Why Cold Calling is Essential to Your REI Business

As you start cold calling, you may feel immediate intimidation. You may worry that you are bothering people. Or maybe you are anticipating rejection. You may worry that you don’t have enough experience or be able to answer questions. If you are new to cold calling, you will most likely fumble through your words, face rejection, and probably receive nasty messages- but don’t let these things stop you!

Why is cold calling essential to your real estate investing business? It is the most direct way to build personal relationships as you seek out buyers or sellers.

Even if you are hesitant, you can be successful in cold calling as long as you strategize. Preparing a script is extremely helpful to keep you on track and give you key speaking points. Give yourself grace as a beginner– you won’t know everything you need to cover yet. Be flexible and change the script as you learn. Gain confidence with practice by role-playing with a friend or family member. The more you practice, the more prepared you will be.

Scripts also help you prepare for objections that will come up. Prepare for a buyer or seller to say, “I need to speak with an attorney,” or “I need to speak with my business partner/spouse.” If the buyer/seller asks to return the call at a later time, set an appointment within the same day. Don’t wait 24 hours! The more time the buyer/seller has to think, the more likely that person will talk themselves out of the deal. When having a conversation with buyers/sellers, make sure that it is not a one-sided conversation. Allow the seller to speak at least 80% of the time. Listening to the buyer/seller is a huge part of creating a successful connection, as you allow them to share their pain points.

When you do speak, share why working with you will be different. Be authentic and have a friendly tone. Remember that first impressions matter and that your end goal is to establish a connection with this person. Strive to offer help to them. Whether you realize it or not, you may have the opportunity to “be a hero” and offer financial assistance at a time when they need it most. It’s also important to be authoritative and direct. Ask them almost immediately if they are interested in selling– you don’t want to waste their time or yours.

If you don’t get the response that you were hoping for, remember that the connection may lead to an opportunity in the future. Maintain a relationship with them by following up. You may need to contact them repeatedly before they agree to a deal. But if you are consistent, you will build a rapport with these sellers and may negotiate a deal with them.

Even though it can be difficult to do when starting to cold call, remove all emotions from the process, and don’t feel that you are a nuisance when making a call. If you don’t talk to sellers, you won’t make money! Expect to experience rejection- don’t take it personally or allow it to stop you from reaching your goals.

If you’re intimidated by cold calling, don’t stress! Remember that it is the most direct way to build personal relationships as you seek out buyers or sellers. With the right strategy and preparation, you can succeed at cold calling.

#coldcalling #rei