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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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Transcript

Why Share This Seller Call

SPEAKER_03 0:03

All right, today you guys are gonna get to watch a live seller call from a couple weeks ago during my Tuesday lives with Jerry Norton. This was a lead that came to us from Red Panda. It was a Metro lead, so $100 price point for this lead. It was in Indiana, and the seller actually calls me back from me leaving a voicemail during the live. So I kind of interrupt Jerry at the beginning. I'm like, hold on, I'm getting a call back and answer. And the situation with the seller is that he was previously undergo actually during this conversation, he was actually under contract with another wholesaler. But the wholesaler had ghosted him for 45 straight days. Now, he's very transparent as a seller. He tells me about the situation that's going on with this other wholesaler. He even explains to me that hey, the mobile home that sits on the land is in really poor condition, probably needs to be torn down. Honestly, I just need to sell this for land value. Now, I'm able to offer him five thousand dollars for this, and this is not going to be a big assignment fee, but I'm wanting to share this call. One to kind of showcase how to overcome the situation when someone is essentially getting screwed over by another wholesaler. Also, to give you guys an update on what happened with this call, because I don't get a signed contract during this live. We end it where it's like, hey man, you've got my phone number. If you need my help, you can call me. Well, guess what? He calls me and he's like, dude, I need your help. I'm in a bad situation. My landlord needs rent. I was anticipating paying the rent with the proceeds from this closing because, well, we were set to close on Tuesday and it didn't happen. So I really need to make this transaction happen quickly. Now he does counter me. He countered me to $6,000, and the conversation was completely transparent. I said, listen, man, I can send you a contract for the $6,000. I think I need to be at $5,000. But what we will do is we will go out, we're going to wholesale this property, we're going to get buyer feedback, we're going to come back to you and we're going to let you know whether or not we can move it at $6,000 or if we need it at a lower price. Are you okay with that? If so, I'm going to send you the contract. So we send them the contract, we got it signed. We're doing recon. We're currently in dispositions. Now, the reason why I wanted to share this with you is because this is not going to be a huge assignment fee. It's not going to be a monumental moment for us. In fact, we're probably going to have to do a lot of legwork on this to make any bitty assignment fee. And some people would look at that and say, RJ, isn't that not worth your time? Isn't that making your wholesale operation inefficient? One of the aspects of running a nationwide virtual wholesaling organization is that we need to build buyer relationships. The following Tuesday, Jerry and I go live with property leads. I call a lead in Indiana. I get it signed right then and there. We were able to dispo that from sign from the time I got the lead to the time the signed assignment got signed was four hours. Okay. Now, how were we able to accomplish that? It wasn't because of investor lift or investor base or any of the disposition softwares. It was because we had a relationship with the in buyer already. How did we have that relationship with that end buyer? Previous deals that we had under contract. So every single time that I get a property under contract or we get a property under contract, it opens up that opportunity for us to establish relationships with new buyers. So this deal right here, despite the fact that it's not going to be a huge assignment fee, it is an opportunity for us to strengthen our dispositions, abilities, our relationships with those end buyers. We are now speaking to buyers that we previously had never spoken to. We're understanding what they're looking for, we're getting their feedback, we're learning more about the market. And I do think that we inevitably will be able to display this deal. It's just not going to be a ton of money. We'll be, I'll be honest with you, we'll probably break even on this deal. But what about the next one that we get in this city in Indiana? That one, we already will know who our end buyers are, who we should be reaching out to, what their buy box is, what they're specifically looking for in their deals. So this is an opportunity to not only strengthen our buyer relationships, but also help this highly motivated seller out. And to me, that is a foundational element of building a successful long-term nationwide virtual wholesale operation.

The Seller Calls Back Live

SPEAKER_03 5:24

So enjoy this live seller call. Let me know what you guys think in the comments. Hold on, I'm getting a call back.

SPEAKER_02 5:33

Done deal. Hello, this is RJ.

unknown 5:38

Yeah.

SPEAKER_03 5:40

Hey Joey, this is RJ Bates. That's Combatch property there in Petersburg. You are uh I think you were looking at selling that. Is that correct?

unknown 5:49

Yeah.

SPEAKER_03 5:50

Fantastic.

