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.