The #1 Mistake People Make When Closing a Deal | 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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Chapters

• 0:00 Welcome Back And First Reaction
• 0:23 Contracts Vs Deals Reality Check
• 1:12 Vetting Buyers And Funding Risks
• 3:01 Confusing Flip Advice And “Who’s Phil”
• 4:59 Sales Language Vs Solving Problems
• 6:50 Tyler Osborne’s Path And Mindset
• 8:24 Due Diligence On Foreclosures Fast
• 10:51 Assignment Math Myths And Real Averages
• 12:48 Ethics, Regulation, And Transparency
• 15:43 Closing Thoughts And Listener Prompt

Transcript

SPEAKER_01: 0:05

What's up, guys? Welcome back to the King Closer Reacts. I am the King Closer RJ Base III. And after taking a couple week break from this series, we're back to see me respond and react to other people's videos and see if I agree or disagree. Let's get into the first video.

SPEAKER_04: 0:23

You don't get paid by locking up a deal. Like I hate to break it to you guys. Don't celebrate that as a win. If you walk away from the closing table with the seller and you got a contract, guys, that is just the beginning of it. All right. Don't go to your local chilies and celebrate, guys. Like it just started, and uh that's when the real work starts. Okay. Which again, whenever you lock up these deals, guys, they have to be deals. You don't get paid from contracts, you get paid from deals.

SPEAKER_05: 0:50

That's true. Like locking up a deal is just one part. Maybe it's a touchdown, right? But the game is still at a couple quarters in the game.

SPEAKER_04: 0:57

Yeah, you're not even at halftime yet, man. You know, the moment you're at halftime is whenever you find your buyer, right? Because then they still have to do their thing, and that's that's a whole other second half of it.

SPEAKER_01: 1:12

All right. I mean, I kind of understand what they're saying, but to a certain degree, I mean, we do need to celebrate the victories along the way. Uh, getting a signed contract means that one, you have solid lead generation, you were able to identify the seller's problems, combat underwrite, build a bridge for yourself, understand how you think it's going to be a deal for your in buyer. Finding an in buyer, it's it's kind of weird. Sometimes we use that language, but that's a lot easier nowadays than it's been in the past. I don't necessarily agree with the football analogy that once you've found your in buyer that you're at halftime, uh, you're kind of at like the two-minute warning of the fourth quarter. Okay. I mean, at that point, you're you're basically there. He's talking about, well, the in buyer still now has to do all of their things. That's up to you to vet out that your in buyer is prepared to close, right? He's probably referring to an in buyer that has to use a hard money loan, maybe even has to have an after-repair value appraisal. And then that is where the the deal could still be up in the air. But realistically, if you vetted out your buyers, you understand how they're funding it, and it's not contingent upon anything, you are pretty close to the finish line. But I get it. We don't want to just celebrate getting signed contracts. Um, the only other thing I'd say there is I've never really signed a contract at a closing table. Um, I signed contracts virtually or in someone's living room. So a little bit of a funny analogy, but I kind of get their point. Don't just celebrate contracts for the sake of celebrating contracts.

SPEAKER_02: 2:53

Phil has a great video you should study that drives this home, the biggest mistake in fix and flip houses. But as you also saw from our examples, there are times when some fixing is worthwhile. Ideally, it's when you can get a big return on any money you put in. And finding that sweet spot can be tricky. We've spent decades mastering that, and it allows our apprentices to maximize their profits as efficiently as possible. So let's be clear, flipping properties is not one size fits all. This business may be simple, but it isn't easy. You can waste a lot of time, lose money, or even end up in a legal mess if you don't know what you're doing. If you're early on in this business, make sure you master finding good deals, doing the right diligence to be clear on the optimal exit strategy, and learning how to flip fast with the right strategies and methods that are in a compliance with your state and local laws and MLS requirements. Let someone else take on the rehab headaches because they all think they can get it fixed easy, but they can't. There are always unexpected problems. You want to flip it. Phil has a great video.

