You’ve done your marketing. The phone is ringing. People are responding to your campaign. What is your next step? That’s the exact topic Justin covers on this Wednesday Wisdom call. He takes you through the process of what his team does to follow up on leads, step by step in every case. This is a tried and true method that yields the biggest results and has the best chance of getting you the deal. Justin will tell you the 5 questions the prospect should be asked when they call - why rapport is so important - what you should do when you meet the seller in person - and how to ensure that you get the sale the majority of the time.
When people respond to direct marketing they are always a bit leery. That’s because so much marketing in the past has been done the wrong way, focusing on the heavy sell and high pressure instead of truly helping the prospect. That’s why it’s so important that you have someone (we use a call service) answer that phone call personally every time a prospect calls. That communicates a level of professionalism that puts the caller at ease, making them feel that you are a reputable company - and that goes a long way toward establishing the trust needed to actually seal the deal. Find out the exact steps Justin’s team follows when it comes to lead flow, on this Wednesday Wisdom call.
What is meant when sales trainers talk about building rapport? It’s the skill of getting to know the prospect, finding things you have in common, and communicating that you understand and care about the things that matter to them. All of that is aimed at building trust - because very few people will go into a business transaction with a person they don’t trust. When they know you, trust you, and like you, the deal will be yours 90% of the time. On this call, Justin tells you some very practical ways you can build rapport and unpacks the mindset behind it that will increase your success at getting properties.
When you are meeting with a seller there are many times throughout the meeting that you could start talking about the specifics of how you would structure a deal with them. But you shouldn’t be that casual about it. You want that seller to be in an environment where they are calm, relaxed, and can carefully take their time understanding what you have to tell them. The kitchen table is the ideal place to do that. Not only does it make them feel more at home, it also puts the two of you on a casual footing together even though you’re talking about an important business deal. Justin’s advice on this coaching call is full of this kind of practical wisdom, so be sure you listen so that you can up your game and get more deals.
“Why Not Sellers” will come to you on a whim. They received a mailer or heard about you from a friend and decided to check you out. These sellers don’t have a lot of motivation. You have to be patient and stoke the flame of interest. They want you to sell them on the idea of selling. How can you make the most of this situation? How do you turn a window shopper into a seller? Justin gives some great insight into how this type of seller thinks.
The golden rule of sales is that you need to solve the issues your prospect has. You are helping people, not pressuring them to do something they don’t want. And if you’re going to truly solve their problems, that means you have to know what their problems are. That’s where questions come in. You need to learn the right questions to ask that will get your potential seller to open up and express the things that they are most concerned about in selling their property. Doing so enables you to know how to give a response that assures them that you will solve that problem. Justin tells you the exact questions to ask in order to make that happen, on this coaching call.
Outline of this great episode
Outline of this great episode
The Monday Mindset & Wednesday Wisdom calls are group coaching calls included in the REWW Academy. These live calls are hosted bi-weekly by Justin Colby and Pat Precourt and cover a specific topic each session - ending with live Q&A at the end of each call.
These calls are designed to empower students to be effective entrepreneurs, creating business that thrive and make money through real estate investing. Students are encouraged to attend the calls and bring any struggles or questions they have about business or real estate.
The REWW Academy program combines our complete suite of software applications with our personalized coaching and a community of like-minded entrepreneurs to provide you with the most comprehensive real estate investing program available.
If you would like to learn more about the REWW Academy, attending these calls live, or learning fast effective ways to get involved in real estate investing, go to https://reww.com/v/reww-academy/ and follow the link at the bottom to apply today.
Below is the full transcription of the How to Handle Your Motivated Seller Lead Flow Wednesday Wisdom call with Justin Colby.
What's up? For those of you live on the Facebook feed on the Smart Academy group, what is happening? I see you guys coming in, I see you guys are still piling in here on the live GoToWebinar. Some of you guys are picking and choosing where you're going to see me and listen to me and get trained.
Welcome, everybody. This is our Wednesday call as normal. I'm back in my office, I'm no longer traveling. It was a long, fun, enjoyable time. I was on the road for quite a while. We had two incredible Masterminds that myself and Sean and Kent all ran. Again, if you're interested in Masterminds, we encourage you to email support regarding the Masterminds. They are awesome.
