$21,500 from 2 hours of door knocking!
So I have a good friend who owns a couple of businesses here in Phoenix. One business is a waxing salon chain, another is selling water blobs online, and another is a pay per click advertising business. In short, this guy is the bees knees. He started a free 8 week course on “how to start your own business” for all of his friends to help them become entrepreneurs as well. He had friends from church, from salsa, from soccer...you get the idea he has a ton of friends.
One of his friends that came to the meetup makes 200k in commissions a year selling solar door to door. We were chatting during one of the breaks and he told me how door knocking is one of the most valuable experiences he has ever had in his life. He learned so much about talking to people, human behavior, rejection, getting to yes, and so much more. So, I thought to myself...I need this life changing experience too!
We scheduled to go door knocking the very next day together.
Here was my first lesson:
Have a goal:
The goal was to knock on 15 doors per hour and knock for 2 hours. Out of those 30 houses, get one owner to give us a walk through.
People like to do business with people they like. If you only care about getting the next deal and not the people involved, it's likely you aren't going to be as successful. This piece is to find something you can genuinely relate to the homeowner about to start the conversation. As you approach a driveway, scan the yard, cars, front door for things you like...are you a cardinals fan? Does the car have a kids bumper sticker? Is the owner wearing a Star Wars t shirt? Before you get into your script, be a human and relate with them as another human.
Homeowners get knocked on all the time. To increase the likelihood they will open the door here are some tips:
Wear casual clothes - Suit screams car salesman or jehovah's witness.
Be the friendliest person in the neighborhood. Wave to cars passing by.
Wave when approaching the front door even if you don't see someone. People can see you coming and if they think you saw them they will most likely open the door.
Knock, take 5 steps back, turn your body slightly away from the entrance and lean on something if you can. You want to appear as nonthreatening as possible. People don't like to be squared up on.
Be consistent with what you say. You can't track progress and alter what you say if it's different every time. Here is the script I use after pre approach:
How's it going? I'm Allie with Offer Arizona. I am actually here because I'm helping some of your neighbors. Do you know Maria and Mario down the street? I just bought their house. I help owners sells their houses for cash. As you probably know, it's a sellers market right now so a lot of homeowners are looking to sell and capture their equity. Have you ever thought about selling?
If you can believe it, the third door we knocked at is the house we made $ 21,500 on !!!!
I was super nervous but we went through the process as written above. The homeowners were like “yeah, actually we have been considering selling.”
My heart was beating so fast but we managed to say that we had a quick minute to walk through the house and could get them an offer by the very next day. We walked around the property and noticed that it had a roof leak from the last monsoon, and some damaged tile. Other than that it had the usual wear and tear from a house lived in by a family of 6.
If you remember the last post I wrote, I told you that it's important to get the homeowners motivation, price, timeline and condition. They said that they would like to net no less than 200k for the house. We didn't get too into details but I found out later that they were strapped for cash and needed to move in the next two months.
I came back a day later with 3 options.
Option 1. I could buy it as is in cash, close within two weeks, no repairs needed for 180k.
Option 2. List it as is on the market, get the house show ready, take professional photos, put a lockbox on the door and wait for offers at $215k for them to net $200k.
Option 3. Put 40k into a remodel on the house and list it at 300k and net 275k
They told me that they were going to look into repairs costs and get back to me. Two weeks later they called me up and said they were ready to go with the cash offer if I would do 190k. We met in the middle at 185k and got the deal assigned to an investor 3 days later at 206.5k
Don't let opportunity pass you by, go look for opportunities to grow and push past your boundaries and you will be rewarded greatly.
Go get em tigers -