Off-market properties are for sale but aren’t listed in public advertising platforms such as the MLS. These are great sources of leads especially when the housing market demand is high and the supply is low. As the competition for real estate deals becomes tougher by the day, you need some creativity to know where to find off-market properties and motivated sellers.
- Vacant Properties. Find owners of properties in poor condition with obvious need for repairs. Some may have environmental factors such as fire damage or have been blown down by a hurricane.
- Probate Properties. About 3 million people die every year in the US. Chances are, these homes are going to be set up for sale by family or relatives who’d rather get cash from grandpa’s estate. Read obituaries online, contact probate attorneys, or visit your local care home center. Look for estate sales and make an offer to the estate executor.
- Pre-foreclosure or foreclosure homes. Property owners who are in pre-foreclosure or foreclosure might be more motivated to sell. Their property taxes might be behind in payments and they likely can’t keep the home from tax sale. This snowballs into a distressed situation which leads them to get rid of the property more than selling their home for a certain price.
- Landlords. If you’re into rental properties, you can check out Craigslist, Landlord and apartment-owner associations, or the Tax Assessor’s office for absentee or out-of-town landlords who might be interested in selling their properties.
- Investor-Friendly Realtors. Look for investor-friendly realtors within your market who specialize in off-market properties. They can have good leads and have the know-how to negotiate with sellers and close deals.
- Build Your Off-Market Cash Buyers’ List. Growing your cash buyers’ list will take a lot of sweat equity, but it can be done. You can network online or through in-person networking events, purchase from list brokers, or use certain apps like REI Pro or Propstream.
- Wholesaling. Home flipping gives you large paychecks but you’re bound to be limited by 3 or 4 flips in a year. If you’d like to close deals at a much quicker pace, wholesaling by assigning contracts to cash buyers can get those checks coming in faster. Though the wholesaling fees you get are much smaller compared to flipping a home, you can do more wholesale deals in a year.
- Double-close. If you’re already doing wholesaling, why not switch it up and do a double close? This works for when your wholesale fee is significantly higher, and you don’t want to disclose this to your cash buyer. Find a wholesaler-friendly Title Company that will allow you to close in escrow.
Getting familiar with and utilizing different strategies at a time can help add more deals into your portfolio. Off-market properties usually have lower sale prices and less competition than those that are publicized. They can also be unique opportunities where there are attractive contract benefits and profit margins for investors.
Whether you’re totally new to off-market real estate or have closed a few deals, our loan programs can provide you the capital that you need to get started.
