Receiving calls after first direct mail campaign -- No idea what to say or how to qualify leads

14 Replies

Hi everyone,

I just sent out my first direct mail campaign last week, and I've started to receive phone calls.  I'm using a questionnaire I downloaded from the resources page as a script to help guide the conversation with prospective sellers.  I've only talked to one person so far, and I have a few calls I need to return.  I'm hesitant to call them back because while the script is helpful they may not be the type of motivated sellers I'm looking for.  So my first question is how do I qualify them?  Do I give them a spiel about what I do as a wholesaler?It would be helpful if some of you could give a brief overview of how an initial phone conversation goes with a lead.

The first person I talked to seems like he could be a good lead.  Not too sure because he already said he'd been throwing numbers around with another investor and wanted to know what I could offer.  Although he said he owned his home free and clear, I found something on AgentPro247 that said there was a $24K mortgage on the property.  He has a tenant that's already living in the house, paying $800/month.  Is this a type of property that I could wholesale?  Or would it be better if the home were vacant?

Also, do I make an offer over the phone or do I ask to see the property first?  Do I need to see the property to make an offer? 

Thanks.

Shannon  I think you got the cart before the horse here. instead of spending money on a mail out you might want to consider spending money on some sales education. Or spending the time with htose that can teach you the pitch... there is really only so much you can learn reading on the internet... for sales skills and techniques which is what you need ... this is best done in a live class room environment so you can practice and listen to others ..

This is why companies have sales meetings and bring in experts that they spend big bucks on to teach their troops how to sell.

I get it not wanting to spend money learning how to send a yellow letter or some of the other basics you can learn here or on line.. but when it comes to sales... pretty tough to sit there and read from a script..

When your in live interaction class rooms you can see how folks us inflection and tone , also how they respond to certain questions...

So now you know you can get leads.. Learn how to handle them. and if it cost a few bucks to get some good training go do that.  that's my two cents.

Watch the Movie Glenn Garry Glen Ross to learn how salesmen learned their craft or Tin men ... either one is classics

Or go to a time share presentation or simply walk on a car lot... Those guys know how to sell they have been taught.. there is no ON line training for how to be a Car salesmen but they are good at what they do... this is one thing that is sorely missing in all the info on line or even here on BP  that's  HOW TO SELL AND CLOSE like a pro...

@Jay Hinrichs ,

I may not have been clear in my initial post... I wasn't asking for help on how to sell.  I have experience selling, I'm just new to wholesaling.

I'm not looking for a verbatim script to read off to someone.  I was asking for help on how to guide the conversation with a prospective seller.  Particularly how more experienced wholesalers lead their conversations with prospective sellers to inform the sellers of what they (the investors) do and determine if they're the type of sellers they're looking for.

Great to hear you're taking action and seeing results! Cudos to you! There are a number of people who never make it to that stage of the game.

As you're starting out keep this little nugget in the back of your head; you are learning and will screw up and will learn from that. Don't let setbacks keep you down but instead learn from them. I learned very quickly not to call myself an investor.

As for some phone discussions check out Sharon Vornholt - I believe she's got some good tips for talking with sellers and starting the conversation. You can also check out Bob Marx sales classes on Udemy.com. I wouldn't buy them at the retail value but you can usually end up getting a promo code or sales where many of the classes are $10. He's got good introductory tips such as succinctly describing what you're doing and then asking the seller if you can ask some questions. 

As for my own approach I try to find a way to help the sellers. I can explain what it is I do very simply first. "Hi Mr. seller, how are you today? So, you have a home you're considering selling? Wonderful, well as you know from the letter you received we can buy homes quickly if need be. Would you be able tell me a little about your home, visually walk me through the home if you don't mind." "Great, sounds like the kind of home we'd be interested in. Would you mind telling me why you're selling? (listen and figure out how you may be able to help. You'll probably ask some more questions about the home and specifics of the condition, size, age, utilities, etc.) Well, Mr. Seller this certainly sounds like something we can work with. Now as you know we can buy homes for cash at a discount and close quickly so you can move on(hopefully, you've gained some insight into why they are selling). By the way you've described your home and given the area its in we can usually pay a cash price between $x and $x. (this is most likely going to be insultingly low) What price are you asking for?" "Okay, well based on what you've said about the home I think that price may be a good value for the home. Without seeing its its hard for us to make a firm offer. That being said, we can generally come up with a higher price if we can arrange some sort of financing. We would pay you money today and make payments over a numbers of years. Is this something you'd be interested in?" I really like and prefer seller financing and generally its an option people don't want to do but if you sound like a credible business you may find that you can change their mindset. If the sellers say they are interested at this point I will schedule a time to set up a meeting to see the home and then I'll give them three offers later. One would be cash, one would be payments, and one would be a balloon loan after x number of years. If they are not interested in seller financing I will usually not waste my time seeing the home yet as they are not motivated enough for my business model. Keep in mind, I'm dealing with mobile homes which is very different than SFH. You'll have much more competition from investors to deal with where as mine is very small.

