The Science of Flipping - Episode 123: How To Get More Leads Without Having To Increase Your Marketing Budget?

Starting point is 00:00:00 Welcome to the Science of Flipping Podcast. I'm your host, Justin Colby. Justin Colby. Yo, yo. All right. Welcome to this training. And today today what I want to talk to you guys about is going to be more focused on marketing and potentially even if you're a beginner, but I don't want to leave out the people who are already knocking it dead, crushing it, maybe even doing five deals a month or more

Starting point is 00:00:38 because what I want to focus on is how to get more leads through your door without necessarily having a huge marketing budget or having to increase your marketing budget. Let's just call it what it is. We are in the marketing and sales business. This is all about us marketing as much as we can, as hard as we can to go find sellers to sell us their home. Now, it's kind of funny. We're trying to find sellers to sell us their property, right? And we're going to be the buyer, but the reality is we're selling them on ourselves, that we are going to be the best option

Starting point is 00:01:18 for their needs. I did a training a little while back again about five layers to selling. First being their needs. You need to focus on their needs. You need to focus on their values being number two. And then you need to have a solution for them being number three. And there's two others, but those first three are going to be massive, massively important. And so, you know, where I want to go with this training very specifically are the two and maybe three strategies that I will tell you if you are just beginning, or if you are someone who is trying to scale up and, you know, pour some gas on what you're already doing. the three strategies I would be using is door knocking, cold calling, and ringless voicemail. And the reason why I think each and every investor should be using all of these strategies simultaneously is because again, if you are just beginning,

Starting point is 00:02:16 they're very, very inexpensive. It does not take a big marketing budget at all for you to go out and make cold calls, door knock, or send ringless voicemails. Conversely, if you're actually someone who's already working the business and already successful in the business and already collecting checks, closing deals, and all of that, this is another way to grow your business without having to go from 10 grand a month in marketing to 20 grand a month. You actually can just do it with effort. And what I want to press upon you in this training is going to be, you're going to spend time or you are going to spend effort or you are going to spend both, but you have to make the decision. So if you're looking at your bank account right now and you're

Starting point is 00:03:05 jumping online and you're thinking to yourself, man, I don't have much of a marketing budget, not a problem. When I first started, I was dead broke. I just lost my home to foreclosure, my car to the repo man. I walked away with $40,000 of credit card debt. I understand. I've been there. I just started the business right when that happened now Fast forward to today I can spend anywhere from 40 to 60 grand every single month on marketing But I will tell you in my marketing budget in my business. I still focus on cold calling We have 12 cold callers Calling each and every day

Starting point is 00:03:41 I still have door knocking teams that are going out and knocking on doors based around the lists I give them. The list very specifically are going to be, you know, notice the default absentee homeowners and potential probate leads, right? So notice the default probate and absentee homeowners. I have them door knock that. And then we also send ringless voicemail. Now, you might be thinking to yourself, well, isn't cold calling and ringless voicemail pretty much doing the same thing? Because I'm doing it to the same list. So that list of people that I'm going to cold call, I'm also going to send a ringless voicemail. I'm also potentially going to door knock. The reason why that's so important is because you need to be able to attack people multiple ways, right? So you might not get them to answer

Starting point is 00:04:30 the phone. So you want to do a ringless voicemail because it skips the ringing of the phone. You might not be able to get them to call you back from the voicemail or cold calling. So you want to door knock. You want to attack them as many ways as possible because in sales, it's all about touch points. The more touch points you can have on somebody, the more likely you are to get the sale. Now, the reason why I love door knocking so much is if you know anything about sales, if you know anything about conversion, you have a much higher chance, and I mean greatly higher, much higher chance converting that homeowner into selling you a deal if you're face-to-face. Now, what does this all look like in terms of what do you say? Okay. So what do you

Starting point is 00:05:19 say to someone if you're cold calling? What do you say to them for the ringless voicemail? And what do you say to them if you're door knocking? Well, here's how the cold calling script looks. Hey, my name is Justin. I'm a local investor in the area. I'm looking to actually buy a home in your area. Are you interested in selling your home or maybe receiving a cash offer from me? Now, depending upon what they say, they may say no and hang up on me. They may tell me to F off. They also might say, hey, I don't know. What are you thinking? Now, that I don't know what are you thinking is an open door. They just open the door. It doesn't mean you're going to be able to get the deal done. It doesn't mean you're going to be able to close the deal. It just means they've opened the door to further conversation. So what you want to

Starting point is 00:06:08 do from that point is you want to be able to see what are the three things. Okay. I have three questions. I'll ask them at this point. And it's not about the house. It's more about I'm trying to find what they value and which will be, and or what their needs are. I will ask them, when do you need to close by? How much are you looking to get? Why are you selling? Those are the threes, right? Why, when, and how much? Why, when, how much? Why are you interested in having this call with me? Why are you interested in talking to me? When are you looking to sell and how much are you looking for? Now, based around that, the conversation go a bunch of different ways.

