Real Estate Investing Strategy: Buying Off Market Properties
As a real estate investor, you have to stay head of the competition, especially in competitive markets with limited inventory. While this is easier said than done, there are ways to secure your dominance in certain markets and neighborhoods by digging deeper and expanding your portfolio of assets. In today’s article, I want to cover a real estate investing strategy that is going to allow you just that - a chance to stay one step ahead of the competition.
Whatever it is, the way you tell your story online can make all the difference.
What Are Off Market Properties
Let’s start from the basics for the folks who are new here. Off market properties, also known as quiet or pocket listings, are properties that are for sale but they’re not listed on MLS or multiple listing services. While removing properties from the MLS was a rarity back in the day, nowadays it has become quite common, meaning it won’t be that difficult to find good off market deals.
Some sellers choose to avoid putting their property on the market to maintain privacy or save on real estate commissions. Others do it to just test the waters or even create a sense of exclusivity that might allow them to bump the price up a bit. On the other hand, the buyer benefits from off market properties in terms of saving money on commission and avoiding competition in a crowded market. However, finding off market deals is significantly more challenging than browsing the MLS.
Finding Off Market Properties
As a buyer interested in off market properties, you get an advantage over your competition because you will have insight into inventory your competitors are not seeing. An off market property usually allows investors to make a higher return on investment if they choose to purchase a house and flip it for profit.
So, how do you find off market deals? Unlike looking for property listings, finding exclusive off market deals takes a bit more time and effort, as well as a lot of networking. Once you choose the neighborhood you want to buy in, you will need a list of top real estate agents in the area. Connect with as many agents as possible to discuss office exclusive listings they might be familiar with.
Nowadays, there are online tools you can use to find non-MLS listings in case the agent outreach doesn’t go well. Tools and platforms such as For Sale by Owner or Craigslist will allow you to find off-market properties in nearby areas. If you want to go all-in in terms of effort, you can also approach homeowners directly and check if they will be looking to sell the property in the future.
While this might seem like a shot in the dark, you’d be surprised how many leads you can find by knocking on doors in different neighborhoods. If you plan on doing repairs, find neglected properties that homeowners would be happy to get rid off. This will be your best chance at securing a good deal, as long as you keep your approach simple and professional.