Despite all the efforts that real estate investors are putting into working on the leads: talking, prequalifying, follow-ups, and yet only a fraction of those leads get paid because those are the only ones that are willing to trade equity in their house for speed and convenience, leaving investors with the question: what happens to the rest of the leads?
Chris Craddock joins Brent in this episode, the newest Wholesaling Inc. coach, to fill in a specific gap in the businesses of listeners – turning dead leads to opportunities! Chris is giving $62K passively to his wholesale partner a month from dead leads from his partner’s database!
In this episode, Chris will talk about the nitty-gritty of dealing with dead leads, turning them into massive opportunities for monthly passive income. He will also share his system and how he trains agents on how to go about his strategy.
Chris will share lots of tips for the listeners on how to turn dead leads into life-changing money! Do not miss this episode.
- Ways to receive a commission from sending a lead to an agent without a license
- What the edification technique is for Chris
- How he takes leads or teach somebody to convert leads into closed listings
- Five reasons why sellers talk to investors about selling their property
- His recommendations to get the right agents and get prioritized
- How many transactions he has done in 2020, including referrals from investors
- A life-changing story of Chris’ student
- His recommendation on finding happy, hungry, humble, and smart agents and good teams in building relationships
- How to reach out to Chris and find more about REI Revive
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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Welcome everybody to the Wholesaling Inc Podcast, America’s number one podcast for new real estate investors, where we know that finding discounted property is the most proven path to financial freedom. I am your host, Brent Daniels, Mr. TTP, Mister Talk To People and if I can do it, so can you. So let’s get started. We are about to change the industry forever. And I’m being really serious about this. All this time, all these efforts that us wholesalers, us real estate investors are putting in and all these leads that we’re talking to and all this pre-qualifying and all of this lead follow-up, and yet we only get a fraction of the leads that we talk to. We only get paid on because those are the only ones that are willing to trade equity in their house for speed and convenience. So what happens to the rest of the leads?
Well, I am here. This podcast interview is going to be absolutely bananas because my guest on the show today is soon to not be a guest, soon-to-be a host because he’s the newest Wholesaling Inc coach. I am proud to introduce Mr. Chris Craddock to the rhino tribe and to the Wholesaling Inc coaches. Well, you are filling in a very specific gap in every single person that is listening to this, all of their businesses, okay? And that is this, what do you do with dead leads? Let me tell you a stat that I wrote down here. These are facts. Okay. Right now what Chris is giving passively to his wholesale partner, his real estate investing partner, right now is $62,000 a month that he is paying his investor from dead leads in this investor’s database, in this investor’s CRM that they were going nowhere. These are people that wanted to sell traditionally.
And you know as well as I do, everybody out there, that we talk to people all the time and they say, no, they wouldn’t consider the price that we want to give them, but they do want to sell. When I call somebody up and I ask them if they would consider an offer on their property and they say yes, and we start talking and I start getting the condition. It sounds like the conditions pretty good. It sounds like they’re wanting and pulling the price out of them. They’re wanting more like retail. I can’t give them that price. I don’t want to list the property myself. I want to do wholesale deals. What you’re saying is somebody could give that to an agent in their market that has been trained in your system to be able to grab those and give a fee, a referral fee, a commission to that wholesaler.
Obviously the biggest thing, stopping everybody at this point from doing this was you have to have a license, right? You have to have a license to receive a commission from a sending a lead to a real estate agent. So what do you do about that? How do you work around that? Because you’re an agent and that’s great, but a lot of the people listening and watching are not licensed, right? And I think it’s going to be… We kind of talked about this off air. I think it’s going to be more and more common that more states are going to require you to be licensed, to be able to wholesale. But at this point it’s not. So how do people implement this right now, if they don’t have a license, Chris?
Well, there’s three things. One, I would say one thing that I’ve learned in life is success leaves clues. And as you look at some of the bigger wholesalers across the country, almost all of them have a in-house agent or they’re licensed themselves. And you just see it. So you have to ask the question why. The reality is there is something to it. Also if you grow a big business, people are going to look to you and your area as the real estate person. So when they’re buying, selling, you’re going to be able to make money from just your reputation alone on that by sending referrals out. So that’s one.
Two, let’s say you don’t want to get licensed. You just don’t want to be licensed. We see a lot of times people get somebody licensed in their organization and they run their license through the organization. So they’re their in-house licensed agent. And so the organization I work with, they have one of their agents is licensed in the organization. He has a DBA, which means doing business as, with the state. So he runs it through that organization.
