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SHOW NOTES FOR EPISODE 105 -MASTERING SELLING SKILLS FOR REAL ESTATE INVESTING SUCCESS
If you’re in real estate, you’re in sales! Whether you’re buying or selling a property, raising money or just presenting yourself, you’re always selling. In this episode, veteran real estate sales guru Tom Hopkins shares simple tips and techniques that directly translate into business success.
What You Will Learn
- How wearing a silver Lamé suit can get you the attention you need to motivate you to success
- How leveraging his amazing accomplishment of selling 365 homes in one year helped him launch a lucrative career that thrives even today
- By becoming a student of selling, you can be successful in any business endeavor
- How the selling process really begins with the word “No”
- 10 words you should never use that cost you sales
- Three questions that help you always close a sale
- A one word answer you should always shout out, whether things are going terribly or fantastic
About Our Guest
Tom Hopkins
Tom Hopkins is known as America’s #1 “How-To” Sales Trainer. Over 5 million salespeople, entrepreneurs, and sales managers on 5 continents have benefited from his live training events.
He perfected his selling skills during his 8-year real estate career in which he received numerous awards. In his last year selling real estate, he sold 365 homes – an average of one per day – something that was unheard of at the time and has rarely been matched.
Since that time, he has developed and customized his effective selling skills for over 350 industries. He has authored 18 books on the subjects of selling and success. Over 2.9 million copies of those books have been read by sales pros the world over. He is also the 2013 recipient of the Lifetime Achievement Award from the National Academy of Best-Selling Authors and he’s been recognized as the #1 Sales Guru 2 years in a row by Global Gurus.
More About Tom
- Only attended 90 days of college
- Became construction worker
- When Tom was 19, his father recommended that he get a real estate license
- Failed real estate exam three times but finally passed
- Tom believes “To be a happy person you need to take your talents and find a niche where you can do something you really love to do”
- He defines work as “anything you’re doing when you’d rather be doing something else.”
His Challenge Getting Started in Real Estate
- He was only 19
- Didn’t have a car (just a motorcycle)
- Didn’t have a suit
- No broker wanted to hire him
- Finally, one broker decided to give him a chance
- He showed up on his first day at work in the only suit he had from a rock band he played drums in (it was a silver Lamé suit with a purple velvet collar).
- When Tom walked in, the broker who hired him was in a sales meeting with 12 agents, stopped the meeting and said, “All you guys listen up. This is our newest sales associate. If this kid, just turning 19, can make a living riding a motorcycle, wearing that awful band uniform, I expect all of you to get rich.”
- Started attending seminars
- Inspired to also start investing in property – set goals for how many homes he would buy
- As he made money, he bought homes and rented them, then traded up to a big apartment building in Scottsdale, Arizona
Developing His Sales Expertise
- In his real estate office and a young guy (23 years old) drives up in a beautiful Lincoln Continental
- Told him about a mentor he had named J. Douglas Edwards (the father of American selling) and he is having a 3-day seminar
- Went to his seminar
- Learned closing techniques
- Bought and studied all of his sales training materials
- Found that the 7 basic fundamentals of selling are the same no matter what
- Became a student of selling
- Internalized phraseology
- What to say when a person says something
- Responses to objections
Selling Begins with the “No”
- Most people don’t like selling because they have a fear of being rejected
- You can’t sell until you get the “No” that you have to turn into a “Yes”
- Selling begins when they say “No”
- You’ve got to embrace the rejection
- How to turn the “nos” into “yeses”
Selling 365 homes in a Year!
- At 23, Tom sold 365 homes in a year
- Because of his accomplishment, he was asked to speak at the Los Angeles convention of the National Association of Realtors
- He was terrified
- Supposed to speak at a break-out session in front of 100 people but when the keynote speaker was delayed, he was asked to speak in front of 5,500 people
- He stepped out on the stage and told everyone “there are 10 words that you and your teams use that are costing you sales.” “Take out your business card and write these on back of your cards.”
