Should I call all 8-12 unit owners?

Question

I just learned about PropertyRadar (https://www.propertyradar.com/) which claims to allow you to "research residential and commercial properties using enhanced public records data."

I'm looking to pick up two 8-12 unit buildings this year, so I plugged in some criteria that matched that into a PropertyRadar search and got back a list of ~1000 buildings, along with taxpayer data, in RI.

Is it worth calling all of them and seeing if any are willing to sell? Some of them are owned by shell LLCs that I can't punch through, but some of them have the owners' name right there.

I have no idea what the volume of calls that these people receive looks like. I've done cold calling before for digital marketing and it's a LOT of effort for low return. Not sure whether the same would be true here?

Danny Randazzo · Answer

@Elliot Bonneville yes you should do that but try to be different from the other people that call. Maybe research each person to find something in common to talk about first then ask about the property

Evan Polaski · Answer

@Elliot Bonneville, would you want all of the 1,000 properties, even if they were willing to sell?  Personally, there are some properties that I would not accept if given to me.

I would personally take that list, and then apply some filters to it.  Do you want to buy in the class A neighborhood, where you will be paying a premium?  Or do you want to buy in the Class D area where you could have trouble finding qualified tenants?  Would you rather own 12 units vs 8?

At minimum, I would put some time into prioritizing the list to focus on the ones you would most likely actually want first, and then start filling in once you have exhausted that.  I would also have a follow-up ready, whether it is an email that you can quickly send or scheduled mailer.  Those 1,000 calls are just laying the ground work for attempting to establish a relationship, but the relationship needs to be nurtured to pay dividends.

Steve Morris · Answer

"Is it worth calling all of them and seeing if any are willing to sell?"

Well, guess you could wait until they call you :)

People change their minds all the time, you're only worth what other people (prop owners) think of you and you have a chance to craft your image with a phone call.

1000 calls = 20/day * 50 days (10 weeks).

John Blanton · Answer

As you mentioned the return rate on effort can be very low, but just getting 1-2 deals could make your year so only you can determine what your effort/ labor is worth

Researching each seller can be time consuming and potentially a waste of time if they don't want to sell. I would look at the parameters you are targeting. What would motivate them to sell (especially off market)?

How long have they held the property? Do they have debt on it? How did they acquire the property? Can you see any deferred maintenance on Google Street view? Then you can have a smaller list to start from for a higher hit rate.

I have had good success myself, but the amount of effort required is a lot. Brokers are calling me now asking for leads as I am having such good traction speaking to sellers. Majority of sellers are too sophisticated to pick up anything at a huge discount, but we have been able to do that at times.

Elliot Bonneville · Answer

@Danny Randazzo makes sense, thanks for the advice!

Justin Goodin · Answer

Great points from everyone. Get reliable data and then narrow that list down to your exact criteria. Instead of calling 200 owners, pick 20 properties that have exactly what you are looking for.

Justin Goodin · Answer

@Timothy VanWingerden Awesome! Would love to connect.

Timothy VanWingerden · Answer

Yes you should and yes there will be opportunity. Refine your list so you are buying something that you want. If you are looking for a value add then take out newer properties, etc.

It would be unrealistic to reach 20 contacts a day. It will take multiple calls and different phone numbers to reach the correct person. If you are calling 3 hours a day, expect to reach 5-10 property owners.

If I were you, I would focus on specific areas and broaden my range to 2-12 units. It’s common for investors to own a handful of duplexes and quadplexes on a street and that gets you to your number.

Justin Reed · Answer

I would send them all an exact offer using direct mail. then you can pick the ones that you actually want to buy from there. 1000 isn't the best sample size I would try for 1500 or 2000 but even with 1000 you'll get some potential deals for sure.

Tucker Cummings · Answer

All really great advice here. I’d agree with another post saying that you should narrow down the list some to fit your criteria better. Then from there do your skip tracing to get the names behind the LLC. After that, either you can call them yourself or you can hire out someone to do cold calling for you. Don’t forget emails and direct mail too. And keep in mind it often takes 14 touches before a prospect responds to you. Good luck!

Should I call all 8-12 unit owners?

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