And then the third option, and I teach this to my class, is 25% of all licensed real estate agents do zero deals a year. Zero. None. They do not do any deals. And so you can find one of these agents, just call local brokerage to find one. You bring them in as an in-house agent that just handles your referrals. Do not give them your leads because that doesn’t fit with the model. You want somebody that’s going to go get it done, but that person can handle your referrals, run their license through your organization and be your referral handler and pay them something to handle referrals for you.
I love this, Chris, because I think it really speaks to the question that a lot of people have in their minds, “Should I get a real estate license?” And what Chris is telling you right now is he has put together a proven plan. I mean, he’s literally, step-by-step putting together the plan on how to make money referring these two other agents that are full-time.
Now, if you want to get your license and be a real estate agent and a wholesale at the same time, you can certainly do that. I think it’s a little bit distracting. I have had my license since 2004. I think it’s a little bit of self-assessment and self-awareness there to determine if that’s what you want to do. But if you do get your license, this opens it up to a ton of opportunities for referral income, directly to you. Now also what Chris is saying here is you can bring somebody onto your team that has a license and run through it and run it through that. Or you can go to a brokerage and find somebody that’s not doing a lot of business, pay them I assume a minimal fee monthly to be able to run these referrals through them and be able to get paid. Right?
Right, right. And it’s just interesting because you yourself are a licensed agent, right? Like a successful [inaudible 00:07:12]. So you yourself, which proves that there’s a reason that people do that. And then the second piece with that is I agree 1000% that you cannot be… Even if you’re a licensed agent, if I go into you Brent and say, “Hey, Brent, I could buy your house for $200,000 right now.” And then for me to pivot and say, “Oh, well, if you want, I could list it for 400,000.” Like you have the rapport to close at a high level, right? It just isn’t going to work. So that’s one of those other pieces. You should stay in your lane 100%, be an awesome wholesaler, and then you get a partner who is an awesome agent and each one of you stay in their lane.
And it also gives you the chance in sales. There’s something called the edification technique, right? I could say, “Hey, my name’s Chris Craddock and I’m awesome. High five.” And everybody be like, “Yeah, you’re kind of a punk.” But if somebody else says, “Hey, this is my friend, Chris, he’s awesome.” Then you’re edifying them. So you’re able to set that agent up by edifying them from day one, instead of losing rapport by offering $200,000 for a house that then you tell them, you can list for 30 seconds later, it’s a better model.
I love it. I love it. And you’re completely right. So I’ve been doing this a little bit, right? I mean, I’ve been doing this a lot of it, Chris, I’ve been referring these out. I have a license, so I can do that. But I feel like maybe we overwhelm the agents that we send it to. Maybe we’re not sending qualified leads to them as qualified as they should. I mean, how do you do this successfully? I mean, obviously you’re on the other end, so you’ve got a big time.
And by the way, Chris is in the DMV area, right? The DC and Maryland, Virginia right there. And there’s a lot of big time wholesalers there. This one specifically that he works with is really big. He gets a lot of leads. How do you take those leads or teach somebody in our markets, our current market? How do you teach them how to actually convert those into closed listings or closed buyer sales? Mostly listings, I would assume.
So there’s a couple things here. So first thing that I’ll throw out is this, any agent you get with, they need to be happy, hungry, humble, and smart. That is what you’re looking for. And honestly, that’s what you’re looking for. If you ever get a business partner, that is who you want to be in business with. And here’s the deal. You are going to break their business. You’re going to break their business, which is why they need to be hungry because they’re going to fight to get better. They need to be humble because they’re going to learn to get better. Those two things, because you’re going to break their business with all the leads and all the deals that you send them. 100% their business will break. So that’s one of the big pieces. The second piece is you’ve got to make sure that your scripting is great.
So I do a lot of sales training as well. And in the sales training, one of the things I teach is, and I know you teach the same thing, is that if you ask the right questions, everybody is going to teach you how to sell them, right? They’re going to tell you their pain point. And one of the examples I always use in sales is that we’re like a doctor, right? So I’ve had four shoulder surgeries. I played rugby in college and just destroyed myself. I went in because my shoulder was a little jacked up recently and the doctor did all these things, asked all these questions and then did something called the crank test. And I was like, “Ah!” Caused a lot of pain. And then he did it again. He found the pain and then he pushed on it again. And then he was like, “Yeah, I had a feeling. I knew what the issue was, but I just wanted to go through all my stuff here.” And then he wrote me the prescription and told me what I was going to do.
