How to Successfully Use Cold Calling for Real Estate Investing
Cold calling to find properties for your real estate investing business is a positive part of your overall marketing strategy. A cold call is an unsolicited call used to initiate a relationship with new buyers or sellers for your real estate investing business. Cold calling may seem antiquated in today’s fast paced and tech savvy world, but this old school approach to marketing still works and changes as technology advances.
Why Cold Calls Matter in Real Estate Investing
Most people don’t enjoy the cold calling process. This includes real estate investors. Cold calls often end in rejection and can feel like they don’t work. However, cold calls do in fact work!
Not only do they work, but they deliver a high return on your investment. The positive ROI when compared to other marketing tools, make cold calls smart and necessary to build your real estate investing business. A few costs incurred with cold calling includes phone fees, your time, dialer expenses and outsourced labor costs.
While you may not prefer to make cold calls, this is a proven strategy to build both your buyer and seller lists. These relationships are key to long-term real estate success.
When to Use Cold Calls in Real Estate Investing
Cold calls should be strategic. You aren’t simply going to pull out the phone book and start dialing. That would be ineffective and ridiculous. Instead, take a targeted and calculated approach with your cold calls.
Build a calling list to locate motivated sellers. The goal is to find properties to purchase as an investment. Three groups to target include: foreclosure, probate and tax-delinquent properties. These are property owners that are motivated to sell. Another group to target is homeowners in neighborhoods that are on the brink of improvement where they may want to sell versus facing property tax hikes.
Build your call list from real estate owners in these categories as well as commercial real estate owners. Oftentimes, commercial real estate owners may be interested in buying properties even if they don’t want to sell any of their currently owned properties. This means you can add to both your buyer and seller list through cold calling.
Options for Cold Calling with Real Estate Investing
There are several ways to make cold calling work for your real estate investing business. With modern technological advances, like dialers, calls can be made quickly and effectively. In fact, dialers are also now more affordable than ever.
The way a dialer works is that many numbers are called simultaneously. The dialer can be programmed to leave a prerecorded message when calls go to voicemail. The system can also be programmed for when a live person answers to send the call to a live person on your end. This means times isn’t wasted leaving messages on voicemails.
Outsourced calls are another way to go. You can hire a company or individual to call on your behalf. This means you receive the benefit of cold calling without having to do the work yourself. This helps save you time, but it will cost money. The benefits could outweigh the costs depending on where you are in the process of building your real estate investing business.
You can also make calls on your own. First, you may choose to skip outsourcing or dialers and simply work through your call list independently. However, you may decide to call as a second line of communication for qualified leads only. This means when you do talk to someone, your time is used more valuably.
Develop an Effective Script for Cold Calls
Regardless of how you decide to execute your cold calling strategy, an effective script is key to your success. A script keeps you from fumbling through the calls. Also, a script is essential if you use either a dialer or outsourced callers. This keeps your message consistent whether a message is left or a live person talks with the prospect.
The script must be well-written in order to deliver a simple yet strategic message. Keep the script quick so that you get to the point of the call before the caller hangs up. Many people end the call as soon as they realize it’s a solicitation. However, if your list is targeted, many of the people answering will want to hear what you have to say.
Practice the script before you call so that you don’t sound like you’re reading. You want to sound informed and professional. If a live person answers the phone, you want to make a good impression.
Finally, end with a question. Make sure the person knows why you’re calling and the next step to take. Also, always end the call with a thank you! Keep your reputation solid from the start.
Know the Rules with Cold Calls
Another important point is to know the laws and regulations around cold calling. Certain guidelines apply to solicitation calls. This includes the hours in which you may call and how often you can call. The regulations can change, so stay up-to-date on the current laws.
If you work with a dialer service, they should be aware of the regulations. However, if you outsource cold calls to an individual they might not know the laws, and you will be responsible.
Remember the end goal, which is to build new relationships with sellers or buyers. You won’t be able to do that if you irritate or frustrate the individuals you are calling.
Other Effective Strategies for Your Real Estate Investing Marketing Mix
Cold calls are only one of many strategies available to include in your marketing mix. Create a solid marketing plan with a variety of avenues to reach both buyers and sellers and expand your network. Focus on tools that work, like a website, ads, networking and cold calls.
Also, invest in a proven and effective real estate investing mentor and training program. Laura Alamery offers support to build your real estate investing business through mentoring and training.