How to find Motivated Sellers of apartment buildings??

2 Replies

Could someone please tell me the best direct mail or any other marketing campaign that will put me in touch with motivated sellers of apartment buildings??

Thanks,

God Bless,

Matt

@Matthew Young

Find a list you can mail too. I am fairly certain that listsource has matching criteria for apartment buildings. I would suggest being as professional as possible when marketing to potential sellers and use a more business professional typed letter instead of the hand written font yellow letters that the majority of people will use for SFRs. I can imagine that this form of marketing will be tough and yield very little fruit, especially with the more units the apartment has. I am under the impression that most buyers for apartment buildings find their deals through brokers.

Originally posted by @Matthew Young :

Could someone please tell me the best direct mail or any other marketing campaign that will put me in touch with motivated sellers of apartment buildings??

Thanks,

God Bless,

Matt

"Motivated" is a variable that needs to be defined. Its almost laughable when I read "Motivated Seller" in listing information when the asking price is 20-30% above market. 

Anyway, if you're looking for 5+ units you should be connecting with local brokers in the marketplace you are looking to transact. These brokers will have access to all of the on-market and off-market buying opportunities. 

Here are some points for getting the most out of working with a broker:

1. Clearly define what you want from them; property location, unit size range, price range. 

2. Provide them with economic metrics that are acceptable to you e.g. 4,5,6% CAP rate, value add opportunity, only under market rents, mismanaged property, physical obsolescence, etc., if you are looking for an undervalued property that has a 'story' then let them know that early in the conversation. By doing so you'll save yourself time because they won't bring you every sub 4% CAP building on the market hoping you'll have a change in heart and will buy a deal at above retail.

WRITE AN "ACQUISITION CRITERIA" 

SIMPLY ITS A FLYER AND YOU CAN USE #1 & #2 ABOVE AS A GUIDE. THIS MAKES IT EASY TO EMAIL, FAX, OR HAND THE FLYER TO BROKERS. I WOULD ALSO INCLUDE IT IN AN "ABOUT US" PAGE ON A WEBSITE, IF YOU HAVE A WEBSITE. 

ALWAYS BE PROFESSIONAL IN YOUR APPROACH AS AN INVESTOR AND THEN EXPECT PROFESSIONALISM BACK IN RETURN.

3. "If they ask" be prepared to share with them how you will structure the purchase e.g. conventional financing, 1031 exchange, creative financing, etc. If they know you can perform then they'll gladly perform for you. They're in business to make money too and will have just as much motivation to get deals done. Notice I said, "If they ask" if they don't then no need to bring up the topic. 

4. Be responsive. Take their call or answer their email as it is received. If they know you are "motivated" they in turn will be "Motivated' to find "Motivated Seller" deals on your behalf.

 5. Treat them as if they were your partner in the deal. Although they won't have any skin in the game, so to speak, they will be appreciative and as the relationship grows and matures they can truly become a transactional partner and just as important as your attorney or accountant.

6. Try working with more than one broker until you find the right broker. The right broker isn't necessarily the one who is easy to talk to or has something in common with you. The right broker is delivering information on...

Be realistic in your approach to buying property. I think anyone would 'want' to buy a property for 25% of market value, but that would not be a realistic instruction to give to a broker. Instead what you may want to do is follow items #1 and #2 above.

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