How do I approach an investor about selling their property?

20 Replies

I've mostly excluded "true" investors from my direct mail campaigns, meaning I've excluded LLC's & other entities. I've also excluded individuals holding multiple properties. I haven't eliminated them. I've just excluded them from my initial mailings.

I did some driving for dollars this past weekend and found an enclave, in my farm, of seriously distressed properties - both small SFR & duplexes. In researching them, I've found multiple properties are owned by "true" investors. One in particular holds 33 properties across the Dallas area. I would personally label these people as slum lords, by virtue of the condition of these properties.

However, since these are actual investors and not just landlords with a couple of properties, how do I approach them about the potential of selling those properties...or do I?  Should I even bother to approach these people?  If I do, what tactic do I use?

Thanks!

Hattie

@Hattie Dizmond  

Investors (of all sorts) are always looking to liquidate bits and pieces of their portfolio. 

I believe a good approach is to discern why they (the investors) would be motivated to sell. When that time comes, you have presented them with enough compelling marketing to lead them to do business with you.

Chances are they are savvy and will deposit a yellow letter directly into the circular filing cabinet. A more refined approach is necessary IMO.

Chances are they are savvy and will deposit a yellow letter directly into the circular filing cabinet. A more refined approach is necessary IMO.

Yeah...That's what I'm thinking, so I'm trying to figure out what that refined approach looks like.  I'm good at talking to the 70-year old gentleman who has a couple of rental properties, and he just doesn't want to deal with them anymore!

If you are just looking to do business with just one guy, write him a personalized letter and send it to him in the mail.  

Keep sending him one every few weeks until he contacts you and invariably wants to do business with you or tells you "no thank you" (as I'm sure he's nothing if not a distinguished gentleman).

Grizzled BP vets, what circumstance(s) would lead you to liquidate one of your 30+ properties?  

If you can get some feedback here (or searching blog archives/posts), maybe gear each of your letters toward finding a solution to one of those problems.  Show him you know what the hell you are doing and talking about.  Build trust.

It's one letter a month...probably worth the effort.

If you think there are some good deals in his portfolio, after the 2nd or 3rd letter, include a $100 bill in the next letter, and make it clear you'd like to give him a lot more of those if he has properties he might consider selling.

John D., Palm Vacation Rentals | [email protected] | 4155195039

@John D. Are you serious about throwin in a Benjamin like that? I think it's a great idea but how many times will a guy just pocket it in the hope that next time you'll send more? Are letters really the best strategy? What about having a realtor send an offer?

I don't think you would get any advantage at all, from having a realtor submit an offer on an unlisted property owned by an investor with a portfolio of 33.  That person would probably be more interested in talking to another investor.  And $100 would probably get his attention, if the first few letters didn't.  If he didn't call after the benjamin, which would surprise me, it would give you something to talk about, joke about, and reference in future letters.

I'm actually planning on mailing $1 each to a bunch of out-of-area vacant land owners, and making some real low offers to responders.  I thought $100 might make more sense in this instance.

John D., Palm Vacation Rentals | [email protected] | 4155195039

If you can get a number, I say cold call the guy.  If you don't want it to be completely cold maybe send one or two letters.  If the owner is a true investor, like @Jeremy T.   said he or she might be looking to liquidate some of the portfolio.  I think a polite call, invitation to coffee, etc. might work.  Again, assuming he/she is not a complete jerk.

Ok so now I'm gonna show how green I am.  I don't get your hesitation.  Why not send a letter or two introducing yourself.  Then follow up with a call.  I get the fact that he is an investor but wouldn't he want another good contact in the area.  Isn't networking part of all of this.  I would use the direct approach..... Hey if your ever looking to sell I would be interested.  Maybe even send him a property or two that may fit nicely into his portfolio that you can't move on right now.  And one day he just might want to sell off some or all of his properties. Why shouldn't you be that first call he makes ten years from now when he is ready to sell.  Makes complete since to me, but then again I am the greenhorn, probie, rookie use which ever you like. So go ahead let me have it.......... :)

I would not hesitate to approach them. If the properties are run down and neglected I take that as a sign that they are not interested in them. Maybe that is a wrong assumption but I would still pursue them.  You know the worst thing they can do is not answer you.  Give it a shot.

No company avatar mediumJohn Thedford, John Thedford | 239‑200‑5600 | http://www.capehomebuyers.com | FL Agent # BK3098153

investors are a great source for acquiring property... Especially if they have a place struggling to get rented out. They can get very frustrated and many would love the opportunity to dump a deal that isn't working out for them. Come at them from a very business minded approach and solve their needs/struggles. Think in these terms and the task won't seem so daunting.

I feel by your question your putting investors too high on a pedestal. Stay confident !

KS Agent # SP00236418

On targeted properties held by investors I wouldn't send them a letter at all!

Ring, ring, ring, ring....Hello? Hello, is this Mr. Smith? Yep.  - Mr. Smith, my name is Hattie Dizmond, do you have a minute to talk or would it be better to call you later? - Yes, what do you want?

Mr Smith, I noticed your property on Slumline Road and wanted to ask you if you would entertain selling it (or more countryfied, wanted to know if you'd sell it?)  

If yes, get an appointment, don't buy it on the phone, if no, then; Okay Mr. Smith, if you ever decide to sell would you give me a call? - Sure, - Great, let me give you my number, do you have a pen? Yeaaa, what is it? My name is Hattie, H, A, T. T, I, E  Dizmond, D I Z M O N D and my number is 555-123-4567. I'm an investor like yourself and I'm interested if you change your mind. - Okay Hattie - Thanks for your time Mr. Smith, have a good day! Bye....  

