Posted on: May 14, 2021
WI 688 | Strategic Partnerships

 

Your real estate business may be doing well, but it can always do better. Today’s guest, Chris Craddock, will share all about how you can grow your wholesale business by investing in strategic partnerships and building relationships with the right people in today’s episode with Brent Bowers. Chris is the host of the Uncommon Real Estate Podcast, CEO of The Redux Group, and Wholesaling Inc.’s newest coach! Chris also talks about his online course, REI Revive, which aims to help turn dead leads into explosive profit for your business. Whether you’re an investor or an agent, you’re sure to get some great insights in this high-energy episode.

How To Grow Your Business Through Strategic Partnerships With Chris Craddock

Joining Brent Bowers on the show today is Chris Craddock, a family man with many hats. He used to be a pastor, but now, he’s the host of the Uncommon Real Estate podcast, CEO of The Redux Group, and Wholesaling Inc.’s newest coach!

Episode Transcription

I have a very special guest and also our newest coach. He has an amazing course that’s called REI Revive. I’ve been excited to interview him. I’ve been waiting. We’re going to roll out the carpet. We’re going to give you all the answers to the questions. Hopefully, you’re thinking in your head, “Why does this guy do this? Why did Wholesaling Inc bring him on as the newest coach?” We’re all excited around here. Chris, how are you?

I’m excited to be here with you. I’m excited to be a part of the crew and I am so excited to hang with you.

I want to talk a little bit about you. I know you used to be a pastor. You’ve done incredible things in the real estate industry. You’re also a family man. You have several children. I got to meet you and your wife in Tampa. I’ve never seen a man be on the phone so much as Chris Craddock. This guy was serving constantly. He burnt the carpet up in the hotel lobby out there pacing on the phone. I’ve never seen more energy in someone. Tell us a little bit about yourself. Where are you at, what are you doing and why are you so excited to share what you’ve got with the world? I know you’ve been keeping it a secret.

Anytime I talk on the phone, I cannot sit still. I’ve got to be moving. If my legs aren’t moving, my brain is not moving. It’s hilarious. I’m so excited. We’re rolling out REI Revive to monetize your dead leads. The whole idea behind that was I got into real estate. I was in ministry. I made no money, about $20,000 a year. In early 2000, I went to the library before Google was the fountain of all information. I checked out every book on investing and in four months, I made twelve times what I made in a year by knocking on doors in distressed properties. I continued and I did ministry for a number of years. I went back to school, got a doctorate in leadership, opened up a brokerage retail team and grew that really fast.

The key that I found was that most of the time agents and investors live in two different worlds. What I saw was coming from the investor world to the agent world where a lot of times, it’s the other way around, is that there’s massive synergy there if you get in business with the right people. That’s what we did with REI Revive. We found a way to take all of these leads that were coming in because anybody that’s an investor and is bringing in leads, right now, maybe 1 out of 20 leads, you can do something if they’re going to sell it $0.65 on the dollar.

For us, we’re like, “What about those other nineteen leads?” What we did was figure out a way to make sure that every time the phone rings, you can make money instead of 1 out of 20 times. That’s all we did. The crazy thing is we’ve seen brand-new wholesalers that are making more money doing this than they are in their wholesaling business. We’re seeing people that have been in this and have big behemoth organizations. One of the biggest success stories we have, literally they’re getting about $62,000 a month in referral fees. $750,000 in referral fees based on these leads that have been coming in and dying in a CRM because they want close to retail for the deal.

WI 688 | Strategic Partnerships

Strategic Partnerships: Whether you’re an investor or a retail agent, you should always be asking these questions: How soon do you want to sell? Why do you want to sell? How much do you owe? How much do you want for it?

 

I have so many questions just from that little bit of time of you talking. “If you want your brain to move, your legs must move as well.” Chris Craddock, that’s a new quote. We created a quote for you. What if I’m brand new? What if I’m starting out? What if I have one lead a day coming in? How would someone like that make this work? Would REI Revive work for someone that’s a couple of weeks into this and barely getting leads coming in the door?

