Posted on: April 14, 2021
WI 666 | Wholesaler

 

Using radio as a medium to getting things out on air is effective, especially if you want to get massive deals in the wholesaling business.

Chris Arnold interviews Jeff Anderson, an REI Radio student who has accomplished much in executing and closing deals in just the span of two and a half months. He is closing deals in markets virtually.

In this episode, Jeff breaks down the deals that he closed virtually. He will share his hacks, shortcuts, strategies, and system to get deals even without meeting and shaking hands with his buyers.

Hesitant to try radio advertising for your wholesaling business? Get the push from Jeff. Don’t miss this episode!

How A Radio Veteran Turned Wholesaler Is Crushing It With Radio Ads With Jeff Anderson

Using radio as a medium to getting things out on air is effective, especially in getting massive deals in the wholesaling business. In the show is Jeff Anderson, an REI Radio student who has accomplished so much in executing and closing deals in just two and a half months.

Episode Transcription

I’m grateful that you join us. I’m going to bring the heat, bring you some value as always. Here’s what in store for you. A twofold value piece that we’re bringing to the table. I got Jeff Anderson on, who is an REI Radio student. We’re going to go in and talk about what Jeff has already accomplished in two and a half months. The deals that are not just executed but already closed, put in his pocket and what he’s got in his pipeline.

This is why I love radio because you don’t have to sit around and wait for six months to get paid. He turns this bad boy on, the calls come in and you start closing deals. It’s that straightforward. The second piece, which is going to be super valuable, is just doing something interesting. He’s closing deals in a market that he’s not in, virtual, it’s in the same state but it’s a long drive.

Half the deals that he’s actually closing, he’s not getting belly to belly, eye to eye. What I want to do is I want to break down the process, what are your hacks? What are your shortcuts? What’s the actual system to pull this off? How do you execute a contract without shaking somebody’s hand? How do you pull that off? That’s what you’re going to get and excited for you guys to tune in. Let’s get down to it. Let’s get to meet, Jeff Anderson. What’s up buddy? Welcome to the show.

Thank you so much. The pleasure is mine. How’s it going, Chris?

Doing well. Those who don’t know Jeff, give us a quick snapshot. Tell us how long you’ve been in the game and a little bit about your business.

Got started about 2012, spent a lot of money on a coaching program, seeing some early success and probably about 4, 3 years ago or so, my business partner and I decided to go our separate ways, split of assets. I had to start from the ground up and get it going. Here I am, just really getting some momentum. We’re trying to get some things rolling back again so we can see some more success.

Are you considering yourself a wholesaler? Like what extra strategies are you using and how do you tackle the game when there’s a lot of tools out there? What’s your perspective on this?

Now, I’m wholesaling because between the split up and everything like that, just having to pay back a lot of debt. I figure out wholesale and turn that into income that I can do some more rentals with, and then flips. Wholesaling is the main strategy though.

I think I heard you say you are also licensed. You can get a cut off of any listing leads that come through, is that right?

Yes, I did. I went and got my license since that was also a function that my partner had at the time. I was like, “I might as well be able to try and monetize things from all angles.” Got licensed in North and South Carolina so that I could also do that.

A lot of people already have pictures of their property hanging around because they were already thinking about selling.

I like it, investors/agent. If you’re reading, I’m not telling you to go out and get licensed but it sure is nice to be able to get paid off those retail deals that you can’t convert into a deep discount. Rather than crumpling those up and throwing them in the trash, it’s always nice to list those yourself, take 3% or refer them out and take 25%, which Jeff does. It’s already a deal he’s done off. Radio is one of the referrals. We’ll circle back around to that.

Let’s go through this scenario. I’m a seller, Jeff, I call you. I want to sell my house. You quickly realize that this is in the market that is not close to you and you don’t want to hop in your car and drive a couple of hours. How are you going to practically convert me from a system standpoint? How are you going to convince me to do this deal without shaking your hand and looking you in the eye? Walk us through this like baby steps.

