In yesterdays blog I reviewed the key steps to prospecting unlisted owners in default – so you may see success. (If you missed it, it’s a must read – “Striking a Deal with an Unlisted Pre-Foreclosure Owner“) I also recently shared in my “4 Key Differences in Today’s PreForeclosure Home Equity Market” how important it is for current investors to NOT rely 100% on your calling efforts. Going to the door is how you are going to get your best results.
Many clients ask me wonder which they should do first – call the owner or go to the door?
In my opinion, they are equally valuable. Calling is definitely more convenient. You can squeeze in some calls at lunch at work without much of a sacrifice. But oftentimes calling is not enough and you will end up going to their door to reach them. That is okay. We will do both!
Start with the Phone…
It is true, published land lines are being replaced by unlisted cell phones. And if you do get find a listed phone number, quite often the owners have voicemail and do not pickup. To see success, you will need to add calling neighbors and relatives (who have listed phone numbers) to your hunt for getting your homeowner on the phone. Therefore, although phone calling maybe easier for you, in practical terms, you will find that you only reach about 1 or 2 out of 10 people at best, by phone.
Next it’s time to Door Knock…
If you are unsuccessful reaching them by phone, then it’s time to door knock. You will need to set aside time to get in your car and go into the neighborhood. It takes more time to door knock a few houses, so you should group as many as you can together and get out there hitting them all at once. I try either before work in the morning, after work, or the weekends work best. That is when you are most likely to reach the homeowner at those times too, so it’s worth the effort.
I love door knocking – I get to SEE what’s happening to their neighborhood, their house, and pickup nuggets of useful information that will help you build trust and rapport with that owner – that I don’t get by phone.
So rather than ask “which is better” phone calling or door knocking? – let’s just say they both have their advantages and use them each to their fullest!
What to Expect….
One thing we haven’t discussed is how responsive people are over the phone vs at the door. This may surprise you, but people are a lot nicer at the door than they are over the phone. It’s tough to be confrontational in person – it’s just human nature. So you may have someone hang up on you over the phone, which is completely different at the door. Always keep an open mind, if you can’t get them over the phone, then yes, go see them!
To summarize, you must try by phone first AND then quickly move on to door knocking. That is the perfect combination. So get out there and go talk to some owners!
Some quick tips about door knocking:
- Visit 8-9am, 5-7pm and weekends- when you are most likely to catch them at home.
- Group your homes by area and hit one area once a week at a minimum. Have 8-10 leads with you and expect 25% of them to answer the door (2-3). If you get more, congrats!
- Dress casual, but clean. It helps if you don’t over-dress like a slick salesman.
- Try to avoid the words: problem/foreclosure/auction/repo
- Ask many open ended questions to better understand their situation and history and how you can best help them.
- Your goal is the same as when you are calling owners- you want to build trust and confidence with them – and you want to get to the truth of their situation. The sooner you get to the truth, the close you will get to the deal.
- You do NOT want to recite all “owners’ options” you want to recommend one that works best for their situation and then follow up on that recommendation.
- Based on your outcome, setup a time to meet with them again, and pickup the conversation where you left it. Follow-up is critical in your investing efforts. Never wait for them “to call you” if they need you. They all need you; they just may not know it yet!
- If they aren’t home, leave a hand-written note on the door with your name and phone number, and you stopped by to see them, to please call you. DO NOT include any message or business car. You want to keep it vague so they call you out of curiosity!
Remember, you aren’t going to land deals and sign contracts on someone’s front doorsteps; this is just the ground work to build a relationship that may lead to a deal down the road.
What’s the worse thing that could happen?
It’s not what you expect. You will rarely find angry people waiting to yell at you. More likely you will find people hiding in their home and ignoring you. So you will have to be tenancious and keep trying! There’s nothing to be afraid of here! Folks are kinder than you think!
Don’t forget, those who are successful in this business do not give up. They followup with all leads, until the owner resolves the problem (and it’s been verified on public records as sold or cancelled default). Keep up the hard work and don’t take no for an answer. This is how successful clients land great deals. They are not intimidated to reach out to the homeowner and make a connection. They just DO IT!
Are you ready to knock on the door of an owner in default?
I hope so! But if you are still a bit gun-shy, that is okay. I can help you. Successfully prospecting and negotiating with owners in default, who have not listed their home for sale, is absolutely my expertise. I’ve been doing and teaching this critical skill for close to 30 years now. I’ll be sharing my insight, so you can get to work connecting with owners and making deals – right now in this hot market.
Join me to learn how to do this the right way, in my Strategy Session “Find and Close Motivated Sellers” at 6pm tomorrow. Hope to see you there.