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The Titanium Vault hosted by RJ Bates III
RJ Bates III, affectionately referred to as the Viking Wizard by his students, started his real estate investing career in 2014 after attending a real estate education program that put him $65,000 in debt. RJ contracted his first deal he found on the MLS and wholesaled it for a $7,500 assignment fee. That was the end of his former life and the beginning of his venture into becoming a real estate investor. Since that moment, RJ has become an influential figurehead in the real estate investing industry. He has successfully purchased and sold over 2,000 properties all across the USA including wholesale deals, rehabs, rentals, owner finances and short term rentals. One of his passions is being the host of The Titanium Vault Podcast where he interviews the top real estate investors. He has won back to back Closers Olympics earning him the reputation as the King Closer! Finally, RJ and Cassi DeHaas, his partner, have started their education platform called Titanium University.
The Titanium Vault hosted by RJ Bates III
From Misinformed Realtors To Getting SUED! | The King Closer Reacts
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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
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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What's up guys? Welcome back to the King Closer Reacts. I am the King Closer, RJ Bates III. This is the series where I watch a bunch of Instagram reels, youtube shorts, tiktoks, a bunch of goofiness. See if I agree or disagree. Let's get into the first video. Let's do that.
Speaker 2:Freeze, you could be breaking the real estate law right now and not even know it. I see this all the time Wholesalers landing deals, assigning the contract and then getting hit with a cease and desist order. Here's the truth Wholesaling is legal in most states, restricted in others, and a little gray area in some of the areas that you may not expect. So how do you find out if it's legal in your state? Let me show you here. Let's jump over to Google and then we're going to Google your state and real estate wholesaling law. Hit, enter, look for your state's real estate commission website, look it up and if you're still not sure, call them. Yes, actually pick up the phone and call them. Some states require disclosures, others treat wholesaling like brokering and in Illinois you can't legally assign a contract without a license. Have you checked the laws in your state or still just hoping that you're fine? Comment below that your state and let us know what restrictions that you've run into. Let's help each other get it right.
Speaker 1:Y'all know that guy that we bring on here all the time that talks super fast and I'm always like they must fast forward him. It was like on this guy they put him on like 0.5 x, like we're gonna slow you down. Listen, what he just broke down was me three and a half minutes before. Every wholesaling around the world, right? Wholesale around the world, the colorado. Wholesale around the world the Colorado edition. Hold on, let me check something out. Is wholesaling in Colorado legal? Oh, it is cool.
Speaker 1:I don't really worry about the regulations because, honestly, most of them are irrelevant. Like it's hey, we need you to make sure this disclosure. Or if you have a property under contract in Nebraska, you need to have a licensed realtor. That's on your marketing, Otherwise you can't use investor lift. It's like subtle little nuances. It's not like, hey, if you go get a property under contract, we're going to come put you in prison. Like that's just not the case. There's just little tiny things that you need to pay attention to. And to his point, it's as simple as a Google search. But more often than not, even if you just get a property under contract, before you do anything, you can just ask the closing attorney or the title company. What is it that I need to do to be legal in this state? They're going to tell you because they want to get paid on your deal. Just as bad as you want to get paid. Don't overthink it.
Speaker 3:How would you feel if you were selling your house, let's say, for $500,000, and the person you thought was buying your home turns around and sells it to somebody else for $550,000.? Would you be just happy and relieved that you found a buyer for your home, or are you going to be pissed knowing that you could have got $50,000 more for your home? This is called wholesaling and it is totally legal, though. In 2022, arizona passed a law requiring wholesalers to disclose to sellers that they do not intend to purchase the property, but they do intend to assign the contract to another buyer.
Speaker 3:I'm sure there may be scenarios where something like this could benefit both the buyer and the seller, but generally speaking, it just seems like a way for sellers to lose a lot of money. Leave a lot of money on the table, because if somebody was willing to pay $550,000, why wouldn't you get the $550,000? Because the wholesaler is not doing anything to the property. They're not updating it, they're not improving it by any way. They are finding another buyer while they are under contract. They don't even own the home yet.
Speaker 1:How would you feel about that? You know she had me until like 72% of the way through the video and then all of a sudden it was like let me insert my agenda. She must be. Let me look it up. Is she a realtor? Who is this?
Speaker 4:Oh yeah.
