Posted on: May 28, 2021
WI 698 | Monetize Dead Leads

 

Do you think you’ve covered every trick in the real estate wholesaling book? Not this one. This time, we’re looking at a new business method that can help you monetize dead leads and stop throwing money away in pointless marketing stunts.

Today’s guest on the show is Chris Craddock, one of the newest Wholesaling Inc coaches and creator of the REI Revive system. Chris talks about his incredible method for monetizing dead leads in your database, turning them into massive profits. He also shares tips on working with real estate agent “partners” and why finding the right partner agent can lead to tremendous profits in your real estate wholesaling business.

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

A New Business Method Every Wholesaler Should Have In Their Real Estate Business With Chris Craddock

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

Episode Transcription

What do you do when you have all those marketing dollars being flushed down the toilet? You’re spending money on marketing and on skip tracing. You’re spending the time doing the cold calls. With all that effort, all that time, elbow grease but nothing’s happening and your leads come to an end. What do you do with those leads? Do you throw them into the trashcan and then forget about them? I’m pretty excited because I’m sitting down with my good friend, Chris Craddock. He’s one of the latest Wholesaling Inc. coaches. He runs the REI Revive coaching program. In his expertise, he has this amazing method of monetizing on the majority of the leads that will normally get thrown away and go to the band. Thanks for being on. I appreciate you spending the time here and then sharing those nuggets with us.

I’m so happy to be here.

You have this process. You’ve been fine-tuning this for years. You’re talking 3, 4 years of fine-tuning this particular process. One of the biggest problems, one of the biggest obstacles that hit anybody who’s doing wholesaling is you’re spending all kinds of dollars. Your marketing efforts are being put into a particular campaign. You get a call. You don’t convert that lead so it doesn’t turn to be a seller, which you’re talking about 95% of anything that comes in. Maybe 97% ends up in a dusty Excel file somewhere on the bottom of your computer but you have something else. What you’re doing is completely different. You’re coming in. You’re reviving those leads and monetizing on those leads, turning them into dollars so you can reapply them into new marketing campaigns and new efforts for some regeneration. Tell me about that. Jump right into that.

If your leads are going to sell somewhere else, why shouldn’t you be the one making money for it?

Think about it. Right off the bat, you know that when 20 people call in, maybe 1 or 2 of those people are going to be okay selling their house at $0.65 on the dollar. Everyone else that calls in wants a higher number. Maybe not full retail but closer to that retail number. What do you do with those? Most people let them stay in the CRM. Maybe put them on a drip. Maybe follow-up periodically and go after them periodically. The reality is most of them go to another investor or they go to an agent and they sell. Here’s the question. If they’re going to go and sell somewhere else, why shouldn’t you be the one making money for it? That’s what I think. We built this process where if somebody calls in and says, “I want to sell,” but it doesn’t fit your buy box, it doesn’t fit that number that you want to buy for, how do you set it up where you monetize it? It’s all about the whole course teaches people how to pick a real estate agent that becomes a business partner of yours. He doesn’t own part of your company but I’ll tell you because of the amount of money you can make in this business with this partner, it is a business partner. You can make as much as you’re making in your investment business, you can pay for every cent of your marketing by doing this and at a high level. That’s why it’s important to pick the right person, go all in and do it well.

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

You got to pick the right agent. The agent you choose will dictate how well this goes. Here’s the deal. If you were doing any amount of business at all, bringing in any amount of leads, you will likely break that agent’s business because they’re going to have so many more appointments to go on and to close up. They’re going to have to build with you. That’s why it’s so important to find somebody that fits those criteria. This is what we’re looking for. You ask how do you find them? First, you got to know who you’re looking for. You create your missing persons report. Thinking about it, you’re looking at the side of a milk bottle. They don’t have bottles anymore but milk cartons. They’re going to have missing people on milk cartons anymore. It says, “This is what they look like. This is who they are. This is what you’ll likely find them looking like.” When you create that, they know what it looks like when you find it. Here’s what it is. It’s somebody that’s happy, hungry, humble and smart. Steal that and use that for every hire that you have in your business because this is what you have to find for anybody that you want to be in business with if you’re going to up your game. One of my favorite books is Topgrading. You’re bringing in people in your organization. You make your organization better. It’s happy, hungry, humble and smart,

