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For Rent ads

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Anyone here have good experience with cold calling "for rent" ads?

 

Wendy Patton and Peter Conti both recommended cold calling "For Rent" ads for leads. So there has to be a good system to make that work.

 

Personally, I have found it very inefficient. I have significantly better response in FSBO. Not to mention most of the time the landlord is only renting out a part of the house. However there are a lot of "For Rent" ads. I can always call and not worry about run out of leads. if anyone here do consistently call those ads i would like to hear a bit about that experience.

 

1. how to introduce the RTO concept

2. what type of rent ads to call

 

meanwhile i will keep on experimenting with it. :lol:

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I've had a VERY hard time finding landlords who are willing to sell, and the few who are end up being RTO savvy and demand a premium rent and price that kill any chance for a deal, there's rarely even room for a small CA fee. Calling FRBOs isn't an efficient use of time for this area anyway.

 

If you're running out of FSBOs to call there are two other lists you can go for:

1. Active or expired MLS listings..

2. Geographic or demographic farm.

 

Expired listings aren't that easy to come by in Ontario because realtors can lose their licenses for giving that info out to a 3rd-party, but these will be the best quality leads. Active listings are more difficult to get phone numbers for than FSBOs, but there are a lot more of them. And farming an area or type of owner means you'll spend most of your time talking to people who have no interest in selling or renting, but you'll have no limit of numbers to call.

 

So there are pros and cons for each list.

 

If you're interested in geographic farming look up Froy Candelario of SuperStar Realty in Los Angeles. He's the real estate cold calling king. 400 calls a day! 1,200 sales a year! with only 4 support staff! I hear his overhead is only 10% of any other agents selling anywhere near as many houses as he does.

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Anyone here have good experience with cold calling "for rent" ads?

Calling FRBOs has been the path of least resistance for me. RTO is similar to what they're doing right now, except with better tenants and a possible sale at the end. They can stop taking calls, stop showing the house and end up in a better position than if they go it alone. Their houses are usually vacant and ready to go. The worse that can happen, whether I find a T/B or not, is they keep doing what they're doing. This is a very simple sale for the lease purchase investor.

 

FSBOs come in two flavors: SMART FSBOs, which make up only about .00001% of the market, are rarely seen. These are the guys who price their house right, have it ready to sell and move it within two weeks.

 

Typical FSBOs (99.9% of the market) have their property priced higher than even the most optimistic realtor and don't know diddly-squat about comps. They are already mentally ready to close, which is not what I'm offering. They are also getting hit up by agents for a listing and investors with every kind of "can't miss" creative financing proposal. Many can't go on to the next thing without selling their house. If they can, you have to convince them to reverse their decision to sell, rent the place and put a *possible* closing off for 1-2 years. FSBOs, in my opinion, are too messy to deal with.

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interesting. you have some good experience here.

do you mind sharing a bit about your approach? how do you introduce the concept to them?

 

what i've done with FRBO is i ask them if they are ok with leasing for a minimum of 2 years, and if yes then would they consider if i buy it at the end of the leasing period. I have not tried to sell them the idea that i'll be manage the tenants. the response is pretty pretty pretty low

 

 

also do you pick and choose the ad that you call? you only call "entire house for rent"? or do you just call them all?

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FSBOs are much more complex than that. Although it's true that those two groups of FSBOs exist, there are several other categories as well. There are those who have priced their house well but are clueless about marketing so hardly anyone knows about it. Then there are those who don't know how to close an interested buyer. Also there are those who start out overpriced, realize their mistake and correct it, but it's too late (buyers have gone elsewhere), then they get desperate and reduce more and more until the house is waaay under priced. Then only does it sell, but anytime leading up to then they will JUMP at your L/O offer.

 

The key to FSBOs is to find one who is already thinking: "If I don't sell this place soon I'm going to have to rent it." That way you don't have to convince them of anything, you just have to be there to give them what they need when they decide they need it.

 

Regardless of whether you're talking to a seller or a landlord, you have to find someone who is open to doing the opposite of what they're advertising. If you're talking to a professional landlord who's building a rental portfolio for retirement or posterity, you can forget about them being open to selling in a year or two. By the same token if you're talking to a home owner who needs to sell and get every penny of their equity in cash to buy their next house, you can equally forget about them considering renting.

 

BUT if you can find a landlord who is thinking it might be less trouble to sell, or a seller who is frustrated because their house hasn't sold. Then you don't have to work very hard to close a deal out of that conversation.

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The key to FSBOs is to find one who is already thinking: "If I don't sell this place soon I'm going to have to rent it." That way you don't have to convince them of anything, you just have to be there to give them what they need when they decide they need it.

 

I agree, Doug, that IS the guy we're looking for and no doubt they exist. Needle in a haystack around here, though. I'm jaded!

