Real estate investors often complain that their wealth-building plans are seriously hampered because too few properties are available in the areas where they invest. You can’t buy real estate and build much wealth if nobody will sell you a property, right? Obviously, it takes both buyers and sellers to complete transactions! So the big question is, where do you find real estate sellers when it seems like nothing is for sale? Cold calling is a technique where you contact property owners who own the kind of properties you’d like to acquire and try to persuade them to sell.
Agents will sit at the telephone for hours calling long list of owners. Obviously, that’s got to be very boring! The way Fred, my agent, and I do it is different. To begin with, we write letters lo property owners rather than make telephone calls! We also do some research before we make any contact with property owners. This allows us to customize our cold calls letters to fit the property and address any special circumstances pertaining to the owner. When I’m out driving around, I always keep an eye out for interesting properties I would like to own, assuming I could buy them for a reasonable price and terms.
Not every rental property in my town is a candidate for my “cold call” letters. To start with, my specialty is the fixer real estate! I make money by acquiring properties I can “fix up”. My strategy is to quickly increase the value. Average looking properties without any visible signs of being rundown or neglect does not fit my profit plan, therefore, those properties are automatically eliminated from your cold call letter writing list. By selectively writing to owners of rundown properties, I occasionally find one who wishes to sell, often investors will tell me, this seems like a lot of work! You mustn’t forget, if this was easy, everyone would be doing it and we’d all be rich!