Gang, this is Mike with My Real Estate DOJO and today’s lesson is about: “How many people do you need to cold-call or knock on their doors or send a post card to, to get a return on your investment. So let’s go ahead and dive in and get started gang.
Alright today’s lesson is about the law of probability and how many people you have to call and talk to be able to get a deal as a real estate investor. 90% of the time when I tell one of my mentored to go out there and do some cold-calling.
I allow them to go do cold-calling one day/two day and then I ask them to give their feedback. Usually on the third day I ask them “How many people have you called today”. Usually they tell me some number around 20-15, 30 at the very max.
The day one and day two that i ask them what were their results, usually they tell me negative results. They don’t have the results they are looking for.
On the 3rd day when I ask them how many people you have already called, which is the first time i ask them, 90% of my students will say they called 20-30 people. Here is the thing- majority of these students are new to the real estate business. They may even be new to sales, to negotiations. Simply put they don’t know a rock from an atom in a sense, no pun extended. I am not trying to be rude, just trying to be realistic.
Once you are realistic, you can use the odds of probability to help you out and make a touch down or make a goal or make a deal. What do I mean by that? The law of probability says that if you go take a test and there’s 10 questions on it and you didn’t study for the test, you are going to get 1 right. So it’s about 10% If you’re cold-calling, you’ve got to call at least 100 people and out of 100 people 10% will be in the market or motivated to sell their home. Out of those people, 10% of that, will be interested in doing business with you.
As you can see, you have to dig 100 or this much dirt. Out of this much dirt, there is this much opportunity that could be a deal and this much is actual potential deals for you. Simply put, two things: it’s a lot of work, you’ve got to move a lot of dirt, if you don’t want to put money up for advertisement and if you want to use your sweat equity.
That’s how life is. You’ve got to move a lot of dirt to find this much gold, guys. That’s just the way it is. You can’t short-cut that. Just like you can’t expect a seed to harvest. It takes time, it take this much work to get a harvest. Point 2 is: if you don’t know a rock from an atom, you don’t know left from right and I mean that in the real estate business, if you are new to the game, if you don’t know how to do sales, if you don’t come from a marketing experience, you’ve never done cold-calling.
Well, you could use the law of probability to your advantage and pay attention, it’s very important, because if you don’t know left from right, if you don’t know what to say or what to do or you don’t know what to do when you pick up a phone call or have a script, as long as you make 100 phone calls, that odd is going to be working for you. If you make 100 phone calls, you are going to get 10 persons that are going to be interested and 1 that will want to do a deal with you. That’s the number. If you do 200, then you are going to get 2, 300-3.
Now you know the secret sauce in a sense and all you got to do is put the sweat equity in, put the elbow grease in and get out there and grind. Maybe your betting average on the first 100 is 1, but maybe after making 500 phone calls, your betting average is going to increase to every 100 you are going to get 2 or 3. Not only do you have the law of probability working for you, but you have the law of fucking up and learning from your mistakes. Just like a monkey does or a mouse does in a maze.
Because we learn from our mistakes as long as we are positive and are able to maneuver from it and not be in denial or blame the external factors : “None of these sellers are motivated, none of them want to sell for cheap”. This bullshit that we say that is external instead of internal.
This brings me to another mistake that my students always do, which is that, when they cold-call they are always blaming the external why: the seller doesn’t want to give them the deal, nobody wants to go with them. Instead of focusing on that person or that seller, they need to focus on themselves. What can I do different, how can I change my sales pitch, which angle should I come.
Should i call them in the morning or should I call them at night? Instead of focusing externally, you need to focus internally, so you can solve the maze, because you are going to make mistakes and its okay to make mistakes. The more mistakes you are going to make, the more successful you are going to be. The goal is to maneuver away from that and not take the mistake and sit home cry about it and have a pity party, if that makes any sense, guys. So, simply put guys: if you don’t know what to do, don't worry, there is great news.
The law of probability is going to work for you as long you take massive action. You go out there and don’t listen to nay-sayers, don’t listen to anybody who doesn’t believe in you. Don’t listen to your own fucking mind, man, because it’s trying to play tricks on you. Don’t listen to your ego either. Go out there and take action, the grass is so green.
This is America, people come thousands of miles to immigrate here, you could work for somebody or you could have your own destiny or you could have a combination of both. Whatever you do, chase your dream and fuck the money.
The money is going to come as a side-effect of hard work and chasing your dreams.
This is Mike with My Real Estate DOJO, have a great day gang and remember, if you life these videos, please like, please share, please leave a comment. See you later!