Posted on: June 23, 2021

Adam Rothenflu is a newcomer to real estate investing (just 6 months in!); and today, he joins us on the show to walk us through his journey. He also talks about teaming up with Tony Javier and how he utilizes television ads on top of other traditional marketing methods. Tune in to learn what Adam was able to accomplish in his first 60 days of wholesaling through hard work and proper coaching.

If you are just starting out in real estate and looking into television as a way to elevate your business, then this is the episode for you!

Key Takeaways

  • You can start educating yourself with podcasts and courses (like Rafael Cortez’s Wholesaling Business Blueprint)
  • Tony’s perspective on this case study
  • About Adam’s marketing strategy and budget
  • The benefits of doing TV ads
  • Tony’s advice on being willing to pay for speed

RESOURCES:

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Episode Transcription

Chris Arnold:
Welcome to the wholesaling Inc podcast. I’m your host, Chris Arnold. As always, we’re excited that you are with us. You guys know my style, just come out straight and tell you what you’re going to get from the podcast. So we brought TV on the scene, I don’t even know how many months ago that was, not very long ago. And I have a lot of people asking me like, “Chris, we want to hear from people that have stepped into this TV world and what success did they see? Is it working? Is it not working?” Because what I find is you get to early adopters that are like, “I’m willing to go for this. I don’t need to see anyone else that’s done it.” And then there’s a good majority that just kind of kick back a little bit and say, “Oh, I’m going to watch and see.” Nothing wrong with that at all. We just want to make kind of a calculated move. So I had today on Adam Rothenfluh. Did I say it right? Rothenfluh right?

Adam Rothenfluh:
You got it. You got it.

Chris Arnold:
I was practicing a little bit. I didn’t want to butcher that. And of course got Tony Javier as well. And what we’re going to talk about is Adam’s journey today. This is an interesting case study. I love what Adam said. He said, “Around Christmas time, literally last Christmas, I didn’t know anything about real estate.” So he is six months in. He’s already launched his television, already closing deals. And I think a lot of people always ask this about radio and particularly television. When I do other podcasts, people are always like, “Well, isn’t this for like the advanced person?” And I always go, “No, it’s not.”
If somebody has a marketing budget, you don’t have to sit around and just do cold calling or text blasting. If you want to shift from really the outbound prospecting more to the inbound marketing, there’s nothing that’s saying you can’t move that timeline up and go for it. And Adam’s done that. So we’re going to walk through his story today, kind of his background and particularly around his numbers on TV and what Tony has helped him accomplish in his first 60 days being live on television. So Adam, what’s up buddy? Welcome to the show, man.

Adam Rothenfluh:
Hey, it’s an honor to be here. I just want to say thank you to you, Chris, and also to Tony and just how much respect I have for you both and the whole Wholesale Inc community and really about you guys bringing to light these marketing channels that you have for us. You didn’t have to do it. You guys could have kept it all to yourself. So just thank you for doing this and really appreciate you guys.

Chris Arnold:
Well, man, love that. I appreciate that. So let’s jump into your story, right? Background. People want to know where you’re living, where are you doing deals out of? So kind of give us the context geographically of where this story starts.

Adam Rothenfluh:
Sure. Yeah, I’m right in the middle of California in the central valley, the town is Fresno. That’s where I’m at. Like I mentioned to you last year, basically, what’s happened over the last 10 years is that I’ve watched my brother-in-law, who will both be 40 years old this year, so we’re the same age. I’ve watched him exit the rat race over the last 10 years through real estate in the San Francisco Bay Area, watching him flip and fix, buy and hold. Just whatever made sense. I’ve watched him do it. Live below his means while he did it, and now he’s really reaping the rewards.
I’ve been on the employee track the entire time. So just kind of going side by side with him, it’s just been a great comparison. And after the pandemic year, last year being an employee, realizing that, “Hey, man. Things can really change for employees and we’re not always in control of our situation.” So I went to my brother-in-law and I said, “Hey, I’m ready to get involved with you. I’m ready to look into real estate.” He said, “Well, what you can do is bring me deals.” And I had no idea what that meant.

Chris Arnold:
What does that mean? It sounds clear, but how do I do that?

