The Titanium Vault hosted by RJ Bates III

From Easy Leads To Overpaying For Properties | The King Closer Reacts

• RJ Bates III • Episode 632

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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)
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SPEAKER_01:

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 videos and react to it and tell you whether or not I agree or disagree. And this week, unlike last week, we're back to real estate. So let's get into the first video.

SPEAKER_06:

If I was wholesaling real estate, I'd do this first because finding leads shouldn't be the hard part. No lists to buy, no complicated systems. You just need a zip code and filters that actually work. Step one is opening list builder and choosing your market. Pick a zip code or draw a boundary where you want to invest. Step two is applying filters to find motivated sellers. Stack filters like absentee owner, single family home, 50% equity, owned for 10 plus years. Then add the list. Then view it and start a simple follow-up plan, whether that be mailers, calling, or just a reminder to stay in touch. If I was starting from scratch, deal machine would be how I'd find my first seller. Fast, focused, and without wasting time. Let us know what you'd do if you were starting over.

SPEAKER_01:

Okay, I'm gonna let you know exactly what I would do. Not that. Listen, I understand the reason why Deal Machine exists. It's a budget-friendly tool that you can use to build lists and skip trace for free and cold costs and mailers and all of that. But if I were to start over from scratch, I'm gonna take a small budget, maybe a thousand dollars, a couple thousand dollars, and I'm gonna go to speed to lead, property leads, lead solo, whichever logo I like the best, and I'm gonna buy the leads. So I know that no matter what, I'm speaking to someone that has a house that they need to sell. See, the thing about these lists is we assume that because the house is vacant, has an absentee owner, maybe a financial distress element like pre-foreclosure or tax delinquency, that they might be motivated to sell the house. That's not always the case. I'm sure if you've been doing this for any period of time, you've reached out to someone that was in pre-foreclosure and they're like, Yeah, homie, can't pay my mortgage. Doesn't mean I want to move, still want to live here. Will you modify my loan? You want to loan me some money? That happens on pre-foreclosures. And when you're new, then one of the worst things that can demoralize you is mining for leads, trying to find a motivated seller. So for me, if I were to start all over, I would just focus on the people that have already raised their hand and said, I have a house that I want to sell.

SPEAKER_02:

Whenever you're talking to a seller, there are three things you never want to ask them: time, price, and condition. Every single wholesale guru is ripping their heads out and thinking that I'm crazy right now. You see the whole motivation, time, price, condition that worked back in 2021 to maybe like 2023. But now your seller is so used to this dumb script. Hey, what's the beds and bathrooms of the property? What's the condition of the microwave? Well, when's the last time you changed the refrigerator? Now, if you were to sell your property, what time frame would you sell your property? And I'm curious, Mr. Steller, how much do you want for your property? Most wholesalers make the mistake of focusing on these questions. Then they put the lead in their CRM, follow up with it for the next two to three weeks, and wonder why the deal never closes. Because you missed the wrong thing. The only thing that matters on a call is motivation, nothing else. In order for me to put a seller in my CRM, they need to have motivation. No motivation, I don't want to talk to you. In a nutshell, this is what my calls sound like. Mr. Seller, do you want to sell your property? If so, why? If you cannot give me a reason why, I don't want to talk to you. In my company, we go by I call, I close, I serve. Nothing in there says time, condition, or price. I want to serve, meaning I want to understand your situation. I want to understand what pain you're going through, and I want to know how I can help. Once you make this switch from deal finder to problem solver, you'll make a lot more money.

SPEAKER_01:

Whenever you're talking to I like this kid. I mean, every time I watch his videos, he's got some pretty valid points and a great mindset in regards to how to navigate seller conversations. The only thing that I would disagree with is that price is important because sometimes the seller's motivation comes out based around the price that they need. And so if you ask it early on, which is what we do, Mr. and Mr. Seller, do you want to sell? How much do you want for it? Tell me what you got going on. Insert, same thing that he's asking. What's your motivation? What's your pain? And then we identify how we can serve them no matter what. That's the difference between the closure's formula and what Roy does there. But ultimately, the most important part of every seller call is motivation. So he's spot on right there. In regards to the condition, he he had some funny ones there. You know, tell me the condition of the microwave. When was the last time you changed out the refrigerator? You hear these things, like it actually happens on seller calls, and I could not agree more that it makes you pull your hair out. Well, I guess my beard, since I don't really have any hair to pull out. But overall, I agree with Roy. I think the only thing there that might need to change a little bit is we do need to know how much money because there are times where they are financially motivated.

SPEAKER_03:

Don't lock up freaking 5K, 10k deals.

SPEAKER_01:

Like, don't man, here we go. See, Brian, man, every time Brian DeVilla is on here, it's just an opportunity for me to roast him. I mean, this guy has been on his podcast. I think I'm the highest viewed podcast he's ever had. Uh, he's been on between two belts, one of the lowest rated episodes I ever had because no one knew who he was. Everyone was like, why would RJ, you know, interview this guy? And this is the reason why, because he has takes like this. Like, what is he talking about? Don't do 5K deals. Some people, 5K is life-changing, like they need that. That's a lot of leads. It keeps the business afloat. Anyways, let's let's see what else Mr. Davila mind-blowing stance is here.

SPEAKER_03:

Do it. And I'm literally like hard on them because those deals end up just dragging on and making this big cluster of just work. It just takes away from everyone's focus. So now I'm like trying to just focus on big deals.

