Is Cold calling an effective method to locate multi family deals?

20 Replies

Does anyone seeing this post call multi family properties either on or off the market? I want to call on properties within a 2 hour radius. At least 30 units. Do I need an agent or broker to approach these?

Or is this not the right approach to the end goal? I figured it’s worth trying.

@Joshua Howaniec cold calling sellers for off market properties is one of the best way to find deals. That’s how the brokers do it but you need to be experienced, professional and know what your talking about as they will sniff out the rookies fast.

If the property is listed you should definitely call the broker and do not try to bypass them.

@Joshua Howaniec   I agree with   @Greg Dickerson . Cold calling is very affective what to get off market opportunities. it is not easy job to do because more often then not getting the phone numbers of the decision maker can be changing., especially if the property is owned by an LLC or an ownership group.

Another thing to consider is that the one that is calling ned to know what they are talking about, it is not as simple as hiring a virtual assistant to do it from the Philippines.   

I been doing cold calling for awhile now, and will continue doing so few times a year. 

Often you will be talking to a potential seller that is not ready to sell yet, then you need to keep following up with them regularly. been dedicated to the process is the key.  because it is very time consuming..... 

@Joshua Howaniec I've been calling owners and have received some results, as a matter of fact, to @Hadar Orkibi I've gone ahead and trained our virtual assistants to screen quality of numbers. I am a broker and happened to have done many calls myself by getting a list from Costar however not being a broker should not limit you as long as you have a QUALITY list. 

I say that because our costar list of numbers is often directed to the property management company which then becomes a conflict of interest for them to pass your contact information to the owner because you are essentially potentially putting their job in jeopardy. One of the first things owners do to 'value add' per se is changing the management company of an apartment, considering that they are well aware of that...any potential buyer that calls is a potential threat unless it's been made very clear across the board that they are welcoming buyers, which is often not the case...especially if it's a good operating apartment.

That being said, QUALITY of a list and QUALITY in calling will get you in front of buyers. My virtual assistant has gotten me numerous leads including a 76 unit property where I was able to build great rapport with the owner and we are still in conversation for a potential deal today. If you are looking for a quality trained VA who can do this, part of my company trains them in-house and we can talk offline for more info.

@Greg Dickerson what are some quality  lists out there that you are finding useful particularly for multifamily? A partner of mine uses listsource but I've yet to use it myself...any insights?

Originally posted by @Ruben Kanya :

@Joshua Howaniec I've been calling owners and have received some results, as a matter of fact, to @Hadar Orkibi I've gone ahead and trained our virtual assistants to screen quality of numbers. I am a broker and happened to have done many calls myself by getting a list from Costar however not being a broker should not limit you as long as you have a QUALITY list. 

I say that because our costar list of numbers is often directed to the property management company which then becomes a conflict of interest for them to pass your contact information to the owner because you are essentially potentially putting their job in jeopardy. One of the first things owners do to 'value add' per se is changing the management company of an apartment, considering that they are well aware of that...any potential buyer that calls is a potential threat unless it's been made very clear across the board that they are welcoming buyers, which is often not the case...especially if it's a good operating apartment.

That being said, QUALITY of a list and QUALITY in calling will get you in front of buyers. My virtual assistant has gotten me numerous leads including a 76 unit property where I was able to build great rapport with the owner and we are still in conversation for a potential deal today. If you are looking for a quality trained VA who can do this, part of my company trains them in-house and we can talk offline for more info.

@Greg Dickerson what are some quality  lists out there that you are finding useful particularly for multifamily? A partner of mine uses listsource but I've yet to use it myself...any insights?

 Tax data base is a free resource, list source is good and for a paid service check out https://www.reonomy.com/

@Joshua Howaniec they are right by saying that people can sniff out a rookie, but don’t let that deter you.  You’ll always be a rookie if you never get started.  

@Ruben Kanya

Practice makes perfect ...

But, it helps when you have some background and training.

What are some resources: books or podcast that will help someone prepare for cold calling.

I m looking for seller financing opportunities and would love some training to help prepare me.

@Nandy B.   to @Bill Plymouth 's point, you gotta get started and test different scripts. There a ton of scripts out there, wether it is online...at the end of the day, a script is guide for you not to get stumbled on POINTS you would like to hit during a  CONVERSATION. 

I highlight "points" and "conversation" because the two go hand in hand together. You need to have a direct objective of why you are calling them , the second most important  point is creating a real genuine conversation which is often the challenge with marketers, who have their own agenda and their own agenda only and fail to do the most important thing is LISTEN and allow space for a conversation to be created. With that being said you need to know what information you need to know and be genuine enough to know that they are talking to a person who a) knows what they are talking about b) is not a marketer simply wasting their time. It's definitely an art that can be mastered from numerous calls and from some guidance from those who have done it in the past. But remember the mind frame is always "what's in it for them".

