Posted on: May 12, 2021

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.

Key Takeaways

  • His awe-inspiring background in real estate
  • Where he does his deals
  • His view on the brokerage and investment worlds
  • Getting his inspiration from the sawmill analogy and the acres of diamond Story
  • His idea on how many leads will lead to a cash offer
  • On getting 4-6 retail listings for every cash offer produced in his company
  • Potential commission from cash offers
  • The systematic approach that works
  • The five cants that most people fall into when converting leads
  • How he goes about defining himself or his partner
  • How he structures deals that involve partnership with an agent
  • A roleplay on how his process works to get 35-50% commission off the list
  • How he trains agents on the universal language of sales
  • On giving agents equal opportunities to earn
  • The numbers he is producing for his partner wholesaler 
  • How to find out more about Chris’ REI Revive program

RESOURCES:

If you are Ready to Explode Your Wholesaling Business, Click here to Book a Free Strategy Session with me right now!

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Episode Transcription

Chris Arnold:
Welcome to the Wholesaling Inc. podcast. I’m your host, Chris Arnold. As always, glad you guys joined us today. I’m just 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 today 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, we’re also here to introduce him as our newest coach at Wholesaling Inc. So, Chris Craddock, my man, what’s up, buddy? Welcome to the show.

Chris Craddock:
Hey, brother. Glad to be here. It’s exciting.

Chris Arnold:
Yes, sir. [crosstalk 00:01:38] Yes, sir. So I’m sure the tribe is going, “Okay. Chris Craddock, who is this guy? Why is he coming on a coach?” So if you don’t mind, give a little bit of your background. Again, I know you, man. You’re a humble guy, but I’m going to ask you to maybe talk a little bit about your numbers and so forth and your rankings, et cetera, because the tribe wants to know, “Okay. How credible is this Chris Craddock guy coming in to teach this methodology that we’re about to break down today?” which by the way, is unbelievable that you can zero base your marketing without any additional costs, which is very cool. So, let’s talk about this.

Chris Craddock:
Well, absolutely. So 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. Last year, we did, I guess, 167 million in volume, many-

Chris Arnold:
How many transactions is that? Again, may be an investor would go, “How many transactions is that?”

Chris Craddock:
501 transactions.

Chris Arnold:
That’s a lot of transactions, 501 transactions. I love it.

Chris Craddock:
Yeah. Yeah. Yeah. Yeah. So we broke the 500 number, which was awesome. Got there just [inaudible 00:02:50] by, but it was awesome. We worked really hard to… One of the big things that you see in real estate, a lot of people are smoke and mirrors. And so, we worked really hard on our 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. So, that’s pretty much what this whole course is all about. But for us, yeah, I’ve got nine businesses, a number of them are seven-figure. I’ve been with Keller Williams for a long time. Out of almost 200,000 agents, we were ranked number 20 in the world.

Chris Arnold:
Wait. Wait. Wait. So you’re ranked number 20 in the world with Keller Williams out of how many agents?

Chris Craddock:
Just under 200,000.

Chris Arnold:
That’s pretty good, man. That’s pretty good. So obviously, Chris Craddock is invited into Wholesaling Inc. because of his background, what he does. What about you, man? Where are you located at? Where are you doing deals at?

Chris Craddock:
I’m in the D.C. area, so we’re D.C., Virginia and Maryland and we have an expansion team down in Richmond, Virginia. So all in that East Coast-

Chris Arnold:
You understand 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 really 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 really 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?

Chris Craddock:
I don’t understand it. That’s the crazy thing to me. So I was on Young Life staff, making no money and I got into real estate in the early 2000s by flipping houses. And then 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. And so, I started in the investor space and moved into the retail space. And then for me, it just made so much sense. As I would talk to investors, they’re like, “Oh, agents are idiots. They don’t understand anything.” Let’s be honest, a lot of agents are idiot. And then I talked to a lot of agents and they’re like, “Oh, investors are idiots. They don’t understand.” And I’m like, “Okay. Yeah, 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 really, really, really squeezing everything out of it.
I’ll just throw this one example out. 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 saw mills were just sneaking by, right? They were making money, but not a lot of money milling the wood. And then the sawdust would be this byproduct. They just throw it away. Well, somebody got the idea that the byproduct, the stuff they were throwing away was actually something that they could take and they could repackage and repurpose and make money with it. And so, they repurposed it. They used it as fuel to burn it. They put it together as particle board. They just were doing a number of different, like candles, lot of different things with the byproduct. And then 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 so many leads. These leads are sitting in their database. Let’s be honest, a lot of investors are just eking by and they don’t realize they’ve got millions of dollars just sitting in their CRM, laying there dead, waiting to be just used, repurposed and sold and made money on, but they’re not seeing it. And so, that’s where I think my message is, “Guys, you’ve got a fortune just sitting there.” I think a lot of people have heard that acres of diamonds story. The diamond is just sitting in your backyard, that you’re not doing anything with it, and that is what we’ve got here with almost every investor that is out there bringing in leads. They’ve got in their database. Now, they just got to [inaudible 00:06:58] that.

