Real Estate Hotline w/ RJ Bates III and Brent Daniels!

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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.

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

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

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Chapters

• 0:00 Six-Figure Months And Wealth Mindset
• 3:25 Assets, Debt, And Avoiding Capital Gains
• 7:30 Scaling Lean Versus Vanity Growth
• 12:20 Stocks, Rentals, And Focus Tradeoffs
• 18:20 Boring Beats Burn: Marketing Lessons
• 24:30 Building A Sellable Brand Or Not
• 29:20 Coachability And Skill Building
• 33:45 The Closer’s Formula Explained
• 41:20 Creative Finance Risks And Disclosure
• 49:10 Inspections, Dispo, And MLS Debates
• 56:20 Earnest Money And Deal Structure
• 1:05:30 Nine Levers Beyond Just Price
• 1:13:40 Paid Leads, Budgets, And Channels
• 1:22:10 Regulations, Markets, And Going Nationwide
• 1:28:40 Consistency, Cycles, And Avoiding Panic
• 1:36:30 Truthful Objections And Phone Confidence
• 1:43:30 Probate Niches And Title Headaches
• 1:50:40 PPL Reality: Skills Over Lead Count
• 1:57:40 Speed-To-Lead And Lead Management
• 2:05:20 When Dispo Stalls, Fix The Price

Transcript

SPEAKER_02: 0:00

No, you'll do it. Welcome to the channel where wholesalers and flippers learn to unlock their potential and rise to consistent six-figure months. You're not just building a business here, you're building freedom, confidence, and a life you're proud of. Every episode that we do here moves you one step closer. Let's grow together. My name is Brent Daniels, and I am joined today by the incredible King Closer himself, RJ Bates the third. What's up, RJ?

SPEAKER_01: 0:33

What's going on, Brent? Appreciate you having me, man. That was a hell of an intro.

SPEAKER_02: 0:37

Listen, you got that day memorized? No, absolutely not. I'm I'm holding my phone like this, reading it uh until I get it down. Uh, I should probably just put it on my my monitor here, but um, it just makes it easier, you know what I mean? But that's the truth, right? I I mean, truly, I think I think everybody that that that's watching this that follows us, they want to get to that point where they're making six figures a month. Not only that, but really getting to the point where you're keeping a lot of that income and taking that home and buying assets. I've been thinking about this a lot, RJ. I've been thinking about and I've been watching these different videos on how the wealthy really treat uh the money and and what they do with the money. And I've been seeing that the wealthy are really disciplined, they're putting their money into, especially, especially first generation wealth building. You know what I mean? Where, you know, maybe you grew up uh middle class, maybe you grew up, you know, lower middle class or even just poor, and you're you're doing amazing things, you're making good income, and you're not really sure what to do with the money that you have. And you see that the wealthy, they stay really disciplined and they put that money into assets, they let those assets grow over time, and then what they actually do is they get debt on those assets at, let's say, five or six percent, but those assets are growing at call it 10 to 15 percent. And so the assets keep growing, they get debt on those assets uh to live off of and to do whatever they want, buy houses, go on trips, live their life, have an incredible lifestyle, but they're not uh dealing with capital gains because it's debt that they get from banks, and that's really what the wealthy do. And I think that that's so critically important for people to realize that yeah, you might be making a bunch of money, and yeah, you might have wanted to buy all these things that you've always desired your whole entire life. But at the end of the day, you know, once you once you go through all those the shoes that you bought, or the car that you bought, or the watch that you bought, and all those other things, you need to really stay disciplined and buy assets and then pull the debt on those assets and let that asset base grow and grow and grow over time and never sell it. That's why they say that the the wealthy, one, they don't own anything, they just control it. And two, they don't get taxed because they're getting debt on the assets that they're building. And I think that that's absolutely huge. Absolutely huge. What do you think about that?

SPEAKER_01: 3:08

Well, I completely agree. One of the things I've noticed though, Brent, you and I have been around for long enough where we've seen people come into the wholesaling industry, start making really good money, like you know what you're talking about, get to that six figures, maybe even multiple six figures a month, and not really know how to handle the success. Not they don't know what to do with the money. And so instead of doing what you're talking about there, which I would consider that growing a secondary business, right? Yep. Hey, I'm gonna go out, I'm gonna, I'm gonna now create a landlord business, property management business, whatever you want to call it. And instead of doing that, they try to continue to scale their wholesaling business and get a lot larger than they need to be. They get more overhead, more bodies in the in the business. There becomes a it almost becomes somewhat cost negative at some point in time where it's like maybe you're making more revenue but less profit. I've done this. Yep. Um, I've always pointed back to you and say, Man, you're one of those guys that I think just nailed it from the beginning. You've always kind of kept your wholesaling business relatively lean and neat and highly profitable. I think that's something everybody should look at. And I I agree about what you're talking about, how you really capitalize on it and generate the long-term wealth. I think there's a lot of wholesalers out there though that miss the boat and they go after the vanity metrics, more revenue, more deals per month. And it's like, who cares how many deals you're making? Yep, like that. You know, that's always a question that gets asked on this podcast. I'm expecting you to ask me at some point in time how many deals you do in a month, right? Right. And it's like, who cares? Right? Is it's and honestly, how much money are you making? Why is that even? I mean, really, it's are you enjoying your life? Are you getting to do what you want? If I'm making fifty thousand dollars a month in my pocket and I'm happy, is that better than me making a hundred thousand dollars a month and me being miserable and stressed about can I sustain this? Can I actually handle everything that's going on in order for us to do that amount of deals? That's where I'm at in my my journey right now is getting away from what the world has told us, social media has told us we're supposed to do, and just saying, I'm just gonna go out and do what I want to do.

SPEAKER_02: 5:34

Yeah, I had this great uh like fractional family office. I'm not at that point where you have your own, you know, team that runs the wealth management. And they they did a report on the Forbes, you know, to the top 500 wealthiest people, and they look at where they hold their assets. It was like 65 to 68 percent in the stock market. Yeah, like eight percent was real estate, and then the rest is just like speculation on different businesses and that type of thing. And I thought that that was really interesting. I thought it was really interesting that they just put it into the market and let it grow over time and just kind of forget about it and do it really passively, um, as opposed to what we're taught in a lot of ways, which is you know, cherry pick the deals that you want to keep as rentals, right? And and and build your rental portfolio, which is awesome. If you want to be a landlord, if you want to do that strategy, it go bananas. There's so many opportunities to be able to do that. There's so many opportunities to get like big chunks of wealth, like add to your net worth by buying these, you know, properties that we get at incredible uh deal at incredible prices, putting some money in, getting it, you know, refinance it, get some long-term debt on it, and then pay it off. I love it. I think it's really, really, really smart, but it's not the only path, right? It's not the only path, and it depends, like you were saying, RJ. You know, you're you're you're growing and you're you're building your skills of finding great deals, you're either wholesaling them and flipping them, and then you know, I see people that go out and then they start buying a tremendous amount of rentals, and then their active income gets destroyed, gets destroyed because they just can't focus, right?

SPEAKER_01: 7:11

And so it's uh being a landlord flipping a house takes a lot. I mean, it's a whole separate business. Yep, that's why that's why I always got the little hedgehog back here. I always talk about I preach it hedgehog concept. It's not that you can't ever get to the point where you start holding assets, it's that you have to get to a point where that wholesaling business can run on its own, so you can shift your bit focus to go do something else. And I learned it the hard way. Um, I know I I've always I keep giving you compliments, but every time I'm there at your office and I'm around you, I mean, your wholesale operation is is self-sustaining to a certain point. I know you're still involved, but you could walk away for the next two months, three months, and not be involved on any level, and revenue is still going to come in. That's the point that I don't think many people ever get to. And and maybe they jump to the conclusion that they're there before they actually are.

SPEAKER_02: 8:13

Yeah, it's it's really it's my my team now. My my I have I have like a word of the year, right? I have a I have a word of the year uh each year, whether it's uh loud or it's um um you know be be really, really, really, really uh proactive. Um this year coming up is boring. Boring, RJ. I am going to I'm I'm going to play the classics. I'm gonna stay with my marketing budget because the beginning of last year it was expand, it was it was get into TV, right? I wanted to I wanted to get to the point where locally I was building a brand and I could spend$300,000 a month in marketing uh with TV, with TV, PPC, the whole thing, really build the brand. And what I realized is when I started, I was starting out at 50 grand a month, RJ, right? 50 grand a month. And I was like, this is gonna be great. I'm gonna be everywhere. People are gonna know me. I'm gonna be like a like a C level celebrity here in Phoenix. It's gonna be amazing, right? And um, I realized that the guys uh we have Andrew the home buyer, we have Doug Doug Hopkins here locally, right? They're they they have big budgets, they were spending 500,000, 300,000. So for every one of my ads, they had 10. You know what I mean? And so I they were eating up a lot of that attention. And I realized, and I talked to them afterwards, and uh at least to to um to one of the groups, and if I'm not spending a if I don't burn a million dollars just for the first year and spend that's$80,000 a month minimum, just to kind of break even, I'm not even playing, I'm not even playing in their game. I'm not even close. You know what I mean? And so that was a big lesson. So going into this year, and and I just fell flat on my face. I mean, it was like break even from the 50k, probably lost, honestly, RJ, from a profitability standpoint because I have to pay my guys, uh, operations overhead, the whole thing. I had to pay the the company that was doing the TV ads, all that stuff. And so I realized, okay, I'm gonna just stick to the boring. I'm gonna stay in the Google world. Uh where I've got the guys here in my office, they do a phenomenal job. Every single day they they they get together and look at best practices. We're spending over a million dollars a month, a million three now a month, uh, through our agency. So we really know how to do it. And I'm gonna just keep my budget really tight and I'm gonna squeeze the most out of every single lead. So my my 2026 is boring, just boring. I'm not gonna try to get over my skis, I'm not gonna try to go crazy, I'm not gonna try to expand, I'm gonna try to get as profitable as I can with a marketing budget between 40 and 50,000 a month.

SPEAKER_01: 11:00

What was the reason why you wanted to go after TV? Just for the brand building aspect of it, market.

SPEAKER_02: 11:06

Yeah, RJ, I you know, at the end of the day, I keep seeing I keep being drawn to the uh idea of selling a business. I saw what Batch did, yeah. I think that's what kicked it off, right? Like I I was with those guys. I I met with Evo when we, you know, we met at Einstein Bagels before they had they they they did anything, they were doing maybe 40-50 wholesale deals a year, and then they go and sell six years later, they sell a business for 30 million dollars, and I saw the whole thing, and I was like, Oh my gosh, that's and then I go, Oh, okay, then you get a big chunk, you put it in to long-term assets, and now you're you life's life's great, right? Right, like it's not an active income, they were building an asset, so I was kind of looking at that as you know, what what how can I build a brand that I could sell at some point, or how can I build a company that I could sell at some point? And um, I just I I I wasn't willing to risk you know getting to the$200,000,$300,000 a month and spend because you do need a bigger team. Uh, you do do need people that are that are really focused on it, and I'm just pulled in different directions with the coaching, with the agency, with the the real estate business. And um, and so I just wasn't I wasn't as dedicated as those guys were at spending that kind of money and building that brand. It's funny really gritty.

SPEAKER_01: 12:30

It's funny that you said it the way that you said it though, because I I think we could all that we have we've been a business owner and entrepreneur for long enough, we can relate to someone else did this, so I had this great idea on how I was gonna do my own version of that over here, and it's like I probably shouldn't have done that, right? Every now it works out, but there's more often than not, there's times like that where it's like, man, that really that was uh that was a wasted effort, and and the lessons learned there. Boring would have been better, doubling down on what was already working.

SPEAKER_02: 13:08

Yeah, well, we've got some we've got an incredible audience so far. We're gonna be rocking and rolling here, and we're getting into the mind and the brain and the experience of RJ Bates. Uh, we've got some questions already in the chat. I want to encourage anybody, if you have some questions, make sure that you put it in the chat so that we can answer them. That's the point of doing this live. Uh, great to see you, Edward and Howard and uh 88 Rod, 888 Rod and uh Kimberly and Dimitri, of course, absolutely incredible. Roger, wealthy dad. Uh, thank you guys. Thank you guys, Parker. Thank you guys for participating. All the guys, all the people, by the way, in the chat so far that I'm speaking to, RJ, are closing deals, which is absolutely incredible. And um, I I always felt like the difference between the people that really make it in this business and the people that just kind of you know nibble around the edges is they're wildly coachable, yeah, wildly coachable. They can take criticism, they can take instruction, and they can implement. They don't feel like they know everything, they feel like they want to build the skill. And I think that you need that. I think you need that part of to be coachable, to be really great at anything. Um, because criticism is good, you know what I mean? Getting the instruction and and and tweaking little things and getting an outside perspective, that's how you get to mastery. And uh, and once you build the skills in this business like like you have, um, that that's when your income takes that big jump. You know, that's when you go from 100,000 to 200, 300, and then uh personal, four, five, six, whatever you want to make, right?

