The Titanium Vault hosted by RJ Bates III

I Thought I'd Never Close A Deal In This Market...Until I Did [LIVE Seller Call Breakdown]

• RJ Bates III • Episode 773

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If you’re new to my channel my name is RJ Bates III. Myself and my partner Cassi DeHaas are the founders of Titanium Investments.

We are nationwide virtual wholesalers and on this channel we share EVERYTHING that we do inside our business. So if you’re looking to close more deals - at higher assignments - anywhere in the country… You’re in the right place.

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Over 10 years in the real estate investing business
Closed deals in all 50 states
​Owned rentals in 12 states
​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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Why Utah Was So Hard

SPEAKER_01

Welcome back to all stuff around the world. Today is the Utah Edition. And if you have followed me for any period of time, you know Utah was the final state for us to close the deal. It was the only state during the 2020 50-50-50 that I did not get a contract in. And I didn't end up getting a closed and funded deal in Utah until just a couple of years ago. It was a struggle.

Setting Up The Utah Case Study

SPEAKER_01

And so this series is all about me coming in and giving my takes, my feelings about virtually wholesaling in each and every state. So how do you think I feel about virtually wholesaling in Utah? You think I love it? Nah, I don't. I mean, listen, I have a love-hate relationship with Utah, okay? I hate it because it was so hard and it shouldn't have been. Those states would have made sense. Or maybe even one of the little baby states like Delaware or Rhode Island, or maybe the crazy ones, Alaska and Hawaii, but no, Utah. Of all the places. It ranks 30th in population. You know, I can see how somebody would say it could rank in the 30s. In regards to Virgoy Holstein, obviously, I feel like it's worse. I feel like it's way up there in the high 40s. I don't know. I just think people from Utah don't like it. That's how I've always felt. I feel like it's personally like just somehow my personality just doesn't blend well with the people from Utah. That being said, it's a gorgeous tape. Love the way it looks. So I don't really have a whole lot to share with you guys about virtually wholesale in Utah. So here's what I'm gonna do today. So don't leave, don't leave. I do have value for you, as you can see. There's a lot of minutes in this video. We're gonna rerun the case study that I did on our first closed and funded deal in Utah. And the reason why I want to run this one back is because we've gotten a lot of new subscribers. So maybe you haven't seen this. So it's gonna have the live seller call, it's gonna have a breakdown of the dispositions. The TC is gonna show you the HUD and how much money we made and break it all down. So stay in tune for that. Personally, how do I feel about Utah and wholesale? We don't run away from it, but we don't run towards it either. We get a lead, we run it just like anything else. I personally don't think if you're brand new to virtually wholesale and you should strive to go after Utah. But that being said, enjoy this case study of our first ever closing funded deal in Utah.

Lead Source And Motivation

SPEAKER_01

We are back with another full case study deal review, and today we're gonna be breaking down a deal that we closed in Duck Creek Village, Utah. It was our first ever deal that we successfully closed in the state of Utah, giving us a deal closed in all 50 states. So this was a monumental moment for us here at Titanium Investments. And what's hilarious about it is the population in Duck Creek Village, Utah is around 111 people. What are the chances that the first time we close the deal in the state of Utah, it would be in an unincorporated community in King County, Utah with 111 people? Uh dispo team probably wasn't too happy with me that it locked this deal up, but we're gonna show you from front to back everything that took place on this deal. So we've got the live seller call. We're gonna talk about what we did to actually be able to dispo this deal, and then also what we had to do in the transaction coordination side of things to make sure that we could close the deal, and then we'll also show you how much money that we made. So from front to back, a full case study and a deal review of this deal. Now, here's on the acquisition side of things, we always have to start with the lead generation. So, where did this deal come from? This one came from Lead Zolo. So, this is an inbound PBL lead that we got from Lead Zolo. And I'll be honest with you, I get excited because I see that we have an opportunity for us to close a deal in the state of Utah. You'll see that right at the beginning of the live seller call. I wanted to close this one, I had a good feeling because I could see the motivation, and I could also see that the property was physically distressed. These are always the two most important factors for me when I'm purchasing leads. Now, with lead Zolo, this actually just came to me in a bundle, and I could see it on the spreadsheet that I could see hey, they were motivated, they need to sell quickly, and then they are also a physically distressed property. Now, at the end of the conversation, after I talk to the seller and I find out all of her motivation and why she's wanting to sell the property, the key part of this, even though it's in a very remote location with a very small population, we had plenty of time. And that's what made me feel really good about being able to dispo this deal. Because normally when we're talking to a motivated seller, it's that they're on a short time frame. This seller was different. She was motivated to sell, but she also was giving us plenty of time. In fact, we had several months to be able to dispo this deal, and it did take us quite some time, but we'll go through that after you guys watch this live seller call of me closing my first ever deal in Utah. A Utah league.

