Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums
Professor

Cold Calling

Recommended Posts

OK, Doug and I have been speaking about doing cold calls for a lil while now and even the potential to amass great wealth is not making us jump up out of bed in the mornings to do it, so a few questions for those brave men (or women) who DO step into dark territory:

 

who actually commits time to doing this?

How many calls do you do per day? (How many hours, calls per hour?)

What is your response rate?

Do you call people who are listing privately, w/ agents, or EVERY one (by that I mean, straight cold calling out of a phonebook)?

Do you leave messages for N/A?

How / Who do you keep track? ie. who you called, who picked up, who you left a message for, who you need to call back, who is interested but just wants more info, who is listed w/ an agent but wants you to call when they're expired?

OR do you ONLY keep track of who picked up and is interested?

Do you use a script or is your conversation based on a call-by-call basis?

What if any, specific times do you call?

What is the overall experience like?

Any other tips, suggestions would be helpful.

 

I seriously applaud anyone who cold calls on a regular basis so any response to this is much appreciated.

 

 

--

Dang

DSI Group

Share this post


Link to post
Share on other sites
Don't you have the 5 question to success manual? If you do, you should killing it with cold calls and internet marketing right now.

What's that, why would I want one, and where would I buy it?

Share this post


Link to post
Share on other sites

Come join the dark side and inquire within...

 

No need to ask 101 questions these days. :unsure:

Share this post


Link to post
Share on other sites

Let's see 5 questions...

 

1. Do you want to lease purchase?

2. What's your best price?

3. What's your best rent?

4. How many years?

5. Are you ready to sign?

 

Am I close? :unsure:

Share this post


Link to post
Share on other sites
Let's see 5 questions...

 

1. Do you want to lease purchase?

2. What's your best price?

3. What's your best rent?

4. How many years?

5. Are you ready to sign?

 

Close...you've almost got it.

 

The five questions

:unsure:

 

This redneck wouldn't noo which nd ov the fone to holed

Eyem probablee the onlee won to understd tht.

Share this post


Link to post
Share on other sites

LMAO! Wow, we went to the bottom fast with this thread! :unsure:

 

The Five Questions.

 

They were created to be able to cold call a seller with no experience. The key is to ask the questions to determine two things without allowing yourself to be pushed into the position of a "salesman".

 

1. Motivation

2. If they will allow seller financing (i.e. lease option)

 

The Five Questions:

1. Is the home still for sale?

2. I'm an investor, does the home need repairs or updates?

3. How much are you asking?

4. Do you know how much it is worth, have you had an appraisal done lately?

5. (EXAMCTLY AS WORDED) So, if you cannot sell what are you going to do, rent it?

 

The psychology of the questions

Keep in mind that these questions usually get asked in only a matter of seconds. You could literally be off the phone within two to three minutes. This is because you are not allowing the seller to ask "you" any questions. This is HUGE if you have a hard time getting out of your comfort zone. Again, you are NOT allowed to "answer" any questions! This creates a true "you can't get corned" scenario with the seller.

 

Question One

This may not seem like a necessary question, but it is. It puts respect immediately on the seller's side. It is not a question of proposition, but a question of "asking" giving the seller power and "off" the defensive.

 

Question Two

Although this may not seem like a serious inquiry from you, this is the first true question of motivation. This is because you are coming straight forward with the "question" question and disclosing your are an investor. You are now putting the seller into a defense mode identifying how much they'll let you in. If they don't balk, move on to the next questions.

 

Question Three

This is the first question of proposition. This allows the seller to know you're serious because you have just stated that you are an investor. It is also a simple question on your part because it's non-intrusive. This means that it allows you to know if the seller has a plan or not.

 

Question Four

The key here is to locate amount of equity in order to applying your strategy. This is done by calculating the difference between what they are asking and what they think it's worth. You should be typically looking for 20% equity or more for a sandwich lease. If the property is in good condition and has the equity of 90% (or higher), this could be a CA. If the payments are seriously low, you could still consider an SLO.

