Why Your Yellow Letters Aren’t Working | EREI 37

Are you wondering why your yellow letters aren’t as effective as you’d like them to be, or perhaps why they aren’t working at all? If you’re marketing investment properties, the yellow letter is typically one of the most important tools that you have at your disposal.

As with any marketing method, though, there are several factors involved that can either help or hinder your efforts. On today’s episode, Matt offers a detailed look at the yellow letter and the process behind it so that you can figure out why yours might not be working the way you’d like.

Ready to get your life on track and attain financial freedom? Then head over to FreeRealEstateInvestingCourse.com to download Matt’s free real estate investing course.

 

Recommended Resources:

  • It’s been great meeting you virtually. Would you like to meet in person? Our next live event is right around the corner! Go to EpicIntensive.com for the details.
  • Need money? We have secured more than $15,000,000 of funding for the Epic community, people just like you. Get access to fast cash for your real estate investing business with our “one-of-a-kind” credit-based funding program at EpicFastFunding.com
  • Need time? Work on your business rather than in your business by leveraging the time of others.  Access free information and find real estate-trained virtual assistants to help you free up your time.  Learn more at VAsForRealEstate.com.
  • Need training? The ultimate training environment for real estate investors: Version 3.0 of The Epic Pro Academy!  New look, new lessons & new content – we’ve got everything you need to know to get your first paycheck!
  • Need someone to do it all for you? If you’re an Accredited Investor, you can diversify your portfolio by hitching your wagon to our train and share in the profits. Go to EpicWealthFund.com to download the executive summary.

 

 

 

Podcast Transcript:
(Voice Over):  Epic Real Estate Investing Podcast Episode 37. Without further delay, your guru.  Sorry. Your guide to a better life through real estate investing, Matt Theriault.

Matt Theriault:  Hello.  Greetings from The Epic Real Estate Investing Podcast, this is the podcast that is going to show you how to build wealth through creative real estate investing so you’ll have the option to realistically retire in the next 10 years or less.  Much less if you could place your focus on it and so you can enjoy the good life while you’re still young enough to do so.

My name is Matt Theriault, author, full time real estate investor and a family man.  If this is your first time listening to the show, welcome.  (I’m) so glad that you found us.  But you’re going to want to do two things.

First of all, welcome.  I’m so glad that  you’re here but what you want to do is you want to go back and listen to episode one for the ground rules of the show.  And two, I want you to download the Free Real Estate Investing Course – How to Do Deals, No Money Required.

You can get that for free at FreeRealEstateInvestingCourse.com.  It’s a step-by-step course of where I unveil the mystery around doing deals with no money or credit.

I mean to this point in my investing career, I’ve implemented 12 different strategies of investing in real estate using none or very little of my own money. You know, I’ve actually yet to use even one point of my own credit.

Inside of this free course, I gave you the first tow strategies of which the two that can generate the quickest success for you.  You can get the entire course at FreeRealEstateInvestingCourse.com.

All right. So today’s episode, I’m actually kind of excited about this episode.  I got a subtitle for this episode, “Tough Love.”  This is a tough love episode. So if you’re easily offended, you might want to turn this off.

You know, today’s episode is based off the emails I guess.  Based off the emails and comments that I get, both from the people who are participating in my free course and from members of the Epic Pro Academy as well.

One of the most common questions that I get, I mean it’s up there. It’s probably a top 10 question, maybe a top 15 question, but I’ve been getting it frequently recently. It’s something along the lines of my yellow letters aren’t working.  How come?  Why won’t my yellow letters work?

What I find is that most, you know, in fact almost everybody.  They jump to certain conclusions.  They make assumptions.

You know, they’re either this yellow letter doesn’t work in my market. That’s one of the assumptions I get.  Or everybody is doing it so it’s oversaturated.  That’s another assumption.

And I’ve noticed inside of real estate investing or actually real estate investing as a whole.  Newer investors are extremely quick to jump to conclusions with absolutely of no evidence to support their conclusion.

