Don't Fall For This Advice | King Closer Reacts

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What's going on, everybody?
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Welcome to the King Closer Reacts.
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I am the King Closer RJ Bateson III, and this is the series where I'm going to watch a bunch of short videos and tell you how much I probably disagree with their takes.
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Let's get into the first video.
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AI is going to replace 50% of agents in the next 18 months, and the industry is now admitting how it's going to happen.
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Two CEOs at a recent AI summit predicted how AI will replace real estate agents.
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How it's going to work is a buyer is going to go to AI to find the house.
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They're going to use that AI to compare options and then to select an agent.
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It's going to help them then schedule it showing and even secure financing.
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And right now, this is already happening with Leo over at Real Broker.
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And in Portugal, AI has already generated over$100 million in sales in 12 months.
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It's going to get to the point where there won't even need to be a human being involved in the process.
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This is the exact reason why building a personal brand is the single most important thing you can do as a real estate agent.
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Agent entrepreneurship means turning what you already know into content.
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You're then going to focus on growing that audience and begin to make offers to that audience.
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It allows you to create renewable, recurring, and residual revenue in your business.
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You should already be using AI to help you curate content.
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Right now, three to five videos every single week that I post right here are fully curated AI videos.
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We literally just program it with all of my knowledge and then it goes and executes.
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If you're a top agent earning over$200,000 a year and you're not already building a personal brand, comment the word info to see exactly where to begin.
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Okay, so I'm confused by this.
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So AI is going to replace real estate agents.
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AI is basically just telling you what houses you want, how to get lending, and then the agent has to go show the house.
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So the agent's still there.
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The agents were always pretty worthless when it came to finding the houses to begin with.
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I mean, if you've ever bought a house or worked with a real estate agent, all they have ever done is leverage technology that already existed prior to AI and sending you an online portal to all the houses, and then you just manually went through and looked at them and decided, hey, these are the houses that I want to go see.
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And then the agent showed them to you.
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So in reality, has it really changed that much?
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Maybe it made the process a little bit more efficient.
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I don't know.
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But listen, I'm all about AI and we're leveraging it inside of our business every single day.
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But these kind of videos to me crack me up where it's like, it's gonna replace everybody.
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Technology has always existed, it's always improved, and the human beings have always still existed on the backside of what the technology could not take place.
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AI is not going to go open the door for us and show the houses.
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So I mean, yes, it's helping the agents, but I don't think it's replacing very many of them that were already top producers.
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So when someone says, I don't want to name the price, you name the price.
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What you did, RJ, is you said, okay, you asked some more questions, you came back to it.
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You asked some more questions, you came back to it.
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You asked some more questions, you came back to it.
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You were you were going to get that guy to say his number at some point in time.
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He just made it extremely difficult for everybody because why didn't you just tell me it?
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I'm gonna get it out of you anyway.
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Right.
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What was really funny about it is that he actually made it, he insinuated multiple times that his asking price was what he owed on it or what he paid on it, 36,000.
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Yeah, and so finally I was like, okay, I'll give that to you.
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Yeah, he's like, Yeah, but I kind of want more, and I want to hire the realtor and all that, just weird calls when you put it in a short window, but very common calls when you just look at what acquisitions really is.
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And my call, RJ, my call, I said hello.
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She said, I'm Angela, I want 40,000.
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In the first five seconds, she told me her price, and then she had all the reasons why she couldn't do that price.
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Yes.
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But again, every single one of them was because of somebody else.
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It was not because of RJ, it was not because of Jerry.
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It was I had a bad experience with somebody else, and because of that, I now fear that I'm gonna have a bad experience with you.
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And to make matters worse, like kick us while we're down, they were great prices.
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I am so confused why me and Jerry are on somebody else's channel.
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That wasn't our channels.
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Someone just took our video and just posted it.
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Um, so shout out to Key City Capital, whoever you are.