Here’s where we’re at. If you have any leads coming in at all, for every one appointment you set for a distressed seller, you should be able to set two appointments for a seller that wants closer to retail. That’s where it’s at. It passes the blink test. Somebody gets something in the mail or gets a ringless voicemail. Whatever your marketing strategy is, somebody calls and says, “Do you want to buy my house? I’m willing to sell.” The blink test will tell you that more people are willing to sell closer to retail than they are at $0.65 or $0.70 on the dollar.

That’s why it’s so powerful because all of the people that are willing to sell, usually somebody who’s going to make money helping them sell or buying this property from them, might as well be you. Right now, if you only have one tool in your tool belt, if you only have the sludge hammer, when it comes time to use the X-ACTO knife, you can’t make money with that. This is another tool so that whenever the phone rings, you’re able to give that right tool. Let’s be honest, the people that make the most money are the ones that solve the most problems.

Can you break that down for me and especially our readers that blink test? “I’m starting out. I want to give everyone a cash offer and they might not like that cash offer because the days on market 1.04.” My house buying company is competing with 5,000 realtors, not just the house buyers anymore. How would you say you do that blink test? How do you know if someone wants retail immediately or they want to skip the hassle and have the convenience sale of, “We take the garbage and the cat pee and everything all at the same time?” Give them a quick cash offer, give them speed and convenience or maybe they’re willing to go for that further chunk of money if they go through these steps. How do you distinguish as far as the blink test?

Whether you’re an investor or a retail agent, you should always be asking these questions. How soon do you want to sell? Why do you want to sell? How much do you owe and how much do you want for it? If somebody wants $200,000 on their house, let’s take a mid-range lower number for what the nationwide averages are. If you are a wholesaler, what are you looking to buy for? $125,000, $150,000, somewhere in that range. What about somebody that says, “I know it will sell for $200,000 but I’m willing to take $175,000.” There’s not a deal there for a wholesaler. What we can do is use the other tool, because how many more people are willing to sell a $200,000 house for $175,000 than for $125,000? A whole heck of a lot more people. Logically, we know that it’s true.

When somebody says, “I’m willing to sell for $175,000,” and we know it will sell in a snap on the market, we’re able to set an appointment with a realtor partner. That realtor partner can go out, get them what they want, maybe more, and you’re able to monetize a deal that in the past just sits and dies in your MLS or some other agent or some other person buys and sells it. That way, you literally can go from letting that deal pass you by to making money.

The people that make the most money are the ones that solve the most problems.

I love that you say, realtor partner. It creates a whole new dynamic business-type personal partnership. For those of you that are reading trying to catch those questions that Chris asked, how soon do you want to sell? Why do you want to sell? How much do you owe on that house or on this property? How much do you want to sell it for? That’s the thing. You got to be willing to ask these questions and be quiet and listen. Hush your mouth and listen because you can find out so much about a seller by letting them talk. The whole, “You got one mouth and two ears,” thing. Listen twice as much of the time.

I do a lot of sales training. One of the things that I always teach is if you ask the right questions and you listen, everybody’s going to tell you how to sell them. Think of yourself as a doctor. You walk in and the reason they’re selling is there’s some pain point. Maybe the pain point is, “I’m outgrowing the house or I want a bigger house. I got a foreclosure coming,” and it’s painful. Regardless, if you ask the right questions like a doctor diagnosing the solution, they’ll tell you how to sell them and you create a solution. You write a prescription that will give them a solution to their pain. We all know that the people that make the most money are the ones that solve other people’s pain and problems.

Most people don’t even think of doctors as salespeople. Become more like doctors. Our product is just real estate. You hit something else. A lot of people get intimidated when they’re speaking with realtors and it is two different worlds where there are the investors and there are the realtors. I know realtors that are investors, but I have a lot of people and students starting out that are afraid to speak to real estate agents and real estate brokers because they have all these formal educations and these certificates, backgrounds and things behind their name. It’s two questions. One, how the heck to talk to these realtors if you’re afraid to and two, how do you even approach them with this partnership? I know you talk about it in your course, but what’s a quick higher-level overview of how to start implementing something like this?

If you’ve never read the book, How to Win Friends & Influence People, I’ll tell you, it’s required reading for anybody in a business with people. One of the things that Dale Carnegie says is, “Speak in terms of other people’s interests.” We’ve heard the phrase and it’s a little cheesy, but I like it. Like the radio station, you always need to tune into is with them, “What’s in it for me?” Every time you see somebody else think, on their forehead with them. When you’re talking to an agent, what do they want? It’s clear. They want to do more business. What do you have? You got a massive amount of seller leads.

