Collecting Keys - Real Estate Investing Podcast EP 33 - Is Cold Calling still an effective way of finding off market deals?
What did you think of todays show??
There are many ways to gain find sellers — and cold calling is just one of them. But if you don’t know how to build trust and communicate with people, your lead is likely to go cold.
In this episode of Collecting Keys Podcast, we discuss our opinions on cold calling and whether it’s an effective strategy to get leads. We also share our tips for cold calling so you can leverage it and increase your conversion rate.
Here are some power takeaways from today’s conversation:
- Don’t be afraid to deal with tenants
- Proper communication is key in the real estate industry
- Build rapport with clients and potential leads
- Make sure you’re acquiring leads from a trusted source
- Get skilled individuals to do the cold calling
Episode Highlights:
[00:55] Investment and Housing Shortage
With the current labor issue, Mike and Dan end up closing properties since it’s easier and more sensible than wholesaling them. If you want to invest in real estate during a housing shortage, you’ll need to deal with tenants — and sometimes, those are the best deals.
Evicting someone can be pricey and complicated. Look at the numbers, balance it out with the cash for keys deal, and determine the worst-case scenario.
[04:50] Communicate with Owners
Buyers should be the ones paying for their due diligence. Always communicate with the owners — they’re likely willing to figure things out with you. Building relationships is crucial in the real estate industry.
[08:48] Dealing with Difficult Tenants
While walking through one property, Mike and Dan had to deal with particularly difficult tenants. They even suspected something illegal going on.
Listen to the full episode to hear how Mike and Dan dealt with these nightmare tenants and other projects they’ll be working on!
[12:41] The HOA Insurance Dilemma
Mike and Dan’s condo flip got blocked by the HOA insurance. The only other insurance available was at a fixed cost and wouldn’t cover the actual cost. They took this as a sign that real estate is quickly growing.
[19:52] Cold Calling
Cold calling should either be targeted or there must be a highly skilled person in-house to monitor progress. Be skeptical of anyone providing leads of unknown origin.. Don’t go for cheap data. Avoid hiring low-quality people.
Tune in to the full episode for Mike and Dan’s process that you can follow for cold calls!
Notable quotes from the Episode:
[02:42] “If you're in a housing shortage situation and you want to do deals, you’re going to have to eventually deal with tenants. And sometimes, those are the best deals.”
[08:10] “Your network is your net worth.”
[35:34] “If you just go to push the easy button, you might get results, but you’re going to be spending a lot more money getting those results, and it’s not going to be as in your control.”
Resources Mentioned: