Ever wondered what it takes to flip houses in Hawaii while living in Dallas Fort Worth? Today, we’ll explore RJ Bates from Titanium Investments’ journey and the factors that led him to expand his house-flipping operations to the stunning islands of Hawaii.
How It All Started
RJ Bates, co-founder of Titanium Investments, began flipping houses in Dallas Fort Worth (DFW) and later expanded to Hawaii. The main catalyst? His childhood best friend, Elijah, a contractor living in Oahu. After a year of convincing, RJ realized the numbers in Hawaii were actually better than those in DFW. In Hawaii, homes were being bought at 60-65% of ARV minus repairs, compared to 75-80% in DFW.
Adjusting to a New Market
Flipping in Hawaii isn’t just about better profit margins. RJ and his team had to rebrand and adapt to the local culture. Unlike DFW, where follow-ups are persistent, Hawaii operates on a more relaxed timetable. Offers are made, and then you wait, reflecting the island’s laid-back lifestyle.
Trust and Technology
Trust and technology are key components in managing these remote projects. RJ’s trust in Elijah, backed by videos, pictures, and a reliable local realtor, allowed them to handle property analysis from afar. They took advantage of technology to bridge the gap, using tools like Google Drive for sharing files and QuickBase for their CRM needs.
Overcoming Challenges
Each market has its own quirks. For instance, Hawaii’s geography affects property values — views of the mountains or the beach can change a property’s worth by hundreds of thousands. Materials for renovations are sourced from Home Depot, just like in DFW, ensuring quality and availability.
Expanding Beyond Hawaii
Titanium Investments didn’t stop at Hawaii. They also ventured into Alaska, Phoenix, and more. Systems and trust in local partners allowed them to replicate their success across multiple markets. Marketing strategies like direct mail worked even better in Hawaii, yielding a four times better response rate than in Fort Worth.
Private Money and Scaling
Finding private money is another hurdle many face. RJ’s advice? Always ask. Subtly plant the idea of higher returns in your conversations. By using other people’s capital, Titanium Investments grew rapidly, starting with a $100 bank account in Hawaii and flipping their first property for a significant profit.
Titanium Investments’ Core Value: Building Relationships
One of the company’s core values is relationship-building. Over time, they’ve managed to establish strong ties with strategic partners and private money lenders, aiding their expansion into new markets. Establishing relationships turned out to be their secret weapon, helping them transition smoothly into unknown territories.
Final Thoughts
RJ Bates and Titanium Investments’ journey from Dallas Fort Worth to the picturesque islands of Hawaii highlights the importance of adaptability, trust, and strategic partnerships in the world of house flipping. By leveraging local connections, embracing technology, and maintaining a strong focus on relationship-building, they successfully navigated the challenges of a new market.
Their story is a testament to the power of vision, resilience, and the willingness to explore opportunities beyond familiar boundaries. Whether you’re a seasoned investor or just starting out, there’s much to learn from their innovative approach and commitment to excellence.
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