And that’s what we’re doing here with these sellers. We want to be able to know the pain point so that we can get that over to them, because here’s the reason, here’s the thing. Every single seller is calling an investor or talking to an investor about selling their house for one of five reasons, right? One, they want to save on commission. Two, they want to sell quickly. Three, they think their house is too messed up for the MLS. Four, they want privacy. Or five, they don’t want people coming through their house all the time. And so if you have the answer to those five questions and you can answer that quickly as an agent, you can solve their problem. And the people that make the most money are the ones that solve the most people’s problems. Right? You’re solving their problems.
Give me those five again.
Okay. Don’t want to pay an agent commission. They want to sell quickly. They think the house is too messed up to sell on the MLS. They want more privacy within quarters. They don’t want their neighbors seeing pictures of houses. And then five is they don’t want people coming through at all hours of the day.
And I’ll just give you one example. So here’s one example. They don’t want people coming through. So one of the things that we teach the agents, right? Because we teach the agents, the scripting on all this, we say, “Okay. So what you do is if that the reason, you know ahead of time.” So they’re saying, “No, I don’t want to sell because of this.” You answer the question before they verbalize it, because you’ve asked them during the pre qual and got the answers to this and you just say, “Hey look, one of the things we do in our hybrid model is we have an investor strict open house.” So we only let people come in one to three on Saturday and one to three day. So nobody will be coming through your house. And let’s be honest, if you’re a wholesaler, you do these open houses for contractors and buyers as well. So it’s what we’re doing. And they’ve already agreed to this. It’s just how we’re framing it.
I love it. I love it. So how does this work? So a wholesaler gets a lead. It’s not working out. Then what happens? Do you get an email? Do you get a text message? Are you connected in their CRM? How do they make sure, Chris, that once they pass it over to you, you actually take care of these leads? You know what I mean?
And I’m asking you this, for everybody out there watching and listening. Listen, you got to think about this in your own market, in your own business with an agent that is like Chris, I’m not talking like, send your leads to Chris. Chris can only do things in his market, right? I’m talking about locally, the real estate agent I’m trying to build in my mind, Chris, the perfect agent that would be great for taking all these referrals and really making sure that they’re going to work them, so that we can get those consistent. Maybe it’s not $62,000 a month, but listen. 5,000? 8,000? 10,000?
Listen, the people in the TTP program, the TTP family, we’re getting leads all day long because we’re proactive. We’re calling people all day long, but those leads aren’t necessarily aligned with the price that we need to get these properties at. I think that this is game changing. I’m not joking around here. I know the power of this. I know the potential of this. This is absolutely bananas. If you can implement and put into your dead leads, but I’m just wondering the biggest factor to me, Chris, is who’s that person, who’s that agent? How do they get the lead and how do I keep them accountable so that I know that they’re working them? Because they’ve got their own book of business. They’ve got their own priorities. They’ve got their own referrals that they’re getting, their own listings. How do I make sure that I’m a priority?
Well, absolutely. That’s an awesome question. What you do is you pass it off. So one of the things I don’t do in my course is tell you which CRM to use, because I think there’s a lot of great CRMs out there and everybody has their own piece. So what I do recommend is either yourself or you have a VA do it. And if you’re scaling, the VA is the better option. You put it in a Google sheet and have a VA call and check on every [inaudible 00:14:35], just go through every single one. For $4.50 an hour, they can spend one hour or two hours a week just checking in with the agent and just say, “I need an update on 123 Main Street. I need an update on 123 Banana Street. I need an update on every single one of these deals here.” And you’re going to get that. So that’s the easiest way to scale that. That’s the deal there.
And I also want to say this, as you’re saying, how do we choose the right agent? Getting the right agent is really important here. You’ve got to find somebody that’s doing at least, and I teach how to find somebody that does at least 15 transactions a year minimum and is on a growth trajectory. Because I promise you, if you are growing, you are going to break their business. Like my business broke so many times through this process as we got to where we are. But the reality is you’ve got to have somebody that’s humble enough to learn and reinvent themselves, because just think about yourself. If you look back at yourself five years ago, I heard this phrase though, like if you look at yourself three years ago and you’re not slightly embarrassed by who you were, you haven’t grown enough. Right? Like that’s the whole thing.
Yeah. Yeah, I love it. And just to give some people perspective, how many deals do you do a year? How many did you do in 2020?