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I have no idea who you are, but thank you for showing us.
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Um, that was a very unique live that Jerry and I had a couple of weeks ago, where every seller that we talked to had had a previous bad experience with a real estate investor, whether it was a wholesaler or someone that claimed that they were an end buyer and then tried to do innovation without disclosing that they were going to list the property on the MLS.
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And it caused a lot of reluctance from the sellers during that live.
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And that's what we're discussing right there, but also getting the asking price out of the seller early on in the conversations.
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Listen, those Tuesday lives that Jerry and I are doing, they seem to have uh personalities on each one of them where it's like there's a trend that comes in.
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And lately, what we're seeing is more and more sellers coming in and saying, You're the second or third person that I'm gonna be working with.
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Like I'm desperate to find somebody that can actually do what they said that they could do.
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And and we talk about this on the channel.
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I mean, just right before I recorded this, I got done talking about how do you build trust with a seller during this past Wednesday's video.
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And it's one of the ways that you can do it is do what you say you're gonna do.
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I know it sounds so simple and it's so cliche, but honestly, our competition sucks so bad that it makes my job that easy is just to tell all of you guys, just do what you say you're gonna do.
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It's really that simple.
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Day one of giving away free wholesaling tips.
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This one formula decides if a deal is worth your time or not.
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The 70% rule.
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If you take your after repair value times it by 70% or 0.7, minus your estimated repair cost, you get your max allowable offer.
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Let's give you an example.
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Let's say if you have a house after repair value is 200,000, times it by 70%, you get 140,000.
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So your repairs are about$30,000.
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Your max allowable offer would be$110,000.
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In that case, anything you talk under$110,000 would be yours.
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Sounds super complicated, it's not third grade math.
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Anything under$110K is your say you talk the seller down to$105, that's five grand into your pocket right there.
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Thank you very much, Paul, for day two.
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So, what's funny about him saying third grade math is during Element 22, our annual event for Titanium University, me and Jerry Norton are on stage, and uh we're we're doing QA with all the TU members, and uh someone asks Jerry, Jerry, why did you choose Titanium University?
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Why are you here?
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And then the midst of Jerry giving me one of the greatest compliments I've ever received, or at least that's what he thinks he's doing.
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Like he thinks he's delivering like the greatest compliment.
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I'm sure for any man that's watching this, you've probably done this with your spouse before, where you think you're saying something really nice.
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Jerry's like, RJ is just the best wholesaling coach out there.
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I mean, there's nothing super complicated about wholesaling.
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I mean, it's third grade math, and he, but he's just really good at it.
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And I'm like, so this is now twice in the past week that I've been told that what I've dedicated my entire life to is just basically third grade math.
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Uh this guy, you know, just day one of him giving wholesale advice.
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He's he's trying to figure it out.
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The the 70% of ARB minus repairs and the maximum allowable offer, uh, we've kind of moved away from that.
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I know Jerry still uses it on a lot of his calls.
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Uh, personally, for me, I think you're just you're leaving a lot of deals on on the table if you don't understand why an end buyer is buying a deal.
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Like 70% of ARV minus repairs is not going to work in certain parts of the United States.
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Uh, case in point, uh Detroit, a St.
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Louis, a Kansas City, a Birmingham.
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Um, it's just not going to function.
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You're going to get your teeth kicked in when you go to do dispositions because not every deal is going to be looked at from a flip perspective.
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There are going to be landlords that look at these.
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They're going to want to look at the cash flow.
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They're going to look at the asset class.
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Um, you know, you could look at thinking you have a banger of a deal in St.
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Louis and get it under contract for 20,000, but there could be 15 deals that are listed on the MLS in the exact same neighborhood for$10,000.
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You also have to pay attention to current market value.
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There's a lot of nuances to company in underwriting.
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So that's a little old school, a little bit outdated.
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And uh day one.
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Good job, man.
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Keep it up.
