The Titanium Vault hosted by RJ Bates III

Missouri Wholesaling Secrets You Need to Know!

• RJ Bates III • Episode 548

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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.

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Over 10 years in the real estate investing business
Closed deals in all 50 states
​Owned rentals in 12 states
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​Closed on over 2,000 properties
​125 contracts in 50 days (all live on YouTube)
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Speaker 1:

Welcome back to Wholesaling Around the World the Missouri edition. This is the series where I break down each and every state and give my perspective on how I think it ranks in regards to wholesaling real estate. Like today we're going to be talking about the show me state, missouri is, in regards to titanium investments volume, the second highest volume state, right below Texas, which is our home state and where we started our wholesaling journey. So, honestly, missouri is our highest volume virtual state in the entire United States of America. Now. It has a population of 6.245 million people, ranking it 19th in the most populated states, which is funny because a lot of our other highly ranked states are also highly populated. However, this is in the area of the United States that I tell each and every person when they ask me RJ, what market should I wholesale in? Let's say, if you need volume, go to the Midwest. It is the wholesaling holy ground right Missouri, ohio, indiana, illinois, michigan and back in the day before some of the regulations, I even threw in Iowa in there.

Speaker 1:

I've always enjoyed Missouri, but Missouri does bring some very unique traits to it. It's a larger state, I mean in comparison to some of the smaller northeast states and places like last week's episode, hawaii and the fact in land mass it ranks 21st in all the states. So it's not a tiny state, right, but in regards to its two largest cities, kansas City and St Louis, it's very unique because they're both on the state border, st Louis being on the east side, right there on the border of Missouri and Illinois, and then Kansas City actually being one of the most unique larger metro areas where it's actually just split down the middle and half of Kansas City is in Missouri and half of Kansas City is in Kansas. Very, very unique because what ends up happening with all of that land mass is that the majority of the state is actually pretty rural and a lot of our volume has come from those two large cities, kansas City and St Louis. Now we've done deals in Jefferson City, st Joseph, springfield, joplin, missouri and some other locations throughout, and there's deals to be had there and there are buyers. But if you're going to try to do volume in the state of Missouri, it's going to probably come in Kansas City and St Louis and, honestly, if I had to break it down, I personally enjoy St Louis more than Kansas City. The thing that's crazy about Missouri being our second highest volume state is that St Louis is one of my favorite virtual markets and Kansas City even though we have done significant volume there is one of my least favorite cities and it really comes down to the buyers. It has nothing else to do with the sellers or the market itself. I just really like the buyers better in St Louis. I feel like they're always trying to build that, establish that relationship. They're looking for more volume. And Kansas City I just have always felt like they're a little cold and it got to beat you up on the price point and, I will be honest, I had a bad experience back in 2020 with some comping and underwriting in Kansas City. So I'll take a little bit of that extreme ownership as to why I feel the way that I feel. Now let's talk about St Louis in particular and then we'll move on to the other areas.

Speaker 1:

In regards to wholesaling inside of St Louis, it's very important that you pay attention to the comps and you narrow down your distance from the subject property as tight as possible. In most areas in St Louis, you are going to have a plethora of comps, right? There's no shortage of that. You should be able to understand the values that are surrounding that property. Just like I said when I did Michigan, you have to pay attention to the as-is comps as well as what is currently listed and active on the MLS. That is your competition.

Speaker 1:

In St Louis. The majority of the city is probably going to be that lower price point and it's going to be known as, like your buyer pool is going to be both flipper and the landlord. You want to make sure that you are paying attention to those lower price properties that are being sold, as is. The other thing about St Louis is you can get into where what seems to be a really good price. Maybe a seller says where what seems to be a really good price. Maybe a seller says, hey, I'll sell you the property for $15,000, $20,000, $25,000.

Speaker 1:

You really need to ask about the condition, because my personal experience, some of those great price properties in St Louis almost become unachievable to dispo because of how poor the condition is. There are really bad properties and you can see this like if you were to do a FISBO strategy foresaw by owner, say, you don't have a budget or anything like that. One of the first cities that I would tell you to go to is St Louis. You're going to be able to find properties where maybe it has an after repair value of $100,000, $125,000. That is currently being sold for sale by owner for $5,000, $10,000, $15,000, but it's going to be in really bad condition. That is available to you Now. The other side of St Louis is that you will have really solid flips where it can achieve that $200,000, $300,000, $400,000 after repair value and it's going to be in that more mid-range price point probably where you're offering the seller somewhere between $75,000 to $150,000. Those are like bread and butter wholesale deals because there's almost always a buyer looking for those and it also stands like price point wise gives you enough to make a significant assignment fee, at least the average of $15,000. The last thing that I'll say about St Louis is that it also has quite a bit of duplex, triplex and quadplex small multifamily. Pay attention to when you go to comp those that you don't get lost into comping it against other single-family homes. Really tighten in your underwriting and your comping on these to make sure that you're finding comparables of the exact same property. Pay attention to the year built and really stick to your fundamentals when it comes to comping and underwriting inside of the city of St Louis.

Speaker 1:

Now, moving to the west side of the show me state, let's talk about Kansas City, or at least half of Kansas City, the Missouri side of it, very similar to St Louis, I will say the buyers normally want more cash flow. That's my perspective. Again, some of you might look at this and say, no, rj, that's not the case. I just personally have felt like that. Normally they want like a 2.5% to 3% rentals in certain parts of the Missouri side of Kansas or Kansas City, and we've just gotten beat up on those. And so the same principles as far as comping and underwriting transition over to Kansas City. Just make sure that you're truly paying attention to where the end buyers are buying and you're not trying to use one of those maximum allowable offer formulas, because that's where you're probably going to get beat up a lot.

Speaker 1:

Now, talking about the rest of the state, which, if you go on to any of the PPL marketplaces, there are going to be quite a few leads available in some of the more rural locations. What I would say is remember, trust your principles on this 2,000 buyers minimum inside of the county and then when you go to dispo this deal, you are going to have to work it, even in some of the higher population in the more rural locations. So, like St Joseph or Springfield or Joplin Branson some of these areas where we've been able to dispo deals, it takes time. If you don't have volume going through and you haven't already built that relationship with the end buyers, then it is going to take time. They are going to want to probably have that walkthrough. This isn't going to be areas where you have a bidding war or multiple offers and the buyers do know that They'll beat you up a little bit, but that's okay. Once you establish that relationship with them, you can go back to them over and over and over again with deals and really understand their underwriting process and how they're coming up with their offers.

Speaker 1:

Now, another one of the benefits of wholesaling in the state of Missouri is there are no wholesaling regulations. So as long as you're not brokering real estate or breaking any of the other laws that are already established against wholesaling, you're absolutely fine. Just go do your thing, be transparent about what you're doing, disclose when you need to, assignments, double, close. Whatever you want to do. It's all legal and allowed as far as June of 2025 for wholesale and real estate in Missouri.

Speaker 1:

Like I said at the beginning. Of all the states out there, missouri ranks second in volume for us. Now, a lot of that comes from our early days of virtual wholesaling and in the city of St Louis, like I said, I came very fond of the zip code 63136 and 63137. We did a lot of deals right there. It is what it is. I love the Show Me State. I think we'll always be doing a significant amount of deals there, year in, year out. Sellers are motivated, buyers are motivated, and that's what we need as wholesalers. So for those of you that are doing deals in the Show Me State, let me know in the comments how did I do breaking down the state of Missouri for wholesale and real estate? Show me some love, like the video. We'll see you guys on the next one.