It’s time to do a cold call breakdown! In this episode, we analyze a cold call made by a real estate agent to a prospective client. Listen in as Edward cold calls a potential client. He starts off remarkably, but during the second half of the conversation, mishaps start to take place. The result? A prospective deal goes down the drain. Brent Daniels, Wholesale Real Estate coach at TTP, breaks down the mistakes Edward made and offers constructive criticism on how he could have approached the situation better. Starting from the tone of voice to affirmations and mark-up responses, Brent covers everything you need to know to seal the deal.
Cold Call Breakdown – Don’t EVER Make This Mistake When Cold Calling!
Want to learn how to effectively convince a homeowner to sell his real estate property? Then this is the episode for you! Listen in as Edward cold calls a potential client. He starts off remarkably, but during the second half of the conversation, mishaps start to take place.
In this cold call breakdown, this one’s important because this caller here, Edward, is doing phenomenal with his using the script and flowing with the conversation, but you’re going to see it starts getting wiggly at the end. He keeps repeating himself and it causes some of that friction in the call that you don’t want to go through. Because of that, he could have done a much better job. He got all the four pillars. He got the condition of the property, timeline to sell, the motivation to sell, and the price, but he could have done a better job of really solidifying that he could solve the problem of this property owner.
Remember, whenever a property owner is stiff-arming you with they need certain things to happen before they can sell their property, your job is to solve that problem. We can handle that for you. No problem. We do that all the time. I’ve got you covered. Whatever you need, we can help you out and make this as smooth for you as possible. The other thing here is his tone. His tone is very flat. He’s crushing the script, and I love it. Even if your tone is off a little bit and it’s flat, you can still pull out good information from a motivated seller, but if you would’ve had a little bit more inflection and movement in the way that he used his words, he would have been more effective. Let’s check this out.
“Hi. I’m looking for Ronald.”
“This is him.”
Starting The Call
It’s the perfect opening. “Hi. I’m looking for, first name.” Stay with the first name. You can even switch it up just a little bit. I don’t like it too much. Instead of, “Hi. I’m looking forward,” just go, “Ronald?”
“Hi, Ronald. This is Edward. I know this call is out of the blue, but I was calling about a property I believe you own.”
In the beginning, this guy is going to only give short, one-word answers. I can feel this force field covering him and he’s like, “I don’t know who’s calling me and what this tone is. Is this somebody that I know? What do they want?”
“Yes, I just wanted to see if you would consider an offer on your property there.”
“I don’t know. What kind of offer?”
Remember, when you asked them if you would consider an offer on their property, six responses you’re going to get, “Yes, I do. No, never. Maybe in the future. How much will you give me?” This is a version of, “How much will you give me?”
“We purchase a property in cash. We pay the closing costs and there are no real estate commissions. The best part is we buy them completely as is, so you wouldn’t have to.”
You need to have confidence and certainty when you’re on the phone.
Literally line by line from the TTP script. He’s giving benefits. The guy throws at him, “It depends on the offer, on how much I get, this and this.” You throw out the benefits for it, then watch him answer his question what offer with the benefits and then ask a question again. That’s how you gain control. That’s how you stay in conversation with this property owner instead of getting steamrolled. Remember, we want confidence and certainty when we’re on the phone. That’s what we want. That’s what makes us really excited and effective when we are making these calls. If you’re keeping these conversations going and you’re pulling out the four pillars of pre-qualifying, you’re going to feel more confident and better. The better you feel, the more calls you’re going to make. The more calls you make, the more money you make. It’s a fact. That’s the equation.
“For an offer like that, how much would you pay?”
“I don’t know. That’s why I would be asking you how much you’re willing to pay.”
He’s hitting that ball back to us. He didn’t answer it. He’s like, “I don’t know. You tell me.”
“The condition of the property plays a major role in building an accurate overview.”
Active Listening Matters
Write that down, “The condition of the property plays an important role and factor in the price that we give you.” Then he’s going to hit him with another question. This is going so good. I’m happy with Edward. If his tone was a little bit more engaging, inviting and fluid, it would be better, but he’s doing a good job of answering the question and asking a question to gain back control.
“Can you tell me, have you done any recent remodeling or upgrades to your kitchen or bedroom over the last five years?”
“Okay. Perfect. Like I said, we are purchasing.”