I mean those two I just gave you are perfect examples.  Now another silly conclusion that I hear, this comes a lot, it comes in a couple of different forms. I hear, Matt, if everybody else has joined the Academy and they’re all getting such great success and great results, how do I know if there’s going to be any deals left for me when I join? (laughs)

Or Matt, with the great turn key deals you’re offering in Memphis, how long will you be able to provide these properties?  Because I don’t want to recommend you to any of my associates and you end up not having enough properties.

I mean these are the types of unfounded assumptions that get in your way.  There are others out there. Those are just the examples that come, that I have had recently.

They get in the way of your success. They put you on a never-ending journey to find the new way to do it that no one else is doing it and no one else has discovered yet.

They’re always looking for that new way.  Well if there is a new way, I don’t believe there is a new way. There is essentially just the basic of doing this business.

There are little tweaks and new onsets but there is not a new way of doing this business.  Buying and selling is done in the same way regardless of what the product is.

And if there happens to be a new way, you’re probably going to hear about it from someone that’s selling it.  The reason they’re selling it is because now it’s more lucrative for them to sell it than it is for them to actually apply the strategy.

Just keep that in mind. Get off that journey looking for the new way, the easy way to do things.  You’re probably looking for that edge. I mean it’s okay to look for an edge but stop suspending all of your activity looking for it.

Stop assuming.  Stop making these assumptions. I mean we all know what happens when people assume.  Right? Yep. You got it.  You know the rest.  That’s what’s happening to you if you’ve ever thought anything along the lines of what I’ve just said.

And you know, one of my favorite quotes of all time is those that say that it can’t be done or being passed up by those that are doing it.

That couldn’t be anymore true than in real estate investing.  When people say you can’t invest in real estate with no money or credit, they say that to me all the time.

I just bought a 14-unit building in Memphis without one dime of my own penny or one dime of my own money and not one point of my own credit.  I’m getting an infinite return on that building. I didn’t use any of my own money at all.

I love it when people tell me, you can’t do that.  Don’t let people tell you, you can’t do it either. Well actually this is something that’s really important to you.  Those that say it can’t be done is being passed up by those that are doing it.

So let’s look at these assumptions.  Let’s get back on track.  It doesn’t work in, or it doesn’t work in my market or everybody is doing it or there won’t be enough deals for me.

I mean regardless of which one we address.  My question to you is, I’m just going to speak this to you for example.  Just role play with me. Say you’re the one who has these assumptions.

Maybe I’m preaching to the choir but based off the comments I get, I don’t think everyone in the audience right now is the choir, but there is, we’re going to get around to wire yellow letters aren’t working.

My question to you is if, you know, you think this doesn’t work in your market or everybody is doing it or there won’t be enough deals for you.  How do you know? How do you actually know?

When I ask that question, well, I tried yellow letters once.  It didn’t work.  Well you tried them once.  Okay?  (laughs) I guess they just won’t work.

Or what my friend, he is doing it so you know, it just seems like everybody is doing it.  Oh so your friend is doing it not everybody.  Got it.

Or this one is my favorite.  There won’t be enough deals for me.  Are you serious? (laughs) Are you serious? Have you seen the National Statistics?

There are 2 ½ million homes for sale right now in the Multiple Listing Service.  2 ½ million.  Most authorities are projecting that the foreclosure crisis is going to last another 3 to 5 years, at least.

At more than 1 million foreclosures per year. A million. How many real estate transactions there are or that is?

I mean how many investors there are. (laughs) I mean investors that are actually doing something?  Not a million of them.  Don’t forget where the deals are. They come from motivated sellers.

Sellers become motivated, why?  Why are sellers motivated?  They’re motivated because of life’s misfortunes.  Something really crappy is happening in their lives.  It’s either death, disease, divorce, it’s a job loss or a job relocation.

That’s just life.  Life happens to people.  Life happens every single day. There will always be more deals to buy than there are investors to buy them.  Always.

I mean, sure markets go up, market go down. There are some markets in United States that are up right now.

