Strategy for selling townhouses? 18 units in Clemson, SC
Investor · Clemson, SC · Member since 2016 · 11 posts · 1 vote
Hey folks -
I just wrapped up a project rehabbing and renting a group of townhouses in Clemson, SC. There are 3 buildings in all - 8 units and 4 units sharing a parking lot, and 6 units nearby - and I have them all listed together (18 unit deal) or separately (12 and 6 units separated). I have a little inbound marketing going with FB combined with whatever my realtor is doing (mostly MLS syndication, I believe) and was wondering if anyone else has had luck doing outbound marketing and sales to investment companies and other fiduciaries? Or any other marketing/sales strategy for moving this type of property.
Thanks in advance!
https://www.facebook.com/CreekSide-and-PawPath-Cash-Flow-Property-for-Sale-1839856436296554/
@Levi T. - great idea. I thought about a direct mail approach, but was unsure about 2 things:
1 - How effective is it? Based on your response, it sounds like it would resonate with you. Is it as simple is opening with the basics (i.e. "Hi - I'm reaching out to you because you <insert metric // "fit the profile"> and I have an opportunity you may be interested in." and include a few details with directions to more online.) and giving contact info? Do you have a recommendation on how you would prefer to see this info presented in a cold-call type format (unsolicited mail, phone call, etc.)? My goal is to develop relationships with folks that fit this profile so I don't want it to come across the wrong way.
2 - How efficient is it? In some areas, I'm sure the information is easier to get than others. In Clemson, it might be like pulling teeth to get this info, but it is certainly worth pursuing. I'll try a couple methods out and see what I come up with.
Thanks in advance for the feedback.
It's very affective, but I would not point them to online, I would give them as much details in the letter. Have to remember most bigger landlords are older, they will look at the deal and call you or toss it, so you want to try and give them as much info as they need right there and get them to call you. Even a simple letter introducing yourself and telling them how many units you have and where, then asking them to call you if they are interested in buying it. They will call, and at least then you can see if your price is workable, and adjust as needed.
I have good data from the local counties, I can search it in a minute flat and tell you who is who in my area, so I'm sure your country has something. If not, try the good old boy network, everyone knows anyone who has plenty of properties... just ask a few older real estate folks that been around a while, they know!
Disclosure: I have never sold a deal this size.
However, I see a lot of them marketed. Mostly poorly.
This is a B2B transaction - market it as such. Nice graphs, solid, easy-to-read numbers, and realistic operating statements. I see a ton of these size deals that have financial statements which leave my very skeptical.
Make it so someone who is savvy can understand why this deal is the best one for them without hiring an army of lawyers and accountants. Be concise, clear, and straightforward.
Touch on the points that most agents are either too lazy or un-informed to do. Depreciation schedules, HVAC/Mechanical useful life schedules, etc. Think like a successful landlord.
Good photos help a lot as well.
Thanks, Darwin. This is great feedback.
Re the B2B transaction - I've been dealing with residential deals for the last 10 years or so and realized this was a different animal for sure, hence the marketing strategy geared more towards investment companies fiduciaries - or any person/entity that is making decisions with OPM. Luckily, we operate our own management company and have been compiling an extensive packet of materials to share with investors. I'd rather over share than under share considering our goal is to develop strong relationships with people as opposed to making a quick buck.
And you can't be more right about photos. We have a couple short videos as well that have helped display the properties well.
Thanks again for the feedback!
You may consider a marketing session.
Where do you want your equity to end up?
@Zach Henderson using MLS to market a commercial deal is not the best strategy. Most residential agents won't know how to handle, market or negotiate a deal like that.
I'd suggest you find a local commercial agent that specializes in small multifamily properties and list it with them.
A good commercial broker might even get buyers from their clients database w/o marketing to the public (avoid the tire kickers that will no doubt flood you otherwise)
Hey folks -
I just wrapped up a project rehabbing and renting a group of townhouses in Clemson, SC. There are 3 buildings in all - 8 units and 4 units sharing a parking lot, and 6 units nearby - and I have them all listed together (18 unit deal) or separately (12 and 6 units separated). I have a little inbound marketing going with FB combined with whatever my realtor is doing (mostly MLS syndication, I believe) and was wondering if anyone else has had luck doing outbound marketing and sales to investment companies and other fiduciaries? Or any other marketing/sales strategy for moving this type of property.
Thanks in advance!
https://www.facebook.com/CreekSide-and-PawPath-Cash-Flow-Property-for-Sale-1839856436296554/
Do you have the technology to pull a list of larger landlords in the region based on number of homes they own? Maybe you can ask the country to pull that data for you.. That's what I would do. I buy stuff like this all the time in my area, so you must have someone in your area that's doing the same, and all you need to do is write them a letter.
@Levi T. - great idea. I thought about a direct mail approach, but was unsure about 2 things:
1 - How effective is it? Based on your response, it sounds like it would resonate with you. Is it as simple is opening with the basics (i.e. "Hi - I'm reaching out to you because you <insert metric // "fit the profile"> and I have an opportunity you may be interested in." and include a few details with directions to more online.) and giving contact info? Do you have a recommendation on how you would prefer to see this info presented in a cold-call type format (unsolicited mail, phone call, etc.)? My goal is to develop relationships with folks that fit this profile so I don't want it to come across the wrong way.
2 - How efficient is it? In some areas, I'm sure the information is easier to get than others. In Clemson, it might be like pulling teeth to get this info, but it is certainly worth pursuing. I'll try a couple methods out and see what I come up with.
Thanks in advance for the feedback.
@Jason Dillard - I've set up a couple appointments with marketing folks to get ideas. I agree that working with a marketing professional could be beneficial.
In terms of the goal, if I understand your second questions correctly, we would prefer to sell off all of the units, ideally by building instead of individual units, and retain zero ownership and equity. With that said, we might sell off a portion and retain the rest given their profitability.
@Levi T. - great idea. I thought about a direct mail approach, but was unsure about 2 things:
1 - How effective is it? Based on your response, it sounds like it would resonate with you. Is it as simple is opening with the basics (i.e. "Hi - I'm reaching out to you because you <insert metric // "fit the profile"> and I have an opportunity you may be interested in." and include a few details with directions to more online.) and giving contact info? Do you have a recommendation on how you would prefer to see this info presented in a cold-call type format (unsolicited mail, phone call, etc.)? My goal is to develop relationships with folks that fit this profile so I don't want it to come across the wrong way.
2 - How efficient is it? In some areas, I'm sure the information is easier to get than others. In Clemson, it might be like pulling teeth to get this info, but it is certainly worth pursuing. I'll try a couple methods out and see what I come up with.
Thanks in advance for the feedback.
It's very affective, but I would not point them to online, I would give them as much details in the letter. Have to remember most bigger landlords are older, they will look at the deal and call you or toss it, so you want to try and give them as much info as they need right there and get them to call you. Even a simple letter introducing yourself and telling them how many units you have and where, then asking them to call you if they are interested in buying it. They will call, and at least then you can see if your price is workable, and adjust as needed.
I have good data from the local counties, I can search it in a minute flat and tell you who is who in my area, so I'm sure your country has something. If not, try the good old boy network, everyone knows anyone who has plenty of properties... just ask a few older real estate folks that been around a while, they know!