The Titanium Vault hosted by RJ Bates III

Whoops! I Got Too Excited and Lost a Lay-Down Deal

• RJ Bates III • Episode 612

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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
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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:

so you guys have heard me talk about the four seller buckets many, many times. Right, we've got the two bad buckets, the sellers that want full retail no motivation. Then you've got the least common bucket right, right price no motivation. It's where the scams happen. Then the two good seller buckets. Now I spend 98% of my time talking about the most common bucket that you're going to talk to, which is highly motivated seller, incorrect price. But today's video is about that 1% of leads that we get, which is correct price, highly motivated, and what you're going to witness is how you can actually screw that bucket up. I always kind of glaze over it and talk about how, hey, that's the lay down bucket. That's the one where you say tell me what your email is. Well, that's a mistake. I should take a little bit more time to explain to you guys exactly how to handle that bucket.

Speaker 1:

And that's what today's video is about. Because, let's be honest, we got to buy a hundred leads to get to this one beautiful lead right here, which is the seller's asking you a great price, a price that you already needed at or below where you needed at, and you can still screw it up because you get so damn excited. You look at it and you're like I've been grinding away to get to this lead right here. And what falls apart is the process. See, the fundamentals of what we are trying to accomplish falls away because we get too damn excited. See, when we talk to a seller and the price is incorrect, we have to follow the process to a T. We've got to go through and educate the seller. We build credibility, we explain how the process, we build credibility, we explain how the process is going to work and we get really good at following that process, but then, when you get this lay down lead, it feels like the process is unnecessary. That is a mistake and what you're going to see here is a seller gives me a great price on this live seller call from 2023.

Speaker 1:

And I was so excited because the lead was in Utah and I hadn't closed the deal in Utah yet and I just don't follow the fundamentals. I don't follow the process and because of that, I'm scrambling and I'm clawing my way back through the entire call and in fact, you'll see, I get hung up on and then I got to follow up again and I end up sending the contract, but this falls into the bucket of the contracts that got sent that never got signed. It never gets signed, it never makes it to the closing table and because of that I lost an opportunity to close a lay down lead. So today's live seller call is not going to be one of those. Hey, watch me, the king closer, close the deal. It's an opportunity for you guys to learn that one. I make mistakes. I've learned along the way.

Speaker 1:

This call right here is part of the creation of the four seller buckets. It's showing you guys how, even with a great lead, if you don't follow the fundamentals and have a process, build that reverse rapport, explain your process, explain how it's going to work. What the seller will feel is it's too good to be true. He constantly questions my credibility. Is this real? He wants to know the process. That's everything that we do in the normal calls, but because the price was correct on this one, I got too excited and because of it the deal never closed. So take what I do in this call and learn from it and realize that during these types of leads, when you get that 1% where the seller is motivated and has the correct price, that is where you buckle down and you follow the fundamentals and the process that you always use and don't get overly excited, because that will be the one that you remember, even two years later. So enjoy today's live seller call where I don't close a deal.

Speaker 1:

Hi, is George there? This is RJ Bates calling about the property on Blacksmith Road that just got entered on my website. Are you looking to sell that property? How much do you want for it? It depends. It depends on what I get.

Speaker 2:

How much do you want for it? I know when I moved in there was a price at 501 a year ago, so I guess around there 500.

Speaker 1:

Okay, 500.

Speaker 2:

It's 510,. I think Gotcha what's got you I?

Speaker 1:

think, gotcha, what's got you wanting to sell the property?

Speaker 2:

Start to move closer to my work, because I'm about 50 minutes away from work.

Speaker 1:

Oh man, I've done that before. That's not a lot of fun, yeah, so do you have a place to move to?

Speaker 2:

Uh, no, not yet. I was planning on renting. So I mean gotcha. I was trying to go rent, so I mean finding a place to rent probably shouldn't take too long.

Speaker 1:

Right, yeah, so if I said I'd give you $500 and close in 30 days, that would give you enough time.

Speaker 2:

How's it work?

Speaker 1:

Well, it works. It's actually pretty simple because we're we're cash, there's no realtors, so there's no fees, there's no commissions or anything like that. The only thing that you would have to pay would be your, uh, your mortgage, if you have one, and then prorated taxes, the property taxes for the year, um, so you know, six months. You know, if we close inside of june and then, uh, the rest is yours and uh, it's pretty much. We send over a contract, you sign it, we come out, we take a look at the property and then 30 days later, we close. Uh, well, we close to a title company. So, just like you did when you bought this, you know it goes to a title company. So, just like you did when you bought this, you know it goes to a title company. We pay for that and, you know, the title company either gives you a wire or a check at closing.