There are still a lot that are down.  if that’s your situation depending on your market, you just adjust your strategy accordingly.

There’s an up price.  There’s a down price in every market. There’s a high price and a low price.  As an investor, you just have to identify the low price, buy that low price, and sell it high.  Okay?

So there’s plenty of deals.  This stuff works in every market. Anywhere there are actually real estate. It works in every market.  And uh, what was the other one?

Oh everybody is doing it. No, they’re not.  It might be a lot of people talking about it, but everybody is not doing it. I promise you.

People don’t do nearly as, they don’t do half as much as they say they do.  Okay?  So they’re not all doing it even if they were, there’s still plenty out there.

So those are the silly assumptions.  Okay?  If you subscribe to any of them, you know, stop it or just get out of the business. I mean go find something else to do because if you’re so focused on why it won’t work.

It’s never going to work for you.  You’re only going to find evidence to prove yourself right.

If you’re complaining and commenting on why it won’t work.  Every piece of news that comes up, every blog post, every little thing you might hear on the podcast that just slightly proves you right on why it won’t work.

As soon as you hear someone’s failure story, you’re going to be like, see. I told you so.  It won’t work.  Then you’re not going to do anything.

And what happens if you don’t do anything? You don’t get anything. When there is eventually enough evidence to where you can’t help but change your mind because everybody is actually doing it.

Everybody is succeeding.  Once that happens, you realized that this real estate thing actually does work.  You’ll have missed out on so much opportunity that you’ll probably go into a deep depression so neither one is a good scenario to end up.  Don’t assume in your real estate investing.

There’s a saying that I’d like to operate by, “inspect what you expect.  Don’t assume.  You want to inspect what you expect.  So if you expect the letters might not be working in your market.

You want to inspect that they don’t.  If you expect that everybody is doing it then you want to inspect that they are. If you want to, if you expect that there are not enough deals for everybody to go around then you want to inspect that there are or there aren’t.  Okay?

I mean the assumptions will kill you in this business.  You’ll find yourself in, you know, leaving business, saying something stupid like real estate investing doesn’t work.

Well, yes it does. It works for more people in creating wealth than anything else. It absolutely works.  So the real question is did you work?

That brings me to the topic of the day.  Okay?  Why aren’t my yellow letters working? I was going to get there. It took a little bit of round about path but I got there. So why aren’t my yellow letters working?

All right. So if you expect your yellow letters aren’t working or working as well as you’d like them to be working, if you expect that, let’s go ahead and inspect what’s really going on.

So the only way to truly know if they are working or not, the only way to truly inspect is to track your efforts and your results. You got to track in your efforts and your results.

You can get an actual tracking sheet for your investing activities. You can get that at the free course. I believe it’s under video number 3.  There’s a video there How to Guarantee Your Results or Guarantee Your Success.

I think it’s video 3.  There’s a little link there. You can download the Excel spreadsheet that I use to track my activities or you can just make your own.  Whatever.

So the first thing you want to track is how many letters are you sending out?  How many are you sending out?

Before you decide that they don’t work, let’s see how many are you sending out?  You are sending out 100?  .. sending out 1000?  Or 10,000?  You know, how many?

One of my favorite TV shows right now is Gold Rush.  I don’t know if you guys have seen that. I love that show. I think it’s on the history channel.  It’s about these guys up in Alaska digging for gold.

I watched these guys all the time. I even record it. I watch it over and over again. I find it very entertaining and very relaxing. Most of them are somewhat small operations.

They’re beginners. You know, they’re just getting started. They’re going up there with this gold fear I guess you would call it.  To go up there and see if they can actually dig for gold.

I mean with the price of gold today all of a sudden has become a viable occupation again for some reason.  It’s worth a lot so I guess that’s a good reason.  But, you know, these guys that’s small operation, they got a tractor or maybe two figuring out how to do this.

They’re learning their way around the mountains, around the rivers.  They’re still learning how the equipment works, how to even design it, and build the equipment.  They’re constantly modifying their approach and strategy.

