Posted on: September 08, 2020

Ever wonder what an actual conversation with a prospect over the phone sounds like? Wonder no more! In this episode, you’ll hear a live cold call review by no other than Mr. TTP himself, Brent Daniels!

Listen in as Brent dissected an actual cold call and pointed out things the caller is doing right and areas caller needs to improve on. You’ll learn so many amazing techniques and insights in this episode, so don’t miss it for the world!

Key Takeaways

  • One fast way to improve your phone skills
  • Proven way to increase your communication skills
  • What to do if the owner of the property has a unique name
  • Why it’s not recommended to chase sellers
  • The easiest question to ask so you can ask the bigger questions
  • Why it’s important to ask about the condition of the property
  • Why it’s important to confirm and approve
  • What the flow of the conversation should be like
  • Why you need to know when the property is going to be vacant
  • Why you need to shorten the timeline to sell as much as possible
  • What all conversations come down to

RESOURCES:

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Episode Transcription

Speaker 4:
You can record your calls in your state, if it’s a one party state, I highly suggest you do it because it is one of the fastest ways to improve your skills on the phone.
I’m [inaudible 00:01:11] to give you another pro tip and this is going to sound absolutely crazy, but to increase your communication skills, I suggest that three times a week you read out loud from a book for 30 minutes. It might sound crazy, but I’m telling you, it is going to take you on another … it’s going to put you on another level when it comes to communicating. Because you can hear how you sound and how you pronunciate words, which is really, really important when you’re communicating with distressed property owners.
Now, this is not one of my personal professional cold callers that calls for my wholesaling company. This is actually one of my students. And this student has just started a couple months ago and is just kind of getting his legs, feeling it out. But he asked really, really great questions. I want to clean up a little bit of his calls so that he feels more comfortable and more certain, but I think it’s absolutely phenomenal. So let’s check this out.

Taylor:
I am looking for the owner of 201 Concord Lane.

Speaker 4:
Now, the reason that he asked for the owner of the property at this address is because she has a really, really unique name. When you have a really unique name, just ask, “I’m looking for the owner of the property of …” and then give the address and then it’ll start the conversation off.

Taylor:
My name’s Taylor, and I know this call’s out of the blue, but how would it be if you considered an offer on your property there.

Speaker 3:
I could consider an offer, but ..

Speaker 4:
Now this is really unique. The reason that I selected this recording out of the hundreds of recordings that I listen to on a monthly basis is because this is very common that you run across a owner of a property that owns multiple properties. Now here’s the thing. This can be quicksand because a lot of these people are savvy and a lot of them don’t want to sell at a discount, but almost all of them are open to an offer. So when you’re starting out, you feel like, “Oh my gosh, I’ve got this person that wants to sell 10, 12, 15 properties.” But that’s only if they get the right price. Typically, unless the properties are really, really, really bad condition, they are not going to sell at a discount. They just want a cash offer to move these properties so that they don’t have to deal with them anymore. Because after time they do become tired landlords and they do want to do something, but they want to get retail value out of it. Let’s see how Taylor handles it.

Taylor:
Well, great. Well, typically …

Speaker 4:
You hear that? He’s going through a script, he’s going through a script. He’s like, “Oh my gosh. She said, yes. She said, yes, she wants to consider an offer. It was so fast. What do I do now?” And he’s going back to the TTP script, which is the most proven script ever for cold calling distressed-property owners, but make sure that you have it up in front of you so that you’re not shuffling and make sure that you’re practicing it and role playing it so that if somebody says yes, you know right what to say right after, because there’s a weird, awkward pause there. So we need to clean that up.

Taylor:
Homeowners that in the past have wanted to know what the prospect is, how much they’ll get, and when they’ll get it.

Speaker 4:
See how he’s pulling in. He’s pulling her towards him saying most of the sellers that I worked with in the past, or that I’ve talked to in the past, this is what they want. They want to know how much money they’re going to get. They want to know how they’re going to get it. They want to know the process. It’s really interesting to set that up that way so that she feels like, “Oh, well I guess other sellers are doing that. So I should too.”

Taylor:
And for me to see if this is a house that we’re interested in buying, I’ll have to ask a …

Speaker 4:
Simultaneously he’s pulling back. We have to see if this is a house that we’re interested in buying. Right. And it has to make sense to you. Right, Seller? Yeah. Okay, great. And if it doesn’t, are we going to be okay with that? Yes we will. Is that fair? That’s fair. Watch.

