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 on which the caller needs to improve. You’ll learn so many amazing techniques and insights in this episode, so don’t miss it for the world!
Live Cold Call Review! Brent Puts TTP Student Call Under the Microscope
If 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 here to give you another pro tip and this is going to sound crazy. 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 it’s going to put you on another level when it comes to communicating because you can hear how you sound and how you enunciate words, which is important when you’re communicating with distressed property owners.
This is not one of my personal professional cold callers that calls for my wholesaling company. This is one of my students. This student has just started and is getting his legs, feeling it out. He asked great questions. I want to clean up a few of his calls so that he feels more comfortable and more certain. It’s phenomenal. Let’s check this out.
“I am looking for the owner of 201 Concord Lane.”
The reason that he asked for the owner of the property at this address is that she has a unique name. When you have a unique name, ask, “I’m looking for the owner of the property of,” then give the address and then it’ll start the conversation.
“My name is Taylor and I know this call’s out of the blue but I wanted to see if you’d considered an offer on your property there.” “I could consider an offer.”
This is unique. The reason that I selected this recording out of the hundreds of recordings that I listen to monthly is that this is common that you run across an owner of a property that owns multiple properties. 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.
When you’re starting out, you feel like, “I’ve got this person that wants to sell 10, 12, 15 properties.” That’s only if they get the right price. Unless the properties are in bad condition, they are not going to sell at a discount. They want a cash offer to move these properties so that they don’t have to deal with them anymore. After a 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.
“Great. Is it free?”
He’s going through a script. He’s like, “She said yes and she wants to consider an offer. It was fast. What do I do now?” He’s going back to the TTP script, which is the most proven script ever for cold calling distressed property owners. Make sure that you have it up in front of you so that you’re not shuffling. 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. We need to clean that up.
“Homeowners in the past have wanted to know what the prospect is, how much they’ll get and when they’ll get it.”
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 and the process.” It’s interesting to set that up that way so that she feels like, “Other sellers are doing that so I should too.”
“For me to see if this is a house that we’re interested in buying, I’ll have to ask.”
Make sure your client feels comfortable speaking with you.
Simultaneously, he’s pulling back, “We have to see if this is a house that we’re interested in buying. It has to make sense to you.” “Okay, great.” “If it doesn’t, are we going to be okay with that?” “Yes, we will.” “Is that fair?” “That’s fair.”
“A few questions about the condition. Is that okay?” “That’s okay.” “If at any point you feel like we’re not a good fit, I want you to know, it’s okay to say no. I’ll do the same. Is that fair?”
You’re pulling away. You’re not chasing and trying to convince them that they should take your offer. You’re saying, “If it’s fair for you and it’s fair for me, it’ll all work out. If not, it’s okay to say no.”
“That’s fair.” “Good. How’s your morning going so far?” “It’s okay.”
Now he’s throwing a little curveball in. Now it’s a little bit like, “Did I build enough rapport to ask the questions that I want to ask?” 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. Don’t try to throw stuff in there that is normal in other conversations but not necessarily normal when you’re talking to a stranger on the phone.
Now he has to restart.
“I didn’t get your first name. My name is Taylor.”
He’s trying to build that rapport two times in a row, “How’s your day going so far? I didn’t get your first name.” He knows that it’s an awkward name. He’s trying to see if there’s some shortened version of her name that makes it easier so that he can pepper that into the conversation. When you hear your own name, it’s the most beautiful sound in the world or so they say.
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 rather he keep going and ask about the condition of the property, which he already got the permission to do.
“Besides getting the right price, what’s another reason that you’re considering selling?”
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?” It opens it up. Read what she says.
“It’s 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. 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. Sometimes, after years and years of dealing with it some people don’t want to deal with it anymore. 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. He goes so far as to say this in this call. It’s amazing.
“What do you think that the house is worth in nowaday’s market?”
Go with the condition. When you talk, the easiest question to ask is about the condition of the property. That opens up the conversation so that you can ask those bigger questions like, “What price do you want?” He’s jumping right to the price without finding out more about the condition of the property. I get it. He’s feeling it out, getting a sense of what she wants for the property. 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. Stay on that path.
“At least $95,000.”
Too much time. Too much pausing. You can write down stuff. You can remember stuff. It’s amazing. This is 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. You would see I’m taking notes and I’m writing. 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 going to grill them on every single thing. You haven’t built up enough of a relationship to be able to do that. You are not an attorney. You are not a doctor. You are getting on the phone to see if there is a serious problem here that you can solve. Keep the conversation rolling.
“As-is or it’s all fixed up.”It would be as-is, yes. I updated the kitchen at some point.”
She’s giving him the condition of the property without prompting. What naturally happens in our brain is we go, “I have to ask about the condition. I got to ask about the kitchen and bathrooms and whether they’ve been remodeled.” She already told him. Remember, when you cause friction in a conversation, that reduces your chance that people are going to like and trust you. You need both of those things to be able to get the paperwork, the agreements signed.
Remember every time that they respond with something, you want to confirm and approve, “That’s great, you did remodel the kitchen. Are you talking about the cabinets, the countertops, the appliances, everything? Are you talking about you refreshing it with a little bit of paint?” Confirm, approve and ask a question.
“How did you come up with that number?”
She was talking about the condition of the property and then he asked back about the price. Stay on the condition. Let it breathe a little bit. Stop asking the same question over and over, it’s going to cause that friction we talked about.
“The property management stuff. Similar houses sold for about $107,000.”
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% or 60% of that value? They’re putting it in your brain. They’re selling you on the fact that it’s worth $107,000 in this case but she would take $95,000.
“Okay. Tell me a little bit about the condition of the house, the last time that the kitchen and bathroom have been remodeled.”
Investors that own multiple properties are not looking for the deal of their lifetime.
See how he asked the same question that she already answered. There’s a system to this. You want to go condition, timeline, motivation and price. That is the flow of these conversations so that you can see if they can use you, if you’re valuable in their life to help them out of the situation that they’re in.
“It’s probably more years ago. I don’t know when things have been remodeled the one that you said. It’s in decent condition. More than updated condition.” “For a rental, you don’t want it to be that nice anyway.”
He’s planting the seed a little bit. “As a rental, you don’t need it to be that nice.” Maybe if somebody wanted to live there, it would have to be nicer. You’d have to invest more into that, update it and make it look great if you were to sell it for the most that you can get for that. I don’t mind that. That’s clever and something that you can use, for sure.
“Rental properties, you don’t need them totally upgraded or updated, do you?” “No, I don’t.” “Would you say it’s in a regular average rental condition?” “Yes.” “If you were to remodel this to get the top price, how much do you think that you would spend to be able to remodel it?” You’re trying to pull back those numbers. “If it’s redone, what do you think it sells for?” 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 or the deal of a lifetime. They think that the market’s finally at the point where people are paying the over-market value for any properties and this is the time to sell. That’s what she’s looking for here.
This is something that I see common with people especially starting to build momentum in their business, they’re getting these conversations under their belt. They haven’t talked to over one thousand property owners yet. They get excited about investors that own multiple properties but 99% of the time, it doesn’t work out because they want retail or more because they are savvy. 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. It is festering. It is infected. It needs to be removed. It needs to be medicated. It needs to be done.
“What about the roof? Do you know how old that is?” “It’s not a house. It’s more of a condo. The unit is a condo.”
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. He made the mistake of thinking this was a single-family house and it’s a condo. He has to find out a ton of other questions about this. How much is the homeowners’ association?
If you’re not familiar with townhouses and condos, there is an association fee anywhere from $150 to thousands. Typically, it’s about that $250 to $350 range that takes care of the roof, the exterior maintenance, the common area maintenance, the pools, the tennis courts, the landscaping and all those things in that fee. That is going to affect cashflow if you’re going to sell it to a rental portfolio buyer.
It affects being able to flip that property because people have to take into account their monthly payment that $150 to $350. She says it’s $395 here for this condo later in this conversation, which affects the cashflow. He does ask once she gets in rent and she says $1,400. He does ask what her bottom line is and 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. In my experience, most portfolio buyers are wanting to buy 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. Savvy investors are looking to buy single-family as opposed to townhouses and condos in some areas.
In some areas, they’re great and 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. You have to find out from your cash buyers what they are looking for and you should segment out the people that are going to be townhouse and condo buyers. You don’t want to be sending a bunch of townhouses and condos to people that only buy single-family or multifamily units.
“How much are the HOA fees?”
Now she has to remember, go through it and think about it. That pause is telling me this woman owns a lot of properties. If she only owned 1 or 2, 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.
