Knocking on the door for real estate investors is an experience akin to a severe sunburn or prime source of business. The difference between investors’ feelings about knocking on doors is that those who hate it don’t do it correctly or not at all, and those who love do it regularly. Learning some basic secrets of this traditional prospecting technique can be very profitable.
Knocking on the door is the actual process of entering a specific neighborhood and knocking on each resident’s door one by one. Not only should the neighborhood be targeted by the type and price of the home you want to buy, but homeowners can be identified by finding out in advance if they are in pre-foreclosure, divorce, bankruptcy, or any other situation that would make them sellers. motivated.
With a little pre-planning and the basic development of a “script” of what to say to each type of target homeowner, this prospecting method can be the most profitable and efficient format for an investor. I recommend that the door knocker dress for success. This means no sloppy jeans and a casual shirt, but preferably shorts with your company logo and a neat and clean appearance. You will only have 10-20 seconds to utter a tickle sentence long enough to get the seller’s attention, so practicing what you will say is very important.
Most successful investors using this method will hire callers to shortlist potential sellers. Specific prospects are held for the investor training the team, as these are much higher probability prospects. Mature college and high school students are viable candidates for this job.
When a homeowner opens the door, the following strategies should be used:
1. Always take at least one step back so that the person opening the door is comfortable.
2. Make sure you stick to your script! As an example, for people in foreclosure, you might say, “Mr. Homeowner, I saw on the public record that your bank is trying to take your home and I wanted to see if we could help.”
3. If the person answering the door says they have taken over, simply explain that you understand and that you will continue to track their progress on the public record.
4. Give them a brochure, even if it’s a one-page flyer, that explains what you do and why they should work with you. Short sales are always popular with foreclosure victims if they understand the process. Your brochure should convey these important benefits to them. Even if they don’t open the door, you should put down your steering wheel.
5. Track the prospect’s progress, including knocking on the door again if the property doesn’t sell at auction or is sold otherwise.
If you are invited to a property, always be careful. Use your good judgment as a deal is not worth your life. Knocking on the door can work equally well in high-income neighborhoods as long as you don’t have to deal with gated or guarded communities. For security reasons, you should not be alone when you knock on the door.
In short, knocking on the door can be humbling or wonderful depending on its results. Never be intimidated or argue with rude people, it is not worth your time. Knocking on the door is possibly the best source to get offers quickly and at little or no cost. You will need persistence and fortitude for this to happen, but the more you experiment, the better and more effective your hit will be.
