Posted on: July 08, 2020
WI 466 | Competitive Market

 

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!

How To Succeed In An Insanely Competitive Market

Episode Transcription

I’m excited about this guest I have out of Phoenix. If I say the word Phoenix, I know most of you are thinking that’s a competitive market. I have 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 say that Dallas, Texas and Phoenix are in the top five.

I’m excited to talk with Jay Estrada, an REI Radio student. He decided to set up the radio because he’s got to. He is in Phoenix. He cannot do what everybody is doing in order to get deals because you have some of the biggest names in real estate in Phoenix. What you are going to walk away with is, “If the radio is that great, does it work in a city like Phoenix?” Here’s my argument and it’s true for Dallas. If it works in Phoenix and Dallas, it’s going to work in your market because those are two of the most competitive markets. Let’s hop in. Jay, welcome. I’m glad to have you. How are you?

I’m pretty good. I appreciate that you got me on this. I’m happy to share whatever I can for the good of everybody.

We are going to add some value. For those that don’t know about you, give me a quick snapshot of how long you have been in real estate. How long have you been in the game?

I have been in real estate for many years. Most of it is on wholesaling. I haven’t left the Phoenix market. That’s pretty much where I have been.

I was speaking for you. I know that market is competitive but let’s hear it from you. How competitive is Phoenix from your perspective?

It’s very competitive. You don’t just have major investors here. You have gurus, people who do seminars, big players and big names that people know. It’s not an easy market to be in. All the other forms of marketing are saturated. It costs a lot of money to get a deal.

Direct mail is one of the best sources of finding distressed sellers.

Let’s talk about that. I know everyone likes to know this. How are you generating opportunities before radio? What were you doing? What was working and not working? How are you trying to find motivated sellers?

It was tough when everybody starts out in any type of business. Originally, I did bandit signs and then I did some direct mail. I’m doing it handwritten with my own handwriting. I figured out that there are servicing companies that help you. It was direct mail and bandit signs. Those are my best sources of finding distressed sellers. Later on, I got better out of things and decided on door-knocking. I shifted to cold calling and telemarketing. I was doing a whole bunch of cold calling. It was very good but the year changed. It cost so much to get one contract.

You felt like, out of all those things that you were doing and have relied on, they got challenged at a whole other level, which makes you step back and go, “Some of this traditional stuff that everybody else is doing, who doesn’t at this point know about cold calling, ringless voicemail and text blasting? This isn’t working for my business anymore. I need to do something new.” What first attracted you to radio? What made you go, “This has piqued my interest because of these qualities. I’m going to pursue this and make this happen in my business?” What was it about radio that first brought you in?

Radio has been around forever. That’s one. I know a couple of other guys in the business who have done radio. They did okay but they never did it permanently. They did it temporarily. The other thing that you talked about is very noticeable. It’s like, “How many people in Phoenix, Dallas or wherever is doing radio?” It’s not a lot of people.

You are in the most competitive market with some of the biggest names. You stepped back and realized, “Even the big boys have not realized the value of radio, even in Phoenix.” Your first thing is, “I have got something over here that I can do that nobody else is doing even in my market. 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. It’s like, “Chris, you were talking about it. You told me to start listening to the radio. A couple of weeks later, I didn’t hear one person.” It’s wide open.

If someone has done it, they did it for a couple of months. They do it for 2 to 3 months and that’s it. They are not doing it as a consistent thing in their business.

Let’s move over into the setup. You get in and sign up. You are ready to go. Let’s make this happen and get the radio set up. Here’s what I like about your story. Of the last three people who came on, we talked about their experiences setting it up. They were like, “On a scale of 1 to 10, it was 2 to 3. It’s super easy.” Jay, your story was different because it took longer for you to negotiate. You are in Phoenix. It’s a competitive market. Radio is working well for you but you didn’t come in and get it set up in the first two weeks. Why do you think that was?

We are in Phoenix. It’s a big city. How many radio stations are out there? How many people are going to get a call from Jay and say, “Can I pay these prices? Can I do this on your radio station?” It’s not something that they are going to hear. What is going to happen is they are going to shut me down and tell me no. Everyone told me no. I was like, “I thought this is supposed to be a little bit easier than that.” The thing is, they are sales guys too. It’s not going to be just, “If I want to get in the door, we are done.”

WI 466 | Competitive Market

Competitive Market: When the lead comes in from the radio, you’ve already broken that shield.

