Episode 491: How this Fix and Flipper Crushes His Competition in an Overcrowded Market

I’m excited for you guys to join us. I have Myles Daniel and you are here to read his story about his background but even more importantly, the success that he’s seen off the radio. Myles and I were talking, you’ve been live for several weeks and already taking deals down. If you’re tuning in, what you’re going to get is another student that came into Trust Radio as a great marketing channel and the proof’s in the pudding. That’s why we’re doing this interview. Myles, welcome to the show. I’m glad to have you.

Thank you for having me. I’m excited.

For someone that doesn’t know Myles, give us a quick snapshot. Where are you located, a little bit about the type of business that you’re doing and tell us about you?

I’ve been in real estate for a few years. I’m in Greenville, South Carolina. It’s the middle point between Charlotte and Atlanta. It’s a growing city. It’s a good location and great weather here. The city is growing tremendously and things are becoming more competitive here. In the last few years, I’ve essentially fixed and flipped. I built that business. I bought things at auction off of MLS and word of mouth. I’ve seen the city grow and become more competitive. I put out a search and started looking for what are some ways that I can get property.

A lot of people do all kinds of things and they’re all pretty much doing the same thing. I found that radio, as you always say, everybody knows about it, I’ve heard a radio ad before about real estate but it wasn’t what we do. I said, “I don’t think there’s anyone doing it.” I figured why not take the shot and let’s see if it works.

You choose to do fix and flip over wholesaling. For someone that’s reading, why have you decided to focus on that strategy for someone that’s like, “That’s interesting. He’s doing more fix and flip than wholesale?”

Especially in a market like mine, I felt that it’s a little bit tougher to build a fix and flip business. If I could start there, get the crews to do the work so I could cherry-pick, if I did get into wholesaling, I could cherry-pick which ones I wanted, start with the fix and flip and work my way to wholesaling. That was my mindset. I’ve been doing that and it’s going very well but I know that there’s another element to this whole game. Finding properties with it being a seller’s market, that’s the toughest thing to do.

 

I’ll take the flipping first, make my money there and then I’ll work my way backward into wholesaling. That’s where I am now. I got a great crew do great work because things are getting so competitive, I want to cherry-pick things from radio and the different advertising that I do then wholesale the rest that is good deals and there’s enough meat on the bone for somebody else.

What I love about Myles is he’s going about it the way that works for him. Things aren’t black and white. I went in the same direction you did. I started flipping before I started wholesaling. For me, it wasn’t none other than flipping that made more sense at the time. I wanted bigger pops. I didn’t understand either the value of how much you can make on a wholesale.

Little did I know that you could make $15,000, $20,000 on average on wholesaling. That’s when my eyes opened up. If you’re reading this, have some flexibility, go the route that feels the best for you like Myles has. For people reading, everyone’s always curious. At radio, what was the best thing you were doing to find investment opportunities? How are you getting most of your deals?

I bought off of the auction but besides the homes going into foreclosure, it was all about networking, connecting with agents and letting people know what I do. What I found and another reason why I picked radio is that when someone feels connected to you or it feels like you’re credible and professional, it’s easy to get connected and be able to buy a property. Someone’s like, “He bought my cousin’s house and it flows from there.”

I’ve done a lot in networking and connecting with people that have access to these properties or that would put me in touch with someone that does. It’s been word of mouth. My city is small so I’ve been able to survive that way but those wholesale base hits after a while start to add up. I’ve started to shift a little bit towards, “Let’s do some active marketing to attract people to me,” but up until now the networking and going to the foreclosure sale at the courthouse.

Those are two things I don’t hear as much. You hear the traditional, “I’m text blasting. I’m RVM-ing” You’re throwing a couple of other strategies that are a bit more organic that are working for you, which is good old-fashioned networking. That will never go out of date. That will never be disrupted. Tech is not going to come in or regulation.

You always go out, shake hands and build relationships. That’s something we do as well with other investors. I believe in that model too. What first caught your attention about radio? What made you say, “I’m looking at the landscape of everything that’s out there but I’m going to take a risk on the radio.” Why did you make the jump? What attracted you? What characteristics?

