My Diary Log

[Alan (NYC) 0]

Hi Bev,

 

My cold call phone pitch is a good one, and I am getting good responses. Like you, my best responses have been with FRBO's. I'm a little impatient and would like to stay busy with as many houses to L/O as possible. The real answer is calling and talking to propects continuously as you have posted. I don't think there is any other way to make things happen as rapidly and as effectively as speaking directly to homeowners. (I said speaking with homeowners, NO EMAILS!)

 

What's funny is most of us know continually calling is the road to success in this business. Anyone who has a gameplan to call 2 hours, (even one hour a day) could change their lives financially for the better...and quickly.

 

Why then, should it be so hard to do? Why is it we always look for other, weaker areas to market L/O when we know calling directly to a FSBO or FRBO is the most effective and productive form of marketing for new L/O business?

 

If someone can figure out a way to L-O-V-E cold calling, and look forward to it on a daily basis, that someone is going to be very, very wealthy from this business.

 

Alan

[Brian - L.V. 0]

My cold call phone pitch is a good one, and I am getting good responses. Like you, my best responses have been with FRBO's.

 

I'd love to hear what you're saying that's getting such good results. I do alright, but I'm always interested in learning how to be better. Personally, I need to get better at transitioning from pitching a SLO to a CA.

 

Why then, should it be so hard to do?

 

I think when someone is just starting out, they're afraid of "rejection" from the sellers. They're afraid that the seller is going to upset by offering to purchase through a LO or that they're going to get asked a question that they don't know the answer to. Nobody wants to sound like they don't know what they're doing, so they resort to communication strictly through email. That way if the seller isn't interested, they don't have to hear about it and they have some time to get answers to questions they're unsure about.

 

It helped me to call a few ads and just act like I was a "normal" buyer. I'd ask them simple questions about their house to get used to talking to sellers. If they seemed motivated, I'd offer a LO, but the main purpose of the call was to confirm the fact that most sellers are happy to have someone like us calling them! They've paid money to have people call them about their property!

 

Why is it we always look for other, weaker areas to market L/O when we know calling directly to a FSBO or FRBO is the most effective and productive form of marketing for new L/O business?

 

It's a mix between leveraging your time and avoiding talking to unmotivated sellers (which is not necessarily a good thing). Yeah, if you send out 500 postcards it's easier and quicker than if you were able to get 500 sellers on the phone, but you can only expect a response rate of around 3-4%. How many calls would you have to make to talk to 15-20 motivated sellers? Definitely not 500! Plus it doesn't cost anything to pick up the phone.

[JamesT 0]

Interesting post Alan, you make a very good case for cold calling.

 

I think motivation is tough for making these calls even if you know it's a sure way to make money. Why is a good question.

 

This last weekend I was attending a seminar and one of the presenters was talking about his old days of cold calling. He had an interesting idea. Here is a quick summary and it's application towards LO's.

 

Let's assume it takes 100 calls to get one motivated seller to do a lease option and that you make on average $5k for a CA.

 

Create a 10x10 grid and in each square write $50.00

 

Now each time you get a rejection cross off one box. YOU JUST MADE $50.00.

 

The key is switching your thinking away from rejection and towards the money you are making doing your calls. Heck most of the time I'm sure it won't even take 100 calls!

 

I think it's an interesting idea, maybe worth a try!

 

James

[Kimberly 0]

I don't think there is any other way to make things happen as rapidly and as effectively as speaking directly to homeowners.  (I said speaking with homeowners, NO EMAILS!)

Nothing wrong with email guys, especially if you have one or more online ad sites for your area with a significant number of homes on there. It will allow you to sift through large numbers quickly. The same goes for calling ads during the day when sellers are likely to be at work and leaving a voice mail message. Any interest or curiosity on the part of the seller and they will get back with you.

 

The problem occurs when someone tries to present an offer and negotiate a deal via email. A deal is unlikely to occur from negotiations completed entirely by email.

 

As soon as the seller indicates an interest, get them on the phone -- preferably that same day -- get the info you need. Quickly check out the comps and run your figures. Then get back on the phone with the seller, set an appointment to inspect the house to see if it meets with your specifications, and oh by the way, Mr./Mrs. Seller you'll NET $x.

[Guest Guest]

Make the verbal offer first. Don't inspect anything until they have agreed to your offer.....it's a waste of time and gas. Only go see them to sign the papers. the time you save cn be spent on the phone with REALLY interested prospects.

[Guest Guest]

Then get back on the phone with the seller, set an appointment to inspect the house to see if it meets with your specifications, and oh by the way, Mr./Mrs. Seller you'll NET $x.

