Ep #373 – Gary Boomershine – Finding Multifamily Deals with Direct Marketing
Here is some of what you will learn:
- Understanding Direct Mail
- The 6 M’s of marketing
- Postcards vs Letters
- Live calls vs recorded message
- Third party call centers
- The importance of follow up
- The ‘multi-offer’ approach
- Inbound vs outbound calls
To find out more about our guest: click here
To find out more about partnering or investing in a multifamily deal: Text Partner to 41411 or email Partner@RodKhleif.com
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Full Transcript Below:
Ep #373 – Gary Boomershine – Finding Multifamily Deals with Direct Marketing
Hi! I’m Rod Khleif. Each and every week I record an interview with a thought leader that I know you’re gonna get a ton of value from. Now here on YouTube are the video versions of my podcast, Lifetime Cash Flow through Real Estate Investing. Now to make sure you get the latest information please subscribe and hit the notification bell. Let’s get started.
Rod: Welcome to another edition of How to Build a Lifetime Cash Flow through Real Estate Investing. I’m Rod Khleif and I am thrilled you’re here. I’ve got a really dynamic guy on the show with us today and it’s a little unusual in that he is primarily in the single-family space but I really believe that the topic we’re gonna discuss which is marketing, crosses over into multifamily and I know that he’s gonna be able to add value. His name’s Gary Boomershine and he founded realestateinvestor.com and he’s really well known under the REIvault.com moniker, but this guys have done direct mail and outbound lead generation to a whole another level. I mean, they mailed 36 million pieces of mail so far. They’ve done, they’ve made a million outbound phone calls. So this is really about direct-to-seller marketing and I just think that you guys are gonna get some value today. Welcome to show, Gary.
Gary: Yeah, Rod, it’s great. I’m super excited and hopefully I can add value to your loyal group of listeners.
Rod: Well, I’m sure you will. There’s no question. And so, you know, let’s talk a little bit, you know, we’re gonna talk about, we’re not gonna talk about developing broker relationships. We’re not gonna talk about, you know, a lot of the traditional ways that people get multifamily deals. We’re gonna talk about direct-to-seller marketing, and I know, you know, again, you’re the king in this single family space, so, tell us, you know, a little bit about; why what you do works?
Gary: Yeah. You know, we’ve done, you just mentioned, that we’ve done over 36 million pieces of direct mail, over a million outbound cold calls to sellers but it’s really focused, primarily on single family because that’s pretty hot right now in this market and we’ve got some of the top guys, the business, you know, the operators, they’re wholesaling and fix and flip and rehabbing. I just go right at it, you know, I chatted a little bit before the show. Direct mail is not really the preferred approach. My recommended approach for going after multifamily, however, there’s gems and we’ll talk about that, but I wanted to give the caveat everybody should know and the primary reason I’ve sent out hundreds and hundreds and hundreds and hundreds of thousands of pieces of direct mail, probably, everything, you know, postcards, letters, packages, offer packages, and the reason that it’s not as effective as other approaches out there like work in the MLS, working Loopnet, working with the broker is because it gets stuck with the property manager. The property managers are the blocker and so, if you’re doing direct mail, you really need to get around that which means it’s gonna take some work, looking up the entities, most of these apartments are gonna be held by LLC’s, you’ve gotta actually spend the time, preferably not you, right? You hire a $4 an hour resource and find out who actually is behind it now. With that said, Some of the best deals and some of the biggest deals and deals that may actually have owner financing, that are creative will come off of the direct mail, we’re seeing that but the cost per deal is higher. You could plan on spending ten thousand dollars in marketing to find that one gem. The response rates are gonna be a little lower and you’re gonna have to work on is what we have found. I actually, you know, how all this came with just a little bit of background. I come from a real estate family. I was a licensed agent in 1987. I’m 50 years old. I went full-time in real estate. I should also say that, in the family, I paid for college by holding open houses and door-knocking and I got a computer engineering degree. I didn’t think I was gonna do real estate. I went down the consulting in Silicon Valley path and then, and then it was in 2004 my wife and I said, you know what, let’s get back into brick-and-mortar what we know. So I’ve been in a, I’ve owned apartments, I do a lot of private lending but what I found in my business is put me in front of sellers, right? That’s where put me in front of a seller. The money is made making offers, right? Lots of offers and closing deals and to get in front of the sellers its marketing. And so, we took a, we took a Dan Kennedy approach. He’s probably the, he’s kind of the main guy behind direct mail.