It begins with building rapport with the seller, finding out what the situation is, what the issues are, getting a clear view of the condition, the timeline they have to sell why they’re looking to sell, those general things. From there, it’s really about what they can, I’ll ask them to send pictures and if they’re not able to send pictures, then I’ll try to find some boots on the ground. The markets that I’m in, for the most part, the ones that I’m getting in the marketing end, I do have somebody that’s there that can get pictures if I need to.

You already dropped a couple of nuggets here. You ask the seller to take pictures of the house and send them to you. Do you tell them to do that on their iPhone? I also know that pictures can be big. They’re hard to email. What is the actual tech process for you to get the pictures that you want? Good quality and actually get them back to you. How are you doing that practically?

Nine times out of ten, it’s going to be on the phone. Most people have their phones handy with them. Even with the not as tech-savvy sellers, they have a sibling or they have a family member that can go by and take pictures and you’d be surprised a lot of people already have pictures hanging around because they were thinking about selling.

I didn’t think about that. They might already have them handy and we just even asked for him. That’s a great point. When they send them back to you, do they send them back to you via text or how are you actually get them back?

Normally, it will be via text. Every now and again, I will have some that email but so far in the past month, especially a majority of them have been through text message.

How do you ensure this scenario doesn’t happen? You get the pictures back and you’re like, “They missed like half the house of what I need to see.” How are you making sure that this doesn’t become a back and forth, and you feel like you end up pestering and annoying the seller?

Now I do ask them to give me a certain amount of pictures of the inside and outside.

Do you tell them how many?

I usually try to say at least 30, just an even number because sometimes I want them to take multiple pictures of the same thing. It’s because the first one might come out blurry or something. That happened actually, where somebody took pictures and they had all the inside, they didn’t have the outside. I had to go back and say, “Can you get me some of the outsides, too?”

I’m in that situation now where he said, “I’ll get down there in a couple of days and get the rest.” I try to instruct them to get some good pictures. I always mentioned some of the main things that I’m looking for, like the roof, if there’s an HVAC system, if there’s anything around the outside, try to walk them through as elementary as possible to get it done.

That dawn on me is an idea for that system as I’m sitting here, what about a checklist of pictures that sent via text? You can communicate it verbally but what if there was a little infographic you had made up that you text and it’s fundamentally like, “Thirty pictures of the outside, make sure you get a picture of X, X and X.” That might be a way to automate that process and not have to worry about them getting it verbally. I don’t know if you thought about that but that literally dawned on me while I was talking to you.

That would be helpful. I need to do that.

WI 666 | Wholesaler

Wholesaler: More often than not, a wire is sufficient. We could get into the bank and everything keeps rolling.

 

We’re brainstorming here. We’re going over with ideas live as you go. I’m all about efficiency. Get it down to the irreducible minimum. You get pictures but you mentioned boots on the ground. Take me down to the practicalities. Who are you hiring? How are you compensating them? How much? What’s that look like, etc.?

In one of my markets, I have somebody that actually does rehab and it’s also been a friend. I try to go on markets where I already have warm contacts and people are always willing to help me out where needed and I can cash up some gas money if needed but you’d be surprised. Not just that, even going into Facebook groups, connecting and getting with other investors, they’re always willing to say, “I’ll go down there, I’ll check it out for you and I’ll be your boots on the ground.” The Facebook groups have always been a great opportunity to connect with other investors too. Like I said, I’ve been blessed to have some friends in the areas that I’m investing. They’ll go out and they’ll do whatever needs to be done to make that connection if needed.

Utilizing Facebook, I don’t know that I’ve heard a lot of people actually mentioned that. What a great way to find somebody to do some boots on the ground. As you said, you’ve got a friendship with them but at the same time, you kick them a little something for their time. My question is, do you ever find yourself running around at the last minute, trying to find someone or do you find who you have locked down are pretty consistent for you?