“Okay. Perfect.” Remember, active listening. Confirm and approve everything that they’re saying, “Okay. Great. Perfect. That’s fantastic. Yeah, that makes sense.” All of these things are tools to pull out. Don’t sit there and go, “Uh-huh, okay. How much do you want for it? When do you want to sell it? What’s the condition of the property? Okay. Why do you want to sell it?” No. There are better and more effective ways, and he’s doing a phenomenal job. This is the highlight, and the peak of this call for Edward is this part right here where he transitioned. That guy threw it right out of him. He’s not giving him much. He’s got his force field up. He’s protecting himself and Edward is chipping away a little bit. All of a sudden, that force is getting a little bit thinner with every question that he asked.
“Property is exactly as is. Can you tell me how old your roof is?”
“That’s about ten years old.”
This is okay. I don’t mind this. What he did was Edward understands from the training that we’ve given him that if you’re asking about the condition of the property, that is more comfortable for the property owners to answer. They’re fine with that. When you start getting into the why and when that they get a little bit comfortable and how much, but the condition is a statement of fact. It’s telling you what’s going on with this property. It’s not getting into the emotions of it. He keeps going in and he knows, “The longer that I keep this seller on the phone, the more I’m going to be able to see if we can serve this person, that we can help this person solve the problem that he has if he has a problem. We have to figure that out,” and he does that.
“Okay. How old would you say your furnace is?”
“That’s about ten years old, fifteen maybe.”
“Okay. Anything the property could use or need in the future? Any repairs?”
“I got lots of them.”
He’s got lots of them. We’re 1 minute and 44 seconds into this conversation. Edward has probably made 250 calls this day. This might be his 251st call of the day, and he’s having this conversation. He’s like, “We’ve got something here. This is feeling good. Is this guy going to hang up real quick for no reason? Is he going to stay on the line? I’m trying to keep him on here, ask good questions, figure out the four pillars. I’m pre-qualifying condition, timeline, motivation and price. I’m working all these things. I know if I stay in the condition of the property, he’s going to stay on there longer. This is absolutely great,” and then he throws out, “This property needs a lot of work.” That is what you’re looking for. The red flags should be flying up. The alarm bells should be going off in your brain. This is when you settle into this conversation and you start going.
“I wouldn’t even want to get into the lift.”
“Okay, so maybe this property could use a bit of work?”
A mistake that he made is right here. What I would say is, “That is exactly what we’re looking for. That is what we specialize in,” and then move on. You confirm, “Okay, great,” then you get into the timeline, “If I could get you the price that made sense, when would you want your money out of this property? He goes into this. I want him to feel like, “Okay.” I don’t want him to feel ashamed of the property. You can almost feel like with the tone that the seller had. I don’t even want to get into all the stuff that the property needs. He’s almost like, “I know that I let this go downhill.” That’s when you got to bring them back up and put them on your shoulder and say, ” It’s cool. This is exactly what we’re looking for.”
“If you don’t mind me asking, what’s the reason why you would like to sell this property?”
“I’m ready to move. I’ve been here twenty years.”
“Okay. Is this currently your primary residence?”
The better you feel, the more calls you’re going to make. The more calls you make, the more money you make.
Finding The Seller’s Motivation
It’s good. That’s not the real motivation. You feel that, “I’ve been here twenty years. It’s time to move.” I smell something different. There’s something underlying there. I’m going to try to figure that out, “Okay, great. If you did sell this house, where would you move to next? When do you want that to happen?” You’re starting to get all these things, but that is what you want. The motivation isn’t that he’s owned it twenty years and he’s tired of living there. If he’s lived there twenty years, he likes living there. What is going on? There’s something else going on here. It’s not like, “My twenty years is up, so I’ve got to get a different house because it’s been twenty years, and now it’s just the right time.” No, anytime you hear that, “We’ve been here a while. We’re just ready for a change.” There’s something more for you to find there, a lot more.
“You said the property could use a bit of work?”
He keeps going back. He was really comfortable. Edward was feeling in the zone, asking questions about the property, and he stays here way too long.
“Okay. Let’s say we come up with an offer that makes you happy and works for us. When do you see yourself maybe selling this property?”
That’s a great line for real, “If it makes sense, when do you see yourself selling it?”
“As soon as I find a place to put all my stuff, which maybe takes a while. I don’t know.”
We work with people all the time. We help them pack up their stuff. We help them organize their stuff and move everything, “I understand, there’s probably a lot that you have there and it feels overwhelming, doesn’t it?” “Yeah, it is. It’s pretty overwhelming.” “If you will allow us, we will help you organize everything. I’ve got an unbelievable team of people that would help you organize everything that you’ve got, so that you take the stuff that you want, and the best part is you can leave anything else that you don’t and that feels like it’s a lot, it’s a headache, and you have to empty this thing out, you don’t. We will take care of that. This is what we do. Let us do what we do. You take what you want and we’ll get you into a new place. We’ll help you pack everything up and then you can take the money out of this property and move wherever you want to. Does that sound like a plan?”
