When looking for opportunities as a real estate investor, you want to consider all areas of the real estate industry. This means you have a bigger chance at growing your business and becoming a jack-of-all-trades, which can help you make a higher profit over time.
Many investors assume that properties that sell on the market is the only route to take. However, these five tips on how to find off-market real estate deals can help you find property gems that will take your career to the next level.
What Is Off-Market Real Estate?
Off-market real estate essentially refers to a property that is not listed in traditional areas where people normally look to buy.
The homeowner may not be considering the option of selling their home, which means it’s a great opportunity for you to present the right deal that might just change their mind.
It may sound like a challenge to find a home that may or may not be for sale, but with the following tips, you could find the property that’ll help grow your business.
Why Do Properties Sell Off-Market?
So, why would a property sell off-market when they could just sell on the market and get a potentially great deal? Let’s discuss a couple of reasons.
When a property sells off-market, the seller often gets a bit more profit because they only paid a limited amount of fees and commissions to the brokers or listing agents. Additionally, the property sells to the buyer for a lower price, making it a great deal for real estate investors.
If their property is put on the market in traditional means, the property owner may worry about the quality of potential deals and time-wasting tours. They may sell their property simply as strategy to work with qualified buyers and investors.
An owner could sell their property off the market because they might not have considered “selling” their home if they don’t understand how to market it at a decent value.
Work With Your Network
Your network can offer a plethora of knowledge, assistance, and resources to help you succeed in every real estate venture you decide to pursue.
Real Estate Agents
It’s a real estate agent’s duty to understand and analyze the industry, focusing on the properties and town in which they work with. With that being said, an agent has their own network that they may be able to connect you with.
Oftentimes, an agent will maintain a list of potential sellers and buyers through their communication and projects in their field. If you’re a beginner real estate investor, you may consider working with an experienced real estate agent to get your feet wet and get to know the ins and outs of off-market properties.
As a real estate investor, you could’ve already worked with a contractor in previous projects; if so, be sure to reach out to them as you may not be the only investor they work with.
Contractors may complete work for people looking to start the selling process on their property and who are renovating the home in order to get a better deal from a buyer. Be sure to partner with them to discover details about an unlisted home you might be interested in purchasing.
Additionally, if you have not worked with a contractor before, you might consider asking around and finding one you can trust and collaborate with. They can potentially assist you on your next flip and help bring in a larger profit.
If you’re already established in the real estate industry, you might already have a secured network of other investors, agents, brokers, and contractors you’ve worked with in the past.
Although you’re technically “competing” with other investors in the area for a property, you may benefit from partnering with a professional who can help you acquire a property for a great price.
Remember, when you network, you should look to help others as well. If you only go to someone when you need help, but you don’t offer the same when they come to you, you might burn that bridge.
It’s always a great idea to keep a log of who you work with along with their contact information to ensure you have a group of people to help you accomplish your goals and vice versa.
The internet can be a valuable resource when looking to find and purchase off-market properties. Be sure you have a reliable internet source and a laptop or tablet so you can complete a search from wherever you are.
In some cases, you can find off-market properties through public records. These records may contain information on properties that’re up for sale, whether they’re in the foreclosure process or they’re a short sale.
Real Estate Sites
Websites that offer information on property tax, distressed properties, and more can be a great source to find an unlisted property. You might consider websites like Mashvisor or Roofstock to help you find the right property.
Check Out Auctions
Oftentimes, a foreclosed home will follow the “auction” route in its process, which is a great place for you to find an unlisted property.
Keep in mind that you’ll want to crunch some numbers to ensure that an auction is the right path for you. Since most foreclosed homes are in poor condition, you might need to consider the price of repair versus the return on profit.
It might be wise to partner with hard money lenders in Tulsa to ensure you have a strong budget to work with as you search for a potential property.
Direct Mail Marketing
Some investors find it beneficial to perform a more traditional technique of finding off-market properties: direct mail marketing.
Direct mail marketing is essentially reaching out to specific sellers and introducing yourself to offer them a potential deal on the house they have yet to sell. If you’re new to real estate investing, it could be a great way to get your name out there and build your portfolio.
Take a Drive
You could take a traditional approach and drive around neighborhoods to find an off-market property yourself. Try to look for distressed properties or ones that appear vacant. This option is a bit time-consuming, so you’ll want to set aside time in your schedule to do this.
When looking for properties to purchase, these five tips on how to find off-market real estate deals will enable you to search in the right places and find the property you’ve been hoping for.