Most of them, they are not finding a whole bunch of gold. I mean very little in fact. I mean some days they get a good hit but I mean here and there they get a good hit, but most days they come up with almost nothing so I’m kind of bummed because I love the show so much but it’s on hiatus right now so it’s in between seasons.

But there’s a new show that just started called Gold Fathers. It’s based off the same premise but it’s, they got a lot more experience.  They’ve got much bigger operations.

I mean these guys got years and years of experience behind them.  They’ve got major excavation equipment, multiple bulldozers, and I mean they’re really moving some earth  around looking for their gold.

These guys are finding gold. They’re finding 60, 70, 80 ounces.  They’re considering it like a slow day or just an average day. I mean 60 ounces times, you know, $1500 an ounce.

Do the math.  That’s a lot of money they find in one day. They’re finding 10 times the gold as the guys on the other show are finding.

So on one show, they’ve got one tractor to dig with.  The other show has multiple tractors to dig with.  I think one of the teams on the Gold Father show has 6 tractors to dig with. No wonder they seemingly strike it rich every single day.

So what I am getting at is I’m going to ask you when it comes to your yellow letters, are you using 6 tractors or just one tractor or are you just using a little pan? I mean you got this little pan and you’re bent over the creek with your little pan and just sloshing the dirt around and looking for the gold?

Be honest with yourself.  You know, no one’s listening.  No one’s going to know. Just be honest with yourself.  Track how many letters are you actually sending out before you ask why aren’t my yellow letters working?  Okay?  So that’s the first thing you want to track.

The second thing, the next thing you want to track is how often are you sending your yellow letters out?  How often are you sending them out?

You see there’s only one way to get motivated sellers to call you.  There’s only one way to get motivated sellers to call you.  That is to keep your message consistently in front of them.  Keep your message consistently in front of them.

The operative word here is “consistency” (or) “consistently.”  You’ve got to treat your investing like a business.  You’ve to treat it like a business. I mean you just don’t get up and go to work one day a week and expect to get paid the whole week.  Right?

No.  you’d be fired. That’s not how a business is run.  And you can’t, you know, do a whole months worth of effort into one day and expect to get paid for the whole month.  Right?

That wouldn’t work either. You can’t diet for one day and expect to lose 30 pounds. You can’t plant your cornfield and expect to have a crop next morning.  No, you have to be consistent in your activities, the right activities.

You’ve got to go to work. You got to go to work 4 to 5 days a week to get paid for that whole week.  You’ve got to do that every week to expect to get paid for that month and expect to get paid overtime.

You’ve got to diet everyday to lose the weight then you got to keep dieting to keep the weight off.  You got to keep watering that corn to get that crop to sprout up.

So check your consistency before you ask why aren’t my yellow letters working. How many are you sending out? How consistently are you sending them?

Now if all that’s intact, you are sending out a significant amount of yellow letters and you are sending them out consistently.  Now let me ask you, how long have you been sending them out?

That’s the next thing you want to track, how long?  You want to do this overtime.  I mean were you consistent for a month? Or you’re consistent for two months?

Marketing is a long term venture.  It’s not what so many people try it.  It’s not a let me give it a shot to see if I can get a deal done and make some money.

I mean there’s fluke that can work but it’s not what happens most of the time.  I’ll explain why a little bit more in a minute.  You got to track your activities.  How many, how consistently, and how long?

I would say your yellow letters need to be, you know, that whole marketing plan needs to be at least a 3-month plan, at least a 3-month plan for you to determine whether they’re working for you or not.  At least three.

I’d push it to six. I’ll explain why in a little bit more of why you would want to go that long also and why for some people it might be just three.  Other people might be six.  Other people might be a whole year.  I’ll get back to that in a second.

So let’s say you are sending out a measurable amount.  Let’s say at least 20 a day. 20 letters a day.  That’s the minimum.  Okay?  Remember our Gold Father guys.

They’re not using a pan for their gold.  They’re using six tractors to dig for gold.  The pan that would be the minimum.  Okay? So 20 letters.  That’s the minimum.

