How do you reach out to multi family owners?

Multi-Family and Apartment Investing
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How do you reach out to multi family owners?

Hayden Wright
Rental Property Investor · Houston, TX · Member since 2019 · 87 posts · 69 votes

One of my 90 day goals is to make 50 cold calls and write 40 letters to multifamily owners weekly. I’ve realized that I desperately need a structure in place to ensure consistent follow up and organization.

Is there a method or cadence that you have found to be most successful when reaching out to MF owners?

All responses are greatly appreciated!

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Spencer Gray
Syndication Expert and Investor · Indianapolis, IN · Member since 2016 · 591 posts · 808 votes
5y

@Hayden Wright It's all about how you present yourself to a broker. If you can talk the talk, use the correct lingo, then they will at least take you somewhat seriously. 

Have you considered making arrangements with one or several owners/operators/syndicators and make a working arrangement so that when you speak to a broker you can explain that you are working pursing acquisitions for "XYZ RE CAPITAL LLC." That way you can leverage their track record? Something like "I'm working with (whoever), they operate 5,000 MF units, closed 3 deals last year, and are interested in expanding into this market, I'm leading up the effort to establish a beachhead here."

Either way, whether it is through brokers or going direct, I would establish relationships with active investors/owners first. That way if you do get a live deal and they want to move quickly, you don't have to scramble.  

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  • Spencer Gray
    Syndication Expert and Investor · Indianapolis, IN · Member since 2016 · 591 posts · 808 votes
    5y

    I have not had as much success pursuing projects directly from owners, especially compared to what @Sterling White does and has done. 

    It depends on how large of deals you are pursuing. 5-50 unit deals are the sweet spot to working with owners directly. After 50 units, and especially over 100, most owners believe that they will be able to get the highest price (factoring in a commission) by having a broker take it to market.

    We focus on 100+ unit projects and have found that our time is bette spent networking and building relationships with the brokers.

    Instead of sending letters or mailers, we try to use our network it's 6 degrees of separation to find someone who knows the owner to make an introduction. We usually ask if they are thinking about selling, what kind of debt they have on the property, and indicate that we are interested if they ever do want to sell. Then we try and follow up once a quarter. 

    6Reply
  • Eric Johnson
    Lender · Chicago, IL · Member since 2016 · 653 posts · 313 votes
    5y

    Why don't you just do SMS messaging? It's much more efficient. 

    Also, building a real estate agent database is easier and also probably more efficient. Go to loopnet and call all the brokers, tell them you are a buyer in the area and ask to be put on their email list of new and coming soon deals. gl

    5Reply
  • Derek Loda
    Investor · Appleton, WI · Member since 2017 · 40 posts · 30 votes
    5y

    @Hayden Wright I've had good success with the following method: Professional typed letter, handwritten envelope. Send out a letter, two weeks later give a phone call (truepeoplesearch.com is quite accurate, otherwise skip trace, I've used batchskiptracing.com), another call one month later, letter another month after that. Repeat the process.

    I've gotten responses from 16 unit owners to a VP of holdings for a real estate company with $11 Billion in holdings about a 428 unit portfolio. It can work, but each market tends to have it's own success groups. I to agree with @Spencer Gray that you will likely have better success in that 'mom and pop' range, usually under 100 units. 

    7Reply
  • Hayden Wright
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 87 posts · 69 votes
    5y

    @Spencer Gray That’s sounds like great advice thank you for sharing that with me Spencer. My current strategy is to find an apartment deal and hand it over to an experienced investor who will allow me to have a small percentage of equity in the property and let me shadow them through the entire process. I really like your idea of focusing on building relationships with brokers, but it is my understanding that I would just be wasting their time if I do not have the funding or the property management in place to even do a deal. Would you agree with that and would you still recommend I search for brokers instead of owners?

    3Reply
  • Brandon VukelichBusiness Member
    Real Estate Broker · Tacoma, WA: 🏢 27 LTRs 🏡 3 STRs · Member since 2018 · 549 posts · 458 votes
    5y

    Another idea is building relationships with property management companies in your preferred market(s) that have the size of deals you're looking to acquire.  Make an introduction, tell them what you want, check in once a quarter or so and ask to be included in any communications they send out.  Best wishes!

