How Jared Vidales Earnes $250,000 Per Month on $25,000 in Marketing Spend

Steve Trang: Hey, everybody. Thank you for joining us for today's episode of Real Estate Disruptors. Today, we have Jared Vidalas with Highest Cash Offer, and he's gonna be sharing how he is earning 250,000 a month on just 25,000 in spend. If this is your first time tuning in, I'm Steve Trang, broker owner of Studying Homes Realty, founder of the OfferFast Homes app, the only app you need for wholesaling, and I'm on a mission to create 100 millionaires. So please message me, reach out to me if you need any help at all with your business.

If you're excited for today's show, please give me a wave. Give me a thumbs up. And as a friendly reminder, I don't charge a dime for this show. I don't make any money doing this. So here's all I ask.

If you get any value out of this show, please tell a friend. You can share this episode right now, tag a friend below, or tell your best take away from the show later on. That way, we can all grow together. Don't forget, this is a live show. So please post your questions and Jared will be very happy to answer them.

Jared Vidales: You ready?

Steve: I'm ready. Alright. So what got you into real estate?

Jared: Okay. So, I'm going to give you the short compressed version. Right? Just like, just like everybody, you know, just for I worked corporate forever. I'm sorry.

Not forever. For a couple years. Yeah. And just like everybody else, I wanted something greater because I just had a different, I just have a different vision for myself. Uh-huh.

But long story short, you know, I bought two houses, West Phoenix, had no clue what I was doing, got, got jacked up in every direction you could. Thank God the, the real estate market was appreciating so fast I did not lose. But Yeah. What got me into my particular niche of real estate was the wholesaler who sold me, those two properties ripped, you know, $15 on both and a matter of ten days and I ripped, you know, $20, $25 a pop over a period of eight months stress, dealing with contractors, and doing that whole thing. So, I thought

Steve: So, on the flipping side?

Jared: On the flipping side only. I started flipping houses. Turned out, I was not I I hated construction. Wasn't my thing. Yeah.

You know, you're adult you're, you know,

Steve: you're babysitting just adult children at the end of the day. Yeah.

Jared: So, sitting just adult children at the end of the day. So, you know, I thought, you know, if this guy could do it, his sales cycle is super, super short. Mind you, I didn't come from sales, marketing, anything at all. I was actually, got my degree in engineering.

Steve: Yes, I have that problem.

Jared: And, I'm like, you know, if this guy could do it, I could do it. So, partnered up with Danielle, who I think was on a show a couple, couple months ago. Jesse, Hillary, all awesome people to put together this direct to homeowner acquisition strategy, to bring the the concept was to bring flips into the company so we could flip them at extremely high margins.

Steve: Okay. So you want to be direct to seller so you can flip for just pad the margins.

Jared: Exactly. Okay. You know, my my, the sexy part in my mind was ripping those $100,000 flip checks. Right? And the only way to do that was going off market.

The market was compressing and, the opportunity wasn't there like it used to be. So, you know And what year was this approximately? 2015.

Steve: Okay.

Jared: But, mind you, I didn't I hadn't experienced this this sexy time, you know, in the Arizona market. So Right. Got in late twenty fifteen and, all direct to homeowner stuff. Started with wholesaling nationwide, did about a 145 deals in 2015. Every metro in The US, it was it was a shit show.

Yeah. With, cell phone, DocuSign, and the computer, never met the buyers, never met the sellers. It was a 100% virtual. Wow. Decided And I

Steve: think to put in the context there, right, we were talking 250,000 a month. You started in 2015. That's only three years ago.

Jared: Exactly. It's

Steve: not that long.

Jared: Not that long.

Steve: Right? So I mean, not trying to put this down in any way, but it only takes three years to get here with hard work.

Jared: Exactly.

Steve: So anyway, go ahead.

Jared: Yeah. A little a little bit obsessive as as people know. Like Yeah. My my brain is always going in in different directions, but try to hone it in and stay focused.

Steve: Right.

Jared: So, did that in 2015 and slowly realized, like, you can't build a consistent model or operations on the back end for that matter with every market in The US. So, you know, we shrunk down to 15 markets, you know, the top metros and some secondary markets in The US, and then shrunk down to what we are today, which is just focus on, Phoenix, Vegas, Houston, and we'll do a little bit of stuff in California. Yeah. But, yeah, that's how I got started.

Steve: Awesome. So, going from just so you just straight went from flipping to wholesaling. Tell me about your very first wholesale deal.

Jared: Very first wholesale deal. Sale deal. Okay. So, it's actually a pretty cool one. So, it's actually when Dan, Danielle and Jesse and myself were partners.

Jesse, you guys know, found a property on hubzu.com. On Lafayette Boulevard in Arcadia proper. So we picked this thing up from US Bank for 8, $8.20 or $8.60. Took it down all in. We're in at like eight, I don't know, $8.80 roughly.

Steve: Enter 80,000.

Jared: 880,000. First deal. So, I had, like

Steve: Go big or go home.

Jared: Go big or go home. Right? So, as a group, we took this thing down. I had no clue what I was doing. You know, Danny saw this thing and was like, this is a great deal.

Let's buy it. I'm like, sure. Let's do it.

Steve: Right.

Jared: Took the debt took it down, leveraged it, and I remember we held it for about two months until we found a buyer for it. And, every month, I had, like, I had, like, $30 in my bank account. And it's like, okay, Jared. Your turn your turn for the $10 hard money payment and I'm like, Oh I'm like this is real estate. Yeah.

So like we eventually are I found a buyer Remax commercial broker found a buyer actually and we've wholesale it for 1.175

Steve: So, it worked out.

Jared: So, it worked out. So, we made about $266, on our first wholesale deal.

