Investor Cheat Code Podcast with Mike Simmons

In this episode, I am joined by Chris Arnold. Chris is the Co-Founder of COSA Investments, one of the largest wholesale companies in the DFW Metroplex. COSA is operated and managed by a US virtual team which has allowed Chris to run his company while living in Tulum, Mexico. He is also the founder of Arnold Elite Realty which is a cutting-edge boutique brokerage consisting of a team of seasoned agents. 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!

Chris contends that having a real estate business can afford people freedom of time, freedom of resources, and freedom of location. Even though he started traditionally by representing buyers, Chris soon branched out and has become very successful in one of the most cutthroat markets in the country.

As we are currently in a sellers’ market, the real estate business is very competitive, but people who are building their businesses now are in great shape and poised to really thrive. This is why I wanted to talk to Chris about his business processes and how he promotes and grows his business.

I asked Chris to explain to me his business flow from the point of when they first get a lead. He used the analogy of the bus. You have all the seats on the bus that need to be filled (referring to positions that need to be filled in your company), but as the boss you have your butt in each one. As a leader, Chris said quickly find that you need to “fire” yourself as quickly as possible from each seat by finding a more qualified person for that particular spot. This can be humbling, but is necessary for him to be able to operate his business at the visionary level.

Chris stressed that they have had to develop really good systems for every aspect of their company’s process, and he pointed out that EVERYTHING is a system, even a routine as simple as getting up in the morning. Some processes they have implanted which have proven to be very successful are answering calls live and not allowing them to go to voicemail, having their prospecting assistants pre-qualify leads, and upon discovering a hot lead, the call is transferred automatically to the acquisition manager. They do this using Grasshoper software and you can find the website link at the conclusion of these show notes. Chris said they do not contract any properties without first doing an inspection, so the acquisition manager will recommend which ones need to be scheduled. They employee their own inspector, so the whole process can be complete within 48 hours. Whenever possible, the acquisition manager will complete the deal over the phone, again to decrease time delays and increase scalability.

When I expressed surprise at their company’s ability to close deals over the phone, Chris said it all starts with belief. People in this business need to overcome the myth that you have to meet in person and begin to develop their skills for connecting with people over the phone. Of course, he says it is not black and white and that older people may need a handshake and smile, but even if 50% of their business is done over the phone, that markedly increases their scalability.

They employ two full-time people responsible for closings and pushing deals through the title companies, and a director of dispositions who is solely responsible for re-selling properties.

All of this allows them to boast of a contract to close period of 23-25 days, when most companies are more in the range of 50-75 days.

I then asked Chris how they are finding your leads and he talked about the four marketing pillars they concentrate on: online marketing, direct mail, co-wholesaling, and their most effective strategy, radio ads. Chris pointed out some interesting facts about radio ads including how there is virtually no competition in this medium, it is cutting-edge for finding property, it is a trusted vehicle for advertising, and fits well with their target audience of consumers 50+ years old. They have found that when you advertise on radio you have instant credibility and achieve something akin to celebrity status. After quite a lot of split-testing, Chris has found that they get far more leads with the ads he has recorded himself versus using someone well-known, with a recognizable voice.

I asked Chris to tell me about some of the lessons they have learned about radio advertising in the nine years they have been using it. He said the biggest thing is that people automatically assume they cannot afford it, but like with real estate, they do not pay retail for airtime. Chris says the key is to do research and find the pertinent reports on a station in order to negotiate effectively. Like anything else, being an intelligent buyer is incredibly important.

We then discussed other ways of finding deals, including co-wholesaling. We compared our experiences and stressed that it is about control. I talked how in my company we require the other person needs to stop marketing the property and cannot accept other offers after our company takes control of the contract. This is so important in maintaining good relationships with other people. Chris talked about how they are always proactively building relationships with other wholesalers in what he termed the “learn/earn model.” Other people will bring him deals and he will educate them along the way, because they stress the importance of caring about growth of others and how it adds a lot of value to their own business through networking.

Chris has found that the return of investment for radio ads is now similar to what it used to be for direct mail. There are a couple of advantages to utilizing radio rather than other methods, such as it is not list-dependent, is low-maintenance, and it hits a wider audience. I asked him how often he changes is radio ads and surprisingly he said they have basically run three ads in nine years. Again, split testing shows the repetition of a precise message becomes hypnotic and is very effective.

Chris spoke about how people who are new to radio can get intimated because of all variability, but like he stressed earlier in the show, it works to your advantage when you can hire someone experienced in this arena. His company has branched out into assisting others in exploring and getting started with this type of marketing. Chris said those who are interested in are welcome to visit his website at wholesalinginc.com/reiradio and book a consulting call. He finished up by stressing how important it is to figure out what works in this competitive market and to differentiate yourself, doing the little things that matter so much to achieve success.

Notable Quotes:

“The driver [of working in this business] is always freedom and what we can do with that freedom.”

