MultiFamily "Yellow Letter"

6 Replies

Hello BP!

I'm going to start mailing to Apartment property owners to market for my first investment property. I'm looking for a Value add / Repositioning deal. I was hoping to get some advice on a few questions I have. 

Should I mention this will be my first investment property?

Can I follow the same techniques used for sending yellow letters to SFH property owners or do you suggest doing anything differently?

How much research on a given property would you do in advance? Would it be a waste of time to do any research or run any numbers before getting a call or feedback from the owner?

Thank you for taking the time and please share any other comments you have.  

@Ryan H. Joseph

Ryan very good questions.  A few tips below:

1.  Remember, that the best results for Direct Mail is consistency.  Plan on making a commitment to mail at least once a month for a minimum of six months.  If that is not in your budget, do not waste your time doing direct mail.  Find another marketing strategy.

2. You asked "Should I mention this will be my first investment property?".  Why would you do that Ryan?  Would you want to invest with a person who has never done a real estate investment deal?  Do not lie, be honest if they ask, but do not feel obligated to volunteer your experience level.

3. You asked; "Can I follow the same techniques used for sending yellow letters to SFH property owners or do you suggest doing anything differently?" Any good List vendor can you give good advise on this question, but it is basically the same technique.

Its the List that makes the difference.  For example the List for Apartments would be to target "Landlords with Code Violations list."  

4. You asked "How much research on a given property would you do in advance? Would it be a waste of time to do any research or run any numbers before getting a call or feedback from the owner?"  Having the correct List will minimize the research needed, but its always a good idea to do more research, just do not let it turn into procrastination from moving forward.  The key is finding a motivated seller who not only wants to sell, but NEEDS and HAS TO Sell.

I hope these tips help you Anthony and I wish you the very best.

@David Wright thank you for your reply!

Two quick follow up questions if you don't mind:

1. By consistency with direct mail, do you mean mailing to the same area/owners once a month for 6 months? Or do you mean just consistently mailing to new people? I would imagine you're saying mail to the same people. 

2. Do you have some suggestions for list vendors? I've only looked at listsource.

Thank you for your time David

My best,

@Ryan H. Joseph David gave you good advice. I’ll just add that if you aren’t targeting a specific building, I wouldn’t do research until you know the owner is open to offers. It’s easy to waste time in this business - best to be thoughtful about your approach.

@Ryan H. Joseph I would suggest you don't mention in your letter this is your first investment property as it serves no purpose.

At the end of the day, your letter isn't about you or your background.

Your headline, copy and CTA (call to action) is all about the seller and solving their problems.

You need to know in advance that your search for finding a deal such as Value-add deals, direct mail (DM) is only part of a bigger strategy to locate assets. You need to be calling brokers, networking, using BP, etc.

I bought a deal using DM, here is a link for you:

Bought 200+ Unit Apartment Complex, Increased Value Over $4 Mill

You can find list of owners using a service such as ListSource or a list broker. 

You should plan to mail to the same contacts for about 6 months. In the beginning, mail every 7 to 10 days. After the third mailing you can switch to monthly. Make sure you allocate enough money towards your marketing budget to mail consistently. 

Finally, and some people forget about this, think through what happens when a prospect calls you.

Will you have an answering service, will you take the calls, what do you say, how do you follow-up, etc.

Before you start spending money, make sure you map out the whole process.

Good luck

Thank you so much for your advice @Brian Adams

I thoroughly enjoyed reading through a few of your articles and I look forward to listening to show #135 in the morning.

Since I'm trying to transition from a CPA background, I appreciate your perspective and it gives me confidence. Thank you Brian!

One thing I would add is regarding your question about the approach with yellow letters. Depending on the size of the properties you're mailing to, you're likely to get better results with a professional looking letter rather than the traditional "hand-written" yellow letter. If you're talking about 2-4 units, sure, the yellow letters might still be appropriate. But if you're talking about large multifamily, you're generally talking to a different audience. Doesn't have to be fancy, but sharp.  I'd love to hear  if anyone has a differing opinion regarding this approach and this target market.