Live Seller Call Begins

SPEAKER_03

Yes.

SPEAKER_01

Hello, this is RJ Bates. You had entered this on my website saying that you were interested in selling that property. Are you still looking to sell?

SPEAKER_04

Depending on the price, yeah.

SPEAKER_01

Awesome. What's the right price?

SPEAKER_04

I don't know. You tell me what you could offer.

SPEAKER_01

Well, I don't know much about the property, so we're gonna have to kind of go through it a little bit. Um, I I got some information about the internet, but tell me a little bit about what's going on with it.

SPEAKER_04

Well, it's not a house, it's it's a cabin. It's in a very highly desirable area, but it it obviously it's gonna need it's something that's gonna have to be flipped.

SPEAKER_06

Okay.

SPEAKER_04

So I if I wanted to take the time to do it, you know, and I and I did it, you're looking at fine $500,000. Given that it's on two half acres, you're gonna be looking at a full acre, and nobody's gonna have that right on that pine lot right now. But seeing that I'm not gonna I don't it it's too much for me to try to do.

SPEAKER_06

Gotcha.

SPEAKER_04

Um, I could sorry, I'm working totally.

SPEAKER_01

Uh so when you say it's gonna have to be flipped, what do you mean by that?

SPEAKER_04

Well, probably gonna have to put some work it too at the inside of it, some some places. Well, I think I took pictures. I I thought that maybe them would still like some of the drawing wall had to put up on the inside. It originally started to be built in 1975. My dad did some stuff to it and some stuff he didn't. I'm trying to haul all the crap out there that he took up there over all the years right now, and it's that's overwhelming, being that it's out in the middle of the forest, six months back on the dirt road. Everything I do there is is draining for me. Um, you know, you're gonna want to put you're gonna want to put uh a new deck on it, you're gonna want to put new paint on it, you're gonna want to put finish the interior of it. You're gonna want to make it something that somebody's gonna want. That's glamorous up there, not something that somebody built in 1975.

SPEAKER_01

Right. So when I pulled it up, I see that it's like just slightly over 1,100 square feet. What's the what's the bed and bath count on it?

SPEAKER_04

That two bedrooms downstairs with one bathroom. Upstairs is a great big loft. One side we could put two beds, you know, one sorry, one side there's not two beds. There's one bed upstairs on one side and one bed upstairs. So there's one two bedrooms, two beds upstairs, but not a bedroom. It's like a pretty big loft. Gotcha.

SPEAKER_01

And it's a with it being a locked cabin and it being kind of older, what's the condition of the exterior, like the the wood? Would it need any retreatment to it?

SPEAKER_04

It probably would. I'm gonna be honest, it probably would. It's probably it's it's a lot that I can. You know, I I started, I tried to put I put a new desk on one side before I had to put my dad in a facility, and there's HOAs up there, and they want stuff done, and I can't, you know, I started cleaning up the outside. Well, my dad had all crazy junky snowmobiles that didn't work, and I started giving that away for workers because if they all went off, they could take it for free, you know.

SPEAKER_03

Right.

SPEAKER_04

It's plumbed, it's got electricity, it's got a um septic tank. To my knowledge, there's three water tanks underneath at the cabin in the basement. Somebody could take those out and sell them, or you don't need them anymore. That was how we got a water crack in the room.

SPEAKER_01

So you put in ninety-eight North Marjay.

SPEAKER_04

Um 98. There's there's part of it, there's I don't know if it's just on ninety-eight or one hundred because there's two lots, ninety-eight Marjay and one hundred Mar J.

SPEAKER_02

Gotcha. Okay, let me punch in 100.

SPEAKER_04

There's two lots just over half a each lot.

