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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
How We Made $5,000 Wholesaling In California
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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)
Back to back Closers Olympics Champion
Trained thousands of wholesalers to close more deals
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We're back with another deal review. Today we're going to be talking about how we made $5,000 wholesaling a piece of real estate in California. Now, $5,000 is not a large amount of money. It's not a great assignment, especially in a location like California. But that's not what I want to show you guys. I want to show you the full process of how this deal came to be All right. This was a lead Zolo lead that I closed live in October. You're going to see the live conversation and then, after you see the live close of the seller, we're going to transfer it over to Justin Helms on my dispo team. We're going to give his take on what happened with the recon and the dispositions and then you're actually going to see a recorded video of our end buyer talking about what happened in his eyes, what happened during the dispositions, what happened when he actually met the seller and had to renegotiate this contract. So the big takeaway that I want to give you guys on this video is that no deal is ever dead as long as you're setting proper expectations and always properly communicating with the seller about the numbers and why you need to be where you need to be. We ended up getting over a $100,000 price reduction on this deal. Now this seems like it might not be a win-win situation for the seller and the buyer, and only for the buyer, but it actually ended up being a great solution for the seller. Our end buyer actually ended up helping the seller with the credit card debt and finding a way to solve that problem for them, and that's what we do here. Real estate investors, wholesalers your job is to solve the seller's problem by buying their real estate, and that's what we ended up doing. Now, is this an ideal situation? No, but the end result was $5,000 in revenue for our company. A deal moved, the seller got his house sold and the end buyer ended up making close to $70,000 profit on this deal.
Speaker 1:Let's move on to the live seller call. Hi, william, this is RJ Bates. I was calling about your property there on Elk Trail West. Looked like you had filled out a form on my website saying that you're interested in selling that property. Is that correct? Yes, awesome, how much were you looking to get for it here there? Yes, I'm here. Okay, how much were you looking to get for the property?
Speaker 2:I paid out for a different $350,000 for it okay, but you didn't accept it no, you're the first person I called about it okay, so I'm confused.
Speaker 1:No, you're the first person I call about it. Okay, so I'm confused.
Speaker 2:You said someone offered you $350,000, but I'm the first person you talked to. Yeah, I did. I did sort of a message I think you sent him at $350,000 or $375,000. I don't know how much. The appetite is Okay.
Speaker 1:Okay, well, tell me a little bit about the property. What's going on there?
Speaker 2:single story. It's on the hillside. It's 5.87 acres, part of dry creek. It's called dry creek because in the summertime it's dry and in the summertime it's a river okay.
Speaker 1:Does it need any work, or is it in good condition? What's going on with it?
Speaker 2:in good condition. There's just a couple little small things that need to be fixed, but it's not a big deal. An inspector came through and inspected it Well. Well, back on another loan thing, I was talking to him. He said the house passed all the inspections. It generally just had solar panels and all that stuff put on it on the roof. So there's solar, solar power too on the roof. So there's solar power too. There's two wells on the property. The first well they dug only got three gallons a minute. They dug another well down lower on the property and they get 50 gallons a minute, which is really good for out here and not cold, dry creek but up in Hent. And then I'm also connected to the Jones Valley Water District to get water from Chastley Lake.
Speaker 1:Okay.
Speaker 2:Okay.
Speaker 1:The solar panels are those paid off, or is that another lien on the property?
Speaker 2:No, they just. They just installed it. I haven't paid anything.
Speaker 1:Okay, but that would, that would come out of the three 50.
Speaker 2:I have no idea how much they're going to charge me for it. I mean, they just came out and installed everything for free and I get free for six months and then I got to send you bills, I guess. But it did cut my PGD power. My kids were staying in for a little while. I ran my electric bill up to $595 for one month. I put the solar panels on. The next PGD bill I got was only $14.36.
Speaker 1:Oh, that's good. So why are you looking to sell?
Speaker 2:My wife. She left me in all kinds of credit card debt and I got a lot of bills to catch up on. I lost a bunch of money when my wife died.
Speaker 1:I'm sorry to hear about that.
Speaker 2:I don't need to be living in this three bedroom, two bath house with just me and myself.
Speaker 1:All right. Hmm, so the guy that offered you $350,000, you just haven't called him back to tell him yes or no.
Speaker 2:No, I didn't respond to it. They just sent me a text message. Now for definite, I got another paper here somewhere. That happened to me more. I got so much junk all over the table in there okay there was another one that they sent me. I don't know what I did with it now, but the upper got 300 pounds of gas alright, let's see what we can do here.