SPEAKER_01: 14:45

Also, just a change of perspective on that. If you struggle being coachable or receiving criticism, constructive feedback, someone out there cares enough to take their time and their thought process to give that constructive feedback to you, to give that criticism. You should respect that in the fact that there's someone out there that has paid enough attention to you to give you that feedback. Um what's up, Jerry?

SPEAKER_02: 15:15

Jerry's in the house. Love it, man. Jerry was on two weeks ago. Incredible show. Let's do it, let's get into some questions. All right, so um RTRE uh RTREI 124 says, Yo, RJ, quick one. Can your closer formula work for outbound leads too? And how do you underwrite deals before you have photos? Just super conservative repairs or what? So I think that that's a a three-part question there.

SPEAKER_01: 15:46

Yeah, so first, can the closer formula work for outbound leads? Absolutely. Um, it can, it's it's going to be a little bit more difficult just because it is outbound. So you're obviously going to start with, are you looking to sell the property? You're going to receive with outbound a lot of maybe if the price is right, possibly, what are you offering me? Right. So that hurts because the next question is, well, how much are you asking for the property? So you kind of have to amend it. But the thing about the closer's formula that has really evolved over the past several years is that it's not a script, and it is very much a uh natural organic conversation with how the seller is responding to you. And so you have to always pivot and be quick on your feet. So if you do call someone and you say, Hey, Brent, are you looking at selling? It's like, Maybe, how much are you offering? Well, actually, that's what I was gonna ask you. How much do you want for the property? Well, I don't know. You called me out of the blue. How much you can offer? Well, tell me a little bit about what you got going on, let's see what we can do. And then maybe later in the in the conversation, you could revisit price. So you don't have a price in mind at all, Brent. So does it work? Yes, but just like anything else, you have to naturally and organically evolve based around the seller's response. And then how do you underwrite deals before you have photos? I never have photos when I underwrite a deal. Um, I'm not going to add a barrier to me being able to get a property under contract by saying, Hey, can you send me photos first? So you have to make some assumptions and you have to make some pretty solid assumptions based off of the year of the houses built, right? Starting there. Google Street View, what does it look like from the outside? And then also just the conversation of what the seller's telling you, the condition is, and then yes, you always want to be aggressive on the amount of rehab and conservative on the after repair value. So if I'm looking and I'm saying, yeah, there's there's properties that have sold for 250, but there's also some that have sold for 230, 235. I'm probably gonna put my ARV in that 235 range, conservative, right? Could an in buyer see that being at 250? Yes. So that gives me a little bit of buffer, and then aggressive on the rehab, and then also aggressive on my assignment fee. So instead of going in and saying I want to make a$10,000 assignment fee, let's plug in a 20. So if I'm 15,000 conservative on the ARV, I'm maybe 10,000 aggressive on my rehab, I'm 10,000 aggressive on my assignment. It gives me a little bit of buffer room there when we actually get to gain access and see the condition of the property. But the other part of this is that we let the sellers know that our process is what open doors process was back in the day. This is sight unseen. We are gonna come out, we're gonna inspect the property, and then we are gonna let you know if we can move forward at this price or if we need to renegotiate and revisit the price based off the condition that it actually is in. And so we're letting them know that there's a possibility that we could renegotiate based off that condition, but that's how we underwrite those deals. I never get pictures before closing a deal.

SPEAKER_02: 19:11

What just so that everybody knows, what is the closer formula?

SPEAKER_01: 19:15

Well, the closer's formula is the way listen, we I could I could go on for the next five hours about it. Okay, there's a lot of nuances to it. I'll just break it down very, very simple. This is the skeleton, right? It's how I talk to sellers. Do you want to sell? How much are you asking for it? Tell me a little bit about what you got going on. Open-ended questions, find out the seller's motivation. While we're doing that, these are some of the new uh, I guess, I don't want to say aspects to it, but things that I've added to it that I really want you to focus on when we're asking the open ended questions. You want to understand their price and their motivation. The most common seller that you're going to talk to is incorrect. Right price, but motivated. Yep. Okay. So at that point in time, we're we're going to identify that we have to educate them. Then you also want to understand the seller avatar. Who am I speaking to? Am I speaking to an owner-occupant? Is this a vacant property? Is this a tired landlord? Is this because of death, inherited financial distress, physical distress? Because all that depends on if it's going to be an emotional conversation or a logical conversation. And then we want to analyze the deal. That would be step four. And then at the end we we close. That would be like the skeleton of the closure formula. Like I said, I go on and on for a very long time about this, but that would be the framework of what the closures formula is.

SPEAKER_02: 20:58

Like, what do you like, RJ? What what's one that you're just like you you just say it unconscious? It's like you're a reflex.

SPEAKER_01: 21:05

How much are you looking to get for the property? You give me the price. Okay, so a hundred thousand dollars. Tell me a little bit about what you got going on. So you go, how much are you looking for the property? That's the second question. Yeah, I want to get the price. Yep, and then after I get the price, tell me what you got going on. So open-ended. I don't say with the property over there. Because if I say tell me what you got going on, if you are highly motivated, you're going to jump to that motivation. You're going to start telling me about life. You're going to start telling me the reasons why you need to sell this for a discount. That's what I'm aiming for. And also, it disqualifies sellers. Yesterday, Jerry and I went live. I talked to three sellers in a row that they said, I'll tell you what I got going on. I want to sell my house for as much money as possible, and I don't want to pay anyone to sell it. That's why I filled out your form because you're not a realtor. Okay. So you want as much money as possible. You have no reason to sell this quickly. No, I just don't. I want as much money as possible. Disqualified. On to the next, right?

SPEAKER_02: 22:13

And so RJ, why wouldn't you hit him with the creative finance offer?

SPEAKER_01: 22:18

But yeah, well, come on, Brent. We we don't have enough time in the day to hit that. I mean, listen, that's craziness. Um, there's there's time and a place for seller finance, there's time and a place for sub two. Yep. Um, that is not the time and place. I see it too often. We don't just default to making those offers. I've the two most important things I'm looking for is what is the seller's asking price, yep, and then what is their motivation. And the asking price is also a part of the motivation. The single most important thing for me is to understand why you are motivated to sell this real estate. Not that it has to be that you're motivated to sell for a discount, just what is the overall motivation for you wanting to sell it? And I've gotten to the point now where I tell everybody in my community that you have to have a hundred percent success ratio on the phone. Because no matter what, we are the real estate professional, we should be pointing them in the right direction. More often than not, probably 90% of the time, we should be telling them you're gonna go work with somebody else. You should work with a realtor. I'm not the best solution for you. And then when we are the best solution, that's when it's our time to close.

SPEAKER_02: 23:34

And so you're not trying to squeeze something out of every single lead, RJ. I mean, uh, isn't that a waste of your budget? I mean, why not you know pull out all the all the different uh techniques?

SPEAKER_01: 23:46

Because for one, I I want to make sure that I'm getting myself in a position that we are closing the right deals that are going to have a exit strategy that is going to be profitable for our end buyers. We are strictly wholesaling over here. Um, I don't want to manufacture deals. And so every time I'm talking to a seller, I want to make sure that I am putting them in the position that wins for them, wins for me as a wholesaler, and wins for my end buyer. And there's too many times where I see that the creative finance offer has put a seller in a position where they probably shouldn't have been. There was probably an easier, better solution for them. And then also we're scrambling to find a buyer that's willing to do what we tried to push and manufacture inside of the deal. Um, but no, I it you it's funny, we bring up budget because when we actually get down to it, and it's like, how much am I actually spending on leads and what's our close rate? I mean, it is very, very common for us to average somewhere in the six to seven hundred dollars cost per contract. Awesome, which is fantastic, right? That's gonna be top notch in the industry, and then people will want to know, but what about all these deals that you're passing on? That's the point, is that we're only closing those deals that we should be closing, but we are very efficient with our time, we're very efficient with our closing process, and we're also very confident when we do go for the close. And I think that's an overlooked aspect of this industry, the confidence that you convey to a seller. I got thanked by a seller yesterday for telling her, you don't need to go with me. This is what you need to do. And she said, Thank you for being honest. Like, thank you for just telling me the truth because I don't do this for a living. And she's like, I wish I could go with you, but I'd be losing$70,000. So thank you for telling me what I should do. Yeah, and I think that should be the goal of every single conversation that a closer has.

SPEAKER_02: 25:58

Yeah, we really look at it, RJ. We're we're looking for cash as is offers. I mean, that's that's that's what that's our bread and butter. That's what we're really good at. That's that's what we're looking for. It's like the old school uh Wolf of Wall Street thing when he goes, it's it's like a classic scene a couple times brought up in that film of sell me this pen. You know what I mean? And the the whole point of that is how long has have people been in the market to to buy a pen? Like you want to work with you want, and but it's the reverse for what we're doing, right? It's it's we're looking for this specific strategy. I don't want to try to, and I love that you said this. I'm gonna start using this, I'm gonna steal that from you. Manufacture deals, you know what I mean? Every time I've manufactured a deal, it's blown up in my face. Yep, totally blown up in my face. And so it's like, okay, I'm just looking for this, and I'm fine being the knucklehead that just does cash as is. I'm fine. There's a guy, um, nobody really knows about him. His name's Pete Fortunato. He's out of Florida, he's an incredible, like creative finance guy, always has been, been doing it for years and years and years. And I remember sitting in his seminar, and he said, Um, uh, if you want to be the dumbest investor in the room, do cash offers, right? Because that's the dumbest investor. The the smartest investors are creative, the smartest investors know how to put together, you know, these these different solutions and they have different options and all those things. And I I literally, RJ, I fell asleep in the seminar. It's the only seminar I literally fell asleep in. And that's not to say that Pete's like information was wasn't like top-notch. People in there were multi, multi, multi-millionaires, they had hundreds of properties, they're very successful people. It was just because like it just didn't resonate with me. It's just my brain, and I think it's okay for some of us to say, you know what, I just want to make a really great active income and then put it into assets. You know what I mean? I don't need to manufacture uh a deal that I keep and then I regret it forever because now I'm married to this property owner on some sort of seller financing for forever or whatever else. And I thought, you know, I was I was watching some of your content uh this morning, uh preparing for the show, and I thought that you brought up a really awesome, awesome point when it came to wholesaling sub twos. Yeah, because I think that it's something that that needs to be said and needs to be shared uh as much as possible because it is screwing up a lot of people. And uh sub twos definitely came under the microscope here in Arizona. The I I sat in the the uh area where the um uh the commissioner said it's it's uh mortgage fraud. I've talked to attorneys here locally, and they're like they don't agree with that, obviously, on a lot of different levels. They think maybe it's a breach of contract by not disclosing, you know, the do-on-sale clause type of thing. Um, but it I I think what you were saying about uh the disclosure and really connecting the person that has the debt, uh that has the loan with the actual buyer of the property is absolutely critical. So, can you dive into that a little bit?

