Posted on: August 04, 2021
WI 746 | Marketing Channel

 

If you can get in and have a marketing channel in which there’s virtually no competition, you want to be on the front end of that. That’ll increase the probability that whatever channel you’re working on will be successful.

The show’s guest today is Paul Lizell, who has been investing in real estate for two decades and has done deals in 44 out of 50 states. In this episode, he introduces an unconventional marketing strategy that has been his bread and butter—online auctions.

This method has produced 50 to 70 properties per year, and he only needs 5 to 10 hours of work per week. Paul walks us through his process and presents the benefits of copying his strategy.

So if you’re looking to expand your niche and explore a different—but effective!—marketing channel, then this episode is for you. Tune in!

The Ultimate No-cost Marketing Channel Yielding 50 to 70 Deals PER YEAR

We are excited that you are with us. For those in the tribe, one of the things that you guys know about me is I have the type of mindset that I like to find marketing channels that are not saturated. I’m the type of person that is always looking for the outlier channel. The channel that somebody is utilizing that a lot of people have overlooked. We know this happened with the radio.

That was a marketing channel that everybody knew about but nobody was utilizing. I also saw that there was a large untapped potential for television and so I brought on Tony Javier a few times for you guys just to be introduced to the ability to use mass media. If you’ve been reading, we brought on several students and the success that they’ve seen off of television and radio.

I’ve got another channel for you. A buddy of mine that I’ve known for about 4 or 5 years, I’ve been talking with, I’ve been following his story and here’s what you’re going to get from this show. We are going to lay out for you a marketing channel that you’re probably not familiar with. This channel has got a lot of benefits.

We’ll break some of those down but one of the top benefits is the fact that it requires zero marketing costs. That ought to catch your interest as well and more importantly, it’s a channel that is perfectly timed based on what’s happening in the market now, particularly with some of the stuff that’s going on with the moratorium with the foreclosures and evictions. There is a wave that’s coming and my buddy Paul Lizell has been working on a strategy for a long time.

I remember I called Paul years ago and I said, “Paul, you got to be getting excited because this channel that you’ve built, you’re about to hit a peak wave with everything that’s happening via COVID.” He said, “I’m more excited about this channel than ever because I’ve been working, doing a lot of deals with this channel but we’ve not maximized it because the overall circumstance and economy hasn’t been at its full potential to be able to do that.” That’s what we’re going to present to you guys. First of all, Paul Lizell, what’s up buddy? Welcome to the show. Glad to have you.

Chris, thanks for having me. I’m excited to be on.

Paul Lizell, if some of you recognize that name, Paul’s been around forever. I’ve known him for a long time. Let’s start with just a little bit of background to give you some credibility like, where are you located? How long you’ve been in the game? A little bit about your business set up so those in the tribe that is reading can get a sense of who this guy Paul is.

I started investing in real estate a long time ago. Live around many years here so I started buying in December of 2001. It was the first property I bought. It was a HUD property. I partnered with a guy. We picked it up for $29,500. We put $4,000 in over. We sold it for $69,000 a few months later and this is while I was working full-time for the bank. I wanted to continue this obviously and then grow it into a fix and flip business.

At that point, that’s what I was looking at fix and flip and I was just doing bank own almost exclusively HUD properties. This was before the days of Auction.com, Hubzu, Hudson & Marshall and these other avenues were available. There were still plenty available on Fannie Mae, Freddie Mac and HUD as well. I started doing that. I continue to do that part-time while I was working for the bank and then finally in 2004, I went off on my own doing fix and flips, some wholesaling as well and I’ve continued to grow it ever since.

You’re a veteran. I’ve been in the game for a few years but I’m doing the math on that. You got me by about four years. You’ve been in the game now for literally two decades at this point. You have seen a lot and have done a lot of deals. One of the things I love about Paul and I’m going to throw this question out here is, how many states have you done deals in so far?

We have bought and sold in 44 out of 50 states.

You want to have the person who’s going to sell for you so you can concentrate on the acquisition side.

