4 Tips When DOOR KNOCKING LEADS | REAL ESTATE INVESTING

In today's video, I have some important tips to share with you when door knocking for real estate leads. Coming up next. Door knocking might seem daunting or downright scary. Who wants to be bothered when they're getting off work or getting ready for dinner? But it's actually a very effective strategy for real estate investors. Getting face to face with a homeowner who might be in need of some help is exactly how you may land that next big deal. Here are some important strategies so that you can make a positive impact. Why should you listen to me? Because I have over 40 years of experience as a broker, mentor, and investor. I made this channel for the new and experienced investor, those looking to live the life they've always wanted through real estate. Before we dive in, make sure that you subscribe so that you never miss a thing. Why door knocking? I absolutely like door knocking, and the reason I like door knocking is I am actually speaking to the seller that's having difficulty with their mortgage, and that's the best way for me to actually get something done is when I'm there and in their presence. If you're calling, it can be effective, but again, It's literally a cold call. They don't know who it is. When you're at their door and you're like presented there in front of them, you know, their choices are very limited. They have to kind of listen to what you have to say. Maybe not for a long period of time, but enough to get your elevator speech out. Hi, my name is Joe. I'm a real estate investor. I'm buying homes in your area. We just Closed on 2. Are you interested in selling your home? Notice I didn't bring up anything about a Notice of Default or anything like that. That's for a further conversation when I have with them, especially if they express an interest. So I like doing door knocking because I'm there directly in front of them and trying to help them through whatever situation that they're in to have a good outcome for not only them But obviously me at the end of the day. Let's talk about 4 tips. Number 1, you need to do your research before you go. You need to pull that list, you need to find out who the owner of the property is, you need to find out if it's a notice of default, you need to find out how much they're behind. All this is public record, it's, it's easily available. And when I go knocking at the door, I always want to speak to the owner. You never speak with tenants. And you never speak with small children, you know, right there next to their mom and stuff. Please have them go play someplace else. You don't want to alarm any small children. You don't want to alarm tenants. You want to speak directly to the actual owner themselves. Number 2, practice your script so that you sound natural. Okay, it's not like, hi, Yeah, my name's Joe, and I'm— what am I, a real estate agent? Am I a wholesaler? Am I an investor? Practice your script so that it comes out nice and smooth at the end of the day. Keep watching. I'm going to share a great door knocking story. Number 3, always have a backup plan to anything in life, especially when you're door knocking. What happens if they don't answer? I actually have a tag that I'll put on the door and it's a message that they have a package, please call this number. It goes to a voicemail, they leave their information because everybody wants to know what the package is. So I really have like a 95% response rate when I leave that tag there. And then you follow up on the phone and you tell them, okay, I went by the same script. I'm an investor. I'm buying houses in your area. We just put 2 in escrow. We're thinking about doing a 3rd. Are you interested in selling your home? It's just as simple as that. Number 4, and very important, have a follow-up strategy. So if you're at the door and you get some information, you get some positive response, make sure you follow up on that. If you have to leave a door tag, Hopefully they end up calling. If not, you can follow up and go back out at a later time. If none of those two works, then make sure that you put all this information somewhere that is available to you, that you're going to follow up. You're going to try a phone call back to them. You're going to go back and door knock them again. Following up is very important. If somebody tells you, I don't have time right now, But I am interested. Here's my phone number. Give me a call. Don't just not call them. You need to follow up. Let's talk about a door knocking story. This is actually a true door knocking story. So I knocked on a door. It happened to be literally one street over from where I live and knocked on the door and I spoke with the seller. I said, hey, are you interested in selling your home? I noticed that there was a notice of default and that you're going into foreclosure quickly, you know, about 30 days or so. And she says, yeah, I'd be interested. How much you want to give me? And so I kind of told her. She says, well, this is how much I owed the bank. I knew what that was, but obviously she hadn't been paying for a while, so that got a little bit larger. So she said, if you give me $550,000, okay, on this property, I'll let you buy it. I said, great, when can I come back? We can sign a contract. So we made an appointment and I left. I have all her information, her phone number and everything. I don't like wasting time even though it's only one block away from where I live. I call her the next day and I say, okay, you ready? I've got the contract ready to go. She said, Joe, I spoke with a real estate agent last night and they said I could get way more than $550,000 for this property if I put it on the Multiple Listing Service. I said, okay, so you don't want to sell it to me at this point? She says, no, I'm going to just go with this real estate agent. I said, okay. So they ended up going with the real estate agent, they put the property on the MLS, And back then, the banks were getting way more sophisticated during doing short sales. This property was not a short sale. When I was offering her money, she was actually going to walk away with about $50,000 in her pocket. And she quite frankly got a little bit greedy and wanted to do more. So the agent says, well, let's list it for $650,000. And at that point it is a short sale. So the bank sent out an appraiser. The appraiser came back and said, this property is worth $650,000. Okay. Which is what you have it for. The problem is that the agent got an offer from an investor at $550,000. And she was hoping that the bank would only appraise it for $550,000. Why? Because the agent's husband had gone in there and literally put holes in the walls To make it look more distressed than it already was. And I can tell you, 'cause I saw the property, it was extremely distressed. Her husband, the agent's husband, decided to put more. Well, that didn't work because the bank sent the appraiser out there. He came back at $650,000. The offer that was on the table for $550,000 from an investor, they walked away. So she's like 15 days away from closing. She calls me back. She says, Joe, I know I shot myself in the foot. Are you still interested in buying it? I said, yeah, absolutely. This was about a 2 or 3 month period. Obviously she's paying more on her mortgage. I said, okay, well, what do you want at this point? She said, Joe, I'll take $525,000. I owe the bank $510,000. That means I'll walk away with $15,000. I go, yeah, that's true. Okay, are you going to stick with this deal now? She says, yes, I'm going to stick with this deal. $525,000. I know I could have gotten $550,000. $525,000, I will pay the bank off $510,000 and I'll put $15,000 in my pocket. So we went into escrow and we ended up closing that property. Remember, closing these leads might not happen overnight. So be persistent and patient. It may be that somebody that you talk to today will call you tomorrow, in a week, Or in a year. Even if they're not ready now, you may stay in the back of their mind until they decide to sell. So make sure that you keep following up. If you're ready to start knocking on those pre-foreclosure lists, make sure that you check out this video right here. I break down how to stop a foreclosure from going through. If you have any questions, make sure that you reach out. I'm always here to help.