Steve: Three ways?

Jared: Five ways, actually.

Steve: Five ways.

Jared: Yeah.

Steve: Okay. So, that's pretty good. It wasn't too painful.

Jared: Wasn't too painful. Except for

Steve: the $10,000 payments.

Jared: Yes. That was that was pretty painful. Closed on New Year's Eve, so we all got to cash our checks New Year's Eve, which is

Steve: Okay. So, then, what were some of your early struggles?

Jared: Some of my early struggles was, you know, I I don't think I realized that what we do today in, direct to homeowner acquisitions Mhmm. It's it's not it's not really real estate. Really what it is, it's sales and marketing.

Steve: Yeah.

Jared: And back then, I didn't realize that. Mhmm. So I was just really focusing on the assets, not really focusing on the psychology of the seller, understanding what their issues are, and trying to deliver as much value as I could to make it compelling enough for them to work with us

Steve: Yeah.

Jared: As as a buyer. So, and at the end of the day, the, you know, this is all a contact sport. The more touches you make, the greater chance of your conversion. So we were we weren't bringing enough leads in back then where we could really throw some serious numbers on the board. Mhmm.

It was maybe we went to, like, you know, this is back in, you know, when we first first started, like, before, like, all the nationwide stuff.

Steve: We were

Jared: doing bandit signs, we're handwriting letters, and we're getting maybe, you know, five phone calls a week and, like, it's not working. You know, we we we didn't have the marketing down and we didn't have the sales process down. So that's what really limited, you know, from us really gaining traction.

Steve: Well, I think something hit on there too. Right? It's a sales marketing. I think that's true with every business. Every business is a sales and marketing business.

It's just whatever that other part you do is that second half.

Jared: Exactly. The product or service is, like, is secondary.

Steve: Yeah. Okay. So, you know, we were talking about beforehand, before we started here about the velocity and why you like to wholesale versus flip. Can you talk about that?

Jared: What makes wholesale so attractive to me, and I'm sure many of your other listeners, are, you know, the for us, our sales cycle from when a lead comes in to when we, get it under contract is on average about ten days. Awesome.

Steve: Really good.

Jared: Really good. And then on the back end on the transaction side, it's about twenty two days. So, if you look at the entire sales sales cycle, say it's, you know, thirty two days from when a lead comes in to when you have cash in a bank, thirty I mean, granted you're leaving I mean, in this market, you're not leaving too much on the table by by monetizing the back end on the flip. But, it's just so much quicker. Right.

Steve: You

Jared: have so much you could bring working capital into your business a lot quicker and, it's just a lot less, headache on on the fix and flip side, which we do. We do a lot of it. But it's just a lot faster.

Steve: Right. And I think the the piece that, you know, it's like, man, we can squeeze out another 30% more. But the resources we have to spend to squeeze out that 30%, then we just spent it back on the sales and marketing side that you guys are good at.

Jared: Exactly.

Steve: So, what would you do differently if you were starting over today?

Jared: If If I were to start over today, really, really probably spend a little bit more in marketing. Mhmm. Bring that lead flow in. Get it's like going to the gym. Right?

You're gonna talk to as many sellers as you can. Get reps in. You're gonna get stronger. You're gonna get more experienced, and you're gonna be able to convert a lot quicker, a lot better Right. With that experience.

So bringing the leads in and getting the sales, the seller psychology and the sales process down. Yeah. So, when you do spend, let's say, when you're starting out $510 on marketing, you have the, the capacity to convert and you're not wasting that money.

Steve: Right. So, get more nos faster.

Jared: Get more nos faster. Get your reps in. Get rejected a lot a lot quicker. Yeah. Like, the thing we do for every new sales guy who comes into our company Mhmm.

First thing we do regardless of experience, we throw them on a dialer for two weeks straight. The most unmotivated, list you could think of

Steve: Before training? Before throw them on.

Jared: Well, there's there's, like, two day there's, like, two days of scripting. Like, this is what this is the, this is the scripting process. Like, you need to follow. Go follow it, but you're gonna get your ass kicked in the in the bullpen. But the point is get their ass kicked, sooner, have them get their reps in, have them fail a lot quicker.

Mhmm. So you're practicing overcoming those objections, like, a lot easier on the crappy non distressed list. So when it's game time, when that $100 PPC lead comes in, it's not you're not practicing on that lead.

Steve: Right. And all of that nervousness too Exactly. Is out the window. Cool. I like that a lot.

What do you attribute your success to?

Jared: Great question. I don't want to sound corny, but a lot of success I or a lot of, my success I attribute to is probably a lot of it's Danielle. She came from the industry. She's been doing this for like nine years now. Yeah.

She has a ton of the experience. Literally everything I know about the logistics of a transaction, how to structure, how to do everything comes from her.

Steve: Yeah.

Jared: So that got me up really, really, really, really fast. That that cut my learning curve by a lot. Also, man, I I guess it's just my at the end of the day, I think it's just my personality. You know, to, you know, I know what I want. I I I roughly know how to get there.

Yeah. And I'm just I just execute at the end of the day.

Steve: Well, our friend Jesse shared with me that the reason why you're so darn successful is that you're a master of systems. I think that goes back to your engineering degree. Right? Exactly. So, I mean, you were you were an engineer for how long?

Jared: I was an engineer for about two, two and a half years.

Steve: Yeah. So you're able to lever some of that technical know how.

Jared: Yeah. The technical know how, like, my brain works in in sequences. Mhmm. So being able to sequence every process out, even including the sales process.

Steve: Yeah.

Jared: People think sales is so subject, subjective. How do you build a process around sales? But If

Steve: you don't have a system, that is how it works.

