Posted on: May 12, 2021
WI 686 | Zero-Base Marketing Spend

 

To keep your business going or increase income through sales, it is essential to market what you are selling, especially in real estate. However, doing marketing involves costs. But how do you maximize it and zero-base on marketing spend to have an opportunity for more income? Is it even possible?

We have Chris Craddock in today’s episode. He will tell the listeners about his concept that made it possible for him to zero-base on marketing spend. He is a credible coach with nine businesses on brokerage and investment and ranked 20th worldwide with 200,000 agents. His expertise has made him the newest coach at Wholesaling Inc.

In this episode, Chris will share a concept to help investors zero-base on marketing spend by not doing more marketing and simply reviving what they have. He will also talk about how he has generated monthly earnings just off of retail leads that originated with marketing that generates a cash offer.

Get more tips and tricks from Chris to learn more about his well-thought concept. If you want to take the weight of high marketing spend off of your shoulders, then this episode is for you.

Doing It By The Numbers – How To Zero-Base Your Marketing Spend

Episode Transcription

I’m glad you guys joined us in this episode. I’m going to come straight out and tell you this is what you’re going to get. How would you like to figure out how to zero-base your marketing without any additional costs? This can be done. This is something that I’ve done in the past. My guest is going to come on and talk about how he’s been able to take this and maximize it to a level that I haven’t seen before. Not only is he coming on to do that, but we’re also here to introduce him as our newest coach at Wholesaling Inc. Chris Craddock, welcome to the show.

There is so much money to be made by partnering up.

I’m glad to be here. It’s exciting.

I’m sure the tribe is going, “Chris Craddock, who is this guy? Why is he coming on as a coach?” If you don’t mind, give a little bit of your background. I know you, you’re a humble guy, but I’m going to ask you to talk a little bit about your numbers, your rankings, etc., because the tribe wants to know, “How credible is this Chris Craddock guy coming in to teach this methodology that we’re about to break down?” By the way, it’s unbelievable that you can zero-base your marketing without any additional costs, which is very cool. Let’s talk about this.

Here’s my thing, I own a number of different businesses. A number of them are seven-figure businesses, mostly in the real estate space. With it, our real estate business grew massively fast. We started in December of 2014 in the retail space. In 2020, we did, $167 million in volume.

How many transactions is that?

It’s 501 transactions.

That’s a lot of transactions. I love it.

We broke the 500 number, which was awesome. We got to that Disney vibe but it was awesome. One of the big things that you see in real estate, a lot of people are smoke and mirrors. We worked hard on our top-line numbers. We’ve been able to keep great bottom-line numbers as well because of the fact that most people are just moving on to the next piece and we’re able to scrounge out a massive amount of money that everybody else is throwing away. That’s pretty much what this whole course is all about. I’ve got nine businesses, a number of them are seven-figure. I’ve been with Keller Williams for a long time. I have almost 200,000 agents, we were ranked number twenty in the world.

That’s pretty good. Obviously, Chris Craddock is invited into Wholesaling Inc. because of his background and what he does. Where are you located at? Where are you doing deals at?

I’m in the DC area, so we’re DC, Virginia, Maryland, and we have an expansion team down in Richmond, Virginia. All in the East Coast.

You understand the virtual world. On top of that, how I would consider what you do is you’ve got one foot in the agency world, brokerage world, traditional, helping people buy and sell homes, and then you’ve got the other foot in the investment world. I would say you’re a bridge there because what I have learned over time is the investment world doesn’t communicate with the brokerage agency world and vice versa. A lot of times, they don’t like each other, but because there hasn’t been a bridge, what you have found out or come in and optimize is that there’s a lot of money being left on the table. Do you see that these two worlds exist apart from one another?

I don’t understand it. That’s the crazy thing to me. I was on Young Life staff making no money and I got into real estate in the early 2000s by flipping houses. After that, I went back to school. I led large teams. I had gotten a Doctorate in leadership. I read Gary Keller’s book about building a retail team. I started in the investor space and moved into the retail space. For me, it made so much sense.

