Posted on: June 23, 2020
WI 455 | Cold Calling

 

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 get 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!

Cold Calling Case Study – How to (Really) Talk to Motivated Sellers

Episode Transcription

Cold Calling Tips

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 is not that hard and scary. In this cold call breakdown, I want you to be focusing on a few things. First of all, how is his opening? Right off the bat, we want to sound like we are a neighbor. We do not want to sound like we are a telemarketer or customer service or that we are not into the conversation that it is almost like we are robotic. Look for the opening.

Next is to 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. Remember, when you are having a conversation with a distressed property owner, it is the easiest path if you start asking about the condition of the property. When they start rattling off that there have been no repairs, the place is a total junkyard, they are hoarders, its original condition from the 1940s, or whatever you want to listen to these things.

They are reducing the price on the phone live with you, 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. Every time that you are listening to one of these breakdowns or anytime that you hear somebody making calls, if you are fortunate to be around somebody that is making these calls, or having a conversation with a distressed property owner, you need to tune your mental antennas into condition, timeline, and motivation price.

Call Breakdown

Let’s get started here with the intro. We will break it all down and see how it did. I have listened to it a few times. There are some tips that I want to give him and tweak some of his call here. “Can I speak with Dolores?” “Who?” “I’m trying to get ahold of the property owner.” If you make a call and the person picks up and it is a man but you are asking for a woman and they are like, “Who? What is going on?” The next step is, “I’m looking for the property owner of the property at,” and then the address. That will open up the conversation a little bit more. You do not want to be like, “Are you her husband?” Do not get into any of their social connections or their relationship and just ask about the property.

“Jack’s Drive.” “That is in my family’s trust.” That can go both ways. What is going through your mind right now? Are you thinking, “They have it in a trust. They must be rich.” Are you saying, “It is in the trust. Maybe somebody passed away.” Those are the two things that go through my head whenever I hear that instantly, “Is this inherited? Maybe they own a lot of properties or they are a wealthy family.” “I’m a local home buyer here in the area. I wanted to see if you guys would maybe consider an offer on your property there.” “I would but we have got a renter in there. It is until July though.” Listen to the way he is peeling back to get the timeline. This is incredible.

When you’re having a call with a distressed property owner, tune your mental antennas into condition, timeline, motivation, and price.

“I’m with a local home buying company.” He is building some credibility here. I do not think that he needs to. He is about 65% mentally into this conversation. I need him at least, 90% and, hopefully, 100%. Maybe it was at the end of the day. This guy calls for eight hours a day. He talked to him at 6:30 PM. It was at the end. He is not into it. What I would say is shorten that up, get more into why he wants to sell it, get into those questions, or give them the features and benefits of the offer to let you know the way we work.

He gets into it but what I would have done there is, “Just so that you know, the way that we work is we buy properties completely in cash. There are no real estate commissions. We pay all of the closing costs. The best part is we buy it as is. You do not have to put another cent into the property. For an offer like that, how much would you take?” That is what I would be. That is where I would dive in there. I would try to pull out that price and see if I can get it out of them. He already seems like he is open. It sounds like he is having a good conversation. He is 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 is going because he is not stiff-arming and blocking every question that we are asking, I would try to get the price out of him. “In the area, we purchase properties with cash. We pay all the closing costs. No agents and commissions are involved. The best part is we will purchase your property as-is and you do not have to invest another cent into the property.”

Do you know what is beautiful about this? Anybody can do this. You can pick up the phone and you can call and you could be having this conversation. When that person says, “Yes, we are considering selling it but not until the tenants are out at the end of July and it is in the trust.” Let’s find out why it is in the trust. “We will close quickly with the cash. We will pay you guys out today. I know that you have got a tenant in there and everything. Have you guys done any remodeling to the kitchen or bathrooms in the last 5 or 10 years?” “Ten years ago, they did but nothing recently.” “Do you know what they did years ago?”

It is a 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 ten years?” He said, “Did you do any remodeling to the kitchen or bathrooms in the last 5 or 10 years?” I like what. It is an open-ended question. Let them answer. He went into it a little bit with the floors but he had to ask a second question there.

WI 455 | Cold Calling

Cold Calling: Remember, when you’re having a conversation with a distressed property owner, it’s best to start asking about the condition of the property first.