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    4Reply
  • Brenton Hanes
    Investor · Member since 2021 · 23 posts · 21 votes
    5y

    We own and operate almost 900 multi-family units in Los Angeles County (several are 100+ units). We are also brokers. There are several ways that have worked great for us but it takes years of constancy. Mailing is a great way but it depends on your content. Postcards, direct letters are great ways but you have to work it in conjunction with networking. Om postcards, market updates and past sales are great. Marketing  direct buyer needs is a good one too that works well for me. Call if you can but most get annoyed as we get a few calls a day right now. Social media and YouTube is a good way but very long term marketing. When you get int the 50+ units the game changes quite a bit. These are typically really savvy investors. Never be afraid to think outside th box. Its a numbers game for them. I will add, at the end of the day its a relationship you need to establish and that simply takes time.

    4Reply
  • Spencer Gray
    Syndication Expert and Investor · Indianapolis, IN · Member since 2016 · 591 posts · 808 votes
    5y

    @Hayden Wright It's all about how you present yourself to a broker. If you can talk the talk, use the correct lingo, then they will at least take you somewhat seriously. 

    Have you considered making arrangements with one or several owners/operators/syndicators and make a working arrangement so that when you speak to a broker you can explain that you are working pursing acquisitions for "XYZ RE CAPITAL LLC." That way you can leverage their track record? Something like "I'm working with (whoever), they operate 5,000 MF units, closed 3 deals last year, and are interested in expanding into this market, I'm leading up the effort to establish a beachhead here."

    Either way, whether it is through brokers or going direct, I would establish relationships with active investors/owners first. That way if you do get a live deal and they want to move quickly, you don't have to scramble.  

    10Reply
  • Hayden Wright
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 87 posts · 69 votes
    5y

    @Eric Johnson thank you Eric for the advice! I like your idea of calling brokers to add me to their email list, I will add that to my calendar to do next week.

    1Reply
  • Hayden Wright
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 87 posts · 69 votes
    5y

    @Derek Loda I can’t tell you how much I appreciate your response Derek! That sounds like a great cadence, but just to be clear you send them a letter an initial personalized letter with handwritten envelope the first week and then just a generic follow up letter two weeks later followed by a phone call?

    On these letters are you asking if they are interested in selling or are you purely focused on building a relationship?

    Those are really encouraging numbers thank you for sharing those as well!

    1Reply
  • Hayden Wright
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 87 posts · 69 votes
    5y

    @Brandon Vukelich thank you for the advice Brandon! I will make a goal out of visiting x amount of property managers a month. Wish you the best!

    3Reply
  • Hayden Wright
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 87 posts · 69 votes
    5y

    @Brenton Hanes thank you for the advice, Brenton. I have been thinking very inside the box and traditional for marketing and will plan on taking the time to come with a strategy that will help me stand out.

    2Reply
  • Derek Loda
    Investor · Appleton, WI · Member since 2017 · 40 posts · 30 votes
    5y

    @Hayden Wright 1st letter: business letter, handwritten envelope that is a more introductory. Who are you, what are you looking to do (meet other owners in said market),etc. After two weeks, phone call, follow up from the letter "see if you got it" but repeat the tone of getting to know them. Month later, same type of letter format, but gradually build in your interest to purchase.

    This is more for mom and pop properties, larger companies typically respond better when it's to the point. Remember, it's a relationship business. 

    3Reply
  • Hayden Wright
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 87 posts · 69 votes
    5y

    @Spencer Gray I had not considered making arrangements with other owners/operators/syndicators to use their reputation and track record, but that sounds like a genius idea. Again, thank you for the help I will definitely be putting all of your recommendations to action.

    2Reply
  • Hayden Wright
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 87 posts · 69 votes
    5y

    @Derek Loda that sounds great. Thank you for the clarity, Derek! I will keep you posted with the results!

    2Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    @Hayden Wright I did this in the beginning and it was gruelling work and anyone who cold calls or receive a cold call can feel what I am saying!!! 

    I think brute force is the name of game. If you can figure out a way to make 100 calls a day, do that. It is purely a number game! 

    Oh, never ever take anything personal as you start to get colorful replies on those calls. Good luck mate. 

    PS: If you find a deal in Houston, you know a guy now. Send those deals my way!!!

    4Reply
  • Danny RandazzoPro Member
    Apartment Syndicator · Charleston, SC · Member since 2016 · 973 posts · 728 votes
    5y

    @Brandon Vukelich I agree with the property manager relationship strategy because the managers have a good idea what’s going with the property in addition to knowing the owner

    2Reply
  • Justin Goodin
    Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
    5y

    @Spencer Gray I agree with your points to get brokers to take you seriously. You must start by educating yourself. Speaking the real estate language is a must. Also, being consistent, prompt, and having a thought leadership platform can certainly add to your credibility. 

