What Made Me Pitch Seller Finance??? LIVE Seller Call

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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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With over 4,000 Videos, this is the #1 channel on YouTube for all things Virtual Wholesaling. SUBSCRIBE NOW!    https://www.youtube.com/@RJBatesIII

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Transcript

The Hedgehog Concept Explained

SPEAKER_02 0:03

So you guys know me as the hedgehog concept guy. The guy tells you, hey, you need to pick one thing that you're going to be great at, right? So our hedgehog concept is nationwide virtual wholesaler. Now, sometimes I get beat up in the comments because it's like, RJ, that means you're not doing novations, you don't flip houses, you don't have rentals. What about sub two, seller finance? Now, I've always said, I don't think you shouldn't be doing those. I'm just talking about when you're getting started. Hey, you need to leverage the fact that there are other people out there that are experts with these either acquisition or exit strategies. Now, what you guys are going to see after this introduction is a live seller call where I pick seller financing to the seller. I want the seller to finance this property to me so I can keep the property as a rental. Now, the reason why I offer this is not necessarily because of what I need, it's actually because of what the seller tells me her motivation is and what she's trying to accomplish with the sell of her real estate.

When Creative Finance Makes Sense

SPEAKER_02 1:20

She's looking to move down to her ranch in Mexico. She's looking to retire. She has this property owned free and clear. She paid for it in cash. She doesn't really need the money. She just wants to sell this asset and move down to Mexico and live at her horse ranch. Okay. There are some triggers during this conversation. One, she owns the property free and clear. Awesome. That means sell her finances on the table because I don't have to try to do a wrap. Okay. This isn't, I'm not involving her mortgage company and doing all that. It's own free and clear. She doesn't need the cash for the seller anything. She already owns her horse ranch down in Mexico. Then also, she's looking at retiring from her job. Okay, so if she retires from her job, she doesn't need money to buy her next property. Well, wouldn't it be nice in retirement to have monthly residual income coming in from a seller finance note? Okay, this could be the solution to her problem, to what she wants to accomplish. Now, once I pitch the seller finance to her, I want you guys to understand it. I don't talk about the interest rate, I don't talk about down payment. I just literally go into this is what I would need my monthly payment to look like so it could work for me on my end. What are you thinking about $750 a month every single month for the next 30 years? That is essentially how I break down and kind of pitch curve on the seller financing. This is not going outside of my hedgehog concept. I could still absolutely wholesale this to someone that would be a landlord down in San Antonio. I could also decide that, hey, my rental company that we do own rentals, that could be an asset that we're adding to that portfolio. That is separate from my wholesaling organization, Titanium Investments, which is a hedgehog concept of nationwide virtual wholesaling for that individual business. I've always said, I don't think you should never do wholesale or never do flips, never do rentals, never do creative finance. You just have to be in a position to where, if you decide to start a new business like owning rentals, your wholesale operation better be in a place to where it can run on its own. Your rental company needs to have its own SOPs, its own structure, its systems and processes to be able to run. Those were the mistakes that I made back in 2018-2019 when I got heavily into flips and rentals and Airbnbs. We didn't have SOPs. We weren't in a position to be trying to run multiple different companies. And so because of that, we failed. So during this live seller call, pay attention to the questions that I ask that draw the motivation out. What is the seller trying to accomplish? Then also pay attention to how I present the benefits of seller financing to the seller. Enjoy, let me know what your takeaway is in the comments. We'll see you guys tomorrow.

Live Call Setup And Context

SPEAKER_02 4:58

Gotcha. I did a property at 221 Carolina Street.

SPEAKER_00 5:03

Oh yeah, that's just a big street. Now that's the exit. There's Florida, Carolina, one is one way, the other the other way. So I'm right inside that La Vaca Historic District is where that one was. And it was it was the home and two lots that I owned behind it. So well the lot to the house, the yard, which was huge, and then those I owned a lot behind that. So I just took out the fence and fenced the whole thing. It was like something like 60 by 250 in terms of 250, maybe I don't even remember, but it was a lot, it was a lot for me.

SPEAKER_02 5:53

So this house, I mean, I'm I'm taking a look at the pictures when you bought it. I mean, it it still looks like this.

SPEAKER_00 6:00

The the other branch?

SPEAKER_01 6:02

Yes.

SPEAKER_00 6:03

Oh yeah.

SPEAKER_01 6:07

Looks awesome.

