The Titanium Vault hosted by RJ Bates III
RJ Bates III, affectionately referred to as the Viking Wizard by his students, started his real estate investing career in 2014 after attending a real estate education program that put him $65,000 in debt. RJ contracted his first deal he found on the MLS and wholesaled it for a $7,500 assignment fee. That was the end of his former life and the beginning of his venture into becoming a real estate investor. Since that moment, RJ has become an influential figurehead in the real estate investing industry. He has successfully purchased and sold over 2,000 properties all across the USA including wholesale deals, rehabs, rentals, owner finances and short term rentals. One of his passions is being the host of The Titanium Vault Podcast where he interviews the top real estate investors. He has won back to back Closers Olympics earning him the reputation as the King Closer! Finally, RJ and Cassi DeHaas, his partner, have started their education platform called Titanium University.
The Titanium Vault hosted by RJ Bates III
Sins Of Wholesaling | Breaking JV Agreements
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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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RESOURCES FOR YOU:
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What's up, guys? RJ Bates the third here, and welcome back to The Sins of Wholesaling, the series where we expose the behaviors that are destroying this industry from the inside out. Not market shifts, not regulations, not competition, the decisions wholesalers make when nobody's watching. And today's sin breaking a joint venture agreement. What is a JV agreement? Well, let's start here because a lot of people clearly don't understand this. A JV agreement is not a suggestion, a placeholder, a we'll see what happens arrangement. A JV agreement is a promise. It's two operators saying, I trust you enough to put my reputation, my time, and my relationships in your hands. That's not paperwork, that's character. Now, how did JVs get broken? Breaking a JV almost never starts with evil intent. It starts with temptation. It sounds like I could make more money if I just cut them out. They didn't really do that much. I'll make it up on the next deal. They'll never find out. And the moment you say any of that, you already lost because now you're negotiating with your integrity. Now, what are some of the most common JV violations? Well, let's just go ahead and call them out. Violation number one going direct to the buyer. You JV'd for disposition, and then you decided to secretly shop the deal yourself. That's not hustle. That's wasting your JV partner's time, and it's straight up a lie to them. Violation number two, changing the spread after the fact. The deal closes, money hits, and suddenly the numbers don't look like what was agreed. Funny how that works. Now that the money is real, you want to change the spread? Absolutely not. Violation number three. Cutting someone out because they didn't really add any value. You don't get to decide that after the deal is done. Value was agreed to up front. Be a business operator of your word. Now, what breaking a JV really costs you? People only look at the extra money. They never look at the cost. First, you lose trust permanently. Word travels fast. And once you're known as that guy, well, you don't get a second chance. You burn future leverage. The best operators don't need you, they choose you. Break a JV, and you're never chosen again. Next, you isolate yourself. Eventually, nobody wants to partner with you. And now you're forced to do everything alone. That's not independence, that's punishment. Let's say the quiet part out loud, okay? People who break JV agreements usually do it because they're short-term thinkers, they value immediate money, ego, control over reputation, longevity, access. And in wholesaling, reputation is everything. One burn bridge can cost you millions over a career. How professionals handle JVs? Well, real operators, they don't play games, they define roles clearly, they put agreements in writing, they communicate constantly, they handle problems directly. If something changes, they pick up the phone, they don't get sneaky, they don't get cute, they act like adults. Now, JV breakers, they really struggle with something, and it's funny because they probably don't even realize the impact that this single decision makes. But they can't scale their business doing business this way. I mean, let me make this painfully clear. You cannot scale dishonor, you cannot build large teams, national brands, long-term partnerships when people don't trust you. Eventually, deals are going to dry up, referrals will be non-existent, opportunities disappear, and you'll swear it was bad luck, but it wasn't. Now you might be thinking to yourself, RJ, is this really an issue in the wholesaling industry? It is. The reason why I'm creating this series is because each and every one of these topics I've either witnessed through social media content or I've experienced in my own wholesaling operation. Now, breaking JV agreements, it is commonplace, especially with newer wholesalers. They don't understand that when they're signing that JV agreement, that they are making an agreement with that operator to handle their business. Now, each JV agreement has negotiable terms, and there's JV agreements out there that are non-exclusive where you could go shop the deal yourself. We personally here at Titanium Investments do not have those types of JB agreements. If you bring me your deal that you have under contract and you ask my team to dispo that deal, we have the exclusive rights to then go dispo it. Now, here's the reason why this is uh an important topic. As much as we expect you to trust us and dispo, we also are very cognizant of the importance of handling that contract with care and concern and making sure we get it out in front of each and every buyer and give you real feedback if we're not able to sell that deal. It is our obligation, but it is also your obligation to hold up your end of that JV agreement. Continued communication with the seller, not going out and trying to find your own buyer, not trying to renegotiate the spread after the deal has been assigned, and not ever trying to cut us out of that deal. And each one of those scenarios has actually played out. There's a good example of a gentleman reached out to someone on my team and asked that person to JV and to dispo it. Now, I have to say, my guy did not handle the paperwork correctly. It was someone that he knew and he said, I got you. And he went out and he sold the deal. And then afterwards, he said, Hey, deal got sold. Let's put a JV agreement. And that person then tried to renegotiate the spread. It's not right because now, like I said earlier in this video, word spreads. I don't want to do business with that person anymore. I don't want to sit there and renegotiate or have to worry about how you're going to handle your business in each and every transaction. So now that person no longer gets to do business with titanium investments. So don't be a JV deal breaker. Now, who is this episode for? Well, this episode isn't for the people who chase money over principles, people who justify shady behavior, people who think contracts replace character. This episode is for business operators, leaders, wholesalers who want real careers, and people that care about the future of this industry. So if this one hit close to home, good. That's where growth lives. This was The Sins of Wholesaling Episode 3 Breaking a JV Agreement. The next episode, well, you're gonna have to tune in next Monday and see what awful thing that goes on in the wholesaling industry, what we're gonna try to break down and get rid of. If you liked today's episode, let me know in the comments. Regardless, show me some love, like the video, and we'll see you guys tomorrow.