Posted on: November 04, 2020
WI 551 | Radio

 

Ever wonder how far you can take your wholesaling business if you use an amazing marketing channel? Today’s guest closed 7 deals in his first month and is $72,000 richer!

Graylan Stewart has been in the wholesaling business since September of 2018. Since he’s a brilliant marketer, finding and closing deals for him came easy.

However, aside from his superb marketing skills, Graylan credits his current success to the exceptional marketing channel he’s using: radio. In this episode, discover what Graylan’s experience with radio has been like so far.

As a bonus, you’ll also learn how to track your marketing from one of the industry’s best—Chris Arnold. Today’s episode is phenomenal and filled with gold nuggets, so don’t miss it!

From 7 Deals In His First 30 Days To Total Domination With Radio With Graylan Stewart

Episode Transcription

I always love interviewing one of our REI Radio students, particularly ones that have come in, and you are seeing traction in the first 30 to 60 days. We have Graylan Stewart on. You will hear what his experience has been, what his dollar for dollar return is, the deals he has closed, and what he’s got in the pipeline. We are going to break these KPIs down for you. What we’re seeing now is a student after student coming in, getting the radio up and going, getting that ball rolling, talking about how to get it going even faster, reinvesting, and getting more radio stations. Graylan, what’s up? Welcome to the show. I’m glad to have you.

Thanks a lot. I appreciate it.

For those that don’t know yet, please give us a quick snapshot of how long you have been in the game, where you are at, and a bit of the strategy you focused on.

I discovered wholesaling in September of 2018. I owned a marketing company. I was already familiar with dealing with the sales and marketing aspect, which this whole business is all of that, so I jumped right in. As soon as I discovered wholesaling, I was like, “That’s exactly what I need to be doing.” I started marketing right away. I had a website built within the first couple of days. I’ve got postcards because a lot of what we do in our marketing company is postcards. I ended up getting seven deals in my very first month. I closed on seven deals in October of ‘18.

How in the world did you close on seven deals? Back it up. What did you do to close on seven deals in the first month?

It was nuts. I discovered wholesaling maybe early to mid-September. I was trying to plan it to where the postcards would hit on Monday because my wife and I had a trip planned to Vegas. Long story short, I was getting calls on Saturday in Vegas. The postcards hit early. I was like, “This is a call.” I was nervous because it was my first seller call. I was like, “We’ve got to go to the room,” so I ran to the room.

Leaving the Texas Holdem table, and go into the room.

It was crazy. We were walking down the Strip, and I started getting calls. I’m like, “We’ve got to go to the room real fast. I spent money on this. I’m going to make it work.” I locked up two deals over the phone in Vegas for Oklahoma City on the first day I’ve got calls. Once we’ve got back home, we’ve got other stuff coming in and ended up getting seven deals locked up before the end of September 2018. Our first one closed on October 3rd, 2018. It was a pretty quick turnaround, and we closed on seven that month. We did $72,000 in my very first month.

What did that do for you? People are reading and going, “What?” You came out of the gates flying. What shifted in you, whether that was in your head or emotionally? What happened?

It was pretty awesome because my marketing company, on a good month, would bring in 50 and way less profit margin. It was cool. I was like, “This is exactly what I thought it would be.” I wasn’t surprised because I knew I could do it. It’s already what I have been doing for different things instead of having real estate as the vehicle. It was a light bulb like, “This is what I’m going to be doing forever.”

That was the moment you knew, “I can’t go back. Something has changed.” It’s like that old saying, “If you stretch something far enough, it will never return to that same position.” You can’t go back. I love that. People always love to know. Before radio, what has been your bread and butter strategy? Where have most of your opportunities been coming from?

I started as direct mail exclusively because that’s what I already knew. In the first four months or so, I was doing 70-plus every single month. I was like, “I’ve got to figure out somehow how to scale this.” I went down that path trying to figure that out. I added cold callers and that type of thing. That’s all I did. I did a little bit of RVM initially after the first couple of months. It took me a year to get down the right path until early 2020.

When I started, I figured out where I had the systems in place and getting people in place to help. Since January 2020, it has been a lot of Facebook, RVM, SMS, and cold calling. I’m still doing direct mail but it’s more targeted, not just blast list and that type. Also, we are getting referrals here and there and doing some JVing a little bit. For the most part, it was RVM, SMS, cold calling, Facebook, and then we added radio.

