The Titanium Vault hosted by RJ Bates III

Are You Making This ONE Fatal Assumption About Good Deals?

• RJ Bates III • Episode 596

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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:

Today we're going to be talking about one of the biggest mistakes newer wholesalers makes, which is thinking that a good deal will sell itself. Now, partially the reason why newer wholesalers believe this is because in the toxic wasteland that is social media, especially in the wholesaling world, this is what you're told If you go get a good deal, it'll sell itself In. Buyers are always looking for good deals. To a certain degree, that is true. However, the difficult part for newer wholesalers is finding a way to turn the lights on and get that deal in front of those end buyers where they actually see it Now, just like anything in this world, technology and new advancements in technology give all of us a level playing field. So now that we have dispo softwares like Ambassador, lift, ambassador Base, dealspeed, even Privy and PropStream, that have access to the end buyer's contact information which is glorious that also means the negative side is that our end buyers are absolutely overwhelmed with wholesale deals. So let me give you an example. Now I want to put yourself in the position like take yourself away from being the wholesaler, put yourself in the position of you are the end buyer. And this is what it looks like.

Speaker 1:

This is my email box just today, so it's 1.05 pm. These are all the InvestorLift deal emails that I have deleted today, and, as you can see, the time it's just all throughout the day. These are all from 9.30 this morning, so we scroll down, it goes all the way until 8.01 am, right, that's when the initial ones came in. I have not read one of these emails, and it's not because I don't care if they're deals or not. There might be a banger deal in here. It's just day in and day out, constantly, I am bombarded by these emails and so as they come in, I just instantly delete them. That's what I do, and I think the majority of end buyers feel the exact same way. See, a good deal will sell itself if you can get it in front of the end buyer and get their attention. So just by signing up for InvestorLift and using the email blast campaign does not necessarily mean that you're doing your job as a wholesaler. It's one of the things that you can do, it's a tool that you can leverage. And are there in buyers that absolutely prefer to be communicated via email? Yeah for sure. And will you inevitably dispo a deal just by emailing it through InvestorLift's email campaigns? Yes, you will. That being said. Another thing that happens is and I'm sure a lot of you have this the 9-8-0 text messages right from InvestorLift. Look at this. Just all day long I'm getting text messages about deals that are being sent out and it's so funny. When I look at this it's like hey, there's a new deal in Sacramento, california, asking $475,000, arv $650,000. Doesn't feel like there's much room to do repairs and make profit on that asking price. Dallas, texas, where we've done hundreds of deals asking 167 AirVs 275. Where's the money? I don't. I don't see it. Here's another oneland, texas, in our backyard I have quite a few properties that I have notes on in Garland, texas. I've had rental properties in Garland, texas. I've wholesaled there. Love Garland. Asking price 200. Arv 300.

Speaker 1:

There are more bad deals out there and here's the thing that you have to realize as a wholesaler those bad deals from other wholesalers, your competition, impact your deal and how your end buyers are going to pay attention to your marketing. See, if you're just using the email and the text campaigns on InvestorLift, you're one of the many that gets watered down and lost in the masses of the bad deals. It doesn't stand out. See, a good deal will sell itself as long as that end buyer knows it's a good deal. So how do you make sure For one? You have to establish relationships with these end buyers. You have to be able to individually reach out to them and let them know hey, here's my deal, here's why you should buy it so early on. When you're a new investor or new wholesaler and you're reaching out to end buyers, yeah, should you still do the email campaigns? Should you do the text messages? Absolutely, because here's the reason why On InvestorLift, once they view that property and they log in, it is now going to assign them as one of your buyers. You would also be able to see on Artemis mode that they looked at your property, how many pictures they looked at and how long they spent looking at that deal. That is then when you would call them immediately and establish that relationship.

Speaker 1:

The deal will not sell itself. You have to go out there and do the dispositions. You have to establish that relationship and then fast forward into the future. Yes, you will get to a point where, when you start sending deals out to your known VIP buyers, they're going to instantly start making offers. They're going to want to go, do a walkthrough and make you an offer right then and there. But it takes time to establish that. So if you go out and you think to yourself, hey, I'm going to go get some PBL leads, right, I go to Speedlead, I get my property under contract and now I have InvestorLift or I have InvestorBase and because of that my deal is going to sell itself? Absolutely not, especially if you're a virtual wholesaler. Not especially if you're a virtual wholesaler.

