In the fast-paced world of wholesale real estate investing, cold calling can be the key that unlocks countless opportunities—or the stumbling block that derails a deal. Success hinges not just on what you say, but how you say it.
Whether you’re an experienced realtor or just starting out, your approach to cold calling can either build trust with potential sellers or send them running. By refining your communication and avoiding common mistakes, you’ll position yourself to close more deals and stand out in a competitive market. Let’s dive into the crucial strategies that will elevate your cold calling strategies and drive real results.
Understanding Seller Resistance
Cold calling often triggers a range of emotions in sellers. Steve Trang, emphasizes that angry reactions from sellers are often a result of how they're approached. He identifies common phrases and strategies that inadvertently create resistance and offers alternatives to foster more productive conversations.
Why Do Sellers Get Upset?
Steve explains that resistance is typically triggered by the caller's approach. He notes that everyone has had a negative experience with salespeople at some point, resulting in an inherent skepticism during unsolicited calls. Thus, it's crucial to adopt a mindset that anticipates and mitigates this resistance.
Identifying Counterproductive Phrases
There are specific phrases that tend to raise red flags for sellers. Steve highlights these critical missteps:
- "Is Mr. [Last Name] there?"
- "How are you doing today?"
- "Is now a good time?"
- "Are you looking for a cash offer?"
These common greetings and questions can make sellers immediately defensive, hindering any chance of a productive conversation.
Breaking Down Each Phrase
- "Is Mr. [Last Name] there?" This phrase signals to the seller that you don't know them, triggering immediate resistance. Steve recounts how such formalities are reminiscent of his high school days when he'd call friends' households, instantly marking the interaction as impersonal.
- "How are you doing today?" This question, though seemingly polite, comes off as insincere in the context of a cold call. Steve points out that callers often don't genuinely care how the person is doing, and this lack of authenticity is palpable to the seller.
- "Is now a good time?" This approach conveys neediness and often results in a quick dismissal. Steve advises substituting it with, "I hope I didn't catch you at a bad time," to acknowledge the interruption respectfully.
- "Are you looking for a cash offer?" Once a novel approach, this question has become overused and irritating to many sellers. Steve and other industry veterans like Brent Daniels have recognized the need to move beyond this overplayed script.
Crafting Better Cold Calls
Instead of using the above phrases, Steve recommends more effective strategies that minimize resistance and build rapport.
Starting the Call Right
- Use Familiarity to Your Advantage: When initiating the call, create the illusion of familiarity.
"Hey Matt, it's Steve." This approach uses a casual tone, similar to greeting a friend. It piques the seller's curiosity and lowers their defenses.
Handling the Timing
- Assume the Worst but Hope for the Best: Acknowledge the interruption by softly stating:
"I hope I didn't catch you at a bad time." This phrasing is respectful and prompts an honest response, often leading to the seller acknowledging they have a few minutes to converse.
Engaging the Seller
- 30-Second Commercial: After briefly introducing yourself, get straight to the point. Use a concise, engaging pitch that highlights common seller pain points without directly labeling their situation.
Share the feelings your typical clients experience:
"Homeowners we've worked with in the past were just overwhelmed with repairs, tired of fighting the city and the rules of HOA, or couldn't stand the idea of working with another realtor. But I don't suppose any of these apply to you."
This statement subtly aligns you with the seller's potential concerns, building empathy and opening the floor for further discussion.
Maintaining Momentum
- Securing the Conversation: Once the seller starts engaging, remind them of the initial time commitment:
"I told you I only need 30 seconds. Should we continue this conversation?" This tactic ensures consent and keeps the interaction respectful and professional.
The Mindset Shift
Cold calling is as much about mental tenacity as it is about strategy. Steve emphasizes the importance of mindset in navigating seller interactions.
"The gold is in the gap between what you believe to be true and what I believe to be true."
Understanding and adapting to differing perspectives between caller and seller can bridge gaps and lead to successful outcomes.
Final Thoughts
Cold calling doesn’t have to be daunting—it can be your secret weapon for unlocking incredible deals and building lasting relationships. By avoiding these common pitfalls and refining your approach, you can transform cold calls from dreaded tasks into high-converting opportunities. Imagine every conversation leading to real connections, productive discussions, and more closed deals.
The phone is your gateway to success. Armed with these tactics, you're ready to stand out, win over sellers, and close the deals waiting for you. Pick up the phone and make it happen!
