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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
The 2025 Closers Formula | 5 Simple Steps To Close MORE DEALS
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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:
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What's going on everybody? Welcome to the King Closers Formula. I am the King Closer, and today we are actually gonna be going over the Closers Formula. This is the 2025 edition. This is the third rendition of the Closers Formula.
Speaker 1:Coming to you live on a beautiful Tuesday at 2.22 pm. We started these Tuesday lives back in October of 2023. We've been coming to you live every single Tuesday since then. It's one of my favorite things that we've ever done, and also today I'm going to be teaching my favorite topic how to talk to motivated sellers and how to close more deals. That's why you guys are here, and today I plan on breaking down the closers formula from front to back in more detail than I ever have before.
Speaker 1:Now, before we get into the closers formula, I do want to let you know there is a reason why we're doing this. Well, for one, every single year, we're going to come to you with the closers formula things that either I've added I've been teaching this now inside of titanium university, you know, basically every single day, so I now have added some things to it. There's a little bit more nuances to some of the closures formula since the first rendition back in October of 2023. But also because we have seen the power of the closures formula, what it is able to do for wholesalers that really adopt it. I get daily comments, really adopt it. I get daily comments, posts inside of the vault, dms, where people say I was really struggling and now that I've adopted the closers formula I'm starting to see success. In fact, I actually saw today there's a Reddit thread where someone asked about how to close deals and someone went in there and said you got to learn RJ Bates closers formula. I was struggling to close two to three deals a month. Now I close two to three deals a week and we've seen this over and over and over again.
Speaker 1:And so the reason why I'm saying this is not just to promote the closers formula, but it's to bring to light the fact that this does actually work and it is a simple formula but it takes time. To develop skills and truly live inside of the pocket is kind of the phrase that I use with the TU members. I use with the TU members Like you can have the skeleton of the closers formula, but to take it to another level, you've got to develop the skills and the subtle little nuances that make it truly successful. And so I say all of that to bring the light that over the next week until July well, actually, the next couple of weeks until July 3rd we are keeping the King Closers War Chess at its current price. After July 3rd, we are going to be raising the price and we are going to be separating the products inside the King Closers War Chess. Here's the reason why Because I want each and every one of you to own the King Closers War Chest.
Speaker 1:We don't really make a lot of money off of it. It's a $97 product. However, I do know that it has been able to change people's lives and their careers, and the reason why we do this is because we do want to change your life. I want to see you create your own reality. And so, as we were thinking, how can we get the King Closers war chest in more people's hands and give them the full training where you can see the seller matrix, where you understand the 10 different types of sellers that you'll talk to, the Ghostbusters protocol, the objection obliteration, all the things that we've put together inside of the war chest, not just the closers formula I just looked at my team and I said there's only one way to do this raise the damn price. So we're going to do that on the 4th of July. Until then, the price is $97. And the reason why we're doing this is because I want you to buy. That's it. I want you to buy the King Closers war chest. I want you to have the training because I believe in it, and I believe in it so strongly that I'm coming out here just point blank telling you I'm going to raise the price. So there's my pitch Kingclosersformulacom. Go there, get the war chest, slash war chest. Go get the war chest, because I want you to have it Now. I'll talk about it again at the end. From here on, we're going to talk about the Closers formula Now.
Speaker 1:The Closers formula came about a couple of years ago when I did the 50-50-50 in 2023. I was using nothing but inbound PPL leads and cold call leads from our virtual assistants. From there, we were able to get 125 contracts signed and about 69 point something percent of them made it to the closing table. We made a lot of money and after that I was asked to speak at Wholesaling Live in 2023. I wrote my speech and essentially, the speech was the closer's formula, but it didn't have that beautiful name yet, until our drive down to San Antonio to give that speech. I gave it to Cassie in the car, gave the speech and afterwards she said RJ, that's your closer's formula. And ever since then we have stuck with that. We've run with it and, like I said, I think it has impacted many, many lives out there and completely changed the way people look at wholesaling acquisitions.
Speaker 1:Where you embrace being yourself, you don't have to be RJ, you don't have to be somebody else and you're looking for motivated sellers that actually need to sell their property for a discount and you solve that problem by buying their real estate. So before we get into the closers formula, I do want to break down a couple of like foundational elements to the closers formula. Okay, one, closing doesn't need to be complicated. If it is complicated, you're probably manufacturing a deal and we don't do that. We find deals. Next, you do not have to be anyone else. Embrace being yourself. People want authenticity. It's probably why you follow me here on YouTube or on any other social media site, because you actually see that I'm being real and authentic in what I'm speaking about. That's the same thing that you should convey to motivated sellers when you're on the phone with them. Next up, we are the buyer in the transaction, so you shouldn't necessarily be doing sales. You should embrace that role that you have and have the seller sell you on their real estate as to why you should purchase that property. And a lot of times when people struggle with what questions that sellers, it goes back to this foundational element of not embracing the role of being the buyer. So truly embrace that and I'll talk more about that as we get into the closures formula and what that means. But it's a lot different than how other wholesalers are trained to do acquisitions Next up I touched base on this previously but do not manufacture deals.
