Posted on: June 23, 2020

If you are like most people, you most likely find the idea of calling prospects on the phone daunting. While it can be a bit uncomfortable at first (this is especially true if you’re not used to doing it or you’re doing it for the first time), you’d be happy to know it’s not as hard as you think it is.

Still need a bit of convincing? This episode is exactly what you need to hear!

No less than Mr. TTP himself, Brent Daniels, dissected an actual call so you can see for yourself that cold calling is not as scary as many perceive it to be. It can take a bit of practice and getting used to, sure. If anything however, it’s something anybody can do!

This episode is jam-packed with expert tips and techniques you can use to master the art of making calls. What’s even more amazing? It’s dished out by no other than the expert on cold calling himself! Can’t get any better than this, so don’t forget to tune in!

Key Takeaways

  • What to say when the one who answers the phone is not the person you are looking for
  • How to get the seller to reveal the timeline
  • What to do if the seller does not have any idea how much to sell the property for
  • Why it pays to always be honest
  • Why time kills all deals
  • Why asking open ended questions is ideal
  • Why it’s crucial to get the seller to commit the soonest time possible

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Episode Transcription

Speaker 2:
Listen, I get it. It is scary to pick up the phone and make calls. I am going to break down an actual recording of one of my phone prospectors and their call, to make sure you understand that it’s not that hard. It’s not that scary.
Now in this cold call breakdown, I want you to be listening to a few things, okay? First of all, how was his opening? Right off the bat, we want to sound like we are a neighbor. We don’t want to sound like we are a telemarketer or customer service or that we’re not into the conversation, like it’s almost like we’re robotic, right? So look for the opening. Next, look for the tone. Look for the mirroring and matching of the tones. Look for how many times, Jeremy, my phone prospector, is asking open-ended questions so that he can keep the conversation going.
Now, remember when you’re having a conversation with a distressed property owner, it’s the easiest path if you start asking about the condition of the property. When they start rattling off that there’s been no repairs, that the place is a total junkyard, that there were hoarders or that it’s original condition from 1940s, whatever. You want to listen to these things because they’re literally reducing the price on the phone live with you, okay?
So you want to let them open up about the condition of the property. We want to find out their timeline to sell. We want to know why they want to sell the property and their price. So every time that you’re listening to one of these breakdowns or any time that you hear somebody making calls, if you’re fortunate to be around somebody that’s making these calls, or having a conversation with a distressed property owner. You need to tune your mental antennas into; condition, timeline, motivation, price. So let’s get started here with the intro. We’ll break it all down and see how he did. I’ve listened to it a few times. There’s definitely some tips that I want to give him and tweak some of his call here.

Jeremy:
Yeah. May I speak with Dolores?

Mark:
Who?

Jeremy:
I’m trying to get hold of the property owner of-

Speaker 2:
If you make a call and the person picks up and it’s a man, but you’re asking for a woman. And they’re like, “Who? What’s going on?” The next step is, “I’m looking for the property owner at the address, whatever the address is. I’m looking for the owner of the property at, and then the address. And then that’ll open up the conversation a little bit more because you don’t want to be like, “Oh, are you her husband? Or are you the…” Don’t get into any of their social connections or their relationship. Just ask about the property.

Jeremy:
Jacques Street. I mean, Jacques Drive.

Mark:
Uh-huh (affirmative). Yeah. That’s in my family’s trust.

Speaker 2:
“That’s in my family’s trust.” That can go both ways. What’s going through your mind right now? Are you thinking, “Oh, they have it in a trust. They must be rich.” Or are you saying, “Oh, it’s in the trust. Maybe somebody passed away.” See, that’s the two things that go through my head whenever I hear that instantly. Wait a second. So is this inherited? Or is this a property that… Maybe they own a lot of properties? Maybe they’re a wealthy family.

Jeremy:
Okay. Well, I’m a local home buyer here in the area and I wanted to see if you guys would maybe consider an offer on your property there.

Mark:
I would. We’ve got a renter in there.

Speaker 2:
“I would, but I’ve got a renter in there.” So listen to the way he’s peeling back to get the timeline. This is incredible.

Mark:
Until July, though.