As I would talk to investors, they’re like, “Agents are idiots. They don’t understand anything.” Let’s be honest, a lot of agents are idiots. I talked to a lot of agents and they’re like, “Investors are idiots. They don’t understand.” I’m like, “I’ve met a number of investors that are idiots,” but the reality is there are a lot of great people on both sides. If they can see how this thing can mesh together, there is so much money to be made by partnering up and squeezing everything out of it.

I don’t know if you’ve heard of the sawmill analogy, but I remember hearing Tony Robbins talking about it, where he says these sawmills were just making by. They were making money but not a lot of money milling the wood. The sawdust would be this byproduct. They just throw it away. Somebody got the idea that the byproduct, the stuff they were throwing away, was actually something that they could take, repackage, repurpose, and make money with it. They repurposed it, they used it as fuel, they burn it. They put it together as a particleboard. They were doing a lot of different things like candles with the byproduct. They went from being just okay, kind of profitable to massively profitable by selling the byproduct.

I saw that that is what investors are doing. They’re bringing in many leads. These leads are sitting in their database. Let’s be honest, a lot of investors are eking by and they don’t realize they’ve got millions of dollars sitting in their CRM, laying there dead, waiting to be used, repurposed, sold and made money on, but they’re not seeing it. My message is, “You’ve got a fortune just sitting there.” A lot of people have heard that Acres of Diamonds story. The diamond is sitting in your backyard and you’re not doing anything with it. That is what we’ve got here with almost every investor that is out there bringing in leads. They’ve got it in their database. Now, they just got to monetize.

I love that analogy of the sawdust, that a lot of times you’re missing out on an entire business because you don’t have your eyes set on the byproducts. This is what we’re talking about in this episode. You’re out there right now, if you’re reading, you’re doing cold calling, ringless voicemail, radio, direct mail, etc. and you’re fundamentally looking for these cash offers.

When you talk to that person that says, “I’m not really wanting to go down to $0.70 on the dollar. I’m not motivated. I’ll just list the property with the agent.” What we have found is that the investor fundamentally shuts off and goes, “I can’t help them.” They crumple that lead up and they throw it into the trash, which again to go with your analogy, is the sawdust laying on the floor. What we’re going to be talking about with Chris is the exact numbers on what he’s generating monthly off of retail leads that originated with marketing that was generating a cash offer. This is fantastic. This concept has not been run with before.

As you and I talked about it, Chris, and the reason the Wholesaling brought you on was there’s such a massive opportunity to help investors come in and zero-base their marketing by not having to do more marketing, but simply take what they have and revive it. Quit throwing it into the trash. Let’s start with some numbers here. If we’re talking about cash offers, I know that there’s going to be a variety here, but generally speaking, how many leads will lead to a cash offer?

WI 686 | Zero-Base Marketing Spend

Zero-Base Marketing Spend: Teach the objections that sellers have and how to answer them. You’re going to hear the same objection over and over again, just repackaged in a different way.

 

What we’re seeing with most of the people, and there are some that are efficient and good, and some that are less efficient and less good, but you’re usually seeing about twenty leads or so. Out of twenty leads, ballpark, you’re going to see one deal come from that.

I can’t speak to every volume coming in. It depends on the quality of the lead but I can tell you that is pretty close with radio. We will range between 1 to 12 to 1 out of 20, depending on the quality of the acquisition manager. I can validate that with radio, that’s about right. This is where it gets interesting though. Let’s say for every twenty leads that you generate a cash offer lead that came through that type of marketing, how many listings should that create and therefore the commission that that should produce?

From every one deal, you should get about 4 to 6 on the retail side.

For every cash offer that you’re producing in your company, your data is showing that that should produce between 4 to 6 retail listings. Let’s break that down financially. Let’s go down into a number. What would we say? What is the average house sell in the US? $200,000, $225,000? Is that right?

Yeah.

Let’s keep the math simple, $200,000. You’re going to list out for six, take 3%, so that’s $6,000.

We teach people to take 3.5% on that, but we’re technically not supposed to talk about commissions because of anti-trust stuff.

For argument’s sake, I want to go with your math book. You’re saying, “There’s bigger potential there.” I hear you. That’s fundamentally $6,000 of the 3% commission on a $200,000 house. You’re saying that you should be generating about 4 to 6 of those for every cash offer. That’s a lot of money. That’s $24,000 to $32,000 for every cash offer. That’s the data that you guys are seeing on this.

