Posted on: May 28, 2021

We’re back with another jam-packed episode where we share the tips, tricks, and strategies you can immediately implement to start making money in real estate…RIGHT NOW! 

In today’s show, our guest is Chris Craddock. He is one of the newest Wholesaling Inc coaches and creator of the REI Revive system. 

In this episode, Chris talks about his incredible method for monetizing dead leads in your database, turning them into massive profits. He shares tips on working with real estate agent “partners” and why finding the right partner agent can lead to tremendous profits in your real estate wholesaling business. 

Join Chris as he breaks down his unique process, the criteria to look for when finding agents, creating strategic partnerships with real estate investors, and why his business model could be more profitable than even traditional wholesaling.

Key Takeaways

  • The REI Revive method for monetizing his leads and how to apply it in your real estate business
  • His Power Team: His unique method for partnering with real estate agent partners and how to build a Power Team
  • The four criteria to look for in every person you’re going to work with in your business
  • How to build strategic partnerships with the “right” real estate agents
  • The three things every real estate investor should be doing in their business and how the REI Revive program can lead to explosive profits while zero-basing your marketing spend

 

RESOURCES:

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Episode Transcription

Speaker 4:
Hey, what’s up? Welcome back to another episode of the Wholesaling Inc Podcast. What do you do when you have all those marketing dollars kind of being flushed down the toilet, right? So you’re spending money on marketing, you’re spending money on skip tracing, you’re spending the time doing the cold calls, all that effort, all that time, elbow grease, and nothing’s happening, your leads come to an end. What do you do with those leads? Do you just throw them to the trash can and then forget about them?
Well, today I’m pretty excited, because I’m sitting down with my good friend, Chris Craddock, and he’s actually one of the newest Wholesaling Inc coaches. He runs the REI Revive coaching program, and his expertise, he has this really, really amazing method of monetizing, actually monetizing on the majority of the leads that would normally get thrown away and just go to the bin, right? So thanks for being on, man. I appreciate you spending the time here and then sharing those nuggets with us.

Chris Craddock:
Brother, I’m so happy to be here. I know you, me and Lauren Hardy were together in Florida a few weeks ago and it was nice. My brother in the mornings, the only one. Everybody else is up late, which we were too, but the three of us are the only ones waking up early to go work out as well. So I’ll tell you, man after my heart, man. Waking up, working hard, getting it done.

Speaker 4:
Getting it done, well, that’s the name of the game, right? That’s the name of the game. It doesn’t matter what you did the day before, you always get a reset button after you wake up, so you can either make the best thing out of your day or you can sleep through the morning. It’s not my style. Productivity results is really the name of the game, it’s really what we all here at Wholesaling Inc kind of live by. You’re a perfect example, man. I mean, it was you, me and Lauren in the gym when everybody else was sleeping, so that’ll tell you the type of work that goes behind everything that we put out.
So you have this process and you’ve been fine-tuning this for years now. I mean, you’re talking three, four years of fine-tuning this particular process on one of the biggest problems, one of the biggest obstacles that really hits anybody who’s doing wholesaling. You’re spending all kinds of dollars, your marketing efforts are being put into a particular campaign or whatnot. You get a call, you don’t convert that lead, so it doesn’t turn to be a seller, which, I mean, you’re talking, what, 95% of anything that comes in, maybe 97%, ends up in a dusty Excel file somewhere on the bottom of your computer.
But you have something else, right? What you’re doing is completely different. You’re coming in, you’re reviving those leads and actually monetizing on those leads, turning them into dollars so you can reapply them into new marketing campaigns and new efforts for regeneration. So, tell me about that, jump right into that.

Chris Craddock:
Yeah, absolutely. So, I mean, just think about it, just right off the bat, you just know that when people call in, 20 people call in, maybe one, maybe two of those people are going to be okay selling their house at 65 cents on the dollar, right?

Speaker 4:
Right.

Chris Craddock:
Everyone else that calls in wants a higher number. Maybe not full retail, but closer to that retail number. So, then what do you do with those? I mean, most people just let them stay in the CRM, maybe put them on a drip, maybe follow up periodically and go after them periodically, but the reality is most of them go to another investor or they go to an agent and they sell. So, here’s the question. If they’re going to go and sell somewhere else, why shouldn’t you be the one making money for it? That’s what I think.
So we built this process, where if somebody calls in and says, “Hey, I want to sell,” but it doesn’t fit your buy box, it doesn’t fit that number that you want to buy for, how do you set it up where you monetize it? The whole course just teaches people how to pick a real estate agent that literally becomes a business partner of yours. He doesn’t own part of your company, but I’ll tell you, because of the amount of money you can make in this business with this partner, it really is a business partner. Because you can make as much as you’re making in your investment business, you can pay for every cent of your marketing just by doing this and doing it at a high level. So, that’s why it’s so important to pick the right person and go all in and do it well.

