While many wholesalers have no problem generating leads, they find turning those leads into actual deals a bit too tricky. Why? They don’t know how to handle the leads that are coming in and when to do follow-ups.
Fortunately, in this episode, you’ll finally get the guidance you need from Wholesaling Inc.’s newest coach, Rafael Cortez. Come to think of it, without a robust process, leads can fall through the cracks and you can end up wasting a significant amount of time, money, and effort.
If you want to convert every lead to a lucrative deal, this is one episode you should not miss!
The Two-Step Process to Building a Wholesaling Lead Follow Up Machine
What do you do when the leads start coming in? Whenever you start marketing and your marketing gained some traction, you start seeing those leads come in. How do you handle them? How do you process them? This is one of the biggest things you have to consider every time you’re starting a marketing campaign.
How are you going to handle all those leads that come in? It’s a big question and it can be a big problem because if you don’t have a process behind it, the leads can fall through the cracks and you’re not going to know when the follow-ups are. You’re not going to be able to capitalize and monetize some of those leads as they come in. You’re going to be losing a ton of cash.
It’s super simple. We have a very basic way to screen the leads and process them until they turn into prospects. The first thing is to understand that there’s a difference between leads and prospects. A lead is somebody who wants to talk about an offer, but you don’t know if they qualify as a potential seller or if it’s a type of seller that we are looking for as wholesalers.
We are looking for people that we can come in and help and give them speed and convenience in exchange for equity. At the end of the day, that is exactly what we’re looking for. We’re exchanging speed and convenience for equity. A lot of the sellers that we’re going to be talking to do not fit that space. We’re talking about 3% of the population.
If you call 100 people, maybe 3% of those are going to be a fit for what you’re looking for and then a small percentage of all that number of people is going to turn into a prospect and somebody that you’re going to be doing a deal with. This is a volume game. We have to reach out to a lot of leads. We have to have a lot of conversations with sellers and you got to have a smart way of doing this as you’re going through your marketing process.
Two simple steps. One will be sourcing your sellers and the other one will be qualifying your sellers. In sourcing your sellers, you treat it in a very specific way and then you qualify yourselves through a different conversation in a different way. We’ll cover those and first is marketing. There are two ways to approach it. There’s going to be the fishing approach and then the hunting approach.
When you’re fishing, you’re throwing a line out there to see if somebody bites. You’re looking for fish. The line is out there. You just sit in there and then waiting for somebody to take a bite of the hook so you can reel him in. That’s one way of approach and the type of marketing that goes into the fishing part of it is a pay-per-click, radio, and direct mail. It’s stuff that’s very important and it puts together an overall wholesome approach to marketing. However, with that stuff, you’re not actively searching.
The second approach is hunting. Now you’re actively involved in getting out there and having those conversations with the sellers. The hunting approach is cold calling, driving for dollars, text messaging directly to sellers, and it’s always going to be the fastest way to get to that seller conversation. When you’re taking off on your marketing and starting off, you want to hunt for sellers instead of just fish for sellers.
Fishing is usually a little pricier. Hunting can be a lot cheaper, a lot more cost-effective, and it will also involve a lot more work. A lot more time from your part as you get going and then building that seller’s database, but it’s a very effective way of doing it. If you start talking to sellers right away, find a way to do it via cold calling or driving for dollars and putting yourself in front of the sellers. It’s going to be the fastest way to do it.
The first step in managing your sellers is going to be sourcing. When you’re sourcing, you’re looking for sellers. These are not leads yet. They’re just names and phone numbers with an address. You don’t know if they’re going to sell. You haven’t had the conversation yet to see if they’re going to be part of your seller’s database, if they’re interested in selling, and more importantly, if you’re able to provide a solution for them.
They haven’t even raised their hand yet. You just bought a list. You have a list, you need to cold call and reach out to your sourcing. If you’re driving around for dollars, you are sourcing. If you’re paying for pay-per-click, that’s part of your sourcing as well. It’s like a big bucket that you’re trying to fill up with sellers, and that’s going to be step number one. These are just names and numbers. They’re not leads yet. The entry point is the top of the funnel. You have to do that part of the way, or else you can’t get to the qualification part. After you source your sellers, you have to qualify them and turn them into leads. This is a completely different conversation.
This is where you’re going to spend time like you’re going to have a conversation with the seller about the situation, the condition of the house, where they’re at, and why they want to sell. It’s a discovery session. It’s like an interview, but you’re qualifying. You’re doing all kinds of stuff in this conversation to find out more information as to how you can come in, help them, and provide a solution for them. How can you bring them speed and convenience and find out if that’s what they’re looking for so you can exchange that for equity and make a profit on the sale of that contract?
If you want to start a marketing campaign, handling the leads is the most important thing to consider.
The qualifying part is where you’re going to be spending a lot of the time. When you’re sourcing the leads, this is a filtering stage, the place where you just have quick conversations, and you have a one-page cold calling script for a reason. You don’t want to spend too much time because you have thousands of people that you have to filter through to find out who will be a seller and who will raise their hand to talk about an offer.
When you’re sourcing, keep in mind that the only thing that you’re looking for is interest. That’s it. We’re not discovering anything at that point. When you find out whether or not they have some type of interest, that’s when you move over to the qualifying section, but during your sourcing, you’re just going through a ton of leads.
You’re having a lot of cold call conversations. Are they interested, yes or no? If they’re not, you move on to the next lead. This is a volume game. That’s how you start to manage your sellers. After somebody raises their hand and they say, “I want an offer,” they automatically get moved into the qualifying process.
