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 on finding abandoned houses and the people who own them.
Not all Abandoned Properties are run down, or in need of repair. Some abandoned properties turn out to be in quite good condition, but for whatever reason the owner still needs to unload it in a hurry. This provides an opportunity to purchase property at a considerable discount.
Needless to say, the nicer an area is, the fewer abandoned properties you'll find. But you don't have to go into the worst parts of town. You can find plenty of abandoned properties just about anywhere. As long as you know where to look.
Finnding Abandoned Properties – What To Look For
- Pre-foreclosure listings – 3rd party services
- Free classified ads – buzz words – “must sell”, priced below market, etc…
Window Shopping Compared to Other Properties in the Neighborhood
- Untended, overgrown gardens and lawns
- No curtains in the windows
- Overflow of mail
- Backyard – fence condition, grass, shrubbery, etc..
- Looks like no one lives in the house – No furniture, messy, dishes, etc…
- Talking to neighbors
- May or may not have lock box
- No “For Sale” Signs of any sort
Finding The Owner
- Check mail if its overflowing – It is illegal to take mail out of the mailbox – Look for a name.
- Google Search Names – White Pages – May be harder with common names
- County Tax Records (best option) – Property Search – find original owner
* If owned by entity, see all the holdings of the entity and find a contact number
* Any transfer of ownership will be documented here - Public Records – NOD Filings – Notice of Default
- Contact a realtor – Check if property has ever been listed – Transfer of Deed History
- Government assistance programs – Was this a house in the program?
- Talking to previous tenants – good or bad, you will find out what you need
- Neighbors – gives you an idea of how long its been vacant and who lived their previously
Contacting Abandon Property Owners
- Send letters
* Send to address you find in public records
* Does the mail get forwarded? What's the new address?
* Use tested mail that grabs seller's attention – research examples online
* Identify that you are an investor, list the benefits that you bring
* Include a phone number and email address - Phone calls – get faster results
* More personable
* Harder for people to pass you off
* Easier to find out what you need to know
* Focus on benefits and how you can help
Follow-up: Always remember to follow-up a few days after your initial conversation with the seller. This will improve your chances of establishing a relationship with the original home owner.
When purchasing abandoned property, be sure to follow the same procedures as buying any other piece of real estate. Look for the right opportunities, speak to the right people, and you will find real estate investing opportunities that fit your needs. Remember, not all abandoned properties are in bad or low-income areas, there could be some in your own backyard. Drive around, look for some of the signs we've listed and apply what you now know.
The majority of work required when finding owners of abandoned homes is in the research. Good thing for you, everything you need is public record, so simply follow the breadcrumb trail to the decision maker.
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.
We love your feedback and welcome your comments.
Please post below: