Cold calling makes me physically ill

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Cold calling makes me physically ill

Geordy Rostad
Real Estate Broker · Kirkland, WA · Member since 2018 · 549 posts · 411 votes

I've been dealing with some wholesalers here in Washington. I'm trying to find an apartment building to BRRRR. Nothing the wholesalers have sent me has made much sense. So I decided to strike out on my own and procure deals for myself... one problem. I HATE cold calling. Every time I've ever tried it, I've literally felt sick to my stomach. I don't like it when I get those calls and I feel like no one else does either.

I think my approach is ok. I tried to call, let the owner know I’m an investor who wants to buy something like they have. I just had a couple of questions like, hey, do you have a good property manager? Or hey, what sort of rent are you getting? Still getting blown out of the water. I’m always amazed when I hear that this strategy is working for someone. Most of my numbers seem to be disconnected.

Anyone have any good advice? I feel like this is the best way to get the absolute best deal but I’m just not sure I’m cut out for this approach.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y

FWIW file.. owners I know here in the northwest that have MF are constantly being cold called by Commerical brokers who already know what their clients will pay.. IE hey I can sell your complex for 15 million.. that's what they lead with NOT hey how much are your rents.. to me that would come last and in due diligence.

I followed a linear path to you when I came to Oregon SW Wa and was buying timber rights and timber land.

who was my target market..  65 to 100 year old owners who had lived on the land forever.. NOT in the least tech savvy 

Letters only worked for those out of state.. I did some radio on Christian radio stations those worked pretty good.

But the best was cold calling.. I hired very good phone people their only job was to get us an appointment to meet.. 

I learned from some of the best land sales men of the day the guys that sold dirt in the 50 s 60s 70s.. Watch Glenn Gary Glenn Ross for context..  You cannot qualify leads on the phone .. the phone is only used to set up a face to face.. 

My first 7 years in the bizzness all I did was in home presentations..  and with such a small target this should be your only goal on the phone..  Hey can I meet you Monday at 3pm or would Wed at 5 be better then silence LOL.

My partner in the timber business when he went on the appointments he was our closer.. He always had a cooler full of smoked or fresh Chinook and fresh or Jerked Elk meat he lead with that gift first and foemost.. I know it sounds funny but you establish a reporte'

Next best thing I did for these folks and the reason I know it works because it worked on me.. 

You have such a small list.. you hire a beginner attorney and your have your attorney write them a letter expressing your interest in the property.. very professional polite etc.. there is not a person on the planet that will not open a letter and read it from a law firm..  

Hope this gives you some arrows in your quiver.. these are tried and true methods..  when you have your target owners like we did with no computers these other methods can and do work.

Although right now MF is soup de Jour like I said tons of competition.. 

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JLH Capital Partners51 Review
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  • Chinmay J.
    Investor · Northern, VA · Member since 2016 · 1k+ posts · 904 votes
    7y
    Originally posted by @Geordy Rostad:

    I've been dealing with some wholesalers here in Washington. I'm trying to find an apartment building to BRRRR. Nothing the wholesalers have sent me has made much sense. So I decided to strike out on my own and procure deals for myself... one problem. I HATE cold calling. Every time I've ever tried it, I've literally felt sick to my stomach. I don't like it when I get those calls and I feel like no one else does either.

    I think my approach is ok. I tried to call, let the owner know I’m an investor who wants to buy something like they have. I just had a couple of questions like, hey, do you have a good property manager? Or hey, what sort of rent are you getting? Still getting blown out of the water. I’m always amazed when I hear that this strategy is working for someone. Most of my numbers seem to be disconnected.

    Do a targeted direct mail campaign, so the property owners are calling you and not the other way around.. Perhaps better suited for your personality if you are getting sick..  

    3Reply
  • Amy Heitner
    Specialist · Huntingdon, PA · Member since 2018 · 162 posts · 147 votes
    7y

    Hi @Geordy Rostad,

    This is the age of inbound marketing, have you thought about an online presence plus SEO strategy?

    3Reply
  • Geordy Rostad
    OP
    Real Estate Broker · Kirkland, WA · Member since 2018 · 549 posts · 411 votes
    7y
    Originally posted by @Amy Heitner:

    Hi @Geordy Rostad,

    This is the age of inbound marketing, have you thought about an online presence plus SEO strategy?

    Indeed, I have thought about it. I probably will do that. But the list that I'm working is mostly apartment owners in their 70's-90's. My SEO strategy probably won't capture them no matter how good it is. I was trying to do something different. The list is really short. Only like 35 properties. My plan was to build some rapport and contacts within that group. 

