Getting "guts"

[IStealHouses 0]

First off, I wanted to say sorry to MC. I will PM you with what I was talking about.

 

Okay, how do you guys get guts when calling ads. Everytime it comes for me to make calls, I feel like I dont want to. I think its because to date everyone I call isnt motivated. How do you guys make the calls fun? How do you get the guts? I tell myself I dont care, but I still dont want to screw up and look stupid.

[JerseyJeff 0]

This topic hits home for me. I recently (last week) overcame not wanting to call FSBO's. I just told myself to do it, if I want deals. So what if you look stupid, just hang up and try again, they don't know who you are. Everytime I find myself slipping back I try to put myself in the mindset of I'm closing a deal today and no one is going to stop me. I get angry...it seems to work for me. If someone says they're not interested, I wish them luck and dial the next number. If you just say "f#@* it" and have that mentality, it might work for you, it does for me.

 

Calling for me isn't fun, but I try to make it a challange to close someone. Most people will not be interested. Understand that it isn't personal. They're not saying no to you, they're saying no to the idea of LPing. So what...screw 'em.

 

And now, for some cliche's:

Today's the day.

Every no you get is one call closer to a yes.

 

Unfortunately, the only way to get through it is to pick up the phone. I know this doesn't help, because it didn't help me, but it's the truth.

 

Good luck,

Jeff

[Doug Pretorius (ON) 9]

This is an ongoing problem for me as well and there are many ways you can try to change your mindset. One thing to keep in mind is that the problem isn't "cold calling" in general, the only thing you need to focus on is how to get through ONE call, the next one on your list.

 

One way is to get pissed off. About the direction of your finances, about your life in general, about proving the naysayers wrong... whatever works for you.

 

Another way is to use whatever reenforcement you need to convince yourself that you don't care about the outcome of the call. This has worked well for me from time to time. I tell myself over and over that this one call (be it yes or no) has no bearing on my long-term success.

 

Another option is to focus on the fact that you are doing them a HUGE favor by calling! For one, newspaper ads aren't cheap, so you're giving them their money's worth. And two, CA's (if that's what you're offering) are better than anything else!

 

If none of the above works for you, you can always hire someone else to make the calls

[MichaelC 160]

Okay, how do you guys get guts when calling ads. Everytime it comes for me to make calls, I feel like I dont want to. I think its because to date everyone I call isnt motivated.

<{POST_SNAPBACK}>

Makes me wonder if you're motivated. Are you?

[draegarfrog 0]

My problem is I don't have enough numbers to call. I'm living on Okinawa and calling long distance to Guam. My sister gives me the numbers from her newspaper. This may sound kind of wierd, but I actually enjoy calling people. I think it's because we have a great service to offer. When people say no, I just tell them thanks for your time and good luck selling your house.

[IStealHouses 0]

MichaelC...You are right. Hit the nail on the head. Sometimes, I wake up and I say I am going to get a deal, and thats all it takes. Some days I wake up, and think about how badly I want a deal, and how bad I want to succeed in RE. Those days I blaze through 100 FRBO ads in an hr. Others, I dont feel motivated at all, I say damn is this even going to work. No one says yes, etc... And its discouraging. Partly this is because I am in the fastest growing market in the world, and if anyones market is a sellers market, its mine. Sometimes I wonder if LO will work for me because I have little money to start with, and it seems like everyone in the paper IS an investor. Infact, I have only called 4-5 people so far who arent renting for profit, and I have called hundreds. My county is full of investors, I wish I had some money saved up and move to Texas or somewhere the market is slowwww. Then I could close 15 deals in 6 months or less and come back, or live there!

Lately I bumped up to 45 calls per day, and I am calling alot of the same people. This week I only called 30 people, feels like I am losing hope. I know persistance is key, but in a market like mine how long must I persist!!

[MichaelC 160]

No one says yes, etc... And its discouraging. Partly this is because I am in the fastest growing market in the world, and if anyones market is a sellers market, its mine.

Where are you located, by the way?

Sometimes I wonder if LO will work for me because I have little money to start with...

That means you're starting like everyone else in this business.

...and it seems like everyone in the paper IS an investor.

That tells me your area is a good market for real estate. What other reason could there be, then, for all those investors?

This week I only called 30 people, feels like I am losing hope.

Lose the negative attitude, or it becomes a self fulfilling prophecy. And if you find calling on FSBO's and FRBO's to be such a chore, your only other option is to market so they call you. But if you don't do either, and preferably both, you're doomed to failure.

