What is the best kind of absentee owner?

Question

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.

Michael Quarles · Answer

That’s a bigger question than it appears..

Absentee are set into 3 groups...

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.

David Wedemire · Answer

Someone looking to get out and will consider alternate forms of financing such a seller financing

Michael Quarles · Answer

Is that a trick question?

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.

Robert Dobbs · Answer

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.

I'm sure they will be happy to show you!

rd

Chris Martin · Answer

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

Matthew Esqueda · Answer

Michael,

Can you elaborate on how you filter for low equity vs high equity?  Does ccore logic allow for this search criteria?

Thanks looking to do some mailing soon.

Omarwali Jones · Answer

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.

Omarwali Jones · Answer

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?

Shanequa J. · Answer

The register of deeds or what ever place your county's deeds are recorded.

Mary Spalding · Answer

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.

What is the best kind of absentee owner?

Most Popular Reply