I hear a lot of that as well, as I talk to a lot of people. I was doing another podcast with Paul Lizell. It’s the foundational five. Many people are doing cold calling, RVM-ing, text blasting, and some digital marketing.

We do SEO. We have marketing companies, so we do that.

Sometimes in the real estate industry, you realize you could do it forever.

Let’s talk about this radio thing. You’re a guy that has been out there. You’ve got a lot of marketing strategies and a marketing background. This makes this show even more enjoyable. What first attracted you to radio? Why give it a try? What were the qualities where you’re like, “This is something. I would like to see how this works in my business?”

I saw one of your shows. It’s how I first reached out to you. I was like, “It makes sense what you say.” There’s no competition on the radio. There is one other guy on the station I’m on but that’s it. Whereas in SMS and RVMs, everybody does it. In cold calling, it’s the same thing. That’s what intrigued me. I was like, “I don’t even care what it costs. If there’s no competition, then it’s a no-brainer for me.”

It goes like, “Let me do something where there’s virtually no competition.” Talk about this again. As a marketing guy, you would agree with this. It doesn’t matter how good you are at work on the marketing strategy. If it’s saturated, it’s going to be difficult to get the ROI. At some point, it’s going to be hard to pull that out because the competition level throws everything off. Have you found that to be the case?

That’s true. The more saturated it is, the more difficult it is. However, if you have a good team in place and do your follow-ups as you should, you will still get deals. That’s what’s cool. I’m still doing those things, and we still get deals from those every month. I’m glad we added radio because now we’ve got more. I’m always looking for, “How can I add a few more deals per month? I have already maxed out all these other channels. What can I do to keep traction and gaining?”

 “If you are working on something that’s highly competitive or saturated, don’t throw it away.” Graylan is saying focus on the efficiency and speed because you will win that game based on speed and great follow-up. That’s some wisdom being shared right there as well, which is excellent. Everybody wants to know about setting up a radio. You set up a lot of different things. I have always loved this question. On a scale of 1 to 10, with 10 being super hard and 1 being easy, how difficult was it to set up radio and this whole program piece?

Setting up the whole concept behind it is super easy. We are always looking for deals because that’s our nature. Getting the right deal was the hardest part but getting it all set up was easy. I recorded my ad one day, and two days later, I was live. We’ve got a call the same day I was live the first day. That part was easy. Integrating that into our Podio was easier than any other channel because there are no extra things you have to do.

If you are reading, we always like to tell you the real story of radio. I always used to say there is one hurdle in radio, and that’s negotiating with these radio stations. We teach our students how to buy radio like you buy your real estate at a deeply discounted price. Can everyone run out and buy properties at $0.70 on the dollar? No. That requires some skill level. We are doing the same thing on the radio side as well. You get your radio set up. Let’s talk about the cost. If you don’t mind me asking, how much are you paying for the radio per month?

We are paying $1,200.

How many ads per month are you getting with $1,200?

I get 100.

How much is that per 60-second spot?

It’s $20 roughly.

It’s expensive. This is what I learned about radio as I was doing it. Would you have ever imagined you could have got on a radio station and advertised a 60-second spot for $20? It’s still crazy.

There’s no way. Supposedly, I have heard that there are even deals like that on TV. I don’t know. I’m not looking to it.

WI 551 | Radio

Radio: The more saturated it is, the more difficult it is. However, if you have a good team in place and do your follow-ups as you should, you will still get deals.

 

If there is, make it happen. We always say the thing that pushes people away from things like radio and TV as an assumption is that it’s not affordable. Graylan is at $1,200. Our student range for the first station is between $500 a month to $2,000. The majority of our students fall within that range. That’s reasonable to get up on that first station, start closing deals and snowball that into more stations, which is the goal. You and I were talking. In 60 days, you have gotten 34 calls. Is that correct?

Yes. There were 34 actual calls.

I want to break down some numbers. Here’s the thing I admire about Graylan. I was talking to him, and he was looking off to Excel at KPIs. I was like, “This guy knows his numbers.” We are going to talk KPIs because that’s the way I am. I love tracking everything. If we do the math on there, you are spending $1,200 a month. Multiply that by two. That’s $2,400. Divide that by the call volume, and your cost per lead is $70.