 

You start the process and you are getting noes. They are going, “Don’t you realize this is Phoenix? We are not going to accept that price. You are coming in at a rock-bottom price that’s ridiculous.” You are starting to go, “Is this thing going to work in my city?” Of anyone to give up, you have the excuse because it’s Phoenix. You know how everyone is. They throw out the market excuse, “It doesn’t work in my market.” You persevered and then what happened? You picked up your first radio station, didn’t you? Did they accept that low price?

It’s interesting that the radio station I talked to was the one with the strongest no. We’ve got great businesses. They paid a lot of money every month in the marketing for the radio stations. The one that gave me the no was the one that I signed up first with. Part of it could have been because of the pandemic and things changed. He was constantly emailing me. We were going back and forth. I pushed him away. I didn’t believe that he was trying to get me where I wanted him to be at my price. It turned out he was the one we first signed up with.

We have a statement. If you are an REI Radio student, you know the insider language we use. We always tell our students, “They always break.” They might break on the 1st or 20th call. Eventually, that radio station is going to accept that price because we are persistent and patient. We see this with every student across the country. Not only do you have one station but you are also locking up your second station that has agreed to your price. You are going to be advertising on two stations down in Phoenix here shortly.

This is the first person I have sat down with. I thought that he was a nice and great guy. He is a family man and everything. I thought that was the station I was going to get and it turned out it wasn’t. He decided to come with me. Interestingly enough, the way you would show us and what you teach us at the pricing way we were supposed to offer, I got lower than that on both stations.

You went below our rock-bottom price to super rock-bottom, which is amazing. One of the things we have been surprised about with our students is some have gone below what we consider the lowest we even know how to get. It shows you the power of mindset. It’s like, “We buy houses at $0.60 on the dollar.” Who is the guy that comes along and goes, “I’m going to buy them at $0.40? I know everyone else is $0.60.” $0.60 is a phenomenal price. Everyone is trying to get $0.60.

At this age, it’s awesome to get stuff like that.

If you are new to radio, what you have to understand is once you lock in that price, it’s locked in for a year. You are getting an ROI because it’s at such a deep discount that you close a couple of deals. You are already profitable, which means then everything on top of that for the rest of the year is being added to your bottom line net.

That’s why radio has been so valuable for us year after year because we get a consistent dollar-per-dollar return of $3 to $4. That means we are tripling to quadrupling our investment. You go live. Here’s the thing that everyone wants to know. You’ve got this rock-bottom-price station. Let’s talk about deals. Did the phone ring in the first couple of weeks?

In the first week, the phone did ring. It was the second day. When you get the calls, it’s a variation of things. In reality, you are going to get that distressed seller. It’s different when you are talking to someone from a radio lead than from a cold calling lead.

Let’s talk about that. What is the difference when that phone rings and they hear you off the radio versus dialing for dollars and talking to that person? How is that conversation different?

If others succeed, you can too by following the same process.

I will give you an example. If someone is in prison and they want to see that person, they put a window up. When you are cold calling, you’ve got a big guard in front of you as a shield. You’ve got to break that shield. When the lead comes in from the radio, you have already broken that shield. They already trust you. You’ve got to do your part to make them feel well with you because they don’t know you in person. It’s a lot easier.

You don’t have to go through, “Why are you calling me all of that type of stuff when you are doing outbound?” We are not saying that outbound doesn’t work but we are comparing the two, which is valuable to do in saying, “By far, it’s the incoming radio call who hears your ad. You have celebrity status.” You have instant credibility because, “If Jay is on the radio, he must know what he is talking about because only people on the radio know what they are talking about or you wouldn’t advertise.”

That is the assumption that the seller is making. That’s why I’m telling people it’s the highest-quality lead I know how to generate. I love your analogy. It’s a great one 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 are ready to talk business. Here’s 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.

I have an escrow with three contracts and I got those in the first two weeks.

I know you have been up for about four weeks on the radio but the first two weeks, you executed three deals.

I executed three contracts in the first two weeks.

Let’s remind that again. That’s in Phoenix that you are in that we are talking about. That excites me because here’s the thing. I advertise in Texas. That’s my area and where I focus. I can talk about radio being the best and the worst and I believe that. When a guy like you comes along, that is going to test this methodology more than anyone else because you are in Phoenix. I love it because it was putting fire to whether or not radio is truly as valuable as we were talking about it to be. I love the fact that you came in and nailed it. You’ve got call volume. You executed three deals in the first couple of weeks. You have only been up four weeks and you are off to a great start. You are about to advertise on your second station as well.