In real rural areas, that’s where the challenge comes in and when something like that happens, I posted something on Craigslist. Matter of fact, for one deal that I had and it took a little while but I did find somebody. Another thing that I did that was a hack that got me through that didn’t get me a callback was I went on Google and I was driving the city. I saw a paint vehicle, I called them and they ended up being able to go by the house to help out. It was random because sometimes they blur out the numbers when you do Google through the seat or whatever but this one had the number on the side of the paint vehicle. I called them up. They were able to go out and check out a house for me.

I understand you start by building great rapport. I understand how you get pictures. You got boots on the ground. What happens after that? How do you practically go from gathering the information you need? What are the next steps after that?

Once I’m in a position where we come to an agreement on a price and I lock it up, had a deal where I was able to Amazon a Lock Box.

You dropshipped it.

Went on Amazon, sent it right to his place, got the key up in there and got it locked up.

You didn’t even have to make the drive. I love it. Don’t you love technology and where we’re at, where you can go online and order a Lock Box? Now you’ve got a Lock Box on the door. What happens after that?

I start the marketing process pretty simultaneously. I push it out on my website or my links. I push it out to the buyers and I still even use Craigslist. You’d be surprised you still get some buyers on Craigslist and start the process of getting the calls in. I run it through my call real numbers so that I can keep track of who’s calling where and it also builds my buyers list at the same time.

Do you ever find though, when you’re not face-to-face, that rapport piece is a little bit hard, when you get down to a drop in the number? Let’s get down to the reality of what I’m going to offer you for this house. Do you feel it’s hurting your conversion not to be there sitting with them? How do you navigate that piece of crucial conversation virtually?

I found a combination of both. I know, especially in the South Carolina market, I’ve found that with some of the older sellers, they want to see somebody because they don’t want to feel like they’re being scammed. I haven’t found that a lot, which is with some. I know I had to actually make a drive to get a contract signed but I was okay with that. It was definitely going to be a good spread but overall, the rapport that I build on the phone and the value that I bring in, what I do, it’s been okay. As I said, 50/50, it’s been good with still being able to lock it in and get what’s needed so far so good.

I like what you say, even though you have a system, it’s not like it’s a policy. It’s a fundamental guideline. If you sense that the seller I’m dealing with, through the rapport building because I can tell, you how good EQ, you’re willing to go, “In order to get this deal done, I just need to jump in the car and drive over there.” I like the fact that you’re listening and understanding, “I can get this deal done virtually. If not, I’m going to hop in the car. I’m going to go get this deal done and make the drive. I don’t lose it.”

It’s good because sometimes, we get black and white about these issues. That’s the way that we’ve always done it in my team. Ideally, number one, you want to close it over the phone. Number two, you want them to come to you either to your office, to a Starbucks nearby or number three, you go out to their house if you absolutely. That’s always been our process for maintaining efficiency because that’s the most efficient steps going down from most efficient to least efficient. I love it. After that, are you just left with signatures and utilizing DocuSign or am I missing anything else that you use through this process to do this virtually?

For the most part, I know the last process and going through the attorney, we’re an attorney state, I’d rather use attorneys anyway, is that they schedule the signing. I try to schedule something close by wherever the property is within the vicinity. They went and signed and that was pretty much it. I did drive down, once I’m going to get a check but more often than not, a wire is sufficient, we could get into the bank and everything keeps rolling, go to the next.

I imagine if you could do all of your deals virtually, would you?

Facebook groups have always been a great opportunity to connect with other investors.

Absolutely.

I know some people who differ on that. They want to go out and meet the seller for whatever reason. Maybe they’re a little bit more, I’ll use the word traditional but I’m like you, if there was a way to do 100% of these without actually ever having to go out to the house, I look at it from an overall systems and time management standpoint.

How many more deals can you lock up on a phone in a day versus sitting in traffic and losing, a couple of hours to drive time itself. They’re at half your day when you could’ve been using that additional two hours a lock-up another deal virtual. If you span that out over a year and actually calculated it, you would probably fall back out of your chair to realize how much time is lost in drive time. It’s not efficient. I agree with you on that. If you’re listening and you want to do the face-to-face as well as tell you, it’s your business. You run it in a way that fits your values and your style, that’s most important. Just because it’s done one way, doesn’t mean you do it that way.

