The Science of Flipping - Episode 182: Cold Calling Is The Best Marketing Strategy For Sellers Real Estate investing

Episode Date: January 15, 2021

Cold calling has been a massive marketing technique for most real estate investors this year, and for good reason. So what are the best practices when it comes to cold calling for your REI business?

What's up everybody? Welcome back to this channel and this podcast, The Science of Flipping. I am your host, Justin Colby, and on this podcast we're going to talk about why I love cold calling. The number five has everything to do with it, and I'm going to dive right into this on this podcast in this video right now. Check this out. What's up, everybody? Welcome back to this channel and this podcast, The Science of Flipping. I am your host, Justin Colby, and on this podcast, we're going to talk about why I love cold calling. The number five has everything to do with it, and I'm going to dive right into this on this podcast in this video right now. Check this out. All right, guys, listen, this episode is both on iTunes and on

YouTube. If you are listening to my podcast on iTunes or Spotify or any of the other platforms, make sure you check out my YouTube channel. Just go to youtube.com forward slash Justin Colby. I do everything real estate investing, business, and entrepreneurship right there on YouTube. So if you're already on YouTube, make sure you like this video. And if you are not on YouTube, the first thing that you need to do when you're done with this is go over to YouTube,

subscribe to my channel, and make sure you're watching these videos. I drop a video every single day. So let's get into this episode and make sure you're watching these videos. I drop a video every single day. So let's get into this episode and why I absolutely love cold calling. Now, let's rewind a little bit. I actually got started in real estate investing back in 2007 and I started with cold calling.

So it'll always have a special place in my heart. Now, fast forward 14 years now, I have done a ton of different marketing. I've done a ton of direct mail and pay-per-click advertising and door knocking teams and bandit sign teams, et cetera, et cetera, et cetera. But I've never given up cold calling. And the reason being is it just still works.

For those of you out there that don't love the idea of cold calling yourself, well, guess what? There are services and companies that you can absolutely pay to do it for you if you have the marketing budget. So I'm going to go through this entire idea of cold calling, how you can do it yourself, why I love it. But the reason I love it and why i'm telling you about it right now and why i keep throwing up this five for those of you watching this on youtube

is because in the last 45 days cold calling has brought me in 150 plus leads in a virtual market. Let me say that again. In a virtual market, which is Oklahoma City, I have brought in 150 plus, I think it's like 152 leads since December 1st, calling. I have contracted five, is why I like this so much, five deals. I have sold two of those deals I have two out on marketing right now that have interest. We're just trying to line up access They have just are not contracted with the buyer and I have one that we just contracted yesterday that is set to go out into Marketing so this is why I love cold calling now Now, that is a snapshot in time right now. Again, since December 1st to right now it is January 14th as I record this podcast and video for you guys.

That is 150 leads. I'm converting about one out of every 30. That is where you should be with a talented acquisition person. You should be contracting one out of every 30, especially if you're doing this virtual. Now, if you are doing this virtual, let's talk about this. Another reason why I absolutely love cold calling is because you can do it everywhere. You can do it anywhere and you're simply just trying to talk to people now you

can actually well let me rephrase that the idea of cold calling is so to go wide I use cold calling in a very wide marketing strategy I still use direct mail heavily but it is very specific and tactical with a very niche list when I'm trying to go wide I am using cold calling. In fact, direct mail is actually played in combination with cold calling because those leads that really need a lot of nurture, I will actually send them direct mail as well. To get back to cold calling is I can go wide in any market anywhere

as long as I get the list and i use prop stream if you just use promo code tsof which stands for the science of flipping you can use prop stream and put in promo code tsof they will give you a free seven day trial and then i skip trace with batch skiptracing.com again use promo code t s o f and they will actually give you three cents off your skip tracing price. So I'm here to give you guys discounts for those. But as soon as you pull your list from PropStream, you get it skip traced over at Batch Skip Tracing,

you can call anywhere in the nation. And you can call as many times as you want. And it's completely scalable. Many people who are just starting out, you should be using Mojo dialer or Zen call. They're just a triple line or I think Zen calls like an up to an eight line dialer. That way you can call more people than if you're just using your phone. So you can essentially call roughly a hundred people an hour with the triple line dialer like Mojo. And then from 100 people,

you should be able to pull out roughly one lead. Now, I have two different companies kind of going head to head on their calling services. And so I have 16 cold callers working for me in all three of my markets. So I am in Phoenix, I am in Tucson, I am in Oklahoma City. Now, I have callers in all of these markets, and basically I am A-B testing which one is better. As a moment in time, they're both doing really, really well, and this is another reason

why I wanted to make sure you guys know that you need to be cold calling right now. If you're a solopreneur, I'd encourage you to get Mojo Sales. Start the triple line dialer. Download the list from PropStream. Skip Tracy with Batch Skip and get going. Take action now. That is what you need to be doing. Okay.