For Facebook feed guys, it looks like our connection is weak. I don't know how long it'll work, but it seems to be working. Welcome for everybody here on the Facebook feed. Welcome everybody that is live here GoToWebinar.
I've been getting a lot of questions since our Mastermind about our processes regarding lead flow and how it gets handled and what to do and how to do it. I want to go into that, dive into that. Maybe for all you Facebook guys ... Let me see if this makes a little bit more sense. I think I got it. Hopefully everyone sees me, hears me, you guys get to see the mic, what's up. That's what I do the podcast in, that's what you guys hear me from. It's real professional.
Again, welcome everybody. I see you guys are still piling on. I will say that this has been the number one topic since our Masterminds ... Has been lead flow, and how we handle leads in our business. I'm going to jump into ... Starting from the point of, you guys sent your marketing out, okay? The phone is ringing. I'm going to skip by the what list and things of that nature. I'm already assuming all of that went out, you have your RingCentral or CallRail up, you have your Podio account up, I'm assuming all that's taken care of. Now what I want to talk to you about is when the phone rings, how does it get handled by us, and how does that translate to you. I obviously have been doing this for eight years now, possibly at a different position than you guys are. Some of you guys are rocking and rolling, some of you guys are just getting started. I'm going to make sure it's relevant to the solopreneurs who are just getting started, as well as the people who possibly have maybe some employees or some virtual assistants that they can leverage their time.
That being said, I'm going to jump into the call coming in. We actually have a service called Map Communications. They answer the phone live 24 hours a day. There are also other companies out there. One tends to be a little bit more well known, called PATLive. What's going on Facebook group? What their hold job is, 24 hours a day, they're located in Dallas, Texas, and they answer the phone live, saying, "Hello, thank you for calling Phoenix Wealth Builders." That is a key component of what we want to do, because we are in a very competitive market, like Phoenix. A lot of you guys might feel the same way about your market. It is happening across the board. Markets are becoming much more competitive. We need to separate ourselves as investors. What I encourage you guys to do is to answer the phone live. For those that are solopreneurs, do your very best to answer every single call live. If you can't manage that, some of you guys might be working, some of you might have other responsibilities, make sure that you have a voice mail set up so the second that you have a moment you can call them back. This is all about speed, here. It's about speed and building a rapport.
For those of you who are working and are solopreneurs and are unable to answer the phone live, make sure your voice mail is set up and you call them back immediately. For those that might have a little bit of a budget that they can play with, I encourage you to have a company like Map Communications, like PATLive, handle answering the call live for you and then handing it off to you. They hand it off to you by email, so it's very easy to handle. I encourage that because that extra step of answering that phone live really goes a long way. You can simply give that company a script, something simple.
I'll give you the five questions that Map Communications asks on our behalf. The first is, "What is your name? What is the address of the property? What is your phone number? What is your email? Why are you looking to sell? Why are you calling?" That is it. That is all I'm asking them to ask. I don't want any judgments on the value of the home or whether it's a deal or not a deal. I don't want them to handle any of it.
Then they email me the five answers. Name, address, phone number, email, and why they're looking to sell. Now I have that. Now, for those of you that are solopreneurs, you get to call them back as soon as possible. As soon as you can. On your lunch breaks, on your coffee breaks, whenever you have a moment. The key here is speed. That is going to be paramount. How we have it in our office, that company emails us, it goes to our lead manager Eliana. Eliana will call them immediately. Her job is immediate. She is sitting in the office right next to mine, and she calls them immediately and goes through a script. In fact, I told her I was going to be reviewing this, so I have her actual script. Look at all the writing and all that stuff. That's fun. I'm going to read the actual script that she goes through, word for word. I'm going to read exactly what she does.
This is what you should be saying, because regardless of whether you answer the phone live, regardless of whether it goes to voice mail and you're calling them back, or if you have an answering service such as Map Communications, you do not want to have any judgement on whether this is a deal until you go meet with the seller face to face. I understand for some of you, you are virtually wholesaling or you might be getting leads from absentee homeowners, and I completely understand that. You need to attack that in slightly different positioning. For the majority of you ... I'm talking to the majority that are doing deals in their area, that a homeowner lives in the area or possibly even lives in the house. This is how I want you to attack that.