Part of it is also because I still do have a full-time W-2. Time is money.

I love that you brought that up. You’re alive mandates it. Not only with that, you and I were talking earlier, so you’ve got family, your job and then you’ve got this also that you’re doing. Anyone reading, understands, you’ve got to manage your time, to balance all three of those things and do this. I applaud you because that’s not an easy juggle, that’s for sure.

It’s a stretch.

I just heard its ideas and stretch. I felt it when you said that knows what that feels like. Jeff, let’s transition here and let’s talk about radio. You look at radio and before radio, how are you trying to lock up deals? What was your process? Marketing channels will be using.

Cold calling RBMs, SMS pretty much.

You are spending time.

The first early deals when I started were bandit signs and that was back when the getting was good but now it was SMS, cold calling and RBMs.

Let me ask you a straight-up question. We know all of those work but do you like working them?

Honestly, it’s a challenge working to them, you feel like you’re bugging people. I blocked numbers every day trying to sell me car warranties. It’s a struggle because people get upset or they say, “Take me off your list.” I have VAs but they’re going through dozens and thousands of calls just to get that yes, which is part of the process. It’s a time suck.

You nailed it right there. If you’re new to the game and you don’t have money but you have time, it’s a great way to start filling up the bank account. You can transition from prospecting outbound to actually start spending some money to create inbound. This is the exact case for you, Jeff. It’s because you did some of those fundamental things and you stack some cash that allowed you to take a step over to the marketing side. You’re over here, you’re doing the traditional outbound through those three avenues and you hear about radio. What caught your interest? What made you go, I’m actually going to spend some money here, really get into advertising monthly and trying to generate some calls.

I’ve known about Radio for years because I’m actually in the radio business for the most part but I’ve never personally advertised on it. Watching the podcasts and listening to all the testimonials and getting a glimpse of how the process was going. I was like, “I got to give this a shot,” not just that the continuous tune was not really that expensive.

I know what people charge but I’m like, “There must be a secret sauce that even me knowing the back door of how this thing works, that I’m not tapping into and getting to know better.” I was intrigued to say, “Let me give this a shot, jump all in. I’m familiar with the product. I believe in it. I just have to actually utilize and execute it.” It’s like a relief pillow. That’s been laying next to you. Your whole life and you never grabbed it to lay on it, to get the relief. Now you did it and you’re like, “Why didn’t I do this earlier?”

This just got juicy because let me get this. You work on the radio. It is in front of you every day. There wasn’t a connection of taking this channel and applying it to the very side you have, which is wholesale. I got to ask. This is fascinating to me. What was going through your mind was, it didn’t connect the dots or, “I thought about it but these couple of objections popped up in my mind? so I glossed over it.” Like what happened there psychologically? I got to know.

Honestly, there are two things. One, I thought that it was expensive because I know what people say on radio, I see the orders all the time but two, was a conflict of interest to where I didn’t want it to be a conflict in my market advertising in the same market that I was also working in.

This is great. You looked at REI you said, “I look at what people are paying for radio every day.” You said, “I can afford it.” What you now realize is they were all paying retail and now you’ve come in and bought wholesale. You were in the industry and didn’t even understand that. Let me ask you this, you’re on a radio station now. How much is your monthly budget for that station? If you don’t mind me asking.

It’s $800.

Was that just not something you fathom at the time that REI Radio that low?

Not at all. Not for the number of spots. Not for the frequency.

You go 100 spots, that aspect of that’s 25 spots per week. I’m asking you live like I would be having this conversation with you if we weren’t recording that’s because of the radio industry, how are the dots not being connected there are they just so used to selling retail like a real estate agent. is that people don’t know on the radio? Do they not think that they can go that low, those that run these radio stations? What’s happening at the corporate level with that?

WI 666 | Wholesaler

Wholesaler: Sometimes we want them to take multiple pictures of the same thing because the first one might come out blurry.