I hear a lot of people talk about virtual wholesaling and doing deals in different markets. Anytime someone tells me that, you always bought in my head because I’m like, “I don’t know anyone that’s more of a quintessential virtual wholesaler than Paul is when this guy’s done literally 44 out of the states that exist.” That is a lot of different states to be doing deals in. One of the reasons that you’ve been able to do deals in that many states is the way in which you are going about finding deals and making this happen.

Let’s break this down. We’re talking particularly about your strategy of buying properties, utilizing the auction. My first question to you is how did you stumble across this? There’s not a lot of people right now buying opportunities via online auctions. There might be people back in the day that was going down to the local auction where you literally show up physically down at the courthouse but we’re talking about purchasing your computer, utilizing and buying properties online auction. How did this journey begin for you?

The one thing I love about this is that I can wander down from my bedroom and grab my coffee, go into my office and start bidding on properties. It didn’t start out that way because Auction.com didn’t come about until around 2004 timeframe and I started buying a little bit from them and I was mostly buying like most investors locally. I was within a couple of hours of my house here, 2 hours or about 45 minutes North of Philadelphia. I was buying in that market.

I then started buying properties, expanding up further and further going to Pittsburgh, Ohio, New Jersey and Delaware. Before you know it, I’m blanketing North Carolina, South Carolina, Florida, Texas, Oklahoma and 44 states later, that’s where I am now. This method, I just stumbled onto it and I stumbled onto the whole virtual wholesaling aspect of it.

Most investors just have that mindset that they’re going to farm and farm their backyard. I liked visiting different parts of the country and seeing different places. For me, this was almost an excuse to see different places if I did choose to go and look at the properties, which I rarely ever do but I have gone to visit other markets like Tucson, Arizona, Casper, Wyoming, all these different places in Texas. I bought a lot in Texas over the years and the Carolina. It’s a lifestyle thing for me too but it was something I stumbled upon.

I hear a lot of people talk about wanting to be a virtual wholesaler and do deals, a city or a state that they don’t live in. A lot of the stuff that pops up are things like direct mail, text blasting or RVM but I’m telling you, I don’t hear anyone for the most part talk about creating a virtual strategy in which you are buying properties via online auction. My question is how many people do you know of the circles that we run in that are utilizing online auctions to be able to pick up properties to wholesale, fix and flip, build their rental portfolio?

Very few. When you speak to most people who say they’re virtual wholesalers, they’re usually in two different markets. Every once in a while, you’ll get somebody that’s in three markets. Occasionally somebody uses the online auctions to add some inventory in those markets but for the most part, they concentrate whether it’s a text blast, pay-per-click or direct mail.

In speaking to Xome and Hudson & Marshall, speaking to the people that run it, they say there are only two big players in the market doing what I’m doing, myself and, another guy and his son in California. The rest of them are just picking and choosing different markets here or there. I want the whole country to be my farm. I want to farm the whole country to be able to get properties anywhere because there are buyers in every single market. I just constrict it to 2 or 3 different markets when I can have it open to the whole country.

How did this get overlooked? A lot of people ask me that about radio. They’re like, “Radio has been around forever. Why is nobody utilizing radio.” I always said, “There are two primary reasons.” Number one, people believe that it wasn’t affordable. They thought that they were going to have to have a budget of $10,000 to get started.

WI 746 | Marketing Channel

Marketing Channel: We want to farm the whole country to get properties anywhere because there are buyers in every market.

 

The second thing is they didn’t understand who their avatar was. They confused themselves as their avatar and they go, “I stream music via Spotify. Why in the world would I advertise on radio? I always have to remind people that our primary demographic is over the age of 45 and they don’t stream music. They’re still getting in the car and they’re turning on the radio. My first question to you is how has this been overlooked? Why is it that there are only a few people in the country now that see this play? How did this happen?

A lot of people tend to just follow the crowd and follow what’s in. Text blasting got real hot a couple of years ago. On pay-per-click has been on and off but it’s a real hot topic now. Direct mail is always been in there and some people pull out of it. People have that herd mentality where they follow everything else. That’s why I like what you’re doing so much, Chris, the radio and television.