Across the nation right now, what is there a lack of? Lack of sellers. What do you have in your inventory, in your CRM? What are you getting from your marketing every day? People that are raising their hands saying, “I want to sell.” They should love you. If they don’t love you, they don’t see it. Honestly, if they don’t see it, it’s not the right partner. You don’t want to convince somebody. You want to throw that opportunity out there and if they don’t see that it’s a massive opportunity, then move on because that is not the right partner.

I like what you said there. Imagine there’s a sign on their forehead. These agents are extremely busy. They get so many phone calls and emails a day. If you can have in your mind, when you reach out to them, as far as an email, text messages or phone call get to the point within the first ten seconds of what you can do for them or what’s going to benefit them. At the end of the day, that’s what people care about. Like, “Why are you bothering me and what do you want?” If you get right with how I can help you, you’re going to serve that realtor.

WI 688 | Strategic Partnerships

Strategic Partnerships: If you ask the right questions and listen, everybody is going to tell you how to sell them.

 

At the end of the day, you’re serving them. We talked about someone brand new using this. What about if I spent $10,000 a month and I’ve got an amazing acquisition team, but we’ve slowed down because we can’t get to operate on the contract right now because we’re competing with the 5,000 realtors. It’s 1.04 days on market. How long would someone like that implement this and what are the benefits of getting this started right away with that?

That’s the thing that’s so exciting. It’s a very small barrier to entry. You’ve got to find the right partner and that’s the biggest piece. Many people have said, “I’ve tried it. It doesn’t work.” I promise you you’ve skipped steps in finding the right person, in how you handle it off, in your scripting, your dialogues and all of that other stuff. The second thing is this. If you’ve got a bunch of leads coming in, I can almost guarantee. I got 800 leads passed on to me that we sent out one simple text, “Are you still looking to sell if you got the right price for it?” I sent that mass text out to all these leads that have reached in and we set 29 retail appointments. Literally, that’s the whole thing. There’s so much there, but if you don’t have the right scripting, if you’re not talking to them in the right way and if you don’t understand. That’s why we created our class in two segments.

The first is talking to the investor. How do you categorize your leads? How do you find the right agent? How do you script it? How do you set the appointment? How do you do all of these things? How do you get the information you need to get? The second half is you got to train the agent. I’ve seen this over and over again. Some of the top producing agents in the world are no slouches. They go in and they open up their listing presentation and try to convert these people. Everybody’s brother’s uncle was an agent. There are more agents than there aren’t active listings right now. They don’t need an agent, but if somebody can walk in and solve their problem, you’ve got so much coming to you right there where you make money when you solve problems. The agent walks in as a problem solver, not some average agent that frankly, there’s more of than there are cups of coffee right now in Starbucks.

You talked about that listing presentation. I kid you not, it was early 2007 and I had just gotten my real estate license. This couple let me come over to give a listing presentation on the house that they wanted to sell. I did not get the listing because I gave them a listing presentation. I had this folder and I went page by page. I remember calling and it hurt me. I was like, “Why did you list with that guy?” They said, “Because I felt I was in school while you’re giving that listing presentation.” I threw that folder away the second I hung up on that phone.

That’s the whole thing. There’s a reason why somebody calls an agent. They need to sell quickly. Maybe they think the house is too messed up. They want privacy and they don’t want that many people coming through. They don’t want a real estate agent to pay the commission. If you understand that people are calling for that reason and you create your model to solve that problem, they’re going to say, “You can solve my problem. I’m not worried about it.”

There’s a book called Pitch Anything. If you can tell, I’m a massive reader, because I think leaders are readers. It’s really important. He talks about this power frame. He describes it in a couple of different ways, but what I see is once they verbalize something to come back and say, “I don’t want to pay a commission. For you, I’ll pay a commission.” They then have to admit they’re wrong. How many people like admitting they’re wrong? You have to know what their objection is and be able to speak to that before they verbalize it because once they verbalize it, they put their line in the sand and it becomes painful.

Never hire on potential. Always hire based on patterns.