The crazy thing is most of these people that start looking at the numbers, you’ve realized that you can make as much as you are in your wholesaling business by just generating these leads. That’s the crazy thing to me. It’s not crazy, because a lot of people have tried to do it but they’ve tried to do it in different ways that haven’t worked. Honestly, that was the hardest part of getting this started, was getting people to see what they were doing wasn’t exactly the way that you should do it and follow the model and the system.

I was with a friend of both of ours and he was saying, his biggest problem is he just always says, “When have I ever told you to do that?” That’s the big question. As long as you follow the system, you don’t just go find somebody that hasn’t worked and has been sitting on a couch and got a real estate license. As long as you follow the system, you can make mountains of money from deals that are sitting there in your CRM, but you’ve got to follow the system.

I like that because if you’re reading, you’ve probably fallen into 1 to 3 camps. I’m not a licensed agent, I never even thought about listing these properties. You’re reading it going, “Thought about it, never really understood a way to do it,” or you’re in a third camp, “I get this. I tried it, but for some reason, it wasn’t working and so I threw it out.”

What I’m going to say that I learned from you, Chris, because we brought you in to consult with our company was there’s a very specific way that you got to go about this. It’s not like you just run out there and start taking listings. There’s a systematic approach to this that works. That’s true with everything. It doesn’t matter if it’s cold calling, radio or anything else. People coming to me all the time about radio and I go, “There’s an actual way that we’ve learned to make this work because you can’t just throw your advertisement up and expect it to work.”

If you can speak to somebody’s needs, wants, and desires, then you can win.

We’re going to break down your methodology and then we’re going to come in and talk about what your actions are specifically producing with this, like the raw numbers in your company. You say, when someone responds off a cash offer, they call in and they fall into 1 to 5 categories. Touch on those real quick. What are the five motivations, generally speaking, for a seller?

One is they want a quick sale. They want it to be convenient. They want to get it done. Take the person that trades in their car, even though they’d make more money on Craigslist.

They want a fast sell.

They want it done.

What’s number two?

They want to avoid a commission. They say, “I don’t want to pay a real estate agent a commission.” Number three is they do not want anybody seeing their house. Think of the hoarders. You go in their house. They don’t want their neighbors to see it. They just want in. The next piece is you see the people that have a deadline and ticking clock, some lien, foreclosure or something like that. There is some convenience piece on that. The last piece is they don’t want lots of people coming through their house.

Their privacy. Let me recap those so we’re clear. Sell fast, avoid a commission, I’ve got a poor condition property, I want my privacy, or I need some type of convenience. Those are the five fundamental rules. That sets probably about the 80/20 there, Chris. If I go back and think through all those conversations I’ve had in the past converting leads, most people fall into those five camps. That’s the reason, but we know that these people coming in even though they have those reasons, still might not take the cash offer. For whatever reason, they might go retail.

Here’s my question. When this call comes in, one of the things I took away from you, which is most important, that way we can drop this nugget on the neck and make a potential run with it for those that are trying it, is that you cannot define yourself the way that you’ve defined yourself. How do you go about doing this? How do you define yourself or the person that you’ve partnered with?

WI 686 | Zero-Base Marketing Spend

Zero-Base Marketing Spend: As long as you follow the system, you can make mountains and mountains of money from deals that are just sitting there in your CRM.

 

The biggest key is one, you’ve got to understand who they are. You’re calling ahead of time. You’re doing your pr0e-qual call. If you’re the investor, you’ve got to know, if you ask the right questions, then everybody will tell you how to sell them. That’s Sales 101. You ask the right question and then you hand it off to your agent partner. If that agent partner knows what the reasons are, they’re able to walk in and speak exactly to what they are wanting. That’s where they are. That is the key. If you can speak to somebody’s needs, wants and desires, then you can win. The people that make the most money solve the other people’s problems.

The last piece of that was what do they call themselves? What is the role in which that person defines themselves?

You do not call them an agent. Using the word ‘realtor’ is like a four-letter word because everybody’s brother’s uncle is a realtor. These are your valuation experts. You’re setting the appointment, sending them off, and sending them out to close that. If you say, “Can I send you a realtor?” The realtor is everybody’s brother’s uncle. They’re a hairdresser and a realtor. They don’t need to talk to another real estate agent. There are more realtors than there are listings in a market right now. Bottom line is do not use that word. You’re sending out your valuation expert.

