Do you know that there are a few basic cold calling steps that you can take to improve your closing rate? Keep reading the article below to explore these steps.
According to the definition, real estate wholesaling is the process in which an individual or a wholesaler acquires a property and assigns the same contract to an end buyer. But to put it simply, real estate wholesaling is about sourcing opportunities by constantly having quality conversations with distressed property owners.
But that’s easier said than done. The process involves several crucial steps. From finding distressed property owners to getting their numbers, there’s a lot that a wholesaler needs to do. And in this article, we’re going to take you through 6 basic cold calling steps that you need to take for finding the right leads and converting them into opportunities.
Step 1: Find Distressed Properties
Any property that is under foreclosure or being sold by the lender is a distressed property. Narrowing down your focus on distressed properties will allow you to save time and money by only contacting those leads who are most likely to get converted. Most of the wholesalers land on their first deal by driving for dollars.
In the real estate world, driving for dollars means the act of driving through a specific locality and taking notes of properties that appear to be either distressed or abandoned. Now the more distressed properties you’re able to find and target the higher your will be of finding good opportunities.
Step 2: Get Their Phone Numbers
It doesn’t over with just finding distressed properties, the next step involves finding the owner’s number so that you can contact them and get a meeting scheduled. Now to find the numbers might seem like a difficult task but there’s a simple solution to this, use a skip tracing company or tool. Skip tracing is the method that is used to find and verify a person’s demographics. The method involves gathering and validating information about a person as much as possible using a tool or a website.
Step 3: Call Them
Now here comes the most crucial step– calling the prospects. The key here is to sound like a neighbor rather than sounding like a company. The reason being that, when clients start to feel more comfortable while talking to you, they start to open more with you. So don’t hesitate and talk like a neighbor.
There are just six responses they can give to you after you propose your offer to them: yes, no, maybe later, how much will you give me, who are you, and how’d you get my number. Have a cold-calling script and prepare responses for each of these responses. Having a script will help you to discuss all the important points and get take the conversation in the right direction.
Also, try to gather all the information on the call. Now prequalifying is based on four pillars– the condition of the house, the timeline for prospects to sell it, their motivation to sell it, and the price that they want.
Step 4: Get a Signed Contract
Getting a contract signed depends upon three things: the price, the terms, and the trust that you’ve built for yourself. You can either get the contract signed in-person or through any digital medium.
Step 5: Exit Strategy
What do you want to do? Assign the deal or want to buy the property and list it, or you want to fix-and-flip or live in it. There are several exit strategies to choose from. However, you need to choose the one that fits you the best as per the given situation.
Step 6: Rinse and Repeat
Take the above-mentioned basic cold calling steps over and over again. This will help you to build your pipeline and allow your wholesaling business to keep thriving.
So these were the 6 basic cold calling steps that you need to take for doing cold calling in a strategic way. And now it’s your turn to get started.