The Titanium Vault hosted by RJ Bates III
RJ Bates III, affectionately referred to as the Viking Wizard by his students, started his real estate investing career in 2014 after attending a real estate education program that put him $65,000 in debt. RJ contracted his first deal he found on the MLS and wholesaled it for a $7,500 assignment fee. That was the end of his former life and the beginning of his venture into becoming a real estate investor. Since that moment, RJ has become an influential figurehead in the real estate investing industry. He has successfully purchased and sold over 2,000 properties all across the USA including wholesale deals, rehabs, rentals, owner finances and short term rentals. One of his passions is being the host of The Titanium Vault Podcast where he interviews the top real estate investors. He has won back to back Closers Olympics earning him the reputation as the King Closer! Finally, RJ and Cassi DeHaas, his partner, have started their education platform called Titanium University.
The Titanium Vault hosted by RJ Bates III
Why This Wholesaler Struggled On The Seller Call
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Setting Up The Call Review
SPEAKER_00What's going on, everybody? Welcome back to the series where I'm going to be reviewing a live seller call submitted by a TU member. And today I am going to be reviewing Mr. Julius Ramos. Now, here's what I know about this call so far. This happened live on YouTube, and Julius submitted it to me, and he said, Hey, it's a 30-minute call. I want to submit it for the new YouTube series. That's it. So I've asked for them to submit calls where it falls into the seller bucket where the seller is highly motivated, but the price is incorrect. I normally want these calls to not be great. I don't necessarily want them to end up being a closed deal because we want to work on being better. We want to find out where was the flaw, where was the gap in the skill set so we can work to get better. So I'm hoping that's what we had today, but I don't really know what to expect for this call because that's all the information I got. So
The Call Starts With Price
SPEAKER_00that being said, let's get into this call with Mr. Julius. Hello. Hey, is uh is Corey there?
SPEAKER_03Yeah, yep. Hey Corey, this is Julius. I was uh calling about your property there on Comanche. Um, we were texting back and forth about it, and uh looked like you had entered this on my website saying you're looking to sell that. Is that correct?
SPEAKER_01Yeah, it's correct, sir.
SPEAKER_03All right, how much are we looking to get for it?
SPEAKER_01Well, uh honestly, just to be straight up with you. I have no idea. We have um we're kind of working with the realtor right now, possibly put on the market. Um, long story short, was my dad's house. I grew up in the house, it's on an acre of lakefront um property, and um, it was rented out. If you can believe this, it was rented out for 23 years, the same people.
SPEAKER_00Oh my gosh.
Chasing Side Details Instead Of Motivation
SPEAKER_00Love the start, right? Obviously, Julius is using the closer formula. We verify that they want to sell. He went straight into what's your asking price. Now, right out of the gates, we do have a hurdle that we're gonna have to overcome because the seller is saying, I have no idea what I want to ask for the property, and that's always a little bit of an issue because if they don't have any idea, how are they going to say yes or no to whatever it is that we're gonna offer? So I do kind of want Julius to kind of apply a little bit of a pressure there because he said, Hey, I'm talking to a realtor. So what is he trying to accomplish? Does he want to list? Does he want to sell to an investor? Has the realtor already pulled a CMA and come up with a listing price? Are they wanting speed and convenience, or are they wanting the most amount of money? There's a lot of avenues that Julius could take this right out of the gate. So this is always, especially like Julius is is relatively new to the closers formula in TU, you know, a couple months. And so I'm I'm very curious to see how he's going to navigate the questions that he's going to be asking here over the next three to five minutes because it could make or break kind of the tonality of the rest of this conversation.
SPEAKER_01Isn't that weird? Yeah. I mean, why is that? Well, because they couldn't get credit. My dad tried to sell it to them like 10 years ago and they applied and just got shot down.
SPEAKER_03Wow. How much were they paying in rent?
SPEAKER_01To start a thousand. Okay. Which was unbelievably low, but my dad just wanted basically an agreement with them to uh I'll give you cheap, very cheap rent, but don't be bugging me. I don't want to hear any calls about being this and being that.
SPEAKER_00Okay, so uh I really love where we took it, right? The the seller said a lot there, and how much are you looking to get for the property? He said, uh, I don't know. We're talking to a realtor, and and then he ends this statement by saying, you know what's crazy is this property was rented out for 23 years. Now, of all the things that the seller said, Julius chose to kind of react and then ask a question about that, where honestly, it's relatively irrelevant to us, right? We want to move the needle forward about you know the seller's this seller's thought process on wanting to sell the property, and how is he going to determine what is a fair price for the property and why is he talking to both investors and realtors? Those are the things that I really want to know about. The 23 years and how much rent, kind of irrelevant to me. So I don't love those questions right there, right out of the gates.
SPEAKER_03Right. Um, I mean, retail, uh, if you're if you're gonna choose to listen with a realtor, I mean, I'm assuming you're asking four 415 or somewhere around that range.
SPEAKER_01Yeah, yeah.
SPEAKER_03Okay. Um, and I know you said you were just fishing, you texted me that. I mean, what's uh is there any reason for you to sell to an investor like me? Um well because we uh that that was odd.
