If you’re part of the tribe, it’s highly likely that you’ve heard of today’s guest. He’s one of the most successful wholesalers, and he has graced the podcast several times!
Zack Boothe is a rockstar wholesaler whose journey has been both fascinating and inspirational. From living paycheck to paycheck, he’s now considered one of the best in the wholesaling space.
In this episode, listen in as Zack shared what his experience has been like when he embarked on a new adventure—advertising on radio!
If you’d like to try radio but would like to know what to expect and what’s in it for you, this episode is exactly what you need to hear!
How A Former Window Washer Landed A $38k Deal With A Radio Ad With Zack Boothe
I’ve got Zack Boothe. If you’re a part of the tribe, you know that name. Zack’s definitely a player and has been in the game for a while. You’re going to hear probably one of the craziest stories about radio so far on Zack’s journey. I’m going to go ahead and give you a little bit of the climax of what you’re going to read. He’s closed his first deal and put $38,000 in his pocket off his first radio deal, but you’ve got to know how in the world he got here from where he started. Zack, what’s up? Glad to have you on the show. How are you?
I am doing great, Chris. Thanks for having me. It’s fun to be back on the show again.
If someone’s reading for the first time and maybe they don’t know Zack, give us a little bit about your background snapshot. What market are you in? What deals are you doing in the sense of strategy? What have you got going on?
My name’s Zack Boothe. You can follow me on social media and stuff if you want to but I was a window cleaner for nearly a decade. I was struggling. I had spent tens of thousands of dollars on coaching. I wasn’t doing any real estate deals and it sucked. I was living paycheck to paycheck. I had some debt and it was painful. I met Cody Hofhine here in Utah because he’s in my market, so I’m here in Salt Lake City, Utah, and he opened up my eyes to the potential and what I could do and do for my family.
Wholesaling Inc. gave me an opportunity to learn how to find discounted properties. I had some struggles along the way, but ultimately, I found success and was able to pay off my debts, create financial freedom, and I’m able to help other people as well now. It’s been an amazing journey. It was super awesome to be able to meet Chris. He’s added so much value to my business as well. I’m a huge fan of everything that you, Chris, and all of Wholesaling Inc. do.
We love having you and hanging out with you for sure. I love how your brain works because you look at things a little bit differently, so I’m always picking up how Zack approaches something, which is cool. You’re a little bit more contrarian, which I value because you do things your own way. People always like to know before radio because everyone’s like, “Let’s talk about lead generation,” and how are you creating opportunities to find wholesale deals and flip deals. What were you using before radio that was working to create discounted opportunities for deals?
I’m still using and I was using driving for dollars. I love it. I teach it. I feel there’s no other better way to get started when you’re starting out in this business. With any other lead generation source, there’s a certain point where you tap out your entire market. You own your market with that marketing strategy. I found myself in that position with driving for dollars. I wanted more, so I had learned early on that real estate investing is marketing.
This is one of the big reasons that catapulted me to success. It’s not wholesaling, flipping houses, or buy and hold investing. If you are not consistently finding discounted properties, you’re not going to be in business for long. If you know everything in the world about investing and do not have any discounted deals, you’ll go out of business within a few weeks, as soon as you’re out of money.
The first domino. If that domino doesn’t fall, it doesn’t matter about any domino you have stacked behind it. I completely agree with you. Before we hop into the crazy story of how you and I met and how you got launched on radio, from a characteristic standpoint, tell me what attracted you to the marketing channel of radio? What made you go, “This might be a great fit for my lead generation strategy.” What was it characteristically?
I got introduced to you through someone else that I trusted and I thought, “If it’s making Chris money, why can’t it make me money?” Honestly, that was the number one reason. I don’t care if it’s driving for dollars, radio, or TV ads if someone can show me, and I trust that person that if he can produce a profitable lead generation source, I want to know more.
Yours was straightforward. I hear a lot of people come in and it’s like, “Set it and forget it. It’s a high-quality lead.” You’re like, “If it makes money, I’m in.”
I don’t care if I’m selling toilet paper, underwear. Make me some money. My brain’s way too simple for thinking strategically about these things.
With any other lead generation source, there’s a certain point where you tap out your entire market.
Here’s the story, so I’m talking with Tom Krol and Tom’s like, “I need you in 48 hours to book a ticket and fly down to Florida to meet me and some other people.” This is typical Tom Krol, which I love. I know Brent Daniels is going down there. I have a great relationship with him. He’s a good buddy of mine. I don’t know who else is going to be there. We get down there, and I meet you, Derek, and some other people. We have this concept of exchanging ideas, this little bit of a mastermind, but here’s where it gets funny.
