Pitfalls To Avoid When Qualifying Wholesale Leads2 min read
You need to have a reliable and consistent definition before you can focus on how to qualify a quality lead. A quality lead is one that has the potential to be productive and to increase your bottom line. And while many investors believe that every lead has the potential to meet these criteria, which is not really the case. In fact, the deal might not be the issue at all. It is often the seller that needs to be vetted to determine the potential for success.
A Tried And True Process For Wholesale Leads
Leads don’t come cheap. In one form or another, you are paying for leads with money or your time. So each one deserves your time and attention. This process begins with multiple conversations with the seller. And it is essential to carefully document each conversation and the points that were discussed for future reference. Initial discussions with a seller are often very generic. They will only scratch the surface of the reason for the sale and information about the property. Don’t rush the seller or the cultivation of your relationship.
At the end of each call, reiterate the points that were covered and leave the seller with a warm fuzzy feeling that will increase the potential for your deal. And set a specific time for a follow-up call while you have the sellers focus and attention. Then make sure to follow the schedule.
During a walk-through or face-to-face meeting, be sure to completely describe all that you can do for the seller and what he or she should expect from you. It can take several calls and even a few face-to-face meetings, but never give up on a lead before having a solid yes or no answer. Leads are too valuable to abandon without fully exploring its potential. And even when the answer is no, ask for the opportunity to check back later to see if the seller has had a change of heart. Situations change, and if you created a professional relationship of trust, which could seal the deal for you later if the sellers level of need changes.
What Not To Do
Never disqualify a lead too quickly. Sellers will always ask for more than you are willing to pay. But in almost every case, they expect the negotiations to begin at that point. They are not expecting you to say that you are not interested and hang up. Counteroffers are how real deals start.
Also, don’t get impatient and kill a deal after a single conversation. You need to invest the time, peel back the layers to get to what the seller really needs. And that will only come with time and a certain level of trust.
Remember, there is no set amount of time that you should allot for each lead. Some will progress quickly, while others will take more time and effort on your part. You need to invest the time to listen to each seller’s story and determine how you can meet this person’s need and close the deal.