Speaker 1:A lot of times we are going to talk to sellers that want too much for their property. It's not our job to then manufacture the deal. It's to find the deal and to solve that, and you do that by asking questions and finding the seller's true motivation as to why they would want to sell this property for a discount. Just today I was talking to a TU member where the seller already had a property listed on the MLS into a TU member where the seller already had a property listed on the MLS and it was for a fairly decent price for the property. My question to the TU member was is what problem are we solving that the realtor is not solving? That the open market is not solving? This is truly embracing not manufacturing a deal because you have someone on the phone that is willing to talk to you Truly. Look for those properties that need our help and we have the solution to provide them.
Speaker 1:Next up, become a machine as you get used to calling and using the closers formula. There should be answers that are given by sellers and questions that you automatically default to, and you almost always ask the same questions in each and every call. We'll go through this. It's not scripted because it's in response to what the seller says, but you do need to become machine-like in your habits to make sure that as you're going along in the conversation, you don't forget what you're saying while you're taking an action like copying and underwriting, looking at Google Street View and trying to understand what you could offer on the property. The way that you do that is have specific questions that you always go to so you can kind of multitask during the call.
Speaker 1:All right, last thing I'll say is guys, don't overthink this process. Everything that I ever want to teach on this YouTube channel inside of Titanium University, and all of our training is to simplify the process. I want you to really understand that, ultimately, what I want you to do is to have an honest, real, authentic conversation with the seller as the solution that we provide, and what motivation do they have? If you can do that, you will close more deals. All right, what a start. What's up, guys? We got Kente in here. Crispy Bacon, scarlett, victor, kevin. What's going on, guys? I appreciate y'all coming on today. Show me some love. Like I said, this is always one of our biggest videos out of the year, so make sure you like today's video. Let's get in to the closers formula Now.
Speaker 1:We talk about it being five steps, and there are five steps. However, there are going to be things that we need to do within each step. Now, step one is the most simple step out of all of them. Okay, step one is verify that the seller still needs to sell their property. Now, every time I teach this, I always kind of laugh, because this is a step that does get forgotten about, especially when you're nervous or the seller throws you off of a rhythm at the beginning. Each and every call should go similar at the beginning.
Speaker 1:Now, I know there's going to be times where a seller yells at you or ask you a question that you didn't anticipate, and that's okay. But you need to make sure at the beginning of the conversation that you verify that they still have a piece of real estate that they want to sell and that you know it's the correct piece of real estate. So, for example, say, I have an inbound lead or a lead that was set by my cold caller. We're going to call that seller and say, hey, is John there? This is John. Hey, john, this is RJ Bates. Looks like you speak to someone on my team. Or you filled out a form on my website about 123 Main Street needing to sell that property. Are you still looking to sell? It's very simple, but it lays the groundwork and the foundation for everything that we want to establish.
Speaker 1:In this conversation, I always use the analogy of the seller is sitting in the back seat of the car and they're telling us where they want to go and we're the chauffeur. We're still driving the car, and so in this scenario, what I want to do right off of the bat is set the precedence that I'm going to be asking questions and they're going to be answering. Now we're going to vary between close-ended questions and open-ended questions At. We're going to vary between close-ended questions and open-ended questions At the beginning. This is a very close-ended question Are you still looking to sell 123 Main Street? What I mean by close-ended question is normally what you're giving them is a yes or no answer. Right now I know there's scenarios where they say, well, for the right price or maybe, or something like that. If they give you an answer like that, really hammer home and find out does this person need to sell their house?
Speaker 1:One of the situations that could kill us is if we do not verify that they want to sell their house and then we continue on for another 10, 15, 20-minute long conversation, all to find out well, I don't really need to sell. I was just curious what you would be willing to offer. We do not want to fall into that situation. Now, if you're cold calling the seller, okay, using the closers formula. Hey, this is RJ Bates.
Speaker 1:I was reaching out about one, two, three main street. Are you looking to sell that property? Very simple Is it going to be as effective as if it's a lead that already has raised their hand and said I have a property that I want to sell, absolutely not. There's going to be people that say how'd you get my information? No, I don't want to sell, but we still always need to verify that they want to sell. So that's step number one. Step number two establish price.
