Salesmanship, pitches and language: Getting from lead to close

Salesmanship, pitches and language: Getting from lead to close

San Antonio, TX · Member since 2017 · 81 posts · 31 votes

Hello.  I'm still a newbie trying to get my act together, and being an analytical, left-brain kind of guy, my RE learning tends to focus on the numbers and financials and quantitative issues.  But when you get down to it, so much of success is people-based, and as much as I cruise BP, I don't see a lot of threads that talk about how to reach the actual motivated seller such that they're sold on you, as the investor, being their solution.  With that in mind, I'm wondering how people have gone about developing and continuously improving their messaging and pitches to convert from prospect to closed deal.  Lots of information on here about how to look and qualify a prospect and run the numbers, but once you know you have a potential deal, what then?  I know a lot of it is so subjective, but with the amount of brainpower in the community, people have to be studying and analyzing conversion to figure out what works.

What kind of actual design in direct mail gets your yellow letter to be opened when these individuals might be in a list that results in them flooded with yellow letters?  What wins out and piques interest?  Once opened, what language helps motivate them to pick up the phone instead of tossing your mail in the trash?  Has the community here A/B tested and studied what psychologically works better for different seller segments?  How about that initial call?  What pitch leads to a sit-down meeting to further qualify the deal instead of "I'll think about it"?  What framing around an offer does better to actually get it accepted than to come across as a lowball or insult?

Are there certain pitches that work better for:

  • Next of kin inheriting abandoned homes?
  • Owners with equity that are being foreclosed?
  • Landlords that want out of their investment?

The opportunity cost for these people could be to instead list the property with a realtor for full or near retail value, so what kinds of salesmanship goes into convincing them the convenience you offer is worth the money they leave on the table?

This is an area I definitely want to learn more about without getting sucked into a bad guru course.  Just curious what everyone thinks.  Thanks for your input.

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  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    8y

    Hi @Neil Sinha

    Lesson number one, and it's a biggie. Wrap your brain around it first and then I can be more specific.

    You CANNOT motivate a non motivated seller.

    No matter how good you are, which "pitch" you use or whatever your personal beliefs on Seller psychology, you cannot motivate someone who is not already motivated by their own situation.

    You can however CONNECT with their motivation, whatever it may be. Triage every incoming lead, determine the best exit strategy for that situation and their cash needs, and then move them towards what is already their best option.

    Sometimes that is going to be a retail listing, but not always. Sometimes it will be a sub to, lease option, or even a short sale. You do not have to master every strategy if you do not wish to, but network with at least one master of every strategy. Monetize as many leads as you can by becoming an information broker....transactional engineer, or whatever the current guru buzzword happens to be.

    Point is if they called you, they have a need. Figure it out and fulfill it. The "pitch" will come naturally if you are really trying to help.

  • San Antonio, TX · Member since 2017 · 81 posts · 31 votes
    8y

    @Jerry Puckett

    Thanks for replying. I'm pretty sure I've gotten into the frame of mind for rule #1 you mention, but until I hit my stride I might still grind some gears on it. Practice will make perfect in triaging the slightly motivated from the not motivated. Finding the masters of different strategies is another salesmanship challenge I'm trying to wrap my head around: How to add value to those who are already doing fine so I'm worth their time to mentor. I know I want to move towards getting better at BRRRR, but for the numbers to work you need to be able to add enough value from initial acquisition to refinance to get the money back out and on to the next deal. That takes a seller willing to leave potential value on the table for you to capitalize on and I want to get better at convincing them I'm the one to help them. I also am trying to figure the same thing out for cold calls when I'm prospecting as opposed to waiting for marketing leads to come back to me.

  • Real Estate Investor · Sunny Isles Beach, FL · Member since 2013 · 788 posts · 333 votes
    8y

    @Neil Sinha I can only speak for my own market and own volume.

    I would never waste time meeting with someone before discussing price. Truth is, I've spoken with sellers that are insanely motivated - back taxes, house is a wreck, needs to move for health reasons. But, they get a number in your head, and are stuck with it.

    Also - you can't necessarily wait for a sit down meeting. In some cases, using a service like "Docusign" will yield better results. If you can get a contract out, reviewed, and signed in a few hours (this just happened to me) it can be better than going in person.

    That said, I've gone in person lots of times and it has a positive impact. However, you just need to make sure the seller is appropriately motivated at a "ball park" price and then you can firm up numbers and even bring a contract over with you.

    Also - don't sleep on starting a website. Seems like you're getting pretty hung up on the nitty-gritty of direct-mail details. I've never found modifying a sentence or two is going to change anything. I have my envelopes hand-written - that will make people open it. Also - use a return address label the first time to get the "return to sender." I think that's really all your looking for if you're going the letter route. I only use letters for probate/estates, for other stuff, I just want volume to find that motivated seed out there - so I go postcards. Not trying to play mind games to get someone to pick up the phone.

    Direct-mail is about volume, weeding through the huge amount of bad leads you can, focusing on the good ones, and following up regularly to make sure you are there when the day comes.

    DEFINITELY don't sleep on a motivated seller website. Leads are just better - plain and simple. It's also can be much cheaper if you plan everything our correctly. SEO - time consuming - but free. Google Adwords tighten it up with your keywords - and you can compete with the big boys even with only $500-$1,000 a mo.

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