SPEAKER_00I Julius kind of threw out the four four fifteen. Did I miss a part there? I don't think I did. Um I I definitely didn't love love that that part of the the call there.
Inherited Property And Needed Repairs
SPEAKER_01Um this is all kind of new to uh my brother and I. My brother um also uh obviously owns it, you know. We uh my dad passed a few months ago, and um your dad passed.
SPEAKER_03Um I'm sorry to hear that.
SPEAKER_01Oh thank you. I appreciate that. Um, but yeah, he he did. So um we uptained the house through probate, court, you know, uh blah blah blah. But um it's going to need um need some stuff, you know. I mean, we got renters, you know, they don't really do anything.
SPEAKER_00Okay, so I I do appreciate the fact that Julius did kind of, you know, show some sympathy there for the fact that uh the dad passed away. Julius, just for future reference, I would have preferred for you to allow the seller to kind of finish his dot. Um I I appreciate you wanting to get that condolences in, but allow the seller to finish his statement and then offer your condolences there. Uh and then you also want to see where the seller's kind of taking it. Okay, so the reason why he's speaking to you is because the property obviously needs some work because of the tenants. So now we want to understand more about the seller's thought process on hey, he still wanted to reach out to a realtor, um, but he also realizes the property needs some work, and then how I want to understand his thought process on how he's going to figure out what he would be willing to accept for the property because we don't even have an ASCII price, and he says, I don't know. And then he also said, right here, me and my brother are new to this, so we really want to explore how they're going to figure out how they're gonna make a decision. What do you mean by that? Um, oh a rough, uh a rough good question, right there. You know, tenants don't take care of anything. What do you mean by that? I did that was a fantastic question because now that's a great open-ended question to force the seller to now open up more. He didn't just say gotcha, or I understand this is a great open-ended question to force the seller to explain what he was saying there. A rough okay.
SPEAKER_01Um, probably a furnace, AC unit. Um try half of uh actually the flooring, half the flooring is nice wood, but um the other half would have to be redone or done. And um sliders, windows. Yeah, you know, um blah blah blah, you know.
SPEAKER_00Did he say spiders or sliders? I don't know what he said he said slider windows, but it also kind of sounded like spiders. I I probably would have asked there just to verify we don't have like some spider infestation, right?
unknownJust ears.
SPEAKER_03Uh how about the foundation foundation good?
SPEAKER_01I I I believe so. Um, you know, that's a good question because um my next door neighbor's house um started just um they had to tear it down because it um it was shot, you know. Um it was crunched like the rough or just yeah. Um so the up there there are certainly areas on the around the neighborhood that um had issues. Unfortunately, we have not, I believe the house I have crushed, uh you know, I believe the house is solid structurally.
SPEAKER_04Yeah.
SPEAKER_01Um but um, you know, we just we don't, you know, we're I'm 56 and my brother's 60. We I mean we just we don't want to dick around with it, you know.
SPEAKER_03Yeah. Is it is the reason you're selling, like because it's just like too like no need for it, or what what's kind of yeah, I mean, you know, I we grew up in it.
SPEAKER_01Um yeah, they've neglected it, just to be honest with you. We do have a uh a guy coming on the 22nd to um, like I say, it's on a peninsula, it's probably the nicest house visually on the lake, you know, with uh see that it's gorgeous on the the uh the the views, you know.
SPEAKER_00Okay, so this is an important part of the call for Julius here. I think we we've kind of understand the reason, like the surface level reason as to why they're wanting to sell the house, but what do the brothers want to accomplish? He said things like, we just kind of want to be done with it. Okay, so what is the blue sky scenario look like for him and his brother with this transaction? What are we trying to resolve here? Just getting it gone? Does that mean for the most amount of money? Just getting it gone in the quickest time frame? Are they seeking speed and convenience? Are they seeking the most amount of money? Again, we're we're going back to the question that I just don't know the answer to yet, which is what are you trying to decide between selling to an investor and listing it on the open market with a realtor? I'm stuck there because we've asked some some solid questions here, but we're we're not diving deeper into what the seller is trying to accomplish.
SPEAKER_01But um yeah, we've just we just want to be done with it, you know.
SPEAKER_03I gotcha. I mean, what's the what's the plan if you guys don't sell it?
SPEAKER_00See, okay, he almost should have repeated what he did earlier when he said, What do you mean by that? But he comes back here with the dreaded, and mind you, I do this as well. I gotcha. Okay, we just want to be done with it. I gotcha. I mean, what's the point if you guys don't talk? What do you mean? We're we're not there yet. Um, he has multiple options to sell. I mean, it's on the bone with you, right? Why wouldn't we sell it to you? Um, he's also spoken to a realtor. Why not just list it with that realtor? He has the options available. We don't even know why. I don't know why Julius asked that because we don't even know why he wouldn't sell it. That felt like a question that's out of place. Would have loved to Julius run back to play that he just ran. I want to be done with. We just want to be done with it. Wait, what do you mean by that? Or he could have just gone with blue sky scenario. Tell me, what does this look like? What do you want to accomplish with this sale? Because I that's what I really want to do.