SPEAKER_00 6:09

It it's a it's a very cool little house. And the only thing um the yard, I mean, it's kind of dry, but we're just getting back into spring. We'll start watering it. But it's a it's a free little house. Um and um I'm just trying to figure out what's next for me, but I have no idea. You know, I was um maybe TikTok is wrong by you guys.

SPEAKER_01 6:38

Okay.

Seller’s Situation And Retirement Plans

SPEAKER_02 6:40

I love it. It's good to know that the uh the ads are working correctly.

SPEAKER_00 6:46

Uh friend of mine is selling her house right now. She's filling her house in downtown San Antonio.

SPEAKER_02 6:56

Is it ugly?

SPEAKER_00 6:59

No, it's been renovated.

SPEAKER_02 7:03

I like it when they're ugly.

SPEAKER_00 7:07

I'll tell you a story about the lookup 407 Divine Street. That house, when I bought it, my son's uh friend trying to have a film company, and he filmed an old film in that house. And then after I renovated it, uh Horsfield Church here in San Antonio filmed um spiritual film, like a like uh they had diapers and they used my porch and they paid me. It was really cool because they had some guy out there looking for albums and he really liked my porch and he's like, Hey, I want to we want to film here, it'll take us about a week. And they paid me like 500 a day.

SPEAKER_02 7:45

Oh that's awesome.

SPEAKER_00 7:50

So yeah, the scary out that I moved into it.

SPEAKER_02 7:55

Right. So realistically, I mean, with your your property, I mean, it's it's in such good condition, and it's it's so new. I mean, as an investor, there's not much I could do there cash offer-wise. I mean, it doesn't sound like you need the money though. I mean, uh, would you be open to to taking it in payments instead of just one lump sum?

SPEAKER_00 8:20

What kind of payment?

SPEAKER_02 8:23

Uh well, that's the beautiful thing about seller finance is that uh it's all negotiable. So it kind of just depends on what what you're looking for. Um realistically, if we wanted to keep this long term as like a rental ourselves, um I would need it fairly fairly cheap, um, like

Offering Payments Instead Of Cash

SPEAKER_02 8:45

somewhere in the range of like $750, $800 a month.

unknown 8:49

Yeah.

SPEAKER_00 8:51

Let me look, let me think about it. I I'm not I'm not in a rush. I'm I'm not but I'm gathering information. I mean in my job right now, I make very good money and I'm I'm not hurting in any ways, but just you know, look at my options and trying to figure out you know what's next for me.

SPEAKER_01 9:13

Right.

SPEAKER_00 9:14

I don't want to get myself because it all has for me, it's about timing right now, and with all these changes in the federal government, I work for the government. I make like $150 a year, and I don't have really any bills of my truck payment.

SPEAKER_01 9:27

Right.

SPEAKER_00 9:28

I'm trying to get myself to that place where um I can walk away from comfortably because the whole the ranch has and make people have to help them. This money will go from for me to live out the rest of my life or travel or whatever I'm gonna do. My pension here from the government. So you know I'll be ahead of myself, but I just have no idea about the options, you know. So it wanted to know in a real chart because you think well, you know, he lowered his commission because when he when I told the other dolls he got his commission, he got a good commission. But then I tried to talk to him about hey, you're gonna help me buy another house, and I found his house, he didn't find it, but um, and then you know, he's like, Yeah, you know what, I'll lower my commission, but I don't know. You know, I'm just looking at options. It it pains me to pay that much money out.

SPEAKER_02 10:28

So the benefit with uh with this, what I'm offering you would be one, there's no realtor commissions, there's no closing costs or anything to you. Two, um, it would kind of alleviate some of the tax burden on you as well. Because instead of you getting capital gains on 269,000 or whatever that looks like, um you wouldn't get that because you're gonna be getting it over installment payments. Well, this that's $750 would be over the course of 30 years. Now, of course, we could always put a balloon on there if you didn't want to wait the full 30 years. I would doubt that

Balloon Terms Tax Benefits And Risk

SPEAKER_02 11:05

we would end up owning it for the full 30 years, anyways. Um at some point in time, we would probably want to that wouldn't work. So what we could do there is say it's uh on a 30-year amortization, like a normal loan, and then say, but there's a 10-year balloon. So then inside of 10 years, we either have to refinance or sell the property or pay you off in cash.

SPEAKER_00 11:32

Okay.

unknown 11:34

Okay.