Chris Arnold:
Okay. So I love that analogy of the sawdust, right? That a lot of times you’re missing out on an entire business because you don’t have your eyes set on the byproducts. So, this is what we’re talking about today. You’re out there right now, if you’re listening, you’re doing cold calling, ringless voicemail, radio, direct mail, et cetera and you’re fundamentally looking for these cash offer. But when you talk to that person that says, “You know what, I’m just not really wanting to go down to 70 cents on the dollar. I’m not motivated. I think I’ll just list the property with the agent.” What we have found is that the investor fundamentally just shuts off and goes, “Well, 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. It’s just laying on the floor.
And so, what we’re going to be talking about today with Chris is how he’s come in and generated… We’re going to share exact numbers on what he’s generating monthly just off of retail leads that originated with marketing that was generating a cash offer. So, this is fantastic. Again, I saw [inaudible 00:08:12] Wholesaling Inc., right? This concept has not really 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-based their marketing by not having to do more marketing, but simply take what they have and revive it, right? Revive it, quit throwing it into the trash. So, let’s start with some numbers here, right? If we’re talking about cash offers, and again, I know that there’s going to be a variety here, but typically, generally speaking, how many leads will lead to a cash offer?

Chris Craddock:
Yeah. So I mean, what we’re seeing with most of the people, and obviously there’s some that are really efficient and really good, and some that are less efficient and less good, but yeah, you’re usually see in about 20 leads or so out of 20 leads ballpark, you’re going to see one deal come from that.

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

Chris Craddock:
You should see about four to six. From every one deal, you should get about four to six on the retail side.

Chris Arnold:
So for every cash offer that you’re producing in your company, your data is showing that that should produce between four to six retail listings. Okay. Somebody hears that. Let’s break that down numerically, financially. Let’s go down into a number, right? What would we say? What is the average house sell in the U.S.? I’d say what? 200, 225? Is that right?

Chris Craddock:
Yeah. Yeah.

Chris Arnold:
Okay. Let’s keep the math simple, 200,000. You’re going to list out for six, take 3%, right? So that’s fundamentally $6,000.

Chris Craddock:
We teach people to take three and a half on that. But again, we’re not technically supposed to talk about commissions because of anti-trust stuff, but-

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

Chris Craddock:
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 with just generating these leads. I mean, that’s the crazy thing to me is… 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 hasn’t worked. Honestly, that was the hardest part of getting this started, was getting people to actually see what they were doing wasn’t exactly the way that you should do it, unless you follow the model and follow the system.
Actually, last week, 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?” And so, that’s the big question is 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 actually follow the system, you can make a mountains and mountains of money from deals that are just sitting there in your CRM, but you’ve got to follow the system.

Chris Arnold:
Good. I like that, because if you’re listening, I think you probably fall into one to three camps, right? I’m not a licensed agent, right? I never even thought about listing these properties. You’re listening to it going, “Thought about it, never really understood a way to do it,” or I think you’re in a third camp. “I totally 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 actually in to consult with our company was there the very specific way that you got to go about this. It’s not like, hey, you just run out there and just 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 or radio or anything else. People coming to me all the time about radio and I go, “Yeah, 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.”
So, let’s break this down because here’s what you’re going to get. We’re going to break down your methodology and then we’re going to come in and talk about what your actions specifically producing with this, like the raw numbers in your company. So, I like this. You say when someone responds off a cash offer, they call in and they fall into one to five categories. Touch on those real quick. What are the five motivations generally speaking for a seller?

Chris Craddock:
So one is they just want a quick sale, right? 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, right?

Chris Arnold:
They want to fast sell.

Chris Craddock:
They want it done. Two-

Chris Arnold:
What’s number two?

