Why Most Wholesalers Are Stuck

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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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Chapters

• 0:00 Why Wholesalers Get Stuck
• 2:55 Part-Time Effort, Part-Time Results
• 6:01 Consumption Isn’t Education
• 10:12 Reps, Feedback, And Live Calls
• 14:02 Building Real Skill Sets
• 18:13 Comping, Underwriting, And Buyer Logic
• 22:06 Expecting Instant Wins
• 25:03 Strategy Chasing vs Mastery
• 28:03 Treat It Like A Real Business

Transcript

SPEAKER_00: 0:00

Why are wholesalers stuck? Now, the reason why we're talking about this topic is because one, I've had the honor of being able to coach a thousand plus different wholesalers over the past five years of us coaching. I've had this YouTube channel for over seven, eight years at this point, and I've seen how newer wholesalers they come in and there's this expectation that there's going to be these life-changing results, yet they don't necessarily put in the necessary work to achieve those life-changing results. And then they end up in this roller coaster and this carousel of just changing and new strategies and new lead generation and new scripts. And there's always this new shiny object that they're chasing, but yet the results don't change. And then eventually and inevitably, they get frustrated and they quit and they give up on their dreams of being a real estate investor, wholesaler, entrepreneur, whatever it is. And one of the things that I want to talk about before we get into like the actual uh points that I want to make in regards to why I believe new wholesalers get stuck is that you know being an entrepreneur in and of itself is difficult. But when you are trying to create a business from nothing and you're doing it part-time, which a lot of wholesalers do that. And quite frankly, just even calling them a wholesaler is is an unfair term to those of us that do this full-time because there's so many people out there that do it part-time that it's like you don't even give it an opportunity. The the effort does not equal the reward that could come to those that dedicate themselves to developing skill sets and educating themselves through all the different facets that it takes to become a wholesaler, whether that's lead generation, how to close and taught sellers, comic and underwriting, transaction coordination, dispositions. It doesn't matter, they don't dedicate themselves to that, and so then they end up quitting. But it's like you never actually were a full-time wholesaler, and that's one of the things that I've seen time and time again, because it is such a low barrier to entry position that that's why people say, I'm gonna try wholesaling. And and it, yeah, maybe you do try it, but if it's not instantaneous results, you look at it and say, It must have been wholesaling, not necessarily looking internally and saying it must have been me and the lack of skill sets and training and education that I didn't give myself. So that being said, let's get into the reasons why I believe most wholesalers are stuck. Starting off with they confuse education with consumption, and and this is coming from someone that that literally pumps out a long form video every single day. And for some of you, maybe you've watched hundreds of those, some of you maybe even you know a thousand plus of my videos, and that consumption is fantastic, but watching does not necessarily mean that you're learning. There has to be reps, and there has to be that implementation of what I say and what I do on this YouTube channel, otherwise, you're just consuming and you're not ever actually educating yourself, right? Binge watching and listening to podcasts and watching me talk to sellers is not the same as you picking the phone up and getting on the phone with with sellers yourself, and so we see that where in reality, do we think that the amount of seller calls and dials are equal to the amount of views that we get on YouTube? I do not believe so, and I know this because we've done challenges inside of Titanium University, I've had one-on-ones with people, and when it's how many actual reps are you putting in on a daily basis, it is not in correlation to pleasurable results. I mean, it's like you're just not putting in the work, you're not you're not actually picking the phone up and calling sellers enough. You'd much rather sit here and say, Let me watch one more video, let me want listen to one more podcast about how to do this instead of realizing that the best training that you could ever get is by actually doing the work itself, and so there's no implementation, there's no repetition, and also there's no feedback, right? And this is huge, and this is one of the things like this morning, me and Jerry Norton for two hours were on the titanium university implementation call, and we were allowing the tu members to call sellers live, and then we were giving live feedback to these these closers, and on on each one, it's like that's instantaneous feedback based off of that rep that you just put in. But how consistent is that for people inside this industry? To be honest with you, I don't think that we have enough opportunities for newer wholesalers out there to get that instantaneous feedback on how could they have improved while on the phone with sellers, and that's what leads to this endless result of I'm needing to watch videos, I'm needing to listen to the podcast, I'm needing to watch RJ talk to a seller instead of yourself. And so I thought Jerry gave fantastic feedback to Danny this morning when he said, you know, it uh I take that back. Maybe it wasn't Danny, maybe it was Scott, one of the guys that that was on the phone this morning, he said, Hey, record yourself, watch yourself, go back and listen to your tonality, your body language, the questions that you were asking, because that is you giving yourself critical feedback, and it's necessary in order for you to grow and adapt to the changes that are necessary. Because at the end of the day, I'm sure there's plenty of people out there that feel like they know the concepts, but they're not executing these concepts, and that's where that feedback is important, and also where at some point in time that education