I knew that building credibility and people knowing what you’re doing is a huge first step. When I think about radio, I’ve never heard someone do a radio advertisement and bang, that guy is going to try to pull one over on me. It’s like, “If he’s on the radio, he does this. He’s a professional. There’s no reason for me to call anybody else. Here’s the guy I need to talk to in every market across America now with it being so competitive.” If that person can say, “This is the guy. Here’s the professional in my area that does this,” I’ve realized that they don’t call anybody else. Almost everybody I’ll talk to, I’m the only call they made. I figured that that would be the case. That was the first thing that I was like, “I need to do this.”

Let me sum that up. I like to call it instant credibility. You’re right. The consumer or the seller makes this automatic assumption that he or she that is advertising on the radio is a professional and they know what they’re talking about. You don’t get on the radio unless you’ve somehow been filtered through some credible process, which isn’t necessarily true but that doesn’t matter because we’re talking about perception. The other perception you give with instant credibility is celebrity status. Not only are you professional, I’m also viewing you as a celebrity because celebrities are on radio and television.

The thing you said that I love is the fact that now on the calls that you’re getting, you’re not having a lot of competition. You’re the only person they’re calling. I know that you’ve seen this. If you’re doing direct mail, cold calling, RVM-ing, everyone is fighting over the same list. That’s going to create a lot of competition around whatever you’re doing but radio, those people aren’t list-dependent, which is what you’re finding is the first time that they’ve heard someone reach out because they’re not the one that’s got 50 postcards stacked up on their table. Are you finding that to be the case?

No. One of the things that in the program you can learn, answering those phone calls live is everything. They’re right there in their car and they’re in a position where they say, “I’ve been thinking about this. I did get that letter from the bank.” It’s like this emotional thing when they call and you answer, you got this calming effect, “I can solve this for you. It’s been everything for me.” The credibility is instantly there. They know that you’re the guy and I get calls all the time from people who me, “I just heard you on the radio.”

When someone feels connected to you personally and sees your credibility, closing business deals is easier to accomplish.

What I can pick up already is you’re a guy that reputation, being on-brand and brand awareness, is important to you. It’s no question in my mind why radio was a good fit because it played already into your business philosophy of, “I want to have a good and trusted brand because I realized in the long-term that reputation is going to matter most with my company.”

I’m connecting the dots and I’m going, “No wonder this guy’s loving radio.” Let’s talk about setting it up. People are like, “You decided to sign up, get in and start taking the course.” On a scale of 1 to 10, 10 being like, “This was a heavy lift,” 1 pretty simple, what would you rank the difficulty in getting set up on the radio?

It’s one.

It’s like a 2 or 3, the people reading are like, “One? Really?

Someone my age loves the video. Step-by-step, there is no, “Maybe I didn’t read that right. Maybe I didn’t interpret that right.” The step-by-step video and there are notes attached. It’s dummy-proof. That’s how you’ve set it up.

We build it in a way, that’s one way to say it. We also like to say, “It’s very instructional. It’s step by step. It’s the front blueprint. Follow the roadmap, that’s what you need to do.”

Going through the course was pretty straightforward and then there were actionable items immediately. “Here’s your first step, second step, the third step to moving towards being on the radio and starting to get calls.” It’s very easy.

Some other things you set up traditionally, can be a heavy lift. Direct mail is an example of that. There’s a lot that goes into launching a direct mail campaign. There’s the list, postcard and the company that’s going to mail it. In radio, what we find is and this is the best way I say it, “Set it and forget it.” Are you doing anything other than answering the phone when it rings now?

No. I decided to get my own microphone to record the ad from home. I recorded the ad, send it in and they started playing it and now I just get the phone call.

All you have to do is answer the phone. It’s pretty easy. Let’s talk about the success you have. You and I were saying you’ve been up for about several weeks. People are like, “It’s an easy setup but what have you accomplished within several weeks on the radio?” In the midst of our environment right now, which is challenging, what have you seen in the first several weeks from call volume? Have you picked up any deals? What are you seeing?

It’s about 6 weeks, 5 weeks on 1 station, 6 weeks on the other.