SPEAKER_01Um, probably someone like you. Uh-huh. It's just um, you know, I we didn't really yeah, the realtor is a friend I work with. Um, I'm a retired corrections officer. And um, I drive school bus now, and he also drives school bus part-time and obviously does real estate. So we didn't sign any paper, you know, there's no agreements on that. It's pretty much a handshake, and let's just see how this thing goes.
SPEAKER_03Yeah, I got you. Um, well, I know that 400,000 is the retail price. I mean, what would a cash offer from an investor look like? I mean, I mean, do you have a rough idea? Let's say I cover all the closing costs, all the holding costs, you know, that kind of like utilities and all the taxes and all that.
SPEAKER_01Yeah, I I get it. I know there's a lot of upcharge on that, all that stuff. Um, so uh here's another thing. Oh, my dad was kind of a high roller type guy, you know. He uh he bought the house in '86 for eighty-nine thousand. Um, and when he passed, he still owed 150. So I think you know where I'm going with that.
SPEAKER_02Okay. So y'all is 150 is still owed.
SPEAKER_01Well, yeah, my brother and I, we paid it off because um it was on a balloon and it doesn't shift the time. Yeah, the timing was weird. It's just like, yeah, it's gotta be paid, or we all repossess it, you know.
unknownRight.
SPEAKER_01So we uh we paid it off, we paid the house off. So it's it doesn't they have a balance except in our pocketbook.
Break Even Number Finally Appears
SPEAKER_01Um you know, so I mean worst case scenario, I would trade to the good lord um like 225, we would recover at least.
SPEAKER_00Okay, so dad owed 150, they paid that off. This response right here is he would pray to the good lord, like 225 we would recover at least. I'm taking that as his asking price is 225, so they're recovering the 150 and putting 75,000 in their pockets. But I want to verify that I want to ask so if you could walk away with 225,000 in your pocket right now, you would be happy with that. That's probably where I'm going as my next question.
SPEAKER_03Okay, so that the 225 would be like what you would want to walk away in the ideal scenario from a cash offering investor, right?
SPEAKER_01Yep, yep. Just to um recoup. Sorry, I just hello um waterman. Oh, you're good, you're good. Um, yeah, yep, just to recoup, you know, like um uh Matt Eva, you know.
SPEAKER_04Okay, okay.
SPEAKER_00That that's drastically different than the $400,000 that we're talking about. So I like the direction. I don't know the numbers on this deal, but I like the direction where the conversation's headed now. And I like I don't necessarily know that we we asked the appropriate questions to get the responses that we needed, but now we've got a solid, we understand what he's trying to accomplish. Two 225 in his pocket, and he wants to be done with it. Sounds like he wants to be done. They both brothers want to be done with it fairly quickly. So I like the direction that we're headed at this point.
SPEAKER_03You know, the reason I asked for your numbers, uh, I always want to make sure um if I can make that work for you. Um, obviously, as an investor, I do want to get you as much money as I can in your pocket. I mean, but at the same time, I gotta be fair to my business as well to keep the likes on. Sure. Yeah.
SPEAKER_01So I totally understand.
SPEAKER_03Yeah. And I I forgot if I asked this. It's uh love that line.
SPEAKER_00I've heard that line a lot lately. Um, it feels like we're shifting the conversation from the seller to us. And remember, all these conversations should be about the seller and about their situation. And we just got the seller to emotionally open up about hey, I I had to pay off a hundred and fifty thousand dollar mortgage, even though my my dad owned this property since 1986, and and now I want to recoup that 150,000 and I want to get like 225. That feels like a reasonable thought process from the seller. And then now we're we're explaining that we're investors and we've got to be responsible to our business. I don't love that line. I just especially in this time frame or just in general, it because I is Julius telling him that like the numbers are just way off because he was telling me, or he was telling the seller that he felt like 400 to 415 was full market value, and now all of a sudden, out of nowhere, we're down to 225. It feels like we can have a pretty logical and reasonable conversation, especially considering the fact that this is an inherited seller. Sometimes these are emotional conversations, but so far this feels like a very logical conversation. So I would have preferred that to not where Julius took it right there.
Losing The Thread With Deal Analysis
SPEAKER_03It's uh is it a three, three, one and a half best?
SPEAKER_01No, um, it was added. My dad was kind of a handyman, so he um added um if there was a freezeway, that he um added basically a four-season family room.
SPEAKER_00Yeah, I I I really didn't like what we did there. We got the 220 by number out of it. We totally shifted away from the seller. We went into this one-liner about how we gotta protect ourselves and make money, and then we went into Zillow stat land. Now we're asking if it's a three-bed, one bath. I'm not understanding where this feels like uh not sure where to go. So we're just gonna default to some questions here. Uh, we were we were in a good pocket and we ran away from it. And now it's it's gonna be hard to recover from some of this. We we need to stay right there where we had this seller talking about his his wants, his desires, the level of pain. Like we had the surface level pain. They inherited the property, the tenants kind of tore it up, and they don't want to they want to be done with. That's the surface level pain. Now the pain associated with the number. We want to get 225 because we had to pay $150,000 off in debt, and then we want to recoup some of our own cash. So $225. Now we need to really dive into what is the purpose? What is the the what are they trying to accomplish by selling this outside of just recouping the 225? What's the story associated with it? Like there's there's more here to this story that we're running away right when I felt like we were there to to dig deeper into what could accomplish and how we could help them accomplish that.