At the end of it, Tom’s like, “We’re going to take you guys pheasant hunting.” I’m not a hunter at all, but I love adventure, so I’m like, “Pheasant hunting? I’m in.” This will be something I can check off my bucket list of That Was a Poor Experience. We go out at this place, and it’s the full thing. We got the whole garb, the hats, the camouflage, the guns. What were the things that we rode in? Those big things? What are they called?
They have these big buggies. I don’t even know. You can go through the Florida marshes.
It’s something you would go on a safari with, like in Tanzania or Kenya.
You missed the point. Tom rode us there in a limousine. No sense at all.
You’d think we were going to Vegas or something like that but no. We’re going hunting. We showed up in that limousine out in the middle of nowhere.
All these rednecks are like, “Someone’s going to get shot.”
It’s Typical City. Have you ever seen that movie, Typical City? I know that Zack is an avid hunter by this time, so they’re like, “You need to get into your buggies.” There are three of them. Everyone’s talking, hanging out, and I see Zack get in the front one and I’m like, “I need to go with that guy,” because I’m like, “Am I going to want to be beside Brent Daniels or Tom when they hunt? Maybe talking about business, but again, I always want to be around the best.” I know Zack.
You go out and get lost in the woods for a month. You’re the guy that kills a buck and hauls it over your shoulder like Rambo. This is Zack. I’m like, “I’m going with Zack.” On this hunting trip, we started talking about radio and you know that I’m about to launch REI Radio. The thing I learned about Zack real quick is that he wants to do something when he sets his mind on something. Zack, you’re like, “What do I have to do, Chris, for me to be the first person even before you launch REI Radio to help me set up radio in your market?” Do you remember this?
I remember 100%. I know that I annoyed the hell out of you.
I’ve got all this going on and I’m about to launch this program. Zack’s like, “It’s awesome.” By the time we finished hunting, though, I got to like you because I got to know you a lot more while hunting. You helped me kill pheasants. We had such a good time. You hit your maximum, of course, because with a gun. You’re the guy that throws it behind his back and shoots. When I got back after this whole trip, you hit me up immediately, 2 or 3 times, “What do I have to do?” I’m like, “This guy is not going to give up. I’m going to help him set up radio.” Zack, were there any modules for you to watch at this point?
No. I got one-on-one with Chris Arnold. It was great.
Radio Advertisement: In wholesaling, it will take you a long time to get your first radio station, but it will be worth it.
Are there any other students to hear about their testimonials of how it was working?
Nope. It’s just your and Tom’s word that you knew what you were doing. That’s it.
You’re this anomaly so you and I get on the phone and I verbally explain how to do radio. There’s no written-out format at this point. We haven’t methodically built this thing out. You head off on radio. Interestingly, we’ve talked about the negotiating part being the most challenging part. When you got up. Talk a little bit about your initial experience with negotiating. You didn’t get in and make it happen. It was a mental challenge for you.
It’s a huge mental challenge. It took me over six months to get my first radio station. That was not because I was trying hard. That was because I’d given up. I got discouraged because Chris is like, “When you have these many listeners, this is your price.” I went through and did everything you told me to evaluate what I should be paying for these ads. I’m like, “I want to pay $14 an ad.” They’re like, “That ad is $65 an ad. $14 versus $40.” It’s 1/4, sometimes 1/5 of what they’re asking for. I’m offering 1/4 to 1/5. I’m like, “Nope. Chris said that’s the price I should get. I’m not going any higher. Call me when you’re ready.” I remember sweating bullets, “This is aggressive. I don’t think that I’ll ever get this.”
You didn’t have any other students to hear the success stories. I didn’t have X amount of people I could line up, but here’s what happened. We launched REI Radio, and time went by. Zack, you set it down and go work on other things, which is normal. If you get discouraged, you’re like, “I’m going to go do something else.” It kept bothering me because I’m seeing all these students get set up and there’s that competitiveness to me going, “I want the first guy that I ever talked about radio before we launched to get up.”
All of a sudden, I start nudging and poking you. I was like, “You should call those radio stations back.” You’re like, “Ugh.” I’m like, “I’ve got all of these students that are up on radio and you’re not.” I’m trying to edge you on a little bit and poke you. I don’t know what happened, but you responded. You pick up the phone, you get back at it, and what happens?
I landed three contracts in the first couple of weeks.
Three radio stations.
