Be Prepared For An Unexpected Answer

    It is a rare week that I don’t receive at least a couple yellow letters. Occasionally, I will call on one to see who is prospecting, to introduce myself as a fellow investor, or to see what the sender is looking for. I am surprised at how often the sender does not seem to know what they are looking for or will not reveal that apparently secret information. I have had situations where I received four letters from the same sender targeting four separate properties and the person who sent them wouldn’t reveal their target market. Believe it or not, I already had a fairly good idea of what they were looking for.

     My experience is that the property mentioned in the mailing is not usually a good one for me to make a deal on. However, I often have properties a few blocks away that could be good deals for both the prospector and I. Granted, when I ask questions about whether the investor is looking for properties to rehab or would prefer them rent ready I am revealing that I am not a desperate seller. However, I am an experienced seller and may be a willing seller. When I ask if the investor prefers properties with tenants in place or vacant I am revealing that I am a landlord. Why wouldn’t the investor wish to speak with me? If they are buying to hold it may be possible that my tenants would wish to remain in the property after an ownership change. If they prefer to flip the property the lease for my tenant may be near expiring—the property may be vacant soon. Isn’t it likely that I may have more properties that I may be willing to sell? Is it possible that I may be looking for some to buy? Might both be possible?

     You have already spent the money to send the letter. You may not have reached the desperate seller that you were hoping for but you may have found a much better prospect. Are you looking to acquire properties with little money down? The landlord you have reached may not need the money now. They may not even want it. They may have more experience structuring land contract deals than you do and may be quite willing to entertain one with terms that are favorable to both parties. Are you looking for multiple properties? What if you found someone who had been thinking of selling half a dozen or more? Might that get you closer to your goal?

     You will be much more likely to strike a deal if you have considered a range of possibilities before you take a call. Are you looking only for properties in a certain area or city? Would a tenant already in place be an asset? Are you only interested in rehabbing a vacant building or would one that is occupied and need minimal work provide some opportunities? If the opportunities are not right for you do you know someone for whom they might be a good fit? Be prepared for an unexpected answer to your mailings or you may be passing by a lot of potential deals.