This is stuff that people just aren’t thinking of. I hate to go to a tragic story but remember that nightclub in Connecticut that burned probably about 2010 or 2011 somewhere in that timeframe, where the fireworks are? Everybody that heard was going out these certain exits. If they had just turned around and gone backward almost all of them would have live because there were other exits the other way where people were fearful of. If you yell fire in a movie theater, everybody’s going to go out those certain exit doors there but if you go out the other way, you’re probably better off. If you don’t follow the crowd, if you go away from the crowd, more often than not, you’re going to be the successful one. That has been my motto.

There’s an old quote that says, “Whenever you find yourself on the side of the majority, it’s time to pause and reflect.” Usually what you find is that the majority is wrong and that’s simply because people are fundamentally just following and duplicating each other. Some people are reading going, “You’ve got my attention here a little bit. I’m always interested in a channel that has virtually no competition. I want to understand how this works.” You get out of bed in the morning and can you break down the nuts and bolts of what this strategy looks like from the standpoint of executing on it? Walk us through how in the world you are doing deals online.

For example, what we use is Xome.com. They’ll have upcoming options, 12 or 15 different upcoming auctions. They’ll have like the Southwest, Southeast, Northeast and Northwest. I’ll break it down into those categories. What I end up doing is taking those upcoming auctions, send them to my VA being a Virtual Assistant from the Philippines. She will look at the properties, comp them for me and we’ve trained her on how to do this, come up with repair numbers and so on.

Let’s say there’s an auction coming up and there are 200 properties available in that auction. What she sends me back on that Excel spreadsheet, I might be able to whittle it down to about 25 different properties. From those 25 different properties if I do my level of due diligence, I’m might be able to whittle it down to 5 or 10 so that way I’m only bidding on 5 or 10 from the best deals here and the other ones are just not deals. They’re properties I’m probably not going to do anything with.

You can start in real estate part-time.

An auction happens, there are going to be a lot of properties that are on there, 100, 200 properties. You’re paying a VA, which is not going to cost you a lot. You’ve trained them to get in and be that first layer of pre-qualification. They’re going to narrow down that list to maybe the top twenty. From there, you’re going to take that top twenty and you’re going to do an even deeper level of due diligence and out of the 100 to 200 properties, you’re going to know the five that you want to go ahead and begin to bid on.

That’s the nuts and bolts of it.

What happens after that? Now you’ve got your eye on five properties. You want to bid on those. What happens next?

Let’s say the auction runs Monday through Thursday. I’ve tried different tactics on this but the best tactic for me so far has been to bid on it early and let it ride and then come back in at the very end and see what’s going on. Am I bidding against the auction company that will bid on behalf of the seller or am I bidding against other investors out there who are actively bidding as well? It’s become pretty easy for me to decipher between the auction company doing it and another investor and there are tactics we teach on how to decipher that but it’s become pretty easy to figure that out. You don’t want to bet against yourself.

If you’re doing that and you’re up in your bid because the auction company is trying to do it, then you’re just bidding against yourself in essence. Monday, I’ll start. Thursday, I’ll hop back in, the auction ends at 2:00. I’m bidding their last five minutes. I have my Maximum Allowable Offer or my MAO that I’ve come up with and I’m making sure that I’m under that. I do not want to bid. I don’t want to even be at my MAO because I want to have a bigger margin. If the bank accepts the offer, I would have a bigger margin to be able to wholesale this property.

What are the numbers here of the properties that you bid on, that you’ve narrowed down? What’s the ratio for how many you bid on to how many you win?

Let’s say. I’m bidding on 100, I can actively get 5 to 10 of those per month.

Is that about how many deals you’re picking up a month? You’re doing 5 to 10 deals a month off of these auction sites. Is that about right?

That’s absolutely right. We do quite a bit. We do between 60 and we’ve done as many as 135 deals in a year and 60 to 80 is the perfect amount where you can manage it and increase your profits. I found that when I was going to 130, 135, that I was spread so thin that my margins dropped. I decided, “I want to work smarter, not harder. Why don’t I just pick the best of these?” Let the other ones go, pick the best of them and increase my profits. I increase my profit spread in one year from $7,800 to almost $13,000.