SPEAKER_01: 4:04

First of all, who the fuck is Phil? Who's Phil? I don't know who Phil is. Second, is that guy AI? Is he AI? I dude, that was that was wild. I'm sorry. This is like the 100th episode of the King Closer React. And this has never happened. But during that short reel right there, I actually fell asleep with my eyes open in the middle of it. I don't even know what the man was talking about. I don't know what he was saying. Local laws, MLS requirements, flipping houses. I think that's what he's talking about. Man, that was just not good. I don't like it. I don't know what the man was talking about. I'm still stuck on who's Phil. Is it Dr. Phil? I don't know, man. I didn't like it. Can we move on? Can we go to the next one?

SPEAKER_05: 5:01

Stop trying to sell sellers on working with you. That's not how it works. Here's the truth about wholesaling. Go ahead and save this video for later. We're not in the business of selling. We're in the business of solving problems. Even if you could convince someone to sell their property, it would never be the deal that you'd want. Sales isn't about forcing anyone into anything, it's about showing the seller you care, asking great questions, and presenting solutions that actually work for them. When you talk to a seller, detach 100% from the outcome. Your only job is to ask the right questions, identify their problem, and figure out if you can help. And if they don't want to sell, that's fine. Move on to the next person. Wholesaling isn't about being Alright.

SPEAKER_01: 5:44

So I always find these types of videos funny when we want to use the language of sales to what we're doing in wholesaling when talking to sellers, but then we're calling them sellers, which means they're the ones selling something. So in reality, we're not doing sales. Now I agree with what he's trying to say there, which is we should be solving the seller's problems. And if we can't be the right solution, then move on to the next one and let whoever is the right solution. I just had a video about this on how we can have a hundred percent success ratio with PPL leads, which is they've already raised their hand and said, I have a house that I'd like to sell. And so if we call each and every seller with the intention of pointing them in the right direction and saying, I'm your right solution, or I'm not, this person is, then that's how you have a 100% success ratio. So I agree with what he's saying there. I just wish as an industry we would start really embracing the fact that we are contacting sellers as a buyer and we're not doing sales. We're not great at sales, we're great at just solving the seller's problems, which I think he was attempting to say, but maybe just change the language a little bit. All right. So this is Tyler Osborne. Tyler Osborne was on the acquisitions panel at Element 22. He's been with Titanium University since the first class, and he sat right next to me on my right side, and then everyone else was to the next to the right of him. And as I would ask questions, I had nothing else to do but to just stare at Tyler's glorious beard. It was on point, I just had to say. And you guys should be following Tyler. He is on this journey right now. I'm gonna listen to what he's got to say, but he is on a journey where he is truly embraced creating your own reality through this business. It's not about volume, it's not about deals for him, it's about living the life that he wants, spending more time with his wife, spending more time with his kids. He's coaching his sons, soccer teams, football teams, baseball teams, doing all the things that he wants to do with his life, and he's facilitating that through wholesaling. So he doesn't care about volume or about the vanity metrics of how much money, he cares about the life that he's leading. So let's listen away up.

SPEAKER_00: 8:24

It takes a little bit of effort on your end. So the video I just made about the guy with the foreclosure where the sheriff said it's good, um, it's not even to his desk. Well, um, I dove deeper, I called the well, I messaged the bank, and they called me back today, and they're like, Oh, we bought that house last Wednesday. I'm like, what do you mean? Like it's the sheriff said it's not even an auction, he hasn't seen it. Um, likely because it's already been sold, so he just it's not on his queue right now. Um so yeah, the bank's like, dude, we we own it, he don't own it, so um, I figured that out in one day by taking action. So instead of dragging this whole thing out, um, you know, getting walkthroughs, starting title, which costs money, and just hoping the deal solves itself and being stressed out the whole time by taking initiative, um, you know, is a one-day waste.

unknown: 9:26

Save me.