Taylor:
… a few questions about the condition. Is that okay?

Speaker 3:
That’s okay.

Taylor:
Okay. And if at any point you feel like we’re not a good fit. I just want you to know, it’s okay to say, “No.” And I’ll do the same. Is that fair?

Speaker 4:
So you’re pulling away. You’re not chasing, chasing, chasing, chasing, trying to convince them that they should take your offer. You’re saying, “Hey, listen, if it’s fair for you and it’s fair for me, it’ll all work out. But if not, it’s okay to say no.”

Speaker 3:
That’s fair.

Taylor:
Okay, good. How’s your morning going so far?

Speaker 3:
It’s okay.

Speaker 1:
Now he’s throwing a little curve ball in. Now, he’s a little bit, did I build enough rapport to ask the questions that I want to ask, but he already did. He already got permission to ask about the condition of the property. Don’t just throw things in there to try to warm up the conversation. You warm up the conversation through your tone of voice and the questions that you ask. Okay. Don’t try to just throw stuff in there that is normal in other conversations, but not necessarily normal when you’re talking to a stranger on the phone.

Taylor:
Um, so, I’m sorry …

Speaker 1:
See how he has to restart.

Taylor:
I didn’t get your first name.

Speaker 3:
[inaudible 00:06:02].

Taylor:
[inaudible 00:06:06] , okay. [inaudible 00:06:07] again.

Speaker 4:
It’s trying to build that rapport two times in a row. How’s your day going so far and I didn’t get your first name. He knows that it’s an awkward name. He’s trying to see if there’s some sort of shortened version of her name that makes it easier so that he can pepper that into the conversation so that, when you hear your own name, it’s the most beautiful sound in the world. Or so they say, and he’s trying to use that a little bit to get in there and make sure that she feels comfortable speaking with him for as long as he needs to be able to see if this is somebody that’s going to do business with him.
It’s okay. I don’t necessarily disagree with it, but I would have just rather, he just keep going and asked about the condition of the property, which he already got the permission to do.

Taylor:
So, besides getting the right price, what’s another reason that you’re considering sellingn?

Speaker 4:
This is a great question. I love this question from Taylor. Besides the price, what is the reason, what’s the motivation for you to be selling? That opens it up. It lets you know. Watch what she says.

Speaker 3:
Because I manage the properties and I don’t really want to do it anymore.

Speaker 4:
“Because I manage the properties and I don’t want to do it anymore.” This is a classic tired landlord response. This is phenomenal.
Now you know that there is a problem that she’s dealing with. Now, how big of a problem is it in her life? How stressful, how much anxiety does it bring her? How much time does it take to make sure that these properties are in good working condition, that their tenants are paying on time, that they’re making their payments to the bank on time, all these things factor in. Do they need to do improvements? Do they need to paint it? Is the lease coming up. All these things caused stress. And sometimes after years and years, and years and years of dealing with it, some people just don’t want to deal with it anymore.
But you have to see if the stress of what they’re feeling, outweighs their price. Remember when we are looking for opportunities, the people that we work with will trade equity in their property for speed and convenience. And he goes so far as to actually say this in this call. It’s amazing.

Taylor:
And then, [inaudible 00:08:13], what do you think that the house is worth in today’s market?

Speaker 4:
The “I would go with the condition, go with the condition, go with the condition.” Listen, when you talk, the easiest question to ask is about the condition of the property, okay. And that opens up the conversation so that you can ask those bigger questions. Like what price do you want? But he’s jumping right to the price without finding out more about the condition of the property. And I get it. He’s kind of feeling it out, kind of getting a sense of what she wants for the property. And, and I would prefer a little bit more. He already asked if he could talk about the condition of the property, to see if it was the right fit. So stay on that, stay on that path.

Speaker 3:
At least 95.

Taylor:
At least 95. Okay. Okay.

Speaker 4:
Too much time. Too much pausing. Go, go, go. You can write down stuff. You can sit and remember stuff, you can go …
I mean, it’s just amazing. This is, and this is just a little side note, these are the notes sheets that I would use on the actual calls. I pulled these out of my desk drawer. And it’s still lead sheets from years ago, but you would see I’m taking notes, I’m writing.
But I would not stop the conversation. I would not hold up the conversation while I’m taking notes. It sounds too professional. It sounds too put together. It doesn’t sound like you’re somebody, that’s a local real estate investor in the area that’s looking for a property to buy. You sound like you are either working for somebody or you’re really going to grill them on every single thing. And you haven’t built up enough of a relationship to be able to do that. Okay? You are not an attorney. You are not a doctor. You were getting on the phone to see if there is a serious problem here that you can solve. So keep the conversation rolling

Taylor:
As-is? Or it’s all fixed up.