The average profit per deal that you’re making now on this is about $13,000?

It’s under $13,000.

This is a channel that you found the sweet spot is able to produce you roughly around that range is about 50 to 70 properties a year. You’ve got a channel pumping out 50 to 70 deals a year and giving you an average profit of $13,000, that’s awesome. Here’s my question. From time spent for in, there’s always what we call your cost of labor, your time. How much time does it take you to run this versus some of the other marketing channels, like cold calling and stuff that require a lot of man-hours?

When I used to do some of that direct mail and even the PPC there for a little while. You’re spending easy 40, 60, 80 hours a week working your butt off on managing all those different things. Where here, I can spend 5 to 10 hours, sometimes less and still pick up the same amount of properties people are using direct mail, pay-per-click, text blasting or cold calling for that matter and without the headings.

We try to target vacant properties that are on lockbox. Whereas, if I’m buying from Joe Schmo down the road for me here, I’ve got an outtake investor Stewart and I get to tell them that different people coming at different times. It’s a whole logistical thing you have to worry about. You don’t have to worry about it at all using this auction method.

A total of somewhere around 5 to 10 hours a week is what you’re investing into this overall channel that’s producing 50 to 70 properties for you per year with an average profit of about $13,000. How many years have you been running at that level in the sense of it producing that type of volume for you? How long have you been doing this?

Since 2011 I’ve been doing that. 2011 where I’ve been utilizing all the different options out there. I was getting overworked because I was doing the acquisition and the disposition side. In 2014 I brought somebody in who would be my disposition guy for me. He was a godsend and I paid him on the backside there for the sales and that’s something you might want to think about as you grow and do more with his business. When you’re doing a couple of deals a month, it’s not a big deal but as you get to 5, 10, 15 deals a month, you want to have that person who’s going to sell for you so you can concentrate on the acquisition side.

This is a channel you’re telling me that you’ve been able to rely on consistently now for about a decade. This has been driving your wholesale business. Outside of this, are there any other traditional channels that you’re doing like direct mail, cold calling or you looked at everything else and go, “I don’t need to. I’ve built my business off of this whole concept of being able to buy properties via online auctions.”

In 2013, I cut off the direct mail, totally stopped, cold turkey with that. That was the best thing I ever did because buying all over the country, even now during COVID where they have the foreclosures, it’s like they’re in a moratorium. You can’t foreclose now on certain properties. I’m still picking up plenty of deals. For example, I picked up one in Charleston, Tennessee for $132,500. We listed it, we have a buyer for $165,000 and it took about five days to sell that one.

There are always deals out there. Most people don’t know where Charleston, Tennessee was and honestly, I didn’t know where it was either but there’s plenty of deals out there. We’re actively buying online auctions but we’re also buying off the MLS and we’re also buying from wholesalers. While the market is a little slower than normal and the auctions don’t have the inventory that they normally have, we’ve picked it up using other methods and we teach people how to use those other methods as well.

One of the questions I asked you and I always like to talk about radio from the standpoint of there’s a handful of things that I value about radio. The fact that it’s set it and forget it, it produces celebrity status or instant credibility. Let’s go through the top five benefits that you found that you value most about this particular marketing channel for yourself. The first one you said is that there are zero marketing costs. What do you mean that there’s zero marketing cost?

It’s my favorite thing. You’re paying nothing. Your only cost is your labor that you’re willing to put in here. Instead of what I normally would spend $6,000, $8,000, $10,000 a month on direct mail. Now, I’ve got none of that. What that has done is that barrier of entry for somebody needing money to get started and hopefully, 90 days later get their first deal, within the first 90 days or so. We cut that off.

For instance, one of our students, Trey, talk to him and he was super motivated. I knew this guy was going to hit the ground. Running, jumping in three deals in the first month. He spent no money on marketing. Wholesale them all, made good money and he’s still doing the same thing. That’s my favorite aspect. You’re spending nothing.

