I'm a wholesaler here in Raleigh, NC and I recently purchased a new list that outlined two criteria. The first was that they were and absentee owner of a property in a given county. The next was that they made their purchase in between the years 1990 and 2000. Could it be a mistake to go for absentee owners that have held their homes for this long? does it imply that they are less motivated?
I'd like to hear everyone's thoughts on what they feel Is the perfect list in their market.
Less motivated? Never heard of a burned out landlord? I read somewhere long ago that the average landlord lasts 3 years before calling it quit. Some that last much longer found one decent tenant during those first 3 years, then set it and forgot about it. Now, they have a tenant in a house that is run down, beat up, and the tenant is paying 1990 rent rates.
So yeah, plenty of motivation in that list.
Originally posted by @Justin Hackney :
... The next was that they made their purchase in between the years 1990 and 2000. Could it be a mistake to go for absentee owners that have held their homes for this long? does it imply that they are less motivated?...
What you are missing is that between 2000 and 2015 is some 15 years of buying activity. Some percent of those transactions may (or always will) experience some form of distress that may lead to foreclosure every year. So you would be missing quite a bit of motivated sellers or sellers on the verge of motivation by excluding transactions that occured within that range of time.
Thanks for the input. My list has been doing great in my opinion. Out of every 20 yellow letters I send out I get about 2-4 calls but I was curious to see if anyone had differing opinions.
Speaking of, today I just got a call from a guy who purchased land back in 93 for 14K and it's assessed now for 75K... I wonder what he'll take it for :)
I've gotten a couple of yellow letters (Wake County). I called both and left a voicemail (my name, address of property, phone # and an invitation to discuss), but never heard back. I was not interested in selling, but I was interested in making contacts because I want to buy.
I don't understand why some folks bother to spend money & time to send out these letters, but don't call back. Maybe they sent out too many at once and the volume of calls was too much? But maybe call me back two weeks later or a month later or two months later? Nope, didn't happen.
Oh, and @Justin Hackney -
I see that you are keeping active here on BP - that's awesome!
Keep at it and best of luck with your growing business!
It could be that they sent out too many... Or a host of other reason ( could have already quit! )
Can I ask if you've had any luck making connections down here?
There are a lot of New Yorkers that make their way down to Raleigh it seems
motivation is situational and zero percent related to length of ownership. You could have a property purchased a year ago in cash by a wannabe flipper. Not knowing enough, they jumped into a property and couldn't handle the total scope of repairs. Now very motivated to get out from under this. Or someone who purchased a turn key 4 yrs ago and is burnt out or whatever and wants out fast. Plus divorces, inherited properties, job relocation, etc. none of those circumstances correlate to length of ownership.
I'd suggest on your next list to limit by equity % instead. That way when you find a motivated seller, there's room to get a good deal.
I have my broker/PM - she's awesome. She's also an investor, but in a whole other stratosphere, so we are not competitors. I have an attorney who is great and currently working with a contracting team that seems to be on top of things (so far, so good) on our 1st flip in Raleigh.
You're right, there are a ton of Yankees that end up in the Triangle area and we all somehow show up in Cary, one way or another.
I am on your list (signed up on your site) :)
Regarding "There are a lot of New Yorkers that make their way down to Raleigh it seems." Maybe. But if you add that absentee criteria (owner is in NY) to the `SaleDate` > "1990-01-01" AND `SaleDate` < "2000-01-01" for Wake county, you only end up with 55 total properties with a fair number owning just land.
Out of state owners, buying in the 1990's in Wake county yields 3,083 public record hits. If you start looking at a reduced sample set like asset types (e.g. SFR, raw land, etc.), assessed values (e.g. < $250K), large equity (if you have reliable data), I think your focused list will be more productive. BTW, with your criteria on the 14K land guy... that matches a single parcel.
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