SPEAKER_01Um, he put a full bathroom and downstairs and a shower and upstairs. So technically, I would say it's like three bathrooms.
SPEAKER_03Three bathrooms. Okay. And then bedrooms is roughly how much.
SPEAKER_01Like a number of well, you know, the the runners were um using the breezeway, or the they you know, my dad finished off the breezeway to at the time was very nice. Um, put stone fireplace and whatever. Yeah, they were used that as the bathroom. Okay.
SPEAKER_00I don't I don't know where we're going right here because I mean we were already shooting off that the the property value retail value was 400 to 415. Like uh I I don't I don't know where we're going. I'm I'm lost in the into the dot process right here. It feels like Julius is very hardcore analyzing the deal, comping it, uh right when we're in the middle of of the of what we want to earn in the calls, the pain, the motivation. I don't like this. He's got a pivot right here back out of this.
SPEAKER_03But on paper, do you think it's like three?
SPEAKER_01Um, on paper would be three.
SPEAKER_03Okay, on paper, okay.
SPEAKER_01I gotcha.
SPEAKER_03All right, let me see what I can do here. I'm just looking at what's selling for around the area here. Um, you know, I gotta do, I gotta look at comps in the area, uh, see if I can make that work. Um, let me ask you this. You said you were trying to recoup your investment with that uh $225. What do you what do you mean by that?
SPEAKER_01Can you elaborate? Well, um, well, because we had to borrow money. We went to the bank and borrowed, we got uh HELOC loan loans to um to pay it off, hoping at the time we would make a decent amount of money, you know, like a like it was a good investment until we got in the house. So um just just to recoup to pay off our loan.
SPEAKER_00Oh, geez. He said this property is paid off now. We bad moment we came back. So now this is what I was saying. There's a story associated, like Julius. You you were there and then you insert bad, you you you pivoted it out, but this is what I'm talking about. These brothers went and took a HELOC home loan, I believe, because he's saying this house is paid off on their own properties to pay this off. It looked like a good investment. So, yeah, they're they're like, Well, we took out a HELOC on our own house, we want to recoup that and make a little bit of a profit on this, right? They're looking at this as an investor the same way that you are. Now we've got to stay here. We gotta stay here and figure out how we are the solution to the problem that exists.
SPEAKER_03Okay, I gotcha. Yeah, yeah, I appreciate you being honest with me on that. Um, yeah. Uh is your built 1952, somewhere around there, and then square footage around 1500.
SPEAKER_01Um, I would certainly say uh an additional 500 square feet from my dad adding on, you know, and and giving it more. His idea was really to make it kind of into a triplex.
SPEAKER_05Okay.
SPEAKER_01Um yeah, because we were young at the time and we were kind of teetering on moving out or staying in the house, and my dad's oh yeah, I'll do this. And he had kind of a dysfunctional relationship with us, kind of a thumb, you know, over our heads. Didn't want to break up the family, so we all kind of oh, yeah, cheap, right? We live on the lake, and yeah.
SPEAKER_00So um Julius keeps having fantastic moments, and then he earns he earns what you're looking for, the levels of pain and the motivation, but he's not leveraging it to get more. This seller is willing to open up and discuss pretty much anything, and and then we're pivoting out to go to well, I'm comping and I'm underwriting, and so uh is it is it 1,500 square feet built in 1952? Why? Oh no, it's built in 1953. What did that do for you? What did that move the needle? Why are we asking these questions? I such great questions followed by such why questions.
SPEAKER_01Um, yeah, so well, yeah. So one room is there's like three areas that are like self-sufficient, you know.
SPEAKER_03Okay, I gotcha. Um, so this has you said it the probate's done, right? Or is it still okay? And who is the um so you're the executor now? Yeah, correct. Okay. Okay, that makes things easier. Uh that's nice.
Value Debate And Repair Estimates
SPEAKER_03Uh let me ask you this. Uh, if I were to come in there, fix everything up, I you know, redo the half the floors, meet uh the roof, the furnace, the AC, slider's windows, how much do you think it would be that would sell for on the market?
SPEAKER_01Oh, uh I'm gonna be completely honest with you. Um, like I I say my dad really bought the property because it's got the most amazing view on the lake. It's hands down the best property on the lake. It's on a peninsula, it's almost it's on a double lot, like almost an acre. And um he uh did really a lot of he put two decks that are very solid yet on each side of the peninsula overlooking the lake.
SPEAKER_04Yeah.
SPEAKER_01And those decks, you know, they're hardly very rarely used, they're just a solid, you know, if it was just part wash and maybe put a little um paint or uh whatever you call it on there. Um it would probably look new, the decks, those two decks would.
SPEAKER_04Okay.
SPEAKER_01So yeah, I think I'm sorry, the value. Um, oh yeah, yeah. So um, like the very there's a two or three houses on the lake that um I would say are in like the 650, 700 range. And yeah, I also uh my wife said we live on the lake, we live across from my dad's house.
