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.
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.