Inventory may be rising, but it’s still tight. And every agent seems to be looking for more ways to increase their number of listings.
Instead of waiting around for more sellers to come your way, there’s something you can do right now.
My brother Stephen, a Realtor® in Virginia, found a way to close 40 additional deals in one year—all while helping homeowners unload unwanted properties. He did it by focusing on absentee owners.
With a bit of work, you can relieve beleaguered homeowners of properties they no longer want, find homes for frustrated consumers, form enduring, profitable relationships with investors, and perhaps even build a nice retirement plan for yourself—all while dominating a niche and pulling in more commissions.
Keep scrolling, and I’ll show you exactly how Stephen built this system—and how you can, too.
Why work with absentee owners?
In addition to the benefits I mentioned above, there are many reasons to seek out absentee owners, several of which you may not have considered.
- They’re an inexpensive lead source. Purchasing a list of these homeowners is a cost-effective way to begin prospecting.
- There are far more of them than you may think. In Lynchburg and the surrounding counties alone, my brother received 10,000 names—that’s practically an endless supply of potential clients! The numbers will vary, but they’re certainly worth checking in your area.
- They can be highly motivated. Absentee owners may be stymied in their attempts to maximize rental income, have unoccupied properties sitting idle (generating a tax liability), or be saddled with inherited properties they can neither use nor want.
The strategy
The key to making this approach work is discovering and homing in on a homeowner’s motivation: What pain point can you solve by taking this burden of a home off their hands?
Step 1: Purchase a list
Stephen uses Pioneer Data Solution, Mojo Dialing Solutions, and DealMachine to develop his list, but there are a lot of companies you can choose from to get info on absentee owners.
Once he has his names, numbers, and addresses, he cross-references them against the Do Not Call registry (don’t skip this step!); those that appear on it get added to a drip campaign.
Step 2: Start calling
The pitch they use is super easy. Simply let homeowners know that you’re working with an investor or buyer and ask them if they would be interested in considering an offer. The majority will be intrigued by what the offer might be, which starts a conversation.
Even if they don’t follow through with a sale this time, they’ll still have had a discussion that may prove profitable in the future when they are ready to sell.
Step 3: Visit the property
- One based on what they could get for it in its current condition
- One based on what they could get for it if they invested in repairs or renovations
- An instant offer reflecting what you or another investor will pay for the property
Using this approach, Stephen purchased 6 homes himself and sold another 34 to buyers and investors—that’s a total of 40 transactions. (And as of now, he’s got another 14 pending!)
Get everything you need to multiply your income
There are a lot of details and nuances to know if you want to pull this strategy off well, including:
- Which homeowners to specifically target and why
- The precise wording of the script that will get the conversation rolling
- Whether to market to typical homebuyers or invite an investor to take a look
- When it’s appropriate to make an offer below market value
- When to purchase a property yourself and how to pay for it
I can’t cover all the nitty-gritty here in this blog, but you can listen to Stephen’s conversation with me on Stay Paid, where he fully explains each tactic and what he and his team have done to systematize this strategy. In just 30 minutes, you’ll learn how to finesse this lucrative lead source that could significantly boost your GCI in the year ahead.
Take action
The chance to work with absentee owners offers immense potential not just to build your inventory and earn more commissions but to build a thriving niche and even long-term wealth. Don’t wait for the market to hand you an opportunity—start creating your own today!