 

Unless somebody has an agency that they’re dealing with or lets us pull it into cool, they probably don’t know how to really buy a radio and they’re not being taught, the real A, B, Cs of it. They get what they get and they’re like, “Let’s go for it.”

I hear you. It’s just a lack of education. It’s ignorance. I didn’t know that could happen but it is fantastic to me That you were in the industry. I say this all the time, people were like, “Why don’t people advertise on the radio?” I always tell them, “I can tell you a couple of reasons. The main reasons I see, number one, it’s not affordable.”

They tell themselves that and they overlook it. Number two, they think that radio is archaic and it is. I have to remind them of their primary audience. The primary audience is over the age of 50 years or old, just like radio is. They utilize it all the time because they were raised that way but it fascinates me, that you are actually in the radio world.

For twenty-plus years.

That jump wasn’t made there. I love this. Honestly, we’re hitting on our secret sauce. It was straight up I tell you. The reason that radio works so well is that like with Jeff or anyone else, we have a systematic, what I would call data driven process to go in and literally buy the radio, like $0.25 on the dollar. That’s fundamentally like how we show you how to do that. I don’t know, Jeff, that at this point that anyone else really does that, that I’ve come across or they know-how.

Not that I’ve seen, unless it’s an agency or maybe a political.

I’ve had agencies in the past and they were selling me retail homes. I was running spot roll that were $500 for a 62nd spot. That’s the truth. Let’s get over to what’s happened. You’ve been up on two and a half months. You’ve closed the deal already, like funded. How much did you make on your first deal, Jeff?

$10,000.

You then got another one that’s actually closing. How much is that one?

That one’s $15,000.

You will have $25K in your pocket on ads spend that costs $800. Let’s say you’re two and a half months. I’m going to go for three months. I’m going to say that’s closer to $2,200 still at that point, you’re roughly getting a 1 to 12 return.

I could have closed the first one probably within the first month. I just gave it time because it was a new spend and a new market. I was still trying to get to know people. It extended the closing date a little bit so that I made sure that I had enough time to find the end buyer or if I was going to take it down myself because it was a duplex.

Let me ask you this, you’re on the other side of this now and as we say, we live life looking forward but we understand that looking backward, you’re looking back on the radio, you were cold calling, texting. You took a chance on this whole radio thing like, “I’ll give this Chris guy chance to see if he knows what he’s talking about.” You’ve already closed $25,000 and you got more in the pipeline, what are you feeling now? What are you processing?

I’m actually, thinking about reworking my whole system. I’m looking to get on some other stations so that I can increase the reach and increase the demo of people that I’m reaching to help. It opened my eyes that this works. I’ve been at it for years. I should know that but it really works for this particular message.

For the cash offer, convenient sell message. I totally agree. Now that you’ve been doing radio, what are a couple of characteristics you like? I know we talk about the top ten, whether that beset it and forget it or it’s a high-quality lead, different things like that. The celebrity status to instant credibility. For you personally, you’re already aware a couple of characteristics were like, “I really liked these things about this channel.”

One of the cool things too, and especially going back to the fact that I do have licenses that I can monetize leads and I don’t have to be a one-trick pony either. I know I’ve gotten people that are looking to rent, looking to sell traditionally, people that are looking to buy. The opportunities that come in and people that want to ask questions. I had somebody that I referred to credit restoration. There are others that have called. The cool thing about it is being able to be that go-to person because people do call and say, that’s the first thing they say, “I heard you on the radio. Are you the guy that buys the houses? It’s because I have my name in it.” They’ll say, “Is this Jeff?” “Yes, this is me.”

You have to be persistent and build great relationships with the salesperson and tell them your story, and things will happen.

Do you find when they call in, Jeff, that they’re responding to you differently than let’s say off the text or phone call?

Absolutely.

What’s the difference that you see? What do you feel differently about those calls?

They were the ones that were making the call. They are already more receptive to feeling like I have the answers to their situation or I can better help them. I’m not bugging them. They’re probably more bugging me, just to call me and make sure that they can be aligned with what we need to get done in order to make the deal happen.

