Posted on: February 03, 2021

 

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!

WI 616 | Marketing Channel

 

Are you interested in analyzing your business to spend less money and get the same results with a marketing channel that people think is hard to use? If you can attest to how amazing radio is as a marketing channel, then listen on. In today’s show, brilliant REI coach Chris Arnold talks with one of the most successful real estate investors in the industry Tony Javier, who used a top-secret marketing channel with a 10X return on investment! This is the first installment of a two-part series where he gets granular about the marketing channel he uses that helped him generate motivated sellers and how he makes it work for him. He shares effective methods, strategies, and best practices so we can make educated decisions in our businesses. If you want to start the year with a marketing channel that truly delivers, you have to tune into this episode!

 

The Top-Secret Marketing Channel Capable of a 10X Return on Investment! – Part 1

Episode Transcription

As always, we’re super excited for you to be with us. You guys have been asking me about this. You guys know that we launched radio in 2020. It’s gone bonkers. I got a text from another student thanking us for how big of an impact radio has been. You can imagine the follow-up question that comes with radio all the time. It’s, “Chris, what about TV?” I wanted to focus on radio in 2021, making sure that we have been delivering you guys an incredible opportunity and making sure we help you get it set up, but everyone keeps pinging me, “TV, let’s go.”

I’ve done a lot of research. I wanted to find someone that literally had the same amount of experience and background as I have on the radio on TV. I’ve been doing radio for several years, and I wanted to find someone that’s been doing it that long, that has ridden that wave, seeing returns and have data. More importantly, this person I began to talk to and I say, “There’s a big need for this.” In the Wholesaling Inc. community, there are some people that are ready to rock and roll on some TV.

It’s here. We’re going to talk about it. Can you believe it? I’m doing a two-part series. I’ve not done this before because there’s so much for us to layout and get ready. We’re about to talk about another marketing channel like the radio that everyone knows about and nobody is doing it. Tony Javier, welcome to the show. I’ve enjoyed getting to know you. I’m in a little mastermind that you do. I have spent a lot of hours sizing you up. This isn’t a new thing. We’ve been talking quite a bit. I’m excited to have you on. Welcome.

Thanks for having me on. This is exciting. This is the show of the year. I’m super excited about this. I’m not saying that. Seriously, this is something I’ve been looking forward to since we had the schedule. I’m ready to rock this.

It’s a game-changer because the reality is most things are oversaturated now. People that are reading this are tired of a lot of the outbound stuff that requires a lot of time, particularly if you’re working a 9:00 to 5:00. Text blasting, it’s the same thing over and over. We’re coming in to talk about a marketing channel that there’s virtually no competition on as well. Let me back up, though. Let’s start with some credibility. Who’s this Tony Javier guy? How long have you been in the game? Tell us a little bit about your business. What are your credentials here for you as Tony Javier as an investor?

I’ve been in the business for many years. I got into the business by buying a course called No Down Payment by Carleton Sheets. A lot of you guys have probably heard of that. I bought that course and listened to the CDs and I got jumping into the game. Since then, I’ve done close to 1,000 flips. I’ve got a large rental portfolio. I’ve got a coworking space. I’ve got a lot of real estate-based businesses. I only work a few hours a week on my real estate investing business. Part of it is because of TV. It’s so automated. The other part is I have a phenomenal team that’s behind me doing my deals for me.

I’m laughing at this similarity because if you hear my story, it’s pretty much like that. I spend a few hours working on the investment side lifestyle, but you said it and we’re talking about it because there’s a marketing channel that gives you that type of freedom. It’s funny that we’re sitting somewhat in the same position, but mine happened through radio and yours happened through TV. I’m connecting the dots.

When people see you on TV, they feel like they know you, and it builds so much credibility in their minds.

I made it from Kansas to San Diego. I didn’t make it quite as far south as Tulum, Mexico. You may be a little up on me there.