SPEAKER_04Okay.
SPEAKER_01Oh there was a house that just sold um a few months ago for 45.
SPEAKER_03I see that. Big spring, uh north big spring drive southwest, yeah.
SPEAKER_01Yeah, yeah. So we're the neighbors um to the left if you're if you're looking face at the house, you know, where it's 48.
SPEAKER_04I see that.
SPEAKER_01And um, yeah, so I grew up on the lake, and um, there's obviously, you know, I got a pretty good idea of the value of the houses.
SPEAKER_03Um yeah, thank you for that. That that helps me out a lot. Um okay.
SPEAKER_00I I'm starting to get a sense that Julius is just scared to close this almost. I like yeah, of course, I want you asking a seller like what what do you think the property could be worth fixed up at times, but you don't have to ask it with every seller. You don't want to ask it with every seller. Now, this seller was extremely knowledgeable about the area, talking about this, but Julius was already talking about the fours, and now we're talking about sixes and sevens, but then the neighbor sold for 485, so it still feels like we're in a $400,000 neighborhood. Pretty sure he's he's won except the $225. We could probably get him down a little bit off of that. Um, I I don't know what Julius is is looking at here. It's it feels like there's nerves associated with this a little bit, and I'm not not quite certain unless Julius just disagrees with the numbers or he feels like it needs an astronomical amount of repairs, but it doesn't sound like it does.
SPEAKER_03I think with your house, I think I could get it sold um for 380. I mean, just just being conservative here, uh 380 to 400. Um I'm just gonna call it 400. Um let me ask you this uh dollars and cents wise, how much do you think I would need to sink into your property to get it get it up to that?
SPEAKER_01Um, like so I'm I'm assuming you're talking bare minimum. Um just some some paint and a rough and probably a garage store and some sliders. I would I would have to guess the bare minimum would probably be 75.
SPEAKER_0375. Okay.
SPEAKER_01Let's see.
SPEAKER_04Okay.
SPEAKER_01And yeah, just when you say uh 385, I mean that that would probably be the cheapest house on the lake. Um, I I think that's very low. Okay, in my guesstimation. But like I say, it is absolutely the best lot on the lake.
SPEAKER_04Okay.
SPEAKER_01So I mean, honestly, I'm gonna be completely honest. If you if someone spun 200 in it, it would it would easily, I would honestly, I'm not bullshitting, say price three quarters of a million.
SPEAKER_02Okay.
SPEAKER_03Uh but uh let me let me uh crunch some numbers real quick.
SPEAKER_01Um I'm trying to see how I can where you auto, by the way.
SPEAKER_03I'm out of California, sir. In NorCal.
SPEAKER_01California.
SPEAKER_03The good part, you know, NorCal's always better than silver.
SPEAKER_01Oh, North? Yeah. Oh, thank God for that.
SPEAKER_03Yeah, I know. I I don't like LA. I'll I'll be honest with you.
SPEAKER_01Yeah, I know. I don't believe it one bit.
SPEAKER_03I don't like Governor Hairgel, you know what I mean?
SPEAKER_01Absolutely, yeah. Governor Hairgel, yeah. Fallen angel. Who knows?
SPEAKER_00I like the I like the humor there. I also like the fact that Julius kind of lightened up. I I felt like he's been pretty buttoned up, and now I'm getting to see a little bit of his personality here. I I do enjoy that. I'm still very curious as to why Julius is not pulling the trigger on this. I mean, it's now I'm not looking at the comps. I'm not looking at this, but maybe Julius is seeing something that's holding him back, and he's just not buying the numbers. But man, this is feeling like we should close this deal. And I I mean we're uh 16, 17 minutes in. Man, maybe even further than that. I I don't know. I I feel like he should totally be uh he's he's got the seller where he could probably get this thing closed. Oh man.
SPEAKER_03Um okay.
The Close Attempt And Price Jump
SPEAKER_03This is let me uh let me ask you the magic question here, all right. Um let's say I come in there, I pay all the holding costs, closing costs, you know, I closed on your timeline.
SPEAKER_00The issue is that you dropped the kill shot about eight minutes ago. Like you you already did this, and but you did it at the wrong time the first time. I didn't beat you up on it, but now you're coming back and you're using the kill shot again. Like I don't know. It's probably gonna get you something, but you you shouldn't have dropped it earlier. I I guess is the best way to put that.
SPEAKER_03Get the clothes whenever you want, you can be flexible on that. Um, you know, and listen, man, I could get you out from under this property. What's the what's the best price you could do for me?
SPEAKER_01Um honestly, I mean, if if I uh I would probably like say I've got to talk to my brother, my older brother, you know, we're half 5050. But my mine would probably be 250.
SPEAKER_03250.
unknownYeah.
SPEAKER_03Well, last time you said 225. You went up 25 grand.
SPEAKER_01Wait, wait, wait, well, well, what I'm I'm sorry. Well, I what did I say 225? No, I said that's that's our break-even.
SPEAKER_03Oh, your break-even, okay.
SPEAKER_01Yeah, that's yeah, I mean, yeah, no, but like we did a lot of work, like when I see work, like yard work.
