Wholesaling Is Officially Dead? | 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
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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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Chapters

• 0:00 Kickoff And Bold Football Prediction
• 1:15 Ohio Wholesaling Disclosure Changes
• 2:20 Motivation And Value Over “Rapport”
• 3:20 Flipping Risk Versus Wholesaling Reality
• 4:40 Virtual Wholesaling At Scale
• 6:30 Nationwide Strategy And Lead Costs
• 8:15 Debunking “Wholesaling Is Dead”
• 10:20 Trust, Process, And Seller Care
• 14:40 Closing Thoughts And CTA

Transcript

SPEAKER_00: 0:05

What's up guys? Welcome to the King Closer Reacts. I am the King Closer RJ Bates the third, and this is the series where I'm gonna watch a bunch of videos and tell you if I agree or disagree. Now, I have to let you know, this video is being recorded on December 5th at 1 p.m. But my alma mater, the North Texas Mean Green, is playing in the American Championship game tonight. And it's a winner take off. North Texas versus Tulane. Whoever wins gets a spot in the college football playoffs. And this video is not gonna come out until Saturday, December 6th. But I'm predicting it right now. The Mean Green are gonna be in the college football playoffs. And as an alum, I am going to be so freaking fired up for us to go get our ass kicked by 50 at whatever major college we got to play in the playoffs. But we're gonna make it, baby. We're gonna do it. So that being said, go mean green. Hope to see you in the playoffs. Let's get into the first video.

SPEAKER_01: 1:15

Speaking of wholesaling in Ohio, well, as my good friend Lee Corsa would say, not so fast, my friend. We've got some changes. The big change is gonna be that wholesalers are now gonna have to get a disclosure signed by the seller stating what their role in the process will be, that the seller has the ability to seek legal advice and counsel, and that they may be selling the property under market value. As with anything, these changes, we don't know exactly how this is gonna play out, but it is gonna be very important to stay on top of it. There is a benefit to sellers is they're now gonna understand what's going on. And for wholesalers, you'll be able to explain your role, what you're doing, and the value you provide. This is gonna be a huge change, I think, for the state of Ohio, and I'm excited to see what changes with it. If you have any questions, reach out to us.

SPEAKER_00: 2:01

So I loved the hook at the beginning. Thinking about wholesaling in Ohio, well, think again. But he did a great job of explaining why wholesalers would be concerned about wholesaling in Ohio. You have to actually explain your role. You have to be transparent, you have to get a signed disclosure, you have to let them know that they could be selling their house below market value. And this all goes back to what we teach inside of the closers formula, which is finding a seller that is motivated enough to sell their piece of real estate for a discount. That's why the single most important part of the closer's formula is identifying the seller's motivation and understanding that. So, like he said, I am actually personally excited for these types of regulations to come down in one of our best states, Ohio.

SPEAKER_02: 2:58

Obviously, there's calculated risk being a flipper. I always tell people all the time when they ask me about this like wholesaling to me is less risky, but it's harder. But flipping is more risky and easier. Um, but once you understand wholesaling and you start to figure out how to get these leads, I would much rather wholesale everything. Unfortunately, that's not always the case, especially in our market with how competitive it is. You know, just a basic example if a flipper could pay up to 200 grand, I need to come in and get it for 170 or 180 or you know, 190 to have a gap on a profit. So in that regard, it's a little bit more difficult. But that really just comes down to how how well you work your sales process, you know, your team, how they're able to build rapport and things like that. But yeah, if I could do one strategy all the time consistently and every deal, I would much rather do wholesaling.