The pretty big benefit particularly at finally now, I’m newer to the real estate game and I don’t have a large marketing budget is that I could come in and start buying properties via online auction with zero cost in the sense of a marketing budget. That’s a pretty big draw. Radio doesn’t even have that. Radio, you’ve got to spend a couple of grand on. I’m going to give you props on that one. The second one was the fact that this can be done by a solopreneur. You don’t need a big team to run this particular marketing channel.

For years I did that as a solopreneur. It was just me on the acquisition side, my cell phone, the marketing side to resell it and it was just all of my labor. In other words, I could start and stop whenever I wanted. When I was doing direct mail, that was a problem because I still had to answer the phone or have somebody answer the phone for me.

WI 746 | Marketing Channel

Marketing Channel: The best tactic is to bid early, let it ride, and then come back in at the very end to see what’s going on.

 

If I want to go on vacation from online auctions, I don’t bid on the properties during that time. I could turn it on and shut it off at any point I want, which I love and you don’t have that big teams. I talked to so many guys in Mastermind meetings. They have all these big teams, acquisition managers, multiple of them. Disposition managers, multiple of them and people to handle the A to B files to B to C files.

Next thing you know you have a ten-man team and when the market turns, you have to worry about either laying all these people off, getting rid of them and shrinking everything. With us, you don’t have to worry about doing that. We have a VA that we use. We use two to do two different functions. Anytime we want to shut it down, we kept rid of the VA, which is pretty easy and we can turn it back on whenever we need to.

This is something that doesn’t require a big team and particularly if I’m reading and I’m a solopreneur, this is something that I can do myself and not be overwhelmed. You already quantified the fact that you’re spending about 5 to 10 hours a week on this particular channel, which is great. The third thing you talked about was the fact that this can be done as a side hustle but this can also be scaled and done full-time as well. Break that down a little bit by what you mean by that, that there’s diversity from a side hustle part-time to be able to do this full-time.

I’m the perfect example of this. I started this business doing this part-time in 2001. I was doing multiple fix and flips per year doing an occasional wholesale deal per year. My objective was, I told my wife about this and this was in 2004, I was able to go full-time, I wanted to have eighteen months’ worth of income be able to pay the bills and live set aside before I would go off on my own. That was the deal I made with my wife and myself.

As soon as I had that and it was around November of 20, 2004 that I quit my full-time job. They went from doing this part-time to full-time. I’ve done that and used this method ever since. I did direct mail and some PPC stuff. I always found more deals through the bank-owned properties than I did through the direct mail.

Try to balance your life right now.

Sometimes there’s direct mail. You’re going to get some pretty big margins on those but I get some pretty big margins on mine, too. When you account for marketing cost, the average cost per deal from what I’m talking to other people who do wholesale deals now is almost $5,000 per deal. This means my average profit is $13,000 there’s needs to be $18,000 or more to warrant the method that they’re utilized compared to this method.

What I hear you saying is that if somebody is working a 9:00 to 5:00, they don’t have a lot of additional time coming in and utilizing the online auction approach is something that works. If someone is trying to work a 9:00 to 5:00 make sure they have time with their family while at the same time trying to build their business all at the same time. You can do that as an actual side hustle itself.

You can make light around your lifestyle if your lifestyle is busy and you want to keep that and you just want this as a side gig to be able to fund your retirement, you could do that.

I know that’s a big piece because I hear that a lot with the radio. A lot of people pick up the radio because they’re like, “I can’t pick up a marketing channel that I feel is going to create an entirely new job for me.” I have too much going on. I’m married. I’ve got three kids under the age of ten. I’m working a 9:00 to 5:00. I coached little league and on top of that, I just don’t have the time to come in and do something like a channel that’s going to eat up a lot of my time.

