The Titanium Vault hosted by RJ Bates III

How We Made $80,000 Wholesaling Real Estate In Hawaii

• RJ Bates III • Episode 627

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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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SPEAKER_00:

We're back with another deal review today. We are going to be talking about how we made eighty thousand dollars wholesaling a piece of real estate in the Aloha State, Hawaii. Now, you guys know on the deal review, we show you how we did the deal from the front to the back. So we got to start with lead generation. How did we even find out about this property? This is actually an inherited property that came to us via referral. So the gentleman that lived next door to my partner at the time in Hawaii's dad passed away. He passed away. The property was inherited by the kids. The kids lived in North Carolina. Properties in Hawaii, Son Oahu, physically distressed. There were belongings inside the house. There was two cars. They got on a plane. They flew from North Carolina to Hawaii. And old Pops saw them walk around the front yard. Said, hey, what happened? Our dad passed away. We inherited the property. We're trying to figure out what we're gonna do. Pops had a conversation with him. Think we can help you out? How much do you want for it? I said, we really don't know anything about real estate in the state of Hawaii. So we're really just we're open to offers. So he got their contact information, gave it to me, I did my thing. Called them up, went through the numbers, transparent, honest about what was taking place, and I made them an offer of$650,000. And they said that sounds like a fair offer. Can you send that over to us? So I wrote up the contract, sent it over to them. Said, as soon as we get home, we'll take a look at it, we'll get that signed. And then the worst thing that could ever happen when you make an offer like that, they ghosted me. They ghosted me for 60 days, two months, no answers, no return of text messages, emails, nothing. And then out of the blue, one day I get an email response. RJ, we're just getting back to this offer. I'm sorry for the delay. We were slammed with work. If the offer is still good, could you please update it and resend it? I will make sure to sign and return ASAP. Now, here's the thing that should lead to immediate joy, right? Boom, baby, we're getting our offer accepted. However, when 60 days pass, especially in a high-end market like Hawaii, and where this sits on Oahu, it's extremely high-end. I mean, we're offering$650,000 for a distressed property. You have to go back and you have to reanalyze. And what we saw was the market had softened a little bit. Now, I'm gonna tell them that and I'm gonna renegotiate on my price, but this was honestly the truth, right? The market had softened, prices had come down a little bit, and days on market had increased. So I wrote back via email. We're prepared to offer$600,000 on this property. So I lowered my offer by$50,000. After reviewing what has happened in the market since we originally offered, please let me know if this price works for you so we can move forward. We asked that you give us a response within 24 hours of receiving this verbal offer, as we do not want to leave an offer of this amount hanging in the balance. So I provided a sense of urgency on there. And why did they do that? Because the first time I had made a verbal offer, it took them 60 days to even respond to me. And this leaves us in a really precarious situation where right we want to be a solution to these sellers, but the other thing is we have to control our revenue streams, right? We need to get this deal closed so we can make money on it, and we really can't just keep analyzing deals and making offers and being inefficient. We're not gonna get signed contracts. So I applied that sense of urgency saying, I'm giving you 24 hours or I'm gonna pull that offer of$600,000. Now, this is a very serious statement considering the fact that I just offered them two months prior$650,000. That's a$50,000 difference. This is a big decision for them, right? It can be emotionally upsetting because I just dropped the price by$50,000, but also due to the procrastination, the market had softened that much. So they respond back: your original offer was$650,000 for the house and both cars, which is a fair offer. We would like to move forward with that price. A very strong response by these sellers. I gave them 24 hours, they come back immediately and say, denied. We're not lowering the price. That's a fair offer. I respond back. And I here's the thing I don't really negotiate deals via email very often, but I did like the fact that hey, the first time I talked to them was on the bone. I sent them a contract. I thought we were in agreement on that and did not lead to a signed contract. If this is the seller's preferred method of communication, I'll live there. I don't have a problem doing this via email if it's gonna lead to results. So I respond back. Seeing as two months has passed since that offer was made, we had to do a new analysis of where the market is today and the trend in which it is moving. Right now, houses are sitting longer on the market and going even and even going