SPEAKER_00Oh, the numbers are now changing. We did go up $25,000. The break-even is $225, I that's definitely not how that was explained. But again, I feel like we could have gotten here if we hadn't done all the bed bath, where we ear built, like all this. We should have been staying on topic there with exploring what he's saying, and we would we went in the the the comping land, and I think it cost us, but this is uh this is a weird turning point because I think Julius was thinking he needed to get it below 225, or he was hoping, and now all of a sudden 250 is what this guy wants, or it got shut down and kind of cleaned the house, and a lot of incidentals, so yeah.
SPEAKER_03Yeah, so and then you said uh repair estimates around 75, right?
SPEAKER_01Uh that would be bare minimum, bare minimum, yeah, yeah. I mean, to get somebody in a very you know, functional living, you know, nice to rub, um, furnace. I'm guessing furnace probably what six, seven grand.
SPEAKER_03Yeah. And uh the ARV, meaning like the retail price you think it could sell for when it's fixed up. What did you say it was? It was uh four, was it 450 or 400? Something like that, or what do you think?
SPEAKER_01I I'm sorry. Um, could you repeat my wife for kind of barking at me?
SPEAKER_03Oh, you're good, you're good, man. Uh I'm saying, well, what did you say it could sell for on the market once it's fixed up? What what was your thought process?
SPEAKER_01Well, it depends on how far you want to go.
SPEAKER_03Assuming I assuming I'm maximizing the value out of it, 2026 standards.
SPEAKER_01Um God, that's such a subjective question.
SPEAKER_04I know.
SPEAKER_00It is a subjective question, and and we've beaten this dead horse. Like we've been there, it's okay to ask once, but man, we're really hammering home. Julius at some point in time is gonna step up, be the real estate professional, and be like, listen, I'm digging these numbers. He said 385. I mean, based off of everything that even Julius's own words earlier were 400 to 415. I just I don't like how we're going back to the same things here. Julius really isn't kind of taking the the reins here and starting the education process. He's leaning too much on the seller educating him off of the neighborhood and his operation. We understand the seller's dot process at this point. He already told you he thinks $750,000 is the after-repair value if you put $200,000 in repairs. Like we have already been explained that he thinks it's worth that. It's the best lot with the best view on the lake. So at some point in time, you're gonna lose the seller if you just keep repeating yourself and asking the same questions. That the guy's telling you, like, I'm giving it to you $250,000. He already told you $385,000 would have been the cheapest house on the lake. He's telling you he's wanting to accept $250. We better start exploring whether or not that $250 number can work or somewhere around it, because otherwise, we're gonna lose this man. We're gonna lose the seller here in the next few minutes if we don't start making some moves as to like, hey, as the real estate professional, this is what I could do for you. I know.
SPEAKER_01I really don't know. I mean, I you know, I could shoot some pictures and send it over to you.
SPEAKER_03Yeah, I would probably want to ask pictures from you. I think honestly, I could probably get it. Um I I feel like I could sell it for around 450. Um, over overnight.
SPEAKER_01I mean, overnight.
SPEAKER_03Yeah. Well, uh, let's see. I know you said 250. Let me see if I could do. I mean, honestly, I'd be a lot more comfortable at that 225 to be truthful with you. Um, I mean, I'm is there any way we can split it down the middle?
SPEAKER_01Well, I uh sir, like you say, I I would talk to my brother, you know what I'm saying? Yeah, this is all all very new, so I don't even want to, you know, lock in the numbers or anything like that at this point.
SPEAKER_02Yeah.
SPEAKER_00I would I would explore that. Like you and your brother haven't talked. Is your brother available? I'd love the opportunity to talk to him about that. Uh, we we've gotta kind of explore that objection a little bit here.
SPEAKER_03Yeah. Um what is the I'm actually curious, what is it that you need to talk to your brother about?
SPEAKER_01Just the price, or what's well he's he's uh he's half owner. I mean, you know. He's what yeah, that's technically um legally the executor, but um, but he's my brother, he's blood and half owner, so you know, I wouldn't want to overstep that.
SPEAKER_04Yeah, break up our that totally makes sense.
SPEAKER_01I could probably beat the shiv out of them though if I had to.
SPEAKER_03Yeah. Uh but but
Explaining The Offer And Wholesaling
SPEAKER_03uh but listen, man, uh I mean the 250 is is pretty tight uh for me as an investor, but I don't I don't know if I can make that work or not. Um, I'd be more comfortable toward or closer to that 225 number, uh, just to be completely transparent with you. Um and let me explain to you how my process works just so you guys can you know get an understanding of what it would look like. Basically, I would send you a two-page agreement on uh on a purchase price. Uh once you get that signed, uh, we're gonna open title. Uh I'm gonna send my guys out there to come do our due diligence and make sure the condition is roughly what we talked about on the phone, um, make sure that it's within our budget to to perform. Um, and then once everything looks good, we'd be good to close on that agreed purchase price. And uh typically it takes us around seven to ten days max, uh, whether we can move forward with it or not. Um, if the condition isn't what we talked about, then I gotta renegotiate with you and say, hey man, I gotta be lower than that purchase price.