I’m signing my 4th contract with the 4th radio station. The crazy thing Chris, about all this is you have some of the same students that I have. I’m on these support calls with my students and I’m like, “How are things going?” They’re like, “I’m negotiating a deal now. Can you help me?” I’m like, “Yes. Let’s talk about it. Where’d this deal come from?” They’re like, “Radio.” I’m like, “What am I doing? I paid so much money to Chris. He gave me the whole system. Why have I not set this up?” This has happened.
Jay did a testimonial. I saw that come in, so Jay’s talking about it. He’s in Phoenix. Marin and Roy are from the Midwest. Those are two of the students. We’re working through their deals and I’m talking to them. I love my students. I’m involved with what they’re doing and I’m like, “This is working for them. Come on, Zack. Quit slacking.” You texted me and I was like, “Okay.”
All you’re saying is you got shut down at that point. Being on your own is hard to do, but here’s the value and my takeaway from it. Zack, you’re highly intelligent. There’s no question that you’re a go-getter. The one thing you didn’t have was the community, the support, and those around you to hold you accountable. You were on an island under yourself because technically, you weren’t in the REI Radio community.
You were this anomaly that convinced me to help you set it up before we ever got started. Through that community process, my REI Radio community is now overlapping into your community and suddenly, there comes accountability. You get radio set up. What type of success have you seen so far since you launched, and how long have you been live?
To be able to run like a business, you’ve got to be able to have things that generate enough profit for you.
I can give you some exact numbers. I had my KPIs pulled up for you guys to be able to know this. I’m going to read them off to you. I got my first contracts and got some things up and going. The first two went live the next month. The first one went live. A couple of weeks later, I got the second, and a week later, I got the third. I’m getting my fourth. I only have a couple of months of data, which is fun to see because we’re already getting awesome results. It is August 17th, 2020, but I can show you my June and July expenses.
We figured those together. We figured that between June and July 2020, you spent a total of $12,000.
Give or take a few hundred dollars.
You don’t have to spend that much, but again Zack has the budget. He’s more seasoned to do that. We always tell people that you can start around $1,000 to maybe $2,000, but Zack comes out swinging, so you spend about $12,000 in two months and you close the deal for $38,000. You have another deal now that’s got multiple offers on. We figure that that conservatively is going to sell for what, based on your offer?
Around $20,000. I’ve got offers at $16,000. I have a bunch of offers coming in. My acquisition manager texted me that we should make pretty close to $25,000. Conservatively we should make about $20,000.
If we take the $38,000 that’s closed, plus the $20,000 conservative, that puts you at $58,000. You spent $12,000. From a dollar-per-dollar return right off the bat, you’re at $4.80 for the dollar that you spent. That’s amazing. $3 to $4 is what I set as an expectation. You’re $0.80 above what I consider to be a good return. You’re at $4.80. How does that feel?
It feels awesome because I have an awesome lead generation system, but now I have another one. I have another tool in my belt to generate deals. I always look at it this way and I tell people, if you can spend less than 25% of your gross income on marketing, you can have a 50% profit margin wholesaling business. That’s paying an acquisition manager and everything else.
Let me break that down. You spend 25% of what comes in on marketing. The other 25% goes to operations and acquisitions commissions. Your goal then is to have a business that has a 50% profit margin. If you’re newer to business, 50% is high.
It’s bonkers. When I washed windows, at 10%, I was like, “Yeah, 10%.”
Most companies are running 10%, 15%, 25% profit margins in the world of business is bragging rights. Fifty percent, I agree, is pretty bonkers on what you’re doing. Radio fits this model and is allowing you to put 50% of the money that comes in off of radio right in your pocket.
For me, it’s a no-brainer. It’s a money machine. I always tell my students, “Have a good lead generation system.” I feel this way about radio now, but I feel this way about driving for dollars as well. If you go to Vegas and you sit down at a lottery machine or one of those machines, I’ve never even gone to Vegas. I’ve been, but I’ve never gambled. You throw a dollar in, hit the money machine and $100 comes out. You throw in another dollar and another $100 comes out. If you throw in a dollar and $1,000 comes out. If you do that over and over, are you ever going to get up from that table and go to another machine?
Radio Advertisement: Real estate investing is marketing. If you don’t have a marketing channel, you need to start. You need to find a way to make it happen and come up with the money, whatever it takes, and start your marketing after.
You’re going to keep pumping that machine and taking that money home. I tell my students, I tell everyone on this, “Find a marketing channel like REI Radio that can continue to pump money into your business because that is essentially what’s serving you. That’s going to allow you to have financial freedom. Also, to have the time freedom, to be able to afford to pay people to service these leads for you, and serve other people in whatever way you want to, and have a fulfilling life, not chasing the dollar every day.”
