The Four Most Important Criteria for Absentee Owner Mailing Lists
Real Estate Investors use Absentee Owners mailing lists in direct mail campaigns. These motivated sellers are considered the primary target when looking to purchase off-market property.
There are 4 primary criteria to consider when you are creating a customized list for your market.
You want to have a specific area where you plan to purchase property. Depending on your area, this might be as simple as a couple zips, a couple cities or even full counties.
Home Market Value
If you don’t want to buy a Million Dollar Home – don’t mail to those owners! Decide what is the average in your area then request owners of property in that range. In many areas, $50,000 – $250,000 seems to be the sweet spot.
Loan to Value as a measure of EQUITY
Most investors want property where the owners have high equity – that is where the loan is a smaller percentage of the home value. With the high equity, it is easier for an owner to take a lower offer and still come out with some cash.
Loan to value (LTV) compares the original amount of the most recent total mortgages to the current home market value. The lower the LTV, the higher the equity. Most investors find that an LTV of 0-59% (at least 41% equity) fits the bill.
Type of Property
What do you think will be the best investment strategy for your plan? Single family homes? Multi-family homes (2-4 unit)? Condominiums? Apartment buildings? Mobile homes?
You decide what you want to include.
There may be other, more property specific criteria that you might want to consider adding. However, it is important to remember that you don’t want to get so specific that your list size gets whittled down too small. All marketing is a numbers game.
These might include:
Purchase date – how long have they owned the property
Owner Age – you might want to specify older owners to narrow down a large list
Number of bedrooms and bathrooms It’s important to include “unknown” so you pick up the property where the county doesn’t provide the information.