Finding quality property leads is one of the biggest challenges any real estate investor faces. While most are busy fighting it out in the multiple listing service, there are opportunities to be found elsewhere.
One of these opportunities comes in the form of vacant property leads.
Vacant Property leads typically arise when a home or parcel of land has fallen out of use by the current owner. This could be from relocation, inheritance, non-use, or even simply deciding to sell the property or move on to another type of investment.
Another reason vacant property leads take place is because of vacancy coupled with other distressed indicators. Vacancy on it’s own is a sign of distress.
Now keep in mind that while a vacant property can be the result of a motivated seller, simply because a home or parcel of land is vacant does not mean it will stay that way.
That’s where the art of lead generation comes into play. The key to succeeding with vacant property leads is to know how to find the leads, where to look, and how to assess if said opportunity fits your investment criteria. That is what this guide is about.
Vacancy leads are properties that look like they’ve been vacant for some time.
A property could become vacant for many reasons. Perhaps the owner moved, inherited the property and doesn’t want it, experienced some financial hardship, or decided to stop using or renting it.
For an investor, finding a vacant property can be a sign of a good opportunity.
But, not necessarily. The property could be vacant for any reason, and even if it is distressed, there’s no guarantee that the owner will be motivated to sell.
That’s why investors should think of vacancy as a lead, and not an immediate opportunity. It should be combined with other factors when looking at a property. Vacancy leads can be great when paired with other property criteria that suggest that the property might be a good potential investment. Vacant properties, just like distressed properties, can have a number of underlying causes that might point to a motivated seller.
If you are new to the world of distressed properties, we have a Complete Guide to Distressed Properties which covers the other ways in which properties may have potential.
Vacant houses can sometimes be more appealing objects of investment than those on the market. When a house is publicly listed, there is a strong possibility that soon after, the owner will contact several potential buyers. By targeting vacant properties, an investor can spend more time examining the opportunities and negotiating directly with the owner.
Some benefits of seeking vacant properties as an investment include:
By way of example, suppose that an investor is searching for a vacant single-family home, which is typical for the area. They have noticed that other homes in the area are quickly sold, and that the owner of the vacant property lives elsewhere. Additionally, that owner has been in possession of the property for a long time.
This combination of factors does not necessarily mean that the owner will sell the house to anyone. However, it does give the investor reason to learn more details about the property and the owner. It is important to determine whether the property fits their criteria and whether the owner is willing to sell.
There isn't just one way to find vacant properties. Successful investors often combine multiple sources to create a more accurate and targeted lead list.
County property records can provide valuable information about property ownership and mailing addresses.
When the owner’s mailing address is different from the address of the property, consider this as a clue for absentee ownership.
Therefore, it makes sense to investigate this particular property, as it might be possible to buy it from an absentee owner.
Furthermore, after identifying absentee ownership, it is rational to analyze if the property is occupied, vacant, rented, or has any other relevance to the investor.
Finally, remember that every county keeps records differently, so it is essential to be familiar with the way property data is stored in a specific area of investment.
Manually searching individual county records can become difficult when an investor wants to cover multiple markets.
Organized property data can make the process more efficient by helping investors research properties based on specific characteristics.
Depending on the available information, investors may be able to evaluate:
Rather than coming up with an extensive list of random properties, it is possible for an investor to narrow their options to specific properties that meet their criteria.
There are several ways to do this. Some investors choose driving for dollars, which involves searching for vacant houses.
The following signs may indicate that a house is vacant:
It can be a good idea to drive for dollars because the investor has found the properties themself, but it can also be a time-consuming task.
Seeing a vacant house provides no information about the owner, so investors should research the property to identify the owner. It is a good idea to combine this method with research.
Online maps and publicly available information can also help investors find vacant properties.
Nevertheless, it is essential to understand that information found on the web is not always up-to-date or reliable, so double-checking is necessary before marking any property as a potential purchase lead. A property that appeared vacant could have tenants, be under renovation, have recently been sold, or deliberately left vacant.
Finding a vacant property is only half the battle.
Prior to marketing the property or contacting the owner, it is essential for an investor to conduct due diligence to establish whether the property is worth pursuing.
Here are a few recommendations on how to evaluate a vacant property lead:
Begin with researching who owns the property.
It is critical to establish whether the owner is an individual, a company, trust, or another entity.
Make sure to document the owner’s contact information, including the mailing address.
If the property and the owner’s mailing address are different, this will indicate that the owner is most likely an absentee owner.
As with all information, it is essential to keep in mind that data is only information – it does not provide context or reason.
Therefore, while an absentee owner is more likely to be motivated to sell, it is not necessarily always the case.
Nevertheless, it is important to keep this information for later evaluation.
It is essential to conduct background research on the property, including its category, size, age, overall condition, and other pertinent details.