That’s every lead. That includes the people that are like, “Do you have anything for rent?” It’s all of those.

In every call, it’s $70. When we say the cost per lead, we are almost saying cost per call here. It’s interesting. Mine in Dallas is $72. You and I are running pretty close on that as well. Within this timeframe of 60 days, how many deals have you locked up under contract?

We have 6 under contract and 1 that’s on the way.

What do you call a contract on the way?

It’s a COW. We could talk to our team like, “Have we got any COWs?” They were like, “I’ve got 1 or 2,” or whatever. We use the acronym.

I told Graylan, “I’m going to use that language in my culture.” It’s cool. It’s like, “How many COWs have you got?” Contracts On the Way. I’m always excited when I hear something that someone hasn’t said before. If you are building culture, these little things matter. You have six deals. Of those, one is closed out already. You have another two deals that are closing. One is $20,000, and the other is a little bit smaller at $7,000 but we took everything you have produced in the first 60 days.

We figured conservatively that your dollar-for-dollar return is $13. Let me explain that if you’re new. The way to track marketing is to know your dollar for dollar is turned. If I spend a dollar, how many dollars do I get back? I always tell people with radio to expect $3 to $4, which is fundamentally tripling to quadrupling your investment. Graylan, because he’s got such a small ad spend in his market, he is getting $13 so far.

That’s a good return to start from $1 to $13. We want to check in with Graylan. That will drop a little bit but you will be way above me. I’m $3.50 in Dallas, which is great. With your ad spend being as little as it is, you will stay above $4 pretty easily as well. That’s awesome. I have another question for you. Now that you have set up the radio, is there anything else that has happened that you have liked as a characteristic? Some people are like, “I love that it’s set it and forget it. I don’t have to worry about it.” Others are like, “I love that I feel like I’m becoming an authority in my market. Vendors and people are calling me to do business.” Was there anything that you have seen yet in the first 60 days?

As far as a marketing standpoint, I do love that it’s set it and forget it because that’s the hardest part about being consistent in what you do in marketing. You’ve always got to set it up for the next month or whatever, whether it’s direct mail or RVMs. I do love that because you record the ad, they play it, and you are done. You just wait for the calls to come in. I love that the best.

The best way, you are a marketing guy, to be consistent is to automate the consistency. You can’t automate direct mail, things like that because they require a lot of tweaking. The thing about radio is it’s automated because we are outsourcing all the work to the radio company. They are responsible for playing the ads. Let me ask you this. Do you have to do anything else other than answer the phone and pay your bill monthly?

I don’t even answer the phone and pay the bill because it’s auto-draft. It’s 100% automated for me. It’s great.

Don’t be afraid to spend money. If you do it right, you’ll get that money back.

You’ve got my point, which I love. You are truly set it and forget it at this point. That’s interesting. I want to hit on that point. If you are not answering the phone yourself, who’s answering these calls?

I have two acquisition managers who take all the inbound leads, whether calls, Facebook leads, or whatever it is. They are responsible for that.

What has been their fill on the first 60 days comparing this lead volume to something like direct mail? Have they said anything to you about the quality of the lead? “We are not getting hate calls or what?”

They know that those are hot leads. On occasion, you get one that, “Have you got something for rent?” For the most part, it’s somebody ready to sell their house. They trust you because you are on the radio. It’s not someone reaching out to you cold by email, text, RVM or direct mail. These are people wanting to talk to you. That’s what’s cool.

You find that you are starting at a different place further down the know me, like me, and trust me than you are with the other sources. How much further do you feel like you are down that road with the radio lead versus something that’s cold call or text? What’s the difference?

Here’s a good way that I would say it. We follow up 12 to 15 times to get a contract on an average deal that we get. On the radio, it’s 1/3 to 1/2 of that because you have already skipped half of those steps. They already know and trust who you are, and they reached out to you. I would say that it takes maybe six follow-ups.

