Issue 9
Q: Last week, you answered a question about marketing a property with an ADU, the goal being to market the benefit to buyers who hadn't thought about being investors. What if I want to really start targeting investors for my listings that have ADUs? That seems like it would be a great additional benefit to tout to sellers as part of my listing presentation.
A. I totally agree! And with more properties with ADUs coming on the market in the coming years, having this additional benefit to showcase to sellers will serve you well.
My advice is to begin to cultivate a list of investors which might take a bit of work on your part (or you can hire people to do this for you), determine your campaign materials that you will send out when you have a listing, and what additional information you will have available for the investor when they contact you. Then, make sure you have materials available in your listing presentation to highlight this system. Of course, The Lones Group is happy to help with any or all of this - just email [email protected] to set up a consultation.
STEP 1: Build Your Targeted List of Investors
I wouldn't focus on large institutional investors, per se, but on mom-and-pop investors, those who have a rental unit or two, perhaps even people in your database, local investor groups, and - here's an interesting idea - 1031 Exchange Facilitators.
1031 Exchange Facilitators?!? Yes! Why? Sometimes an investor sellers a property but for some reason, hasn't identified a target property to buy or that targeted property does not work out. The investor needs to park their money somewhere and is fighting a ticking clock, so an investment that is ready to go might solve a 1031 property purchase problem for an investor.
How do I find investor groups? There are investor groups all over the place. You can find them via a Google Search, via Facebook (search for groups as well as events), and sites like MeetUp. Find a few that look like they would be good options for listings like yours and begin to show up. This also allows you to start to learn the property investor mindset so you can incorporate answers to their unasked questions and concerns in your property information packet.
STEP 2: Build Your Campaign Materials
What is the equivalent of a Just Listed card for investors? It could be as simple as a Just Listed card with a QR code to get more information.
Or how about THIS idea?:
A four-page newsletter that is essentially like a four-page house flyer but with a page devoted to the benefits of this property as an investment - potential rents, operating expenses, recent improvements, information about the area, proximity to transit, parking, etc.
"Whoa! That sounds expensive to print and send!"
I looked up the pricing on Xpress Docs - our print partner. If you have a list of 200 recipients, the pricing comes out as follows for two different mailing options:
- 11 x 17, folds down to 8.5 x 11 printed on 110# gloss cover (heavy paper): $3.13 a piece
- 11 x 17, folds down to 8.5 x 5.5 printed on 100# gloss text (lighter paper): $1.44 a piece
If it were me, I would send the second option for properties that are good investment opportunities and save the second option for truly fantastic opportunities.
Wouldn't a seller be impressed with this additional layer of marketing? I think so! So now let's look at Step 3...