 

Made in Canada, you can get through to a FRBO with just one question: "Would you be open to selling your property at the end of the lease?" Depending on your market, you can stick "I'm not a realtor" before or after that. I always use it; it's a selling point. :lol:

 

"No" is self-explanatory and ends with "thanks for your time." A "Yes" opens up all sorts of possibilities. Let them talk. They may eliminate themselves in a couple of minutes, OR they will tell you exactly what you need to do to sign them up. If you notice yourself talking too much or "selling" too hard, back off and listen. Then you can confidently present solutions that address their problem(s) rather than hoping they'll be dazzled by a canned presentation.

 

I don't call ads marked with broker, agent or mgt company. I also avoid townhomes, condos, horse property or anything "unique." That eliminates 80% of the classifieds, but what's left is my target market. Hope that helps!

 

Dan

Freedom Creek LLC

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Dan and Doug,

 

Thanks for the interesting points. Seems like alot of what works depends on geographic location.

 

Phil

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they will tell you exactly what you need to do to sign them up. If you notice yourself talking too much or "selling" too hard, back off and listen. Then you can confidently present solutions that address their problem(s) rather than hoping they'll be dazzled by a canned presentation.
That is so true, and I really like the way you put it: "they will tell you exactly what you need to do to sign them up". All you need to do then is decide if their request is reasonable and works for you, and tell them yes or no.

 

I guess motivated people are the same wherever you go, you just need to find the source of them that works for you in your area, be it FRBOs, FSBOs, expireds, actives, agents, referrals etc.

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Ild like to hear more from other experienced members about this ... lets keep this topic going!

 

 

Ive worked on short sales exclusively for quite awhile and am going to start hitting up LO's very soon. From the VERY little effort I have put into the LO arena I did notice it seemed that I got a much better response from the FRBO's rather than the FSBO's ... but I literally only spent an afternoon calling each ... so we are talking VERY limited and probably not even enough to make that kind of a statement.

 

Definately got more of the FRBO's ears perked than I did FSBO's ... however, in that short amount of time. Could have been the weather, could have been the time of year, could have been nothing ... I dont know because I never kept at it and got sidetracked, went back to short sales ... therefore I have nothing to compare that afternoon against. Although I will shortly.

 

As mentioned Ild like to hear more about approaches on both sides of the fence to tell you the truth. I have searched the forum quite a bit but this seems to have the makings of what could be a very informative thread for newbies ;)

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Great ideas guys...

 

Personally, I strictly call FRBO. This has landed me signed contracts and continue to do so.

 

A few pointers I would suggest are the following:

 

1) When I call, I speak with the owners as though I'm looking to rent the place myself. After asking them general questions about their home, I say, "If I were to rent out your property for the next year, would you consider selling it to me?"

If you use that line, you will be surprised at the amount of sellers who will say "yes". That's when I immediately go into my script about how I work for a company that finds t/bs who are qualified.

Imminently, you will get sellers saying, "oh, this place isn't for yourself?" That's when you respond, "no, but why does that matter if you're getting your rent and asking price"? Never once have sellers disagreed with that point... *knock on wood*...

Then it's just a matter of closing out the deal, I usually tell them to sign or I'll get Doug Pretorius after them! As soon as they hear the mention of his name though, their signatures are inked into the contract.

 

2) Make the calls. Do whatever you need to do to make the calls. It's a psychological game you play with yourself. Pick up the phone and call, it won't kill you. ;)

 

Good luck guys, hope I've helped!

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I usually tell them to sign or I'll get Doug Pretorius after them!
An offer they can't refuse!

 

their signatures are inked into the contract.
In blood.

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Anyone here have good experience with cold calling "for rent" ads?

 

Wendy Patton and Peter Conti both recommended cold calling "For Rent" ads for leads. So there has to be a good system to make that work.

 

Personally, I have found it very inefficient. I have significantly better response in FSBO. Not to mention most of the time the landlord is only renting out a part of the house. However there are a lot of "For Rent" ads. I can always call and not worry about run out of leads. if anyone here do consistently call those ads i would like to hear a bit about that experience.

 

1. how to introduce the RTO concept

2. what type of rent ads to call

 

meanwhile i will keep on experimenting with it. ;)

 

 

they also mention to age the ads on those papers by a few weeks, And yes it has worked for us in the past.

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actually i've tried that too. ;) (got it from REIclub?)

However it didn't as well for me.

 

with FRBO

usually how do you guys come to agreement with the sales price? how do you determine that so that the seller is satisfied.

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hey i need to bump up this topic again.

i've ran out of FSBO leads, so i've been calling FRBO. Some people here, surprisingly (or not) do not know what is a Lease with purchase, so i usually say

 

me: "would you consider selling the house to me at the end of the terms?"

seller: "sure that's an option."

Me: "alrighty...call you back when i figure out what to say next."

 

 

u get the idea. I am not sure what to do to bring out the sales price issue, when most of them have not seriously considered selling.

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