Finding owners of Multi Units/Family Properties willing to sell

[Henri Meli]

I've just started investigating investment opportunities in Multi Family/Multi units properties. Based on the funds I have available, I was thinking somewhere between 5 to about 25 units is what I can afford. I have had a hard time finding any good listings in my area (Triangle Area in North Carolina). Sites like realtor or zillow or even trulia don't have many good choices. And the ones that I got, by the time I locate them, they are already under contract. 

So, I have started putting the list together on my own by going to the Apartments/Rental books (in prints) and locate apartments properties, then go the county websites and locate the owners (mostly LLCs), then go to other websites to locate people running the LLC (if needed and if possible)... etc. This seems a little cumbersome. Anyone has any better way to do this?

My goal is to send owners a letter to ask them if they are willing to sell. I have never sent such a letter. If anyone has ever done it, can you share such letter with me, so I get an idea what to write and how to write it?

Thanks. 

[Brian Adams]

@Henri Meli, awesome job of putting in the work to find the owners. I bought my 200+ unit deal in Dallas this way by sending direct mail letters to the owners.

I won't be able to share the exact letters I use as I sell them as part of a program and it wouldn't be fair to those who have bought - so I am sure you understand.

But not to leave you hanging, your letter needs to have a strong headline, a sub headline, compelling copy, and call to action - the "P.S.". The PS is what you want the owner to do. 

The obvious answer is you want the seller to contact you. These owners get these letters all the time so you need your letter to standout, maybe you offer a FREE report on how much their property is worth, or trends in the market, etc. By giving the owner something of value and to make it for FREE it will increase the odds that the seller will call you.

Also and this is important, doing direct mail is expensive so if you are on a limited budget, make sure you allocate enough funds to do multiple mailings - I usually do a 3 to 4 step letter campaign. To set your expectations with direct mail, the likelihood of a seller contacting you on the first letter is unlikely, studies have shown that they need to see your name a couple times. 

So when your letter shows up make it memorable for the reader. See below - here is a letter I send out to locate and secure private investors for my deals.

I call it my Dum Dum Letter. This is what we call lumpy mail and we actually glue a Dum Dum to the letter, mail in bright florescent envelopes and the addresses are hand addressed with blue ink and a live stamp. It costs more - this piece to mail I think was $2.77 to mail, and it secured an investor at over $100k so the ROI is fantastic.

Good luck

(And I also like the Triad Market - had a 98 unit under contract in Greensboro, but terminated the agreement).