Pretty easy, Hattie, you just need to grow a pair as the men say. :)    

Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com

Originally posted by @Bill G.:

Ring, ring, ring, ring....Hello? Hello, is this Mr. Smith? Yep.  - Mr. Smith, my name is Hattie Dizmond, do you have a minute to talk or would it be better to call you later? - Yes, what do you want?

Mr Smith, I noticed your property on Slumline Road and wanted to ask you if you would entertain selling it (or more countryfied, wanted to know if you'd sell it?)  

If yes, get an appointment, don't buy it on the phone, if no, then; Okay Mr. Smith, if you ever decide to sell would you give me a call? - Sure, - Great, let me give you my number, do you have a pen? Yeaaa, what is it? My name is Hattie, H, A, T. T, I, E  Dizmond, D I Z M O N D and my number is 555-123-4567. I'm an investor like yourself and I'm interested if you change your mind. - Okay Hattie - Thanks for your time Mr. Smith, have a good day! Bye....  

Pretty easy, Hattie, you just need to grow a pair as the men say. :)    

 Also a good option :).  

Originally posted by @Bill G.:

On targeted properties held by investors I wouldn't send them a letter at all!

Ring, ring, ring, ring....Hello? Hello, is this Mr. Smith? Yep.  - Mr. Smith, my name is Hattie Dizmond, do you have a minute to talk or would it be better to call you later? - Yes, what do you want?

Mr Smith, I noticed your property on Slumline Road and wanted to ask you if you would entertain selling it (or more countryfied, wanted to know if you'd sell it?)  

If yes, get an appointment, don't buy it on the phone, if no, then; Okay Mr. Smith, if you ever decide to sell would you give me a call? - Sure, - Great, let me give you my number, do you have a pen? Yeaaa, what is it? My name is Hattie, H, A, T. T, I, E  Dizmond, D I Z M O N D and my number is 555-123-4567. I'm an investor like yourself and I'm interested if you change your mind. - Okay Hattie - Thanks for your time Mr. Smith, have a good day! Bye....  

Pretty easy, Hattie, you just need to grow a pair as the men say. :)    

Awesome!  Thanks Bill!!

I really was looking for someone like you to tell me what wouldn't just irritate the crap out of them!  I don't mind calling.  And, I've been in corporate America long enough to have a brass pair!!!  ;-)

I do not exclude LLCs and Trusts (you'll see more trusts than LLCs in the data).  Trusts are often family trusts that hold inherited properties.  The contact is often the executor.  we want those.  The LLCs are a small portion of the absentee list so I just leave them in my mailings.

If they own multiple properties (I do not de-dup my abssntee list when I purchase it) we manually clean the list to send no more than 2 postcards per owner (for 2 of their properties). In some cases if the (non-LLC/Trust) owner has a LOT of properties, we may mail him 3 postcards. We're trying to get their attention, and we want guys with a lot of properties to know who we are and that we're eager to take them off their hands.

My main concern on this type if list is to mail to only those with high equity in house(s) (SFR only) that are below the median value of the market. As long as they fit that criteria, we want them know our offer to buy fast for cash!

Medium wbh square logoDev Horn, We Buy Houses® | [email protected] | 877‑932‑8946 | http://webuyhouses.com/profile/arlington

OK the guy owns a lot of similar properties. My first thought is this guy might be a buyer and that is the way I would approach him forget the wanna sell approach. You tell him you may be getting a similar property in the area and if you do would you be interested in knowing about it?  

This is the point where he may say no I don't want to buy anymore or if anything I would like to sell a couple. This is a lead worth working on a little bit.  He says don't want anymore you can counter with it sounds like you plate is full, ever consider selling one or two. Don't focus on a specific address at this point. If you get the may sell response instead of the not buying response ask which one would you sell first? 

  • I don't like mail follow up in general so I may say well John I enjoyed talking to you. and some offhand compliment such as  I think I could learn a few things from you. ( this is not fake  I'm sure he has some valuable experience to pass on.)  Would you be offended if I gave you a call in a few months to see what your plans are then or would you prefer that I e-mail you?

I don't ask if they would be offended, I just call back and follow up, give them 4 months. Soon, you'll have weekly follow up calls as well as your new leads. That gives the memory plenty of time for three recalls,  to recall that option as they think of other things related to that property. Feb and March are good times to ring that chime as it's tax time!  

Glad to hear yours are brass, later you'll get to steel. LOL :)

Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com

Great post Hattie. I needed that.

Originally posted by @Bill G.:

I don't ask if they would be offended, I just call back and follow up, give them 4 months. Soon, you'll have weekly follow up calls as well as your new leads. That gives the memory plenty of time for three recalls,  to recall that option as they think of other things related to that property. Feb and March are good times to ring that chime as it's tax time!  

Glad to hear yours are brass, later you'll get to steel. LOL :)

LMAO!!!

Bill G

You just follow up, that is normal grade dealing Which is what I did in my early years. But when I added the would you be offended lead in I never had a single soul say yes they would be, just the opposite which was of course not or no, or in effect giving me permission to call. Plus knowing I was going to be following up with them put me on the back burner of their gray matter some what and they  were actually more ready to talk to me when I called instead of the I really haven't thought about it  square one type answer because they hadn't, your first call was basically in the discard pile mentally.

I like the approach of telling them that I represent a group of out of town investors that is buying property in bulk in the area and saw that he owns several properties.  Then ask at what price point would he consider liquidating all or part of the portfolio.  That gets the conversation started.  He will probably come back with some high ball number but you can always say that based on some due diligence your investors may be interested.  Sellers always start thinking of what they are going to do with the money so keep following up after that.

Eva Melendez

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