You’ve mentioned so many good books. Pitch Anything and How to Win Friends & Influence People. My goal is to get you to mention four books on this episode. I got a house buying company, and I do. We’re all super busy. I have eight people on my team and I want to implement this strategy. I’ve got a lot of leads coming in and we’re hardly closing anything lately because there’s such a demand for houses right now. How long would it take me to get through your course? What is your course look like? How long would it take me to implement this? Because we’re all busy. How do we get this thing going right away?

Within three weeks and I’m not even talking full-time. I’m talking for a couple of hours. The hardest part is making sure you choose the right agent because the right agent partner, is a business partner, and who you choose to be in business with, you’re going to break their business. You’re going to send enough leads to them that it’s going to break their business as they are doing more business. The bottom line is you’ve got to get somebody who’s growth-oriented that’s going to grow with you. That is the number one piece. Within three weeks, you’re going to have this set up and literally, you can set it and forget it. As long as you have everything set correctly and you keep going, sending it to them and checking. Having a VA or even if you don’t have a VA, somebody to check to make sure that they’re closing at the right percentage. If you choose the right partner, you are going to make a fortune.

You talk about that in your course, what are the distinguishers of this partner real estate agent.

I’ll do a brief recap here. This is true for anybody that you ever hire. I heard this pastor preaching about choosing a spouse. When I heard that, I was like, “This is the best hiring advice I’ve ever heard.” He said, “Everybody’s always looking for potential. This guy’s got potential, this girl’s got potential. Think about what they could be, never hire on potential. Always hire based on patterns.” I saw that with, one of my good friends. He was bringing in one of his best friends who just got licensed as an agent. I said, “What did he do last year?” He’s like, “With Corona and everything, he decided to take the year off.” That tells a story right there. I don’t know about you, but my blood’s always burning. I’m onto that next thing. I’ve got to keep going. My mind is running and racing all the time. My legs are moving. I don’t see a world in which I take a year off. I don’t think many entrepreneurs do that. They’re hungry.

With that said, you look for four things. Happy. If they’re not happy, they’re not going to be happy with you. They’re going to get mad at commission splits and at something. Wherever they go, they’re not going to be happy people. Hungry and that’s not taking the year off. Literally, if the door is closed, these hungry people are going to go through the window. They’re going to find a way to make it work. Humble. A lot of people think that humility and arrogance are like brothers. Humility and confidence can go hand in hand. Those are brothers.

Arrogance and humility are different, but you can find a lot of arrogant people that don’t strike you as confident. They’re like, “I hear good advice, but I need to find out for myself.” How many people said I need to learn the hard way? That is arrogance. That is the opposite of humility. That’s what I love about the Wholesaling Inc culture is there are some people that are smart and they’ve forged the path and I can plug it in. Cut that learning curve and make a whole lot of money a whole lot faster by learning from smart people.

WI 688 | Strategic Partnerships

Strategic Partnerships: There are really smart people that have forged the path and you can just plug in, cut that learning curve, and make a whole lot of money faster by just learning from them.

 

Happy, hungry, humble, and the last one is smart. That’s how quick of a learner are you. Are these people that pay the stupid tax over again or do they learn their lesson from making one bad mistake? Let’s be honest, we all make mistakes. The question is, do you learn from that mistake and not make it again? Here’s another book, The Road Less Stupid. He talks about paying the stupid tax. Learn from your mistakes, be a quick learner, and don’t do the same thing again and again, because that is a stupid tax. We can make way too much money in this business. That stupid tax adds up fast.

I was hoping you would share that. I heard you touch on that before. Happy, hungry, humble and smart. What about healthy?

Emotionally, that leads to happy because there’s a lot of toxic people out there that are no good, but also if people are healthy, they’re going to run out of energy quickly. That’s another one of my books, High Performance Habits. One of the things those high performers do is they bring energy in any situation you’re in. I remember listening to Rick Warren, who’s a pastor out on the West Coast. He was talking about the importance of being healthy, because if you’re not healthy, how do you add energy into life and the world around you? It’s really important to be healthy to be able to bring energy to your world.

