Washington Wholesaling: High Fees, Hard Wins

Want to work directly with me to close more deals? Go Here: https://www.titaniumu.com
Want the Closer’s Formula sales process I’ve used to close 2,000+ deals (FREE) Go Here: https://www.kingclosersformula.com/close


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

_________________________________

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

_________________________________

RESOURCES FOR YOU:

If you want my team and I to walk you through how to build or scale your virtual wholesaling business from A to Z, click here to learn more about Titanium University: https://www.titaniumu.com

(FREE) If you want to learn how to close deals just like me, The King Closer, then download the free King Closer Formula PDF: https://www.kingclosersformula.com/close

(FREE) Click here to grab our Titanium fleet free PDF & training: Our battle tested strategies and tools that we actually use… and are proven to work: https://www.kingclosersformula.com/fleet

Grab the King Closer Blueprint: My Step by Step Sales Process for closing over 2,000 deals (Only $37): https://www.kingclosersformula.com/kcblueprint

Grab Titanium Profits: Our exact system we use to comp and underwrite deals in only 4 minutes. (Only $99) https://www.kingclosersformula.com/titaniumprofits

Transcript

Setting The Washington Context

SPEAKER_00 0:03

Welcome back to wholesaling around the world. Today we're going to be talking about the Evergreen State, Washington. Now, Washington comes in with a population rank of 13th with just south of 8 million people. And if you've been following this series, normally I rank the states for virtually wholesaling based off of the population rank. That's a direct correlation that we have made throughout this series. However, Washington State is one of those places that I'm going to disagree. I do not rank Washington State anywhere close to 13th overall for virtual wholesaling. Now, I personally believe that this is just my opinion that Washington is actually a better place for wholesaling than I believe it is. Okay. And that sounds funny. It's like, okay, so RJ, you think two different things. You think it's good, but it's actually you don't think it is. I think it's good for local wholesalers. I think people that are in the Seattle region probably do really well for themselves. And the reason why is because of the higher price points. And so you don't have to have the same amount of volume of deals that you would if you were in Michigan or Ohio. And it's just because each individual deal is going to have a higher assignment fee. And so for wholesaling, Washington State in general is probably a pretty good place. But for virtual wholesaling, there's a couple different factors there. One, we are going to be competing against those local wholesalers in a large metro area like the Seattle City. And so, because of that, that being like the major good part portion of the state to wholesale in, it's highly competitive, somewhat saturated, and it's a little bit more difficult on acquisitions. And so another common theme that I have throughout this is that yes, dispositions is important, right? We we don't like states like Louisiana and West Virginia, where dispositions is extremely difficult. But the most critical element for me is how difficult is acquisitions? Places like Texas, Ohio, Michigan, Indiana, Florida, I feel like acquisitions is easier than places like Nevada, California, Arizona, and Washington State. So because of that, I naturally rank them lower because my personality as a wholesaler and as an entrepreneur is I want that ease of access to what we are monetizing. And in our case, as a wholesaler, we are monetizing contracts. And so I want acquisitions to be easier, and I'm okay with dispositions being a little bit more difficult. So because of that, I rank Washington much closer to the high 20s, low 30s. Now, that is a drastic difference in comparison to its population rank and probably how most people feel about Washington state if they've ever wholesaled there. Now, there's a couple different reasons why I've already talked about the fact that I feel like the majority of deal flow happens in the Seattle region. I also feel like there's quite a bit of the state that is rural and there's not buyer activity. And then when you move out to the eastern portion of the state where Pullman and Spokane are, the price points are a little bit lower, less buyer activity out there. They're not bad markets by any means, just not necessarily what we would experience at a place, say like Texas, where some of our secondary and third markets are extremely uh high volume, a lot of action there, a lot of buyers, and we don't necessarily struggle as much on the dispositions. And then because of the amount of appreciation and the price point in in Washington State in general, it normally is difficult for us to get a deal bought deep enough. I compare my experience with Washington, it's kind of very similar to Arizona, where the price points have gone up so much. Almost every single motivated seller understands that their property is worth a significant amount more than what they purchased the property for, and they're looking to capture that despite whatever their motivation is. So these are my experiences in Washington State. And so, because of that, in general, I just it's not that I've look to avoid Washington, it's just that I don't get as excited. Like if I'm staring at a Florida lead or a Texas lead in comparison to a Washington state, I'm absolutely going to pick Texas and Florida over Washington State. Now, there are a couple of strong things going for Washington State. One, it is a title state, it's not an attorney state. I always prefer that. There's no real wholesaling regulations in Washington State, so that's a massive benefit, right? You just have to abide by the normal laws of we're not selling property, we are assigning our equitable interest in a contract. So, from that perspective, Washington State is actually pretty easy. One of the things that I have had to deal with uh previously with a couple of high assignment deals in Washington State, specifically when I got started and I was doing a lot more double closes than assignments, was dealing with the excise tax. And that actually significantly impacted the amount of profit that we were able to make uh because we had to pay for that. And so pay attention to the excise tax in Washington state. If you're not familiar with that, go do some research on it. Look how that can impact you negatively because that's not as common in other states, it's common in places like Washington and Hawaii. So just look in the excise tax, okay? That being said, I think the Seattle City itself and the surrounding region is a very strong market. And I believe that if you're able to get something under contract, it can be one of the best markets to have a property under contract because there are going to be plenty of buyers, and you are probably going to make a pretty significant assignment fee. So I've always said anything west of Texas pretty much fits this profile. More difficult on acquisitions, a lot easier on dispositions, and a higher average assignment fee. And I feel like Washington State fits that to a T. So if you go into Washington State with the mindset of wanting to run high volume, I think you're going to struggle. But if you're looking to just have less deals and a higher assignment fee, Washington State could actually absolutely be a killer market. For virtual wholesaling overall, if you're new, this is definitely not a market that I would want you working in. Now, if you're going all nationwide, then yeah, you're going to take your lumps there, but you could also have an absolute killer deal. But if you're specifically picking markets to buy leads in, I would avoid Washington State early on. You're going to struggle with the local wholesalers there, the amount of competition, and how difficult it can be to acquire deals there. But if you do, this boat will be easy. So that's why I take up Washington State. My question to you guys, those of you that are doing deals in the Evergreen State, let me know. Do you agree? Do you disagree? Let me know in the comments. Regardless, show me some love. Like today's video, and we'll see you guys tomorrow.