And then the next component of cold calling will be bringing in the leads. Now, here's a caveat that a lot of people don't talk about, so I'm going to bring it to light now. Cold calling doesn't tend to bring in the most motivated leads. Now, I'm not saying you're not going to find motivated sellers in your calling, but relative to pay-per-click advertising or direct mail, cold calling doesn't bring in the most motivated, but what it does do is brings in the most volume. Now, this is why, again, I love cold calling because if it's a volume game and I'm great at sales, I know it's

a law of averages. I just need to talk to all these people and I will find one or two or three or in my case five that I can send an offer that they are going to actually sign. So I want to be good at sales and then even more importantly I want to be good at nurture. As I just told you guys, cold calling is high volume volume not as much motivation That's okay If you're good at nurturing that relationship and so I focus a lot of my training with my team on Negotiating but also nurture. How are you following up? How often are you following up? What type of follow-up are you doing? I'm always in favor of using a phone or a text message in follow-up I know there's a lot of people out

there that say you got to automate this and you can just press a button and it does all this stuff and it's so great and there's a time and place for that like i don't mind doing some automated email sequence through your crm if the lead has been around for nine months i get it you're just trying to keep in front of them all good But if this lead has been in your database for a week, two weeks, 30 days, 60 days, I want there to be a much higher conversation, whether that's coming from the phone or whether that's coming from text messaging.

Now, the secret that a lot of people don't realize is really making those offers. Even if you're just close. A lot of people will have a conversation, you're not really that close, but they don't get to the point of actually physically making an offer and saying, hey, Mr. Seller, Mrs. Seller,

I know we're not exactly close. I'm actually gonna send you this offer so you can actually really digest it, think about it, see if it can make sense. I wanna be able to follow up with you. That's a trick. That's a little ninja trick of the trade there, right? I wanna be able to follow up with you. Well, that means I have to follow up with you. That's a trick. That's a little ninja trick of the trade there, right? I want to be able to follow up with you. Well, that means I have to follow up with you because I just sent you an offer. So that might not be off the first call, might not even be off

the second, but at some way in that, you know, somewhere in that entire chain of communication, I want there to be an offer given, right? I want offers to be a higher number and I want accepted offers to be a lower number, usually one third, right? So we made roughly 16 offers, not roughly, but 16 offers to get five actually contracted deals, two of which sold, two of which are in marketing, one we actually just got. Now, if that keeps pace, you can see how quickly we could scale that. Now, here's my prerogative is I don't necessarily need to scale it in just one market.

Maybe I scale it across multiple markets. Now, one market might be better than another, but I will tell you this, if you just put all your eggs in one basket and that market tends to turn, you're just not gonna be able to do the volume of deals that you would like. If you caught my last podcast, if you caught my last video also, by the way, if you're liking this, hit the like button. That is a favor to me. It helps YouTube gods show that you guys are interested in frankly what I

have to say if you're watching this on YouTube. So smash that like button. If you watched my last YouTube, for those of you listening to this, go to YouTube, find me, subscribe, watch my last video, which was yesterday. We have contracted nine deals in seven days. And by the way, seven of them are from cold calling, two of them are from text messaging.

So this whole sales and marketing really combined into my favorite platform right now now I still do pay-per-click advertising I still do direct mail as I just mentioned I still do these other strategies but for the sake of me being able to scale at a good price cold calling and text messaging are my two favorite now you've heard how my secret sauce is i pulled the list from prop stream i skip trace it with that skip and i start using either mojo cells or zen call now if you can there are companies that i use i'm happy to refer them to you so reach out to me on social media reach out to me on youtube reach out to me wherever and ask and i'm happy to provide value to you and offer up these services now these services cost

more money so if you're actually low on your marketing budget i would encourage you to do this yourself if you are an actual investor already making money i would encourage you to outsource this right because then you can go create more money by doing better at sales, right? So I would encourage you to outsource this. So if you're an investor that is doing deals, making money, contact me. Send me a message somewhere on social media and or there on YouTube.

I will put you together the two companies I'm using. Outro Music