SPEAKER_01: 9:28

I love this guy. Tyler originally came to me in my DMs back in late 2023, and he knew nothing about this industry. Absolutely nothing. I mean, it was like, should I be pulling lists? Should I be cold calling? Should I be doing direct mail? Does PPL actually work? And this is before Titanium University, and so I was somewhat late at night when I'd be sitting on the couch watching a TV show, like responding to him. And I'm like, man, I don't really want to be like coaching someone through Facebook DMs, but I could just see the energy that he had. And then he immediately joined Titanium University when we opened up our first class. And to see him now at the point where he's at, like he's talking about there. This is a deal that he got under contract, and then after one day he realized that the seller couldn't even sell the house because he didn't own it, he lost it to foreclosure. But Tyler has now, like he's talking about, because of the action that he takes, learned how to do so many things in this business that some people still are kind of lost and and they don't know how to handle certain situations. I recommend for anyone out there, if you're wanting to move away from the whole guru world on on Instagram and YouTube, and you just want to see someone that's a straight shooter, honest about what they're doing in this business, go follow Tyler, follow Tyler Osborne. Um, he puts out great content about just what he's doing inside of his business.

SPEAKER_03: 11:10

Now the question is where do I make money from this? Because all I have is contract signed at this point. I'll give you the answer. Where you make money, let's just throw out quick numbers, right? Let's say you are under contract with the home seller for$100,000 and you know the cash buying investor is buying this exact property, he will purchase his property for$200,000. What you'll do is because you have it signed for$100,000 and the investor wants$200,000, you'll meet, right? You'll tell him, hey, I have a property for sale for$200,000 because you already know the investor wants to pay$200,000. What you make money in assignment is you make money in the difference. So the bigger difference you have with your first contract and the second contract will be the more money that you make. So it's very important to lock up deals as low as possible with your original home seller so you can maximize your profits when you're selling it or assigning it to your end buyer.

SPEAKER_01: 12:11

Thank you for breaking down that that math there of wholesaling. Now, I don't know where he was in the in the United States, but that house that was behind him, I've done enough deals to know. One, he doesn't have that comp property under contract for$100,000. Two, he ain't assigning it for$200,000. And three, if you're watching this and you think you're just gonna stroll in and get$100,000 assignments, you're not. Okay, especially at the beginning. Just go ahead and buckle up in the real reality. The nationwide national average assignment fee is somewhere in the range of$15,000,$16,000. And that's boosted by quite a few markets in the United States. Some places where that property looked like it probably was. That felt like a in Ohio, Michigan, maybe Alabama type house, maybe Kansas. I don't know. Just kind of my vibe that I was feeling on it. You're probably gonna be looking at like seven to twelve thousand dollar average assignment fees. Okay. Now, the other part of this is inside of our industry, we have a couple of things happening here. One, we have people saying you need to lock properties up for as low as possible, which is true to a certain extent. Of course, you want to buy deeper, right? But we do want to solve the seller's problems. We don't want to gouge them, we don't want to poke them in the eyeball. Okay. So the opportunities to make massive spreads normally are few and far between if you're doing the right thing. And then the other part of this is we have regulations coming down all across the United States, which, based off of what we're showcasing in our wholesaling around the world editions, which you need to check those out. We're on like episode 24, 25, so we're halfway through the United States. Each one of those, I go through and I give my take on what I feel where the state ranks virtually wholesaling, but also the regulations. And the majority of the regulations that are coming down, they want one thing. There's like one common denominator, and that is transparency. They want wholesalers disclosing to the homeowners that they are going to assign their equitable interests to an end buyer. What this is going to do is it's going to eliminate some of the competition. It's also going to force some of us to have to take smaller assignment fees at times. Eventually, homeowners are going to get the point and say, well, if I were to sign a contract with you today and you're going to go assign it, how much money are you going to try to make? It's very similar to, hi, Mr. Licensed Realtor, you're going to list my house for sale for$100,000. What is your commission going to be? What do I have to pay you to do this? Homeowners are eventually going to wise up to this and they're going to start asking us how much money are we going to make? They're going to wise up to the fact that you're listing properties on sites like Investor Lift that they can look up and they can see what you're actually selling it for. Transparency and authenticity is going to become more and more prevalent and mandatory inside of our industry. And so we're going to have to come to the realization that we're going to not have$100,000 assignment fees anymore. All right, guys, that's our episode of The King Closer Reacts. Let me know. Did you agree or disagree with my takes on this? Of course you agreed, but let me know, anyways. Make sure you like today's video. We'll see you guys tomorrow.