King Closer Reacts to Wholesaling Myths vs Reality

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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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Transcript

Welcome And The First Reaction

SPEAKER_00 0:05

What's going on everybody? Welcome to the King Closer Reacts. I am the King Closer RJ Base III, and this is the series where I watch a bunch of YouTube videos, probably disagree with them, hopefully make you laugh.

The AI Wholesaling Claim Breakdown

SPEAKER_00 0:16

Let's get into the first video.

SPEAKER_06 0:17

Come with me to close a wholesale real estate deal. Hey Opal.

SPEAKER_05 0:25

Hello, boss. I am here. What's our most promising deal today? Today's most promising is 4568 Cranum's estate with agent Sarah. She has counted at 310K. Turkey Lance sent her the counter of 308K. The maximum offer allowed is 312K. I accepted her count and have the contract ready for signatures.

SPEAKER_06 0:45

Okay, and now I'm done. I'm so serious. That's how fast I can close a deal and do 15k using whole tech. I didn't cold call, I didn't text a seller, I didn't even talk to a human. AI runs my business automating 90% of the tedious tasks wholesaling requires. This isn't hustle, it's a system. Comment AI and I'll send you my masterclass on how I set this up.

SPEAKER_00 1:09

Yo. Was that a whole thing bullshit? I don't even know what I just watched. I mean, when she got to the laptop, the the AI was so poorly done. I mean, if you just look at the sum of the letters, I mean it's not real.

unknown 1:27

What are we showing?

SPEAKER_00 1:29

I I don't understand. I mean, if AI is really running your entire wholesale operation, why wouldn't you show the real AI that's running your entire operation? Or it's some new language or font that is created on your dashboard there. I I don't know. The whole thing seemed weird. Even the get up and the walkov to the laptop, I don't know, man. Just felt a little clickbaity and fake. And yeah. AI, I don't think, is running our wholesale operation. That's just my feelings based off of that video alone.

What Wholesaling Really Means

SPEAKER_01 2:04

Hi everyone. So a friend of mine recently told me that she was watching my videos because she's interested in investing in real estate. But some of the vocabulary words that I'm using is foreign to her, so she asked me to explain some of the words that I use in my videos. Um, I think I covered what real estate was, what foreclosure is. That's when the uh homeowner gets behind on their loan payments. That's that's um, and then eventually the bank wants that house back because you know they need to get paid, and they foreclose on the property and the property goes into auction. So you try and approach these homeowners before the actual sale day to see if they'll sell it to you, or you provide some sort of a solution for them. Okay, so another term I can talk to you about is wholesaling. What is wholesaling? Everybody's doing wholesaling. All these like young kids, 17-year-olds, 18-year-olds are profiting massively from wholesaling. So, what is wholesaling? Okay, you call, for example, there's lots of ways to reach homeowners, but let's just say that you called a homeowner and you said, Do you want to sell your house? And they said, Sure, I want to sell it for a hundred thousand. Well, you have a list of buyers and seasoned investors, or anybody that wants to buy a house, maybe at a discount. So you turn around and say, I have this house for a hundred thousand. Um, I will assign this contract to you, pay me $20,000 as my finder's fee, and this house is yours. That's wholesaling. You're taking a property and then you're selling it to a buyer, and you're in the middle because you found the deal and you make an assignment fee. That is what wholesaling is.

SPEAKER_00 3:37

I mean, kinda. Um, I think the issue is when we try to make these types of videos, we really want to make sure that the language that we use is correct. Um, we're definitely not finding a property and then selling the property to the end buyer. So we are getting a property under contract and we are selling or assigning our rights to the equitable interest because otherwise we are brokering real estate. And so that's a subtle little nuance. But if you're gonna be making this boring of a video teaching people what wholesaling is, at least use the correct language. Um, I I don't understand why um people associate wholesaling with it being this simple thing that a bunch of young people are doing. I think it's just because of social media, and they're seeing a lot of people that have come up in this time and age where using social media to grow their business, they're seeing more of that. But to be honest with you, just looking at Titanium University as a sample size of a thousand plus people, the majority of people are in their late 30s, all the way up into their 60s. There's actually not that many young people that are actually in wholesaling in comparison to the older generations or the middle-aged generations. Uh, but going back to the point of the video, just make sure you use the correct language because these are the kind of videos that get used against us where it's we're teaching people that we are brokering real estate, and then that's leveraged against us for regulations and all the bullshit that comes down on a wholesaling.