Chris Craddock:
… they want to avoid a commission. They say, “I just don’t want to pay a real estate agent a commission.” Number three is they do not want anybody seeing their house. Think of a hoarder’s right? You go in their house. They don’t want their neighbors to see it. They want in. The next piece is you see the people that have a deadline and ticking clock, some sort of lean or foreclosure or something like that. There is some inconvenience piece on that. And then the last piece is they don’t want lots of people coming through their house [crosstalk 00:14:04].

Chris Arnold:
That privacy. Okay. So, let me recap those so those were clear. Sell fast, avoid a commission, I’ve got a poor condition property, I want my privacy, or I need some type of convenience, right? So those are the five fundamental rules. That sets probably about the 80/20 there, Chris. If I go back and pay through all those conversations I’ve had in the past, converting leads, most people fall into those five camps. So that’s the reason, but we know that these people coming in, even though they have those reasons, they still might not take the cash offer. For whatever reason, they might go retail.
So, here’s my question. When this call comes in, one of the things I think I took away from you, which is most important, that way we can drop this nugget on the neck now 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. So, how do you go about doing this? How do you define yourself or the person that you’ve partnered with?

Chris Craddock:
The biggest key is one, you’ve got to understand who they are. So you’re calling ahead of time. You’re doing your pre-cold call. If you’re the investor, you’ve got to know if you ask the right questions, everybody will tell you how to sell them. And that’s sales 101, right? You asked 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, right? That’s where they are, right? That is the key, is if you can speak to somebody’s needs, if you could speak to somebody’s wants and desires, then you can win. The people that make the most money solve the other people’s problems. Was that the question you were asking, Chris?

Chris Arnold:
Basically, but the last piece of that was what do they call themselves? What is the role in which that person defines themselves?

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

Chris Arnold:
So, you do not define yourself as a realtor on those types of appointments. It’s an evaluation expert. Now, 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 listening and you’re licensed, right? You’re already an agent investor and you’re like, “Heck, yeah. I totally 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.” So guess what? You can partner with an outside real estate agent.
And so, 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 just 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. So, I want to break this down. So if I’m listening and I’m like, “Man, I like this. I just 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?

Chris Craddock:
Let me get to that, but first, let me throw this out there. 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 I’ll just tell you, if we’re going to go on the average price sale of 200,000. Let’s just 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, and then you say no and I realize that’s not it, I try to pivot and say, “Oh, but 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. So that’s why I think it’s really important to have that partner that you can work off of. So that would be the one thing.
The second thing is if you are not a licensed agent, one of the things I teach them in our class is there’s 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 any in-house licensed agent. The third option is 25% of every licensed agent across the country in every MLS does zero deals. So you can create a partnership where you bring them in to handle just 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.

Chris Arnold:
All right. So, I like that. So not only can I partner with somebody outside of my company that’s an agent, if I’m licensed or whatever, I can just hire a listing agent to work underneath me, keep it in-house and obviously pocket more money because of the splits overall. Okay. So, what is the overall structure then when you’re breaking these JV? How much of the cut is the audience able to keep listening to this? Because that’s what I’d want to know. I’d be sitting there asking myself, “Okay, what’s the split?”

Chris Craddock:
Yeah. So if you set it up correct, it’s going to be 35% is the standard that I would say is what agents should send back, 35% of what they make. They make 10 grand, you’re going to send back 3,500. And so-

Chris Arnold:
Okay. All you did at that point was just handover a lead, right?

Chris Craddock:
You set them up for success, right? You’ve gotten all the information. The data you should have been getting for your own leads anywhere, you’re asking the question. The difference is when you realize it’s not a deal for you, you just 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. Now, here’s the crazy thing. If you do enough business, you can move that needle up to a 50% referral fee if you’re doing enough business, but you’ve got to be doing enough that it makes sense for that agent to give you 50% of what they make.

Chris Arnold:
Okay. So 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 relations been, so forth. Okay. So you’re sitting here going, “That’s great. I don’t want to go out and do these deals myself.” So fundamentally, you’re saying, “Hey, I have the ability to partner.” Now, do you ever recommend though that someone that’s listening, let’s say, is a solopreneur right now and they’re wearing all the hats, they might be asking themselves, “Can I go out and do both if I want? Can I take the cash offer and the listing?” Or does your program say, “Nope, that’s not the best way to do it”?

Chris Craddock:
This is just 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 right now. But 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 when you’re going to lose a lot of business that way.