SPEAKER_05

Gotcha.

SPEAKER_01

And so you think if it was completely fixed up because of the lot size and the location, it could go for like over five hundred.

SPEAKER_04

Well,

Property Condition And Scope

SPEAKER_04

if I if I if I let you have a lot, yeah.

SPEAKER_02

And you didn't have an asking price at all.

SPEAKER_04

No, I I what I think if somebody wants to offer people want to start asking around up there and see you know, see what they want to do. And there's people all over the place up there, but I don't I just don't think driving me into the ground. I I very sentimental to me that I can't do it. Can you all picture that? It's a lot. My dad built it in 1975. I just can't think too much for me.

SPEAKER_01

I understand. Um, unfortunately, I that's one of the tougher parts of my job is I have to kind of hear that's what the policy that is.

SPEAKER_04

It's gonna be a black and white thing if I start talking to people that don't even up there, then I'm gonna get emotionally, you know, I just everybody knows him.

SPEAKER_03

Right.

SPEAKER_04

Oh, you're gonna sell it.

SPEAKER_05

That's the bigger thing.

SPEAKER_03

Right.

SPEAKER_01

I mean, assuming with eleven hundred square feet and you saying it needs, you know, pretty significant work, we're probably looking at what like 'cause also the location is gonna help or hurt us with like getting contract. It sounds like that's kind of a a pain point for you as well as finding people that can go up there and actually do the work.

SPEAKER_04

Yeah, you've got a you've got people that go up, you've got people that work up there all the time. I don't have for me to go up there and start getting this to the point where they can I can't get up in there and haul stuff out. I I just have to exercise, I can't get in there and start hauling stuff out. You know, I've got a guy up there right now that's ready to go work on it if I pull the trigger.

SPEAKER_02

Any idea of what it would cost? I'm I'm guessing in my mind, we're somewhere in like the 70 to 75,000 range. Does that sound somewhat reasonable?

unknown

No.

SPEAKER_04

Nope. Nope, you're about a hundred thousand dollar range, you could be our up there in the mountains, but you are gonna pay for your the way where he where you're sitting up there, you gotta go 50 miles and the air chill for materials and so you're gonna pay for that.

SPEAKER_06

Right. Okay, so closer to a hundred thousand.

SPEAKER_01

All right, and then with the two lots, do you think it would make sense to build another cabin on the other lot or just kind of combine it and just have it as like extra land for the cabin?

SPEAKER_04

If you want to spend money on a surveyor to come in, because the surveyor has to come in, you have to legally split the lot, there are rules up there.

SPEAKER_05

Gotcha.

SPEAKER_04

Right now, right now I'm paying HOAPs on each separate lot. I'm paying taxes on each separate lot. So if I want to take that and make it one, I have to have surveyors come in, survey it all, make it one lot, and once it's one lot, you can't make it too, you can't break it apart again. And I don't know why my dad didn't make it a lot. So I'm just uh I I just started researching it not long ago to see what what what I would have to do, but if you have to spend money more money to get it made into one lot.

SPEAKER_01

Gotcha.

SPEAKER_04

So when I selling like somebody because then they're not paying two taxes and two A to Age because it is one lot, so it'll be something on the flip side that you would build, which is a selling portion.

SPEAKER_01

In in this cabin is the one with the green roof, right?

SPEAKER_05

Yep. It's a metal roof.

SPEAKER_01

Yeah. Okay. Because when I sear when I searched the address, it pulled up 115 North Bar J, but it showed this this house. Um, so I guess it's got green paint. Ah, so it's the big oh wow. That thing is huge. Okay, no, I was looking at the small one across the street. You're talking about the big two-story one with like the cinder blocks underneath the deck. Yep, that's the one.

SPEAKER_04

Holy cow, that thing everything everything down the corner is is that belongs to that property.

SPEAKER_06

I see.

SPEAKER_04

So when you're looking at it, there's a view that goes from the street, uh, the property goes down to the creek where the road is. It'll go down to the creek and then it goes all the way up. Right. There's the driveway. There's a driveway that on each side that goes in a circle all the way around, so you can access it from either side, and then the driveway also leaks down to the bottom lock. So there's actually two driveways you can access from either side that goes in a circular, two circular driveways.

SPEAKER_02

Gotcha. Okay.