Jared: If you don't have a system, that's how it works and you're not able to identify where where the issue is and if you can't identify, you can't fix it.

Steve: Right.

Jared: So, a lot of a lot of how my brain functions and then also just lost my thought.

Steve: Yeah. We're talking about systems.

Jared: Systems.

Steve: Yeah. Anyway, okay. So, obviously, we have a lot of friends in town that wholesale. Right? I mean, I if we're not the the most competitive market, I would like to know who is.

Mhmm. Or who's more competitive than us? What how is your operation different than all our friends?

Jared: Like, kind of like what I've been touching on, is I treat my operations like a true sales and marketing organization. Mhmm. We take and, also a lot of the systems and processes. Our sales guys, they only focus on sales. They focus on holding, building the rapport, managing the seller communication and just as many touches and, moving as many balls forward every single day as possible.

They're not even underwriting. We have a full time analyst that underwrites all the assets.

Steve: Yeah.

Jared: So they're not thinking so that that was one of our issues in the past was our acquisition guys were underwriting, underwriting all the deals. And so when they're getting on the phone to propose the offer, they went straight for the numbers. Mhmm. When obviously you got to warm it up, you got to go through the deal killers and do all that before presenting the offer because you want to elevate the pain. So when you're coming in, you know, with the offer, it's it's not that delta, that gap isn't in in their mind that big.

Steve: Mhmm.

Jared: So being able to process and like segment all of our departments, our underwriting department, our sales, our sales team, transactions, everybody knows their part. Mhmm. And, it's just we know exactly what return we get on the marketing. So, everything if you look at the organization as a whole, it's an it's just one simple equation.

Steve: Yeah.

Jared: We know for every dollar spent, we get x amount of dollars out and everybody is measured, that that aligns with that exact strategy, to make sure we it all flows down and aggregates to that exact number that we expect to see out on our marketing.

Steve: So, you know what's funny is, like, I think if you were to ask, you know, some the average person, like, what what does a an investor, a cash investor do? Right?

Jared: Mhmm.

Steve: You kinda have this image of this guy that's, like, sloppy. Mhmm. Right? He's coming to your house, and he's just trying to lowball you and this and that. Right?

You don't think of it as a business. And that's the thing that I really love about what I saw with, with Kegley. Mhmm. What I see, you know, with Jamil and Josiah, what I see with Carlos and Sala, what you guys are doing. Like, you're running a business.

You just happen to be in wholesaling.

Jared: Exactly. Exactly.

Steve: So it's really fascinating to see, like, you take a lot of the principles that make businesses successful Mhmm. And just apply it to wholesaling, which has higher margins.

Jared: Yeah. Absolutely. Fast money, high ticket items, you know, it's it it it's very lucrative.

Steve: Yeah. So as far as sourcing deals, I mean, to get 250 k, like, where where are top three, four sources?

Jared: Top three or four sources. So, as you know, we're owner direct on everything, like, 99 percent of the time. Yeah. So, our main, I guess, sourcing, marketing channels, kind of same thing. Telemarketing, we have a, we have a call center down in Mexico.

Mhmm. Also a lot of SEO online stuff, PPC, RVN. Like, all the you know, everybody's doing the same stuff at the end of the day. Right. It's just like, for me, it's being able to have the sales process to, on the back end Yeah.

To monetize that and also the, the lead management process as well is super, super important. Because for us, you know, we're producing so many leads a day and being able to prioritize and process those leads, that that's the key, I think.

Steve: Right. To strategize your follow-up.

Jared: Exactly. The follow-up, how you process them, how you deliver the offer, how you talk to them, how you identify the person all the way down to the personality type is what I think converts. The leads, everybody's getting the same exact leads. Everybody's cold calling everybody's doing online, you know granted some online guys have a competitive advantage and can know how to rank higher, but it's all the same stuff at the end of the day. Right.

It's it's the operations and the sales process that that ultimately converts.

Steve: So there's no particular list that you prefer over any other?

Jared: To be honest, like, my distress and my non distressed list convert exactly the same.

Steve: Yeah. Interesting. So that's a very different answer than everyone else. That's cool. What does your organization look like today?

I mean, obviously, you mentioned earlier you got an analyst. You got some acquisition guys. So what are different roles? How many people you have at each?

Jared: Right. So, if you look at it from, like I just mentioned, departments. In a sales department, we have, as of today, we have five, full time acquisition guys. We have one analyst.

Steve: So, the acquisitions guys, what is their responsibilities?

Jared: Acquisition guys' responsibilities are to, I mean, honestly, it's just it's like managing relationships. So they have their pipeline. They're getting, you know, between ten and fifteen new leads every single day Mhmm. Staying on top of their new leads, managing their follow-up bucket, prioritizing their follow-up buckets, and then proposing and making offers.

Steve: Wow. 10 to 15 a day is really good. Yeah. Alright. Okay.

So then you got the analyst.

Jared: And then, oh, I guess, over the top of that, we have our sales manager who manages all the sales guys.

Steve: Okay. Because,

Jared: I mean, salespeople, I mean, they're all three Madonnas. They it's like herding cats. Right? So, like, for me for me to be stretched further and and really try to, grow the organization

Steve: Yeah.

Jared: That was super critical. That took so much time off my plate. So they he manages, his main focus is growing the sales team in, both quantity and quality. Mhmm. So I'm constantly recruiting, bringing new, So, I'm constantly recruiting, bringing new, bringing new sales guys on and then refining them, making sure that they're constantly growing, constantly learning, what our specific niche, kind of demands.

Then our analyst, she underwrites everything. So, she's doing, pre contract analysis. So, once a new lead comes in, sales guy qualifies it, right? And then if it's if they figure that it's qualified, sends it to the analyst. She underwrites it based on what the, seller note condition conveys.