Adam Rothenfluh:
How in the world am I going to bring you a deal? I don’t have any connections. I’m not involved at all. And really what he had done was for many years was he purchased most of his properties at the auction. For those that know a lot of the auction stuff is drying up or they’re just not as lucrative as they once were. So he needed a way to get deals. He said, “That’s the way we can work together.”
I kind of came away from that meeting, not really wanting to ask what is a deal? How do I even do that? I just said, “Well, I’ll go home and try to figure this out.” Luckily, about a week later, this was around Christmas time. My wife was actually watching a real estate seminar on Facebook. I was watching over her shoulder and I heard somebody describe what wholesaling was and how that works. And I said, “That’s what he was talking about. This is what I need to get involved in.”

Chris Arnold:
I love it. So at that point, you kind of have to figure out how in the world am I going to rapidly educate myself in this process? So what was kind of the first step that you took?

Adam Rothenfluh:
Well, I’m a podcast junkie at heart. So immediately I just downloaded all of the wholesaling podcast that I could get my hands on. And very quickly I realized that Wholesaling Inc was the best one. At least for me, just the information that was being brought forth, the coaches, it’s just such a go-giver mentality and community that every coach that’s on there is just giving out so much free information.
I was hooked on that podcast right away. It took me about two weeks to realize I needed to get into the Wholesaling Inc like beginner’s course, which I think it’s Rafael Cortez’s course.

Chris Arnold:
Yeah, Rafael’s course is Wholesaling Blueprint.

Adam Rothenfluh:
Exactly. The Business Blueprint course they’re calling it now. So I got into that right at the beginning of the year. And again, I had no idea what a VA was. I had no idea what dialing software was. I had no idea what any of this was. I just jumped in and thanks to that course, he lays it all out for you, helps you get all the software, help you getting your CRM, how to actually cold call, all the things to get started out. And I guess the traditional way of doing it these days.
So I got into the course. He really got me going and by March, I had my first couple of deals doing it the traditional way with the cold caller and buying the lists and organizing all that information, and everything like that. So I got a couple of deals under my belt, and that was around my area. That was in my own backyard because I knew I couldn’t just jump into the Bay Area, which is one of the most competitive markets, and obviously [crosstalk 00:07:07].

Chris Arnold:
People are listening going, “Yeah, Cali. If this guy is out in Cali, I’m listening because that’s a tougher market.

Adam Rothenfluh:
Sure. So that’s where my heart was. I wanted to do something with my brother-in-law in the Bay Area, but I knew with my skill level being zero, there was no way that I could just jump into these cold calling there and tried to compete with everyone else. So did some stuff in my own backyard, continuing to listen to the podcast religiously. However, I took about a week break off the podcast. I was listening to an audio book, Never Split The Difference that Chris Voss is negotiating.

Chris Arnold:
Great book by the way. Great book.

Adam Rothenfluh:
So I was away from the podcast for like a week. And I remember it vividly, I was doing yard work. It was a Saturday morning and I heard the podcast probably a week or two after you guys actually aired it with you and Tony, and you were introducing Tony and the TV program. And it’s just like, boom, the light bulb went off. This is the way that I can get into a hyper competitive market with very little skill level.
So I just saw the light. I called Tony right away. I had to convince him that I was all in being a new investor and not having a lot of skills on the acquisition end, but we had a good conversation and kind of the rest is history.

Chris Arnold:
Love it, man. So also too, you’re married, you have two kids, you’re working a nine to five. Give a little context because depending on what people have going on in their lives that can make this journey a little bit more difficult to balance all of that type of stuff. So talk a little bit, just kind of about your family and your personal life.

Adam Rothenfluh:
Yeah. Obviously, my motivation is to create some freedom for us and for my kids. Obviously, we all want to give our kids the best and things of that nature. So that’s really the motivation behind this. And yes, I still have a full-time job. I was really doing everything I could between the hours of like four and seven every day, doing my cold calling before actually got cold callers, just trying to figure this whole thing out. And as most entrepreneurs know, things are going to be out of balance before you get them in balance.
Right now I’m six months into my business and I’m still trying to get it in balance, and I still got my four-year-old banging on the office door. and I still got all the other responsibilities. So just trying to figure this thing out, but I see all you coaches and people that have families and young families, you guys are doing it and you’re figuring it out. So it’s just very inspirational to see that.

