I would shift my focus to marketing to multifamily brokers in the market, and show them why you are the guy to close the deal. look for the top 4-5 brokers in the market, build rapport with them and let them know what type of asset you are targeting. We invest in mom and pops, and look from anywhere between 50-300 units.
Driving through your market and finding distressed properties, and then contacting the owners is another strategy that is ver successful
I would shift my focus to marketing to multifamily brokers in the market, and show them why you are the guy to close the deal. look for the top 4-5 brokers in the market, build rapport with them and let them know what type of asset you are targeting. We invest in mom and pops, and look from anywhere between 50-300 units.
Driving through your market and finding distressed properties, and then contacting the owners is another strategy that is ver successful
I would shift my focus to marketing to multifamily brokers in the market, and show them why you are the guy to close the deal. look for the top 4-5 brokers in the market, build rapport with them and let them know what type of asset you are targeting. We invest in mom and pops, and look from anywhere between 50-300 units.
Driving through your market and finding distressed properties, and then contacting the owners is another strategy that is ver successful
Gino
Hey Gino I'm looking for off market units preferably and I am a broker as well. Great advice, Im going to look up the top 5 multi family brokers in the area and reach out to them today. I also drive daily looking for multi family units as well. Do you send out any direct mail, yellow letters, etc...? Im asking because I need more leads coming in so I'm trying to expand my efforts to get more deals in the pipeline.
I think sellers in multifamily have become much more sophisticated, so letters have less effect. They do work on the smaller units. I also think you should leverage Linkedin, there are tons of brokers/wholesalers there.
All of our deals have come from broker relations, the days of looking on loop net and MLS are not over, but it is becoming very hard to find deals on those platforms.
@Rashad Jones Jennings I agree with @Gino Barbaro. The days yellow letter working are getting over. Use your own example: how many yellow letters do you even read before throwing away? Everyone I talk to throws these letters away without even glancing at the contents.
You can also gather a list of properties in your target market and use your tax assessor's office to find out the owners. Even if ownership is hidden behind company names, you can use skip tracing and other technologies to try to find the owner.
Rashad Jones Jennings Eh, the crux of your challenge is “get them to sell”. If it’s a pure investment property and cash-flowing then it’s incredibly tough to find a “distressed asset”. I get pinged on BiggerPockets from time to time and about selling after I talk about one of my properties. As soon as I say “I really don’t have any interest in selling below or even at market-value” the replies stop, crickets, nothing. Which makes sense (to some degree) from the perspective of the buyer.
Just today there was a post from a buyer that’s finding out the multifamily he is under contract for needs either a $30K roof repair or a $70K new roof. So, zing, there’s your “sure fire way to get an owner to sell”. Just find an owner that has at $50K cap-ex cost pending on a $300K property.
But under the above scenario you end up with the “do I want it?” question 🤷🏻♂️
Hi Rashad, as @Gino Barbaro & @Omar Khan have said sellers are becoming more sophisticated and focusing on broker relationships should be one of, if not your main strategy.
If you want to put some time into direct mail I’d suggest doing whatever it takes to stand out amongst the sea of letters they’re receiving on a weekly basis. Our response rates average 5% and up due to several factors including breaking down the entities that own the properties and mailing the principles at their home addresses, handwriting the envelope, placing a real stamp, etc. Keep in mind these mom and pops often want to deal with other mom and pop buyers so coming off as a genuine, sincere, and serious investor is crucial.
Also, repetition is key. Two to three weeks after sending the letters follow-up with a phone call. Don’t be afraid to try several different methods of communication to get in touch with them.
Hi Rashad, as @Gino Barbaro & @Omar Khan have said sellers are becoming more sophisticated and focusing on broker relationships should be one of, if not your main strategy.
If you want to put some time into direct mail I’d suggest doing whatever it takes to stand out amongst the sea of letters they’re receiving on a weekly basis. Our response rates average 5% and up due to several factors including breaking down the entities that own the properties and mailing the principles at their home addresses, handwriting the envelope, placing a real stamp, etc. Keep in mind these mom and pops often want to deal with other mom and pop buyers so coming off as a genuine, sincere, and serious investor is crucial.
Also, repetition is key. Two to three weeks after sending the letters follow-up with a phone call. Don’t be afraid to try several different methods of communication to get in touch with them.
Thanks for the advice Rod. That makes sense. I do send out handwritten letters but I am going to be more consistent now by sending some every week when I drive for dollars. And I also agree with the fact that direct mail is flooded right now so its time to get creative. Just got back in from walking 6 apartment complexes today. Tired but motivated!
@Rashad Jones Jennings . Also remember to be patient, persistent without being pushy. Also, consider building relationships with Property Managers, Contractors, who might be able to tell you if a particular owner is starting to feel the need to sell for whatever reason that might be.