I love the fact that for someone working a 9:00 to 5:00 that might be reading, they’re going, “This is something that I could incorporate into everything that I’m trying to balance in my life now.” The other thing you told me that you liked about this is the fact that you can turn it on and off at will. This is interesting because I haven’t heard a lot of people talk about this as a characteristic. Why don’t we contrast this? What is a channel that you can’t turn off and on and then what is it about buying online auctions that allows you like a light switch to be able to turn it on when you want to do deals and turn it off if you want to stop and go take a vacation?

Pay-per-click is a great example. It is probably one of the best methods now of getting properties because you get motivated sellers. People are out there but the problem is, you’ve got to be on their back and call. If you get that lead that comes to you whether it’s at a text message or an email, you’ve got to be on that for five minutes or less or they’ve already moved on to somebody else.

We’ll go to direct mail too. The same type of thing, where if you’re on vacation. I’ll give you an example. This was 2006 when I was in the Bahamas with my wife and I had to bring what I call my money phone, which was my separate cell phone, my business phone. Whenever it rang, I had to answer it no matter where I was so international call.

If a motivated lead came in, I had to answer. My wife hated it. I hated it. I didn’t want that and that’s why in 2013 I cut everything and stuck with doing the bank-owned properties because I want to be able to make it work in my lifestyle. Like you said about coaching, literally because I’ll be a travel baseball coach. This is my fourteenth year coaching Junior League. We’re in the playoffs.

Typically, this time, I cut my hours even more at work because I’ve got to do other things like prep the field, run practices and then be there for all these different games and we have games almost every single day that we’re in the playoffs. I can work this around my lifestyle. If I don’t feel like bidding, I don’t have to bid where I just bid on it and leave it. If I win it, great. If I don’t, no big deal. There’s plenty of deals out there for people thinking there are not enough deals out there. I am leaving so many deals on the table by not bidding but I’m going through what I termed the low-lying fruit. You can say, you can turn this on and off whenever you want, unlike other channels which are very difficult.

I’ve done interviews with students and stuff like that, that talk about the fact that they drop direct mail and ended up hitting earlier than they thought they were on their anniversary trip or maybe doing a little Vegas trip with the wife and they’re up in the hotel room doing deals. You don’t want to be doing that. As an entrepreneur, we get excited about that but you have to remember the other side of our spouse going like, “Are you kidding me?”

We came here for a vacation and my husband’s up in the room now converting deals because he spent money on direct mails. I know exactly what you’re talking about. The last thing, which is cool about this process is you like the benefit that literally you’re able to do deals in every state. You’re not locked into any particular geographical area.

That’s my favorite part. It’s because of that, if I’m your typical person who’s in two markets, I’m very limited with the amount of inventory I could purchase but for me is the whole country, I’ve got an unlimited supply. There are always going to be bank-owned properties. There are always going to be properties available on auction there and on the MLS. For me, it’s huge. I have a lot more opportunities out there and this method provides that, whereas you don’t get that with your direct mail because you can’t be in every market at all times. It’s not that simple, unfortunately.

Let me recap those five because those are some interesting benefits to process if you’re reading. Number one, there’s zero marketing cost to be able to do this because literally, you’re going online. You’re bidding on online auctions and that’s not going to cost you anything. You just got to spend some time doing that. It’s not like it’s a ton of time. You’re doing 5 to 10 hours a week on that.

Number two, you can do it as a solopreneur because it doesn’t require a big team to manage it. Number three, you can do it as a side hustle or you can scale it like you have and you can do 50, 70 deals a year if you want. Number four, you can turn it on and off at will, depending on what you have going on in your life and number five, it’s truly doing virtual wholesaling or virtual real estate, it’s enabling you to do deals and literally just about every state that’s out there.

Those are some strong benefits to consider when it comes to this particular marketing channel. I want to transition to this last piece here because we’re in an interesting time. We’ve come out of COVID or however, you want to define that. We’re on the other side of that. We know that during COVID, there were a lot of things that were put in place as a safety net when it came to not allowing foreclosures to happen.

