How to Use Cold Calling for Real Estate Investing Success

Let’s be honest, cold calling isn’t fun. While it may feel like cold calling results in more hang-ups than connections, it is an effective and vital strategy to grow your real estate investing business. Considering the continued challenges of 2020, connecting to potential leads over the phone creates a safe way to search for sellers and buyers.

After the influx of robocalls from the recent campaign, you may fear fatigue from calls. Yet, with the right messages and targeted lists, you will reach individuals more likely to want to hear from you. As part of an overall marketing strategy, cold calling works in combination with your other marketing channels to drive leads and build a path to real estate investing success.

How Cold Calling Adds Value to Your Real Estate Investing Business

Believe it or not, cold calls work! Otherwise, businesses would stop using them. After over 30 years in the industry, we continue to see success with cold calls. Now, with automation tools, we can reach even more people with less effort.

Additionally, cold calls are a budget-friendly marketing solution. They offer a high return on investment (ROI) when compared to other marketing tools. When considering how to add cold calls to your marketing budget, factor in the costs: phone fees, your time, dialer expenses and outsourced labor costs.

A Targeted Approach for Effective Cold Calling

Cold calling isn’t a tool to use on the fly when you have a few extra hours on your hands. To be effective, you need a strategic cold calling plan. Understand the reasons behind the call. Start with a targeted method and list for your cold calls. Use a separate script for connecting with sellers and buyers.

When reaching out to potential sellers, create a calling list of motivated or distressed sellers. Look for properties in pre-foreclosure, probate or tax delinquent status. Most counties offer an online database listing these types of properties. The goal is to connect with the property owner before an auction takes place.

One goal of the call is to communicate the benefits of selling outside of the traditional real estate process. Also, share how selling to an investor works to their financial advantage over going through the auction process and losing control over their property and choices. Distressed sellers will often sell at a below market value price, which is what you need to make a profit as an investor.

Stay the course. Even if one caller moves forward with a deal, you will see a return on your investment with cold calling.

Make Cold Calls Work for Your Business

Thankfully, today’s technology maximizes your cold calling efforts. The days of hand dialing each contact have long been over. Technology options make cold calling more efficient while maintaining affordability and accessibility regardless of the size of your real estate investing business.

1. Use a Dialer Option

A dialer calls many numbers at one time with the option to leave a prerecorded message or send the call to a live person once the call connects. The benefit with a dialer is to avoid leaving individual messages when the caller doesn’t pick up. Yet, you maintain the ability to connect if a live person answers the call.

2. Outsource Cold Calling

Both companies and freelancers are available to make cold calls on your behalf. To make this work, you must have a script covering all the important points and guiding the conversation. You can combine the use of a dialer with outsourced operators to talk on live calls. This option costs more in labor fees. You do receive the benefit of a personal connection without having to spend your time on the phone.

3. You Make the Call

You don’t have to use any technology, or you can combine technology options with your support. This approach works best for tight marketing budgets and those beginning in real estate investing. Maximize your effort by making personal calls to follow up on leads that you reached through another channel first, like a postcard or social media connection.

Grow Your Business with Cold Calls

Don’t let fear keep you from using this “old school” marketing tool. Real estate investing can feel intimidating to sellers. Sometimes a phone call works well to convince a prospective seller to choose the non-traditional route. With a call, you can answer questions and reassure the prospect.

Diversify your marketing strategy with effective tools, like cold calling.