And say you’re sending them out 4 to 5 times a week.  You’ve done that for at least 3 months.  You’re still not getting the results that you want.  Well the next thing that you want to track is before you say your letters aren’t working.

How many phone calls are actually coming in? You got to track that too.  How many phone calls are coming in?  Now if your phone just flat out isn’t ringing, okay.  Then we can start to look at where the problem is.

Now we can actually inspect, we got something to inspect.  I mean what are you writing on your yellow letter. We want to inspect that.  Who are you sending your yellow letters to?  We want to inspect that.

We have something to inspect now if the phone isn’t ringing at all.  Now I mean we actually got something to inspect there.  However, if you’re sending the minimum amount and you’re sending them out consistently.

You’ve sent them out consistently for a few months.  Your phone is ringing no doubt.  Yellow letters work.  Your phone will ring. I promise you it will ring.

I mean I receive about a 13% response over a year’s worth of tracking, about a 13% of response.  I find that 10% to 15% is the norm, but on some months I get 25%.

Other months I get 5%. Even if you’re only getting a small 5% response over the whole 3 months, you know you’re still beating the direct mail industry by 5.

I mean that industry gets about 1% to 2% return.  That’s how powerful the yellow letter is so even a 5% response is a success. It’s working.

I mean because the best case scenario of the alternative of that 1% with the other stuff I mean that sucks. You wouldn’t want to work on 1% so don’t be upset with 5% if that’s all you’ve got.

They’re working but if you are just getting 5% look at what you are writing in your yellow letter and who you are sending it out to. I mean that will be definitely be worth to look and certainly you can inspect that if you want.

All right? So now if everything we’ve discussed so far is checking out and your phone is ringing, now you want to track how many of these people are you actually talking to.

I mean you were actually on the phone discussing their situation, those people. How many are you actually discussing their situation? You need to track that.  Typically this is where the yellow letter breaks down for people.

I mean they’re either not picking up the phone when it rings or they’re not returning the messages. One or the other. I see this a lot.

I see people blow thousands of dollars in marketing thinking that all they have to do is send the letter and they’re going to get great deals.

No. It doesn’t work like that. You actually have to speak to the people.  Okay? I know that’s probably so obvious.  It’s so painful.  Why are you wasting my time talking about this?

It’s so many people don’t even make the calls. They’d send out all the yellow letters. They think it’s not working because they’re actually speaking to the people so you got to track that so make sure you’re actually speaking to all of the people that are calling you.

This is why I like to carry around a dedicated phone that I use just in my marketing. I mean with that little dedicated phone, the only place that phone number is posted is in my marketing materials.

That phone has a very unique ring so I know. When I hear that unique phone ring, it’s time to do business. If I can’t in any way, I drop whatever I am doing and I go answer that phone.

I mean what is the best time to do that business? The best time to do this business is when they’re calling you because they’re calling you on their time. It’s convenient for them.

You’re going to have their undivided attention right now because they’re calling you. They’re ready to talk about it.  So do whatever you can to pick up those calls when they call you.

I mean if you let them leave a message and you do actually call them back, you see you’re not actually calling them back on your time. A good time for them to talk doesn’t always in fact, well actually rarely doesn’t align with your time so you get a less result.

I mean certainly when things pick up for you when you’re doing deals, go ahead and set some office hours. Set a time when you are going to call them back on your time.

You know, you’ve earned the right to do that.  You don’t have to be a slave to these incoming calls forever, but if you’re trying to get your business started and get it started fast.

You need to make at least a 90-day commitment to pick up that phone whenever it rings because that’s when they want to talk to you.

That’s when you’re –.  I mean that’s why you’re doing the marketing in the first place.  To get motivated sellers to call you and actually want to talk to you so pick up the phone when they call and track how many times you are actually speaking to the people that call.  All right?

So let’s say you’re listening to this podcast right now, you’re like, check. I’m sending them out. I send them out consistently. I send them out long enough. I’m answering the phone. I’m doing all of that and still no deals yet.

