How To Find Vacant Properties: 7 Lessons To Find Vacant Houses That Put Big Cash In Your Pocket

How To Find Vacant Properties: 7 Lessons To Find Vacant Houses That Put Big Cash In Your Pocket

As a budding wholesaler, you can make substantial money sourcing houses nobody wants. But it’s only possible if you have the added skills needed to know how to find vacant properties while others may be spinning their wheels.

This post will help you learn what only the top ten percent of wholesalers understand.

Learning these skills can catapult your career, bringing you deals hand-over-fist, so you won’t be just another wholesaler standing in line bidding for small margin deals.

Let’s get started with the basics first; then, we’ll dive into a few terms you may have never heard before. Let’s go!

Table Of Contents ● How Do You Find Out if a House Has Been Abandoned? ● How is a Property Determined to Be Vacant and Abandoned? ○ The property has been tax delinquent for a certain amount of time (typically three years or more) ○ The Houses Are blighted or in a state of disrepair ○ The property has been condemned by the city or county ○ The government has seized the property ○ The property has been vandalized ● What is a Zombie Property? ○ Zombie Property Risks ○ Zombie Property Rewards ● What is the Zombie Property Registry? ● How to Find Vacant Properties in Your Area ○ Facebook Marketplace: Deal Directly With The Owner ○ PropStream Real Estate Software To Find Vacant Houses ○ USPS Vacant Property List vs. USPS Vacant Return to Sender ● The Process of Buying a Vacant Property ○ Know The End Value ● Closing The Deal On Your Real Estate Investment ● How To Find Vacant Property Conclusion ● Frequently Asked Questions ○ What Is the Difference Between Vacant and Abandoned? ○ Why Are Homes Abandoned With Everything Left Behind? ○ Is Buying Vacant Property Or Land a Good Investment? ○ Is It Illegal to Enter an Abandoned Building? ○ How Do You Get a Zombie House?

How Do You Find Out If A House Has Been Abandoned?

There are a few ways to find out if a house has been abandoned. Before diving into more details of this investing strategy, let’s look at just a few from a 30,000-foot view.

One way is to look for city or county records that show the property has been tax delinquent for a certain amount of time (typically three years or more) and is possibly going up for auction.

Another way is to drive for dollars or walk around the neighborhood and look for houses with overgrown grass, no curtains or window coverings, boarded-up windows, etc.

You can also contact your local municipality and ask if they have a vacant or abandoned property registry.

How Is A Property Determined To Be Vacant And Abandoned?

A property is typically determined to be vacant and abandoned when it meets one or more of the following criteria:

The Property Has Been Tax Delinquent For A Certain Amount Of Time (Typically Three Years Or More) There are a few key things to look for when researching tax-delinquent properties in your county. The most important is the amount of back taxes owed on the property.

You’ll also want to check the property’s assessed value and compare it to the current market value. If there’s a big discrepancy, that could signify that the property is undervalued.

You’ll also want to research any liens or judgments against the property and make sure that you’re comfortable with whatever situation you might inherit if you buy the property.

Foreclosure investing is a skill you should definitely learn, profits can be huge if you do it properly.

The Houses Are Blighted Or In A State Of Disrepair

Blighted property is in poor condition and has been designated by the local government.

The reasons for a property to be classified as blighted can vary, but often it’s due to factors like neglect, crime, or environmental hazards.

Blighted properties can be a challenge for real estate investors because they’re often in need of extensive repairs and/or are located in areas that are considered undesirable.

However, there can be opportunities for investors who are willing to take on these challenges and are knowledgeable about the local market.

These properties see your driving for dollars success rate skyrocket for obvious reasons.

The Property Has Been Condemned By The City Or County One way to find out if the city or county has condemned a property is to look up the property records. This can be done through your local county recorder’s office or an online public access website. If the property has been officially condemned, it will likely appear in the scanned documents as either “unsafe” or “unfit for human habitation.”

Another way to find out if a property has been condemned is by contacting your local municipality directly and asking them if they have any information on file about the property in question. They should be able to tell you whether or not it’s been condemned and, if so, when that happened.