SPEAKER_01

Let me pull up in another software of mine and see if I can find some more information about the

Pricing, Repairs, And Timeline

SPEAKER_01

property. Just off of an initial glance, I mean, and based off of the repairs and what you're saying the value would be, I'm I'm probably gonna be somewhere in the the low twos. Is that something that sounds something that you would contemplate? Yeah. I mean man, the only problem sometimes when I run into when it's properties like this, kind of in the middle of nowhere, is I can't find information about it. I've got three different softwares I'm using.

SPEAKER_04

I'm gonna I'm gonna tell you that the the the plans were driven the plans to it were written on a brown paper bag. I mean, it's not a lot you're gonna find on this cabin. The nearest town is Duck Creek Village. It's in the 70s there was nothing up there. Now it's just jam-packed full of people and side by side, you know, one of those things called the bunkees that go up and ride all over.

SPEAKER_05

Right.

SPEAKER_04

Um and now they're gonna, now they're gonna they're making a side to swing. It's called Swain Creek, and they're making a side to everybody's mad, but it's gonna it's gonna increase the property value, it's gonna pick a lot of people off because it's gonna bring in more people, but they're gonna put a brewery, they're going to put uh a gas station, they're going to put single property residents in the condominiums, which is we've never been able to do a lot of these things, and now they're putting it in up there, they're this guy can as much money, and so it's been driving the property value up even more. So a lot of people are fairly tense and will move out, but the other people that want to be up there will move their idea.

SPEAKER_01

And the property is vacant, right? You're you're not living in it.

SPEAKER_04

I'd have to wait till the springs go up and to clean the inside out. I mean, unless you want to take it as is, but there's all of his belongings are in it. I mean, I've gone in and take and taken all the pictures that I want out of there.

SPEAKER_01

I mean, it you tell me what's what's the most important thing to you? I mean, is it money? Is it time? Like, what are what are you trying to accomplish with with selling the property? Is it just to get out from underneath it and get compensated for that?

SPEAKER_04

Well, I mean, number one, financially, it's it's greating me because I'm paying my I'm paying, I have my own home here. Now I'm gonna pay now paying taxes on that and I'm paying HOA fees on that. I'm trying to keep up with the what the HOA wants. He had a bunch of like crap outside, and I've had to go up there and clean all that up. I've got to get in there and clean everything out that's on the inside. If I decide that I'm gonna go ahead and go through it, I'm gonna end up going in there and clean it out because I'm not gonna be able to want to pay somebody to do it. And then I'll have to hire somebody when it comes down with a nitty-gritty. I'll have to take out a lot of leaves instead of putting further in. And then after that, then I'm gonna be most invested in it, and I'm gonna probably want to keep it and it's draining me.

SPEAKER_03

Right.

SPEAKER_04

I don't want to ask somebody up there because you know, like the first person I mentioned, that she said, Oh, I know exactly. And I thought, well, I don't want everybody in their mother that knows him to judge me. I I don't I don't want it getting back to him and try to do it that I can't do everything. I can't do it all. Right. So I just want it done. I do need to have one more thing off my work to be done, like when you say spring is when you could go get the things out middle of March or April or

SPEAKER_01

When when specifically do you think that would that could take place?

SPEAKER_04

No. That that's early May, and then you gotta wait for all the snow milk. I don't pay I don't pay for the driveways to be cloud.

SPEAKER_03

Right.

SPEAKER_04

No, I can't get in there. I mean maybe if I had four drive with that driveway really super steep.

SPEAKER_01

Yeah, I'll see that.

SPEAKER_04

I I can't respect no.

SPEAKER_01

I mean, would that would that be okay to to wait until early May to close, or is that too long for you?

SPEAKER_04

No, that's fine. I I not think if you want to take the stuff in there, you can take you can keep it. I just I I either wait.

SPEAKER_01

I the reason why I say is because I always feel weird when I you know buy a house and people leave stuff because for us, most of the time we just throw that stuff away, right? Because we're gonna come in and remodel the house and everything. And I'm assuming there's there's stuff in there that you might want to keep or I don't know, just discard, you know, more politely than the way that we would, is I guess the most appropriate way for me to say that. So um, and the other thing is is it's beneficial for us if we don't close until May, because we're gonna have struggles as well with getting contractors up there and everything with the snow and and the winter and everything like that. So it's kind of a if you're okay with waiting till May, it's it's more beneficial for us if we do it that way.

