Work it Smarter (long-winded…sorry) - Posted by Jimmy
Posted by Jimmy on May 12, 2006 at 07:39:22:
nice idea. Maybe we can refine the concept a little, so your efforts have a better shot of scoring.
First, identify exactly what it is you want. a single family rental? 40 SFR’s? 15 duplexes? a 100 unit apartment complex? This will help you throw your net in the right place.
Second, identify the areas near you where you can find these types of properties. Maybe they are everywhere. But maybe thay are concentrated in a few locations.
Hit the county tax records and identify the owners of properties that you like. Then make contract. A letter is fine. If the person is interested in selling, they might pick up the phone and check you out. But a more personal contact will earn you some credibility points. This requires some work on your part.
If what you want includes low income tenants, talk the Director of the local Housing Authority. They deal with many, many landlords. Ask if they know any landlords wanting to retire/sell whatever? I got a deal this way last year.
Put an ad in the newspaper. “Sick of Landlording? We Buy Portfolios” or whatever.
and definitely read the for rent ads and work backwards (as the other person suggested).but analyze the list of available rentals first to make sure they are something you want.
talf to everyone you know in any construction-related field. plumbers, electricians, property managers, roofers… they know the landlords, because they work for 'em. the PM’s can be wonderful (they have a long list of landlords as clients), except most are brokers, and will want to stick their noses in the middle of your deal
I have done several multi-property deals where I helped a landlord get out of the biz.
dead landlord was the first. and it was listed. can’t brag about it. don’t forget to check listings. sometimes they render good deals. that one was 10 properties and 18 units
newspaper ad was the second cluster deal. another no-brainer. just read the real estate section of your paper every day. I do it online. costs me nothing.
third cluster was listed. owner was a 90 year old broker. 8 units. ok. listing came through again.
another deal came from a plumber buddy. another plumber had 5 houses and wanted out. chalk one up for the network of tradesmen.
biggest deal was a 20 propery/40 unit. somewhat of a fluke. my attorney was handling a foreclosure for me. she mentioned that another of her clients was about to foreclose on a bunch of shacks and hovels. I told her: “Shacks and Hovels are my Friends. Call your clients and see if he will talk to me” Bingo! This was a perfect situation, because I had the sellers by the nuts.
Bottom line: be creative. think. who in your area works with lots of landlords? use that person as your lever.