There was a lot of protection around tenants and evictions. I remember calling you saying, “That’s going to change,” and what is it going to happen with this auction process? When all of a sudden everything goes back to being normal and properties can be foreclosed on and tenants can be evicted. What are you seeing with the timing of this because I would think out of everything now, this is the thing that’s probably exciting you the most because you’re probably about to hit the pinnacle of what this channel can do based on what’s happening in the economy now?

I’m licking my chops, waiting for this opportunity here and I hate to see things happen. Bad things happen to people and unfortunately, this pandemic did that and there are going to be a lot of foreclosures coming on the market. There’s going to be a flood of them coming in. They’ll try to do it in segments. They won’t flood everything at one time but there’s going to be such an increase in inventory and I’m already getting emails from Chase Bank trying to get me because I’m a licensed agent in Pennsylvania. Trying to get me to become an REO agent, which I will never do because those guys work their butts off but they are expecting a huge glut of foreclosures coming on and Chase is in.

Auction.com too, speaking of the hierarchy there. They’re ready for a flood of inventory to be coming in. All these places are getting prepared. They have slimmed down how much staff they have and now they’re starting to ramp back up, expecting a lot more to come in. We’re in an opportunity now where you want to learn these processes. When these foreclosures hit, you’re ready to hit the ground rolling. Go take advantage of it.

You know me, I get excited anytime somebody brings something along that’s not a part of the herd. Something that’s left field. I’m watching you and your business as I’ve known you over the last several years. You’re like me, I was off in the corner doing radio all by myself, making great money off of that because there’s virtually no competition.

I see you’re over in some other field all by yourself doing this auction thing and I’ve continued to ask you like, “Why haven’t peopled pick this up yet,” but it’s one of those channels that’s pretty much completely wide open. My mindset always is this, “If you can get in and have a monopoly have a channel in which there’s virtually no competition, you want to be on the front end of that because that’s what’s going to increase the probability that whatever channel that you’re working on is going to be successful.” Going back to what I said, I don’t care how great of a marketer you are, if you’re doing something like direct mail and there are 70 other postcards that are being put in somebody’s mailbox, it doesn’t matter.

It doesn’t matter how great your postcard is. It doesn’t matter how strong you are at conversion. You’re just getting lost in the over-saturation of what’s happening. I love the fact that you’re presenting to the tribe, something to consider that a lot of people just have not even taken a look at. You offer a course on this so this is your passion.

We’re in an opportunity now where you want to learn processes.

You’ve been doing real estate for many years. You’re like me, a guy that’s been doing this for so long. It gets to a point where it’s like, “It’s cool to do this but there’s a point in which I find a lot of fulfillment and enjoyment and showing other people how to do this. Talk a little bit about the course that you have because you’re at a place now where if somebody wants to learn how to come in and do online auctions, that’s something that you’re teaching. Talk a little bit about your course and what you offering.

We have a course and we’ve had it for a couple of years now. We’ve grown organically and what we teach, we have a bunch of videos online that teach you how to bid each of these different properties whether it’s Xome, Auction.com, Hudson & Marshall or Hubzu, the different processes that each of them has.

We get you set up with accounts with each of them. We try to get you into the VIP program, which we can do the VIP buyer’s program. We can do that with Xome, with Hudson & Marshall. We have videos teaching you how to do that. We also have videos teaching you how to comp properties, have you use different tools out there like RealtyTrac, Zillow, Redfin and different markets.

We even teach how to work with VAs and how to train your VA to work for you so that you can work 5 to 10 hours a week as I do. Whereas before my VA, I was doing all these extra hours. I was doing more like 30 to 40 hours per week. My VA saved me a ton of time. We teach all those different things. We teach different disposition methods because in different parts of the country, different methods of marketing work.

In Texas, for instance, Facebook Marketplace is a great place to sell properties. Don’t ask me why. Places like North and South Carolina, we have older populations and you have some mountainous regions in there where Wi-Fi is not great, selling the newspaper ads works great. We’ve learned in different markets what has worked well on the resale side.

We learned what markets we make the most profits from. We do concentrate on certain markets more so than others but that’s all the things are going to learn in our course. Above and beyond, we try to teach them entity creation. We bring in experts to talk about that, insurance, strategic tax planning, rentals and selling with owner financing. Obviously, the wholesaling and wholetailing and we even get into fix and flips if they want to.

