Most people don’t enjoy making cold calls; however, cold calling is a vital part of the strategy to grow your real estate investing business. Especially considering restrictions caused by the pandemic, reaching out to prospects by phone provides an entry point in the search for sellers and buyers.
At REIW, we help women real estate investors navigate the different real estate investment strategies and marketing tools. While cold calling may sound ‘old school’, it’s still a very relevant way for female investors to grow your business. When applied in combination with marketing automation tools, you can find more paths to wealth in real estate investing.
What is Cold Calling in Real Estate Investing?
A cold call is an unsolicited call intended to introduce yourself and your business to new buyers or sellers. Cold calling to find properties for your real estate investing business can give you a leg up on the competitive because you make a personal connection with those potential sellers. Likewise, cold calling to find buyers can develop your buyer’s list while also opening the door to more qualified leads.
The Importance of Cold Calling in Real Estate Investing
Let’s face it, cold calls often end in rejection making it feel like they’re not working. But, we know cold calls work! We’ve seen success in our real estate investment business and with the investors in the REIW community.
Plus, cold calls deliver a high return on investment (ROI). When compared to other marketing tools, the positive ROI make cold calls a smart and necessary part of building a real estate investing business. The low cost of cold calling includes: phone fees, your time, dialer expenses and outsourced labor costs. Most other marketing tools cost much more to execute.
When is Cold Calling Most Effective?
Like with all marketing efforts, cold calling should be strategic for the most effective results. You need a specific approach to who and why you are calling. Cold calling isn’t going to work if you simply pull out the phone book and start dialing. That approach is ridiculous. Instead, use a targeted method when cold calling.
To locate sellers, start by creating a calling list of identified motivated sellers. You do this by researching properties that are in foreclosure, probate or tax delinquent status. You can find this information online in the county records in most areas. If not, the local courthouse keeps records with this information. Also target homeowners in neighborhoods that are on the brink of gentrification where the homeowner may want to sell instead of dealing with property tax increases.
The goal is to find properties to purchase as an investment. Motivated property owners will usually sell outside of the traditional real estate process and often for a below market value price. Even if you only connect with one seller who moves forward with a deal, you will more than pay for your cold calling efforts.
Don’t forget to include commercial real estate owners in your cold call list. Commercial real estate owners often want to purchase properties even if they don’t want to sell any of their currently owned properties. When you connect with an interested commercial real estate investor, you add a lead to your buyer’s and seller’s list. Plus, people on the commercial side understand cold calling and are more likely to welcome your call.
How to Make Cold Calls Work
There are several ways to make cold calls work for your real estate investing business. You don’t have to dial an endless list of contacts to be effective. In fact, using technology, like dialers, makes cold calling much more efficient. Today, dialers are more affordable and accessible, even for smaller sized real estate investing businesses.
A dialer works by dialing many numbers at one time. You can program the dialer to leave a prerecorded message if a call goes to voicemail. You can also program the dialer to send the call to a live person if a live person answers the call. You don’t waste time leaving tons of messages on voicemails and don’t miss out on the opportunity to connect with a live person.
Another option is to hire a company or individual to call prospects on your behalf. Then, you don’t have to spend your time on the phone but still receive the benefit of cold calling. However, this option costs more. The benefits may outweigh the costs if you have a well-developed cold calling list.
You can also make cold calls yourself. If you have a tight budget or are just starting in real estate investing, working through your cold calling list yourself may be your best option. One way to maximize your time is to call after sending a different type of first communication and following up with only qualified leads.
Use a Script to Stay on Track
Create a script for the calls to keep you organized and focused. Plus, you need a script if you use a dialer or outsourced callers. You want a consistent message to represent your business and brand whether leaving a message or discussing real estate investing with a live person.
Keep the script simple and straightforward. Many people end the call as soon as they realize it’s a solicitation. However, a targeted list and strong script is more likely to keep people on the line to hear what you have to say.
Learn More Effective Real Estate Investing Business Strategies
At REIW, we’re here to help you understand the details of how to build a real estate investing business. Cold calls are one of many effective ways to grow your business. Join the REIW community today. We offer online resources, on-site events, mentoring and training. Contact us to for a consultation to discuss how we can help you learn and grow!
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