Rod: The man knows how to write sales letters.
Gary: He sure does. So, direct response marketing is, there’s a formula around it. It’s called the 6 Ms and I could go through that if you wanted but we really …
Rod: Yeah. Let’s hold off on that for one second because I want to circle back to a couple things you said.
Gary: Okay.
Rod: And then, we’ll go on the 6 Ms. Yes. I’d love to hear the 6 Ms. So, you know, the thing that you said that you glossed over and I’ve had students very successfully do this but it’s doing what other people aren’t willing to do, okay? If you wanna buy a list and mail it, that’s one thing, yes. If you’re gonna do that with multifamily, it does not work. But if you break down the entity and you mail and/or find the phone numbers of the principles of that entity and, you know, you mail a certain segment, a niche, which I think is a niche which is under 30 units, no, 5 to 30 units. It’s gonna be mom-and-pop sellers and you pick people that have owned a while, like ideally, 20 years, very small list when you do this, but our results have been 6 to 9 percent response. Which I know you know is fantastic in the direct mail industry and, but it takes a lot of work and, you know, we hire and teach people how to hire VAs in the Philippines to do this work for them but yes, it’s doing what other people aren’t willing to do. So, that said, you know, I, yeah. That said, I just wanted to clarify that. You said it takes about ten thousand to find a deal. Okay. I, we’ve found it to be a little less, less than that but, you know, I think it’s, the key is shooting with a rifle instead of a shotgun. And I think that’s the difference.
Gary: Yeah, yeah.
Rod: But let’s talk about, so, now let’s talk about the 6 Ms. Let’s talk about what that means.
Gary: Yeah. So, the 6 Ms of marketing, to get to, it’s all about the response on the leads and then the conversion rates. Alright. So, the 6 Ms, number one is the Market. To Market, Message, Medium, Multiple, Months and Money. So, the Market is number one. That’s the most important, that’s the list. It’s the targeted list of names and addresses and phone numbers. And the more pinpointed you get, the better results you’re gonna get. Now, I’ll add another thing. If you’re searching, this is all public record data. An easy list to find would be on List Source or Corelogic Real Quest and I will also say, even the bigger properties that we have found, if they’re not held in an LLC and there are properties that are held in a trust individual …
Rod: Right, right.
Gary: Etc. those are gems.
Rod: Right.
Gary: Those are typically. The other one would be properties that have been owned for a long, long time. In fact, the ones that have no last sale date are gonna be the best because most of the top people that are doing this are going in and they’re putting last sale date. I would make sure, as a nugget, I’d leave the last sale date blank because you’re gonna get all, you’re gonna get all the gems. That’s gonna be a home run for a lot of people.
Rod: Okay.
Gary: Because one of the things we found are gonna be out-of-state owners, primarily, inherited properties.
Rod: Yeah. Those are the best. People, kids don’t wanna mess with it. They wanna cash out, you know, those are the best. By the way guys, you should also reach out to probate attorneys just for that, for that reason. Alright.
Gary: Absolutely, absolutely.
Rod: That’s a need cuz, again, guys, he’s going really fast, but I wanan slow you down just a hair, buddy. Because you just gave a big gem there which is, you know, most of them put a date in and so, all the ones with the blank dates are gonna, are not going to show up on the bulk listings that these the larger houses use. Okay. Please continue. So that’s a mark.
Gary: Yeah, by the way, that was actually, that’s probably one of the keys for us with REI vault. We actually have two proprietary mailing lists one we call the invisible list and one that’s called the shipwreck list. And out of the 127, I’m gonna talk single family for a moment but 127 million single-family properties that we all have access to and 18 million of those are kind of a unique combination of absentee out-of-state owners, inherited properties and mostly free and clear and that has been an absolute goldmine for the people in single-family and the last that we actually have to pull I mean we’re buying massive amounts of data. Millions and millions of records a month. Were about 250 people around the country to do this but that last sale date, no last sale date is huge.
