How to find a small apartment building in MA

Question

I have 28 off market smaller apartment complexes 8-28 units each that i found off market that I want to send direct mailers to. In MA the cost of properties this big can be in the millions. How can I, after i send out the mailers, get one of these sellers to accept doing a owner financing deal with a ballon payment to refinance and get them their money? Looking for a good way to articulate the offer. Any suggestions?

Jonathan Justiniano · Answer

Thank you guys both good tips. I have planed already to send hand written letters in nice paper and envelopes with a picture of my family. I will definitely try calling as well after sending the mailers and also try Facebook messenger.

Jonathan you mentioned HML. Do you have any that you could refer?

Jonathan Bombaci · Answer

Mailers are effective for large lists but that’s a pretty small list, I’d try calling them. You can google the owner and normally come up with a couple phone numbers or find them on Facebook and private message them. It’s more person than mailers and gets to the meat of the question “are you thinking about selling?” faster.If you want to mail then hand write the letters and include a photo of you and your family or if your single you and your dog (don’t have a dog? Rent one!). They’re getting mailers everyday you need to stand out. Again it’s a small list adding personal touches will payoff.

Your goal is to setup a face to face meeting to walkthrough the property. NEVER TALK $ without seeing the property. Would you buy a car without test driving it? Same concept. Do your homework on the property before the walkthrough so it’s fresh. Know what they bought it for and how much they owe on it. Build a relationship and ask how they bought the property back when they did. That can open up the question for seller financing. At the end of the walkthrough sit down with them and make you’re pitch. It’s good to give them 2-3options to choose from. Maybe one with 100% seller financing and and attractive purchase price, 1 with 80% seller financing, and a cash offer at 50-60% ARV.

Even if you can’t get owner financing there are plenty of investors and HML in MA. Get a good enough deal (50-60% ARV is a great deal) and you will have no problem raising the $$.

Apartments are fun! Enjoy the ride.

Danny Randazzo · Answer

@Jonathan Justiniano since you have 28 properties you might want to try mailing and calling them. If a seller responds to your mailer and calls you should first talk about them wanting to sell and why. You should also research the property to see when they bought it and how much money they will make from selling to you. Then you say "it seems like you might have a good chunk of cash after the sale, what's your plan for it?". That question will open the door to seller financing. Good luck.