One of the most important things I did when I started out as a new investor was to record my calls with sellers…
Once the call was done, I played the recording to see how I sounded and to see how smoothly I made an offer. Not surprisingly, I had a lot of trouble explaining how lease option and subject-to deals worked.
It took me over 4 months to close my first deal and this was one of the top reasons. When I explained a sub-2, my explanation was so confusing it’s no wonder the seller had no idea what I was talking about. Of course, over time I perfected my scripts and I can now easily close a deal when I have a motivated seller on the phone.
But the reason I bring this up is because this is something I have all new investors do, that I work with.
Often times we have no idea how bad we sound on the phone. We probably think we’ve done a great job, but when you listen to the recording it will make you laugh and make you sick at your stomach at the same time.
Earlier this week, I had a new investor send me a call he had done so I could critique it. Like all new investors this person still did not properly explain the benefits of a sub-2 to a seller. I was totally confused listening to the call, but the good news is, that subject-to scripts can be learned and perfected over time.
However, there was something far worse that I noticed this investor did on the call.
It’s something almost all investors do. So what is it?
When this investor was getting ready to make a low-ball cash offer I could hear the nervousness in his voice. He had no confidence when he made the offer to the seller and you could hear the timidness in his voice.
Sellers do not like to work with people who are weak and who don’t seem confident in their business. All of us get that uncomfortable feeling in our stomachs when we make the super low offer to a seller. Nobody likes to get yelled at or rejected. But when the time comes to make that offer you better speak in a calm and confident voice.
Most importantly, once you make that low-ball offer you need to shut-up.
I’ve heard investors who’ve made a low offer and then just kept on talking and apologizing for the low offer and talking themself out of any deal they might have had. It sounds weak and like a complete train wreck.
Do whatever it takes to improve your scripts and to improve your confidence on the phone and you will start to close more deals. People like to work with “winners” and winners don’t sound like wimps on the phone.
Photo: Esparta
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Article Author: Jason HansonJason has written 185 articles for us.
Visit Jason's Website: http://www.PrimoCoach.com
Jason R. Hanson is the founder of National Real Estate Investor Month and the author of “How to Build a Real Estate Empire”. Jason specializes in purchasing properties “subject-to” and has purchased millions of dollars worth of property using none of his own cash or credit.
Joshua Dorkin
{ 11 comments… read them below or add one }
Hi Jason,
I actually used to record all of my calls with sellers when I was first getting started. I had an entire tape (I was using an old school cassette thingy) filled with me making an absolute fool of myself.
Even though it was hard to listen to, it really helped me out a lot to be able to go back and listen to my calls and figure out what I needed to work on in my presentation.
It took me awhile to get comfortable with making low-ball offers, but you are right- it makes a HUGE difference when you start making your offers with confidence as opposed to making them like a wimp and apologizing.
Great article!
.-= Stephani´s last blog ..Saturday Night Reader Mail: Which Contracts Do You Use When Wholesaling an REO? =-.
what service or how did you record phone calls?
I’ve wanted to do that for a little while now as I’m not afraid to embarrass myself, I also know its a great learning tool.
Just letting everyone know that in many states you MUST disclose that you are recording the call or you’re committing a felony. It is one thing to record your end of the call, but to record the other party, you will need permission across much of the US.
Hey Josh,
Do you know if that applies when they call you? Or does it matter?
Steph
I’m not a lawyer, so I’m not certain . . . just google something like “YOUR STATE, recording phone calls, law” and see what you find out. That said, I doubt it makes a difference.
I remember when I was new our sales trainer used to play tapes over and over of real estate related phone conversations. It worked really well for all of us. As far as investors go, you are right about how their nervousness makes them sound like fools. You can tell the experienced ones who make their offer and shut up.
One other Key point to make which most people are not aware of. Most states, if not all now, require (under law) that you also after introducing yourself, Ask for permission to continue. Same principle as opt in/opt out marketing. If you incorporate the permission statement into your introduction with the assumption that it is OK to continue-and the client doesn’t stop you-then your good to go!! With regards to recording the conversation? You would be much better off finding a partner to practice with first, who can ask you tuff questions specific to your needs before you cold call some one unprepared . In phone sales we call that Burning a Lead!
.-= matt mathews´s last blog ..A LOOMING DOUBLE BUBBLE-PART 2 =-.
I agree it’s helpful to practice on someone first, but there’s really no substitute for the real thing, in my opinion. At some point you have to get on the horn and start talking to real sellers. That’s the best way to learn.
Steph
.-= Stephani´s last blog ..Saturday Night Reader Mail: Which Contracts Do You Use When Wholesaling an REO? =-.
Jason,
A very relevant article.
Those people that underestimate the power of scripts, have a lot to learn.
Those that are effectively using scripts are ahead of the game.
I do agree with you when you said…”Winners don’t sound like wimps on the phone”
In order to not sound like a wimp, one has to have confidence. This confidence can be obtained through practicing those scripts…
Regards,
Neil.
.-= Neil Uttamsingh´s last blog ..A message from the author =-.
I think you hit it right on the nose. So many people don’t realize what attitude they are portraying over the phone. I used to record my phone conversations all the time and then study them. And I will tell you, it improved my phone etiquette like you wouldn’t believe! Sounding confident in making my offers to a big real estate companies is something I still struggle with. It is hard not to get intimidated when talking to the big names. I haven’t been able to come up with a good cure for this yet. I think really the only thing to do is just keep at it- eventually, with practice you will become more confident. You just have to be willing to keep putting yourself out there.
Great article and topic! This is a really simple idea that can help exponentially. Study the tape of someone great negotiating or talking to sellers and you may notice their words coming out of your mouth naturally. Good post!