In this article, I will share how to find off market properties using ten proven steps that many people use today and get those off-market homes that are not on the MLS. These properties take less money to buy and can make you good money as most of those properties are not in good condition and needs rehab.
Here, you have the opportunity to buy those properties if you are that guy who can handle those rehabbing problems and make them look new. Then you are welcome. Here are those ten proven tips for finding off market properties.
What is an Off Market Property Exactly?
An off-market property is normally a property that is not listed for sale publicly on the local multiple listing service (MLS) or that is not sold after being on the list for a long time.
If a property does not sell within the due time, maybe six months, the agency will remove that from their list, assuming it is not worth their time. But as an investor, those can be a good opportunity for you to buy. Here is how you will find them.
Table of Contents
1. Use Word of Mouth
For generations, the Word of Mouth is one of the best strategies to find off market properties because it works well in any market. It is the best free advertising out there, as people love talking about homes and deals.
If someone you speak to in a cafe or in a public place has a deal or a contact, you may have just found another source for off market properties. Plus, your friend and family can also help you access those properties. Talk about what you are doing, and maybe you will find a great property to invest in.
2. Network with Investors
Networking with other investors will likely give you their inventory, strategy, and a potential property that is for sale. Knowing all these in your local area, you can be ahead in your off-market property journey.
If one of my friends came to me with an offer to buy one of my properties at a reasonable price, I would make a deal with him most of the time, as I know the person. Even though the price was a bit under market value, I may still take the offer. That is the power of building networks with your fellow investors. You both will win.
3. Contractors and Builders
If an owner is fixing his property, he may share that he wants to sell the house with the contractor. If the contractor or builder knows someone who might be interested, the seller can give him a good commission, or you are just asking for a favor if he is a friend to you.
That will allow you to get in touch with that seller before the property is listed on any platform. That is why having a great working relationship with contractors and local builders can help you find off market properties.
4. Ask a Real Estate Agent
Many real estate agents have pocket listings on which they have exclusive rights to sell and which are not on the MLS. Many local agents may keep the listing in their pocket to hide the investment from normal buyers, who are not able to pay the price that the seller wants.
Plus, hungry agents will cold call homeowners in the area and turn them into sellers if they think they can make good money. So it all depends on the agent. If he chooses, he can get you a great investment property. That is why maintain a good relationship and pay him well.
5. Contract With Wholesalers
If you know a wholesaler, he may be able to put you on the contract for an off-market property as he has the legal contract of that property, and only he can sell it, which is ideally an off-market property.
But when buying from a wholesaler, there is rehabbing cost. So make sure to verify the deal before you sign it. Some wholesalers always try to make it attractive by underestimating the needed repairs. You have to check that.
6. Attain Real Estate Auctions
Depending on the rules and regulations the live auctions and auction websites are taking place, you may be able to purchase a property that is not listed on the MLS as it’s on the auction. But here, the bid and competition can outsmart you. So before going, make a plan or take someone who has experience in those kinds of auctions.
7. Check Public Records
Knowing who owns a property is only half the battle in this finding off market properties. Once it’s done, you may need to convince the seller that selling the property to you is a good idea. This process is not easy and takes a lot of time. But technically, it’s a way to access those off-market properties.
The public record tells you who owns a piece of property and if there is a piece of property that you are interested in. Check all the public records in that state and find those homes that might suit you. Then you can go for the address and contact numbers to make an offer.
8. Search on Online Sites and Craigslist
Property sites like Zillow allow a property to get listed before listing on the MLS. If you set up an alert and filter online, you may be able to get notified when a deal that fits your investment criteria. But note that anyone can list properties for sale in these places. So do your research about any listing you consider, and then take a hit.
9. Use Direct Mailing
Direct mail marketing is sending targeted mail directly to an owner to buy their house at a reasonable price or sometimes in cash. If they are in a hurry, they might sell it to you. It is one of the oldest ways to access off market properties.
Because the owner previously never considered selling until he received the mail from you. It means you are the only person entertaining the deal. Send Direct Mails, and you will find those hidden properties.
10. Drive for Dollars
It is a method where you drive into an area and look for distressed properties which lack maintenance. If you come across a property, that looks promising, you get in touch with the owners and get the conversation started. Maybe he can’t upkeep the property, and you want to help him get rid of it. It’s a great way for people use to find those properties.
So these are the ten ways to find off-market properties in your local market. It’s up to you what strategy you use. But know this, it will be hard to negotiate the price and make them sell it under market value. If you can, then know you will make a profit as your profit is made when you sell, not when your buy. Good luck.