Speaker 1:Now this is the part that really changes the game for so many people, because they're taught to build rapport, go into condition the timeline, the occupancy, and then we touch base on price. And I've even been called out by different people in the industry where it's hey, you shouldn't ask for the price early on. I wholeheartedly disagree with that standpoint and here's the reason why. One I do not want the seller to get so comfortable in the conversation that the price actually gets increased later on, essentially not embracing being the buyer. They will feel that sales pitchy side of us and they'll increase the price Like, hey, if we're chasing after them, well then, maybe they're willing to pay more money for it. So, right off the bat hey, john, we're reaching out to you about 123 Main Street.
Speaker 1:Look like you spoke to someone on my team or filled out a form on my website about selling that property. You still looking to sell? Yes, I am Awesome. Always confirm that. You heard what they said Awesome, how much are you looking to get for that property? Or how much are you asking for that property? Now, here's the thing. Don't use my exact words because I want you to sound like yourself. So, however you would phrase that normally, what you're asking price, how much are you looking to get for that property? How much are you asking for that property? Anything of that sort? I want you to use that in your own natural language. But we want to establish the price early on.
Speaker 1:Now one of two things is going to happen. The majority of the time, you'll get a price out of them, especially if you deliver this with confidence, as if you're setting the precedence that, hey, every single call that I place. This is how the conversation goes. If you come in with that confidence, the seller will say well, this is just how the calls go. Yes, I want to sell $100,000, and then we would move on to the next step. Now there, this is just how the calls go. Yes, I want to sell $100,000. And then we would move on to the next step. Now, there's always going to be the small percentage of sellers that refuse to give you or want to play that negotiation game, and that's okay. We can revisit price later on. Or you can make the decision to stand firm and really want that asking price right then and there. What I will tell you is there's not a right or wrong way to do this. You really want to be firm, which I have shared this on my YouTube channel. Where I say, how much are you looking to get for that property? They say, well, we don't know. I mean, how much are you offering? Oh, I'm sorry, I thought you were selling.
Speaker 1:Normally, if someone's selling something, they have an asking price. So do you guys need some more time to figure out how much you want for the property? You want me to call you back later If you want to be aggressive and see if they chase after you. It's a great barometer of seeing if there is motivation right out of the gates, because if they truly are motivated, like put yourself in the seller's shoes If you desperately need to sell your property right then and there you're probably going to shoot out a price. If you're not that motivated, you'll probably let us just get off of the phone. So there's two different ways to handle that. Probably let us just get off of the phone. So there's two different ways to handle that. You can either just move on to step three and ask the open-ended questions or you can stand firm and demand that that seller give you an asking price right then and there. That's your personal preference.
Speaker 1:I flip-flop back and forth between the two. One of the deciding factors is especially if I know their motivation coming into it. This is why I love PBL paper leads. A lot of times when we get those leads we already know the motivation, or at least that surface level motivation. So, for example, if I were to get this from Leadsolo Property Leads or Speed to Lead, the majority of time I'm going to know that they're selling it because of financial distress, vacant, non-occupied property, a tired landlord, inherited, divorce, something along those lines. Now, for example, if I know it's an inherited property and I ask them how much they want for the property and they say we don't know, I'm probably not going to hammer them for a price. It's an emotional situation. But if it says tired, landlord, vacant, not occupied, I'm probably going to be more aggressive because I understand who I'm speaking to. So get a price out of them At least. Start the conversation about asking them what the price is. Start the conversation about asking them what the price is. Now, next up is discover their motivation. How do you discover a seller's motivation With open-ended questions? Now, what I will tell you is we are about to spend a significant period of this video talking about discovering their motivation.
Speaker 1:A lot happens in step three of the closers formula. This is where you have to develop true skill sets and understanding how to navigate conversation. So the initial question that I personally ask one you have to confirm that. You just heard the price, that they told you $100,000. Okay, well, tell me a little bit about what you got going on. Okay, that's how I phrase it. It's the very broad, open-ended question. One of the things I want you to avoid is steering the seller down a specific path. What I mean by that is we don't want to say, tell me a little bit about what you got going on with the property. Or well, tell me a little bit about the property. That's steering them to talk about condition or occupancy or something like that. We want this question to be so open-ended and broad that the seller then has to make a decision on what they want to talk about, because normally what's going to happen is that seller is going to pick the most important aspect of this transaction to them. Tell me a little bit about what you got going on. That's where they typically decide they want to speak about that motivation. That's why we talk about.