SPEAKER_01: 29:04

Well, I have several Tu members that have got caught up in lawsuits because they got taught that they were supposed to go do creative finance, and so they went out and they did sub twos and they wholesaled sub twos, and then the buyers defaulted, and then the sellers ended up coming back and suing the wholesaler, yeah, and saying, Well, you approached me and you said that you were going to buy my house subject to the existing mortgage, and then yes, you did assign your rights to do that to someone else, but you never disclosed that to us, you never told us that. And my thoughts were on that. That was a reaction video that I was doing, um, where it was, hey, why not just do sub two? Why not just do creative finance on everything? Every lead should be closable, and and you know, you can still wholesale it. And I I personally believe with all the regulations that are coming down and across the country, if we're gonna do this, and and it seems to me that the common theme with all the regulations is disclosure, transparency, and wanting authenticity, right? They just want the homeowners to know what they're getting themselves into. Yep, why not? Let's get to the point where we just do that inside a sub two, right? Yep, they're gonna wholesale it. I'm not saying we have to outlaw assigning sub twos, but there should be some sort the seller needs to know who they're actually doing business with. Every time I've ever done a sub two, I've said the phrase to the seller you understand that you and I are gonna be in a short-term marriage. There's 12 years left on the mortgage. I don't know if I'm gonna hold on to it for 12 years, but there's a chance that means you and I are gonna be married for 12 years. If you're assigning that to someone else and the the homeowner doesn't know that, and the homeowners have got sellers have gotten themselves in horrible positions where they find out that the the mortgage has been defaulted on, their credit's been impacted because of it. That just there's a lot of negative that comes along with the lack of transparency. And to be honest with you, Brent, this goes across the board, in even in wholesaling. Why are we not just at the point? It's not 2015 anymore, it's 2025 where we can literally tell a homeowner, I am going to wholesale your property. Yep, those are my intentions. Yeah, I think we have to get to that point across the board, but especially when it comes to creative finance.

SPEAKER_02: 31:40

Well, our disclosure in our contract, um, RJ, as of this year, we we bolded the section and we have them initial underneath the actual section that talks about it. Um, and and just to make just to make sure that there, if there's any questions, and obviously we go through the the agreement and there's conversations about the different exit strategies that we have. I and I talked to my I talked to my team. I said, Would would people not do business with us uh if we bolded this and underlined it and really made a point to for them to recognize it? They go, they we wouldn't lose zero deals, right? We would lose zero deals, and so I love it. I I love that you know, listen, the wild west is always fun as an entrepreneur when when it's just running and gunning, and you're just you're just out there just talking to people and making offers and selling deals, it is so much fun. Yep, but the fact is, um that somebody with all the different regulations and with with people running and gunning and uh and not disclosing or or um you know telling the the seller something that isn't accurate, that that's what causes people to file lawsuits, and lawsuits lead to regulations. And so uh the more that you can disclose and tell people what you're doing, uh the absolute better. And it doesn't it doesn't affect our bottom line. We we went to one property yesterday. I'll tell you this, Joshua, my acquisition manager, went to a property in uh just south of downtown, and it's an area that's kind of coming around, but it's still pretty rough. And it uh the guy wanted like 500,000. We're at like 150 RJ, right? Like it's a it's a classic. This is zoned multifamily, you can knock it down and build, you know, a bunch of units on here and make a fortune and that whole thing. And we're like, there's no way, right? And we go out and uh we tell him, no, we're not even close. And so he's like, okay. Then he came down to 300,000. He's like, no, we're we're still not even close. And then he's like, okay, come back out and we'll talk numbers. Well, he had the neighbor there that owns some uh properties over there, and he's like, Um, you know, if he can't get 300,000, I mean you you you need to be able to give him 300,000 for the it was like a gang up. He was like, Oh yeah, they they got me. Um, and and Joshua said, Listen, we're we're a wholesale buyer, we're we're we're we're going to find the right buyer to match this up with, and to be able to, I'm just telling you right now, at this price, it doesn't make sense. You're gonna have to bulldoze the house that's on there, it's falling apart. And then if somebody's gonna build on top of that, it's expensive to build right now. And here's the numbers and everything. And the the neighbors like, oh, you're a wholesale buyer. We need to find the end buyer on this. This is who you need to direct with and all that. And it's like, great, go do that. Like 100% go do that. But I'm telling you, you're not getting 300,000 for it. I mean, right, it's you're not getting 300,000 for it, but I mean, disclosure is everything, and I think it's really important. Let's let's move on to um here we go. Life is an illusion. Uh, don't necessarily disagree. Uh, does every property get inspected by you before disposition?

SPEAKER_01: 34:51

So we're gonna do recon, which means we're gonna get pictures, it's not an inspection, it gets pictures, and then we're gonna send our in buyers, and the in buyers are the inspection. Quite frankly, I don't care what an inspector tells me about the property. I care what my in buyers tell me, and and they tell me what they're willing to purchase the property for. So that's what I mean by that. Um, we're not getting an actual physical inspection done of the property. Sometimes what I would say is the first person to enter the property to get pictures for us will also be an in buyer. So if a seller can't get us pictures because we are 100% virtual, we never go to the properties. Sometimes we will send an in-buyer, give them first write a refusal, and then if they don't want to purchase it, they just provide us with pictures, but there's no actual inspections.

SPEAKER_02: 35:43

What do you think about that? Is that just a it's a budget thing for you, RJ? I know that uh Josh and Tiffany High, they do a great job. They do a full inspection on the property, they give that to their cash buyers, they build a lot of trust with their cash buyers because they have the inspection. They then also have the opportunity to go, hey, should we buy this and flip it? You know, that's one of their strategies, or buy it and hold it. So they want to know everything about the property. Why not do that? Is it just a budget thing?

SPEAKER_01: 36:11

Well, I mean, for one, I have had inspections before, either provided by sellers, and I thought it was like such an added bonus, and then it's like I provide it to the buyer, and the buyer's like, that's fantastic. Um, I still need to go out and I want to lay eyes on it. Sure, because an inspection doesn't tell you everything that you need to know, right? Like if you go out and you could have a sparkling clean inspection and then go out, and it could have the worst floor plan floor plan of all time, right? And if you're like, well, hold on, I have to walk through bedroom one to get to bedroom two, like that's not gonna show up on an inspection report, right? There's things that buyers just want to see, they want to see it, touch it, smell it, yeah, right. And that just doesn't show up. And so for us, it's kind of also a release of liability where I never want to provide anything other than here's the facts, here's the address, here's my asking price, and here's some photos. Do your own due diligence and let me know what your offer is. That's the old school wholesale that I was taught, yeah. And so I've never really anything that we've ever added in regards to trying to provide to our end buyers is always kind of just been like, that's cute. I'm still gonna go do my process.

SPEAKER_02: 37:26

Yeah, got it. And are you are you just are you putting any of these? Are you dispoing on the MLS or no?

SPEAKER_01: 37:33

No, no, I don't think I've ever done that. Why not? I've just I've never done it. I've never I've never seen the need. Yeah, I guess we've done novations, right? But we've never done the whole like net listing on the MLS. Um, it's never been something that we wanted to utilize, and we've never had a need for it, really. Um, I I just I would rather just go the route of just converting it over to a full novation if we needed to do that.

SPEAKER_02: 38:03

Yeah, we've tested it a couple times, and every single time, RJ, we made more from our private investor network than on the market. And and and the tough part is it's not just it's not just the bottom line net profit on it, it's also how much education you have to give to real estate agents that are reaching out to you about the property, yeah, right, and they don't understand it. And because they don't understand it, then you're explaining it and they're like, What? How is that even a thing that you can do, right? And then they're confused and then they don't like it, and then you know, it turns into but you know, a lot of the agents that work with wholesalers, and there's a tremendous percentage that work with wholesalers if they're working with investor clients, they understand uh the process, but some of them have no idea, especially if they're new or they only do a couple deals a year, so there's a big education process there. Um, Parker asks, RJ, how do you explain uh to the wholesaler you're assigning this property on the appointment? I assume he means to the seller. How do you explain to the seller you're assigning a property when you're on appointment?

SPEAKER_01: 39:08

Very, very simply. Um, Brent, here first of all, I I want to be clear on this. There's a time and place for the transparency. Okay, I've seen my community take it to the extreme. I actually just had this conversation with them yesterday. I was like, hey guys, we don't have to come out right out of the gates, guns ablaze, and you know, we're we we we don't want to become the like the Bible thumpers of the wholesaling industry with transparency, right? They're coming out of the gates like, well, Brent, I just want to tell you, I'm a wholesaler, I'm not an end buyer, and I'm going to be assigning my rights. It's like, whoa, hey guys, we still gotta like build the build the credibility here before we just go. So there's a time and place for this. But if Brent were to say, are you Wholesaler, the answer is I am a wholesaler. Here's how I can provide value to you. And at the end of the day, it's no different than a seller hiring a realtor to list their property on the MLS and bring as many buyers as possible and get them the highest offer on the open market for retail listings. We're doing the exact same thing, except we are taking it to the in-buyer investor marketplace, and we are going to get as much money as possible, and we are going to make our profit, and you are guaranteed this price. That is what we're doing. And we are assigning our equitable interest in this contract. And so that's how I explain it to the sellers. And more often than not, they have no issues whatsoever with that. Because, and this, I was gonna bring this up to you yesterday. Jerry and I had multiple conversations with sellers that had said they had previously been screwed over by another wholesaler. I want to do a study, and Brent, I'd love for you to be a part of this. Yeah, if your team could just keep track over the like a month or a week or two weeks of the conversations that they have with sellers, what percentage of sellers bring up the fact that they have either dealt with or been screwed over by a bad wholesaler previously? Because Jerry brought this up and he said, Are you seeing this increase where there's not transparency? They don't know what's going on, but then the seller finds out because one guy told Jerry yesterday he waited 58 days to then terminate because I wouldn't come down like half on my price. Yep. And and then I found out he was wholesaling. Yep. Like, why not just tell that that seller up front? He had no problem with the the person being a wholesaler. Well, he had the problem was you didn't tell me and you wasted 58 days of my life. Yep. And tried to cut that in half. I'd love for us to do like a study on that to see because Jerry feels like it's increased. I absolutely believe in the past 12 months, the amount of homeowners that feel like they have been screwed over by a wholesaler, not being transparent, not telling them what was going on, has significantly increased. I'd love to be able to see, and I'd love to just hear from your team if they feel like that's going on as well, because you're in a local market, not nationwide.

SPEAKER_02: 42:35

Yeah, it's interesting because our leads are coming from Google, whether that's YouTube or Google My Business, or we're now creeping in certain markets with SEO, but mostly with PayPal Click. Um, we usually are just competing with the same couple people. Uh, it's not we dealt with that a lot more, RJ, with um with cold calling and uh text message marketing for sure. There was a lot of people that the the I don't know if it was just the personality of the sellers that that they were, you know, that they would work with somebody that just reaches out to them out of the blue. Uh it was way more that way, but I'd have to check with them. I I do know that some of the guys, you know, say if somebody random comes in and they are way above us, I know that something something's not right there. I just know because with with the with the two guys that we really compete with a lot, we're we're pretty close. I mean, we run numbers the same. We've been doing it a while, so we're pretty close. But when something's wildly high, the other thing, RJ, is this this is another interesting perspective, all right? There is a group in town that are cash buyers, right? They would they would raise funds around the country for fix and flips to do here in Arizona. Well, they'd raise the funds, overpay for everything to get the inventory, and not do the repairs. Total scam, right? But they went out and they're buying a lot of properties, and they were buying it from one of our competitors mostly. I mean, they were buying from everybody, but our competitors were able to bid out bid us because they had this specific buyer that was scamming people. So I always wonder like when when when I see an uptick in the amount that people are offering that that that is so much further ahead, I get curious, right? I'm like, how are they able to offer so much more? There must be an interesting exit strategy, there must be something interesting about this neighborhood, there must be something interesting about this specific um uh market or the way it's zoned or whatever else, right? And so I dig into it, dig into it. And whenever I come up to like a just a a cul-de-sac and just a dead end, I'm like, hmm, there's there's something going on. There's a buyer out here that's screwing around. And another buyer that that we saw that was overpaying, they were selling to they were they were really ripping off the hard money lenders who weren't really doing enough deep dive due diligence and and and and looking at the values of these properties, and they would sell it, they would assign it to people that they know for significantly more than they bought it from us, and just to get 80% of the purchase price covered by the hard money loan. So uh unfortunately in real estate, there's there's scams that that really affect a lot of people. And and whenever I see somebody paying a lot more, either they're gonna live in that property and their their mom lives down the street and they love it, and and and it's a different exit strategy, or something something fishy's going on. So I always look out for that. So, guys, that's just a little bit of um heads up on some of that. You don't you you definitely don't want to get involved, and the best people to really help audit that are your uh uh title companies. The title companies are always always like having fraud departments and having scam departments, uh, because it was vacant land before that, you know, people that owned vacant land out of the country, people are stealing their identities and doing it's crazy, man. But anyway, um, here we go. I like this question because it kind of kind of um leads into uh or or dovetails into what we were talking about with um you know the these different wholesalers just lock up properties at any price. Like, what is the power? This the question's really great. Christian Rivera says, hi, um hi, Rye and Brent. Very confused on earnest money. Uh, I think it's RJ. Earnest money, how earnest money works as a wholesaler.