I already got two. I’ve got one buyer in place for one of the properties. In the second one, we do have a buyer. Me and my business partner are going to close on it but we have someone who probably will take it down. In the third one, it’s a 60-day close. I allowed that because they needed to move somewhere else. No one knows about that except for me. I haven’t told my buyers yet. I’m waiting for that window to close. When I’m ready, it’s a property in a great area. It’s a lipstick-on-a-pig property that needs carpet and paint. They are going to jump all over that when I send that out to my buyers.

Let me ask you this. Things are a little bit different for you. When we started this conversation pre-radio, it sounded like there’s a bit of stress and the traditional things I’m doing aren’t working. We are on the other side of this. You’ve got deals you work in. I see some excitement and some life coming back into you as I have gotten to know you. What do you think the future is for radio for you? Are you going to continue to get on more stations? What is your thought process and vision around radio?

I think about it in baby steps, “I’ve got to get this next station. I’m going to secure that one.” Once that’s in place, you taught me that it’s better to generate revenue first and then go onto the next station. What I’m doing, I believe that I don’t think I need a ton of radio stations. I need solid radio stations that have a good volume with the type that you showed us. If I get similar stations like the one I have, I don’t think I will need more than 3 or 4. That’s it. I would be pretty well.

WI 466 | Competitive Market

Competitive Market: It’s better to generate revenues first and then go onto the next station.

 

You are a solopreneur over here. The flip side of that is you are going to be extremely profitable because you don’t have overhead. You are rocking 3 to 4 stations. That’s probably going to be more deals and you know what to keep up with. Maybe you throw in another acquisition manager and maybe one closing manager or coordinator to help a little bit. You’ve got a rock and roll system generating some great deals and opportunities for yourself.

I always recommend as a principal to lead with revenue. What that means is if you launch something like radio versus launching 3 to 4 stations at a time using a credit card, which is dangerous to do on anything. I don’t care what you are 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 get that second station. You are leading with cash rather than trying to go into debt and then catch back up.

I love this interview. I was excited to do it with your story. I wanted to give you some public praise because you stuck with it in a tough market. I recommend you to go to YouTube and subscribe to Chris Arnold – Real Estate because you are going to see Jay up here smiling ear to ear. If you know Jay, he is a chill guy. This is Jay’s energy, which I love.

Markets are being sold out. We are preserving radio. We don’t want to oversaturate it. Now is the time to book a call and see if your market is open. If it is, it’s time to jump on because, at this point, the proof is in the pudding. I’m continuing to interview more people like you. It’s one great story after another with people launching on the radio. Go to WholesalingInc.com/REIRadio.

To wrap it up if somebody is reading. You were on the other side. You were like, “Here’s this radio talk. Somebody else is trying to sell something.” I get it. I have been there. I’m as skeptical as anyone else when I hear somebody trying to talk about something valuable. What would you tell someone who is reading who might be on the fence a little bit going, “I’m not sure? It sounds too good to be true.” What would you tell that person wrapping up?

I would tell them that, in my experience, it is an awesome channel for marketing. We already had success with it. I have had success with it. Other people are having success with it and I believe that person can also have success with it. As long as they apply all the material that you give us and everything that we are supposed to do, they will also be successful if they pursue it because I had to persevere. I knew some students who got it in the first week. I’m like, “I took three months.” If they see that other people were successful anyways, they can be successful. They apply what you teach us. That’s the bottom line.

That’s a good piece of encouragement. I feel like Jay is saying, “Listen to my story. If I can do this so can you. Bottom line.” Jay, thank you for your time and for coming on. It has been great to have you as a student. Now that you have been in for a while, we have gotten to know you as well. We’ve got a lot of love for you over here at REI Radio. To the rest of you, thank you so much for joining. Until next time, we will catch you soon to add more value. I will talk to you later.

 

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About Chris Arnold

Chris Arnold is a 15 year Real Estate veteran who has closed over 2500 single family real estate transactions in the DFW metroplex. Chris is the founder of multiple companies that are managed by a US virtual team, which allows Chris to run his organizations while living in Tulum, Mexico full time. His passion for leaders has led to the creation of Multipliers brotherhood which serves the top 5% of real estate entrepreneurs out of the US. Most recently Chris has launched his REI Radio coaching program. This program is designed to teach real estate investors the marketing stream that everyone knows about but NO ONE is doing!

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