Speaker 4:
You’re tapping on something really, really important. I always emphasize the importance of having a power team, right? At the end of the day, we’re looking for people who are either more connected or better than us. In certain areas, one of them would be traditional real estate. So if you’re tapping into that pool, I mean, think about it this way. There’s almost like a stigma about working with real estate agents. Like, “Ah, I don’t want to work with real estate agents, because they look down on wholesalers and this and this and that.”
But if you’re able to become a partner, a true partner and create that value for them somehow, some way, trust me, they’re going to be on your team. They’re going to be part of your power team, and you’re going to have that much reach, that much more expertise or borrowed expertise in whatever market you’re tapping into. I mean, that’s amazing. So, how do you do that? How do you come in, have a conversation with a real estate agent and then bring them into your power circle per se through your process?

Chris Craddock:
Yeah, no, I mean, that’s the big question. You got to pick the right agent, because the agent you choose really will dictate how well this goes. Because, I mean, here’s the deal. If you are doing any amount of business at all, bringing in any amount of leads, you will likely break that agent’s business, because they’re going to have so many more appointments to go on and to close up and they’re going to have to build with you. So, that’s why it’s so important to find somebody that fits that criteria.
So, this is what we’re looking for. You ask how do you find them? First, you got to know who you’re looking for, right? You create your missing persons report and this is what you’re-

Speaker 4:
A missing person’s report, I like that.

Chris Craddock:
Yeah, yeah, yeah, yeah. I mean, just think about it. You’re looking at the side of a milk bottle, right, and do they even have milk bottles anymore? A milk carton, and they don’t even have missing people on milk cartons anymore, and it says this is what they look like, this is who they are, this is what you’ll likely find them looking like. So when you create that, that you’ll then know what it looks like when you find it.
So, here’s what it is. It’s somebody that’s happy, hungry, humble, and smart, right? I’ll tell you, steal that and use that for every hire that you have in your business, because this is literally what you have to find for anybody that you want to be in business with if you’re going to up your game, right? One of my favorite books is Topgrading, right? Is you’re bringing in people in your organization, you make your organization better. So it’s happy, hungry, humble, and smart, right? So-

Speaker 4:
Happy, hungry, humble, and smart. I love that, man. I love that.

Chris Craddock:
It’s powerful, because if they really are that, it’s going to bring the whole organization up. Not just maybe your finances, but everybody who works with them. So, happy. If they’re not happy, if you hear them complaining about their brokerage, if you hear them complaining about people they’re in business with, all those complaints, you know what? Very soon it will be you they’re complaining about, right?

Speaker 4:
Oh yeah, it’s going to spill over. It will spill over.

Chris Craddock:
You want happy people, so people that are genuinely happy. Hungry. You see so many people, where if somebody says, “No,” they say, “Okay, well, they said, no, I guess that’s it.”

Speaker 4:
Yeah.

Chris Craddock:
If you say no, you got to be willing to find a path to yes. That book Getting to Yes, how do you get to yes, right? They may have said no, so be creative to figure out a way to get them to yes, right? A hungry person is not going to take no for an answer, they’re going to figure out a path to yes.
Then humble, this is a big piece. I talk about this all the time. So humble, basically a lot of people think that confidence and humility can’t go hand in hand, but the reality is confidence and humility love each other, they’re amazing. Arrogance and humility don’t go hand in hand. Then arrogance is, “I think I’ve got it all together.” You’ll find people that are not confident publicly, more quiet and subdued and just not out there confident.

Speaker 4:
Yeah, more of your introvert. Yeah.

Chris Craddock:
Yeah, yeah. Just because somebody’s an introvert, doesn’t mean they’re not massively arrogant and believe that they can do everything themselves and they don’t need to learn from others. Again-

Speaker 4:
Yeah, you got a point.

Chris Craddock:
That’s why I love this tribe, this group of people, because everybody here, they’re open and they’re wanting to learn. Everybody around you, there’s something that you can glean and take away from who they are to make you better. So, humble and then smart. One of my favorite books, I talk about this all the time is The Road Less Stupid, right?