Mhmm. Puts like a kind of a ballpark, a target price and a max offer price, sends it back to acquisitions. They're delivering those offers and either we're in negotiation stages or would they accept it or denied.

Steve: Yeah.

Jared: You know, if there were negotiations, that's one more thing for them to follow-up on. So that's how the that's how the analyst kind of, you know, works with the acquisition team. Yeah. Then, obviously, we have our transactions, girl. We have, our bookkeepers.

Then we have myself. We have Danielle and I think that's everything.

Steve: You have a disposition person?

Jared: Oh, and a disposition. Yeah. Yeah, exactly. And a dispositions guy full time.

Steve: Okay. So, and just to clarify because I know I know there's different ways of of doing business. You guys do everything over the phone?

Jared: Everything. I want to say a 100% but probably like 95% over

Steve: the phone.

Jared: But because we're in, you know, virtual markets as well, we have no choice but to be a 100% on the phone in those places. If we're in Phoenix, if, like, for example, you know, a seller is old and and doesn't know how to use tech or if somebody's on the fence and just needs that that in person touch to close because that's just how they communicate.

Steve: Yeah.

Jared: We'll we'll go out to the appointment, but we we like to stay inside, simply because we're able to make more offers. We're able to manage our CRM because we have so many leads. The pipeline is so big that you'll have, you know, 30 new texts a day from sellers, and then you'll have missed calls. You'll have new web form coming in. You have to answer those live.

We have so many variables that come in. It's almost like our sales team is like a freaking high octane just fueled on caffeine. Right. Just it's it's it's cool to see. But, yeah, we'd like to keep it all in house.

Steve: That's incredible. So, I know you can't really answer this question because you you you have your own call center service, but, like, approximately how many full time cold callers are working your your stuff?

Jared: We have, for our own campaigns, about 30.

Steve: 30. Wow. Okay. And so how do you pay those guys?

Jared: We pay them by the hour.

Steve: By the hour. Mhmm. And they're in Mexico, you said. Right?

Jared: They're in Mexico. We pay them by the hour by dialer time. We don't pay them for just sitting on the seat and taking a lunch break. Right? Exactly.

Steve: Okay. So,

Jared: it's all on dialer time and then we pay them by the hour and it works out pretty good.

Steve: Okay. And then, as far as acquisition

Jared: Mhmm.

Steve: How do you you compensate the acquisition person?

Jared: So, acquisitions so the way we, onboard a new acquisition guy from from day one, they get a $2,500, draw base for the first three months plus 10% of the gross assignment income from all the deals that they produce. Aside from that, we have kickers and spiffs. Mhmm. Because we have a large sales team and we we love the internal competition. It's it's it's so much fun.

The person who gets the most amount of contracts for that week gets an extra two point kicker on top of those, of those contracts.

Steve: Very cool.

Jared: And, and then on top of that, it seems like I'm giving away the farm, but it's it's it works out well. Each salesperson, their goal is a million bucks a year.

Steve: Mhmm.

Jared: So, every quarter if they hit their quarter million for the quarter, anything above that's an extra five point kicker on top of that.

Steve: Amazing. And then your analyst. How do you compensate the analyst?

Jared: She is, pure, pure salary.

Steve: Yeah. That makes sense for that role. I just wanted to make sure.

Jared: And then a disposition person. So dispositions, right now, we're and I I gotta kind of run him over, but, he was in a tryout phase. We're giving him no commission and then five points on the gross assignment income. But when probably starting January 1, if if he's listening, we're gonna put him on on a two and a half percent, point or two and a half points on the gross assignment income. Just because, like, we're we're scaling our marketing.

Mhmm. And obviously when you scale the marketing the the assignment revenue will grow proportionally. So like if you think about it if an acquisition guy is making ten ten points on a deal and a dispositions guy is making two and a half points you need five acquisition guys to make the same amount as a, as a dis or Alright. You know, roughly the same proportional amount. So, yeah, two and a half, two and a half points on the dispo side.

Steve: Okay. And then, Colin Farrell. What's up, Colin? He wants to know tips for building a massive virus list.

Jared: Well, I have this very proprietary no, I'm not gonna say. Okay. So, tips for building I'm a data guy, right? So, the great thing about our product and service that that we deal with everything's public record. Go on core logic or Adam data and find your county pull all LLCs right and then if you wanna find the top guys, I don't know if this is too detailed, but if you you wanna find the top guys, take that sheet, say it's 50,000 buyers.

You could make a pivot table, sort it, and see who's holding the most amount of assets in in that area. But that doesn't necessarily mean that, you know, they're fix and flip. It could mean, you know, they bought back in 2009 and they're holding on or a 100 homes and they're not buying anymore. So, limit it to the last one year, buy a list and then take those LLCs, skip trace them, find the owners, pick up the phone, give them a call.

Steve: Okay. And just to clarify for you guys, I would definitely not recommend learning how to pivot. I would go on a Fiverr and have

Jared: a pivot

Steve: for you for $5.

Jared: All I do, I just I'm just in Excel, like, more than I'm doing anything right now. Yeah. I mean, I

Steve: recently learned, you know, like, the last twelve months how to pivot. Mhmm. And then so yeah. Call them on to ask you to lock them over the phone so that we get that. And then okay.

So that's that was all the questions. And, guys, please do ask more questions. So we were talking about compensation. Who's in charge of the KPIs?

Jared: I'm in charge of the KPIs.

Steve: Okay. So you look at them daily, weekly?

Jared: I look at them once a month.

Steve: Once a month?

