The Titanium Vault hosted by RJ Bates III

Oh, That's F***ing Adorable | "Buyer" Found Sleeping at Property

• RJ Bates III • Episode 366

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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.

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Speaker 1:

Oh, that's fucking adorable. What's up, guys? Welcome to a new series that we're creating here on my channel, as you can tell by the intro. It's called oh, that's Fucking Adorable man. Oh man, these are the things that happen in business, specifically wholesaling, that just make you scratch your head and be like what, what are we talking about? And my team has let me know that I have this saying I say that's adorable, specifically when things are not adorable, not going well, I say that and it's, I guess, my way of dealing with the pain, overcoming the struggle of whatever it is that just happened.

Speaker 1:

And so this is going to be our first episode on this, and this is a circumstance that happened back 2023 during the 50-Day Challenge. And listen, it was crazy. During the 50 day challenge, we had a lot of deals under contract right, we 125 signed contracts so a lot was going on, a lot of moving pieces. I basically couldn't even be a part of the dispositions and recon of those deals because I was live for eight to nine hours a day, every single day, for 50 days straight. So there's a lot that went on and I actually did get involved on this one, on a smaller level, but let's take it all the way back what happened here in this deal. But let's take it all the way back. What happened here in this deal.

Speaker 1:

Go back to the acquisitions. It was a live closing during the 50-day challenge. Seller was a woman that was distressed. She had a lot of kind of strange situations that had gone in her life that made her motivated and she needed to sell and she basically just wanted to walk away from the property for whatever she owed on it. You know that was like essentially her asking price on the property. So we got a signed contract. It was in a really good market. Okay, this is in one of the markets that not a high volume market but it's in an area that, if you can get it under contract, you're going to make a pretty healthy assignment fee.

Speaker 1:

So we marketed the deal based off of that and got a ton of interest on the property, had multiple interested buyers, but the buyer that we chose the reason why we chose this is because one he came in at our asking price, which is exactly what we do when we do dispositions right. We don't do bidding wars. But of course, when you're asking for a healthy margin on your assignment fee, there's a chance that people are going to make offers lower than your asking price, which they did and we anticipated. But this person came in and they came in at our asking price, which is great, so we accepted the offer. Now that came with some caveats to it, and one of those was is the buyer was based out of country so he couldn't go see the property, but he did want to see the property prior to closing on Right, okay, rightfully so. But this buyer had bought multiple properties from us before we had done business with them. Justin was the dispositions manager on this, and so we felt comfortable moving forward because we knew the condition of the property, we knew that it was a good deal, and so, even if this buyer does go out there and want the property and decides to renegotiate at the 11th hour, that's okay because we had room for it. So we accepted the offer, we opened up title, we go through the escrow process. Everything was seemingly moving along perfect, there was going to be no issues. Perfect, there's going to be no issues. And it's the day of closing Okay, so when the actual closing is going to be taking place? This deal was on the East Coast.

Speaker 1:

We started getting calls early, early, early in the morning saying that the cops are at the property and we're getting this from the seller. Seller is like someone broke into my property. I've called the cops. I don't know what's going on, but this might delay closing. Well, come to find out. The person that quote unquote broke into the property was the buyer. So the buyer flew in from out of country to close and want the property the day before closing and then, calling us and letting us know everything looks great in their mind, made the assumption I'm buying the property tomorrow. Why get a hotel? Why get an Airbnb? I'll just stay at the property that I'm buying tomorrow. As we all know, that's not okay. You can't do that. You don't own the property. I don't know where this assumption came from, but they made the decision that they were going to stay the night at the property.

Speaker 1:

Now there was some furniture that was left by the seller, so they had a bed, they decided to sleep in and the seller actually saw the buyer still there through security cameras. That's how they actually saw this buyer there and they saw someone at the property and decided to call the cops. The cops show up. They start asking the buyer who are you? Why are you at this property and the buyer is like I'm buying it today, I didn't think I was doing anything wrong and shows the contract that he's buying the property.

Speaker 1:

Well, the seller shows up while the cops are there and the cops are essentially like, okay, they're taking this contract that the buyer has and then they're bringing it to the seller and saying, hey, do you recognize this? Is this the person that you're buying the property or selling the property to? And she's like no, I'm selling the property to titanium investments, which we assign that contract to this end buyer. And so now there's this conversation well, who are you? From the seller to the buyer? And the buyer's like, well, titanium investments assigned the contract to me. I'm the actual buyer. And then the seller's calling us saying, well, who is this? And so we're like listen, we had told you that. You know, there is a potential outcome where we assign this property. We wholesale, we were up front with it, but not letting the buyer sleep in the property.

Speaker 1:

And this ruffled feathers across the board, right, the buyer's distressed, the buyer's feeling some kind of a way, because now the cops have shown up and I only know what has been told to us. I only know what has been told to us, but essentially, buyer and seller are now allowed by the police officers at the property to have a conversation with each other, and buyer and seller start conversating about how this deal is going to go down. They start saying that how much money we were making and I don't know what. They want to call it a coup, but got felt that way, at least on our side, where it was kind of like, well, hey, why don't I pay you a little bit extra? You discount the price from what titanium? We could just push titanium out of the way and make this deal go down.

Speaker 1:

So essentially, the seller calls us and says I don't want to move forward with this. I don't feel comfortable. This is crazy. Now listen, we could have clouded title, we could have filed a memorandum, we could have done other things. This is just a weird circumstance. Right, you got to weigh your options and be like do I want a negative review? Do I want someone going on social media talking about how I was selling my house to titanium investments and they sold it to someone else and let them come live in the property or sleep in my property Like, no, I do not want that. This one deal is not worth it.

Speaker 1:

And so, as much as it stung, we essentially let the deal fall apart and that buyer ended up going forward and buying the property directly from the seller. We lost out on the deal. We got pushed, bullied out of the deal. And, yeah, this is one of those circumstances where, as this is going along, uh, the, oh, this is fucking adorable. Uh, came out of my mouth because it's like dude, not only did we pay money to generate the lead, uh, I spent the time to do acquisitions on it, uh, the recon of it, the, the dispositions, uh, we had paid a transaction coordinator on the deal. Uh, we, you know, at this point it was so far along that the assumed cashflow from the close was, like, assumed in our bank account. Even as long as I've been doing this, I mean, and as many deals as we've done, it still stings when you lose a deal at the closing table. But it's the nature of what we do as wholesalers. It's always a possibility. And, man, this one stung. And, yeah, it's adorable how it went down.

Speaker 1:

I've never had a buyer sleep at a property before. I've never thought that we would even have to explain how. Like, hey, you're not supposed to sleep at the property, but it happened. It cost us the deal, you know. It cost us tens of thousands of dollars and also just created just angst over here at Titanium Investments. So one of the crazier situations that we've had happened during a wholesale transaction. Uh, so if you have a buyer from out of country coming to view a property the day before closing, I don't know if you're supposed to tell them, but just verify that they don't sleep at that property, because it could cost you tens of thousands of dollars.

Speaker 1:

So, that being said, let me know if you guys like these types of stories, because, man, we have so many different types of stories like this over the years that we can tell just crazy situations that have happened. And listen, I'll be honest. Part of the problem is is that I'm a super creative person and so sometimes when things go bad, I come up with solutions that make it a little bit of a crazier outcome if it doesn't work out for us. So we'll get into some of those, but if you like this video, you like these kind of stories, leave me a comment Say, hey, this is awesome. I want to see more of the oh that's fucking adorable type of stories, because we've got plenty to tell you. Make sure you give this video a like. Leave me that comment and we will see you guys tomorrow. Thank you.