Talking to a complete stranger can be intimidating. You don’t know what to expect, and as a new real estate wholesaler, or even sometimes a veteran, it can be very uncomfortable. But cold calls are an essential part of the wholesale business. And one that everyone can master with a little effort. Many deals would never come to reality if you did not have the confidence and the skills needed to pick up the phone and start to build a report with a distressed property owner.
The Benefits Of Cold Calling
The biggest reason to cold call is to broaden your reach. You can send out mailers, emails, and other correspondence, but never give up the opportunity to speak to the owner of a property. In addition, when you make a cold call, you are in the driver’s seat. You are initiating the time that you call, so there is a much smaller chance of a seller calling you at a late hour or on the weekend because they just read your mailer. Also, there is virtually no cost associated with a phone call. So this investment of your time is very cost-effective.
Unfortunately, some wholesalers shy away from cold calling because of fear. They are afraid of offending the property owner. They fear making a mistake, providing wrong information, or losing the opportunity with some other error. However, with practice, you can refine your cold call process and build your confidence to eliminate all of these worries when you pick up the phone. These few tips will help you turn your least favorite task into your most profitable and enjoyable one.
- Send a mailer first. This takes the call from a totally cold call to a slightly warm one. The property owner will know your name and the reason for your call if he or she has received the mail. And it provides you with an opening for your request. Mention the mailer and that you are following up to see if they are interested in discussing the sale of their property.
- Grow your confidence with practice. As a new wholesaler, you are going to need to become comfortable talking to others about your business, what you do, and what you have to offer. Practice this conversation with friends and family. This step will not only increase your comfort level, but it will build your network as well. As more of your family and friends know about your business and ask questions about your successes, you could feel encouraged to continue with your cold calling.
- Timing is critical. We have found that calling professionals between 9 a.m. and 11:30 a.m. provides the best results. For contact with homeowners, Sunday afternoons and weekday evenings are the best times to contact potential sellers.
- There is nothing to mess up. When you are cold calling, remember that there is nothing that you can mess up. The only mistake is not making the calls. You have no relationship with the call recipient, and he or she has no expectations for you. There is nothing to lose but everything to gain.
- Keep first conversations simple. Cold calls are only about establishing that the property owner might be interested in selling. So you only want to introduce yourself and mention that you would like to discuss making an offer on their property if they are open to it. Then wait for a response. You will learn a great deal by listening to the answer and any other information that is volunteered. If you have any specific information about the property, such as seeing a water leak in the yard and calling to make the owner aware of the situation, the response is usually very positive and appreciative.
- It is ok not to know everything. Cold calls have no script to answer every question that the call recipient could throw at you. What is important is that you are honest. If you don’t know the answer to a question, respond by saying that you will find the answer and call the property owner back as soon as you can provide accurate information. Everyone respects an honest answer, even when it is that you don’t know the answer.
Cold calls are an essential part of real estate investing. Once you master this tool, you will find deals everywhere you look. And with the confidence to make that first call, you will be the first to discover many property owners who are looking for a fast cash offer to sell a distressed property.