It’s some really good material. I know how this works, whether it’s radio, television, TTP or any of the other stuff that we want to provide to the tribe. There are some people reading now going, “This is what I was looking for. This is why I tune in to Wholesaling Inc.” I’m always trying to figure out what I want to do next.

For some of you reading you’re like, “This sounds like something that would be a great fit for what I’m doing,” because when you’re reading when you read that marketing channel, that just resonates with you. Where you’re like, “There’s something about this is just a good fit for me because where I’m at in my life and the way that I’m trying to structure everything, I need a particular marketing channel that’s going to work for me now.” For some of you reading, I know that that’s going to be the case. As always, I know you guys always ask Wholesaling Inc., “Give me a promo code. Give me some type of discount.” That’s always our responsibility to do that.

WI 746 | Marketing Channel

Marketing Channel: With online auctions, you can start and stop whenever you want.

 

I was with talking with Paul and I said, “What can we do for the tribe members?” You said, “I run my course. It’s $7,000 but with a promo code I’m willing to do, which is a huge promo code of $1,500 off bringing that down to $5,500.” First of all, I want to thank you, Paul, for doing that because that’s the great savings for our tribe.

We love to be able to pass that on. If you are interested, as always, we tell you, do your due diligence, make sure every program is the right fit for you but the best way to always begin that journey is to book a call and ask some questions and see if it’s a program that you want to add into your arsenal for the upcoming year.

I know we’re always evaluating different types of marketing channels and some are a great fit for us and so that’s the ones that we’re out there hunting for. This might be a great fit for you. If you go to FlipRealEstateVirtually.com/chris, that particular domain will get you $1,500 off the course. That’s a pretty big discount that Paul is offering the tribe. Definitely make sure that if you are interested, you jump in on that and get those savings as well.

Wrapping up, Paul, as people are reading and size in this up, I know for some people they’re going to get off of this show and they’re going to be mind is turning like, “This is interesting. I hadn’t heard about this.” What do you want to wrap up with for someone that might be thinking about this, might be on the fence a little bit? What do you want to leave the audience with when it comes to this particular marketing channel?

For me, I follow the in life that keeps it simple, stupid method. In everything in every aspect that I do in life. I want to make everything as simple and easy as possible and this marketing method by far is the easiest to do is to keep it a simple, stupid method. You can set it and forget it. You can cut it off, start it whenever you want to. If you’re too busy now, you can stop bidding on properties as much as you want.

This is a simple method and we teach you all kinds of different strategies as well with any here but it’s a nice method to keep it simple. We teach you how to do the basic whole sailing all the way to the full-scale fix and flip. If it’s something that works for you, we’d be happy to have you aboard. Chris, we appreciate the opportunity you have in us on here.

I can say this as long as you and with the people that I run with, you’re a solid guy. One of those guys, every time I pick up the phone, you and I always have a great conversation. Sometimes we talk about business, sometimes we talk about life, what’s going on with our family and so forth. You’re one of those guys that, fits the overall culture of the tribe because regardless of whoever you work with, you take that seriously.

You always want to make sure that you come in and provide the highest level of value you can for anyone that decides to work with you. Paul, I appreciate you coming on. To the rest of the tribe, thank you so much for joining us. I hope that we shared something with you that got you may be thinking in a different direction. As always, we will catch you soon when we add more value. Talk to you later.

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About Chris Arnold

Chris Arnold is a 15 year Real Estate veteran who has closed over 2500 single family real estate transactions in the DFW metroplex. Chris is the founder of multiple companies that are managed by a US virtual team, which allows Chris to run his organizations while living in Tulum, Mexico full time. His passion for leaders has led to the creation of Multipliers brotherhood which serves the top 5% of real estate entrepreneurs out of the US. Most recently Chris has launched his REI Radio coaching program. This program is designed to teach real estate investors the marketing stream that everyone knows about but NO ONE is doing!

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