That’s well said because you have the mindset of not running this thing. You own a job, but you truly own a business. To run it like a business, you’ve got to be able to have things that generate enough profit for you to be able to spend things money on salaries, spend things money on tech and those types of things. It costs money to not be the one that’s the solopreneur but to have your team do it for you, which I love.
If you’re reading, I highly recommend you to go to Chris Arnold Real Estate. Pop on over there to do that. Zack, now that radio is up and I’m laughing because you’re so simplistic, which I love in your response of, “I like radio because it makes me money.” Outside of the fact that it’s being profitable for you, what are a couple of things now that you like about radio in the sense of the qualities it has versus other traditional stuff?
My big thing is I’m simple.
You owned it.
I’m a simple dude. If I don’t understand it, I don’t like it. If someone tries to teach me something and they struggle to explain it to me, I run for the hills.
Are you saying that you like radio because it’s not overly complicated?
Yes, it’s simple. You gave me the step by step of exactly what to look for. You have all these radio stations and you narrowed it down. These are the radio stations. You said these are the criteria that you look for. You had me figure out exactly what I should offer and you explained exactly how to negotiate that. Once that was all done, it’s running. It’s done.
Any good marketing guy or sales guy who has their scripts and systems down know exactly what to do and what to expect. For me, that’s what I loved about your radio system because there are probably other guys that could teach radio or talk about radio, but they probably don’t have it as simple as you do. That’s probably what I liked most about the radio that you shared with me, the radio marketing system.
That’s a big deal because if you’re newer, you’re overwhelmed with information overload. You know what it felt to be in the beginning stages of like, “Where do I start?” The idea is you can launch a marketing channel that isn’t overly complicated to understand, and more importantly, it’s not overly complicated to run. One student told me, “Chris, when I launch a marketing channel for my business, I don’t want to feel like I launched an entirely new full-time job for myself. I want to be able to launch something that has the simplicity that gives me the freedom to be able to balance all the things in my life that I need to balance.” The point that you’re hitting on is an important point. It’s the fact that radio has a lot of simplicity to it.
Any good marketing system like radio is a plug-and-play. It’s truly a money machine. You put the people, or you put the system in place and it generates leads and money. If you go, “I want to build my net worth, I’m going to keep one as a rental.” You can do that or you can wholesale everything and travel the world. Your lead generation system should serve you. REI Radio does a fantastic job of adding to my marketing channels.
That’s exactly what we want to accomplish. I love that you convinced me when we were hunting to go on this journey. You’re looking now going, “I’m glad that I was persistent.” Let’s talk about one of the key things, and that’s buying radio at a discount price. I had someone that came to me that launched radio outside of REI Radio. Funny enough, they ended up joining because it wasn’t launched properly. I know some people are like, “I get it.” If I can go do it without paying somebody to do it, I’m going to go do it. I’m not blaming anyone for that concept.
If any of you are struggling to have anything in your life, if you want more money and love, focus on giving away whatever you’re trying to receive.
You can’t do that with radio because even though it’s simple, there’s a specific way that you have to line up all of the variables. How long your ad is, what you say in your ad, when your ad should play, what station you should negotiate on or be on, and what price. All of those types of things add up and you have a lot of decisions to make. To give the audience an idea, how much are you paying for a 60-second spot on some of the stations you’re on now? Rattle off.
It depends on the accumulative.
Keep it simple.
It’s anywhere between $14 an ad to $30 an ad for a one-minute spot pre-primetime.
Let me put this into perspective. For a 60 second spot on the radio, Zack is paying between $14 to $30. I hope that you understand how inexpensive it is to know that you can get 60 seconds of radio airtime, in which millions of people or hundreds of thousands if you’re in a smaller market, are hearing this advertisement. It’s crazy that you can negotiate that price. Zack, what you figured out is if you had not hired myself and the community to help you build this, how many times more would you have been paying?
If I had to go on with the marketed price, one of the $14 ads, they were saying the lowest they’d go is $45 an ad. They started it at $55 an ad. I had other ads that were $120 an ad. I got them down to $30 an ad, 1/4 of the price. Remember what I said, “Twenty percent of whatever I’m making is going towards marketing?” If I had paid four times that, that means I would have been paying 80% or more of whatever I was making on marketing. I would’ve had to get a second job to pay my team to service those leads.