Speaker 3:
It would be as-is, yes. I mean, I think I updated the kitchens at some point.

Speaker 4:
Now she’s giving him the condition of the property without him prompting. And when that happens, what naturally happens in our brain is we go, “Oh yeah, I have to ask about the condition. I got to ask about the kitchen and bathrooms and whether they’ve been remodeled.” And she already told him.
Remember, when you cause friction in a conversation, that reduces your chance that people are going to like you and trust you. You need both of those things to be able to get the paperwork, the agreements, signed. Okay. So stay …
Remember every time that they respond with something you want to confirm and approve, confirm and approve. “Aw, that’s great. You did remodel the kitchen. Are you talking about the cabinets and the countertops, the appliances, everything? or are you just talking about you just kind of refresh it with a little bit of paint.” Right? Confirm, approve. Ask a question. Confirm, approve, ask a question.

Taylor:
[inaudible 00:11:07] Okay. And how did you come up with that number?

Speaker 3:
Well, I know …

Speaker 4:
She was just talking about the condition, the condition of the property, and then he asked back to the price. Stay on the condition, let it breathe a little bit. Stop asking the same question over and over and over. It’s going to cause that friction, we talked about.

Speaker 3:
Market [inaudible 00:11:34] I look at property management stuff, and other houses, similar houses sold for about 107.

Speaker 4:
So when this seller, when this owner of a property is telling you about the comparables in the area, what is the likelihood that they’re going to sell at 40, 50, 60% of that value? They’re putting it in your brain. They’re selling you on the fact that it’s worth 107 in this case, but she would take 95. Right?

Taylor:
[inaudible 00:12:06] okay, great.

Speaker 4:
I like how he, “Okay, great.”

Taylor:
Well, tell me a little bit about the condition of the house. Like the last time that the kitchen and bathroom have been remodeled.

Speaker 4:
See how we just asked the same question that she already answered. It’s because he’s just not … There’s a system to this. You want to go, Condition, Timeline, Motivation, Price … Condition, Timeline, Motivation, Price. That is the flow of these conversations, so that you can see if they can actually use you, if you’re actually valuable in their life to help them out of the situation that they’re in.

Speaker 3:
Probably more, I would say, than five years ago. And I don’t know when things have been remodeled. [inaudible 00:13:04] that you said, but it’s in a decent condition, not modern updated condition.

Taylor:
Well, for a rental, you really don’t need it to be that nice anyway, right? [crosstalk 00:13:11] Okay.

Speaker 4:
So, he’s planting the seed a little bit. “Aw, as a rental you really don’t need it to be that nice.” Maybe saying, maybe if somebody wanted to live there, it would have to be nicer. Right. And you’d have to invest more into that update and really make it look great. If you were to actually sell it for the most that you can get for that.
So I don’t mind that. I think that that’s really clever and something that you can use for sure, “Oh, okay. Well, you know, rental properties, you know, you don’t need them totally, you know, upgraded or updated. Do you?” No, I don’t. “So would you say it’s in just a regular average rental condition?” Yeah. If you were to totally remodel this, to get the top, top, top price, how much do you think that you would spend to be able to remodel it? You know, and then you’re trying to pull back those numbers, pull back, and then if it’s totally re-done, what do you think it sells for? You know what I mean?
Now you’re trying to see realistically where they’re at. Are they expecting to get over-market-value for these properties that are in rental conditions? A lot of times investors that own multiple properties do. They want somebody to come in and give them the opportunity of a lifetime, the deal of a lifetime. They think that the market’s finally, finally, finally, at the point where people are paying over-market-value for any properties, and this is the time to sell.
That’s what she’s really looking for here. And this is something that I see very common with people that, especially just starting to build momentum in their business, they’re getting these conversations under their belt. They haven’t talked to over a thousand property owners yet. And they get really, really, really excited about investors that own multiple properties.
But I’m telling you 99% of the time, it doesn’t work out because they want retail or more, because they are savvy, because they don’t need to sell. It’s a convenience. It’s not something that is going to change their lives forever. We are looking for people that want to get rid of properties because it’ll change their lives forever. It is the thorn in their side for years and years and years. And it is festering and it is infected and it needs to be removed and it needs to be medicated and it needs to be done.