“It takes a while. I don’t know.”
“I’m trying to get it cleaned up right now, so I can sell it in the future.”
Don’t Ask The Same Question Twice
Dead air. Something’s going on. Something’s either distracting him or he’s not sure where to go here or what to say here. What does he do?
“When do you see yourself selling this property then? Right away?”
He just answered that question. He just told him, “When do you see yourself moving?” “When I can get all this stuff organized and clean it all up.” “When do you plan on moving?” It’s the same question.
“The price would have to be right to sell this.”
“What would that be for you? What price were you looking at?”
“Probably about $330,000.”
What do we have here? Condition. Needs a lot of work. Timeline. As soon as he can get that thing cleared out, he wants to sell it. He’s been there twenty years. Motivation. We kind of know, we don’t know enough. We know that the property’s rough and it’s probably rough for some reason. Maybe there are some financial reasons. Maybe he is somebody that collects a lot of things. Some people call that hoarding. We know that maybe things are falling apart, that he’s not necessarily telling us about and he’s getting more uncomfortable every single day that he’s living there. We have an idea of motivation. It’s surface level. We have a veneer of it, but we don’t have the true motivation. We’re getting there and now we have the price. That’s phenomenal.
This is 3 minutes and 28 seconds into this conversation. On average, when we look back on the leads that turned into closed deals, the average is about three and a half minutes is the call when you talk to a motivated property owner. Some of them go on for a long time, but I want you to think about that when you’re on the call. Somebody is saying yes and you’re having a good conversation. Sometimes it feels like you’re on there for an hour. It’s a lot shorter than you think. Relax, let it flow, take a deep breath, get into the zone, be present when you’re talking to this property owner, and focus. Remember condition, timeline, motivation and price.
“Okay. How did you come up with that number, $330,000 or what led you to that exact number?”
“That’s what was the property taxes basically.”
The worst way to end a cold call is to say “Let me get in touch with my partner and see what he thinks about this.”
A Question You Want To Avoid Asking
I don’t like this question on a cold call, “How did you come up with that number?’ Let’s date a little bit more before we get into this. Sometimes it’s okay. I do think that it’s very difficult to screw up a truly motivated property owner, but I think that’s more of a follow-up, on the appointment, or a question that you ask face-to-face. If you want to throw it out there and get it, that’s fine. If you want to have your prospectors go out and throw it out there, that’s fine. Beware that it causes friction with people that are on the fence and, all of a sudden, you’re making them defend their price and their position, and a lot of people get shut down at this moment. This is why you get ghosted when you do lead follow-up because you’re a prospector, you push too hard on the initial call and now they’re like, “That felt weird. He was really pressuring me and asking me about the price. I know that he’s going to come at me aggressive and I don’t want to work with him or her, whatever.”
“Okay. I see. How flexible would you be on that $330,000?”
“Not really, because I know if I’m going to get it, I’m going to get it.”
“I see. Okay, Ronald.”
If you’re going to go with this approach, cool. If you’re going to ask them, “How did you come up with that number?” great. If they throw out a number and then you say, “How flexible are you?” What are they going to say? 99% of the time, they’re going to say, “No.” They told you their price and then you just ask them, “How flexible are you?” They’re like, “No.” Maybe sometimes it works. That’s why we form bad habits because it worked 1 out of 100 and you’re like, “This is great. This is amazing.” You get praised and you’re like, “That was incredible.” You have a phone prospector that you hired and they threw that out. They got that and you got that deal. You’re like, “Great job. Do that every time.” All of a sudden, they go on a cold streak.
There’s a reason why they go on a cold streak because you put them in a position to ask that question all the time and it throws off the property owner. They’re like playing a dance. They’re going, “Are you flexible?” I like, instead of asking that, “Is that the best price that you could do, you think?” It’s a little bit more subtle and it’s like, “I don’t know. There might be some room.” It’s the same thing, but it lands better.
“Do you have any other property that you would consider selling off of?”
What? This is the question you ask when somebody says, “No.” When you asked, “Would you consider an offer on your property?” They say, “No.” Then you go, “I completely understand. Do you have any other properties that you would consider an offer on, maybe a piece of land or something that needs a lot of work?” You don’t ask this question when you’ve got the lead. When it’s somebody that’s saying yes and you’ve got the four pillars of pre-qual, and now you’re switching tracks to go on to, “Would you consider an offer on any other properties?” You’re confusing him like crazy. I feel my whole body getting hot. I’m like, ” Don’t do that.”
