The Titanium Vault hosted by RJ Bates III

Your Uncertainty Is Killing Your Deals!

• RJ Bates III • Episode 616

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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:

so a few days ago I went live with lead zolo and tu members and the tu members were calling the leads live and the results were amazing. We had three tu members call, all three set out contracts, Two got signed during the live. So it was a great performance. Lead Zolo performed as far as leads go and the TU members did a great job of following the closures formula and closing those deals. However, during the live performance, as I was sitting there analyzing the deal, listening to the conversation and then inside the private chat, kind of coaching up the TU members, I noticed that there was a level of uncertainty that each TU member had in regards to the deals that we were talking about Now from the outside, looking in rightfully so there were issues with each one of these deals. The first one, Danny Force, was on the phone with a seller in Maryland and the seller was talking about black mold inside the property. And then Tricia was on the phone with a seller who was selling a very low value property inside of Jackson Mississippi and she didn't feel like there was enough value in the property to overcome the amount of rehab that the property needed. And then we had Ken, who was on the phone with a seller in Minnesota who told him right from the get-go that the property was full retail and there was no value for any investor. So these are all red flags, right Reasons to be uncertain about sending a contract or contracting the deal itself. However, when I was analyzing these deals, I'm not certain that the deal will make it to the finish line. What I am certain about is, if we follow the process, this gives us an opportunity to make money. Each one of them presented a good enough opportunity for us to send a contract and to begin the recon and the due diligence period and to present this deal in front of our end buyers. Each one of them had multiple exit strategies available to us. Now I'm going to go through each one of these and kind of break down my thought process, but ultimately, what I want you guys to be certain about is the process and not the vague information that you are going to be receiving from a seller on a 10 to 30 to 40 minute conversation. It is impossible for us to know enough about that property through that conversation to know 100%, without a shadow of a doubt. This is the deal that I need that can make it to the closing table. But we have a saying at TU and that's shoot or shoot. Referring to basketball players right, we're not going to make every single shot, but if you don't take the shot, you're guaranteed not to make the basket. So let's talk about Danny's deal in Maryland.

Speaker 1:

The motivation was that the property had black mold. But the second layer of motivation was is that both of the seller, the husband and the wife, have severe health issues and because of that they're not allowed to enter this property anymore, because of the existence of black mold. We actually don't know the level of the black mold infestation on this property. She talked about it for a little bit and kind of how I understood it was is there is a presence of black mold around some of the pipes and the plumbing inside the property. It might not be as big of an issue as she's making it out to be. However, we could get out there and the property can be completely riddled with black mold and it might just be not a deal and that happens. But if we don't contract it and go out there and do our recon, we'll never know. And so we went ahead. We sent the contract and it was funny.

Speaker 1:

I asked Danny during the live. What was your thought process when you heard black mold? Now you have to understand. Danny Force is coming from the place of being a realtor for many, many years, done hundreds, if not thousands, of transactions as a licensed real estate agent, he said the immediate thing that popped into my mind was I put on my realtor hat and I wanted to run from this deal. Black mold, bad. Yeah, I'm an investor. I hear black mold, Good Motivation, health issues. These are the people that we serve. This is the motivation that we can help overcome and solve their problem by buying their real estate. So we set the contract.

Speaker 1:

Sellers immediately signed that contract. From that point in time, my team immediately jumped on it. And what do we do? We need to get recon done.

Speaker 1:

So what's the first step when we talk about recon of a property? Reach out to a known buyer because the sellers can't enter the property. So the first step would be ask the sellers for pictures. But we know, due to the layers of motivation, the sellers cannot enter the property. So the second step is go to a known buyer. Hey, known buyer in Maryland, can you go out to this property for first right of refusal, take pictures and if you don't want the property, then just send us the pictures. But if you want it, it's yours, here's the price. No bidding wars, Just leveraging the fact that we have a relationship with an end buyer and immediately the end buyer is like yeah, absolutely, I will be out there, I'm going to get pictures for you. I want this deal. Shooters shoot. That gave us an opportunity.

Speaker 1:

Now, do I believe that this end buyer is going to buy this property? Maybe? I'm not going to hang our hat on it. I don't even really have expectations of this end buyer being our buyer on this deal. I expect that our process that we are going to follow, which is now we're in the step of that known buyer is going to go get us pictures. If he passes on it, that's fine. Now we go into the dismal process, put together our marketing package, send it out to our VIP buyers in the area and get more eyes on it and receive offers on the deal and whatever that feedback is, we relay that back to the sellers and let them know where their actual property sits. That is where the certainty comes in. The uncertainty of the deal because of the black mold exists, but I am not going to allow that to keep me from having this opportunity, Not allow us to not present this deal to an end buyer who might be desiring. I mean, this is a low price point for Maryland. We contracted this at $35,000. That is crazy for Maryland and so for me that is a great opportunity for us to bring a potentially fantastic deal to our end buyer.