Speaker 1:$300,000 cash All right, let's see what we can do here. Seems like a pretty nice property.
Speaker 2:How long have you owned it? It aired in 2002. You said 2010? Yeah, I'm pretty sure that we moved into this house in 2010. Gotcha, and then my wife just passed away. Last December she also had me like almost $50,000 in credit cards that I didn't even know about. Jeez, I'm just trying to get my head above water again. I have to sell the house and, you know, buy me a little cattle trailer and then take off why not Gotcha.
Speaker 1:So is there anything that you know, as an investor, I'm going to come in that I need to fix up on this property? That's like just not working, not functional, or anything like that?
Speaker 2:No, everything works just fine. I don't have any problems.
Speaker 1:Okay.
Speaker 2:I have a central air leak. I have a wood stove in the living room. Okay time it's heated with the wood stove or the heat pump. In the summertime my berries come. I let the house cool down in the morning, my berries open up and turn the AC on. All right, let's see 16 square feet.
Speaker 1:Hmm, property values are kind of all over the place around you.
Speaker 2:Yeah yeah, there's some nice homes in the middle of it. I think some nuts are nice homes.
Speaker 1:I'm assuming your house is considered one of the nicer homes, right?
Speaker 2:Yeah, well, the nicer the fire.
Speaker 1:Sorry, your phone broke up there a little bit. What was that? How does your house compare to the nicer homes?
Speaker 2:It's nicer because I've never been inside a nicer home. It's up on the top of the ridge above me. There's some houses up there that are a little bit nicer than this one. You get better views and all they're on the top of the mountain in the town all the time gotcha.
Speaker 1:Is that something that drives the, the property values up being up higher?
Speaker 2:maybe just because of the views. I mean, I the view was looking good. I'm off my deck and I can see Shaffer and I can see for miles. I got a good view from the beautiful sunset seeing the evening. Yeah, right now it's all smoky because of the forest fire, the wild waves, and we're blowing all the smokes out. I'm lucky to get a fourth buyer from our place. I went to the Illinois Motel. My house is on private, probably only five or six miles to Chatham Lake.
Speaker 1:Okay. So taking a look around the neighborhood and the condition of some of the properties that have sold for a little bit more, like you said, I think the view impacts the value there a little bit. So I kind of want to be a little bit conservative. From my side, I don't think I can get to 350. I think I need to be closer to like $320,000. But that would be cash and then there would be no realtor commissions and we would cover the closing costs. So that's kind of a net number to you. Yeah.
Speaker 2:Yeah, I didn't find another piece of paper. Somebody else offered me cash for something.
Speaker 1:You said, somebody else offered you cash.
Speaker 2:Yeah, that first one, but I never really got a moment to talk to him.
Speaker 1:Right.
Speaker 2:I kind of ignored that one, so it was like the same as what I told you.
Speaker 1:I think it was like K-375 or something like that. Right, and that was through a text message. Yeah, you can send me a text message. No, I'm saying those people they made that offer through a text message to you.
Speaker 2:No, no, it was something that came to me, I probably threw it away gotcha understood.
Speaker 1:This is lead solo Understood. This is Lee Zolo.
Speaker 2:I just kind of quick scan through.
Speaker 1:So I mean, as far as, like, what's most important to you? I mean, is it to get as much money as possible, to make it a smooth transaction? I mean, what are you trying? What's what's the most important thing to you?
Speaker 2:it's your, uh, you get it up there by your house and so I can put some money in the bank, pay out some of the credit card stuff and and just get my bank account straight up. Right now I'm gonna have it come to take care of all the bills straight up but no, no, no, I'm gonna have to come take care of all the bills well, what are your thoughts about that 320 000 offer?
Speaker 1:no, it's not too bad that would have got to get me out of debt. Would you, uh, would you, have money left over to be able to kind of survive off of?
Speaker 2:Probably not. I'm 70 years old. I don't have enough to do stuff.
Speaker 1:Yeah Well, I mean I don't want to pressure you or anything like that. I mean, what do you want to do as far as the decision-making process of that offer?
Speaker 2:Well, I'm just looking to get out from all the payments I did make on the house. Right now my monthly house payment is over $1,800 a month. I don't have enough money left over from groceries and nothing. Like I said, I lost half of my income when my wife passed away.
Speaker 1:I've been retired for 10 years now. Well, I mean, if speed is something that you're looking for there, I mean we could probably get this done in the next 30 days. So I mean, have you already made your mortgage payment for October? We could probably get this done in the next 30 days. So you probably, I mean, have you already made your your mortgage payment for October?
