Does direct mail work for commercial multifamily? 30+ units?

Question

Hi all,

Whats your experience with direct mail campaigns for larger multifamily?  I am a agent/investor thinking about starting a  direct mail campaign but not sure if its worth spending $5k over a 6month period.

Does it work?

Is it worth the investment?

Charles Carillo · Answer

@Frank Bonzai

Direct mailing multifamily in general is a much longer timeline than single family. Do not expect to close anything for 12+ months. Usually, the owners are not as motivated as single family owners since most have income still coming in.

In regards to larger properties. We direct mail larger properties (30+ units) but they will usually use brokers when it is time to sell however; most brokers get listings by reaching out by phone and mail to property owners (they contact us all the time to sell assets we own of all sizes). I believe the key to it is having a professional mail piece and when you speak to the owner, don't tell them you want to purchase their property at a 10 cap. If you explain your experience and are willing to make a reasonable offer, you will be in front of most people direct mailing.

Jonathan Greene · Answer

Canned mailers to that size won't work in my opinion. You have to create hand-crafted mailers for apartment buildings if you aren't just doing spray and pray and hoping for one response. Find out who the principals are, do data research on them, get to know what they like, and then tailor your direct mail toward them with that. Everyone wants to make direct mail too easy, just say we will buy cash and that's it. Tip, 99% of those mailing those postcards can not pay cash. The more you know about the owner of large apartments, the more you can touch a nerve with the right personal letter.

Andrew Schutsky · Answer

One of the syndicators I work closely with and have invested in works nearly all of his large deals direct to seller via mail.  This includes some very large buildings including 300+ units and recently 900+ units.  He had success here but it took several years and several contact points and follow ups to make them happen.  Consistency, professionalism, courtesy, and persistence are key.

Jeffrey Donis · Answer

It does work although you need to be consistent with it and it could take awhile for you to see results.

Benjamin Aaker · Answer

Direct mail works for large multifamily, but it's much less likely to get a lead and it takes longer. You need to be in it for the long haul if you get started. These owners are usually more sophisticated than the typical homeowner and your mailings need to reflect that.

Does direct mail work for commercial multifamily? 30+ units?

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