Make the verbal offer first.  Don't inspect anything until they have agreed to your offer.....it's a waste of time and gas.  Only go see them to sign the papers.  the time you save cn be spent on the phone with REALLY interested prospects.

It seems I wasn't clear. After you've done your due diligence, set the appointment on the phone as if it is already a done deal. Then (you're still on the phone) almost as an aside mention what they'll NET with you (assuming CA). Your posture -- belief, confidence, and attitude -- will go a long way toward determining whether or not you've got a deal.

[Kimberly 0]

Then get back on the phone with the seller, set an appointment to inspect the house to see if it meets with your specifications, and oh by the way, Mr./Mrs. Seller you'll NET $x.

Make the verbal offer first.  Don't inspect anything until they have agreed to your offer.....it's a waste of time and gas.  Only go see them to sign the papers.  the time you save cn be spent on the phone with REALLY interested prospects.

It seems I wasn't clear. After you've done your due diligence, set the appointment on the phone as if it is already a done deal. Then (you're still on the phone) almost as an aside mention what they'll NET with you (assuming CA). Your posture -- belief, confidence, and attitude -- will go a long way toward determining whether or not you've got a deal.

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Oops! That was me. Responding to whoever else forgot to log on!

[Alan (NYC) 0]

Hi Brian and everyone else that might be interested......

 

This is my current phone pitch......I say it slow and I don't sound like I'm reading it. I find it very effective because it explains L/O in simple terms and provides benefits the seller wants to hear..... I'm getting good results from it. It works for me because it fits my personality. Change some words if you need it to fit yours......

 

I saw your ad in ___________ and was wondering if you'd be interested in selling your property on a rent with option to buy?

 

That’s when a buyer makes a guaranteed monthly payment to you every month, one that covers your monthly mortgage, taxes and Insurance, and then at some point down the road, usually one year, cashes you out of the property at full market price.

 

I am not an agent or broker. I’m an investor and I have more buyers than nice properties to place them in. If interested, I can plug in your numbers to see if it makes sense for you. In most cases, I can get a buyer in your home in 30 days or less, in addition all commissions or fees are paid by the buyer, not you the seller.

 

Regards,

Alan

[MichaelC 160]

I'd love to hear what you're saying that's getting such good results. I do alright, but I'm always interested in learning how to be better. Personally, I need to get better at transitioning from pitching a SLO to a CA.

Brian, why not approach the homeowner with the idea of a CA from the start? You'll find a much warmer reception, generally, because the homeowner is getting a better deal from you. You'll stand out from your "competition", so to speak.

Then, if after speaking with them it appears greater motivation is present and a sandwich lease is a possibility, you can switch hats and suggest "another program" for them which might be a better fit. Now you would tout the benefits of the sandwich lease: guaranteed payments by you, no maintenance and repairs, no tenants and toilets, etc.

Let's assume it takes 100 calls to get one motivated seller to do a lease option and that you make on average $5k for a CA.

 

Create a 10x10 grid and in each square write $50.00

 

Now each time you get a rejection cross off one box. YOU JUST MADE $50.00. 

 

The key is switching your thinking away from rejection and towards the money you are making doing your calls. Heck most of the time I'm sure it won't even take 100 calls!

 

I think it's an interesting idea, maybe worth a try!

I like that idea, too! $50 a pop is a good way to look at what many of us consider the drudgery of cold calling. It's all in one's perspective. Thanks for sharing that, James.

[Brian - L.V. 0]

This is my current phone pitch......

 

Thanks Alan! I really like that. It's clear and it tells how a lease purchase will benefit them, without sounding like a salesman. Thanks again.

 

Brian, why not approach the homeowner with the idea of a CA from the start? You'll find a much warmer reception, generally, because the homeowner is getting a better deal from you. You'll stand out from your "competition", so to speak.

 

I used to do that, but I've really been concentrating on doing SLO's. Adam pointed out to me that it makes sense to go after SLO's in a hot market since you can easily give them their asking price. Not to rule out CA's by any means, but I'm finding it so much easier to get SLO's.

 

Funny you should mention that. I just pitched two CA's; one for an investor in town who has 5 brand new houses and one for a guy that has an extra house. Both asked me for references! That hasn't happened since the first CA I pitched! They see that I'm going to be working for them, instead of me purchasing them myself, so they want to talk to other people I've done this for. I mentioned that I don't get paid if I can't fill the house, but they still want references.

 

The investor just emailed me back and he's ready to go once I can send him my references. Problem is I've been doing more SLO's than CA's, so you can see where those references wouldn't exactly help. "Yeah, I needed to sell my house fast and when my Realtor couldn't do it, Brian came along and took it off my hands. He's even paying my closing costs, the sexy bastard!"

