A lot of new real estate investors get VERY excited when they realize how powerful a direct mail campaign can be.
When most proactive investors figure this out – they tend to spring into action and start sending mail all over the place in a whirlwind of excitement (I've seen it happen time and time again). It's great to see a beginner being proactive like this, but at the same time – it's very easy to let the cart get ahead of the horse.
When the Calls Start Coming In…
The first time I sent out a direct mail campaign – I actually got kind of freaked out when the first person called me (even though they were doing exactly what I asked them to do). A flurry of thoughts went through my mind…
- OMGosh… what now??
- What's this conversation supposed to look like?
- What questions am I supposed to ask?
- How do I figure out if this property is even a good investment?
- Should I tell them my low-ball offer on the phone or mail it to them and see what happens?
- What if they're mean and yell at me?
- What if I stumble over my words and sound like an idiot?
I eventually realized that all of these questions were coming from one simple problem… I had no idea how to lead the conversation.
Why didn't I know how to lead the conversation? Because I didn't know what questions to ask.
The solution to my problem was actually quite simple. All I really needed was a basic set of instructions on what to say when the phone rang. Not a “script” per se – but something that would prompt me on how to start the conversation, what comes next and how to wrap it up. So I created a simple “checklist” to help me through each conversation.
The “checklist” was just a list of all the essential questions I needed to have answered in order to make an offer (and even after the thousands of calls I've had over the years – I still use it to this day). It helped me a lot – and if you're struggling with what to say when you're talking to prospects, I would strongly suggest that you prepare a specific set of targeted questions (nothing too crazy – just the basic stuff you need to know) and use it to guide you through every conversation.
Some people are naturally gifted at “winging it” and figuring out what to say on the fly, but believe me – most people don't work this way (especially when they're just figuring things out for the first time). For most of us, it's not normal to have dozens of phone conversations with total strangers about properties we know nothing about. As a rule of thumb, if you want to have an effective and productive first phone call, you need to know what questions to ask.
Knowing What You Need To Know
So what kinds of questions should be on your phone call checklist?
First off – it depends on what kind of property you're targeting. For example – most of the properties I buy are vacant land… so when a property owner calls me to discuss their vacant land property, this is what my checklist looks like:
A lot of other investors (including myself from time to time) are looking very specifically for single family houses. I've got another unique checklist for the purpose of discussing these properties:
And other investors are looking for multi-unit properties. I've got a checklist for those too!
Now – I'm not saying my checklists are perfect… I'm not saying my checklists are perfect (even though they've done pretty well for me) but I am saying that when the sellers start calling, you'd better be armed with the right questions.
Think about it – if you don't thoroughly understand what you need to know, why are you asking people to respond to you in the first place?? Even if you choose to send out blind offers – you're still going to get a lot of phone calls back, and it's important to use these opportunities to get as many answers from the property owner as possible.
Direct mail campaigns certainly aren't free, so don't start shelling out money and sending mail until you know how to handle these kinds of conversations.
This is why I created these checklists – because my pea-sized brain just isn't big enough to remember everything in the heat of the moment. These checklists have become an incredibly important aspect of my initial contact with each person and they act as a key piece of my due diligence. It doesn't necessarily give me ALL the answers, but it does help me get started on the right foot with each caller.
The Right Information Has Many Uses
I have to be honest… a few years into my investing career, I started to get really tired of phone calls. Even though the phone had proven to be a great way to connect with people, build rapport and establish a level of trust – I just didn't have the time and energy for it.
So what did I do? I created a website – one that was designed to replace me.
Instead of asking my prospects to call me (and chew up 30+ minutes of my time with each call), I started telling them to visit my website, where they could submit all the exact same information I would have asked for over the phone.
That's right! Instead of me verbally asking the questions and jotting down their answers in real-time, the website was able to gather all the same information without my constant involvement. Instead of ME being the bottleneck in my business, the website was able to do this aspect of my job 24 hours a day, 7 days a week – asking the questions I needed to know (via a property submission form) and answering the questions they had for me (via my FAQ page).
They simply fill out a short questionnaire (which includes many of the same questions from my property checklist) and once they hit “submit”, the information is sent directly to my inbox. With this website in place, I'm able to go through each submission at my leisure – giving it a “thumbs up” or a “thumbs down” in matter of seconds (not hours), which is about 100,000,000 times more effective than the way I used to do things.
A Time and a Place for Everything
Now don't get me wrong – there are definitely some situations where the phone is a FAR better communication tool than a website… but I've also found that in this initial “information-gathering stage”, it's less a matter of how the questions are asked and more a matter of getting the questions answered in some way, shape or form.
Want To Get The Exact Checklists I Use?
Knowing what to ask your prospects is pretty simple. You just need to take a few minutes and think about it.
- What kind of information will you need to know if order to make an educated offer?
- What kinds of things will you need to research before you're ready to close the transaction?
- What kinds of thing would cause you to say “YES, I want to buy!” or “HECK NO!” and run the other way? Figure out what those things are and ask about them!
That being said – I do understand the dilemma for new investors. When you're starting from scratch, the relevant questions aren't always obvious and there can be all sorts of hidden issues that don't rear their ugly faces until after they've become a problem. So if you're looking for a quick solution on how to handle this – I'd love to help you out…
Also keep in mind – if you ever want to fully automate your “information-gathering” process, be sure to check out my detailed blog post on How to Create a Buying Website (you might be surprised – it's easier than you'd think). Best of luck!