Speaker 4:
Oh yeah. Great book, love that book.

Chris Craddock:
Oh, so good, Keith Cunningham. He talks about paying the stupid tax, right? So smart people, just people that get high SAT scores, right, they’re also people that learn fast. They make a mistake and then, boom, the next time they make that mistake or the next time it comes up, they’ve learned from it, they fix it and they don’t make that mistake again, right? They’re not going to pay the stupid tax. In this business, if you make the same mistake more than once, it costs a lot of money. I mean, what is your average wholesale fee?

Speaker 4:
Oh yeah. No, I think last time I checked we were around $23,000, $24,000.

Chris Craddock:
Right. So if you make the same mistake a second time, it costs you $24,000.

Speaker 4:
Yeah.

Chris Craddock:
For a real estate agent, right, the average commission is around 10 grand, right?

Speaker 4:
Right.

Chris Craddock:
So you’re going to keep about 35% of that, that’s $3,500 that it costs you if that agent pays a stupid tax. It costs him $6,500 and it costs her $6,500 and it costs you $3,500. So, that is way too expensive to be paying that stupid tax over and over again because they refuse to learn.

Speaker 4:
I completely agree. I mean, there’s no reason why your marketing dollars should be just going to the dead bend, right? There’s ways to monetize it. So, let me ask you this. Why join your program? This is more of a discovery question here. Why would somebody want to join your program if they already have a connection with a realtor?

Chris Craddock:
That’s a great question. Here’s the deal. So many people know real estate agents, and what I would just say is this. The amount of money that people are leaving on the table, I’ve shared this a number of times. I mean, I have one group that we work with that we literally send over $60,000 every single month to. Every month, three-quarters of a million dollars that normally would have just died in their database. So getting to scale fast, learning this fast, just trying to figure it out on your own, that’s the stupid tax, my friend.

Speaker 4:
Yeah.

Chris Craddock:
That is paying a stupid tax. Because we crack the code, and in this business, speed makes you so much money, so much money. Especially, just think about it. While you’re trying to figure it out, maybe you miss out on five, 10, 20, 30, 50 deals, and what does that cost you? If it’s 3,500 bucks a pop, what does that cost you if you missed out on 10 deals? That’s 35 grand while you’re just trying to figure it out, right?

Speaker 4:
Yeah.

Chris Craddock:
[inaudible 00:11:54]. The second thing is this. I had a client, a coaching client of mine that came in, his wife was an agent, so they were like, “No, no, we got this, we got this.” I broke down the numbers with them, and I was like, “Hey, why don’t we talk through the numbers here?” So, we went through the numbers and I was like, “Brother, you are leaving so much money on the table, so much money.” He’s like, “No, no, no, I think we got it.”
So we started looking at it, he literally called me two and a half months after he started the program, him and his wife were on the phone and he said, “Chris, in the last two and a half months, we brought in $90,000 more than we’ve … because of this program alone, we brought in an extra $90,000 in two and a half months.” He’s like, “Chris, this has been life-changing for us, this will change our life.”
So to me, I’m just telling you that I’ve talked to so many people across the country and nobody’s doing it at a massively high level. That’s why I think it’s so important right now, because I think people are looking for that instant offer, but the reality is the instant offer is 65 cents on the dollar and most people love that. So if you can solve that problem together, you can make a fortune in solving people’s problems.

Speaker 4:
Well, you’re talking $90,000, I mean, that’s twice the average salary in most towns, most cities. Yeah, it’s insane. I emphasize the marketing dollar, the marketing spend, because it’s one of the biggest problems. You are going to have a ton of overhead in salaries and as you start growing, but when you’re running, especially a solo operation, when you’re running by yourself and you’re wearing all the hats in your business, anything that you put out, it’s going to hurt a little.
All right, so $2,000 in marketing here, $2,000 for this campaign here, and then next thing you know, you’re $4,000, $5,000 into it, and I mean, you start to feel that, right? So at the very least, at the very least you get concerned about, okay, how am I going to market next week what’s happening? Why is all this stuff that I’m doing just ending up dead again at the bottom of the spreadsheet? So in order to create these relationships and to actually use the process, you need to be licensed? How does that work?

