simply just a customer saying, hey, I've used them and it was very successful.

Speaker 1:

Now, if you need a title company, now there's multiple title companies that we have worked with, but I recommend Easy Title and Escrow. The reason why I recommend them is because not only is Easy Title and Escrow a title company in the state of Florida, but they can also be your transaction coordinator. Now the reason why you need a transaction coordinator is because a lot of times, the title company doesn't care about your transaction as much as you do and things can get dropped and then time kills all deals With Easy Title and Escrow. Not only are they your title company, but they can also be your transaction coordinator. Make sure that nothing falls through the cracks and when you have those difficult title issues, they know how to solve them. This is David Olds company. Reach out to them at Easy Title and Escrow.

Speaker 1:

Now, going back to Florida and just my overall feeling about the state, there are a couple of concerns right now. Last year they got hammered by the hurricanes and it caused a significant amount of damage. That being said, there are quite a few homeowners that have physically distressed properties, whether they filed an insurance claim or maybe they didn't have the right type of insurance. This is causing issues. There are flood damage properties, there's hurricane damage properties and what's happening now is that there are concerns coming into this year's hurricane season and the market has kind of softened a little bit. I wouldn't say Florida is as aggressively, or I guess the buyers aren't as aggressive as they used to be because of what happened in the past several months in the state of Florida, of what happened in the past several months in the state of Florida. So, moving into this year, there are concerns there with what's going to happen with some, especially some of the higher end properties and some of the locations that were most directly impacted by the hurricanes, tampa being one of those.

Speaker 1:

Further south from Tampa, looking at the St Petersburg, sarasota, fort Myers, cape Coral, these places have been hammered over the past couple years with storm damage and we are seeing some signs of softening of the market and then just also people wanting to move out of Florida because they're kind of tired of dealing with the hurricane seasons. I even have a video where I talked to a motivated seller live and I didn't know it was going to be as an emotional of a conversation as it was, but he was very emotionally distressed and that's one of many examples that we have from kind of the sellers' feelings in, say, florida, which one we do want motivated sellers, but that's just kind of a consensus there. So as good of a state as Florida is, I don't think it's as great of a spot as it was a couple of years ago. I would say right now Florida still ranks in my top 10, but maybe not my top five. Just due to some of the locations that we've done deals like the Tampa area, tampa has been a really good market, just the surrounding areas of Tampa. I don't feel the same as I did a year or two ago about the Tampa area. That being said, places like Jacksonville I don't really think are as impacted by the hurricanes as Tampa. Places like the Pensacola, tallahassee, panama City, lower end markets, especially for the state of Florida, doing really just fine. I know Tallahassee was impacted by the hurricanes but because of the price point I don't think it's as impacted by the hurricanes. But because of the price point I don't think it's as serious of an impact because we still have the cash flow possibilities in those markets. So some of this is just my personal feelings and also just our experience with talking to sellers and buyers in these locations. That's what you guys are here for. So, like I said, florida still ranks in the top 10 for wholesaling. For me Overall, I would never pass on a lead in Florida, whereas other states which we'll get to in this series I would absolutely pass on. I'm not going to feel as good about a California or a Utah or a Washington State as I would a Florida elite. So for me it's always going to be one of my favorite markets, unless something drastically changes.

Speaker 1:

Pay attention to the mobile homes there. Don't sleep on those. There's money to be made with those Condominiums. Be careful, tread with caution. You need a hard money lender, reach out to Wildcat Lending. If you need a title company, easy Title and Escrow can absolutely use them. All right, guys, that's our episode. Let me know what are your thoughts about Florida. What's your experience with wholesaling in Florida? Listen, we're a community here. I don't know all the answers, so let me know. Drop a comment. What are your thoughts about wholesaling in Florida? Make sure you give us a like on this video. We'll see you, guys, tomorrow.