    I might have someone call them all and warm them up for me. Anyone tried that?

    0Reply
  • Chris R.
    Rental Property Investor · Southern NH · Member since 2017 · 87 posts · 100 votes
    7y

    @Geordy Rostad I’ve been in sales for 19 years and I can tell you this is normal! You just need to come up with a brief intro that gets your point across and then a few follow up questions. Count on the first 5-10 calls being awkward and use them as a learning experience but you’ll soon develop a nice flow that’s impactful. Real estate investors/apartment owners understand this process better than if you’re calling homeowners so just be yourself. Also, I like reaching out to local apartment owners as a networking tool and if you sense there’s a need from them to sell, then go down that path. It’s all about finding the need or “pain point” from the owner that’s key. If there’s a reason they’re going to sell the place, it’s your job to figure that out through conversation and questions. Good luck...and be patient with yourself while you get comfortable calling.

    8Reply
  • Matt Nusbaum
    Rental Property Investor · Annapolis, MD · Member since 2011 · 232 posts · 170 votes
    7y

    @Geordy Rostad being in sales myself I can totally relate and absolutely agree with @Chris R. it's 100% normal to feel that way when you're first starting out with cold calling. The more you do it and the more you practice the better it will get. You could also try role playing with a friend to gain some repetition and confidence. Have them act out different personalities and scenarios. 

    4Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y

    FWIW file.. owners I know here in the northwest that have MF are constantly being cold called by Commerical brokers who already know what their clients will pay.. IE hey I can sell your complex for 15 million.. that's what they lead with NOT hey how much are your rents.. to me that would come last and in due diligence.

    I followed a linear path to you when I came to Oregon SW Wa and was buying timber rights and timber land.

    who was my target market..  65 to 100 year old owners who had lived on the land forever.. NOT in the least tech savvy 

    Letters only worked for those out of state.. I did some radio on Christian radio stations those worked pretty good.

    But the best was cold calling.. I hired very good phone people their only job was to get us an appointment to meet.. 

    I learned from some of the best land sales men of the day the guys that sold dirt in the 50 s 60s 70s.. Watch Glenn Gary Glenn Ross for context..  You cannot qualify leads on the phone .. the phone is only used to set up a face to face.. 

    My first 7 years in the bizzness all I did was in home presentations..  and with such a small target this should be your only goal on the phone..  Hey can I meet you Monday at 3pm or would Wed at 5 be better then silence LOL.

    My partner in the timber business when he went on the appointments he was our closer.. He always had a cooler full of smoked or fresh Chinook and fresh or Jerked Elk meat he lead with that gift first and foemost.. I know it sounds funny but you establish a reporte'

    Next best thing I did for these folks and the reason I know it works because it worked on me.. 

    You have such a small list.. you hire a beginner attorney and your have your attorney write them a letter expressing your interest in the property.. very professional polite etc.. there is not a person on the planet that will not open a letter and read it from a law firm..  

    Hope this gives you some arrows in your quiver.. these are tried and true methods..  when you have your target owners like we did with no computers these other methods can and do work.

    Although right now MF is soup de Jour like I said tons of competition.. 

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    11Reply
  • Megan Hirlehey
    Pittsburgh, PA · Member since 2016 · 140 posts · 119 votes
    7y

    I hate cold-calling too. I procrastinate the worst with this, like I'll clean my whole house, pick up all the dog poop and then go mow my 2 acres of hills with a push-mower before sitting down to make any kind of cold-call.. THE WORST

    However, one of the things I started to do is "practice" on leads I don't really care about. For example, a low-priced FSBO that is like two hours away from my house.. I don't really want that sale anyway so there isn't any pressure to close a deal, but I still get the same "practice" and get used to the process (and if by some miracle I do still get the listing, I can pass it off to another agent in my firm who is closer for a referral fee). When I'm going to make expired listing or FSBO calls, I usually start off with 3-5 leads that I have no desire to actually work. Then by the time I get down the list to the listings I really want, I'm warmed up and have my script down.

    9Reply
  • Charlie Shew
    Handyman · Lebanon, TN · Member since 2019 · 31 posts · 13 votes
    7y

    Geordy, 

    I feel your pain! As a realtor I have tried the cold calling route. I have called homes to let them know about a nearby home that has sold, or one listed or for an open house. My goal is just to get an email address from them. When I dial 100 numbers I normally get about 30 answering machines, 10 people pick up (2 will hang up) 7 not interested and maybe on a good day I'll get an email. 