Rod: Okay.
Gary: Probably one of the biggest identifiers. So that’s number one. So, I talked about the list and then, the second is the Message, the right words. The Market and then, the Message and then the third is Media which is, are you gonna send out a postcard, are gonna send out a letter, handwritten letter, is it gonna be a package, an offer package. I actually, if you have a small enough, you have a small enough list, I would be, I’d be putting an offer package. We do that. We actually have something we do for single family. We called our one-click offer. It’s literally an offer package with two signed contracts in there that are actually done. They look like they’re handwritten.
Rod: No, I love it. I love it. Can we circle back to message for a second can you speak some of the messaging that works well?
Gary: Yeah, Dan Kennedy has, there’s one step and there’s two step marketing, and he has a concept of blind copy. I think blind copy would probably, and I have not done this test in apartments just because we, it hasn’t been our focus, I know it work, by the way. We do it in land. It’s one of the best producing pieces. Blind copy is something that’s not saying that you’re trying to buy the apartment. Your whole purpose is to get the phone call. You already know you’re going after the list or the hot spot that you’re looking for and you’re looking to get the call. So, a message of urgency almost that the property, you know, you’ve got something urgent to talk to them and that, you take it to a pre-recorded voice mail. We’ve got one for the single family that’s two minutes and third six seconds. It’s been a top producer for years. We’ve sent out that particular piece. So, something that’s gonna have urgent or, you know, expiration date on it and the copy is gonna be very focused. You’re not putting anything in there.
Rod: You’re not giving them a reason for the call?
Gary: No.
Rod: You just have really vague?
Rod: Wow.
Gary: You are. You are. And so, what happens, you’re gonna, get, we get a high response rate. I’ll tell you, on average, our piece off of a postcard gets about an 8% national response rate.
Rod: Wow.
Gary: And it converts well. It gets about 5% of the people will give an angry call.
Rod: Right. Yes. I was gonna say, a lot of pissed-off people I’m sure but okay.
Gary: And 20% of the calls are what we would consider buyable.
Rod: Wow.
Gary: You’re driving a pretty high and, by the way, it’s pretty, it’s very-very similar for a one step. You’re gonna get a better quality lead if it’s a direct message but fewer callers. So, I would do that. I would do that to get the call. To get the person on the phone.
Rod: Okay.
Gary: And that’s a Dan Kennedy.
Rod: Then, do you have them, do you have them go to an actual live answer? Or do you have them go to recording?
Gary: Yeah.
Rod: What was the breakpoint?
Gary: If it’s two-step blind copy, always to a pre-recorded message. 100% of the time, we’ve tried it both ways, you do not wanna live call. You just take them to a pre-recorded message. Super professional; hey, let me tell you why I sent that to you, you know …
Rod: Yeah, that sounds good. That sounds good because, then, that that’s gonna weed out a lot, I mean, you don’t wanna, you’re gonna have to listen to some of those messages but, you know, 20% will be decent.
Gary: Yeah.
Rod: Interesting. So, what are we messaging, what are the messaging, you got Dan Kennedy’s one step, and, well, anything else that works well? Do you do this on a postcard? You said you like postcards.
Gary: Postcards. I’ll tell you postcards will help produce dollar to dollar a hundred percent of the time off of a letter for single family. Dollar to dollar, right? So, for 33 cents, 34 cents, you can drop a postcard. It’s, typically, going to be 59 cents, almost double, for a letter, but you’re not gonna see the same response rate. The only but two times you would do letters again for single family is, one it’s a super small targeted list, right? If it’s a super small targeted list maybe …
Rod: Which would be the case with multifamily.
Gary: Right.
Rod: So, you know, let me ask you this because I, you know, most of the multifamily people that I know that have had very good success direct mailing letters, you know, with pictures of their family and whatnot and different messaging, what about frequency? How often? Is that one of the next thing?