SPEAKER_04

Well, what you want to do, um I find it today. I'm sorry, I'm working at the same time.

SPEAKER_05

Okay.

SPEAKER_04

Um yeah, what you want to do is start reaching out to contact them right now to keep their charges but they're gonna work now. Right. So we I don't have a problem. I can go up there and get it soon if there's a and that's the only idea when you can have a full direct track I can get get in that and go.

SPEAKER_02

Um whose name is the property under? Is it under your name or is it under your dad's?

SPEAKER_04

It's under my name. Well, I'm guessing that the up there you just do a quick clean lead and everything's done. So the chocolate in my name, and then they switch the path of water over in my name. So that's one thing that soon can take the responsibility of it. Whether you use zero gallons up to ten thousand gallons, it's loan amount, and you have to start paying that water bill right away.

SPEAKER_03

Right.

SPEAKER_04

And they put it into they automatically put it in your name to DR.

SPEAKER_01

So what I would what we do is is we close through a title company, but we would take on the expense of that.

SPEAKER_02

So we because we would want to make sure to get title insurance uh on the property itself.

SPEAKER_01

So but we cover all those closing costs, so it's no expense to you, especially considering the fact that we're gonna have so much time um from now until May for the closing.

SPEAKER_02

That's plenty of time for normally title companies could get it done in a couple weeks, so giving them that much time is plenty of work time.

SPEAKER_01

Okay, um, let's see here. What do you think about closing on May 10th?

SPEAKER_04

Well, I depending on how much snow packed they get in here, that sounds great, but I can't guarantee because last year it was so bad in snow that uh in early early June, it was it was not going to get up there.

SPEAKER_01

I gotcha. Well, I'm just gonna put May 31st. Um, and if it's honor before, so we can always close before.

SPEAKER_04

Perfect.

SPEAKER_01

Um, and if we need to extend because of whatever reasons, we can also do that.

SPEAKER_02

Um, all right.

SPEAKER_01

And when you fill out my form, I don't know if you purposely didn't put in your name or just didn't come across it. I didn't catch your name.

SPEAKER_02

What is what is your name?

SPEAKER_04

Lisa O'Leary.

SPEAKER_01

So I've got Lisa O'Leary, and then the subject property I've got 98 North Marjay Trail. But is it 98 and 100 North Marjay Trail?

SPEAKER_02

Because it you say it's two separate lots. Are you sure that that's the address for it?

SPEAKER_04

Yeah, if you give me one second, uh or actually

Contract, Title, And Logistics

SPEAKER_04

you can go look on you can go look on King County Assessor's Office.

SPEAKER_03

Okay.

SPEAKER_04

King County K K-A-N-E. County Utah Accessor's office that I would, but I don't I don't think I'm trying to work right now, and I can't have a $35 million customer I can't let no no, you're good.

SPEAKER_01

Let me let me deal with that.

SPEAKER_04

You will be able to see if you type in my last name under you'll be able to see. And I do owe back taxes, I think I'm in I owe like two thousand dollars in back taxes, I think. Or it might be more, I don't know.

SPEAKER_01

So that would just come out of the the closing proceeds.

SPEAKER_04

Yeah, it was like it was like $10,000 about capture like I'm all feed up and down. And then now the last couple of years with my dad tell them out controlling the package. No, I forgot it.

SPEAKER_06

Well, hopefully this would be out of your your hair pretty soon.

SPEAKER_02

Um the AOL email, is that a good one for you?

SPEAKER_05

Yeah.

SPEAKER_01

Dude, you were not joking. My audio was not good, and my mic got pushed all the way back to the back. I don't know who did that. Is that better for you guys? All right, so I just sent over a purchase agreement to that email.

SPEAKER_04

Okay.

SPEAKER_01

This allows us to um open up title with the title company. I'm gonna have to find a local one that works inside of um King County. Um, probably take us about a day uh just to call and make sure that they can do everything that we need them to do. Um but once you sign this, we would send this off to the title company, open up title. We'll wait on the title commitment to come back from the title company um just to make sure that everything's good. That'll also get us exactly how much you own those back taxes. And then um once we start getting a little bit of weather, uh better weather, um we'll want to go up there, just do a simple walkthrough, just verify that it's every I mean you were pretty transparent about it, and we do this a lot, so kind of understand the situation.