Local Market Advice Versus Virtual

SPEAKER_04 5:23

Most of the content you're seeing about real estate wholesaling makes it sound really complicated because it is. Most wholesaling gurus are going to teach you how to do virtual wholesaling nationwide. But if you want to start wholesaling the easy way, I recommend you do it in your local market. And here's why. First of all, your interaction with motivated sellers who are the lifeblood of your wholesale business is just gonna be easier because you're in the same location. You can relate locally. There's no, oh, but are you out of state? Like, where are you located? Why are you buying my house from blah blah blah. Especially if you're doing cold marketing like cold calling, you're already gonna have an easier time by being local. Number two, you're gonna have an easier time analyzing deals instead of trying to learn every market or apply one algorithm to the entire 50 states, you're gonna learn one market, your backyard. You're gonna get familiar with your different cities and neighborhoods, what things go for, you're gonna build that muscle and become a hyperlocal expert, which is gonna help you a lot more with nailing your numbers so that you can put good deals together for your investors. Also, the lifeblood of wholesaling, putting together good deals. Remember, for an investor to buy your deals, there has to be a profit to be made. And in order to figure out if there's profit to be made, you need to be good at analyzing deals. Number three, it sounds counterintuitive, but honestly, starting in your own backyard, you're gonna find so many more opportunities because instead of casting a net across the entire country, you are focusing into one area and you're hammering those lists and those farms. I wholesale in Western Washington and we closed 32 deals last year, which may seem low, but our average fee was about $32,000. So, my team and my operation, we closed a million dollars in wholesale fees just in Washington State. And I now teach wholesalers and agents across the nation how to build the off-market strategy in their local market. So follow for more.

SPEAKER_00 6:59

Okay, well, obviously, I disagree because I'm the guy, I'm the wholesale guru that she's talking about that teaches nationwide virtual wholesaling. So she talks about she did 32 deals and an average assignment fee of $32,000, which is fantastic. And there's nothing to bash her for there. I mean, a million-dollar wholesale operation is fantastic, especially considering the fact that I think she's 27, 28 years old. I mean, that's amazing. That's when I was getting started as an entrepreneur, not even in wholesaling yet. So she's way ahead of the curve there in consideration of her age. But when we talk about casting a net over your local market, um, it does become more expensive, which is typically one of the biggest barriers to entry for wholesalers. They do not have a large budget. There's normally a reason why you're trying to start your wholesale journey. Uh, you probably want to make more money. You you don't have a whole lot, and you're also inexperienced. And so when we talk about, hey, you're going to be able to analyze deals better in your local market, you don't have any knowledge of any market. So you're not going to understand that market any better than any other market out there. And then your average cost per lead is going to be more expensive, specifically in a market like Seattle, Washington, or Western Washington is what she was referring to. That's going to cost you quite a bit. Now she's talking about doing cold outreach, right? So she's wanting to go the super cheap route where you're pulling your list, you're cold calling, sending SMS text messages. Again, something that I disagree with. I want you to get your experience and your reps talking to people that have already raised their hand and said, I have a property that I want to sell. I want you to do that with the cheapest leads available, anywhere between five, ten dollars on Lead Zolos Marketplace, all the way up to $75 or $100 with property leads, metro leads, or Red Pandas Metro leads. Those opportunities, those leads and those reps that you get put in with somebody that has a house that they want to sell, you start developing the skill sets necessary to close deals. Whereas if you're cold calling, you're going to be spending a lot of time talking to people that don't want to talk to you about selling house. They want to talk to you about how did you get my contact information? Why would you assume I need to sell my house? Just make me an offer. And so it's a miserable existence. And so I appreciate her take on this, except for the fact that at this point, considering the fact that I have trained thousands upon thousands of people to wholesale, I've seen how demoralizing it can be to do cold outreach and to be limited to just one market.

The Real Timeline To Get Paid

SPEAKER_03 9:55

You guys, please stop listening to the people that say that it's easy to wholesale houses and you're gonna get a check in like 30 days or something like that, because that's just not true. Okay, and I'm gonna show you. So I've been wholesaling and flipping for about seven years now, and it still takes me a little bit of time to actually get a lead from sign contract to close, okay? Sometimes there are definitely those outliers where it's a quick contract, you close in 30 days, but that's very, very rare. So don't think that is normal. Now, this is what's actually normal. So we just got this property under contract right here, as you can see, under contract May 18th. So we literally just got it signed. But look, it's been in my pipeline for literally 31 days. This lead came into my pipeline on April 17th. So it's literally been a month and we finally got it under contract today, expecting to close in 30 days. So our timeline for this one is actually two months, so about 60 days total. If I expected a check within 30 days, that was just not gonna happen with this one. But this kind of timeline, like I said, is very normal. So when you hear people say, oh, you can get a check in like two weeks or 30 days if you're wholesaling, like yes, but not really. This is also why I talk about follow-up so much and why it's so important. So don't listen to those gurus out there just telling you that to either push something at their selling or whatever. Make sure you're being cautious and careful and follow me for real, actual real estate tips.

