MANAGEMENT COMPANIES

[tony]

Hi Tony,

I am considering visiting some of the local management companies in my search for potential investment leads. I am planning to provide them with the following letter of introduction.


Dear Sir or Madam,

Please let me take this opportunity to introduce myself. My name is Rene Arenas. I am an investor in single and multi-family properties.

I currently own 12 rentals units and I am interested in adding inventory to my existing portfolio. I reside in Downey and would be interested in any house or apartment complex within a 10 mile radius.

Should any of your clients be interested in selling their properties please don’t hesitate to contact me.

I am not a real estate agent intending to list the properties

Thank you for your time.

Sincerely,

Rene


Is there anything you suggest I should add/delete from the letter?
Your opinion is highly appreciated

Thank you

Rene

[Tony Alvarez]

Okay, here we go!

Thank you for asking my opinion; I think your letter is just fine.

This is probably one of the few times when informing the reader that “you are an investor” is a PLUS!

Your letter is good because it does answer the questions A, B, & C (below) in a pleasant and simple to understand manner.

And it also conveys that you may be a future client (I own 12 rental properties) which in this situation is a PLUS and an attention getter for a property manager; just that line will get them to KEEP READING! ;-)

You always want to keep these type of letters brief, direct and to the point.

Remember you are speaking to a person whose time is valuable; they get tons of mail and most of it is nonsense.

So you want to capture their attention quickly!

With this in mind, I would change the positioning of two sentences- your first one where you start off by introducing yourself, with the second one where you state right out of the gate- “I currently own 12 rental properties” … get it? Just switch them as they are both well written. And…forget “proper letter writing etiquette” we are looking for a response not a grade. ;-)

Remember, many times the mail is NOT being opened by the “main decision maker” so the mail is getting screened for marketing /advertising junk; so the more personal and simple the better.

However, you want your letter to quickly address and answer the following questions-
A- Why are they reading this letter?
B- What’s in it for them?
C- And what do you want them to do? - notice this is LAST but VITAL to YOUR needs!

Other considerations:
1- You might want to mention that you have the ability to obtain financing (prequalified for some amount, provide a copy of pre-qual letter from bank or hard money lender).
2- Or that you’re open to seller financing if the seller wishes.
3- Address the fact that you can perform quickly if needed.
4- That you are open to cooperation with sellers 1031 exchange if needed.
5- If you are open to buying properties in disrepair or with below market rents, with high percentage of vacancies or with problem tenant situations…(you could just state “problem properties or situations or tenants”) IF THAT IS THE CASE YOU ARE OPEN TO BUYING PROPERTIES WITH THESE TYPES OF LIMITATIONS…;-)
6- At the bottom just state you are NOT a licensed real estate agent (remove the statement of “looking to list” they may also think you will want to represent yourself when buying and blah, blah, blah… keep it simple).

Also, remember all of these other considerations I’ve listed are good points to include and questions to answer, but NOT actually necessary.

Lastly, end your letter with something that creates a link between you and the intended reader- what do you want them to do, read your letter and if they have nothing, no situation presently that fits what you need, just throw your letter away? HELL NO!

You went through all this trouble to write to me and get all these great time tested suggestions-;-) YOU BETTER PLANT SOME THOUGHT IN THEIR MIND OF 2 VERY IMPORTANT ITEMS…

1- IF YOU DON’T NEED ME TODAY YOU MIGHT NEED ME TOMORROW! -“If presently none of your clients are interested in selling, please keep my letter for future reference. I am a long-term investor and always open to buying new rental properties.”

2- IF I DON’T HEAR FROM YOU SOON, EXPECT A CALL OR VISIT FROM ME AT YOUR OFFICE- I WANT TO BE YOUR LONG-TERM BUDDY!-“I hope to hear from you in the near future and will make time to follow up with you soon. It’s always good to meet and make friends with other real estate professionals in my area.”

Basically- YOU’RE NOT GOING TO GO AWAY or DISSAPEAR should your letter end up in the trash!

Following up is the single most important step next to taking your initial action to connect with anyone and over time will be responsible for your ultimate success at anything you decide to achieve.

Simple example- most people that win the lottery have played it consistently for years.
LESSON- If you want to win you must keep playing and remind the universe- you’re still waiting!

Finally- Always write and express these thoughts in your letters IN YOUR OWN WORDS- do not copy mine verbatim; that is not wise.

Use mine as a guide ONLY- It just helps when you THINK and FORMULATE and then EXPRESS them YOUR WAY because that internal process causes changes in your being that improves YOU!
Thank you for your questions, I sincerely hope I have been of service.

Your friend always,
TA