What are off market properties?
Off market properties are properties that aren’t currently up for sale by the owner, listed on any listing services such as Zillow and Redfin, or being marketed.
Why should investors look for off market properties?
Investors will benefit from a non-competitive bidding environment which typically ends up increase the price of the property. This reduces the pressure of getting your offer accepted by the seller. Off market properties can also be sold at a discount (below market value) as the investor will have more time negotiate with the seller.
How do you find off market properties?
- Direct Mail Marketing (DMM)
- Door Knocking
Realtors have a large list of potential buyers. Investors need to develop a strong relationship with realtors so that they can help you turn non-sellers into sellers. For example, if they know you’re looking for a property with certain specifications. They can provide you a list of homes in their database or that they have sold in the past that meet those specifications, cold call the seller and attempt to negotiate an offer market deal for you.
Wholesalers are individuals who are constantly looking for real estate investment opportunities. Wholesalers will get an off-market deal under contract, negotiate the terms and sell the contract to an investor for an assignment fee. Investors need these relationships as it expedites the process of finding opportunities. Wholesalers are a great way for investors to have their eyes in numerous markets at the same time.
Direct Mail Marketing (DMM)
Direct Mail Marketing includes sending a letter to an owner’s home and to their email. These letters and emails state the investors interest in purchasing their property.
This strategy is more time consuming but can be effective. Investors can drive around neighborhoods looking for distressed properties to door knock in hopes that they can speak with the owner and discuss the probabilities of them selling their home.
Investors should be constantly checking in with other investors to see if they are looking to sell any of the properties in their portfolio. Investors are constantly selling properties in their portfolio and this can be a great opportunity to secure an offer market deal.