Commercial Real Estate Secrets: Cold Calling

When I was a prospective agent going through commercial real estate training classes, a very wise man told me something that still sticks with me. He said that I should never call anyone if I didn’t have something to talk about that could realistically make them at least one million dollars.

Granted, this person was prone to exaggeration, but what he said was very true and I took it as a rule. Never call anyone if I can’t make them one hundred thousand dollars.

How is someone going to make $100,000 from a single cold call? Thanks to the way that commercial real estate works, this is actually easier to do than you might think.

Let’s take the owner of a 40 unit apartment building worth $3,000,000. Do you have an idea that can reduce his expenses or increase his income by just three-and-a-half percent? If so, you just created $105,000 in value, as well as increasing his cashflow by thousands of dollars a year. Can you help a commercial real owner with a $1,500,000 mortgage refinance her loan to one that is 70 basis points less expensive? If so, you just saved her $100,000 over ten years.

When you start looking at your business development calls like this, your attitude shifts. You know that every call you make is valuable to the prospect on the other line. This gives you the confidence to make your points convincingly and it gives you the ability to close for a meeting. After all, who’s going to say “no” when you tell them that you can make them $100,000 over the course of a brief meeting?

You’re training your commercial real estate clients, too. They’ll start looking at your calls differently and start thinking of you as a partner instead of an annoyance.

This might seem obvious but over the years, I’ve seen a lot of commercial real estate courses and training materials on how to develop business, how to serve clients and the like. Very few of them mention this simple rule.

But now you know it. Go apply it and leave a comment below to let us know how it works for you!

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