There are 5 reasons NOW is the time to really look at absentee owners as your primary method of finding sellers - with equity.
But before we get into the reasons why absentee owners are a great market right now, it's important for us to define absentee owners in the manner in which WE discuss it for purposes of this article and in our Absentee Owner Marketing training.
For our purposes, when we refer to "absentee owners", we'll be referring to owners of real property whose mailing address is 50 miles or farther away from the subject property.
Let's look at the top 5 reasons absentee owner marketing is ripe for the picking right now.
1. Absentee Owners Have Equity.
One of the biggest reasons that real estate investors are having a hard time making money in this market is because "motivated" sellers simply don't have equity in their properties. However, the fact of the matter is that there are millions and millions of properties that DO have equity, and absentee owners are a large segment of that market.
2. No Emotional Attachment to the Property. An owner may be "absentee" for any number of reasons. They may have had to relocate for a job. The property may have always been an investment property. Perhaps the property was left to them by a family member who passed away. Whatever the reason for their absenteeism... there's often very little to no emotional attachment to the property other than the headaches of long distance property management!
3. Opportunity for Additional Streams of Income with No Extra Work.
Let's face it... MOST leads are not going to be deals. The truth of the matter is that 90% of all the calls that you receive from your letters will simply not fit your investment criteria. The benefit is that there are lots of great Realtors that are willing to pay you a marketing fee for these leads. Let's just say you send out 200 letters (the right KIND of letters) and get 25 calls. 10-20% of those are just going to be dead in the water... another 10-20% may be good for your investment criteria. That leaves 15+ deals that you can work with a Realtor on and get a fee. Even if you only get $100/lead, that's an extra $1500 in your pocket on deals most investors will toss in the garbage.
4. Less Competition.
The best - and often only - way to reach absentee owners is by sending them a letter. And postage costs money. Now, let's be honest here... The economy is tight and people are watching pennies. As a result, people aren't willing to spend the money on their marketing. The good news is, if you know what you're doing, you can get your letters out the door for $.50/letter. And, again, if you leverage marketing fees from the deals that don't work out, you've more than covered your costs - and made a profit!
5. The "Gurus" Are PUMMELING All Aspects of the Foreclosure Market.
I don't want to get into "guru-bashing", but truth be told, I don't like product launches and massive promotions where hundreds of people are all peddling the latest pill to cure what ails you! Right now, REOs take this cake. And the kicker is that currently, the state of REOs is in disarray. The lenders will clean it up quickly and figure it out, but for right now...
...Let the flood waters subside and come back to REOs once the "other" buzz has worn off!
At the end of the day, right now, absentee owners are a highly profitable market.
If you want to tap into the absentee owner market, it's quite simple and HIGHLY lucrative. The key is to do it the right way.