    Another value point when talking to brokers is to think about how you can add value to them. A deal may not work for you but do you know a buyer that may be interested? Real estate is a relationship business, as you know :) 

    0Reply
  • Justin Goodin
    Investor · Indianapolis, IN · Member since 2018 · 1k+ posts · 756 votes
    5y

    @Ola Dantis Making 100 cold calls in a day can be very challenging. I do not see anything wrong with this but you could also take more of a 'sniper' approach. Narrow your list down to your exact criteria. Filter out properties that have sold in the last couple of years. Could save you a lot of time by narrowing down your list. 

    1Reply
  • Eric McCarty
    Investor · Syracuse, NY · Member since 2020 · 33 posts · 13 votes
    5y

    @Hayden Wright I have used imagemate.com as a website to see where properties are and who owns them. You can export all of the data to excel and sort by multi family, single family, pet groomer... whatever it is that you’re looking for. Doing it within a state you can then filter by out of state property owners and contact them first. All of that data is public. Good luck!

    2Reply
  • Hayden Wright
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 87 posts · 69 votes
    5y

    @Ola Dantis I appreciate the advice, Ola! I will have to look at increasing the # of calls I do!

    1Reply
  • Hayden Wright
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 87 posts · 69 votes
    5y

    @Eric McCarty I really appreciate the tip Eric! That sounds like an extremely useful website and I have it on my calendar to look into tomorrow!

    1Reply
  • Hayden Wright
    OP
    Rental Property Investor · Houston, TX · Member since 2019 · 87 posts · 69 votes
    5y

    @Justin G. Thanks for the response, Justin! I’m a big believer in adding value and always looking to add value at every turn!

    1Reply
  • Andrew Carlson
    Rental Property Investor · Rochester, MN · Member since 2017 · 224 posts · 323 votes
    5y

    @Hayden Wright

    I’m still hunting for a big Houston deal, man!!

    1Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    5y

    @Hayden Wright I have never sent a letter to an owner. I simply get all my deals from my network and can get as many as I want .  Connect with those doing deals and learn from them, 

    0Reply
  • Cody L.
    Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    5y
    Originally posted by @Eric Johnson:

    Why don't you just do SMS messaging? It's much more efficient. 

    Also, building a real estate agent database is easier and also probably more efficient. Go to loopnet and call all the brokers, tell them you are a buyer in the area and ask to be put on their email list of new and coming soon deals. gl

    Is it?  I could show you my phone where I get 10+ a day.   "Hello, we'd like to buy your property.  Are you interested?  type STOP to opt out"   And I'm not joking.  It comes to 100's a month.  And I'm not even counting letters as those get tossed by my team before I see them but we were getting huge stacks every month.

    I have a canned reply I send back to texts.  basically says "if you want to buy something, go to this website".  The website shows my properties and says "If you want to make an offer, email it to..."

    So if it's a numbers game where you send the text to 1000 people, hope 5% reply (50), and of those 10% has a property worth buying at a price that's reasonable (5), and of those, 20% you can get a deal done with (1). Then it sure seems strange that of all the people that get a 'warm lead' from texting me I hear back from almost zero of them (I'd say 'literally zero' of them but I got an LOI for one of my properties last week that got that text. It didn't go anywhere, but at least someone replied)

    Point being:  From an owner perspective, I find those texts to not only being annoying, but I get so many of them that I don't see how if you're the 20th person to send an owner the same text why you'd get a better reply.  The only advice I'd give is IF you get ANY kind of reply, work it.

    Or worse is the voicemails.  I have my voicemail message set to "Don't leave me a voicemail. I don't check them.  If you want a call back, text me".  Yet every month or so as I'm clearing out my voicemails I'll see tons of those robo voicemails "Hello, have you ever thought about selling your property..."

    MY STRONG SUGGESTION     would be to do less of the automated mass blasts.  And do MORE of the 'hand touch' calling, texting, emailing where you're actually directing it at someone and making an offer on their property.  i.e, "Hey Bob, I love your property at 123 Smith St.  I own one very close by at 234 David St.  If you'd ever consider selling I hope you keep me in mind.  I close fast and can pay a fair price.  I'd like to see a rent roll before giving an exact offer but just guessing at what your income is I could offer about $x.  Let me know your thoughts" 

    5Reply
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