Gary: Yes, it is.
Rod: Okay, alright. Well pass, we’ll pass on that, but so, but as far as media, do you send different messaging? Like, will you send a completely different piece three months later?
Gary: Not that often. Sometimes we’ll do it in different color and part of it is consistency. Part of it is the repetition. There’s a magic and this is multiple and then months. So, multiple is five to eight times. I would be hitting the apartment eight times.
Rod: Okay.
Gary: I would be hitting it, if you’re sending out a letter. Letters fine, if it’s a small list. I don’t put any pictures. You don’t need pictures of your family, you don’t need any branding, it’s all about the wording. I’d make it a handwritten.
Rod: Handwritten letter.
Gary: One of the best producers I can give this to you as well. I’d do it as a follow-up, if it were me, to a small list. It would be a follow up type of letter. A guy, years ago, out of Colorado wrote it. It goes on yellow paper. It’s a thank-you letter, a follow-up letter, says, hey, we recently spoke about purchasing your property and not sure if your other options have changed but loved to continue to interact with you, type a message. And …
Rod: whether you’ve spoken with them or not?
Gary: Absolutely. I mean, we, it’s a great producer. It does produce. You’re not, you’re, typically, not gonna get angry calls off of it. I mean, Dan Kennedy would say, it’s, you know, we’re going out to a seller they don’t know us. There’s gonna be some friction so you got to have, you know, you’ve got to have somebody on the other side of the call. On those letters, by the way, always a live answer. A hundred percent of live answer.
Rod: Live answer, okay.
Gary: Live answer. Friendly person, you know. It’s the Grant Cardone and it’s like, you gotta be sharp its attack, knowledgeable is all heck, and super friendly. And there’s, so, I’d take those calls live. Usually it would be a third party is what we would recommend. There’s, you really don’t have to answer on live. Unless if you’re going after apartments and it’s a really small list than you thought.
Rod: Right. But, so, you would use a third party you saying. I know you offer that service as well, but, you know, on a smaller scale, would you just hire somebody? Would you call, I mean, what are the resources for something like that?
Gary: Well, if you’re doing apartments, if you’re doing apartments you’re talking big-ticket item, right? You spend, I say, ten thousand, it could be five hundred bucks, but I’m saying, ten thousand dollars, it’s a numbers’ game. There’s a thing, an apartment, what’s the value and the return on investment …?
Rod: Yeah, yeah, yeah. I mean, it’s infinite. It’s infinite on ten thousand dollars.
Gary: Right.
Rod: Right. You get a great deal on an apartment complex.
Gary: Right.
Rod: I agree with you. I didn’t wanna discourage anyone because I’ve had people do it for quite a bit less but, you know, be prepared to spend what you have to spend to get these deals because it’s worth it. These are, in this hot market, off-market deals are the belle of the ball, so, right?
Gary: Right. The key is, you don’t do it yourself. You just have somebody else do it for you.
Rod: Right.
Gary: Now, if you’re doing it on a small scale, take the calls live. Here’s the reason I like a third party. What we have found, we’ve found that a large percentage come in between five and ten o’clock at night of those calls.
Rod: Oh, wow.
Gary: Five and ten o’clock. You’re gonna find about sixty percent of the calls come in after hours.
Rod: Wow. Okay.
Gary: So, if so, if you’re answering them yourself, plan on being up late and …
Rod: Okay. Good to know. Good to know. And then, so, we’ve got Marketing, Message, Media, Multiple, that’s four. What are the other ones?
Gary: Months. So, over how many months? Typically, if you’re going after more of an equity, high equity set of properties, right? Not in distress.
Rod: Right.
Gary: Every 60 days …
Rod: Okay.
Gary: … is appropriate. So you can split up your list or hit it every 60 days. It’s appropriate. If you start going less than that, you get what’s called list fatigue. So, that’s just …
Rod: Right. You overkill. You overkill it. Got it. Okay.