- When he got back to his office, his phone started ringing off the hook as people wanted him to speak at their offices
- Ended up speaking for the next three years
- Wrote a book of what to say in sales situations – became NY Times best selling book
Overcoming Sales Jargon
Don’t Say Say
Price Total Investment
Down Payment Initial Investment
Monthly Payment Monthly Investment
Contract Paperwork or Agreement
Buy Own
Sold Pride of Ownership
Deal Opportunity
People want to own, not be “sold”
Three Questions That Will Always Help Close the Sale
- Become a “Master Asker”
- There are 62 Questions you need to know how to ask
- Three Key Questions
- A “Tie-Down” Question – a Question at the end of a sentence that demands a “yes” response
- “Isn’t it?”
- “Shouldn’t it?”
- “Haven’t I?”
- “Doesn’t it?”
- “Wasn’t it?”
- “Didn’t I?”
- “Couldn’t it?”
- “Can’t you?”
- Won’t you?”
- “Hasn’t she?”
- Use the question with a little nod
- Build the “Yes” momentum
- A lot of tiny “yeses” makes it easier to get the “major yes”
- The “Alternative of Choice” Question
- Present a question with two answers, with either answer helping to carry the major decision
- For an appointment, don’t say, “When can we get together?” as “My time is somewhat flexible, I can meet today or tomorrow?” or “Would you like to meet today before 5 or later at 6?”
- The “Involvement Question”
- A question the buyer have to ask themselves after they’ve gotten involved
- For example, a person sees a home but the child’s room is a terrible color and you would ask, “What color would you pick for this room?”
- Before you can sell, you need to believe in and have a “passion” for your product!
- Shared Wayne Gretsky’s comments that you need a passion for winning, losing and just doing!
- A “Tie-Down” Question – a Question at the end of a sentence that demands a “yes” response
Real Life Situation – Bill has two phone numbers – one for an abandoned home and another for a run-down apartment
- Tom’s advice on how to approach the people
- Best to meet them eye-to-eye, if possible
- Say you are in business in the community or have qualified friends
- Ask, “Can I see your property?”
- Establish good rapport
- Follow-up next day with hand-written thank you note
- Follow-up, keep in touch
- Continue to keep your eyes open
Biggest Mistake
- He did not search for a mentor
- He didn’t look for a business that he had a real passion for
- He didn’t build a network. He now believes in building a strong network. This is how he recommends to do it:
- He recommends going to your local Chamber of Commerce
- Ask for the top 3-5 companies in your area
- Contact those companies and ask them for their top 3 people
- Approach those people and network with them to exchange leads
Biggest Success
- The year he sold 365 homes in one year
- Conditions were ideal:
- Interest rates dropped
- Buyers were everywhere
- Had great properties
- Closed last sale on December 27
Advice for Old Dawgs Interested in Getting into Real Estate Investing but Uncomfortable With the Sales Aspect
- He recommends his book “Mastering the Art of Selling Real Estate”
- He also has a free resource page on his website
What’s Next in His Business?
- He calls retirement an “early death” because he doesn’t think that people who are “retired” live as long as those who keep working
- He’s going to continue to do seminars.
- His next 2-Day Sales Academy is in Dallas, TX, Fri-Sat, September 15-16 at the Hyatt in Dallas
- His company is celebrating 40-Year anniversary this year
- Family focused
- Looking at new ways to help people personally and professionally
Rap-It-Up
- Favorite real estate book : His book: Mastering the Art of Selling Real Estate by Tom Hopkins, Think and Grow Rich and books by Norman Vincent Peale
- Favorite business book (other than your own): How to Win Friends and Influence People by Dale Carnegie
- Most valuable web site for success (other than your own): Zig Ziglar’s website: https://www.ziglar.com/
- Favorite quote: “I must do the most productive thing possible at every given moment”
- If you had to start all over, knowing what you know, and you only had $1,000, what would you do to re-launch your business? “Talk to local homeowners and business people and tell as many people as possible that I am starting up a business and is looking for quality people that might be interested in joining me. Quality activity will generate breed quality productivity. Follow-up with those who are interested. Get people to do business with me.”
How to Reach Tom
- Website: TomHopkins.com
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