[IStealHouses 0]

I am in Southern California. A good example of the market I am in is this...My parents bought their house 2.5 years ago at 225k dollars. Two weeks ago it was apparaised at 560k. That is some damn high appreciation.

I just wonder if they will work because I have spoken with 3-4 other investors in the area, and they told me doing L/O in such a hott market is going to be really hard. Thats why everyone is buying them at cash discounts.

Its a great market for RE, but it is a sellers market. So much so, that there are apartment complexes coming up overnight, and people are moving into them just to wait for more houses to be built. We have all these home companies building houses EVERYWHERE. They cant build them FAST ENOUGH. So someone in Forclosure wont have trouble selling their house because people will take anything as long as its in this area. (Riverside County / Orange County - In the middle here)

[Doug Pretorius (ON) 9]

If people are willing to sell at a "cash discount" then there are people willing to do a CA in the same market. Stop complaining and go find them!

 

If "everyone" says no then it's how you're saying it, not what you're saying. In a hot seller's market people get a premium above asking price, so offer them a premium over that premium! If they ask $500k and get a $550k offer, then IMHO you should be offering them $600k if you want them to consider an L/O.

 

The fact is RTO buyers will pay a premium. If cash buyers are already paying a premium, then RTO buyers will pay even more.

 

Sure in a crappy market like Michigan you can get sellers salivating over getting close to the appraised value. But that's just not going to happen in Southern California.

 

So offer sellers more to get your foot in the door. If every buyer then says it's too expensive, you can always renegotiate with the seller. Do you have any idea how easy it is to get a seller to lower their price AFTER you have a signed contract? It makes me wonder why anyone bothers to try to do it beforehand.

 

There's a REASON why realtors do it in the order they do.

[IStealHouses 0]

Dough, thats a great idea! I never thought about that. but...

What do I say if they ask how am I able to do this?

What happens if my market DROPS?

How can I make cashflow on it if they are going to be making such a huge profit?

Do you ask sellers this right on the phonem like this...

Well what if I can give you more than your asking price.

Does the ebook sold on this site cover this kind of stuff? it never occures to me, I took Peter Contis course and it says to always buy with a built in profit. So I was thinking, shit I cant do that here!

 

You have given me new inspiration, Hope to hear back from you soon!

[Krusty 0]

I'm not Doug, but I'll give it a try. In a Cooperative Assignment, you are not buying the house at all. You are setting up a rent to own situation and assigning your interest (for $$) to a retail tenant/buyer. As such you don't worry about cash flow or future home values. Having said that, it is in your reputations best interest not to put a t/b into a home that they never will be able to afford.

[Doug Pretorius (ON) 9]

As Krusty pointed out, a CA is the way to go in a hot market. Grab your $15k and move on to the next house.

[JerseyJeff 0]

Dough, thats a great idea! I never thought about that. but...

What do I say if they ask how am I able to do this?

Tell the seller that the benefits the t/b is getting in this deal (time to save a down payment, get financing, clear up credit) is valuable and that translates into them willing to pay a little more for these benefits.

 

What happens if my market DROPS?

What do you care? In a CA, you're out of the deal already.

 

How can I make cashflow on it if they are going to be making such a huge profit?

In a CA, there usually isn't cashflow for you.

 

Do you ask sellers this right on the phonem like this...

Well what if I can give you more than your asking price.

I usually don't ask them, I include it in my list of benefits to them.

 

Does the ebook sold on this site cover this kind of stuff?

MichaelC's manual is well worth the price. It covers everything you need to get started and develop a strong business.

 

it never occures to me, I took Peter Contis course and it says to always buy with a built in profit. So I was thinking, shit I cant do that here!

Each method of REI has different strategies.

 

Jeff

[Kimberly 0]

Read this thread. It's mainly Bev posting on deals she's completed. She's in California and is doing amazingly well dealing with directly builders.

[Jason (AL) 1]

1. cold calls never killed anybody

 

2. get the book, The Greatest Salesman In The World

@ www.fetchbook.info (thanks for the link Adam). Skip to Chapter 8 as

soon as you get your hands on it. When you're pumped up, go make your

calls. When you have the time from all your deal making, start the book at the begining.

Then again...all motivation comes from within.

 

3. ask sellers in hot markets: "Do you want cash or more cash."

Of course they'll want "more cash" but they'll only get it down

the road. So offering a CA vs. a cash offer is going to be

a toss-up. It's if they're willing to wait for that "more cash".

 

4. do whatever everyone else isn't doing. Don't do anything

dumb though.