#269: Generating A Massive Deal Pipeline With Direct Mail in a Competitive Market + Buying Rentals in a Tenant-Friendly State With Enis Shehu
Feb 11, 2025
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Enis Shehu, a seasoned real estate investor from Boston specializing in direct-to-seller marketing, delves into his journey from flipping properties to managing a rental portfolio. He shares his unique strategies for generating off-market deals through tailored direct mail and highlights the vital importance of consistency in outreach. Enis also discusses navigating the complex landlord-tenant laws in Massachusetts, offering insights on adapting strategies for different property types and the significance of understanding tenant dynamics.
Enis Shehu emphasizes the evolution of his investing approach, which transitioned from flipping properties to acquiring multifamily rentals for cash flow.
The utilization of direct mail marketing is crucial in Enis's strategy, tailored for different seller profiles to maximize outreach and engagement.
Navigating tenant dynamics in Massachusetts involves meticulous financial planning for evictions and understanding tenant situations during initial consultations.
Deep dives
Real Estate Journey and Strategy Overview
Enes Shehu began his real estate journey in 2014 after selling a small business, initially focusing on acquiring multifamily properties for their cash flow potential. His approach evolved as he encountered the challenges of purchasing small multifamily units, leading to a pivot towards flipping and wholesaling to generate revenue for further acquisitions. Enes's primary strategy involves direct-to-seller marketing to build a pipeline of off-market deals, emphasizing the importance of understanding the local real estate market dynamics. His experience with heavy value-add projects has shaped the operations at Whiteacre Properties, focusing on redeveloping underperforming properties while navigating complexities in Massachusetts's landlord-tenant laws.
Direct Mail Marketing Tactics
Direct mail remains a core element of Enes's marketing strategy, wherein he consistently reaches out to property owners to initiate conversations about their multifamily properties. Over the years, while direct mail was the main focus, Enes has expanded into various other marketing channels, including online lead generation and SEO. Tailoring messaging for different types of property owners improves effectiveness, as multifamily sellers often require more sophisticated communication. He emphasizes that maintaining consistent follow-ups is crucial, often accessing previously untapped leads through automated communication methods.
Navigating Tenant Challenges
Enes acknowledges the difficulties of managing inherited tenants, particularly in Massachusetts, where longstanding tenants may resist rent increases due to local regulations. Effective underwriting requires meticulous planning for potential tenant evictions, necessitating budgetary contingencies for legal fees and lost income. The team seeks to understand the tenant's situation during initial seller consultations, aiming to identify pain points that could facilitate a smooth transaction. Successfully navigating these tenant issues can present significant challenges but can also lead to lucrative opportunities in acquiring undervalued properties.
Scaling the Business Through Hiring
A critical lesson in scaling his operations was recognizing the need to outsource responsibilities early on, particularly in bringing on an acquisitions manager. Enes initially struggled with complexity in managing all aspects of the business alone but learned that delegating was essential for long-term growth. He now utilizes personality assessments during hiring to better match candidates to the various roles required in the business, emphasizing the importance of alignment with company goals. This shift has not only enhanced productivity but has also allowed for personal development by freeing up his time for strategic planning.
The Importance of Planning in Construction
Rushing into construction without proper planning has been a recurring theme in Enes's learning experience, often leading to increased costs and project delays. He stresses the importance of taking the time to thoroughly plan renovations, including acquiring necessary permits and finalizing designs before commencing any work. A well-structured approach helps streamline construction and minimizes the need for costly revisions later in the project. By adopting a more methodical strategy, Enes has been able to ensure efficiency and profitability in his renovation efforts.
In this episode, I chat with Enis Shehu, a seasoned real estate investor based in Boston, MA. Enis shares his journey into real estate, from his early days of flipping properties to building a robust rental portfolio with his team at Whiteacre Properties.
Join us as we dive into Enis's unique approach to sourcing off-market deals, focusing on direct-to-seller marketing strategies, and the importance of consistency in outreach. He discusses the challenges of navigating the complex landlord-tenant laws in Massachusetts and how they adapt their strategies for different types of properties, particularly in the competitive Greater Boston market.
Here are some key takeaways from the episode:
The evolution of Enis's investing strategy over the past decade
Insights into their direct mail marketing and how they adjust messaging for different seller profiles
The significance of understanding tenant dynamics and budgeting for potential challenges
Tips for new investors looking to start their journey in real estate
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