The Government Has Seized The Property When the government has seized property, the government has taken legal possession of the property and is now the owner. This can happen as a result of criminal prosecution or as a result of civil litigation.

For example, if the government believes that property was acquired through money laundering or some other illegal activity, it may seize the property to punish the person who committed the crime.

Alternatively, if two parties are fighting over ownership of a property, and one party prevails in court, the winning party may be able to have the property seized by the government.

Understand that the government isn’t in the business of being property owners, so they want to get these off the books as fast as possible. It could be huge for you if you find the right one.

The Property Has Been Vandalized This is a telltale sign that gives away abandoned property. If you notice excessive amounts of graffiti, broken windows, and/or a lack of maintenance (e.g., overgrown lawns), then it’s likely the property will be abandoned.

Additionally, if there are no lights on inside or outside the home, no cars in the driveway, and/or newspapers piling up at the front door, it’s also likely that the property is abandoned.

What Is A Zombie Property?

A zombie property is a vacant and abandoned property that has been foreclosed on, but the mortgage company has not taken possession of the property yet. The property is sometimes referred to as a “zombie loan” or a “zombie mortgage.”

The term “zombie” was coined because these properties are often left to languish and decay, leading to a loss in property values and quality of life for the surrounding community.

It’s important to weigh the risks vs. rewards when it comes to zombie properties because they could come back to bite you in the you-know-what if you’re not careful. Be sure to get at least two licensed contractors to inspect the property thoroughly, from top to bottom, especially as a wholesaler.

Zombie Property Risks ● Zombie properties can be difficult to rehab and/or sell. ● The property is likely located in an undesirable area, which means there may be a cap on how much it could be sold for. ● There’s a risk that the mortgage company will take the zombie property back.

Zombie Property Rewards ● If it happens to be the “ugly duckling” in a decent neighborhood, profits could be tremendous. ● Due to it likely having a tremendous amount of damage, you could get it for pennies on the dollar through foreclosure investing. Literally.

What Is The Zombie Property Registry?

The zombie property registry is a database of vacant and abandoned properties that the local community has reported so the state authorities can have the mortgage holder – if

there is one – start inspections and due diligence for a possible demolition if it’s not sold soon.

Municipalities can use this registry to track and manage zombie properties and potential buyers or investors to find zombie properties for sale or investment.

How To Find Vacant Properties In Your Area

Besides the few tips mentioned above, like sifting through tax delinquencies at the county courthouse, driving for dollars, and contacting local municipalities, you can turn to good ‘ole technology to help you get the house you’re looking for. Let’s take a look:

Facebook Marketplace: Deal Directly With The Owner Facebook Marketplace for real estate is a great place to find discounted properties.

Because of the sheer amount of people on this social media behemoth, a simple search in the real estate section for abandoned properties can yield excellent results.

Now, you probably won’t find anyone using the terms “vacant” or “abandoned” in their posts as an owner, but as the saying goes, “a picture tells a thousand words” fits perfectly when sifting through the feed.

If you see distress, you more than likely can get a good deal. BUT, know you’re not the only one searching, so be prepared to jump on one and message the seller as soon as you see it.

PropStream Real Estate Software To Find Vacant Houses When it comes to PropStream, there’s no better software – especially for beginners – for finding vacant homes. Not only in your area; but nationwide.

PropStream is simple to use and makes it easy for investors to find the perfect property for their needs. You can filter properties by location, type, or price and even view detailed information about each property.

They get their vacant property lists through their relationships with real estate investment firms and a USPS vacant property list. They partner with these firms to provide them with the best leads and data analytics in the industry to make more money through their own investments. This allows Propstream to act as a middleman and provide an invaluable service to both parties.

We highly recommend checking them out; there’s just so much you can do with PropStream. Opportunities are limitless.

USPS Vacant Property List Vs. USPS Vacant Return To Sender I want to add this because there’s so much confusion between these two terms. The United States Post Office compiles a USPS vacant property list for properties that continually see mail as undeliverable. When a homeowner vacates their home and doesn’t set up a forwarding address due to many factors, the mail carrier will give the property a “Vacant Flag” after numerous “Vacant Returns.”

