The Titanium Vault hosted by RJ Bates III

Tennessee Wholesaling SECRETS Revealed

• RJ Bates III • Episode 528

Share episode

Want to work directly with me to close more deals? Go Here: https://www.titaniumu.com
Want the Closer’s Formula sales process I’ve used to close 2,000+ deals (FREE) Go Here: https://www.kingclosersformula.com/close


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

_________________________________

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

_________________________________

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

Support the show

Speaker 1:

Welcome back to Wholesaling Around the World the Tennessee edition, the Volunteer State, one of my favorite locations to virtually wholesale in, and the reason why is because Tennessee offers us a little bit of everything. With its unique shape, it also gives us unique markets. It has three major metro cities Memphis, nashville, knoxville. They all offer us a little bit something different. Now, I've always said when people ask me, rj, what states should I virtually wholesale in? Now, I've been getting asked that question since 2020. And so, over the course of time, I've tried to develop the best way to try to explain my experience of doing deals in all 50 states and how. I've always said that is is anything west of Texas is going to be harder on acquisitions but easier on dispositions and normally has a higher assignment fee. Anything east of Texas is going to be a little bit easier on acquisitions, maybe slightly more difficult on dispositions and, on average, a lower assignment fee. Now, that's not the case across the board. It's just kind of a rough rule of thumb. Now, tennessee offers us a variety of the three different types of markets that I see. You have the low price point. A lot of the as-is comps are very important. They can be rental properties where the majority of your dispo in buyers are going to be landlords. That's what you get inside of Memphis Memphis being the first major metro that we're going to talk about inside of Tennessee is that it's a great market to wholesale in. But you have to be very aware of your competition that exists on the retail market right. Why would an end buyer buy your deal for $25,000 or $30,000 when they can go pick up a similar type property off the MLS for $10,000 or $15,000? That's something you have to be aware of, just like you have to be aware of the same thing in the Kansas cities, the Detroits, the Birmingham's, the Jackson, the cities, the Detroits, the Birminghams, the Jackson, mississippis, the St Louis this is very common. That is the nature of what Memphis gives you. Cash flow is going to be very important. You have to pay attention that, depending upon the type of neighborhood you're in, more often than not you're going to need a minimum of a 2% rental and in some locations, a 3% rental.

Speaker 1:

Now, another thing that Tennessee offers us is the largest city and the capital, nashville. Nashville is one of those markets that is highly competitive. Some people would consider it somewhat saturated. I don't believe in that. Okay. I believe with solid processes, good lead generation and a solid closing process and a great company and underwriting process, you can absolutely do deals in Nashville just like we have. However, nashville is going to be comparable to a location like a Denver, colorado, or maybe a Dallas Fort Worth, texas, maybe even a Phoenix, arizona. It's competitive. You're always going to be dealing with some sort of competitor out there, but if you can't acquire a deal in Nashville, dispositions is going to be very easy for you and can be extremely profitable. So I believe, out of all of the cities in Tennessee, the city that you can probably make the most money in is Nashville.

Speaker 1:

Now moving to my favorite city to do deals in in Tennessee on the far east side of the state is Knoxville, tennessee, home of the University of Tennessee, the volunteers. I love Knoxville. I also have spent more time in Knoxville than I have anywhere else inside of Tennessee, but it doesn't really matter when it comes to virtual wholesaling. The reason why I like Knoxville is because it's the most average city in between the three major metros right, nashville being the higher price point, more competition, memphis going to be the lower price point, a lot of the as-is type properties, lower assignment fees. Knoxville is kind of the cookie cutter mid-price points. This position is not as easy as Nashville but it's not as hard as kind of the lower price points in Memphis that you can get into, and acquisitions is easier in my opinion than Nashville but a little bit harder than Memphis. And so I've always loved those types of cities. I've loved the ones where it's like, hey, it's not like hey, if I go get a distressed property in Memphis, I know I can lock that up, but then it's going to be a struggle. On dispo In Knoxville it's like hey, we've got to work a little bit on acquisitions, we've got to work a little bit on dispositions, but overall we know we can move deals.

