Off-market Do's and Don'ts

Off-market Do's and Don'ts

Specialist · Baltimore, MD · Member since 2018 · 130 posts · 100 votes

Hey BP! what are your Do's and Don'ts when it comes to speaking with off market sellers? You guys running off a script or by gut on how the conversation is going? Would you ask price with the first conversation or build some rapport to ask down the road? I know there's probably a million different ways to talk to off market sellers so any incite would be greatly appreciated!

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Rental Property Investor · NC · Member since 2018 · 776 posts · 776 votes
6y

Do: find out what the seller really wants and try your best to give it to them.

Don’t: tell them how crappy their property is and how much work it needs. Let them tell you that.

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  • Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes
    6y
    Originally posted by @Bill Plymouth:

    @Michael Ealy why is cold calling owners to much work?  What makes it different from a regular cold call to an investor or homeowner?  

     When you have the right marketing in place, you don't need to cold call. I would rather have an owner call me and beg me to buy his property vs. me cold-calling 20 owners to find one who may want to sell but he/she may not need to sell.

    When the owner-seller calls you - you have the upper hand. It's easy.

    When you cold call owners, they have the upper hand. You are shooting in the dark hoping one of the "darts" hits the bulls eye.

    When owners call you, you can secure a property in a 5-minute conversation. When you cold call owners and don't know who will want to sell, you might cold call for 5 hours and not put a deal under contract.

    I'd rather have a 5-minute conversation with a seller who called me and he/she is motivated to sell vs a 5-hour telethon hoping I can find and persuade an owner to sell me their property.

  • Real Estate Agent · Philadelphia, PA · Member since 2018 · 416 posts · 396 votes
    6y

    @Michael Ealy I never thought of that.  I have to apply that strategy to my listing marketing.  

  • Specialist · Baltimore, MD · Member since 2018 · 130 posts · 100 votes
    6y
    Originally posted by @Michael Ealy:
    Originally posted by @Bill Plymouth:

    @Michael Ealy why is cold calling owners to much work?  What makes it different from a regular cold call to an investor or homeowner?  

     When you have the right marketing in place, you don't need to cold call. I would rather have an owner call me and beg me to buy his property vs. me cold-calling 20 owners to find one who may want to sell but he/she may not need to sell.

    When the owner-seller calls you - you have the upper hand. It's easy.

    When you cold call owners, they have the upper hand. You are shooting in the dark hoping one of the "darts" hits the bulls eye.

    When owners call you, you can secure a property in a 5-minute conversation. When you cold call owners and don't know who will want to sell, you might cold call for 5 hours and not put a deal under contract.

    I'd rather have a 5-minute conversation with a seller who called me and he/she is motivated to sell vs a 5-hour telethon hoping I can find and persuade an owner to sell me their property.

     Michael and Bill, how often do you market to your potential sellers to stay top of mind? Monthly? Quarterly? Every 6 month? 

    Michael, that’s a great point about cold calling. 

  • Real Estate Agent · Philadelphia, PA · Member since 2018 · 416 posts · 396 votes
    6y

    @Daniel Brown I recently just re-did my marketing plan. My farm areas will get letters every month and called through at least every 2 weeks to 1 month

  • Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes
    6y
    Originally posted by @Daniel Brown:
    Originally posted by @Michael Ealy:
    Originally posted by @Bill Plymouth:

    @Michael Ealy why is cold calling owners to much work?  What makes it different from a regular cold call to an investor or homeowner?  

     When you have the right marketing in place, you don't need to cold call. I would rather have an owner call me and beg me to buy his property vs. me cold-calling 20 owners to find one who may want to sell but he/she may not need to sell.

    When the owner-seller calls you - you have the upper hand. It's easy.

    When you cold call owners, they have the upper hand. You are shooting in the dark hoping one of the "darts" hits the bulls eye.

    When owners call you, you can secure a property in a 5-minute conversation. When you cold call owners and don't know who will want to sell, you might cold call for 5 hours and not put a deal under contract.

    I'd rather have a 5-minute conversation with a seller who called me and he/she is motivated to sell vs a 5-hour telethon hoping I can find and persuade an owner to sell me their property.

     Michael and Bill, how often do you market to your potential sellers to stay top of mind? Monthly? Quarterly? Every 6 month? 

    Michael, that’s a great point about cold calling. 

     To be honest, right now, I don't market anymore. I have enough of a track record and reputation in Cincy that sellers, brokers and wholesalers approach me when they have properties for sale.

    But if I starting from scratch (say I move to a different city and state where no one knows me), I would put out marketing as often as reasonable. 

    And "reasonable" will depend on the list. For instance, code violations will be a "hotter" list (because they will likely be more motivated vs. say owners who are retiring) so I will mail to this list weekly. Owners who've owned their properties for at least 10-20 years and likely to be retiring, I will likely mail to them once a month or even once a quarter.

  • Real Estate Agent · Memphis, TN · Member since 2019 · 261 posts · 253 votes
    6y

    Act like a human being and treat them like a human being and you might just find a deal.

    I think everyone else has it down when they say to find out what their problem is and genuinely try to help solve it.  DO: understand creative financing and other outs for the unit.  DON'T: think that you have to offer a cash price and walk if they don't accept.  DO: leave them your info and let them know that if things get any worse/unbearable or if they change their mind, that you will be available for them to talk to.  DON'T: forget to do that <-

  • Rental Property Investor · CA · Member since 2018 · 225 posts · 180 votes
    6y

    @Daniel Brown I recommend “Never Split the Difference.” By Chris Voss and to be genuine.

    You can be told what to do a million times, but it won’t be as good as just taking action and learning as you go.

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