You do not define yourself as a realtor on those types of appointments. It’s an evaluation expert. You said partners, so I want to pause there to make sure that we break down what the options are because this is where it gets interesting. Either you’re reading and you’re licensed, you’re already an agent investor and you’re like, “I get what you’re talking about. I can do this myself,” or you’re sitting there and you’re not licensed and you go, “The last thing I ever want to do is get licensed.” You can partner with an outside real estate agent.

What Chris is saying is if that partnership, that JV relationship you have with the agent, understands of those five motivations what they are, and then secondly are trained, particularly as one point of training that we hit on, that they’re an evaluation expert. You don’t want them going out there saying that they’re an agent. That’s the process here. I want to break this down. If I’m reading and I’m like, “I like this. I need to go out and find a JV relationship with an agent.” How do you structure this deal? How much am I putting in my pocket on these deals if I partner with somebody as an agent?

The faster you can learn the language as you get immersed in it, the faster you can get good at it and close these deals fast.

A lot of people think because they’re an agent, they can do both. I’ll just say what I teach is, you need to have a partner, whether that’s an in-house partner or somebody you bring in, because if we’re going to go on the average price sale of $200,000, let’s say that if I come into your house and I sit here, Chris, and I look around, and then I offer you $125,000 or $110,000. You say no, and I realize that’s not it, I try to pivot and say, “I could list your house for $200,000.” What level of trust are we going to have there? Even if I build great rapport, it’s going to be hard to come back from that. That’s why it’s important to have that partner that you can work off of. That would be the one thing.

The second thing is if you are not a licensed agent, one of the things I teach in our class is there are three ways to get paid. One is you get a licensed agent. Two, you bring an in-house person in. I will say that success leaves clues. Most of the bigger organizations across the country have an in-house licensed agent. The third option is 25% of every licensed agent across the country in every MLS does zero deals. You can create a partnership where you bring them in to handle your referral business. You don’t want them to go and meet with clients, but they can handle referral business and you create a JV agreement with those people.

Not only can I partner with somebody outside of my company that’s an agent, if I’m licensed or whatever, I can hire a listing agent to work underneath me, keep it in-house, and pocket more money because of the splits overall. What is the overall structure when you’re breaking these JV? How much of the cut is the audience able to keep that’s reading this? That’s what I’d want to know. I’d be sitting there asking myself, “What’s the split?”

If you set it up correctly, it’s going to be 35% is the standard that I would say is what agents should send back. It’s 35% of what they make. They make $10,000, you’re going to send back $3,500.

All you did at that point was hand over a lead.

You set them up for success. You’ve got all the information. The data you should have been getting for your own leads anyway, you’re asking the question. The difference is when you realize it’s not a deal for you, you continue going through your checklist so that you can give them a complete package so that they know how to win, and then you hand off. You set the appointment for them and you do that. Here’s the crazy thing. If you do enough business, you can move that needle up to a 50% referral, but you’ve got to be doing enough that it makes sense for that agent to give you 50% of what they make.

The split then, what’s going to come back to me as the investor if I have a partnership with an agent, is I’m going to get 35% to 50% of that deal split back to myself, depending on how much volume I’m sending, how long the relationship has been, so forth. You’re sitting here going, “That’s great. I don’t want to go out and do these deals myself.” Fundamentally, you’re saying, “I have the ability to partner.” Do you ever recommend though that someone that’s reading is a solopreneur and they’re wearing all the hat, they might be asking themselves, “Can I go out and do both if I want? Can I take the cash offer and the listing?” Does your program say, “No, that’s not the best way to do it?”

This is a conversation we were having in my own personal business. We’ve opened up another expansion in Baltimore and we were having a conversation about this. We’re testing some of the numbers on that. What I’m seeing from all the testing that is happening in our personal business and also what I’ve seen outside is that it is very difficult to transition from saying, “I’ll give you $125,000 for this house. By the way, you don’t want me to do that. Let me list it for $200,000.” It’s hard to have that level of rapport that you can transition well. You can do it but you’re going to lose a lot of business that way.