Gary: Overkill. If you’re going after a more of a distress like a probate situation or recently-deceased or code violations and things like that, I’d be much more rapid fire at minimum of every 30 days. You could do it every three weeks. You could do it every two weeks and some of the marketing I’ve done to purchase properties, I all-mail every single day.
Rod: Wow.
Gary: Just to get the response.
Rod: Wow.
Gary: And in fact, at the house I’m living in today was a very small market of a hundred and twenty houses. We mailed every day. I pretty much got a hundred percent response because people are asking to be removed from the mail. As this house is, she called to be removed from the mail. We had a great conversation. I put her on a follow-up letter, and three months later she called and said, hey Gary, are you still interested in buying the house?
Rod: Okay.
Gary: I was in contract that day. So, you know, you’re not getting angry people, it’s just, it’s marketing.
Rod: Right.
Gary: Look, it’s marketing. Why do credit-card companies put out those offers in the mail, right? The check letters and the things, it’s marketing. So, a lot of people, you know, they get stuck a little bit on the integrity and they wanna do it’s like, hey, you know, if it’s marketing you’re looking for a response. Marketing is all about traffic and then you gotta convert the traffic which is sales.
Rod: Every business according to Peter Drucker is nothing but innovation and marketing. So, love it. So, what, you know, one of the questions that I wanted to ask you is, you know, what would you say is one of the biggest secrets to getting deals now in this hot market? Is it direct mail? Is this is what we’re talking about? or is there a caveat on that? You know, what we didn’t do the 6th M. Forgive me. what’s the 6th M?
Gary: Money.
Rod Money, hello. Okay.
Gary: Money is …
Rod: How Money doing all this?
Gary: Money is, how much money do I need to plan on spending to get enough leads, to close a deal? And so, it’s gonna be, it varies in every single market. And so, the money is how much money to produce enough leads. To get enough good leads. To convert into contracts that actually close and make profit, and with a return on investment.
Rod: Okay.
Gary: That’s the Money. So, the 6 Ms, Dan Kennedy, actually, it was the 5 Ms, we added it the last one which is Money because it, you know, it’s you need to know what’s the measurable result. How much do I have to spend? How much am I gonna make? Over what period of time? Because sales and marketing, it’s a total numbers’ game. The art and the science.
Rod: Sure, sure. It totally is. And if you’re not measuring it, you really pissing away a lot of money …
Gary: Yeah.
Rod: … because double down on what’s working and come back on what’s not.
Gary: Yeah.
Rod: It’s gotta be measuring continually.
Gary: Couple other secrets Rod. I will just say, in this market, specifically, around single-family, there is a lot more pressure on going after off market because of the cycle that we’re in.
Rod: Sure.
Gary: As an example, three years ago, direct mail absolutely crushed it. There’s a lot more pressure because you got all the seminar guys now teaching it and, usually, they’ll utilize our postcards. We were the innovator of most of the postcards. A lot of people use in this niche. So, there’s a lot more pressure. It just means, it just means, you gotta be better on your interaction with the seller and the follow-up, it’s what we’re finding.
Rod: The fulfillment. Really, it’s after the after the call happens you need to be very -very responsive and be communicating properly, yes?
Gray: Correct. Also multiple offer approach. So, a lot of the guys historically have been making a single, you know, all-cash offer. The guys in the single family that are coming in with more of a problem solving concept of, hey, we can offer you this, we can do this, you know, …
Rod: Now, let’s talk about this because this has never come up on the show before. Man this would be, I think, at just as effective with multifamily as it is with single-family. So let’s talk about the multi offer approach for a minute. Let’s build down on a second. So, you make an offer cash, okay? That’s actually unusual in the multifamily space. It would usually be with financing.
Gary: Correct.
Rod: What are some other offers you could make in our space? Any come to mind?
Gary: Higher purchase price. A price that’s more, you know, interesting to the seller. We’re, they’re actually doing some owner financing, carrying back paper.
Rod: Okay.
Gary: Right. Typically, the way it happens is the, like my approach and a lot of us will go in and work with, hey, what would it look like if they were to put this on the MLS and sell it retail? In terms of like, the repairs and all the work effort etc. and what we’re trying to do is, say, hey, you could actually sell that right now. Again, this is going direct without dealing with the realtor.