2020? My retail team did 501 transactions.
501 transactions, right? And about how much of that was referrals from investors?
Oh man, I have to go back, but it’s just under 50% of that.
Right. Listen, everybody, there is so much opportunity here. You can change the life of a real estate agent and their team if you partner up with the right people and send them referrals on the leads that are dead, the leads that don’t want to trade speed and convenience for equity, the people that don’t have a major problem. We call, we try to filter out and find the six. This is the stat, six to 10% of the real estate market is in distress at all times. For whatever reason, there’s a ton of different reasons. Financially, emotionally, just the structure of the property, the actual condition of the property. There’s a million different reasons, probably not a million, but maybe a couple dozen reasons why people have stress with the ownership of real estate.
And so when we talk to the other 90 to 94% of the population that is not in that little box, this is a blue ocean. This is where you go after opportunities for real estate agents to be able to close on those. And what you’re saying is you put together a program and I love it because we’ve been working together. You and I have been talking about it. You and Chris have been talking about it and it’s just absolutely phenomenal, but this is huge. This is a huge opportunity to go after the 90 to 94% that we’re ignoring essentially, and throwing into the trashcan essentially. All we have to do is partner up with the right person, send over the information, keep them accountable. And we get passive income.
Bro. I just want to share one quick story too. So there’s a guy who signed up for my program and he had signed up for Chris’s program. REI [inaudible 00:17:49] was getting leads there and his wife was an agent. And so he said to me, he’s like, “Chris, I think I’ve got the retail thing down.” And I was like, “All right, let’s just go over your numbers real quick. How many wholesale deals did you sell last year? And how many retail deals?” And I listened and I was like, “Brother, you’re leaving a fortune on the table.” He’s like, “Are you sure? Because I think we’re doing all right.” And literally he called me.
It was like two and a half months after starting the program, he called me and he’s like, “Chris, I just have to tell you, this has changed my life.” He’s like, “We have $90,000 coming into us right now in found money. This is an extra $90,000 just by following this program.” And two and a half months, he’s like, “We’re not even ramped up and scaled yet. And we’ve got 90… And we don’t even have a massive organization like other folks. It’s a mid-sized organization. He’s like, “This is life-changing money for us.” It’s crazy.
I love it. I love it. And listen, I’ve dabbled. I’ve tried. That’s the issue, you find a real estate agent that’s happy, healthy, hungry, and smart, and you start giving them all of these leads. And then it’s almost overwhelming them. Do you have to have one relationship? Should you have multiple relationships? What do you think is, I mean, obviously in your case, you’ve got a whole team. You’ve got enough horsepower to be able to handle a lot of leads, but should we be going after teams? Should we be going after individual agents to build that relationship? What do you think there?
Again, you’re looking for somebody that’s massively hungry because you can build very quickly a $1 million net retail business, just from these leads. Because one of the things that I always teach agents, when I’m coaching agents, is business makes babies, listings make babies, right? So if you do that, they can build a massive organization. So you want somebody that’s a big thinker because if… Here’s the two phrases that I’ve heard it called, it’s called cul-de-sac talent, which are smart people, but they’re not really going anywhere. Or capacity talent, the ones that have big dreams, right? Their butts always burning and they’re ready to go.
And those are the people that are going to build around you. They’re going to learn how to take their team and hire new listing agents and hire other people that are going to close like they are. From all those listings they’re going to hire buyer’s agents and other stuff. They’re going to make a fortune if they see this relationship as what it is. They won’t make as much money because they’re giving a massive referral fee to you as they would, if they were keeping the whole listing. But if they have a big picture vision, they’re going to say, “Wow, I can make a fortune here by growing this out through this relationship.” And it becomes the biggest win-win in the history of time. The investor makes a fortune, the agent makes a fortune and they all, I don’t know, go celebrate together in Hawaii.
And Chris, listen, this plays perfectly into TTP and it plays perfectly into being proactive because listen, let’s be honest. If you’re spending money on marketing, whether it be direct mail, bandit signs or internet leads, you got to spend a lot of money to get leads. You’re not getting a tremendous amount. So the amount that you’re able to pass over, I mean, it could be good, but who knows, right? But when you’re being proactive, you’re calling people all the time. You’re adding leads every single day. They might not work out, but you’re getting way, way more leads for the cost than traditional marketing being proactive. And you’re telling me if we call these people up and they want retail and their timeline is reasonable, they do want to sell the property, they just want more than we can give them. You partner up with a really good real estate agent, and now you’re getting those… You’re able to get a percentage of that commission with everything lined up that you have in your course. Incredible.