Speaker 1:She's a realtor in Arizona, serving Maricopa, so let's use her example, let's do some math. Let's just I don't know what the math's going to look like. We're just going to bring out my calculator real quick. She says the house can sell for 550,000 and then she's going to go list it and all that. They're going to charge $38,500 as realtors and closing costs, because we cover the closing costs they don't on the retail market. Okay. So in her scenario 550,000, which, by the way, we are ripping $50,000 deals all the time the average assignment fee is 15,000, okay. So I love how she did some math here to make this out to be like ooh, the bad wholesalers are stealing the equity of $50,000.
Speaker 1:Okay, has that happened? Yes, does it happen when people are astronomically distressed and it's a life altering situation like I'm going to lose my house if I don't sell it in the next seven days, which, by the way, she can't solve that problem? Nope, she can't. That's why we are here and it's we're not doing nothing. That's like me saying sweetheart, you do nothing, all you do is hire a photographer and put it on the MLS. You would be pretty offended by that, right. You would want to be like fuck off. Rj, that's kind of how I feel right now. I kind of want to tell you to fuck off, because you just said what I built my career on for the past 10 years. I don't do anything except just go find another buyer. Well, no, that's not the case.
Speaker 1:Let's use an example that just happened, where we had to solve $36,000 of child support liens from the previous seller. Go ahead and think about that $36,000 of child support liens from the previous seller. Now I would love for her to explain how she would solve that $36,000 of child support lien from the previous seller. Now I would love for her to explain how she would solve that because, after spending hours on the phone with the closing attorney, we were the ones that solved that issue, not the closing attorney. A realtor wouldn't have known how to do that. Not all of them. Some of them would. This one probably, not Just my gut instinct. Now, going back to what our average assignment fee is $15,000. Let's say we do get it under contract for $500,000 and we assign it for $515,000 and it could have sold on the retail market for 550, who's coming out on top, working with the realtor or working with the wholesaler? In this scenario, it would be working with the wholesaler. However, she doesn't wanna work with the sellers that we work with because if she did, she would be doing marketing to these homeowners.
Speaker 1:You know what I get told every single day by my team Called leads. Today they talked to other wholesalers. You know what we rarely hear? Hey, we called the lead and they had been bamboozled, cold, called direct mail, bbc, by realtors. There's no marketing to these sellers. There's no realtors out here banging up pre-foreclosures, vacant houses, the shit boxes that we have to do all this work for.
Speaker 1:$2,500, $5,000, $3,000. What about those deals? Sure, you can point to the $50,000 bangers that are once in a blue moon, but what about the sellers that are desperate, that actually need us? See, this is the problem I have when we start pointing the fingers inside of our own industry, saying that there's not a place for us, that we're stealing equity and whatnot. How would you feel if I told you that your fucking commission is stealing the seller's equity? You would feel like, well, I'm doing a lot of work over here. Well, we're doing just as much, if not more, work than you are. So stay in your lane and talk about the benefits that you bring as a realtor and stop talking about shit you don't know about.
Speaker 5:So in residential real estate, I think we can all agree it's extremely competitive. Yes, Wholesaling residential real estate is the most competitive strategy in the space. Why? It's the lowest barrier of entry. And whatever is the lowest barrier of entry will have the most amount of people in it and it will also be the lowest paying strategy. That's just fact. Okay, so if you want to make money, what do you have to do? Come on, what do you have to do if you want to really make money as a wholesaler? You got to do it. A scale right.
Speaker 1:Yes and no. I mean, listen, it's like I was talking to a TU student the other day and he was like I just had a baby. I work a full-time job. Ideally, what I would like to do is get to the point where I can do two to three deals a month and I can quit my job, I can be here with my wife, I can be present for my kid, and that would be the life of my dreams. That's what I really want. Two to three deals a month that's not doing it at scale. Let's say he makes $10,000 on average. Okay, so $10,000, that's $30,000 a month. He's making $360,000 a year. Most people would consider making $360,000 a year really good money and I think that's achievable. He could do that. Now it's going to take time for him to develop the skill sets and the book of business to get there, but it is commonplace in this industry.
Speaker 1:Now, as far as wholesaling being overly competitive, I'll be honest with you. There's a lot of us, but most everybody sucks and they don't put a lot of effort and energy into trying to actually become great at this. See, the difference is, say, you want to become a flipper, you buy a house, you got a lot of stress on you. You own a liability, you own that asset, you've got liability on it. You've got to go out and perform because otherwise you would lose all of that money that's invested into that. You could have a foreclosure on your record. Whereas in wholesaling because it is the lowest barrier of entry there's people that hope that wholesaling will work. They want it to work, but they won't actually go out and do the work themselves, and so, because of that, it might have a lot of us, but as far as it being overly competitive, I don't find that to be the case.