has to become real life implementation. All right, the next thing is you don't actually build skill sets, and and this is an area where I I've been hammering this for a while, where people listen to the closer's formula and they go, Well, I I totally am using the closer's formula, I'm getting it down, you know. I know how to sit there and ask the seller, are you still looking to sell that property? Tell me, you know, how much are you looking to get for? Tell me a little bit about what you got going on, and then they know how to hit the kill shot at the end. I I get it, but that's not the skill set that is necessary to actually close deals, and that's just on how to talk to sellers. We're not even talking about comping and underwriting and actually how to have a different mindset from what's the difference between analyzing a deal from after repair value to current market value, looking at the different amount of rehabs that are necessary, and then in return, what is the necessary profit and where an in buyer would actually buy these properties? Like these are skills that have to be built up, and then now that's just to get a property under contract. How do you overcome all the necessary things when it comes to transnational coordination and understanding how to interpret a contract and amendments and assignments of contracts and all these different things, and then we get the dispositions and how to build true relationships with these in buyers? These are skill sets that are needed, and so I see wholesalers out there, and they don't really have the skills across the board. And then when we dive into each individual one of those, it's lack of tonality control, lack of emotional intelligence. When do we actually try to make it an emotional conversation in comparison to a logical conversation? Quinn inside of TU asked a great question about that today, and these are the types of education that you need, but now he needs to take that feedback, go implement it on live seller calls, and actually find out for himself the difference between when an emotional conversation is necessary in comparison to when a logical conversation is necessary, and that is your ability to lead a conversation. Do you have that skill set, or are you purely relying on a script instead of your own competence? This is where people really need to understand this. And like yesterday we onboarded a new class of TU members, and of course, when we when we get done onboarding the new classes, uh, we we open it up for QA. And every single time that we do that, people inevitably want to talk about their struggles when it comes to comping and underwriting. Every single time that that comes up, I always say, listen, this is a a long-term growth that is needed here because your ability to be able to look at a deal and be able to build the bridge to understand why an in buyer would want to purchase this property and why it makes sense for them as a business operator in comparison to all of the competition that exists. Because we, as wholesalers, do not put ourselves in the position of what an in buyer is looking at in regards to the massive amount of inventory that is available to them. And so, can you build a bridge and explain to that in buyer why your deal is the one that they should pull the trigger on in comparison to every other deal that they could go look at that day? That is when you start taking your education and building a skill set and truly understanding the next level of what you're trying to accomplish as a wholesaler. And again, this is where part-time efforts wanting full-time results don't work out, and that's my next point. People are saying that they're putting in this massive amount of effort by working anywhere between three to four to five hours a day. Here's the facts at Pizza Hut, I'll just go all the way back to my Pizza Hut days. When we had someone come to us and say, I want to work five, four to five hour shifts, they were considered part-time. I don't know what other business I've only had a handful of jobs, right? I've run my business and I ran a Pizza Hut. That's what I've done. I was a cart boy for six months, okay? But outside of that, those are that's those are my jobs that I've had. That is considered part-time. Yet people in the wholesaling industry want to consider that busting their ass and doing everything that they possibly can and expecting full-time results with part-time effort, and it's just not a reality, and it's never going to be the case, partially because there's competition out there like me, who's got a team of people that are actually putting in full-time effort, full-time follow-up, actually, not calling sporadically and when I'm available, but consistently every single day. The follow-up is inconsistent with part-time results. If you don't have a set schedule, that impacts you because you are human and by nature you are going to slack at times when you should be on the phones and working inside of your business. You treat wholesaling like a side hustle, and then you get side hustle results. I am positive that there is someone right now watching this video saying he's talking about me. I am treating wholesaling like a side hustle and expecting full-time results. Now, why? Well, that's partially on us as an industry because we have created YouTube channels and podcasts that kind of said it is completely okay to work a full-time W-2 and part-time hustle and wholesaling, and you could eventually be successful. That's true, but you shouldn't expect the full-time results while you're giving the part-time effort. Those full-time results only come when you are dedicated to this, dedicated to your craft, and actually having consistent dials, consistent follow-up, a set schedule, and not treating it like it is a side hustle. And then the final thing about it is what people want to, especially when they're part-time, they want to blame it on everything else. It must be the leads, the markets, uh, what's going on in the politics and in our economy, it's everything else, except for the fact that you are not putting in the effort that is needed to succeed. And then when we look around and we start talking to other people that are succeeding, and we see the amount of effort that they're