As a real estate investor, success begins with locating the best investment property for sale in the housing market. Unfortunately, competition for properties listed on the Multiple Listing Service (MLS) and other real estate sites is very intense. As a result, finding a good deal can be very difficult.
One of the best ways of avoiding serious competition and getting a good real estate deal is by looking for off market properties for sale. These refer to properties that have not been listed for sale on mainstream real estate platforms. And while it may sound like these investment properties are impossible to find, that is far from the case.
How to Find Off Market Properties for Sale
Here are some of the best ways to find off market properties:
1. Work with an experienced real estate agent
Local real estate agents are usually aware of off market real estate that is being sold in their area. Some agents may even have pocket listings they’re trying to sell. You can start by compiling a list of successful agents in the neighborhood you want to buy in. Check their websites and social media profiles to get an idea of their background and achievements. Don’t forget to look for online reviews from previous customers.
Once you have shortlisted the agents, you can reach out via email or phone and ask if they can help you access off market properties for sale. You should also let them know exactly what you are looking for in terms of:
- The suburb/area
- Price range
- The number of bedrooms
- The type of investment property (condo, single-family home, multi-family home, townhouse, etc.)
- Proximity to schools, transport hubs or other services
- Any specific amenities/features you prefer
2. Drive for dollars
Driving for dollars is a simple, yet very effective way of locating off market real estate deals. As the name suggests, this strategy involves driving around neighborhoods looking for potential deals. Keep an eye out for properties that appear distressed or abandoned. Signs of off market distressed properties include boarded-up windows, overgrown grass, and uncollected mail. As you come across such properties, be sure to write down the addresses. Later, you can use these addresses to look for the owners of these homes. When you get ahold of their email or phone numbers, reach out and find out if they are willing to sell.
Related: What Is Driving for Dollars in Real Estate?
3. Check out real estate auctions
Since homes are being auctioned off every day, real estate auctions are a great place for finding off market properties. You can keep track of auctions by visiting auction websites or visiting your local courthouse.
When it comes to real estate auctions, there are two kinds of investment property to look out for:
- Foreclosures – These are homes that are sold ‘as is’ at a price below market value. Be sure to do your due diligence before the auction to establish the viability of the real estate investment.
- Real estate owned properties (REOs) – These are homes that are owned by lenders due to a failed foreclosure process. Just like foreclosures, real estate investors should also get as much information as they can about REOs before bidding.
Once you’ve researched the investment property specs and the neighborhood, set your maximum bidding price. This will help you stay focused during the bidding process.
4. Let your personal and real estate network know you’re in the market for an off market property
Since a big part of real estate is making connections with people, word-of-mouth can be a very effective way of finding off market homes. Let all your family, friends, workmates, and neighbors, as well as any agents and real estate investors, know that you are looking for off market properties and how they can contact you. Though they might not be selling, they might know someone who is. You never know where your next big real estate deal will come from.
5. Seek out real estate wholesalers
One of the best ways to find off market properties is by liaising with wholesalers. Wholesalers are real estate professionals that specialize in flipping real estate contracts. This means that they find off market homes, sign a contract to purchase, and then flip the contract to a final buyer for a profit. However, since the real estate wholesaler is acting as a middleman, you might not get as good a deal as if you contacted the owner directly.
6. Network with builders and contractors
Any real estate investor looking for hot, off market multi family for sale should make friends with local builders and contractors. These professionals are usually informed about homes where the owner has abandoned the property because they ran out of money before finishing the construction. Networking with builders and other tradesmen is therefore one of the best ways to find off market properties in your area.
7. Visit real estate websites
A quick way to get off market properties is by checking real estate websites which list off market properties for sale. One of the best places to conduct an investment property search is the Mashvisor Property Marketplace. This tool comes with a wide range of off market listings in the US housing market including short sales, foreclosures, and bank owned homes. You can narrow down your search using filters such as location, type of investment property (including off market multi family properties), miles (search radius), your budget, and preferred rental strategy. In addition, you can analyze investment property using metrics such as occupancy rate, cap rate, cash on cash return, rental expenses, and rental income. You can even get access to property owner data and contact homeowners directly via the platform and begin negotiations, making the Mashvisor Property Marketplace one of the best ways to find off market properties.
Related: What Is Mashvisor? What Can It Do for Real Estate Investors?
Conclusion
These are some of the best ways to find off market properties. With these tips, you should be able to find off market homes fast and thus stay ahead of the competition.
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