It is critical to get a basic understanding of what you are dealing with.
A vacant property lead is often valuable, but it is even more valuable when it is accompanied by other important indicators.
Some of the most common additional indicators include tax delinquency, absentee ownership, deferred maintenance, and more.
Other vital signs suggest that a property has been vacant for an extended period of time or that the property is inherited.
Tax delinquency, in particular, is an especially significant indicator because it can be a motivating factor for some homeowners.
For more information on tax delinquency, make sure to review our post on Tax Delinquent Property Data.
One of the biggest problems with real estate lead generation is separating potentially useful opportunities from thousands of ordinary properties.
This is where organized property data can help.
Instead of searching randomly, investors can establish clear criteria for the type of properties they want to target.
For example, an investor might focus on:
Location: A specific city, county, or ZIP code
Property Type: Single-family residential properties
Occupancy: Potentially vacant
Ownership: Absentee owner
Additional Indicators: Tax delinquency or other relevant characteristics
This approach creates a more focused lead list.
Investors can also compare vacancy information with broader occupancy data to better understand the characteristics of properties within their target market.
The objective is not to collect the largest possible number of leads.
The objective is to identify relevant leads that deserve further research.
A good lead list should contain more than property addresses.
Start by choosing your target market.
You could focus on:
Next, define the property characteristics that matter to your investment strategy.
For example, you may want vacant residential properties owned by absentee owners.
Your lead list could include:
| Information | Purpose |
|---|---|
| Property Address | Identify the property |
| Owner Name | Identify the potential seller |
| Mailing Address | Determine potential absentee ownership |
| Property Type | Match your investment strategy |
| Occupancy Indicator | Identify potential vacancy |
| Tax Status | Identify additional research opportunities |
| Estimated Value | Help evaluate the opportunity |
In addition to the vacant property reports, you can also combine this research with other property-related data. Our guide to delinquent, vacant, and occupied property data details how this information can be useful in relation to other property types.
After compiling your list, you will want to prioritize based on the characteristics that are most desirable for your particular investment goals.
A vacant property is not necessarily a distressed property.
The owner may have plans for the property or may just want to hold on to it as an investment.
Consider a vacant property to be a red flag and investigate further.
Outdated ownership or property information leads to wasted time and poor marketing.
Make sure to verify information before you put a substantial amount of time into working a lead.
A list containing thousands of poorly targeted properties may be less valuable than a smaller list containing carefully researched opportunities.
Quality should come before volume.
Distressed and vacant owners often have extenuating circumstances that you are not privy to.
Do not assume or use hard sell techniques on them, try being professional and courteous which will result in better cooperation from the seller.
Real estate marketing and homeowner outreach can be subject to federal, state, and local regulations.
Before undertaking broad, multi-jurisdictional outreach campaigns, therefore, investors should be aware of the laws governing their methods of marketing and the jurisdictions of the target neighborhoods.
Investors can find vacant property leads by checking the county, researching data, driving for dollars, and exploring other local resources. Moreover, using different resources altogether can help come up with a list of possible leads.
Some vacant properties can be great deals, but just because they are empty does not mean that they are good investment opportunities. Any potential buyer must scrutinize the property’s ownership, state, and other aspects to ensure it is not a bad deal.
No, because vacant does not necessarily mean for sale. Investors have to do their research to confirm if the property is for sale and meet the owner to discuss the purchase terms.
Other factors include researching delinquent property taxes, absentee ownership, conditions of the property, code violations, and other variables related to inherited properties.
Using property data helps shorten the list of possible opportunities that require further research. If people have a database of properties, they can spend less time searching and researching vacant properties since they already have a list of possible candidates.
Finding vacant property leads is much more than just simply finding vacant properties.
It is about understanding why the property is vacant, who owns it, and what other information may be out there for the property that would deem it worthy to pursue.
The process for finding these leads can be very standardized to make it easier for off-market lead generation.
It is important to think about starting with a certain market, narrowing down possible vacant properties within that market, determining who owns the property, conducting research on additional information pertaining to the property, and finally prioritizing those leads to determine which ones are best suited for your particular investing criteria.
Having reliable information can help reduce the amount of time spent searching for an investor grade lead.
Vacant properties can also serve as a great compliment to other distressed property leads.
An investor that can standardize their approach to finding and analyzing these opportunities can ultimately have a much better acquisition pipeline.
If you need to create a list of investment opportunities, check out the leads we have at DistressedProData.
You can also check out the pricing options we have available to find your perfect data plan.
Whether you are searching for vacant properties, tax delinquents, or other investment opportunities, you need to get the right data to help you save time and effort on your search, and put that time towards actually evaluating your leads.
Get started finding the right property lead generation options for you with DistressedProData.