Chris Arnold:
Yeah, I love it. Absolutely. So Tony, this is interesting. So you get this call from Adam, right? Newer to the game. Only been in six months. Grinning, charging in going, “Tony, I want to do TV. So what was kind of that conversation that went down Tony on Adam kind of coming you in convincing you like, “Hey, man. I know I’m newer, man, but I can make this thing work. Just give me a chance.” Yeah.

Tony Javier:
Yeah. It’s interesting because anybody who schedules a call with me or my team, they have to fill out an application, right? So we want to make sure that we’re not jumping on a call with someone we don’t feel like is ready or qualified. So Adam applied, it pretty much been all experienced investor that applied. Guys that are doing tons of deals, 50 deals, 100 deals, 100 plus deals a year. So when I saw this application come through that said, “I’ve done no…” I think it was flips is the question he answered. And I thought, you know what, “I’m just going to cancel this call. I don’t feel like they’re going to be right for it because they never done a deal.”
Because I’ve done coaching with people that have started out the real estate investing business. A lot of you guys probably know the statistics is when someone buys a product and gets into something, it’s typically a 1% success rate or less, right? 1% is probably generous. It’s probably way less than 1%. So I’m thinking, “Okay, do I really want to handhold this guy through the whole process?”
Anyway, so I get on the phone with him, I take the call, and I just loved Adam. He had good energy, told me he was a Division I quarterback in college, which that by itself tells me like, if anybody’s going to do this, it’s like, it’s going to be this guy. [crosstalk 00:11:09] the toughest position I feel like in sports and he’s doing it at a high level, the commitment, the dedication you have to have to that, I played college football myself. And it’s like, I know what it takes, right?
Adam, I’m thinking, “Okay, all right. I’m going to give this guy a shot.” So he was the first new investor that I got into the program. So fast forward, super easy to work with. Didn’t have to handhold a lot and I’d help him with his website and some things that I’ve got to help a new investor with. Then the light bulb went off after I’ve started seeing his results. Dude, he just worked a program and he’ll tell you his results here in a little bit, but first month he just crushed it, I mean, in the most competitive and arguably the most expensive real estate market in the US.
So I’m glad I did it because it opened up my eyes to, okay, if other people are charging 20, 30, 50, 70 $5,000. The most expensive program in my program was about 100. Maybe a little over $100,000 to get into and you get no leads. You get a system, you get hand-holding, you get that kind a thing. And I’m like, okay, if Adam and a newer investor can work this program, spent a fraction of the money that he would have on it, and on a high, high level program. [inaudible 00:12:30] right away.
It’s like, “Okay, maybe I need to start letting new investors into the program.” So I’m glad I let Adam into the program. He’s been a blessing. It’s been great to work with him. He’s now jumping into a second market here pretty soon and just worked it. So I’m glad that he jumped on board and he’s having success with the program.

Chris Arnold:
Well, we definitely know Adam is a sales guy, if he got in and convinced you to do it as well. So I love that. And that’s the thing. I learned the same thing about radio. I just assumed that radio was going to be for the high level person and what I began to realize quickly through students coming through that have been in the business less than 12 to 24 months. They’re like, “We can do this.”
And I would say at this point, again, I can speak for radio say about 80% of our students have probably been in the business less than 12 to 24 months. And they just rock radio. I think you’re kind of going through the same evolution that I did where there’s just an assumption that you got to be super seasoned to do this. But if you got a marketing budget, you don’t have to sit around and wait for five years as an investor to make this move.
So, Adam, I want to get into the numbers like everyone’s listening, going, “Okay, break this down for me. How long you’ve been advertising, what’s the cost, et cetera?” So let’s break this down. You have been live on radio in the Bay Area for how long now?

Adam Rothenfluh:
So today’s June 4th and our first ad ran on April 5th. So we are exactly two months in.

Tony Javier:
You meant TV, right, Chris, not radio.

Chris Arnold:
Yeah. I’m used to saying radio. Thanks. Tony always has to correct me because I say radio all the time. Thank you, Tony. No, television for two months. So with that, you said call volume wise, you feel like you’re roughly getting about one call a day. Is that right?

