Posted on: July 08, 2020

Those who have tried radio can truly attest it is one of the best marketing channels there is. However, will it still work in a market as fiercely competitive as Phoenix? That’s what you’ll find out in this episode!

Jay Estrada is one of REI Radio’s powerhouse students. While he’s been active in the wholesaling space for 5 years now, he discovered radio only recently. To say it has been a huge game-changer is an understatement—he closed 3 contracts just 2 weeks in!

If you’re considering radio and would like to have an idea what to expect and what’s in it for you, this is one episode you shouldn’t miss!

Key Takeaways

  • How he found motivated sellers prior to radio
  • What he found enticing about radio
  • Why it took him a bit longer to set radio up
  • Number of deals he found the first few weeks
  • His thought process and vision for radio in the coming years
  • His advice for those who would like to give radio a try

RESOURCES:

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Episode Transcription

Chris Arnold:
Woo-wee! Welcome to the Wholesaling Inc. podcast. I’m your host Chris Arnold and excited about this guest I have today out of Phoenix. If I say the word Phoenix, I know most of you are thinking, “Man, that’s a competitive market.” I’ve got respect for people out of Phoenix, because I’m out of Dallas. If you know anything about cities that are hard to do business in, I would definitely say that Dallas, Texas and Phoenix are in the top five. I’m excited to talk with Jay Estrada, who is an REI Radio student. He decided to set up radio because he’s got to. He’s in Phoenix. He cannot do what everybody’s doing in order to get deals, because you have some of the biggest names in real estate in Phoenix.
If you’re listening today, what you’re going to walk away is it radio is great and that great, does it work in a city like Phoenix? Because here is my argument, and it’s true for Dallas. If it works in Phoenix, if it works in Dallas, it’s definitely going to work in your market because those are two of the most competitive markets. So let’s hop in. Jay, welcome. Glad to have you, buddy. How are ya?

Jay Estrada:
Pretty good, man. I appreciate that you got me on this, and I’m really happy to share whatever I can for the good of everybody, right?

Chris Arnold:
That’s right, man. We’re going to add some value today, you and me. So for those that don’t know about you, give me just a quick snapshot of how long you’ve been in real estate. How long you’ve been in the game?

Jay Estrada:
So I’ve been in the real estate for about five years and most of it really is all wholesaling. I haven’t left the Phoenix market. I mean, that’s pretty much where I’ve been.

Chris Arnold:
Absolutely. Have you found… Again, I was speaking for you. I know that market’s competitive, but let’s hear it from you.

Jay Estrada:
It is.

Chris Arnold:
How competitive is Phoenix from your perspective?

Jay Estrada:
Oh, it’s very competitive. You don’t just have major investors here. You have gurus. You have people that do seminars. You have big players, big names, right, that people know. It’s not an easy market to be in, and all the other forms of marketing are really saturated. So I mean, it costs a lot of money to get a deal.

Chris Arnold:
So let’s talk about that. Before you started doing radio, again, I know everyone likes to know, how were you generating opportunities before radio? What were you doing and what was working, maybe what was not working? How are you trying to find motivated sellers?

Jay Estrada:
Well, when I started, obviously it was tough, right. It was tough as heck when everybody starts out in any type of business, but originally it was batta signs. I did batta signs. Then I did some direct mail, doing it handwritten with my own hand write and then figured out that there’s servicing companies to help you. So really it was direct mail and batta signs. Those were my best sources of finding distressed sellers. And later on, I just got better out of the things and started door knocking or so forth. And now like the last couple of years, I shifted to cold calling, telemarketing or doing a whole bunch of cold calling. It was good. I mean, it was very good, but this year just changed. I mean, it cost so much to get one contract.

Chris Arnold:
Do you feel like that out of all those things that you were doing kind of have relied on. They really, really got challenged at a whole nother level, which makes you kind of step back and go, “Man. Some of this traditional stuff that everybody else is doing again, who doesn’t at this point know about cold calling, ringless voicemail, text blasting. But man, this isn’t working for my business anymore. I need to do something new.” So let me ask you this. What first attracted you to radio? What made you go, “You know what? This has peaked my interest because of these qualities. And I think I’m going to pursue this. I’m going to make this happen in my business.” What was it about radio that first brought you in?

Jay Estrada:
Well, radio has been around forever. That’s one, I know a couple other guys in the business that have done radio, and they did okay. But they never did it permanently. They did it temporarily. But I mean, the other thing that you talk about, which is very noticeable. It’s like how many people right now in Phoenix or Dallas or wherever is doing radio? Not a lot of people. So that’s what took me in.

Chris Arnold:
So let me get this right. You’re in the most competitive market with some of the biggest names, and you step back and realize even the big boys have not realized the value of radio, even in Phoenix.