for less than anticipated in some areas. Also, we were able to want the property where the contractor and feel like the property does need a substantial amount of rehab for these reasons. This is why we are willing to offer$600,000 with the property as is, including all belongings and the vehicles. We do understand your situation and we want to be the solution to that, but we must protect our investment as real estate is an ever-fluid situation. Please let me know how we can make this work for both parties. Again, I stick to my guns. I didn't even move one dollar, stuck to it with an explanation. Education. This is the reason why I'm coming in where I am. The market has shifted, days on market is longer, and real estate is an ever-fluid transaction. They respond back. We want to make this work as well. I understand where you're coming from. I don't believe the price drop reflects the market in two months. I'm willing to meet in the middle and go 625. I believe this is fair. Let us know. I respond back. We will accept that counteroffer. We're sending over the revised contract now. Boom. Sign contract immediately after that. So I got them down$25,000 from the original$650,000 offer. Now, the reason why I was comfortable doing this is because we had already reached out to several of our buyers when we were told that they were going to sign the contract. So when I say that we had our contractors walk that property, the in buyers' contractors had walked the property and written them a firm bid for the rehab that was needed on that property. So we knew what rehab was needed, and we also knew where our in buyer was willing to purchase. The fear was that's where the end buyer was willing to purchase 60 days ago. So now my concern here is well, I know I could sell this at 675 because that's where my end buyer was, but what if they do that analysis? So the moment the signed contract, everything's done. We've opened up title, both parties have signed. We reached out to that end buyer and we said, Hey, that property on Ulipouni is now signed. Would you like it at 675? I'm totally anticipating them negotiating. Zero negotiation whatsoever. The question was asked: Have you sent this out to any other buyers? Not yet. We're about to, but we want to give you first right of refusal. You went out there, your contractors already won the property. You have a firm bid that's yours for the taking at$675,000. He said, Send me the assignment. Now, what I want you to see about this assignment here, I get asked all the time, should I double close at a certain amount? This is a yes and no. I've done hundreds of transactions where I've double closed. At some point in time, I realized it really doesn't matter if you build relationships with your end buyers. So on this particular property right here, I sent over the purchase contract showing$625,000 with the seller. And then I sent over an assignment for$675,000. Our end buyer knew that he was paying us a$50,000 assignment fee. I thought the title of this video was Watch Me Make$80,000 wholesaling real estate in Hawaii. You only assigned it for$50,000. What also came with two vehicles. So upon closing, we took possession of those two vehicles, went right down to used car dealership and sold those vehicles for$30,000. And that's how we made$80,000 wholesaling this piece of real estate in Hawaii with zero-dollar lead gen. This is a complete referral. Now you hear people talk about referrals all the time as they're one of the best lead sources. Well, of course they are. The only problem with the referrals is that you can't really count on them, right? You have no influence or control over whether or when they are going to come into your business, but they are so powerful. How did this come about? Because we talked about what we do. If you were loud and you're always talking about the deals that you're doing, I recommend every single transaction that you do, you talk about it on social media. You tell your family and friends, this referral came from family, came from a neighbor who passed away. There is no way in the world that we could have anticipated that that would lead to$80,000 of revenue for our wholesaling business. But it did. And the only reason why is because we were constantly talking about what we were doing inside of our business. And this was a massive transaction at the time for us. So be loud about what you do, be proud about it. Because in this scenario, we helped two sellers who inherited a property literally on the other side of the planet. That is a stressful situation. And we took all the belongings on the inside, we took over the cars, and they walked away with$625,000 in their pocket. Our end buyer ended up with a great deal that he ended up flipping. And this is the beauty of wholesaling real estate, where you can make a win-win-win situation where the seller ends up with$625,000 in their pocket. We end up with$80,000 in our pocket, and our end buyer ends up with a great deal that was profitable in a great location. That's our job to provide equity to our end buyers, to provide solutions to the motivated sellers. And that is how we earned that massive payday. Let me know what you guys think in the comments. Make sure you give this video a like. We'll see you tomorrow.