San Diego, a couple of cities in the US that I would want to live in. I’ve got some boys out in San Diego. I go out and visit San Diego. It’s a cool city. You guys have some of the best weather in the entire United States, which is awesome. How did you come across TV? People ask me about radio like, “Chris, you’ve been doing it for several years.” You were over here when I started radio and several years ago with TV. How did you come across it? Where did this marriage and discovery begin?

I’ve got two stories. I technically started in 2005 doing TV. I don’t know if I told you this or not, Chris. I did TV for three months. At the time, I’d only been in the business for four years. Spending a few thousand dollars a month was a lot of money to me. After the third month, I’d spent almost $10,000. I stopped the commercial, and then all of a sudden, I got my first deal. I made some money on it. I got cold feet and stopped it.

It’s one of the biggest mistakes I’ve made in my career. I missed seven years of deals, credibility, branding and everything that we’re going to talk about that I wish I had back. In 2012, I was playing poker with a guy that was crushing on TV for a contracting business. I had seen his commercials. Honestly, he was celebrity status to me in a way because this is the first time I’d met him, but I’d seen him on TV. He’s a semi-celebrity. He’s like, “You got to call my media guy. I see your social media. I see all your stuff. You need to get on TV.”

Long story short, I called his media guy. We’ve been doing commercials for several years. It’s the most consistent marketing method that I have. It’s one of the best things that I’ve done for my real estate business. All the other marketing channels have been up and down. TV has been by far the most consistent.

You’re saying exactly what I tell everyone because I tell people I love radio the most and the most consistent. Watch as we talk. The parallels between radio and TV are very similar. These are like cousins to each other. That’s why you’re going to see a lot of the overlap. It’s funny, in your world, Tony, you and I have been experiencing some reassignments. We discovered each other. It’s like, “You get that with TV. I get that on the radio.” This is back and forth.

That’s what we’re going to start with. Here’s what you’re going to get. We’re going to talk about the ten benefits of radio. In this part one, we’re going to go with five and then we’re going to roll over into part two. Let’s get into the meat. The first one is credibility. I refer this to celebrity status, but here’s my question, Tony. What does credibility and celebrity status do for a brand when it comes specifically to television? When people see your ads on TV, what do you see here?

WI 616 | Marketing Channel

Marketing Channel: TV is a marketing method with little to no competition because people think it’s expensive to do TV or don’t feel confident about being on TV.

 

When I went and played poker with this guy that had been on TV for years, it was like I had known the guy. On TV, they see you. They feel like they know you, and it builds so much credibility in their mind. Think about the big brands out there. Why are they on TV? They are on TV because when you go to the grocery store, drive down the street or see their brand, they want you to buy their product.

It’s like cereal. When you go to the cereal aisle, typically you go to the name brands. You go to the brands that you’ve seen on TV that you’ve seen since you were a kid. You don’t usually go for the cheap brands unless you’re wanting to save some money. TV is the same way. It builds so much credibility. When you meet with people, they feel like they know you. It’s interesting. I live in San Diego. I invest in Wichita, Kansas. That’s where I do all my TV commercials.

I want to make sure I caught that. You’re using TV on a market that you’re not even in. I want to make sure we caught that. I don’t want you to fly past that. Keep going. That’s interesting.

I don’t go quite as often because of all this stuff that’s been going on. When I do go back to Wichita, every time almost someone will say something like, “You’re the guy on TV. You’re the real estate guy. I swear, I recognize you.” I get that all the time. All of a sudden, they realized like, “You’re that guy.” They start talking and opening up to me. I’m like, “This is cool.” Some people would be like, “You’re a celebrity.” Once they pay me to be on TV, I’m a celebrity, but you can call me a celebrity if you want to. People feel like they know you.

The way I like to describe this, and I’m curious to exchange some language. I might call one thing. You might call another. I feel like what you’re talking about with TV is what we refer to as authoritative marketing. It is a marketing channel that makes you almost instantly in authority in your market. Is that what you describe it with TV? When you go back, you feel a sense that, “I have authority in this city because I’m on TV.”