SPEAKER_01: 46:46

So this is very simple. Obviously, there's going to be two earnest money deposits as a wholesaler. Okay, you as a wholesaler are gonna put earnest money deposit down on your contract with the seller. That is your good faith deposit on that contract, and it's a negotiable amount. It could be ten dollars, it could be ten thousand dollars, it could be whatever amount you and the seller agree to. There are us also subtle little nuances that you need to understand. Is it refundable and is it non-refundable? This is also negotiable in the contract. More often than not, if you're using someone like myself or Brent's contracts, we have it where the earnest money deposit is refundable during our inspection period, whatever length of time that is, which is also a negotiable term. That could be 24 hours, it could be the length of the contract. All of that is negotiable. Okay, once that inspection period ends, your earnest money deposit is now non-refundable. And if you do not perform on the contract, it is released to the seller. Now, when you assign your rights to the contract to an end buyer, they should deposit non-refundable EMD that would be released to you if they do not perform. So, what happens is say you have a seven-day inspection period, you put a thousand dollars down on day five. Your in buyer signs an assignment, they put five thousand non-refundable down, and two weeks later, your in buyer does not perform, and the whole thing blows up and it gets terminated. You would release your thousand dollars to the seller, and that five thousand would be released to you as the wholesaler. That if you write up your contracts correctly, that is how it would work. Um, it is a powerful tool that can help you either get a property under contract, but in reality, an earnest money deposit should be your protection with your in buyers, and it should prove to you that your in buyer is going to perform because if you make it a significant amount enough money that it's painful for them to not perform, then that protects you. Yeah, I love it.

SPEAKER_02: 49:30

And I think you know, the only time that we really have we we we always put a minimum thousand dollars, if not more, down for earnest money. And um that I I often find that what you were talking about before, RJ, when people get burned by other wholesalers that tie them up and disappear, or um, they just can't perform, or they overpromise, they they they shot really high, and then they just try to hit them with price reductions over and over and over and erode the trust. Um the the second time around, the sellers are like, I want more earnest money and I want it non-refundable. Like I want to know that you're serious, I want to know that you're gonna make this, especially if they're working with a real estate agent, right? Um, and so the the earnest money, and it's really interesting. And I want to get your opinion, your your thoughts on this, RJ. I was talking to Ryan, my acquisition manager, and I go, you know, how do you how do you how do you make a customized offer each time? How do you make sure that it's we're hitting all of the different uh goals that the property owner has? So we always go in, what's your goal with with the sale of this property? And that opens it up. And then then he goes into, and I think this is really powerful, and you guys should be using this all the time, you know. He goes, Okay, listen, we both know that we have to agree on the price. We we we both know that. So let's just set that aside. It has to be the right price for you, it has to be the right price for us. So let's set that aside. What else makes this a good process for you? What else makes you happy in the sale of this property? And he came up with eight main things that they talk about. Earnest money being one, all right, refundable or non-refundable, the size of the earnest money. That's a that's something that you can use in your negotiations. Two is when to close, right? Do they want to close in a you know, 90 days? Do they want to close in nine minutes, right? Or whatever, right? When to close is is another factor in negotiating. Do they need money up front? That's another one that's been big for us. They need money to pay their bills, to keep the lights on, to get their car out of repo, to you know, all these other things, right? They just need some money up front. Uh, personal property. What happens with personal property? Can they leave it? Do they do do we need to put a dumpster out there? Do they need help, you know, um figuring out what to do, what to leave and what to take and those type of things? Personal property has always been a really interesting and big thing that people don't really realize. Number five is evictions. Do they have to deal with an eviction? Is this a tired landlord that has to deal with an eviction? Number six is helping them find the next place. Okay, guys, they these are all things that you need to think about when you are. We can't just be a commodity. We can't just go, okay, here's your price, it's cash, it's as is. No, we pay all the closing costs. Everybody does that, right? What are the little things? Joe Homebuyer. I own a Joe Home buyer franchise, and there's a great um analogy that they use in their sales training. They say, Imagine Christmas dinner or Thanksgiving dinner or whatever, and you've got a buffet out there and it's got all sorts of different options, but you can only put five things on your plate. Well, RJ, your five things are gonna be different than my five things. So if we go in there going, Oh, here's the five things, isn't that good? Don't you like this offer? Without finding out what are the things that are really important to them, then we just we're we lose we lose the rapport, we lose the trust, we lose the deal. So we gotta find out.

SPEAKER_01: 53:04

This is why I say there is no script. Yeah, there is no script that works and doesn't work because every conversation with a seller is going to be completely different. What he's talking about right there, those are the eight main things. Yep, you know how he figured out those eight main things by having thousands of conversations and finding out that there was 800 different things that people wanted, and those are just the eight common ones that got brought up. Yep, but at times it was I want non-refundable EMD because I'm facing foreclosure, so I need to make sure that you are going to perform, and then it's oh, and by the way, I've got a ton of stuff. Can I have a dumpster?

SPEAKER_02: 53:47

Yep. Well, you've got the other ones probate and inherited. Yeah, do they do they understand that process? Are they going through that process? Or did do they understand what their rights are during the process? Can they sign an agreement? Does it is it valid? All those things. Uh, post-possession and helping to uh helping to move. There's actually nine things. Those are the those are the nine main things besides price. That we really try to find out how do we make this a great a great process, a great transition, a great transaction. If you want to go kind of cold with the verbiage, but how do how do they make this a great sale? It's not just about price, and here's here's when we close, and it's as is, and it's all these other things. It's it's um there's other factors involved.

SPEAKER_01: 54:35

So that's what I asked the sellers. What is the blue sky scenario for you? You can paint the perfect picture of what you want to happen on this call. What would it look like? Don't be afraid to ask me for anything. Love it.

SPEAKER_02: 54:50

We've got top home buyers here. Hey Brent, what are your thoughts on Facebook ads with a$2,500 a month budget? Are you hearing success from that marketing channel? Um, I actually find that there's more success from a YouTube strategy, but I think that if you if you understand Facebook ads and you understand how to run them, just understand that Facebook has uh definite restrictions when it comes to fair housing and and the ads that you can do on Facebook, but as long as you follow their guidelines, um you you you can do uh you can do well with it. It's just you know, I I don't have enough experience to to tell you. I know that we've done uh Facebook and we've done YouTube, YouTube's been way better.

SPEAKER_01: 55:34

YouTube's been I'll speak on this. Yeah, if you have$2,500 a month and you are not a Facebook ad professional, you should absolutely not do it. I haven't what would you do? I bet I know what you're gonna say. I would do anything other than that. I mean, personally for me, I you do PPC. You I go hire Brent's company, right? Hire his agency to do it for you, hire somebody else to do Facebook ads for you or YouTube or Google or something. Personally, for me, I do PPL. PPL, I take that budget,$30 a lead, and I'm I'm getting everything that I would need. But here's the thing going back to the Facebook ads, the reason why I'm saying that Nick and Simma are my business partners in Titanium University, they have dedicated their entire careers to understanding how to do one thing, and that is Facebook ads. Yep, brother. Did you know that there are just as many conferences and masterminds based around Facebook ads as there are wholesaling? Probably more. It's just there, it's caught, it's it changes every day. What works update? It's insane. Yeah, what works today, like I I will have a picture of myself that's like and it works today, it'll book 12 calls, and then tomorrow our entire budget will go and it won't get one click. Yep. And it's because Zuckerberg decided out of nowhere, like, no, that's not gonna be what the algorithm is today. And so if you don't have somebody on there that that's their sole focus all day, every day, you're gonna get your teeth kicked in. Brent was talking about TV, where he was like, Doug Hopkins over here is spending you know, four or five times what I was willing to spend, and I couldn't gain any traction. Yep. I'm telling you, there are days where CIMA creates 60 to 100 ad sets a day for Facebook ads. Yep. You are you are going to get destroyed by your competition that is doing that. If you and so are you a wholesaler or are you a Facebook ad guy? Personally, I'm a wholesaler. Somebody else want to go do Facebook ads for me, go do it. I found them, they charge me 30 bucks a lead. I love it.

SPEAKER_02: 58:03

Yeah, I think that you if you've got a budget under, let's just call it 3,000. I would say yeah, under 3,000. Um, or or you can spend up to 3,000. I think that there's really two options that I've seen be really successful. One is um uh PPL, and uh you could test out who you like there. I I've uh most of the uh feedback that I get has been with property leads, but we have people that use iSpeed to lead, we have people that use motivated leads, we have people that use uh some of the other ones that are just popping up. Um, so I think that that's a really strong strategy. I also uh a lot of people like um mailing, direct mailing to the US lead list, and that is the pre-probates and probates in the area. They do a really, really good job. Uh, this company was on a uh waiting list for markets forever and ever and ever and ever and ever because they only allowed one in each market. It got sold to my friend Micah Nichols back in 2022, maybe 2021, and uh he opened it up. It's still restricted in in markets, it's not like everybody gets that list, but it's a phenomenal resource uh for people if you're under that 5,000. And then really with with RJ with with PPC, if you're in a major market where we're seeing right now, if you're in a major market that has a million people or more in the surrounding areas that you're going after, you minimum ad spend minimum a month is fifteen thousand.

SPEAKER_01: 59:37

Right.

SPEAKER_02: 59:38

Minimum now. Listen, there's plenty of uh places that'll take your money and they'll run your ads and spend 2,000 to 5,000 to 10,000 to 12. I am just telling you right now, you are burning your money alive. I mean, it's just you're you're you're you're you're burning it up. I mean, you might you might break even, but more likely you're gonna lose a bunch.

SPEAKER_01: 59:57

So here's my thing, Brent. Yeah, in this Why I always ask people if you have that low of a budget, why are you being picky about what market you're in? You need to have you need to be willing to close a deal wherever you could get a deal. So you need to come to grips with you need to go close you a deal in the middle of Ohio, Missouri, Mississippi, Alabama, wherever you can get a deal for as cheap as possible, and get you a little five, six, seven thousand dollar assignment fee and move on to the next one and get that built up to then where you can be picky of I want the Phoenix, the Fort Worth, the Denver, the Tampa, because otherwise you can't compete. You're you're you're swimming up water.

SPEAKER_02: 1:00:44

Yeah, yeah, for sure. I mean, and Google will take your money right away. It's it's absolutely incredible. So um, here we go. We've got one for you. This is um Bossman trash can, Bassman Trash Bossman. Okay, I got titanium profits, and I've enjoyed it and learned a lot. I'm curious if there is additional comping and underwriting trading in titanium university.

SPEAKER_01: 1:01:10

So, yes, but what I would tell you is that inside of titanium university, the education that you're gonna receive is not much different than what you're gonna receive on our lower ticket price things like titanium profits or even just on our YouTube channel. And here's the reason why Titanium University is about action, it's about implementation, it's about daily help. So the additional training you receive is I have a property that I need help comping. You put it into the comp portal, and the same day, my team comps and underwrites it for you and trains you on how to understand how to comp and underwrite that, or you bring it to an implementation call, or you could submit it for a live comp review and have Cassie comp and underwrite it and teach you how to do it. Our objective inside of Titanium University is to show you how to eventually be able to do it on your own without any questions, and so there's not going to be a video that doesn't exist out there, it's gonna be that hands-on training that really makes a difference for you. Love it.

SPEAKER_02: 1:02:16

Um, Kimberly is in North Carolina, they've got HB 797. Uh, I was talking to some clients out there in North Carolina, Kimberly, and it sounds like to me that uh they're just strategizing on closing deals and then reselling them.

SPEAKER_03: 1:02:32

Yeah.

SPEAKER_02: 1:02:33

Um, is is the strategy there? It seems like the Carolinas, uh, interestingly enough, are um they they just they they they have the most regulations out of everybody.

SPEAKER_01: 1:02:44

It's really interesting. Which well, Oregon, Oregon and Nebraska, I feel like are pretty rough. Oregon is crazy. South Carolina and North Carolina are gonna be pretty rough. Here's the other question that I would ask, again, going back to what I just said. Why are we being bullheaded about our markets? You're in North Carolina, it's okay, it's mid. I've done them in all 50 states, it ain't that great. All right, go somewhere else. You've got other places right around you that are fantastic, right? So you don't need to be where you wholesale. We've got the softwares available. It was crazy when I told Brent that I was nationwide in 2020. He was like, What are you talking about? How do you dispo these deals?