 

“I do not know how much has been done inside. I’m not familiar with that property.” “Is it a 3-bed, 3-bath, 1,500 square? Have thought of selling the property?” “We did. My mother passed away. We are using it as a rental right now.” It is 1 of 2 ways. Is this something that somebody has a ton of properties in the trust and they are protecting it? Is it somebody that they put into a trust because somebody passed away? The mom passed away a couple of years ago. They have kept it as a rental. They have not seen this property in a long time. They do not know what upgrades are going on here.

To me, this seems like a solid lead. I like this. I would dig in on this call and find out if he has any idea of what their expectations for price are. He has given me all this language that is putting up a smoke-screen that says, “I do not know anything about this property. There is no way that I can accurately tell you how much we want for it.” He is not doing it purposely. Property owners are not watching YouTube videos and going to seminars to learn how to get the most for their house when some people cold call them. It is not happening.

He does not know too much about this property. I need to get a little bit more information and throw out some numbers probably. If this property was above $150,000, we throw out 66% of the Zillow price. If it is $150,000 or below, it is 50% of the Zillow price. Those are some round numbers. You can use that as a general rule but comp every property so that you know you are getting a good deal.

“Let me ask you a question. If you had a cash offer today, knowing that we will purchase your property as is, pay all the closing costs, no agents involved, and no commission, what would you think about the property? What are your expectations as far as what you guys want to receive?” “I could not answer that because I do not know. We have not put a pencil on it. I have not looked at it. I was going to wait until the tenant is out of there so I can get in there, look at it, and put a value on it.”

It is exactly what I was talking about. He really doesn’t know. That is where we have to come in and feel it out and maybe throw in some numbers here and there. We do a lot of deals in this market in Northern Arizona. We do a lot of business in Phoenix as well. We throw out, “We are buying homes similar to yours and in similar condition for around this price.” If you are not, do not lie to them. Say, “It looks like your neighbors are selling homes similar to yours for around 66% or 50%.”

You don’t want to start a phone call by getting into the seller’s social connections or relationships. Just ask about the property.

Do not say that you are buying homes. They are going to catch you up in that lie. They are going to be like, “What addresses have you bought?” Do not play that game. “It looks like your neighbors that are in similar condition are selling for this price.” That is the pro tip here. If you are not buying properties, you are moving into a new market, or you have never done a deal before, do not lie. You are going to get caught.

“I do not know the property. I have my hands tied a little bit.” “I will ballpark a figure but we are thinking about maybe $150,000 or $200,000.” That is way too big of a range. The 66% was at $160,000 and he went $150,000. I want this at $150,000 to $160,000 and not $150,000 to $200,000. We are testing it out to see if he has a number in the back of his head that we can jog and get something out of it. “That is going off of properties that we bought similar to yours in the past. Also, take in mind that it might need some upgrades. You said you do not know too much of it. I do not know if that is maybe in the area that you were thinking of. That is more or less what we were thinking, $150,000 to $200,000 depending on the condition of it.”

Let me ask you this question. When any seller or property owner hears, “We can give you between $150,000 and $200,000,” what number do they hear? The $200,000. That is what they hear. That is now their bottom line, which is not what we want. We want it close to that $150,000. He is given a range because he wants to make them feel like, “Depending on the condition, once we go in there and we look at the condition and look at how much repairs need to be made, then we can backpedal to that $150,000.”

Zillow has this thing at $241,000. We can’t be at $200,000. Do not play that game. Do not play the, “Let’s get their hopes up,” and then bring them back down by walking through the condition of the property. We want motivated people. We want people that will trade their equity and their property for speed and convenience. By the way, this is only 3 minutes and 39 seconds into the call. The typical yes-leads that we get that get sent to my office are between 3 and 5 minutes. A 3 or 5-minute conversation could change your life.

You can find that deal that pays you $10,000, $20,000, $50,000, or $100,000. I’m not kidding. It happened time and time again. Go to our Testimonial page, it is bananas how big of a deal you can get from a 3 to a 5-minute conversation. I’m trying to give you all the tools and confidence that you need. More importantly, this is not rocket science. There are some things that he needs to clean up here. I get it, it was late in the day. It was not his best call but it is still a lead that gets to come into my professional acquisition managers that are incredible at breaking down and seeing if these people will do business with us. We are almost close to the end here.