Chris Arnold:
Okay. So walk us through the process. Call comes in and 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 list.

Chris Craddock:
All right. Well, why don’t we just role play this here real quick. Why don’t you-

Chris Arnold:
[inaudible 00:21:58]. Let’s go.

Chris Craddock:
All right. Cool. All right. So, you called in and your house will sell in the market as is right now at 200,000 and my number… Yeah. I’m asking you some questions.

Chris Arnold:
To make sure I’m clear here, you want me to be on the higher end. I’m not willing to go down to 60, 70 cents. Is that right?

Chris Craddock:
That’s right. That’s right. You look closer to retail. So, let’s just say you’re happy to walk away with somewhere between 185 to 200 and your house will sell right now for 200. That work?

Chris Arnold:
Cool. All right. Ring, ring.

Chris Craddock:
Hey, is this Chris?

Chris Arnold:
Yes. What’s happening? How can I help?

Chris Craddock:
Hey, 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?

Chris Arnold:
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?

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

Chris Arnold:
If it was the right price, yeah. It always comes down to the right price though, doesn’t it?

Chris Craddock:
Perfect. Yeah. Yeah. Always. Always. Well, great. So I’m just looking here. It’s 123 Main Street. I’m just curious, what do you own and how soon are you looking to sell it for the house and what are you looking to get for it?

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

Chris Craddock:
Awesome. Awesome. How much do you own and how much do you want for it?

Chris Arnold:
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 what they sold for, but I think the value is around two to 210, somewhere in there.

Chris Craddock:
Okay. Excellent. If you got an offer that you’re really happy with, how much would you be looking for right now?

Chris Arnold:
I don’t know. How much you guys want to offer?

Chris Craddock:
Well, I haven’t seen inside the house, so I’m going to have to take a look at it. But 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. So 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, right? And then three, we’ve got this hybrid model that combines the agent and the investor piece of what everybody’s looking to do. So we’re just 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?

Chris Arnold:
If the value is around two to 210, I consider 190 to do this real fast.

Chris Craddock:
Okay. Okay. So, 190. All right. Well, that sounds good. You know what, 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 just double check that everything makes sense. So I’m looking right here and I have availability tomorrow at 10:00 or on a Wednesday at 3:30. Would that work for you?

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

Chris Craddock:
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 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 just 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.

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

Chris Craddock:
Absolutely. Absolutely. Will that work for you?

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

Chris Craddock:
Perfect. All right. Let me see. Yeah, 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, may call to get some final information from you. But other than that, we’ll see you Friday at noon.

Chris Arnold:
All right. Thanks so much.

Chris Craddock:
Boom.

Chris Arnold:
All right. So here’s what I take away from that call, correct me if I’m wrong, right? So you’re on that call. You’re getting motivation. You’re getting equity, right? How much they own the house. You’re also picking up timeframe. And then lastly, you’re trying to get that price to be thrown out there. So when I said 190, I imagine you’re like, “Okay. This is not a cash offer deal, this is a retail deal.” So at that point, rather than you guys taking the appointment, this is where you’re about to pass the baton over to the agent, aka the evaluation expert. Is that right?

Chris Craddock:
Exactly.

Chris Arnold:
Okay. So then now you’ve got this appointment set for your agent partner, then what do you do from there?

Chris Craddock:
So the agent partner needs to call and they do their pre-call. They’ve got to do their pre-call. Make sure that people are going to show up, make sure the decision makers are present, make sure all of that. They come out to the house and then they go through. During that time, we need to know why they’re selling, right? So you’re selling because you want to sell fast, right? That hits one of our numbers. So we just come out, armed to the teeth with all of the data, how you can actually 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 on a Wednesday. We’ll have it under contract. By Monday, we’ll have some sort of guarantee for that.
But yeah, 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, right? 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, boom. Here’s how it’s done. I [inaudible 00:28:04] for you, and then we sign it up.

Chris Arnold:
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?

Chris Craddock:
So, 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.” And then you go-

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

Chris Craddock:
Yeah. So what I’ve found is at the beginning, the first couple of modules, you were teaching people how to find the right agent, which is really 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. And then the second half of the class, we actually train your agent. We teach them how to do their pre-cold 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 just have it flow off your tongue, “This is what we’re doing,” identify it and then 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 support calls, 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 really shorten that learning curve, because that’s the big piece there is sales is a language, right? 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 really close these deals fast.