The script goes like this, I'm going to read it: "Hi, my name is Justin from Phoenix Wealth Builders. I received your voice mail regarding the house on 123 Main Street. Did I catch you at a good time?" If not, ask to schedule a convenient time for the seller. If they say it's not a good time, say, "Okay, let me just ask you a couple quick questions." Then I'll fast forward all the way into ... I'll skip building rapport, I'll fast forward all the way into, "Hey listen, I'm very interested in buying your house. Obviously I want to see the home and meet you and shake your hand, and we can go from there. What's the best time to meet you at your home?" That's if they don't have much time. I'm not going to let them off the hook, I'm going to want to still say, "I want your home. I'm interested in your home. Let's find a time to go meet." That's the concept behind all of this, is you need to go meet with them.
"Did I catch you at a good time?" "Yes." "Great, how are you today?" Build rapport. "I have a few questions for you, let's start with are you the owner or decision maker?" Several of you, obviously if you've done this long enough realize sometimes you're talking to someone that doesn't even have the authority to sell the property. You want to qualify them. They say, "Yes." "Perfect. What is the square footage of the home? How many beds, baths ... General condition of the home? When is the AC last repaired? What is the age of the roof? When is the last time you've had any plumbing or electrical issues?" The basics about the home. You can get that from our seller script in the software. In the coaching, we have a seller script and it goes through the basics of the home and questions you want to ask.
She just basically wrote up her own word doc. This is not in the coaching. She took our seller script, and put it into words. She asks those questions. "Does it have a pool? How old is the pool ... When was it last replaced?" They answer all the questions, which is great. Then she says, "Okay, great. Why are you looking to sell?" This is where I want her to build rapport, show empathy. "How soon are you looking to sell your property? Do you own the home, or have a mortgage? If there is a mortgage, what is the balance of it?" What I want to qualify here is, is this upside down or not? That's all I'm trying to qualify. I'm not trying to find the motivation and try to judge whether this is something that is going to be a deal or not, I'm simply just qualifying is this going to be a short sale or not. If it's a short sale, we tend to not want to deal with those. We tend to want to at least try to buy it outright and fix and flip it.
On the wholesale world, we don't mess with short sales wholesaling. We will buy them and fix and flip them, but for those of you that are strictly doing wholesale, which is the majority of you, I tend to ... If it is going to be a short sale, I will refer them a realtor and move on.
Now they say, "Yes I own the home. There's a very small mortgage. I've owned it for 50 years, I paid down the balance." Now I'm going back to the script. "I appreciate you answering all my questions. Now let me tell you a little bit about us and what we do. We look for properties that fit a very specific criteria that we can renovate and resell for a profit, or if it makes sense, we purchase and hold as rentals. What you will benefit from selling to us, is we pay cash and buy properties in as-is condition. Therefore we will not ask you to spend any unnecessary money fixing your property. In addition, we close on your time frame, meaning you will have the guaranteed price and guaranteed closing date. You will also have savings of thousands of dollars by not paying any commissions, not paying any rehab costs and/or any closing costs. Most commissions are 6% or higher, and closing costs can be upwards of 3% or higher on top of the cost to repair your home. I'd like to give you a solid offer and check out your property. Is there any way we can set up a time to do that? That's it. Boom. Right there.
We didn't discuss what they thought their home was worth, we didn't discuss what I thought their home was worth. All Eliana did was that she asked the questions about the home, the square footage, does it have a pool or not, when was the last time the roof was replaced ... You name it. She was just finding out about the home. The other thing she did was let them know who we are and what we do. At that point we said, "We'd really love to give you an offer, when is the time that we can come and meet you and take a look at the home?" Boom. I want that to be done today. I want that to be done yesterday. Literally we have [inaudible 12:24] right now that she [inaudible 12:26] a call, or an appointment from a call, right now on to their calendar that they can go see. It's 12:18 right now, they could go see it at 12:30 or 1 o'clock. That's how quickly we want our business to move.