“How much is the HOA fee or the maintenance fee?” “$395.” “How much do you get for rent?” “$1,400.”
Is your tenant in there month-to-month? Is it a long-term lease? That’s the next question. 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? Is it a long-term lease? These people might be on a lease that’s for the next two years.
Now you’ve got a lease locked in at $1,400 with tenants that you have not vetted out and you’re trying to sell that to a cash buyer and say, “They seem to be good tenants.” You don’t know if they’re family members or somebody that pays late every single month. You don’t know if it’s somebody that got laid off recently. You need to find out a little bit more. Find out at least if it’s month-to-month or a long-term lease.
Savvy investors are looking to buy single-family homes as opposed to townhouses and condos in some areas.
If it’s month-to-month, depending on what state you’re at, check with a title company attorney. Find out how much notice you need to give them to get out of the property. 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. You need to know at what point will this property be vacant.
“It looks like it’s a 2-bed, 2-bath and about 1,000 square feet.” “Yes.”
He got that information by clicking the Zillow button. It’s either he did it before and didn’t realize or maybe the map was off on Zillow so that he didn’t realize it was a townhouse instead of a single-family. He knows it’s a 2-2, 2-bedroom, 2-bath and 1,000 square feet.
“If you were going to give it on a scale from 1 to 10, 10 being the nicest, how great is it?”
If you asked the question, “On a scale of 1 to 10, what’s the condition of the property?” Eighty-five percent of the time they’re going to tell you seven. Trust me, I’ve tested this. I’ve done this a lot of times because I wanted to see if somebody would say 1 or 2 and then I’d get excited. I don’t care if it’s a quarter house or a burnt house, 85% of the time they say 7 out of 10.
“I’d say seven.” “That sounds great. If we were able to agree on a price, how soon would you be looking to sell?”
This is a great question, “If we were to agree on a price, how soon would you want to sell?”
“As soon as possible.”
That is a phenomenal question because the timeline dictates the speed at which you can get that agreement signed. Here’s the thing, time kills all deals. If they tell you 3, 6 or 9 months, guess how many other offers they’re going to get in that time? Many. You want to shorten that timeline as much as possible. That was a brilliant question. I love it.
“Are you the sole decision-maker on the property? Do you have to discuss this with anybody else?” “I usually do my stuff really good.”
I go back and forth on this question because I don’t know if an initial conversation is the right one. Do you want to make sure that all the decision-makers are there? Yes. The 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?”
Asking some of these other questions besides, “Are you the sole decision-maker,” sounds formal and planned. 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, “Is there anybody else that would have to review the offer?” How about that?
In conclusion, he gets her down to $90,000. There’s too much pausing. There’s too much note-taking. It should flow more. He did some good active listening with a-ha, great, sure. He can use more of that to make sure that she understands that he is listening as opposed to pausing to write down. I get it. When we start, we’re going to be wanting to make sure that we’re writing everything down and it’s not on the top of our brain what to ask next. We’re excited because we’re talking to somebody that’s being nice to us.
What I would say is practice, roleplay and understand that all of the conversations come down to four things, condition of the property, timeline to sell, their motivation to sell and their price. Remember that motivation is also the problem that they have. Those are what all your questions come back to. If you start with the condition, it’ll open it up. You can understand if this is a property that needs significant rehab, is dated or if it’s upgraded.
If it’s upgraded, the likelihood that they’re going to sell at a discount is low. What you’re looking for are older properties that need some love. Filter down all your lists to your distress lists. Remember 6% 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.
For being in this thing for a few weeks, from starting from nothing, no background, never made a cold call ever, I’m proud of Taylor and his progress here. He has asked some great questions. Not only that but he’s texting me daily. He’s keeping me updated. He’s involved. He’s obsessed with being good at this. I know that he’s going to crush it. He’s got to clean up a little bit of the pauses, get a little bit more certain and start opening up the conversation with the condition.
If this sounds like you take these tips and start implementing them into your business, you can change your financial future 100% by finding discounted properties. About 1,700 millionaires became millionaires in the United States. When is it your turn? If you are interested in joining the most proactive group in real estate investing, it is the TTP family, go to WholesalingInc.com/ttp. 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. Go out there and talk to people.
About Brent Daniels
Brent 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!