Taylor:
Well, what about the roof? You know how old that is?

Speaker 3:
It’s really not a house, sir. It’s really more of a condo, the unit is a condo.

Speaker 4:
So, listen to me, if you’re using a dialer that has the Zillow button, click that Zillow button and hope that it pops up and shows you what this property is. Because he just made the mistake of thinking this was a single-family house and it’s a condo.
So now he has to find out a whole other … he has to find out a ton of other questions about this, right? How much does the homeowners’ association, if you’re not familiar with townhouses and condos, there is an association fee, anywhere from 150 to thousands. But typically it’s about that 250 to 350 range that takes care of the roof, the exterior maintenance, the [inaudible 00:16:12] , the common area, maintenance, the pools, the tennis courts, the landscaping, all those things in that fee.
Now that obviously is going to affect cashflow, if you’re going to sell it to a rental portfolio buyer. And it definitely affects being able to flip that property, because people have to take into account on their monthly payment that 150 to 350. She says it’s 395 here for this condo, later in this conversation, which definitely affects the cashflow. Now he does ask once she gets in rent, she says 1400. He does ask what her bottom line is. She says 90,000. These are all great things.
Is there a potential that this could be a deal? Maybe if he can get her down a little bit and sell it to a portfolio buyer. But in my experience, most portfolio buyers are wanting to buy a single-family properties because they don’t want to deal with an HOA. They don’t want to deal with losing $400 a month that doesn’t necessarily build any equity in their property as it would in a single family residence.
Think about it. If you are paying $400 more towards debt on a loan, on a single-family house that pays off that debt, the debt buy-down goes way down. When you have an HOA, you don’t get any of that equity. So really savvy investors are looking to buy single-family as opposed to townhouses and condos in some areas.
Now, in some areas, they’re great. People love them because they’re low maintenance. They don’t have to worry about the outside. They don’t have to pay a landscaper. They don’t have to worry about the roof. And so you just have to find out from your cash buyers, what they are looking for and you should definitely, definitely, definitely segment out the people that are going to be townhouse and condo buyers. Because you don’t want to be sending a bunch of townhouses and condos to people that only buy single-family or multifamily units.
Got it? Good.

Taylor:
Oh, okay. So how much are the HOA fees?

Speaker 3:
I’m sorry, how much is what?

Taylor:
The maintenance fee or HOA fee?

Speaker 4:
See now she has to remember, now she has to go through it, and now she has to think about it. What this is telling me … that pause right there, is telling me this woman owns a lot of properties. Okay. This woman doesn’t even know off the top of her head … If she only owned one or two, she would know what that HOA fee is. She’s thinking about it. She’s going through the files in her brain and figuring out how much is this homeowner’s association.

Speaker 3:
I’m sorry. I got another call. I can’t hear you.

Taylor:
How much is the HOA fee or the maintenance fee?

Speaker 3:
Oh. 395. 395.

Taylor:
Okay. Okay. Okay, great. And how much do you get for rent?

Speaker 3:
1400.

Taylor:
Okay.

Speaker 4:
Now, is your tenant in there month to month? Or is it a longterm lease? That’s the next question. Okay. Anytime you’re asking about the rent and what they’re getting and how long have they been there, is it a month to month? Or is it a longterm lease? These people might be on a lease that’s for the next two years.
So now you’ve got a lease locked in at 1400, with tenants that you have not vetted out. And you’re trying to sell that to a cash buyer and say, “Hey, they seem to be good tenants.” Right? You don’t know. You don’t know if they’re family members. You don’t know if it’s somebody that pays late every single month. You don’t know if it’s somebody that got laid off recently, right? So you need to find out a little bit more, find out at least if it’s month to month or a longterm lease.
If it’s month to month, typically, depending on what state you’re at and check your check with an attorney or check with a title company, attorney, or whatever, find out how much notice you need to give them to get out of the property. Because if it does need repairs, you need it to be vacant. If you do want to get the most for rent, or if you want to flip it, it needs to be vacant so that you can update it. So you need to know at what point will this property be vacant.

Taylor:
And it looks like it’s a two-bed, two-bath, about 1000 square foot.

Speaker 3:
Yes.

Taylor:
Okay.