Jared: So what we do is because we're so heavily, reliant on converting the marketing spend, our target is, 15% of the cost to the revenue. So, if I'm spending for example, you know, and I guess the podcast case $25, I gotta be making at a minimum, I think it's like $2.30 Mhmm. On that. 15% of the of the cost of the revenue that comes out to like 6.6 times your marketing spend Right. Gross.

Yeah. So, the mainly the the things we look I mean, do you want me to tell you, like, what we look at? I think this is super super important because the thing is now that we're trying to scale, we're trying to go from 25, 30 a month Mhmm. To, about $85, come Q4 of next year a month. Right?

So, if you said I'm going to go from 25 to 85, I'm going to say holy shit. Like, how the hell am I going to lose money? Like, it's very uncertain. But the thing that makes that builds the confidence is, like I mentioned earlier, is building that equation. So, we look at we look at everything from, I guess, starting in the upper left hand corner, we're looking at, volume of leads per month.

Mhmm. How many of those are qualified, right? Because qualified or a volume of leads doesn't necessarily mean qualified leads.

Steve: Yeah. It could be the white pages.

Jared: Exactly. And then we run, the cost per lead only based on the qualified leads because some lead sources are less qualified than other lead sources.

Steve: Right.

Jared: So, some people may think like, hey, PPC is ridiculously expensive. My cost per lead is $200, but you don't know that your your qualified ratio is, you know, 60%. Mhmm. Some people may say telemarketing is amazing because I'm making a lead at $20.25 bucks. Right.

But your qualified ratio might be 20%. So if you actually look at the cost of a true qualified lead, PPC, my my PPC crushes it out of all my cheaper lead sources. Yeah. And it's also the highest grossing ROI. So being able to understand, like, where your most effective lead sources are relative to, you know, the revenue, how much, gross assignment income each channel is producing.

And then we also break it out by market. Mhmm. So then we could also understand, hey, look, California is underperforming. Let's reallocate the marketing dollars to, Phoenix or Vegas where we're, you know, 1.5 times the gross revenues.

Steve: Yeah.

Jared: Let's let's make those we were able to make those decisions a little bit more. And everything runs out to the very end which is just ROI and what a lot of people don't realize is they don't, look at ROI relative to time. They're just looking at, you know, 300% or 500% but is that over a six month sales cycle or is that over a two month sales cycle in PPC case? Case?

Steve: Right.

Jared: So running it relative to time to understand, hey, look, this is our highest performing marketing channels. Let's double down on our on our highest ones and, and just and just go from that strategy. I mean,

Steve: that's a whole another level. Right? And I think that's kind of like, I think, scaling up, was that, you know Right. How fast the money comes back. It's not just what the return on investment is.

Like you said, it's how fast that money comes back in as well. So very, very interesting point. I think you're gonna have to, like you could probably sell, like, an MBA if you could explain all that to somebody.

Jared: I am not a finance guy.

Steve: But it's crazy. Right? Like but this is what it takes to be this successful. What so you're or you were talking about Houston, Vegas, and here. Mhmm.

Right? So we're gonna talk about the monthly marketing, 25 k. So what is your monthly overhead? Like, what does it cost for you to stay in business?

Jared: Between 25 and $30 a month. And at On top

Steve: of the marketing?

Jared: On top of the marketing. Okay. So that includes, building lease, includes, base salaries for the support staff, all the toilet paper, freaking coffee that these guys drink energy drink, like, team outings

Steve: Right.

Jared: Like, everything. IT, new computers for sales guys, gas, the whole the whole shebang.

Steve: Very cool. So Isaac Solis wants to know what does your day to day tasks consist of? I imagine it's gotta be all over the place.

Jared: Day to day tasks, like, we're still very heavy in the operations because I want to make sure the team right now is is super super strong because if there's one if there's one weak point in the equation when we scale that weak point is going to come out and it could just be a freaking, you know, missing link. Right?

Steve: Yeah.

Jared: So making sure the team is super, super strong. I spent a lot of my time on continuous education. Constantly refining my analyst to to to learn how to underwrite specific neighborhoods, different markets, whatever it is, returns. And the great thing about an analyst is if you if the market shifts or anything ever happens or who knows, I have one point of failure where I say, hey, Kayla, you're underwriting San Francisco at 20 at 20% rather than communicate to sales guys who don't hear anything anyways and, hey guys, we're communicating or we're underwriting at 20%. Like, it's it's just it just doesn't happen.

So I could train one person on all the numbers at any given time. I could pivot. I could shift whenever I need to, because it's a lot easier. And, so training. Right?

Mhmm. Training, refining the systems, refining the CRM, working on the lead sources to making sure the lead sources are producing and then managing the higher level KPIs and, to making sure that we're hitting numbers, we're staying on track and also, training my sales manager on how to manage the sales team to making sure that they're hitting numbers and they're staying on track and they're growing our team in just quality and quantity.

Steve: So you're coordinating or dealing with the sales manager?

Jared: Yes.

Steve: Okay. Awesome. And, Ray Delgado wants to know if you have $500 to spend

Jared: $100?

Steve: 500. Oh. What would you spend it on for marketing?

Jared: Probably gas to drive for dollars. Gas and insurance.

Steve: Great answer.

Jared: I mean, honestly, like, if I had well, I mean, if you're in the Arizona market, I would probably just hop on Monsoon. All those little red dots you see on Monsoon that are pre foreclosures, go hop on there. Go find a skip tracing website. Call the homeowners.

Steve: Yeah. Well, I think you don't have to have Monsoon. Right? You're just going to Zillow.

Jared: Or Zillow. Correct.

Steve: Yeah. Okay. So are there any services that you offer? I know, like, you know, one of the benefits of being successful in your industry is that you get to create systems that work for you

Jared: Mhmm. And

Steve: then you can offer that to someone else as well. Is there any services that, you have available?