Let’s say that’s your situation.  Well before you say that yellow letters don’t work, my next place I want to inspect is what are you saying to the people when you do speak with them. What are you saying to them?

This is the point where the boys are separated from the men so to speak.  The pros from the amateurs meaning up to this point it doesn’t really take any skill to send out the letters. I mean anyone can do it.

But by all means, real estate investing is a skill.  You see now that you are on the phone with the prospect, now is when experience and skill will make a significant difference in your results.

See when you get on the phone, you’ve got three objectives.  Here are your three objectives.  This is the skill you need to develop. You need to find out why they’re selling.

You need to find out what they want from you in order for them to sell to you.  And three, you have to find out how fast will they sell to you if you could give them what they want. That’s it.

Okay? That’s your call structure. Those are your three basic questions.  You know you got those scripts inside of the free course.  There I give you the exact word for word of what I say.

That’s it.  It’s very simple. That’s the only structure of the call.  The rest of the call is all about building rapport. That’s a skill.  It’s a skill.

Like any skill, it takes time to learn. That might be a bad news for you. It takes times to learn but the good news is it can be learned.  That’s the good news.

But you can’t learn how by reading a book.  You can’t learn how to ride a bike at the seminar. I love that book. You can’t this people skill by reading a book, taking a course, or even listening to a podcast.

I mean sure you’re going to get some great tips from all those sources. You’re going to get some guidance but the only way to truly learn as it is with any skill is through repetition, through practice, lots of repetition.

You’ve got to build rapport.  Here’s why it is so important.  This is why this is so important.  People do business with people that they like, people that they trust, and people of which they have confidence in their competence.

They got to like. They got to trust you.  They got to believe that you know what you’re doing.  All of this has established while building rapport and of the three, of like ability, trust ability, and competence.

I find the most important one is to be likeable. That’s going to get you more deals than just about anything. You got to be likeable. I mean if people like you, they will do business with you.

Now you can’t be a total slime dog idiot that’s likeable and expect to get business. I mean you still need to get all three but being likeable carries the most weight and can compensate for shortcomings of the other two. That’s what I mean. All right?

And I say it in my seminars, I say it in my online course, I say it here on the podcast, and I’ll say it again.  Your most important skill to develop as a real estate investor is your people skills.

That’s your most important skill. It’s not your sales skill.  It’s on how good you can fend off the contract.  It’s not your marketing skill.  It’s not your ability to generate lead skill.  It’s not your Internet skill. It’s not how great your skill at building a landing page.

Because regardless of all of those skills and how you find your deals, at some point, it becomes a people business, you’re going to have to talk to people. At some point during that transaction, you’re getting belly-to-belly, nose-to-nose.

Well it maybe over the phone but you’re talking to somebody.  You’re dealing with another person.  If you want to tweak just one thing in your business to receive the greatest return is to tweak your people skills, to put your focus there, and develop your people skills.

Great book on How To Win Friends and Influence People.  Dale Carnegie.  Probably the only book you need.  Get that book.  It’s not a real estate investing book.  It’s a people skills book but indirectly that makes it very much a real estate investing book.  Okay?  How To Win Friends and Influence People.

You know just a slightest improvement in your people skills is going to give you a significant improvement in your bottom line.  You can’t say that to about any of the other skills involved in real estate investing not to the degree of which I’m speaking (about) your people skills.

Now let’s say you’re doing everything.  You’re doing all consistently. You’ve been doing it for awhile.  You’ve got great people skills.  Before you say your yellow letters aren’t working.

I’d want to inspect how many appointments are you setting?  How many appointments are you setting?  You’ve got to track that too.  How many appointments are you actually running?

You got to track that. I mean believe it or not, you can set appointments all day and you know what? I know this is tough to believe but sometimes the other people don’t show up so you can’t count that as appointment run.  Right?

If they don’t show up, guess what that means?  No deal. I mean sure. You did everything by the book and you’ve been great at it.  You’ve been doing exactly what you’re supposed to do.  You’ve been consistent. You’ve been doing it long enough but no deal.

