Lead Generation, the Key To Success
For as long as I can remember in my real estate career, I’ve been inundated with the training necessary to find motivated leads who are willing to buy and sell property.
In fact, finding Motivated Sellers has seldom been a problem in my career. I suppose its either luck, good training, or a combination of both. I tend to think that we as people tend to make our own luck. As such, it just makes good sense to learn how to generate a Motivated Seller “at will” when you need it.
The Challenge Is Different
When trying to comb through ads, leads on cocktail napkins and referrals from friends, it is hard to find “the right person”. The person who needs to sell their home right now, and doesn’t mind taking a loss if they have to do it.
While my “competitors” like to point out the use of massive mailers, bandit signs, expensive Google adwords campaigns, and “splash pages” of their websites imploring those who need to sell to “enter their information for an all cash offer now”. Their logic is flawed.
The Customer Life Cycle
If you can imagine your poor customer… (we shall talk about Sellers, because at this point, that’s all you need to focus on in my opinion) Sitting on their coffee table making the most important decision of their financial lives…. Selling the home.
It’s not where they just “wake up one day” and decide to sell. It is a process. As such, it takes time. You could imagine it as a “timeline” of sorts.
It’s A Challenge
It’s a lot like trying to be the lifeguard at the beach. Some swimmers are strong, have tons of experience, and do not need the help of a trained professional to swim.
Others, are not so accomplished swimmers, or are unable to swim on their own easily. For those situations, a lifeguard is handy to have. In this case, you are a powerful Lifeguard sitting on your chair. You receive the benefit of perspective (Sitting in a higher chair, you can see the sharks), as well as experience. (Your training.)
But not everyone wants to admit that they may need a little help from time to time.
Our job is to find those “lesser able” swimmers and offer our assistance.
The Initial Contact
Okay, so let’s just have a bit of “be honest.” If you’ve read my previous book “Sales Skills for Real Estate Investors”, then you know automatically that business comes to you in three ways. Now, Future, and Maybe business.
Understanding that people, when making their choices about their property disposition have several options. They can list with a Realtor®, Sell to you, try “by Owner”, or let it go back to the bank.
In a sense, that is about the only real options most homeowners have. Of course, they are capable of other methods, but by and large, these are the most generally accepted methods of disposition.
So to maximize your effectiveness, you must begin to first “get it” that they are talking to you for a specific reason. What that reason is, is undetermined yet. But in order for your mindset to be right, before I teach you anything about financing, or contracts, or negotiations, you must first understand the importance of this initial contact.
Every perception that the Seller has about you comes from what you portray about yourself. If you portray yourself as a “fancy pants investor”, then you aren’t going to get very far. Why? Because they will expect a certain level of expertise associated with the level of “Investor.”
If on the other hand, you come in as a “Buyer”, (which is what you really are) then you can be as smart, or as dumb, as you need to be.
You Don’t Have to Have a Buyers List
One of the most difficult things for a new wholesaler to understand is that you do not need an extensive buyers list before you begin to get inventory.
Now I know that inside, you are screaming “But every other Teacher out there tells you that you gotta have a buyers list!”
My simple answer to that is, if you build it… they will come.
What a Great Deal Smells Like
You see, at the core of every single wholesale deal is one thing, and one thing only. A highly motivated Seller! No matter the reason, no matter the cost, there are just some people who need to sell, and need to sell NOW.
It goes without saying that “the more motivated they are, the better.” But there is a vast difference between a motivated seller saying they are motivated… and actually doing something about it.
So in my opinion, the main question you must know, beyond all others, is “What happens if it doesn’t sell?” Depending on their answer to this simple question, will determine how much time you are going to spend with the prospect. Don’t make the mistake however, of buying into their apparent lack of motivation.
It is the use of skillful questions that will help you determine if the person is a prospect. We will discuss PreQualification later, but for now, suffice it to say that the more motivated the seller, the easier the time you are going to have!
What Does This Have To Do With Lead Generation?
Again, understand that you must begin everything… with the end in mind.
If you are looking for a quicker check, then you are going to need to find only the most motivated Sellers possible. No sense in screwing around with someone who isn’t going to sell their home anytime soon.
You can only help a certain amount of homeowners in a day. If someone isn’t willing to play ball, then they are delaying you from that one family that does need you.
Powerful Free Lead Generation
In my mind, there is absolutely zero sense in sending out a single yellow letter, or one postcard for new business unless you have first either mastered, or begun the free methods. Why? Because they work!
What if I told you, that right now, there are literally hundreds, if not thousands of highly motivated, “ready to sign” Sellers all around you? It would certainly seem like your very own “Acres of Diamonds!”
With your brand new “Buyer Mindset” you now understand that all properties are targets for you.. simply divided by their motivation.
So what does a “Motivated Seller” do when they absolutely have to Sell their Home NOW?
They shout it from the ROOFTOPS. They don’t wait around for a letter to arrive. They don’t passively sit by waiting for things to happen. One could even say, the more motivated they get,the more they do.
The answer is clear. The person who is making the steps towards selling their home. Therefore, if you want a check now, you need to start approaching the people who say they want to sell. Does that make sense?
Take It One Step Further
Going off the assumption that the more motivated the Seller is, the more they do to Sell their home; wouldn’t it be a natural conclusion to assume that if they LIST it, then they have made a serious commitment to Selling?
