The Titanium Vault hosted by RJ Bates III

The Garden State Dilemma: Navigating Wholesaling in New Jersey

RJ Bates III Episode 588

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 New Jersey edition. Today we're going to be talking about my feelings about wholesaling inside the Garden State, which is the 11th most populated state, with just over 9.5 million people living inside the state. So here's the thing, with it being the 11th most populated state. Normally, with that amount of population, it's a great location to wholesale. However, new Jersey has both good aspects to it and negative sides. The good part is that there are motivated sellers that do need to sell, which is one of the things that we're always looking at in states that we're trying to wholesale and there are a significant amount of end buyers inside of the Garden State. However, it is an attorney state in the northern part as well as the title state in the southern part of the state. It's very unique in that regard.

Speaker 1:

The attorney aspect. You guys have heard me complain about attorney states for years now. They just cause issues. Attorneys are some of the biggest deal killers out there and it has caused us issues even when we have dispo deals previously where attorneys have caused delays, caused issues with sellers disclosing you know how much money we're making when it wasn't supposed to be disclosed, elongating closings, causing sellers to become frustrated. There's been all sorts of issues when it comes to closing with the attorneys inside of New Jersey.

Speaker 1:

Ultimately, my feelings about New Jersey and wholesaling are kind of eh, I never see a lead in New Jersey and go man, that's the lead I want. Just because my wins in New Jersey have been okay, my losses that have come in New Jersey have been pretty crippling. I mean, we have had deals where we stood to make $50,000, $60,000, get killed. They didn't make it across the finish line for different reasons. And then also one of the things like the personality type of the sellers in New Jersey has always been kind of harsh, like rash, and that's been not necessarily what I'm looking for when I'm buying leads. So I've always kind of just been a little bit more negative about New Jersey. Now we're not talking about, like West Virginia. Negative about New Jersey. It's just not in the upper echelons of locations where I want to wholesale as a virtual wholesaler.

Speaker 1:

Now, that being said, inside of titanium university we do have quite a few students that are located in the Southern New York and Northern New Jersey area. Some of them are local wholesalers in New Jersey, specifically Joshua English. He's been with us since the first class of titanium university. I know that he does very well inside of the state of New Jersey and sticking to it right. That was one of the reasons why he came to titanium university. He didn't want to expand nationwide, he wanted to be able to close deals inside of new jersey and he's been able to do that virtually, um, and he has success. So I'm not saying it's a bad location to wholesale. It's just if you're wanting to expand out of your local market and looking for a new state, new Jersey is not going to be the place that I'm going to point you in and say that's a place that you can go in and easily do a virtual wholesale deal. Now, there are some benefits to New Jersey and the fact that there are zero wholesale regulations. As long as you just abide by the normal wholesaling laws and regulations, you're just fine there, which is great in comparison to its neighbor like Pennsylvania, which has some very harsh regulations. And also, going back to the attorney aspect of it, I do think that the attorneys are better in New Jersey than they are in New York, right? So in surrounding areas, new Jersey actually does kind of stand out against some of its competition directly around it Now, in regards to the deals that we have closed in New Jersey, we have done deals from all the way as north as Sparta, new Jersey.

Speaker 1:

Obviously, we've done quite a few deals around the Newark area, piscataway, montclair. We've gone down to Lebanon, we've done Hillsborough Township, we've done Trenton, New Jersey. We've done Morristown, right outside of Philadelphia, and then we've gone as far south as Cape May Courthouse as well, as we've done Pleasantville and some other locations throughout the state. So we have done deals all the way from north to south, east to west and throughout the different parts of it. What I will say is dispositions is easier in the northern part of the state. It's more populated up there. Down in the southern part of the state at least my experience it's a little bit more rural and it's harder to find buyers. So give yourself a little bit more time if that's where a lead comes in, if you're virtually wholesaling in New Jersey and you're new to it.

Speaker 1:

Another thing is paying attention to, when you're comping and underwriting, the cash flow aspect of it. I've seen quite a few small multi-family leads come in in New Jersey. Right, we're talking about the duplexes, triplexes, quadplexes, triplexes, quadplexes, even five and six units. Pay attention to the rent rates and what the end buyers are buying those at. And as is condition, because in some areas the buyers are going to want a 2% to 3% rental and in some areas a 1% or even worse would be acceptable to the end buyers in that area. It's going to be very it's going to be dictated by the comps. You're going to have to underwrite that and make a very tight box to understand exactly where your end buyers are buying. Now you would have to loosen that up the southern portion of the state because there's going to be fewer comps there. But especially up north in the Newark area, you know, right across the river from New York City, that's going to be chock full of comps. Right, the benefit there is you are going to have plenty of end buyers, but you're going to have a ton of competition on the acquisition side.

Speaker 1:

So ultimately, when I've looked at New Jersey, I've always kind of felt like acquisitions wasn't impossible, but it wasn't easy either. So it was always kind of like middle of the road, probably like if I had to give it on a scale of one to five stars, five stars being super easy, one star being impossible, it's kind of two and a half to three stars on acquisitions, dispositions. I've always kind of felt about the same. It's about three stars depending upon where you get the deal. I feel like in the northern part of the state it's a lot easier to dispo, harder to acquire. Southern part of the state easier to acquire, harder to dispo. That's kind of my feelings about New Jersey. Again, when we look at this series it's kind of to give you guys an insight to my feelings and my thoughts about the different states and whether or not you should virtually wholesale.

Speaker 1:

My ultimate decision on New Jersey is it should not be one of the early states that you try to move to unless you have a direct connection or market knowledge or an end buyer there. But if you have that you should absolutely get deals there because they can be extremely profitable. I will say the average assignment fee in New Jersey is probably going to be a little bit higher than it is at other locations. So if you were to go get a deal in, say, michigan, ohio, indiana, missouri, those are going to be places where you're probably going to average somewhere between $10,000 to $15,000 assignment fee In New Jersey. It's very common for you to have a $20,000 to $40,000 assignment fee, partially because the price points are higher and also because you can come across these multifamilies that can be extremely profitable, especially if they're tenant occupied or if there's a value add there for your end buyer. Long term, every virtual wholesaler should eventually do deals in New Jersey. If you plan on being nationwide, just go into it understanding that it's probably not going to be your best state for leads to contracts, but the profit per deal is going to be a little bit higher as long as you're paying attention to those comps and buying where your end buyers buy. So those are my thoughts on the Garden State.

Speaker 1:

For those of you that are currently wholesaling there, let me know How'd I do. I don't have a ton of experience in New Jersey, but we've done deals all the way from the north to the south and the east to the west. So let me know in the comments. Do I know what I'm talking about when it comes to New Jersey, or am I just full of it? Show me some love, like New Jersey, or am I just full of it? Show me some love like today's video? And, like I always say, go Rutgers. I love the Scarlet Knights. By the way, my son's middle name is Rucker Trinity, rucker Bates. I love underdogs. I've loved Rutgers University since day one, so you would think that I would actually have more of a love of error in New Jersey. It's just those damn sellers. They're kind of stubborn there. Show me some love, guys. We'll see you all tomorrow.