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I've been awake for 36 hours underwriting wholesale deals, and I now have four properties under contract.
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I've got two key takeaways that I've learned over the last two days.
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One, don't be so hungry for a deal that you forget to screen your buyer.
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Just because they say they want the deal doesn't mean their wallet wants the deal.
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Number two, and this is especially important for wholesaling foreclosures.
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If you can't get a hold of the lead, let it go.
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You're gonna spend 45 minutes on free people search trying to call their cousin, their grandma, and their next door neighbor and their dog.
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And you're not gonna get a hold of them.
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Let them go.
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Foreclosures in August, we're up 42% year over year.
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There's plenty more where that came from.
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That's all I got for day eight.
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Tomorrow I'm gonna try to show you exactly how I've been running these deals and what are some of the cool tools that I've been using.
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So keep an eye out for tomorrow.
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And that's a wrap.
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Why was he up for 36 hours?
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I don't understand.
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What are people doing?
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I'm gonna be up for 36 hours underwriting deals.
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And then he didn't talk about underwriting deals at all.
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Literally at all.
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He talked about a date you're trying to find foreclosures and using free skip tracing on truepeoplesearch.com.
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I don't I don't understand what people are doing anymore.
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I mean, this just isn't 2018.
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Why are we still pretending like it is?
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And why are we working 36 hours straight to go find four deals?
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I mean, hell, Jerry and I are gonna go live next Tuesday, and we're we'll be on live for two and a half hours, and we'll have way more conversations than four.
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Um, we'll probably walk out with more contracts than that, it'll be two hours.
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Um, I'll fuck around for like five hours before it, and then I'll be home before six o'clock that night.
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I don't even understand why people still do it this way.
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Um, just that was a weird video.
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Next.
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Three reasons why you created iSpeed to lead.
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We saw that what real estate professionals want are leads, they don't want agencies, they don't want to run pay-per-click.
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Why would you want to run your own ads?
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You don't want to add an advertiser, you're a real estate guy, and nothing existed to actually give them what they want.
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The whole premise of iSpeed to lead, you log in, and within the next five minutes, you're talking to your next real estate customer.
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And that's what we did, it didn't exist before, and now not only it exists, but we have a thousand leads a day that we delivered this way to real estate professionals.
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That can be more exciting.
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iSpeed to lead for the win.
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Listen, hey, Gene Blinkoff is a pioneer in the wholesaling industry.
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And and for anybody out there that that doesn't like his personality or or how he carries himself, I mean, he is bold, he's audacious, he goes out there and he he says what he believes.
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And um, but I love the man.
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I love the man.
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He he's he's changed the trajectory of our business, our entire community.
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He gives so much to the tu community.
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Um, I mean, they for the past two years, um, iSpeed the lead has sponsored our charity golf tournament.
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Um, and and they're so funny, they don't even really attend it.
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Um, I asked Gene, I was like, why don't you come to the golf tournament, man?
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And he said, because it's for the kids, it's for the kids that are are fighting the cancer, and I'm not doing it to build speed the lead.
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He's just a he's a great human being deep down.
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And I understand that he's had some run-ins with people, but everything that he's ever done has been to grow his business and how he pioneered PPL into the wholesaling space.
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What most people don't know is that he was running an agency to run PPC for wholesalers.
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And he had to transition out of that because, like he said, people don't want to do that.
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They were looking for an easier option, and he gave that to our industry, and now there's a lot more options, right?
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He's got a bunch of competitors, but that's when you know you've done something right, that when you were the first to see something and create it, and then that created competition.
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Um, I'll forever be grateful to Gene and the Speed of Lead family and just amazed at how well um it's been received inside of our industry and how well it's it's changed our business.
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All right, guys, that's our episode of The King Closer Reacts.
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Let me know in the comments did you agree or did you disagree with my takes?
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Regardless, show me some love, like today's video, and we'll see you guys tomorrow.