Is Cold calling an effective method to locate multi family deals?

Question

Does anyone seeing this post call multi family properties either on or off the market? I want to call on properties within a 2 hour radius. At least 30 units. Do I need an agent or broker to approach these?

Or is this not the right approach to the end goal? I figured it’s worth trying.

Greg Dickerson · Answer

@Joshua Howaniec cold calling sellers for off market properties is one of the best way to find deals. That’s how the brokers do it but you need to be experienced, professional and know what your talking about as they will sniff out the rookies fast.

If the property is listed you should definitely call the broker and do not try to bypass them.

Account Closed · Answer

@Joshua Howaniec Cold calling, when done effectively is one of the best ways to get any sort of deal. The key here is going to be your data source.

Ruben Kanya · Answer

@Nandy B.  to @Bill Plymouth 's point, you gotta get started and test different scripts. There a ton of scripts out there, wether it is online...at the end of the day, a script is guide for you not to get stumbled on POINTS you would like to hit during a  CONVERSATION.

I highlight "points" and "conversation" because the two go hand in hand together. You need to have a direct objective of why you are calling them , the second most important  point is creating a real genuine conversation which is often the challenge with marketers, who have their own agenda and their own agenda only and fail to do the most important thing is LISTEN and allow space for a conversation to be created. With that being said you need to know what information you need to know and be genuine enough to know that they are talking to a person who a) knows what they are talking about b) is not a marketer simply wasting their time. It's definitely an art that can be mastered from numerous calls and from some guidance from those who have done it in the past. But remember the mind frame is always "what's in it for them".

Otherwise the most overlooked skilled these days is communication, reading books such as "Splitting the difference" "pitch anything".."crucial conversations", Grant Cardone material (which we use in-house Grant Cardone University) , Keller Williams Scripts....there's just an abundance of stuff out there that will not only help you in your real estate career but also as a family, friend, employee, spouse or leader in your community. Communication skills should be a long lifetime commitment :)

P.S. for seller financing you can get a broker to send you seller financing searches and again pitch seller financing as an option that you would consider to attempt doing, and make sure you educated the seller in layman terms what seller financing looks like, people can't accept something they don't understand.

Hadar Orkibi · Answer

@Joshua Howaniec  I agree with   @Greg Dickerson. Cold calling is very affective what to get off market opportunities. it is not easy job to do because more often then not getting the phone numbers of the decision maker can be changing., especially if the property is owned by an LLC or an ownership group.

Another thing to consider is that the one that is calling ned to know what they are talking about, it is not as simple as hiring a virtual assistant to do it from the Philippines.

I been doing cold calling for awhile now, and will continue doing so few times a year.

Often you will be talking to a potential seller that is not ready to sell yet, then you need to keep following up with them regularly. been dedicated to the process is the key.  because it is very time consuming.....

Greg Dickerson · Answer

Tax data base is a free resource, list source is good and for a paid service check out https://www.reonomy.com/

Greg Dickerson · Answer

Just be yourself and be honest let them know you are just getting started and trying to get your first deal going. A lot of sellers will take you under their wing help you and finance you if you are honest and straightforward about where you actually are in the business.

Hadar Orkibi · Answer

@Joshua Howaniec I introduce my self as an active multifamily investor that is seeking to expend the portfolio in the market place.  Followed up with "would you consider selling your property at 123 main st, Or any other Multifamily  property you own?"

That is starting the conversation, then we chat about the market etc, I ask for permission to "touch base" with them later on if they are not ready yet.

Bill Plymouth · Answer

@Joshua Howaniec they are right by saying that people can sniff out a rookie, but don’t let that deter you.  You’ll always be a rookie if you never get started.

Ruben Kanya · Answer

@Joshua Howaniec I've been calling owners and have received some results, as a matter of fact, to @Hadar Orkibi I've gone ahead and trained our virtual assistants to screen quality of numbers. I am a broker and happened to have done many calls myself by getting a list from Costar however not being a broker should not limit you as long as you have a QUALITY list.

I say that because our costar list of numbers is often directed to the property management company which then becomes a conflict of interest for them to pass your contact information to the owner because you are essentially potentially putting their job in jeopardy. One of the first things owners do to 'value add' per se is changing the management company of an apartment, considering that they are well aware of that...any potential buyer that calls is a potential threat unless it's been made very clear across the board that they are welcoming buyers, which is often not the case...especially if it's a good operating apartment.

That being said, QUALITY of a list and QUALITY in calling will get you in front of buyers. My virtual assistant has gotten me numerous leads including a 76 unit property where I was able to build great rapport with the owner and we are still in conversation for a potential deal today. If you are looking for a quality trained VA who can do this, part of my company trains them in-house and we can talk offline for more info.

@Greg Dickerson what are some quality  lists out there that you are finding useful particularly for multifamily? A partner of mine uses listsource but I've yet to use it myself...any insights?

Joshua Howaniec · Answer

@Hadar Orkibi Thanks. When I make calls for my first job I use a script for general guidance purposes. Do you happen to use a template or have something as a guide? Otherwise it's cool, I'll just start jotting stuff down and stick to it. Just to get through the call if nothing else at first.

@Ruben Kanya quality of list will certainly be part of the challenge. Before making this post I was just gonna start calling numbers associated with the buildings. But a few guys on the thread have given me better direction yourself included. If you are willing to talk about how you train your guys or what you taught them to say generally I will PM you and we can talk at a time that works best for you.

Also, I just read your second comment. That's awesome that you use Grant's material, I pay monthly for Cardone University myself. Do you use his real estate program? How have his materials helped you out? (not to be a promo for him, I'm really just curious to see how effective it is for others)

@Bill Plymouth exactly. I gotta start somewhere with multifamily. You know what it is, I see people who are "seemingly" less capable or are just oblivious to how little they know but the important thing is they get "lucky" because they are actually taking actions. And as they take action they just keep learning and adjusting.

Account Closed agreed. I will check out list source against some of the other sources mentioned above. Keep calling those list bro!

Is Cold calling an effective method to locate multi family deals?

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