giving, there's a direct correlation. So you need to ask yourself and be honest are you consistent? Are you actually, or are you are you actually putting in the the full-time effort? Or are you just hopeful that with the part-time effort that you're putting in, at some point in time you're going to see full-time results? Now, the other part about this industry is, and this has been around since forever since I've been here, okay? Wholesalers expect instant results. Instant. Like, I should be able to not know how to talk to the seller, not the comp and underwrite, no idea about transaction coordination, and never talk to an end buyer, but I'm gonna go buy leads, and I how many how many leads do I need to buy to be able to close a deal? Now I understand. I swiped my mom's credit card for$65,000 back in 2014, and I had some of the same questions. How long is this gonna take me to be able to get results? Why? Because I was taking on a massive amount of debt and I was worried, of course, we all are. But people come into this industry and they expect that they are going to be able to instantly be able to get results. And a good example of this is I I talked about this last week, but talking to the boys from Israel, and and they come from the world of the stock market, and I asked them, how were your first six months day trading in the stock market? Oh man, it was it was rough, you know. We we we didn't do good. And I'm like, and so why do you think that inside of the wholesaling industry it should be any different? This is my question to the entire industry. Why do we believe that it's not going to take time? It's not gonna take that dedication, it's not gonna take us building up our craft before we get instant results. The next thing is wholesalers like to chase strategies instead of mastery, right? It's gotta be because I don't understand sub two or seller finance, or I'm not doing novations. I hear all these people out here saying that in order to be a nationwide virtual wholesaler, you have to be doing novations. So I've got to go learn that. RJ says to do PPL, Nick Perry says to do PPC, the high say that I should be doing direct mail and 25 other different forms of lead generation. So I gotta go learn all this, and so it's a new strategy has to be introduced, but every time that you introduce a new strategy to your wholesaling business, you are literally resetting back to zero because you don't understand that strategy, you have not introduced it to your business, and it's a whole brand new skill set and everything that comes along that now you have to learn and figure out how to implement, and so it's a reset to zero, and that's even going to lead generation, whether or not you're going from cold calling, from texting, PPO, whatever it is, you're resetting your business, and you're never mastering any one of the strategies themselves, and so what that causes is confusion. What is working, what isn't working, where are the actual losses coming from or the lack of results coming from? Is it because of lead generation? Is it because we don't know how to talk to sellers? Is it because we don't know how to do dispositions? Anthony asked a great question today, and one of his was at what point in time did we understand when there was going to be an inflection point inside of our business? And my response to that, and I want to share this with you guys, is that it was when I could look at an issue inside of my wholesaling operation and know how to solve that issue, what was causing it, instead of guessing. And what actually led to this was narrowing down all of the things that we do inside of our wholesaling business to a single strategy and then focusing on that day in and day out, it's extremely boring. Some days, yes, I want to chase unicorns, I want to go do something else, I want to introduce all of the strategies because they're available to us. That's part of being an entrepreneur, it's part of being inside of real estate. But what I do love is the boring, consistent results instead of chasing and resetting back to zero because I want to chase a new strategy. The next thing is most wholesalers do not treat wholesaling as a real business, and by real business, I mean what is it? There's there's a lot of chaos in the majority of wholesaling businesses. The CRM either one is constantly being changed or it's not kept up. There's no discipline inside the CRM, there's not timestamp notes, the statuses are a mess. Then you know, leads get moved to statuses and they just rot there and die instead of being touched regularly. KPIs are not tracked, no, no idea of where you're spending your money or where you're actually earning money from your investments, and there's no systems and there's no accountability. And this is one of the things that entrepreneurs in general struggle with, is because, quite frankly, probably one of the reasons why you wanted to be an entrepreneur is because you were tired of someone else holding you accountable, and so now you have to be self-accountable, you're in charge of that accountability solely for your operation, and it's hard, it's difficult, it's difficult to make sure that you are consistent as a tree every single day and showing up and doing what's necessary. I just made a video last week about I don't want to make this video today, I don't want to do it, I don't want to do any of this stuff. That's human nature, but a real business shows up and performs. Think about it. Starbucks still opens, still makes drinks every single day, despite the fact that the majority of those people probably don't want to be there, don't want to be doing it. But then when it comes to our businesses, it's a whole different story because we have to be the ones accountable to ourselves, especially when we're new and we're all by ourselves, and you're a solopreneur. When you decide to not do the necessary actions, then your business is completely stagnant, and real businesses are never stagnant. The next part is they avoid hard conversations, hard conversations with yourself, hard conversations with sellers and buyers and title companies. It's it's just natural to want to avoid the awkward conversations. Going back to today's implementation call, one of the questions from Mateo was I am running