It doesn’t matter if the offer is retail because you simply don’t have enough information about that seller yet, so you want to have that discovery session in the qualifying conversation. Begin sourcing your sellers. Move through that quick, and then move on to qualifying. If you push somebody into that qualifying conversation, they’re now a lead. That’s a lead that you’re going to drop into your CRM, into your Excel file, or whatever you’re using. That is somebody that you want to stay on because they express some types of interests.
You need to discover and have that conversation with them, but at this point, at the very least, you know that they’re interested in selling. How do you qualify? A cool thing that I like to wrap my head around when I’m having a seller conversation, trying to figure out if I can help that lead, and turn them into a prospect, is to wrap my head around the same thing that journalists do.
You start finding out who, what, where, how and why. Wrap your head around those questions because that’s going to give you a lot of information on the scenario, the person, and the property and you’re going to end up with a good idea of whether or not you can help them out. Who are you talking to? Is that the right person that you’re supposed to be talking to in the first place?
Do they have legal authority to make decisions on the property? What is their timeline for moving? Where can you come in and provide a solution for them? How can you put it all together? Why is it that they are calling you instead of dealing with a real estate agent and selling their house traditionally?
You want to dig deeper into all this stuff, but that’s what happens during the qualifying process. We have a very specific script that breaks everything down line-by-line and tells you exactly what to say, how to say it, how to deliver it to go through this whole discovery process and qualify them as a prospect.
The last thing you want to do is spend a ton of time with somebody who’s not going to be a prospect. If you can’t help them and they can’t help you, you’re just wasting everybody’s time. Once you have that conversation, you’re going to put them into a follow-up process because qualifying a lead may take weeks or months.
I’ve had leads that take years. They’re not ready to sell yet, but they’re on that follow-up sequence. You put them in a follow-up sequence. You set up a date for the next phone call, have a conversation with them about it, get their approval, and then make sure that you stay on top of that lead. At this point, they’re still leads. They’re not prospects yet. You’re not talking about numbers or offers. You’re still trying to figure out what the issue is, how you can come in and solve a problem for them.
This is very important. You don’t have to get too fancy at the beginning with CRMs and all kinds of software and systems. If you have less than 100 interested leads, meaning the people that you brought over from sourcing to your leads, you don’t need to have a fancy CRM yet. You can put it all in a spreadsheet and then just set it up and follow up through the dates. Make the calls, have those conversations with the seller, get that done first because that’s what’s going to create that revenue for you. It’s a high-income generating activity. You staying on top of those leads that you sourced is how you’re going to make that check come through the door. Focus on that. Don’t get too fancy yet. You don’t need to.
This is very important. If you’re having a conversation with the seller and they’re a lead and they tell you, “I’m not ready yet, but follow up with me in 30 days,” you’re going to make a note of that, but you’re going to follow up with them in fifteen days. Always divide it in half. The reason for it is that people usually extend out more than they want just to not deal with that situation at this point in time, but you’re on the radar.
The fastest way to generate leads is to start talking to ideal clients right away through cold calling.
You want to stay on top of your mind. If they say 30 days, follow up in 15 days. If they say 6 months, follow up in 3 months and then stay on top of that conversation. You want to have that relationship-building little by little as you go through the process. After you put all of this stuff together, you’re going to make the decision whether or not that lead becomes a prospect. A prospect is somebody who you’re talking to about numbers.
You’re trying to make a deal happen. You have that personal connection already built with that person. The report is taken care of because it happens through the qualifying process, and now as a prospect, it’s just a matter of making a connection between the dots. What they want, what you can provide, the solution that you can bring to the table and how you can make it all work together.
What are you looking for? The way that we send leads to prospects is by looking at the seller pillars. The main pillars of somebody who’s going to be a qualified seller, that’s motivation, condition, timeline and price. What is the seller’s motivation? Why are they calling you instead of calling a real estate agent? What is the condition of the property? Is this a property that needs a lot of repairs and they don’t have the money to fix it?
Is it a moving-ready type of property? What is the timeline? Do they need to sell yesterday or do they have six months to sell? What’s the price? Do the numbers make sense? Once you go through these four pillars, you’re going to have a pretty good idea of whether or not you can help them out, and then you push them out to your prospects.
Now that they’re prospects, they’re even a hotter follow-up than just the leads, so these become your priority until you get that contract negotiated and then you get that deal locked. This is how they jump into your acquisitions part. This is when you start talking about numbers. You don’t want to rush into numbers too early in the conversation because if you don’t know what’s going on, you don’t know what type of solution you can provide for them.
Keep that in mind. It’s very important to process your sellers the right way. It’s not that difficult. Once you have this laid out and you have a solid process to go off of, it’s simple. It’s two steps before they can become a prospect, then you start talking numbers. Before you hit the numbers, you have to source the sellers and then you have to qualify the sellers.
During that qualifying conversation, you want to focus on who, what, where, how and why. At the end of the day, it’s one of the most important things in your business. If you can handle that, a lot of the leads are going to fall through the cracks. Your marketing dollars and your time spent is going to be wasted.
Once you process, source your sellers the right way. Qualify your leads the right way and then have prospects to lock down deals with. If you’re ready to jump into some coaching, go to WholesalingInc.com, set up a call and have a conversation with one of our guys. If it makes sense of both sides for you guys and for us, you might get an invite and become part of the Rhino Tribe where we break all of this down. We dial it in step-by-step and make it a point to have a process to manage your seller leads. Until then, stay focused. You got this.
About Rafael Cortez
Rafael is an Organizational Psychologist and real estate professional holding ownership in multiple companies in various verticals. He has profitably invested in wholesale real estate over the last decade, runs an active business doing an average of 15 deals per month and is now passionate about using his investment knowledge, entrepreneurial experience and training as an organizational psychologist to help others learn about real estate investing through the Wholesaling Business Blueprint Coaching program with Wholesaling Inc.