The Titanium Vault hosted by RJ Bates III

The Arizona Wholesaling Landscape

• RJ Bates III • Episode 628

Share episode

Want to work directly with me to close more deals? Go Here: https://www.titaniumu.com
Want the Closer’s Formula sales process I’ve used to close 2,000+ deals (FREE) Go Here: https://www.kingclosersformula.com/close


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

_________________________________

With over 2,000 Videos, this is the #1 channel on YouTube for all things Virtual Wholesaling. SUBSCRIBE NOW!    https://www.youtube.com/@RJBatesIII

_________________________________

RESOURCES FOR YOU:

If you want my team and I to walk you through how to build or scale your virtual wholesaling business from A to Z, click here to learn more about Titanium University: https://www.titaniumu.com

(FREE) If you want to learn how to close deals just like me, The King Closer, then download the free King Closer Formula PDF: https://www.kingclosersformula.com/close

(FREE) Join our exclusive FB group community for real estate investors and wholesalers: https://www.facebook.com/groups/titaniumvault/

(FREE) Click here to grab our Titanium fleet free PDF & training: Our battle tested strategies and tools that we actually use… and are proven to work: https://www.kingclosersformula.com/fleet

Grab the King Closer Blueprint: My Step by Step Sales Process for closing over 2,000 deals (Only $37): https://www.kingclosersformula.com/kcblueprint

Grab Titanium Profits: Our exact system we use to comp and underwrite deals in only 4 minutes. (Only $99) https://www.kingclosersformula.com/titaniumprofits

Want to know what the best markets to wholesale in are? Grab my breakdown of all 50 states here: https://www.titaniumu.com/markets

Support the show

SPEAKER_00:

Welcome back to Wholesaling Around the World, the Arizona edition. This is a series where I break down my personal feelings about virtually wholesaling state by state. And today we're going to be talking about the 14th most populated state, and that's Arizona, with just south of 7.7 million. People is also the sixth largest state by area. You know, hey, it's a lot of land, 14th most populated. So kind of we're ranking closer to the middle than we are the top. Listen, overall, I think most people have a general idea of what to expect inside of Arizona. It's not unknown like the Connecticuts or the Maines and the South Dakotas, right? You don't hear about people there. Arizona is the land of the gurus, right? Everybody knows all the big names out there: the Tranglings and the Carlos Reyes and the Jamil's and the Paces. We all know them. And we hear about their businesses. And so you hear the good side. What I will say is my personal feelings about Arizona is it is one of the most volatile states to wholesale in. And what I mean by that is if you go all the way back to where the majority of us weren't even thinking about wholesaling back in 2008 and 2009 when we had the crash, the real estate crash, and really the last major correction inside the real estate market, Arizona was one of the places that was most uh devastatingly hit. And from there, the correction once the real estate market started coming back up was you saw the prices go extremely high, and you saw a lot of real estate investors want to get into there, they wanted to get into that market and capture these low price points that were massively increasing. Now, because of that, it was a great place to virtually wholesale in. You had buyers that were willing to pay more than they were in the majority of the United States, very similar to Las Vegas, right? You could go in and I remember hearing people talk about 80, 82, 85 percent of ARV minus repairs. That's where in buyers were willing to pay. And we're not talking about big edge funds, we were talking about actual like flippers and landlords were willing to buy at this high price point inside of Maricopa County and Phoenix, Arizona. Now that we've started to see a little bit of correction since 2022, nothing you know crazy, but interest rates went up, and buyers started to have to make some decisions and protect themselves. We have seen that prices have started to come down some, in buyers are a little bit more strict, and so I used to always use Phoenix, Arizona on the virtual wholesaling side as an example of acquisitions is super difficult, dispositions very easy. I feel like we're currently here in September, October of 2025, where it's starting to transition into acquisitions becoming a little bit easier, dispositions becoming a little bit harder, making it closer to a normal market where you have to buy at a steeper discount, you actually have to bring better deals, not just anything that you lock up under contract, is going to be considered a wholesale deal. And so, because of that, Arizona, in my opinion, specifically in Phoenix, of which is the major metro area, has become not quite as enticing as it was. Because the benefit about Phoenix back in the day, even though it was harder to acquire deals than say a Texas or Florida or Georgia, was that you made a larger assignment fee. And so I've also started to see that the assignment fees are starting to come down to more a normal average assignment fee. And because of that, I put Arizona kind of in that 20th ranking, right? Not in the top 10, not anywhere that I want to do a ton of volume. It's not a state that I'm going to ignore. It's not a state that I'm going to say, hey, we shouldn't pay attention to that. But it's also not like, ooh, every lead that comes into Arizona, I want to hop on and I want to get. So it's still very competitive out there. All I'm trying to do on a year-by-year basis in Arizona is to stick my straw in the Arizona milkshake and get somewhere between five to ten deals where I capture some low-hanging fruit, I move my deals, and I move on. Now that's in the Phoenix area. Let's talk about some of the other areas inside the state. For example, Tucson, um, where the University of Arizona is. We've done deals down there, not nearly as much volume as Phoenix. We've also done deals up in the Flagstaff and Sedona areas, and then some of the surrounding smaller areas um outside of Phoenix. There is a lot of land that has no population, and it's going to be really difficult to do deals. Shout out to Yuma, Arizona, right on the border of Mexico, California, and Arizona. We have done deals there as well. But there's going to be quite a bit of areas where you're just never going to touch. So, in regards to my map where I've done deals, it's very uh tight-knit, right? The vast majority of the area of land is going to be untouched. It's also one of the states very similar to Colorado, where you're going to see a lot of vacant, raw land that's today useless, right? It's more for like recreation. Um, you can pick those up for cheap on seller finance, maybe have a play there where you can sell it on terms and earn some interest. But majority of your deals are going to come in the Phoenix area, all of the surrounding of Phoenix, Tucson would be number two, and then Flagstaff and Yuma would be the other smaller areas. Now, one of the issues that has come up in Arizona is there are some pretty strict regulations, and the regulation in Arizona is that it mandates that wholesalers disclose in writing their status as a wholesaler before entering a binding agreement with a seller. Sellers would have the right to cancel contracts without penalty and keep any earnest money if this disclosure is not made prior to the contract being signed. This regulation enforces transparency between wholesalers and sellers. It also empowers sellers to back out of deals if the wholesaler fails to meet their disclosure obligations. And the penalty is obviously the contract cancellation by sellers, forfeiture of earnest money, and the potential legal action by the seller. So if you do not disclose and be transparent with the seller prior to them signing the contract in writing, like it's not just transparent on the phone and say, Hey, I'm a wholesaler, it has to be a part of the agreement that they're signing. Then the seller has the right to terminate that contract at any time, keep your earnest money, and potentially take legal action. Now, this isn't one of the worst regulations, but it is pretty strict, and it does give a ton of power to the seller. Now, I personally feel like the reason why this regulation has come down in Arizona is because of the amount of influencers and the wholesaling knowledge that has come from the Arizona investor base. And I feel like, well, at some point in time, you finally got the wrong attorney general, at least for our industry, in there in the state of Arizona. And now they have chosen to come down pretty hard on us as an industry. However, that being said, it's really not that difficult to just play within the rules, just disclose that you're a wholesaler in writing to the seller prior to a contract being signed. This makes it fairly easy and simple. Now, going back to a King Closer Reacts that I had a couple weeks ago, an Arizona realtor was extremely hard on wholesalers, talking about we were equity thieves and talking about how we would not disclose that we were going to make money from the seller and how we were stealing that seller's equity. However, that is a very outdated point of view for an Arizona realtor now that this regulation has come down. And because of that, it now mandates that each and every one of us, unless we don't want to play within the rules, which would be foolish, now have to come in with complete transparency with the sellers. So personally, I like this regulation. I think this would be welcomed by the majority of us throughout the United States. I have no problem having a disclosure signed by a seller saying, Hey, I'm signing this contract and I know that titanium investments is a wholesaler. This makes it easy for us to abide by the rules, and it's simple for us to explain to a seller exactly what's going to take place. So for me, I don't view this as a negative. However, I do feel like there's quite a bit of competition inside the Arizona market that is not going to play within the rules and also is going to ignore this regulation, which again, I think is foolish. I feel like this attorney general in Arizona has full intentions to come down even harder on us as an industry. So for anyone that's currently wholesaling inside of Arizona, play by the rules. Disclose that you're a wholesaler prior to signing contracts. The worst thing in the world that could happen to you is you do all the work and you lose out on your assigned deal at the closing table because you just did not disclose it up front. So play within the rules. For those of you that are looking to virtually wholesale and trying to decide what areas do I want to work in and what areas do I want to avoid. Here's what I would say about Arizona. Yes, you can get deals, and yes, they can be highly profitable deals just due to some of the higher price points, specifically inside of Maricopa County. Now, going into that, you have to understand that there is quite a bit of competition and competition that has deep pockets in that area. I do not believe that if you're going to be a virtual wholesaler, Arizona would ever be a higher volume market for you unless you just specifically target it and go all in. If you're wanting to be a nationwide wholesaler, your goal should be to just get a couple of deals inside of there, potentially in some tertiary, secondary markets right outside of Tucson or Phoenix. Overall, I feel like Arizona is a middle of the road market for us as virtual wholesalers. But there's always money to be made. So for those of you that are currently closing deals inside of Arizona, let me know. Do you disagree or do you agree with my take on Arizona? Show me some love, like today's video. We'll see you guys tomorrow.