Speaker 2:Yeah.
Speaker 1:You I mean you you were to move forward with this, you probably wouldn't have to make another mortgage payment.
Speaker 2:Yeah.
Speaker 1:I mean, I mean, I know it's not the number that you necessarily were asking for and I'll just be honest with you. Normally I don't try to beat people up, but I also have to run my business and make sure I'm protecting myself, you know, okay, I get it. I'm protecting myself, you know, okay. Yeah, I mean, I think 320 is the number that I need and I think we can get this done relatively quickly for you. So I mean you let me know how would you like to proceed? Would you like to think about that? You ready to move forward or what? What's, what's kind of your thought process there?
Speaker 2:And well, I still can't find the one piece of paper that could offer more. The 320 would be Hopefully enough to Get me caught up on all that, so that I'm behind on because I don't have to make the house changes, you know, because I have to have somebody to make them to move right.
Speaker 1:Right? Well, why don't we do this? To make it easy for you? I've got your email here, I think Is it Okay. So why don't I just go ahead? I'll write up a contract for the 320. I'll send it over to you so you can look over it. You can see what we're actually offering you. It'll show you that we're offering 320,000 cash. We cover the closing costs, there's no realtor commissions or anything like that and I'll give you a couple of days to decide if you want to sign that or not. And that way you're making the best decision for yourself. And you know there's like I said, I just I don't want to apply any pressure. I want you to make the best decision for you.
Speaker 2:So If you offer me $320,000, then I have to take a check from you or something, and I have to pay off the rest of the money, so it goes through a title company.
Speaker 1:So you actually don't have to do anything. We actually would just send that contract to the title company. They would pull a title commitment Once that comes back and they say, okay, here's what's owed, the mortgage taxes, all of this, and then we would sign closing documents. You would sign closing documents, the money would be wired to the title company. The title company would pay off any liens, like the mortgage taxes, all of that, and then write you a check for the difference. So it's actually you don't have to do anything besides, just show up to the title company, sign documents and then you get your money alright yeah, we would.
Speaker 1:We would need you out pretty quickly, but we can also close whenever you need. So if you need time to prepare for closing, then we can just make the closing further out. We don't we don't need to make it in 30 days, but I'd like to because it sounds like you. You need to make that to avoid having to make another mortgage payment.
Speaker 2:Right.
Speaker 1:So if we need to, if we need to put it out, we can. Um, if we need to do something where we give you four or five days after closing to get out because you need the money, we can also do that as well.
Speaker 2:This office is full of junk from my wife. We need to let them stop here.
Speaker 1:Right. Do you think the 30 days would give you enough time to get packed up and get ready to move?
Speaker 1:if I can get my son to come out and help me out okay or I can just chill out and leave all the furniture with it yeah, if you do that, I'm going to be honest with you I'm going to need to take a little bit of money off to to, because, listen, getting rid of stuff is costly dumpsters, movers, stuff like that so we could do that. It's just uh. Then you get less money right now.
Speaker 2:I don't want to do that. When you set the storage station, we're all in the storage station.
Speaker 1:We got to come up.
Speaker 2:We're going to come up here or just give the way, right?
Speaker 1:Well, what do you think, william? You want me to write up that contract, send it over to you Sure.
Speaker 1:All right. So what I will do is I'll write that up, I'll get it over to you, I'll have someone on my team write that up and get it sent over to you, probably here in the next 10, 15 minutes. Like I said, said, take your time. Uh, I don't want you to jump into something that you're not sure you want to do, so just, um, feel free to call me back. Uh, if you have any questions, um, this is the office number. My name's rj bates. Um, and yeah, like I said, if you have any questions, feel free to call, but if you're ready to sign, you can actually just sign the contract right there inside of the email.
Speaker 1:Okay, sorry, you broke up there. What was that? You said it's 817 710 8689. What's that? I can send you a text message, because this is a landline that I called you from. This is the office number, but I can send you a text message from my cell phone if you want me to. No, I'm just going to send you the contract to your email and if you have any questions, you could call this number back, or you can just email with any questions that you have, but it's pretty straightforward, I. I mean, it's a two page contract. It really doesn't say a whole lot other than I'm buying your house for this much and when we're going to close, and that we're covering the closing costs, just like what we discussed.
Speaker 1:Sorry, your phone's breaking up again.
Speaker 2:Yeah.
Speaker 1:What was that you said right before the phone broke up?