Speaker 6:Today I had a class with 35 or 40 of my students and one of the fears I see with newbies is hey, what do I do? What if I do a fix and flip and then everything goes wrong? And then somebody hurt themselves or, you know, the GC disappears with my money. Or the GC want to sue me because they didn't do his job and I didn't pay him. Or I have a tenant and you know they don't want to leave because I bought a wrong property in the blue states and they don't want to leave. But they also want to sue me because of late pay. And you know the truth that I told them is that it is absolutely going to happen.
Speaker 6:So you always want to ask yourself are you operating as a business Number one? So you're not. You know, exposing yourself as a person, you're operating as a business Number two. Do you? Let's say, for example, you do acquisitions? Do you do full disclosures when you talk to these homeowners and you acquire these properties? Are your contracts solid? So if you do all of that, guess what? What are you afraid of? Because you live in a society where some people make it a point to make it sort of a business to take people to litigations for everything and nothing. So it is what it is. So if you're afraid of litigation and you don't want to do real estate because you're afraid that somebody is going to sue you one day, it's absolutely freaking going to happen. Just don't start. Boom, boom boom.
Speaker 1:Boom, boom, boom. Listen, he's absolutely correct. And it's not just real estate, it's just being in business in general. You're going to get sued. I used to get super like wrapped up in it and emotional. Now it's just kind of like what is this about? More often than not it gets solved before anything ever happens. I got sued lately or I got served a demand letter for payment because someone else hired someone to cut a tree down on a property that was close to a property that I owned and it messed up their plumbing. One letter from my attorney and it was like I was removed. I was just it's gone right. That happens a lot.
Speaker 1:I have been a part of a small claims court where you might've heard me tell a story. Before I sold the property signed assignment $5,000 non-refundable EMD. Emd was deposited Buyer the day before closing didn't have funds so they didn't perform. We signed a termination. They signed a release of earnest money deposit. Earnest money deposit was then sent to me by the title company. I then, because it was a pre-foreclosure, bought the property with a hard money loan, went and found another buyer, sold it to that buyer.
Speaker 1:Six months later I was sued over the $5,000 non-refundable EMD. Had to go to small claims court defend myself. And essentially that judge reprimanded the buyer and was like so you signed a contract to buy this property, you put $5,000 non-refundable EMD down, you didn't perform, you released it. Why would you waste the court's time? And so there's a lot of times you have to understand it doesn't mean a whole lot to get sued, because you can basically sue anybody for anything. So just because it's going to happen doesn't mean that you're going to lose. Like he said, protect yourself, do business the right way, and it doesn't matter if you get sued because it's going to happen one way or another.
Speaker 4:So people ask me why do I do what I do? And it's for that. See, what you do is. You drive around neighborhoods, look up for boarded, vacant, just plain ugly houses. You look for the right kind of owner and they do this and they fix up the neighborhood. The neighbors are happy, you get in better people and it improves the neighborhoods. That's exactly why we do wholesale real estate.
Speaker 1:So there for a second. I was a little bit confused because I thought he was talking about that house being the boarded up house that we were going to be buying as a wholesaler. And now I get it. That's the house that he sold and then buyers fix it up. But I agree with what he's saying. I mean I take a lot of pride in the fact that we have wholesaled houses in all 50 states.
Speaker 1:Just the other day I was on the way I was taking the kids somewhere and it was by a neighborhood that I'm not normally by, but I knew you know about six, seven months ago we had wholesale the property and I just quickly took the exit, drove over one to see, hey, what does the house look like? And it was like there was a new, fresh driveway and you could see the new roof and the paint and it just it really popped in the neighborhood and it's like being able to look at my kids and I'm like, hey, dad has sold that house. He made 12,000 off of it and now look at it, it's the best looking house in the neighborhood, like that's something that we should be proud of because otherwise, without us, that end buyer that did a great job of improving that neighborhood, probably never has an opportunity to do that to that neighborhood and to that property. So I'm like him. It's one of the many reasons why I do this, and I'm proud of what we've done in all 50 states in the past decade.
Speaker 1:All right, guys. That's this episode of the King Closer Reacts. Let me know what you thought about it in the comments. Show me some love, like today's video. We'll see you, guys, tomorrow.