Property Condition And Land Value

SPEAKER_03 5:51

How much are you looking to get for it?

SPEAKER_02 5:54

15 if I can.

SPEAKER_03 5:57

Fifteen. Alright, well tell me a little bit about what you got going on.

SPEAKER_02 6:01

Um basically it's the property. There is a whole barn there that kind of needs to be torn down. But a lot of people say, you know, white wood and sex. But the trailer itself, in my opinion, either gut it's doing it or just replace it, period.

SPEAKER_03 6:22

What uh what year is the trailer?

SPEAKER_02 6:26

Eighty six, I believe. Okay. I read some cores, but there's yeah, it just it it's like you know, two place one, it's another two by seven, it's another one. It's like all the way and redo it or just remove it, period and somehow.

SPEAKER_03 6:57

Are there any new builds going on around there or any new trailers being put on these lots?

SPEAKER_02 7:05

Well, I l I live where it's at is like in a horseshoe, and I live on the bottom bottom, and right now there's just an property at the bottom. There's people that have a record field. There's people that up there, and not really knowing the field or anything. Uh right across the road, they're alert about years ago, and it's just sat there, they've not done anything.

SPEAKER_03 7:44

So what was this for you? Were you living in it or what what was the deal?

SPEAKER_02 7:49

Yeah. And we moved because I got closer to my job. It's like, all right, I'll stay with that. Okay.

The Ghosted Contract With Another Wholesaler

SPEAKER_02 8:15

That sounds like a realtor. Something is definitely something, right?

SPEAKER_03 8:21

Yeah.

SPEAKER_02 8:25

Wow. That's crazy. So he was gonna list it for you?

SPEAKER_03 8:49

Was he trying to wholesale it?

SPEAKER_02 8:52

I'm not sure what he was trying to do.

SPEAKER_03 8:55

Did it did you sign a contract with him?

unknown 8:58

Yeah.

SPEAKER_03 9:00

Is that expired?

SPEAKER_02 9:03

Yeah, the third would have been expired. Yesterday he didn't find that we had it was gonna be shortly. I don't know. I heard I'm talking four or five a day.

SPEAKER_03 9:24

Right.

SPEAKER_02 9:31

Were you ever in contact with a title company? That's it. Oh yeah, he was wholesaling. She's over here.

unknown 10:05

That's it.

SPEAKER_03 10:13

Interesting. He's the one that came up with 15,000 himself, so so he came up with that price and then it and then signed a contract and then go trusted you.

unknown 10:25

Yeah. Yep.

SPEAKER_03 10:27

I think the reason why is because I think fifteen thousand is too much. If it's if it's really just land and then you gotta tear this down. I mean, that that's just he's probably trying to wholesale it and he can't find a buyer. I mean, that's all you're doing is wholesale. I mean, it's just I do it. It's the same thing. I mean, you gotta get it as a at a deal in order to be able to find somebody that comes along. I mean, at 15, he's probably trying to move it to a buyer for like 20 or 25.

SPEAKER_01 10:58

Okay.

SPEAKER_03 10:59

And so nobody's willing to pay that, and so he he's just not having a transparent conversation with you, you know.

SPEAKER_02 11:07

Yeah, I got all I ask you, you know, just tell me what's going on, you know. I just ignore it personally.

SPEAKER_03 11:15

Right. I mean, I just literally talked to a seller in uh Illinois, and she's got a uh mobile home that she's trying to sell. They want to move closer into town. Almost the exact same situation of what you just did, right? But they they need the money from this in order to make the move. And I'm like, so how much do you need? And so we we reverse engineered it, and it was 16 grand for a down payment on a $160,000 house that she's gonna buy in town. Okay, well, great. I don't know if I can find somebody that would be willing to come in and buy it as an investor for more than that, but I do think $16,000 is a fairly consistent price. So over the next two weeks. Let me put this in front of the buyers, see if they're willing to come through. And if they are, great, go find your house and we can move on. But if not, then I'm gonna tell you. And then we have a choice. We either lower the price or you try to figure something else out.

unknown 12:14

Yeah.

SPEAKER_03 12:14

Pretty simple.

unknown 12:17

That's what we kind of did.