Speaker 1:Step three is discover their motivation. Now, as we ask that question, there are going to be two different things that you need to determine before we truly decide what their motivation is. So, ultimately, in step three, we are going to determine three different things. The first thing is you need to identify what type of seller am I speaking to? And this is in the war chest. This is on the seller matrix where we break down the 10 different types of sellers that we're speaking to. Now, this could either be like the unprofessional, tired investor. This could be the professional, tired investor. This could be the owner occupant, could be death, inheritance, pre-foreclosure, like financial distress, and all of this matters, because you're absolutely going to speak differently to the professional, tired landlord than you're going to speak to the wife in a divorce, or a wife whose husband just passed away, or the kids who had just inherited a property. Right? Those are different types of conversations, different ways of really understanding their motivation and the open-ended questions that you should ask. So you need to identify what type of seller that you're speaking with. Simultaneous to that, you are also going to determine which seller bucket they fall into. Now there are four seller buckets Too bad, too good, too bad are incorrect price, no motivation.
Speaker 1:These are the sellers that should absolutely sell the property with a realtor on the MLS. They have no motivation to sell that property for a discount and the price is full retail. We are not their solution. This is where we embrace no and we do not manufacture a deal and we move on to the next.
Speaker 1:Now, each and every one of these scenarios, you want to always offer a solution, so we don't just say I'm not the right fit for you. You can say, mr and Mrs Seller, based off of what you're telling me right now sounds like there's no motivation. You want full retail. The price that you have is full retail. Why are you on the bone with me? I'm an investor. I can't pay that. Okay, you do want full retail. The best solution for you is to list with a realtor. That's how you get full retail. I'm not a solution. Move on.
Speaker 1:The other bad bucket is no motivation and the price is correct. Now, this is one of those scenarios. That normally throws people for a loop, but it will help you close more deals, especially when you talk to the sellers who have a ton of motivation and the price is correct. Sometimes we have a tendency to ask the seller how much do you want for that property? And they say $5,000. And we pull out the comps. $5,000 is a straight banger of a deal and we decide that we no longer need to discover their motivation.
Speaker 1:It's very important to understand why someone would be selling you a property that is a great deal. If you do not do that now, I will say this bucket right here of correct price, no motivation, is the least common bucket. It's very important because it's the one where normally it won't make it to the closing table, because either there's an underlying lien of some sort a judgment, an encumbrance, they're a scam, they don't even have the rights to sell it. There's a third party that also has to sign off of the property, something that's going on and they're just seeing if this can push through because they're not the real estate professional. So you still have to move through the process of truly asking open-ended questions to discover their motivation. This is why step three is so important to really understand.
Speaker 1:Which seller bucket am I speaking to? Let's talk about the two good seller buckets. I already touched base on one. It's the one everyone loves highly motivated and the correct price right. The lay down bucket, the one that I get made fun of, where it's like oh, rj didn't do anything, he's just an order taker and that's absolutely okay. I made a ton of money just taking orders. However, what people don't understand is we still have to go through the process. The mistake that people make when they talk to this type of seller is they get so excited they fast forward through the process. They still don't ask the opening questions, truly discover the seller's motivation, explain how this is going to work and walk them through the entire process. So be alert of that when you talk to this type of seller.
Speaker 1:Now, the most common type of seller is the last seller bucket, which is highly motivated and the price is incorrect. These are sellers that tell you well, zillow says my house is worth $200,000. Or I talked to a realtor and they pulled comps and they told me my house could sell for 200,000, without knowing the condition or their situation, aka their motivation. So, as we ask that opening line, tell me a little bit about what you got going on. You wanna sit back and you wanna listen and you wanna truly hear what that seller is telling you about their situation. Now, from that, you need to ask somewhere between four to six more open-ended questions to truly determine their motivation. Now, this is something that I'm going to be hammering a lot inside of my content inside of Titanium University really making sure that you guys understand that you need to put yourself in the seller's shoes, because the majority of time, what happens is closers will ask tell me a little bit about what you got going on, and the seller will tell you something like well, my wife passed away and I need to sell my house, and they now determine that that is the seller's true motivation. What I can tell you is is the majority of sellers that are truly highly motivated to sell their one of the largest assets that they're going to own in their lifetime for a discount have layers to motivation, and the only way that you're truly going to get there is by asking more questions.