SPEAKER_00He was doing a really good job of this explanation, but I don't like renegotiate. We need to revisit, right? We we don't want to talk about negotiating or renegotiating. Um, those are those are taboo terms, those are scary words to use with sellers, so we want to avoid that.
SPEAKER_03It's pretty cut and dry. Um that's just uh how I work. Um, and just to be even more transparent with you, um Corey. Um I am a wholesaler. Um do you know what that means?
SPEAKER_01Um kind of like the bargain.
SPEAKER_03No, no, so essentially, I'd be getting so once we you get that signed uh for an agreed upon purchase price, I'd be uh marketing that to my private network of buyers to see uh uh if they would uh pay more, and then I would get the difference. That's how I make that's that that's my exit strategy as an investor, and uh I I'm always honest with this to sellers up front, and um, that's something I really value. And you know, obviously I do want to help you out. Like um, I am a people, I'm people first, real estate second.
SPEAKER_01So yeah, I can tell just by talking to you.
SPEAKER_03Yeah, man. Uh uh yeah, absolutely. And yeah, typically again, it takes me seven to ten days max to get buyer feedback. Um, usually by the 11th or 12th day, if um they're they're not biting, then um then we'll have to go a different direction or renegotiate price, all right?
SPEAKER_00Okay, I don't like putting time frames of seven to ten days. I don't like putting uh the language renegotiate in there. Uh the only thing that I would say there, Julius, it wasn't terrible uh explanation of wholesaling. I just felt like it was a little bit awkward and you felt a little bit uncomfortable saying it. Where I would like to see that that confidence come out in you. Like, all right, Corey, let me explain. Like, listen, I'm not gonna be able to take this deal down. This is not what I'm looking to do. But what I can do to support you and your brother is I can wholesale this property. And let me explain what this is. We come to an agreed number, say that's 225, which is what I feel like I need to be at. That number's net to you guys, and then I'm gonna go present this to my flippers and my landlords, my network of buyers, and I'm gonna get this deal moved for you. So it has no impact on you whatsoever. It's just this is my exit strategy. A little bit more confidence. You were kind of even your body language, like your head was down, you're kind of scratching your nose. It was almost like you were a little bit embarrassed during that moment. So I'd like to kind of see you kind of step up a little bit, like chest out, like you're proud, like, hey, this is what I could do for you, Corey. Like, we just did this entire 30 minutes of discovery of like your situation, your story, your pain, like everything that you had to go through. Have you ever gone through getting a HELOC on your house so you can pay off debt on your dead father's house that he owned for 30 years? What a pain in the ass. That's pain. He wants that gone. He has debt now on his house and his brother's house to pay this off. Like they just want to be alleviated of that pain right now. And so, Julius, be confident in the fact that you are the solution at that point. That's why he shared all this with you. So I would have liked to see just a little bit of different tonality and and just that body language, it conveys through the phone. So be sure that you're you're being confident when you're relaying that you did a really good job of like the reverse or pour section, but then when you got to the transparency of the wholesaling, uh you you kind of you weren't you weren't there on that. That felt a little bit uncomfortable. I like the saying, like, hey, I'm people first, real estate second. He agreed. He was like, I could sense that by talking to you on the phone, but I really want you to, you don't you don't have to say that. You almost kind of want him to say that in response to you being transparent about being a wholesaler.
SPEAKER_03Yep, yeah, man. Um, yeah, man, talk to your brother. Um, do you know how long how much time you need to to kind of well also would have loved to have seen you here.
SPEAKER_00Ask if you could be a part of the conversation with the brother. Like, hey, is it is it possible that we could call the brother on three-way? I'd love the opportunity to be able to kind of talk to him about the solutions that I can provide, what that timeline looks like, and just see if this would be a good fit for you guys. You want to be a part of that conversation if they will allow it.
SPEAKER_01Um, well, to be honest, uh, Julius, we've um we have a land freezer or a brush, whatever you call them that sort of comes through. Um, I mean all that overgrown tree and brush. So you just got a fantastic view of the lake. And that's on the 22nd. So I mean, there's no rush. I mean, we're not, you know, he doesn't even have a sign on the front yard yet.
SPEAKER_03Right, right. Yeah, but just to I mean, I would really love to be under that 250. Um, just that's just I'm just being honest with you up on that. Um, it is tight for me at 250. I'd be more comfortable around that, you know, 235 to yeah, 225 to 235 range. Um okay. So what I can't what I can do for you is uh I can go ahead and send you that contract. You don't y'all don't gotta sign it right away, just to just so you guys have a better understanding of how my process works. You can go over the contract with your brother. Um, I can put 235 for now. I can always you know change the price and negotiate with you again on that. Um just so y'all understand. So is that is that okay with you?
SPEAKER_01Well, yeah, I mean it can. I don't think we're to that point, you know what I'm saying? Um, I mean, we we know the numbers, I don't think it's necessary really to give an each agreement out or you know, and contracts. Yeah, I just you know what I'm saying, I don't want to wait.
SPEAKER_02Absolutely, absolutely.