People respect you way more when you are on TV, and they’ve seen you many times on there. People will call me up or talk to me about it. I do the funding for people as well. I started funding deals in my market and other markets throughout the country. When I talked to people in my market, they’re like, “I’ve seen you on TV for so long, so much respect.” They’re not bowing down, but they feel like they’re talking to someone way above them. I’m an average guy like them, but I’m on TV. I’ve done a lot more deals, obviously. People think you’re the authority and because you’re on TV and they feel like they know you, once you say something to them, it’s going to be way more credible than if someone off the street came up to them and said, “Here’s how you do real estate.”

I call it instant credibility. There’s that know, like, trust you process we have to go through people. When they see you on the TV, you’ve already taken them there without ever meeting them because they get to know you. They like what they see on TV. They begin to trust you. You never even had a face-to-face conversation with them. That’s where you begin the sales process, which is amazing. Let’s go to number two. What type of competition are we seeing on TV, particularly utilizing it to generate motivated sellers? What do we see around the country?

People respect you way more when you are on TV, and they’ve seen you many times on there.

It’s little to no competition. People think it’s so expensive to do TV. People maybe don’t feel like they have a face or the confidence or whatever it is to be on TV. It’s not like clicking on a text message. It’s not like buying a list and sending out a bunch of mailers. It’s your face and your brand on the commercial that people are scared of doing for whatever reason. I don’t know what it is, but like radio, there’s little to no competition.

Every once in a while, I’ll see a commercial on the market and then I don’t see it for a long. My team tells me about it. They see a commercial come up and they’re like, “We’ve got a little competition,” and then all of a sudden, they’re off. People don’t know how to do it or they don’t have the confidence to do it. It’s a marketing method that no one’s talking about except for the people that are now talking about radio that are saying, “What else you got?” You’re like, “Maybe I’ve got TV. Let me find someone.” Here it is.

If I’m reading, I want to ask a couple of questions that I know people pop in their heads. Do I record the television ad with me in it or is this like an animated ad? You say people recognize you, but what are the options if someone’s reading, going like, “Does it have to be me on film? Maybe I don’t feel comfortable doing that. What are the options on the table?”

You can do it any which way. I’ve got a formula that I know works. I like to be on there for credibility, for people feeling like they know me also and not just the brand. I would highly recommend anybody who does TV to be on the commercial. We’ve got students now that we’re taking on that don’t want to be in the commercial, and that’s fine. They can either use my commercial with my information, my face and name, if they want to. We’ve had it to where we’ve branded with someone and used their picture in the commercial. That’s better than nothing.

I would highly recommend being in the commercial, but maybe someone’s shy, has a thick accent or they don’t feel like they want to be on TV or something like that. The students that I have, we produced the commercial to fit their needs, whether they want to be on TV and be the face of it or if they want their brand as part of it.

The flexibility is there because people have different opinions on how they sound and how they want to be on video or not. That’s cool. There’s flexibility. I don’t know that question. If I’m reading, I’m asking. Recording a radio ad seems like pretty reasonable to do. The production of an actual commercial, on a scale of 1 to 10, 10 being like, “This is difficult to do,” how hard is it to produce a commercial? Is it costly?

The good thing is we produce the commercial for our students, so they don’t have to go through all that. In fact, we even buy ads for them. We buy the media. We do pretty much everything for them, except for shoot the commercial and finalize their message. We’ve got scripts and things like that that we give our students that they take our scripts, put it into their own brand, tweak it a little bit. We handle most of that for you.

WI 616 | Marketing Channel

Marketing Channel: Being on TV is not as hard as people think because you don’t have to memorize your script. After all, it’s all easy to edit.