WI 455 | Cold Calling

Cold Calling: Say that you’re buying a home similar to theirs for around this price. And, you really are, you’re not lying. If you do lie, they’re going to catch you up in that lie.

 

“If I can get that tenant to let me in to take a look and see the overall condition. Normally, you want to try to look at them before you make an offer, I assume.” “Not necessarily. We can honestly buy the property.” When people say, “You need to see my property before I get an offer,” that is putting an extra amount of time into making a decision here. We do not want that. Time kills all deals, it truly does. We need to get to it now. We want them to commit to our price.

We will send the contract via email signature. We use DocuSign. We will send it to him, get the commitment, let them go through the contract with them, and then get into the property. We can do most of the estimates for the rehab by looking at aerial shots from Google and Street Views from Google Maps and we run our numbers.

If something gets thrown, whether it is a foundation issue or some major thing, that could throw it off. Usually, they tell us if there is a major issue and we can adjust on the fly. We want to make sure that we do not have to organize with this guy to come into town, organize with him to meet with this tenant, organize to get there at that time, talk about the offer, and then go through it. This could take weeks. In that time, you 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 them, we have to meet.

“Without you seeing that, we can do rental for it. There is not a whole point of us staying there and doing that and seeing it. We know what is coming. We have several properties in the area. We have an idea of the property with the different searches that we have done. Why do not we do this? If you are not even ready to sell until July.” Never say that. I get it, he wants to build rapport. He is pulling back, “You do not even want to sell until July.” I do not like confirming all these things so that they can’t make a decision, “It sounds like you are not ready to make a decision.” All these things. There are certain pullbacks that I like and there are certain that I do not.

“I’m speaking with Dolores. Who am I speaking with?” “She passed away.” “Your name is?” “Mark, same last name.” “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. I told you more or less an idea of about $150,000 to $200,000. If that sounds good. You are not even ready right now. Why do not we do this? What if I mailed you an email with some contact information and credentials lined up? You can get it there and check it out. Let us know.”

Time kills all deals!

Wrap Up

He is rambling at this point. He needs to get going. He needs to make the pass, “I’m going to have our specialist Julie, or specialist Cesar reach out to you. They are going to take care of you. I appreciate the conversation. Do you have any idea of the price? The last time you checked, what was it worth back then?”

I want to pull something out of here. We have got the condition. Nothing has been done to it. It has been a rental. We have got their timeline. He wants to make a decision in July. We have got the motivation. It is an inherited property and they live out of town. We have got no price. That is the last one.

It is the toughest one to get. That is why I like digging in different ways. If you do not ask 4 or 5 different ways to get the price, 4 minimum, then you are going to have to throw something out. He threw it out early, which is one tactic. It is probably something that I would have done as well because he had no idea in this specific situation. It is a lead, for sure. We are following up with this. The rest of it is info gathering.

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 is now in my sales teams’ hands and they are going to determine if this is somebody that is going to do business with us or not. He is turning it over to the pros. The cold call, the phone prospector, the first call is to break the ice to see if they would consider an offer. Maybe they would consider an offer in the future. It is 1 of those 2. That is what you are listening for. You want to pull those in.

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 did you get my number, and who are you. With 1 of those 6 responses, that is what you are going to get every single time, have a response to those responses. If you are looking to take your business to the next level, you need to join the most proactive group in real estate investing, which is the TTP program. Go to TTPTribe.com and check it out. Sign up for a call, it will either be with me or my right-hand guy. It will be the best 45-minute call of your life. Until next time, I love you. It is not hard. You got this.

 

Important Links:

About Brent Daniels

483Brent Daniels is a multi-million dollar wholesaler in Phoenix, Arizona… and the creator of “Talk To People” — a simple, low cost, and incredibly effective telephone marketing program…

Also known as “TTP”… it helps wholesalers do more, bigger, and more profitable deals by replacing traditional paid advertising (postcards, yellow letters, bandit signs, and PPC) with being proactive and taking action every single day!

Brent has personally coached over 1,000 wholesalers enrolled in his “Cold Calling Mastery” training, and helped 10,000’s of others who listen to him host the Wholesaling Inc. podcast, watch his YouTube channel, and attend his live events…

A natural leader, Brent combines his passion for helping others with his high energy, “don’t-wait-around-for-business” attitude to help you CRUSH your wholesaling goals as quickly and easily as possible!

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