There are several ways to land great real estate deals in the housing market. One of the most effective methods is to look for off market properties. Unlike market listings, properties that are sold off market tend to be undervalued. So how to find off market properties? And is there anything that will change with the way off market deals are found in 2020? This blog will demystify every aspect of off market real estate and outline a simple blueprint to finding off market properties in 2020.
What Are Off Market Properties?
An off market property is any real estate sale that occurs outside the Multiple Listing Service (MLS). In other words, these are investment properties that are not advertised to the wider market. There are several reasons why some homeowners opt to offload their property this way. Some prefer the discretion that off market real estate deals provide, whereas others simply want to avoid the stiff competition of a hot market. Whatever the reasons are, real estate investors can profit tremendously by finding investment properties off the market.
Now that we have gone over the basic definition, let’s dive into how to access off market properties.
Finding Off Market Properties for Sale in 2020
The effective ways of finding off market properties for sale have been the same for years now. In fact, very few things will change in 2020. These tried and proven methods will still yield good results next year and beyond. Here are our top ways to find off market properties in the US housing market 2020.
1- Talk to a real estate agent
If you are asking the following question: “How should I go about finding off market properties near me?“, the most obvious and intuitive answer is to talk to a real estate agent. No one has deeper connections in the housing market than agents. In fact, experienced agents tend to be aware of every active listing in their area, including those that are off market. Retaining the services of one will grant you access to an extensive list of properties that the market is not privy to.
2- Explore your network
Networking will always be a key component of any real estate business. More often than not, what you are looking for is only a few connections away from you. To maximize your chances of finding off market real estate properties in your area, let your intentions be known to every market actor in your circle. This includes everyone from attorneys and mortgage lenders to contractors and wholesalers. If you are proactive enough, you will inevitably find some promising off market real estate listings.
3- Visit the Mashvisor Property Marketplace
If you don’t feel like paying hefty real estate agent commissions, then you can always tackle the investment property search yourself. Luckily, there are several advanced tools that make the process extremely quick and easy. The perfect example of this is the Mashvisor Property Marketplace. This amazing platform allows you to search through hundreds of off market properties with a click of a button. Furthermore, the platform’s filters enable you to narrow the scope of your search down to the minute detail of every income property. And once you find one you are interested in purchasing, you can use the investment property cash flow calculator to analyze its potential as a rental property.
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4- Use paid advertising
Paid advertising is still an effective method that can help you land real estate deals. Thanks to the multitude of platforms on which you can launch advertising campaigns, reaching homeowners has never been easier. Set a budget aside and advertise the fact that you are in the market for an investment property. Whether you are looking for off market multifamily properties or single-family homes, a well-targeted campaign allows you to reach the exact profile of homeowners that you are looking for.
5- Look for foreclosures in your area
Foreclosures and bank owned homes tend to scare many novice real estate investors away. But in reality, this is an easy and untapped source of undervalued investment properties. Whether you choose to acquire the property through an auction or via a short sale, these sort of deals result in a tremendous return on investment. Having said that, it is essential that you familiarize yourself with the main aspects of these transactions before engaging in one.
Related: 6 Benefits of Foreclosure Investing
6- Consider direct mail marketing
This is probably the most hands-on approach when it comes to finding off market real estate for sale. Direct mail marketing requires quite a bit of effort and an ability to remain consistent with your strategy. The first and most time-consuming step of the process is to compile a list of potential sellers. This list should mostly consist of absentee owners who are likely to sell their property if they receive a compelling offer. Once you have compiled the list, the next step is to simply reach out to the owners and make attractive offers to them. This is essentially a numbers game; the larger your list is, the higher your chances of landing a deal will be.
A Few Tips for Buying Off Market Properties
After finding an off market property that you are interested in, you still need to abide by certain best practices to ensure that the real estate deal is closed smoothly. Here are a few tips to keep in mind when you are about to invest in an off market property:
- Conduct thorough real estate market research to make sure that you’re not paying over market value
- Have your financing lined up before finalizing the deal
- Do a title search to avoid any potential future liens on the property
The Bottom Line
If your main goal in real estate investing is to unearth great deals, then there is no reason not to consider off market properties. Looking outside the confines of the market will always be a great way to find an ideal investment for you.