Private Money Loans for Properties With Out-Of-State Owners
Category : Hard Money Loans , Real Estate Loans
If you really want to be successful as a real estate investor, the most important factor is finding good deals. If you can’t find a good deal, your chances of securing a private money loan is very less because this is extremely important in the eyes of real hard money lenders. If you want to find good deals, you should consider it as fishing. There are different ways of fishing. Either you can fish with one pole or you can fish by using a long line and a bunch of hooks.
The same goes for finding properties. There isn’t just one famous way of finding good properties. You should try a horde of different strategies. You will definitely need a wide range of hooks inside water at the same time. One of them will certainly hit at something useful. You shouldn’t use a single fishing pole but a long pole with several hooks. The ideas I’m going to discuss here will not guarantee you private money loans but they are good enough to get you financing from private money lenders.
Finding properties of out-of-state owners is one of the best ideas for making you successful as a real estate investor.
There are many people who have to move to a different city or country because of their careers or personal requirements. All these type of people have one thing in common. They are willing to sell their property as soon as possible, so they can move to their new house in a new place.
On the other hand, there are people who have bought a property as an investment. But later, they realized that it didn’t turn out to be as they’ve thought. Management of these kinds of properties from far is another problem
There is another type of out-of-state owner property that has been left by your parents or grandparents after their death. The kids or grandchildren who are living in other parts of the country would like to sell that property in a jiffy to distribute their shares
All these things makes a motivated seller who is willing to sell their properties as soon as possible. It is your job to find a motivated seller like this because this is one of the few places where you can make good profit margins. The lenders would also be able to see that and they’ll fund you private money loans easily.
Two things can help you here:
1. Finding a motivated seller
2. Finding properties that are in need of repairs.
You can also find a list of out-of-state owners online or at the county recorder office. You can purchase the list or you can look at the tax roll and check the mailing address of tax notice. If the mailing address is different from the address of the property, this means that the property belongs to out-of-state owner.
You should start a postcard or mail campaign to out-of-state owners, who have a property and who are living out of that particular state where the property is located. You should try to get in touch with them immediately, so they are not approached by any other buyer.
This could turn out to be fruitful for you because these motivated sellers are already waiting for different offers and these campaigns can help them in finding some really good deals.
All the out-of-state owner properties are considered to be good opportunities because they can be bought at fairly low prices as compared to the normal deals because the sellers want to unload them in a jiffy. These properties hold good opportunities for investors as well as private money lenders.