SPEAKER_02 12:18

And you know, you know, so I just listen to what you're saying. So we went and you know, rented a rent a place now, and we owe this landlord money that I don't have now. Yeah, yeah, he put us in the real fast spot. I think he knows it, and that's what you might answer, but still that's not the way to go to do business.

SPEAKER_03 12:42

So you you were gonna take some of this money to pay like the rent?

SPEAKER_02 12:46

Yeah.

SPEAKER_03 12:48

Well, what's gonna happen when this money runs out?

SPEAKER_02 12:52

Oh well, I I work.

SPEAKER_03 12:53

Oh, okay. You just you this is gonna put you in a better spot.

SPEAKER_02 12:58

Yes, and yeah, and then like my car right now, it yeah, since I drive so much, it's a little burnt. So yeah, that wasn't really gonna happen this way. Like when I moved to, it's right on my route, so I save gas too.

SPEAKER_03 13:14

Right. Let me

Zillow Numbers And Real Pricing

SPEAKER_03 13:17

see. I'm trying to look at just the the land around there to to get some land values.

SPEAKER_02 13:23

Oh yeah. Yeah, and realtor.com, it says it values at 80,000. I don't know where they're getting that at. There's no no.

SPEAKER_03 13:34

I can tell you they're they're basing it off of there's other manufactured homes that are in really good condition in that area that are selling in the eighty to a hundred and twenty thousand dollar range. Okay, they don't know the condition of your property. Okay, so it's just an algorithm. So it's just saying, hey, this is what this much land and this size of a mobile home is going for. So Zillow does the exact same thing. It's just honestly, it's very misleading to homeowners because they're like, oh, well, Zillow's willing to pay me 80 grand for my house, and it's like, they're not.

SPEAKER_02 14:15

Yeah, and I seen it, I knew better. I was like, no, I I don't know much about that. And the lady that came and took pictures, she was telling us that there was a sharp scene cover on that that redid a whole home and they ended up getting like working.

unknown 14:38

Yeah.

SPEAKER_03 14:39

Yeah, I mean, I can see that. I mean, but re-habbing a manufactured home, there's few and far between people that actually want to do that, especially if they're older. I mean, it makes sense if like it's some cosmetic updates to like a late 90s, early 2000s. But when you start talking about 80s and 70s, because what I have pulled up says it's a 1979. Um, I don't know if that's accurate or not, but even in the 80s, I mean that's you're you're getting to the point where it's all like you said, it's almost better just to get rid of it.

SPEAKER_02 15:17

Yeah. Yeah, because I I mean you've got a gutted and put all that in there, but it's just the point of my sweet and it's in good shape, and yeah, I have that put in. I d I think about it, but right.

SPEAKER_03 15:32

So your lot is uh fifteen thousand square feet, right?

SPEAKER_02 15:37

Um something like that. I think it's like 0.34. Okay. Like how fast are you needing money? Uh as soon as possible, since this guy did what he did, and it's gonna be real nice.

SPEAKER_03 15:57

And he's just ignoring you? Yeah, yeah, and it was supposed to close yesterday.

SPEAKER_01 16:03

Yep.

SPEAKER_03 16:04

And you've never spoken to a title company.

SPEAKER_02 16:07

No, only you see, like I you know, so I just don't know what he was saying.

Contract Risk And Fast Cash Needs

SPEAKER_03 16:21

Cause see the issue is is that I mean, technically speaking, you're you're still under contract with them. I know it expired yesterday and it was supposed to close, but like almost every contract has some sort of language in there where there's some sort of extension or something like that.

SPEAKER_02 16:45

Oh see, I yeah, I I didn't know that either. I mean, but I don't know what to do because I won't answer. What's his name? Well, I don't know.

SPEAKER_03 17:05

I that doesn't ring a bell. I know a lot of people. I mean, I I train people on how to do this, so I was like, if I know him, I'll just call him and be like, bro, get out of the way. Um, let me show you how to do this.

SPEAKER_01 17:18

Yeah, I think he's from like Florida or whatnot.

SPEAKER_02 17:21

But the lady he had tried to take pictures was from around there. It's like right there, but let me see if her comment.