 

Even when I first started and didn’t have any of that, it wasn’t that hard. I wrote the script. I had my media guy go through it. He’s been doing it for a long time. He’s shot hundreds of commercials. He talked me through it. The first time was a little shaky. I’m a little nervous. I’m not sure what to expect. I walked out of there. I’m like, “It’s not that hard to do.” 8 or 9 years later, it’s easy. Honestly, he could hand me a script tomorrow that I have never seen before and I could pop on there and do it.

Once you do it once or twice, it becomes a lot easier. The thing about TV is you don’t have to memorize your script. When you see movies, people mess up all the time. When I go in there, there are days where I crush it. One take and it’s done pretty much. There are times where I fumble and I mess up, and it’s all edited. It’s all easy to edit. It’s not as hard as you think.

That’s good to know. If I’m reading, I’m wondering, “How complicated is it to produce?” It sounds like you guys do so much in this process that helps students get set up. The most important question always is the return on investment. We define that in our world with marketing by dollar per dollar return. If you’re new to real estate, what that means is for every dollar you spend in marketing, how many dollars do you get back? Tony, you are a KPI guy. You’d stock numbers like I do. What type of return on investment are you getting on TV? I like to give people the conservative, no bluffs, no BS. What are your KPIs?

What I tell my students is if you’re getting a 2 to 3 times return, it’s worth it. There are many other benefits that I’ll hopefully talk about outside of return on investment that aren’t trackable that the TV brings. If you can get a 2 to 3 times return on your investment, I feel like it’s worthwhile. I tell my students to shoot for 3 to 5 times return. That’s our goal. With tweaking it, eventually, we should hopefully get you to somewhere between 5X and 10X.

Plan on 2 to 3, hopefully, get 3 to 5 and then eventually get to a 10X spot. You asked me right before, you said, “Can you say 10X?” I can because in 2020, I did my numbers and we did 11.2X return on our investment. Do you know how much time I spent on that? Probably 1 or 2 hours the whole year. I shot two new commercials in 2020. We ran all the other commercials that have been produced for us and people have seen before. It took almost no time to do the TV other than my team answering the phone and doing the deals.

If you don’t mind me asking, how much do you spend on TV yourself? A lot of people would like to know. You’re a seasoned guy. You’ve been doing this a while. What money are you throwing around to see a 10X investment?

The thing is you don’t have to spend a lot of money. I’ve spent anywhere from $3,000 to $12,000. I’ve tested different kinds of price points. Now, I’ve gotten dialed down to where we spend less money and we get the same results because of the way we tweaked our ads. That’s part of my system. We know how to take what we’ve done and tweak it down to where we get a higher return on our investment. We’re spending about $4,000 a month now. That’s it.

It’s the assumption that radio is not affordable that kept everyone away. When I came in and started telling people that they could advertise on radio and start at 1,000 to 2,000, people were like, “It can’t be done.” All of a sudden, people all over the country are doing it. It’s the same assumption that sounds like with TV. We should probably have even a greater assumption because TV sounds more expensive. You’re saying I could pay between $3,000, if I want to go heavy, I’m up to $12,000. Now I’m on $5,000, $6,000, whatever you’re at. It’s such a reasonable amount. People are spending more on that on direct mail, and you’re not getting all the other benefits that we’re going to keep talking about, which is amazing.

Once you do something more than once, it becomes a lot easier.

Let’s go to number four. A lot of people reading don’t have time to launch a marketing channel. That’s going to be another job for them. A lot of students that I bring on the radio, they say this back to me all the time, “I wanted something that was set it and forget it.” My question for you, on television, how automated it is, what does that look like in that world? As I’m asking this, we’re already getting a sense of it, but I want to come out and ask you how automated this process is for TV to manage it long term.

I shot two commercials in 2020. It was mid to end of the year that I shot those two new commercials. I need to freshen it up a little bit, but I don’t spend a lot of time on it. We look at our numbers every once in a while. Honestly, I see deals come in and I see TV. I usually don’t check my numbers as long as I keep seeing TV as the lead source that comes through. I look at my data a few times a year at the most.

