Niches That Bring Your Riches:Absentee Owners
I am currently doing a series on my blog covering a little about each of the types of niches you could consider when investing in real estate. Go here to go to the beginning of this series.
An absentee owner is an owner that does not live in/on their property; most absentee owners utilize the services of property management companies to take care of their properties for rent. These types of owners, can turn out to motivated sellers and are the most obvious. A lot of the time, they are also the most overlooked motivated sellers on the planet.
- Why this is a good niche to consider?
- It is an untapped market.
- Most investors don’t realize the impact that marketing to this group of prospects can have on your real estate business.
- Most investors don’t know how to market effectively to absentee owners, focusing on their hot buttons.
- The paperwork is simpler
- All you need is a contract.
- What are downsides of this niche?.
- Absentee Owners can sometimes be hard to find
- You don’t know how motivated they are when you market to them. You could be marketing to someone who is not motivated to sell at all.
- Good market conditions.
- When there is a mid to high rental vacancy rates.
- When the rental rates are low.
- When Interest rates are high.
- In a flat or steady market.
- Bad market conditions.
- When there are low rental vacancy rates.
- When the rental rates are high.
- Steps to do this Niche.
- Get a list of Landlords from recommended sources below
- Sort the list taking removing the following:
- Duplicates & corporations
- Square footage over 900
- Anyone who has owned their property less than 10 years.
- Use direct mail postcards to inexpensively contact them.
- Sellers will call your 24 hour hotline to listen to a 2-3 minute message.
- Only the most interested ones you will call back and run comps
- If owner is motivated then set time to see property and meet owner.
- Negotiate at no higher than 65% of market value.
- Sign contract.
- Where to find leads.
- Public records
- For rent ads in the newspaper
This concludes my article on Probate Investing. If you are interested in my personal coaching/training services for this and all the Niches I have shared, go here to see if my program fits your needs.
Watch for my next post on the Purchasing Property From Estate Filing Bankruptcy
To learn more about 12 of the most popular real estate investing niches, please enjoy the articles I have written detailing how to use them and grow your real estate investing business. Enjoy!