Sellers Aren't Logical? | Wholesaling Real Estate

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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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Chapters

• 0:00 The Wholesaler's Biggest Mistake
• 1:22 Pre-Foreclosure Seller Case Study
• 3:20 When Competition Offers Too Much
• 5:10 Building Credibility Through Logic
• 7:13 Understanding Seller Stress Perspective
• 9:15 Embracing 90% Failure Rate

Transcript

Speaker 1: 0:00

Today, we're going to be talking about one of the biggest mistakes newer wholesalers make, which is thinking that sellers are going to be logical or sellers are even going to be nice to you, Mr Wholesaler, calling to steal my equity or to buy my house or low ball me. These are things that we hear normally. This is in reference to when we are cold outreaching them, right, Cold call, cold text, direct mail, things like that. But it even happens now with inbound leads through pay-per-lead services, pay-per-click, running your own meta ads. Whatever you're doing, even with inbound leads, you're still going to come across sellers that are going to be illogical and they're not going to understand what you are trying to convey to them in regards to the offer that we are making Now.

Speaker 1: 1:00

Yesterday, I did a live seller call review inside of Titanium University and it was a good example of this. The seller was in pre-foreclosure. She bought the house in 2021. She's over a year past due on her mortgage payments, so, by any standards, she's in a very desperate situation. She's highly motivated. She realizes there is no scenario in which she is going to be able to afford this house anymore and, as she's talking to the TU member, she's explaining how much she owes on the property, but how much she wants for the property property. Now, later on in the conversation it comes out that part of the reason why she wanted that amount was because another investor had offered her that amount. Now, as we're going through the seller call and we're listening to all of the motivation come out and we're talking about the repairs that are needed and there were pictures still available online of what the property looked like back in 2021 when she purchased it. It was in livable condition, but it was by no means in that full retail after repair value condition right. It had some weird, quirky things, including having a sink on top of a toilet, which I had never seen before. I believe the sink was actually draining into the back of the toilet, which is one of the most unique things I've ever seen. So the property did need a significant amount of rehab to achieve that after repair value. Now, what really threw the TU member for a loop during the seller call was that the value of the property was in the low 100s and that's him being conservative on that after repair value but the fact that another investor would offer the $90,000.

Speaker 1: 2:57

Now, as I was coaching him through this, one of the things that we always want to do when we identify the four seller buckets. One of the things that we always want to do when we identify the four seller buckets and we identify we're talking to the most common type of seller wrong price but highly motivated, which is what this seller was. We want to educate them on what the property could be worth, how much work it would take to get there, and that's how we're coming to our offer, our offer. Now, where the logic comes in here is you beat your competition by explaining them that, based off of these numbers, there's no way in the world that this investor that offered that $90,000 could perform. It would not be a profitable deal at $90,000. It's trying to explain that to a seller.

Speaker 1: 3:42

This is where that logic might not fit, Because to them what they hear is someone else offered me $90,000. And I hear what you're saying, how the numbers don't work. But I'm willing to take the chance and one of the things that has come to fruition over the past year and a half, plus that TU has existed, is seeing how the members have really embraced hey, I might temporarily miss out on a deal because of the shitty competition over offered right. They're overpaying for the property. But we're not going to miss out on that deal. We're going to build that rapport. We're going to build that credibility with the seller by explaining how our offer makes sense through the numbers. Explain that logic, but also be completely okay when not immediately accepting the fact that they're not going to just accept your logic. Hey, you want to go with that $90,000? That's okay. That makes sense to me. Why not Give them a shot? But when they don't perform, come back to me. When's the closing date on that contract? Let me know when that gets terminated. And that is how we are picking up deals left and right, Because people come in they'll offer $90,000, then they'll want to do a price reduction down to $75,000 where the deal might be able to work, and we were originally the ones that offered the $75,000.