Walk us through the process when a call comes in. Give us a high-level step-by-step of how your process works that would lead me to getting back a 35% to 50% commission off of the listing.

Why don’t we just role play this here?

Let’s go.

You called in and your house will sell in the market as is right now at $200,000, and I’m asking you some questions.

To make sure I’m clear here, you want me to be on the higher end. I’m not willing to go down to $0.60, $0.70. Is that right?

That’s right. You work closer to retail. Let’s say you’re happy to walk away with somewhere between $185,000 to $200,000, and your house will sell right now for $200,000.

“Ring, ring.

Is this Chris?

Yes. What’s happening? How can I help?

Chris, I was just giving you a call. I know that you had registered on our site and that you’re looking to sell your house on 123 Main Street. Are you still looking to sell if you’ve got the right price for it?

We’re shopping around, trying to figure out what’s best for us to do. What do you guys do? What are you guys offering?

Obviously, we’re a home buying company, so we’re always looking for a win-win. You are in a place where if you got the right price, you’re looking to sell here shortly. Is that correct?

If it was the right price, yes. It always comes down to the right price though, doesn’t it?

Yes, always. I’m looking here on 123 Main Street. I’m curious, what do you owe and how soon are you looking to sell it for the house, and what are you looking to get for it?

I’ve got a job transfer coming up, and so we definitely have a date by which we need to be moved by. Let’s say, I’d rather sell it sooner than later.

How much do you owe and how much do you want for it?

We’ve got good equity in the property. I looked at Zestimate on the value of the property. According to that and I know some of my neighbors and what they sold for, but I think the value is around $200,000 to $210,000, somewhere in there.

If you got an offer that you’re really happy with, how much would you be looking for right now?

I don’t know. How much do you want to offer?

I haven’t seen inside the house, so I’m going to have to take a look at it. For me, one of the things that we’re always looking to do is try to find out what people are looking to do and see if we can create a win-win. We’ve got three things that we do. One, we can buy in cash. Two, we’ve got licensed agents, so we can do what everybody else does, but frankly, everybody has an agent that they’re friends with.

Three, we’ve got this hybrid model that combines the agent and the investor piece of what everybody is looking to do. We’re trying to look for a win-win, but the only way I can do that is if I know what you’re looking for so that I can help you get that. If we were to get you an offer that you’re really excited about, what do you think that number would be if it was right here?

If the value is around $200,000 to $210,000, I’d consider $190,000 to do this real fast.

WI 686 | Zero-Base Marketing Spend

Zero-Base Marketing Spend: Every week, you’ve got the chance to sit there, listen to what other people are doing, listen to their case studies and learn so that you can shorten that learning curve.

 

That sounds good. I am going to send out one of our valuation experts to take a look at your property. You sound like your house is right there in the area where the price you want and what I’m seeing the numbers, it’s within the realm of possibility, but we’ve got to double-check that everything makes sense. I’m looking right here and I have an availability tomorrow at 10:00 or on Wednesday at 3:30. Would that work for you?

You said an evaluation expert. What does that mean? Who are you sending out to the house?

Without seeing your property and seeing that you want to get right around retail value and especially if you sold with an agent, you’d be at $200,000 minus 6%. You’re asking for basically very close to market value but the market’s hot right now, so who knows what we could do? I’ve got to send somebody on our team out to make sure that the house will fit everything that we’re looking for and be able to get you an offer that you’d be happy with.

I got you. You guys are going to come out, evaluate the property, take a walk through, and then present me with an offer. Is that right?

Absolutely. Will that work for you?

I can do that on Friday at lunchtime when I’m off work.

Let me see. Friday at noon, that works. Perfect. We’ll see you Friday at noon. One of our people may call just as they’re doing a little homework ahead of time to get some final information from you. Other than that, we’ll see you Friday at noon.”

All right. Thanks so much.” Here’s what I take away from that call, correct me if I’m wrong. You’re on that call. You’re getting motivation. You’re getting equity, how much they owe on the house. You’re also picking up the timeframe. Lastly, you’re trying to get that price to be thrown out there. When I said $190,000, I imagined you’re like, “This is not a cash offer deal, this is a retail deal.” At that point, rather than you taking the appointment, this is where you’re about to pass the baton over to the agent, AKA the evaluation expert. Is that right?

Exactly.