Speaker 1:I did a video yesterday that got released where I put myself in the seller's shoes and I use that exact example right there where my wife passed away and I wanted to downsize and I wanted to sell that house. Now that was the surface level motivation. The true motivation, the deeper level, was I was miserable in the house. I needed to get out of there and I was missing out on my life. My kids had moved away, they had grandkids. I missed the first t-ball game. I missed the dance recital. I was lonely, no one to play golf with. I was playing poker by myself and drinking Tito's. That's the true motivation as to why I have to get the hell out of this house. But the service level was my wife passed away and I just want to downsize.
Speaker 1:It's our job during step three to ask questions, to dig deeper, to truly understand. Now some people refer to this as building rapport. Unfortunately, building rapport means that you've got to become friends. This isn't about becoming friends. It's about truly understanding what that seller is going through so you can solve that problem. This is how we understand what the occupancy of the property is, what the timeline of the property is, we find out more about the condition and we don't have to ask direct questions about condition, how old the roof is, and things like that. You could do that by truly just asking the seller to open up. Tell me a little bit about what you got going on. They give you a response. Tell me more about that situation, sometimes simply repeating what they just said to you.
Speaker 1:I tell every single closer inside of TU when a seller gives you a response, I want you to pause one second, two second, three second and don't just ask any question. Ask the right question. If you don't know what the right question to ask is, sit in that silence until you do know. But it should be based off of what they just told you. And you keep it on topic.
Speaker 1:One of the worst things that I see closers do is they ask the seller tell me a little bit about what you got going on. Because that's the skeleton of the closers formula. Rj said I'm supposed to ask that, and then the seller says my wife passed away and I want to downsize. And then they say well, tell me a little bit about the condition. Well, tell me a little bit about the condition. How does that have anything to do with what the seller just explained? As far as motivation, when you say downsize, what does that mean? I'm so sorry to hear about your wife's passing. Sure that's been really tough. Just a simple confirmation that you heard what they said could then open them up to tell you so much more about their situation, where you could then hear about yeah, I just called my buddy to play golf earlier and he's out with his grandkids. So then I called to talk to my grandkids and I found out I missed their t-ball game and the dance recital.
Speaker 1:And you truly start understanding what this seller is going through and then you can start identifying how you could be the solution. So if I were to buy your house it sounds like you want to get over there to not miss any more t-ball games and dance recitals how fast could you get out of the house? How fast would you want to move? Is there a specific dollar amount that you would need to move halfway across the country? How did you come up with that original asking price? This is how you navigate these conversations, where at the end, it feels like you're not even making an offer. You're literally just saying yes to what the seller says they need. That is the power of the closure formula, and it all happens right here Identifying who you are speaking to, what is their motivation, the seller type. Then understand which seller bucket. So you understand, because the two good buckets that you're gonna speak to it's either right price, highly motivated. We then move on to step four and step five of the closures formula after we truly identify their motivation.
Speaker 1:The most common type of seller that we're going to speak to is the seller that initially asked us the incorrect price, but they explain how motivated they are. What can happen by you truly digging deeper into their motivation is they will stair-step themselves down on the price. So many times a seller has told me that the price that they gave me came from their Zestimate. Or realtorcom told me that's how much my house is worth. And as you continue to ask open-ended questions and you ask questions like how did you come up with that price? How much money do you actually need? How much do you owe on the property? Is there a specific cash dollar amount that you would need to walk away from this property, and you start really identifying this, that price will naturally start coming down.
Speaker 1:If it doesn't, the way that we overcome this most common seller bucket is through education. So let's pause here for a second and talk about how do we educate a seller when the price is incorrect One. You have to finish truly understanding their motivation, because we want to make sure that their motivation for selling this for a discount matches the price that we need it as a real estate investor. And we want to marry those two. And we do that through the education using our profit calculator, the exact same way that it's lined up. We're going to do the exact same thing. What's the first number that you have to identify when you're looking at the profit calculator? The after repair value. So simultaneous to us still being in step three, which is discovering their motivation. Now we've understand who we're talking to. We're going to move on to step four, which is analyze the property. Now we're educating the seller who wants too much, the most common seller that we talked to, the ones that you guys feel like cannot be closed. Yet we are seeing these deals be closed over and over and over again, using the closer formula. So we talk about the after repair value.
Speaker 1:Mr and Mrs Seller, you said the property does need some work. If I were to fix the property up, what do you think the property would be worth? It's very important that you ask that question because you want to understand if they truly understand what's happening inside of their neighborhood and in the market in their area. Okay, now, a lot of times I will not want to necessarily argue with them if the number that they give us is incorrect right off the bat, because there's power in agreeing with someone. Majority of people want to be right and they feel like they are right. So it's hard to change people's minds. So ask them how much do you think the property would be worth once it's fixed up? Once you have that, plug it in to the profit calculator? All right, so you think your property could be worth $200,000 once it's fixed up.