“Something to model?”
He’s got so many things at his house that he has to figure out what to do with them to go and move somewhere else, and he’s living in this house. The likelihood that he’s got investment property and other properties out there that he would sell is low. Seriously, don’t do this. If you’ve got a lead, don’t switch tracks and get greedy. You’re trying to run up the score and it’s not the place to do it. This turns into people that don’t answer their phones again, and you call back a while and they hang up instantly, “I’m calling out of the blue…” Now, you’ve programmed them and they’re back in their shell and fighting you.
Edward did a fantastic job at certain parts of this call. He stuck to the script. He was asking good questions. When he got thrown a question or when the guy was throwing out one-word answers, he was opening him up. Fantastic. Up your tone, stay focused. Don’t ask the same questions over and over again. If he throws out a price, don’t make him defend it on the first call. These are the notes that you should be taking from this. You’re going to be so much better on the phone if you take this advice.
“Okay. Ronald, considering that this property does need a bit of work.”
“You said you wouldn’t be flexible with the price.”
“Not really. No. Not by much anyway.”
He’s defending again, “I don’t understand. These people are ghosting me. They won’t answer their calls anymore.” This is why. Make them defend their position and they are going to run from you for real. You can do this tactfully and responsibly. You can throw out numbers and say, ” I’m looking at what your neighbors and similar conditions are selling for and it’s at $230,000, not $330,000. Is that something that you would consider if we can make this really smooth?” “Maybe. Why don’t we set something up? Why don’t you come? I didn’t know what things are selling for. I saw what they’re charging me for on my property taxes, so I don’t know. Let’s talk.” That’s not fantasy. This happens if you are very appropriate with the way that you’re asking your questions, your tone of voice, and you don’t pound them to defend themselves.
“Okay. Have you considered that the property could use a lot of work?”
“Yeah. That’s why I figured I need to get it done so I can get what’s worth for it.”
“Okay, thank you, Ronald. I appreciate it. Let me go ahead and get in touch with my partner and see what he thinks about this.”
“Okay. Thank you. Bye.”
How Not To End Calls
The worst way to end it is, “Let me get in touch with my partner and see what he thinks about this.” “Listen, Ryan is going to give you a call tomorrow.” That’s my acquisition manager’s name, but whoever it is, “I’m going to call you back, and I’ll do some due diligence here. I’m going to do a little bit of homework on this and see if we’re close. I would love to work with you. Can you do me a favor? Can you save this number? I’m calling you from my office. Can you save my cell phone number in your phone? It is 480-blah-blah-blah. I’m going to text you as soon as we get off. If you save it in there as Brent Home Buyer, I’m going to be reaching out to you by the end of the day, whatever, or by noon tomorrow, and we’ll put something together. Does that sound fair?” “That sounds fair.” “Okay, great.” “Thank you so much for taking the time to speak with me. I look forward to doing business with you in the future.”
Some Points To Ponder
That is way more powerful than, “Okay, great. I’m going to have my partner look at it and we might give you a call.” Take this. Edward did a fantastic job on a lot of this. If you round it out a little bit more and you add some of these tools that I’m giving you here, your confidence is going to go through the roof and you are going to be shocked at how the angriest people open up to you. Remember, they’re not angry because you’re making them angry. You’re interrupting their life for sure, but they’ve got other things going on. You’re the last thing that they were thinking about dealing with, talking to or communicating with. You need to flow into their life smoothly so that it’s not so much friction and anarchy in their brain going through, “What is going on? Who is this? Why am I answering these questions?” They feel like they’re talking to a neighbor and, “I do need this problem solved.” They’re going to work with you. That’s how you get great at this.
This is how you do a deal every single week. Remember, it takes about twenty hours of calls to get a deal. Imagine if you get $10,000 or $15,000 a deal, we average $42,000 a deal, that is how you build a very profitable business, pay off your debts, get out of your 9:00 to 5:00, and start buying real estate and assets that get passive cashflow, open up your financial future, and make you the magnet in your family for somebody that is being proactive and doing something special. You set the tone and you give a great example of what you can do if you’re proactive, reach out to your community and solve their problems. If you are interested in joining the most proactive group in real estate investing, it is the TTP family. It is the TTP program. Go to WholesalingInc.com/TTP. Check it out, scroll down. If it feels good in your gut, sign up for a call. I look forward to working with you personally. Until next time, I’ll close out as I always do, encouraging you to talk to people. Until next time. See you. Love you.