Realtor · Albany, OR · Member since 2014 · 128 posts · 30 votes
Hi all! I have found a property that I am interested in. The property is not up for sale, but after some research, I have found that the owner is behind on property taxes. Also, the owner lives out of state. I am curious if anyone has any advice on addressing the owner by mail about possibly selling the property without coming across as snooping into his business.
Rental Property Investor · Raleigh, NC · Member since 2018 · 179 posts · 192 votes
8y
Keep it simple. Send a short, handwritten letter telling the owner that you're interested you'll be interested in buying his property should he ever wish to sell. Don't mention that he is behind on his property taxes. He'll already know that and just feel that you've been snooping. Mention the fact that he'll be saving on Realtor commissions should he sell privately, plus he'll have tax advantages should he wish to offer some seller financing, i.e. not getting hit with capital gains tax, etc. A win-win for the both of you. However, with that said, keep in mind that you've only get a very small chance of him contacting you. Keep driving your neighborhood, locate properties you like, and, if you have the opportunity, simply ask one of the tenants, "Who do you call when there's a problem". A lot of times, especially on smaller properties that you're going to be interested in, the owners self-manage and you might be able to get the owner's phone number. Worst case scenario is that you get the property manager's number. Then call the PM and ask them if they have any owners who are looking to sell. Good luck!
Realtor · Albany, OR · Member since 2014 · 128 posts · 30 votes
8y
Thank you Chris! I totally agree. I was just hoping I could get some pointers on what the letter should say. :) I kinda have a template in my head, but just looking for ideas as well. I see you are from Oakland. I grew up in the Bay Area. Love it there... love Oregon as well. Again, thank you! Any push is a push towards my goals.
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
8y
Samantha,
DIrect mail to find deals is a very common method. I am NOT a good direct mail person. But there have been some excellent threads here about doing direct mail and what to say.
Hi there Stephanie. I did revise the letter a little and it was sent out. Unfortunately, I just got it back as "Return To Sender". :( I got the landlords address off of the county records. I am going to go to the property and talk to a tenant and see if they will share any information with me. I have also revised that letter just a little for residential properties and have just sent those out. No response yet... it has only been a few days.
So I just typed it and printed it instead of handwritten. I have done a lot of reading about the yellow letters and feel that if I am sincere and "act" human vs business like in the letter, it will hopefully still get their attention. Trial and Error they say. lol
Sorry I do not have more to report. I would say, do what makes you feel comfortable... yellow, green, white paper and typed, printed or whatever. Give it a shot!
Rental Property Investor · Raleigh, NC · Member since 2018 · 179 posts · 192 votes
8y
Keep it simple. Send a short, handwritten letter telling the owner that you're interested you'll be interested in buying his property should he ever wish to sell. Don't mention that he is behind on his property taxes. He'll already know that and just feel that you've been snooping. Mention the fact that he'll be saving on Realtor commissions should he sell privately, plus he'll have tax advantages should he wish to offer some seller financing, i.e. not getting hit with capital gains tax, etc. A win-win for the both of you. However, with that said, keep in mind that you've only get a very small chance of him contacting you. Keep driving your neighborhood, locate properties you like, and, if you have the opportunity, simply ask one of the tenants, "Who do you call when there's a problem". A lot of times, especially on smaller properties that you're going to be interested in, the owners self-manage and you might be able to get the owner's phone number. Worst case scenario is that you get the property manager's number. Then call the PM and ask them if they have any owners who are looking to sell. Good luck!
Yes Yes.. thank you David. I did keep it very simple and did not mention the back taxes. I agree, he is already aware of that. :( As for driving the neighborhood, doing that and taking notes. I have been collecting my little list of "distressed looking" homes and then Ill get their names and send out letters. I know it just takes one response to get the ball rolling! :) David... all great information! I do like the idea of mentioning the agent vs private idea. That is something that I am aware of, but didn't think about putting in the letter. Mentioning the tax advantage may catch their attention too. lol All great info and I totally appreciate it. I've been so nervous to get started for the last 10 years... yes 10 years :'( and have decided I'm done with the fear and get busy! I am so ready to give it a try and see how it goes. Have a great day David!
Rental Property Investor · Raleigh, NC · Member since 2018 · 179 posts · 192 votes
8y
NP, Samantha. Happy to help. By the way, if I was you I'd bin the letter idea. By far the best way for you to get in contact with a landlord is talking to the tenants. If you're not comfortable going by yourself, take a male friend with you and drive around your target properties on a Saturday morning. Simply walk up to any tenant you see and ask them if they like living there. Tenants love talking about their landlord (for good or bad) like investors like talking about real estate. This way you'll get an idea of how involved the owner is. If he self-manages and the place looks like a dump you could be on to a good deal. Again, simply ask the tenants who do you call when you need something fixed. If you get the landlord's number (it could well be a cell phone) send him/her a text. Don't call because they're unlikely to answer the call if they don't know who's calling. Just say who you are and you're interested in buying his property if he's interested in selling. You only need one deal to be bitten by the bug! Good luck and much future success to you.
Realtor · Albany, OR · Member since 2014 · 128 posts · 30 votes
8y
@David Cruice thank you again! I truly appreciate all your input. Is is ok to PM you in the future if I have any other questions? If not, that is ok. I don't want to be a bother to anyone. I actually have a question now, but a little pressed for time. Again, thank you for your time David.
Rockland County NY · Member since 2018 · 11 posts · 1 vote
8y
@davidcruice
Thank you for taking the time to give great insight as well as nice tips to writing a land Lord letter. I am doing the same as @samathalotti . Driving for dollar and doing back research. I have not purchase my first investment property yet but on my way soon!
Rental Property Investor · Raleigh, NC · Member since 2018 · 179 posts · 192 votes
8y
NP @Stephanie Alcin. Just paying it forward. Like @Samantha Lotti feel free to DM me if you any questions. Couple of more tips for you: (1) If you haven't gotten pre-qualified for an FHA loan on up to 4 units start working on it. It will be one less thing to do should you lock in a deal. (2) Use Craiglist to find off-market small multi-family deals in your area. I'm in discussion with an owner selling 12 units (6 side-by-side duplexes) that I found no CL. You'll be surprised what you can find on there. Hubzu.com is also a good source for small MF but you're fighting the crowd on those deals.