USPS Vacant Return to Sender mail is usually kept at the post office when someone goes on vacation for a week or so, and the mail is piled up. The carrier gives them the notice to pick up their mail, and when they get back, they do. This cancels out any flags that may have started – if any did.

The Process Of Buying A Vacant Property The process of buying a vacant property can be lengthy and arduous. But it’s not impossible, and many people have done it before you.

First, you may want to locate a good real estate agent with experience in the local real estate market. Because there are so many bureaucratic hoops to jump through when purchasing a vacant property, you’ll want someone that knows the ropes and can guide you through the process. These typically aren’t in the listings section on Zillow, so it takes a specialized agent when it comes to this investing strategy. Or you can set up an automatic search locally and have them dripped to your inbox every day.

You’ll also need to line up a good home inspector. As mentioned before, vacant properties can be a bit of a “fixer-upper,” so you’ll want to make sure everything is in order before you purchase it. The last thing you want is to deal with hidden problems after the fact.

Know The End Value Before agreeing to any price, you need to make sure you understand the end value of the property. More than likely, you’ll have a significant amount of work to do to fix the house up, which could cost a lot more than a usual flip.

Just be sure your broker is on their game, and they consider the amount of money that needs to be invested. Please consult with a cash buyer as well to see what they think.

Highly experienced cash buyers know how to get things done, and they can help you out, especially if you’re bringing them a smoking deal.

Closing The Deal On Your Real Estate Investment Closing the deal on a vacant property can be tricky. You’ll want to make sure all your paperwork is in order and that you have all the necessary permits and inspections. This can take some time, so it’s important to start the process as soon as possible.

Just be patient and make sure you dot all your i’s and cross all your t’s. The last thing you want is for something to go wrong at the last minute.

In most cases, you won’t have to worry about these things because you’ve probably already assigned the purchase agreement to your cash buyer. But we highly encourage you to ask your buyer if you could be a fly on the wall so you can see the process. It’s extremely valuable.

How To Find Vacant Property Conclusion The next step is for you to put this knowledge into action.

Start by finding vacant homes in your market. There are many ways to do this, and we’ve covered tips and tricks on how to find wholesale deals in this post. Once you have a list of potential leads, it’s time to start.

Don’t be afraid to get creative with your marketing efforts; after all, the more people who know about your deals, the better. Remember, the key to success as a wholesaler is perseverance.

Keep pounding the pavement until you land that next deal!

Frequently Asked Questions

What Is The Difference Between Vacant And Abandoned?

The main difference between vacant and abandoned properties is that a vacant property is one where the owner has intentionally left it unoccupied, while an abandoned property is one where the owner has either died, moved away, or been forced out by some other means.

Why Are Homes Abandoned With Everything Left Behind?

It’s not always clear why a homeowner would abandon their home, leaving all their belongings behind. Sometimes it could be due to foreclosure or a pending eviction, while in other cases the homeowner may have had to leave suddenly due to a natural disaster or some other emergency.

Is Buying Vacant Property Or Land A Good Investment?

There is no one-size-fits-all answer to this question, as the profitability of buying vacant property will vary depending on the specific market conditions and the property in question. However, if you are interested in different real estate investing strategies, buying a vacant property can be a profitable way to invest your money if you know how to find vacant land or locate properties.

Is It Illegal To Enter An Abandoned Building?

It depends on the state, but typically it is not illegal to enter an abandoned building.

However, it may be illegal to enter a building that is not abandoned. It’s always important to check with local authorities before entering any property.

One thing to note is that entering an abandoned or vacant building can be risky, as it may be structurally unsound or have other hazards. So it’s important to take precautions before entering any such building.

How Do You Get A Zombie House?

A zombie house is basically a property that has been abandoned by the owner and has become a burden on the city or state. These houses often fall into disrepair, which can be costly for local governments.

Another way to get a zombie house is to buy one at a tax auction. These auctions are held when the owner of a property fails to pay their taxes. The property is then sold at auction to the highest bidder, and it’s not uncommon for these properties to go for a fraction of their market value.