Cold calling landowners

Hi

Does anyone have any tips on getting into contact with landholders re potentially buying their site.

I have tried writing letters and have not had much success. Perhaps my letter isn't catchy enough? Any tips here appreciated. I have heard hand written letters have more success but have not yet tried it.

Is it best to phone or turn up on their door step?

Is there any angles or approaches that have worked for people in getting people to sell off market?

Any tips greatly appreciated.

Best of luck everyone with their developments.

Cheers

Ben

 

Buy the houses next door, be the worst owner/tenant, make the place less attractive for them to want to stay in the area. They will be glad to receive an offer.

 

Is that how Lakemba started off?

 

Hand written letters are the key! My aunty bought her place that way in the early 80's.

 

Change the wording.

I have a template letter I can post up once Im in front of a non mobile computer

Also got a great pdf property investment book that gives examples of how to attain off market sites amongst other practical info.

 

I have not personally used these but a friend has with success.

Sample 1:

Dear

I am sending you this letter in the hope that you might have been contemplating selling your property in the future.

I am very keen to negotiate with you, without engaging real estate agents and their hefty commissions. As a sign of goodwill I will also incur all legal costs for the sale of the property should we come to an agreement.

This is a serious and legitimate offer as I believe it will be a win / win for both of us. Please feel free to call me on my mobile number 0405 000 000 at anytime.

Kind Regards



Mobile Number xxx xxx xxxx

Sample 2:


Dear Sir/ Madam,


My name is Joe Pro and I am writing to you about your property at 128 Perth Rd, Perthville WA.

I will be frank; I am quite interested in discussing the sale and your future plans of your property with you as it may be of interest to us as a potential development site.

I offer you this without even looking inside the home, so you don’t have the associated headaches of strangers walking through your home or preparing your home for valuations and inspections etc.

Realistically, I can save you thousands of dollars in real estate commissions, marketing fees and renovations and will take the property as it stands today!

I am a very motivated local developer and I’m searching for properties such as yours. If you wish to discuss this opportunity further please don’t hesitate to call me on my private mobile number at any time – 0410 000 000

Sincerely,


Joe Pro



Mobile Number - 0410 000 000


Property Developer

 

If anyone wants a copy of the property development eBook/course email me @ [email protected] and I will send you a copy;

Residential Real Estate Development
Made Easy
Second Edition
A Comprehensive Instructional Course For
Individuals Who Want To Become Residential Developers
Colm K Dillon
Developer & Author

 

I like the first one but not the 2nd. That would put dollar signs in vendors eyes.

 

Most peeps will still get a few agents around to make sure they are not getting "duped". REA will probably say "I can get you way more" and then price condition the seller down 2 weeks later.

Mitigant is to set up a meeting with REA and seller (without REA knowing) and set the record straight .......armed with a couple of bank valuations.

 

I guess this example would be better for a bulk letterbox drop.

 

The typical response rate is very low with letterbox drops. I trialed it once for finance deals in my neighborhood as I did my daily walk.

1500 dropped = 1 deal and that generated 1 referral to a neighbour a year or so later.

So 1500 flyers dropped and 2 x 500k deals.

Worth the effort imo but needs to be done in bulk.

 

That would do me.
If 1500 people responded I'd be screwed

 

what are peoples thoughts on putting hard figures in the letters.
I would imagine people don't want to negotiate, seeing hard figures is a simple yes/no decision.

 

The average Joe doesnt understand the hard figures and will add to the confusion me thinks.

If you genuinely make it "all about them" and what they want out of the deal you will fair well, not loosing site that you need to make 20%+ profit as well.

 

Best to garner interest and then show them the figures in a face to face meeting.

 

Me: Gday Dulcie, I just wanted to catch up for a cuppa and some nice scones - and also KABLAMMO, presentation, $$$!
Dulcie: You had me at scones darl.

 

Another option I am contemplating right now is to offer the owner a registered valuation of the property at your own cost.

The valuation can then be used towards negotiating a realistic (i.e. non-RE agent inflated) price with the owner.

Plus; for people who are not in the mind to sell initially, they may want to see what their property is REALLY worth and be encouraged to sell by the valuation versus your offer.

 

@Azazel I reckon you just sweet talk your way into a sweet deal

 

I have tried cold calling on property owner before and what I found were:
a. Often houses are tenanted
b. If you find a willing owner/seller and start talking figures the next things is they are off to the nearest RE agent to confirm prices. The RE agent always say they can get a better price for them
c. Ensure you know the historical sales prices for similar houses in the same area. Reports are available from RPData but also do your own homework.
d. Now the best approach is to see the prospective seller then together with their local RE agent and ask to substantiate their so-called higher prices.
e. However if you dont have a track-record/reputation or trusting relationship in the community you are going to battle to achieve this. Especially if the RE agent has been around in the area for a long time, which is often the case. Why would the owner/seller believe you and arrange such a meeting - this is the key.

While it may work for some, my conclusion after wasting a substantial amount of time to attempt this, is to either use a buyer agent (which I havent tried yet) or go on adverts (because you then have a motivated seller) and pay a small premium. In the end its a numbers game and your due diligence & feasibility must show that you can make a profit based on your predicted capital cost or move on.

 

I guess you just gotta think what you would do if someone knocked on your door.
My 1st instinct would be to get rid of them as quickly as possible.