Jared: Right now, I'm so focused on your operations. I don't really have time to really offer any other services, but something I am a co partner in is a, a company called Call Geeks. Call Geeks, they, it's the team in Mexico where we've trained these highly highly trained, not VA's, but pretty much the sales guys

Steve: Yeah.

Jared: To make outbound calls and prospect. And that's what a majority that's probably what 65% of our pipeline is is, leads from, our call center. So we offer if you go to call the callgeeks.com, that's where you could find more information about our telemarketing services. And then also, we probably spend half our marketing expense is, is pure data. You know, I have an affiliate link with, with a with a skip tracing website.

Probably $10 of my cost comes directly from skip tracing. Like, no lie. It's ridiculously expensive.

Steve: Right.

Jared: But, but in this day and age, you have to be proactive on getting in touch with that homeowner. And that's how we do it. So, if anybody wants any skip tracing, just reach out to me and, I'll point you in the right direction.

Steve: Cool. And then, you know, one of the things that, I saw from some other people posting is, like, this doesn't work. Right? This whole selling is a scam. You guys can't you know, I've talked to some homeowners.

I can't I can't get them to down or whatever. What would you say to them?

Jared: Man, it's like, I tell my sales guys, you know, if you're relying on one motivated seller and that motivators motivated seller doesn't work out, you're not eating for the month. You gotta build a a robust For

Steve: the month, you're poor guys.

Jared: Yeah. They get paid for permission once a month, but Yeah. You gotta build a robust pipeline. You can't be highly leveraged on like a couple, maybe build it big. So if like one or two fall out, you have a couple more to fall back on and you have more at the end of the day, you gotta bring the opportunity into the door right

Steve: right.

Jared: It's twofold. You gotta bring the opportunity into the door as far as marketing and you have to have the sales competency to close it on the back end. If they're saying it doesn't work, either they're not bringing enough opportunity to the door or they don't have the sales competency to close it.

Steve: It. Alright. There it is.

Jared: And maybe consistency.

Steve: Maybe. Slight possibility. So Valencia, Cooler wants to know, where are you pulling your list from?

Jared: To be completely honest, I'm pulling lists straight from the county just because it depends. So you have the county, we have ListSource, and we have Adam Data. Adam is spelled a t t o m. They're they're a subsidiary of RealtyTrack. I think everybody knows who they are.

Mhmm. So we're pulling we used to pull a lot from CoreLogic and Adam Data, but now it's more county because we're probably reaching out to probably over a million people every single month. And as you can imagine, that's a crowd load of data. Wow. And if I'm that's the whole reason why.

If I'm just targeting distress data Uh-huh. I'm blowing through that in, like, a day. So my only option is to pull entire counties and skip trace it. And if I'm pulling an entire entire county from, you know, a vendor, you know, it's like probably $20. So, I'm going directly to the county getting the CD for, like, $500 and, just using that.

Steve: Going to Maricopa County records

Jared: and getting a CD? Maricopa County records. Any What

Steve: do they even offer?

Jared: It's everything. It's, you have your APN, your first name, your last name, mailing, property, asset class, zoning, the whole shebang. Everything you need to sort it out, throw it into a batch skip tracing software and get all the data you need.

Steve: Incredible. Okay. We were talking earlier, you know, there are some things that you do need help with your business. So, potential, particularly, personnel. Right?

Jared: Yes.

Steve: So what do you what, what do you need help with

Jared: right now? So, like I mentioned, in 2019, we have a pretty aggressive, growth strategy.

Steve: I mean, almost quadruple. No big deal.

Jared: So, so right now, we currently have five sales guys and we're spending at 25 to $30 a month. By the 2019, we need to be at 11 sales guys and we're gonna be spending that $85 in marketing.

Steve: Yeah.

Jared: So if anybody out there, have to be local here in Maricopa County who's looking for a sales position or more of an acquisition position, I'm I I want to interview you. We're looking for as many qualified sales guys as we can, the top 25% out there. If you're interested at all, just reach out to me. I'd love to talk to you.

Steve: Cool. So anything else besides sales associates or just sales associates?

Jared: Analysts. Our analysts are slowly, you know, at our capacity.

Steve: A little overwhelmed.

Jared: Yeah. So more of like, you know, an intern or an assistant, somebody who has underwriting experience. Again, we underwrite in Phoenix, Vegas, Houston. Underwriting in markets other than Phoenix is not hard. We have MLS access everywhere.

So, It's

Steve: a great thing about our market. That might be why we have so much competition. Every house almost every house is the same.

Jared: Exactly. There's the great I mean, the thing about going in Houston, everything we bought has foundation issues.

Steve: Yeah.

Jared: You have a house from 1954 on the West Side. I mean, the thing's pristine. Yeah. But, looking for, analysts, underwriters, somebody who could assist our full time analysts and, and and help us out with more properties.

Steve: You know, when I was trying to hire real estate agents back in the day, we found a lot of, people that that kind of experience in the WP Carey School. People trying to get into real estate.

Jared: So you

Steve: might wanna check that

Jared: out. Idea.

Steve: Okay. I I had someone reach out to me recently as well asking me about coaching, you know. I told him, like, you know, if I were to spend money today, I probably start with I probably start with Rafael Vargas. Yeah. But what would you say if someone was looking to get coaching?

Jared: It depends on what type of coach you have. Like, your your your business and, like, systems coach that, you know, they're developing the blueprint with you and helping you execute and holding you accountable. Mhmm. You have, sales coaching. You know, for that, I recommend John Martinez.