It’s funny that the opening that you just gave like, “Is this Jeff?” why do you think that they’re asking it that way? Are they surprised that you’re answering the phone?

I think so because these leads, I take myself, I don’t farm these out to my VA’s. The only thing that I do farm out to them would be any follow-ups. After a week goes by and if I haven’t heard from somebody or if I just got swamped because of my W-2, I’ll have them go through CallRail and they’ll follow up and say, “I wanted to see if you’re still interested in selling,” and then they toss it back over to me. They’re surprised that I’m the one that actually answers the phone when they call.

I’ve always found that about radio. I’ll tell you why they’re surprised because they’ve elevated you and it’s like this guy’s on the radio. He’s the real deal. I’m surprised this guy even answers the phone himself. This is where you see the psychology of celebrity status. “Is it, Jeff? Really, I’m talking to Jeff?” That’s the paradigm that I’ve seen, whether you’re going to do marketing, in which you have to hide your brand like bandit signs.

I’ll go back to that because you said it or you use marketing like radio that actually strengthens and builds your brand. As you’re seeing because you put your name on there as building your name, for too long, Jeff, another six months down the road, a year everybody’s going to know who you are. You’ll be back on another radio station or two people hear. It’s amazing that you can become a dominating force and a local celebrity in a market like that, which is awesome. That’s like the cherry on top for radio with everything else that comes in.

If you’re reading, radio still to this day, I’ve been in this game for many years, I tell you, I don’t know of the better marketing channels still. You know me, I’m on the hunt. I’m always looking to crack the code on something fresh but I don’t know how else you get all of those benefits at the price that you get at. This is everything that Jeff’s getting in and he’s paying $800, which is insane to me. He’s getting a 1 to 12 return. Even though I’ve been doing it, a radio sells for many years, I still step back like I’m hearing it for the first time, “Is this a strong channel?”

I get more excited about it. It was me over by myself seeing this and celebrating it. Now that I see students like you that run with this thing and put it in your hands and do an incredible job, it excites me. If you’re reading and you’ve been thinking about the radio piece, as we always tell you, number one, you got to see if your market’s open. We do minimize the number of people per market. You want to jump on it but begin by asking questions and book a call. This might be that thing that you’re looking for if you’re getting burnt out on the outbound stuff, which I did for sure.

I don’t really enjoy outbound marketing. Go to WholesalingInc.com/reiradio, book a call, do your due diligence again, as always, it’s like dating, as I say, you want to make sure that you pick the right person, that it’s a right fit. I always want to make sure that whatever you pick up to advertise on fits your personality because if you’re passionate about it, it’s going to work. If you hate doing whatever you’re doing to market every day, I promise you, you’re going to burn out and it’s not going to work long-term.

You can only white-knuckle it so long on a marketing channel, what I’ve learned. That’s been my overall experience. Jeff, I really appreciate it. I appreciate you coming to the show. Thanks for breaking down your overall virtual model and I’ll leave it an open question, to wrap up. Anything particularly about radio, business or even your virtual process any last thing man you want to wrap up with?

Definitely give it a try and be patient but follow everything step-by-step like I literally followed the blueprint. I didn’t divert from it. I didn’t deviate. I didn’t change scripts, follow the blueprint and it will work. You got to be persistent and build great relationships with the salesperson and tell them your story and things will happen. I’m excited and I appreciate the product that you put in front of us to really tackle and make some things happen. I appreciate that.

I’m proud of you, brother, just a public shout-out for taking a tool that was given to you and as you said, you follow the roadmap, which sometimes is more easily said than done. A lot of times, we want to throw our own creativity on there but follow the roadmap. It’s been split tested.

I’ve been on the radio for many years but I still follow the roadmap.

I want to tell any student that comes in, gets off track and says, “Why don’t we do it this way?” I’m going to go, “Let me tell you a little story about Jeff Anderson.” Thank you, guys, so much for joining us. As always, we appreciate it and we will catch you soon when we add more value.

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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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