Now you’ve got this appointment set for your agent partner, then what do you do from there?

The agent partner needs to call and they do their pre-qual. They’ve got to do their pre-qual to make sure that people are going to show up. Make sure the decision-makers are present. Make sure of all that. They come out to the house and then they go through. During that time, we need to know why they’re selling. You’re selling because you want to sell fast. That hits one of our numbers. We come out, armed to the teeth with all of the data, how you can get the money that you’re looking for, maybe even a little bit more.

Our company usually sells in X number of days. We put it on Wednesday. We’ll have it under contract. By Monday, we’ll have some guarantee for that. That’s part of what we teach. We go into depth on how you create the hybrid offer on each one of those. You hit their pain point. Think of a doctor. Your pain point was, “I need to sell fast.” I’m a doctor. I walked in with my prescription, “Here’s how you sell fast,” write it up, “Here’s how it’s done.” I get it for you, and then we sign it up.

Here’s my question. I’m the seller. The evaluation expert shows up. Are they going to give me a cash offer and a listing price, or they’re just going to come in and start trying to move me over to the retail listing immediately? How’s that work?

You’re going to ask all the questions and then usually my script is, “I can give you a cash offer, but it’s much lower than what I think that you want or what I think in your situation you should have and so, this is my recommendation for you.”

I got you. You’re going to say, “We can go with the cash offer route, but I can already tell you without giving you the price that this isn’t going to fit. If plan A doesn’t work, this is what I recommend for you, plan B.” That’s how that evaluation expert, the agent, is making that conversion. In your program, are you training all sides on this? Because if I’m reading this, I’m like, “That’s great, but not only do I need to know how to do this, now I’ve got to train an agent to make sure we’re all on the same page.” How does that work?

What I’ve found is, in the beginning, the first couple of modules, you were teaching people how to find the right agent, which is important. That is probably the number one linchpin of the whole thing. Find the right agent. We teach the scripts and the dialogues, a lot of this stuff I did just right there. In the second half of the class, we actually train your agent. We teach them how to do their pre-qual call. We teach them the objections that sellers have and how to answer that hybrid objection because frankly, you’re going to hear the same objection over and over again, just repackaged in a different way. If you can have it flow off your tongue, “This is what we’re doing,” identify it, speak to it, and then teach them how to close it up right then and there.

What I found is even though we see all of this, our weekly support calls, a lot of the agents jump on and then they get it. They’re able to share with some of the other agents what they’re saying, how they’re saying it, and shorten that learning curve. That’s the big piece there. Sales is a language. I’ve got a four-year-old. She still uses the wrong words at the wrong time, and it’s really a language. The faster you can learn that language as you get immersed in it, the faster you can get good at it and close these deals fast.

Every day that we say, “I can figure this out on my own,” is a day you’re leaving thousands of dollars on the table.

Your overall process then and what you’re helping the tribe with is you’re fundamentally giving the turnkey process, “I’m going to show you how to find the agent, train the agent, here’s the script and the process, pretty much everything. All you’ve got to do is take what I do in my business and plug it into yours.” Correct?

100%.

You don’t have to recreate anything.

Every week, you’ve got the chance to sit there, listen to what other people are doing, listen to their case studies and learn so that you can shorten that learning curve. In real estate, the amount of money we make on every deal is huge. Every day that we say, “I can figure this out on my own,” is a day you’re leaving thousands of dollars on the table.

I heard you say choosing an agent is the most important thing. There are probably some people reading and going, “I tried it out with an agent. It didn’t work.” It’s just like anything. The right hire, the right agent doesn’t matter. If you don’t put the right person in the right seat, the system is going to fall apart. I’m glad that you hit on that as well.

I want to start to wrap up on a couple of key points, particularly getting to what you’re producing income-wise. A question that I might ask myself is, “Is this going to cannibalize my cash offer business? Are they going to start competing? Am I going to give somebody a listing that should have been a cash offer? I’m taking X percentage of a 3% commission. What I could’ve done over here is made that deal into a bigger deal.” How do you make sure that’s divided and they don’t start devouring one another?