He's been freaking awesome. Yeah. Also, Jack Daly. Jack Daly is a freaking beast. That guy's built, like, six organizations of 2,500 sales guys and sold them all

Steve: off. Wow.

Jared: So if you want if you want sales management and sales training and and how to develop an awesome culture and and keep everybody in line and aligned and accountable, Jack Daly, John Martinez are the best. On the, like, business blueprint side, Rafael and I know, Carlos and Sauer on here, they're really, really great as well. I would just see which personality you fit with best and, go with one of those guys.

Steve: Yeah. Cool. That's awesome. So you mentioned earlier, the very beginning of the interview, you're talking about you got your follow through process, ranking, prioritizing who you're calling. So what CRM are you using to do all that?

Jared: So just like everybody in this niche of real estate, you know, use Podio.

Steve: Yeah.

Jared: It's not exactly the smoothest CRM, works for now. Mhmm. But, yeah, we have Podio, built out. Actually, South Secure helped us out. Mhmm.

Pretty much retrofitted it to, to our exact sales process and and business.

Steve: Yeah.

Jared: So just out of Podio. Yeah. And we have a bunch of other ancillary tech that kind of talks to it as well.

Steve: Was, Carlos posted last night, Sal broke or hit hit their limit

Jared: Oh, yeah. Podio. Sent me a picture a couple days ago. The fifth 5,000,000 flows. Flow shut him down for the month.

Steve: Yeah. He found the limit. If they say unlimited, he found the limit. So Gustavo Sistiego wants to know, how do you deduct taxes from the money you pay in your call your call center?

Jared: How do we deduct the taxes?

Steve: Is it considered marketing or employees? I would say it's marketing. What do you consider that?

Jared: I just consider it marketing.

Steve: Yeah. What

Jared: I I look at I don't I I try to tie everything to a specific marketing campaign. So for, you know, I have I have a cold calling, SMS, PPC, RVM. I tie all the cost of labor. Any VA's that assist with the campaign, lists and skip tracing all total it up to that one campaign. So in this case, the VA's, they all their labor goes under the telemarketing campaign cost.

But taxes, I don't think we pay taxes.

Steve: Yeah. Good. That's a good system.

Jared: I mean, not, I mean, not like IRS. We don't, we, we don't pay Mexican taxes.

Steve: Alright. IRS ignore that last comment. And you know Ron Rona. Right? Of course.

Yeah. So he says, you know, he wants to say hi from Houston.

Jared: Sup?

Steve: Haley, have you ever thought about using a call center to help answer calls and set appointments for yourself? So an inbound call center. Do you have anything like that?

Jared: The thing is we don't really go on appointments. So if we if we hired and actually it'd be really really effective. What we do is qualify the lead and then they push it over to our CRM and our sales guy that then makes it, the determination if that's qualified or not qualified. We don't wanna leave that determination up to, the VA necessarily.

Steve: Yeah.

Jared: So, all inbound, all comes into our sales floor. So our inbound from, our website calls, like any, like, super distressed campaigns, you know, how people, like, will send an RVM and and send it to voicemail. Just like a pre foreclosure list, I just route that on a simultaneous call to our sales floor because they're higher priority calls. Yeah. But everything is aside from the telemarketers who are who are doing the prospecting and they get the callbacks, those all go back to the, back to the center.

Anything that's inbound that's already a qualified lead comes into our sales floor.

Steve: And I guess that round rob round robin or whoever's closest to the phone?

Jared: Simultaneous calls. So everybody's phones ring at one time. First one to pick up gets the lead.

Steve: Whoever's hungrier.

Jared: Whoever's hungrier.

Steve: Awesome. I love that. Okay. Are there any other tools or systems that you can live without?

Jared: Tools, systems. I mean, besides the ones we kind of built ourselves, like, probably like a call rail Mhmm. Or dialer.

Steve: Yeah. What do you use for a dialer?

Jared: So right now, we use, X five Y Tel Yeah. Product. It's it's pretty good, but we're thinking about transitioning over to a new dialer. Mhmm. That's what our that's what our, our tell, our center uses.

But I'm thinking about and this is like pure testing phase, putting our entire team on a dialer. Mhmm. So they're they're all connected and, and have live inbound transfers from our, call center over to our sales team. Because the thing we thing we found out was a lead that comes in from the center, there's like a 50% chance that we're actually gonna they're gonna pick up the phone and we're gonna continue the conversation.

Steve: Right. That's the hardest part. Exactly.

Jared: We have

Steve: a hand off.

Jared: Exactly. So being able to shorten that or close that gap rather and just have it, have like there has to be a certain amount of check boxes I think they would have to check off before transferring, like Mhmm. Do they want to sell within thirty days? And is there any, points of motivation? And if there is, transfer them over regardless of price.

So we continue the conversation and either choose to tie it up right there or put it in a more high priority, get it to underwriting and get it back so we could deliver an offer.

Steve: Cool. Awesome. What would you do if the market slowed down or took a dip?

Jared: So the great thing about our model is we make money in an up market, we make money in a down market.

Steve: Yeah.

Jared: So, from my more of a, like, a holdings perspective, right now we're kind of we're putting the balls in motion on how to structure, certain types of funds so we could, so if that when that time ever does happen, reason is reason is period between whenever whenever that is. I have no clue when that's gonna happen. Right. But, we're we're getting we're building rapport with private money, guys. That's why we're flipping.

We're, we're showing that we're getting them a track record, showing them that we're reliable. We do what we say we're gonna do. So when the time comes, we're easy to pull those funds in Mhmm. For a larger aggregate pool. So we could then go buy those assets strictly on a cap perspective.

Steve: Yeah. Oh, that makes that's sounds like you're ready for it. What is your why?