Speaker 2:I just put this in my basic account. Right now, I need to go in Monday and talk to the nation because I'm looking at you.
Speaker 1:Oh geez, yeah, we got to get this done, william. Yeah, let me get this over to you, man. Let's, let's get the process started, um, because I, I don't, yeah, I mean, we, we can get this done pretty quickly and then that way, um, you can get some money in your bank account. Negative $800 is no bueno. Okay, all right, william, I'm going to get this sent over to you. Check your email here in about 20 minutes and let me know if you have any questions. Okay, all right, thank you.
Speaker 3:Thank you, bye-bye. What's going on everybody? It's Justin over at Titanium Investments Just shooting you guys a quick recap video on this deal that we just closed over in Redding, california. So RJ went on live one day and then he found the property over in Redding. It was on a mountain in the Jones Valley area. So we were seeing around a $500,000 after repair value and we put the property under contract at $320,000. So once I got it, we got photos. Property was in decent condition. It needed a good cosmetic rehab.
Speaker 3:So I started marketing the property out. We were asking $330,000. And one of the reasons we thought the property had so much value was because of the area it sat in and it had good views on top of the mountain. So a lot of the properties in that area that had those type of views were selling for the $500,000 plus range. So we were in the mind that ours had that same potential, nonetheless started marketing the deal, started talking to all these local investors and feedback came back very differently. Buyers were coming in at much lower prices, saying that the values were not even close to $500,000. And then we also learned that the Jones Valley area is also less desirable. So nonetheless, I kept marketing.
Speaker 3:The deal probably went on for two or three weeks of talking to investors out there. Finally, I connected with someone named Edgar. Edgar is a great local investor in the area and he expressed the same concerns that a lot of the other investors in the area did as far as the values not being as high as closer to the middle of Redding as far as like the Jones Valley area goes. So me and Edgar had a great conversation. He decided to go out and walk the property and I told him while he's out there, it'd be great if he had a conversation with the seller, because I had already been having conversations with the seller in regards to us potentially needing to be at a lower price, and that's not something that he was open to because he didn't trust someone from outside of the area breaking those numbers down for him. So I already knew if we got someone local in the area to break that down for him, it would be much. He would be able to trust them much more if he got that explanation from them.
Speaker 3:So got Edgar out there to go walk that property. Him and the seller spent what feels like eight hours at the house together and then I'm pretty sure, the buyer went out there a second day in a row and he was out there once again for hours just negotiating and talking to the seller and breaking down why the property wasn't as valuable as he thought it was. So at the end of the day they ended up coming down. They're renegotiating with the seller from about $320,000 to about $205,000. And then I think him and Edgar ended up giving him a little bit of money before closing to incentivize him to hold off on getting the rest of the funds until closing. So the buyer, edgar, actually got our seller to agree to a novation rather than a simple cash deal. So nonetheless, we went under contract. Edgar agreed to give us a $5,000 assignment fee because he was the one who did all the negotiations and the price reduction with the seller. So he took the reins on the deal and three, four months later, after the property was listed and after it finally got the work done and everything, we got a $5,000 wire.
Speaker 3:Nonetheless, this was a great story here. It was a great deal that we did out there in Redding, but one of the biggest things on this deal is that's the power of having local investors in an area that you could build relationships with. Relationships with, because if me and Edgar hadn't been able to build that rapport and create a relationship to where we knew that I could trust him to go out and negotiate with that seller and still pay us at the end of the deal, we probably wouldn't have been able to get that done. So, talking to local investors, building those relationships, that is a win-win scenario for everyone. I mean, that's one of the biggest things in the real estate game or in the wholesaling game in general. So build relationships with local buyers, local investors, bring them good deals and that's how you're going to make money in this.
Speaker 4:Hey, what's up everyone. My name is Edgar. We have great real estate investments out here in Redding California. Just doing this video to give a little bit of a recap on my experience working with Justin and the team over there, with RJ Bates here in Redding California. I guess you guys got a deal and contract and I was approached by Justin.
