Spring time is among us and real estate markets across the US are heating up with competition. Although inventory has slightly crept up in the first few months of 2019, the issue of shortages is still rampant across the nation. If you are looking to avoid the headache of bidding wars and over-inflated price tags on investment properties for sale, then you should be looking into off market properties.
What Are Off Market Properties?
The name of this kind of investment property explains it all- they are off market. This means that these properties are not listed on any MLS. Typically, the property seller wishes to keep the sale of the property private for various reasons. It could also be the case that the seller has no intention of selling just yet. And sometimes the property will be on the market for sale soon but the real estate agent with the listing tries to make an off market deal beforehand. The best case scenario, however, is those off market properties that are offered exclusively through certain real estate websites and services to the members of such sites.
Why Should You Consider Investing in Them?
We’ve already mentioned a few main benefits of investing in off market properties, namely, the lower competition and the more reasonable prices (ones where sellers get a return on investment but buyers know they aren’t paying an arm and a leg that they’ll never get back).
Essentially, buying an off market investment property is a great option in a seller’s market. Not only will you find better deals, but you won’t feel the rush of the market. You’ll have time to do your due diligence and make sure the property is worth the investment. And as most of the best places to invest in real estate in 2019 are seller’s markets and have been for many years with no change in site, off market properties are pretty much always a great investment option.
So if off market real estate is so great, why doesn’t everyone go after these deals? Typically, they can be hard to find. We will show you a few ways for how to find off market properties, but as you’ll see, there is one option that rises above them all.
How to Find Off Market Properties: 5 Ways
#1. Work with a Real Estate Agent
Look for a real estate agent in the location of your choice who specializes in off market properties. This type of agent is likely to have a few off market listings already for you to consider. At the very least, they will be able to seek out an off market deal for you with the experience that they have.
Alternatively, you can call a few different real estate agents in the location you wish to invest in and let them know you’re interested in off market properties. Some of these agents will put you on a kind of waiting list and will get in touch with you when they have a profitable deal ready for you to pounce on.
#2. Consult with Your Network
If you’re an established real estate investor and have already built up a network of professionals in the industry, it’s likely someone you know has an off market deal or knows about one. Even if this will be your first investment property, you can still ask around in your network of friends, families, neighbors, coworkers, and other professionals in your life to see if they have an off market property they want to sell. They may even own a property they didn’t plan on selling but might begin to toy with the idea if they know you’re interested.
#3. Give Direct Marketing a Try
Direct marketing can let property owners in the location of your choice know that you’re looking to buy. Property ownership details are public record so it can be as simple as visiting the local recorder’s office and requesting ownership records to use for direct marketing. From there, you can choose to send out general pamphlets to the specific properties you’re interested in. Better yet, consider writing personal notes to the homeowners to let them know you’re interested in buying. For larger scale marketing, you can look into companies that offer such services or even consider creating a website where sellers can get in touch with your directly. Just keep in mind that this scaled marketing might cost you so you’ll have to take those expenses into account.
#4. Go Door to Door
You could go door to door and try to talk to the homeowners. Let them know you’re interested in buying the property and pass along your contact info. Try not to linger or be a bother to anyone in the neighborhood so that you leave a good first impression on any potential sellers.
#5. Check Out Roofstock
What you’ll notice about the 4 other ways for finding off market properties is that they involve a lot of work and a lot of waiting. Although it can be effective, in reality, it will take a lot of time to find off market listings in those ways. It can also be difficult to repeat your results using those methods as well. Meaning, if you wish to add a few off market properties to your real estate portfolio and you don’t want it to take years and years, then you need an alternative.
Roofstock is that alternative. It’s an online marketplace that specializes in off market single family home rentals. All properties listed on the site are exclusive to Roofstock and won’t be found on any public MLS. Not only will you have hundreds of off market properties in front of you at the click of a button, but you’ll also find a lot of other important property analysis factors like cash flow, gross yield, cap rate, appreciation, and rental income. These are things you wouldn’t really get if you followed any of the other methods for finding an off market property.
The Bottom Line
Off market real estate properties can make for great investments. It’s the process of finding them that keeps most investors in the traditional market. However, websites like Roofstock have made it so much easier to find off market deals that actually make for some of the most profitable investments.