Speaker 2:

But this, this what company are you staying with?

Speaker 1:

Mike, I'm the owner of the company. It's Titanium Investments.

Speaker 2:

Is it legit?

Speaker 1:

Yeah, yeah, you can look me up. Google my name, rj Bates. I'll be honest with you. I bought properties in every state in the United States except for one. Do you want to know what state that is? Where's Puerto Rico? No, because I don't consider that a state, but I haven't done Puerto Rico. But the one state I haven't bought a deal in is Utah. So I'm just letting you know you're about to make my day when you accept my $500,000 offer, because you'll be the first person in utah that sells me a house so what are you?

Speaker 2:

what do you do? Buy them, or what?

Speaker 1:

yeah, so we do. We do a couple of well, we do several different things, so we will either, uh, buy them and sell them. We'll buy them and keep them as rental properties. We'll buy them and sell them on notes. We'll owner finance. We also keep some as Airbnbs. We do a little bit of everything. I've been doing this full time since January 1st of 2015.

Speaker 2:

What's the name?

Speaker 1:

Sorry, my name or the company.

Speaker 2:

The company.

Speaker 1:

The company is Titanium Investments.

Speaker 2:

Titanium.

Speaker 1:

Investments. Yes, sir, we're based out of Fort Worth. Texas. What's that? Say that again.

Speaker 2:

Are you like those other companies like Open Door, Red Pen, stuff like that?

Speaker 1:

We're pretty similar to that, except, you know, we're not a monster corporation, you know we're more of like a family business. So you know we're a much smaller team there's probably about 15 of us in comparison to 1,500, you know. But we do the exact same thing as them, just on a much smaller scale.

Speaker 2:

I see, okay, well, let me do some research. Man, I mean, that sounds too good to be true well, let me tell you the reason why that is.

Speaker 1:

It's because I'm not a typical salesperson. So, instead of sitting here and having a 30 minute conversation with you about things that don't matter, I just want to call and ask, ask you, what do you want? You know, you say, hey, if I can get $500,000 for my house so I can move closer to my job, all right, it's a good fit for me. You know, we can move on. I'll tell you this. You could go, you. You could Google my name RJ Bates, the third. Here's what you're gonna find. You're gonna find that I'm the owner of titanium investments. You're gonna find that I've had a podcast since 2017. You're gonna find I'm all over social media, where you can find me on youtube, instagram, tiktok, facebook. You're gonna see I got a son, a daughter. I've lived in Fort Worth my whole life and I went to University of North Texas. So it's RJ Bates. You said RJ Bates. Yes, sir.

Speaker 2:

B-A-S-E.

Speaker 1:

B-A-T-E-S, like the Bates Motel.

Speaker 2:

Sorry say that again, B-A.

Speaker 1:

T-E-S Bates. Yes, sir, I know it sounds too good to be true, but it doesn't have to be difficult. You know what I'm saying.

Speaker 2:

Well, no, not that far. It's as far as, like you know, giving me what you know, maybe what my house is, work, because I know some companies like open door and then so buy it for less than what it's worth right.

Speaker 1:

So that's, that's the part. Well, normally the what they'll do is is they'll you over an offer. And I've sold houses to Opendoor before. They're not bad to work with, but what they'll do is they'll say hey, we'll give you $600,000, but then we're going to have our realtor fees and then we're going to hit you for repairs and stuff like that. Whereas we're buying it as is, we're not going to ask you to do any work to the property. So that's just a kind of a. That's one of the biggest differences between us. Another reason why is because Opendoor isn't a landlord. What Opendoor likes to do is they like to just buy the houses and sell the houses. Oh, we are done. Oh f***, I'm going to call our Salt Lake City Utah lead. That hung up on me right before I left.

Speaker 2:

A few moments later.

Speaker 1:

Hello. Hey, man, this is RJ Bates, the guy that you were talking to earlier about your property there in Blacksmith. I think we got disconnected or something.

Speaker 2:

Oh yeah, I got my phone died oh okay, I was like man.