Adam Rothenfluh:
Yeah. I’d say the phone rings from the TV ad about once a day, I would say about half of those are very motivated sellers who are reaching out to find out what they can get for their property. And so those are great. Then obviously you get a couple of people who may want to work with you or other radio stations or people reaching out to try to get business. But I would say-

Chris Arnold:
Hey, you’re a player now. They’re like, “Hey, this guy is advertising on TV.” Again, that’s what we call that instant credibility, that celebrity status that begins to snowball pretty quickly. So you’re getting about one call a day. You’re finding those calls to be high quality. Same thing we experience on the radio side as well. Now, what is your budget? Again, Tony already said, “Man, this guy is advertising one of the most expensive markets in the country.” How much are you paying per month right now for your television?

Adam Rothenfluh:
Yeah. It’s about 9,000 a month for our television, which Tony can probably speak more to that. But it’s probably the highest in the country, I would say in terms of just geographical area.

Chris Arnold:
Okay. So 9K, pretty expensive, but I will argue that I know people spending more than that on their current direct mails/cold calling, whatever they’re doing, PPC. So 9K is high, but in the grand scheme of things, it’s not like it’s 20, 25 grand a month, which I would consider to be pretty hot. Now, so far deal wise, you’ve already closed. Your first deal been paid out. And what was your profit on the first deal?

Adam Rothenfluh:
First deal, profit was 61K. And that call actually came in, so we started April 5th, that call came in April 11th. We started Monday, it came in Sunday night. It was the first.

Chris Arnold:
You got to be feeling pretty good about that. Now, let’s do some quick math. You’ve roughly spent then, if you’re spending 9K a month, two months is 18K, you did a 61K profit deal, so I’ll average that. So if we do that math, Adam, that’s like a one to five return. So fundamentally for every dollar you’re spending, you’re getting a five times return on that. So that’s got to feel pretty good. So here’s my question. The first deal that you did, people will want to know, what kind of deal was that? Was that a wholesale deal? Did you do a fix and flip? What did that look like?

Adam Rothenfluh:
Straight wholesale deal. Right now I’ve only got one tool in my tool belt and it’s called the cash offer hammer. So I mean, to be honest, if I’m being honest, I’ve got two other deals in my CRM coming from TV that I don’t have the education on creative finance yet. I’m sure there are some other ways that I could make it happen. We’re just either too far away on price or there’s some other things that I just don’t have the skill level yet. So I’m working hard to get my skill level up as a NICU manager and figure this thing out. So yeah, I don’t flip properties yet. I haven’t done any of that, but hopefully down the road.

Chris Arnold:
So you on top of that have two pending deals and the total in the pipeline for that is 50K, right? You’ve got like a 20K deal and a 30K deal?

Adam Rothenfluh:
Correct, yep. Just a typical wholesale. I was able to assign those right away. So now we’re just waiting for the escrow process to close.

Chris Arnold:
So those have actually already have a buyer on them in escrow waiting to close. So if we add those numbers together, then that puts you at 101,000 in profit come just a couple of weeks down the road?

Adam Rothenfluh:
Yeah. So I’m very happy with that, obviously. And I think one thing to mention too is that when comparing side-by-side to kind of the traditional way, I’m doing things in my backyard, I’m spending 95% of my time on the traditional way. Buying lists, sorting lists, stacking lists, managing my cold callers, following up all the time that it takes to get something like that across the finish line compared to maybe 5% of my time in the virtual market with TV. So that’s the part that I love because that’s true freedom for me.

Chris Arnold:
Yeah. That’s interesting. In the market in which you live in, in Fresno, you’re doing cold calling. But then you’re doing television in the Bay Area. And if we’re looking at your cost per labor, the actual labor time that you’re putting in, you’re saying it’s 95-5. 95% of my actual time is going into my cold calling system, and only 5% of my time is going into TV. Is that right?

Adam Rothenfluh:
That’s right. If you were to look at my CRM, you would see 95% of the leads in there are from the traditional way of doing things that may take 10 to 20 touch points to get them close to a place where they’re ready to sell compared to 5% of the leads that are in there that came from TV that are already hot. You don’t even need to warm them up. They’re calling me. So just the babysitting, the following up, all the different touch points, you just don’t need to go through as much of that. So, I mean, they might even be less than 5%.