- Chris Arnold

“Living the Caribbean life was something I always dreamed of being able to do.”

- Chris Arnold

“You can have the business that you want, where you want, in this industry.

- Mike Simmons

“The flip side of that pain [being in a competitive market] is you are going to see some of the greatest innovation come out of that market. This makes you really good at what you want to do.”

- Chris Arnold

“I’d rather take a fast nickel than a slow dime [wholesaling vs. flipping].”

- Chris Arnold

“I like the velocity of wholesaling.”

- Mike Simmons

“What we sell and beat out others on is professionalism.”

- Chris Arnold

“Just do the things you can control.”

- Mike Simmons

“Radio: marketing source that everyone knows about and no one is using.”

- Chris Arnold

“We buy our radio like we buy our real estate: at a discounted, wholesale prices.”

- Chris Arnold

“Anyone who has experienced high-level success, they stood on the shoulders of someone else and learned from them, whether it is an athlete or an entrepreneur.”

- Mike Simmons

 Links and Resources:

Rich Dad Poor Dad

https://grasshopper.com

https://www.wholesalinginc.com/reiradio/

In this episode, I’m joined by Andy McFarland. Andy is not only a successful investor and mentor, but also a close personal friend. He and I have traveled together as members of the 7 Figure Flipping Mastermind, and his stellar character and willingness to encourage others to succeed have aided him in his journey to becoming a self-made expert in the world of real estate.

I first asked Andy to talk about how the world of investing has changed in the last 5 years, the strategies he’s implemented, and the lessons he’s learned. First, and most importantly, Andy emphasizes the necessity of authenticity within the business. This applies not only to your customers, but your employees, or as Andy calls them, his team. We discuss the (understandable) tendencies of newcomers who are looking for that hidden gem or technique that is sure to help them rise to the top, forgetting that being genuine is what really ensures success. 

Andy talks about the dangers of cramming sales techniques down the throats of your customers and how that always ends in disaster. 

Of course, profits matter. Sales matter. But people matter much, much more.

In this business, it’s not uncommon to have high turnover rates. Andy and I agreed that our teams look much different than they did in the beginning, and more often than not, for good reason. People tend to move on to new avenues and adventures, and what was right for them at a previous time may not be in the future. Andy’s business and team have both changed in big ways since their origin, and he’s grateful for the lives he’s been able to touch every step of the way. 

Andy also advises leaders to never forget to stay current. He told the story of his struggle to push through a period of frustration with his team, who wasn’t implementing certain strategies he was advising. They were never unreceptive, but he noticed that they weren’t attempting the encouraged methods. In hopes of understanding their resistance, he went back into the field himself and discovered quickly that the game had changed. His employees had adapted to the new industry, and he had failed to keep up. When he began reconnecting with sellers, he began to feel the benefits of this human element for the first time in a long time.

We then dove deep into the blessings of what we do, and why we do it. As a man of faith, Andy believes that God has used his position in this business to meet true, human needs. He recalled a incident of a seller who was in deep, financial decline. Some investors, Andy says, may have been tempted to walk away from the deal, fearful that the investment wouldn’t be worth their while. Others may have even taken advantage of this man’s desperation. However, Andy chose to show grace and compassion. He listened to the man, and worked alongside him to make a plan that would help him to pick himself up. Though the money made from this investment wouldn’t be outrageous, humanity took precedence and Andy was able to bless this family in a way that only he could, simply because he took the time to listen.

We ended the discussion on the issue of comparison. Many step into this business with a hope of having more time for what matters to them: time with loved ones, things you enjoy, etc. However, they fall into the never-ending circle of wanting more simply for the sake of having more. When people have a 1 million dollar company, they then want a 10 million dollar company, and then a 100 million dollar company, and so on. Making more money almost always leads to spending more money if you’re not wise, and won’t bring satisfaction like knowing that you live a life loving others well and impacting them positively.

Andy is the guy in our 7 Figure Flipping Mastermind group that we call “the rabbit” because people are always chasing after him for the big secret of success, or simply because his realness is so attractive. Give this episode a listen to hear his best-advised tactic, which really isn’t a tactic at all. 

For more information on our 7 Figure Flipping Mastermind group, feel free to contact me and I’ll make sure to get you more information.

Notable Quotes:

“What have I learned over the years? The people matter. The people matter in all aspects of the business. Your business is your people.”

-Andy McFarland

“What I want most is have an impact on people’s lives. Not a thousand people’s lives. I want to have an impact on one person’s life, one at a time. And if that happens a thousand times great.

-Andy McFarland

“There are few people I know in the industry who truly do right by people intentionally and for no gain… or leverage. I think people need to hear that.”

-Mike Simmons

“I’m not at all saying don’t try to make money and grow your business, because you should, because you can do more good that way. But I think building a company that provides income for those who work for you feels better than closing a deal.”

 –Mike Simmons

“Find good people, treat them well.” 

