What if the best real estate deals are properties that are not on the market at all?
With the right circumstances, an off-market property deal is ideal for real estate investors. Here’s why: many listed properties today receive multiple offers from competing investors. And it can be difficult for your offer to stand out. Here’s the secret, though: there are strategic tactics to find off-the-market homes to acquire without any competing offers to threaten the deal. Investors should depend on these methods to find better, off-market deals:
Work on Networking
The simplest way to find properties that are not listed is by word of mouth. The idea is for the investor to let family members, friends, neighbors and other real estate professionals in the area know about their interest in acquiring a property. Someone in this network might know of a home going up for sale soon or will have personally considered selling their own property at some point. There are also networking groups for real estate investors which can introduce leads on properties or advice on where to find them. This type of networking can also be done online, making use of internet forums or social media.
Use The Internet Advantageously
The internet is a powerful property-finding tool for real estate investors, but the issue is how many people get access to the same listings. The best online, but less-saturated, listings can be found through private listing websites, social groups and platforms with direct marketing like Facebook. Paid advertisements can be put on many of these platforms and show the investor’s details to individuals considering selling their homes. Using these online resources, the investor can gather leads on properties which have less widespread exposure.
This allows the investor to make a more exclusive, and therefore more attractive, offer to buyers.
Send Snail Mail
Sending direct mail is a more traditional way to find off-market properties. The strategy is to send out cards, fliers or letters to targeted property owners in neighborhoods the investor is interested in buying in. Some of these individuals might be interested in selling and have not acted on it, particularly owners of homes that are inherited, have short-term rentals only or similar. The key with this method is patience, as it’s inexpensive but receiving responses may take longer. The other tip is to create a letter with a dollar offer inside, showing a more serious intention to buy. Individuals are more likely to consider selling to the investor if they have some assurance that the investor won’t back out.
Act On Auctions
Foreclosure auctions are the location of some of the best-priced properties on the market. These auctions occur when a homeowner forfeits on their property due to financial distress, or inability to settle loan payments. Properties sold at auctions are often priced at a discount, and some banks forgive remaining bond amounts to get the property off their books.
Investors can get notice of potential auctions by viewing court records for recent deaths, bankruptcies or other events that lead to auctions of homes.
The local courthouse may also have information about upcoming home auctions in the area.
When looking for lucrative real estate deals, investors should not miss out on checking for off-the-market properties. There are a variety of ways to find these types of properties, from old-school mail to networking on and offline. With an off-the-market deal, the investor gains the opportunity to make a more exclusive and attractive offer to sellers. These deals can be found in unexpected places, and it’s up to the investor to pursue as many as possible for the best results.
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