You got two stations you’re on?

 

Two stations, yes. I’ve gotten three contracts. One, I’ve already closed on. I’m going to fix and flip that one.

What’s the profit you think from that one conservatively?

Conservatively, $30,000 but could get up to $40,000 on it. The second contract I got is going to be a wholesale deal. This is not in our wheelhouse but it’s starting to be with this call volume and we can only flip so many at a time. I’ve got a third that I’ll close on. That will be another fix and flip. That’s a bigger, more conservatively, $45,000 to $55,000 on that one.

I’m going to drop your numbers. Let’s say that first flip, you only make $25,000 and then the wholesale, you and I were talking, you said maybe a little bit of a smaller wholesale but you thought somewhere around $7,000 on that. The other flip, what do you think, maybe another $25,000, $30,000, conservatively?

If we’re being real conservative, let’s go on $30,000.

I’m going to take all of those numbers. That’s $30,000 $40,000 $50,000, $55,000 plus another $7,000, that’s $62,000. How much money have you spent to generate $62,000?

A little over $3,000 if you add up.

How happy are you with that return so far?

I’m very pleased. Looking for more stations.

I’m super proud of you. I’m excited that you’re excited because you are looking for something that fit your personality, that supported your brand, that was professional, set it and forget it and now you’ve been up and you’ve got $62,000 in the pipeline to be closing and you’re just getting started. You’re going to be adding on more stations as well. What might be the biggest challenge of radio? Give people the flip side because I always like to ask this. It sounds too good to be true.

I would caution people, it does sound too good to be true but everything that was said is taking place. The one challenge that I’m facing and it’s not a challenge is I’m having to learn how I need to run that side of the business. I’ve been fixing and flipping. When these calls start coming in, I have in my head an idea of what I want to fix and flip. I have to take myself out and say, “It’s because I wouldn’t live in this location or this house doesn’t mean that there’s not another investor or somewhat homeowner if I did fix and flip it that would want to live there.”

I’ve had to step back and say, “It’s because I wouldn’t necessarily want this doesn’t mean another investor.” It’s looking at not just me but everyone in my community, who’s also in real estate and what they might want. Building up that wholesale business because that wasn’t originally what I came out to do, has been the challenge.

That’s a good challenge because it’s causing you to rethink your model. You’ve got something that’s producing great lead volume. You and I were talking, you got 7 calls alone and then you said out of those 7, they were all 100% straight quality for that time. That doesn’t happen every time but what happens with the seven calls? What did you see?

Once you start getting bigger volumes in your business, it’s time to adjust your business model to keep up with everything.

Those seven calls, everyone that called it was, “You’re the guy I heard on the radio, right?” They appreciate that.

You’re a celebrity. They didn’t expect you to answer the phone.

I called and he answered, I didn’t go to voicemail. I have a list of questions that I start with to qualify. I know within the first 30 seconds that this person is serious and motivated. Usually, I get 2 to 3 calls a day, that day was 7. It was an outstanding day but every last one of them fit exactly what I want. They’re frustrated with the tenant. They inherit it. They’re selling because the house has gotten trashed. All of them have motivation. They heard me and they haven’t gotten the mail and this other stuff. I was the first person that they heard, “Somebody might buy this thing and I can get some money.” It was a fabulous day.

That makes a great day. I love that volume again is causing you to rethink. What I hear potentially as a model for you is flip the best and wholesale the rest. You’re coming in, you’re cherry-picking, getting those big pops on the flips, which are great pays and the other stuff just wholesale out, consistently with those systems. I love the growth that I’m seeing. If you’re reading this, “I’m following, Chris,” you’ve been talking about this radio thing, you’re reading one testimony after another, I hope at this point you realize radio was one of the biggest secrets in my business for many years.

I’m teaching it now. I’ll also tell everyone this because I’m not coming into your market. I used to want to go to every market and then penetrate all those markets with radio. I got other businesses now. I’m coming down to Tulum. If I can help you do it over in your state, it doesn’t matter to me at this point but this is the most effective way I have ever been able to generate motivated sellers, without question.

