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Mark in St. Louis

Marketing to Absentee Owners

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I am considering expanding my marketing campaign and have a question about my intentions.

 

Currently I am only doing a direct mail campaign to expired listings. No signs or ads yet. I like this because it has allowed me to target areas I am interested in. The campaign consists of both letters and postcards sent at 2-week intervals over a 6 month period. The letters and postacards are basically the text of the letter included in Michael's course. I figured...why re-invent the wheel! I have been doing this for about 3 weeks and have 2 properties under contract, and two more on the way shortly. So, I have been pleased with the results.

 

Here is my question. I am considering starting a similiar campaign to absentee owners. In other words, tax bill goes to a different address than the subject property. I have found a source for this list at a reasonable price. Do you think that absentee owners (who are probably landlording) are good prospects for buying a home on a L/P?

 

My thinking is that they are already open to leasing the property, may be tired of landlording, and might just want to hand over that responsibility to someone else...especially knowing that threre is a finite date in which they may have their house sold. Am I off base here.

 

Also, what would the downside be? I'm guessing that I may be getting properties that already have tenants, so I'll have to be an actual landlord until their lease expires. Is that the case? That means I'm also foregoing any option deposit money until I can get new tenant-buyers into the property. I guess I would try to sign up deals that already have positive cash-flow.

 

Michael, I'd love to hear your opinion, as well as anyone else's?

 

Thanks!

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Mark, absentee owners are a mixed lot, in my experience. Some you contact will be quite emphatic that they have no interest in selling their property. They purchased it as an investment, it is presently rented, it's appreciating, etc. So, why sell? Fine. Wish 'em luck and move on. Ninety seconds later and you've put them behind you.

On the other hand, you will hit on the homeowner who is just what you are looking for: a tired landlord. Perhaps he had a recent eviction. Or he is ready to lessen his load and enjoy the fruits of his labors lo all these years. If you find this guy, your ideas about The Lease Purchase Advantage will be music to his ears.

I don't know that there is much downside, Mark. If it turns out the property is presently rented you have the luxury of doing your homework and deciding if you want it, or not. If the existing tenants are month to month, having them vacate the premises to you can place your own tenant/buyer is no big deal.

On the other hand, if the tenants seem problematic, locked into a long term, below market lease, you can walk. It's important to remember that every property offered to us is not necessarily a good deal.

The bottom line: this marketing technique is definitely a good one to explore. If the start up cost is reasonable give it a shot and some time to prove its worth. One of the keys to marketing is to diversify. Try a variety of techniques and ideas. Keep careful track of what is working and what isn't. In a few short months you will have an efficient and cost effective marketing machine in place, and the deals to prove it.

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