Speaker 4:You know he brought the deal to my attention and I think the numbers were just a little off initially and part of why it was off, I think it was a little bit hard to comp. It was one of those that you have to kind of know the area to understand that the values were. Really there was a huge spread between values there in that specific region of reading, and so I was approached with the deal and, um, I told him, hey, I'm interested in the house itself, but not that price. And um, so justin actually arranged for me to walk the property and and I went over there to walk the property, uh, and in that conversation I had with the seller because he was there, obviously I got an understanding a little bit more of the interaction and I think that's exactly what it was is he was dealing with people who were out of the area. The seller obviously asked for a ridiculous amount of money for the home and I was able to educate that seller on why the valuation he was given the property was not, was not accurate based on the condition of the property. And so in that conversation we discovered an opportunity to go for a reduction and I just called Justin. I said was not accurate based on the condition of the property. And so in that conversation we discovered an opportunity to go for a reduction and I just called Justin. I said hey, man, with your permission, I'd like to kind of take the reins on this one. I know that I'd be able to make a deal with the seller and I'd give you guys a finder's fee for connecting me with the seller. And so that's exactly what we did. And it seemed like Justin and his team were eager to do that and I was excited to do it because it's another project for me and obviously this is what I do. So I like to fix and fix properties and I'm a contractor, I own Bidwell Home Builders here in Redding California and, yeah, it gives my guys work. So that's why I do it. I want to give my guys work and obviously provide for my family and so in that conversation with the seller and with Justin, I think there was an agreement that I would kind of you know, take over and be able to negotiate there and I was able to negotiate a pretty significant reduction. We were, I think you guys ran at 320 or so in contract. We got the seller to go down to 205. And the best thing about it actually was I offered the seller a little bit more if he would wait to get paid until after I did the construction on the property. Uh, that's what's called a novation deal. And so we went from 205 to 212.5. So a $7,500 increase in order to wait to get paid.
Speaker 4:It was a very cosmetic uh rehab, but it definitely was uh, more than we anticipated. Initially we thought we were just going to paint and do carpet. We ended up doing flooring, countertops paint. We updated all the light fixtures, all the ceiling fans. We got some. Yeah, it was more than what we anticipated, but we kept it under budget. We ended up spending about $32,000 on that rehab. So, if you do the math, I was in at $212,000, spent another $32,000. We listed the property for $32,000 on that rehab. So if you do the math, I was in at $212,000, spent another $32,000. We listed the property for $350,000 and within two hours we received a full price offer and within two days we received an over asking price offer and so actually from that $32,000 investment, Gray Real Estate Investments was able to profit about $70,000 in revenue and profit for us. So it was a huge win for my company. And obviously you know, RJ Bates and team were able to get a referral fee for working with me.
Speaker 4:And I just want to tell the little story of the experience, Just so you guys know too. I became friends with the seller His name is Bill and Bill and I have been in contact. He got paid a couple days ago and I checked on him, made sure he didn't spend all his money on in Hawaii already and things like that, and we just joked about it. But but yeah, just just let you guys know I had a great experience. I think that there is there's value in having local investors in the markets you're targeting, because a local investor can give you that feedback. You can use that feedback to go back to the seller and negotiate. Or if you find someone like myself, I feel very comfortable negotiating on behalf of myself or the people who are bringing me deals. So just want to tell you guys that huge win I had.
Speaker 4:I'll share the settlement statement with Justin I'm sure he'll share that with you guys and you can see I got a wire for about $105,000 a couple of days ago for that Novation deal closing. It was a smooth 30-day close and the buyer was actually super stoked. They love the rehab and I am very happy with the result of the property. So just wanted to share this with everyone. I hope that it encourages you and motivates you to go out there and keep doing what you're doing. Don't give up. I know that this can be a difficult industry to be in if you're not patient and you're not willing to put in the time. But you know, put in the time, it's worth it. And, yeah, glory to God for everything that we've been able to accomplish here and I'm looking forward to more deals with you guys. Thank you so much.
Speaker 1:All right. So pretty crazy story there, trying to be as transparent as possible, where you see the live seller call, you see from my dispositions manager, justin Helms, what he went through on this deal and you actually, for the first time, I think, ever, you see an end buyer talking about purchasing a property from a wholesaler and showing a settlement, saving on what he made on this deal, doing innovation. It was a win-win-win situation. Of course, we would have liked to have made more money on this deal, but at the end of the day we had to renegotiate based off of the condition of the property and also the location. The anticipation was that the property value was going to be higher because of the view and the condition, but it wasn't, and so we had to set proper expectations and communicate with the seller and because of that we were still able to get the deal done and that's how we made $5,000 wholesale in this piece of real estate in California.
Speaker 1:I hope you guys enjoyed this video. There's a lot that went into this right Several months and also bringing in buyer on here so you can get his perspective. Thank you, edgar. I appreciate you. Make sure you guys give Edgar a shout out on this Also Justin man. Great job, great way of handling the seller and the buyer. Make sure you give us a like. We'll see you guys tomorrow.