Jared: What is my why? You know, as I always think about this and like, so my why is so the thing when I when I was growing up was I'm like a super convenience guy. Like, I'm about, I'm the guy who would sell my house to a wholesaler because it's quick and easy. Yeah. So, like, saying that, like like, turn like, worrying about stuff, like, turning off lights and, like, not, like, going someplace and not wanting to buy whatever I wanted on the menu.

Like it sounds stupid but like I want to do whatever like I want to do at any given time.

Steve: Right.

Jared: Like so being able to achieve that I guess I guess through like money. I got money. Money solves solves a lot of problems, doesn't solve all the problems, but,

Steve: more than 90% of them

Jared: and more than yeah. When you say money doesn't buy happiness, you don't have any. So I'm just kidding. Boiler room. Well,

Steve: I always like to think it was that, who's that, Danny? Who's that? He had a show, on on Comedy Central, but it's like, you know, like you say money can't buy happiness. But have you ever seen a guy on on, on a jet ski frowning?

Jared: No, you don't. No. So just like just being comfortable. It's it's that peace of mind knowing like everything's okay, I think is what it really is.

Steve: So peace of mind and it's not really financial freedom. It's really just freedom. Just complete

Jared: complete freedom. Exactly. Awesome. I say that now. I say like I want to I want to build this company and build this like cash flow business so I could go like not do anything but like and go like travel but like my personality I always think about it like I'm always it just it just goes right.

Steve: You can never retire.

Jared: Never retire. I'll try.

Steve: What is your superpower?

Jared: My superpower? Probably honestly, probably probably the systems and processes Yeah. Side, being able to break down an issue and then systemize it, in the in the most effective way and efficient way possible. And, my biggest problem, not superpower, is probably delegating.

Steve: That's the challenge of people that are good at things. They can't delegate.

Jared: I hate, I, I don't want to be the good, I don't want to be the best at it. Yeah. Because like I'm like the frigging, like if you look at the, I forget what, it's not reached out. It's like that, quadrant of my personality.

Steve: The investment quadrant?

Jared: Like I'm the, I'm the, I'm the S, like I'm the freaking surgeon that could get down and like do it. I can't, I just gotta get away from that. Alright. You know, so like I'm really good at building systems, but being able to have somebody manage that system and execute and complete it. That's kind of my weakness.

Steve: Interesting. What is your favorite best or most interesting failure?

Jared: Man, curveballs. Yeah. Most interesting failure. I don't know. Maybe, maybe, you know, when I was doing the flips and construction maybe I realized that wasn't something like I wanted to do.

Mhmm. I think it's like I don't have like any like big failures or a bunch of like little micro failures. Mhmm. That happen like almost every single day. So like every single day I'm learning.

Yeah. I don't have like, you know, I, you know, crashed my car when I was drunk and now I don't drink and drive anymore. It's like I I try to make the best decisions I can and, like, as things come up, these little micro failures, I just I just log in the back of my brain just that'll never happen again.

Steve: And just as quick as you go. Exactly. Okay. And then, Chris Jackson mentioned that there's a smartphone dot I o that I don't know if you know heard of that, but Cytopodion has a has a multi dialer. So just, something he pointed out there.

So, what is the, you know, ending the show, what is one thing that you want to leave with the listeners?

Jared: Well, so if you're I guess, if you're just, you know, just getting started and we were all there at one time, right?

Steve: Yeah.

Jared: Like the biggest thing was like it's just, it's just understanding what you want because in real estate there's a thousand ways to skin the cat and make money.

Steve: It's crazy in real estate. How many different ways there are to make money in it?

Jared: It's so it's so easy to get shiny object syndrome and we all do it. And that's like big my biggest growth like when I first started like three or four years ago was let's start a frickin' direct mail center. Let's like do this. Let's see like and like we never focused, we never aligned on one singular focus, one target, one number. And what I've done now is really try to pull it all together.

I mean, yeah, you get distractions, but you just gotta like put your like horse blinders on and just go. So anybody just getting started, pick. I mean, yeah, figure out what you wanna do. Pick one thing and don't get distracted. Like envision, like the mentally vision what that looks like.

Because the thing is you have to paint the picture for yourself. If you don't pick the picture and you're not already living it, you don't know, you don't, you already don't, you don't know what it takes to get there. So figure out what that is, paint the picture, have like some compelling vision that's compelling enough for you to actually get out of your like, get off your ass and actually take action and take a little bit of risk

Steve: Yeah.

Jared: And just go for it.

Steve: That's amazing. And, you know, again, not to under sell what you've done, but, you know, 250,000 a month, like, it's only three years.

Jared: Mhmm.

Steve: If you put your head down, focus, know your vision, go after it, it is possible you're living proof of it. And I think that's awesome.

Jared: Exactly.

Steve: Alright. So, guys, don't forget, we do have the monthly meetup tomorrow night, 04:30. Jamil is gonna be talking about about how Kegley works. He's basically giving a presentation on what Kegley does. Beast.

It's unbelievable when he showed it to me. Honestly, I was a little intimidated.

Jared: Are you gonna record that? Because I'm not gonna be here. So I'm not gonna

Steve: yeah. I'm actually talking to Farai about recording it. So we'll see that goes. See how it works. You know, it'll be the first time we've done it.

But it's actually very intimidating what they're doing. It's like, I don't know if we can catch those guys.

Jared: Yeah. Well, don't share it to anybody. Just give me the video. I don't want the competition. I'm just gonna lose that competition.

Steve: And then next week is gonna be our last episode for the year. We got Max Maxwell flying in from Carolina. So that's gonna be an awesome show. So that's it. Thank you guys for watching, and thank you.

This was incredible.

Jared: Appreciate it. Thank you.