That frees up your system and time because you do not have to do as much follow-up to get this deal back. You and I were talking about efficiency by nature. People that have spoken to me are like, “I want to expand my marketing strategy but I don’t want to feel like I launched an entirely new job position when I do that.” What Graylan and I are saying as we talk through this is the great thing about the radio. It’s set it and forget it, but there is a lot less stress on the system overall. That may be a good way to do it. It’s pretty low maintenance versus something that would be high maintenance.

That’s a good way to put it.

Where do you potentially want to go with the radio? Do you think you want to add more stations or sit where you are at? I’m sure your wheels are starting to spin a little bit. What do you think your next plan of action is?

I would love to add more stations because the hardest part is negotiating these deals. Hopefully, as time goes on, I will have stations reach out to me and have the upper hand as far as negotiating goes. I will add as many as I can. I’m not afraid to spend money. I want to spend a lot of money because I know I will get that money back. I’m all about that.

The odds are definitely in your favor. I want to speak to that, Graylan, and you are not there yet. I have interviewed Mitch Coluzzi. He was on a previous episode. If I remember correctly, he had somewhere around 11 to 12 stations in his market. Joe Theriault was another guy I interviewed on REI Radio. He had fifteen, if I remember correctly.

Those guys have told me, which is the same where I’m at this point, they don’t call radio stations. At that point, you are being heard all over your market. They call you. I love what Mitch says, “I hold the trump card.” I have the authority at that point because they initiated the call. They are now calling me to ask me if I would consider advertising on their station.

Again, that’s starting at a much different position than that first station, which you are like, “I’m Graylan. I’m interested.” They were like, “Who are you?” All I’m going to tell you is to give it a little bit of time as your message gets out there and you get on another couple of stations. Before you know it, they will be knocking on your door. We always say the stations can sometimes be a little bit cocky, and you will get what you want.

I can’t wait for that. It’s like the leads that are coming in. It’s reversed. With the radio stations, you are skipping all those steps in this case.

WI 551 | Radio

Radio: You don’t have tons of competitors, which is one of the great things about radio. It won’t get saturated like a lot of other things do a lot of times.

 

The tables will turn. This is business-planning time. We were in October 2020. If you are not, I would be telling you, “In the fourth quarter, we start our business planning so that we have our plan done. We do everything we need to do to be able to execute and get everything ready to fall through with that plan come 2021.” You always want to plant that seed and do your business planning in October 2020. If you are trying to decide what you will do, radio is the way to go.

Here’s the other thing I would say and always remind our students. We are coming out of a very challenging season. Let’s remind ourselves of one of the more challenging years that we have had. 2020 has not been a normal year. I remind people, “Can you imagine 2021 when things are back to normal?” We’ve got elections going on, you’ve got COVID this 2020, and all of those types of things, and we were talking about you getting a $1 to $13 return during the midst of a crazy time.

This is the time for radio. Book a call and find out if your market is open. We run exclusivity. Go to WholesalingInc.com/REIRadio. Come into this community. Graylan, you are in the alumni with this as well. We want to take this way further than radio. We want to work with our students past the point of moving them from entrepreneurs in the sense of working in the business to entrepreneurs who work on the business. We are turning them into businesses.

Graylan, you are already like that. You are not even taking the calls, which is great. Wrapping up, if someone is reading and going, “I heard about this a couple of months ago. This has now been the 3rd or 4th one. Should I make this decision?” What would you tell someone that may be on the fence, “Is this radio a potentially good marketing channel to add to my tool belt?” What would you tell them?

I would say it’s worth it. Your first deal more than pays for it, and you are getting infinity returns from thereon. It’s worth it, especially if you can get in now while your city is open. You don’t have tons of competitors, which is one of the great things I loved about it. It won’t get saturated like a lot of other things do a lot of times. If you do hear other competitors come on later, you know that they paid a lot more than you because they don’t know how to negotiate it.

There is a copycat’s way of overpaying what we paid for it. That’s our secret sauce, and I love that you know that. They will go out of business because they don’t know how to buy radio as we do. Thank you so much for tuning in. Graylan, thanks for coming on. I can tell you are a savvy guy and running this thing like a business. You’ve got in with radio, did what you need to do, and executed on it. You’ve got it out, and now we will talk about how to snowball this thing for you. To the rest of you, thanks for reading. Until next time. We will talk to you soon when we add more value. Talk to you later.

I appreciate it.

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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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