It’s no different than real estate. All the profit is made on the purchase. The same is true with radio and here’s why I tell people who are trying to set up radio. If you want to try it out outside of REI Radio, be my guest, but I’m giving you the feedback I’ve gotten. We are teaching fundamentally and the secret is how to buy radio at fundamentally $0.25 or $0.50 on the dollar. If you are getting into real estate and are an investor and didn’t know better, but to pay retail. All of a sudden, someone comes along and says, “I’m going to show you how to buy a house at $0.60 to $0.70 on the dollar.” That will probably catch your attention if you’ve been paying retail. Do you agree with that analogy, Zack?
A hundred percent. I did that, though. I got my first flip off of the MLS and lost money. I was like, “Shoot. This doesn’t work. I need to find a way to wholesaling.”
Zack, they’re paying retail for radio. If you call the radio station, if you hire a media company, I got to be honest with you, they don’t have the mindset of buying what we’re buying at $0.25, $0.50. That’s what Zack hit home with me. He’s like, “Chris, the best value you added to me is number one, showed me what to buy it at. Number two, you proved to me over time that it was possible.” That was your hurdle. You were like, “They’re going to come down 75% from where they are?” Did they?
They did. The frustrating thing is I had followed up probably once a week for 1.5 to 2 months. I was like, “Maybe this Chris Arnold guy is not all he’s cracked up to be.” I love you now, Chris, but there was a moment when I doubted you, but you stayed with me and encouraged me. I started seeing some of these other people around me finding success. I was like, “You’re slacking, Zack. Get back at it.” I’m grateful for that because now I have this other marketing channel. My hope, my expectation, I feel this fourth radio station is about all I’m going to want to do in my market. If the numbers hold true, this is going to add another $500,000 a year to my business and another $250,000 to my own pocket a year. That’s crazy.
That’s why I tell people I know from experience being in the game over fifteen years that radio, without question, is the best marketing channel that I’ve ever put in place for my business. That’s the only thing I’ve kept around for more than years, as long as I’ve been doing it because it’s been a consistently profitable year in and year out. I want to tell you that I’m proud of you. I’m proud that when I got in and edged you on a little bit and, more importantly, that you were teachable. It sounds like you had a moment in which your students taught you and challenged you.
Have you found that through being a coach?
Yeah, that’s what I was going to say. Isn’t that the beautiful thing about coaching? We go into coaching and all of a sudden, our students teach us so much about ourselves.
Radio Advertisement: If you are not consistently finding discounted properties, you’re not going to be in business for long. You can know everything in the world about investing and not have any discounted deals.
I want to say this to your readers. If any of you are struggling to have anything in your life, want more money, or want more love in your life, I want you to focus on giving away whatever you’re trying to receive. If you’re trying to make more money in your business, I want you to think about how you can put more money into someone else’s business?
If you start to focus on giving, for some reason, everything will come back. When I started teaching my students about how to make money and talking about driving for dollars and that stuff, I learned so much more than for my students than I ever could have imagined. I feel so grateful that I found that when I did and how I did. It’s being a coach, being a mentor. As you know, Chris, it’s the most fulfilling thing in the world and for some reason, it keeps coming back.
It’s the same with my students. Our students are so creative around radio that sometimes I talk with my team, I’m like, “How did that student come up with that? We never thought about that.” That’s the value of being in a community. It’s that forced multiplier of creativity and idea. I’m sure at this point you’ve heard us talk about radio. We have one student after another coming on and talking about the value of this and their business.
What I recommend you do is book a call. See if your market is open. We have markets at this point that have been sold out so you could potentially lose the opportunity because we want to preserve it. We don’t want to oversaturate the country with it. Go to WholesalingInc.com/reiradio and book a call. Zack, if somebody is on the fence, what’s the last thing that you would tell that person that’s going, “Should I make this decision on radio?” I’ve been there. It’s like, “Should I cross this line? Should I pull the trigger?” What would you tell that person who’s reading right now?
Real estate investing is marketing. If you don’t have a marketing channel, you need to start. You need to find a way to make it happen and come up with the money, whatever it takes, and start your marketing.
Zack, I’m proud of you. I was so excited about doing this podcast because it closed this whole thing full circle for you and this crazy story. It started with you and me on a big safari-looking thing, shooting pheasants with a couple of dogs and a hunting guide. That’s crazy and now we’re here. In those moments, you never know where the relationship’s going to end up. It’s such a comical story in my mind of how this whole thing played out. To the rest of you, thank you so much for reading. Until next time. We will catch you soon and we will add more value. Talk to you soon. Thanks so much.
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!