Yeah, yeah, yeah, yeah.
I love it.
And here’s one of the other-
This is a no-brainer for the TTP family, I’ll tell you that. I’ll tell you that right now, it’s bananas. It’s bananas. It really is. I’m blown away. I’m trying to think of where the holes are in this thing. It all makes sense. The only thing that I can think of, Chris, is making sure that the agent is really good. And like you said, really hungry. And you got to find the ones, and I’m thinking in my head really finding a team, that’s got all the systems in place, that does a really good job, that knows how to close deals, they’re pushing to be the top in the market and the thing… And starting that relationship. I mean, people can have a whole career around this, Chris. People could literally just cold call to get leads for agents that close them and just get paid, work three hours a day to get leads, making calls, send it into agents and get commission checks as they come in. It’s fantastic. I mean, it’s incredible. And this is how you built your business and now you’re coaching us how to make more of you, right?
Yeah. I mean, literally that’s exactly right. That’s exactly right. I literally built a business that nets me well over a million dollars a year and it was through this. And if the agents don’t see that they can do that while at the same time, the investor that I’m working with loves me because you know, I’m helping him make a lot of money. I’m making a lot of money. It’s the biggest win-win ever. And so that’s the big, huge piece of it is you got to be able to see how it can win across the board.
And here’s one other thing that I’ll throw out. Just because an agent is a high-producing agent and does a lot of business, you just got to realize… I’ve had a couple students where they picked an agent and they didn’t go through the happy, hungry, humble, and smart criteria. They just picked somebody that was a high-producing agent. And the problem was the humble part didn’t work on that agent. Because I’m thinking one agent in particular, I don’t want to sell them out, but they literally would not follow the model. They wouldn’t set up the Calendly so they could have the appointments set for them. They wouldn’t do the things they needed to do because they thought they had everything together. And it caused a breakdown in the relationship there and it didn’t work.
And so that’s the other piece is they’ve got to be willing. Even if they’re a big team, they got to be willing to say, “Listen, I’m willing to be humble enough to set up our system in a way that works and do it.” And not just say, “I’ve got this figured out, I’m going to do it my way.” So-
I love it.
Just make sure that they’re willing to follow the system.
Yep. I love it. I love it. I love it. And you’re totally right. And so you go through… In the course, you break down how to find these people, how to get them trained up so that they know the pass off between my company and them, all that stuff. That’s all in that program. Because this is just coming out. I mean, this is just coming out. I think this is going to be game changer, I really do. I think that this is going to be crazy. Awesome. I love it, Chris.
So how do people find out more about it? I mean, it makes us basically… Just real quick before we let everybody know about where to find it. Listen, you get leads. Most of them don’t work with you. What do you do with the ones that don’t work with you? Chris has got the plan for that. Chris has shown that he’s got a proven plan for that. And not only that, you can help an agent build an incredible business on that other side that is going to be super unbelievably loyal to you. It’s a win-win all the way around. I love it. How do people find out more about it?
Yeah, go to Wholesaling Inc dot com forward slash Revive and then just click the link there, get it done. And if anybody wants to reach out to me, I try to be available through on my Instagram @craddrock, C-R-A-D-D-R-O-C-K, old high school nickname. I try to answer every DM that anybody sends me. So if you want to send me a message, I’ll try to respond. But if you want information and a consultation, whether this is right for you, definitely go to Wholesaling Inc com forward slash revive.
That is Revive, R-E-V-I-V-E, Revive. Wholesaling Inc com forward slash Revive. Guys, TTPers out there that are listening to this, you know you see the opportunity. I know the TTP family is just going bananas right now. And everybody on the YouTube channel that is doing business right now and knows how many deals want retail is… The mind is spinning, my mind is spinning and I already know about this, but I mean, just breaking it down like this, it’s just really, really encouraging. And I think that this is a great way to add a ton of extra income to everybody’s business.
Listen, guys, this is what the big time guys are doing around the country. And you’ve got a blueprint here in front of you, Wholesaling Inc com forward slash Revive. Check it out, Craddrock at @craddrock at Instagram. You can tell this guy’s got incredible energy and incredible opportunity for everybody. So thank you, Chris. This is incredible. I love that I’m hosting this. I’m sure that we’ll be switching off who hosts these things and podcasts coming up. But as always, I encourage you to talk to people. Until next time. Love you guys.