Cold call or send a letter/postcard?

Question

So I've compiled a list of properties in my target area after driving around for hours and hours and I've checked each for equity. Now I can't decide if I should send a letter/postcard or give them a call. And if I give them a call, how should I open up the conversation? I want to get an idea for motivation early on, but don't want to come on overly aggressive.

What do you think the best strategy is initially? What has worked for you?

Bill Gulley · Answer

Hi Sage, to each his own, but I have never sent out a mass or direct mailing. I'm sure it works or people would not do it. IMO, a mailing presents an impersonal approach and relates to your interest in a property. Many times the owner is simply curious as to what they could get, they are not really motivated sellers, but they might call jsut to see what you offer. That's alot of time and effort for nothing. I always call, it's more personal and while it tips your hand in that you are interested in the property to a greater degree than a mailing, since you tracked them down, it gives you the opportunity to ask questions to determine the degree of motivavtion. I guess this post is evidence of the gift of perhaps meaningless gab, but that helps in cold calling. Some of us are very good at it and I have had great success at it. Anyone can be with practice. The key to cold calling is to get to the point quickly and be considerate. Don't call during dinner time or later than 8:30 pm. Also, don't call during a popular TV show or especially during a big sporting event. Never call on Sunday morning and avoid Sundays all together if you can. If you call and get an answering machine, leave a short message, your personal name, your number and the purpose of the call. The purpose of the call is simply "I'd like to speak to you concerning your property at 1234 Walnut in Anytown". With this message, they don't know if the house burned down, blew up, caved in or your kids broke a window. They may also think you want to rent it or buy it. If the property has been vacant for some time, they have received calls before. When you call and get an answer, I say something like this: Hello, is this Mr. Smith? You'll get a reply. Then if it is begin, if not, ask for them and give your name before they ask. Oh, I'm sorry, this is Bill Gulley, is Mr. Smith there? Etc. I never use the old collections call techniques acting or posing as a friend, is Fred there? Not good. When I get them on the phone, it's pretty straigh forward. Mr. Smith, this is Bil Gulley, do you have a minute to talk about your property at 1234 Walnut? If they say not really I'm busy, ...Ok, sir, when is a good time to call you? Now, he is thinking, this guy is going to call back, might as well get this over with! Well, what do you want? I'm a landlord and I'm interested in aquiring properties to lease, I noticed your property is vacant now, would you be interested in selling it? He says, No, it was my mother's house....oh, I understand there is a sentimental value there, are you going to let it remain empty or will your family be using it?..... All kinds of things can come up, what you need to do is instill the motivation to do something. Well, it's a shame to see a solid house waste away, you know it's hard on a property to allow it to sit vacant....I'm sure the neighbors would like to see someone in the proeprty. Never refer to the property as a "home" if it's vacant, it is not a home, it's a house or a property. "Home" may strike a sentimental cord you don't want to play. Eventually, they will say, what will you give me for it? I say; Mr. Smith, I'm willing to give you a fair price for what it is. Since I have not been able to see it, I can't really make you an offer. What do you think it is worth, what have similar properties sold for in that area? Don't ask what they want, what they want is irrelevant, they want a million bucks! Make them consider the value as it relates to similar properties in that area which have recently sold. Usually, they will say they don't know, which is true, they don't. Now you have the opportunity to show them what it is worth. Well, Mr. Smith, is it ok if I see the property, can you meet me there so I can do a quick walk through, how about this Thursday afternoon or would Staurday morning be better for you? Don't forget to thank them for their time regardless of the outcome of your call. If there was no interest at that time; Well, Mr. Smith I'm sorry to have bothered you, but I am obviously interested, I'd like to give you my number and if you change you're mind would you let me know? Or, when the estate is setteled, will you give me a call? Thank you, I look forward to hearing from you, have a nice evening, good bye sir. After you do a few calls you'll get your presentation down to an art form. It's easy, quick, efficient and it allows action to be taken in a timely manner. Some people you talk to it will be like pulling teeth to get information or to get them to make a decission. Others will will want to tell you all about the property, who lived there and what a fine "home" it is. If they talk the property up, they are interested in selling, read between the lines. Let them talk and at least act interested in what they are saying. Now, pick up that phone and make the call! Bill

Bill Gulley · Answer

CLifton, I like that, that's good if you're looking for short sales. Attempting to find properties at the court house is also what I prefer, but I drive by some areas for other purposes too and the public records won't tell me about the property, if it's vacant, etc. I also prefer to do seller financed deals, can't do that out of a short sale. If I were looking for SS, that is a good way to do it, but I rather talk to them, I can find out in an hour or less if there is a possible deal. Many times, I know by the end of the day and have contracted before a letter could even get to the owner. But, I do like your approach! Bill

Clifton Jones · Answer

This is how we handle this scenario. First off, we usually deal with properties with no equity and then handle the short sale negotiations in-house. To market for our properties, we utilize the county records instead of drive-bys, as we are specifically looking for houses that are upside down on the mortgage. That said, the marketing to these customers is pretty much the same, although the responses from the potential customers will probably vary. We mail individually written letters and hand write the address on the envelopes. We have a lady write the letter and address it to a man at the intended house, if one lives there. This usually results in the wife opening the letter, which is what we want. It provides a higher response and we receive many calls from the women who then state that it was a great marketing ploy. Our letters are extremely simple. Here it is: "Hello, My name is Clifton Jones and I am interested in purchasing your home. If you are interested in selling, please call me at (321) 622-9148. Thank you" We mail out about 100 per week and receive about 15-20 calls each week.

Chris T. · Answer

Hey Bill, I noticed that you like to pick up properties from the court house. Are there not a million investors swarming around these auctions? In my area, if it makes it to the courthouse steps with out having been picked up already then it most likely isn't a deal. Court house properties in my area have way too much competition!

Sage Jankowitz · Answer

I have a rough idea by checking the assessor's database to see when the properties were last sold. If the property was bought in 2004 I know there isn't close to enough equity there.

Chris T. · Answer

Sage, When I make a phone call I usually tell them, "I was driving around the neighborhood looking for some properties to purchase. I don't have any idea who would be interested in selling so I just wrote down some addresses of houses that I like and thought I'd give you call to see if you would be interested in selling." They usually say, "well maybe, it depends on the offer." What they are saying is, "Yeah, if I can get rich off the deal!" From that point, any offer I make them is just going to offend them. But, someday, you might get lucky and call someone needing to sell yesterday. It's like panning for gold! You sift through a lot of junk before you ever find that nugget you were looking for. I prefer mailing because your message on the post card can target their motivation. If they respond to the message by picking up the phone and calling me then it's down to business from that point. Analyzing the property! When people call from one of my postcards I instantly know two things, they have equity (because I targeted people with equity) and they think they are motivated to sell (how motivated is yet to be determined). You are going to end up talking to prospects on the phone one way or the other but I prefer to be talk to someone who has been pre-screened (responders of my postcard).

Clifton Burse · Answer

Hello, how did you find out how much equity are in each of the homes???

Demos Loizides · Answer

I know I don't like unsolicited calls, so I don't cold make cold calls. Definitely call people that have a sign or ad asking you to call them. For mailings, I use postcards and I use Click2mail.com to prepare and send my postcards. You may have to send a series of postcards over several months to get any success. Good luck!