Speaker 1:With that being said, how much do you think I would have to put into the house, in work the rehab, to achieve that value? Because that's what that number is. It's the after repair value. So you ask them all right, let's see how much do you think I need to put into the house to fix it up? We want to get a baseline understanding of what they believe this is going to be worth and what it's going to take to achieve that. Now, if you've already made it this far in the conversation, more than likely they are not willing to do the work themselves, so they're going to tell you a number. A majority of the time, what I've found is the after repair value is going to be high and the rehab is going to be low.
Speaker 1:It's very common to how most wholesalers actually underwrite their deals. So what we're going to do is we're going to say, all right, taking your active repair value and your repairs just the numbers that you gave me, assuming that those are correct we already have built in our fixed costs, which are holding costs, and closing costs, which are holding costs and closing costs. The holding costs is utilities, property taxes, maintenance and the cost of capital. The closing costs is well, we're gonna cover the closing costs when we buy it from you, the realtor commissions, when we sell it on the open market and then on the retail market, we actually have to pay those closing costs for a second time. So that's what those numbers are. Those are fixed costs based off the numbers that I'm using, and then I want to make profit for doing that work. This is how you come up with what your offer would be. This is how we underwrite each and every deal.
Speaker 1:Now, again, remember, you're using the seller's numbers. Now you're going to look at that and you're going to analyze that and see what that dollar amount would be Now if they gave you fairly accurate numbers, then you're good. You're now going to walk them through and explain how you got to that number. The house could be worth $200,000. How you got to that number. The house could be worth $200,000. You said I have to put $25,000 into it. I've got holding costs. I've got closing costs. I want to make profit. This is how I'm coming up with my offer. So it's not about what Zillow said or realtorcom. It's math, not magic. That is exactly how I would explain that to the seller.
Speaker 1:Now let's assume that the after repair value that they gave you or the rehab amount that they gave you is incorrect. This is where you would have to use specific examples. So for one, if I get to a situation where the after repair value is significantly off, I would actually use a specific address, one that is as close as possible to the subject property. I do not like to go further out than a quarter mile from the property. I don't wanna cross any major roadways or highways. I wanna keep it as close as possible to that address and say Mr and Mrs Seller, there's a property that was rehabbed very close to your property, right here, and it's sold for this and we have to have a conversation that normally lasts somewhere between five to 10 minutes, going back and forth, until they actually verify that they agree that after repair value Now let's assume the rehab is incorrect than after repair value Now let's assume the rehab is incorrect. This is the more difficult one to get sellers to agree to, because they just don't understand.
Speaker 1:There's always that well, you could hire the company, or you could hire the individual, or you could do the work yourself. We've all heard these excuses. All I like to say is I not going to do the work myself and I am going to hire a professional to do this because I want to make sure that it gets done correctly? In fact, I've actually lost more money by hiring the wrong people and then having to do the work two, three times to make sure it gets done correctly.
Speaker 1:When we're talking about the rehab, I like to pick one specific item that I know needs to get done on the house, and I will use just the material cost for that item. So one of the things that normally needs to be done on a property is flooring. Flooring is a very common item. It needs to be replaced because it gets worn out by people living in the property itself. So what I'll do is I'll say all right, mr and Mrs Seller, you said the property needs new flooring. I'm just looking at the comps and if I were to put that exact same flooring that they put in there and I just go to Home Depot or Lowe's, that flooring, just for the material alone, comes in at $5 a square foot. And, mr Seller, you have a 1500 square foot property. So just from the materials alone, I'm coming in at $7,500. Does that make sense? Because I have to do all the accessories and then I have to hire labor. So just on that alone I'm at $7,500. I'm probably pushing 10 grand.
Speaker 1:This is how I'm getting to my actual rehab number, because I do this for a living. So I just want to kind of show you how I'm getting to it. It's not just a spit ball kind of like you were giving me there. It's actually based off of what I experienced. I just want to explain how I'm coming up with that number. Now, this is the part of the conversation that could take a lot of back and forth, especially those that have done work themselves or have hired out. But you want to get them to agree to the after repair value and the rehab amount.
