Real Estate Investor · Jamaica Queens, NY · Member since 2011 · 42 posts · 9 votes
Speaking for yourselves those who have marketed successfully to absentee owners. What are the best types in your opinion? Heirs, people in debt, etc (these people are all out of towners in this example)....Obviously other investors and landlords are at the bottom of that list. Unless their in trouble, dumping, or looking to get out.
I'm working on putting together a yellow letter campaign now were we target about 1000 absentee owners split between 4 types 1 fams free and clear, 1 fams who owe at least 100k, 2 fams free clear and 2 fams who owe at least 200k and I'm wondering if I should get even more specific. Say for example heirs only. As they'll probably be highly motivated assuming in-fighting is taking place.
Ones that don't want the property to the point where they will let you wholesale it to another investor or let you have it for a good discount,rehab and flip it for $$$$$$$$$.
Ones that don't want the property to the point where they will let you wholesale it to another investor or let you have it for a good discount,rehab and flip it for $$$$$$$$$.
The really really really really motivated ones.
haha obviously :roll: not looking to wholesale though. I'm thinking out of towners that owe and 'ran away' from the property are probably a good place to start. Someone came into our office a few days ago with a hot lead on a guy that owes on 2 family that now lives in Georgia will see what happens with that
Someone looking to get out and will consider alternate forms of financing such a seller financing
hmmmm initially I thought what could be better than all cash? But I only thought that for a couple of seconds lol. This forum and books have taught me to cover all my bases. So I figure mentioning to the seller the fact that they have other options, options that make them feel comfortable is a nice touch/disclaimer. All cash puts people on the defensive of 'oh no an investor trying to jip me' even if they want it.
Silly newbie here, how can you tell via tax records whether it is owned outright? My assessor's office only shows who the owner is, not who it is financed through. Sorry; just wondering.
Silly newbie here, how can you tell via tax records whether it is owned outright? My assessor's office only shows who the owner is, not who it is financed through. Sorry; just wondering.
The register of deeds or what ever place your county's deeds are recorded.
1. Out of state
2. in State out of City
3. in City
Ranked in that order
Then you should filter for investor type.
• Wholesalers or flipper for equity need to filter a high equity base.
• LO or Sub marginal buyers should filter lower equity.
Naturally Short investors filter for over leveraged and either in NOD, Lis Pens status, or Mortgage late.
Then filter by last sale date. I like 15 years or better although depending on the above you may have to go all the way to 7 years.
Only real issue with last sale date is it eliminates inherited and quick claimed properties that may be a prospect group as well.
Then look at what your buyers are looking for.
1) 3 bedroom
2) Year built or earlier
3) Number of baths
4) Minimum square footage.
Thanks Mike I'm going to paint a hypothetical picture of the types of deals my father has been doing for the past 32 years to give you an idea of what I'm looking for. Say the average retail price of a 1 fam home is between 250-280k, and I'm looking to get it for 100-150k depending upon price, area, condition, etc....and afterwards I throw 25-50k into rehab, so I make between 75-150k profit afterwards. Who's my target audience in your opinion according to those numbers who should I be sending mail to?
People who have the equity to afford to sell at those discounts in neighborhoods which support the resell value.
With that large of an equity reduction you'll probably have to market to all three absentee types.
I imagine the length of seller will play an important role as well.
When you say all three types, I'm assuming you mean out of state, out of city, and in city. In that case which 'groups' should I concentrate on? You mentioned being against heirs. I'm assuming older people who own free and clear, or just people who have owned for a really long time are the most viable option.
Silly newbie here, how can you tell via tax records whether it is owned outright? My assessor's office only shows who the owner is, not who it is financed through. Sorry; just wondering.
Owned outright means there are no recorded "borrowing" liens. You can't tell from tax records, but you can from an indexed search of your county records. You want to look at the recorded Deeds of Trust or Mortgages and if they have been canceled (or satisfied, depending on your county document types) then you can generally deduce that there are no recorded liens.
Example (Book-Page, Date, Names, type, description):
9419-444 5/24/1993 Last, FirstName Deed-of-Trust Lot 43 Kenwood Junction Wells Fargo
10223-12 2/4/2011 Last, FirstName Cancel 9419-444
Note that this would be a refinance:
9419-444 5/24/1993 Last, FirstName Deed-of-Trust Lot 43 Kenwood Junction Wells Fargo
10220-235 1/17/2011 Last, FirstName Deed-of-Trust Lot 43 Kenwood Junction FIFTH THIRD MTG CO
10223-12 2/4/2011 Last, FirstName Cancel 9419-444
Silly newbie here, how can you tell via tax records whether it is owned outright? My assessor's office only shows who the owner is, not who it is financed through. Sorry; just wondering.
Walk into a local title company (or one that is recommended to you!).
Tell them you are just getting started in your real estate investing career and will need a good title company to work with.
Ask them to show you how to look-up online mortgages at your local "County Clerk of the Court" Website.