Jay Estrada:
Even in Phoenix.

Chris Arnold:
So your first thing is, “Hey man, I’ve got something over here that I can do that nobody else is doing even in my market. And I’m going to jump on that because what you could tell is there’s virtually no competition.” Which I hear every single time. It’s probably one of the biggest things is like “Chris, you were talking about it. You told me to start listening to the radio. And you know, a couple of weeks later, I didn’t hear one person.”

Jay Estrada:
[crosstalk 00:05:46].

Chris Arnold:
Like, it’s wide open, man. It truly is so.

Jay Estrada:
That’s what I’m saying. And like again, if someone has done it, it’s been for a couple of months, to do it for a couple of months or two or three months. That’s it. They don’t, they’re not doing it as a consistent thing in their business. Yeah.

Chris Arnold:
Now let’s move over into the setup, right? So you get in. You sign up. You’re ready to go. Let’s make this happen. Let’s get radio set up. Now, here’s what I like about your story because of the last three people that came on, we talk about their experiences, setting it up and they’re like, “Man, scale of one to 10, it was the two to three super easy.” But you, Jay, your story was different because it took longer for you to negotiate. You know, you’re in Phoenix, super competitive market and radio is working really well for you, but-

Jay Estrada:
Yes, it is.

Chris Arnold:
… You didn’t come in and just get it set up in the first two weeks. It took a little bit longer. Right?

Jay Estrada:
It took-

Chris Arnold:
Why do you think that was?

Jay Estrada:
Well again, we’re in Phoenix, the big city. How many radio stations are out there and how many people are going to get a call from Jay and say, “Hey, can I pay these prices? Can I do this on your radio station?” It’s not something that they’re going to hear. Right? So they’re obviously, what’s going to happen is they’re going to shut me down. They’re going to tell me no. Everyone told me no.
Everyone told me no. So I mean like what? I thought this is supposed to be a little bit easier than that, but that’s really the thing is they’re sales guys too. Right? ,So it’s not going to be just, “Oh, I want to get in the door. Boom. We’re done.”

Chris Arnold:
Yeah, so you start the process and you’re getting no’s, They’re going, “Hey man, don’t you realize this is Phoenix. We’re not going to accept that price. You’re coming in at a rock, bottom price. That’s ridiculous.” And so you’re starting to go, “Man, is this thing really going to work in my city?” Of anyone to give up, you have the excuse because, “Hey, it’s Phoenix.” You know how everyone is. They throw out the market, excuse. Well, it doesn’t work in my market, but you persevered. And then what happened? You picked up your first radio station, didn’t you? And did they accept that low price?

Jay Estrada:
Yeah, exactly. It’s interesting that the people that I talked to, the radio station, I talked to, the one that was the strongest, “No, we’ve got great businesses. They pay so much. They paid a lot of money every month in the marketing or the radio stations.” The one that gave me the “no” was the one that actually I signed up first with. And I don’t know, I would say part of it could have been because of the pandemic. Right. And things changed. But he was just constantly emailing me. We’re going back and forth. And I pushed him away actually. Didn’t I didn’t believe that he was trying to get me where I wanted to be at my price. And it turned out he was the one that I first signed up with.

Chris Arnold:
Yeah. And so we have a statement and if you’re an REI radio student, you know the insider language we use. And we always tell our students, they always break. They might break on the first call. They might break on the 20th call. But eventually that radio station is going to accept that price because we’re persistent and we’re patient. And again, we see this with every student across the country.
So now not only you have one station, you are locking up now your second station that’s agreed to your price. And so you’re going to be advertising on two stations now in Phoenix here shortly, right?

Jay Estrada:
Yes. This was the first person I’ve sat down with. I thought that was nice guy, great guy. He has a family. He’s a family man and everything. And I thought, really that was the person. I thought I was going to get. And it turned out it wasn’t. Now he’s actually, there actually deciding to come with me. And the interesting enough Chris, is that the way you’d show us and what you teach us at the pricing way we’re supposed to offer, I got lower than that on both stations.

Chris Arnold:
So you went below our rock, bottom price to like super rock bottom.

Jay Estrada:
Right.

Chris Arnold:
Which is amazing.

Jay Estrada:
It is.

Chris Arnold:
So I think things we’ve been surprised about with our students is some have gone below what we consider the lowest we even know how to get, which is cool. Which just shows you the power mindset, right? Again, it’s like, well, we buy houses at 60 cents on the dollar. Who’s the guy that comes along and goes, “You know what? I’m just going to buy him at 40.” I know everyone else’s is 60, and 60 is a phenomenal price. Everyone’s trying to get 60.