Again, those people who do not have a team, they don't have an office, this is where it changes slightly. You have to look at what are your revenue generating activities and what's going to be most beneficial for you. Again for those that look at me, I'm just simply looking at the Facebook group because they have to see my undercarriage. Thanks for sticking in there. Again, if your a solopreneur, what you're really looking to do is find that time where you can answer the phone live, set an appointment, go on the appointment, without missing too many calls. The idea here is go on every single appointment you can. Do not have any judgement in value of house or motivation based off the phone. Don't talk numbers to the best of your ability. Just go meet them. If at that point they say, "We just wanted to know how much you thought our home was worth." Fine. Give them the answer, and then it turns into a follow up situation which will be another call. For the time being, it turns into a follow up situation.
Now, once you are at the home, if you're a solopreneur you're personally at the home. You had to set a time for yourself, you probably had to set an appointment. For those that might have a team member or whatnot, you want to make it immediate. Now that's where your negotiation starts to go in. This is where you're building rapport. This is where you're walking the home, looking at the home, asking them questions about the home. This is where you want to find out what work they've done to the home. Where their grandchildren were raised, those stories to build rapport. When it gets time for that negotiation, I want you to sit down at the table. You must sit down at the table. The reason being, is ... I'm blanking on the percentage. It's a large percentage of deals that actually get done are when people are calm and sitting. Not walking around a home talking about emotional things. That is not when it gets done. It is when they're sitting in place calm and able to listen and review. I forgot the percentage, it's some large percentage.
Again, as I am coaching you guys, remember I am always coming from a perspective of marketing and sales. You are in sales. If you need good sales books or training on persuasion and negotiation there are many of them out there. Brian Tracy is a huge name. Zig Ziglar is a huge name. Grant Cardone is a huge name. There are many of those people that you can get books or training programs from. I have done many of them. A lot of my expertise comes from my training that I've done just like anything else. I encourage you to pick up those books, those training programs, watch them, because now as your sitting is when you need to be good at your negotiating skills. The tactics it's going to take to persuade, to negotiate, to communicate. With all that being said, sit them down and start discussing the four major components.
One is you. They need to like you. Two is price. Three is the process, and four is the paperwork. I talk about this over and over again in our trainings. If they like you ... Make sure they do, that's why you build rapport, that's why you spend time circling the house. If they like you, you have a much better chance. If you give them a good number, you have a much better chance. If they understand the entire process of selling their home, you will have a good chance. Then, on top of it all, if they understand the paperwork, you got the deal. You fulfill those four, you fulfill their issues that they might have, you will have the deal.
When you sit them down, there is one question I want you to ask. One question. It's so funny watching two cameras. There's one questions I want you to ask, and that is, "What is the most important part to you about selling your home?" Be quiet. Very often it's not just the money or the price. Often it can be other components. "Well, we inherited the home. I have two brothers and two sisters and we're always arguing." Maybe they need help moving. Maybe they need cash to get a rental property or a U-haul. There's other components in life that it's not always just the money. Does money come into play? Yes. But too often as real estate investors we only focus on the money and we forget all the other issues that might be leading up to these people making the decision and selling it to you.
That is the one question, again, "What is the most important part to you about selling your home?" Silence. Dead silence. Radio silence. Do not speak up, let them answer that. The number one rule in sales is to always agree. If they say, "My siblings and I are fighting over the home, we just need it sold. I'm getting a divorce, we just need it sold. I need help moving, I don't know where I'm going to live." Whatever their answers are, agree. Say, "I completely understand. I agree, that is an important part about selling the home." That way they feel empathy for what they're going through, and now you can help give them a solution ... Resolve what they're going through. That is the most important part of your negotiating skills and the most important part of sales in general. Solve all of their solutions and you will get the deal. Period. With that being said, this is where you do that. You solve their issues, you make sure that they like you. You make sure that they understand the paperwork. You make sure they understand the process and you make sure that the price is fair for both sides.
Ava, what's up? "Can you say that again? What is the question to ask them?" The question is, "What is the most important part to you about selling your home?" A lot of times it's not just the money. "What is the most important part to you about selling your home?" Rephrase it, right? "What is the most important part about selling your home, to you? What is your most important issue when selling your home?" However you say that, that is the one question you ask, and you are silent. At that point, you're on and going.
