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Feb. 21, 2020

Four Ways To Find Off-Market Properties For Sale

You don't have to rely solely on the MLS to find investment gems. Try one or more of these strategies to locate unlisted properties for sale. 

Most parts of the U.S. are in a very hot real estate market. As housing prices are surging, it is getting tougher for real estate investors around the country to find great property deals. It is no secret that finding worthwhile properties or homes to invest in is often challenging, particularly when your only source is searching for properties on the multiple listing service (MLS).

In this situation, acquiring off-market properties is one great way to get amazing deals and circumvent the intense competition you will face on the MLS. Although the process might seem daunting, you could always get some help from a real estate agent or an attorney to smooth things for you.

What Is an Off-Market Property?

Off-market properties are properties that are in the process of selling or have been sold already without any public knowledge and advertising. So, this means that off-market investment properties aren’t publicly advertised via an MLS or a real estate agent. Also, an off-market house can be a property that the home owner is considering selling, but hasn’t actively started to pursue the sale.

To help you widen your search, here are four ways to find off-market investment properties.

1. Direct Marketing

This is easily one of the most popular ways to find off-market properties. You can use direct mail to shake up some hesitant property owners. You can pull a list of properties from a site like ListSource and then target some of your favorite ZIP codes. Also, you would like to target homeowners with a lot of equity in their houses and you can do this easily with web tools.

You have a lot of options. You may send emails or postcards or run advertisements in local newspapers mentioning that you are currently looking to buy houses in the area. Provide them with your contact number and make an offer when you connect.

Typically, direct marketing campaigns are run over many weeks or even months. This allows for multiple touches and also a higher likelihood of response. You also have the option to purchase a list of qualified leads that you can market to, like properties in probate, vacant properties or properties in pre-foreclosure.

If you want to implement this strategy to find off-market houses, make sure you have a solid plan to ensure that you earn a good return on your investment.

2. Work With Real Estate Agents

Real estate agents can be an immensely valuable source of off-market properties via pocket listings. Having a real estate agent (or two!) by your side can be helpful as they can inform you of any properties that might become available in the near future. Sometimes, real estate agents share their pocket listings on their website.

Wondering what a pocket listing is? It is a property that a real estate agent or broker has a signed contract on, which gives them an exclusive right of selling — but the property has not been posted on the MLS yet. If you pursue this strategy, a great place to start is to identify a neighborhood that you’re interested in investing in. Then, all you have to do is contact one or more real estate agents in that neighborhood.

These property agents have their off-market properties, or they are aware of a few in the area. You can contact a real estate agent through email or by phone and keep in mind that some real estate agents have websites as well.

3. Examine Public Record

This is another great way to find off-market real estate. You should keep up to date on various public records. This is because they will usually feature short-sale properties or pre-foreclosures, both of which can offer lucrative and viable investment opportunities. Foreclosure and short-sale opportunities are usually a matter of public record. This is why staying up to date with these records may tip you off to certain properties that might come up at property auction.

Also, local newspapers and some state government websites often mention real estate properties that may be selling soon. It is always a good idea to stay current on these public records as a real estate investor; after all, they can lead you to your next best deal.

4. Word Of Mouth

Real estate investing is a people business regardless of how you look at it. Irrespective of your real estate goals, it is important to attend meet-ups in your area. Keep in mind that local meet-ups are an excellent way to find numerous investors who know all the inside details about various off-market deals.

You should also be familiar with non-real estate professionals and individuals in an area and inform them that you are interested in buying off-market properties. The more you use word of mouth marketing in real estate, the more people will consider you when they see off-market properties.

Final Thoughts

With better deals, less competition and quicker sales, buying off-market properties may be an excellent strategy to help you earn more income. You can use one or more of the above methods to find off-market properties.

 

Jeanine Colavecchi, REALTOR®
July 31, 2017

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