What Is An Absentee Owner

Frank Chen

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got a quick video explaining what makes an absentee owner

Who are Absentee Owners?

Someone or Some entity that owns real estate, that doesn’t live in it, may live out of the state/country, and in many cases do not know they even own the real estate.

For real estate investors, focus mainly on individual owners, NOT LLCs, Corps, or “Trustee Owned”, to improve your chances of finding a good deal.

What type situations cause this?

Death
job transfer
upgrade house, can’t sell old one
divorce
remarried
elderly moving in with family
etc., etc. – any reason someone moves
Why these situations cause motivation?
The house is vacant, so they're paying for a house that they're not using. And on top of that, they're probably paying for their new house, so they have two house payments.
If they have it on the market, they're probably frustrated that most potential buyers are too picky. And they're not there to make the house look nice for showing.
too much hassle to maintain the property
too far away to be convenient
tired of being landlord with all the hassles
Long vacancy periods
They have a non-paying tenant in the property.
The property needs repairs, but they're not in town to oversee the renovation.
They have a property manager who is not taking care of the house. After all, the manager knows that this owner is out-of-state and can't see the day-to-day property management problems.

Overall, absentee owners, depending on their circumstances, are great motivated seller leads. The more you know about what creates an absentee owner, the better prepared you will be when you start marketing to them. (ie. targeting tired landlords, divorcee’s, etc…)

Absentee owners are great for investors who are looking for ways to buy property below market, and at the same time, possibly help out a distressed seller.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.