Well, maybe not the whole World, but a very small part of it. Yellow envelopes are our secret weapon though. How many letters do you get every day in yellow envelopes? That’s right. None! If someone sent you a bright yellow letter, would you be intrigued by it’s uniqueness and be compelled to open it? We think so!
The whole point of writing to someone by conventional means is to have your letter read. If you can get them to do that, you are in a perfect position to get your offer across. Stats indicate that for every 100 letters you send, 10 will result in a call back, 3 of those will be seriously interested in the offer and one will actually sign up to your offer. So it’s a numbers game. If you want 10 sign ups, you need to send 1,000 letters. That sounds a lot, but you don’t need to send them all at once! Spread them out so you can take the phone calls, otherwise you’ll be deluged. One deal a month is fine, so send out 100 letters every month. In this particular type of property deal, each sign up should be worth £3,000 per annum, so after 10 deals in a year you’ll be receiving £30k of passive income! Awesome or what?!
Getting started is the hardest part. What should I ask? How do I ask the questions? What if they are hostile, or turn me down flat? Well, i’m no expert, i’ve only been doing this for a few weeks, but i’m getting more confident by the day and, believe it or not, people are usually nice. The fact that they’ve rung the number on your letter means they’re already interested in what you have to say, so don’t be afraid.
My advice, for what it’s worth is, try to strike up a natural conversation. Work your questions into the conversation so they don’t really feel like questions at all. I now say “Tell me about your house”, and folks will generally let you know all there is to know about the property they are selling. To find out if there is a deal to be had, you need to know the details of their mortgage (type, monthly payment, amount remaining) and you also need to find out how motivated they are as a seller.
Once you have gathered all your info (always have a proforma sheet available to fill in the blanks as you talk), thank them for their time and schedule a call back after you’ve crunched the numbers. Always ring them back at the agreed time, it builds trust and let’s them know you’re professional and value their time.
Crunching the numbers is all about working out if there is any money in the deal for you both. It needs to benefit both the seller and you the buyer otherwise there’s no point in making a deal. I’ve learned quickly what sort of nett rent I need for a particular purchase price to make a deal viable. Get used to that too. If you need to cover a £600/month mortgage but local rental income is only £500/month then it makes little sense. Aim for a minimum of £250/month nett positive cashflow (£3,000 per annum) if possible.
Want to hear about a comedy call from a guy in Middlesbrough? This actually happened recently when we ‘yellow lettered’ the Teesside metropolis. You need to imagine the caller speaking in broad smoggie.
Me: “Hello, Dave O’Hara speaking, how can I help”?
Caller: “Alright mate, i’ve ‘ad a letter off yers”
Me: “Ah yes, we’ve sent a few letters to houses we’re interested in buying, can I ask the address please so I’m certain which house we’re talking about”?
Caller: “Aye, it’s number 10 mate”
Me: “And can you tell me the street name as well?”
Caller: “Aye mate” (long pause)
Me: (quickly realising this might not be straightforward) “OK, tell me about your house”
Caller: “It’s not my house mate, know what am sayin’ ?”
Me: “Are you the tenant?”
Caller: “No mate, it’s me mam and dad’s house like, know what i’m sayin’? ”
Me: “Ah right, well I think it’s them I need to speak to”
Caller: “Aye, probly”
Me: “Can I speak to them please?”
Caller: “Nah, ther in Benidorm mate, know what am sayin’ “?
Me: (knowing what he was saying) “OK”
Caller: “I’ve just split up with me girlfriend like, know what am sayin’ “?
Me: “Sorry to hear that, do you know when I can speak to your parents”?
Caller: “Problys aye. D’yer wanna buy the house like”?
Me: “Yes, I am interested”
Caller: “Me an me mates can buy this house like, know what am sayin’ “?
Me: “When can I speak to your parents please?”
Caller: “After August like”
Me: (with no intention of ever ringing back) “OK, i’ll ring back then”
Caller: “Alright mate, mint”
Thankfully, not all phone calls are like this, but sometimes you get them (know what i’m saying?)