When we get into the numbers that are real numbers that people are making, it’s going to be very clear that that’s not the case, but here’s the other side of it. If you’re getting inbound leads, some people will do outbound, cold calling, voicemail drops, all that other stuff. If you have inbound leads come in, after you make an offer, whether that’s over the phone or in-person, you’re giving an offer to them. What we’ve found is after five days, if they have not signed, if they needed to think about it, they didn’t sign right there, after five days, you have less than a 5% chance of closing them up. Those are the numbers that I’m seeing with high-level teams.

What I’m seeing is that outbound calls, cold calls, all of that stuff, it’s ten days. After ten days of making an offer, no matter where the marketing channel is, we’re seeing that the chances of closing those are less than 5%. I get the follow-up and everybody’s going to tell the story about how they followed up for two years and they got a big deal. Again, you’ve got to look at all of the numbers. All of them together.

If you’re closing a massive amount of these deals, the amount you’re going to make in volume is going to far outweigh that. After ten days, you turn it over, set it up, and know that you’re going to make a fortune through closing these deals. Think about all the people that are selling every year that you talked to that you could have been making thousands of dollars on, and it slips through your fingers and went to some agent somewhere.

Let’s bring this home. You have fundamentally a partnership for your business right now, right?

Yeah.

You are connected to, let’s say, a large wholesaler. They’re giving their sawdust over to you. What are your numbers? What are you producing for that wholesaler that’s taken the time to pass these on to your brokerage company? What are those numbers?

Every month we’re sending over $60,000. It’s been about $62,000 what we’re averaging.

You’re sending $62,000 a month off of the leads that that wholesaler is sending to you that you convert your listing and closing, then pay it back?

Three-quarters of $1 million is what we’re doing right now out of deals that have been lying dormant and dead normally in their database. That is found money that’s already been paid for. I don’t care how good you’re doing in your business, how well you’re doing, that’s a bit of a game-changer when it costs you nothing.

That means they have to be loving you because going back to the top, you weren’t kidding in the fact that you fundamentally zero-based that large wholesaler’s overall spend. That’s crazy. You said three-quarters of $1 million. It’s about $750,000 is what you’re giving back to them for marketing that they can reinvest or pretty much zero-base what they’ve already invested.

Those are huge numbers. That’s why I know in my opinion, with that type of data where you step back and go, “Wow.” If you’re reading, you might be thinking at a smaller scale but again, you’re reading because you want to grow your business as a solopreneur and you want to do more deals. The amount starts to stack up the bigger that you get. When you go from a couple of deals a month to 100 a year to 200 transactions on the investment side, that decimal place moves over once or twice because it’s the Law of Averages. I love it.

I’ll share one that also makes me really happy. This guy, I started talking with him and he hadn’t even done his first wholesale deal yet. He’d been working in it for months and hadn’t done his first wholesale deal. We started working together and he had somewhere around $7,500 coming in from this. He’s done zero-month deals in wholesale deals, get $7,500 coming in. This money was coming in before he got his first deal.

That’s amazing. If you’re reading, it’s not like you got to sit around and wait to be seasoned. You could go ahead and start making income month number one. Let’s say you launched some direct mail, you start getting leads. Who says you got to wait a year to do that? This is definitely for someone that’s starting day one as an investor if they want to create a secondary source of income. People reading are like, “This is interesting. I like this. These numbers are amazing. This Chris Craddock guy, he’s all right.” If people want to find out more information about this program, where do people go? How do they find out more about this program to see if it could fit for them?

The WholesalingInc.com/revive. It’s the easiest way to find us and get in touch. We’ll walk through your model and see if this is a good fit for you.

What a great name for your program, REI Revive.

I need to buy lunch for that person who helped me figure out that name.

You definitely owe that guy some lunch. To the rest of you, as always, thank you so much for joining. We want to provide you guys the best value. Honestly, if you’re new and we can get in and Chris can show you how to start creating income and zero-base your marketing, that’s going to take a lot of weight off you. I can go back, when I was marketing and spending $1,000 to $2,000 a month, it scared the heck out of me because it was the first time I was investing. That was a lot of money to me.

I know that feeling. If you could simply come in and take a little bit of that monkey off your back, or take that money and scale your business faster, I think we’ve done a great job in helping you build your marketing more efficiently. Thank you, Chris, so much for coming on. To the rest of you, we’ll talk to you soon when we add more value. Talk to you later.

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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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