How To Buy 10 Houses a Week ..without Spending a Dime on Direct Mail!

Hey, what's up people? It's Dominic, once again.

I have some amazing training for you today and I want to show you how you can buy ten or more houses a week from one free funnel of marketing.

Not sure what the term “funnel” means?

Well.. A funnel is literally that little utensil from your kitchen that you use to pour some sort of liquid substance from one jar or one bottle to the next.

That's a funnel.

A funnel for marketing is essentially a tool that's going to pour in leads. We're not talking about pouring in liquid

…We’re talking about pouring in leads.

The biggest thing in real estate, whether you're an agent or a broker or a wholesaler or a flipper or a lender or a whatever, you have to have a good funnel..

..a good stream of leads - pouring in day after day.

I'm going to tell you a little secret.

This source, or funnel, of marketing is the same method my team and I have been using to bring in a whopping $98,567.53 in the last 4 months.

It's responsible for over 75% of our closed transactions.

Let's jump right into it. I want to warn you that I'm about to ruffle some feathers, but I want to give it to you straight.

Direct mail is dead, okay? Direct mail is dead.

It's dead that is if you don't use it properly, if you’re not deploying it in the right way.

…and almost everyone is doing it the wrong way!

I realized this about two and a half years ago. I was doing direct mail all wrong. I was sending 1,000 postcards, 1,000 letters, a week. I was mailing out anywhere from four to six thousands letters and postcards a month.

I had the right idea, but where I was making my mistake was by not doing enough volume. Unfortunately because I was competing in such a crowded space, I was being a little bit too targeted.

This was what brought me to this new (sorta) funnel of marketing.

I started marketing in a completely different way. I had some experience with cold calling from my previous endeavors before real estate, so I thought, "You know what? What if I take that same Cold Call formula that I was using in that direct response company I worked for and applied it to real estate?"

So I got to work my marketing message..

And said to myself..

what if I take that message, that same marketing message that we put on postcards and letters and direct mail and used that as my “pitch” directly to these home owners over the phone?

You've got to think about it.

Why is cold calling so effective?

Cold calling is extremely effective because you're typically receiving up to a 45% response rate!

That’s compared to less than a percent..

..less than 1% response rate, from direct mail.

I would send out 1,000 postcards, 1,000 letters, and get about 10 calls in return.

Out of those 10 calls, five of them were people that were just tire kickers. They weren't really interested in selling their properties.

You've got to think, 45%.

So you mean to tell me out of 1,000, you're going to get 450 responses?

Those are real people that you’re speaking to. At the end of the day, a response rate is typically just you're making contact with somebody.

I learned this from Uncle G, Grant Cardone.

Until you make contact with somebody such as, "Hello, this is Dominic. Is this Mrs. Jones?" "Yes, this is Mrs. Jones." "How are you today, Mrs. Jones? I want to buy your house on 123 Main Street. Are you interested yet?"

That's contact.

You can actually have some sort of control over this. You can leave voicemail. You can send text messages.

I just wanted to come up with a different angle of reaching people that no one else is using.

And There's a reason for that… it takes a lot of sweat equity.

…aand we all know nobody wants to actually put in work these days, right?

Another reason why cold calling is so effective is because you get direct to the decision maker.

I alluded to that just now.

You get direct to the source.

You get directly to Mrs. Jones.

You don't have to send Mrs. Jones a letter 30 times just to hope that she gives you a phone call.
Of course you still have to follow up the same way you would with direct mail.

However, we're reaching people at a much faster rate, depending on your market.

Your cost per lead, your cost per contract, is considerably cheaper.

If you're not measuring your cost per contract, then my friend, you are still working as a technician “in” your business.

You must be focused on your business and you have to pay attention to these metrics..

..your cost per lead and your cost per contract.

Our cost per contract, that's what I really care about…

..that’s from response to setting an appointment to making an offer to putting the house under contract to going to the title company and closing ..is what I look at.

Cost per contract, prior to cold calling, just through direct mail was about $325 per contract.

$325 Bucks!

That's per contract, that's what it cost us when you actually break down the mathematics.

Right now, with our cold calling, we're at around $100 per contract.

Investors are doing it wrong.

They are attempting to generate leads by sending direct mail to absentee home owners. They are all using the same lists and sending to the same distressed homeowner as every other investor.

So you, Frank, Joe, Tanya, and Kim are sending the same, "We buy houses, I buy houses, I pay cash for houses."