That’s why I’ve been doing it for many years and I have spent as much as I had. If you’re reading, now is the time, to book a call. See if your market is open. We know that some of the markets are sold out because we limit the number of people that are coming in but go to WholesalingInc.com/REIRadio. I hope you’re coming like Myles. Within the first 5 or 6 weeks, we’ll be talking about deals that you’re picking up, which is amazing. Here’s my question. Radio has opened your mind a bit. What do you view as your vision for radio over the next year or two? Do you want to keep adding on more stations? What do you have as a plan based on what you’ve seen?

Once you start getting the volume, you have to adjust your model and what you’re doing. I’ve been thinking is the play to now go into other markets that are in my state? Maybe I’m in the upstate of South Carolina but what about mid-state, lower-state? How many calls will I get from there? Probably about the same.

Can I start a virtual wholesale side of the business? The people who call are motivated. They send you pictures. They talk you through what the situation is. Taking it from the first conversation to, “I have a signed contract,” is much easier from the radio. I’m thinking over the night, “I need to get what I got under control.”

Not you’ve been doing this for years but you’re an entrepreneur like me, you can’t even stop the mind from running, even though it might be doing it too soon. I hear you saying, “Maybe I will go into some different markets in my state. Maybe this will give me the ability to maybe do some virtual wholesaling.”

What I’m seeing is, it’s opening up the mind and potential doors but you’re going to be able to make the decision on whether or not you want to walk through this. If you’re reading and you always want to put a face with the name and you want to see the actual video, go to Chris Arnold – Real Estate on YouTube and subscribe. We’re always doing additional videos over there that we’re not doing on the actual show.

 

Here’s my last question. For our readers who for whatever reason at this point but still riding the fence, what would you tell our readers? Maybe they’re struggling a little bit. They’re trying to find a marketing channel they can trust, their situation threw them a curveball and they’re going, “Some of the stuff I’ve been doing is not working.” What would you tell them about radio? If they’re riding the fence, what would you want to leave the audience with?

Honestly, even if those numbers that were given out for the flips and what I’ve got, even if I were to conservatively wholesale on those, not only would it pay for jumping in, learning, getting into the program but it covers pretty much my entire year of marketing in these first few weeks. You don’t have much to lose. Let’s say it doesn’t go as well. You still are going to cover your bases and you’re still going to make money.

Worst case scenario, put some money in your pocket. Maybe not as much as you want to but you’re going to put some money in your pocket. There are so many other marketing channels and I’ve looked into all of them. They were expensive. The quality of calls and stuff, it’s not the same. I would encourage you and take the step. I can’t imagine you not getting your money.

It’s because we’re buying them at such a deep discount and being in the actual radio stations. For most of the students, once you close one deal, you’ve primarily paid for it for the whole year. That’s what I find with a lot of students. You’ve seen this as well. Everything else is like gravy on top after the first deal for the entire year. It’s a pretty good position to be in from a market. Myles, if people are listening and they’re like, “I like this guy. I’d like to maybe follow his story a little bit.” Where can people find you on social media?

I’m on Instagram. It’s @WeBuyHouses_UpstateSC. I’m also on Facebook at @UpstateHouseBuyers. You can find me and check me out there.

If someone’s got a deal in your area, they can always hit you up. I know you can move it as well. If they know a deal, send it over to you. I appreciate your time. Thanks for coming on. I want to applaud you. You’ve been a fantastic student. As we were laughing about the roadmap, as much as I want to say every student comes in and follows the roadmap. Not always true but you came in, you did exactly the way we showed it and boom, you got up. You’ve been successful and things have been going great for you. Well down on being highly teachable.

I appreciate it. Thank you.

Everyone else, thank you so much for joining us. Go to WholesalingInc.com/REIRadio. Get that call booked. Until next time, we will catch you soon when we add more value.

 

Important Links:

• Myles Daniel
• Chris Arnold – Real Estate – YouTube
• @WeBuyHouses_UpstateSC – Instagram
• @UpstateHouseBuyers – Facebook
• WholesalingInc.com/REIRadio
• https://www.Facebook.com/WholesalingInc/
• Be sure to join the Wholesaling Inc Facebook group

 

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!