I don’t know why more agents aren’t prospecting to people like me; I’m probably the easiest listing appointment an agent could get.
Seriously, I’ve not had a single agent call me. Sometimes I wish they would . . . and before I lose my mind.
Early in my career at REDX, I caught the real estate bug and purchased a couple of rental properties. I have a love-hate relationship with my rental properties. When I have great tenants who care about the place, who pay their rent on time – I love having rentals. But when the lease is up, or when you get a move-out notice, or when someone just up and leaves, I am reminded how quickly my rentals can transform turn into a time-sucking, money-draining, stress-causing liability.
I wanted rental properties for passive, easy income. To maximize the return I opted for self-management like most small-time landlords do. So when it’s time to fill a vacancy, the work falls solely to me. And when the showings take me away from my family, or important meetings at work, I get further and further away from loving my properties.
Needless to say, the peak of my frustration comes when there is a vacancy.
Which brings me back to the easiest listing appointment.
If a real estate professional like you asked for an appointment during a vacancy, I wouldn’t say no. I’d sit down with you in a second just to hear my options. Maybe your brokerage has some property management programs. Maybe you can show me that the market has changed and I’m in a better equity position than I thought. Maybe you could convince me that cashing out is more profitable than filling more vacancies. And maybe you can show me a better investment, even another real estate investment, perhaps one you already have listed, that would be less maintenance and headache.
I’m not unique. Every day thousands of self-managing landlords all over the country need real estate professionals to educate them on their options for getting out of the rental business. Top producers already know this; that’s why studies show that for-rent-by-owner (FRBO) leads are commonly prospected to by agents making more than $250,000/year in GCI. But other than a few handfuls of top producers, the studies also show that almost no one else is reaching out to these rental owners.
With hardly any saturation, these leads are low-hanging fruit in a lonely orchard. The competition is marginal compared to what you’ll find with other leads. This makes them a great source for any real estate professional: from the freshly-licensed rookie hungry to differentiate themselves from their colleagues, all the way to the top-earners looking to maximize their business with one more stream of income.
One reason FRBOs have gone virtually untapped for so long is due to the reason that they can be a pain to dig up. Investors and agents can find themselves losing hours of their weeks, combing classifieds on website after website and copying names and phone numbers. This is why I’m so excited for the launch of our most recent lead service: For Rent By Owner leads. With a feed of daily FRBOs, you agents and investors can find potential properties you didn’t have the time to look for, plus find them faster and more easily than your competitors.
But before any local agents pick up the phone to call me – or any other frustrated, primed-to-list FRBO, here’s some advice on prospecting to landlords:
1. It’s all about the money.
When property-owners are facing a vacancy, they are bleeding money. Drive that home. Their frustration will make a lot of other options very attractive.
2. It’s a business decision.
From the sophisticated portfolio investor to a landlord with only one or a handful of properties, the decision to sell is based on simple economics. Agents who keep the conversation focused on the investment, equity position, and alternate investments that would secure the owner a potential large-cash windfall will convert at a much higher rate than those that focus on monthly cash flow.
3. Just go for the appointment.
This is the same advice we give when prospecting any other REDX leads. You can’t get a listing over the phone. What people need is a consultation, not a sales call. Just sell the appointment and let them know your intent is educating them on making the best decision.
To help you stay focused on the three points above, we went out and interviewed several top agents, vetting their scripts, and put together a proven script when prospecting FRBOs.
Again, FRBOs are a fantastic source of owners with multiple properties to add to an agent’s sphere. For $79.99 a month serious agents can enhance their prospecting with the most business-minded property owners in real estate!
Get a FRBO appointment today!