Hope this helps!

Originally posted by @Account Closed :

@Jay Hinrichs ,

I may not have been clear in my initial post... I wasn't asking for help on how to sell.  I have experience selling, I'm just new to wholesaling.

I'm not looking for a verbatim script to read off to someone.  I was asking for help on how to guide the conversation with a prospective seller.  Particularly how more experienced wholesalers lead their conversations with prospective sellers to inform the sellers of what they (the investors) do and determine if they're the type of sellers they're looking for.

 Hey Shannon,

You are doing the right thing in taking action. You just need to remain confident with every step going forward. Plug in the formula after you assess the value, See if it works for you. YOU GOT THIS!!!

@Steven J.

  I grew up in it... My dad was a land salesmen in CA.. I tagged along with him since I was 6 YO  these guys always worked on their craft   their pitch what worked best when a client said this.. what worked best when you got this objection...

then when I became my own RE agent at 18 we had sales training every week.. it was mandatory in the brokerage.. if you wanted to get floor time or leads anyways.. they did not want to hand those leads to folks that had zero sales skills and did not know what to do or say.

Modern day RE seems to have just jumped over so many of the basic skills needed to be successful in the industry.. to think you don't need a license you can just send out post cards.  You have no real training IN the Industry ... and then its like OH crap what do I do now I actually got a call... So for the person who does this is fine.. after all its their money if they want to blow it sending out mailers prior to really knowing what to do with them that's there choice for sure... But GREAT salesmen will make far more deals than those that have no real sales skills or just try to read from scripts.   And of course over the course of years someone with no skill can finally learn if they don't get burnt out in the process and after they have probably wasted more money than a good sales training class would cost.

Just an old dogs perspective that's all..... Now if your buying off of MLS or auctions you need no sales skills just money and go... But if your trying to talk people into doing things your way when you have no real money and no real means to close and looking to flip or wholesale like so many want to do as their first RE gig ... then at least give yourself the ammo to pull it off

Don't use a script... just have a basic checklist of the information that you need to obtain to qualify the lead to your own satisfaction and collect those details in whatever order flows best with the conversation that you are having with the person. A friendly conversation works best just as with any two people meeting for the first time and often makes the person on the other end of the call more comfortable with you and you with them. They should be doing most of the talking anyway, which will then guide your next question until you have all that you need to make an assessment. Most calls won't lead to an offer anyway, due to no fault of your own - regardless of how you handle the call.

@Steven J.

 Good for you for taking action and already seeing some results! I don't have any specific advice as I'm just getting started myself, but am interested in seeing where you go from here. Hope you keep us updated!

@David W.

  I was a 6 YO in the corner.. my dad was a cross between lemon and Pacino.  He finally figured out he could not rely on the company leads.. We were doing yellow letters before anyone even knew what they were.

My dad bought a printing press old Hamadastar  and after school I would run off 3 to 5 thousand flyers... ( door Hangers) then on the weekends my mom would drive 4 or 5 of us kids ot neighborhoods and we would hang them on the doors... the leads came stgraight to my dad... ( company did not care they just wanted sales) he was soon the number one salesmen ... and went on to launch his own company... it was not uncommon in those days for good land salesmen to make in excess of 100k  a year .. that would be like 500k today or better... but they also lived it... Boozin  womanizing high living... etc.

yes that is my background and it prepared me to be one hell of a salesmen at 18... LOL

@Account Closed

   NP its your dollars being spent on advertising and direct mail so in essence your paying for your education.... all I suggest is you get with some good RE sales class's  and or network in PERSON with others and round table how you talk on the phone.. it will help you of that I have no doubt

I agree with @Jay Hinrichs . Hitting the books and using scripts I found was ok. When I got into a program a local wholesaler hosts, it definitely clicked a lot of pieces together.  Sure the information was generic, but the experience of practicing with complete strangers on saying simple things changed the game.  I feel more confident, not because I know what to say, but when to say it.  I definitely want to keep attending the program and create more consistent deals instead of learning the long way.  

Even if you don't go to classes, use your friends and have them practice with you.  That should spark the learning curve, but it would definitely be easier with other RE people.

I guess after reading this, I will give a tip.  Find out if they're motivated first, use a CRM to track (Keep mailing or ditch), then see what you can do with the property (Exit Strategy).  The more rapport you build, the better the bite.  If they don't bite, follow up, because they eventually will.  The real tip is, build rapport while you lead the conversation while listening and relieve them of their pain point. If they start trailing, interject with a more relevant question.  To get better, have your friends practice this with you and ask them to derail the conversation.  A meal or two should easily convince them to play along.

I talk to the same guy every month about his house, we know about each others kids, vacations and end game. I even told the guy I would teach him what I plan to do with his house, and why his listing won't sell (Overpriced on MLS). Yes, it's money I could lose out on, but referrals aren't too bad either and it's only 1 lead.

Food for thought.