Speaker 1:

I had a one-on-one with a TU member this morning and we were talking about the fact that when you go get a deal in a location and you start establishing relationships within buyers let's say it's a lower volume state for wholesaling, maybe like Iowa, you get a deal, you dispo it. You get another deal, you dispo it to the same buyer. You kind of think, hey, in Cedar Rapids, iowa, I'm taken care of, I know who my end buyer is and I'm good, but it's a lower volume state. So maybe two, three, four months pass by and you don't get another lead, you don't get another contract inside of that location. But then you go get another one and you call that in buyer.

Speaker 1:

Here's the thing that happens. Those in buyers are also running their business. Life's going to change, deals are going to go south for them. Maybe their money sources change. You're going to reach out. That end buyer is going to say I'm going to pass right now. I'm not looking to buy any more properties at this time. I'm overwhelmed, my crews are busy, my funders are out of money. Whatever it looks like Now, where are you?

Speaker 1:

You're back to establishing more relationships inside of that market and so you might have a great deal, but you don't know where that end buyer is inside of their business and you can't put all of your eggs in that one basket. So from a disposition standpoint, you are always going to be working to establish new relationships, get as many buyers as possible. So if you do get a good deal, you're not relying on that one business to support your dispositions efforts. Now newer wholesalers get really disgruntled about this. They don't understand that. In my opinion, the dispositions early on should be the vast majority of the work and the effort that you're putting into your wholesale business. Now this upsets new wholesalers because normally the first thing that we're focused on is how do I get leads and how do I contract deals? How do I talk to sellers? Can I get a contract? And then they get a contract and then it's like well, now you're to the hard part. Dispositions is where it's going to take some time because you don't even have prior relationships. This is why I tell every single new team member when they come in you should absolutely JV those first several deals to a known dispositions powerhouse inside of the community.

Speaker 1:

Do not kill your wholesale business because you don't have any relationships. You're relying on a software to dispo your deal because it's not going to, and if it does, it's a shot in the dark. The dispo softwares are amazing because it gives us the access to who the end buyers are. It doesn't do the work for you. It's very similar to back in the day when we used to pull lists for lead generation skip, trace. Those motivated sellers, promptstream and Batch Leads didn't give us the contracts. We then had to reach out to every single one of those motivated sellers to get a contract. It's the same thing now with these dispo softwares. It allows us to know who the end buyers are and what their contact information is, but we have to actively work that every single day and it takes time.

Speaker 1:

There are certain locations in the United States that we have been virtually wholesaling in for the past five years and we still don't have go-to relationships Just due to the lack of volume of deals, where we are not consistently disbowing deals that now we'll go get one. We just had a deal in Colorado Springs Colorado by all means, that is a pretty decent market. We ended up having to terminate the deal because we could not find an end buyer that would come in at the price point that we needed it to. We did have offers, they were below where we needed it and the seller was not willing to come down. Now I say all the time we don't terminate deals, now we do, but mindset-wise we will do anything and everything in our power to not terminate a deal, and we tried on that. We worked our ass off to get that deal moved and it could not get moved. Now, that being said, what did come from that? The positive side was we ended up establishing several different relationships with them buyers and were we able to move that deal? No, but now, if we were to get a deal, we would at least be able to reach out to those buyers that we did establish a relationship with. That property needed a significant amount of work and what we found out was the majority of flippers inside of that Colorado Springs market weren't willing to take on the amount of work that that property had. So if we were to get a lead that had a little bit less rehab on it, we now have those relationships with four to five different known buyers. Have those relationships with four to five different known buyers.

Speaker 1:

Sometimes the best thing that can happen to you is you have to terminate a deal. The next time we go get a deal in Colorado Springs, I foresee that making it across the finish line. It's not the end of the world, but newer wholesalers think I got a good deal, we had a good deal in Colorado Springs. Did it make it to the closing table? No, well, the next four to five, probably. And that's where we end up landing in that 70% of contract to close ratio, which is the number that we're always aiming to lie in.

Speaker 1:

Is it perfect? No, is it frustrating at times when you work your ass off and you had a good deal and you end up having to terminate it? Yeah, it is. The facts are not every deal is going to make it across the finish line. Don't hold yourself to a standard that is unrealistic. Don't sit there and rely on a software to do the work that you should be doing inside of your wholesaling business. In my opinion, dispositions is where the work has to be done by the wholesaling operation and then in the future, when you have established volume and you've done deals, dispositions becomes easier. And that's when your business starts running like a machine. Now we're already there, but it still has kinks in it, just like that Colorado Springs deal.

Speaker 1:

Were we upset? Sure, is it going to cripple us? No, will we leverage that failure for success in the future? Absolutely. That's where new wholesalers need to find themselves. Focus on every single action. How are we leveraging that to be better in the future? Show me some love, like today's video. Let me know what you liked about it in the comments. We'll see you guys tomorrow.