SPEAKER_04

You can you can go up there if they they file the road if you want to put snow keys on or snow boots and walk up the hill and go up there. You can probably still get in the back door. Neither of the doors are locked.

SPEAKER_01

Gotcha. So, yeah, we'll probably get up there pretty quickly, just do you know, walk through and then we'll want to do another one right before closing. Um, but yeah, if you want to take a look at that real quick, just let me know if you have any questions about it. It's pretty simple, it's like two pages, not not a whole lot to it.

SPEAKER_04

So okay. All right, so I can I look at the sales thing when I'm not working.

SPEAKER_01

Absolutely, absolutely. Take your time. Um, this number that I called you from is my office line. Um, if you call in, um someone else will probably answer. Um, anyone here can answer any questions. My name's RJ Bates. I am the owner of the company. Um, so if you have any questions, just feel free to call back. If you need to talk to me specifically, just ask for RJ. Um, but you know, anyone here can can help you. Besides Kristen, she's she's just a bookkeeper, so she can't help you with buying and selling real estate. But um, anyone else can. And like I said, we'll try to make this a smooth transaction for you and get this out of your hair, okay?

SPEAKER_04

Thank you so much.

SPEAKER_01

Thank you, Lisa. Talk to you soon.

SPEAKER_04

All right, buddy.

SPEAKER_01

Bye-bye. Oh man, that was hard for. I I felt you could hear the emotion there um at the end. Um, I am so sorry about the audio. I hope y'all could hear her through the majority of that. I somehow with the new backdrop and everything, um, my microphone just got jacked and was basically pointed the opposite direction. So hopefully you guys could hear her. Um, but this is what I am looking at here um on the the profit calculator.

ARV, Comps, And Deal Math

SPEAKER_01

So ARV, I think we're being um very conservative with the 500,000. Um once I got some some more information there on privy, um, I was able to find a sold, newer, newer construction, 1994, not 1975, um, but similar lot size, similar size house for 645. Um, and then we have an active at similar square foot, smaller lot built in 2005 at 793. Um, so I feel like we're being very conservative at 500,000. She sounded like she knew what she was talking about with the 100,000. I mean, I hit her with the 70 to 75,000. Now that's when I thought the property was 1,100 square feet. When I actually found the property itself, it was the one twice as big on the other side of the road there. Um, so $100,000 on the repairs. Um, I sent her the contract for $200,000, put in a $25,000 assignment fee. So we sell it to our end buyer for $225,000. Um, their potential profit would be $115,000 after the holding costs and closing costs, um, and leaves them with a profit percent of 23%. Um so a really good deal for our in buyer. And uh, of course, I would love it because it would it would end the nightmare of Utah. Now, I have gotten properties under contract in Utah. I just haven't been able to get them across the finish line um in Utah. Um, hopefully, this is the one. Um, it is pretty remote. Uh, that is a uh concern, but the value is there. Um the the time is there too, right? We're we're not dealing with a seller that's like, hey, I need to close in two weeks. Like, we're given a lot of time uh to be able to find our in buyer. Now let's see. This is in uh Duck Creek Village, Utah. I only have 12 buyers on InvestorLift in that city. Um let's see about the county because that's what we do. Hey, if we don't have a lot of buyers in the city, maybe we can go to the county. Um, we've got 2,700 buyers in Kane County. Um, actually 2,738. So pretty confident that we'll be able to move it because of the time and because of the numbers themselves. Feel pretty good about that one. Man, that would be sick if we were able to get a Utah deal.

