In Collaboration With

Sheffer Capital was founded by Tory Sheffer in 2019. Focused on sub-institutional, value-add multifamily, Sheffer Capital has transacted on over $70M of asset value across 650+ units in Michigan, South Carolina, & Texas. Sheffer Capital currently owns 250+ units valued at $40M, primarily in Metro Detroit and is actively seeking new acquisitions in the Great Lakes Region.

You can learn more about Tory and Sheffer Capital by subscribing to his weekly newsletter, The Capital Stack. Tory shares his knowledge and experience while utilizing his own portfolio as relevant examples.

4 Ways To Source Multifamily Deals

Cold Calling

The most notorious method of finding off-market deals in real estate is cold calling

Although it can be a tedious and frustrating process, reaching out to apartment owners directly can yield excellent results

Here’s how we do it:

1. Use a software platform (such as CoStar) to obtain contact information for property owners. CoStar's comprehensive database provides access to information on both on-market and off-market properties, making it an invaluable resource

2. Identify properties that fit our criteria through filtering search results

3. Begin the cold calling process, here is our pitch:

4. Keep detailed notes on the conversation, so when we call back we can pick up the conversation where it left off and create a deeper relationship

Direct Mail

Direct mail campaigns are another effective strategy for connecting with multifamily property owners who are not actively looking to sell

The same process we use to identify which properties to cold call is also used for which properties to send direct mail

When crafting the letters, we keep the message simple and express our interest in purchasing the property

It is important to mention our past acquisitions, demonstrating experience to potential sellers

To streamline the mailing process, we use a folder inserter mail machine (Neopost DS-63) and bulk mail permit to send several hundred letters at a time

We hand stamp each envelope, which helps reduce the likelihood of the letter being dismissed as junk mail

In many cases, we receive a response from an interested owner within two weeks of sending the mailer

Network (Word of Mouth)

Over the years, we have built a strong network of like-minded real estate investors

Within our network, we work with two main types of investors:

1. Experienced investors who want to share the workload

2. Inexperienced investors who are looking to gain firsthand experience in purchasing multifamily properties

In many cases, the latter group brings us in to lead the deal and they retain a small piece of equity

But it all starts with communicating our criteria, and not being afraid to tell the world we are buyers and we will partner with you

A significant number of our deals have come from our network, with many of the investors who brought the deals to us having made contact with the sellers through cold calls or direct mail campaigns

Brokers

We analyze broker listed properties daily

We constantly comb through broker websites, LoopNet, CoStar, and other platforms

We have forged close ties with brokers from whom we have previously bought properties, and they frequently inform us of deals before they are available to the public

Usually, the properties available on the market and even the "pocket listings" are more expensive compared to the off market deals obtained through cold calls and direct mail

That's all for today friends

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Have a great day and talk soon,

Jake