In a recent article by Brian Kline, Kline discusses the new strategy that investors have when looking for a house to flip. The market today is very much a sellers market, much in part to the increased popularity in flipping houses. So where inventories on investment worthy houses are low, investors have a new strategy around finding these properties.
There are many people who own rental properties, yet live a significant distance away from these properties. Often times people inherit these properties from loved ones who have passed or they had previously thought it might be a good investment. Maintaining a property that is of great distance from the owner can be an agonizing burden, thus the appeal of selling. Investors are now direct mailing people in these types of situations. By utilizing property tax lists and other resources from the internet, investors are reaching out to these small landlords with an offer.
This tactic has the potential to be very lucrative. Maybe these homeowners have often thought about selling the rental property they’ve acquired but didn’t have the time to go through the process. When you’re selling your property, while you don’t have to be there every step along the way, you do have to be present for some of it. Which proves to be difficult to those who don’t live close to the property. An investor reaching out to someone in a situation like this could be a saving grace for someone. Moreover, you would likely be able to get a rather low price for the home, especially if the landlord is eager to get it off their hands. The investor is then given the opportunity to flip this property at a very quick rate and thus turn it into a very quick profit.
In Kline’s article, he reiterates that these investors aren’t just “making random direct mailings”, which is rather obvious. Investors are choosing to direct these offers at owners who have owned the home for a substantial amount of time and towards houses that haven’t been remodeled in a while. This alleviates stress for the owner who would have to remodel in order to sell their home down the road. While you’re sure to get a few baffled responses, it’s worth a shot to be one step ahead of the MLS when looking for properties to flip.