How to initially contact an apartment building owner?

[Doug Webb]

I've had plenty of residential real estate experience, but this is my first foray into the apartment building arena.  I'm very curious to hear everyone's opinion on this scenario.

I live not far from a 9 unit apartment building, which through my research only has 5 of the units rented out.  The other 4 units have been sitting in disrepair for quite some time.  Through a little digging I've also come to find that the owner is a widow who didn't initially have any interest in the building, as it was her husband who was mostly involved with the building.

The owner has made no effort at making the building better and just collects the 5 checks that come in every month, even though there is an opportunity to collect more!  Now it's my understanding that when apartment building owners are "checked-out" that that is a good time to approach them to about taking this "burden" off of their hands.

How would you suggest contacting the owner?  Writing a letter myself?  Do I have a broker make the first contact?  I'd like to find out more about the building and see if there is a way I can help.  Just interested to hear others thoughts on a good way to reach out to start a dialogue.  Thank you! 

[Account Closed]

Doug,

If you have identified the owner and know how to reach them, I would go directly to them rather than introducing a broker into the mix. If you can reach them by phone, I'd go for that method of first contact and start by asking questions to get a sense of who you are talking to and figure out what you are dealing with. Once you get a sense of the owner's situation and assess their needs, you can give them a soft pitch on your own goals to see if they are well received. If they are, I'd then proceed with something in writing in the form of a non-binding letter of interest. If that is well received, I'd follow that up with a more formal LOI or an actual purchase offer. I lived in Seattle for 25 years and know that market very well. It sounds like the property has a lot of room for upside if you can buy it right and it is in a solid market area. Good luck with your due diligence and pursuit of this property.