Chris Arnold:
It makes sense. So 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 to the process, pretty much everything. All you got to do is take what I do in my business and plug it into yours. Correct?

Chris Craddock:
100%.

Chris Arnold:
I don’t have to recreate anything.

Chris Craddock:
Yep. And then every week, you got the chance to sit there, listen to what other people are doing, listen to their case studies and just really, really learn so that you can shorten that learning curve. Because let’s be honest, in real estate, the amount of money we make on every deal is huge. So every day that we say, “Oh, I can figure this out on my own,” is a day you’re leaving thousands of dollars on the table.

Chris Arnold:
Okay. I heard you say choosing agent is the most important thing. So there’s probably some people listening and going, “Yeah. Try it out with an agent. It didn’t work.” I liked the fact that you emphasized… And it’s just like anything, right? 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. So I’m glad that you hit on that as well. So, I want to start to wrap up on a couple of key points, particularly getting to what you’re producing income-wise. But 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 that’s divided and they don’t start devouring one another.

Chris Craddock:
Well, 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. That’s just 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 10 days. So after 10 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. But again, you’ve got to look at all of the numbers, right? All of them together. So if you’re closing a massive amount, like a massive amount of these deals, the amount you’re going to make in volume is just going to far outweigh that. After 10 days, you just turn it over, set it up and know that you’re going to make a fortune through closing these deals. Because I mean, just think about all the people literally that are selling every year that you talked to that you could have been making thousands of dollars on and it just slip through your fingers and went to some agent somewhere.

Chris Arnold:
Okay. So, let’s bring this home. You have fundamentally a partnership for your business right now, right?

Chris Craddock:
Yeah.

Chris Arnold:
You are connected to, let’s say, a large wholesaler, right?

Chris Craddock:
Yeah.

Chris Arnold:
And so, 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?

Chris Craddock:
Right now, every month we’re sending over 60,000. The last three months, it’s been about 62,000 what we’re averaging [crosstalk 00:34:05]-

Chris Arnold:
Wait. Wait. Wait. Wait. Wait. 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.

Chris Craddock:
Three quarters of a million dollars is what we’re doing right now out of deals that have literally been lying dormant and dead normally in their database. That is found money that’s already been paid for, three quarters of a million dollars. 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-

Chris Arnold:
That mean they have to be loving you because going back to top, you weren’t kidding in the fact that you fundamentally zero-based that large wholesaler’s overall spent. I mean, that’s crazy. You said three quarters of a 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, man. Those are huge numbers. And that’s why I know in my opinion, with that type of data where you really step back and go, “Wow.” If you’re listening, you might be thinking at a smaller scale, right? But again, you’re listening because you want to grow your business as a solopreneur and you want to do more and 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. So, I love it.

Chris Craddock:
Can I share one last one? So this one 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 got his first wholesale deal. We started working together and I think he had somewhere around 7,500 bucks coming in from this, more money… Well, 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.

Chris Arnold:
I mean, that’s amazing. So if you’re listening, 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 launch some direct mail, you start getting leads. Who says you got to wait a year to do that? So, this is definitely for someone that’s starting day one as an investor if they want to create a secondary source of income. So, people are listening and like, “All right. This is interesting. I like this. And then these numbers are amazing. This Chris Craddock guy, he’s all right.” So if people want to find out more information about this program that is literally, as you’re listening right now, is about… By the time this dropped, this thing will we live. So let me just put it that way. So we’re pre-recording right before it drops, but where do people go? How do they find out more about this program to see if it could fit for them?

Chris Craddock:
The wholesalinginc.com/revive. Easiest way to find us again, wholesalinginc.com/revive. Yeah, that is easiest way to get in touch. We’ll walk through your model and see if this is a good fit for you.

Chris Arnold:
What a great name for your program, REI Revive, reviving-

Chris Craddock:
If I could find the person-

Chris Arnold:
… with that lead.

Chris Craddock:
I need to find the person that help me think of that name. Once you’re something.

Chris Arnold:
Hey, man. Yeah, you definitely know that I got some watch. All right, man. Well, to the rest of you guys, as always, thank you so much for joining. Again, 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. Because I can go back, when I was marketing and just spending 1,000 to $2,000 a month, it scared the heck out of me because the first time I was investing, that was a lot of money to me. So, 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. So, thank you, Chris, so much for coming on and to the rest of you guys, as always, we’ll talk to you soon when we add more value. Talk to you later.

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