SPEAKER_02: 1:03:34

Well, the the craziest was when you were nationwide flipping, yeah, yeah, yeah, yeah.

SPEAKER_01: 1:03:38

We don't want to talk about those days, Brent. Hey, PTSD coming back. Sorry, sorry. Listen, we can bring up the softwares nowadays that help us dispo anywhere, you know. Hop on over to some of the other states right around you. Georgia's great, Florida's great, Alabama's great, Tennessee is great. Do they have some of the regulations? Yes, but they're not as crazy as what North Carolina and South Carolina are gonna be.

SPEAKER_02: 1:04:04

Yep. Uh JTREI, again, uh appreciate you and Brent hosting this. Thank you guys. If you're only doing outbound, what creates a predictable 10K month? 10K a month.

SPEAKER_01: 1:04:19

Reps, baby. Yeah, consistent work and getting used to to to putting in the the necessary grind that has to come along with it. Now, Brent just dropped just a second ago about the US lead list that would help you on your outbound, right? But the thing that I found that people really struggle with, for one, ten thousand dollars a month is is a low. That's that's realistically, if you're doing things correctly, that's less than a deal a month. Okay. So you're talking about you need one deal, so you need to understand that that's not a lot, but you're probably new, and that probably seems like a lot, and that seems like a lot of money. That's why you're doing outbound. Um, you've really got to get yourself in a position to where you can grind away for a consistent amount of time every single day, and you've got to get the to the point where you're comfortable on the phones to where you can close from on one dial, you need to be able to close, and you need to be able to comp and underwrite to where you know it's a deal where an in buyer will buy. Because that's what be people want to know what we do for leads, and then they they underestimate the importance of knowing where an in buyer buys, and so we tell them the lead, you go buy the lead, and then you get 10 properties under contract, and then you go, so all 10 of them got terminated because no buyers wanted to buy them. And it's like, okay, so now you figured out the leads wasn't the problem, it was a skill set, right now. Let's talk about what you really need to understand where an in buyer buys. That's why someone just asked the question about is there more comping and underwriting training inside of TU? Yeah, it's all day, every day, and it forever will be because it's the skill set that you need to understand. Where will an in buyer buy? And are you able to convince a seller to sell you a property for that price? The ten thousand dollars a month, though, mindset-wise, you've got to understand that's nothing. Go get you a deal, make it, and do it again. It's really not that I know I'm I'm like simplifying it, but it's really not that hard.

SPEAKER_02: 1:06:35

You know, RJ, the first month in the business, I I had a real estate license. I I was just being a realtor, and um, we were in a meeting, and the the broker stood up and he said something I'll never forget. He said that uh his name was Chad Schreiner, and he said, Listen, here's the facts about real estate that you need to understand. 70% of your income is going to come in your top six months of the year. 70% are gonna come in the top six months. And he goes, but guess what? You if you don't have if you don't have a budget for marketing, you're in hustle season, right? You're you're you're you're you're you're hustling, and so your hustle doesn't stop. You have to hustle the whole year, the entire year, even though your income is gonna be 30 of your total income is gonna come in six months, doesn't stop the the the hustle. And he said if you do have a marketing budget, you have to put the same amount of marketing budget in year round and still have enough discipline with your bank account to be able to keep your marketing budget going while you're having these 70 in six months, 30 in the other. The best, and by the way, in the same thing in the wholesaling business, same thing in the flipping business. I've done uh both of those, and uh I've been doing wholesaling since 2013. The best I ever got was 6535. 6535 when it came to the top six months. This top six months of the year, we got 65 percent of the income. The other six months was 35. So when I hear people go, 10,000, I need to make I want to make$10,000 a month. Guess what? It's not gonna happen that way. Yeah, you're gonna make$40,000 and then you're gonna make two, and then you're gonna make$30,000 and then you're gonna make five, and then you're it it it it's it goes like that, and you you want to try to smooth that out as much as possible, but there is gonna be fluctuations in the business, and you need to recognize that, or you're gonna make really silly amateur decisions with your spending, and it's gonna screw your whole business up. I see people make these big checks, RJ, and then all of a sudden they're they're in some you know forty thousand dollar Facebook ads mastermind. Yeah, I'm like, oh my god.

SPEAKER_01: 1:08:51

Here's the other part is on the flip side when you don't make the money, yeah. There's panic that sets in, and then it's I want to change, right? I'm I'm gonna go do a different lead source than what just worked, so I changed my whole business, and every time you change anything, there's a learning curve that comes along with it. It's one of the biggest mistakes people could ever make, right? That's why when you look at me and Brent, you're here for a reason. I do PPL, he does PPC. Yeah, it's basically the same thing, except I don't do it. I I pay somebody else to do it. We're doing the exact same thing, basically, right? We don't do anything else. It's what we do, yep, and and we're succeeding, but why? Because we do it every single day. We don't ever panic, we don't ever lack consistency. There's not going to be a random Wednesday when our team just doesn't dial the phones and doesn't call the sellers. I would assume JTREI 124, there's been a lot of lack of consistency for the past two and a half years, right? Because otherwise you would start seeing some results. The other thing is, brother, you have to find your people and you have to surround yourself with those people. You need to be around somebody else that's doing what or at least wants to do what you're doing. Because another thing that really impacts newer entrepreneurs is the voices in their head that's their family, their spouse, the people that don't understand this, that aren't crazy like us, telling them, why are you still doing this? Why do you watch those two goofballs on YouTube telling you to do this when for two and a half years it hadn't worked? Just like yesterday, someone told me and Jerry that we were assholes for saying promoting TU for 10 seconds at the end and saying, no, it's just these gurus, they don't actually do deals, they just want to sell you education. No, we actually do this, we want to provide that, but that's the the thought process of the masses, and so you've got to be surrounded by people that don't think that way because that also impacts you when you go to sit down on the phone and be a problem solver for a seller, but your your wife or your brother or your mom and dad just told you you're a loser for doing this for two and a half years, and why are you wasting your time? You need to go get a job. It's really hard to be the problem solver on the other end of that phone.

SPEAKER_02: 1:11:17

Yep. Step number one is find your tribe. Yep, you have to. You have to because people will have no idea what you're trying to accomplish. And when that happens, uh, even even if they're not like aggressive with their negativity, the lack of support is uh is like a hole in the middle of your your soul. You're like, oh man, I just want people to cheerlead me and and and celebrate my wins and understand what I'm going through here. Find your tribe for sure. Uh Jared asks, how do you guys handle the objection when cold calling of? Why do you think I want to sell?

SPEAKER_01: 1:11:53

Guys, all objections are overcome with the truth. Yep. Well, Jared, I pulled a list of people that are in pre-foreclosure, and I skip traced it, and it appears that you were on that list, and so I'm reaching out because I I believe you might be in pre-foreclosure, and I don't want you to lose your house, so I'd always reach out to see if you would be interested in selling. I pulled it because you're a high equity absentee owner, and I was curious to see if you wanted to cash in on some of your equity. You are behind on your taxes, Jared. I'm going to see if you wanted to sell because maybe you can't afford this house anymore. Whatever the answer is, just sell it to them. Yeah, it's not gonna work for all, but guess what? If it works for like five to ten percent, you'll be like a one percent wholesaler.

SPEAKER_02: 1:12:46

Yeah, yeah. Yeah, I I think I think people ask that question. My experience, I mean, I got that a lot. I think a lot of people thought that like somebody's ratting them out, you know. So when the neighbors, like, hey, go buy this house, it's ugly, or go buy this, we don't like them, or whatever else, you know. And uh, I would just say, no, you know, it's uh I I'm just interested in buying a property in the area, or I I've got I've got a group of investors looking to buy in this area. I just want to see if you would consider an offering your property, or whatever, you know, or you know what? I was looking on my computer and your your property address popped up um as as owing property taxes. I just wanted to see if uh you would consider an offering your property there if we you know what I mean, and so yeah, totally agree. Love it. Every objection, what'd you say? Every objection is handled by the truth, the truth.

SPEAKER_01: 1:13:40

Hey, you know what? It gives you a really easy answer. You just all right, I don't even have to think about it.

SPEAKER_02: 1:13:47

That's right. Uh Ashley says, RJ and Brent, what's up? RJ, I seen you last night genuinely laughing with Jerry, and I thought to myself, I want to laugh, I want to truly enjoy what I'm doing, regardless to of what I'm saying to the what the seller might say. How do you get to that point, RJ?

SPEAKER_01: 1:14:03

Well, I think for one, you're probably feeling some pressure, and that's why you you can't get to that point yet. Um, two, relax on yourself a little bit, right? We're we're all I was just telling Brent before we got on here. I was like, Yeah, yesterday's live sucked. I got my teeth kicked in, you know, I didn't have very many good conversations and all this, but then I said, you know what? I'm probably a little bit too hard on myself. I do this all the time. It was a two and a half hour call session where I split the time with Jerry. So say I had an hour and 15 minutes to dial. I mean, that's a pretty short sampling. I probably shouldn't be that hard on myself. The other part is what is the point in being an entrepreneur if you're not having fun? Yep. Oh my god. I mean, dude, if we all wanted to be miserable, we could just go get a guaranteed paycheck, go work for somewhere else. I did this because I didn't want anybody to tell me anything. I mean, it's like I want to wear a hoodie and a hat, and I want to have this big gnarly beard and not shave and do whatever I want. If I want to go play golf in the middle of the day, I do it. If I want to laugh and joke and have fun, I that's what I want. That's what I want in life. And so it's like, dude, when you get on the phones with sellers, you know that there's going to be ones that really need you, it's going to be highly emotional. There's going to be some that are going to be super fun. Enjoy the ride and the moments that we're creating for ourselves. Otherwise, what are we doing this for? What are we doing it for?

SPEAKER_02: 1:15:36

Yeah, and listen, after you talk, I truly believe this. And this is um, it was a theory, and then I've just seen it um just go into almost like a law uh in my own mind and in my own business. But if you talk to a thousand people and you ask them if they would sell their property or consider an offer, whatever, what whatever verbiage you want to use, you talk to a thousand strangers about their property, you can talk to anybody about anything. You're gonna build a confidence that is so much higher than everybody else that the competition actually slips away. It's inevitable that you'll win because most people won't go through that, most people won't be rejected that much. I remember sitting in uh a really fancy, I was part of a luxury brokerage. And um the there's people that just weren't doing anything, they weren't selling anything, they weren't they they they loved dressing up, they loved looking fantastic, they loved driving the nice cars, and um they just wouldn't, they they couldn't deal with rejection. And then I had like the the guys and the gals that had terrible, terrible personalities, terrible cars, terrible hairdoes, crazy eyebrows, meld, you know what I mean, and they would be just running laps around all these polished, all these, you know, kind of the you know, uh people that were just working on their appearance because they didn't care about rejection, they didn't care about they were gonna do the work anyway. So that's why I mean it's like if you talk to enough people and you make enough offers, you cannot lose. You can't lose. And so just remember that. Remember, everybody goes through that that struggle period. You have to build the skills, and one of the biggest skills to build is having a thick skin, is being able to be like, you know what, they they just told me the worst thing any human's ever told me before in my life. Uh, and I'm gonna just brush it off and move on, yeah. Because you don't know what their life's about, you don't know what's going on in there. Anyone that acts that rude and and and that mean to you, they've got bigger fish to fry. They've they they've got they they've got some problems, you know what I mean? And so you you you just gotta have some empathy and move on.

SPEAKER_01: 1:17:56

And just if you record all of those calls and you put them on reels, they'll be the ones that go viral. I mean, I'm just saying if you ever want to go viral, just record someone cussing you out.

SPEAKER_02: 1:18:06

That's right. Bray Billion says, Hey Brenton RJ, I'm working probate list in Gwinnick County, Georgia. What are some strategies I can use to make my offer more attractive and help the petitioner have a smooth process?

SPEAKER_03: 1:18:20

Hmm.

SPEAKER_02: 1:18:21

Well probate list.