SPEAKER_00

So, y'all saw RJ do his thing, and contrary to what he

Buyer Pool And Dispo Strategy

SPEAKER_00

thought might have happened, Dispo Team was extremely excited to get this deal under contract. They were excited to work on it. We were super excited in the rest of the business to be tackling this deal in Utah. We're gonna finally knock that 50th state off the chart. We were bound and determined, right? So we had a little bit of everybody's hands on deck on this deal. Let's go over what the Dispo and TC process was like. So on Dispo, the biggest thing was well, is and more than was. Here's the deal, guys. We've switched CRMs since we did this deal. And your girl here did not export the notes. I did not export the notes, so I'm not 100% sure. There was also a huge chance that RJ did not leave these notes in the CRM. So he's done that a time or two when he's been doing live seller calls. So here's the deal: like, I'm not sure if we knew this. I didn't go back and watch the 30 minutes on the live call, but what I did do is realize like in our marketing of this, I'm not entirely sure where and when a couple of things changed. So, for example, last thing I have is that we were marketing this out at $350,000 ARV. I know RJ had a much higher one. So I dug into the comps currently, and I do see that they're all over the map, right? I don't know that we actually knew when we got this deal under contract that this was going to be a problem, in that there was no way for us to get to the property. So when we first started marketing this deal, we had no photos. We had a street view, and we were not able to get to the property to get photos. So we started trying to run any possible exit for any buyer. And we actually got really excited because this is like basically in Zion National Park, like around it, you know, it's right there. Um, it's a beautiful part of the state, not too far from the Grand Canyon, all kinds of amazing things going on. And we're like, wow, this really has short-term rental potential, right? So we get super excited. And I think originally in our marketing, we also just said, hey, you have multiple options for this. Like, and even to this day, when I went and looked up the comps, and I think it's not even been a year, but when I go look up at the comps, which I don't have access to because they're an old CRM from the time, um, you know, I'm seeing that's all over the map, right? There are some incredible properties, you know, not too far from the square footage range, upwards to $800,000, $900,000. And then there's some that are like as low as, you know, $400,000, right? So this property has, you know, a lot of potential in our mind. If I remember back on dispositions, and so we're gonna get it started marketing out. We're not gonna hold,

Photos, Access, And STR Limits

SPEAKER_00

you know, everything up waiting on access and photos. Everything had snow on it, right? Thankfully, this seller had time. Um, not a huge market, 111 people. And at the end of the day, the biggest thing is understanding that in a market like this, like there's a lot of second homes, vacation homes, cabin by national park. Like we have a lot of interest in these types of areas, even though they might not be heavily populated, right? And so we wanted to get it out there and get feedback. Well, we had a lot of people that did show interest, right? So you can bring buyers in that aren't necessarily sitting there in there in that market. You can bring interest in with other potential exits, et cetera. Maybe not just like a fix and flip, um, or maybe not just a buy and hold, but that short-term rental. Here was the problem we ran into. We showed, we had a lot of people show interest, and then we found out that Swain's Creek, I believe it was called, doesn't allow short-term rentals. So then we're back to square one on dispositions, and we're like, oh my goodness, um, we actually might run into some issues with this, right? So we get actual old photos that the seller happened to have eventually. We're able to put those in our marketing, you know, we're able to kind of substantiate, hey, you know, I know nobody can get to the property, but a lot of people, a lot of buyers were still like very nervous. Um, you know, they couldn't get to the property, they they weren't fully sold that it would be on the higher end of those sales prices, or if it would kind of be in that mid-range, which can make all the difference. The property did need a lot of work. And so, long story short, where we ended up having to, you know, dispo the deal for a longer period than normal, but we were in, like we were working with the seller, she was great. Justin was talking to the seller, everything was going according to plan. Everything was pulled on title, trucking along, and a buyer reaches out to us. Now, this buyer says, I'm not worried about it. I'm going to do the work that nobody else is willing to do right now. I'm not waiting for the snowmobile. I'm not waiting for the snow to melt. I have a snowmobile. So our buyer takes a snowmobile to go visit the property and says, I want it, but I want it for $20,000 less than y'all are marketing it at, which was just a little bit lower than what we had it under contract for. So Whether that ARV or that rehab, I think it was like a little bit of both. He wanted to be a little bit more conservative. At the end of the day, we ended up having to do a price drop with a seller. She was fine. She was excited to get it closed. She was excited for an easy smooth process. She was excited that we were able to perform. And our buyer wanted to do a 1031 exchange. He solved some major problems by going ahead and taking his snowmobile to go do his due diligence, right? And then what happens? Everything's getting ready, wrapped up, getting at closing. We have it assigned. Title Company is on point. And then I believe the day before closing or two days before closing. I could verify it, but let's just call it a two days before closing. The title company starts asking some weird questions. So the team is like bringing me in, and they're like, hey, they're not writing these HUDs up or settlement statements up correctly, and they just don't understand how to do it, right? And so I'm like, that's fine. I'll respond. I know the lingo so well. I've dealt with title companies that you kind of have to educate