It’s powerful because if they are that. It’s going to bring the whole organization up. Not just may be your finances but everybody who works with them. If they’re not happy, if you hear them complaining about their brokerage, about people they’re in business with, all those complaints, very soon it will be you they’re complaining about. You want happy people, people that are genuinely happy. Hungry, you see so many people where if somebody says no, they say, “They said no. I guess that’s it.” If you say no, you got to be willing to find a path to yes. That book Getting to Yes. How do you get to yes? They may have said no so be creative to figure out a way to get them to yes. A hungry person is not going to take no for an answer. They’re going to figure out a path to yes. Humble is a big piece. I talk about this all the time. A lot of people think that confidence and humility can’t go hand-in-hand. The reality is confidence and humility love each other. They’re amazing. Arrogance and humility don’t go hand-in-hand. Arrogance is, “I think I’ve got it all together.” You’ll find people that are not confident publicly, more quiet, subdued and not out there competent.

WI 698 | Monetize Dead Leads

Monetize Dead Leads: When choosing the right agent to partner with, you want someone who is happy, hungry, humble, and smart.

 

It’s because somebody is an introvert doesn’t mean they’re not massively arrogant, believe that they can do everything themselves and they don’t need to learn from others. That’s why I love this tribe, this group of people. Everybody here is open. They want to learn. Everybody around you, there’s something that you can glean and take away from who they are to make you better. Humble and smart, one of my favorite books which I talk about all the time is The Road Less Stupid. It’s so good. Keep coming in. It talks about paying the stupid tax. Smart people, people that get high SAT scores, they’re also people that learn fast. They make a mistake and then the next time they make that mistake or the next time it comes up, they’ve learned from it, they fix it and they don’t make that mistake again. They’re not going to pay the stupid tax. In this business, if you make the same mistake more than once, it costs a lot of money. What is your average wholesale fee?

The last time I checked, we were around $23,000, $24,000.

If you make the same mistake two times, it costs you $24,000. For a real estate agent, the average commission is around $10,000. You’re going to keep about 35% of that. That’s $3,500 that it costs you if that agent pays a stupid tax. It costs him or her $6,500 and it costs you $3,500. That is way too expensive to be paying that stupid tax over and over again because they refuse to learn.

There’s no reason why your marketing dollar should be going to the dead band. There are ways to monetize it. Let me ask you this. Why join your program? This is more of a discovery question here. Why would somebody want to join your program if they already have a connection with a realtor?

Here’s the deal. Many people know real estate agents. What I would say is this. The amount of money that people are leaving on the table, I’ve shared this number of times. I have one group that we work with that we’ve sent over $60,000 every single month too. Every month, three-quarters of $1 million that normally would have died in their database. Getting to scale fast, learning this fast, trying to figure it out on your own, that is paying a stupid tax. We’ve cracked the code. In this business, speed makes you so much money. Think about it. You’re trying to figure it out. Maybe you miss out on 5, 10, 20, 30, 50 deals. What does that cost you? It was $3,500 a pop. If you missed out on ten deals, that’s $35,000 while you’re trying to figure it out. That’s the whole point.

You can make a fortune in solving people’s problems.

The second thing is this. I had a coaching client of mine that came in. His wife was an agent. They were like, “We got this.” I broke down the numbers with them. I was like, “Why don’t we talk through the numbers here?” We went through the numbers and I was like, “You are leaving so much money on the table.” He’s like, “I think we got it.” We started looking at it. He called me 2.5 months after he started the program. He and his wife were on the phone and he said, “Chris, in the last 2.5 months because of this program alone, we brought in an extra $90,000. This has been life-changing for us. This will change our life.” I’m telling you that I’ve talked to so many people across the country and nobody’s doing it at a massively high level. That’s why it’s important because people are looking for that instant offer but the reality is the instant offer is at $0.65 on the dollar. Most of them love that. If you could solve that problem together, you can make a fortune in solving people’s problems.