Speaker 1:

Now shout out to Chattanooga, just south of Knoxville. I wouldn't consider Chattanooga a major metro in comparison to Knoxville and Memphis and Nashville, but it's also a great place to do deals. It's also home of our friend over at Easy REI Closings, david Olds. I know he does a ton of deals out there and Chattanooga has done a ton of deals out there. Chattanooga a lower volume city for us in Tennessee.

Speaker 1:

But the other thing that Tennessee offers outside of the three major metros is that there are plenty of rural locations that you can still do deals in. Now, the majority of people that teach virtual wholesale and say, hey, you need to stay away from trying to do rural deals. I disagree with that. I think there is low hanging fruit in the rural markets and the reason why is because it's not about the location necessarily, it's about the buyer activity. So if you can go to a place like Murfreesboro, which is home of Middle Tennessee State University, there is buyer activity there. But some people would say, due to the smaller population and the lack of deals that go on there, that you should stay away and you should just focus on Memphis, nashville and Knoxville. I disagree. We have done deals all across the state. Knoxville I disagree we have done deals all across the state and some of the best deals that we've done in Tennessee have been considered quote unquote rural.

Speaker 1:

So when you are going to buy leads in Tennessee, one of the things that I want you to pay attention to is the amount of buyers that you have there, and then you can also pay attention to their activity. So when you're comping a deal, you can look and see specifically on like Privy you could go and see hey, do I see comps that were purchased at 50,000 and then six months later sold at 150,000. You can also use any of the disposition softwares like InvestorBase, investorlift or DealSpeed to see the amount of buyers that are in the city or the county. Again, my rule of thumb with that is I want a minimum of 2,000 active cash buyers inside of the county. I hope to get that inside the city, but if I don't, I'll still do the deal. If you can have that many buyers, more often than not you're going to be able to move the deal.

Speaker 1:

Now Tennessee has a population of 7.228 million people, making it ranked the 15th most populated state in the United States. I bring that up because volume-wise, for us here at Titanium that's about where Tennessee ranks. So it's never going to be like a top five market for us and maybe some of that is due to the nature of what we do with marketing in all 50 states. I believe that it's just due to sheer volume of the leads that are coming in and we're also competing against the other wholesalers that are in the major metro areas like Nashville, memphis and Knoxville that are exclusively buying all those leads. However, where we get majority of our deals are in those tertiary markets right around the Nashville's of our deals are in those tertiary markets right around the Nashville's, memphis and Knoxville's, where that's where we crush. Specifically for us, the majority of our volume has been on the east side by Knoxville but right outside of Knoxville. That is where we have had the most success.

Speaker 1:

Now, that's not saying that you can't have the similar type of success inside of Nashville or Memphis. It's just specifically for us that's what we've seen. Why? Because that's the best buyer relationships that we have inside the state of Tennessee. So this is specific for us. But that's what this series is for to give you guys the feedback of what I've experienced inside of each one of these states. So, with Tennessee being the 15th most populated state with a population of just north of 7 million people, that's about where we rank.

Speaker 1:

But feeling wise conversation, the attitude that I receive from sellers, I love when I see a Tennessee lead come across because I know that if we can get a deal under contract and we do the appropriate copying and underwriting, we are going to be able to monet also how the major metro areas kind of cross all the way across the state, memphis being the far west, like if you've ever driven to Memphis from the west. You literally go across the state line of Arkansas to Tennessee and right across the river you're in Memphis, you're in one of the major metro areas. A couple hours later you're in Nashville. A couple of hours later you're in Knoxville. So the major highway that runs from west to east across Tennessee is basically going through the major metro areas, going through the major metro areas and because of that kind of unique geographical layout, I believe that's why we have been able to be successful, despite wherever the lead is located, to be able to move that deal in Tennessee.

Speaker 1:

So, volunteer State, I love you. I give you great rankings across the board acquisitions, dispositions and, like I said, anytime we can get a lead inside of Tennessee, I'm excited because I believe we can make money with it. So that's my take on wholesaling inside of the state of Tennessee. For those of you that have done deals inside of Tennessee, let me know what your thoughts are. I love to hear your take and your stories and I appreciate each and every one of the comments that ever comes across this channel. Show me some love on this.