Jeremy:
Okay. Okay. We’re a local home buying company-

Speaker 2:
He’s building some credibility here. I don’t think that he really needs to. I think that he’s about 65% mentally into this conversation. I need him at least 90% and hopefully 100%. But maybe it was at the end of the day. This guy calls for eight hours a day. I don’t know when it was in the day that he talked to him. 6:30 at night. Yeah. That’s why. Okay. So listen. So it was at the end. He’s not totally into it, but what I would say is shorten that up. Get more into why he wants to sell it. Get into that, those questions. Or give them the feature and benefits of the offer. Just to let you know the way we work. And he gets into it. But what I would have done there is, “Hey, just so that you know, the way that we work, we buy properties completely cash. There’s no real estate commissions. We pay all the closing costs. The best part is, we buy it as is. So you don’t have to put another cent into the property. So for an offer like that, how much would you take?”
Okay? That’s where I would dive in there. Try to pull out that price. See if I can get it out of him. He already seems like he’s open. It sounds like he’s having a good conversation. He’s okay talking about the fact that he has a renter until July. I’m going to start trading on that trust that he has and the way that the conversation’s going, because he’s not totally stiff-arming. He’s not blocking every question that we’re asking. So I would try to get the price out of him.

Jeremy:
In the area. We purchase properties cash, pay all the closing cost, no agents, no commissions involved. Best part is we’ll purchase your property as is. You don’t have to invest another cent into the property-

Speaker 2:
You know what’s beautiful about this? Literally, anybody can do this. Literally, you could pick up the phone and you can call and you could be having this conversation. And when that person says, “Yes, we are considering selling it, but not until the tenant’s out at the end of July. And it’s in the trust.” Let’s find out why it’s in the trust.

Jeremy:
At all. We close quickly with cash in hand. We pay you guys out today. I know you have a tenant in there and everything, but have you guys done any upgrades to either the kitchen or bath in the last five to ten years?

Mark:
Oh, 10 years ago they did, but nothing recently.

Jeremy:
Do you know what they did a few years ago?

Speaker 2:
Beautiful question. I talk about it on these cold call breakdowns all the time. What remodeling have you done to the kitchen and bathrooms in the last 10 years? I think he said, “Did you do any remodeling to the kitchen and bathrooms in the last five or 10 years?” I like what? It’s an open-ended question. Let them answer it. He went into it a little bit with the floors, but he had to ask a second question there.

Mark:
I don’t know. I wasn’t there. No, I don’t really know how much has been done inside. I’m not very familiar with that property, actually.

Jeremy:
Okay. I saw it was a three bed, three bath, 1500 square feet. I’m assuming you guys thought of selling the property or.

Mark:
We did, we actually did. Yeah.

Jeremy:
Okay.

Mark:
My mother’s passed away so it’s with the [inaudible 00:08:00] rental right now

Speaker 2:
There you go. One of two ways, right? Is this something that somebody has a ton of properties in the trust and they’re protecting it or is it somebody that they put it into a trust because somebody passed away. The mom passed away a couple of years ago. They’ve kept it as a rental. They haven’t seen this property in a long time. They don’t know what upgrades are going on here. This seems to me like a really solid lead. I really liked this. I would dig in on this call and really find out if he has any idea of what their expectations for price are. Because he’s given me all this language that is really putting up a smoke screen that says, “I don’t know anything about this property. So there’s no way that I can really accurately tell you how much we want for it.” Right?
And he’s not doing it purposely. It’s not like… Listen, property owners aren’t watching YouTube videos and going to seminars to learn how to get the most for their house when some people cold call. Okay. It just isn’t happening. All right. So he really just doesn’t know too much about this property. So I need to get a little bit more information and throw out some numbers, probably a low ball. This property was above 150,000. So we typically throw out 66% of the Zillow price. If it’s 150 or below, it’s 50% of the Zillow price. Those are some round numbers, it’s not… Listen, you can use that as just a general rule, but don’t… I mean, comp every property so that you know you’re getting a good deal.

Jeremy:
Let me ask you a question. If you had to give a cash offer today, knowing that they will purchase your property as is. Pay all the closing costs, no agents involved, no commissions. I mean, what would you guys take on the property? What’s your expectation as far as what you guys want to receive?