Speaker 1:

He either really thought I was fake or he got mad at me or something like that. So, um, anyways did. Did you have a chance to kind of look me up to see if you could find out if I was real or not?

Speaker 2:

um, I'm still, uh, in that process of doing my homework.

Speaker 1:

Okay.

Speaker 2:

I'm still kind of looking into it.

Speaker 1:

All right. Well, is there anything that I could do that can provide you with something that would help you feel more comfortable with who we are.

Speaker 2:

Will you be able to have proof of funds before I sign? Yeah, we can do that yeah so I'm still looking into doing my homework. You know, just doing my homework. I know once you send a contract I probably have to have an attorney look through it or something. Make sure it's legit, Okay.

Speaker 1:

So one of the things I could do is send you over a contract so you can look at it the contracts that we use. It's about two and a half pages long. It's pretty simple. You're the seller, I'm the buyer, I'm buying this property for this much money. We're going to close that a title company. It just kind of outlines everything that we're going to do through the whole process, what day we're going to close things like that. So would you like for me to send that over to you so you can look at it and you can see that it's a real contract?

Speaker 2:

Yeah, let's see what else we'll start next day. So you go through. You close at the title company over here. Correct In Utah.

Speaker 1:

Correct.

Speaker 2:

Yeah, and you never. You said one thing I kind of thought was kind of strange, to be honest, was you said you never bought a house in Utah.

Speaker 1:

Correct.

Speaker 2:

I was kind of wondering how that you know will be possible. He's been doing it for eight years, buying the house in all states.

Speaker 1:

Well, I'll, I'll tell you um a lot of the deals that we've done. Um, you know, we we've taken down, we flip some places we've been able to keep as rental properties different markets for different, you know, different exit strategies. Part of it is is because I just I haven't done a lot of marketing in Utah. I don't get a lot of leads. So, like you saw my ad watching a YouTube video, so you were, you were on YouTube, you saw it, you clicked on the link and then it took you to my website. So that's how I found out about you. So I just don't get a lot of leads in Utah. That's part of the reason why I've never done a deal in Utah.

Speaker 2:

I see my house is. You won't be able to flip because it's a new home, so the year old. It's a new home, so it's a year old. It's a construction build, so I'm sure you could see it. You're looking at it on your computer or you're probably looking at the market or houses around here in the neighborhood. So are you aware that there's a house down the street from me that's for sale and another one that's sold April 7th, that's probably 200, you know another like a block down from me, same builder, same community. You see that part right.

Speaker 1:

Correct.

Speaker 2:

Yeah, so those houses are up for sale. I think they're asking for 580.

Speaker 1:

Uh huh.

Speaker 2:

So what was the offer that?

Speaker 1:

Well, you said 500 and I said I would be willing to do the 500.

Speaker 2:

I see, so Will you do 520.

Speaker 1:

No, I can't do that. I'm willing to do the 500, but I'm not willing to go above that.

Speaker 2:

Okay, so if I close, where will I walk away with?

Speaker 1:

The only thing that you're going to pay out of the 500 is a mortgage. If you have one, you would pay that off, and then you're going to pay prorated taxes.

Speaker 2:

Okay, so I think my I'm not sure what my taxes are here, but so I will pay prorated to what like to January or November, or is that how it works?

Speaker 1:

No, no, you would pay it until whenever we close. For example, you would pay if we closed in June. You would pay six months of property taxes because you've owned it from January through June.

Speaker 2:

Right, I can't remember how much.

Speaker 1:

I want to say like $2,000 per year. So like $1,000 then is what you would pay for your taxes, okay, okay. And then, of course, you would pay off the mortgage with those proceeds.

Speaker 2:

Yeah, yeah, we have to think about it. I know we both have to have meat on the bone, right?

Speaker 1:

Right. So, yeah, I have to think about it and see how much equity, because I know I could probably sell it for more, like the traditional way but at thetor commissions you would have the closing costs and then also you know with that the showings and the time and stuff like that, and you would have, and those buyers would do an inspection and potentially ask you to do like small little repairs where we're buying it as is. So we're not going to ask you to do any repairs or anything like that.

Speaker 2:

Yeah, my house doesn't need any repairs. I mean not right now. We took still a brand new home and everything still works fine. The only thing on my house is that, being a new construction, I haven't landscaped it in the backyard, but pretty much the end of the is nothing okay, multi the three-story home yeah, I can.

