How To Find Off-Market Real Estate Deals
Real estate can go through fluctuations of high demand and low supply. When this happens, it can be easy to get discouraged and wait to start your investment journey until supply is back up. However, there are many properties listed off-market to take advantage of. While many investors and home-buyers find their properties off the Multiple Listing Service (MLS), this doesn’t account for every property on the market.
There can be multiple reasons that the property is not listed on the MLS, but in the end, homeowners who are selling their house on their own or who have not simply put it up in public records have many benefits to you finding their home early. It is a faster route to a final sale, less hassle for them down the road, they won’t have to pay commissions, and it offers them a private deal. But how do you find these perfect off-market properties?
Real Estate Agents and Brokers
Many real estate agents and brokers are likely to know the MLS properties like the back of their hands, but there are many times when they have more information on possible and future sales that are not out to the public yet. Some may have pocket listings where they have exclusive rights to sell the property but are instructed to keep it quiet.
It can be wise to map out your desired market and location and call the top agents and brokers in that area. This can be difficult, but only in the beginning as you grow that professional relationship. Real estate agents and brokers have their eyes on properties day in and day out, going directly to them can be the answer you need.
Wholesalers offer many benefits to investors looking for their next property. Wholesaling consists of finding a discounted house, putting it under contract, and then giving that contract to a potential buyer or investor. This can be a great way to find off-market properties, as wholesalers are already finding potential homes daily. You could have the first pick.
Builders and Contractors
Being friends with builders and contractors can be a great way to get an inside look at future and currently off-market properties. They can be the insight to homeowners who are renovating their homes to put them up for sale or to those homeowners who were unable to finish the construction due to financing. Both of these options allow you to look into the property and possibly be the first to put in an offer.
Real Estate Investor Networking
No matter the industry, networking has shown time and time again to be beneficial to those within it. That goes the same for real estate investors. By connecting with fellow investors in your area, not only can you get insight into their strategies, inventory, and goals and learn something, but you have one-on-one contact with those who are selling or know of other off-market properties.
If you have your desired location mapped out, finding other investors in those specific areas can get you to the properties that you are looking for. Not only that, but you will build a group of like-minded people and share contacts, information, and strategies and help the success of yourself and others.
Real Estate Auctions
Real estate auctions give you access to an abundance of off-market properties. It can be beneficial to keep up to date on your local auction house website to see the properties they will have listed. You will find properties that have been foreclosed and have gone through the probate process. This can open you up to many properties you might not have seen otherwise. However, these houses are “as is” and full cash purchases, so it is important to be cautious.
There is no such thing as no supply regarding real estate. Off-market properties can offer you your next investment. If you have questions or want to start your investment journey and need help, reach out to the team at KC Investor Funding.