SPEAKER_03Yeah, but look, man, um I it was a pleasure talking to you. Um, look, man, if uh anything changes, keep me updated, save my number. My name is Julius, and uh uh if y'all come to a decision, I hope I'm the first in line because I am interested in the property and and uh I want to help you guys out.
SPEAKER_01So hey man, it was a pleasure talking to you. It really was absolutely yeah, man.
SPEAKER_03And you have a blessed day, okay?
SPEAKER_01All right, you as well. Thank you very much, sir.
Post Call Breakdown And Better Next Steps
SPEAKER_00Okay, all so much work to get to the in, and and we we fumbled the bag there, Julie. It's like you gave up on yourself, you gave up on this. Uh, there was multiple times during the call, especially there at the end. You made this about you and not about them. He tells you, hey, on the 22nd, we got this guy coming out, they're gonna fix the beautiful view, they're gonna get rid of all these trees and these obstructions. And you're like, well, yeah, like I said, I want to be below that 250. What are we talking about? Why is this about you right now and it's not about them? Oh, so you're investing even more money into the property on the 22nd? What what if you didn't have to do that and I just bought it as is? Because I I don't really want that to be done. You want to talk to your brother. I would love the opportunity to talk to your brother because the translation, you know, you played the phone tag game before where you know I say one thing and then you're gonna go tell your brother, and then your brother's gonna go tell his wife, and then it mistranslation every single time. So I want to make sure that I can talk to both of you to truly explain what my offer is and how it can be the solution to solve y'all's problem. Because what you told me was is you just want to be done with it, you just want to be out from underneath it. You need to break even at 225 because you took out the HELOC, you invested all this money into it. Then you want you and your brother to profit off of this. Here's the solution that I can provide you. I can go under contract with you guys for say 235. We're gonna go present this to all of our in buyers. We're gonna know where every single investor in the area, all the flippers, all the landlords, what they're gonna be willing to offer for this property. And then I can bring that back to you. And if we're good at the 235, we can move forward. But if I need to come down, guess what? You're gonna have all of the feedback from all of the in buyers, all of those investors, not just one, and you don't have to do that. So why don't we schedule a time? There was no scheduled follow-up here. So, what does this do, Julius, to you in the long run? Because this is deeper than just looking at this one call. This call tells me that your CRM is probably chock full of, I don't know what to do with this lead. What what do you do with this lead? Do you do you kill it? Do you move it to dead? Well, it's not dead. Do you move it to follow up? Probably. But when are you following up? The 22nd, the 23rd? When's he gonna call the brother? He says, Well, we're not in a rush. What do you do now? And if it happens on this call, what's happening to all of the hundreds of other leads that you're dealing with on a weekly basis if they end like this? We have to come to a resolution to what is the next step. That's your responsibility. You either get to a no, you get to a yes, or you get to a scheduled follow-up for a specific reason. We did not accomplish any of that on this call, but yet we dedicated 30 minutes of our time. This is why I despise vanity metrics and KPIs, talk time, dials. Some people would say, Well, Julius dedicated 30 minutes of talk time on this one. That's fantastic. He even made an offer on this one. I don't look at it that way because I look at it and I say, I don't know how we make money moving forward off of this conclusion of the call. What is the direction that we're headed? So, Julius, we got to tighten that up, right? Come to a resolution and a conclusion at the end of each one of your calls. And then also, you got to avoid making this about you. You gotta keep it on it's about the seller, it's about their situation, their motivation, the pain, the problem, everything that they're resolving, and how you are the solution. At some point in times, I felt like you even shifted it to where you wanted the seller to be the solution to your problem. Now, this is common. This isn't like uh you're the only person that ever does this. Many of you watching this video probably do this on your seller call. So it's important for you to understand this that you cannot shift your problem and your business, your desire to want to get a property under contract and an appropriate price onto the seller. Because what happens is the seller says, I'm gonna go find somebody else. I don't think about how his mentality shifted. At one point in time, he was saying, Me and my brother just want to be done with this. We want to be alleviated of the situation. And then at the end, he says, There is no time rush. We're not, we're not under any pressure here. He went the opposite direction that you wanted to go. I think that was in response to some of the your responses. I thought you had some beautiful moments with some of the open-ended questions that you asked. Would have loved for you to stay on topic a little bit more. We're getting there, Julius. We're getting there. It's just a couple things that we got to clean up, right? More reps, more experience here. And then also when you watch this, I think you're gonna be able to identify and see like, why would I have asked that question instead of staying in the pocket and staying on the pain and the problem and the open-ended question that I could have asked, instead of going to silly things like bed and bath count, square foot, year built, roofs needing to be replaced. What about the foundation? There was things that we didn't need to ask, and what honestly were completely irrelevant at the end of that conversation, where everything that was relevant was about the seller, the pain, the problem, and the solution that you provided.
Community Shoutouts And Wrap Up
SPEAKER_00So everybody show Julius some love for submitting this call, for putting himself out there so you guys can improve in your business. Julius, thank you for putting this out there and asking me to do this. That was a quick turnaround. That was like a 24 hour turnaround, baby. You submitted this. We got it right out there on YouTube. So thank you, Julius, for doing that. Show Julius some love in the comments. Make sure you like today's video. We'll see you guys tomorrow.