Have you been considering different routes of real estate investment? Let’s talk about why off market properties are great investment properties. You’ve probably heard of the term off market properties as a real estate investor. This blog will cover why most successful real estate investors include off market properties in their portfolios. If you want to know more about why off market properties could be the best real estate investments you make, continue reading!
Related: How to Find Off-Market Real Estate Properties
What are off market properties?
Everything you need to know about the definition of off market properties is in the name. These are real estate properties that are off the market. In other words, off market properties are private properties that aren’t listed in the Multiple Listing Services (MLS). They’re also not publicly advertised by a real estate agent. Because these properties never hit the open market you have a great opportunity. Less competition from the public can higher your chances of getting a great deal!
Off market properties are also known as pocket listings. Buying an investment property can be done in many different ways. So why not try off market real estate properties? There are many advantages of being part of a real estate transaction that no one else knows about. If you want to get rich in real estate consider the following benefits of off market properties.
Why you should buy off market properties
COMPETITIVE ADVANTAGE
We’ve already mentioned how off market properties are private and not advertised to the public. Being able to find an off market property to invest in could give you a great competitive advantage. An easy way to do this is to contact a real estate agent. Real estate agents have knowledge of the housing market and will probably know if there are any off market properties in the area you’re interested in. They can point you in the right direction and you won’t be faced with dozens of other interested buyers to compete with. Having this advantage can give you great real estate properties, especially if what you’re buying is a rental property. With so many people opting to rent instead of buy, rental properties are great for a positive income stream. Investing in an income property that you bought off-market is what rich real estate investors are all about.
MORE TIME
Off market properties aren’t on a time constraint. Since there is less competition there’s no rush for a real estate investor to make a quick buy. Because it’s an off market property, the seller probably isn’t in a hurry to make a sale either. You can take your time and make sure you’re investing in a property that you actually want. All this time will give you a chance to conduct a proper investment property analysis.
To make things even easier for you, we can provide you with an investment property calculator or rental property calculator. Running the numbers on expected returns from off market properties will give you the reassurance you need that you’re making a good investment choice. Visit Mashvisor to utilize our amazing tools.
Related: Mashvisor: The Best Rental Property Calculator You Could Ask For
FLEXIBLE NEGOTIATIONS
Because there’s no rush in making the real estate transaction, both parties are often much more relaxed and willing to negotiate. The greatest investment strategies out there can only be implemented if you have the ability to negotiate. An off market property can give you the chance to buy low and maintain your budget. Since the property hasn’t gone out on the open market, there’s no market price for it. You can use this to your advantage when it comes to negotiating.
Why you should sell off market properties
So far, we’ve been talking about all the advantages of the buyer when it comes to off market real estate. But this is great for both sides. When you’re a seller some of the advantages of buying an off market property, like more time, apply to you but there are many more.
MORE CONTROL
When you’re selling an off market property, you have more control over your property. You’re selling on your terms. You choose who can see your property and when they can see it. If inventory is low and there is an abundance of buyers you can avoid having dozens of people shuffling into your home. When it’s an off market property, the choice always goes back to you.
LESS HASSLE
Avoid the extra costs and hassle of preparing your property for an open house. There’s also less hassle if you’re planning on selling a rental property. Since it’s not open to the public you don’t have to worry your tenants before anything is certain.
TEST MARKET YOUR HOME
Off market properties are great because you aren’t tied down by any other factors. You can choose when and to whom you want to sell. Selling off the market can give you a chance to see how well your property is actually doing and what price it can sell for. It gives you the time to do a comparative market analysis and get a good idea of your property’s potential market value.
Related: All You Need to Know About Comparative Market Analysis
To Sum it All Up
Becoming a rich real estate investor isn’t a straightforward thing. There are multiple paths to go down and a number of different decisions that need to be made. However, seeing all the advantages of off market properties for both a buyer and a seller can boost your career in the right direction. Making the right choices in the right market will ensure your wealth build-up. Off market properties give you more control, time, and flexibility. Don’t forget to click here to use our tools to help you make the best investments and get rich in real estate.