SPEAKER_01: 1:18:25

So this is I Bray. I always get down when I get these specific types of questions. It makes me wonder why have you chosen to go down this path? Like, why why choose to specifically be in Gwynette County? Why choose to only work the the probate list? That is that is a hard path to go down. You're dealing with a lot of moving pieces, you're dealing with a lot of emotion involved, and it's going to be a timely process as well, like it can be lengthy, and so the majority of wholesalers need quick, consistent transactions. Why not open this up to where you can have more opportunities? Because when you're saying, how can I make my offer more attractive? You you really you can't. Like it's gonna come down to all the different personalities involved in the process. I am I am in the part, I'm still dealing with my grandmother's estate. She died in 2019. I got hammered on the probate list for the first six months. Yeah, I haven't received a call in three years about my grandmother's estate, but I still can't, I can I still can't do it. And so you're just in such a tough little niche. Think about how niche we are, and then you're putting yourself in such a corner. I would really ask you to like maybe open it up, broaden it up a little bit more to give yourself more of an opportunity to succeed. I mean, what do you think, Brent?

SPEAKER_02: 1:20:20

Yeah, well, listen, I I've got in the Rhino tribe in in our mentorship, we have some guys, uh, some guys and gals that this is all they do, RJ. And the reason they do it is they they find two years tax default, and they find that the person has passed away and the family doesn't know about it, right? And so it's it's an opportunity to find some really unbelievable deals because it's like you're you're reaching out to the family, and they're it's like, oh my gosh, this distant relative. Uh I've got this inheritance, right? And so it's it's it's elated for a lot of these these property owners. And so what they do is they really get educated on the process, specifically in that area, in it whether it's a state thing or a city thing or a county thing, they get very educated, whether they sit down with the probate attorney or whether they just learn from YouTube or whatever else in the state, so they understand the process, the paperwork, all that stuff. Um, and most of the times they just refer, you know, two or four different probate attorneys to help out with the process, and and and they they do a phenomenal job. I mean, it's a huge value, they go more quality than they do quantity when it comes to outreach.

SPEAKER_01: 1:21:33

And that's what I'm saying. If you make that decision, that is what you're going to go all in on. It sounds to me like if you're asking this question, and I'm making an assumption here, it feels like you're not that in tune with the process yet.

SPEAKER_02: 1:21:53

Yeah, I think I think you need to like know it backwards and forwards so that you can explain what the process is. And then I think you need to get super niche on that list and look for the properties that maybe it's not just in probate, maybe you go after the tax defaults and and they're the only reason they haven't paid their property taxes is because somebody passed away and nobody has gone through that probate process before. But once you know those and it's a combination, I mean, RJ, we've had we've had multiple deals where the where the air has signed over, they only want like five or ten thousand and or zero dollars. Because if they got the if they sold it for um as much as they could or as much as the you know uh somebody would offer on the MLS or or with an agent or or even the investor that they're talking to, it would affect their government check. Yeah, and they don't want that, right?

SPEAKER_01: 1:22:50

So they're like just take the property. Mind you, I'm not saying don't do inherited and probate deals. I'm saying when you're when you're that niche and you're asking that question, I'm a little bit concerned about the long-term sustainability of the business. That was more my question. I don't know if he's still on here because he hasn't responded to anything we said, but that that would just be when we get that niche, it's like you either got to go all in on it, and that's where you're gonna make your living. And like you said, it's all about the quality. It kind of reminds me of like a Dave Day, uh a Carl Spielvogel. Like these are guys that are like a Logan Fulmer. People are like, I want these super dirty title, you know, I'm gonna do something that nobody else is willing to do. It's like that's great. Maybe that's your personality type. For me, I'm the complete opposite. Brent has more of that personality because he's like the go deep in a single market, right? This is like you're going deep in a single location, single marketing channel. Yep. I am like the I want to cast the widest net possible and give me the most opportunity, and then find people that know how to do that. Love it when that opportunity comes across.

SPEAKER_02: 1:24:09

Raviro Zay, Reviro Zay says, With PPL, how many leads should you buy before actually getting a deal?

SPEAKER_01: 1:24:17

This is my least favorite question ever asked in existence. I'm not I'm not bashing you, brother. I get why you're asking it. Everyone wants this answer. I will tell you that here's the answer.

SPEAKER_02: 1:24:30

Are you gonna give us the uh the attorney response?

SPEAKER_01: 1:24:33

Yeah, here's the answer, okay? It is not the leads that dictate whether or not you're going to get a deal or not. It is you and your skill sets and your work ethic and your ability to get in touch with the sellers, to be able to connect with the sellers, to be able to understand what they need, and then be able to comp and underwrite, and then then be able to close, and then be able to dispo that deal. And let's not forget, also do transaction coordination. That is what dictates if you could do a deal or not. Here's your second. That is also true. Although now I've just all right, what's the r do use? Resembly.

SPEAKER_02: 1:25:18

Jeff says, uh, RJ, your least favorite question is what CRM do you use? LOL.

SPEAKER_03: 1:25:24

Jeff's great.

SPEAKER_02: 1:25:25

Yeah, uh, there's a great question on the um uh what is the what markets have the least regulation?

SPEAKER_01: 1:25:34

So there are some states out there that have no regulations whatsoever. Um, David Olds from Easy REI Closings has a great resource for this. You can just go to waronwholesaling.com and he has a a pamphlet that he gives you that shows all the states that have regulations. But there's many states out there that have zero whatsoever. I am currently in the midst of every single Friday, I release a video about a new state, and I one of the topics I talk about is the regulations. Yep. Um, many states have regulations out there that are somewhat irrelevant, like Texas has a regulation, but our regulation is that we have to disclose that we are assigning our equitable interest to a seller and it or to an end buyer, and it's it's the most irrelevant regulation ever. It never impacts us whatsoever. Um, so yeah, you could go to war on wholesaling.com and that can help you out there.

SPEAKER_02: 1:26:33

Yeah, Jerry also has a good uh good one, wholesaler regulations.com, either one of those guys, uh, really up to date. But I think it's uh I mean, what half the states have regulations, half of them don't. Right, you know what I mean? And so um it just off the top, I'm like, does Florida have any regulations? I don't think so. I don't think so.

SPEAKER_01: 1:26:56

Florida's there. You go, Alaska, no regulations in Alaska, wholesale it up in the North Pole. There you go.

SPEAKER_02: 1:27:03

I mean, Arizona, you have to disclose that you're a wholesale buyer. I mean, we we we did that well before, but um, that's that's the regulation here, and so yeah, I again with regulations, guys, just understand the rules and and play by the rules. Um, when are you having Ryan acquisition on for AMA? Thank you. Is that you?

SPEAKER_01: 1:27:27

That's you, okay.

SPEAKER_02: 1:27:28

Yeah, so Ryan, I'll I'll bring Ryan on here. Um beginning of the year. I mean, Ryan's phenomenal, and you guys could pepper him with all sorts of.

SPEAKER_01: 1:27:37

I was gonna bring on Ryan on your show, huh?

SPEAKER_02: 1:27:40

I didn't know I didn't know what AMA is. Me either. So I thought that was like a thing that you did. I didn't know maybe it is for me. I mean, I don't know. Are we supposed to do a thing called AMA?

SPEAKER_01: 1:27:52

I don't know.

SPEAKER_02: 1:27:53

Yeah, yeah, but maybe somebody could uh acquisition manager something, I assume. Um, but yeah, I'll bring Ryan on. He'll he'll he'll tell you anything.

SPEAKER_01: 1:28:03

That's what it is.

SPEAKER_02: 1:28:04

Ask me anything, ask me anything. Nice. We're sold. That's it. That's it. Awesome. Uh join. Oh, we got that one. He got his first deal under contracting. Congratulations. Hold on, let me see if I can get this, see if this will go. Uh where is the is this a bell? There we go. Oh uh, Luke, are you still here? Luke is um my video guy. Okay, I'm gonna add Luke because he's got some questions here, and I always like this because we do a little, we have a little bit of fun. Um, and then we'll uh we'll finish out the show. But really, guys, thank you for participating. We got some we got some uh questions from the uh YouTube from the um uh Facebook, and so I'm gonna add Luke on here. What's up, guys? What's up, man? What's up, Luke? What do you think of the show so far, buddy?

SPEAKER_00: 1:29:04

Really engaging, honestly. There's been a lot of good questions here, and we got a few more from Facebook from the Rhino tribe.

SPEAKER_02: 1:29:11

Let's let's hit you with this. You ready, Luke?

SPEAKER_00: 1:29:15

Okay, Q Boy asks breakdown of your entire team in deal volume slash gross profit. Always interested to learn how big operators run their businesses. That's for me. That's for you are for for either one.

SPEAKER_01: 1:29:32

I love this one. This question gets asked on every single live podcast that I ever do. We have yep, it's a very lean team. Um, so actually, we completely revamped our team this past year. Um, I feel like we're always in a in a changing process, but titanium university really took a toll on the wholesale operation um because of the growth over there, and so we actually had to lean into titanium university. So I actually hired um Danny Herman out of Titanium University to take over Titanium Investments. We brought on Justin May, bringing on a couple of other gentlemen right now. So the wholesale operation outside of me and Cassie and the leadership team is about five or six people. Um, we have now completely outsourced transaction coordination to easy REI closings. That's been something that's always been a thing that we've held inside. Um, we are getting back to doing 20 to 25 deals a month. That's where we previously were. Um, that took a dip down with the revamp, but we knew that when we made those changes, uh, bringing Danny in and then hiring the the whole new team, uh, which has been a fun experience for for me and Cassie. And then uh average assignment fee is$15,000. So I'll let you go ahead and do the math for yourself.

SPEAKER_00: 1:30:52

Awesome, lovely. Should I rip another?

SPEAKER_01: 1:30:55

Let's do it.

SPEAKER_00: 1:30:57

All right. Jeff Cody asks, what CRM do you use? He loves that one.

SPEAKER_02: 1:31:04

No, we already we already put that. He was on re-assembly, yeah.

SPEAKER_00: 1:31:09

Okay, David uh Johnson asks, different PBL providers, pros and cons in refund policy on property leads.

SPEAKER_01: 1:31:18

Okay, so I use lead solo, speed delperty leads. Okay, um property leads is going to have$30 nationwide exclusive to leads. I like them because they're exclusive. Um, also from the aspect of you're gonna get mainly uh Google PPC and SEO leads. And if you've ever had SEO leads, they are the best out there. Um, the con on property leads is they can be extremely rural, and so on dispositions can be extremely difficult at times, and that's the biggest complaint for property leads. Speed the lead,$29 um coupon club,$59 active um leads for$200 a month. So you have to pay$200, and then you trigger the$29 and$59. The benefit there is you know the motivation, you know the condition, you know the location, you know everything about it before you buy it. The downside is there's gonna be multiple people buying that lead, so you have to have skills, right? So it's not exclusive. Lead Zolo is a blend of the two, so they have their own marketplace, they also have exclusives. Um, their their leads have gotten continuously gotten cheaper, they're now being more competitive with property leads and speed lead. Their quality has always been very comparative to both of them. Um, in fact, during 2023, the majority of our deals were lead solo. 2024 kind of took a little bit of a dip behind speed lead and property leads, but we've seen it come back up this year. Cody Morris has joined that team and he's incredible. Um, I think he was an extremely valuable addition. Um, and then as in regards to the refund policy for property leads, it's as simple as you submit the the refund ticket to them, they are going to verify that what for whatever reason you said it needed to be refunded is true, and then they'll accept it or decline it. So if it's like you can't get a hold of them, they don't need to sell the house, whatever, wrong phone number, they verify that if what you say is true, then they refunded your money.

SPEAKER_00: 1:33:28

Nice. Okay, Parker asks, How do you scale your operation after closing your first few deals? You don't. There you go.

SPEAKER_01: 1:33:40

You don't why why in the world would you want to scale after doing a few deals? This is like I'm gonna go run a marathon after I've taken three steps, right? Like, brother, fall in love with the process, fall in love with it. Learn everything, you need to do everything. You need to call the sellers, you need to be TC, you need to do dispositions. You've got to do it and learn it backwards and forwards, and then hire a position, right? I'm really good at acquisitions, hire someone for acquisitions so you can train them, then you go get really good at dispositions, and then you hire someone for that and do it slowly and organically. Don't fall in love with what social media tells you to do.