 

Question Five

And finally, the fifth question. This is the most important question if the desired equity doesn't exist. It's not the question itself that is powerful, but the way it is asked. When asked properly it comes off as completely non-intrusive. This sets us up to be able to realize if this is a dead deal or a deal that we can apply a short term seller financing strategy to.

 

No more scripts to read from, no more uncomfortable questions about motivation to ask. No more being put on the spot to perform when you don't have the experience to do so!

 

Tell them you'll check the property out and call them back if you're interested.

Call back the next day and pitch a LO if they answer "yes" to the last question.

Done.

Regards,

Adam

Share this post


Link to post
Share on other sites

Great answer Adam. That was just what I was looking for and didn't know it. Hell, this isn't even my thread . :unsure: Thanks for writing all that out!

 

Professor - I can't really answer your question because I haven't done a dang thing. However, MCs manual says that if you aren't putting 2 hours a day into marketing, you're not serious. If cold calls are the only marketing you do, it would need to be 2 hours worth. Or, if you do an hour of putting up bandit signs, then the cold calling is only 1 hour.

 

I don't see the point of calling random numbers out of the book. Most won't even be selling. Hitting on someone who needs or knows someone who needs your services is unlikely. Like MCs manual says, call on the FSBO/FRBO. I personally will not be calling on any realtor/investor ads.

 

My plan is to keep my tracking simple. A spreadsheet containing 1. phone number(s) in ad 2. FRBO or FSBO notation 3. Homeowner reaction (call me back, never call again, etc) 4. Rather than transferring all the ad data to the spreadsheet (too time consuming), I will write down a code as to the source of the ad, should I need to refer to it to figure out the details. I use AR101707_1 (that means I found it in Arizona Republic on 101707 and the _1 is just a number I jot down on each ad to find it quicker (may drop that last part if too time consuming).

 

And take this with a grain of salt for I am an analysis of paralisys suffer and have yet to CALL any frigging one. Somebody kick me.

 

I was also wondering.... DO you leave a message? What are there better times of day to call?

Share this post


Link to post
Share on other sites

So what to choose? Adam or Doug? Doug gets it done in one question, but is that turning off sellers who might otherwise say yes with a softer approach, or is he smartly saving a couple of minutes of his life on every call?

Share this post


Link to post
Share on other sites
So what to choose? Adam or Doug? Doug gets it done in one question, but is that turning off sellers who might otherwise say yes with a softer approach, or is he smartly saving a couple of minutes of his life on every call?
There is no one "correct" way to calling homeowners. Try one approach and track the results. Then try a second and a third. Tweak things. See what is working and what isn't. Eventually you'll find your zone and what works best for you. But the key is to do something!

Share this post


Link to post
Share on other sites

randian, I've asked the main question for L/O deals (#1 on my list and #5 on Adam's) both ways. My experience is that you get more no's if you ask it my way but when you get a yes they're ready to go. When I asked Adam's way I got a lot of yeses but many of them are not that serious. They say yes but then they backtrack: "Oh wait a minute, no I can't rent it, I need my money!"

 

To be honest I kind of like the: "If it doesn't sell would you rent it?" approach better because I hardly ever get a no, even though it requires more confirmation that they're serious. That's where the last part of Adam's script comes in...

 

"I'll check out the house and call back if I'm interested." I've used that line very successfully. It's almost mandatory. It puts them in the position of hoping they qualify so when you call back they think: "Yeaaa he likes my house!" If you wait a day like Adam suggests it also gives them a chance to sleep on it and digest what you asked them. If they regret saying yes then they'll probably jump right in with: "I was thinking and realized I can't rent my house out."

 

Either way you have control over the situation and it's all about qualifying, qualifying, qualifying. Before you ever step out the door you already know you have a willing partner and a workable deal.

Share this post


Link to post
Share on other sites

do you have a cell and home number?

 

Write all the numbers down. split the list in half, call the first half with the cell and the second half with the home phone, wait three days and switch it around so in-fact your calling the twice....

 

keep the stats and let us know please

Share this post


Link to post
Share on other sites

×
×
  • Create New...