Rod: Right.
Gary: You could sell that direct and you’re gonna take a small haircut if you were the, be a little flexible on how we pay you over a period of time. While these sellers, they’re, you know, and I think this would be a multi-family as well there’s a huge capital gain issue for them selling.
Rod: Sure.
Gary: Like what happen in 1031.
Rod: Sure. You’re actually financing for an elderly person is the best way to go. Bar None.
Garry: Absolutely.
Rod: You know, they put their money in the bank, it’s at 1% they’re not gonna put their money in another high risk investment because they’re risk-averse cuz they’re elderly and they’re gonna be fully depreciated so they’re not gonna be right off so, you know, seller financing is the belle of the ball for an elderly person. So, love it. And I like, you know, your idea of presenting two offers like that. One, with, you know, your regular bank financing or, you know, whatever and then, another with them maybe carrying back a second for part of the downpayment.
Garry: Yeah.
Rod; If you get a bank that allow it, and there are some banks you’ve got a relationship with that will do that. I’ve got, I interviewed a kid in, Michigan, you know, and got in, basically, a million-dollar property for 5,000 down because they let the owner carry a second or maybe completely carry the whole thing, if it’s free and clear or, you know, possibly even wrap it, you know. So, there’s a lot of ways to structure. Okay, and I love that. So that’s multiple offers where you actually present two at the same time or maybe even three at the same time, okay.
Garry: Yeah. Typically, the approach is, you know, my price, your terms, and/or your price, my terms, and then, trying to work somewhere in the middle. That’s the historic approach and, by the way, that’s not, that’s, I come out of the technology industry of selling five hundred to five-million-dollar software and that’s the same approach that we took there. Any high ticket, multiple offers, the other think it’s interesting Rod, is your, your stick rate, your conversion rate in the deal is gonna be higher. What we’re finding is giving multiple offers keeps your foot in the door. So let’s say you’re gonna offer, you know, four million dollars, you know, all cash, you know, financing, where you could come in at four and a half million or four point seven, if they’re a little flexible, right? And being able …
Rod: And you could play the interest rate to get your returns where you need them and they’re seeing the higher number and it’s a total win-win win all the way down the line.
Gary: Yeah, absolutely. So, that keeps your foot in the door and also the other thing is a lot of these sellers may, you may be the, they may not really be thinking about selling. They’re intrigued because you’re going to direct. Now all the sudden their interested and so, they’re now shopping and so, you came in with a four-million-dollar all-cash offer. You’re the one-trick pony, right? And then, they sell the property for four point one.
Rod: Right.
Gary: Yeah, right?
Rod: Right.
Gary: So, giving them a range in multiple offers, building some rapport and I’ll tell you the last secret. This is absolutely critical. The follow-up, though not only three percent of the initial calls are gonna convert right away. Ninety-seven percent of the money is going to happen between five and twelve interactions with seller.
Rod: You know, yes. Right. That’s proven. That’s absolutely a fact. It’s proven in sales.
Gary: Absolutely. So, text message, what we’re finding and this is single family, I know it would be at least this or higher in multifamily. Sixty percent of the calls that are coming in, are coming in from cell phones. Text message is absolutely, I mean, it’s a hundred percent success to those sixty percent. Very simple text message, follow-up letters and then, of course, a phone team, a friendly phone team that’s calling. We also put a ring less voicemail into the
Rod: Yeah, sure. It’s live broadcast. Yeah.
Gary: Absolutely.
Rod: No-brainer. You give them voicemail.
Gary: Yeah. Large system as a note, we have a system that does all that. So, as leads come in, they get pushed right over to the phone team to get on the phone and screen up.
Rod: So, you get hit him on all fronts.
Gary: All fronts
Rod: They text on your phone. You leave him a voicemail and guys, that’s the way the big hitters in the single family space do it. Why not do it in this world? Which is why I wanted Gary on the show. So, what happens if you’re in a super competitive market? Let’s talk about like a San Francisco or an LA or a San Diego or I mean, just crazy market. Any tips for how to deal with that. Get out of it? Go buy somewhere else?