Chris Craddock:
Yeah, so you’re not allowed to give referral fees to unlicensed people. California has an interesting role, I think there’s a couple other states that do as well. But what I teach is this, there’s three things. One, success leaves clues. Almost every large wholesaler and every large fix and flipper in the country that I know of either is licensed himself or one of their business partners is licensed. Actually, I think I heard you own a brokerage yourself, right?

Speaker 4:
Right.

Chris Craddock:
Yeah, so success leaves clues. I was talking to Brent Daniels the other day, I had no idea that Brent was licensed. Brent’s like, “I’ve been licensed-

Speaker 4:
Oh, yeah.

Chris Craddock:
It’s just funny, because you see that success leaves clues, and so you’ve got to ask yourself why are all these people that are very smart who are not doing deals all the time getting licensed? If you see they are, you probably should ask that question. Also, here’s the other thing. In your market in your neighborhood, when you become known as the real estate guy or the real estate girl, everybody’s going to come to you with questions when they’re buying and selling. I’ll tell you, there’s so much money to be made in referral fees just by kicking [inaudible 00:15:03] to other agents as well, even if you should stay in your lane.
So, that’s one. Number two, you can just get somebody licensed in your organization, right? Run their license through the LLC, and then they can receive referral fees there. Then number three, and this is really easy, 25% of all agents in every market do zero transactions. So you can bring them in and say, “Hey, look, I’m going to pay you to come in and be our in-house person.” You’re not going to be sending them on appointments, because if they’re doing zero transactions, they’ve got some patterns there, but they can manage your referral income and manage that and run their license through your organization, so that they become your in-house agent to work referrals and your leads. Ways to do that in each locality. So, that’s how people should handle it.

Speaker 4:
Beautiful. No, I love it. It’s also one of the big questions. Why would I work with an agent? How do I have a conversation with an agent? Where do I find an agent? When people think real estate agents, they automatically kind of grant authority without bias. Be like, “This guy has a license, they must know what they’re doing,” right? But the reality of it is it’s completely different.
I think 80% of the business is being performed by about 20% of the agents in the average market, the rest of them, they’re stationary licenses. So they’re active in a brokerage somewhere, somehow, but they’re not engaging. It’s a side gig, it’s something that they have on as a fallback, not as a profession that they can tap into.
Being able to find the right partnership, the right person that you can bring into your power team like that, such as an agent who’s happy, hungry, humble, and smart, it’s going to be a real, real game changer, right? Whether it’s inside your business somehow, some way, or whether you’re reaching out on a referral basis and then creating the two-way stream of business and opportunities. I love it, man. If somebody wants to get ahold of you and find out more, I mean, what’s the next step?

Chris Craddock:
Yeah, so wholesalinginc.com/revive. That’s the easiest way to jump in and see whether we can have a call and just see whether this is a good fit for you and your business. I do believe it’s the most important companion class you can have to any class. Anything you’re doing that’s teaching you how to bring leads in, because it allows you to monetize them in a number of different ways.
The second thing that you can do is I’m on Instagram. It’s craddrock, @C-R-A-D-D-R-O-C-K. Old high school nickname. Just go in there, and if you DM me, I’m trying to respond to every DM out there. So feel free to DM me, and I will try to respond to anybody that wants to DM me and talk to me on that.

Speaker 4:
Beautiful, man. I love it, I love it. Thank you so much for your time. This is really coming in and plugging a very, very deep hole that happens in most businesses, right? When the budget for marketing is running out, what do you do? What do you do with all those leads? How do you handle them the right way? Most people think referrals, and yes, you get somebody certified or something, and then they start doing sketchy things that are outside the boundaries and it’s easy to get in trouble. I mean, that’s the reality of it, right?
If you don’t handle referral fees in that type of a strategy or that type of business the right way, you can get in trouble real quick. So, why not monetize? Why not take the right approach, something that’s been fine-tuned over the last three, four years and really take that and build it in, incorporate it as part of your wholesale business?
So I love it, brother. Thank you so much, Chris. It’s been a pleasure having you, I look forward to talking to you soon. For you, tribe, there you guys have it. So, here’s another way to monetize your leads and create that capital that you need in your business as far as the cashflow and not have stuff sit on the bottom of your spreadsheet.
So if you’re interested in coaching, if you’re interested in finding more about the tribe and Wholesaling Inc as a whole, go to the Wholesaling Inc website, set up a call with one of our representatives, and if it all makes sense, and we look forward to working with you. Until then, stay focused, you’ve got this.

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