 

Honestly, I'm not too concerned right now. The homeowner could take it or leave it, but I'd really like to work with the investor since he has a total of 5 houses and is currently looking to get more.

 

Then, if after speaking with them it appears greater motivation is present and a sandwich lease is a possibility, you can switch hats and suggest "another program" for them which might be a better fit. Now you would tout the benefits of the sandwich lease: guaranteed payments by you, no maintenance and repairs, no tenants and toilets, etc.

 

I think this is where my problem is. When I start out pitching a CA and I switch to a SLO, they pretty much sound the same, but the homeowners generally realize that if I'm going to do a SLO their net is going to be lower than a CA. That's generally why I try pitching a SLO first. Any suggestions on how to make the switch more effective?

[Krusty 0]

Just a thought on cold calling. Most people hate to do this and I am no different (and I'm a salesman!). Stephen Covey refers to this as personal integrity. Integrity is planning to do the things which will make us effective (ie. cold calling) and executing those plans regardless of our emotional state at the time. Why do so many of us make promises to others in our life and keep them, but we are unwilling to keep the promises that we make to ourselves?

[BEV! 0]

It's a date then   

Hitman,

Just thought I let you know in case you want to meet.... I'll be heading to Stockton on March 3 and will be at the Best Western Stockton Inn at 12:30 for the Cash Flow Generator Real Estate Training... If you can't make it, tha's kool, is a great way for me to network with others there, I'll take my biz cards.. I'm buying this course for a dear friend of mine so he can help me with this part of my REI biz as I have a local professional from a bank that deals with bad mtg loans (pre-foreclosures) and he's called me several times asking me if I can assist him with this.

 

I know nothing about that field but maybe this training in Stockton will help us learn the tricks

 

Hope to see you at the Cash Flow Generator Real Estate Training! if not, maybe some other time

[Sold ! 0]

Ahhhhh, yes........the Rice Brothers ! John and Greg. Local yoakles here in West Palm Beach. They made a fortune in real estate and are now the pest control moguls........they own Huelett, a huge past company.

 

In fact, they dress up as bugs a lot and do their TV commercials.

 

25 years ago when I first came to FLA, I'd bump into them in the bars and clubs. They were hitting on and scoring with women left and right and there I am wondering how these "dwarfs" (really) did it.

 

Smells like money to me !

 

You'll learn a lot from these guys.

 

They also offer this training:

Lease Option

Want an easy, low-risk way to attain financial freedom? Want to quit your job and live the life of your dreams on your own massive cash flows? Then you must attend the Lease Option Training. Learn solid, proven strategies for attaining financial independence through real estate. Learn how to enjoy all the benefits of owning property without the risks or hassles. The key to this training is how to buy or control property by putting very little to absolutely no money down. Discover how to acquire properties in any area of your town with nothing down using the lease option method. See how you can cash in your purchase option properties to unlock thousands of dollars for yourself as soon as you get home from this advanced training.

 

 

During this dynamic training, you will learn:

 

  · How to create a Lease-Option Money Machine that pays you quick cash and a steady monthly income

  · How to create contracts that allow you to purchase property for little or no money down and virtually risk free.

 

At the end of the training you will be given a personalized outline of a game plan for the next 90 days, ensuring that when you return home, you will hit the ground running. Following this proven plan can eliminate all doubt and uncertainty. Our experienced trainers bring you proven strategies, not textbook information and theories. A special session will even teach you how to make tax free profits in the purchase option business.

 

When you attend Lease Option Training, you will learn a proven, step-by-step system that is so powerful that you can put it to work to build your financial freedom as soon as you step out the door. Through Lease Option Training, you can learn how to create a faster path to monthly income than by following any other comparable real estate investment strategy.

 

LOL

[Hitman712sc 0]

It's a date then   

I'll be heading to Stockton on March 3 and will be at the Best Western Stockton Inn at 12:30 for the Cash Flow Generator Real Estate Training...

Hope to see you at the Cash Flow Generator Real Estate Training! if not, maybe some other time

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Perfect. I'll see you there.

[Hitman712sc 0]

It's a date then   

I'll be heading to Stockton on March 3 and will be at the Best Western Stockton Inn at 12:30 for the Cash Flow Generator Real Estate Training...

Hope to see you at the Cash Flow Generator Real Estate Training! if not, maybe some other time

<{POST_SNAPBACK}>

 

Perfect. I'll see you there.

<{POST_SNAPBACK}>

 

BTW, do I have to buy their course to get in the door?