You’re talking $90,000. That’s twice the average salary in most towns and cities. It’s insane. I emphasize the marketing dollar, the marketing spend because it’s one of the biggest problems. You are going to have a ton of overhead in salaries as you start growing especially like a solo operation. When you’re running by yourself and you’re wearing all the hats in your business, anything that you put out is going to hurt a little bit. It’s $2,000 in marketing here. It’s $2,000 for this campaign here. Next thing you know, you’re $4,000, $5,000 into it. You start to feel that. At the very least, you get concerned about, “How am I going to market? What’s happening? Why is all this stuff that I’m doing ending up dead again at the bottom of the spreadsheet?” In order to create these relationships and to use the processes, you need to be licensed. How does that work?

You’re not allowed to give referral fees to unlicensed people. California has an interesting rule. There are a couple of other states that do as well. What I teach is this. There are three things. One, success leaves clues. Almost every large wholesaler and fix and flipper in the country that I know of either are licensed themself or one of their business partners is licensed. I heard that you own a brokerage yourself. I was talking to Brent Daniels. I had no idea that Brent was licensed. It’s funny because you see that success leaves clues. You got to ask yourself, “Why are all these people that are very smart, who are not doing deals all the time, getting licensed?” If you see they are, you probably should ask that question. Also, here’s the other thing. In your market, in your neighborhood, when you become known as the real estate guy or the real estate girl, everybody’s going to come to you with questions when they’re buying and selling. I’ll tell you. There’s so much money to be made in referral fees like kicking out to other agents as well. You should stay in your lane. That’s the one.

WI 698 | Monetize Dead Leads

Monetize Dead Leads: When you’re wearing all the hats in your business, anything that you put out is going to hurt a little bit.

 

Number two, you can get somebody licensed in your organization. Run their license through the LLC and then they can receive referral fees there. Number three is easy. Twenty-five percent of all agents in every market does zero transactions. You can bring them in and say, “I’m going to pay you to come in and be our in-house person.” You’re not going to be sending them on appointments because if they’re doing zero transactions, they got some patterns there. They can manage your referral income, manage that and run their license through your organization so that they become your in-house agent to work curls in your leads. Do that in each locality. That’s how people should handle it.

It’s also one of the big questions. Why would I work with an agent? How do I have a conversation with an agent? Where do I find an agent? When people think of real estate agents, they automatically grant authority without bias. You’re like, “This guy has a license. They must know what they’re doing.” The reality of it is it’s completely different. 80% of the business is being performed by about 20% of the agents in the average market. The rest of them are stationary licenses. They’re active in a brokerage somewhere somehow but they’re not engaging. It’s a side gig. It’s something that they have on as a fallback, not as a profession that they can tap into. It’s being able to find the right partnership, the right person that you can bring into your power team like that such as an agent who’s happy, hungry, humble and smart. It’s going to be a real game-changer whether it’s inside your business somehow some way or whether you’re reaching out on a referral basis and then creating the two-way street of business and opportunities. If somebody wants to get ahold of you and find out more, what’s the next step?

It’s WholesalingInc.com/revive. That’s the easiest way to jump in and see whether we can have a call and this is a good fit for you and your business. Do you believe it’s the most important companion class you could have to any class, anything you’re doing that’s teaching you how to bring leads in because it allows you to monetize them in a number of different ways? The second thing that you can do is I’m on Instagram. It’s @Craddrock. It’s an old high school nickname. Go in there. If you DM me, I’m trying to respond to every DM out there. Feel free to DM me. I will try to respond to anybody that wants to DM me and talk to me on that.

Thank you so much for your time. This is coming in and plugging a very deep hole that happens in most businesses. When the budget for marketing is running out, what do you do with all those leads? How do you handle them the right way? Most people think referrals. You get somebody certified or something. They start doing sketchy things that are outside of the boundaries. It’s easy to get in trouble. That’s the reality of it. If you don’t handle referral fees, that type of strategy or that type of business the right way, you can get in trouble real quick. Why not monetize? Why not take the right approach, something that’s been financing over the last years? Take that, build it in and corporate it as part of your wholesale business. Thank you so much, Chris. It’s been a pleasure having you. I look forward to talking to you soon. For your tribe, there you have it. Here’s another way to monetize your leads and create that capital that you need in your business as far as the cashflow. Not have stuff staying on the bottom of your spreadsheet. If you’re interested in coaching, if you’re interested in finding more about the tribe and the show as a whole, go to the show website. Set up a call with one of our representatives. If it all makes sense, we look forward to working with you. Until then, stay focused. You got this.

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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.

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