Jay Estrada:
It is. And this age right now, this year, that’s-

Chris Arnold:
Yeah, you know what I’m saying?

Jay Estrada:
… Awesome to get stuff like that.

Chris Arnold:
So that’s amazing. Again, if you’re new to radio, which you have to understand is once you lock in that price, it’s locked in for a year, and you’re getting an ROI because it’s at such a deep discount that you close a couple of deals you’re already profitable. Which means then everything on top of that for the rest of the year is just being added to your bottom line net.
And that’s why radio has just been so valuable for us year after year, because we get a consistent dollar per dollar return of $3 to $4. That means we’re tripling to quadrupling our investment. So you go live. Here’s the thing that everyone wants to know. Okay. So great. You got this rock bottom price station. Fantastic. Great. All right. Let’s talk about deals. Did the phone ring in the first couple of weeks?

Jay Estrada:
Yeah. The first week the phone did ring. It was actually the second day. The call, when you get them, it’s a variation of things, but the reality you’re going to get that distressed seller. And it’s totally different when you’re talking to someone from a radio lead, then from a cold calling lead. It’s so different.

Chris Arnold:
So let’s talk about that. What’s the difference when that phone rings and they heard you off radio versus dialing for dollars and talking to that person. How is that conversation actually different?

Jay Estrada:
Well, I’ll give you an example. If someone’s in prison, they want to see that person, they put a window up, right? When you’re cold calling, you’ve got a big guard in front of you. The shield. You got to break that shield, right? When the lead comes in from the radio, you’ve already broken that shield. You’ve already broken that, what do you call it? What they put, the wall that’s in front of you, right?

Chris Arnold:
Yeah, a barrier right? It’s a barrier.

Jay Estrada:
They already trust you. You got to do your part obviously to make them feel well with you, because they don’t know you in person, but it’s a lot easier.

Chris Arnold:
They perceive you as the professional.

Jay Estrada:
It’s a lot easier.

Chris Arnold:
Yeah, I totally agree. So you don’t have to go through, “Hey, why are you calling me?” All of that type of stuff when you’re doing outbound. Again, we’re not saying that outbound doesn’t work, but we’re comparing the two, which is valuable to do, and saying by far the incoming radio call who hears your ad. You have celebrity status. You have instant credibility, right, Jay? Because, “Hey, if Jay’s on the radio, he must know what he’s talking about because only people on the radio know what they’re talking about or you wouldn’t advertise.”
That is the assumption that the seller’s making. And that’s why I’m telling people that’s the highest quality lead I know how to generate. And dude, I love your analogy? It really is a great one. You know of the fact that either there’s an automatic guard, and somebody is on the defense when you start that conversation or their guard is down and they’re ready to talk business. So it is a big question. How many deals did you pick up if any in the first couple of weeks? That’s what everybody wants to know. [crosstalk 00:12:57].

Jay Estrada:
Well, I have an escrow right now, three contracts, and I got those in the first two weeks, and so-

Chris Arnold:
And I know you’ve been up for about four weeks on radio, but the first two weeks-

Jay Estrada:
Two weeks.

Chris Arnold:
You get three deals?

Jay Estrada:
I secured three contracts in the first three weeks, in the first two. I’m sorry.

Chris Arnold:
Let’s remind that again, that’s in Phoenix right? That you’re in, that we’re talking about.

Jay Estrada:
Phoenix. In Phoenix. Yeah. That’s amazing.

Chris Arnold:
It is amazing. And so again, I think that that drives home, and that excites me because see this thing. I advertise in Texas. That’s my area. That’s where I focus. Right. And I can talk about radio being the best and the baddest. And I believe that. But when a guy like you comes along, that is really going to test this methodology more than anyone else, because you’re in Phoenix. Right? I love it because it was putting fire to whether or not radio is truly as valuable as we’re talking about it to be.
And I love the fact that you came in. You nailed it. You got call volume, and you executed three deals in the first couple of weeks. You only been up four weeks and dude, you’re off to a great start. And now you’re about to advertise on your second station as well.

Jay Estrada:
And I already got two … Well, I got one buyer in place for the first, for one of the properties. The second one, we do have a buyer, which we were going to close on it. Me and my business partner, we’re going to close on it, but we actually have someone that probably will take it down. And the third one, it’s a 60 day close. So I allow that because they need to move somewhere else. And no one knows about that deal, except for me.

Chris Arnold:
Yeah.

Jay Estrada:
I haven’t told my buyers yet-

Chris Arnold:
That’s a pocket deal.

Jay Estrada:
… Because I’m waiting for that window to close. And when I’m ready, it’s a property in a great area. It’s one of the lipstick on a pig lipstick on a pig properties, right? That just need carpet and paint. They’re going to jump all over that when I send that out to my buyers.