SPEAKER_03 17:39

Yeah, he probably paid her a couple hundred bucks to come take pictures or something, you know.

SPEAKER_02 17:45

Oh yeah.

SPEAKER_03 17:46

She probably wasn't even a part of it. Um, I just don't understand why he told you 15,000. I mean, he had to have thought that this. But you told him like the the mobile home is not in good condition.

SPEAKER_02 18:04

Yeah when I was speaking to him the first time, he was actually checking on the internet on prices and stuff like that.

SPEAKER_03 18:12

But you didn't tell him, like, dude, I think you should rehab this mobile home. Because I could see how he could think 15,000 would work if the mobile home could be remodeled.

SPEAKER_01 18:22

Yeah, and and no, I I thought he was how it was, and he's like, well, everything kind of got about you know, maybe not cheap for someone else.

SPEAKER_02 18:31

I don't know about that. I think yeah, okay.

SPEAKER_03 18:36

Like realistically, like ignoring the fifteen thousand, because we gotta we gotta act like that's not a a reality.

The $5,000 Offer Explained

SPEAKER_02 18:44

Um how much money do you need in your pocket? Pretty much as much as I can get, but right now I I'm not gonna be real tricky, I guess. I can't pretty much can't.

SPEAKER_03 19:08

Because there's there's lots around there that are smaller that sold at five thousand.

SPEAKER_02 19:18

Yeah.

SPEAKER_01 19:25

But you know, that's because he bought the lot next to it, too.

SPEAKER_03 19:29

Right. And so yours is a little bit bigger, but then we also had to get rid of the the mobile hall.

unknown 19:37

Yeah.

SPEAKER_03 19:38

So like that costs money. Whereas he this other guy was saying, well, there's value to it. It's almost like, well, not if we're getting rid of it. If the play is to just get rid of it and put something else on there, well, then it just costs money. There's no value, there's only value if you're rehabbing it. And so it's almost like we're we're trending closer to that five thousand dollar number than we are anywhere close to that fifteen thousand dollar number.

SPEAKER_02 20:09

Uh how much? That five thousand dollar number. Oh, yeah, that's really low.

SPEAKER_03 20:18

Because if I'm gonna come in and I'm gonna wholesale it, I mean I gotta put in a margin for myself as well. So if I'm say I'm at five with you, and maybe there's somebody that's willing to come in and seven, eight, nine thousand dollar range.

SPEAKER_02 20:36

Maybe. Yeah, well, that now like the trailers cross the road, I think they gave five for that.

SPEAKER_01 20:48

And it's just like a heel and they had it, they had a rough time getting that trailer up in there. I don't even know how they got it up there about flipped it over and everything.

SPEAKER_03 20:57

How was how big is the lot?

SPEAKER_02 20:59

Uh I'm not sure, but it's smaller than mine.

SPEAKER_03 21:03

And how much did they pay for it?

SPEAKER_02 21:05

About five, close to five thousand.

SPEAKER_03 21:08

Right. And that's the issue, is like basically every lot is smaller than yours and it's going for five. Anything that's bigger is like actually just zoned commercial.

SPEAKER_01 21:20

Yeah.

SPEAKER_02 21:21

And I know the like the light bulb there was broke tore down, so they had to replace all that too. Well hold on, there's a house that got built, a new build. Right across the road from me. On Bradfield? I don't know how far away that is. What there is there's um minutes drive and then there's minutes court. Okay. I'm looking at that.

SPEAKER_03 22:10

That's where that minus drive it was on Minute's Drive.

SPEAKER_02 22:15

Mine's on Minute's Court.

SPEAKER_01 22:20

Right.

SPEAKER_02 22:24

A lot of people get confused with that.

SPEAKER_03 22:26

Yeah. I don't know, man. I I just I really think that that it's unfortunate that he told you that $15,000 number. I just I think that's very misleading to you, and and I can totally understand, but I I do think that this needs to be closer to that $5,000 um dollar mark. Um if you're gonna try to move it quickly to an investor. Um but I I think you're also in a potential stinky situation with the fact that they have a signed contract with this guy.

SPEAKER_02 23:06

Yeah, I have when I understand that after the 45 days, that's yeah, and like I said, he doesn't even answer, so I mean to me that's not right. That I should be like breaking the contract right there. Did it say anything on the contract about Ernest money? I don't recall.