Speaker 1: 5:20

So that credibility that we built early on through the logic, maybe it's not accepted early on. Now see a lot of people they look at that and they say I don't understand. Rj tells me that what I'm supposed to do with these types of sellers is educate them and it's not working. Well, again, you should know that, based off the metrics that we have set and we have set this for a while now like these are numbers and KPIs that we have been running at for a significant period of time is, for every nine of those eight you are going to fail on, your job is to get one out of every nine of those to sign a contract with you. Now, the way that you really compound the effect of this is by building this rapport with someone, building that credibility, explaining that logic, not assuming that they're immediately just going to accept it and say I understand what you're saying, RJ, I'm going to sign a contract with you. Does that happen? Yes, Will it happen a lot more when the other investor, the other wholesaler, tries to renegotiate or terminates that contract 30 days later? Yes, that will be a lot more commonplace inside of your business, as long as you're doing things correctly Now in regards to how friendly or not friendly sellers will be to you, just because it's an inbound lead doesn't mean that their situation has changed.

Speaker 1: 6:50

Put yourself in the seller's position. Put yourself in the seller's shoes and understand that if they truly have motivation to sell this property for a discount, that means there is so much going on in their life that the largest asset that they are going to own in their lifetime they're willing to sell to you for a discount. Now, that means there's a lot going on. They're probably stressed, they're probably not thinking correctly and the last thing they're probably thinking about is is, hey, this random stranger in which I filled out a form online I need to be courteous to, I need to listen to their logic and, quite frankly, they're probably thinking I need to listen to RJ's bullshit. I don't care what RJ has to say. I care about my situation and what I need to accomplish and how much money I need in my pocket to walk away from this deal, this stress that is going on in my life.

Speaker 1: 7:48

Now, putting yourself in the seller's shoes, now actually think about your actions. How do you treat people when they cold call you? How do you treat someone when you look at your phone and it says potential spam on it? You're probably not very courteous. When you fill out a form online and that company calls you and starts asking you a bunch of questions and then trying to pitch you something, are you really courteous, Are you really listening, or are you really just caring about what you need and trying to move towards that as quickly as possible? I think that's how the majority of us probably handle those situations. So why would you expect it to be any different when you're the person that's placing that call, you're the person that received that online form and it's them selling a house, a piece of real estate, for a discount? That is illogical on our part. So the key here is to keep your composure and to ask more questions than dictating to them what you need.

Speaker 1: 8:58

Understand their situation Now. I talk about this all the time. Embrace being the buyer. Embrace, no, Well, truly. If you're doing this, you will understand why this seller needs you, and your goal at the end of each conversation is to point that seller in the right direction, whether it's with you or whether it's not with you. Go listen with a realtor. Go with that competition that offered you more money. You need to hire a short sale specialist, Whatever it is. Point them in the right direction.

Speaker 1: 9:32

If you go into each conversation with that mindset that, no matter what win, lose or draw, I am going to make sure I offer a solution to the seller, you will end up with more money and more closed deals in your bank account. That is an absolute fact and the reality of it is, and this is something that I've been saying repeatedly inside the TU group lately is, if you can get great enough to close 10% of your leads, you will literally be one of the greatest wholesalers of all time. Now the inverse way of thinking that is, that means we are allowed to fail 90% of the time when we get leads. That's insane. What other industry, what other career path tells you you can be one of the greatest of all times if you fail 90% of the time? I don't know many out there.

Speaker 1: 10:32

So this is a massive opportunity for you to go into these calls without pressure, without that overwhelming sense of I have to perform on each one of these and go into it, where I'm going to ask questions, I'm going to listen to what they truly mean and I'm going to be the real estate professional that understands what this seller's solution truly is. And ultimately, when you get down to it, you'll see 10% of the time it's you, the other 90% is someone else, and you'll have a lot more closed deals. So don't make the mistake of thinking that sellers are immediately going to be logical when you explain to them, or that they owe you any sense of courtesy or niceness whatsoever, Because you don't even do that when you fill out forms online, when you're trying to buy something Imagine trying to sell the largest asset that you'll ever own for a discount how courteous would you be Let me know what you guys think of the comments and show me some love, Like today's video. We'll see you guys tomorrow, on beautiful Labor Day.