Should I include a 'ballpark' value in Direct Mail?

4 Replies

I'm starting a direct mail campaign to smaller <50 unit properties.

Initially, I am going to target properties that are owner-operated by avoiding properties with investment-oriented owner names in public records ("Holdings", "Assets", "Ventures", etc.)

I am considering using a basic formula based off the # of units to offer a range of value their property could be worth. For instance, I'm hoping to purchase around 30-40K/door. Properties are selling upwards of 50-55K/door though. So I was thinking of having a statement something like, "Our records indicate your property could be worth between $X-X." that's based off 30-50K/door or something similar.

Has anybody tried this? Do you think it will hurt or help my efforts? Is it best just to leave it at something simple like "we're interested in buying your property..."?

@Benjamin Ouderkirk - I think owners of apartments in 2017 see the writing on the wall and know that the market is in their favor.  I would push some different buttons, such as:

"We buy apartments... Sell directly to us... No need to use a broker and you can save on commission!"

"Keep your property off the market... Have a discreet sale, so you don't alarm the tenants."

@Chris Tracy Thanks for the response! I agree most have probably been contacted before and know it's a good time to sell.

I have some of those remarks in my letter already, but I hadn't considered the 'discreet sale' angle. I think I will add something to this effect. Thanks!

@Benjamin Ouderkirk I feel this would hurt you more than it will help.

Going with a generic formula, I doubt you will hit the "correct" number. If you send a number that is too low, you will lose the owner as a "low-baller". If you send a number that is too high, the seller will think you're trying to con him. If you're high by a little and got the seller's attention just to realize you can't pay that price for that property, you will lose credibility and lose the sale. 

IMHO, the only way to put $$$ in a letter is if you did your homework on this specific property and confident in your number

@Joseph Gozlan Thanks for the opinion. I was hoping the wide range would allow me to back them down from their expectations (I'm sure every owner think their property is worth 60k/door) based on their performance. 

But perhaps you're right. Also, including this in my DM would take some setup and likely cost extra. 

I think I'll leave it out for now, and maybe revisit the option of including it after a few rounds of mail go out. 

Thanks!