I am wondering if anyone has had experience approaching an owner of commercial property if they are interested in selling it. A couple of books I have read recommend sending a letter to the owner, just to see if they are interested.
Has anyone done this? What is your experience?
Thanks, Rob
So nobody’s done this? Interesting.
Call them!
Mike
Funny that you should ask this question. Just today I was looking at a triplex I am acquiring and thought to myself how nice it would be to own a few more properties on that street so my properties are a little more contiguous. After some research with the city I found out who owned the property next to mine and called the guy up. Turns out he owns the next 4 properties down the street and is wanting to unload them all. I already have an asking price and will be making a trip over to see the properties tomorrow.
Just thought I’d share the story with you so you can see what a phone call can do. Another thing to keep in mind. Assume you and I are in the same market and you saw these same properties and sent a letter and I on the other hand made a phone call. Time is of the essence as they say, be prepared to move quickly, and when an opportunity presents itself do so, that is how I operate.
If you have commercial property owners information, don’t just write them. I have been in sales for many years. A letter does not mean anything unless it is followed up with a phone call, then a knock on the door. When you have done all of that and no bites, keep a log book to write down the dates and responses. Keep at it. They might not bite now, but a letter, phone call and a visit months down the road will work on some. Just keep it up. Royal…
By all means make the phone call! It’s a numbers game like any type of sales situation. Unless you are sending out a form letter en mass to a bunch of property owners, then you are just stalling.
On the otherhand, Direct mail is a numbers game as well with probably less than a 1% rate of contact so you have to judge whether the cost vs. rate of return is worth the effort. Of course, if making a 5-6 figure profit on that 1% is the result then sending out form letters could be lucrative and worth the effort!
Once you make contact with an owner, regardless of what their response is follow up with a letter outlining any discussions you may have made and reiterate any proposals. Their situations can change rapidly and may just call you back sometime in the future.