Are letters to multi family owners effective?

Question

Hey guys,

I am sure marketing has many variables to consider to determine if it's effective or not, but do any of you see results from these letters? If so, what kind of letters are you sending?

Also, anyone used DAVE LINDAHL's letters yet? I bought his muti family package and its got some good letters in there, but want to see if anyones used them yet with success (or failure!). Would love to hear your thoughts - thanks!

:D

Ben Wilson · Answer

Tony - I recently wholesaled a 4 unit building that I got from a postcard to an absentee owner.  The postcard actually referenced another property, but the owner called to say he wanted to sell his 4 unit building.  After checking it out I put it under contract.  Since I didn't have any buyers looking for 4 unit buildings, I sent a post card to all the owners of similar buildings within 5 or 6 blocks from the one I had under contract.  I was able to get the thing sold to one of the owners in the area in about 2 weeks.

In addition, I got a call off that postcard from about another owner that didn't want to buy, but wants to sell.  We're not quite there yet on price, but I have a feeling he'll come around by the time he gets my 6th or 7th postcard.

So direct mail has worked for me with multis - even though I wasn't specifically targeting them initially...

Andy More · Answer

I've done one mail campaign to multifamily property owners with great success. I sent out 80 mailers, got 8 calls, bought one 7 unit building and made 68k. I sent a letter to every property owner in my town that owned 5+ unit property between 100-300k. My second campaign will be any number of units, up to 500k, with atleast 30% equity.

I've never used any "gurus" system and just did what made sense to me.

Good Luck

I've never used any "gurus" system and just did what made sense to me.

Good Luck

Tony Nguyen · Answer

good thought Joel.. what about the inside? type and signed? handwritten all the way? what do you prefer?

Joel Owens · Answer

With a letter I want it to feel PERSONAL like I mailed to them exclusively versus a postcard that is a generic solicitation.

Joel Owens · Answer

I like letters handwritten on the outside.

Many of my family members have has been in the postal service for years.

Postcards are cheaper and easier to do BUT they also look like junk mail and the carriers insert them into junk circulars even when you paid postage.The result is many throw them in the trash without ever seeing them.

So I have never been a postcard fan.

Donovan R. · Answer

How are you guys finding these properties for marketing?  I'm trying to find a list service that can target ARM resets for commercial properties.  Other than maybe eviction proceedings I can't think of another way to find large quantities of multi-families.

Andy More · Answer

I did not filter by LTV on my first mailer. However my second mailer which i've got ready to send out I did filter by LTV. I think my second mailer should be noticeably better since I know everyone has equity and can sell to me at my price if they want too.

Tony Nguyen · Answer

thank you, thats makes sense Jon. Yes, my list is only 50 @ this point. There are only that many in my area that has requirements that fall into my perimeters.

Jon Klaus · Answer

Depends on the size and frequency of the campaign. If your list is 50 and you are going to mail 1-3 times, I'd use a sealed personally signed letter.  If it's a bigger list with several mailings I'd go with postcards to save time and money.

Tony Nguyen · Answer

Jon - thanks for the advice. I'll take Lindahl's material and tweak it to make it more personal.

Andy - When you sent out, did you ever filter them based on LTV or do you just blanket all 5+ multifamilies between 100k-300k?

Ben - Great way to make money, I appreciate that.

Realtyman - I agree!

So do you guys have a preference - postcards or sealed letters?

Are letters to multi family owners effective?

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