Otherwise the most overlooked skilled these days is communication, reading books such as "Splitting the difference" "pitch anything".."crucial conversations", Grant Cardone material (which we use in-house Grant Cardone University) , Keller Williams Scripts....there's just an abundance of stuff out there that will not only help you in your real estate career but also as a family, friend, employee, spouse or leader in your community. Communication skills should be a long lifetime commitment :) 

P.S. for seller financing you can get a broker to send you seller financing searches and again pitch seller financing as an option that you would consider to attempt doing, and make sure you educated the seller in layman terms what seller financing looks like, people can't accept something they don't understand.

I am currently doing this to find deals. My partners paid for the list from list source and I agreed to do the calls. We haven't put anything in contract yet but it's early in the process and i have started to build rapport with some owners. It's about persistence and consistency. 

@Hunter Ambos for the list you purchased from list source, how did you add phone numbers to your list? Or are you looking up phone numbers separately?

The amount of verified phone numbers has been around 5% for me when trying to purchase the list.

@Hadar Orkibi Thanks. When I make calls for my first job I use a script for general guidance purposes. Do you happen to use a template or have something as a guide? Otherwise it's cool, I'll just start jotting stuff down and stick to it. Just to get through the call if nothing else at first. 

@Ruben Kanya quality of list will certainly be part of the challenge. Before making this post I was just gonna start calling numbers associated with the buildings. But a few guys on the thread have given me better direction yourself included. If you are willing to talk about how you train your guys or what you taught them to say generally I will PM you and we can talk at a time that works best for you. 

Also, I just read your second comment. That's awesome that you use Grant's material, I pay monthly for Cardone University myself. Do you use his real estate program? How have his materials helped you out? (not to be a promo for him, I'm really just curious to see how effective it is for others)

@Bill Plymouth exactly. I gotta start somewhere with multifamily. You know what it is, I see people who are "seemingly" less capable or are just oblivious to how little they know but the important thing is they get "lucky" because they are actually taking actions. And as they take action they just keep learning and adjusting. 

@Elliott Elkhoury Have you gotten many deals like this? Have you ever purchased in the Indianapolis market? 

@Hunter Ambos agreed. I will check out list source against some of the other sources mentioned above. Keep calling those list bro!

@Joshua Howaniec I introduce my self as an active multifamily investor that is seeking to expend the portfolio in the market place.  Followed up with "would you consider selling your property at 123 main st, Or any other Multifamily property you own?"

That is starting the conversation, then we chat about the market etc, I ask for permission to "touch base" with them later on if they are not ready yet.

@Sina S. I’m not sure. I think they just used the phone numbers directly from the list from list source. There are a lot that are invalid/missing. I think there’s skip tracing services that can get more numbers

Direct mail, cold calling, cold texting, door knocking, and many other strategies have all been used to find off market deals. All strategies require a list.

You can get a list for free on the local auditor/appraiser site. 

You can work with a broker/agent to get a list, but they may charge you. There are also other paid services like CoStar and ListSource.

Originally posted by @Joshua Howaniec :

@Greg Dickerson Thanks for the heads up. I have a feeling quite a few are gonna "sniff me out" fast but I gotta start somewhere. 

Also thank you for the resource reonomy.com and the tax data base. 

 Just be yourself and be honest let them know you are just getting started and trying to get your first deal going. A lot of sellers will take you under their wing help you and finance you if you are honest and straightforward about where you actually are in the business.

@Greg Dickerson I really like your comment about being 'honest' and lettingthme know you are just getting started...that's such a good reminder...people who are TRULY successful often see a little bit of themselves in you and are willing to give you the time of day especially if you show grit, hunger and WILLINGNESS to learn. I created several key partnerships this way to this day with people who have A LOT more knowledge than I do and it's been extremely rewarding. We tend to forget often how key that can be....we often like to fake it until we make it but I think we often sometimes miss genuine opportunities by being genuine and owning our situation...there's something special about authenticity @Joshua Howaniec

Yes I am definitely a big fan of Grant Cardone, he's cold calling section on Grant Cardone University alone is more than a great foundaiton on how to speak to human beings....we have them watch that in addition to role playing (be hard on them so they can expect the worse and help them with objections as learning points....as Grant says the same objections are going to come up, if you do it long enough, if you can train them to identify those and learn from them and prepare on what to say next, they won't have any troubles....remember it's properties that we're talking about....there can only be so many objections...it's not as difficult as it may seem.