SPEAKER_02 11:35

So that way, that way you get some money every month, um, but you don't have to worry about it's not like a rental property. Think about it from the perspective of your Chase Bank, you're the mortgage. So you're you would go in the first lien position as the the lender. So if something breaks on the property, that's not your responsibility, that's ours.

SPEAKER_00 11:58

Okay. Well, let me case what what's gonna happen is I'm at 20 years here with the government, and I'm trying to figure out we don't know if they're gonna offer us a buyout or if they're going to say, hey, those of you with 20, you gotta go, or what? So that's what we're kind of waiting on right now.

SPEAKER_01 12:20

Gotcha.

SPEAKER_00 12:21

And and I that's why I'm kind of like, I'm not panicking because I'm okay. My house paid off, and I don't gotta worry about it, but um, just trying to figure out the tax burden isn't too high on that house. I was paying, I think, almost 12,000 at the downtown house per year. Right, maybe something like that. And this is not too bad, but I'm just trying to look at my option. I have no idea that was even an option, which is something I could consider. Um, but that means you know, moving out of the house and and paying rent somewhere else until I'm decided, you know, okay, it's time to retire and I can move on. We're all just kind of waiting here, some little waiting game about what they're gonna tell us is next that we've got to do.

SPEAKER_02 13:10

I mean, technically speaking, that's not that necessarily the case. I mean, we could totally wait until you're ready to move out.

SPEAKER_00 13:21

But then how does that work?

SPEAKER_02 13:24

Well, I mean, how long do you think that's gonna take before you find out what's gonna happen with your job? I mean, you think that's a 60-day thing, a 90-day?

SPEAKER_00 13:36

I think 60 days. I think they're gonna come up with something because they're they're cleaning up all these government departments, you know.

SPEAKER_01 13:44

Right.

SPEAKER_00 13:45

And I we're I work for the Department of Veterans Affairs, so they're really not messing with us too much, but they have taken out departments from where I'm at right now, the whole department, like whole whole area present. So and I'm a social worker, so I'm considered um essential personnel, but um we don't know that as also Bossi been my supervisor, she's been here 20 years, she's like, hey, just hold tight. We'll we'll let y'all know as soon as we know.

SPEAKER_02 14:16

Gotcha. So the way it would work would be um

Timing The Closing Around Her Job

SPEAKER_02 14:20

we could just wait to close until 60 days, or until you're like moved out, you know. I mean, whatever that looks like.

SPEAKER_01 14:29

Okay, I think.

SPEAKER_02 14:30

Yeah, it doesn't have to be an instantaneous thing. I mean, think about it. When you bought your houses, well, I don't know, you bought this with cash, so it was probably pretty close, but you know how it goes. I mean, it takes two, three, four weeks, anyways.

SPEAKER_00 14:43

No, no, it went it went pretty quick.

SPEAKER_02 14:45

Yeah, because you were cash.

SPEAKER_00 14:47

Uh yeah, it was cash and and uh it was on the market for 11 days when I bought it.

SPEAKER_02 14:52

Oh yeah, you you got it quick. But we can we can schedule the huge little house. Right. So we can schedule the closing date whenever then. So preferably it would just be like, hey, let's close the day after you move out.

unknown 15:07

Okay.

SPEAKER_00 15:08

So but then so if I were to take the monthly check, then it would be it would start when we when we close, right? Right.

SPEAKER_02 15:20

And then so we would just make that first payment to you on that closing date.

SPEAKER_00 15:27

Okay. And then let me think about it and um and uh I'll save your number.

SPEAKER_02 15:36

So this is this phone number is my office line. So my company is titanium investments. That's the actual company name, not what you saw on TikTok. Um we're based out of Fort Worth, Texas. And the phone number is 817 710 8689.

SPEAKER_01 16:03

My name is RJ Bates. And um Alrighty Adrian.

SPEAKER_02 16:21

Well, I appreciate you giving me an opportunity and listen to my creativity and let me know if it sounds like something that would work for you, okay?

SPEAKER_00 16:32

Thank you, RJ. You have a great rest of your day.

SPEAKER_02 16:34

You too, bye-bye.

Quick Debrief And Takeaways

SPEAKER_01 16:40

Good conversations.

SPEAKER_02 16:46

Everyone's gonna be like, RJ says don't do creative finance. Here I am doing sub two and seller finance. Well actually two versions of seller finance. I'm surprised you guys haven't been beating me up in the chat.