Chris Arnold:
Wow. I’m curious though. I’m sitting here like if I were in your shoes, would I be processing like… The people that are listening are like, “So are you going to continue to cold call? What conclusion do you start to come to when you find yourself in that much of a difference than in the sense of what is taking time? What are you processing at this point?

Adam Rothenfluh:
Yeah. There’s a lot to process in that. And that’s exactly what I’m thinking about right now, because in the Bay Area market with the TV, I have a partner, and that’s my brother-in-law. We’re doing this together and we’re building up a company and hopefully to acquire more real estate ourselves. And then in the local market that I’m, it’s just me. So that’s kind of the money I’m living off of and kind of the extra living expenses and things like that. So I definitely want to continue with it.
And I want to give this a good year to really do a side-by-side case study and take a look at it at the end of the year and say, “Really, what do I want to do to invest with my marketing dollars and my time and where can I just really make this the most efficient, all the way around for my lifestyle?”

Chris Arnold:
Wow. That’s an interesting place to be. And I love your answer and that is, “I’m not going to make any quick decisions yet. I’m going to ride this thing out and I’m going to analyze the data after 12 months and figure out what’s best.” So taking a step back now, being on television, what are a couple of the kind of characteristics that you’re personally enjoying the most about TV? What are you doing? What I like about TV is this at this point.

Adam Rothenfluh:
It’s that time that I’m putting into it. It’s truly a set it and forget it system, especially the way that Tony has the whole program set up. There really wasn’t a lot of deliverables for me. I didn’t put even a lot of man hours into getting the few bits of information, getting the commercial shot. Tony’s media buyer takes care of everything for you. I mean, it’s truly set it and forget it, which I love because I want to spend my time with my kids, not stacking lists and making sure I’m following up on all of these CRM follow-ups that are coming from the cold calling and the texting and things like that, because I know I’ve got to put in a big chunk of time on that to get a deal across the board where with TV, it’s just a very minimal amount of time that I have to put in to get it across the board. I love that.

Chris Arnold:
Absolutely. And I know Tony, one of the cool things about your program is it’s a done-with-you system. So in this scenario, you’ve got a media buyer that’s going to come in and take a lot of the heavy lifting. So somebody like Adam, who’s got a lot going on, family, kids, launching new business, managing cold calling, he can pretty much come in, pay for this thing and you guys are going to do most of the set-up, right?

Tony Javier:
Yeah, absolutely. And I think that’s why our success rate is so high. So I think, Chris, you and I probably have the two highest success rates in the country with programs, right? And for us, a lot of it’s because we do a lot of the work for you, right? So like you talked about the media buying. We do the editing, we do the production, add a bit test to this. I mean, he’s got to get his logo, he’s got to get his domain, which he has a great domain, by the way. He has to shoot the commercial. And if he doesn’t want to shoot the commercial, we can shoot the commercial. I do commercials for people all the time. I’ve done it for almost 10 years now. So I can go in the studio and pop out a commercial pretty quickly.
So our success rate of getting people on TV is pretty much 100%. I mean, there’s like one or two people in our program right now that have bought in and just dragging their feet and not really doing much. But other than that, everybody is getting on the air. So it was almost 100% success rate, getting on the air and getting the program going and getting leads. And then the other side of it is the success rate of people getting a return on their money, which the data’s changing a little bit because now we’re getting to scale. But we’re like 70% of the people that are in this program are getting a return on their money within 30 to 60 days, right?
So I’m not even counting like long-term the people that may not be getting quite the results that they need to. It might take them six plus months to start getting good results. I would like to say we probably have one of the highest success rates because we do a lot of the work for you. You have to get us some information. You have to shoot the commercial, if you want to. And then obviously on the backend, we’re not going to do the deals for you, but you’ve got to work the deals and work the leads to make it happen on the back end.
We love that part of it. I love the fact that when I’m talking to someone and I get them into the program, I know there’s a 70% chance that within the first 60 days, they’re going to start making money on our program. And honestly, day one, and Adam, you can tell us how long it took for you to get your first call. But literally like most people within a day or two are emailing us and saying, “Dude, we got five calls our first day. We got three calls our first day. We got 10 calls our first three days.”
With mass media, you think it takes three, six plus months to really get traction. And when I launched the program, I thought the same thing. I thought a small amount of people would get results up front. And then a lot of the people would get results three months plus down the road. But they’re actually getting results within the first 30 to 60 days mostly, and I think it’s because of the formula we have for the TV commercial, the production, the ads we’re buying, the spend, my media guy that’s been in it 20 plus years, that adds a ton of value to our clients. Yeah, I just can’t be happier with Adam and the clients that we have in the program that are just doing really well with that.