    What you could do is call them and ask for their help. Tell them you are looking for something similar to what they have and do they know of anyone that might be interested in selling. If the owner is interested let him tell you. I would also ask if he would be interested in hearing about any deals you come across, and if you have a conversation invite yourself over to walk his property, he might just give you some pointers. 

    Charlie

    3Reply
  • Geordy Rostad
    OP
    Real Estate Broker · Kirkland, WA · Member since 2018 · 549 posts · 411 votes
    7y
    Originally posted by @Charlie Shew:

    Geordy, 

    I feel your pain! As a realtor I have tried the cold calling route. I have called homes to let them know about a nearby home that has sold, or one listed or for an open house. My goal is just to get an email address from them. When I dial 100 numbers I normally get about 30 answering machines, 10 people pick up (2 will hang up) 7 not interested and maybe on a good day I'll get an email. 

    What you could do is call them and ask for their help. Tell them you are looking for something similar to what they have and do they know of anyone that might be interested in selling. If the owner is interested let him tell you. I would also ask if he would be interested in hearing about any deals you come across, and if you have a conversation invite yourself over to walk his property, he might just give you some pointers. 

    Charlie

    Thanks Charlie! That was sort of what my approach was going to be. "Hey, I'm a dumb new guy trying to get into the business. What sort of rents can I expect in the area? Do you know of a good property manager?". I wasn't calling to ask them "Hey, what are your rents so I can use that to calculate how much to offer on your property."

    As a real estate broker, I've NEVER cold called. Never needed to. I've just always worked my sphere and had enough business that way for my needs. Problem is that I don't really have many apartment owners in my sphere other than ones I have sold the apartments to. I found those deals for my buyers on the MLS or CBA but I've come to find out that most apartment deals are being put together off-market.

    That's the thing that's driving me nuts here. The good deals are being procured from people who mostly are fed up with being barraged with calls and letters.

    0Reply
  • Matthew Fassett
    Rental Property Investor · Lehi, UT (Lehi) · Member since 2018 · 91 posts · 99 votes
    7y

    The reason you hate cold calling and are not good at it is because your mindset is all wrong. If your calling someone because you know you can help them and have something of value to offer them they love you you love them and everyone is happy. Try to look at cold calling a little differently.

    4Reply
  • Avery Gilmer
    Investor · Phoenix, AZ · Member since 2013 · 193 posts · 37 votes
    7y

    I would see how I can bring value to the owner rather than selling them. Maybe calling an apartment owner & seeing if they would like to hear your strategies on how to increase their income / decreasing expenses... and from there just build rapport..

    3Reply
  • Geordy Rostad
    OP
    Real Estate Broker · Kirkland, WA · Member since 2018 · 549 posts · 411 votes
    7y

    @Matthew Fassett You're 100% right. My mindset is wrong on it. Honestly, I think I have some PTSD about cold calling from another job I did. I used to do social engineering tests for a computer security company. We would call the customer's employees and try to trick them into clicking links infected with viruses so we could report findings back to the clients. I never felt right about it because yes, we were helping the client but the individual employee would be in hot water if we fooled them. It was a bad scene. Obviously what I'm trying to do here is not nefarious but I'm still having a hard time getting around the fact of the matter that personally, I HATE receiving cold calls. I always try to operate with a golden rule mindset so this is a hurdle. How do I wrap my head around doing something to others that I would never want done to me?

    @Avery Gilmer In my cold calling, I never said "Hey there, I'm interested in buying your building". Never anything close to that. But I have a feeling that many people before me have already burned through all of the patience of the people I'm trying to call. I have no idea what volume of such calls these people receive is but I expect it's relatively high. I was calling property owners in Tacoma and now I've heard Tacoma is one of the hottest markets in the country.

    1Reply
  • Avery Gilmer
    Investor · Phoenix, AZ · Member since 2013 · 193 posts · 37 votes
    7y

    @Geordy Rostad Yeah I was one those people 5 years ago who started off with the "I'm interested in buying your building" lol waste of time.. I got more hits by just sending out letters to Mom & Pops.

    1Reply
  • Matthew Fassett
    Rental Property Investor · Lehi, UT (Lehi) · Member since 2018 · 91 posts · 99 votes
    7y

    you have a good point and a good question. And the answer is you shouldn’t. If you hate receiving cold calls then your mind will never want to cold call others BUT tell me something. When you receive those cold calls that you hate. Are they adding any value to your life? Do they have something that could change your life for the better?  That’s what I do everyday on the phone. I call people to make their life better I call people to educate them on something I breathe everyday and they don’t. I call people to make sure they are making the most money they can.  If you can call someone and add value to their life they don’t hate your call and I guarantee if someone called you and could add value to your life or make your life better. You wouldent hate it either. 