I mean if they don’t show up then no deal.  I mean if, now if that were the case, I’d want to inspect what are you actually saying to the seller to set up the appointment?

What are you actually saying to the seller to set up the appointment?  I mean if you see a pattern of no shows, what are you saying? Or are they really accepting that appointment? Or are they just brushing you off?

Did they say something like, I’ll try to make it or I’ll see what I can do or I’ll probably be there?  And you are actually thinking you heard an appointment set.  Are you getting confused there?  That’s a place where you want to inspect.

I’ve been through it all. I know how this game goes. Okay? I’ve been coach myself. I’ve made all of these mistakes. I’ve, as I’ve been coaching people through the free course. I’ve been coaching people through the Academy.

I’ve been coaching people through my coaching program. It’s all coming up.  Everybody is the same.  Everybody deals with the exact same thing because the game is the same.

Everybody comes up against the same challenges but all those challenges are overcomeable.  They’re all conquerable.

So after you’re done building rapport and extracting information, you need to determine if there’s a possible deal or not. You’ve got to get skilled at setting appointments.  Okay?

You got to get skill setting appointments in a way that they actually show up to the appointment.  Part of that skill is getting them to want to show up to the appointment.

That’s the only reason that they show up at the appointment is because they want to.  That’s part of the skill so that’s part of more people skills.

All right. So let’s say you got all of that down and you’re actually setting appointments. People are actually showing up.

So before you say your yellow letters aren’t working, I’d like to inspect how many offers are you writing at those appointments? How many offers are you writing?

If there are no offers written, there will be no deals.  That is your primary job as a real estate investor to write offers.

Actually it is one of the primary jobs.  There are basically three.  You must first job number one: generate leads. That’s job number one.  Second, you must set appointments with those leads. That’s job two.

Setting appointments.  And third, you must present offers at those appointments.  That’s job number three.  When I say job number three, writing offers is the most important job.

I mean you can be an absolute pro at jobs one and two but if you don’t follow through on job three, it’s all one giant, big waste of time.  It’s a waste.  You might as well not have done anything.

That’s how it really goes down. You got to write the offer. The yellow letter is just the beginning.  It’s an awesome tool but it won’t do the deals for you all by itself.  The yellow letter’s job is to do nothing but make the phone ring.

That it does.  It does that very well.  It does it very well if you are actually sending them out.  You’re sending them consistently and you’ve sent them out overtime.

I can hear it right now. I can hear it right now though this microphone.  Yeah.  But all the people that called me were crazy.  All the people that called me want full price.  Everybody is underwater.  Everybody is, you know, is unrealistic with what they want. I know. I know.

My personal numbers that I’ve averaged out is that I get about one deal out of 35 calls. 35 times that the phone rings. It’s gone up a little bit but I don’t now if that’s me or I guess I need to inspect that. It wasn’t one out of 30 in my first few months, now it’s averaged out overtime about one out of 35.

Okay? I still get deals of the yellow letters. You know what that means? I got one deal out of 35 calls. That means 33 of those calls,

33 of them were unrealistic in saying weird, wacko people or short sale people or people who wanted too much for their house at 33 of those calls.

So this is why you want to track it. How many of those calls have you received? Have you even receive 33 calls out of those yellow letters? Have you even receive that?

Make sure you’re tracking this before you say that they don’t work. They work really, really, really well.  Okay?

But your expectations just have to be set appropriately. They’re designed to make the phone ring.  Unfortunately, it’s not too –.  What’s the word?

It’s not too much of a discriminating device so everybody is going to call but you’re not looking for those 33.  You don’t care about those 33.  Don’t get frustrated. Don’t get annoyed.

You knew they’re going to call. I just told you that they’re going to call. I’ve told you before.  Those crazy people are going to call you so when those 33 call you.  You’re just like, oh okay.

Yeah.  Matt said they were going to call. I’m glad they called because I guess I got them out of the way now.