Mark:
I couldn’t really answer that because I don’t know. I haven’t really put a pencil to it. I haven’t looked at it. I was going to wait until the tenant is out of there. And I can get in there and look at it and put a value to it because I really don’t know [inaudible 00:10:07]

Speaker 2:
Exactly what I was just talking about. He really doesn’t know. So that’s where we have to come in and feel it out and maybe throw in some numbers here and there. And listen, here’s a tip for you guys, that if you’ve never done a deal, what I like saying, because we do a lot of deals in this market and is in Northern Arizona. We do a lot of business in Phoenix as well, but we throw out, “Hey, we’re buying a home similar to yours, in similar condition for around this price.” Because we are.
If you’re not, don’t lie to them. Just say, it looks like your neighbors are selling homes similar to yours for around 66% or 50%. Don’t say that you’re buying homes. They’re going to catch you up in that lie. They’re going to be like, “Okay, what address have you bought?” You know what I mean? Don’t play that game. Listen, it looks like your neighbors are selling. Your neighbors that are in similar condition are selling for this price. That is the pro tip here. If you were not buying properties or you’re moving into a new market or you’ve never done a deal before, don’t lie, you’re going to get caught.

Mark:
Well, I don’t know the property either so I have my hands tied a little bit.

Jeremy:
We’re honestly thinking maybe, I mean just [inaudible 00:11:17] We’re thinking about maybe 150 to 200,000. Now that-

Speaker 2:
That is way too big of a range. Way too big of a range. The 66% was at 160, he went 150. I want this at 150 to 160, not 150 to 200. We’re just testing it out to see if he has a number in mind in the back of his head that we can jog and get something out of it, but.

Jeremy:
And again that’s going off a property that we bought similar to yours in the past. But then also taking in mind that it might need some upgrades.

Mark:
Right. Yeah, it might. [crosstalk 00:12:02]

Jeremy:
I mean [inaudible 00:12:05] so you don’t know too much. I don’t know if that’s maybe the area that you were thinking of. But that’s more or less what we were thinking, about maybe 150 to 200K depending on the condition of it.

Mark:
Let me try to-

Speaker 2:
Let me ask you this question. When any seller, any property owner hears, “We can give you between 150 and 200, what number do they really hear?” Exactly! The $200,000. That’s what they’re hear. That’s now their bottom line, which is not what we want. We want it close to that 150. He’s given a range just because he wants to make them feel like depending on the condition, once we go in there and we look at the condition, look at how much repairs need to be made. Then we can back pedal to that 150. But if he’s already expecting 200. I mean, Zillow has this thing at 241,000. 241 Zillow has it at. So, I mean, come on, we can’t be up 200. Don’t play that game. Don’t play that, “Let’s, get their hopes up and then bring them back down by walking through the condition of the property.”
No, we want motivated people. We want people that will trade the equity in their property for speed and convenience. But by the way, guys, this is only three minutes and 39 seconds into a call. The typical yes leads that we get, that get sent into my office, are typically between three and five minutes. Three and five minutes. I am telling you a three or five minute conversation could literally change your life because you could find that deal that pays you that 10, 20, 50, $100,000. I’m not kidding. It’s happened time and time again.
Go to our testimonial page. It’s bananas. It’s absolutely bananas. How big of a deal that you can get from just a three to five minute conversation? So I’m trying to give you all the tools that you need. The confidence. More importantly, this is not rocket science. There’s some things that he needs to clean up here. I get it. It was late in the day. It wasn’t his best call. But it is still a lead that gets to come into my professional acquisition managers, that are absolutely incredible at really breaking down and seeing if these people will do business with us. So we’re almost close to the end here.

Mark:
If I can let that tenant to let me in to take a look and see the overall condition. But you’d normally try to look at them before you make an offer, I assume.