SPEAKER_02: 1:34:24

I'm I'm gonna go even harder on this, RJ. If you have consumer debt, credit cards or a car payment, pay them off first before you hire anybody. Seriously, if you have student loans, pay them off first before you hire anybody. If you have any of those debts, you are literally just an ROI for somebody for a bank. You are, and so for you to go out and hire people and have the financial responsibility of their them and their life and their family in your hands, and you don't have your debts paid off yet. That's just suckling out all of the earned income, active income that you have after taxes, uh, you're not ready. You're not ready. Make a ridiculous amount, stay in the saddle longer than you think. Pay off the credit cards, pay off the student loans, pay off your car, pay off all of that. So you get that disciplined and you're being you're bringing in enough money to be able to do that. And usually that that can happen for most people after say 30k, three straight months, 30, 30k, maybe 40, maybe, maybe four months, five months. You do all that, pay off all that stuff, get out from underneath the thumb of somebody. Remember that that debt is uh the financial slavery. You're working for them, you're you're working for that job. I mean, you're working for that bank until you get that paid off. So pay off that and then and and then go bananas, and then start growing and building.

SPEAKER_00: 1:36:01

Luke? Yep. We have one last question. Eric Lozano asks, how does a solar operator keep up with lead management to ensure quick response to incoming warm leads five to ten per day? Follow up with contacted sellers that have a longer CEO COE timeline, like 90 days, and underwriting and analysis for hot leads.

SPEAKER_01: 1:36:31

Love it. How do you keep up with all that? Well, it sounds like you need to place 10 dials a day to your new leads. Um, assuming you have, I don't know, a solid queue of these 90 CoE leads that you're done, 90-day COE that you're talking about. Maybe you have to place a couple of those a day. And uh, you need to learn how to comb and underwrite when you're on the phone. You don't need to be combing and underwriting when you're not on the phone. I I mean go watch one day of me during the 50-50-50. Go to my YouTube channel, 50 deals, 50 states, 50 days. They're eight hours long, and what you will see is me managing a queue of 300 leads every single day. I whatever you just told me does not sound like you have that much to manage, unfortunately. I am the worst, I'm the worst person to ask that because management of leads is like that's just pure work ethic. Like, are are you willing to do it or not? Um, Luke, real quick, yeah. There are uh are we about to wrap up, or can I answer a couple of questions? No, no, no, we're we're we're good, we're good for the next 20 minutes, bro. No, I just I just wanted to make sure because there's a couple of questions over here that got asked based on a couple of my questions.

SPEAKER_00: 1:37:57

So talk to them.

SPEAKER_01: 1:37:59

Good, yeah.

SPEAKER_02: 1:38:00

So let me let me let me answer that. First of all, if you're getting five to ten leads and you're a solopreneur, I RJ, wait where do you think these leads are coming from? In in your opinion, a solopreneur that's getting five to ten leads uh a day, team of coal callers, you know it, brother. Yeah, I love RJ. You're the man, yeah. It's nonsense leads. You have none, they're garbage.

SPEAKER_01: 1:38:25

There's one of those leads. That's why there's warm, there's hot, there's long coe timelines.

SPEAKER_02: 1:38:32

Yeah, listen, you need to trash them as fast as possible. So you get on there and you pre-qualify and you trash them as fast as possible. This thing right here is the best CRM you can have. It's right here. This is this is what that is, okay? You need to trash those those leads that are just like, oh, yeah, I don't I don't remember uh saying that I wanted to sell, but what's your offer? You know, or or all this other stuff that's just absolute nonsense. You have to get through so many of those leads to find one good one that you need to trash them as quick as you can because it'll pile up and pile up and pile up. You're literally laying down at the bottom of like an hourglass, and you're just getting blasted every single day, and it's just gonna pile on and pile on and pile on until you're buried and nothing happens. Your business will be dead.

SPEAKER_01: 1:39:25

Lots of leads are for losers for sure. For sure. I I said this to TU the other day. I said, you could open up your CRM right now and not scroll, just all I need to see is how many leads you have in your CRM, and I'll tell you whether or not you're succeeding or not. Yep. You tell me you have a thousand leads in your CRM, and I bet you're dead fucking broke. Sorry, I know you like dead broke. Yep. Uh, what questions did you want to get into? Go ahead. Um, there was this one right here. Jacob said, uh RJ, I'm holding myself back from doing nationwide leads because I don't want to get one in a state that has regulations. Do you agree? No, because the one thing about each state's regulation is that there's always a way for you to legally perform as a wholesaler, one way or another. Even in the worst locations like Oregon, all you need to be is a licensed wholesaler. You need to have disclosures that you provide. So even in the worst place, you can still do it. And you're holding yourself back on the fact that 46 of the 50 states have no regulation or a very light regulation that's like a simple disclosure. So it's like, okay, all we need to do is a little bit of research to figure out what we need to do, and then we're legally making a ton of money, right? So don't hold yourself back from that. Um, and then the the other one was Jeff said property leads has$30 leads, thought they had a bid. They do have a bid, but the nationwide leads are the$30. So if you wanted to get Phoenix, Arizona, then yeah, you're gonna be paying a lot of money, right?$350. Yeah, three three to three fifty. Yep, right. You're competing with everybody else. So what I do is I get them in the middle of Snowflake, Arizona. Yep. And then every now and then, like out of the blue for$30, I'll get a Phoenix lead, right? Yep, it's all about capitalizing. So Randy, Randy's a TU member. Listen, uh, you don't have to call him seven times, but you do need to be hammering.

SPEAKER_02: 1:41:50

Will you read the question for everybody listening later?

SPEAKER_01: 1:41:52

Yeah, RJ, true or false. If you ain't called your lead seven times in the same day, you ain't called him once. I listen, I'm I'm hard on our members over at TU because I've learned something, Brent, that this industry has one of the worst work ethics ever. Yeah. I mean, if people just they think if they dial the phone 20, 30 times a day that they're working hard. And it's just like you're just not, you're not gonna compete with the people that are actually working hard. There's just a lot of people that have W-2s, other things going on in the life, the solopreneurs, and then also like you just talked about, Brent, the weight that comes crashing down on some people because they felt like what they were doing was the right thing. They hired the VA cold callers, they're getting hammered with 10 to 15 leads a day. The CRM's chock full of junk, and it's like it's like your old Gmail that you didn't check for 10 years. You know, it's like, how are you ever gonna clean it out? You can't, you're just lost and you're staring at the abyss. And so, yes, we are very big on hammer your leads and get to a conclusion. Is it a contract or is it dead? Follow-up is for failures. Follow-up means you did not get to a conclusion. The only reason why it should be a follow-up is because for a viable reason, they cannot sign a contract today. That's right, right? An attorney has to sign off on the probate, or I have to get this other person to sign, I have to get this other approval, not because we went into the therapist zone or the friend zone and we just didn't close. And I'll call you back next week. Hopefully, you're in a better place. That's where we end up in never never land.

SPEAKER_02: 1:43:44

Yeah, Randy, we call them 21 times. We reach out 21 times in the first 24 hours. But yeah, but the the truth is because we respond, so as soon as a lead comes in, they have 30 seconds to get on that lead. 30 seconds. We saw that after 30 seconds, the drop-off is incredible. After a minute, it's it's it's rough. Five minutes, forget about it. An hour, I mean, you just wasted all your all your money, right? You know what I mean? We we respond within 30 seconds. The way that we see it is it's it's almost like they're calling in and you answer live. When we get that form filled out and it hits our it texts all of us, it texts everybody on the team, and somebody's gonna jump on that within instantly. So if somebody's on an appointment, somebody's jumping on it. And um it's it's it's that critical. And usually you don't have to, if you get to a lead fast enough, you're not calling them seven times, Randy. You're calling them once and you get them on the phone because they're still on the website that they just filled out, hopefully. Uh PPL, PPL, or PPC, any of those, any inbound where they fill out a form online and you get that, you have to respond instantly. And if you've got a job that you can't, if you've got responsibilities, if you can't, if you're coaching football or soccer or hockey or whatever else, and you can't get it, turn off the the leads for those times. You could do it in property leads, you can turn on and off the leads based on based on your schedule. I don't know if that screws up, you would know better than I would. Um, RJ, but um, you you have to be available. It it is sacred that you get after those for your business.

SPEAKER_01: 1:45:18

You can absolutely on property leads, go in, pause your account, and when you're ready to receive your leads, hit play, and it will instantly come in. And then you can pause and call that lead, just like anything else. Yeah, and it's it's rapid fire too. I mean, it's like you hit play. I mean, that leads coming.

SPEAKER_02: 1:45:39

Uh, how do you get hot leads that you are talking about, Brent? Um, yeah, the I mean, the hottest leads that we've we've seen, the highest intents are gonna come from Google, the first page of Google. I mean, it's not even close, in in our experience, and in my experience. I mean, it doesn't mean they're the biggest leads, doesn't mean that they're um the ugliest houses always. You you get or lead you still get retail leads in that, and so you don't get refunds uh if you're running your own Google or have somebody running your own Google like you can with the flexibility of PPL. But you can you you can you can scale really really well with Google if you're staying in a specific area or if you're going nationwide, you can you could put together a really great plan for that. But when people are searching for you, they're the best leads, yes. Our average, and and you're completely right, RJ. Um follow-up is for loses. We're either on the appointment that same day or the next day. People are making a decision with the with uh pay-per-click leads within 48 hours. Yep, and the closing and and they close within 28 days. That's our average. And so with the other with the other form of leads, we saw that with direct mail, it was closer to 75 days to 90 days with um text messaging and cold calling, it was 90 to 120 days, and so um nothing was like PPC. I mean, nothing the best leads of all time are going to be referrals, we're just people just dropping them in your lap, and you and that's not a lead though, you know what I'm saying?

SPEAKER_01: 1:47:07

That's not lead generation, that's just you doing business. But you know, when we the other thing, Mike, is remove the thought process that there's a different type of lead out there, right? I think you need to get to a point where you're treating a lead as it is what it is. Someone raised their hand and said that they want to sell their house, and then from there you dictate the process. Like, for example, Brent's talking about hey, the average time to close on a PPC lead is 28 days. That's a great metric, except a metric is only as good as the reality of the seller's situation, yeah. Right, seller might need 90 days because they're 85 years old and they need that long to pack up their stuff. It might be a probate lead that needs more time and they just happen to click PPC. So it's like there's nothing that is firm that it's like this is the best way to do it. We are in the best time frame that we've ever been in in this industry where with PPL, with the PBC agencies like Brent has, you can just swipe your card, and now leads come to you, and now you can solely focus on doing your job as a wholesaler. So you ask later on is it property leads? Is it is it TTP? Is it this or is it that? It's whatever you're willing to consistently do day in and day out. That's where you get the best hot leads. Because the reality of it is the leads are only as good as what you do with them after they come in.

SPEAKER_02: 1:48:48

And once you have this, listen, guys, once you have the skills or your team has the skills and you're scaling, the beautiful thing about the high-intent fast sales cycle leads is you you you can recycle your marketing budget more. So I the same amount of money that I spend, I can spend that 10 to 12 times a month as opposed to direct mail. I can only do that four times in a year, you know, 10 to time to 10 to 12 times a year. I could spend that that uh that budget with the slower marketing budget, it just takes you longer to get your money back to recycle that back into your business. So at some point when you are scaling, you have to understand how fast am I getting what is this, what is the cash conversion cycle for my money? And if I can shorten that, then I can get more reps per year. That means I can scale for uh scale faster and I can get less leads but more deals. Yeah, it's incredible, it's absolutely incredible. Um, if while under contract, if you haven't had a buyer walk through yet, what do you say to the seller, RJ?

SPEAKER_01: 1:49:52

I haven't had a buyer want the property yet. I think we have an issue. It could be price. If you haven't had a walk through yet on dispositions, and you're truly doing dispositions correctly, then you you probably need to reach out to a known buyer and be like, why are you not interested? What am I missing? Because you should understand the numbers. Like, I'm seeing that this is gonna net you as an end buyer 40,000,$50,000. Why would you not be interested in this? You need to get that feedback from your end buyers, and that's what you take back to your seller. Now, if you weren't transparent with your seller, which I'm assuming, I'm assuming because it's the majority that you weren't, so you're really concerned about how do I update my seller on what's going on? You probably need to come clean. Like, this is where you got to come clean and say, Listen, I I have made a decision that I'm going to wholesale this property and I'm going to do everything in my power to find you an end buyer that can come along and I'm going to sign my equitable interest in this. But it's hard. And then the other thing is, if you have not generated this, I would put this in front of someone that is a JV dispo powerhouse in that market and ask them one, will you work this? And if they won't, why? Because they'll probably give you the feedback that your end buyers are not giving you.

