“Big ideas happen when people build on each other’s ideas.”
~ DAVID M. KELLEY, founder and CEO, IDEO
Real Estate Investing is a lonely business. Yes, we’re with people each and every day, if we’re doing it right. Yes, we’re on the phone with buyers/sellers and potential lenders every minute of every hour. But, when it comes to people who think like us, and understand what we go through – it’s lonely out there! What is a real estate investor to do? Read more
It doesn’t matter if you’re a seasoned veteran real estate investor or just getting started in the world of investing rejection is a part of life. If you’re maximizing your time and focusing on the key business elements (marketing, buyers, sellers and private lenders) then you’re going to face rejection. Real estate investing is a sales business and in any sales business, it’s a numbers game.
Here are the top 7 Secrets You Can Use to Help You Overcome Rejection. . .
- Don’t take it personally. First and foremost remember that it isn’t personal. Think about when you say no to something. It’s rarely about the individual that’s presenting it. It’s usually bigger than that. Don’t let a simple “no” ruin your day. When you hear “no” think “I’m one step closer to YES!”
- NEXT! That’s right – it’s a numbers game. Just keep plugging along and think “Next.” When you’re talking to sellers you aren’t going to get an appointment with every one. In fact, we know that through direct marketing, on average, for every 30 calls you get you will get 10 qualified leads. Out of those 10 leads you will get 1 deal. That means that you’re going to talk to 29 people that you aren’t going to do a deal with. You could dwell on the 29 non deals are you could focus on the fact that you’re 1/29 of the way to another PAYCHECK!
- Know Your Facts. Oftentimes rejection isn’t rejection at all. It’s a request for more information. It’s your prospect saying, “I don’t have enough information to make a decision right now, I need to know more.” If you’re talking to a detail oriented person they are going to want to know facts, figures, statistics. The whole who, what, why, where and how of it. If you don’t give them enough DATA they won’t make a decision.
- Ask Questions. Many times “rejection” comes because we haven’t filled the need. If you’re too focused on saying what you want to say instead of fulfilling the needs of your prospect then you’re missing the boat. Ask questions of your prospect to determine what their needs are, then let them know how you can fill those needs and what benefits they will receive. Remember, it’s not about what you want to say, it’s about fulfilling their needs.
- Keep Positive. It’s easy to feel something slipping away and have your attitude slide downhill. Keep it in check. Keep upbeat during your meeting and your enthusiasm may become catchy. Handling things in a professional and postive manner can keep you on the forefront of your prospects mind if their situation changes. It’s not uncommon for investors to get 30-40% of their deals from follow up. Leaving things on a positive note can help those numbers to increase.
- Build Rapport. Find things that you have in common (hobbies, kids, geography). Talk about those things and establish a rapport with this person. It’s much harder for people to reject you if they really like you and feel connected to you. Having rapport won’t make someone do business with you that doesn’t have a need for your services, but if it comes down to you and another option, they’ll choose the person they know, like and trust.
- Analyze and Improve. Everyone can improve their presentation skills. When you leave a meeting take your driving time to think through what you could have done differently. Did you establish rapport? What key “needs” did the prospect have and did you answer how you could meet those? Learn from each deal and make mental notes for next time.
Keeping the above in mind and knowing you’re not going to get every deal with help you get through those tough days. The great thing is that there are plenty of motivated sellers out there just waiting to hear what you have to say. Go out and offer it to them – just remember, fill THEIR need and show them the benefits of working with you! And when all else fails, just yell “NEXT!”
This week on AskMike Mary from Colorado wrote in and asked what is the best, most economic way to market houses for sale on a tight budget? Mike spends a few minutes answering this describing how you can do this at no charge (requires more of your time) or you can outsource overseas or to a virtual assistant for pennies on the dollar. There are many resources out there available to you to help you achieve this task.
Did you miss last weeks’ video on “Is Wholesaling Properties a Valid Strategy In Today’s Market?” Click that text to view the video.
If you have any questions about real estate investing, deals you are working on, etc. and would like to have them answered, just click the AskMike link and send them in. Mike will address them in an upcoming video. Thanks and happy investing.
UPDATE: Many of the viewers of this video have asked for a copy of the websites that we post to. Click the following text for The Top Real Estate Sites to post your properties on.
I received an email communication from one of my Realtors recently that made me stop and take action. Isn’t that what we want our marketing to do . . . make people stop and take action. If you’re using the same old, same old marketing that everyone else is using then what makes you think YOUR marketing will make people take action. Are you giving them an action statement? That’s a big one. Many people get frustrated that their target market aren’t taking action on the marketing, but are you giving them a call to action. Something like, Call Today, or Go Visit This House Now, or Complete and Fax Your Application Now.
This e-card that she sent wasn’t anything special, but it’s cute, it’s timely, it stands out and it has an action statement. Check it out:
This week on AskMike, Mike Moulton takes you on a ride in his MDU (Mobile Deal Unit) on the streets to a real estate deal that he is working on that requires a short sale. Mike discusses the deal overview on the way to the property and then debriefs afterward. This is an interesting deal because the loan is in a deceased borrowers name. Watch the video below for the details and see the numbers of the transaction below. Mike will introduce new videos as the deal unfolds. A special thanks to Tim from California for writing in and asking us to walk through a deal.
Here are the high level numbers for the deal (I update to more precise digits in a later video as we work the deal):
House value in market condition = $185K
Current mortgage balance (1 loan) = $176K plus a few back payments, interest, etc.
Estimated Repairs (carpet, paint, appliances, blinds) = $6K
Our offer to the lender = $130, 562 (we always offer a “calculated” number, not rounded off). Generally we take about 85% of what we think the BPO (broker price opinion) or appraisal would be, then 85% of that number (approximately).
If you missed last weeks video on “Can a Foreclosure Be Reversed Back to A Short Sale” then click the linked text.
Also, if you have a question you’d like answered, please visit our contact us page and submit it to The Sharp Investor.
Take Care and Happy Investing!