Chris Arnold:
So let me ask you this, things are a little bit different for you, right? When we started this conversation, pre radio sounded like there was a bit of stress. And the traditional things I’m doing, aren’t working. Now, we’re on the other side of this. You got deals. You’re working. I see some excitement, some life coming back into you, as I’ve gotten to know you. What do you think the future is for radio for you? You’re going to continue to get on more stations? Like what’s your thought process and vision maybe for the next year around radio?

Jay Estrada:
I want to secure [inaudible 00:15:20] in baby steps, right? I got to get this next station. I’m going to secure that one. And once that’s in place, you taught me that it’s better to generate revenue first, and then go on to the next station. So, I mean, I think what I’m doing now, I believe that I don’t think I need a ton of radio stations. I think I just need solid radio stations that have good volume, type that you showed us. And if I get the similar stations, like the one I have now, I don’t think I’ll need more than three or four, man. That’s it.

Chris Arnold:
And then you’ll be set.

Jay Estrada:
I think I’ll do pretty well.

Chris Arnold:
Again, you’re a solo preneur over here, right? Where not talking about [crosstalk 00:15:59].

Jay Estrada:
[inaudible 00:15:59] in a couple of months.

Chris Arnold:
Is Jay hustling deals making it happen? But the flip side of that is you’re going to be extremely profitable because you don’t have overhead. So, man, I agree. You’re rocking three to four stations. That’s probably going to be more deals you know what to keep up with. Maybe throw in another acquisition manager. Maybe one closing manager or coordinator to help a little bit. Now you’ve got a rock and roll system, man, generating some great deals and opportunities for yourself.
And yeah, if anyone’s listening, I always recommend as a principal to lead with revenue. And what that means is if you launch something like radio versus launching three, four stations at a time and using a credit card, which is dangerous to do on anything, I don’t care what you’re doing. You launch that first station, you get some closings, which aren’t going to take long.
You reinvest that revenue off of radio to go get that second station. And so now you’re leading with cash rather than trying to go into debt and then catch back up, which I think is important. So if you’re listening man, I love this interview. I was really excited to do it just with your story. I wanted to give you some public praise because you stuck with it in a tough market. If you’re not watching this video and you’re listening, I recommend you go to YouTube and definitely subscribe to Chris on a real estate because you’re just going to see Jay over here, just smiling ear to ear, which I love.
And if you know Jay, like Jay’s kind of a chill guy. So, man and this is Jay energy smiling ear to ear, which I love. But man, now’s the time. Markets are being sold out. We’re preserving radio. We don’t want to oversaturated it. So now’s the time to book a call. See if your market’s open. And if it is man, it’s time to jump on. Because at this point, proof’s in the pudding, man. I’m just continuing to interview more people like you, but it’s just one great story after another with people launching on radio.
So go to Wholesalinginc.com/REIradio. And that’s wholesalinginc.com/REIradio and book a call now, and see if your market’s open. So wrap it up. Jay, somebody is listening. You were on the other side, right?

Jay Estrada:
Oh, yeah.

Chris Arnold:
You were like, “Okay, here’s this radio talk, just somebody else trying to sell something.” I get it. I’ve been there. I’m as skeptical as anyone else when I hear somebody trying to talk about something valuable. But what would you tell someone that’s listening right now that might be on the fence a little bit? What would you say to them going, “You know what? Sounds good. I’m not sure. Sounds too good to be true.” What would you tell that person, wrapping up?

Jay Estrada:
I would tell them that just in my experience, it is an awesome channel for marketing, and we already had success with it. I’ve had success with it, other people having success with it. And I believe that person can also have success with it. When they apply all the material that you give us and everything that we’re supposed to do, they will also be successful if they pursue it. Because I had to persevere, man. I knew some students that got it. They got in, right? Like in the first week. I’m like, “Man, I took three months. Man, what the heck?” So if they see that other people are successful anyways, they can be successful. They just apply what you teach us. That’s bottom line.

Chris Arnold:
And I think that’s good. I think that’s a good piece of encouragement. It’s kind of one of those things I really feel like Jay is saying, “Dude, listen to my story. If I can do this. So can you, bottom line.”

Jay Estrada:
Yes.

Chris Arnold:
So Jay, thank you for your time. Thanks for coming on, man. It’s been great to have you a student. And now that you’ve been in for a while. We’ve gotten to know you as well, man. We got a lot of love for you over here at REI radio.

Jay Estrada:
Thank you so much, I …

Chris Arnold:
And to the rest of you guys, thanks so much for joining. Until next time, we’ll catch you soon to add more value. Talk to you later.

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