Speaker 1:Now, one of the KPIs that I want to give you guys is that when you're speaking to these types of sellers, your goal to be one of the elite wholesalers in this industry would be to close one out of nine of these types of sellers where the price is incorrect, but they are highly motivated. It has nothing to do with the ones that aren't motivated and the price is incorrect. This is when they're highly motivated, the price is incorrect and you have moved on to the education process, where we're actually discussing after repair value, rehab, breaking down the profit calculator and coming up where in buyers buy right. We don't like to use the term maximum allowable offer. We want to come up where we know an end buyer would buy this property and you're going to break that down using the profit calculator. That is the metric that you're aiming for. Okay, so now we have analyzed this deal, we have identified the type of seller that we're talking to, we have discovered their motivation, we put them into a seller bucket and then we revisited analyzing the deal, talking about price.
Speaker 1:At this point, the only time you should move to step four is you have identified you are speaking to someone that is highly motivated. If motivation does not exist, you should never enter this step, embrace no and move on inside of steps two or three. All right, so now that we're this far in the conversation, we shouldn't be able to move on to step five? The only time we can't move on to step five inside of step four is when we're talking to one of those sellers where the price is incorrect and we just cannot get them to agree to our numbers. At that point in time, you just have to say I understand your position. I've tried to explain mine. It seems like we're not going to see eye to eye. I'm going to have to move on and talk to a different seller. Okay, once you have identified that they're prepared to move on to the next step.
Speaker 1:The fifth step is how to close the deal, and this is very important because there are steps here to get overlooked and missed, and this is where sellers will end up ghosting you or saying they agree and they don't sign the contract. So remember, we're still utilizing the four seller buckets, so let's go back to that good bucket. The bucket of price is correct and they're highly motivated. How do you close that deal? It seems like on the surface, it should be the easiest close. However, it's the one that people mess up, and the reason why is because they get excited and they feel like they don't have to go through the necessary steps. Remember, you want to make sure you really discover their motivation. You understand that, so they feel heard and like they don't feel rushed. Okay, you also don't want to spook them like they asked for too low of a price and then they decide they want to raise the price on you later on. So the next step that you're going to move on is to what's called reverse rapport. This is where you are establishing your credibility inside of the conversation and you're explaining the process moving forward. Now I'm going to explain our process, but whatever your process is, you should use that during the reverse rapport section. So here's how I do that Discovered their motivation, the price is correct.
Speaker 1:All right, mr and Mrs Seller, so we've talked about your price. I understand why you're looking to sell the property. We've talked about your price. I understand why you're looking to sell the property. If we were to come to an agreement on price today, what I would do is I'm going to send over a simple two-page agreement. It's a purchase and sell contract. It's going to simply outline that I'm the buyer, you're the seller. That agreed price when we're going to close, we close at a title company. Here's the closing date. Want to make sure we outline all that Once you sign that contract?
Speaker 1:We are then going to come out and we're going to do our inspection of the property. We're going to do a walkthrough and we're going to verify that everything that you said about the property is true and if it is, we'll be good to close at that price and on your timeline. However, if we were to come out and we were to walk the property, we identified that there's something wrong with it or something that wasn't disclosed on today's conversation. We will need to revisit price and timeline. Does that make sense to you? That is how you outline your process. You build credibility and it's referred to as reverse rapport.
Speaker 1:Now there might be some questions about the renegotiation, or what do I mean by if there's something discovered that wasn't disclosed or something like that? Just simply explain the process. Sometimes it's as simple as repeating yourself Once they have verified that they understand the process. Sometimes it's as simple as repeating yourself Once they have verified that they understand the process, you're going to move on to what's referred to as the kill shot, all right. Well, with that being said, if I were to come in and I were to pay cash and I were to cover all the closing costs and there's no realtor commissions, what's the best price that you could do for me Now again, remember this is with the sellers that the price was already correct or close enough for us to ask that question.
Speaker 1:When we use the kill shot, it averages out to give us somewhere between a 10 to 20% price drop. So what I mean by the price needs to be close enough is it needs to at least be within 10%. If you're at 15 or 20% off and you're counting on the kill shot to be the solution, you're using it incorrectly. You should have educated the seller back in step four. So if we're close enough, we go through the reverse rapport. We hit them with the kill shot Once they give us that price. That's where you say, okay, I can do that. What's your email?
Speaker 1:Draft up the contract, send it over to them. Try to always keep the seller on the phone. If they are available to sign the contract, we want to keep them on the phone. Walk them through the two-page agreement, explain each and every clause. What's going on? Normally, what happens is when we send that contract over to them and we start explaining it, walking them through it, they say, all right, I got it, I'll go ahead and sign it. Boom, it's done. Once they've signed that contract, you explain to them and set the expectation of what's going to happen next. All right, mr and Mrs Seller, I appreciate you signing the contract. We're all good to go. Here's what's going to happen. Either myself or my team is going to reach out to you tomorrow. We're going to reach out to schedule that inspection or that walkthrough. We're going to go ahead and send this contract off to the title company or the closing attorney. We're going to get that process started. You guys can rest easy tonight, knowing that this property is now sold. We'll talk to you tomorrow. We'll get this process started. Boom, seamless, beautiful close.