SPEAKER_00: 3:53

Exactly. One strategy. Now, my question is why, if you know going into the transaction, that flipping could be and is more risky than wholesaling? Because quite frankly, there's very little risk when it comes to wholesaling. I mean, it's your time and uh upfront expenses that you spend on marketing. Outside of that, there is no risk realistically. So, but flipping, you can lose all of your savings, you could lose your life. I mean, there's I know people that have flipped houses that have had to file bankruptcy, they've lost everything. I mean, it is not as simple as people make it out to be, whereas it's really difficult to get that bad a shape wholesaling real estate. Now, he talks about if you if a flipper can pay 200, a wholesaler has to come in and get it 170, 180, 180. Right. That's your job. That's what you have to do. You have to provide value to both the seller and the end buyer. Building rapport, understanding that, maybe, but creating value for the sellers. That is where you get the spread. I don't know. I think we use the term rapport way too loosely, where it's like, so becoming their friend gets you to get the contract to 170, 180, 180. No. Providing the value and explaining to them why going with you as a wholesaler is beneficial, just like if a seller needs to sell on full retail market, they hire a realtor. There's value there. And do they get the full 200,000? No, they get 200,000 and then they have to pay out the commissions and the closing costs on that transaction. It's very similar, it's just how we get paid, is a little bit different.

SPEAKER_04: 5:41

It blew my mind that you could wholesale real estate without ever seeing the house. And so many people have this notion that they need to go belly to belly and close down the appointment. And there's nothing wrong with that. But if you're not scaling your operation in a multiple market, you're missing millions of dollars on the table every single year. And I want to talk about how you can do that. And it's super simple. You start in your lone local market where you don't go see the house and you test it out there, right? You don't go try to do it in another market first, you do it right where you're at. And so I'm in Phoenix, Arizona. And so we started doing this in the own properties that were 10, 15 minutes away from us. We could have easily gone out to the appointment, we could have easily taken photos of the house, and we did none of that. And the reason why is because it was building us up to then eventually go out and go wholesale these houses in all these other states, and now we're making millions of dollars doing this.

SPEAKER_00: 6:27

So if you want to learn exactly our process, yeah, we'll we'll hold off on the pitch there at the end. But I couldn't agree more. I mean, obviously, this is our business model, nationwide virtual wholesaling. The only thing I would have to ask is what is the benefit if you're brand new to only virtually wholesaling in your backyard? Is it this notion that you are going to understand the market better, that you would be able to comp and underwrite more? Well, inevitably you're going to have to expand out of your backyard. So I personally believe that you shouldn't limit yourself at all to any specific market. And the reason why is because this helps you on your cost on lead generation. Here's what I mean by that. If I were to say I only want to wholesale in Phoenix, Arizona, because I live in Phoenix, Arizona, and but I'm not going to be virtual. So I'm not going to go see these. I have none of the benefits of being local to this property because it helps me on competing underwriting, maybe dispositions or something along those lines. My average cost per lead is going to be significantly higher than it would be if I were to say, I'm going to be completely nationwide. I still don't go see the properties. I still don't know anything about company and underwriting. I have to learn that skill set. And I don't have relationships with in buyers because I'm brand new at wholesaling. So I'm just going to go completely nationwide and I'm going to significantly lower my cost per lead, which inevitably lowers your average cost per contract and your average cost per closed deal. Now, most people disagree with me, and I'm sure there's people watching this right now that significantly disagree with me, and that's fine. But we are proving this to be true over and over and over again with people inside of Titanium University, as well as our own wholesale operation. I pay$29,$30,$35 per lead, where some people have to be paying$100,$200,$300 per lead. So that gives me 10 at bats in comparison to your one. Now, I have a lot of room to fail, whereas you don't, because your budget's gonna run out well before mine.

SPEAKER_05: 8:48

Tell people not wholesale in 2025. Because wholesaling is dead, bro. And the reason why I say it's dead, I know it's controversial. Yeah, because literally it's becoming illegal. Number one, there are multitude of states that have outlawed it. And secondly, unless you are a highly skilled operator that has a team and a bunch of EAs and just a whole system in place, or if you are a solo operator, probably right now is a great time to be in wholesaling if you really know what you're doing and you have your systems dialed because of AI and et cetera, et cetera. But for the newbie coming in, it's never been harder right now than any other time. The market's super saturated, and there are other ways to make that kind of money or even more without having to struggle and be fighting with so much competition.