The biggest part of getting TV up and going is the initial part. It’s the message, the production, what stations do I go on? What TV shows do I target? All of that. That’s something we do all of that for our students. We make it so easy to do that because we’ve been doing it for several years. My media guy that’s on my team helps produce the commercials and buys the media. He’s been doing it for many years. He’s got my data. He’s been working with me.

He’s seen everything that I’ve done over the last several years that we’ve been on TV and we plug it in. It’s set it and forget it. Honestly, if I didn’t look at TV until the end of the year, I bet we’d still be fine. I’d probably still get somewhere between a 5X and 10X return on my money. Now we’re doing some extra things to dial our numbers down on some of our marketing. I may look at it a little bit more, but it’s not that much time and effort.

You compare it to cold calling, texting. Every single day, you or your assistant or somebody has to be doing something. If you do direct mail, you spend money to buy a list. You produce a postcard, it doesn’t work, you’ve got to redesign a postcard or buy a new list potentially. It’s so much less effort than any other marketing channel out there by far with radio.

It’s similar. I feel like as I hear you, this is the first time for us to sit down and meet to do this show-type feel. It’s almost like I’m interviewing myself about the overlap and the similarities. It’s exciting because in my mind, I’m like, “I know it’s got to be similar,” but it’s like, “Is that similar?” It’s a whole other channel that’s now available for people that are looking for something fresh.

Let’s go to number 5 out of the 10. That’s where we’ll start to wrap up. This is an interesting one. This is not one that I say, but I love that you brought it up. You talk about one of the fifth benefits of television is private money like private lenders. How is this working? Anyone that’s fix and flipping, not just wholesaling or maybe doing a bird-type method, needs to raise private capital. It’s got to start with that a lot of times, and you don’t want to use hard money and pay 12%, 14%, 2 and 4 points. How are you using this to raise private money? This is fantastic.

WI 616 | Marketing Channel

Marketing Channel: There are other benefits outside of return on investment that aren’t trackable that the TV brings. But, if you can get a 2 to 3 times return on your investment, it’s worthwhile.

 

Most people are paying 12%, 2 to 3 points for hard money for the most part. Experienced investors have private lenders that are less than that. I’m paying 0 points, 9% and I’ve got a ton of private lenders that a lot of them have mentioned that they’ve seen me on TV. When I have that conversation, it’s a lot easier for them. One instance in particular, though, and this has happened at least a couple of times, is I had an investor walk into my office, say, “I’ve seen your TV commercial. I want to invest in real estate. What do you have?”

We’re talking about it. I’m like, “We don’t wholesale, but we have a private lending program.” Within about a year period, he had several hundred thousand dollars invested with us. He brought in his parents, who had another $1 million that they were investing with us within about a twelve-month period.

It’s those benefits you get from doing a forte to market. This is what people can’t quantify. This is what you’re talking about. It’s the ability to be magnetic and to attract these types of opportunities. What a great example of how TV has added on the value in your company that you wouldn’t have gotten otherwise.

I’ve had a conversation with other investors that I’ve been introduced to, and then they’re like, “Yeah, I’ve seen your commercial.” Not only that, but we put our commercial on our website, too. People see the website, even if they haven’t seen the commercial, which most people have at this point in time. In fact, people sing our jingle to our guys that wear our logo on our shirt. They’re like, “I can’t get that jingle out of my head.” It sticks with people. They trust you. They feel like they know you and they’re way more likely to invest with you if they’ve seen you somewhere else, especially TV.

What a great marketing channel. I’m excited about this. We’re going out here marketing channel that again is wide open just like radio is. I’m not going to wait. I know there are some people reading going, “I’ve been waiting for this. I’m shopping at the bed. I want to get this set up. It’s done.” I know how that is. I’ve been in that position where I’ve been waiting for something. Let’s talk about this.