Jeremy:
Not necessarily. We can honestly price property-

Speaker 2:
The reason he said that is because when people say, “Hey, you need to see my property before I get an offer.” That is putting extra amount of time on to making a decesion here. We don’t want that. Time kills all deals. We should put this in huge, bold lettering. Time kills all deals. It truly does.
We need to get to it now. We want them to commit to a price. We’ll send the contract via an email signature. We use DocuSign. We’ll send it to them, get the commitment with them, go through the contract with them and then get into the property. We can do most of the estimates for the rehab, just from looking at aerial shots from Google and street views from Google maps, typically. And we just run our numbers.
Now, if something gets thrown, whether it’s a foundation issue or some major thing, then that can throw it off. But usually they tell us if there’s a major issue and we can adjust on the fly. But we want to make sure that we don’t have to organize with this guy to come into town. Organize with him to meet with his tenant. Organize to get there at that time. And then talk about the offer and then go through it, blah, blah, blah. This could take weeks. And in that time he could get five more calls. We want to get to it right now. We want to get him to make a decision over the phone, preferably. If we have to meet, then we have to meet.

Jeremy:
Really without even seeing it [inaudible 00:16:01] and that’s the whole point of us getting in there and doing that and seeing it. We want to have an idea. We have several properties in the area so we have an idea of the property in different searches that we’ve done. Why don’t we do this? I mean, you’re not even ready to sell until July. So, I’m assuming I’m not-

Speaker 2:
Never say that. Never say that. I get it. He wants to build rapport. He’s pulling back. You don’t even want to sell it until July. I get it. But I don’t like just confirming all of these things. So that they can’t make a decision. Oh, it sounds like you’re not ready to make a decision. Right? All these things. There’s certain pullbacks that I like, certain that I don’t.

Jeremy:
I’m speaking with Dolores? Who am I speaking with?

Mark:
No. She passed away. That was my mom.

Jeremy:
Okay. Okay. Okay. And your name is?

Mark:
I’m Mark. Same last name as [inaudible 00:16:58].

Jeremy:
Okay Mark. My name is Jeremy, I’m with Offer Arizona. I welcome you to visit our website, offerarizona.com. We would love to work with you. Again, like I told you an idea of about 150, 200,000. I mean, if that sounds good. But you’re renting right now, so why don’t we do this. What if I maybe get you our email with the contact information and [inaudible 00:17:27].

Mark:
Right. Right.

Jeremy:
Get in there and check it out.

Mark:
Okay

Jeremy:
Let us know.

Speaker 2:
I mean, he’s just rambling at this point. He needs to get going. He needs to make the pass off. “Hey, I’m going to have our specialist, Julie or specialist Caesar reach out to you and they’re going to take care of you. Really appreciate the conversation. Do you have any idea on the price? I mean the last time you checked, what was it worth back then?”
I just want to pull something out of here. So we’ve got the condition, nothing’s been done to it. It’s been a rental. We’ve got their timeline. He wants to make a decision in July. We’ve got the motivation. It’s an inherited property and they live out of town and we’ve got no price. That’s the last one. It’s the toughest one to get. That’s why I like digging in, digging in, digging in, digging in different ways. If you don’t ask four or five different ways… Four minimum different ways to get the price, then you’re going to have to throw something out. And he threw it out early, which is one tactic. It’s probably something that I would have done as well, just because he had no idea in this specific situation. It’s elite for sure. We’re following up with this.

Jeremy:
It’s T-C-R com.

Speaker 2:
Anyway. The rest of it is just info gathering. But listen, it’s not that hard. This business is not that hard. That was a four minute conversation. He did some good things. He was getting some of the four pillars. It’s now in my sales team’s hands. And they’re going to determine if this is somebody that’s going to do business with us or not. So he’s turning it over to the pros. The cold call, the phone prospector, the first call is typically just to break the ice. Just to see if they are; yes, they would consider an offer, maybe they would consider an offer in the future. One of those two, that’s what you’re listening for. And you want to pull those in. And remember when you call somebody and you ask them, “Would you consider an offer on your property?” They only have six responses.
“Yes,” “No,” “Maybe in the future,” “How much will you give me?” “How’d you get my number?” And, “Who are you?” One of those six responses. That’s what you’re going to get every single time. Have a response to those responses. And if you’re looking to take your business to the next level, then you need to join the most proactive group in real estate investing. It is the TTP program. Go to TTP tribe. T-R-I-B-E dot com, and check it out. Sign up for a call. It’ll either be with me or my right hand guy. It’ll be the best 45 minute call of your life. Until next time guys, love you. It’s not hard. You’ve got this. See you.

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