SPEAKER_00: 9:39

Where do we even? It's like I need a play-by-play where I can break down all of the incorrect statements this man has made. One, wholesaling is not dead. No, it's it's not more difficult than it's ever been. In fact, it's the opposite. It's actually easier than it's ever been. I don't know when this gentleman tried to get into wholesaling or if he did ever wholesale. I don't know who he is. Um, but brother, you come into wholesaling in 2017, 2018, it was like, all right, man, here's how you're gonna get this data, and here's how you're gonna reach out to all these tens of thousands of people, and uh you're gonna get cussed out, and everyone's gonna tell you to fuck off and die. And then out of one out of every couple of hundred, they're gonna say, like, maybe, what's your offer? And then you're gonna have to blindly shoot an offer out there, and then out of that, one out of every, you know, 20, 30 might stick against the wall. That's what it used to be like. Now it's hey, come in here, uh, spend a couple grand, you're gonna talk to only people that want to sell their house, and uh, yeah, you're gonna have to develop skill sets. I love how you said, yeah, if you're not super skilled, in what world are we like, yeah, you can make a ton of money if you just absolutely suck ass. Like, what are we talking about? You have to be good at something to make money, yeah. No shit. Like, what this is crazy. And is it becoming illegal? No, it's not becoming illegal. Every regulation that comes down has some sort of way for you to do wholesaling legally. Regulations are not outlawing this, okay? Ohio says you have to get a disclosure sign, that doesn't mean it's illegal. Texas has had the exact same thing for a while now, and it has not slowed us down wholesaling inside of Texas at all. In fact, we've had zero issues with the regulation here ever. So, no, it's not becoming illegal, and it's never going to become illegal. This is this take right here. You say it's super controversial. No, it's just dumb. It doesn't make any sense whatsoever in the fact that you say you have to have skill sets, you have to have systems, you have to have a ton of VAs. I have no VAs. Zero. I used to have VAs when apparently you thought wholesaling was great, and now you're saying the market is super saturated? No, it's not. It was way more saturated in 2021 and 2022. 2022 wiped out the field, bro. Go look. Who are all the gurus? Who were all the gurus back in 2021? Where are they now? Where was all the competition back in 2021? What are they doing now? Something else. The competition got wiped when interest rates went up and everybody was used to selling wholesaling their houses to hedge funds. And I said it for years: don't fall in love with wholesaling the hedge funds. There's gonna come a day where the hedge funds just pull the plug. And when they did, guess what happened? No one had skill sets, no one actually had relationships with real end buyers. And what happened? Wholesalers left, and there was this massive void, and we went in and filled the fucker. So, no, it's not oversaturated. This is the golden age of wholesaling. Don't listen to this shit.

SPEAKER_03: 13:22

You're talking to real people with real problems that want to sell their properties for speed, convenience, and ease. All right. And your goal is to get them to know, like, and trust you and build a relationship where they want to sell their, most likely the biggest asset they'll ever own. They're gonna want to sell it to you and they trust you that you're gonna be able to get done what you say you're gonna get done. Now, most of the problem with wholesalers is they don't really know what they're doing, right? So they're making offers that they can't keep. Sellers have been through talking to other wholesalers, so they they're already skeptical, right? They're not sure who you are. Even if you meet with them in person, they don't know if they can trust you. So you have to be able to gain their trust. And how do you gain trust is by having a good sales process, by being knowledgeable, and by letting them know that you can take care of them and solve their problems.

SPEAKER_00: 14:05

So you need a we're just gonna end it right there. Because the last time Nathan was on King Closure Reacts, like the last three or four times, I disagreed with him. And the last time I said, I really like Nathan, he's a good guy, I really do like him. And then he commented, he was like, I love you, bro. I yes, I agree with everything you said there, Nathan. And you're absolutely right. When we are talking to these sellers, it is our obligation to make sure that we understand their needs, that we explain to them how we're gonna solve that, and we build that through the credibility of our process. And so if you could go through this sales process, buying process, whatever you want to call it, explain it to them, build that credibility, and take care of your sellers. Great take there, Nathan. All right, guys, that's our episode of The King Closer Reacts. Let me know if you agree or disagree. And if you think wholesaling is dead, don't let me know because I will just have to kick you off this channel. Because wholesaling is alive and well in 2025, going into 2026. Don't listen to this crazy shit. Show me some love, like today's video, and we'll see you guys tomorrow.