I'd like to focus my attention on apartment complexes. Since most are owned under LLC's, what's the best way to contact them? If by direct mail, what are some ideas of how to approach the owner(s) in letter form?
Thanks! Your community is quite impressive. I really appreciate all the work that you guys do.
We are pretty excited about the deal. We purchased the 52 units for $3.05m, raising $1.07m that includes the $310k in renovations. The property has great bones and had been really well taken care of and completely occupied, but not a ton of updates have been made since it was built in the 70s. And the owner was an older guy and ran it very old-school so the rents were really low.
The submarket has doubled in population in the last 15 years and he hadn't taken advantage of the market changes.
At current performance, we bought at a 7.4% cap, average market is 7-7.5. After increasing the performance, we should be around a 9-9.5% cap, but that will take a couple years to get it stabilized.
We are projecting an 80% total return to the investors with a 5 year sale. But my preferred exit would be to refinance, return the capital to investors, but everyone hold their equity share longterm.
Atlanta, GA · Member since 2021 · 493 posts · 162 votes
4y
Hi Angela,
If looking for a direct mail provider, Ballpoint Marketing could be a good option. They have a number of different templates and styles to allow for multiple points of outreach as well as campaign styles. They also provide a hand written template which cold be helpful. Finally, the team has a real estate background so they understand best practices and different use cases. Hope this helps and best of luck making contact.