You are doing a program to help people set this up. What’s interesting is this is what’s referred to as a done-with-you system. As we’re wrapping up, if someone’s reading and going, “How do I get to Tony? I’ve been waiting for this,” what’s the whole thing in the sense of supporting students through the process? We’ve got a coaching program ready to go. This is fresh. This is the first show about this.

I started as a done-for-you method, but it’s a done with you because there is a little bit of work you need to do in the front end. To start with TV, you’ve got to have a script and a production team to produce it. You’ve got to go to the stations and negotiate with the stations. You’ve got to pick the right shows. You got to do all that. I’ve got years’ worth of data where we do most of that for you. We will negotiate with the TV stations. We will get the best deals because we’re doing this. We know what to ask the stations and what language to use. We produce the commercial for you.

Once you shoot the commercial, we take it, we produce it, and we get it online for you. We’ll help you come up with a jingle. We’ll help you with a tracking number. We do most of it for you. It’s done with you because you have to pick the message and tweak it. We give you scripts. We give you the things that we’ve done in the past. We give you the commercials that have worked and haven’t worked before. You know what to do and what potentially not to do. There are some things that we’ve changed up that we know don’t work.

It is highly recommended to be in the commercial so your brand could be known.

We do most of that for you. When you get into our program, within about 30 days, you should have a commercial up and running. You do it yourself. It would potentially take you months and you may not get the results you need. If you go directly to the stations with TV, they’re going to try and sell you their TV spots. They don’t know what everybody else is producing or offering. Someone like my media buyer that does the buying for you can look at the different stations of the different shows, compare them all and make an educated decision and make sure you’re getting the right thing.

It’s like radio. You can’t go and try to do these things from scratch because there are too many variables. We’ve had people try. You can figure it out and do it on your own and not have to pay for them to do it. It’s going to take you way too long. It’s like radio. There are many variables you have to get. I’m sorry, a TV station rep doesn’t know how to specifically set up television to generate motivated sell leads. You’re selling all types of widgets and services. There’s no way that they can understand uniquely every industry.

The last thing before we throw out where people can go to find you and so forth if you’re reading and you’d love to see Tony and what this guy is about, particularly because we’re talking about TV and it’s visual, go to Chris Arnold Real Estate at YouTube and subscribe. You can see the video over there, but here’s an important piece. I love that you did this, Tony. You’re doing exclusivity because you’re going to preserve television like I have bought to preserve radio. This isn’t free fall. They’re going to have to come in and then there’s going to be limited space per market. It’s going to work the same way.

We don’t want to flood the market too much, but there’s so much room in TV now that we can bring in probably 2 to 3 students per market. There’s exclusivity. That’s part of what our program is. We don’t want to flood the market with 10 to 15 investors doing the same thing. We want 2 to 3 in each market, which has plenty of deals for 2 to 3 students in each market to do.

This is the first show that’s been done on this. If you don’t want to do TV, go, it’s time. Everyone always asks me, “Chris, can you get me a special deal with whoever we’re working?” That’s my responsibility. Everybody wants a deal and a promo code. Go to Tony and set up a call and talk with him. If you listen to his podcasts and you’ll talk directly to Tony about this process. Go to RealEstateMastersTV.com/Chris, check out the landing page, take a look at this.

As I always tell everyone, do your due diligence and make sure it’s the right tool for you. For some of you guys, I’m excited. Tony, you and I started conversations like, “Tony, people keep hitting me up for TV. We’ve got to do something. We’ve got to present this. I need someone that can do this that has the experience,” and you do. I’m excited because I know that’s going to provide value to the tribe. It’s been exciting for me because radio changed people’s businesses.

I believe that TV and what you’re doing is going to do the exact same thing. Go check out the website, book a call with Tony, and jump in before the market starts selling out as well. Tony, thanks so much for coming on. We’re going to do part two. We will catch the rest of you in the next episode. Tony, thanks for providing value to the tribe members. To the rest of you, we will catch you soon, and we will add more value. I’ll talk to you later.

Thanks.

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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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