The real estate market has a wide range of potential for most investors. From investing in upcoming projects to distressed houses for house flipping, the market is huge. And in this emerging and profitable market absentee owners are playing an essential role. Before we move further let’s check out who can we consider absentee owners.
Who or What is an Absentee Owner?
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An absentee owner can be an individual or group who possesses a property but neither occupies it nor participates in the day-to-day management of the property. In other words, it can be said that an absentee owner is someone who invested capital in a property as part of an investment to get a return by renting or selling the property.
Here are a few examples of property owners who can be considered an absentee owners:
The owners who are out of state, owners who have invested in a property but use third-party property management to remain uninvolved, landlords with a gap in tenancy, those who inherited properties, owners with a military duty, and commercial real estate or real estate investment trusts (REITs).
How do Absentee Owners Make the Best Prospect?
Real estate investors find the great potential of business through absentee owners. They can pitch proposals to buy the property or can offer to list it in a Listsource so that potential buyers can find it.
There are multiple opportunities that a real estate investor can make out of the properties of absentee owners. Real estate investors can leverage absentee owners and motivate them to sell off their properties. These owners can be motivated to sell their properties:
When they are not receiving significant returns on their investment through rent;
When new rent rules are frustrating;
When they are looking at the property only as an investment and will happily accept new opportunities;
When it is an inherited property and the heir has no idea about the market value and would want to sell the property;
The owner is unable to afford the property or pays its taxes.
However, real estate investors should realise that not every owner will be ready to sell their occupied property. Whereas some would be looking at the property as an investment and would easily take up any better offer for returns, others might be emotionally invested in the property and would be reluctant to give up.
Where to Trace the Absentee Owners?
By now you must be having an idea of the type of owners and who can be the best fit for your approach. But even this leaves behind the question that what can be the best place to find these potential sellers. We have tried to bring some of the trusted places where you can look out for these property owners:
Long-Term Rental Listings: Although this is not a typical absentee owner list but can give you leads on some significant names of landlords who are renting their property. You can look for listings and find individual landlords rather than property management companies and approach them.
The Tax Office: You can start by simply googling tax records of your country and then find properties and some information about the owners. However, these searches allow you to look at one property at a time and do not offer relevant information like the owner’s name or the mailing address of the owner. So it becomes almost impossible to trace an absentee owner from a list. Moreover, some countries also charge to pull out property information from the tax office. So, if you are a professional real estate investor you might end up paying a good amount of money to get the information.
However, by buying you can get the records from tax accessors and can work out to get connected with the owner and pose a proposal.
List Source: A Listsource can help you to create a list of absentee owners that could help approach them with prosperous offers. It is recommended that you get your list source updated every 6 months so that you do not miss out on profitable properties and deals.
You can come across an absentee list source through a broker or a real estate data provider. However, you can do some smart work here by filtering the owners whose mailing addresses are outside of the country as they will more certainly be motivated to sell their property.
Apart from the above mentioned approaches, you can try cold calling or direct mailing to connect with Absentee Owners, when you see perks in the properties and the potential to earn significantly from it.
Real estate investors can approach them to either sell the property or find potential tenants or take up the property management responsibility. However, with all these approaches, they are bound to make profits and offer the owner a great deal against their property.
Photo by Binyamin Mellish: https://www.pexels.com/photo/lighted-beige-house-1396132/