When you are out in the field, or on the phone screening callers, it can sometimes become a frustrating experience putting forth so much effort and writing a ton of offers to only be told “No!” when it comes to agreeing on a price that works with both parties.
Think about it, you spend a good chunk of funds every month for marketing, then someone has to filter the calls and figure out which ones are motivated enough or have a situation that works with your business model.
From there you can either choose to negotiate directly on the phone (not my personal preference), or more commonly you will go on an appointment to meet with them in person.
After all that work it takes to generate qualified leads, field the calls, and build rapport with the seller hearing the word “NO” over and over can be a little bit discouraging lets be honest.
But get used to it, real estate investing is ultimately a numbers game.
The 20 Best Books for Aspiring Real Estate Investors!
Here at BiggerPockets, we believe that self-education is one of the most critical parts of long-term success, in business and in life, of course. This list, compiled by the real estate experts at BiggerPockets, contains 20 of the best books to help you jumpstart your real estate career.
Change Your Mindset
When I first started the word “NO” it felt like an impassable brick wall, steadfast and impossible to overcome.
However, after implementing some of the tricks that I will talk about in this post, the word “No” becomes more of a temporary obstacle in most situations, rather than an impossible feat to overcome.
Now you have to understand, I am not being pushy or putting on my sales person hat in order to “convert” the lead. I simply understand the flow of time and how it can impact the motivation level of a seller.
The Flux of Time
Time is in a constant ebb and flow, and all situations change through time, and many times in your favor in real estate investing IF you are patient and persistence.
If they initially contacted you because they inherited a home 3,000 miles away that has been abandoned for 5 + years, chances are they will need to sell it at a discount even if they initially say “NO” to your first offer. Remember, all circumstances change through time.
Perhaps when you initially make the offer they have an unrealistic expectation of the market, how much the house is worth and how much the house will truly need in repairs and rehab to reach that number.
In my previous article I mentioned “red flag” events that light the metaphorical fire under the sellers feet whether it be delinquent taxes, foreclosure, liens etc. Any of these factors, through time, can contribute to the seller changing their mind.
Remember YOU cannot change the sellers mind, they must have a trigger event, or “red flag”, so don’t pester them and try to force a yes out of them, it will just turn them off and they will be less likely to do business with you.
The Good News
Follow up is the key component in this equation that will ultimately help you land more deals.
When it comes to motivated sellers, they often have reasons as to why they are looking to deal with you as a real estate investor instead of a traditional sale retail sale. When and if the seller does change their mind you want to make sure that you and your company are the first they recall.
How can you do this?
Even after I have been told “NO” on my offer I continue my direct mail campaign with the individual, or perhaps I will send them a friendly follow up email every several months or so. I don’t pester them, just enough so that they will remember me when the time is right.
And when the time is right, I will be there to help them.
Do you have any experiences where you’ve done this and got a deal from it?
Be sure to leave your comments below!