Lost $$$ Wholesaling! How Embarrassing at this stage of my business!

21 Replies

I just lost (at the very least) $13,995.00 (but probably more!!!)

ROOKIE mistake…

The Motivated Seller call came into our voicemail system (Ring Central) Sunday afternoon. No one was working (including me, I was at my relative’s house with my family) but I called back (all calls go directly to voicemail, no matter the day). It was an inherited house (from US Lead List) and the two sisters wanted to meet immediately.

Got there, followed sales call process (Todd Toback’s podcast ep. #10) and locked it up (verbally).

Unfortunately I didn’t have a Purchase Agreement with me, I told them I would be back tomorrow at 2:00pm. The house was 10 min from me! I could have gone back right then and gotten it.

Monday came and I was very busy with TOTAL BS, as 2:00 came and went I just said to myself, I’ll do it tomorrow. I didn’t even call, what a jerk!

On Tuesday I called up, apologized and said I was on my way.

“Sorry, it’s too late. We never heard from you so we sold the property to someone else, sorry.”

Top 7 Mistakes: (these are obvious)

  • 1.Total lack of process in place to handle weekend calls.
  • 2.Total lack of respect for my company and my team members for the value of a Motivated Seller lead. – I apologized to my team!
  • 3.Pride and Over Confidence, resting on my past successes to feel comfortable in a situation where I should have felt vulnerable.
  • 4.Laziness – I do not feel I am a lazy person but I knew I had this meeting and I didn’t even take the minimum effort to reschedule.
  • 5.Total Disrespect for my client’s time and situation.
  • 6.MOST IMPORTANT: Not Focusing of Revenue Producing Activities during “Pay Time Pay” (Just learned this from Kim Walsh-Phillips who learned it from Sandler Sales!) During work hours you Must Stay Laser Focused on Rev Producing Activities (that is NOT what I did on Monday!!!)
  • 7.Thinking it was a done deal when it was not!

Tom Krol

This post has been removed.

Account Closed 

This is a great post.  Really gives a sense of what it takes to work with motivated sellers.  They are in crisis. You have to meet them where they are, although you are not in crisis.

Thank you for sharing.  Sorry about the lost $$$!

@Tom Krol Bummer, but in reality you didn't really "lose" that money...you just swung and missed. Allow me to play devils advocate for a moment.  Let's say you closed the deal.  That would have only served to reinforce your sub-par followup strategy.  Thus, this was bound to happen sooner or later.  IMO, those 7 lessons are far more valuable than the coin you could have gained from the deal, and I bet you don't make them again.  

Thanks for sharing your experience(s).

I think I said this before don't screen your calls answer the phone when someone calls.


Joe Gore

@Tom Krol Sometime you Earn, Sometimes you Learn..

The old Boy Scout motto applies. Be Prepared.

Great post and thanks for the reality check.

Gary

Great post and thanks for sharing!!!

Pre printing some forms now to have at the ready.

Ouch

Ouch!! It could be worse but you learned from it. I always look at my vehicle as a mobile office and make SURE I have contracts in it b/c you never know when you will be at a yard sale and find out they are selling grannies house once its cleared out!!...some of my sneaky tricks for leads!! Take this one to the bank folks!! I believe I will post it as a topic!!

Good day!!

Now you learn your lesson answer your phone no matter the time of day or night.

Joe Gore

Account Closed 

Ok..lets call it what it is. Lost money...hardly. You didnt lose a dime. Its what us in the stock market call missed money. You do the research on a stock but for whatever reason are hesitant to pull the trigger or maybe sell a bit to early or too late. Be in this buisness long enough and your missed money pile should be in the millions. Be it caution or timing or other reasons it happens.  This I will tell you. Missed money stings far more than actual lost money for me. Lost money is easily made back. Missed money gone forever.

I'm with @Joe Gore .  Whats the deal with all of these wholesalers and investors not answering the phone.  I have read multiple posts and articles were people say they never answer the phone and only reply to voicemails.  I don't get that.  If you happen to miss the call then that is fine but to intentionally ignore a call I do not understand.    

dannng

@John Hixon,

I think some Guru taught the investors and wholesalers to let the calls go to voice mail, but experience investors will not screen their calls or let it go to voice mail.


Joe Gore

Originally posted by @John Hixon:

I'm with @Joe Gore .  Whats the deal with all of these wholesalers and investors not answering the phone.  I have read multiple posts and articles were people say they never answer the phone and only reply to voicemails.  I don't get that.  If you happen to miss the call then that is fine but to intentionally ignore a call I do not understand.    

How much experience do you have working with or buying directly from sellers? After 15 years of working directly with sellers, I can tell you there is a correlation between motivation, successful closes and sellers that can leave a message. 

A seller that cannot leave a voice message is usually not someone I can do business with.  Leaving a message is the very least of what it's going to take to sell the property and get through escrow.  There are a lot of steps when selling property after negotiating a mutually agreeable price and terms.  You have to have your act together enough to sign escrow docs and return them.  You have to leave messages for me and for the escrow officer if we don't answer the phone. You have to answer your phone or listen to your messages from me, the title company and others. You have make and keep an appointment to use a title company approved notary.  You have to know where all your relevant docs are and provide copies.  I can set it all up for a seller.  I've arranged fedex pick-up and car service and mobile notary appointments.  But if they can't leave a message it's a sign that 1) they are likely not motivated, and 2) even motivated sellers aren't likely to be able to get through escrow if they can't leave me a message.

@K. Marie Poe,

Some of what you are saying is true, but I will not do business with someone who cannot answer their phone, and I know gurus will teach everyone to let it go to voice mail.


Joe Gore

Do not take too hard. Good news is you have learned from the experience.

Look at this as a learning process and as a possible $ raise and not a loss. I say this because I am sure you are going to establish a much tighter procedure in handling your business for the future and anytime you think about varying from that you will remember this lesson and not make the same mistake.

Originally posted by @K. Marie Poe:
Originally posted by @John Hixon:

 if they can't leave a message it's a sign that 1) they are likely not motivated, and 2) even motivated sellers aren't likely to be able to get through escrow if they can't leave me a message.

 Recently Lorena ran a test at our company. We took our past 85 wholesale deals and ran a Ring Central report. Without a single exception every single seller left a full, clear voicemail, most providing all 3 pieces of information we requested (name, ph. number and address).

The voicemail system is used to filter out "sellers" who are simply calling to see what their home is worth or just not that motivated. Remember that as Wholesalers we are in the Pawn Shop business not the Real Estate business. Voicemail is a tool that allows me to be a Deal Finder instead of a Deal Creator. 

We have corrected the weekend issue.

think of how many BP members you helped today!

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