We can keep all of the Hs, Happy, Hungry, Humble, Healthy and High-energy. I’ve picked up some energy just by doing this episode with you. Your energy is coming across. I’m seeing you and I’m feeling pumped up. I’m ready to go on a run right after this. I’ve found that high-energy people stoke my fire. Let’s say you talk to an Eeyore and you’ve got high energy. You might come down and mirror them a little bit, but you’re going to come right back up to your natural stage and hopefully get that Eeyore a little higher energy. You’ve got so much going on. What did I miss? Is there anything else you want to share?

That’s pretty much the main thing is. I believe that everybody that I talked to is leaving so many dollars on the table. I got one other friend that I started coaching out in the Midwest. It was so funny because I spoke to him and he was like, “My wife’s an agent. I think we got this retail thing down.” When we started talking through numbers, I was like, “You are missing the boat. I’m telling you, there’s so much to be made here.” He ended up calling me two and a half months then and he was like, “Chris, we’ve already made $90,000 in 2.5 months on deals that would have just sat dead in our database.” We’re not talking $90,000 total. We’re talking $90,000 additional dollars that they would’ve never seen that would have died in their database.

He’s like, “Chris, this is life-changing money to us.” He said, “You’ve changed your life.” To me, that’s going from being in ministry to a high school sports coach for soccer and golf or whatever. I love helping people succeed. It’s one of my favorite things in the world. When I got that call and he told me how it changed his life, this is so fun to be a part of. Talk about giving you energy. You see somebody whose whole life has been changed by implementing some of these principles that I’ve learned over the years. It’s been incredible.

Learn from your mistakes, be a quick learner, and don’t do the same thing again and again.

Think about that. You’re bringing on another entrepreneur, another professional, another person that jumps out of bed in the morning you don’t have to manage them. I once heard a great quote, “If I’ve got to manage you, I don’t need you.” This person is operating on their own. They’ve got their team, own cell phone, own equipment and their real estate license. You can literally tap into another partnership that’s already rolling and it creates a beautiful thing. I’m super excited about this. Who doesn’t need this? Who is not your student?

One, I own a number of other businesses and one of them is a construction business. What I found was we used to have our own in-house guys doing our stuff. When we started hiring subs, instead of keeping it in-house, the subs were a little bit more expensive, but whenever they made a mistake, they had to fix it on their own dime. They have their own people there cracking the whip, making sure that things moved so much faster than we were ever able to get it moving. The crazy thing that we found was it cost us more upfront, but we ended up making so much more because the time went down and any mistakes were on them and not on us. I see that relationship is so powerful here.

The second thing you said is, who is not my student? Anybody that does not bring in leads. I’ve got a couple of calls, they’ve heard me on podcasts, heard me on some things asking about stuff. They’re brand new and they’re like, “Can this be my first class?” I say, “No.” What it can be is it’s the best companion class. If you are buying a wholesaling class, radio class, leisure, or any of these other classes where leads are coming in, this is the greatest companion piece. Because all of a sudden, your margins go from here to here because you can get paid so many more times on every deal that you do.

I love what you mentioned about having subs. Also, what’s your quality of life worth? You don’t want to have to constantly manage these people. It’s not your in-house crew, it’s their sub. They have their insurance, they have all these business expenses and they’re building a name for themselves as well. Chris, this has been an amazing episode. Thank you so much for sharing REI Revive. I’m super excited to see you launch this. Chris Craddock, how do we find out more about you and your program? Give it to us.

WholesalingInc.com/revive and you can also find me on Instagram @Craddrock. I do try to reply to any DM on Instagram. Hit me up there and I’m happy to reply. I’m looking forward to helping the community and being a part of everything here. If I can do anything for you, please reach out. I’m happy to be a part and help in any way I can.

Chris Craddock, the newest Wholesaling Inc Coach. It’s been my pleasure. Thanks for being on with me.

Thanks for bringing me on. It’s so fun.

Catch you later.

Important Links:

About Chris Craddock

A nationally certified Life Coach with a Doctorate in Leadership, Chris Craddock is the driving force behind REI Revive, the host of the Uncommon Real Estate Podcast, a Realtor, and an entrepreneur who runs multiple successful businesses in the Washington DC Metro area (and Richmond, VA). Chris is a consistent NVAR multi-million dollar producer who produces over $4 Million in commission each year.

In 2020, his team, The Redux Group, was #20 in all of Keller Williams and sold just under $160 million in volume. Chris has been married for 20 years and is the proud father to six beautiful children.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Wholesaling