What Do I Say When Potential Seller Responds To My Yellow Letter?

Question

Hey BP Family,So I'm a newbie at real estate investing. I've been Driving for Dollars and found some properties that caught my eye that aren't on the market. So, I found the owners of those properties, sent them some mail inquiring about their property, and I have been hoping to get a call back.Well, a guy called me back today and I froze up! I realized that I didn't prepare a script or scenario for if/when someone called me back after receiving a letter from me. I was also really scatter brained at the time, and couldn't remember which property and/or what to ask the gentlemen in regards to his property. However, I texted him and asked him if I could call him back tomorrow and get some more details about the property. So we set up another phone conversation. It's a multifamily property with 10+ doors close to the heart of Downtown Atlanta, and it needs quite a bit of work. Nice apartments and single-family properties around it, so it currently sticks out like a sore thumb.Basically, the gentleman called me and said he received the mail I sent him. He provided me with the address of his property, and kindly told me that he wasn't looking to sell the property in it's current state. However, he didn't say he didn't want to sell the property, he actually said he wants to rehab the property himself and then sell it.So after I gathered my thoughts after speaking with him, I racked my brain a little to come up with a couple of possible questions for him:- Ask about the history of the property and clarify any details about the property that I may have overlooked or missed.- Don't want to sell property until after rehab is complete, what's your timeframe for rehab? How can I assist in the rehab process to make it more efficient for you?- Motivation to sell the property? What would motivate you to sell the property now in it's current state rather than later?- Desirable sale price of property in it's current state.- Plans for the foreseeable rehab, what do those plans entail? Contractors currently in place? Any floor plans being used? Permits pulled/needing to be pulled with municipality in order for you to start rehab?Do you guys have any other questions I should add? Any of these questions that I shouldn't ask or re-word the question? Any comments? Thank you for your help in advance. Looking forward to hearing from you guys soon.Kind Regards,

Michael Lee · Answer

Hello and welcome to this site Myles. None of my answers are meant to help you and not to hurt you. One of the things you need to ask them what their equity IS.Iwould ask them why are they selling. The main thing. Ask them if they would consider Owner Financing. Also, ask them how old the property is or when it was built. Ask about the close retail. Ask them if or what amenities are on-site and off-site. What is the NOI? Are there any capital expenditure things? Is the existing debt assumable? Can you look at all of the units? Bedrooms/Bath and/or unit floor plans, are the plans available? Do they have any income besides rent? Are there any common areas?Good luck to you!

Myles Cardenas · Answer

Awesome, thank you so much Mr. @Michael Quarles! And that would be awesome, please if you wouldn't mind?

Myles Cardenas · Answer

Awesone Mr. @Kevin Polite. I’ve been in close contact with the GAHBA and the HBAG since I was I’m my second year at Kennesaw State, so I’m glad to hear that. Okay great, I know a few land guys and fee developers that bring us deals at Lennar in Atlanta. I’ll pass some info along.

Kevin Polite · Answer

@Myles Cardenas Definitely. In my previous career I was heavily involved in The Greater Atlanta HBA and more so the Sales & Marketing Council and the OBIE Awards. We bought some land and looking for more and I’ve attended a few Chapter meetings recently. sent you my contact info.

Myles Cardenas · Answer

Mr. @Kevin Polite Thank you sir, I really appreciate it. I was surprised myself, so I froze a little. Nice to meet another fellow Atlantian. Please let me know if there’s anything that I can do to help. I’m a newbie, but I work for a national builder on the Land Development and Construction side so I have quite a few connections and I’m plugged in to the Home Building Association here in Georgia and the Greater Atlanta area. And, if this direct mail lead turns out to be a deal, I’d definitely be looking to partner with more experienced guys in real estate investing.

Kevin Polite · Answer

The response rate on direct mail is rather low, but still a good avenue for leads. The fact that you got a call so soon and with so few mailers means you’re definitely off to a great start.

Michael Lee · Answer

Hello again Myles! I am glad you thought my answer is helpful. I would be happy to help you out in the future.Best wishes!

Myles Cardenas · Answer

Thank you Mr. @Michael Lee, I truly appreciate your response. I think these are awesome questions. I will definitely make sure to ask him about the last time the complex was operational and occupied with tenants. Looks like it's been out of commission for a while now. Very thankful for your post.