SPEAKER_02: 1:51:26

That's right. And listen, uh Gia GN Do GN Go. Um Jungdo. Jungo. Jungdo. Um, there's only one reason your deal's not selling. There's only one reason. Yeah, it's it's the price. So either you're being too greedy or you locked it up too high. And so you need to have a conversation. And and we go in that this is the way that we go in on every single deal. We go in as the buyer because I I don't determine my exit strategy until I understand what what the terms and the price that that my guys lock up a deal. Okay. So we go in as the cash buyer, and I say, okay, we we set a price as to this is the price that we will buy it at. That's that that is what we do every single time. Now, if the seller wants more than that, then we'll go into a section second option and we'll just tell them point blank, listen, there's no way that we're gonna close this. There's no way that this price makes sense to us. We're gonna put this, but I we have an investor network that we work with, they might buy it from us, right? Be it to be able to put it out there and work with them. We need a commitment for you. We need to put a put the property under contract, but we have the right to market it to this group. I uh it's gonna be 50-50. I don't know if we can if if anybody will buy it. If they will, great, we'll move forward and let you know. Uh and and things will go smooth. If not, then um I'll I'll let you know. We'll do it within the 10-day inspection period. I'll let you know if if anybody out there or what the prices are that they would buy it at. Does that make sense? And it's like uh yes or no. I mean, if they if they're too high on the price, we're just flat out saying, okay, we're gonna just put this straight to our investor base because there's a lot of deals, guys. And I'll tell you this that we close, and the reason we close on them is not to do flips, it's for a couple different strategies. One, to either just put it right on the market because we can clean it up and we feel like we can it's not too damaged, or two, I don't want anybody else to know that we locked this up. I don't because there was 15 people bidding on this, we won the bid, somebody's gonna get mad, somebody's gonna get pissed off at us, somebody's gonna try to sour the deal with the seller. I don't want to deal with it. I want to close on the deal and get it done. Maybe the seller wants to get it done in three days, seven days, and we're just gonna close on it and move, and and and the numbers make sense, we're gonna close on that. So um, there's different strategies based on you know what what the the actual deal looks like. Um, but if it's too high, if we know, hey, listen, we're not even in the ballpark to to close in on this thing, we tell them, we tell them straight up. We tell them what we we tell them in and remember, guys, if anybody's wondering, what uh um how how do I say this to the owner? It's in the purchase agreement. Your whole relationship. If RJ and I do a deal, any deal, any business deal, there's gonna be paperwork, there's gonna be a contract, and that's gonna outline the relationship that we have. Guys, look at operating agreements with businesses, look at the assignment agreements, look at your purchase agreements. The purchase agreement is the end all be all. That's the thing that dictates what this relationship is. If you're not disclosing what you're gonna do in the in the uh purchase agreement, they are going to get mad, and then you're gonna get a lawsuit. So just make sure that what you're saying is backed up by what's written down. That's what RJ's saying. That's why there needs to be more transparency in the business, or they're just I don't even think it's that, RJ. I don't think that people are like knowingly misleading. I think people don't have the confidence going and saying, Hey, this is what I do to make money.

SPEAKER_01: 1:55:16

Well, yeah, because the the industry, at least for the past decade that I've been in it, has been saying, tell them that you're gonna have contractors want a house and tell them that you are the end buyer and partners, yeah, partners, and it's it's everything but the truth, right? I mean, saying the words wholesale is taboo. Saying Brent, I think the best solution for you would be that we do innovation, yeah. No, we we need to say, Brent, I would like to protect your equity with my white gloves. Yep, it's like, why? Why did we make this up? Why didn't we just say what they could actually Google, which is wholesale? Like, look that up. Yep, the real thing, it's been around forever. So, yeah, yeah. I mean, it's just it is where we are. We're gonna fix it. I love it.

SPEAKER_02: 1:56:11

Do you do uh real quick because I've been obsessed with this lately? Um uh business, what is it? Do you use do you use uh business uh credit cards? Yes, and what do you use it for?

SPEAKER_01: 1:56:28

Airline points. Yep. Are you are you talking about on on the reward or like yeah? No, well, anything that basically we can use instead of using the cash, why not use it, get whatever points you can and reward yourself.

SPEAKER_02: 1:56:45

That's it. I've got so my my disposition manager Jeremy's always been gangster at this, and um I just got over 200,000 in in business credit at zero percent for a year, right? That's how they start you off, and then you roll into the into the uh the points. I I'll tell you this a couple different things. One, when you use it, I mean you got to be really smart. You can't be an idiot, you gotta be over 720 credit score to be able to get it, you know what I mean? But there's there's some workarounds that you can do. Um, and and uh if you go to workingcapitalpros.com, uh you'll get direct with Jeremy. Absolutely incredible. And um, but there I put together a plan. I haven't paid for travel. I go first class every time. I haven't paid for travel or accommodations in five years because of credit card points.

SPEAKER_01: 1:57:35

Love it.

SPEAKER_02: 1:57:35

I haven't. I mean, all of the all of the different lounges at the airports, all those things, but I just got over 200,000 in zero percent. And you talk about the 70-30. The 70% of your income comes in your top six months. You know, what do you do to balance it out and how do you make sure that you can continue to do everything? Um, I think it's really smart if you have a plan for business credit, building business credit. And so um, yeah, I was just curious to see what you used it for because all of the successful people I know they don't pay for travel, they don't pay for accommodations tomorrow at 5 30 p.m.

SPEAKER_01: 1:58:10

I'm going to the beautiful, glorious Minneapolis, Minnesota with negative 10 degree temperatures, so I could watch my son playing the lumberjack cup. Yeah, same thing. Free American Airlines, first class. I mean, we I don't pay for that.

SPEAKER_02: 1:58:28

No, I mean it's that's I took I took my entire team$54,000 trip to Mexico, all inclusive, all first class, all paid for by the business rewards points. Yep, it's insane, it's absolutely insane. So, guys, check that out workingcappros.com. RJ.

SPEAKER_01: 1:58:48

Can I can I can I hammer one more just because I feel like the theme of the show? Yep, Julissa Nunez comes in with what do you tell the sellers at the appointment on how you're going to make your profit? I think that's my main thing. Julissa, first of all, why would you have to tell the seller how you're going to make profit? Like, I don't sit there and say, Brent, I am going to make profit off of this. It's Brent, what I could do for you is I could agree that we could give you$70,000 for your house, and then I'm going to go find an actual end buyer investor, and what it's called is wholesaling. And I'm going to assign my equitable interest over to that end buyer, and then that's how I make my money. That's it. I don't care how much it is, they care about how much are they getting. And so that's how you explain it to them. It shouldn't get nitty gritty in the weeds. If you have questions about how to do that, go watch my live with Jerry Norton yesterday. Jerry did it fantastically. Because he does things so if you've ever met him, he's one of the most genuine human beings you'll ever meet in your lifetime. He's just like, Yeah, I'm just gonna go find an M buyer and make a few bucks and uh we'll move on. Yep. And they never question it. If you feel if you come across and you feel like you're saying something that you shouldn't be saying, they're gonna sense that. But when you just say it like it's not that big of a deal, they'll not think it's a big deal.

SPEAKER_02: 2:00:30

And by the way, they know you're gonna make a profit, and if they don't want you to make a profit, they're not gonna work with you, right? They're they're not gonna work with invest, they will literally tell you straight up, I don't work, I don't want to work with an investor, I don't want to be low balled, or I don't want I don't want them making all the money, or I don't want whatever, they're not gonna work with you. They understand that you are a buyer. It's you really have to consider you uh, Ulysses. When you go, if you've ever turned in a car and when you got a new car, and you know you're not getting full uh Kelly Blue Book value for this, okay? But why do you do it because of speed and convenience? Now, could you go out and put brand new tires on it, clean up the engine, get the interior smelling great, detail it, make it look great, post it on the market, have people, strangers, come over, test drive the car, make sure that they don't steal it, come back, negotiate with you, go back and forth and what you're gonna sell it for, and all those things and make more money? 100 100, but why don't you? Why don't you? Why do you just turn in your car when you get a new car? Oh, yeah, because you don't want to you have a life, right? You have you have other things that are more important in your life. Now, are those are there people that are gonna always sell their own car because they love doing that and they want to make sure that they get everything out of it? Yes, those people will never do business with you. That's the same thing with people in houses, yes. But the the people that we are working with are the people that just like us will turn in their car for speed and convenience, and they don't want to deal with all the drama of trying to sell it themselves, they just want to go. I just made the decision a day, I don't have to worry about it. Go make whatever you want. Do you think I care what that dealership makes on my car when I turn it into them and I go into my night move on with my life? Never in my life have I like tried to do the research on what that car sold for, right? Never, never. So, I mean, just understand people do that with houses.

SPEAKER_01: 2:02:37

It is so funny that you said that. I was like, I've never even contemplated selling my car before just trading it in. Never, never even entered my mind. It was like, no, I'm gonna driving it to the dealership, and whatever they give me is what I'm accepting, and I'm driving away with my new car.

SPEAKER_02: 2:02:54

I'm gonna I'm gonna get my change out of it, I'm gonna get my hoodie that's in the back and the kids, you know, nonsense, and I'm gonna leave that thing, yeah. I'm just telling you guys, that's that that's the mentality that that these property owners have. And so if you're if you're getting in there and you're trying to, you know, finesse this thing in any way, uh, that's just not a long-term business strategy. Just remember this, and especially in real estate, everything time zero is zero. So if you do the wrong things, it'll always catch up. It'll always catch up, and you're gonna either pay uh, you know, on some on the next deal, you're gonna pay attorneys, you're gonna pay somebody on a loss, or you're gonna pay uh you're gonna get a bad reputation and lose out on deals, you're gonna get bad reviews, you're gonna get all those things. So everything time zero is zero. Go do good business with a big heart and go find people that you can help out that want to trade in their house like they want to trade in a car. And I'm telling you, you will make an absolute fortune. RJ, how can people uh find out about um titanium?

SPEAKER_01: 2:03:55

One, go subscribe to my YouTube channel, RJ 3rd. Literally every single day I release a video. We're now at like 710 straight days. Awesome. Thank you for making today's video for me easy. I got you, bro. I knew it. Um, and then to find out more about titanium university, titanium you, the letter U.com. Um, man, I'm I'm just I'm so excited for where we are as an industry, though, Brent. As much as we talked about some of the the negatives today and how we need to overcome it, um, I'm seeing us head in a very positive direction. Most people don't understand this. The hard parts about wholesaling five to ten years ago was lead generation. Yep, lead generation is now no longer a problem. Now people fear regulations, guys. Regulations, all they're asking you to do is be transparent and tell the truth. That's it. So that's it. Lead generation has gotten super easy. Yep, we're weeding out the bad by telling them you can't do the crap that they've been trying to do for the past decade because it's gonna go away. And so now it's going to be commonplace to just say, I'm a wholesaler, here's how I help you. I just want you guys to understand where we're headed, in my opinion. Brent, I'd love for you to give final feedback on this. Yep. The regulations are going to make us the realtors of the bad houses. Yep.

SPEAKER_02: 2:05:36

Yeah, listen, guys. Batch did the study, they spent uh, I don't know, 80 grand on it. There was 90,000 people that that that uh this study came out, 90,000 wholesalers in 2021. You know where it's at now, RJ? 12, 12,000, 12,000, 12,000. Are there still the same amount of ugly houses?

SPEAKER_01: 2:05:59

Yes, actually, there's more. There's more, they're more, dude. People can't afford stuff, yep. Right, they can't afford eggs, gas, their houses. It's it's becoming more like people are financially struggling. There's less people in our industry, and guess what? There's only going to be less and less, and I I still get it, Brent. They're saying I thought wholesaling was saturated. I'm like, brother, you have no idea what it was like in 2021. No idea. Awesome. RJ, you're the best. Love it, man.

SPEAKER_02: 2:06:31

Appreciate you having on here. All right, bud. That's our show today, guys. Remember, this channel is all about getting to consistent six figure a month in your business. Make sure that you're subscribed. If you're not subscribed, and remember this keep your house clean, protect your health, and increase your value to the world. You'll live a fantastic life, in my opinion. I'll see you next week. Love you guys. Bye.