The Titanium Vault hosted by RJ Bates III

I Tried Wholesaling in Indiana and Found Out What REALLY Works

• RJ Bates III • Episode 594

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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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Speaker 1:

welcome back to wholesaling around the world, the indiana edition, the hoosier state, coming in with a population rank of 17th overall, with just south of 7 million people living inside the state. My overall feelings about Indiana are it's a prototypical Midwest state, one of those markets that has been solid for us over the years. Really kind of volume-wise. It fits right in line where it ranks as far as population right. It's in the upper echelon, it's in the upper 50% of the states. I think our volume has been closer to like the top 10 than the top 20. But that is because back in the day 2021, early 2022, a bunch of hedge funds were buying inside of Indiana. That's got to slow down in recent years but overall Indiana is a solid market to wholesale in, obviously the largest city inside of Indiana being Indianapolis, a great location to wholesale in. It comes across where you're going to have the deals that are good for flippers, great for landlords. You're going to have price points that range across the board. But as you move outside of Indianapolis then you get into some of the secondary markets in Indiana. The comping and underwriting is going to be crucial for you to pay attention to the as-is comps, just like the majority of the Midwest states, similar to Ohio, michigan, illinois, very similar to that where you're going to have to pay attention to what is the competition that's on the market right? What can an end buyer just go on the MLS and purchase themselves? You want to pay attention to that. So this is not one of those markets that you can go look and say, hey, here's the after repair value, subtract 70 percent, subtract the, out the repairs. That doesn't really work.

Speaker 1:

In some of these markets, specifically areas like South Bend, where Notre Dame is, fort Wayne, bloomington, where Indiana University is, and especially in a market like Gary, indiana, which is close enough to Illinois, you can get some of those Chicago buyers, but the price points are extremely low, and so in some of these areas, acquisitions can be extremely easy, but dispositions can be a little bit more difficult. Now, for me, and some of those markets that I just named off South Bend and Fort Wayne, have been the best for us. Fort Wayne back in the day was a market that we were constantly getting deals in, always able to locate our end buyers. We were able to build a significant buyer relationship there, a significant buyer relationship there, and dispositions became extremely easy because we knew what that buyer was looking for and how they were underwriting those deals Very similar in South Bend. We had a good run there.

Speaker 1:

Things have slowed down recently and partially due to the fact that in July 1st of 2024, so a little bit over a year ago from when I'm recording this video there was a regulation brought down on the Indiana market, and it's one of those that is a little bit of a head scratcher, but it goes back to wholesalers needing to be transparent in their communications with all parties as to what's going on inside the transaction. So I'll read a couple of different things about the regulation in Indiana Disclosure. I'm not an attorney. Do your own research, talk to your title companies, do what you may with the regulation, but in Indiana real estate wholesaling is permitted but is subject to new regulations affected July 1st 2024, primarily requiring unlicensed real estate solicitors, aka wholesalers, to disclose their unlicensed status and the intent to assign a contract for a residential single-family home to a third party. This disclosure must be in their marketing and advertising materials and must also include the legal names of the solicitor and the intended purchaser of the solicitor and the intended purchaser. Failure to provide this disclosure within two days of entering a contract allows the seller to nullify the agreement.

Speaker 1:

The law does not prohibit wholesaling, but regulates the communication methods and intent disclosure for unlicensed parties. So again, this just goes back to disclosing transparency. So again, this just goes back to disclosing transparency communication with all of the parties involved, that you are telling everybody the truth. There should be no issues with this. Of course, this is newer for a lot of wholesalers. The industry for years has been telling everybody you know say that you're an end buyer, don't disclose that you're a wholesaler. Say that you're an end buyer, don't disclose that you're a wholesaler. This is what the industry is wanting as a change and why many of the regulations are based around disclosing.

Speaker 1:

Now, in regards to the report that Easy REI Closings put out at waronwholesalingcom, which you can get for free, it says that the summary requires wholesalers to provide clear disclosures in all solicitations. The law categorizes failure to disclose as deceptive, allowing enforcement by the attorney general. And then this is something that is very unique and something I haven't seen in any other state. Wholesalers must register with the State Department of Revenue as a retail merchant and must pay sales tax. So the impact of this is it ensures homeowners are informed of a wholesaler's intent and role in transaction and the penalties are civil actions, fines and potential lawsuits for deceptive practices. So, again, if you have no problems being transparent in what you're trying to do, you follow the appropriate disclosures, which I'm sure if you call a title company, build a relationship and say how can I protect myself inside this? What is this disclosure need to look like? They can provide that or show you a good example.

Speaker 1:

Now getting back to the state itself, like I said, our volume has slowed down in Indiana, but it wasn't necessarily because of the regulation. It actually has just slowed down due to the fact that the hedge funds actually pulled out of Indiana back in late 22 and early 2023. And so our volume because of that, really slowed down. We have done deals in Indianapolis. We've done some deals in Fort Wayne, but South Bend has really slowed down. But some of the other marketsapolis We've done some deals in Fort Wayne, but South Bend has really slowed down. But some of the other markets that can be really good for you Muncie, indiana We've done deals. Richmond, I talked about. Bloomington, kokomo is another one that has been really good for us. Hartford City Across the state, what most would consider rural deals.

Speaker 1:

There are end buyers available and looking to purchase deals. The only thing that I would say is because you now are mandated by the state regulations to be transparent. If you're talking to a motivated seller in a Kokomo or Richmond or a Bloomington, even though the Indiana University is located there, it can still take more time to dispo. So, through your transparency, you can leverage the fact that you are telling them that you are a wholesaler and ask for more time. This is important because, yes, there are end buyers, but that can be leveraged against you in the fact that there's limited end buyers in some of these markets. So ask for more time from the sellers and explain the reasoning. This is an opportunity that we can leverage that regulation to put ourselves in a better position where more deals cross the finish line and we're not having to terminate deals because we try to put ourselves in a tough spot with only allowing seven to 14 days for dispositions in some of these rural markets. So leverage the fact that you're being transparent and ask for that up front and explain to the sellers why Now, also during your comping and underwriting, you should be able because you're paying attention to those as-is that current market value comps. You can see exactly where your end buyers are buying, leveraging the softwares that are available to us today, like InvestorBase, investorlift and DealsFeed. You know who those buyers are and you can contact them, but you can also see exactly where they're buying their deals inside of these different markets. So if you are utilizing PPL or even cold calling and whatever you're doing for lead generation, as these leads come in and you get that and you're analyzing your deal, you can go into your dispo software, see what end buyers have purchased and how many deals they bought in that area, before you lock it up knowing that, hey, I have an end buyer already in these areas.

Speaker 1:

In my opinion, indiana is a great market and I always tell people when they're wanting to get into virtual wholesaling go to new states and new markets. The Midwest and the Sunbelt are the places that you want to start with. Acquisitions is always going to be easier. Dispo is going to be easier. The assignment fees will be slightly smaller due to the price points, but it will get you traction, it will get you some confidence and wins under your belt and that's what the majority of newer wholesalers need. So, in my opinion, indiana, despite the regulation, is a great market for virtual wholesalers to go to. If you wanted to expand to one Midwest state, I wouldn't necessarily pick Indiana as the first one, but it should definitely be in your arsenal in the future. For those of you that are doing deals currently in Indiana, let me know how I did, breaking this down in roughly 10 and a half minutes. Show me some love, like today's video, and we'll see you guys tomorrow.