Cold-Calling Advice, Improve Your Systems, Turnover Rate

You’re receiving this newsletter because you’re a subscriber to Leadzolo’s mailing list. If you want to unsubscribe from the weekly tips and insights, click here.

Welcome To The Business Of Wholesaling Newsletter!

Every week, we’ll be sending you strategies, tactics, and tools used by successful wholesalers and we’ll cover any important market insights and news in the industry.

Here’s what we got for you today:

• Cold-Calling Advice From A Realtor In “Old Money” Zip Codes

• Improve Your Systems, Improve Your Deals

• What Is Turnover Rate? And Why Should You Care?

Sales Objection Of The Day

Last week’s sales objection:

“What do you say when a seller asks if you are a wholesaler?”

Best answer: I tell them exactly who I am and what my intentions are. I tell them I work with a group of local buyers who would be interested in purchasing their property. I go over what their property is worth as it sits, what it’ll be worth once it’s been redone, and what I’m willing to offer for the whole deal to make sense to my buyer. I don’t hide what I’m doing since sellers and buyers absolutely care about honesty and transparency.

Today’s Sales Objection:

“I’ll talk to you when you bring me a buyer.”

Reply with how you would address this objection and we’ll post the best answer next week!

Cold-Calling Advice From A Realtor In “Old Money” Zip Codes

I have a buddy who’s an active realtor in one of the richest clusters of zip codes in the Tri-State area. 

He does a handful of transactions each year. His sales cycles are torturously long.

But they’re enough to support him while he focuses on raising his two toddlers with his wife. 

He owed me a favor. So I figured I’d twist his arm to give me some cold-calling advice to share with the people. 

Last week, we talked about how important it is to understand your seller’s mindset. You can check out the archived newsletter issue here.

To take a step above, it’s also good to understand the demographic of the people you’re working with and how they do business. 

For example, the reason why my buddy’s sales cycles are so long is because “old money” folks need a ton of rapport building. He puts a lot of focus on building trust and being a source of value for his clients. 

So we’ll preface this by saying that this advice may not directly translate into the zip codes you’re targeting. But it’s worth testing out.

The Opening Line

❌ “Hello, is this [seller’s name]?

✅ “Hello [seller’s name].

There’s a lot of psychology involved in this tiny nuance. 

First off, people generally don’t like taking random calls from strangers. And that’s the frame you’re creating with the first line.

When you say the seller’s name outright without asking, this creates a frame of familiarity.

Even though you’ve never spoken a word to each other before, in the prospect’s mind - the second line assumes you guys know each other.

It causes the barrier to lower a little even if they realize they don’t know you. And it’s all because of the second line…

Ask For Permission

I’m not a gambling man, but if I were, I’d bet a large sum that the prospect is gonna ask who you are after the greeting.

So this is where you ask for permission to continue the conversation.

It’s broken down into 3 parts:

1. Introduce yourself briefly

Pretty straightforward here. It’s okay to be direct. Tell them your name and what you do.

2. Summarize the situation

This is more of the tactical ninja stuff. You kind of summarize the randomness of the call to alleviate the unknown tension.

“I know this is random and you’re probably not expecting a call out of the blue…”

3. Ask 

Now you ask for permission.

“Would it be okay if I took 30 seconds to tell you why I’m calling?”

Look at it from the seller’s perspective.

They don't know who you are. Now they’re talking to you and they have no idea how long you’ll take.

Now you’re giving them a timeframe (30 seconds). This should alleviate the uncomfortable feelings of uncertainty and pique their curiosity. 

From there, you’re free to work your sales magic. 

This works because of the consistency/commitment bias we talked about a bit last week. 

Sometimes we just need to get sellers talking and generate momentum for the conversation. 

Improve Your Systems, Improve Your Deals

You know what time of year it is.

It’s the time of year when folks write down all their aspirations and goals for the upcoming year. Make loose plans on how to achieve said goals, and when February comes - most people are back to “old me”. 

Most people are focused on the end goal. But the real magic is forming the correct habits.

If you don’t have the habit of working out consistently and cutting down on junk food…

Well, the weight isn’t gonna come off as easy, right?

If you don’t have the habit of making your calls every day, you shouldn’t expect sellers to magically come to you. (Unless you’re using a service like Leadzolo, but it still isn’t an excuse to not make your calls)

Habits aren’t always easy to maintain. Especially when they’re good for us. 

It’s easier to remember to fire up the pot of coffee than to walk out the door to the gym.

Most wholesalers have a lead problem. So how is that possible if there really aren't any secrets to generating leads?

You can make calls, send SMS blasts, drive around zip codes, send postcards, etc. 

They all work.

If it’s not a strategy problem. What is the real problem?

No sense in blaming market conditions. That’s completely out of your control. 

So how about focusing on what you can control? 

Like your actions. The little things you’re doing every day to move your business forward. 

And what’s the bridge that connects you to executing those little things consistently, all day everyday?

Your systems. 

We’re not going to dive deep into specific systems today. Because they’re really not difficult to create. 

There’s no one-size-fits-all system. Everyone has a personal preference for what works for them.

In James Clear’s bestselling book, Atomic Habits, Clear talks about the importance of systems. He brings up 3 concepts that you can apply to your wholesaling business.