If there is one thing I hate more than anything, is having a deal fall through because the Parties changed their mind.
Eliminate as many variables to the equation, and you will make more money. How to do this, is through Wholesaling MLS Houses.
Acres Of Diamonds
As in the story of the “Acres of Diamonds”, poor Al Hafed left his home and traveled around the world seeking the diamonds that would bring him riches. Much like many of you, he too left his family in the care of others while he searched foreign lands for the money that would feed his family.
Perhaps you too have felt the cold sting of defeat when you were unable to find that “Motivated Seller” that you so desperately want. I too have felt the “wanna have a deal so bad it’s killing me.” I too have been in the position where my wife questioned my sanity as I pursued my dreams. It is not easy. The cost you pay for success can be high.
Much like Al Hafed, you traveled to other seminars, listened to other gurus, and have left disappointed. Hopeless, and rejected in your dreams of success. Perhaps you have even thought about metaphorically “throw your sales life into the foaming waters between the Pillars of Hercules… never to rise again.”
Before you do, let me assure you. You are standing in “Acres of Diamonds.” There are motivated Sellers all around you. You just lack the “eyes to see them, and the ears to hear them.”
Not to get too metaphysical on you.. but what would it be like if you were blind? If you had never seen the sun rise, or the moon at night… What if you had never seen them? Does this mean that they do not exist? Of course not. You just were unable to see it!
Bring It Home Karl.. Your Losing Me…
You see, I firmly believe that you are missing more business than you know. Not because you aren’t getting “exposed to enough quality leads”… No. I believe that there are tons of highly motivated sellers in your area; and when they talk to you on the phone, or face to face, you don’t hear their motivation.
Not because you are incapable of understanding a sentence or are hard of hearing. What I mean to say is “No, doesn’t always mean NO.”
“No oftentimes means that they simply don’t KNOW enough!”
When you talk to the Sellers or Buyers using our Scripts, you oftentimes hear them physically tell you no. However, that isn’t always the whole story!
Lead Generation for the 21st Century
However, the methods we use to spread our message of “We Buy Houses” is now much different!
Through the use of Craigslist Ads, (Rent To Own Handyman Special ad available at ScriptsAndSkills!), Facebook, and Blogs, you can begin to establish 24/7 coverage for your lead generation business.
Now, no good teacher is going to leave you without some homework. From what you know so far, building your Center of Influence List, and your studies about the importance of calling them, I want you to download the homework sheet from the membership site.
Using your new “Buyer Mindset”, I want you to take action TODAY. Do NOT wait until you know more. If you are wholesaling homes, then you need to generate motivated Seller leads NOW in order for you to get paid in 30-60 days!
Remember, most of the time, when you get a question, or a problem that you don’t know the answer to; its not a new question! All you need are friends who can help you! Simply take action! Find a highly motivated seller by using all of the resources I have highlighted. There are tons of free ways to generate leads. What you need however, is a motivated SELLER.
So take your Homework Sheet, and contact your local For Sale By Owners, For Rent by Owners, and ask them if they have considered selling using the questions on our scripts.
Don’t worry too much about what types of homes to call at this point yet. We are trying to get your “killer instinct” out. You unfortunately have to spend a little “time in the trenches” in order to be successful. However, take heart. These conversations with your Centers of Influence, For Sale By Owners, and For Rent By Owners will help you detect motivation.
Here’s what to look for. Homes that YOU would buy! Ones that YOU personally would buy if you personally had the money to do it.
Shocking Disclosure of Why
You see, when you start approaching every single deal you do as though you personally were going to close on every single transaction… then you will look at your criteria much differently. Condo? Who cares. What’s their motivation? Single Family Residence? Sure.. Whats their motivation? 4Plex under a short sale? Why not! What’s their motivation!
In the end, the one and only thing that matters is Motivation. The more the better. Instead of worrying about bedrooms, baths, and what your end use buyer will do; concentrate instead on creating the deal.
If a person is motivated enough, (Buyer or Seller) then they will want to make a deal happen. I would go so far as to say that if you find a deal that you personally would do, you will negotiate harder and be more concerned about the “little details.”
In addition, if the Seller is motivated enough, then you are in a better position to help them than your competitors. So simply look for the ones you would do yourself (not totally remodeled homes obviously). When I did my first “Wholesale” deal, I didn’t even think about selling it, I was just trying to make a great deal! I figured I would find someone who would help me in the Inspection period.
By using a State Contract, I know that I have a ton of protections built in to help ensure I don’t “Get Stuck”.
So instead of worrying about the “What if’s”… if you want to get results like some of my customers.. then take action today!
After you read this, I want you to send that Homework sheet to me with a weeks’ results and I will personally respond with some ideas for you!
If you get stuck, or have a problem that you need help with, then I want you to call me. Think of it as your personal “Bat Phone” and you are Commissioner Gordon! I will help you get through your roadblock!
In Lead Generation for the 21st Century Part 2, we will cover some of the more specific ways you can attract even more buyers, as well as Sellers. For now however, let’s begin with working on your skills, as well as your basic “mental toughness!”
So until next time, keep working, keep trying, and keep your ears open to what they are, as well as aren’t saying… most importantly, know “what happens if it doesn’t sell?”
Have a Powerful Sales Day!