Now I’ll look for my next two.  Okay?  So keep that in mind. Now with regard to how many offers you are submitting, this is the big one that you want to track.

This is probably your most important number to track. I mean even if verbally there seem to be no deal at your appointment with the seller, always leave an offer even if they don’t want it.   Just leave an offer.

I like to use a three-option letter of intent but at least leave an offer. Here’s why. A no from that seller today does not mean a no tomorrow.  Got that? A no from that seller today does not mean a no tomorrow.

See when you’re speaking with motivated sellers; remember they are motivated for a reason.  They are motivated because typically something pretty crappy is going on in their lives.  And you don’t know what is going to be piled on top of that pile of crap tomorrow.

When things start going bad for people, you know, crap tends to build up.  I mean the thing that lands on the top of that pile tomorrow might just be too much for them to bear. That might be the straw that broke the camel’s back so to speak.  Now they’ve changed their minds.  And then what happens?

I mean when that happens, it happens all the time.  Who do you think they’re going to call?  They’re going to call the person that left an actual written offer behind.

So your big goal is to spread around as many offers as possible.  You want to spread as many offers around town as possible.

You want to do that too consistently.  And you want to do that too long enough. If you do that, you won’t be asking me why your yellow letter isn’t working.

I mean imagine if you averaged setting one appointment a day, just one appointment a day. You can average that.

Some days you do three.  Other days for three days in a row, you don’t do any. But you average one a day.

Say you took weekends off.  So that’s four times a week times –.  Let’s say you set, let me make the math simple so 20 appointments a month.

Okay? 20 appointments a month.  And you left an offer with each one of those appointments.  That would 20 offers in one month.  Right?

Then say after three months go by because you’re going to do it long enough.  Right?  You’ve got 60 offers floating around your market.  60 offers floating around.

One of those motivated sellers, at least one; their life took a bigger dump than when you met them when they needed the help the first time. So now they’re in more trouble. They’re more motivated now.

Because you built rapport, because you built rapport, because you’re likeable and you’re the only one who left an offer behind.  You will be the only one because nobody else does this.

I know this because this is how I got so many deals because nobody else did it.  And because you left the offer behind and you’re the only that did, you will get the call. You will get the call. Now imagine if you did this over 6 months or even a year, right? Because you’re not in this for just a month.  Right?

This is your new career.  This is what you’re going to do to create your financial freedom.  This is going to take commitment.

So you’re going to be in this for at least a year. If you did that a year, that’s 120 offers.  Did I get that right?  Well that’s in 6 months.  That’s 240 offers in a year.

It would be a mathematical anomaly for you to have not completed at least a handful of deals. A handful of real estate deals even just basic wholesale deals are higher than the average median income in the United States.

It would be a mathematical anomaly for you not to do deals. I don’t know what the number is. I mean I have done 80 in the last 18 months.  (I’m) doing exactly what I just told right now.

I mean this is how I did it.  So never leave an appointment without leaving an offer.  I know this works.  You know why? Because I tracked it. I have the numbers. I can see it.

You want to leave that offer at the appointment even if they say they don’t want it.  Leave the offer. Do that and your yellow letters will work just as you were told that they would? I promise.  All right.

So until next time. As a very wise person once said, “consistency requires you to be as ignorant today as you were a year ago.” (laughs) I thought that was funny.  There’s some truth in that but I’m not going to leave you with that one today. Okay?

That’s not what I want to leave you today.  Here this is better.  “Part of courage is simple consistency.  Be consistent in your business and your income will be consistent.”  To your success.  I am Matt Theriault.  Living the dream.

(Voice Over):  Thank you for spending this time with Matt Theriault and the Epic Real Estate Investing podcast.  When you have time, stop by iTunes to leave your comments and let us know what you think of this show.

And if you haven’t done so already, get started investing today by visiting FreeRealEstateInvestingCourse.com to access Matt’s free course on how to deals, no money required.  Until next time.  To your success, to your success, to your success.

[End of Transcript]