A real estate listing that doesn’t have any residents is considered to be vacant property. Vacant lots have long been silent treasure troves for real estate investors. This type of property is best suited for fix-n-flip transactions. A prudent investor will purchase this bargain of a buy after using a few of the pointers listed below.
Identifying Vacant Property
- Banks would be your safest bet to find foreclosed properties that have been abandoned or waiting to be auctioned off. They will also have the owners’ information on record, making this an efficient process.
- A classic but effective way to find vacant properties would be “driving for dollars.” Simply drive around a neighborhood and search for such listings. It will be surprising to see how many homes and commercial spaces fall into this category.
- Talk to the local postal worker or delivery man. They usually know which house has been abandoned and for how long.
- Taking out an advertisement for vacant property listings in the local newspaper could prompt potential sellers to contact you for further information.
Finding the owner might be tricky. You could leave your business card in the mailbox or the door jamb. Perusing the bank details, checking tax records are also ways to use institutions to find the owner. The good old neighborly grapevine, too, can come in handy during this exercise but please be safe. Always be transparent on why you want this information ( I am a real estate investor! ) to avoid raising any red flags.
Once the owner has been found, what can you tell him to convince him to sell the property?
It turns out with vacant property, most of the owners are very ready to sell with some negotiations. Here are some pointers to drive those negotiations in your favor.
- Do your research on the property’s history and previous owners to have a good understanding of why it has been abandoned. Anything that can hinder the property’s reputation can be turned into your favor.
- If the property seems to need many repairs and fixing, take these into account before you sit down to talk. The property’s structural integrity and foundations should be healthy for you to make a decent profit in this venture. Pointing out the costs for these repairs and presenting them in a comprehensive format can convince the homeowner that they are getting the better end of the deal.
- Many owners are unaware that homeowners’ insurance doesn’t apply to a property if it’s not inhabited. This nugget of information can be the last straw to convince them to lower the asking price.
Fix it up
Doing your due diligence will always pay off when it comes to vacant property. Get some experts to weigh in on the property before you sign on the dotted line. Fix-n-flip companies like Relotz have years of experience in these types of properties and can help safeguard your investment.