Direct Mail to Apartment Owners

[Angela Meraklis-Lyons]

I'd like to focus my attention on apartment complexes. Since most are owned under LLC's, what's the best way to contact them? If by direct mail, what are some ideas of how to approach the owner(s) in letter form?

[Chase Keller]

@Gino Barbaro,

Thanks!  Your community is quite impressive.  I really appreciate all the work that you guys do.  

We are pretty excited about the deal.  We purchased the 52 units for $3.05m, raising $1.07m that includes the $310k in renovations.  The property has great bones and had been really well taken care of and completely occupied, but not a ton of updates have been made since it was built in the 70s.  And the owner was an older guy and ran it very old-school so the rents were really low.  

The submarket has doubled in population in the last 15 years and he hadn't taken advantage of the market changes.  

At current performance, we bought at a 7.4% cap, average market is 7-7.5.  After increasing the performance, we should be around a 9-9.5% cap, but that will take a couple years to get it stabilized.  

We are projecting an 80% total return to the investors with a 5 year sale.  But my preferred exit would be to refinance, return the capital to investors, but everyone hold their equity share longterm.