Why Most Viewers Never Close

SPEAKER_00 11:09

All right, so my big takeaway on this is I would definitely want to make sure that I differentiate myself from whoever she's talking about. Wholesaling is complicated and it is going to take time, especially to develop the skill sets that are necessary for you to make money. So I just want to go the polar opposite route. If you're watching this, you probably will never successfully close a deal. You're probably not going to take the action necessary to even get a property under contract. You're probably just going to continue to watch my YouTube channel for years and years and years. And you're never going to see a check. You're never even going to get a property under contract. That's probably what's going to happen with the vast majority of you. Because at this point, there's 73,800 people subscribed to this channel. I don't receive 73,000 comments about, oh, I closed and funded my first deal and getting so many properties under contract. Why? Because it's a lot easier to be a consumer than an action taker. You want to sit here and you want to watch this and be like, oh, I could totally do this. But to think that you're going to go out and get a check in 30 days, well, that's extremely rare. Even to get a check in your first six months, because you're brand new at something. Think about everything that you've ever tried to accomplish in your life. Were you really good at it when you first started? Hell no. This is like my son, who's dedicated his entire existence for 13, almost 14 years to hockey. And then he goes out and he tries to shoot a basketball and he sucks. And he's like, I can't believe I suck at basketball. You've never shot a basketball, son. Yeah, of course you suck. You suck at baseball, you suck at football, you suck at golf, you suck at everything because you've never tried. But people think that because some of us have become successful in wholesaling, because we dedicated our lives for over a decade to it, that it should be easy. It's not that way. It's just like everything else. You have to work to earn those results.

Disclosures Ethics And A Heated Rebuttal

SPEAKER_02 13:13

One of the reasons why I don't like the wholesaling industry in real estate, especially in California, is because the end user is usually the one who has the most to risk in purchasing a home that has been wholesaled and then flipped. Let me explain. A wholesaler will offer a very low price to a homeowner who doesn't want to have to pay realtor fees for a very significant discount on their equity. That wholesaler will then assign the purchase contract to a flipper or an investor who will then fix up the home, turn it around, and put it back on the market for a much higher price. So the end user is also paying the much higher price. And because that flipper never lived in the home, they don't receive any property disclosures regarding the condition or the prior history of the home. And so in the end, the end user is going to suffer the most. I'd love to hear your comments on it.

SPEAKER_00 14:09

I don't think you would love to hear my comments on this at all. That's the most dumbass video I think I've watched in six months on here. That was just some stupid shit. The person who's going to move into this completely renovated home is going to suffer the most. Well, first of all, they don't have to buy that home. They have the right to buy whatever fucking home they want. They can go also buy a shit box and fix it up themselves if they want. Most owner occupants don't want to do that though. They want to go walk into the beautiful new kitchen, the beautiful bathroom with the new tile and the new light fixtures, the beautiful painted back exterior of the home, the backyard landscaped, the new flooring, new appliances. They want all of that. And then you're saying that they're gonna suffer because the investor is not going to have disclosures. Now, I don't know if this is just a California-specific thing because I've never flipped a home in California. But every other state that I've ever flipped homes in, which I think at this point is 13 of the 50 states, I have absolutely had to fill out a seller's disclosure and tell the seller or the buyer everything that I fixed on the home and everything that I knew what was wrong with the home. So I don't know what she's talking about. If that's some wacky ass California shit, well, I'm sorry that you live in the fucking communist nation of California. Okay, I didn't tell you to live there. You could live anywhere you want, but you chose that place. So if that's y'all's rules, that's on you, your board of realtors, and y'all's decisions that you make. Every other state makes us disclose that. So this is just dumbassery. This is just a realtor coming after wholesalers and really flippers for no reason whatsoever. We're taking distressed properties and making them better. And because of that, the owner occupants that are moving in are the ones that are suffering. Get the fuck

Wrap Up Comments And Tomorrow

SPEAKER_00 16:05

out of here. All right, guys, that's our episode of The King Closer Reacts. Well, we got a little spicy today, especially with just when they come in with dumbass shit. I mean, let me know in the comments. You agree. That was some dumb ass shit. If so, comment dumbass shit down below. Regardless, show me some love, like today's video. We'll see you guys tomorrow.