Speaker 1:Now let's go back to what do we do when we talk to the seller whose price is incorrect? To what do we do when we talk to the seller whose price is incorrect, but they're still highly motivated. Maybe we've gotten them to come down a little bit on price. All right, you still go through the same steps. You just have to navigate it a little bit different. For example, you're going to talk about reverse rapport. You're going to explain the entire situation, build that credibility so they have the expectations of what to know is coming next inside of the transaction, if they were willing to sign that contract. However, in this type of seller we rarely want to use the kill shot, and the reason why is because we are stair-stepping them down on price. So normally during the education process we want to get them down to the price that we need. The only way that we do that is by already disclosing what that is during the education phase. Remember, we're going to explain this is the after repair value. This is the amount of repairs that are needed clothing costs, holding costs, profit. This is how I'm coming up with my number. Once you get them to agree to that, then you would move on to reverse rapport and then move on to sending the contract, walking them through, explaining it, getting it signed and then setting the expectations for doing recon and starting the title work. So that is how we navigate the two good buckets during step five, which is closing the deal.
Speaker 1:Now, again, like I said at the beginning of this, the closers formula has changed many people's lives, changed how they close deals. One thing that I want you to understand is that it takes time to really understand the subtle little nuances that go on, and this is why I'm such a big. Well, I'm flat out just trying to slap you guys in the face with the training that we offer with the war chest. You guys have watched my channel for years now and I don't normally try to promote our products, but I've seen that this really changes people's businesses. And understanding the seller types, understanding how to not get ghosted when you send contracts, understanding how to overcome objections during these calls it's really difficult for me to sit here in an hour and explain how to overcome each one of the objections that can come up or truly understand how to ask the open-ended questions and determine which seller bucket they fall into. This is why we have that deeper level training. This is why we do live seller calls every single Thursday inside of Titanium University, because the training never stops.
Speaker 1:I tell each and every person that joins Titanium University my goal is to make each and every one of you perfect on the phones. The reason why is because it's unobtainable. That means we never stop growing. We never stop working to be better. I myself still work on closing. I watch film of myself. I watch myself on silence to watch my body language and try to understand what would I be trying to convey right now to that seller? Am I in an education phase? Can I tell who and what type of seller I'm speaking to?
Speaker 1:It's important that you are taking this as serious as we do, because acquisitions is the heartbeat of every single wholesaling business. There is no way to get around it. Now. Lead generation extremely important. It's the foundation. Acquisitions is the heartbeat. Understanding that dispositions without that, nothing happens. You need it, but dispositions can do nothing if it doesn't have a contract. So this is the lifeline of your wholesaling business.
Speaker 1:It's why I never stop talking about this, because I want you guys to be able to experience what I've experienced over the past decade with wholesaling real estate. It's changed my life and I'm passionate about it. It's why I come here every single day talking about this topic and that's why I want you guys to buy the Closers War Chess so you can also have that training. Ultimately, I want you to be inside of TU so I can work with you hands-on every single day and answer your questions Because there is no way that I can teach this just on a live video. It's impossible. I need to be able to see your body language. I need to see how you navigate your screen. I need to see your listening capabilities. And I hear people say I'm using the closers formula perfect. It's impossible, because you cannot ever be perfect on each and every single call. There will be mistakes that take place. There will be training that needs to be had. You sometimes just need another person listening to the exact same call to say you steered the conversation this direction when it should have gone that direction.
Speaker 1:Subtle little nuances make a huge difference inside of the closers formula and that's why I've always said scripts suck, because they tell you what you're supposed to say. They give you a framework. That's nothing but a skeleton. The skeleton of the closers formula is do you want to sell? How much do you want? Tell me a little bit about what you got going on and close in the deal. It's nothing, because it's just a skeleton.
Speaker 1:You really understanding who you're speaking to, why are you asking the questions that you're asking, and truly understanding the process of why you're asking those questions is what takes your closing abilities to the next level. And if you want to know why I believe that so much, it's because that's what has made me the king closer. It's why I never have any sort of nerves when I pick the phone up and call a seller, no matter what the situation is, because I can identify their situation and know should I be able to close this one or should I not be able to close it? It doesn't matter. I know my process and I know the KPIs that I should be able to hit. So, ladies and gentlemen, that is the 2025 closers formula.