1. Your outcomes are a lagging measure of your habits

Everyone has gone through it. Spending hours and hours on different ways to find deals with nothing to show for it.

We all know this is a numbers game. Most people can’t get through the “void”, where there’s zero momentum.

Even the top guys in the industry have plenty of days with all effort and nothing to show.

The difference is that they still show up the next day.

In Clear’s words, “You get what you repeat.” 

2. Goals are good for setting direction, but systems are best for making progress

When you speak to wholesalers who are at six or seven figures a month, you’ll notice one thing.

How specific and clear they are on their KPIs.

Yes, they may have a goal on how many deals they’re aiming for per month or end of the year.

But they know ALL the numbers that lead to that outcome.

How many dials per day.
How many conversations are generated from those dials.
How many offers they need to make per day. 

From that, they can figure out how many deals result from those efforts. 

These guys know these numbers to a tee.

Here’s an example from the Business of Wholesaling podcast with Drew Carrell, CEO of Leadzolo.

Dylan Wade was the guest on this episode and here’s a look into his KPIs.

On the calling side: 800 dials a day from VAs

From that, Dylan expects 30 quality conversations per day.

Ideally, this results in 30 offers per day.

On a level below that, sales reps are making 120 dials per day to warm leads.

This leads to 40 conversations per day and 25-30 offers per day.

And finally out of the system comes 10-15 contracts per month.

The results of your system will depend on a lot of factors like the VA’s skills, sales rep skills, and ability to generate leads to dial. 

But once you have the well-oiled machine churning, the results will be consistent. 

And when you know your numbers, you know exactly where to improve inside the system.

3. You do not rise to the level of your goals. You fall to the level of your systems.

Like we said earlier, there’s no secret to generating leads. They all work. 

For newer wholesalers, it can be quite overwhelming. Which do you start with first? How much of it do you do?

This causes them to make loose plans like people’s New Year’s resolutions.

On this day, I’ll try cold-calling. Maybe this day, I’ll drive around different neighborhoods. Put up a few bandit signs. And maybe send some SMS blasts on this other day.

It’s like you’re building Frankenstein from a whole bunch of different parts.

So if you’re having trouble finding consistent deals, it’s probably because you don’t have the systems in place to execute consistent actions.

Make this year about mastering the fundamentals instead of chasing the shiniest new strategies.

What Is Turnover Rate? And Why Should You Care?

One of the biggest mistakes you can make as a wholesaler or real estate investor is ignoring turnover rate.

Understanding the turnover rate in the particular area or neighborhood you are targeting is essential for not only making informed decisions, but also the key to maximizing your returns.

So what is it?

Turnover rate in the context of real estate sales is defined as the frequency at which properties change ownership within a particular geographic area.

The turnover rate is typically expressed as a percentage and is calculated by dividing the number of homes sold within a 12 month period by the number of homes that exist in the area.

(number of homes sold / total number of homes) x 100=TURNOVER RATE

How do you find out how many homes are in the area?

1. Tax records

2. US Census data

3. Zip-codes.com

How do you find out how many homes are sold in an area? 

1. Tax records

2. Real estate websites - Zillow, Trulia or Realtor.com

3. ListSource

Per industry standards, a good turnover rate is 5% or more. This indicates a dynamic market where homes are being bought and sold more frequently.

A turnover rate of less than 5% typically indicates a stable market where homeowners tend to hold on to their properties for longer periods of time and buyers can be harder to come by.

Here are some things to consider when calculating the turnover rate:

1. Market dynamics and demand

A vibrant market with lots of buying and selling signals profitable opportunities for a savvy investor. By carefully analyzing the dynamics of an area, you can strategically pinpoint and target areas with growing demand.

2. Property values and price trends

Higher property values and increasing prices often correlate with a higher turnover rate and can be indicative of a hot market.

3. Projected # of homes sold

Turnover rate serves as a predictive indicator for the number of homes that will be sold within a 12 month period in a particular area. By understanding the number of deals that you can source in a particular area you can optimize your strategy to target areas that have the most potential.

4. Cost of lead generation & marketing

Areas with high turnover rates means higher competition among wholesalers and investors.

As properties change hands more frequently, the cost for leads and marketing also increases.

Each one of these topics is essential to determining whether the particular area or neighborhood aligns with your overall business strategy.

And it’ll help you be smarter with your marketing dollars and resources.

Looking For Motivated Seller Leads?

We partnered with Leadzolo to give you access to some of the highest converting off-market seller leads nationwide.

Imagine cutting down your time driving for dollars, sending direct mail, scraping county & government lists, skip-tracing, cold-calling, door-knocking, sending carrier pigeons, etc.

Instead, have motivated seller leads delivered straight to your account, ready to dial.

There are multiple wholesaling content creators who dial Leadzolo leads live! One creator even closed a six-figure deal live from stage at his event!

So if you’re interested in tapping into this lead source to grow your wholesaling business, click the button below to book a call with the Leadzolo team.

Thanks for reading this week’s issue of the Business of Wholesaling. 

We’ll be back next week with more marketing & sales strategies, market insights, and other advice you can use to grow your wholesaling business. 

Talk to you next week.

Team Business of Wholesaling