The Snowmobile Buyer Appears

SPEAKER_00

in places like we're wholesaling or assigning or double closing or not traditional transactions, or just they're just not exposed to it, right? And I mean, sometimes it can just be that escrow officer within that title company. So I kind of work with them back and forth. And I'm like, yeah, you know, I don't really what they had said to us was we can't have a difference between the contract price to the seller and the assigned assignment price. They have to be the same price. And so I'm working with them through solutions. And he's like, no, no, no, no. And I'm like, okay, so you can't put it as a you know invoice on the statement. You we can't double close it, blah, blah, blah, blah, blah, blah, blah. I get with his manager. His manager's like, absolutely not. You cannot do this in the state of Utah. And I'm like, I absolutely know you can do this in the state of Utah. Okay. We can do this. And if you need to, I can send you HUDs. He's like, please do send HUDs. And I said, okay, time out. Well, this was our first closed deal in Utah. So what did I, what was I thinking? What I was thinking is, I've got friends. I got friends. We got friends all over the country. We know people closing deals and doing wholesales in Utah. We're not just doing this thinking we know everything. I call, I phone a friend and I say, hey, will you do me a favor? Will you send me a couple HUDs like this, lit, blit, so I can prove to this title company. We got this deal. We're trying to close it. I was like, he said, how about this? I'll do you one better. Instead of you having to try, because some of these title companies they're really thinking like this. I'll do you one better. I will get you to my title company and my escrow officer, and what she will do is she will have you closed in less than three days. And I said, For real, for real? He said, for real, for real. So I was like, Well, I'll talk to her. He's like, make sure she can do it first. Or I yeah, I'll send you heads and I'll just redact certain things. I said, okay. So I talked to his lady. She says, I can do this. I said, You sure? I said, this poor seller, I really hate to be click changing towel companies the last minute. She said, This will be faster than if you try to deal with those people. I said, okay, say less. I'll talk to the seller, I'll explain everything. Well, lo and behold, I think it took like four days, but I think that's just because the title company that it was with was being slow on getting her some things transferred over. But long and short, we changed title companies at the last minute because we had to been disclosing everything to that title, original title company, and it wasn't old republic company, but y'all need to understand like an underwriter can be like very specific. Like just because you've closed deals with old republics in all these other places doesn't mean that that one has the same underwriter, right? So it's not necessarily the title company, it's not necessarily even the escrow officer. Sometimes it's the underwriter for the title company. And so the long and short of it is we ended up changing the seller, was a little bit upset. She actually did kind of get a little bit upset about that. And so there was, I was, I was telling our new escrow officer, who is the best, by the way. If you need a recommendation for Title and Escrow in Utah, hit us up because she was amazing. She got the job done. Um, shout out um to our friends, and shout out to this title company. And um, we ended up being able to close it and solve all that seller's problems. And she even like helped

Price Drop And 1031 Exchange

SPEAKER_00

counsel the seller in a way. So, again, this is another one of those deals where in the dispositions process, you know, we get asked all of the time, you know, how how do we look at these rural deals? Well, a lot of people would have passed up on this deal, right? And to be honest with you, it's kind of surprising that of all the places in Utah, of all the marketing we've ever done, of all the sellers we've ever talked to, like of all places, but when you really look into it and you understand real estate and you understand the demand for real estate and you understand the market and you understand what buyers you're looking for, you understand the data, you understand how to solve problems throughout the closing. You know, I preach about it all of the time. Compton underwriting, yes, it starts in acquisitions, but it's a part of the process through and through. Um and the closing coordination, it can make all of the difference in the world. Working with good people that aren't even within your company can make all the difference in the world for closing. And, you know, us solving those problems and including like, you know, supporting our buyer solving those problems and supporting our seller and solving those problems, and supporting title and solving those problems, and then even phoning friends for good recommendations because we are not heavy in, you know, doing deals in Utah. It was our first one. You know, having the having the right people that you're surrounded by can be such an important part of this. So our community was such an important part of this deal closing. And that's how we ended up getting our first deal closed in Utah.