I'm a new commercial real estate agent. Of course, like any newbie in this business, all my business is generated via cold calls. Since this is such a crucial means of hitting the ground running, I would like to know what works and what doesn't.
Agents: What cold call tactics seem to work for you? What do you say when prospecting for investor clients? What tone of voice do you use? Are you relaxed, balanced or direct in your approach?
Investors: When you are contacted by an agent via cold call, how would you like to be approached? What information do you want to hear? Who do you choose to give a chance on the phone versus hanging up quickly?
Investor perspective: I get a lot of calls from brokers. The ones that I like the most are brief. Ask me if I'm in the market to buy. If yes, ask me what my buying criteria is and add me to their database so they can email me new listings as they come up. I get about a dozen or so apartment complexes in my inbox each day and I can quickly sort which ones to underwrite and which ones to delete.
Ask me if I'm considering selling. If yes, start the conversation (that's about as far as I can help you on that line of questioning because my answer is always "no" or I already have a selling broker in mind, that's the broker that got me the deal in the first place).
The only time I want a call that is more involved than that is if the broker has a specific listing (especially an off-market listing) that I should pay specific attention to, based on their knowledge of my buying criteria and a compelling story behind the deal.
@Brian Burke Thanks for informative reply. Since I'm a brand new agent and do not have any listings, what would you specifically recommend I say over the phone as I prospect for landlords who are looking to sell?
I can't testify as to what works, but I can say that I get a lot of calls like that, too. Most of the time, guys already know that I own a specific property, and they ask me what my plans are for it (hoping I will say something like "I'm thinking of selling it"). They tell me a little bit about what is going on in the market (which most of the time I already know, but they can't assume that), and tell me that buyer traffic is high and now is a good time to market my property if I had any interest. Of course, all brokers seem to say that no matter what the climate is...
I am in the insurance industry but we have two fulltime employees doing nothing but cold calling apartment and commercial property owners... there is not magic bullet or phrase that can make a prospect interested. The timing is right or it isn't. As Brian indicated, most owners have been around a long time and have heard it all. It is all about the number of contacts, timing and consistency. Be brief and respectful of their time... but follow up consistently. Also, don't get your feelings hurt if they are busy and have to cut you off, they are busy people and you can't let it hurt your feelings.
The same people hear from us 4 times a year, 90-60-30 and finally 15 days before their insurance renewal. They are very busy and most don't care 90 days out unless there was a problem... but if we have done a decent job of keeping in touch and their guy hasn't or their rates have gone up, 30-15 days out they are much more receptive. As a broker I would guess that you would get a quick outline of their buying criteria and ask if it is ok to call if you come across something in their wheelhouse. Consistency is the key, if you make 200 calls per working day you cannot help but come across somebody that needs your services or will need your services shortly. The hard part is making the 200 calls per day consistently and following up like clock work.
I use investorfuse for my automation and its a great tool to help me stay on top of followups, appointments, team members, virtual assistants and keep track of all the in's and out's of my wholesale business. Also have you considered skip tracing phone numbers for potential clients on your direct mail list? It may give you a upper hand to get in contact with some professionals in your market ASAP. Skip tracing phone numbers in my target area and hiring a cold caller to call my direct mail list helped kickstart my direct mail campaigns.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!