Speaker 1:

Now let's move on to Trisha's deal in Jackson Mississippi. She had very valid concerns about the property values. However, there was additional exit strategies available to us and, like I said on the live, I believe I am going to end up being the end buyer for that deal because I have a buyer who wants me to sell or finance properties to them. So immediately after that contract was signed, my team immediately reached out to the end buyer who wants to buy properties from us on terms and we are now negotiating and going to work that out. And if it doesn't work and we are now negotiating and going to work that out and if it doesn't work then we will still follow the process, finish doing recon, present it to all of our buyers and get feedback and relay that back to the seller. That is the process, but, knowing the fact that we have known buyers with multiple exit strategies and acquisition strategies helped us. So this is where we've been doing deals in Jackson Mississippi since about 2017. So over the past eight years, we have developed relationships. We understand what those end buyers are looking for.

Speaker 1:

I had a property that I purchased for $5,000 in Jackson Mississippi back in 2017 that I'm still getting paid on today, that I sold to that end buyer on terms. Every single month, on the first of the month, I receive a payment that is principal and interest and I will continue to receive that for the next five years. And I will continue to receive that for the next five years. If I duplicate that with another deal that all I'm doing is purchasing for $3,500, that is a win. And so Tricia and Danny had very valid concerns about, but they were overcome with our experience and the certainty that we have in the process.

Speaker 1:

Now, when it comes to Ken's deal in Minnesota, this is a little bit different, because his concern was a little bit unfounded, because it came directly from the seller. Now, I didn't directly conversate with Ken about where he was thinking the property values were, because I did quite a bit of coaching on his calls. I was really trying to pull out of him something special, because I see a lot in what Ken has, but he needs just a few tweaks here and there. So I was really coaching him up on that. But in regards to the seller saying you're not going to be willing to offer me what I need for the property because it's basically full market value, that's true to a certain extent because she did buy the property a couple of years ago and she probably had it appraised. The property is in great condition. With that being said, it is up north and it does have a basement. And what I did find was is several properties in the area that had finished out basements sold for a much higher property value and so, seeing as our property was 1,100 square feet livable square footage, there are comps in the 1,900 to 2,000 square foot range that are selling for significantly more, and we have that square footage with an unfinished basement. So there is a play there for a flipper to come in and basically finish out that basement and convert that into livable square footage and really maximize the property value there in Minnesota.

Speaker 1:

And the seller's motivation was financial hardship, extremely motivated. She was basically in the point of tears and emotional about the fact that there was a second mortgage that she didn't know about During COVID. They put this second mortgage on there. She didn't know what she was signing up for. She was in her 70s and she's like I really just want to sell this property and move on to an assisted living facility Again, massive motivation. These are the types of people that need our help Now. Danny, Ken and Tricia are all babies when it comes to wholesaling. They're learning. This is the power of being inside of a community like Titanium University, where they can sit there and be live on the phone with sellers and have me coaching them up through this.

Speaker 1:

Because, quite frankly, they all said the uncertainty that they had in regards to these deals they would have never sent contracts but the certainty that I have after a decade of doing this and saying let's trust the process. I'm not going to trust what I hear on the phone right now. I'm going to trust what I see in the numbers and the potential that exists there and let's contract this with transparency. I thought each one of them did a great job, Tricia especially with the transparency of I'm not going to be an end buyer. I am going to wholesale this deal of. I'm not going to be an end buyer. I'm going to wholesale this deal. It was absolutely fantastic and because of that we were able to get those contracts signed and I believe now, during the dispositions process, we will be able to find out if these deals are actually deals or not. Overall, we sent out three contracts. Two have been signed. That's 66%. Our average is 70%. Now that we have two signed, our closing percentage of that is 70%. I hope and I pray that each one of those because we already have end buyers in the position to buy those from us can make it to the closing table. But we still have to go through the process of recon and negotiating with these end buyers and potentially even renegotiating with the sellers. That is what we do day in and day out.

Speaker 1:

Do not allow the uncertainty that you have in your process keep you from chasing opportunities. I get it, Terminations suck, but it's part of the business. It's part of what's going to happen. You're never going to have 100% certainty in a deal until you contract it. You do recon and you get feedback from buyers. So keep shooting your shot so you can make the basket Close those deals. Don't allow uncertainty to crush your business. Let me know what you guys think in the comments. Shout out to Danny Tricia and Ken I'm proud of you, I'm proud to have you inside of Titanium University. Show them some love, Like today's video. We'll see you guys tomorrow.