Real estate investing can be a solitary endeavor, but with the right mindset and strategies, it can scale to incredible heights. Carlos Reyes, a seasoned investor from Phoenix, Arizona, has proven that with hard work and smart decisions, you can go from dropping bandit signs to managing a multi-million dollar business. In this post, you’ll learn about Carlos’ journey, the systems he implemented, and the marketing strategies that propelled his business across 15 states.
Meet Carlos Reyes
Carlos didn’t start with a silver spoon. His beginnings were humble, involving late-night bandit sign drops and a fear of spending money on marketing. Fast forward four years, and Carlos, along with his business partner Sal, now operates across 15 states with a team that includes acquisition managers, disposition managers, lead managers, transaction coordinators, and a chief financial officer.
From Fear to Investment
Early Struggles
Starting a business is always tough, and Carlos faced significant challenges early on. His marketing budget was a meager $700, and the fear of losing money was paralyzing. He began with handwritten bandit signs and pooled resources with another company to keep marketing costs low. One of their first mail campaigns, split with a partner, yielded a $60,000 return on a $2,500 investment. Had they not been hampered by fear, they would have kept the entire profit.
Shift in Mindset
The biggest change came when Carlos and Sal started seeing marketing as an investment rather than an expense. They moved from fearing the cost to embracing the potential return. Today, their monthly marketing expenditure is between $90,000 and $100,000, including pay-per-click (PPC), cold calling, and direct mail. This shift in mindset is crucial for scaling any business.
Purpose Beyond Money
Carlos highlights the importance of having a purpose beyond financial gain. The allure of flashy toys and high earnings fades quickly. True fulfillment comes from a bigger purpose, such as serving others and helping them create better lives. This deeper motivation keeps the drive alive, even after achieving substantial financial success.
Building the Team
Hiring Acquisitions First
Carlos’ first critical hire was an acquisitions manager. This role is vital as it directly contributes to increasing the company’s revenue. He sought individuals with sales experience and a proven track record. By focusing on acquisitions first, Carlos ensured a steady flow of deals, which is the lifeblood of any real estate business.
Adding Dispositions
The next hire was a dispositions manager. This role focuses on selling deals and maximizing profits, a crucial step for maintaining a high return on investment. The dispositions manager develops relationships with buyers and understands their criteria, ensuring that each deal fetches the highest possible price.
Lead Managers and Transaction Coordinators
As the business grew, Carlos introduced lead managers to handle the influx of leads and transaction coordinators to manage the paperwork and process details. This specialization allows each team member to focus on their strengths, further optimizing the workflow.
Systems and Processes
Podio CRM
A reliable CRM is non-negotiable for any scaling business. Carlos uses Podio, a versatile CRM that can be customized to fit the specific needs of his business. It keeps everyone accountable and organized, from lead management to task tracking.
Call Tracking
Carlos uses CallRail to track different marketing campaigns. This tool integrates with Podio, providing valuable insights into which campaigns are the most effective.
Data and Skip Tracing
Good data is the foundation of successful marketing. Carlos sources his data from reliable providers like CoreLogic and ListSource. For skip tracing, he uses NeedToSkip.com, which offers regulated, credit bureau data, ensuring high-quality leads.
Marketing Strategies
Pay-Per-Click (PPC)
Digital marketing, particularly PPC, forms the backbone of Carlos’ lead generation strategy. PPC leads are the hottest and most expensive, so he assigns his best acquisition managers to handle these leads.
Cold Calling
Initially challenging, cold calling has become a significant revenue stream. Carlos improved this strategy by hiring virtual assistants from TheCallGeeks.com, who offer better English and sales skills. The switch to AllInDialer.com also contributed to their success.
Direct Mail
Despite rumors of its demise, direct mail remains a reliable strategy for Carlos. He uses highly targeted lists and innovative postcards, such as Google image postcards from TurboLetters.com, to generate a high response rate.
Ringless Voicemails
Carlos uses ringless voicemails (RVMs) to reach a broad audience. He drops 30,000 to 50,000 RVMs daily through LeadBlastPro.com, which charges per delivery, ensuring cost efficiency. Virtual assistants filter the responses, allowing the acquisition team to focus on the most promising leads.
Handling Increased Lead Flow
With the surge in leads from various marketing channels, Carlos employs virtual assistants to filter and pre-qualify leads. This setup ensures that only high-quality leads reach the acquisition managers, maximizing efficiency and conversion rates.
Expanding to Multiple Markets
When expanding into new markets, Carlos focuses on data analysis, looking at cash transactions and days on the market. He sets up the necessary infrastructure, including title agencies and local boots on the ground, to ensure smooth operations. Establishing a reliable MLS and understanding local nuances are also critical steps.
Evolving Role and New Focus
As the business scales, Carlos’ role has shifted from working in the business to working on the business. He now focuses on raising private money, developing his team, and staying ahead of industry trends. This transition allows him to make strategic decisions that drive long-term growth.
Recommendations for New Investors
Carlos emphasizes the importance of changing your mindset to achieve growth. Viewing marketing as an investment and understanding the power of teamwork are crucial steps. For those looking to take their business to the next level, Carlos recommends attending events like All In Freedom, which offers comprehensive training and insights.
Wrap-Up
Carlos Reyes’ journey from a solopreneur to a successful real estate investor across 15 states is a testament to the power of strategic thinking and hard work. By focusing on the right hires, implementing robust systems, and leveraging effective marketing strategies, he has built a multi-million dollar empire. Whether you’re just starting out or looking to scale your business, Carlos’ insights provide a valuable roadmap for success.
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