Speaker 1:

I. I'm looking at it from Google Street View, so I gotta have an idea of what it looks like.

Speaker 2:

Yeah, yeah, so well, yeah well then the difference from that picture is that I'm fencing it now, so it's gonna be fenced. Gotcha, so they're coming June 12th. I already paid a fencing company and everything. It's just waiting for my neighbor to get. He wants to get his landscape in the backyard, so they're gonna fence after he's done with his landscape.

Speaker 2:

So yeah, yeah, so yeah, yeah. Where my neighbor, he wants to get his landscape in the backyard, so we're going to fence after he's done with his landscape. But I didn't really want to touch the landscape because I knew I was going to try to sell it.

Speaker 1:

Right.

Speaker 2:

And I just want to make the most money, bring the most net money. I could get you know the landscaping and some real estate and cutting into that money that I could get for myself.

Speaker 1:

Yeah, I mean, I completely understand your situation. You know, it's just from my perspective. This is what we could do, and if it's a good fit for you, awesome. If not, you know, I completely understand. Um, we just try to make it quick and easy for you.

Speaker 2:

You know what I'm saying yeah, 500 is the most you'll go.

Speaker 1:

Correct. If you sold it for 575, you're probably looking at about 40,000 in realtor commissions and closing. Maybe you net 35 more, like I said, that's if you get that 575. Let me pull this up.

Speaker 2:

The market right now is a little different from when I bought it.

Speaker 1:

Correct.

Speaker 2:

From the interest rates and everything.

Speaker 1:

Right. Interest rates have gone up. And then I see a couple properties that have been on the market 167 days, 363 days, 173 days, 45 days, 49 days, 107 days active 262 days. So I know some of the houses are sitting on the market for quite some time as well.

Speaker 2:

Yeah Well, let me think about it. I mean, I definitely do want to sell. I kind of want to be closer to my work and I'll have to think about it. To you know that price will work right because you know, but that's probably, I don't know, like that things got me end up being the same price of it with the real estate after I pay the fees and everything's probably not being the same, because if I sell it for 515, I'm only making what? 10 grand more?

Speaker 2:

pretty much yeah or you know, I don't know. You know, I could probably list it for 575.

Speaker 1:

If you sell for 575 and you get that you're probably going to make about 30 more 550,. You make about 10 more.

Speaker 2:

We'll do a 505. I'm going to go 500.

Speaker 1:

No, 500 is the highest. I'm going to go.

Speaker 2:

All right Okay. Well, let me think about it and do some more research. Is this your contact number?

Speaker 1:

Yeah, this is my office phone number.

Speaker 2:

Okay.

Speaker 1:

So why don't I do this? Why don't I go ahead and I'll send you over a contract so you can see it and you can look over it, Like you said, if you want to have an attorney look over it or something like that, that's fine. And then you know, we'll touch base next week and see if it's something you want to do. Okay, Okay.

Speaker 2:

I have a question. You said you could close in 30 days.

Speaker 1:

Yes, sir.

Speaker 2:

Okay, so I have to get a place first, right? Yeah, I mean, I want to actually do it. I want to get left home.

Speaker 1:

Right, right, well, I mean we can work with you on that as well. I mean there's not like a need for us to close in 30 days, so we can make it where we close when you have a another property to move into and your cash offer is like what?

Speaker 2:

like a cashier's check, or what is it?

Speaker 1:

Well, we wire the money to title and then title would either wire it to you or give you a check.

Speaker 2:

Correct.

Speaker 1:

Title is the one that disperses all of the funds, not us. We pay title and then title disperses. Like title would pay out of those proceeds your property taxes, your mortgage, and then give you the remaining funds.

Speaker 2:

Okay so what if I have to unbank taxes that I have to pay? They take it out on the tight right.

Speaker 1:

Correct, they would take it out of that and then they would pay that off at closing.

Speaker 2:

Yeah, okay. Well, let me do some math and see if I have some money left over from me as well. Okay, so I could maybe look into getting another property closer to my work or something right all right man?

Speaker 1:

well, like I said, I'll send over that contract and then I'll just touch base with you next week and see if it's a good fit or not. Okay?

Speaker 2:

okay sounds.

Speaker 1:

All right, thank you, sir. Bye-bye, I'm not going to count that because it's more like he hasn't said yes. So I'll send him over the contract. But it's not going to be. I'm not going to count it as a contract Sent.