Starting point is 00:06:53 You might have someone who says, well, you called me, buddy. How much are you willing to offer? I got it. Not a big deal. Hey, awesome. I don't know right this moment how much I'm willing to offer. A lot of that depends on what the home looks like, the inspection I want to do. So let's talk a little bit further about,

Starting point is 00:07:12 do you really have an interest? Because if we agree on price, I'd be very interested in buying your home. So if you are interested, when would you like to move out? And if I can understand that, then I'd maybe even be open to coming in, taking a look at your home, shaking your hand and seeing if we can put something together for you. Well, I don't know. I've just been thinking about selling. I don't know when I would want to. Well, do you know how much you would like to get? Well, again, you called me.

Starting point is 00:07:40 Why don't you make me an offer? So then you kind of go through the banting back and forth. So then you could potentially, again, based on other trainings, you'll learn how to do a tabletop analysis, but you do like a Redfin or Zillow tabletop analysis to get an understanding of how much the home is worth. You take that information, you give a bracket. So let's just say you would buy the home based around your analysis of the property let's just say you would buy the home based around your analysis of the property. Let's say you'd buy the home for 200 grand. So you would say, hey, listen, I'm willing to offer you probably somewhere in between 170 and $210,000, somewhere in that ballpark, just depending upon what the home looks like. Is that something, Mr. Seller, that you're

Starting point is 00:08:25 open to? That will dictate everything. He says, oh, I wouldn't take anything less than 300,000. Well, then you'd continue the conversation based around why do you believe you can get 300,000? I don't see anything on the internet that says that. There's no comparables. Oh yeah, well, 14 blocks up, someone just got, right? And then they'll have all their excuses. But that's how you go about with the call. The ringless voicemail is a voicemail that'll drop right into their cell phone. I don't know where my phone is, but I'd show it to you. And that is basically letting them say very similar message, you know, Hey, um, sorry, I missed you.

Starting point is 00:09:08 I'm looking to actually buy a home in your area. If you're interested in selling and or open to a cash offer, please call me back at this number. 1, 2, 3, 4, 5, 6, 7. Um, if I do not answer the phone, please leave a voicemail with your name, contact info in the property address. That's the voicemail that automatically drops in their voicemail, the same person that I'm cold calling. And then they call me back and they will also hear a voicemail. I will not

Starting point is 00:09:39 pick up. They will also hear a voicemail saying, hey, thank you for giving me a call. Sorry, I'm not in right now, but if you could leave your name, your number, and your property address, I'd be very interested in calling you back. That's ringless voicemail. They leave a voicemail and you call them back. So far, you're not spending any money, right? I mean, cold calling you could do for less than $200 a month, RVM, very similar. And then you call them back and have a similar conversation like you just heard me have with cold calling. The last is going to be door knocking. Door knocking, again, I'm usually going after notice of defaults. I'm usually going after

Starting point is 00:10:16 probates and or absentee homeowners, and potentially even the list of people I'm calling for cold calling. And when I knock on their door, it is very simple. I don't care if they're going through notice of default and they're short on their mortgage. I don't care if they're an absentee homeowner. I don't care if they are in probate. I will not bring up any of those scenarios. I will simply knock the door and have a very simple, straightforward conversation with them. Hey, I was actually just walking the neighborhood because I'm looking to buy a home in the neighborhood. I was interested in talking to some of the homeowners to see if they're interested in selling and potentially receiving a cash offer.

Starting point is 00:10:59 That's it. The conversation will continue the same way that I had the cold calling conversation. And then obviously, like I mentioned, if you know anything about sales, your conversion will jump up drastically as you are face to face. So you will have a much better conversion rate face to face than you ever will dropping voicemails or cold calling. However, again, the point of this training, if you're just beginning and or looking to scale your business, you really need to be focusing on these three as your major ways of marketing. Because again, we're in marketing, we're in sales.

Starting point is 00:11:37 And if you can just go after a law of averages, it's a numbers game. You miss every shot you don't take and all the other stereotypical quotes, you will succeed. So again, I run all three of those models in my business. I also do direct mail. I also do PPC, but those are much more expensive. So the intention here is to keep your marketing costs low while still having a shotgun approach, meaning talking to a lot of people rather than a rifle approach, which means going deep and only talking to one or two people, you will be able to scale your business and potentially get your first deal if you are getting started.

The Science of Flipping - Episode 123: How To Get More Leads Without Having To Increase Your Marketing Budget?

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