SPEAKER_03 23:34

I mean, technically speaking, if he did not close the the majority of time, that is like okay, he's in breach of contract. But he might have a clause in there that protected him.

SPEAKER_02 23:48

Yeah, I I know my sister's just been looking it over and whatnot, and she kind of knows a lot more about it because she's had time to look at it more, and it's been a while. Yeah, a little bit since I've looked at it. I don't know.

SPEAKER_03 24:06

I mean, it it's it's really up to you, man. I mean, like I how motivated are you?

SPEAKER_01 24:12

Are you yeah well see before him I had one guy was offering 10, and then when he called and said that, you know, well yeah, I Right.

SPEAKER_03 24:21

You went with the have you called that guy back?

SPEAKER_02 24:25

Don't know. I lost all their information on my phone. I that's the thing I can't I don't know who it was. You know, hold up now.

SPEAKER_03 24:33

Damn. And see, that's what I would essentially be doing, is like I would I would contract this, same thing with the other guy did. It's just I'm gonna be transparent about it and tell you. Is you know, we we contracted for five, we're gonna go find somebody that comes in and buys it for more than five, seven, eight, nine, ten thousand dollars, somewhere in that range. Um I think honestly, based off of what I'm seeing, the the buyer is probably gonna want that somewhere between seven and eight, which is I mean, we're just dealing with low price points.

SPEAKER_02 25:11

It's just not oh yeah.

SPEAKER_03 25:16

I mean, it it costs me anywhere between fifty to a hundred dollars to have this conversation with you, and then we have to go pay money to do the marketing to find the the end buyers there. I mean, we're I gotta pay my guy to do it. I mean, we're gonna end up walking away, you know, maybe a thousand dollars profitable or something. You know, I mean, it's it'd be more of like, hey, we we could do this to try to help you out if it's if it's really urgent. If it's not urgent and like you want to try to get more money, I can totally understand

Seller Thinks It Over

SPEAKER_03 25:49

that.

SPEAKER_01 25:49

Yeah. Well, uh, let me think about it a little bit because uh I just now got to work and whatnot, and uh yeah, I've been kind of searching all over this all day and whatnot.

SPEAKER_03 25:59

So Okay. Well, you've got my phone number. Uh feel free to reach out to me, and um you know, I if you need to hang out, we'll we'll be willing to do what we can for you, okay?

SPEAKER_02 26:11

Okay, thank you.

SPEAKER_03 26:12

All right, man. Have a good day.

SPEAKER_02 26:14

You too.

Bad Wholesaling And Regulation Fallout

SPEAKER_03 26:26

Is there ever gonna be a live, Jerry, where we come on here and we don't have to deal with a crappy wholesaler that screwed somebody over?

SPEAKER_04 26:35

I mean, that's that's what causes all this regulation, stuff like that.

SPEAKER_03 26:41

That's in a state with regulations already. Yeah. Yeah. It's in Indiana. They they have a a lighter regulation, but it's still a regulation. But this is how we see states go from the light regulations to the the wackadoo extreme ones.

SPEAKER_04 27:04

I mean, how hard is it to just reach back out and say, look, you know what? I gave it my best shot. I can't do it. Um, here, let me terminate the contract. You know what, you know what may even be going on? There might even be a memorandum on that.

SPEAKER_03 27:17

I didn't want to tell him the bad news there. But I I fear that. But you know what, Jerry? The reason why the wholesaler doesn't want to reach out and tell him the bad news is because he was never transparent up front about the fact that he was wholesale.

SPEAKER_04 27:32

Yeah, so now he feels stupid and he doesn't even know how to explain it and all that.

SPEAKER_03 27:36

Yeah, I mean he literally said it yesterday on closing date. Um, I'm in a meeting right now. I look I love it when people say I'm in a meeting right now. Really, you're that busy, you have so many meetings. Just on this closing date, that meeting trumped the fact that you needed to tell this seller what was happening with their their little property. Yeah, I don't think so.

SPEAKER_04 28:00

Yeah, especially, you know, especially at that price point, right? Because I mean, you and I do low end stuff like this all the time.