SPEAKER_04:

I think that's a good point. I think that's in any business. A lot of people say, go solve like wealthy people problems or raise your price. You know, I was talking to someone the other day and they said they had like a$10,000 course. And he's like, I have a$50,000 one as well. Yeah. And he's like, the$50,000 people, they want one nugget here or there. They just want some guy, and they're not asked for their money back. The$10,000 one, they're like, hey, do that for me. I just gave you 10 grain, it was half of my savings. Yep. The$50,000 people are like, that was, you know, two weeks' worth of income from this company or this job. Yeah. Just guide me a little bit, give me a nugget here or there, and that's I'm good.

unknown:

Oh, lock up.

SPEAKER_01:

Brian actually did something smart. He brought someone else intelligent onto his podcast that brings all of the good takes. Since Brian brought complete ass of a take at the beginning, and the other guy actually came in, but the other guy was talking about educational courses, and he was like, It's true. Like, to be honest with you, the the high payers, they they do. They just want that little bit of knowledge that kind of moves the needle for them. It's what they need. And the lower-paying ones typically are a lot more needy. That's just kind of a known thing across entrepreneurism. Now, entrepreneurism, entrepreneurship, let's go with that. Now, going back to Brian's deal there about don't do smaller deals. If that's the case, you are going to be wiping out some of the hottest areas in the United States to wholesale in. And the difference is you just become a higher volume wholesale machine. It doesn't mean they're going to be difficult deals. It's just the price points, right? Detroit, St. Louis, Kansas City, Birmingham, Alabama. It's very rare for you to do a large spread on a single family home in those areas just due to the price points. But they can be quick and easy, and you can have repeat buyers where they're not difficult. So, no, Brian, not every small deal is difficult.

SPEAKER_05:

I got a good uh topic for us today, man. We're gonna talk about pro tips today. And then we got one more, Mike. You're gonna be good at this one here. Follow up. I love that one. So follow up, follow up, follow up. Why do you have to follow up with people? Dave, I just want to go make offers and get deals under contract. Well, because we have been doing this together for almost seven years, coming closer to eight. And we are averaging, our average deal takes about six months from the time we talked to the person to the time we close the deal. So that means we've had several deals that have gone on for years. We've had one under contract that we actually had to exit, thank God for our CYA clauses. That was a five-year deal. Wow. So again, yeah, follow-up, dude. It's it's important on every aspect of the sales process. So if you just think about this for follow-up's important.

SPEAKER_01:

However, if your average deal, did he say six months? He said six months. It's probably because you don't know how to close. Like, it shouldn't take that long on average, okay? On average, it should take like 16 minutes, okay? Because you identify, hey, do you need a cell? How much you want for it? Let's find out your motivation, let's solve the problem. Boom, let's move on. If you're averaging six months, you might not ever be asking for the close. Or what are you doing for lead generation? This has got to be like some slow ass direct mail, old school cold call. I don't know. I feel like they're living in like 1994 or something. Like it's not that hard nowadays to find someone that's motivated and says, this is what I need to sell for, and you close the deal. Closers close the deal. If we're always having to follow up, then there's a problem inside of the sales process. So yeah, follow-up's important. I mean, I've talked about it. You guys have heard me. We just closed the deal 2022, we set the contract 2023, but it wasn't because of the sales process. It's because shit happened in the seller's life. So it postponed everything. So realistically, if you are putting yourself in a position where you're mandating that deals close in six months, that's on you, and you're probably not serving the majority of the motivated sellers correctly.

SPEAKER_00:

I offered over full price for a house. I still crushed it by offering 0% interest. And here's how I did it find a free and clear seller that wants cash flow but doesn't want to be a landlord anymore. Offer full asking price or over the asking price to be able to get the 0% interest. No interest, no bank, and no loan application. Structure the deal using a promissory note or a D to trust for the seller's protection. I break down the exact script and paperwork inside my school group, so make sure and join now.

SPEAKER_01:

See, I don't like these types of videos because there's so much context that's missing here. Are there deals where you could potentially offer over asking price and get it because of the 0% interest? Yeah, you could. Let's say the the ASCII price was full retail at$200,000. They go now offer$210,000 at 0% interest. Does that cash flow, what is your end buyer going to want to do with that? And does it make sense in comparison to what is available on the market already? What is your competition bringing to the table? See, there's times where 0% interest can be enticing enough to make the deal worthwhile for the end buyer. But there's other times where if you can get it at a discount and I can step into equity, I would much rather be able to refi out, get all of my money, maybe even put some money in my pocket because most landlords are struggling with cash flow. I know that sounds funny because you're thinking the rent and all that, but maintenance, capital expenditures, vacancies, these types of things eat at a landlord's cash flow. So they lean and rely on that cash flow that comes in from the refinances to help float their business. And in this scenario, right here, if you're stepping into a deal and you're negative on your equity, it really limits your plays on that property. Because basically, what you're looking at is I can do a wrap where I sell or finance or I keep it as a rental property. And over the course of time, it takes a long time for you to buy that down to where you even can get close to that 70% of loan to value where you could then refinance. So there's a lot of context that's missing here. And I get it, she's trying to sell her program and get you into her school group. But ultimately, I see too much of this going on in the marketplace where newer people that are watching this on social media don't understand the little nitty-gritty details as to how a deal like this could potentially get you into issues. Last thing I'll say on that issues that could potentially pop up. What if something goes wrong? What if something breaks on the property immediately? Right? HVAC, boiler goes out, hot water heater. You're immediately negative significantly on that deal. So just be careful on those types of deals. All right, guys, that's our episode of The King Closer Reacts. Let me know did you agree or disagree with my takes? If you disagreed, go tell Steve Train. If you agree, drop a comment below. Show me some love, like today's video. We'll see you guys tomorrow.