Let’s talk about off-market real estate. If done right, scoping out off-market real estate properties can provide you with great deals! If you’re savvy enough, you can find properties below market value and negotiate on your own terms. But, finding these deals might be tough if you do not know where to start. So, master these tips on how to find and examine the off-market real estate world. By the end of reading this, you’ll be savvy enough to begin your search for finding off-market properties.
What is an off-market real estate property?
Let’s get started by quickly defining an off-market property. Most sellers publicly advertise selling their property through a real estate agent and/or the Multiple Listing Service (MLS). For a reason or another, some owners do not publicly advertise their properties, and keep them private instead. They are then, an off-market property. An off-market property can also be a property that the owner is thinking about selling, but has not actively begun to pursue the sale.
The definition may be wide. But regardless, off-market real estate properties are great deals to find. They mean less competition, quicker sales, and better deals overall!
So, how do you find off-market real estate properties?
1. Use direct mail. Direct mail is great way to shake up some hesitant owners. You can send postcards, emails, or advertisement in local newspapers stating that you are looking to purchase a property. Sometimes owners will not sell until they’re presented with the offer. So, this is a great way to find off-market real estate investment properties.
An additional tip: Please do not be discouraged if you don’t receive responses right away! Sometimes, it may take up to 10 direct mail advertisements until you get a response. But, don’t let that scare you off. Direct mail is one the best ways to find an off-market real estate deal.
2. Network, network, network! Another one of the best ways to finding off-market real estate properties is through word of mouth. Networking is essential. Here’s who you especially should network with: estate attorneys, wholesalers, and local builders.
Related Article: How to Build and Maintain a Real Estate Investment Network
Real estate attorneys usually have creditors or issues that need to be paid immediately. So, networking with them can tip you into knowing about off-market properties that may be become available in the near future.
Wholesalers are those who put a property under contract and resells it to an investor after just a few days. Networking with wholesalers is a great way to find off-market real estate investment deals. With that being said, they are the “middle-man.” You’ll find good deals with them, but not as good as if you went directly to the source (the owner).
Local builders, tradesmen, and contractors are also great to have chats with. They’ll be able to tip you off on who did not have enough money to finish building the house or a project, for instance. You’ll be able to come in, finish the project, and turn it into the profit.
With that being said, do not try to hide anything when networking. Make your intentions clear. Everyone will most likely help you and keep you in mind for the next off-market real estate deal they come across!
3. Find foreclosure opportunities. This will help you find some good off-market real estate deals. You can examine the public records to find signs of impending foreclosure. You can swoop in and make a deal before the bank repossesses the property. So, stay current with the local newspaper, local state government websites, and websites like HUD Home Store.
Related Article: 5 Real Estate Negotiation Tips for Investors
4. Drive around and find empty homes. You might find some off-market real estate properties that you like. Ask around the neighborhood to find the contact of the owners and pitch in your offer. You’ll never know; they might offer you a good deal!
5. Check out Opendoor. This is an online platform that tries to make selling homes a better experience. They buy and sell homes to savvy investors like yourself. This a great service for investors who are eager to sell their home while buyers enjoy the benefits Opendoor offers include a 30-day satisfaction guarantee, certified inspection, and a 2-year warranty.
Disclaimer: You have to be patient!
As you can see, finding an off-market real estate property take time. So, you need to have patience! Networking, using direct mail, driving around, etc. will all take time and effort. But, if you’re not in a rush, it really might be worth it to find those off-market real estate deals.
Always know that Mashvisor is always here to support you. You can visit us for an analysis on the properties. Start finding you next real estate property now!