The remaining of all that is in your patience with describing the paperwork and what is going to happen, what is the process. You have to have patience, you have to review it. Obviously giving them the price that works for both sides. You gotta be likable, you have to be a chameleon. Once you can solve those four things and ultimately solve their entire issue, all of their issues, you're going to get the deal.
All right, I'm going to answer some questions. Eugene, what's going on? Andrew, what's up? Robert, what's up? Robert, listen. It's 73 degrees in Anaheim, it's 113 here. It's 113 degrees. It's hot. Whoa, Kelly, I don't have a tan. It's just who I am. It's the lighting, it makes me look good. There's no tan here. I didn't get a tan down in San Diego. Jeff, what's going on, big man? Great question to ask. "Some people just see another property as a burden rather it all being the money." Exactly, it's not. Rosa, what's up?
It's not always just the money, and that's the key component. Again, as I will start to really grind on you guys about honing in your negotiating skills, your sales skills, your communication skills ... It's just so important that you have to understand ... It's not always the money. If you were selling a product, which you are selling yourself, you are the product ... You need to find out if it is just the price. If it is that they just have never sold a home before and have no idea what is to happen. If the paperwork is confusing. You need to understand if they're going through something that you could help resolve. If you don't ask those questions ... It's called question based selling ... If you don't ask those questions, you're never ultimately going to give them the solutions to their issues, and ultimately someone like me is going to come behind you and get the deal, because I will do that. I will take our time to do that. Fair enough?
Mark, what's going on? You're very welcome, dude. Andrew, "Will you be chatting about follow up process to get that first phone contact?" Andrew, that is actually next week's call. I will go very fast through this. Andrew and I spent some good time in the Mastermind together, but I will say this. If you do not get back with them on the first day, for you solopreneurs that are out there and it's just you, they call in, they leave a voice mail and you call back. Call them and leave a voice mail every time. Call them twice on the first day. Call them once every other day after that, and leave a voice mail every single time. By your fifth day, I would encourage you if you have their email, I would encourage there to be another form of communication by the fifth day. I also will call every day and leave a voice mail. They called you, they left a message, they are interested. By the tenth day, if you have not talked to them, I send an offer. By the tenth day, send an offer. From there, obviously, it'll go. Andrew, that's the first ten days. You have to be relentless on that follow up.
"What are some of the negotiation books you mentioned?" Jeff, I have some somewhere. Here's one. It's "The Closers Survival Guide" by Grant Cardone. It's a great one. He actually makes it in a workbook format where he gives you the close and then you can actually make it pertain to ... You can write your own closeout throughout the book. He makes that very good. Brian Tracy has plenty of great books. "Sell or Be Sold" by Grant Cardone is one I just read twice recently. That is a great book. What else? "Spin Selling" is a great book. "The Little Red Book of Selling" is a great book. There are so many out there. Google "top ten sales books," buy them all. Again, some of the notable names in the industry that have been around a long time that are trustworthy, Grant Cardone, Brian Tracy is another one ... Zig Ziglar, obviously. Most people are aware of who Zig Ziglar is. Those are some three names that I would say most all books that you get from those three guys, you're going to really learn a lot from.
All right. Andrew. All right guys, that is what we got for today. I am going to be checking out, and see you on next week's training call. Glad to have you. Thanks Jeff and everyone who's here Facebook live in the Smart Academy group. That being said, I'm checking out. Peace.
Justin Colby is a real estate investor, public speaker, podcast host, and coach. He is the Co-Founder or Phoenix Wealth Builders, a real estate solutions company, specializing in providing opportunities in a variety of areas within the Phoenix real estate market. Justin started the The Science of Flipping podcast in 2014 with the intent to give back by sharing the lessons he had learned for creating a business and life you live, after flipping over 500 houses within his first 8 years of business. Through his co-leading of the The Boardroom Masterminds, business coaching at The Science of Flipping, being featured on many top ranking podcasts, and speaking at REIA meetings around the country, REWW's Find and Flip Summit, Collective Genius and countless other real estate investor conferences he has been able to reach and impact the lives of thousands of real estate investors.