into the objection with sellers that they want to take some time to think about my offer before signing the contract. How do I overcome that? And both Jerry and I gave him the feedback of listen, sometimes you have to have that hard conversation and maybe get to the no that's inevitable by being stern and having that difficult conversation. The fear of a seller pushing back, or maybe it's the fear of silence, the fear of asking a real question that you really need to know the answer to. What is it that you need to think about? I thought we were on the same page. This is what you've told me. This is why determining what the true seller's motivation is so vitally important during sellers' conversations. It's that fear of losing out on a deal that was never a deal in the first place. And it's the fear of a seller telling you the truth. They're gonna move on, they're not gonna sell you the house, they're gonna go hire a realtor. The reason why they need to talk to their spouse or their significant other or something like that is because they were never planning to go with you in the first place. And so avoiding those hard conversations, that's a real issue inside of our industry. The next part is majority of wholesalers do not follow up with their leads like the true professionals do. They want to insert drip campaigns and follow-ups and say that is what is going to convert for me. And what I'm here to tell you is I never want to have my future, my legacy contingent upon what a CRM can't and can't do for me. You sending out a blanket, spammy follow-up drip text is not you following up like a professional, it's you having a system do something that it was built to do for every other person in this industry. I mean, as of right now, since we've been on here, I've received five spam text messages. Five. Do you think I'm going to read those? No. As soon as I'm done with this, I've got all these notifications that I want to clear off my phone, and I'm just going to clear them off one by one. I'm not even going to read those spam text messages. If you are not willing to pick the phone up and call each and every one of your leads inside of your CRM every single day, then you are not following up like a professional. That's it. If it's just random check-ins, there's no reason for the follow-up, there's no expectation set as to when the follow-up's going to happen and why it's happening, then you're setting yourself up for that failure and that disappointment. But to be honest with you, I think the majority of new wholesalers are just not following up. And that probably goes back to that part-time effort. The next part is I see wholesalers wanting to outsource before they even understand what is happening inside of their business. We had this kid the other day, and he's from another country, and he wants to join Titanium University, and he said, you know, what I really want to do is I want to come in and I want to learn how to wholesale, and then I'm going to create AI bots to just run the business for me. I don't think you're a good fit. Are we going to eventually get to a point where AI bots can do everything for our businesses? I'm sure we will. Are we there yet? No. And quite frankly, who is in a position where they understand so much about each and every future wholesale transaction that they can outsource that to anybody? I mean, I think about just the time and effort that myself and Cassie still give to our wholesale operation, despite the fact that we have Danny Herman as our general manager. We have a team of experienced wholesalers that are doing acquisitions, dispositions, transaction coordination on each and every one of our deals. We are still heavily involved in that just because of the fluidity and the difference and uh just barriers that come up on each and every transaction. By nature, what we are dealing with is highly motivated sellers that have some very unique situations. And so, despite the fact that we have been doing this for a decade, there are still things that come up on each and every transaction that might be new, that a virtual assistant or an AI bot is not going to know about. And so, this thought of wanting to outsource and hiring callers that could go out and close for you, despite the fact that you don't know how to close yourself, and then wanting to blame the virtual assistants or the AI bots and not knowing what good sounds like, and then wanting to outsource that. That is one of the craziest things that I see inside of our industry. And the final thing is wholesalers rely on hope instead of the standards that they have set inside of their business. There is no performance standards, there's no daily minimums, there's no tracking, there's no self-discipline, and there's no ownership. And this is where I see people fail time and time again. I've been doing this for X amount of time. I'm not getting the results that I want, but I understand I know how to talk to sellers, I know how to comp and underwrite, I know how to do all this. Why is it not working? And it comes back to where's the ownership on if it's not working, it must be something that you believe that you're doing well. You're not doing well, because otherwise you would be getting results. If that wasn't the case, no one in wholesaling would be getting results. Think about that for a second. If you're doing everything correctly, you should be getting results because otherwise, everyone else would not be getting results. And these are the things that I really, really see throughout the industry. So, just to give a recap here, real quick, let me pull up my notes again. Point number one, confusing education with consumption. Number two, not actually building skill sets. Number three, wanting full-time results with part-time effort. Number four, expecting instant results. Okay, number five, chasing strategies instead of mastery. Number six, you're not treating wholesaling like a real business. Number seven, they avoid the hard conversations. Number eight, not following up like true professionals. And number nine, they outsource before they understand what's going on inside their business. And the final one is relying on hope instead of standards. So those are the reasons why I believe most wholesalers are stuck.