    2Reply
  • Geordy Rostad
    OP
    Real Estate Broker · Kirkland, WA · Member since 2018 · 549 posts · 411 votes
    7y

    Thanks @Matthew Fassett and @Avery Gilmer, this is exactly the sort of insight I was looking for.

    I did cold call a neighbor in an area I was trying to purchase in and asked him about a house near him that was in foreclosure. We had a great conversation and I did feel great about that because I did have something to offer him. I wanted to help him out by fixing an eyesore near his property and improving his property value and safety. That was a pretty easy call to pick up and make.

    2Reply
  • Syed H.
    Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
    7y

    Keep calling. it gets better/easier. Try to stop qualifying them as much and set a meeting. You don't sell over the phone. You sell them in person. 

    1Reply
  • Lee Bell
    Real Estate Appraiser · Isabella lake, CA · Member since 2018 · 628 posts · 491 votes
    7y

    I don't like phone calling either. But it helps if you have a pitch. A long time ago I worked commercial collections. We called up mostly small businesses to demand payment for our clients. No need to be too nice, or for them to like you at all. Point is you need a pitch. File this under fwiw too.

    0Reply
  • Lynne Garris
    Member since 2019 · 112 posts · 15 votes
    7y

    @Geordy Rostad I am a newbie and just starting with wholesaling and actually I am gonna make a offer to day with a bank but go on YouTube and watch Mrflipperupper he does coldcalling live and shows exactly what to say. He’s amazing follow him and do what he does and you will be fine I am sure. I already made my mind up to have 3 different offers before I were to get off the phone like he does and build some interest in them. Hope it helps and Goodluck.

    1Reply
  • Owen DashnerPro Member
    Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
    7y

    Get referred to them by someone who you know that already knows them.  That's the best way to turn a cold call into a warm contact.  Take your list and start researching who in your center of influence knows these people (or knows someone who knows them).  With LinkedIn, Facebook and all of the other social media tools out there, it should not be hard.  Then you can say, "I was talking to John Smith (person referring you) about real estate, and he mentioned that you are also an apartment investor and are a good  guy/gal, and thought we might enjoy meeting each other."  

    Keep it simple.

    1Reply
  • Steve Bracero
    Real Estate Agent · Westboro, MA · Member since 2016 · 1k+ posts · 471 votes
    7y

    @Geordy Rostad

    I would set your intention before the call. Know it will be awkward at first, but over time you will become better on the phone 

    0Reply
  • Brent Crosby
    Rental Property Investor · Farmington, UT · Member since 2018 · 171 posts · 148 votes
    7y

    @Geordy Rostad you could potentially get a virtual assistant from upworks or elsewhere to do this for you. Then your energy could be spent elsewhere.

    1Reply
  • Charlie Shew
    Handyman · Lebanon, TN · Member since 2019 · 31 posts · 13 votes
    7y

    I should add, a great book about selling (in general) I enjoyed was Fanatical Prospecting by Jeb Blount. He talks about cold calling and other methods.

    Charlie 

    1Reply
  • Geordy Rostad
    OP
    Real Estate Broker · Kirkland, WA · Member since 2018 · 549 posts · 411 votes
    7y

    @Brent Crosby Yeah, that thought crossed my mind too. Getting a VA to warm up the leads for me. I think that could be a really good way to go.

    @Charlie Shew Thanks! I will add that book to my list.

    0Reply
  • Adam Odom
    Columbia, SC · Member since 2014 · 133 posts · 190 votes
    7y

    @Megan Hirlehey brings up a great point. Don't waste a terrible pitch on the best leads. Get better and better on the not so great ones because you'll have less nerves (nothing to lose) and figure out your style. Funny enough - I HATED talking on the phone and my first job out of college I called about 40 people a day. That will make you more comfortable in a hurry! I never thought I'd get used to it but it's second nature now. The best salespeople don't "sell" anything - you just have a conversation with people and it always seems to work out better.

    2Reply
  • Account Closed
    Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
    7y

    @Geordy Rostad cold calling for off market deals is a volume game. You shouldn't be making the calls. Hire a cold caller and get a software that makes a lot of dials. Make it your goal to get to 600-800 calls/day with a single caller and it will work.

    As far as your apprehension to cold call- you gotta learn to sell somehow! Every salesperson feels that way at first, and some hold on to that feeling for a while.  If you're more confident in your plan on the call, your purpose, and your value you won't get that sick feeling. In your case I think these calls are a waste of your time, but there are other cold calls you should be prepared to make that are not a waste of your time. Just gotta cowboy up and make the call!

    1Reply
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