Speaker 1:
And he got that information by clicking the Zillow button, either he did it before and didn’t really realize, or maybe the map was off on Zillow so that he didn’t realize it was a townhouse instead of a single-family. But he knows it’s a two-tow, two-bedroom, two-bath, a thousand square feet.

Taylor:
If you were going to give it, on a scale from one to 10, [inaudible 00:20:39] .

Speaker 4:
Listen to me. If you asked the question on a scale of one to 10, what the condition of the property is? 85% of the time they’re going to tell you sever. 85%. Trust me. I’ve done it. I’ve tested this. I’ve done this a lot of times, because I really wanted to see if somebody would say one or two and then I’d get real excited. Every time I don’t care if it’s a hoarder house, if it’s a burn house, if it’s whatever, they say, seven out of 10. 85% of the time, they say seven out of 10.

Speaker 3:
I’d say seven.

Taylor:
Okay. That sounds all right. And if we were able to agree on price, how soon would you be looking to sell?

Speaker 4:
This is a great question. If we were to agree on price, how soon would you want to sell?

Speaker 3:
As soon as possible.

Speaker 4:
“As soon as possible.” I am telling you, that is a phenomenal, phenomenal, question because the timeline dictates the speed at which you can get that agreement signed. And here’s the thing. Time kills all deals. If they tell you three months, six months, nine months, guess how many other offers they’re going to get in that time? So many. You want to shorten that timeline as much as possible. That was a brilliant question. I love it.

Taylor:
All right. As soon as possible. And are you the sole decision maker on the property, or you have to discuss this anybody else?

Speaker 3:
Well, I usually do, but we need [inaudible 00:00:22:16].

Speaker 4:
“Are you the sole decision maker …?” Eh, I go back and forth on this. I really do. I go back and forth on this question, because I don’t know if an initial conversation is the right one.
Now, do you want to make sure that all the decision makers are there? Yes. I just … decision-maker verbiage, to me, sounds aggressive. “Is there anybody else that you need to talk to about the property before you sell it? Is there anybody else that has given you an offer on the property? Have you discussed it? Have you sat down with anybody? Have you done any …”
You know, asking some of these other questions, besides are you the sole decision maker sounds very formal and very planned. You know what I mean? I want it to flow a little bit more. I want it to be a little bit more like you’re talking to somebody in a regular conversation, you know what I mean? “Is there anybody else that would have to review the offer?” How about that?

Taylor:
Oh, okay, okay, great. Okay, so looks like …

Speaker 4:
All right. So in conclusion, he gets her down to 90,000. I think that there’s too much pausing. There’s too much note taking. It should flow more. He did some really good active-listening with the, “aha … great … sure.” I think he can use more of that, to make sure that she understands that he is actually listening, as opposed to pausing to write down.
But I get it when we start out we’re going to be a little bit, wanting to make sure that we’re writing everything down and it’s not on the top of our brain, what to ask next. And we’re excited because we’re talking to somebody that’s actually being nice to us, right? But what I would say is practice, roleplay, understand that all of the conversation comes down to four things: Condition of the Property, Timeline to Sell, Their Motivation to Sell, and Their Price. Remember “motivation” is also the problem that they have.
Those are what all your questions come back to. And if you start with the condition, it’ll open it up. You can understand if this is a property that needs significant rehab or is dated or whatever else, or if it’s totally upgraded, if it’s totally upgraded, the likelihood that they’re going to sell at a discount is very, very, very, very low.
What you’re looking for is older properties that need some love. So definitely filter down all your lists to your distress lists. Remember six to 10% of your real estate market is in distress, filter it all the way down so that you have a higher likelihood of talking to motivated sellers.
So absolutely, for just being in this thing for a few weeks, from starting from nothing, no background, never made a cold call ever … I’m so proud of Taylor and his progress here, he has asked him really, really great questions. Not only that he’s texting me on a daily basis, he’s keeping me updated. He’s really involved. He’s obsessed with being good at this. And I know that he’s going to absolutely crush it. He’s just got to clean up a little bit of the pauses. Get a little bit more certain and start opening up the conversation with condition.
If this sounds like you take these tips and start implementing it into your business. You can change your financial future. 100% by finding discounted properties. 1700 millionaires were made today, became millionaires today in the United States. When is it your turn?
Who are interested in joining the most proactive group in real estate, investing it is the TTP family go to Wholesaling Inc dot com forward slash TTP. Scroll down, check it out. If it feels good in your gut, sign up for a call. I look forward to working with you personally. Until next time, I love you guys go out there and talk to people. See ya.

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