–Mike Simmons

“We all feel better when we serve people.” 

–Andy McFarland

“The problem is, in the beginning, people are so freaked out about getting a deal that they go in there with that energy and they struggle.”

-Michael Simmons

“Money amplifies what you already are. It won’t change your life. It will just make you more of what you already are.”

-Andy McFarland

“The reasons why people are unhappy it all boils down to comparison.”

-Michael Simmons

Links and Resources:

https://7figureflipping.com/

https://fliphackinglive.com/

Elite Homebuyers

Rich Dad Poor Dad

The Total Money Makeover

Do you need help investing in real estate? Do you understand how to grow, scale, and profitably build your company into the business that you want it to be? You’re in luck! I’ve been working for the past several years with some of the most successful real estate investors in the industry and from around the country. Names such as Andy McFarland and Bill Allen, along with myself, have built a program called “Seven Figure Flipping.” This exclusive mastermind and coaching program is designed to get you and your business to the next level. Interested in finding out more? Email me at [email protected] with the subject line “help,” and we’ll get on a call together to see if this program is a good fit for you and your business.

In this episode, I interview Susan Lassiter-Lyons. Susan is an investor, entrepreneur, author, and investment coach to assist people in creating wealth. She’s the CEO of Lassiter Publishing Group, a financial publisher specializing in income and growth opportunities.

If you’re looking to succeed, read Susan’s book Getting the Money. She reveals her step-by-step approach to getting money. This is not for people who can quickly get money from lenders, this is for the start-up entrepreneur who is interested in building their capital and wealth, but they don’t have the start-up money. Susan is very candid in her methods and leaves nothing to spare in her book. She explains, in detail, how to grow from a one-person team to a larger company and how to find and secure the money for your company to thrive.

Susan first dives into money lending and how you should view money lenders. Don’t look at money lenders as an all-powerful entity. Look at them as personal investors - they are sharing with you their money because they can’t do the work you are doing. Check your mindset when you are asking for money - how are you viewing yourself concerning the person who is investing in you and your company?

Next, she moves into identity and how many flippers don’t want others to know they are flipping. We call this the “secret identity.” Listen in on how my wife and I were caught flipping houses at Sunday dinner with my family.

Listen in to find out how being passionate and excited about your company will create energy around you and make others want to invest in your company. Learn about how you can leverage yourself and your level of expertise into larger syndications. Find out about the concept of being “big time” on how to be able to “shoot higher” with your business to be able to scale and grow.

In this episode I discussed the 10 things every successful real estate investor knows. These are things that you should know as well. Please check this episode out because these are all things that I have learned over the last 10 years and have spent the last 4 or 5 years teaching other people to help them reach their goals!

In this episode I interview someone who I respect quite a bit, Nate Johnson. Nate is an incredible businessman and the COO of Blackjack Real Estate, the company owned by my good friend Bill Allen. Nate runs the operation of that company and is a phenomenal operational mind and is responsible for helping Bill grow that company from $1,000,000 to $3,000,000 in just 3 short years. Nate has tons of experience and insight into what it takes to affectively and successfully grow a real estate investing company.This is not an interview that you can afford to miss!

In this episode I talked to Jesse Trujillo. Jesse is a real estate investor in San Diego. I met him in October of this year at Flip Hacking Live which was held in San Diego. Jesse is a very smart investor and a great guy, but what is really interesting about his business is that he will do 80 deals this year (flips) Without spending a dime on marketing!! You have to listen to this interview, especially if you're struggling to find deals and worried that you don't have enough of a marketing budget to grow your company. Jesse blows all of those myths out of the water!

In this episode is all about building the business that you want. Not the business that other people have told you you should want. Every decision we make in our companies have in effect on us, our free time, and ultimately the business that we end up with. I want to make sure that everyone listening to this podcast is clear on what they want and what that means when it comes to building their business

This episode was all about my experience during the Flip Hacking Live week in San Diego! This was an incredible event that featured dozens of highly successful real estate investors, and also some incredible national speakers that blew everyone's mind! There is no week of the year that makes me more excited about the next 12 months then Flip Hacking Live. I'm going to breakdown some of the highlights and tease some of the upcoming features that I will be having on this podcast!

Today I'm talking to some incredibly intelligent real estate investors. Thery are primarily wholesalers, and have an incredible system for generating leads. Not only are they generating high margin leads, But they are closing most of their deals over the phone! These guys take analytics and business metrics to a new level. They have managed to transform their business into a highly profitable machine that allows them to not only kill it in their market, but in remote markets as well!

In today's interview I talked to Tyler Jensen. Tyler is a friend of mine and an incredible real estate investor. He is a pure house flipper, and has transformed his flipping business and created an ultra efficient flipping machine that is now been able to do a full rehab project in 7 days! That is a unbelievable accomplishment and I'm excited for him to breakdown how he gets it done. You don't want to miss this!