Chris Arnold:
Yeah. And I do love that, Tony, about you and I’s approach, right? Again, the umbrella that you and I are under together, which kind of brought us together is mass media, right? Mass media is television, it’s radio and it’s billboards. And it’s pretty cool to have a program that returns deals really quickly because the one thing I have learned about students, and this is true about myself, I’m an entrepreneur, we’re just extremely impatient. We want results fast. And it just so happens that mass media is just one of those marketing channels that will pull in results pretty quickly.
So as soon as you go live on television or live on the radio, it’s the same for us. The calls start coming in immediately. And yeah, most people that I find are doing deals literally in that same timeframe, first 30 to 60 days as well. So if you’re listening, you’re like, and this is really interesting. I did want to hear some additional kind of testimonials or kind of kick back and see how this is working out for people.
I think Adam is a really interesting case study for a couple reasons. He’s brand new to real estate. We’ve been in the game for six months. So I think that removes a lot of excuses in the minds of us that are listening to this. And he’s doing it in Cali, not just California, which is a really tough state, he’s doing it in the Bay Area, which is arguably, probably one of the top five, most competitive markets in the country. So Adam, for you to come out swinging like this and already showing these results, I think for a lot of us listening, and even though I know this and Tony, you know this as well as I do these interviews, I just sit back and I’m like, “I’m listening.”
I know this, but I’m still inspired by this. This is really cool and a lot of times there’s just so many things out there that just aren’t working as well. So as always, if TV is like kind of bouncing around your head and you’re like, “Man, I think this might be the fit for me.” And as I always tell you guys, find the channels that best fit you. Adam’s story is he was out… I think, Adam, you said, you were mowing the yard and you heard it and you’re like, you just knew. You’re like TV is the thing for me.
So this is a channel that you’re interested in. As always, we would love be able to help you set it up. So definitely go and book an interview. You can talk directly with Tony and his team, but go to realestatemasterstv.com/chris. Again, that’s realestatemasterstv.com/chris. Book a call and we’d love to help you out in any way we can.
Adam, wrapping up, just kind of last question here. If somebody is newer to the game and they’re like, “Man, can I really go for it? Can I do this TV thing?” What would you kind of tell that person listening? Because there’s a lot of fear there, right? Spending some additional money when you start speaking into the thousands, I mean, that’s not cheap, but what would you tell someone that might be newer to the game that might go, “Man, this Adam guy is getting me to rethink this thing”?

Adam Rothenfluh:
Yeah. I would just draw it back to what you always say, Chris, about being willing to pay for speed. And being impatient as an entrepreneur, I’m as impatient as it gets. So I didn’t want to wait around or figure out how many years it was going to take me to be good enough to get into that market. I knew this was the way to do it. So I was willing to just pay for the speed, jump in with two feet. And if you have that mindset like I did, I don’t think you can go wrong with TV because the leads will be there.
It’s up to you to be decent enough to get the deal across the board. And I’m still learning. I’m such a rookie and just trying to be as humble as I can and learn as much as I can, but this is the way to get good solid leads right away coming right to you without a whole lot of the groundwork, I guess that goes into it.

Chris Arnold:
Yeah, absolutely.

Adam Rothenfluh:
So just encourage people.

Chris Arnold:
Yeah. Well, Adam, man, thank you so much for your time, willingness to come on and just share your story. It’s pretty cool, just if you look at all the dynamics of what makes up your story so far. I feel like there’s a lot that we can glean from even your short journey of just six months. So to the rest of you guys, as always, thank you for tuning in and we will catch you soon when we add more value. Talk to you guys later.

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