Hidden Goldmines of Real Estate Profit
Over most of my investing career I’ve focused on investing in vacant houses. These are properties that have no “For Sale” sign on them but are vacant. These types of properties have been an integral part of my business.
Why? Well, these types of properties have no “For Sale” sign on them and in many cases aren’t listed in the MLS. That means that there’s a high chance no one knows about them!
Investors that are focused on the MLS, which is a vast majority, have no idea that these properties exist. Investors that are focused on F.S.B.O (For Sale By Owner) properties don’t know about them either. That means there are few investors actively searching for vacant houses. With that said, it’s easy to see why vacant houses can be hidden goldmines.
That’s not even the best part…
I’ve come to learn that vacant home owners are highly motivated and have many reasons to be motivated. Some of these reasons are the outrageous property taxes, weather, liability, insurance, vandals, squatters, and the list goes on. In many cases homeowners don’t have insurance on the property, which they rarely realize, because it’s vacant. After having a conversation with the vacant home owner, you can get a better idea for what would motivate them to sell and why they are selling. These are both crucial factors on knowing whether this is a good deal or not.
From my experience over the years, I’ve learned that vacant houses are generally Bank owned or privately owned. There may be a few exceptions, however both of them offer significant opportunity, but you must be careful to approach them in a completely different fashion.
First, with bank owned properties you will…
- Almost always work with a Real Estate Agent
- Need verifiable proof of funds
- Need cash to close
Now, with a private seller you will…
- Not have to work with an agent
- Not need proof of funds to assign a contract
- Not need the funds to close (because you’re not actually closing)
Although private sellers seem like the way to go, there’s a trick to the process. In many cases, they are difficult to find. Most investors think that is a bad thing, but not you and me. Why? Because the harder they are to find, the better the deal.
When you find a property where the site address and the owner’s address on file with the tax assessor match, you’ve really found a good deal. Most investors find these types of properties are just a dead end, but they aren’t. I prefer properties like this because there is next to no chance there is another investor that knows how to find the missing seller.
And now with the use of my Offer Generator, which you can access by clicking here, you can easily generate the perfect offer for all of your vacant house deals!