Gary: Well, okay. So, apartments, I’m not the expert, I wish I could say, hey, for apartments multi-family …
Rod: Alright. Just just talk about a single-family because guys, I really believe there’s a ton of crossover here. So, it’s okay.
Gary: Yeah. So, the return on investment on the marketing dollar is gonna be exactly the same as what we have found.
Rod: Okay.
Gary: Now, in California, right? California for marketing, you’re, typically, if you’re in Florida, actually, I just did this Dallas, we got a guy in Dallas. He was, his wife was a cheerleader for the Dallas Cowboy Cheerleaders. Super good guy. He did a, he spent seventeen thousand bucks, nineteen thousand dollars in marketing with us since April and he produced a hundred and fifty-nine-thousand bucks in profit.
Rod: Doing some flips. Single family flips.
Gary: Yeah. Just flips. Just flips.
Rod: A hot market. Okay.
Gary: And if, you know, seventy …
Rod: So, the ROI is higher because the returns are higher on these higher priced properties.
Gary: Right. He close six deals and so, his cost per deal was thirty three hundred dollars in Dallas.
Rod: Okay.
Gary: Right? Now, in California, if he was in San Francisco Bay Area double that. So his cost in marketing is gonna be closer to six. But the profit, the average profit, the same type of product that he’s flipping, he would make double the profit. He would have made $40,000 on that same flip maybe 50.
Rod: Interesting.
Gary: The ROI …
Rod: So really is the ROI on where you are now.
Gary: Yeah.
Rod: I know guys, if you’re in one of those markets, listen, the beautiful thing about multifamily is you can buy all over the country and so many people buy outside of their state, myself included, I just, we just closed on a deal in Dallas, one in Lexington, one in Ohio, one in Louisiana and so, you know, that’s a beautiful thing about this business but that’s a great tip for, you know, if you’re really in a super high-end market. Now, why not, what I wanna ask you? So, do you ever, do, you say you do outbound calls as well. Talk about outbound calls for the single family spaces and I really believe the crossover works. I’ve got students that kill it, making outbound calls to apartment orders. So …
Gary: Yeah.
Rod: Talk about that.
Gary: Yeah. Good old-fashioned cold calling. It’s crushing it right now and the reason is very-very few people are doing it.
Rod: It’s doing what other people won’t do.
Gary: Yeah, exactly. Here’s the thing. What too many people do the same thing it doesn’t work.
Rod: Right.
Gary: You wanna do, typically, it’s like fishing. If you got twenty fishermen fishing the same pool they’re not gonna catch that many fish. You just walk up, you know, walk up the mountain the little bit and go catch the big ones.
Rod: Love it. You know, …
Gary: So, let’s see …
Rod: Any tricks to that. I mean, just any little tricks. I mean, I suppose you wanna use texting, you wanna use the voicemail, I mean, beyond, you know, the non-ring voicemails just to add link to it but anything else you would add.
Gary: Yeah, There’s mojo dialer. We use five-nine. That’s what we we use. It’s, typically, one person. This is a dedicated to do cold calling and make any money at it, you gotta have one person dedicated full-time.
Rod: Okay.
Gary: That’s a, it’s a numbers’ game. Here’s what we’re finding. I’ll just give you the math. Two hundred and fifty dials is connecting with twelve sellers live and it’s turning one appointment. So, for every two hundred fifty dials, we’re getting one appointment which is kind of a warm lead, a seller saying yes, I’d consider selling.
Rod: Wow, wow. It’s actually pretty impressive because 250 dials, they’re only talking to 12 people. So, it’s about an 8 percent response rate.
Gary: Right. Alright.
Rod: Okay.
Gary: Here’s the thing. Somebody’s gotta be doing the dialing.
Rod: Okay. But the dialer will do it, right?
Gary: that’s right.
Rod: Okay. I mean, 12 calls in one day is quite a few. What do you see? What are your operators? How many calls can they actually connect with legitimately in a day?
Gary: Yeah. One person with an auto dialer can dial about 400 to 450 dials a day.
Rod: How many can they talk to though?
Gary: They’re gonna talk to, they’ll end up talking to maybe 20.
Rod: That many? Okay. Interesting.
Gary: Yeah, 20.
Rod: What’s the message? You ever thought about selling? I mean, give us a secret. Give it a little ninja trick.
Gary: Yeah. I’ll give it then. Anybody wants the actual script we use, this would work very well for multifamily.
Rod: Give us a version of it over the phone.
Gary: Yeah, sure. Yeah pull it up.
Rod: Awesome. Thank you.
Gary: Alright.
Rod: Yeah, just love to hear it and, you know, for those of you that are willing to actually do this or hire someone to do it, I mean, I’ve got, you know, one of my coaching students is a real estate broker and killed it making outbound calls.
Gary: I’ll give this to you. You can put it in the show notes so they can add a free link to it.
Rod: Awesome.
Gary: This is for inbound call. So, a call for inbound calling. If somebody that hangs up maybe a follow up, maybe you made an offer of no close so, we’ve pretty much got all the scenarios. By the way, this is a call, this is all we took and, you know, CG, Collective Genius …
Rod: Yeah, collective genius is a mastermind and Gary and I were talking about it beforehand because I’m actually joining it and it’s a bunch of hitters in the single family space that I thought I could benefit from being in the group and so I’m going to one of their meetings here in October. So I’m looking forward to that.
Gary: About four years ago, three years ago, about ten of them came in and we kind of said, hey, what’s the perfect script? So we said, the guys that we’re really doing this, what are the perfect script? So, here it is. If you’re able to see the video you’ll see it otherwise you’ll just hear it. My name is, and whoever it is, my name’s Gary Boomersshine. I’m calling because I work with the local investor, interested in purchasing your property. We can provide a strong cash offer. Do you have any interest in selling?
Rod: Is that simple? Wow.
Gary: Typically, we want the address. It’s super important because the seller will, it’s all about rapport. You got about 10 sec, 5 seconds to pique their interest …
Rod: Okay.
Gar: … and if they say they’re selling, then we wanna, great …
Rod: Sure. Capture all their information. So that’s it. It’s that simple. You interested in selling. I thought maybe there are some sneak …
Gary: There are few.
Rod: Okay.
Gary: We then, we’ll take it down, hey, can I spend, can I ask you a few questions? This will take about a minute, and I’ll pass it over to our buying specialist so I’ll get back with an offer and more information about us. We’re asking in the single family. We’re asking about kitchens and bathrooms.
Rod: Yeah.
Gary: How old is the roof? Anything else we should know and what’s the least amount you’d take and still be happy. We’ve found, this combination of words, by the way, it’s really interesting. Actually, out produces. Getting a number and then, we’ll …
Rod: That’s okay. So guys, I wanna repeat that. What’s the least amount you’d take and still be happy. Now that that reminds me of one that Ron Legrand shared with me decades ago which was, in what’s the least amount of, if I could close quickly and what’s the least amount you take and then the follow-up question is, is that the best you can do?
Gary: Yeah. Exactly. I know. I’ve been on Ron Legrand stage many a time.
Rod: And you? Oh God.
Gary: It’s like decades ago. He stayed at my house once out on Casey gear. That’s funny.
Rod: Anyway, Alright. So, you just ask him questions. So, there’s no rocket science to this. It’s just making the freaking calls.
Gary: Yeah. It’s, typically, the four questions to find if there’s interest. Our team will then take it even further for our members because then we’re gonna ask in bedrooms and bathrooms and is the property occupied and if it’s a rental we’ll find out what it approximately rents for etc. etcetera.
Rod: All the relevant stuff. Okay. Alright. Well, listen buddy, I really appreciate you being on the show and so it’s Gary Boomershine. It’s REI Vault and you added a ton of value today, brother. And I look forward to hopefully shaking your hand one day soon.
Gary: Yeah, awesome, Rod. Great to be on here and great to be with your listeners.
Rod: Alright. Thanks, buddy.
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