Pre-Vacant houses are houses which are about to be abandoned and they typically owned by extremely motivated sellers. When targeting these type of owners, my wife and I use a marketing technique which is practically free. You can use it to uncover motivated sellers that are about to move out of their houses (pre-vacant houses). It's driving for dollars on steroids and it works 10x better than just "driving for dollars" alone. We call it the Great Gold Toss Method.
When using this technique when you target pre-vacant houses, you'll consistently find the type of motivated seller who's willing to get creative . In other words, they're great prospects not only for your wholesale deals, but for "take over payments" deals and other types of creative deal structuring. While "Take over payment" deals are great for experienced investors, they're an even more powerful tool for your beginning investors because they usually don't require any of your own cash or credit for to buy the house. It's as simple for you as finding a motivated seller and knowing how to structure your deal (we include a bonus course on how to do this in our new training program).
We consistently find a minimum of two solid deals each month by applying this simple technique to our business once a week. We simply drive neighborhoods with houses that fit our "buy criteria" for a couple hours on each Thursday and distribute a specific set of marketing materials to each house which has a pre-vacant houses indicator. I'll expand on what I mean by marketing materials and pre vacant indicators...
Pre-vacant house indicators are a set of indicators which we've found that, more often than not, show us that the owner is in a bad position and is about to move out of their house. These indicators are different than the indicators we teach about in our abandoned house training. When driving for pre-vacant houses, you should be looking for an entirely different set of clues, which signal that the homeowners are about to walk away and abandon/vacate their property. The key here is finding them just before they abandon the house.
The marketing materials which we distribute when targeting pre-vacant houses are much different than what other investors use, which is why we get such a high response rate. We take a "sneak attack" approach and distribute a very unique set of materials as we are driving through the neighborhood. We then note the address and then put them on a mail sequence. The mailing they get are nothing close to what other investors use (definitely not the same tired, worn out and over used "we buy houses" postcards that every other investor in town uses), so we get a very high response rate. Much higher than normal, which leads to much higher profits than normal...
Tracey and I have put together an entire training system which teaches you exactly how to target and profit from pre-vacant houses. No one else in the house flipping business has figured out how to reach this group of motivated sellers at precisely the right time, which is just before they walk away and abandon the house. The new system we've developed has given us an unfair advantage over our competitors in our market, and it can do the same for you.
It's almost like having a crystal ball which shows you exactly when homeowners are about to "throw up their hands and walk away" from their houses. As a result, there's huge profits for you to make in this motivated seller niche, because your competitors aren't targeting these deals (they don't even know they exist).
Take a look at this house we just bought below. We got it using the "Great Gold Toss" method, which we teach you in the pre-vacant house strategy training. We closed on this house a couple weeks ago. We purchased it for $69,000 and the rehab will be a maximum of $50,000. The rehab will take approximately 5 weeks to complete and the house has an after repaired value of $210,000. Our anticipated profit, after commissions on the resale and other closing costs, is approximately $81,000.
About the Author: Christian family man. MMA lover, Jiu-Jitsu and Muay Thai practitioner. surfer and Self-confessed coffee addict. Lover of everything real estate related. Creator of the Lucky Buys Yucky Houses® Motivated Seller Leads Program and The Abandoned House Secrets System. Founder of Reihack.com.