I had no idea how to approach the landlords on this subject.

General Landlording & Rental Properties
16yFollow

I had no idea how to approach the landlords on this subject.

Account Closed
Private Money Lender · OK · Member since 2010 · 163 posts · 32 votes

So I took people's advice for building my buyer's list and began cold calling landlords of 3-2 SFH from the newspaper. My God I was so nervous at the beginning lol. I was stuttering and tripping over words and they were like "I'm sorry I think my phone is breaking up." So then I wrote a script which went out the window as I calmed down and got used to it.

I got a couple of buyers. 3 out of 27 (that includes non returned voicemails I left on some). But for the most part I felt many had not heard of wholesalers and thought I was like Spam or something. They usually tried to cut the call short and said no thank you. Did have an interesting conversation with one who was not dealing with SFH anymore and only with multi housing now at how well he had done in 6 years. I won't lie, i wasn't just being excited to blow smoke up his rear. I was pretty excited and impressed with/for him as we talked. In the end I asked him if he wouldn't mind passing my name along if he happened to run across any investors who were interested which he was happy too.

Anyways back to my topic. As rentors/landlords, supposing you had not heard of the term/concept of wholesalers. Supposing I had a limited time from the time I picked up to get you excited at my prospect of wholesaling for you, how would you go about it were you me? You know your states of mind far better then I do.

Thank you for any and all feedback.

Michael

0Reply
106 views

Most Popular Reply

Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y

Hi, I think cold calling for this opportunity is not the best way to go. My first thought would be, that's why I have a Realtor! I suggest you take a different approach.

Let's say you call me saying that you have heard that I'm a successful landlord/investor. First asking me for guidance in a very simple matter or strategy and ask them what they would do. If they are interested in your property, they may see an opportunity for themselves....
As to your cold calling, the first thing out of your mouth, beyond "Hello, Mr. Smith" should be your introduction of yourself, by name only, and then ask, I was wondering if you could help me, do you have a minute to speak, or should I call back a little later? If you're a new "investor" relying on their opinion, most peoploe will help you. Be careful how you describe your deal, asking for advice, because if it sounds like an under the radar sales pitch, they may be more than objectionable. Ask if they know of anyone who might be interested, etc. if they are interested, they will probably say so. Good luck, Bill

1Reply
See this reply in the discussion

6 Replies

Jump to latestLatest
  • Jeffrey K.
    Real Estate Investor · Milwaukee, WI · Member since 2008 · 1k+ posts · 671 votes
    16y

    If I didnt know what a wholesaler was I would think it was someone trying to create value where this is none (most wholesalers fall into this category).

    1. I would want to know why you are not a realtor and how you can find a better deal that I can. At the end of the day I am the real estate investor and you are the noob trying to sell me something in a business you know next to nothing about.

    2. How you got my number and why you are calling me after I put my number on the no call list.

    3. What do you have to sell me right now and how much money am I going to make?

    0Reply
  • Account Closed
    OP
    Private Money Lender · OK · Member since 2010 · 163 posts · 32 votes
    16y

    In the end I was starting off the call by telling them I had seen their rental ad in the newspaper immediately followed by me asking if they were real estate investor's. Usually they would reply yes and then I would tell them that many RE investors that were flippers/renters used wholesalers such as myself and would then proceed to try and breakdown exactly what it is we did and how they benefitted.

    The only problem is that since I think many had never heard of it, that it was just some way to take money from their pockets by being a middle man.

    I wonder if I focused more on the psychological pain aspect by throwing in the direct mailing, bandit signs, negotiations, etc to the sellers somewhere towards the front of the convo or right after the wholesaler explanation if it might impact more.

    Problem is you only have a relatively short period of time with cold calling before they are done with you. I need a quick intro and a good 30 second slam to get the best response I think.

    What are your favorite aspects of letting a wholesaler do the find for you that you absolutely dread as a flipper/holder?

    Michael

    0Reply
  • Jeffrey K.
    Real Estate Investor · Milwaukee, WI · Member since 2008 · 1k+ posts · 671 votes
    16y

    Most serious investors hate wholesalers because it makes buyers leery of investors and gives us a bad name. It is dishonest to say you are going to do something and not have the ablility to follow through consitantly.

    Let me turn the question around. I am that investor who you have on the phone and is starting to feel pissed off because you called my rent ad trying to sell me something. What are you adding in order to not be "some way to take money from their pockets by being a middle man?"

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    16y

    Hi, I think cold calling for this opportunity is not the best way to go. My first thought would be, that's why I have a Realtor! I suggest you take a different approach.

    Let's say you call me saying that you have heard that I'm a successful landlord/investor. First asking me for guidance in a very simple matter or strategy and ask them what they would do. If they are interested in your property, they may see an opportunity for themselves....
    As to your cold calling, the first thing out of your mouth, beyond "Hello, Mr. Smith" should be your introduction of yourself, by name only, and then ask, I was wondering if you could help me, do you have a minute to speak, or should I call back a little later? If you're a new "investor" relying on their opinion, most peoploe will help you. Be careful how you describe your deal, asking for advice, because if it sounds like an under the radar sales pitch, they may be more than objectionable. Ask if they know of anyone who might be interested, etc. if they are interested, they will probably say so. Good luck, Bill

    1Reply
  • Jeffrey K.
    Real Estate Investor · Milwaukee, WI · Member since 2008 · 1k+ posts · 671 votes
    16y

    Good way to try and trick em Bill. If you want to cold call that is great advice.

    0Reply
  • Michael G.
    Wholesaler · Bay Shore, NY · Member since 2009 · 359 posts · 199 votes
    16y

    Cold calling is OK if you have a lot of time and patience and have your objection handlers ready. The rejection rate is probably ver and your rejection mindset the samey high and probably a good way to burn out on RE investing quickly. I wouldn't suggest it for a newbie. I think you hit the nail on the head when you talked about "psychological pain". Why dont you find out from your local county courthouse the names of landlords who have filed evictions in your farm area in the last 30 days? Those are the sellers you want to talk to or better yet those are the sellers who want to talk to you.. They are usually investors who paid to much for their property to begin with or are having problems with their tenants slow paying or no paying, have property management issues...basically they are burnt out. Start your burnt out marketing campaign to these landlords and watch your phone start ringing. Most would agree that having a seller call you is better than you calling a seller. Once they call you you have to figure out if its a deal or a dud. PM me and I'll send you some letters that you can send out.

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free