Yeah, come on. Let's keep it real.

We are all sending the same boring letters; the same direct mail and the same postcards.

It gets watered down and normally tossed in the trash.

Even if you're sending something completely different, off the wall, you get all snazzy with a change of colors, change the size of your mail pieces, yeah, you may stand out just a little.

But to the homeowner, you lost in the flood of mail.

Think about it. How many pieces of mail do you get from the Chinese restaurant down the street? The dry cleaner? The supermarket?

I get them each and every day.

I put them in the trash on the way into the house.

Honestly, I get so bombarded that they all look the same.

They all look the same to me, even if one is red, one is black and white print, one is orange or North Carolina Blue.

It doesn't matter.

I'm going to look at them all the same and that's the same way that homeowners are looking at us as real estate marketers.

Your message is being watered day every day the seller checks their mailbox.

It's a crowded space.

The way to combat that is to increase your budget. That is the only way. Trust me, I know a lot of major players here in Dallas and in my market most of the big players, the big-time guys, are spending $20, $25, $50, up to $100 thousand dollars a month on marketing. I'm telling you!

My mentor literally stopped doing direct mail.

My mentor stopped doing direct mail when he found out what I was doing.

He said, "Damn man, you guys just put 12 houses under contract last month.

We put fifteen.

We put more and we had to spend more.

We put 20 houses under contract, but we had to spend so much more money."

I ask, “What’s the name of the game?”

Keep costs down and keep profits high.

So, What’s the cold calling system?

Well, it’s very simple.

Let’s get straight to the point.

You generate a list.

It’s very simple and you use any source you like.

If you already have a list that’s great. If you don't there are several options.

One good one is Melissa Data. There's also a tool called Listware.

It allows you to add phone numbers and email addresses for prospects on the list.

You upload a list, go to Melissadata.com or search for Listware, and they'll take care of you.

They'll give you contact information. Not all information is 100% accurate, just FYI.

But I’m sure you understand that.

But once you get your list, you can kind of filter through to get the information you want.

You know all those returned postcards? Most of those people with returned postcards are going to be the ones with bad phone numbers.

If they don’t have valid mailing addresses, what make us think we will be able to get a valid phone number??

I figured that out by using a little logic.

So you're saving yourself about 30 cents, maybe as much as a dollar, whatever your mail house is charging you.

Let's fast-forward.

You get the list.

You get the phone numbers.

What do you say? ..Very simple.

"Hey, seller. My name is Dominic. I'm calling you about your house at 123 Main Street.

I'm calling you today because I'd like to offer to buy your house.

Are you interested?"

[They Reply} Yes, Dominic,

..or

no, Dominic

..or

how the hell did you get my number, Dominic? Stop calling me.

[Your Response] Okay to any of those answers. We move on.

It's the same thing as direct mail because if I send them a letter, they’ll call me and give me those same responses.

I'm just trying to get straight to it faster, more efficiently, more effectively.

I'm all about that…

Efficiency and Effectiveness.

The reason I like Kevin Durant so much more than a lot of other NBA players, because he is the most efficient…

He doesn't have to throw up 50 shots a game.

He can pull up 22

Make 15 of them

…and still score 30 points consistently.

(That’s 68% Efficiency)

That’s all I'm saying.

So, that's the script.

You book the face-to-face appointment with the seller.

I'm going to go through that in more detail in another training session. We’ll talk about how to handle objections and things of that nature, but you want to book the face-to-face appointment with the seller.

Go for the appointment, and then make your offer. I

t’s that simple.

The process is you gather your information, you do your due diligence, you run your comps and you get your numbers on point before you meet with them.

We don't talk numbers on the phone.

Now, I want to say that again.

We don't talk numbers on the phone at all.

At the meeting, you'll take the consultative approach.

You're going to be that person that's just advising them on the condition of the house, the market and things which can affect their home value.

You want to be engaging and you want to ask the right questions so you can uncover the true motives of why they want to sell or why they think they want to sell. You're trying to comb through the people that want, need and have to sell.

Make your as-is offer.

They accept. Great! Go through. Close that deal up.

If they deny you, whatever.

If they reject your offer, cool.

Put them on a follow-up system.

That's what I have for you. Cold calling is back, baby.

It's back. I promise you that.

Mark my words.

Until Next time!

P.S. watch it here - https://www.youtube.com/watch?v=xbs-ntIc0gA

- Dom